Cryptocurrency This Week

Heading into the weekend, nearly all of the top 10 digital currencies by market cap had made non-trivial gains, with some tokens seeing dramatic increases in value in a short period. Industry leader bitcoin is trading above $6,700 as of 1 p.m. EDT on Friday, but that marks a gain of just over 4% from that time one day prior, according to data from Coinmarketcap. The biggest news in the cryptocurrency price world is ripple (XRP). In just 24 hours, ripple gained an astonishing 54.6% in value, climbing to more than $0.57 per token. This remains well below its record high of close to $4 achieved several months ago, but it nonetheless signals a potential resurgence for XRP. Indeed, given that ethereum has dwindled in price in recent weeks, ripple briefly overtook ETH to become the second-largest cryptocurrency by market cap. As of this writing, ethereum has eked out an advantage in terms of market cap, but the fight for second place is far from over.

New York Attorney General Slams Exchanges

One of the biggest stories in the digital currency world this week came from the New York attorney general’s office. Attorney General Barbara Underwood’s office issued a statement indicating that “many virtual currency platforms lack the necessary policies and procedures to ensure the fairness, integrity, and security of their exchanges,” according to earlier reporting. Beyond generally casting doubt on the security of cryptocurrency exchanges on a general level, Underwood’s office highlighted three cryptocurrency exchanges it believes are operating unlawfully in New York state. Kraken, and Binance are the three exchanges named, and the ultimate result of this accusation remains to be seen.

Novogratz Predicts Gains

Mike Novogratz, the former hedge funder turned cryptocurrency asset manager, has long been outspoken in his belief that the digital currency world is on the verge of stratospheric success. This week, Novogratz told an audience at Yahoo Finance’s “All Markets Summit” in New York that he believed that digital currencies had reached a low point and that bitcoin in particular was destined for gains in the future.

Millennial Interest

A recent report indicates that millennials may not be as tuned out as some stereotypes suggest. A survey by YouGov Omnibus found that roughly half of all millennials are interested in using cryptocurrencies in place of the U.S. dollar. While there is no sign that the digital currency space will overtake fiat currencies yet, a younger generation of investors and consumers is increasingly open to that possibility.

Investing in cryptocurrencies and Initial Coin Offerings (“ICOs”) is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or ICOs. Since each individual’s situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein. As of the date this article was written, the author owns bitcoin and ripple.

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