Bitcoin and Ethereum, Record Breaking First 6 Months of 2017

Bitcoin and Ethereum – Two Crypto Giants have emerged!  We review the performance of Bitcoin and Ethereum for the first six months of 2017 as well as events that contributed to the exponential growth of these two cryptocurrencies.

 

 

Firstly, what is the difference between Bitcoin and Ethereum?

  • Bitcoin is a store of value and payment system and the most valuable cryptocurrency
  • Ethereum is a programming language and decentralized platform that runs smart contracts – A World Super Computer that would decentralize and democratize the existing client-server model

What events have contributed to the growth of Bitcoin and Ethereum in the past six months?

BITCOIN

  • The People’s Bank of China suspended Bitcoin Exchanges for almost 4 months
  • New rules on foreign exchange management, money laundering and payment and settlement
  • The price dipped but recovered very quickly after the suspension announcement
  • The suspension highlighted that China does not monopolize the global trading market
  • OTP Platform showed record peer to peer transactions

 

  • ETF Fever and high expectation for the first Bitcoin ETF the Winklevoss Bitcoin Fund – Tyler and Cameron Winklevoss
  • 10 March – Securities and Exchange Commission ruled against the fund
  • Price dipped after this announcement but recovered quickly
  • BATS filed a notice of petition to review the SEC decision and it was accepted
  • EFT’s will be accepted in time

 

  • Japan recognized Bitcoin as a legal payment system 1 April allowing more oversight from the Financial Services Agency
  • Virtual Currency Act followed and The Accounting Standards Board working on a framework for treatment of virtual currency
  • The three biggest Banks invested in Bitcoin Exchanges
  • Merchant Adoption full steam ahead – Major Retailers such as Bic Camera and Recruit Lifestyle – Partnering with Bitcoin Exchanges to rollout to over 260 000 merchants
  • Promoting Tourism – Peach Becomes Japan’s First Airline to Accept Payment in Bitcoin

 

  • Bitcoin Scaling Debate, since 2015, could have resolution after bitter battle between two groups namely, Bitcoin Core/SegWit and Bitcoin Unlimited
  • Transaction delays from minutes to days and increase of transaction costs making this agreement on the way forward vital
  • Majority of miners are signaling SegWit2X which includes a block size increase from 1 MB to 2MB
  • Litecoin activated SegWit successfully in May
  • A line in the sand has been drawn – 1 August 2017

Bitcoin reached all-time high of over $3000 on 11 June 2017

ETHEREUM

  • Launch of the Enterprise Ethereum Alliance end February 2017- Connects Fortune 500 enterprises, startups, academics, and technology vendors with Ethereum experts
  • Ethereum backed by business

 

  • Ethereum attracting many Developers
  • Ethereum Virtual Machine (EVM) which is a sandbox isolated from the network allowing the opportunity to create markets, store registries of debts or promises
  • Developers can even design a cryptocurrency such as an ICO aka Initial Coin Offering as well as start a crowd sale to fund the project
  • Developers play a key role in driving Ethereum use cases

 

  • The Rise of the ICO – Initial Coin Offering
  • Start-ups release own cryptocurrency with a purpose of funding
  • No legal or regulatory framework for this emerging type of offering as yet however, is this true?
  • ICO Crowdsales are raising millions in a matter of minutes such as Aragon pulling in $25 million in 15 Minutes
  • Civic sold $33m in Civic tokens (CVC) 8 days before the official offering was to take place

 

  • Central Banks are very interested in digital currency
  • People’s Bank of China, Bank of England, Danish and Vietnam central bank exploring
  • Singapore Central Bank and financial regulator is developing a tokenized form of the Singapore dollar (SGD) on Ethereum blockchain

 

  • With increase of transactions, the Ethereum Network experienced congestion
  • Resolved quickly with an increase of “gas”, a form of payment to issue transactions on the network. Now more actions are performed per block.

Ethereum reached all-time high of over $400 on 12 June 2017

In Conclusion

Strong Fundamentals with bullish long-term outlook

Expect Volatility in the short term

Value is what you get and price is what you pay… Can you see the value in Bitcoin and Ethereum? Let us know in the comments below.

 

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Bitcoin and Ethereum, Record Breaking First 6 Months of 2017

 

 

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