Attempts to guess what direction the crypto market will take next now have a new angle and it’s called “the industry is on the brink of an implosion.”
At least, according to a new study by digital commerce and fintech analysis firm Juniper Research that claims that this year’s sell-off in the crypto market may have just been the beginning of a broader decline of the crypto economy.
The study, dubbed The Future of Cryptocurrency: Bitcoin & Altcoin Trends & Challenges 2018-2023, pointed to the fact that daily bitcoin transaction volumes have fallen from around 360,000 per day in late 2017, to 230,000 as of September 2018.
According to the researchers, worsening economic conditions internationally this year should be favorable for alternative currencies like Bitcoin, considering events such as the decline of several fiat currencies due to global trade tensions, Brexit, and currency-crises in several developing countries including Turkey, Argentina, and Venezuela.
As these events so far have failed to translate into higher crypto prices, Juniper concluded that “it is unlikely to prosper as and when these issues are resolved.”
“Like any asset, it is worth whatever someone is prepared to pay for it, but it has no meaning or existence beyond the confines of the ledger. It is a bubble, and there is a strong possibility that this bubble could burst in the near future,” report author Dr. Windsor Holden claimed, adding that “bitcoin has no intrinsic value.”
“In short, given our concerns around both the innate valuation of bitcoin, and of the operating practices of many exchanges, we feel that the industry is on the brink of an implosion,” he said in a white paper accompanying Juniper’s research.
but, latest information can also display a chunk exceptional attitude. for example, David Swensen, leader investmentofficer at Yale university, who via many is considered the maximum influential investor within the global, has now reportedly invested in crypto-centered assignment price range.
additionally, Coinbase, the united states–based totally fiat-to-crypto change and wallet service, is reportedly worth USD 8billion and in talks with Tiger international, an funding firm, for as much as USD 500 million. that is a certain sign that the enterprise is more than just “tulips,” in step with famous Bitcoin bull Michael Novogratz.
in the meantime, a recent casual ballot by using Fundstrat international Advisors, a Wall avenue studies organisation, indicated that the generally very cautious Wall street buyers are actually overwhelmingly calling a backside in the bitcoin marketplace. Twitter customers, but, are nonetheless skeptical, with a majority saying bitcoin nevertheless has room to fall.
in the past, Juniper research has also posted research painting a more nuanced photograph of the cryptocurrency marketplace. In September, the firm discovered that 64% of respondents in a survey said their organisation becamealready actively engaged in, or thinking about, various blockchain related tasks, marking a sizable growth from the 34% of groups that stated the same thing final year. The examine similarly found out that almost half of those agencies werelooking to Ethereum as their platform of desire.