Kvě 18

Bitcoin is Front Running Stock to Flow Price Model at $7300

Despite dropping by about $1,000, Bitcoin is still way ahead of even some of the most optimistic price projections and detailed price forecast models. Here is a look at how Friday’s ‘flash crash’ hasn’t derailed Bitcoin in the long term.


Current Bitcoin Price Still Leads $1 Million S2F Model

Tweeting on Saturday (May 18, 2019) Bitcoin analyst “planB” showed how even at $7,300, BTC still leads the stock-to-flow (S2F) model about $1,000 on the road to hitting $1 million per coin.

PlanB’s S2F model posits that scarcity and value have a direct relationship with scarcity being a measure of stock flow (SF). The analysis also takes into consideration important parameters like Bitcoin block reward halving which occurs every four years until all 21 million BTC are mined.

According to the model, by the time of the next halving which is in May 2020, BTC’s SF should double from its current value of 25 to 50. This doubling would bring BTC’s SF closer to that of commodities like gold.

BTC permabulls like Max Keiser say Bitcoin has the potential to reach a fraction of the gold market capitalization, which is somewhere in around $8 trillion. The S2F model predicts that by 2020, BTC should have a market price of $55,000 based on an SF value of 50.

S2F hinges heavily on scarcity which for BTC takes on another dimension given that a portion of the 21 million total token supply isn’t even attainable since some BTC are forever lost.

Data from BitInfoCharts shows that there are about 16.82 million BTC held in dormant Bitcoin addresses. Between cumulated BTC dust and lost private keys, there are about 10.5 million BTC that haven’t moved in over a year.

16 Million Bitcoin Likely Lost

Perfect Pullback?

Before the Friday price drop, there had been the talk of a possible retracement in the BTC price action to the mid-$6,000 level. These predictions hinged on massive profit taking above $7,000, creating another entry point for a new BTC accumulation in preparation for a fresh upward swing.

In the short-term, there is an expectation that BTC might slip further downwards perhaps to the 50-day or 200-day moving average support levels. This puts a possible downward slide between $4,500 and $5,500.

However, such a move would mean breaking the $6,400 support level which characterized BTC trading for most of 2018. Only the fallout from the Bitcoin Cash civil war in November 2018 successfully took BTC below that price level.

Do you think the flash crash adversely affected Bitcoin’s parabolic advance? Let us know in the comments below.


Images via Twitter @100trillionUSD and BitInfoCharts.com, Shutterstock

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Kvě 18

These 13 Bitcoin Lightning Network Upgrades Will Solve Its ‘Biggest’ Hurdles

The Bitcoin Lightning Network will overcome some of its “biggest hurdles to use” in the near future as new features roll out from developers.


From Experiment To Bitcoin Killer App

That was according to Guy Swann, the presenter of the Cryptoconomy podcast, who this week dedicated two episodes to introducing Lightning and analyzing its upcoming changes.

As Bitcoinist has frequently reported over the past year, Lightning represents the ‘next level’ of payments using Bitcoin, and is widely considered to be the way in which the largest cryptocurrency will scale up to meet the needs of billions of future users.

Readers can find more information on the protocol, which debuted on the Bitcoin mainnet at the start of 2018, here.

Looking forward, Swann presented a list of no fewer than thirteen upcoming improvements to Lightning which he says will boost its mainstream appeal.

The basis for the list came from a blog post by Bitcoin business Bitrefill, which offers a range of products and services payable using Lightning.

Top on the list for Swann was Atomic Multipath Payments (AMPs) – or breaking a single payment down into several smaller ones, and sending them over multiple Lightning channels.

“Payments become much more reliable, no longer limited to 1 channel capacity,” he summarized.

[AMP] Removes the biggest (in my opinion) hurdles to payment issues, single channel capacity & liquidity.

Swann is by no means alone in being concerned about those aspects of using the network. As Bitcoinist reported last year, despite its rapid growth, the vast majority of Lightning payments worth more than several US cents failed.

Not Just Lightning Atomic Swaps

Due mostly to its age, Lightning remains a highly-technical tool which lacks a user-friendly interface. Developers are still working on making its base layer suitably robust, themselves stressing the fledgling ecosystem is still an experiment.

Activity is gathering pace, however, and soon for example, Lightning will offer not just major efficiency gains for Bitcoin users, but those of other coins at the same time – via Atomic Swaps.

“Channels don’t have to only send (Bitcoin). Any blockchain… with (Lightning) can connect payments across blockchains. Useful for decentralized swapping of coins, & sending bitcoins to pay invoices in multiple cryptocurrencies,” Swann explained.

Other improvements focus on more specific weak areas in the current Lightning setup. The full list is as follows:

  • Atomic Multipath Payments (AMPs)
  • Atomic Swaps
  • Channel Factories
  • Dual-Funded Channels
  • Eltoo
  • Neutrino
  • Rendezvous Routing
  • Sphinx
  • Splicing
  • Submarine Swaps
  • Trampoline Payments
  • Turbo Channels
  • Watchtowers

As Bitcoinist reported, despite its technical level, Lightning gained significant publicity in 2019 thanks mainly to a public outreach project by Bitcoin user Hodlonaut.

A form of transaction relay, the project, Lightning Torch, raised money for the plight of Venezuela’s citizens using Bitcoin, ultimately seeing participation from well-known figures both within and outside the cryptocurrency industry.

What do you think about the Lightning Network? Let us know in the comments below!


Images via Shutterstock

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Kvě 17

Bitcoin Now a More Popular Google Search Term Than ‘Donald Trump’

Google search interest in Bitcoin has spiked to a fresh six month high as BTC has posted 100 percent gains during the same period. In fact, people are now searching for ‘Bitcoin’ more than ‘Donald Trump.’


As Price Rises, People Google Bitcoin

It’s no secret that public interest in ‘Bitcoin’ and everything related rises as BTC price moves. People are naturally curious about what’s causing the bitcoin price 00 to skyrocket. They also want to know what Bitcoin is and whether now is a good time to hold, buy or sell.

Bitcoin’s recent rally over $8K has indeed started seeing more people googling to find out more. Currently, the number of searches is the highest since mid-December 2018. Moreover, this number is projected to reach levels not seen since the peak price of late 2017.

bitcoin google search trends

Google search trends are one of the best online resources for gauging real-time public interest in Bitcoin.

This was demonstrated at the beginning of April, for example, when bitcoin initially broke out of its bearish slump. Google searches for bitcoin spiked.

Today it is more popular than other big search terms such as SpaceX, Tesla, Elon Musk and even Donald Trump.

Donald Trump bitcoin

Furthermore, the majority of searches for Donald Trump are confined to the US. While searches for Bitcoin are global with significant activity on all continents.

In 2018, ‘What is Bitcoin’ topped the “What is…?” Google category in both the UK and the US.

Top 10 Countries Looking Up ‘Bitcoin’

In fact, the top ten countries interest in bitcoin right now (excluding St. Helena) are:

  • Nigeria
  • South Africa
  • Ghana
  • Netherlands
  • Austria
  • Switzerland
  • Singapore
  • Slovenia
  • Australia
  • Germany

Where Are People Googling Bitcoin in the US?

In the US, the states where Bitcoin is now being searched for more than Donald Trump may surprise you.

The top 10 states/regions are:

  • Hawaii
  • Nevada
  • California
  • Washington
  • New York
  • Utah
  • Colorado
  • New Jersey
  • District of Columbia
  • Alaska

Chicken or the Egg?

So does price precede interest or does interest precede price?

Evidence exists for both, in fact. As Bitcoinist reported earlier this month, the volume of tweets and Google Search Volume Index (SVI) were found to be leading price indicators for Bitcoin and Ethereum, according to a research paper published by the Southern Methodist University.

google search bitcoin

However, this particular study mainly focused on the late 2017 price spike and the simultaneous retail interest that likely fuelled the surge to $20K. Notably, it found Tweet volume to be a much more reliable indicator of potential price increase than Google searches – which tend to lag price moves.

As of late, Google searches have shown to rise a day or two later. For example, the spontaneous surge by $1,000 that occurred on April 1st was followed by a surge in searches on April 2nd and 3rd. This suggests that the general public looks for more information about bitcoin after seeing that the price has already risen (and covered by the mainstream media).

At the same time, the Tweet volume for #bitcoin has been rising steadily since March. Currently, it is at about 30K per day, though still lower compared to the period prior to November-December 2018.

Making a Comeback

Overall, the figures suggest that interest is coming back as the price of BTC appears to be bottoming out. Relevant indicators such as the Mayer Multiple and many market analysts are also suggesting that the bear market has come to an end.

If this is indeed the case then some outrageous bitcoin price predictions may not be so outrageous in the future. With fundamentals stronger than ever and shifting market sentiment, a new bull market would do seem to be around the corner, if the past few weeks are anything to go by.

So if these trends are anything to go by, ‘Bitcoin’ will undoubtedly become the most popular search term in

Will price eventually hit $100K in the future as Max Keiser expects? If it does, you can surely bet that the searches would follow.

Do Google searches for Bitcoin lag behind price? Share your thoughts below!


Images via Shutterstock, Google trends, Bitinfocharts.com

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Kvě 15

The Tiniest Fraction of a Bitcoin is Now Worth More Than 3 Fiat Currencies

Bitcoin has long been more ‘expensive’ per one BTC particularly compared to other fiat currencies. Now, its smallest unit known as a satoshi (or 0.00000001 BTC) is now worth more than some national currencies.  


In an interesting Reddit thread, one Bitcoin enthusiast noted that, at the current rates, one Satoshi is worth more than one unit of these three global fiat currencies.

Iranian Rial

As far as sh**coins go, Iran’s doing pretty well with its rial (IRR). If you want to feel rich, this is the ideal place to saunter around the streets with your wads of cash. One U.S. dollar will get you a staggering 42,101 rials.

Iranian Rial to USD

The government devalued its national currency in July 2013 to half of its former value. This was meant to reduce the subsidization of the exchange rate against the dollar.

With increasing U.S. sanctions, Iran came up with a second sh**coin in the form of a centralized and highly questionable “crypto rial”. However, the PayMon, is yet to prove itself as a plausible way of avoiding them.

Inflation in this country could reach as much as 40 percent by the end of this year. The economy is also expected to retract substantially as well. Oh, and one satoshi is worth more than one Irian Rial right now.

Vietnamese Dong

You don’t get quite as much bang for your buck with the Vietnamese Dong. But it’s not that far behind Iran, at 23,321 dongs for a dollar.

Vietnamese Dong USD

Coins have long become extinct in this southeast Asian country (you can see them in museums) and its people are used to using bills with tons of zeros on them. The smallest bill starts at 100 dongs and the largest goes all the way up to 500,000 dongs.

Just like Iran, the Dong has been devalued several times. However, that seems to have attracted plenty of foreign investment and the economy is booming here. It also has sensible inflation rate at just over 4 percent.

While trading BTC is still legal, the State Bank of Vietnam banned using it as a means of payment. It’s also clamping down on cryptocurrency regulation in the wake of multiple scams in the country. So, while one Satoshi may be worth more than one dong, its people can’t use BTC to buy anything.

Indonesian Rupiah

Another country with a history of an uncertain economy and high inflation, the Indonesian Rupiah has been devalued many times throughout its history. Moreover, in 2018, it fell to its lowest level against the dollar in 20 years.

IDR

Despite the fact that it’s pretty easy to be an Indonesian millionaire (with one dollar getting you 14,462 rupiahs) they still have coins, which is kind of cute, perhaps just for nostalgic value. The highest banknote here is 100,000.

If you’re heading to Bali and want to buy anything more expensive than a meal, you’ll probably pay in dollars. After all, 40 bucks a night for a room sounds a lot better than 578,532.69.

Indonesia recently came out and recognized Bitcoin as a commodity, allowing it to be traded. However, just like Vietnam, the ban on cryptocurrency payments still exits. So if people wanted to spend their satoshis, they’d be out of luck.

Will a Bitcoin satoshi eventually reach parity with the US dollar? Share your thoughts below!


Images via Shutterstock

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Kvě 14

Stablecoins Beat Bitcoin, Says ECB Presidential Hopeful

Francois Villeroy de Galhau of the European Central Bank (ECB) says stablecoins hold more promise than Bitcoin. The ECB policymaker says fiat-pegged crypto will have a place in the legacy financial system.


We Prefer Fiat-Pegged Crypto

According to Bloomberg, Villeroy believes that cryptocurrencies pegged to fiat will be the ones to experience greater utility within the mainstream finance apparatus. Speaking in Paris on Tuesday (May 14, 2019), Villeroy, a frontrunner for the ECB Presidential seat opined:

The Bank of France is “observing with great interest initiatives in the private sector which aim at developing networks within which ‘stable coins’ would be used in transactions involving ‘tokenized’ securities or goods and services.” These are quite different from speculative assets like bitcoins, and more promising.

Of Course, Central Bankers Prefer Stablecoins to Bitcoin

Villeroy’s comments should come as no surprise as bankers haven’t hidden their dislike for Bitcoin and its ability to disrupt their stranglehold on global finance. The disintermediation of the payments system is in many ways an attack on their bottom-line.

Answering questions during the ECB Youth Dialogue on Wednesday (May 8, 2019), ECB President Mario Draghi described Bitcoin as not being a “real currency” but more like an asset, saying:

A euro is a euro – today, tomorrow, in a month, it’s always a euro. And the ECB is behind the euro. Who is behind the cryptocurrencies?

Draghi fails to mention that questionable monetary and fiscal policies which are often political have a negative impact on the purchasing power of fiat currency. One BTC will always be worth one BTC.

In February 2019, the U.S. Federal Reserve did a complete 180 reportedly under duress from the White House to adopt a more dovish stance. Several commentators say quantitative easing and negative interest rates will put the mainstream market on the path of another major collapse.

$2,000 in Less than Five Days

While uncertainty reigns in the mainstream market, Bitcoin continues to rise even higher, adding more than $2,000 in price value in less than a week. BTC is up more than 120 percent since the start of 2019.

This recent parabolic advance has coincided with renewed institutional interest from brokerage giants and investment firms alike. TD Ameritrade, Fidelity Investments, and E-Trade plan to debut BTC trading for institutional clients.

Bakkt on Monday (May 13, 2019) announced that it would begin testing its physically-settled BTC futures contract in the summer. The company also says it is close to obtaining the green light from the U.S. Commodity Futures Trading Commission (CFTC).

Do you agree that the banking class is running scared of Bitcoin? Let us know your thoughts in the comments below.


Images via Twitter @ecb, wikimedia.org

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Kvě 13

This Latest ‘Who Created Bitcoin’ Theory is The Craziest One Yet

Bitcoin was the creation of a programmer and drug lord who wanted to launder money, and Craig Wright is trying to steal his private keys.


Bitcoin Creator, Solotshi Nakamoto?

That was the latest wild conclusion to emerge in the debate over who the ‘real’ inventor of Bitcoin is – the entity behind the Satoshi Nakamoto pseudonym – as Wright’s multibillion-dollar court case continues.

After testimony from Wright leaked online, one user of the 4Channel forum pieced together clues to ‘reveal’ Satoshi as infamous US drugs informant Paul Solotshi Calder Le Roux.

The testimony mentioned Le Roux numerous times, with the leaked documents blocking out all but one – assumedly accidentally – of those mentions.

“He intended it simply for the purpose of money laundering (a use case which is clearly seeing fruition even today with the likes of Crypto Capital),” the user summarized.

“Unfortunately, soon after he went quiet with the Satoshi identity, he was captured by law enforcement, and he’s going to spend the rest of his life rotting in jail cell.”

So Craig Wright IS Faketoshi?

As Bitcoinist reported, Wright has purported to be Nakamoto for several years. In 2019, he has stepped up efforts to protect his reputation, launching lawsuits against anyone who disagrees with him.

At the same time, Wright is being sued for 1 million bitcoins by the estate of former business partner Dave Kleiman, relatives claiming he defrauded them.

Now, Kleiman could also figure in the conspiracy, as an accomplice of Wright who prior to his death sought to help him crack Le Roux’s wallets, which also involves a sum of around 1 million BTC.

Calvin Ayre, who supports Wright’s lawsuits and altcoin Bitcoin SV as the ‘real’ Bitcoin, is allegedly further faking a mining operation to disguise ongoing efforts to access Le Roux’s fortune.

“Craig Wright was an employee of Le Roux, who was vaguely aware of the bitcoin project. Craig was an informant who helped bring down Le Roux, and after his arrest, Craig managed… to get his hands on the wallets that hold a million bitcoins,” the user claims.

…He has been trying for years to crack them but with no success.

1 Day To The Big Reveal

As Bitcoinist noted, the idea of unmasking Nakamoto has formed a central preoccupation for some Bitcoin users.

While others are content to use his or her creation without knowledge of its exact genesis, others have sought to uncover the facts via methods such as a crowdfunding campaign last year.

Meanwhile, a dedicated website, Gotsatoshi.com, has promised to formally reveal Nakamoto’s exact physical whereabouts on May 14. Whether the event will include any extra details or proof of its assertions remains to be seen.

What do you think about this latest theory on Satoshi’s real identity? Share your thoughts below!


Images via Shutterstock

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Kvě 12

Parabolic Advance Halts For Now – So What’s Next For Bitcoin Price?

Bitcoin went absolutely parabolic over the weekend! After topping out at $7,500, traders are now wondering what is next.


Bitcoin Price: Market Overview

Last week brought an onslaught of bearish news that typically negatively impacts Bitcoin price 00. But surprisingly, it shrugged at the news and has gone bananas as its dominance rate rose to highs not seen since 2017.

At the moment, nearly every analyst is screaming “bull market” and making calls for what they believe the new all-time high will be.

Friday and Saturday’s amazing run firmly brought Bitcoin above $6,000 to the previous resistance zone where $6,800 and $7,300 held before the November 2018 40%+ correction and the icing on the cake was a quick blow off to $7,500. A number of crypto analysts have also pointed out that while Bitcoin has gone parabolic, the parabola has broken as the digital asset has not set a higher high after reaching $7,581?

It should also be noted that Bitcoin’s lightning quick ascension took place with few retracements and a pullback. In other words, consolidation could be imminent.

Bears are also likely closely eyeballing the current price action to establish short positions right at the current top so traders should exercise care and not FOMO into a position or play the upcoming retraces without some sort of stop loss.

The weekly RSI has entered the overbought zone and as other analysts like Dave the Wave have pointed out, the MACD is more extended now that it was during the peak of the 2017 bull run.

BTC-USD Daily Chart

The daily chart shows that the RSI crossed 85.3779, which is the point that traditionally marked a trend change in BTC price. BTC/USD first topped a$7,489 at this threshold was crossed and then ran a little further to $7,581 before cooling off and entering what is likely to be a period of consolidation.

Going into the weekly close, BTC looks set to close above the $6,300 if not the $7,300, which most traders believed would pose significant resistance. According to the daily and weekly chart, $8,165, $8,200 and $8,500 are the next levels which could pose resistance for BTC to overcome.

The general consensus is that after such an amazing run BTC needs to either consolidate and regain strength or retrace to previous supports as the RSI, MACD, and Stoch are becoming overextended on the daily timeframe.

BTC-USD 4-Hour Chart

Traders looking to catch the dip might set alarms at $5,900, $5,500, and $5,100 in order to play oversold bounces and following bull crosses on the hourly, 4hr, daily and weekly MACD seems to be the best method for putting traders into profit.

At the time of writing the 4-hr chart shows the MACD nearing a bearish cross and the RSI remains in bullish territory.

BTC has pulled back to nearly rest on the 20 MA of the Bollinger band indicator at $6,660. A drop below the 61.8% Fib retracement level ($6,586) is where things could get interesting.

Traders should also keep an eye on the BTC-USD Longs to Short ratio and BTC-USD shorts in general as bears are likely to set up positions at the recent top and additional rejection points like $7,000.

Happy trades friends!

Where do you think Bitcoin will go over the next 48-hours?

[Disclaimer: The views expressed in this article are not intended as investment advice. Market data is provided by Bitfinex. The charts for the analysis are provided by TradingView.]

Trade Bitcoin, Litecoin and other cryptocurrencies on online Bitcoin forex broker platform evolve.markets.  


Images courtesy of Shutterstock, Trading View. Market data sourced from Coinbase.fkff

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Kvě 12

‘Facebook Coin’ Will Be More Like Bitcoin Than Starbucks Rewards, Says Analyst

Speculations about the purpose of Facebook’s planned digital coin are getting wilder. Ignoring key features like independence and decentralization, one analyst predicts that ‘Facebook Coin’ would look more like Bitcoin or Ethereum than your Starbucks reward points.


Facebook Coin Might Encourage Viewing Ads

With growing interest, many are trying to envision Facebook’s planned ‘FaceCoin.’ Lacking specifics from Facebook, speculations abound about everything from the coin’s name to what it will be used for.

Under the code name “Project Libra,” tech journalists say, Facebook, Telegram, and Signal are devising their own digital token, which would allow their billions of users to exchange money across the Internet, through their payment systems.

Others argue that Facebook’s coin will be more like one of the major cryptocurrencies. In effect, one analyst, Lisa Ellis, a MoffettNathanson partner, predicts:

The Facebook (FB) coin (Facecoin, perhaps?) would actually look more like one of the large public cryptocurrencies such as Bitcoin or Ethereum and less like the internal-payment or loyalty systems that companies like Starbucks(SBUX) use.

She adds that FBCoin will likely be a more-public coin that’s governed by an independent board such as Ethereum and its foundation.

Except That It Won’t…

But regardless of the type and number of predictions put forward, one thing is sure. Facebook’s digital coin won’t be anything like Bitcoin.

It will be issued, developed and controlled by a centralized authority. Its ledger will not be immutable, and access will likely require your Facebook account.

The social media giant has not explicitly denied or acknowledged any of these speculations too. The latest statement on the subject from the company was issued to Barron’s on May 10, 2019,

[Facebook is] exploring ways to leverage the power of blockchain technology. This new small team is exploring many different applications. We don’t have anything further to share.

Visa, Mastercard Would Welcome a ‘FaceCoin’

But while Ellis didn’t mention any specifics, Ellis believes Facebook’s coin probably will end up being a tool to encourage users to watch ads.

This is something Brave has been attempting with its browser and native BAT token though some haven’t been impressed and are working on a more bitcoin-friendly version.

Meanwhile, Ellis had also earlier warned clients that cryptocurrencies could pose an existential threat to Visa, Mastercard, and Paypal. In contrast, she argues that Facebook’s coin would actually benefit these payment giants. Ellis wrote,

If Facebook(FB) launches an open digital wallet and checkout button, the company will need to collaborate with Visa and Mastercard(MA) to enable a variety of card-based funding methods in its wallet (similar to Apple Pay, PayPal(PYPL), or Google Pay).

So how will it be like Bitcoin again?

Will Facebook’s digital currency be anything like Bitcoin? Let us know in the comments below!


Images via Shutterstock

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Kvě 10

Did the $41M Bitcoin Theft Create a Buying Opportunity for Binance Coin (BNB)?

Binance Token (BNB) has taken a significant due to the Binance Bitcoin hack but is the recent pullback an opportunity for buyers?


BNB Maybe a Steal as Binance Reels

Since topping out at $25.49 Binance Token (BNB) 00 has pulled back by nearly 27% and the fallout from last week’s Tether – Bitfinex scandal along with Binance’s recent $41 million bitcoin theft are taking their toll on the exchange’s native token.

Clearly, after a more than 500% rally, BNB was ripe for a bit of profit taking and a trend change but the current dump could be more connected to recent events and not a representation of BNB’s value from a technical standpoint.

BNB-USDT Daily Chart

binance

As recently as May 2, BNB was consolidating between $25 to $21 and posting daily lower highs. It’s clear that altcoin was losing strength as it struggled to stay above the 12 EMA The bear cross on the daily MACD corresponds with the April 26th news of Bitfinex misappropriating $850 million USDT to cover their own losses.

BNB-USDT 4-Hr Chart

Today’s pullback brought BNB below both moving averages and the 12 is on the verge of crossing below the 26 EMA. There is the possibility of an oversold bounce occurring shortly as the RSI and MACD are each oversold, but barring a massive influx of buyers, the bounce is not likely to change the trend or extend past $19.50.

On its way to $25.49, Binance Coin blasted through $17 – $21 (61.8% Fib retracement) and the lack of support beneath $19 explains why BNB is slicing through this level towards more solid support at $15. If $17.30 doesn’t hold then the 50% fib level.

Given that USDT and BTC have shaken off and recovered from the same recent events that now impact BNB, it’s likely that BNB will also recover as the public gets over the shock of the largest crypto-exchange by daily volume enduring a $41 million hack. Luckily, it has resulted in zero Binance users losing funds.

In result, the current price could be a buying opportunity for swing traders as a return to the previous range represents a 20 – 25% return and those looking to set up a long position might consider buying a quarter of their expected investment.

Is Binance Coin a buy now under $19? Share your thoughts below!

[Disclaimer: The views expressed in this article are not intended as investment advice. Market data is provided by Bitfinex. The charts for the analysis are provided by TradingView.]

Trade Bitcoin, Litecoin and other cryptocurrencies on online Bitcoin forex broker platform evolve.markets.  


Images courtesy of Shutterstock, Trading View. Market data sourced from Coinbase.fkff

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Kvě 10

Top 5 Biggest Crypto Exchange Heists in History

The news of the Binance hack left the cryptocurrency industry rattled. Although, it turns out that a massive $40 million’s worth of BTC doesn’t even register this heist among the worst. Check out the five biggest exchange hacks in crypto history.


The 5 Biggest Exchange Hacks in Crypto

5 biggest crypto exchange hacks

As you can see from the above image, the Binance hack comes in a measly sixth place. There’s no doubt that the world’s biggest cryptocurrency exchange will recover from its stinging loss.

The hacker only targeted Binance’s hot wallet which holds just 2 percent of all the exchange’s BTC. In fact, CEO Changpeng Zhao (CZ) is already chalking it up to a “lesson learned” (albeit an expensive one).

And, it could have been way worse–just ask Coincheck, the Japanese exchange that still takes first place in the biggest exchange hacks in crypto history.

1. Coincheck (Jan 2018)

According to cryptocurrency intelligence agency CipherTrace, 2018 eclipsed all other years as far as exchange hacks go, with Coincheck leading the way. To kickstart the year that would also be the longest bear market for the industry, Coincheck was hit by hackers stealing more than 500 million NEM cryptocurrency (around $530 million).

NEM stuck the blame firmly on the ‘relaxed security measures’ of Coincheck even though it was only its cryptocurrency XEM that was stolen. No hard fork was carried out and Coincheck, for now at least, retains the top place on the list.

2. Mt. Gox (Feb 2014)

Eclipsed in the dollar amount stolen, the Mt. Gox hack is still undoubtedly the most infamous exchange hack of all time. It’s still the largest Bitcoin heist, in fact, with an eye-watering 850,000 BTC snatched by hackers (around 6 percent of all available BTC at the time).

Up until the start of 2014, Mt. Gox handled some 70 percent of all the world’s BTC transactions. By February of that same year, it was declaring bankruptcy.

While some 200,000 of the stolen BTC was recovered, other users remain hopeful of recuperating their funds. A trustee Nobuaki Kobayashi is now in possession of over 141,000 BTC and 142,000 BCH and is supposed to return them to their rightful owners. The question is, when?

3. BitGrail (Feb 2018)

Shady as they come Italian exchange BitGrail lost some 17 million Nano tokens worth around $170 million in the third biggest exchange hack in crypto history.

While the hack was revealed in 2018, the plot around the story soon began to thicken as users became aware that the exchange had been targeted previously and was insolvent for a number of months prior.

Moreover, its owner Francesco Firano tried to place the blame on Nano, requesting a hard fork to recuperate the funds. This was denied and the blame was laid squarely on BitGrail. In 2019, a court ordered Firano to return the missing funds to BitGrail customers.

4. Bitfinex (Aug 2016)

Controversy over Tether and one of the largest ever exchange hacks in crypto history, it’s a miracle that Bitfinex is still standing. The hack happened in August 2016 when more than 120,000 bitcoins were stolen causing the value of BTC to plummet within hours of the attack.

Users were compensated, however, unlike in many other situations, but they were paid out in BFX tokens rather than BTC.

5. Zaif (Sept 2018)

Losing around $60 million in cryptocurrencies including Bitcoin, Bitcoin Cash, and MonaCoin, Zaif was the second major Japanese exchange to lose funds after Coincheck earlier in 2018. This lead to Japan’s FSA to carry out an investigation of the incident.

They later found out the much of the stolen funds were traded on exchanges including Binance and Huobi. Hackers did this by creating hundreds of accounts and depositing just 2 BTC in them all, thus not triggering Binance’s AML red flags.

Don’t Keep Your Funds on an Exchange

We’re watching history repeat itself time and again. Hackers already stole over $356 million from exchanges in Q1, 2019.

The Binance attack is just another in a never-ending security breach waiting to happen and the moral of the story is always the same. Don’t keep your funds on an exchange. If you do, you’re putting your cryptocurrency at risk.

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