13.3 Billion Dollars in 4 Days, why?

13.3 Billion Dollars in 4 Days, why?

The flow of capital into digital currency has been astronomical in the last 4 days. Just like the picture there are some big waves being pushed around this market. Since I starting to write this article last night, another billion has flowed into the world of digital assets.... with the global market capitalisation at 70 billion USD +, about 15 billion has flowed in, in the last five days! 

Why this meteoric rise? What is going on?

My analysis based on individual asset inflow and total market cap is;

- general digital currency awareness is building momentum with media and social media chat traffic increasing

- the banking sector has started to adopt and implement blockchain technology to transfer conventional currency at a lower cost to them (Ripple protocol testing and adoption by banks).

- the flow of 7 billion + into Ripple in 2 weeks indicates an isolated "insider" injection of funds (there will be another blog on this later). 

- there has been some big "pump" and "dump" activity in the cryptocurrency markets over the last month indicating some big stake holders and market manipulations going on. This has added to awareness and fed into social chat, building excitement in the sector.

- some major announcements and progress with some of the major cryptocurrencies in no particular order eg; Golem beta testing, Etherium onboarding, Ripple manipulation with 7 billion flowing in, Litecoin segwit activation, DASH development and recent "hacking" with wannacry ransomware and asking of payment in Bitcoin has increased awareness.

Looking at this space objectively we see that there has been huge interest and confidence with commitment of capital, this cycle has reached a tipping point and my early predictions of Bitcoin passing the $2000 USD mark are ahead of curve (technology adoption). This indicates in my opinion a global commitment and acceptance of blockchain technology and the willingness to develop it.

Where does this leave us?

We are definitely in the Innovators & early adopters phase. What we will see now is the flow of market capital into this space. The speed and amount will indicate how fast we move towards the status quo for this tech. Based on market capitalisation of other traditional stores of value like; gold/ precious metals, stocks/ shares, investments/ housing and the flow of fiat currency into the adoption of digital currency for consumer spending, will determine the price of digital assets. With only a few percent flow into the digital space we will see the gain of thousands of percent growth in these assets. The most robust assets and the ones that provide the most utility to society will absorb most of this capital.

My call is that if things remain on trend with current development and adoption, that we will see Bitcoin smash through the $3000 USD barrier within the next 2-3 months, Dash will go towards $200-$300 when their platform dev release the next customer focused interface and spending platforms. Etherium should easily top $200-$300 with the onboarding of major companies and as applications start rolling out. Ripple will fight it out with NEM and Stellar Lumens, Ripple will continue to grow because of the false inflation of the price by the banking sector injections. Litecoin will be a stable parallel currency. Monero will remain floating until it's issues are sorted out and a customer app/ interface is released (once Monero sort this out I can see it's price rising to easily $500-$1000 USD overnight just because of the utility it provides and the applications it will provide not only as a stand alone currency but for other side chains to plug into). Happy Bit-coining..