With the major milestone for the dominant cryptocurrency lying behind us as is has been already 24 hours since Bitcoin entered the world of Wall Street, “FOMO” – fear of missing out effect has driven smaller cryptos prices to the stars, causing famous trading platforms to heavily lag or go offline for hours.
Cryptocurrency started as an experiment and remains one yet, but it seems that flirting with the actual “money world” suits the digital currencies, as at over €15.400, Bitcoin has grown more than 5% just during the last day.
The futures trading of Bitcoin legitimizes the cryptocurrency to some degree, allowing more institutional money to flow in while giving alternative ways to companies to hedge positions. The price gap between Bitcoin’s real price and the futures trading price shows that there is a considerable amount of people that are seeking exposure to Bitcoin without wanting to invest in the cryptocurrency itself.
But it seems that numbers for Bitcoin-like technology crypto coin Litecoin and “posh” Ethereum are not easy to neglect either. Reaching €333 throughout the day, Litecoin has seen its price stuck around €70-80 during the past week. Ethereum has also reached its highest price ever at €540 during the same day, growing a spectacular 21%m while Litecoin broke all its records with an 83%.
But even though both are expected to correct their prices throughout the day, breaking “procedures taboos” sets less and less limits to these most promising cryptocurrencies, that are merely catching up with Bitcoin.
But Litecoin and Ethereum don’t owe their growth to Bitcoin’s market entrance, as each has their own reasons for growth. Litecoin, which is a lightweight, faster Bitcoin competitor, might be benefitting from a recently launched marketing campaign, announced last week by Litecoin founder Charlie Lee. A fork itself of the original Bitcoin, Litecoin uses the same process to create the coins, and it uses blockchain to decentralize the banking. However, Litecoin still is four times faster, generating “blocks” faster, every 2.5 minutes instead of every 10 that applies to Bitcoin, making it faster and cheaper.
Litecoin still flies, while being inexpensive compared to the thousands a Bitcoin currently trades at. Bitcoin’s transactions are slow, causing issues to the platforms when demand is high.
Ethereum, on the other hand, is more of a decentralized app platform than a cryptocurrency, could be boosted by a recent statement by U.S. Securities and Exchange Commission chief Jay Clayton, laying down a sober and knowledgeable overview of initial coin offerings (ICOs). “The technology on which cryptocurrencies and ICOs are based may prove to be disruptive, transformative and efficiency-enhancing,” said Clayton. “I am confident that developments in Fintech will help facilitate capital formation and provide promising investment opportunities for institutional and Main Street investors alike,” concluded the SEC chairman.