Showing posts with label market cap. Show all posts
Showing posts with label market cap. Show all posts

December 22, 2017

Correlation between cryptocurrency value and exchange listings: Expert Blog

By Munair Simpson - December 21, 2017 (

There is a positive correlation between the value, or market capitalization, of a cryptocurrency and the number of exchanges that it is listed on. For the top 1,000 cryptocurrencies, the correlation is over 50 percent. Rudimentary data analysis indicates that the market capitalization of the coin or token crudely increases with exchange listings. However, correlation is not causation and it is not wise to conclude that simply listing a cryptocurrency on more exchanges always adds more value to the cryptocurrency.


Correlation explains how much two variables are related. A correlation of 100 percent would mean that the positive change in one variable is perfectly related to the positive change in the other variable. If the correlation between cryptocurrency value and exchange listings was 100 percent, then it would possible to observe an exactly proportional increase in market capitalization with an increase in the number of exchange listings.

Since the correlation is over 50 percent, it might be tempting to list on as many exchanges as possible to maximize token value. Do not be tempted. Even though market capitalization and the exchange listings are somewhat linearly correlated, it does not mean that listing on more exchanges definitely results in an increase in market capitalization. Especially when a little more analysis reveals the presence of major outliers.


Thanks to the Coin Market Cap API it is easy to observe outliers in the top 1,000 cryptocurrencies. Dumping the market capitalization and exchange listing data into Google Sheets or an RStudio dataset helps to explain a lot. Plotting value against listings shows that cryptocurrencies like Bitcoin are not normal in comparison to the majority of other cryptocurrencies.

Plotting the log of market capitalization against exchanges listed reveals roughly three different clusters of value in the cryptocurrency world.

Clusters of value

The first cluster includes Bitcoin, Litecoin, Ethereum and Bitcoin Cash. This group of cryptocurrencies are all listed on over 75 exchanges. The second cluster of cryptocurrencies are scattered between 15 and 55 exchange listings. The second includes DASH, Ripple, ZCash, and popular cryptocurrencies. Finally, the vast majority (~98%) of cryptocurrencies have 15 or fewer exchange listings.

Statistical summaries show that median cryptocurrency is listed on just two exchanges and the average is listed on just under four exchanges. Using a box plot to graphically describe the data shows the large number of outliers in relation to the majority of cryptocurrencies.

Box Plot of Exchange Listings. Data obtained from on Dec. 10th 2017.

In general, the major outliers widely function as mediums of exchange and stores of value. To be globally valuable as intermediary instruments used to facilitate buying, selling or trading goods and services, these cryptocurrencies should be listed on many exchanges as possible. Currencies generally have more legitimacy the more widely they are used, and listing on many exchanges advances those network effects.

Not all of the outliers present in the dataset serve as money. Ethereum is an exception. Though it was designed with a different purpose in mind, the market decided that it too should function as a medium of exchange and store of value.

There are other exceptions in the first and second cluster of cryptocurrencies. Qtum and TenX were also not purposed as mediums of exchange, yet they are listed on over 15 exchanges.

Strategy implications

In spite of these outliers, analyzing the relationship between value and exchange listings has implications for cryptocurrency strategy. Further dividing cryptocurrencies into subsets and rerunning the analysis provides more meaningful information to can reinforce or redirect the intuition of a cryptocurrency strategist.

Knowing that the outliers are primarily used as stores of value or mediums of exchange, it only makes sense to list widely if planning to compete with cryptocurrencies used as money. There are always exceptions. However, if the purpose of a cryptocurrency is to be a better form of money, then it may need to be widely listed to in order to compete with the other widely listed currencies.

For example, cryptocurrencies competing to be a medium of exchange in Venezuela may increase their market capitalization through listing on a Venezuelan cryptocurrency exchange. With each new geographical market entered, it might experience additional increases in value.

This might not be the case with tokens. Since tokens usually represent an asset, the economics of valuation with respect to exchange listings may be different. Being listed on a Venezuelan exchange may add no value at all.

Security tokens may observe increased market capitalization with exchange listings, as investors will appreciate more trading options in the case there are problems at one of the major centralized exchanges. However, there will most likely be diminishing returns to increasing exchange listings.

The long tail

Focusing on cryptocurrencies with fewer than 15 listings makes sense for getting a rough idea of the relationship between value and exchange listings for average tokens. This subset is the third cluster of cryptocurrencies. They represent over 97 percent of the top 1,000 cryptocurrencies. This cluster also includes cryptocurrencies, like IOTA and NEM, which are not tokens but are highly valued and listed on fewer exchanges than their peers.

Top 1000 Cryptocurrency [Data Source:]

Graphically, with the aid of a histogram, it is possible to observe the concentration of cryptocurrencies. The chart exposes the first and second clusters as the long tail cryptocurrency exchange listings.

Focusing third cluster makes it possible to notice that the linear correlation between market capitalization and exchange listings drops to 20 percent. That means that it might not really matter that much how many exchanges the average token is listed on. The correlation between the average token’s value and exchange listings is not very significant.


The ICO is becoming an increasingly popular fundraising vehicle. Traditional businesses are starting to look to this crowdfunding mechanism and bypassing other traditional forms of financing.

Nonetheless, planning an initial coin offering requires a lot of thought and thorough research. Even deciding which exchanges to list on and how many exchanges to list on requires careful research. Fortunately, there are already hundreds of cryptocurrencies out there that can help to determine if it is worth the time and effort to pursue a certain strategy.

There is a correlation between market capitalization, but it is not very strong. Be guided by that. Whenever in doubt about correlation and causation, just look at Litecoin and Bitcoin. Litecoin is listed on 94 exchanges compared to Bitcoin’s 88, yet Bitcoin is a magnitude larger in market capitalization.

Munair Simpson is a business strategist and the principal researcher at Useful Coin Research. Munair lives in South Korea and enjoys teaching Capoeira when not thinking about the future of finance. Munair graduated from the Wharton School with an MBA in Marketing.

December 20, 2017

The CIO of a crypto hedge fund explains why the market will explode over the next 2 years

By Jacqui Frank, Kara Chin and Trevor N. Cadigan - November 28, 2017 (

Ari Paul, CIO of cryptocurrency hedge fund BlockTower Capital, talks with Business Insider executive editor Sara Silverstein about the value in cryptocurrency and where he thinks the market is headed in the next two years. Following is a transcript of the video. 

Ari Paul: I’m Ari Paul, CIO of BlockTower Capital and this is why there's value in cryptocurrency

Sara Silverstein: Why do you fundamentally believe that there is value in this cryptocurrency world?

Paul: So there are quite a few use cases. I think the biggest and clearest, and easiest to understand, is as a store of value that can't be censored and is resistant to seizure. And so, the really clear example of demand for this, that I see, is the offshore banking system. Which is roughly 20 trillion dollars today. And it's not just people trying to dodge taxes. Apple, Amazon, every billionaire on the planet, has wealth stored there. And firms like JPMorgan collect fees to offshore law abiding citizens’ wealth. And people want to store their wealth securely, in a way that no single judge could freeze all of their assets. Right? Amazon doesn't want their entire global business operation to be shut down by one judge in Brussels. They want to be able to go through a lengthy appeals process and keep their business operating. So cryptocurrency performs that same task of the offshore banking, of keeping wealth secure an order of magnitude better. So we see massive real fundamental demand for this use case.

Silverstein: And what other financial assets make sense to be on a decentralized database or why would they?

Paul: Yes, there’s a huge distinction between the money use case, store of value, and the blockchain use case, for other assets. And I think it’s useful to kind of separate those. So a blockchain makes a ton of sense to record in real-time legal title. So I was a treasury bond trader, for example, and an example in finance, that anyone who’s traded treasuries is familiar with, is: failure to deliver. So Goldman Sachs will sell a bond to Credit Suisse, who borrows it from JPMorgan, and the same bond, in a day, might trade across 12 banks. And if one back office fails, they fail to make delivery of that bond, you get what's called a cascading failure to deliver. Because no one knows who actually owns the bond. And that can take weeks to fix. So imagine if you just have a shared database, a database that each of those banks held, that was kept accurate in real time,  and that no one could maliciously change or manipulate. You would know who owns what bonds and you might be able to eliminate half of the existing back offices in big banks. So a massive cost savings.

Silverstein: So you believe in the blockchain as having a value in the future for us? How does that translate into value for cryptocurrency?

Paul: So, yeah. I think a really useful idea — a blockchain is just a type of database. It's a distributed ledger that in some use cases, like for a banking back office, is kind of like a database upgrade. So massive improvements in efficiency, but probably not that transformative or disruptive. When you take a blockchain and you make it public and decentralized, and then you add money to that — you add a cryptocurrency — then you're looking at something that is that first use case, that offshore banking system, that I think is fundamentally disruptive. And disruptive financially, economically, and even potentially politically.

Silverstein: Do you see any institutional money in cryptocurrency right now, and is that going to be a huge lever for these values to all skyrocket?

Paul: Absolutely, so we've seen this really clear path of adoption. The earliest adopters were engineers, self-described cypherpunks. Then you had a wave of kind of Silicon Valley tech elites, people who would have a successful exit, who had a high risk tolerance, and who liked taking risk on new technology. Then you had kind of an early wave of maybe people like myself with a little more of a Wall Street background, as well as high net worth individuals, who are a little bit risk-tolerant. What we’re seeing right now is a shift from small family offices to big. Venture capital firms are basically all in. So most of the famous venture capital firms, not only have they been in the space for a few years, they’re now directly investing in new cryptocurrencies. And of the ten largest family offices in the country at least seven of them on cryptocurrency. Maybe more, but seven I'm sure of. So the next wave is — in kind of the institutionalization of the space — is we’re having the CME futures that are likely to launch next month. There's a huge number of entrants who want to invest in cryptocurrency, but can’t. For security reasons, operational reasons, regulatory, but they can easily buy a future, that's on the CME. So that opens the door to groups like endowments and pensions. So far, endowments and pensions own zero cryptocurrency. You have an asset that has been the highest returning asset class over the last eight years and it’s uncorrelated to everything else. And while there’s certainly debate over the future prospects, it lines up as the holy grail for a portfolio. In the sense that, if you size it appropriately, if you size it small, the risks are idiosyncratic. It actually reduces the risk of a portfolio. So endowments and pensions, as they get comfortable with the space, in all aspects regulatory, compliance, as well as underwriting investment risk. They're going to get in. And that's a massive wall of money coming in to a relatively small asset class.

Silverstein: And what do you think the timeline is for that?

Paul: I think the first endowment is probably going to write a check in the next few months, a small check. Endowments won't be in size for probably six months and not in size by — from their perspective for probably 12 months. Pensions are probably 18 months away and the key — the reason given those dates is having third-party custody, that is a legal qualified custodian, is a huge hurdle particularly for pensions. You have issues like ERISA, that are actual fiduciary challenges. And having a third-party qualified custodian, for many crypto assets, is probably something like 12 months away, maybe 18 months away.

The cryptocurrency market is now doing the same daily volume as the New York Stock Exchange

By Oscar Williams-Grut - December 20, 2017 (

Traders on the floor of the New York Stock Exchange on December 6
REUTERS/Brendan McDermid

  • Global volume in cryptocurrency markets has passed $50 billion, close to the average turnover on New York Stock Exchange.
  • The comparison is inexact but highlights just how popular digital currencies have become.

LONDON — Global cryptocurrency markets are now averaging the same daily trading volumes as the New York Stock Exchange.

Twenty-four-hour trade volume in the cryptocurrency market passed the $50 billion mark on Wednesday, according to the data provider

That is close to the average daily volume of trade on the New York Stock Exchange this year. Daily trading volumes on the London Stock Exchange hover at about £5 billion, or $6.7 billion.

The comparison is inexact, as the cryptocurrency market is arguably closer to the foreign-exchange market, which has daily volumes of over $5 trillion.

But it highlights just how hot the cryptocurrency market has become in 2017. Unlike the foreign-exchange market, cryptocurrency trading is largely done by small-time, retail investors, making it closer to the stock market (though some huge institutions are playing in the market.)

Investors have flocked to cryptocurrencies in 2017 because of the eye-catching returns of bitcoin, which has grown by about 1,500% against the dollar. A boom in so-called initial coin offerings, in which startups issue their own cryptocurrencies to raise money, has created a raft of other digital assets for investors to speculate on. There are now more than 1,300 cryptocurrencies in circulation, according to

But many people within the financial industry have expressed concern about the largely unregulated market. The UK's top financial regulator warned earlier this month that people should be prepared to lose all the money they invest in bitcoin, and JPMorgan CEO Jamie Dimon has called cryptocurrencies a "scam."

December 04, 2017

$300 Bln is a drop in the ocean, Bitcoin is still a baby and can’t be a bubble

By Darryn Pollock - November 27, 2017 (

Looking at the total market cap of the cryptocurrency market, which recently crossed over the $300 bln mark, it is both exhilarating and terrifying at the same time. This digital currency world that came into being less than 10 years ago has grown astronomically in such a short space of time.

Indeed, 2017 alone has seen just Bitcoin go from $800 to nearly $10,000, and there is still a month to go. The records have crumbled for the Big digital currencies, as well as the new ones as the boom in ICO’s have also help set unprecedented growth.

Thus, as the most impressive performing asset class ever seen, surely Bitcoin is on the verge of taking over the world? Even that has two ways of being viewed - in relation, or in fear - but, no, Bitcoin is a small fish.

Bitcoin vs Gold

Looking at the actual commodity markets out there, and weighing up Bitcoin’s $300 bln, it quickly becomes apparent that the digital currency is still splashing in the shallow end.

Gold, which Bitcoin is supposed to be challenging, has a market cap of $6 tln. On top of that, only about a fifth of all the mined gold is held for private investment purposes, the rest is either in jewelery - the large majority - or the official sector, or still underground.

Thus, seeing as the value of all gold mined comes in just over $7 tln, about $1.6 tln of it is being used for private investment purposes.

Look deeper at the markets. Equities, another investible asset, has a market cap of $55 tln; then there is $94 tln in securitized debt and $162 tln in residential real estate, according to a 2016 report.

Not even close to being overvalued

So, what does it mean if Bitcoin is a record breaker for speed, but not for size? It breaks down a lot of the bubble talk that is floating around there. For a market that only makes up 0.3 percent, when put next to residential estate value, securitized debt, equities, commercial real estate, farmland and gold, -- it can hardly be called a massive bubble.

When it comes to bubbles, and overvaluing, stock picker and Bitcoin Bull Ronnie Moas breaks down the numbers a little more.

“We currently have $200 tln in the world tied up in cash, stocks, bonds and gold alone and all four of those, in my opinion, are overvalued. If 1/2 of one percent of that 200 tln dollars ends up in Bitcoin, you are looking at a one tln dollar valuation that would be above where Apple Computers, the most valuable company in the World, is today.”

November 29, 2017

Billionaire Bull Novogratz - Bitcoin will be the ‘Biggest Bubble of Our Lifetimes’, And that’s okay

By Rebecca Campbell - November 29, 2017 (

Billionaire investor and hedge fund manager Mike Novogratz has made the claim that ‘bitcoin will be the biggest bubble of our lifetimes.’

Speaking at a conference in New York on Tuesday, Novogratz explained that there is a lot of fraud in something that’s ‘exciting’ as the crypto market, reports CNBC, adding:

"I think this [crypto] is going to be the biggest bubble of our lifetimes by a long shot. To be fair, this is a bubble and there’s a lot of fraud mixed in. We look at tons of projects. And some get funded, and they literally look like Ponzi’s".

However, unlike critics who have said dismissed the digital currency as a speculative bubble, the former Fortress manager wasn’t using his bubble comment as a negative connotation. In October, during an interview, Novogratz was asked whether bitcoin’s gains constituted a bubble. Even though he replied in the affirmative, he added that this wasn’t necessarily a bad thing, adding:

"Historically, manias or bubbles happen around things that fundamentally change the way we live. If it’s the railroad bubble or the Internet bubble, it really changed the way we live".

He added that in 10 to 15 years the blockchain and decentralised systems would be in use everywhere, claiming that this bubble is ‘going to be the great manias of all time.’

Since October, bitcoin has not only scaled the $10,000 milestone, but it’s continuing upward trajectory has pushed it up to its current value of $11,147, according to CoinMarketCap, pushing its market total to $185.7 billion for the first time.

The comments from Novogratz, who has compared to bitcoin to digital gold, come at a time when he recently stated that bitcoin could ‘easily‘ reach $40,000 by the end of 2018. Furthermore, he was reported yesterday as saying that the digital currency market cap will reach $2 trillion at the end of next year. At present, it’s worth an impressive $339.1 billion, making it more valuable than Visa and the Bank of America. Slowly, but surely, it’s steadily gaining on the market cap of JPMorgan Chase, at $343 billion, who’s CEO called bitcoin ‘a fraud‘ in September.

However, while Novogratz believes that the cryptocurrency will reach $40,000 by the end of 2018. he doesn’t think that the journey will be smooth sailing.

He added:

"There will be wild crashes in it because you’re going to get to levels so far ahead of where the technology’s at. It makes investing really, really exciting, but difficult".

Since the beginning of the year, bitcoin’s value has, so far, increased by more than 1,000 percent.

Featured image from Flickr/Acumen.

November 27, 2017

Bitcoin now worth more than Nike, Disney, McDonald's and IBM

By Jeff Francis - November 27, 2017 (

Derided by most financial analysts for years, Bitcoin has surged dramatically in 2017 and now has a higher market capitalization than most corporations, such as Disney, Mastercard, Boeing, IBM, and McDonalds.

One measure of financial worth for a person is computing the sum total of the monetary value of everything they own. In the high-flying world of finance and huge corporations, this is done by figuring out what is called market capitalization, which is a fancy term for the market value of a company’s outstanding shares. For many financial analysts, it must be galling to acknowledge that Bitcoin now has a higher market capitalization than most major corporations.

Bigger than the Mouse House and Mickey D's

For those lucky enough to have bought Bitcoin at the start of the year, the current price of Bitcoin is a very good thing indeed. Bitcoin had been worth roughly $800 at the end of 2016, but it recently broke $9,000 and now sits at $9,700.

So, what does that roughly $10,000 per Bitcoin translate into when figuring out the cryptocurrency’s market capitalization? The full worth of Bitcoin now sits at a staggering $160 billion USD. While this total does not put Bitcoin into the Top Ten companies with the largest capitalization, it does put them at number 35 in the entire world.

If it's a fraud, then Bitcoin is a $160 billion fraud

That sound you hear is the gnashing of teeth by many financial speculators and analysts that have denigrated Bitcoin for a long time. (They’re probably scrambling on how to get some digital currency as part of their investment portfolio now.) While Bitcoin’s market capitalization is not as big as Apple ($873 billion), Alphabet (Google – $715.8 billion), Microsoft ($640 billion), or Amazon ($531 billion), it’s still larger than many companies you’re likely very familiar with.

So, which major corporations have a smaller market capitalization than Bitcoin? Here’s a sampling for you to savor:

Mastercard ($158 billion)
Pepsico ($156.8 billion)
Boeing ($152.5 billion)
Disney ($151 billion)
IBM ($143 billion)
3M ($137 billion)
McDonalds ($135 billion)
Nvidia ($124 billion)
Nike ($96 billion)
Electronic Arts ($33 billion)
Target ($30 billion)

It does appear that some financial analysts are still wrapping their heads around the rise of Bitcoin. A senior market analyst at ETX Capital, Neil Wilson, said this after the Chicago Mercantile Exchange announced it would launch Bitcoin futures in December:

"The legitimacy this gives bitcoin as a tradeable asset is very important. The market cap of bitcoin now exceeds that of IBM, Disney [or] McDonald’s".

But he also added:

"But for traditionalists, it’s hard to fathom. Rather than a commodity or currency, bitcoin is like owning stock in a company that will only ever issue 21m shares and never pay a penny in dividends.

The only way it has value is if the next guy is willing to pay you more for it – the greater fool. With no intrinsic value to bitcoin, it’s hard to see this as anything other than a giant speculative bubble".

Still, there’s no denying the madcap ride that Bitcoin has been on in 2017. Who would have thought a few years ago that Bitcoin would have a greater worth than companies like IBM, Boeing, Disney, or Mastercard?

Images courtesy of PxHere, Flickr, and Vimeo PRO.

Crypto Super Moon - When Altcoins rise with Bitcoin

By Christine Masters - November 27, 2017 (

As Bitcoin nears $10,000 with certainty, altcoins are also inviting back investors, doubling in the past weeks and continuing to gain ground lost in September and October.

For cryptocurrency investors, an event likened to a "super moon" is rising right now, a joint bull market in Bitcoin and altcoins. While before the expected SegWit2X hard fork altcoins were sold to acquire Bitcoin, now, other digital assets are once again having their moment to shine and invite new buyers.

And the rise of all digital assets has been happening for several days now, with only temporary corrections.

The events of the last days, when a pump was expected for Bitcoin Cash, led Bitcoin to a height at $9,769.50, while the total market cap of all cryptocurrencies spiked to more than $304 billion. At the same time, Bitcoin's dominance is going down again, to 53.5% of the market cap.

The data spans more than 1300 cryptocurrencies of various ages, traded across more than 7,000 platforms.

The market dominance of assets has been mixed, with Ethereum's influence sliding, while Bitcoin Cash seems to pick up strength. But the climb of the price of altcoins taken as a whole mimics that of Bitcoin, showing that Bitcoin is not going to destroy the hundreds of other digital assets, but perhaps give them a boost.

Among the strong growers was EOS, at around $0.50 a month ago, now pushing to the $3 levels. EOS rose by more than 40% in the past day, to $2.76.

Litecoin has headed for the $100 projected for the year-end, adding 7% in the last day to top the $90 levels and settle there. Ethereum is within the $500 range, to be easily reached within hours. DASH has slowed its climb at $634, almost without change in the past 24 hours.

The top 50 coins on CoinMarketCap have grown in the past week by leaps of between 30 and 140%, with very rare losers. As the year of records approaches an end, and new investors are accelerating the adoption of cryptocurrencies, the price rally may continue- or come to an abrupt end, as the assets are still extremely volatile and prone to deep corrections and selling.

November 24, 2017

Bitcoin price holds above $8,250 despite Ethereum, Bitcoin Cash surges

By Josiah Wilmoth - November 24, 2017 (

The Thanksgiving leftovers have been neatly packaged and stored away in refrigerators across the U.S., but investors will not be receiving any Black Friday discounts in the cryptocurrency markets this year. The three largest cryptocurrencies advanced in unison today, with the bitcoin price holding above $8,250 even as ethereum and bitcoin cash raced past significant milestones.

Source: CoinMarketCap

Against this backdrop, the total cryptocurrency market cap extended its record-setting streak. Having surged past $250 billion for the first time the previous day, the crypto market cap added more than $5 billion on Friday, bringing its new total to a present value of $258.7 billion.

Source: CoinMarketCap

Bitcoin Price Weathers the Storm

Ever since the post-SegWit2x cancellation bitcoin cash pump, there have been rumors that BCH advocates would mount another rally — perhaps on November 23, when U.S. investors and traders would be less active in the markets due to the Thanksgiving holiday. That theory was proved correct, though not to the degree that many expected.

The bitcoin cash price climbed nearly $600 — from $1,200 on Wednesday to $1,800 on Thursday — before pulling back to a present value of $1,658. This nevertheless represents an eight percent day-over-day increase and brings the BCH market cap to $27.9 billion.

Bitcoin Cash Price Chart | Source: CoinMarketCap

However, contrary to the last bitcoin cash pump, this one did not come at the expense of bitcoin. The bitcoin price did give investors a brief scare by temporarily falling below the $8,000 mark, but it quickly recovered and actually tested its all-time high on several exchanges.

Bitcoin Price Chart | Source: CoinMarketCap

At present, the bitcoin price is trading at a global average of $8,260, which translates into a $137.9 billion market cap.

Ethereum Price Reaches Record $420

Bitcoin’s resilience is even more impressive given that bitcoin cash was not the only top-tier cryptocurrency that threatened to funnel capital away from bitcoin to fuel its own surge. The ethereum price mounted a rally of its own, punching through the $400 level for the first time since June. The ethereum price ultimately rose as high as $425 — a new all-time high — and is currently trading just below that level, at $420.

Ethereum Price Chart | Source: CoinMarketCap

Ethereum now has a market cap of $40.3 billion, giving it a $12.4 billion edge on bitcoin cash.

Other Markets Take a Holiday

The remainder of the top 10 was surprisingly quiet on Friday, with four cryptocurrencies moving less than one percent and just one venturing past the two percent marker.

Source: CoinMarketCap

That asset was IOTA, whose price plummeted by 18 percent following an extended — if uneven — rally. The IOTA price is now $0.734, which translates into a market cap just above $2 billion and drops IOTA to ninth in the market cap rankings.

Posted by Josiah Wilmoth
Josiah is a former ancient and medieval literature teacher. He has been writing about cryptocurrency since 2014, and his work has been cited in Business Insider, NPR, and Yahoo! Finance. He lives in rural North Carolina with his wife and son. Email him directly at josiah.wilmoth(at)

October 20, 2017

Bitcoin breaks $6,000 barrier. Market Cap now exceeds $100 billion

Bitcoin Breaks $6,000 Barrier, Market Cap Now Exceeds $100 Billion

By David Dinkins - October 20, 2017 (

Bitfinex, the highest volume BTC/USD exchange, broke the $6,000 barrier earlier today and has now been joined by all other major exchanges. At press time, the price of Bitcoin had reached $6,041 according to, causing its market capitalization to exceed $100 bln for the first time ever.

What’s news got to do with it?

The latest surge comes after a week of consolidation over the $5,000 mark, despite the comments of naysayers like Jamie Dimon and the president of Brazil’s central bank. In the last month, China banned ICOs and Bitcoin exchanges, South Korea banned ICOs, the US SEC stepped up scrutiny of ICOs, and the CEO of Chase Bank has been unable to keep his mouth shut.

None of it matters.

For years, Bitcoin has been called “the honey badger of money,” and “antifragile.” The “Bitcoin don’t care” meme is perhaps most applicable of all right now. Bitcoin simply doesn’t care what China does, or what bank CEOs say, or what central bankers think. The only thing Bitcoin cares about, apparently, is increasing in price and adoption.

Can’t hold it back

Many have speculated that institutional money is making its way into Bitcoin, and they are likely correct. LedgerX was recently approved by the Commodities Futures Trading Commission to create a regulated Bitcoin options market. Such a market would give institutions wary of holding the actual digital currency a way to expose themselves to its price movements. LedgerX is scheduled to debut Bitcoin options trading this month.

Bloomberg reports that industry executives expect approval of a Bitcoin ETF in the future. They point to LedgerX, saying that with a regulated derivatives market having been approved by the CFTC, it’s only a matter of time before the SEC gets on board and allows an ETF to be created. Earlier this year, SEC had themselves stated that in the event a regulated options market is developed, they may reconsider their position on Bitcoin ETFs.

The approval of an ETF, or exchange traded fund, is seen to be the holy grail of institutional Bitcoin adoption. Such a fund would be required to actually possess enough Bitcoin to be fully “backed,” and would be easy for institutional and retail investors to use.

What fork?

Perhaps the most surprising aspect of Bitcoin’s latest price moves is the rapidly approaching SegWit2x hard fork. Though 85% of miners are still signalling their intention to go through with the fork, recent defections (such as F2Pool) and statements from exchanges like Bitfinex and Coinbase may have convinced investors that the hard fork will not actually happen.

When asked about SegWit2x, industry CEO Bharath Rao commented that the debate seems to be between miners and businesses on one side, and users and developers on the other. He suggested that whatever chain the miners and businesses ultimately support will likely end up being successful, though it’s hard to predict people’s actions and their ramifications.

Still, Rao believes that forks can actually be perceived as a good thing, because when a winner emerges from such a fork, the marketplace will assume the controversy is ended and will boost the price of the victor.

If Bitcoin’s scaling crisis is finally resolved this November, through the victory of either chain or by means of a last minute fizzling of the hard fork threat, the market will likely continue to act favorably.

October 19, 2017

Why Bitcoin and Crypto Market Cap will Hit $1 Trillion in 2018

By Nick Ayton - October 19, 2017 (

So here is the thing that most people don’t understand is going on when it comes to crypto currencies, Bitcoin, Blockchain, and especially ICO’s.

Many people are star-struck with the gains made in 2017 with $2 bln invested into ICOs and think this is a breakthrough moment. Let me tell you it is not. We haven’t seen anything yet as 2018 will dwarf 2017 advancements by a factor of x10 or x20.

In 2018 there will be $20 bln to $25 bln invested in ICOs and it won’t stop there as the major pieces start to fall into place as the real big game unfolds. Then kaaaaBOOM!

Heading to trillion

The market cap if crypto will explode and pass $500 mln, and start to head to $1 tln. But how - I hear you say? Simply through institutional money, which is ready, willing, and able to pile in.

So what happens to the price of crypto, to BTC? Doubles, trebles and more…overnight. The crypto indexes will polarise into securities that tokenise assets as well as equities, and those that don’t, with app tokens that are products and services.

How do I know? All we have to do is create the conditions. We have done just that, a new approach to ICOs starting from the perspective of regulation and compliance where we are able to meet the needs of institutional investors, which opens the flood gates.

New factors now come into play

Fractional Reserve Banking will continue to fall apart aa QE further devalues fiat currency and erodes spending power. More and more people will buy into crypto as the people look for safe havens.

Russia, Japan and other sovereign nations will issue a full central-backed cryptocurrency that will be fungible against BTC and the leading cryptos.

A new range of Blockchain/crypto funds will offer investors the opportunity to buy the market and reduce underlying volatility. Market actors make it more attractive for investors to get involved in crypto, where even a small strip will boost any portfolio’s performance.

The planets are aligning very fast as all assets and especially equities will be tokenised which will displace the Ponzi scheme VC boys once and for all, and ICOs take over as the preferred method to raise capital.

The shift is coming sooner than you think… be ready! "Ignorance is strengthened." It is time to plan for the bigger picture and make your move.

October 15, 2017

Bitcoin’s market capitalization has begun to test USD 100 billion area

By Samuel Haig - October 15, 2017 (

The total market capitalization of bitcoin is approaching $100 billion USD, currently sitting at approximately $94 billion USD. The current market capitalization is comparable to that of numerous top 100 global companies.

Bitcoin’s Market Capitalization Has Begun to Test the $100 Billion USD Area

The market capitalization of bitcoin is currently sitting at approximately $94 billion USD after setting a new all-time high of over $92 billion USD earlier this week. Bitcoin’s market capitalization has so far made gains of over 600% during 2017, after starting the year at approximately $15.6 billion USD.

If compared with the market cap of the top 100 global companies according to Pricewaterhouse Coopers, bitcoin would rank 81st, just three places shy of Goldman Sachs – which boasts a market capitalization of $96 billion USD according to the data. Bitcoin would be one place above the United States Postal Service ($93 billion USD), and several places above Nike and Australian mining giant BHP Billiton – who both have a market capitalization of roughly $92 billion USD.

When contrasted with the annual gross domestic product (GDP) of nation states, bitcoin’s current market cap would garner it a ranking of 66nd when compared to 191 countries, according to IMF projections

If bitcoin were a country, it would be ranked behind Ukraine, who has an annual GDP of $95.9 billion USD. Ranking behind the hypothetical nation of bitcoin would be the Slovak Republic ($89.1 billion USD), Sri Lanka ($84 billion USD), and Ethiopia ($78.4 billion USD).

Bitcoin Currently Accounts for 54.4% of the $175.2 Billion Total Market Capitalization of All Cryptocurrencies

The total market cap of all cryptocurrencies is currently comparable to that of number thirty-seven ranked Philip Morris International ($175 billion USD), which trails just behind Home Depot Inc. and Toyota Motor Corp ($177 billion USD each). The total market capitalization of all cryptocurrencies is higher than the annual GDP of Algeria, the 55 largest economy ($173.9 million USD), and below that of Iraq ($189.4 billion USD).

The market cap of other major cryptocurrencies have also elevated this year. Ethereum currently boasts a total market capitalization of almost $32.5 billion USD, which is larger than the annual GDP of the 98th largest economy, Cameroon ($29.5 billion USD), and behind Bahrain (34.3 billion USD). Ripple has the third largest market capitalization of all cryptocurrencies, ($10 billion USD approximately), which would rank it behind the world’s 135th largest economy, Mongolia.

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