Bitcoin Will Soar in This Year, If This Happens
CoinShares chairman Danny Masters predicts bitcoin will rally this year and will reach its highest level by the end of last year.
But this is what must happen first before bitcoin rallies to their highest level, ie better structure and "life cycle" after initial Initial Coin Offering (ICO) - fundraising process that launches new cryptocurrency.
"We need to see the structure of cryptocurrency continues to grow," Master said on "Fast Money" on Wednesday (16/5). "We need to see a custody solution coming and being provided. We need an index and we need a performance measure where we can really begin to understand what we are talking about and measure our performance. "
"We need to do a more mature job at ICO, so that our ICO post has token life cycle," he continued. "And it only gives more clarity to investors, better expectations, greater transparency."
Bitcoin is trading around $ 8,300 on Wednesday night. While the coin has recovered from lows earlier this year - briefly dropping below $ 6,000 in February - bitcoin is still far from its peak in mid-December at around $ 19,500.
CoinShares, an investment company specializing in cryptocurrency, launched the world's first public bitcoin and ethereum.
Investors are optimistic that New York's Blockchain Week and Consensus event on Monday will help boost coins with big lids. But bitcoin has been lacking in performance, down 5 percent since Monday (14/5).
Masters point out that three years ago, the market and the number of people interested in cryptocurrency were very small. This week, however, over 8,000 people showed up for Blockchain Week New York.
In fact, the bitcoin life cycle "is still very early."
"In derivatives, indices, pricing models, and so on that goes to build the financial system. We have not reached that part yet, "the Masters said.
"We have not even been a part where I say institutional investors are starting in commodities. Because these things - indexation, custody and so on - are not there to bring in the older people first. "
Bitcoin Cash is a fork of the original Bitcoin Blockchain. It operates with a number of changes that make it faster and better able to scale when compared to its older brother.
It does this by introducing a block size of 8mb, up from Bitcoin Classic’s 1mb. This increase in size allows more transactions to be entered into each individual block before they’re encrypted into the blockchain. This allows more transactions to be processed at once, and so vastly increases the speed of the entire process - allowing transactions and currency to move and be confirmed faster.
This allows Bitcoin Cash to retain the security and utility of the Bitcoin blockchain, while having the ability to deal with transaction volumes close to that experienced by Paypal or Visa.