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- Cryptocurrencies consolidate after parabolic movement and correction
- He and he are still in bull markets
- Speculative demand continues to drive new issues
- The market capitalization of the holo amounts to almost 1.8 billion dollars
- The zCash is just above Holo on the value scale
The cryptocurrency asset class has gone on a wild ride in 2021. Traditionally, commodities have been the most volatile instruments of all, but they are tame when compared to bitcoin and ethereum and the other 11,380 cryptocurrencies floating around. The cyberspace.
Detractors continue to question the asset class based on its nefarious uses. Nonagenarian Warren Buffett and his partner, Charlie Munger, come from a different generation. Both men in their 90s have called cryptocurrencies “financial killer squared” and “disgusting and contrary to the interests of civilization.”
Many of the loudest critics of the relatively new asset class come from within governments. These individuals fear the growth of a medium of exchange that transcends borders and threatens traditional control of the money supply.
Proponents point to the weaknesses and manipulation of governments and central banks, which use currencies to expand and contract the money supply for political rather than economic reasons. The recent situation in Afghanistan, as well as China’s crackdown on the tech sector, only reinforce the case for cryptocurrencies, as they are easily transportable without government interference.
Meanwhile, many of the 11,382 digital currencies are nothing more than speculative trading assets that will eventually lose all value. The best chances of survival are for major currencies that have established a critical mass in market capitalization, creating liquidity. The holo and the are two of the main cryptocurrencies.
Cryptocurrencies consolidate after parabolic movement and correction
After hitting highs of $ 65,520 on April 14, bitcoin fell to $ 28,800 on June 21. Ethereum hit highs of $ 4,406.50 in mid-May and fell to lows of $ 1,697.75 in late June.
Following the wild ride up and the rapid decline that more than halved their value, the major cryptocurrencies have consolidated and remained within wide trading ranges. Bitcoin’s midpoint between the highs and lows stands at $ 47,160, and Ethereum’s at $ 3,052.13 per coin.
As cryptocurrencies take in the wild price swings, they remain in bullish mode at the end of August.
Bitcoin and Ethereum remain in bull markets
The weekly chart for bitcoin, below, shows five consecutive weeks of gains from the lows in late June.
The weekly chart highlights the move above the $ 48,000 per coin level on August 24. Bitcoin has broken above the $ 50,000 level this week for the first time since mid-May. The price is now just above the midpoint of the trading range and the upward trend continues. A close above the $ 48,715 level on August 27 would mark the sixth consecutive week of gains.
The weekly chart for ethereum futures shows gains in five of the last six weeks, with only a marginal loss of $ 20.75 per coin for the week of August 16. At the $ 3,205 level, Ethereum was above the midpoint of its trading range on August 24.
Speculative demand continues to drive new issues
Speculative demand for cryptocurrencies likely petered out when prices were cut in half. However, it has recovered significantly as prices have been rising for the past six weeks.
Speculators continue to scrutinize the asset class, looking for the next digital currency that offers returns like those of bitcoin and ethereum and a number of other currencies in recent years. Bull markets are magnetic for those looking to increase wealth, and we’ve never seen a bull like the cryptocurrency asset class. With over 11,360 currencies to choose from and prices soaring, the speculative fever will only increase. Everyone likes a bull market.
Digital currencies with a critical mass offer the best liquidity in the asset class. The holo is the 65th cryptocurrency, with a market capitalization of nearly $ 1.8 billion. The zcash is just above the holo at 64th place, worth just under $ 1.9 billion.
Holo has a market capitalization of nearly $ 1.8 billion
The holo is a currency powered by Holo, a distributed peer-to-peer hosting platform for Holochain applications (hApps). Users who host hApps on their personal computers can receive holo coins in exchange for using the blockchain.
The Holochain website highlights the protocol:
“It delivers on the promises of the blockchain with a combination of proven technology that provides proprietary data, a distributed database, and peer accountability.”
At $ 0.0104 on August 26, the holo’s market capitalization was $ 1.8 billion.
The chart shows that, since the end of April 2018, the holo has traded below $ 0.0004 and above $ 0.02848 per coin. On August 26, the 65th digital currency was below the midpoint of its trading range.
The zCash, just above Holo on the value scale
The zCash ranks 64th among cryptocurrencies this August 26, one place above the holo. At $ 149.5 per coin, the market capitalization of zCash stands at the $ 1.88 billion level.
The zCash is a cryptocurrency with a decentralized blockchain that seeks to provide anonymity to its users and their transactions. The zCash increases user privacy by using zero knowledge proofs (zk-SNARKs) to validate transactions without revealing information that could compromise user privacy.
The zCash website states that it is:
“A fast and confidential digital currency with low fees. It is perfect for mobile payments.”
Since late 2016, zCash has traded from $ 25 to $ 880.76 per coin. At the $ 149.5 level on Aug. 26, it is well below its midpoint since late 2016.
Holo and zCash are in the top 99.5% of the cryptocurrency asset class. With a market capitalization equal to or greater than $ 1.8 billion, they offer the critical mass to trade and are likely to survive the sacrifice of the herd of more than 11,380 cryptocurrencies.
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The holo and zCash offer critical mass and liquidity in the face of cryptocurrency demand | Investing.com