BTC Market Cap May Plummet to $77 billion in 10 Months, Say Swiss Researchers

post image

The total market cap of BTC has all the chances to drop from over $118 billion to no more than $77 billion by the end of 2018, the new research says. Switzerland-based professors have been observing the most popular cyber-coin in the world and found out that this asset no longer attracts huge numbers of users.

The slowing of active BTC clients is the first sign which, according to "Metcalfe's law,” shows the potential of bitcoin’s total market cap to drop, CNBC reports.

Our top trading bots

What is Metcalfe's Law?

As per this rule, the value of the net is proportional to the scope of people who use it. In case of the “King of all cryptos,” this law points out that in less than ten months BTC’s total market cap will not exceed $77 billion.

This is what two researchers in the field of business hazards – Spencer Wheatley and Didier Sornette – concluded. The professors stated it in the document, dated March 16.

What to Expect?

To imagine the scope of the foreseeable changes, let’s state some facts. If bitcoin’s cap indeed decreases to $77 billion, that will be about 35% less than the total market cap of BTC on April 3.

The Swiss professors also added that ahead all BTC users should anticipate reassessment of bitcoin’s price. However, according to their opinion, it is not going to be unexampled but essential instead. Therefore, everybody should brace for future fluctuations of bitcoin’s price.

Notably, in 2017, bitcoin grew up 13 times. However, it also managed to lose 50% of its value, gained last year, within the first quarter of the current year. As of writing, bitcoin is being traded at about $7,000, and it remains to be the most considerable cyber-coin in terms of market cap.

Bubble Will Soon Burst?

Also, in the paper, presented by Swiss researchers, there is included a math model for assessing speculative bubbles, called "Log-Periodic Power Law Singularity."

Interestingly, the professors have found that there are four BTC bubbles which can be related to that pattern.

According to the document, among impulses for this kind of bubbles, there is a 2011 cyber-attack at the digital money trading venue Mt. Gox, which does not exist anymore, as well as the danger of shutting down all the crypto bourses in South Korea at the end of 2017. According to the document, those events and some others of that type led to significant declines in the price of cryptos.

Lots of bitcoin enthusiasts and supporters gladly claim that despite any corrections, the currency will soon recover. Moreover, lots if BTC bulls like Tom Lee even forecast the unprecedented skyrocketing of the “king.”

The Swiss researchers, in their turn, try to be cautious when it comes to advising people to deal with cryptos. In particular, in their paper, they stressed that users should not concentrate on passing triggers, "but monitor the increasingly unstable state of the bubbly market, and prepare for a correction."

Amazon Embraces Blockchain Despite The Dip on Crypto-Market
Even as crypto-market plunged from nearly $830 billion in January to $121.5 billion this week, the leading e-commerce company sees an opportunity in the...
Report Shows 84% of Surveyed Companies Are Actively Involved in Blockchain
DLT can be applied far beyond the realm of cyber coins. That’s why hundreds of companies around the world are searching for ways to get involved with DLT...
ETN Allows Americans to Acquire BTC Without Buying it
It is now possible to purchase the “big daddy” bitcoin without actually acquiring it. And the thing is not in the long-anticipated launch of the ETF which...
First Bank in Switzerland Provides Business Accounts to Crypto-Startups
In Switzerland, companies, which focus on cyber assets and DLT, have got an incredible opportunity – to open business accounts in one of the country’s...
Amazon Partnering With a Startup To Bring Blockchain To Its Clients
Facebook is not the only tech titan that is looking into the blockchain and cryptos. Amazon, and its cloud computing arm, in particular, is considering...
Coinbase's Secrets Disclosed: Company Gets Ready For Huge Growth In Trading
The top American cyber money trading venue has been tranquilly getting ready for a super-rise in trading volume, CNBC reports. That bourse, apparently,...
Bank of America Admits it Might Not Withstand the Popularity of Cryptos
For quite a long time crypto experts have been warning financial establishments, banks in particular, that they might not be able to rival the growing power...
Kaspersky Lab Has Detected A Vulnerability In The Telegram Messenger
Kaspersky Lab discovered a zero-day vulnerability in the Telegram messenger, which was used by hackers to infect a Windows application and distribute software...
Crypto Regulation is Inevitable, Says IMF Chief Christine Lagarde
The governments’ regulation over the industry of digital assets is inescapable. Such an opinion expressed the head of the International Monetary Fund –...
Hackers Cracked the DNS-server Of BlackWallet And Stole $400 Thousand In The Cryptocurrency
Unknown hackers broke into the DNS server of the BlackWallet.co service, which provides Web-wallets for the Stellar Lumen (XLM) cryptocurrency. They stole...
How EOS Will Stir Up The Blockchain In 2018
People who have kept an eye on the cryptocurrency ecosystem over the past few weeks will have noticed that the EOS project is of great interest all of a...
Swiss Bank Account' & Risk For People: What US Treasury Secretary Thinks of BTC
Recently the US authorities started keeping an eye on bitcoin and even extended their wishes to become cryptocurrency watchdogs, as the country’s Commodity...
Stock Market or Bitcoin – Survey Shows What Americans Trust in More
Against the background that Wall Street has attempted to reign in Bitcoin’s light as two exchanges have launched Bitcoin futures trading, a survey among...
Russia to Endorse Bitcoin and Take Control Over Mining
After Russian Central Bank presumed that Bitcoin and its ilks could jeopardize consumers, the country’s finance ministry has suggested that government...
Blockchain ICO Speculation - Is It Healthy?
The new investing method is becoming real due to advances in the blockchain technology. Today we can say with confidence: ICO-investing is trending! On...