The biggest winners and losers in the cryptocurrency market in 2019
Understanding crypto market will be extremely easy once we make a thorough analysis of the past actions and reactions. Our future is based on present actions only and if we have a thorough knowledge of how actions in a particular market beget reactions we will be able to get factual analytical results. This is easily possible by making past analysis for determining the present and future.We haven't been unfamiliar with the ups and downs of the cryptocurrency industry. But it turns out that the cryptocurrency market in 2019 remains the most surprising year.
The 2018 bear market made market analysts call it a
"year of regulatory liquidation", which also left regulators in many
regions of the world full of uncertainty on how to treat cryptocurrencies. But
at the same time, 2019 has also proven to be a comeback year, and global
technology giants like Facebook have switched from banning cryptocurrencies to
accepting them. And in June of this year, Facebook released its cryptocurrency
project Libra White Paper.
In addition, escalating global events and geopolitical risks
are constantly changing investors' perceptions of cryptocurrencies such as
Bitcoin. However, the United States Securities and Exchange Commission (SEC)
still rejected all proposals for the Bitcoin ETF this year, which shows that
the entire industry still has a lot to do.
So, with the end of 2019, which companies, individuals and
projects stand out, and which companies, individuals and projects have fallen
into an underestimation and crisis?
Bitcoin Rises sharply
This year, Bitcoin officially entered its 10th year. Bitcoin
also kicked off the cryptocurrency industry in 2019 with a wave of rise and led
the recovery of the entire industry. Morgan Creek Digital Asset Management
Co-founder Anthony Pompgliano said: "The sharp increase in the price of
Bitcoin in 2019 is that there are more net buyers than sellers this year."
Moreover, with the increase in transaction volume and market
value in the second quarter of this year, Bitcoin also led the market with a
165% increase, during which the price of Bitcoin soared from $ 4,103 to $
10,888. In addition, Bitcoin's market dominance has also increased from 54.6%
to 65%.
At the same time, people also believe that after the global
uncertainty increases, digital currencies can play a hedging role against
traditional capital markets. During this year's China-US trade war, most
investors saw Bitcoin and gold as safe-haven assets.
However, Bitcoin is not always bright in 2019. In the third
quarter of this year, with the sharp drop in the price of bitcoin, the market
value of bitcoin evaporated by nearly $ 100 billion, which also caused some
pessimism in the market.
Fortunately, Bitcoin still ended the quarter with only the
smallest decline in the entire cryptocurrency market, and its market dominance
rose by 5.4% during the period. After all, Bitcoin is still the best performer
of all cryptocurrencies.
How about Bitcoin and other types of assets?
In fact, compared to other types of assets, Bitcoin will far
outperform them in 2019. For example, the price of gold has risen by only 17%
since January this year. Although the S & P 500 has an outstanding
performance of + 21%, it still dwarfs the increase of Bitcoin over the year.
In addition to the price, Bobby Lee, CEO of Ballet Crypto
Wallet, said that Bitcoin has also benefited from several major technological
developments: "2019 is a great year for Bitcoin as the Bitcoin open source
ecosystem has achieved With great progress, the Lightning Network is also
increasing Bitcoin's trading capabilities. "
Victor Coinbase's Continued Expansion
Coinbase has long been known for its fairly selective
strategies for listing on its exchanges. At the same time, as one of the most
well-known exchanges in the global cryptocurrency field, Coinbase is also known
for having fewer large-scale hacking attacks.
In 2019, some major cryptocurrency exchanges such as Binance
have become victims of large-scale security breaches, which have even led to
the theft of thousands of bitcoins, and Coinbase stands out as a secure and
reliable platform.
However, Coinbase was also questioned by Twitter users this
year for its acquisition of Neutrino. Neutrino is a startup that uses
blockchain to collect data on cryptocurrency transactions. For most Twitter
users, Coinbase's move is considered to facilitate the exchange's monitoring of
its customers.
However, Coinbase said the acquisition of Neutrino is only
part of its goal to support all assets while complying with relevant laws and
regulations. In addition to its acquisition of Neutrino, Coinbase has doubled
the number of cryptocurrencies listed on its exchange since 2018.
In fact, Coinbase has been making news almost throughout
2019, from making acquisitions to rejecting acquisitions, and obtaining
multiple patents in the process. At the same time, Coinbase's Visa debit card
solution has seen exponential growth this year and is now available in more
countries.
In May 2019, Coinbase also extended its reach to more than
100 countries outside the United States to promote its stablecoin USDC. It can
be said that the aggressive expansion of Coinbase in 2019 seems to have started
direct competition with other major global cryptocurrency exchanges such as
Binance.
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| Facebook Cryptocurrency Libra |
Loser Libra Struggles
Facebook officially released its cryptocurrency project Libra
white paper, arguably one of the most significant events in the cryptocurrency
industry in 2019. However, the skepticism of US lawmakers and regulators has
made the project difficult. The US Congress has held several hearings on Libra,
but so far there has been no substantial breakthrough.
According to Libra's white paper, Libra's mission is "to
provide billions of people with a simple set of global currency and financial
infrastructure services."
In addition, the Libra white paper further states that it
will use a new decentralized blockchain, low-volatility digital cryptocurrency
and smart contract platform plan, which together will create new opportunities
for reliable financial service reform .
Although the Libra project can be said to be ambitious,
currently Libra is not only subject to strict scrutiny by lawmakers, but also
faces its own internal problems.
Bobby Lee, CEO of Ballet Crypto Wallet, expressed his
optimism about Libra, saying, "Although US and European lawmakers and
regulators believe that non-governmental currencies pose a threat to their
power, Over time, governments will realize that they cannot stop
cryptocurrencies and that their opposition will diminish. "
A bumpy year for Circle
In October 2018, headquartered in Boston, Circle, a
cryptocurrency company supported by Goldman Sachs, and Coinbase formed an
alliance called center to support and develop the stablecoin USDC.
In July this year, Coinbase and Circle expanded their
participation in their alliance, a move that would allow other financial
entities interested in the project to issue USD-based stablecoins. In addition,
in the statement, they also mentioned that "the next step is naturally to
envision a new global digital currency." In short, Centre's plan is to
create a global digital currency in a similar way to Libra.
However, Circle's experience throughout 2019 has been bumpy.
Although USDC was well received by the market, Circle closed its mobile app
from May to June this year, reduced its funding target by 40%, and laid off 10%
of its staff. Just recently, Circle fired another 10 employees, citing efforts
to streamline services.
The latest news of Circle's layoffs came after the company's
co-founder, Sean Neville, recently transitioned from CEO position to company
board seat. However, Circle has denied any connection between the recent
layoffs and Sean's transition.
How about crypto related Court battle of Satoshi Omoto?
In 2015, Australian-born technical expert Craig Wright
claimed to be Satoshi Nakamoto, the founder of Bitcoin, but so far, most people
in the cryptocurrency industry remain skeptical and even indifferent.
Most people may think that Craig Wright posing as Satoshi
Nakamoto may slowly disappear into people's vision. In fact, Wright continues
to make headlines.
This year, Wright still insists that he invented Bitcoin ten
years ago and mined more than 1 million Bitcoins with his late business partner
Dave Kleman. And after Klayman died in 2013, Wright claimed that he had put the
bitcoin he dug into the "Tulip Trust".
However, Wright was indicted for Kleman's legacy in 2018 on
suspicion of stealing up to 1 million bitcoins of Kleman. According to Kleman's
family, Wright stole 550,000 to 1 million bitcoins, worth about $ 10 billion.
On October 31, Judge Bruce issued a ruling ordering Wright to
transfer half of Bitcoin held before 2014 and the intellectual property rights
of the Bitcoin white paper to Clayman's family.
In addition, Wright also sued Peter McCormack, a case that
has caused widespread concern in the cryptocurrency industry. Wright sued
McCormack on the grounds that McCormack repeatedly claimed that Wright was a
liar, which was harmful to Wright's own reputation.
Recently, Craig Wright submitted another document purportedly
to prove how he came up with the pen name "Satoshi Nakamoto."
Bitcoin ETF keeps being rejected by the SEC
On September 13, the Chicago Board Options Exchange (CBOE)
withdrew its application for the VanEck / SolidX Bitcoin ETF. Since then,
Bitcoin ETF applications submitted by Bitwise Asset Management and NYSE Arca
have also been rejected by the US Securities and Exchange Commission (SEC) on
October 9.
Later, investment management company Wilshire Phoenix
submitted a new application for a Bitcoin ETF. Immediately after, investment
management company Kryptoin Investment Advisors, under the leadership of Jason
Tucent, a former World Gold Council executive, also submitted an initial
registration statement to the SEC for the Bitcoin ETF.
But so far, the SEC has not approved any listing application
for a Bitcoin ETF. According to the US Securities Exchange Act, one of the main
concerns of regulators when assessing new commodity-based ETFs is to determine
whether the underlying market can resist market manipulation. But so far, any
proposal for a Bitcoin ETF submitted to the SEC cannot prove that the Bitcoin
market can solve this problem. The SEC still does not believe that the
applicant has the ability to prevent manipulation in the cryptocurrency market.
Currently, most financial professionals are skeptical about
whether Bitcoin ETFs can obtain SEC approval in the short term. However, many
people are very optimistic when it comes to medium and long-term prospects.
How about past and present performance of Cryptocurrencies in 2019 and 2020?
Overall, the cryptocurrency industry has seen some
significant growth over the past year. Although the market is still volatile,
more institutional investors are continuing to pay attention to the industry.
In addition, although the current market value and
transaction volume of cryptocurrencies are showing a downward trend, a
well-known trader believes that the destiny may be at hand, especially those
who hold bitcoin.
Of all these projects, companies and individuals, Libra will
likely remain the most influential in 2020. For most people, whether Libra will
be launched in 2020 will be a very interesting thing. Once launched, the entire
industry will be greatly affected.
See also:
- Cryptocurrency Payment Gateway Services
- Cryptocurrency Escrow Services
- Online Mode of Payment
- Online and Offline Payment
- Legality of Cryptocurrency
- Crypto Wallet
- Smart Contract
- Bitcoin and Cryptocurrencies
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