Zář 16

Bitcoin(dot)com Crypto Exchange Posts Dishonest Volumes

The Bitcoin(dot)com crypto exchange seems to be fibbing its real volumes. The market operator uses the Multiexchange.com service, thus sharing order books with several major markets.


In a tweet, Dan Hedl mentioned that Bitcoin(dot)com merged its orders with Bequant and HitBTC, thus presenting relatively high activity.

Order Books Merged Data from Other Exchanges

The merged order books are one of the ways that exchanges fail to report real-world trading activity. In the past year, new exchanges showed up with immense trading volumes, which were most probably generated by bots. Previous research has shown that faked activity is significant in some markets, making up as much as 90% of all trading. CoinMarketCap has therefore set out on a mission to make exchanges report realistic volumes and reveal order books.

The Bitcoin(dot)com exchange is a new arrival on the crypto scene, launching less than a week ago. The market completes the profile of the Bitcoin(dot)com brand, which also hosts a mining pool and a crypto wallet.

The exchange is also planning to launch a futures market and has opened a procedure with the US Commodities Futures Trading Commission (CFTC).

Bitcoin.com Pushes Bitcoin Cash Forward

The Bitcoin.com brand has received something of a bad rap within the crypto space. The site and its wallets were launched by crypto evangelist Roger Ver. Known as the “Bitcoin Jesus”, Roger Ver then switched teams and started supporting BCH. He was accused of misleading behavior, for securing the Bitcoin.com brand and subtly switching the places of assets within the wallet.

The Bitcoin.com mining pool mines on both the BTC and BCH blockchains. But on the BTC network, the pool only discovers 0.69% of blocks. On the BCH network, the firm discovers between 6 and 8% of all blocks.

At this point, it’s unknown what effect trading on the newly launched exchange will have. It is not yet listed among other markets, and there are no clear statistics. With time, volumes may pick up.

The launch of the Bitcoin.com exchange, for now, fails to lift the market price of BCH. The coin performs with relative stability, trading at around $306.92. BCH is still unable to recover the $400 level from before November 2018, when the asset split and produced Bitcoin SV, another competing network.

What do you think about the Bitcoin.com exchange? Share your thoughts in the comments section below!


Images via Bitcoinist Image Library, Twitter: @danhedl, @BitcoinComExch

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Zář 15

Tim Draper Says $250,000 Bitcoin Price Prediction is Conservative

Billionaire venture capitalist Tim Draper says his bitcoin price forecast of $250,000 by 2022 understates the power of BTC.


Inflation and Government Distrust Will Boost Bitcoin Price

Speaking to BlockTV, Draper described his famous $250,000 bitcoin price forecast as being conservative. According to Draper:

$250,000 means that bitcoin would then have about a 5% market share of the currency world and I think that may be understating the power of bitcoin.

The billionaire investor has consistently maintained his popular bitcoin price prediction calling it “absolutely solid” back in 2018.

The stock-to-flow (S2F) model puts bitcoin’s price post-halving at $50,000. Based on the current number of BTC in circulation, the bitcoin market capitalization at just under $1 trillion.

Thus, Draper’s forecast places bitcoin firmly in the league of assets like gold with market caps in the trillions of dollars range.

As previously reported by Bitcoinist, BTCC founder Bobby Lee believes the bitcoin price could reach $200,000 “in a very short time.”

According to Lee, bitcoin hitting $20,000 again will be the trigger for an even greater parabolic advance that would see the BTC all-time high (ATH) price entering a new order of magnitude.

For Draper, bitcoin provides a viable alternative to fiat currency as currency and government distrust will drive more people into cryptocurrency.

During the interview, founder of Draper Fisher Jurvetson (DFJ) Venture Capital highlighted the situation in Argentina as an example of how people will make the pivot from fiat to BTC.

Back in March 2019, Draper made a wager with Argentina’s President over the price of bitcoin.

Bitcoin Needs to be Easy to Use

During the interview, Draper declared that there was still work needed to be done to make bitcoin easier to use.

The DFJ chief who is himself a bitcoin owner says ease of use will draw more people into adopting cryptocurrencies.

Back in February 2019, Draper predicted that people will be using bitcoin to pay for coffee by 2021. He was even part of $1.25 million investment round for OpenNode — a bitcoin payment processor startup, in late 2018.

Fellow billionaire and bitcoin Jack Dorsey earlier in September noted that why bitcoin appears primed to become the native currency of the internet, it is still some way off from achieving such heights.

What do you think the bitcoin price will be by the end of 2023? Let us know in the comments below.


Images via Shutterstock, Twitter @BLOCKTVnews.

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Zář 14

German Gov’t Approves ‘Bundes-Chain’ to Combat Libra Cryptocurrency

The German government will approve its proposed blockchain strategy this September which reportedly blocks projects like Facebook’s Libra cryptocurrency.


Germany Readies Anti-Libra Response

According to Spiegel, Germany’s federal cabinet will approve its blockchain strategy announced back in June 2019.

While the move signals the country’s intent to be a part of the emerging global economy, the government-run ‘Bundes-chain’ might sound the latest death knell for Libra in Europe.

Thomas Heilmann of the center-right Christian Democratic Union (CDU) says Germany’s legislative coalition already has a standing agreement to prevent the operation of any “market-relevant private stablecoin.”

Commenting on the matter, Heilmann declared:

Up to now, the economy has done a great job in countering crises and inflation with measures taken by central banks. Once a digital currency provider dominates the market, it will be quite difficult for competitors.

Rather than Libra capturing the market in Germany, authorities appear to be in favor of creating a state-backed digital currency which will run on the Bundes-chain.

Part of Germany’s proposed blockchain strategy involves creating a framework for crypto startups in the country. As previously reported by Bitcoinist, Bitbond in May 2019, launched the first-ever regulated security token offering (STO) in Germany.

According to Heilmann, authorities in Germany are hoping that the blockchain strategy will help local crypto startups enjoy competitive advantages over their foreign counterparts.

There is, however, little information as to how a government-run Bundes-chain will incentivize private participants.

Europe Wants Nothing to do with Facebook’s Cryptocurrency

For crypto analyst, Alex Krüger, other countries may soon begin to copy Germany’s approach to the emerging cryptocurrency and blockchain technology industry.

Germany is one of a growing list of nations making efforts to block Facebook’s Libra cryptocurrency.

On Friday (September 13, 2019), French Finance Minister Bruno Le Maire declared that the country will work towards blocking Libra in Europe.

Echoing sentiments similar to those espoused by Heilmann, Le Maire surmised that Libra constitutes a threat to the economic sovereignty of Europe.

In China, the central bank is accelerating efforts to launch the country’s digital yuan project. This move is also part of China’s plan to block Libra.

Meanwhile, the Libra Association is moving forward with its plans to launch the crypto project. The Association recently applied for a payment license with Swiss regulators.

How will a government-run Bundes-chain provide economically viable incentives for private participants? Let us know in the comments below.


Images via Shutterstock, Twitter @krugermacro

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Zář 13

The US and UK Are Losing the Cryptocurrency Race

As Britain follows the U.S. in its Trumpism style of politics, it seems as if the two countries are hellbent on losing the cryptocurrency race as well.


Countries Leading the Cryptocurrency Race

Institutional investment continues to pour into the cryptocurrency space. With names like the New York Stock Exchange and Microsoft getting on board and legitimizing Bitcoin like never before.

Major corporations around the world like MasterCard and Allianz are investing in blockchain initiatives. The search for talented blockchain developers continues to grow, and many countries around the world are ramping up their efforts in the cryptocurrency race as well.

Portugal, for example, recently announced that it will eliminate tax on all earnings in cryptocurrency. The country’s tax authority further declared that payments and trading cryptocurrency in Portugal are now 100% tax-free.

France has also taken steps toward a friendlier approach to cryptocurrencies. French economy minister Bruno Le Maire recently declared that crypto-to-crypto trades will be tax-exempt. The French authorities will collect tax only when cryptocurrency is converted into fiat.

China, thus far, is the clear leader in the cryptocurrency race. It not only holds 72% of the mining power for Bitcoin, but the astute Asian country also invests the most in blockchain technology.

China is even busy building its own cryptocurrency, taking inspiration from the Marshall Islands.

As well-known legal expert in the space Jake Chervinsky tweeted out, even Iran has eliminated tax on cryptocurrency mining.

So what are the U.S. and UK doing? Dragging their heels. Demanding letters from ICOs, proposing moves to ban crypto derivative products, and dithering over Bitcoin ETFs.

This is a competition, and we’re losing

U.S. and UK Are Actively Halting Crypto Growth

Even worse than their inaction on fostering cryptocurrency innovation, is the negative steps taken so far. Many an innovative startup in the U.S. has been stubbed out by the IRS or SEC.

The UK’s FCA is determined to ban retail crypto derivatives products. The U.S. doesn’t allow its citizens to use them.

Rather than give cryptocurrency entrepreneurs incentives in the form of lower tax, the UK authorities are actively seeking to penalize crypto earners. Last month, British authorities sought data from exchanges like Coinbase and eToro in a bid to find tax evaders.

Trump has made it clear where he stands on Bitcoin and other cryptocurrencies.

The UK Prime Minister, it seems, is too busy fudging his way through Brexit to comment.

However, as long as he continues to cause uncertainty, doubt, and political turmoil in the UK, he may inadvertently be giving Bitcoin a boost as the pound tumbles against the dollar and euro.

While the giants are sleeping, other countries are getting ahead. The cryptocurrency race is on in earnest and the U.S. and UK don’t seem to care.

What do you make of the UK and US’s crypto position? Add your thoughts in the comment section below!


Images via Shutterstock, Twitter @realdonaldtrump, @ jchervinsky, @rhythmtrader

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Zář 12

‘Ripple One’ Discord Channel Opened To Discuss XRP Fork

A Discord chat has been opened for those that want to re-create the Ripple network, essentially forking XRP. But so far, only a handful of posters have replied, and the general attitude is skeptical.


Ripple Keeps XRP Price Low?

The community of XRP owners has shown displeasure with the practice of Ripple to sell some of its 55 billion stash of coins each month. Some believe that XRP would command a higher price if the founding company abstained from selling. The talks of a hard fork started a few days ago, after Ripple unlocked one billion XRP, and awarded 100 million XRP additionally to Jed McCaleb, one of the co-founders of the protocol.

Finally, Twitter personality @Crypto_Bitlord made the call for a hard fork, to create a mirror asset to XRP.

In theory, the hard fork would re-create the Ripple network and its 100 billion coins. For now, the proposed Discord channel invites nothing more than derision on the idea. Commenters suggest that a hard fork of Ripple would be nothing more than a bad version of Stellar.

Ripple Still Has the Upper Hand with Reputation and Products

Ripple is actually one of the few coins that has not forked. Stellar, while using a similar protocol, is not a hard fork in the classical sense. The project started its blockchain from block zero.

On the other hand, a hard fork that also holds the history of the distributed Ripple ledger would mean someone still has control of the majority of coins. Ripple has established for itself a fund of 55 billion coins, which was locked for a predetermined period to limit the XRP in circulation. The Ripple One fork, however, will remove the pre-mined coins and also start from scratch.

Ripple also has the advantage of a longer presence in the crypto space. The company is also known for its high-level publicity. Almost constantly, Ripple promotes itself to banks and gives away coins for testing.

Ripple One will have to convince all partners and supporters that its proposition is better. But the project may have a hard time competing with the Ripple social media community, as well as investors that already hold XRP.

It is also unknown if Ripple One would be able to re-create the XRapid protocol or other products developed by the Ripple team.

Ripple One should not be mistaken for XRP1, another asset based on the DigiByte protocol.

What do you think about a Ripple (XRP) hard fork? Share your thoughts in the comments section below!


Images via Bitcoinist Image Library, Twitter: @Crypto_Bitlord, @XatoshiXakamoto

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Zář 11

Tether Churns Printers Again; Mints 20 Million USDT

Tether, the issuer of the USDT dollar-pegged coin, is running the money printer again, increasing the supply to 4.088 billion USDT. After Bitcoin (BTC) price once again threatened to drop below $10,000, a USDT liquidity injection may boost prices.


New USDT Enters Markets

Tether once again grew the supply of USDT, after testing the waters with recent coin burns. But after BTC prices responded with significant drops, bots noticed new USDT hitting the markets. New coins came out of the minting wallet, and the Tether treasury moved funds into circulation.

The latest printing intervention made USDT the sixth biggest digital coin by market capitalization, with a daily turnover exceeding that of BTC. The latest USDT printings are happening both on the Omni layer, and the Ethereum network. In the future, more USDT will migrate as Ethereum tokens. ETH-based USDT has now grown to 1.63 billion, almost double since the start of 2019. Major exchanges are switching their USDT wallets to only operate with the new type of asset.

Crypto Yuan Arrives on Bitfinex

But these new USDT printings seem routine, compared to another move that may shake the crypto markets. Bitfinex immediately launched trading pairs for the brand-new Chinese yuan stablecoin. The asset, intended to capture trading demand from China, is an Ethereum-based token. There are only 20 million CNHt tokens minted as of September 11, 2019.

Verified users will be able to make a direct switch between the Chinese yuan and CNHt, the newly minted asset. Bitfinex also limits certain jurisdictions from using the direct exchange. In theory, Tether, Inc. is launching an asset that could bypass Chinese capital controls, and Bitfinex is helping the process.

Tether also managed to create a digital yuan-denominated coin, even before the People’s Bank of China unrolled its long-awaited government-backed crypto coin.

Bitfinex has also slowly grown its influence, first by removing the $10,000 minimum deposit requirement, to attract a larger number of small-scale investors. The exchange also offers various tiers of verification, to gain access to assets or services.

But despite their expansion, Bitfinex and Tether, Inc. are still facing troubles. The New York Attorney General has extended its investigation, with the potential to discover multiple faults. Both companies showed evidence of working with New York-based clients, despite not qualifying for BitLicense, the local business license for crypto-related services.

What do you think about Tether and USDT? Share your thoughts in the comments section below!


Images via Shutterstock, Twitter: @whale_alert, @bitfinex

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Zář 10

Fundstrat’s Tom Lee: Bitcoin Misery Index Suggests New Bull Run Soon

The Bitcoin Misery Index, a technical indicator of trades, has been falling all summer. The indicator is sinking to 50 points, a level at which Bitcoin (BTC) prices may start to rally, thinks Fundstrat’s Tom Lee.


The Bitcoin Misery Index (BMI) by Fundstrat is a subscription-only technical indicator based on the profitability of average trades. High scores for the index point to exuberance and hype, while low scores show that most investors are “miserable” and the market is difficult to navigate.

Bitcoin on the Bounce

Since the hot price moves of July, Bitcoin turned flat, and the BMI deflated slowly over the course of a few months. BMI sank from 67 down to around 53. Investment expert Tom Lee of Fundstrat pointed that BTC had a “boring” summer, but with the index under 50, more dramatic moves are possible.

Following a “trendless” summer, bitcoin enters September with expectations of a possible shift in sentiment.

BTC remained stuck in a range, moving between $9,500 and $10,500 on most days. Other indexes, such as the “fear and greed” indicator, remained shaky. Fear is no longer extreme, but BTC is still somewhat directionless.

Bitcoin market prices appeared even shakier on Monday, sinking down to $10,279.69. The price slide and weakened volumes also brought lower market capitalization dominance of 69.7%, down from 71% in the previous week.

Time to FOMO?

Lee expects the BMI to be within the 50-53 points range in early September. At those levels, this predicts a potential stronger appreciation in the coming six months. The index is not an exact predictor, but Fundstrat sees more tailwinds for bitcoin than headwinds. Macroeconomic factors are also in play, such as a lowered Fed interest rate, as well as high fiat liquidity.

Fundstrat warned of lowered volumes, as BTC trading moved down to $16 billion in 24 hours, down from above 25 billion during the more active days in July. Lowered volumes may also cause unpredictable, dramatic price moves.

The most bullish predictions see bitcoin repeat the end-of-year rally from 2017. Fundstrat believes crypto winter is behind us, but a rally is not guaranteed.

Short-term negative predictions for BTC see the coin returning to $8,500, or at best hovering in rangebound trading. “Launchpad” levels may start at prices above $11,700, if BTC manages to rally to that range.

What are your thoughts on BTC sentiment? Share your thoughts in the comments section below!


Images via Shutterstock, Twitter @Fundstrat

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Zář 07

Ethereum Hard Fork: How Important Is Backwards Compatibility?

The Ethereum Foundation has delayed the testnet launch of the Istanbul update until the start of October. But some are raising concerns about one of the Ethereum Improvement Proposals (EIPs) which will break certain smart contracts. So should technology be backward compatible ad infinitum?… or is a little disruption necessary in the name of progress?


Too Many EIPs Delay The Upgrade

The testnet activation of the latest update was originally due to happen on September 4th. However, the date has been pushed back to the start of October due to a large number of EIPs submitted for review. Developers eventually accepted six of these for inclusion in the Istanbul package, with a further eight in the following upgrade.

The testnet delay means that the mainnet activation will also occur a month later, in November after the DevCon developer conference.

Breaking Ethereum’s Contract

However, Parity developer, Wei Tang, has raised concerns about one of the improvement proposals, Ethereum Improvement Proposal 1884. This “will break at least a few deployed contracts,” he tweeted, continuing that “what worries me is that some participants on last AllCoreDevs seem to classify it as acceptable behavior.”

He goes on to say:

For software engineering, if you’re developing something that many people depends on, then backward compatibility is one of the top priorities for making any design decisions. This is especially important for blockchain, because a lot of money can be involved.

The technical details of the compatibility issues can be found on GitHub.

You Can’t Make An Omelette Without Breaking Eggs

While Tang’s concerns may seem valid, there is, of course, a counter-argument that obsessing over backward compatibility is counteractive to progress.

Tang makes the example of Microsoft’s Windows gaining popularity because of backward compatibility. Whilst it may have gained popularity in this period, it arguably fell into a technological black-hole.

Apple’s insistence on allowing old-tech to fall into obsolescence was (and still is) widely criticized. However, it took Microsoft years and many iterations of Windows before it caught up to the advances of Apple’s OS X, losing backward compatibility on the way.

If it were purely down to Microsoft, we would likely still be lugging around laptops with legacy VGA and serial ports. Slimline, slimline!

With concerns as to how much space is left on the Ethereum blockchain, clearly something must be done or technology could die. With stakes that high, surely a few broken contracts are a small price to pay?

What do you think about the disputed Ethereum Improvement Proposal? Comment below.


Image via Shutterstock

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Zář 06

Bitcoin Hitting $1T Market Cap By 2025 ‘Entirely Possible’: New Analysis

Bitcoin has most of its wealth creation still to go and could top a giant $1 trillion in market cap in just six years, new analysis claims.


$1 Trillion Bitcoin Doesn’t Need Parabolic Trend

Published last week, the forecast by Blockchain investment advisory resource, Byte Tree, suggests that even with conservative growth, Bitcoin will achieve wild new heights.

“Growth rates can go on for long periods of time but will inevitably slowdown as they mature. The implications for this new trendline imply $10,000 bitcoin will remain a theme until late 2020, rising to $20,000 by Feb 2022 and $40,000 by May 2023,” it reads.

Recall that if (nearly) 18 million coins quadruple in price, more than half a trillion dollars of wealth will be created. That’s more than possible and the network could touch a trillion dollars by 2025. Considerably more wealth creation lies ahead, than has occurred in the past.

The figures come at a time when BTC/USD had come off its latest bullish rise, which previously saw the pair touch $13,800. 

Sideways action subsequently culminated in a dip to $9350 last week, with markets since recovering to linger just below $11,000 at press time on September 6.

Tech Stock-Style ‘Mega Trend’ Inbound

Bitcoin’s annualized investor returns are 212%, Byte Tree notes, adding that the figure was unlikely to continue at such an aggressive pace forever. 

Despite that however, slowing down does not equal bearish signals, and this holds true for assets other than Bitcoin.

“You can’t reasonably expect steep trendlines to continue indefinitely, but you can expect credible assets to keep on moving higher year after year,” the publication concluded. 

“If you doubt that, then just look at the leading tech stocks which seemingly go from strength to strength. They grow because the internet is an established mega trend; something that bitcoin will enjoy for years to come.”

The idea of a $40,000 Bitcoin by 2023 is certainty moderate compared with some other predictions. As Bitcoinist reported, it is ‘permabulls’ John McAfee and Tim Draper leading the way, the former still infamous after pledging to consume his own male appendage if BTC/USD did not hit $1 million by 2021. 

Draper believes $250,000 is achievable by 2023. In the short term, technical indicators meanwhile err on the side of caution, nonetheless suggesting an end-of-year price for 2019 at around $20,000 – sooner than Byte Tree.

What do you think about Byte Tree’s Bitcoin forecast? Let us know in the comments below!


Images via Shutterstock

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Zář 05

Twitter CEO Says No To Creating ‘Twitcoin’ Cryptocurrency

Twitter’s Jack Dorsey says the world would be better served by an autonomous open-source currency like bitcoin rather than centralized projects owned by companies.


No Chance of a ‘Twitter Cryptocurrency’

Speaking to The Sydney Morning Herald, the Twitter founder declared that he had no intention of creating a Twitter cryptocurrency. Commenting on the matter, Dorsey quipped:

I think open internet standards serve every person better than ones controlled or started by companies.

Back in June, Facebook released a white paper for its proposed Libra cryptocurrency project. Since then, authorities in several governments have expressed opposition to the plan.

Dorsey isn’t the only one wary of centralized digital currencies. As reported by Bitcoinist, there is some discontent among XRP holders following perceived dumping of the token by Ripple.

While there are calls to hard fork the blockchain, the company recently withdrew $130 million worth of XRP from escrow, further exacerbating the debate.

Ripple continues to engage in numerous large transaction dumps which critics say is diluting the XRP price. The company, however, counter that its main concern is drumming up utility for XRP and its suite of payment products.

Bitcoin is the Best Bet

In keeping with his usual stance, Dorsey reiterated his belief that bitcoin will become the native currency of the internet. Providing further commentary on the matter, the Twitter and Square chief noted:

I think [Bitcoin’s] the best bet because it’s been the most resilient, it’s around for 10 years, it has a great brand and it’s been tested a bunch. As I look at all cryptocurrencies that could fill that role of being the native currency for the internet, [Bitcoin is] a pretty high probability.

On Tuesday (September 4, 2019), Bitcoinist’s Anatol Antonovici examined the argument for a cryptocurrency becoming the next world reserve currency.

According to Ikigai’s Travis Kling, the entire record of known monetary history is consistent with the fact that world reserve currencies have shelf lives.

If Dorsey’s belief in bitcoin’s suitability as the native internet currency holds true, there doesn’t appear to be that much of a leap from there to world reserve currency status.

Meanwhile, Dorsey’s other company, Square, continues to benefit greatly from bitcoin. The payment service in August revealed that it generated a revenue of over $125 million from bitcoin.

Do you think bitcoin can become the global internet currency of the future? Let us know in the comments below.


Images via Bitcoinist Image Library

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