The price of Cryptocurrencies have been tumbling with their mama BitCoin, as China closes local exchanges, but some experts have predicted the cryptocurrency will bounceback and stage a recovery.
Bitcoin's price crashed below $3,000 on Friday for the first time in almost eight weeks, as fears over the cryptocurrency's future prompted a sell-off. It comes as China launches a crackdown on bitcoin by closing local exchanges, with BTCC annoucing an end to trading by the end of the month.
JP Morgan boss Jamie Dimon also fuelled sell offs by calling the bitcoin a fraud.
But despite the short-term price crash - the digital currency has fallen from near $5,000 at the start of the month - BitCoin and other Cryptos will recover, according to experts.
When Jamie Dimon warns against bitcoin, it’s usually a good time to consider buying some
BitCoin is nothing without Jamie Dimon. According to experts, Jamie's -ve comments have been a ploy to get the Cryptos down - after BitCoin kissed it's all time highs of $5000. A correction was always on. Experienced Crypto traders know, the Crypto market does correct upto 40% - after a big bull run. It was indeed helped by Jamie and the Chinese events.
Don't forget Cryptoes like Litecoin - had a huge spike - at around 12 P.M. UTC time - once it kissed it's low of $32. It was indeed from USA.
Now, where does all the Cryptoes go from here? David Coker, Lecturer at Westminster Business School, said: "While the Chinese regulator's crackdown in Bitcoin exchanges was not surprising – China has been trying to put a stop on capital flight for several years now – its actions simply won't be effective for three reasons."
"First, anyone in China with a valid public key - a large numerical value that is used to encrypt data and is generated by a software program or provided by a designated authority - can still receive and sell Bitcoin. Keys are freely available for the asking. The Great Firewall of China won't be able to block Bitcoin traffic originating on Blockchain's decentralised network."
"Second, it is well known foreign travel by Chinese citizens has surged in response to the crackdowns on capital flight. Any Chinese citizen traveling to the United States or Western Europe can easily purchase Bitcoin at any one of several thousand public ATMs selling the cryptocurrency."
"Third, the history of economics teaches us capital always finds a way."
Etherium will chase BitCoin
September is usually BIG for Crypoos. 2017 is not an exception. We have several technical upgrades coming for some important Cryptocurrencies - Metropolis for Etherium, Escrow for Ripple.
Future Ethereum – Metropolis, Serenity, Raiden
News from Etherium developers is that - The Metropolis (Ethereum 3.0) hardfork upgrade is scheduled for late September. By end of this month - Metropolis will be locked in. This time, there is ALMOST NO CHANCES of a split (like the one we had for Etherium Classic). Thus, this could result in a big bull run for Etherium.
Experts say, this could result in new highs for Etherium - breaching well past it's earlier highs of $418. If we follow the last upgrades, which was back in October 2016, Etherium was in single digits that time. Though the prices are much higher now, but considering the changes that Metropolis upgrades are slated to do - this may well kiss $1,000 - according to the experts.
And after BitCoin, if there's anything that "Altcoins" follow - it's Etherium. So expect a big rise in some other coins as well. Here's a graph that explains the correlation among the Cryptocurrencies.
Ripple and Escrow lock
Then comes Ripple. XRP is surging alongside bitcoin and ether as well as smaller digital currencies like dash and monero. They're all benefiting from the growing interest in blockchain, a distributed electronic ledger that makes all transactions trackable. Unlike other cryptocurrencies on the market, XRP is tied to — and majority-owned by — a single company.
Ripple and ethereum have emerged as the early leaders in enabling business arrangements, with Ripple trying to build the digital payments standard for the financial sector.
Distributed financial technology firm Ripple is on the verge of locking up billions of dollars worth of its native XRP cryptocurrency inside dozens of smart contracts designed to hold value in escrow until a certain time, or certain conditions are met.
Ripple Pledges to Lock Up $14 Billion in XRP Cryptocurrency
Though the timeline for this is not released by the company yet - but this is more than expected to happen within a month or 2.
One of the major fears about Ripple has been uncertainty about their supply and what if Ripple releases too much of their supply into market, thereby suppressing price. Although, Ripple being a Licensed, Regulated, and Registered company that can be 'Sued' in court for fraud has eliminated much of this worry.
But seems like Ripple wants to be world class in every aspect. Escrow is an extensive lock-up agreement spanning a whole decade and more, removing all market worries about supply.
What does this mean?
1) Suddenly All worries about supply will be defeated in one official move.
2) The supply available will only be the current supply.
3) Overnight will make XRP lot more precious, valuable and most probably will spike up price greatly given so many use-cases and no more new supply in the horizon.
Additionally, as a remainder unlike Bitcoin, ETH etc which are "Inflation" currencies that increase their supply over time, Ripple is Deflationary. Meaning, NO new coin can ever be mined/created, and Supply reduces over time as every transaction destroys certain amount of XRP.
And it does not end there. Its also rumored that Ripple will use their on-platform escrow feature to enforce this lockup and show off the feature to their customers. (Ripple has on-platform cryptographically secure escrow that does not depend on 'any' external services)
There is no doubt that this would be a segwit-level event for XRP. I would say 1 USD instantly after the announcement and even more in the future.