Ripple's protocol relies heavily on time synchronization, timely message delivery, having a reliable network, and a list of trusted nodes. If one or more of these conditions are violated (especially if the attackers work from within), then the system may fail, ”the experts explained. The study notes that the research is "theoretical and has not been tested in real life." However, “decades of computer security research have shown that hypothetical attacks that were initially thought to be interesting to academia eventually became reality.
Experts cite regulatory uncertainty as an obstacle preventing large institutional investors from investing in cryptocurrency. Another reason may be the high volatility of the bitcoin and cryptocurrency rates. Nevertheless, the process of entry of "institutions" into the cryptoindustry has already begun, although in the first five years they will act extremely cautiously and buy coins only for hundredths of the portfolio.
Together with Bitcoin, most of the altcoins were in the red zone. Cryptocurrencies from the TOP-10 lose 4-8%. The total capitalization of digital currencies fell over the day by $ 9 billion to $ 332 billion. The Bitcoin dominance index against this background showed an increase of almost a percent over the day. Investors in altcoins are much more mobile, which smooths out the failures of the first cryptocurrency, but also leaves Bitcoin in the role of catching up with the growth impulses of the markets. Another beneficiary of negative moods on the crypto market is traditionally stablecoin Tether (USDT), which showed an increase in trading volumes by almost 31% to $ 44 billion per day. The crypto market is waiting for new triggers, and before they appear, the sideways price trend may be quite good news for its participants.
The total capitalization of cryptocurrencies has dipped by $16.7 billion over the past 7 days. Nevertheless, no panic is felt in the market. Over the past week, Bitcoin has lost almost 5%, the rest of the TOP-10 are still losing 6-12%. General investor sentiment is underpinned by the third bitcoin halving that happened in May, as well as the unshakable confidence of miners in the future of the benchmark cryptocurrency. After the last recalculation, the difficulty of mining increased by 3.6%.
Investors betting on bitcoin are still bullish. Pay attention to the decrease in the exchange reserves of the first cryptocurrency to a 21-month low, writes forklog. Losing confidence in an asset, investors tend to send cryptocurrencies to exchanges in order to be able to sell them quickly.
More and more people are entering the cryptosphere. BTC trading volumes are steadily growing along with computing power (hash rate), which once again proves the strengthening of Bitcoin's position. The behavior of retail investors during a pandemic varies significantly across age groups. Investors are usually interested in alternative assets, but if the older generation buys gold, then the younger generation buys bitcoin. Gold and Bitcoin have attracted significant amounts of assets over the past five months as a result of increased interest in "alternative" currencies.
The influx of institutional liquidity towards the Bakkt platform (bitcoin futures with physical delivery of the asset) also helped to push bitcoin to local highs. Bakkt said that the number of contracts increased by 85% on July 28 from the previous high of $11506. However, as salutary as institutional liquidity may seem, it is worth remembering that large investors are not crypto enthusiasts and are only focused on capitalizing on price volatility as much as possible.
I absolutely agree with the first three positions in that portfolio while the investment viability of the other three cryptocurrencies is doubtful. Giving half of the portfolio space to Bitcoin is a smart and well-calculated move since BTC is by far the only crypto that provides a relative guarantee of profitability in both the mid term and long term run. Binance Coin has been a strong performer this year but I believe that it had already begun to lose the momentum, though it will continue to show mild gains in the next few months. Ethereum is also a safe bet, despite the fact that it has been relatively weak in its recovery after the bearish period.
As things stand, only a fool wouldn't give a sizable part of his portfolio space to Bitcoin just from looking at current market domination. But I also think that the portfolio owner shouldn't have diversified the portfolio so much. Judging from the current situation, there is no logical need to keep more than three altcoins in the portfolio. I would advise him to keep Binance Coin, Ethereum, and Tezos, and to get rid of the rest. I agree that XTZ has been performing well as of late, same applies to BNB.