Lis 30

Max Keiser Interview: Bitcoin Will ‘Gobble Up All Fiat’ and Rise Over $100K

Bitcoinist once again caught up with the one and only Max Keiser, Wall Street veteran and host of the Keiser Report. He explains why he isn’t fazed about the Bitcoin price drop, why he pays no attention to ICOs, and why Bitcoin will be around longer than humans. 


‘Bitcoin is the monetary black hole’

Bitcoinist: Since we last spoke in April, Bitcoin has taken quite a tumble in USD price and has had a pretty bad 2018 overall. Why did price drop? 

Max Keiser: The Bitcoin protocol is genius and the more you understand it, the more clarity you achieve. With this in mind, let me answer your questions.

The Bitcoin price got way ahead of itself and we saw a typical pullback. Since I first started buying BTC in 2011 at $1, I’ve seen a few of these.

Many are predicting a prolonged ‘crypto winter’ similar to 2014-2016. Do you see it lasting two years like last time or is it different this time?

The long-term chart is fine. It’s still bullish. Keep in mind, my cost basis is under $200. 

Are we seeing the end of ICOs? Or will they just morph into STOs and become compliant with SEC regulations?

We have given virtually no attention to ICOs because, as I’ve said on my show, ICOs are securities and fall under the regulatory jurisdiction of the SEC. As a former Wall St. stockbroker, I am trained never to try and second-guess the SEC.

When tech bros approach me with their opinion about how the SEC should rule, and what the SEC “doesn’t understand,” I laugh. I’ve seen it all before over my 30-year career. Human nature never changes. Insta-wealth makes people think they’re bulletproof.

Why do you think Bitcoin has been seemingly coupled with stock market performance recently with tech stocks in particular?

Good question. I think the market sees Bitcoin as a ‘risk on’ asset, so it moves in unison with stocks. At some point, the market will understand that Bitcoin, like Gold and cash, is a ‘risk off’ asset. When the market realizes this, we’ll see ATH as safe-haven, capital flight money moves into Bitcoin. 

In September, the Fed raised interest rates by 25 basis points, the highest since April 2008. You ’ve said many times on your show that “you can’t taper a Ponzi scheme.” Are we in for another financial crisis?

We never left the financial crisis. The number of zombie banks and zombie corporations has increased, masked by Fed money and accounting tricks like leveraged stock buy-backs. The dislocations and malinvestments have steadily increased.

The social metrics (in the US) like infant mortality and life expectancy continue to fall apart. The ravages of the 2008 GFC continue to debase our economy and society, but not for folks over at CNBC, CNN, MSNBC, etc., so the truth never gets reported.

How do you think Bitcoin would behave in conditions similar to the ’08 crisis today? 

The long-term trend is intact and will continue its upward path. 

What are your thoughts on the soaring LocalBitcoins volumes in Venezuela? Why is Bitcoin useful for Venezuelans?

Against the Bolivar, Bitcoin, and Gold have had incredibly powerful upward moves. Only using the $USD to map BTC’s performance and impact is shortsighted and misleading.  Think global.

Petro

Can national ‘cryptocurrencies’ like Venezuela’s ‘Petro‘ compete with Bitcoin?

No. Too centralized.

What do you think of Bitcoin Cash’s so-called ‘hash war‘ that we’ve just witnessed?

The protocol has rejected these bad actors. This is what Bitcoin maximalism is all about. Understanding that only Bitcoin has the power to create a fiat-free world while simultaneously destroying all that get in the way. 

What’s the biggest threat to Bitcoin in your opinion?

Bitcoin is the monetary black hole that will gobble up all fiat and rise to more than $100,000 doing it. But humans themselves may never see that day.

I have more faith in BTC than I do in humans surviving the ecological holocaust we’ve triggered with our collective stupidity. Bitcoin might only be used by our robot successors. Ironically, they don’t care about price.

Do you agree with Max Keiser? Is Bitcoin a monetary black hole for fiat? Share your thoughts below!


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Lis 29

Simplicity Language to Give Bitcoin Ethereum-Like Smart Contract Capabilities

Simplicity, a combinator-based, typed, and functional language for blockchain applications can reportedly enable Bitcoin’s Script language to handle more complex yet reliable smart contracts.


Bitcoin Script Language is Limited, For Now

According to a new research from Blockstream on Simplicity – a blockchain applications language – distributed ledgers pose a range of unique challenges, which make traditional programming languages unfit.

What’s more, Bitcoin’s Script language is limited to certain combinations of signature checks, hashlocks, and timelocks. Second layer solutions, on the other hand, such as the Lightning Network, for example, have been built on these primitives and, hence, lack the necessary expressiveness for more complicated smart contracts.

The paper also cites a recent upgrade failure of Ethereum’s EVM (Ethereum Virtual Machince), caused by a disagreement of implementations on the results of a certain computation, resulting in lost funds.

When Smart Contracts Act Stupid: Is Your ICO Smart Contract Safe & Secure?

Simplicity: Complex Bitcoin Smart Contracts

According to the research, Simplicity is capable of providing the necessary flexibility for a wide range of computations, while, at the same time, allowing users to verify the security, costs, and safety of smart contracts.

Furthermore, the low-level programing language is also purportedly capable of solving certain previously required tradeoffs between reliability and expressiveness.

As it stands now, developers are either able to build a complex yet unreliable smart contract (think The DAO) or they are able to build a basic but reliable one. Thus, Simplicity would make make it easier to write complex smart contracts that are more reliable.

It’s also worth noting that this isn’t the first project which aims to enable effective smart contracts for Bitcoin’s network.

The potential solution has already caught the attention of Bitcoin investor Trace Mayer who said the Simplicity language “can help take things to a whole new level.”

You can check out the technical detailed report on Simplicity here.

Earlier in May, Bitcoinist reported that the RSK project, which intends to build Turing-complete smart-contract capabilities for Bitcoin. RSK has partnered up with iExec in order to deliver off-chain computing and to enable dApps to access on-demand cloud computing resources.  

What do you think of Simplicity’s ability to enable complex smart contracts on Bitcoin’s network? Don’t hesitate to let us know in the comments below!


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Lis 28

First Bitcoin ATM Installed in ECB’s Own Backyard

Germany has just got its second Bitcoin ATM in Frankfurt, home of the European Central Bank, as the total worldwide machine count hits 4000 for the first time.


Bitcoin ATM Arrives in Frankfurt

As local media reported November 23, Bitcoin-Store Frankfurt in Germany’s financial center and home of the European Central Bank (ECB) is now home to one of only two BTMs currently operational in the country.

Under the auspices of founder Oliver Pangratz, Bitcoin-Store exists as a brick-and-mortar cryptocurrency guide, offering in-person assistance with all aspects of Bitcoin including helping consumers open wallets and send transactions.

“A relatively small group of people have knowledge of cryptocurrencies in Germany at present,” Pangratz told local news program Hessenschau Monday.

…At Bitcoin-Store we want to get people a bit more enthused about the topic.

coinatmradar Bitcoin ATM

Unlike the US, which now boasts 2370 BTMs according to data from CoinATMRadar, Germany is one of the most sparsely-populated jurisdictions for Bitcoin buying and selling options.

The reason behind the lack of progress remains regulation. As Bitcoinist reported, only a court decision allowed legitimate operation of machines this month, a situation which finance regulator BaFin has suggested may not last.

“Whether the ATM will be found in Munich for a longer period remains unclear and depends on how long the judgment can remain in force,” media reported after the BTM appeared in a Munich casino.

Coinsource Pushes For US-Wide Presence

Across the Atlantic, meanwhile, the competitive push to cast BTMs far and wide has continued in recent months.

Coinsource, one operator which has installed around 200 machines in various US states, finally received its BitLicense from New York regulators at the start of November.

BitLicense Revisions

Planning a presence in all 50 states, the company is one of several laying the foundations for a future surge in consumer-level interest.

“This expansion is not only a step in the right direction for mainstream adoption, but should also be seen as a case study for other companies to make every effort to remain compliant with current regulations,” LeapRate quoted Coinsource general counsel Arnold Spencer as saying Wednesday.

What do you think about Bitcoin ATMs in Germany and further afield? Let us know in the comments below!


Images courtesy of Shutterstock, Bitcoinist archives, CoinATMradar.com

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Lis 27

FCA Investigations Into Crypto Businesses Have Doubled Since May

FCA (Financial Conduct Authority), UK’s Financial watchdog, has doubled the number of investigations into cryptocurrency companies to 50 since May 2018.


FCA Increasingly Looking at Crypto Firms

According to Top Ten accountancy firm, Moore Stephens, the Financial Conduct Authority (FCA), has doubled the number of investigations into crypto related businesses in the UK since May of this year. This takes the total number up to 50 as of October 2018 against a backdrop of increased regulatory scrutiny.

FCA Urges UK Banks to Adopt Robust Security Measures Against 'Risky' Cryptocurrency Business

According to the UK’s 9th largest accountancy firm, failure to correctly address existing problems in the crypto community could lead to heavy regulation in the future.

Moreover, the latest plunge in the price of bitcoin 00 and a massive drop in the value of all major cryptocurrencies has further shed light onto concerns that the market is not properly regulated. This has also caused a surge in the number of complaints to the FCA.

The FCA Isn’t Messing Around

Often accused of regulatory indifference or moving at a glacial pace, it seems that the FCA is finally taking a serious approach to cryptocurrencies. One of the key focuses of their investigation is on closing down unauthorized businesses. These are the types of companies that hold ICOs to raise vast sums of money by using unregulated loopholes.

Tighter regulation in the future is a concern to many in the industry as it is widely believed that restrictive regulation could be inhibitive to innovation. Partner at Moore Stephens, Andrew Jacobs, explains:

The huge sums lost as a result of cryptocurrency prices falling this year will have triggered a rash of complaints to the FCA.

He goes on to add that the rise of Bitcoin and other altcoins’ prices had attracted interest from many “enterprising firms” who aren’t conducting themselves by the book. Now the market has all but bottomed out, this is a problem.

Now that prices have collapsed, fraud and other suspicious activity are likely to be exposed, with greater pressure coming to bear on the FCA to ensure that this market can operate transparently and fairly, with investor protection embedded at its heart. The FCA is now clearly looking to get out in front of potential issues related to cryptocurrencies in order to more effectively manage their risk.

A Properly Regulated Environment

Regulation is still a topic that splits the crypto community down the middle. While many argue that lack of regulation causes problems, Jacobs believes that an environment that is correctly regulated is crucial to building confidence in cryptocurrency for both retail investors and institutions alike. He says:

It is important that any new regulations don’t choke competition in the market to the point where cryptocurrencies become ineffective. Walking this line will be key in helping to establish the UK as a cryptocurrency hub in Europe.

The UK’s FCA released its Cryptoassets Taskforce report in October. The report includes the actions that it will take to mitigate risks with cryptocurrencies, including the correct classification of cryptocurrencies–and which ones fall into the perimeter of the FCA, whether or not the FCA will need to regulate all cryptocurrencies, and an extra section on the need for regulation of e-wallet providers and exchanges.

Will a regulated environment benefit the cryptocurrency industry? Share your thoughts below! 


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Lis 26

Bitcoin ETF ‘Definitely Possible,’ SEC Commissioner Confirms

SEC commissioner, Hester Peirce, recently appeared on the ‘What Bitcoin Did’ podcast, confirming that a Bitcoin ETF was definitely possible.


‘I Dissent’

The most notably pro-bitcoin SEC commissioner, Hester Peirce, appeared on the ‘What Bitcoin Did’ podcast at the weekend. Whilst unwilling to describe a future Bitcoin ETF as inevitable, she did confirm it was definitely possible.

Peirce first won the hearts of the crypto-community with her ‘statement of dissent’, following yet another denied Winklevoss ETF application. In the statement made in July, she publicly disagreed with the Commission’s view, that Bitcoin was not “ripe enough, respectable enough, or regulated enough to be worthy of our markets.”

She felt that the SEC had gone beyond its jurisdiction, in assessing the underlying asset, rather than the specific market that it would trade in.

In the podcast she reasserts that the SEC has a specific mandate, to uphold the regulatory framework. She believes that the SEC should allow for innovation within that framework and not become interventionist.

‘Crypto’ Not A Free Pass

Peirce explains that the SEC has brought in specialists to advise in the area of cryptocurrency, who have led the agency to take to a cautious approach. She believes that it is right to pursue those who use “crypto” in an attempt to scam people out of money but is pushing to allow more scope for innovation.

Just because you are calling something Crypto does not mean you can ignore the rules we have had in place for years… but I do think we also need to be willing to open the doors a little bit wider for innovation.

She stresses that although so far all cryptocurrency ETF applications have been rejected, they are still open.

Ongoing Relationship

Peirce points out that the commissioners have been inviting comments from the public, and that this process is extremely useful. The applications are an ongoing relationship or conversation, the SEC’s orders following denial simply point out issues to address.

One the face of it, it may seem like the SEC is poking around and trying to cause issues but in reality, it might be the opposite.

Peirce explains that many comments enquire about the timing of the route to final approval, but this is not so easy to answer. Each proposal is assessed on its own merits, and each is designed differently. So when a particular proposal will convince three of the five commissioners is hard to say.

Peirce suggests it must run its course.

Meanwhile, this month Switzerland approved the first Bitcoin ETP to trade on the Six Stock Exchange. This is the main stock exchange in Switzerland and the fourth largest in Europe. So it seems the winds of change are blowing and it can only be a matter of time before they reach across the Atlantic.

Will the Bitcoin ETF be approved by the final deadline in February? Let us know below!


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Lis 25

Bitcoin Pioneer Files For Bankruptcy

Washington State bitcoin mining pioneer GigaWatt filed for bankruptcy this week in a suspected bid to sell the company. The move follows the departure, in August, of the company’s co-founder, David Carlson.


From Bedroom to World’s Biggest Bitcoin Mine

Carlson started mining bitcoin as a hobby back in 2012 and saw the potential of cheap hydro-electric power in the state. A former Microsoft engineer, Carlson built the world’s largest bitcoin mine in an old furniture store in Wenatchee in 2013.

The benefit of the reduced energy costs quickly became felt and the company expanded to offer hosting services to other miners. In central Washington, electricity sells for less than a quarter of the national average.

Bitcoin Boomtown

In 2017, as the bitcoin price exploded, GigaWatt planned a multi-million dollar expansion on a nine-acre plot in Douglas County. Local authorities supported the scheme to create 24 prefabricated ‘pods’ where miners could set up their operations.

The company raised $22.6 million dollars in an ICO, issuing tokens redeemable for discount hosting services. Carlson and the other three owners also invested $25 million to back the project. Everything was looking rosy for GigaWatt and Wenatchee.

bitcoin mining

Small-town Slowdown

If falling bitcoin prices made it hard to attract investors and clients, construction delays and budget overruns threw a real spanner in the works. The hosting pods remain incomplete and GigaWatt has faced several lawsuits from investors.

According to the bankruptcy filing, GigaWatt holds less than $50,000 in assets and has creditor claims of $7 million. It faces eviction proceedings from the Port of Douglas County, although these are ‘on hold’ pending the latest filing.

Climate Change

The climate has somewhat changed for miners across Washington State recently. Towns are pushing back against the previously welcomed miners and Grant County has introduced higher energy tariffs for ‘evolving industries.’

Despite this, the Port Executive Director hopes that the project will still be completed, either by GigaWatt or another operator. She said:

The goal would be to have the project in some way shape or form completed so that it is a productive use for both the port district, in terms of lease revenue, but also providing jobs and economic growth for the community at large.

What do you think of GigaWatt filing for bankruptcy? Let us know in the comments below! 


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Lis 24

Cryptocurrency Winter Special: Two to HODL and One to FODL

This week provides another opportunity for a cryptocurrency HODL vs. FODL analysis. With Black Friday having just passed this is the perfect opportunity to do some shopping.


Cryptocurrency Winter is Here

BTC 00 having fallen more than 30% in the prior week has brought many cryptocurrencies lower with it. However, with a lower BTC comes cheaper cryptocurrencies. This week two cryptocurrencies are highlighted as HODLs: DOCK and VET. With DOCK likely to have the most significant gains of those on this list in the short term. Unfortunately, Bitcoin Gold is highlighted as the FODL of the week.

As the cryptocurrency market progresses through 2018 it is important to distinguish which cryptocurrencies are HODLs (acquisition targets) vs FODLs (possible sells).

The prior months have seen niche market cryptocurrencies trading on major exchanges highlighted. This week 2 HODLS are highlighted: a small cap cryptocurrency and larger cap both in their own respective niche market.

DOCK is one of the smallest market cap cryptocurrencies on Binance providing platform users with ownership of their data. VET is a Top 20 Cryptocurrency by market cap, which specializes in supply chain management.

Both of these coins represent the HODLs of the week. DOCK with a market cap a fraction of VET is likely to post higher returns than VET. VET is the ‘safer’ play while DOCK is more ‘high risk, high reward.’

Bitcoin Gold represents the FODL of the week. BTG is a hardfork of Bitcoin, which allows GPU miners to ‘mine’ the BTG fork instead of the ASICs that are used to mine BTC. GPU mining capability is the predominant benefit of BTG, though that is not enough to keep it relevant in the crypto space.

When analyzing cryptocurrencies, it is important to determine if they are acquisition targets (HODL) or if they are relatively irrelevant in the space (FODL).

DOCK would be the cryptocurrency for those wanting a higher risk, very high reward potential coin. VET is a much lower risk given its substantial list of partnerships but is likely to return a lower percentage based on its market cap. BTG seems to be fading into irrelevancy as their sole purpose is GPU mining of a Bitcoin fork.

DOCK

DOCK 00 has landed on the HODL radar for a plethora of reasons. With a $5.5 million market cap, DOCK has one of the lowest market caps on Binance. DOCK was added to Binance at the end of July during the height of the bear market. It is almost as if the public did not even notice.

When DOCK was added to Binance the price shot up to over $0.07. With the price currently hovering around $0.01 that is an 86% correction since July 30, 2018. Having corrected such an astronomical amount in just the last two months DOCK seems to be poised for a breakout.

What makes DOCK qualify as a niche coin among many cryptocurrencies is what their platform stands for. DOCK gives individuals ownership of their data, specifically rewarding them in DOCK. This allows the user to connect multiple social media accounts through one portal while securely storing your personal data in the cloud. The information you wish to share from the cloud will be rewarded based on what it is.

Currently, we provide free internet data to many corporations by just browsing. Why not be paid for that same data?

The benefits of the DOCK platform are not just for the user. Yes, it is more simple to have all your social media accounts logged in via one platform. Yes, it saves time to be able to pick and choose which aspect of your data can be seen by the public wishing to pay for it. However, the benefits are far greater than one would imagine.

Advertisers can tailor adverts to their consumers without wasting money on uninterested demographics. Users will not be bombarded with adverts unrelated to their lives. Time and money are saved by all parties with platform users receiving the most benefits.

DOCK is an ERC-20 token that has found a way to pay users for the data they had previously shared anyways. It is essential to be able to protect your private information in the cloud, DOCK not only protects it, but it also allows you to profit from of it. If there was a high risk, high reward cryptocurrency to accumulate prior to the bull run, DOCK is one of the top contenders!

This week’s market correction has forced DOCK down another 30% positioning it perfectly for a rebound and this week’s top cryptocurrency.

VeChain (VET)

VeChain (VET) 00 is one of the larger cap cryptocurrencies that has solidified itself as a ‘niche’ specialist.

VET specializes in supply chain management and for the majority of 2018 had a market cap in excess of a billion. Unfortunately, VET has corrected with the rest of the cryptocurrency space and has fallen to the #20 spot on CMC with an impressive list of partnerships.

Partnerships and platforms result in long-term relevancy. VET has an impressive platform, and a more impressive list of partners: DNV (specializing in audits), PriceWaterhouseCoopers (Big 4 Accounting Firm), National Research Consulting (Fortune 1000 Company), Chinese Government (Gui’an New Economic Area), Republic of Cyprus, and BMW. VET has aligned with the largest manufacturers, governments, and companies to ensure the world can take advantage of blockchain supply management technology.

Even with a list of partners who dominate industry VET has continued to slide down the list of largest market cap cryptocurrencies. VET is #20 while BTG is #19. VET has a bigger community, better partnerships, and more niche platform than the majority of cryptocurrencies, especially in the Top 20. Of the cryptocurrencies that make up the Top 20, VET seems most poised for a break out when BTC price stabilizes.

A niche market, partnerships that would make Fortune 500 companies jealous, being on the cutting edge of technology, and a market that has just fallen 70+% all make VET a highly attractive cryptocurrency. Will the returns be as high as DOCK’s? It is unlikely. VET will likely remain a Top 20 Cryptocurrency for years to come while DOCK could fade into oblivion following a major bull run.

Bitcoin Gold (BTG)

It is never fun to discuss cryptocurrencies that one should FODL, but this week it is Bitcoin Gold (BTG).

BTG 00 exists because miners of the BTC network wanted to use GPUs instead of ASICs. BTC went through a hard fork (similar to what they experienced with Bitcoin Cash) resulting in BTG, allowing GPU mining.

However, the cryptocurrency space already has thousands of coins and the ability to mine a BTC knockoff using GPUs is not an important enough reason for BTG to exist.

Any person with GPU miners could mine the highest paying GPU coin, sell the underlying coin for BTC and voila! Problem solved.

The miner is, in essence, mining the real BTC by mining an altcoin and having the user sell it for BTC. There is no need to mine BTG directly instead of a higher paying altcoin and then selling the altcoin for actual BTC.

Recently people have been discussing how Bitcoin has no value because it is infinitely replicable. But this is not true.

Designer purses are also infinitely replicable but each purse that is not ‘genuine’ is fake, a replica, and their value is subsequently impacted. BTG is not BTC regardless of similarities. Mining BTG using GPUs provides the same benefit as mining any other cryptocurrency using GPUs. BTG has no real purpose and is another of BTC’s many unnecessary forks.

Twitter

With a market cap over $250 million, BTG makes up the #19 spot on CMC. This is surprising as it is one spot ahead of VET. BTG has no long-term viability and minimal partnerships when compared to VET.

Solutions exist to mine using GPUs and earn returns in BTC too. There is no reason BTG needs to be that ‘solution’ leading to a market cap larger than VET’s.

The Verdict

Cryptocurrencies that are focused on niche markets that need a blockchain solution are those that are most likely to survive. Those that have partnerships with thriving Fortune 500 companies are the blockchains of tomorrow. The smaller, lesser-known ones, are the cryptocurrencies that could pull off the next 20-100x.

DOCK is the cryptocurrency on this list that has true ‘moon’ potential. If DOCK’s market cap rivals VET’s that means HODLers of DOCK would enjoy a 50x (comparing market caps). Smaller market cap cryptocurrencies are the ones that have the ability to penetrate the Top 20 while having a huge rise in market cap.

Verdict: HODL

VET is perfect for those that enjoy lower-risk cryptocurrencies but want to remain well diversified in unique blockchain niches. Already having a market cap over $250 million VET has the potential to provide significant returns. As VET continues to partner with companies many are familiar with expecting the price to begin to appreciate with the turn of the market.

Verdict: HODL

BTG is a cryptocurrency maintaining a Top 20 spot among all cryptocurrencies when it is fairly irrelevant. The benefits BTG provides are minimal and those that wish to mine BTC using GPUs can mine a more profitable alternative, and sell it for BTC.

Verdict: FODL

[Disclaimer: This views expressed in this article do not reflect the views of Bitcoinist and should not be taken as financial advice.]

To read the Crypto King’s prior articles or to get in contact directly with him, you can on Twitter (@JbtheCryptoKing) or Reddit. The King is the founder of ANON and actively trades cryptocurrencies.


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Lis 23

Google Trends Bitcoin Interest Hits 6-Month High

Google trends Bitcoin interest hit its highest since April this week as BTC price has taken a beating in the past week.


Google Trends ‘Bitcoin’ Interest Hits April Bull-Run Levels

You know what they say: any publicity is good publicity.

The latest data from Google Trends confirms the uptick in curiosity about Bitcoin after BTC/USD 00 dropped 30 percent under circumstances commentators have yet to fully understand.

The proportion of searches for ‘Bitcoin’ is higher now than during any weekly period since April 8, at which time its price began a major surge from $7000 to closer to $10,000.

Interest in some related terms, such as ‘is Bitcoin dead’ and ‘HODL,’ was much more apparent, reaching its highest since February this year, when the price was trending down from all-time highs around $20,000.

While mainstream media publications often pick up on price decreases as an indicator of the ‘risk’ involved in Bitcoin investment, the impact of price movements on broader public awareness contributes to the opinion held by many commentators that ‘any publicity is good publicity.’

Searching For A Trigger

As BTC price has historically correlated with search interest, a reversal of the current bull market is high on the agenda for traders.

That reversal had been tipped to occur in December with the launch of the first “regulated ecosystem” for cryptocurrency, Bakkt. When executives announced they would delay the launch from December 12 to January 24, prices had already begun to tumble and forecasts of a reversal get pushed back.

New York Stock Exchange Owner to Launch Bitcoin Data Service

At press time, support for BTC/USD 00 had held at $4000, while few professional traders were eyeing a true flip to bullish territory in the mid-term.

Even for the most optimistic regular voices such as Galaxy Digital founder Mike Novogratz and Fundstrat Global Advisors’ Tom Lee, a return to form for Bitcoin depends on institutional investors getting a taste for available products; without Bakkt or its slated competitors, the status quo remains.

What do you think about Google Trends Bitcoin interest? Let us know in the comments below!


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Lis 22

Kraken ‘Named’ in SEC Investigation, Calvin Ayre Claims as Bitcoin Cash Forks Go Live

The controversy surrounding the Bitcoin Cash (BCH) hard fork is increasingly engulfing cryptocurrency exchange Kraken as the altcoin’s proponents take aim at its treatment of its two forks.


Deposits, Withdrawals And Up To 30 Confirmations

After BCH split into ABC and SV forks, Kraken opted to keep the BCH ticker to describe ABC, crediting users with SV tokens while describing it as an “extremely high risk investment.”

SV has suffered a tumultuous first few days as a standalone fork of BCH, a blockchain reorganization sparking claims of overt centralization from some of Bitcoin’s best-known names.

Since trading opened on Kraken, SV tokens have changed hands for less than $30. Deposits and withdrawals begin today, subject to 15 confirmations for ABC and 30 for SV.

Ayre: Kraken ‘Mentioned’ in SEC ‘Investigations’

Retaliating on social media, SV proponent Calvin Ayre hit back at Kraken’s decision to use the BCH ticker for rival chain ABC, further claiming that both entities were part of unnamed legal proceedings by US regulators.

“(My) current prediction is that ABC chain will collapse and BCH will remain Satoshi Vision as the most likely outcome of the hash war,” he wrote on Twitter November 21.

Criminal and SEC investigations are under way in the US based on docs leaked to us. Kraken named also.

bitcoin cash calvin ayre

Ayre did not provide evidence for the accusations, which he’s promising to release “next week.”

While Kraken has yet to publicly react, Ayre’s words could well end up buried beneath the mountain of rhetoric, which has emerged on social media from all parties in the BCH debacle over the past week.

SV sources have been particularly vocal, nChain chief scientist and self-proclaimed Satoshi Nakamoto Craig Wright accusing ABC’s lead figures of myriad transgressions.

“You are my enemy,” he allegedly told Bitcoin.com owner Roger Ver in an email before the hard-fork.

BCH recorded the biggest drop of all the top twenty cryptocurrencies by market cap over the past 24 hours at around 7.5 percent, data from Coinmarketcap shows.

What do you think about Calvin Ayre’s accusations? Let us know in the comments below!


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Lis 21

Bitcoin Hashrate Drop Sparks Rumors of $3.8K Miner ‘Turn-Off Price’

The drop in Bitcoin hashrate has sparked rumors China has turned off huge numbers of mining rigs as the process is no longer profitable.


‘More Economic To Turn Them Off’

Video and photo content which allegedly came from F2Pool owner BitFish hit western social media November 20, being uploaded by local news feed cnLedger and Primitive partner Dovey Wan.

“…Many miners are mining at loss at the current price point, now it’s more economic to turn it off and take it off from the rack to reduce cost on electricity and opex,” Wan explained.

Bitcoin price 00 continues to suffer after a week of price losses which saw its value against the dollar drop around 30 percent. At press time Tuesday, BTC/USD hovered at $4400.

According to Wan, the “turn off price” for mining in China with a Bitmain Antminer S9 rig is approximately $3800, but will adjust down if difficulty and competition also drop.

Factors such as China’s dry season forcing up hydroelectricity costs exacerbated the problem, she said, adding that “some top mining pool owners” had admitted operating at a loss for several months.

F2Pool subsequently released its own list of mining price cut-offs, urging miners to check to ensure they were “running in profit.”

Fake News Allegations Abound

Due to much of the source material originating from Chinese social media, western Twitter commentators were quick to pour scrutiny on the claims, many calling out Wan and cnLedger for allegedly spreading “fake news.”

The material showing miners lying in piles outside was from the Sichuan Province floods, which knocked out many rigs in June, they claimed, nonetheless failing to reproduce the video or photograph from other sources.

Data from Blockchain meanwhile confirms the hashrate drop in Bitcoin, which has reversed to levels last seen in August.

Bitcoin hashrate

The turnaround marks a rare occurrence for the network, which has gotten used to the gradual increase in hashing power, particularly over the past year.

Ongoing attempts to divert miners to Bitcoin Cash in an effort to shore up one of its chains post-hard fork continue.

What do you think about the drop in Bitcoin hashrate? Let us know in the comments below!


Images courtesy of Shutterstock, blockchain.info

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