Říj 13

Sunday Digest: Bitcoin Price Consolidation, And The SEC Spoils The Party

Japan was hit by Typhoon Hagibis this weekend, causing devastation and affecting both the Japanese Grand Prix and Rugby World Cup. So what has been causing devastation and affecting bitcoin and cryptocurrency markets for the past week?


Bitcoin Price: Consolidation Station

So it seems we are back in a consolidation phase, albeit around the lower underlying price point of $8k.

Monday saw a dip down to $7,800, prompting some to herald the long-awaited return of an alt season that some think will never come.

Bitcoin price bounced back up to $8200 on Tuesday, but a whale move of 13,180 BTC on Wednesday sparked fears of another dump.

That dump never materialized, with the price actually pushing higher towards $8600. Although, perhaps a “terminal shakeout”, is what the market really needed to spur another bull-run, suggested one analyst.

Fundstrat’s Tom Lee felt that the next breakout was more reliant on a positive move from the S&P500, however.

Whatever will spur the next breakout, didn’t come this week, as price slipped gradually back to the $8300 level.

Bitcoin Network: Evolution Vs Revolution

The Bitcoin network isn’t perfect (there, I said it). If it was then there would have been no need for the flood of ‘improved’ altcoin clones which we see today. However, there are some interesting updates in the pipeline, including the Schnorr and Taproot soft-fork.

This aims to improve scalability and fungibility, amongst several other updates. So is this going to deal with all of the legacy ‘issues’ with bitcoin scalability and spur a new wave of fans getting on board?

Not according to BitMEX, which doesn’t see network improvements or second-layer solutions like Lightning Network as a magic button with immediate effects. Instead, it says, Bitcoin may slowly improve over the years, rather than gain the sudden technological jump that users want.

Meanwhile, Ethereum’s upcoming upgrade to ETH2.0 has been labeled a “scam” by critics over claims of scalability. But then, by now we all realize that in the crypto-world, haters gonna hate harder.

One DEX Opens, Another One Closes

On Monday, John McAfee launched his Twitter-teased KYC-free decentralized exchange (DEX), McAfeedex. Initially only allowing listings of Ethereum-based coins, it did have the benefit of those listings being completely fee-free.

Then on Tuesday, Aphelion closed down its DEX platform making the native APH token worthless. It is not believed that this was due to the launch of McAfeedex, rather the relative lack of interest in DEX solutions currently.

News In Brief

Binance quietly added WeChat and Alipay onramps to its P2P trading solution for the Chinese market. This move was so quiet however, the WeChat and Alipay weren’t aware of it, and nixed the whole thing as soon as they found out.

Bakkt futures products have been gaining momentum after a slow start, while Grayscale is trying to tempt high-flyers with zero premium on GBTC.

Ripple announced an updated release schedule regarding the 55 billion XRP it holds in escrow. According to the new list, Ripple will be flooding the market with its personal stash for the next 18 years.

Meanwhile, Ripple CEO, Brad Garlinghouse threw shade at Facebook’s Libra, claiming it would not launch in the next three years. At the same time, he made a flawed analogy between XRP and oil, in an attempt to defend against accusations that Ripple sold XRP as an unregistered security.

In more bad news for Libra, Visa, Mastercard, and Stripe followed PayPal out of the Libra Association, following strong warnings from US Senators.

The ‘widow’ of QuadrigaCX CEO, Gerald Cotten, will allegedly handover assets of the exchange still in her possession, along with her husband’s entire estate, and a vast majority of her personal assets, to liquidators for the compensation of the exchange’s customers.

UNICEF is accepting funds in Ether and BTC, and in a surprising move, will not convert these funds into fiat, but distribute and use them in original form.

Ether was ruled to be a commodity by the CFTC, paving the way for ETH derivatives markets.

And Finally…

The SEC was due to give Bitwise Investments a decision on its application for approval for a Bitcoin-ETF by today. On Tuesday, Managing Director, Matt Hougan, said the company was optimistic about approval being given.

Hougan didn’t have to wait until today to find out, as the SEC gave its final decision before the final deadline. Unfortunately, it was bad news for anyone hoping to finally see a regulated Bitcoin-ETF.

The SEC also managed to put the kibosh on Telegram’s planned $1.7 billion planned ICO, at least for the time-being.

What do you make of this week’s bitcoin and crypto news? Let us know your thoughts in the comment section below!


Image via Shutterstock

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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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Srp 17

3 Reasons Why Bitcoin Price Hasn’t Returned to $13,000

Despite the promises of crypto analysts and institutions like Goldman Sachs, Bitcoin price continues to hover around low 5 figures. What’s going on?


After struggling to hold above the $11,000 point earlier this week, Bitcoin price, at last, succumbed to selling pressure and dropped below $10,000 for the second time in three weeks. Prior to the drop, numerous analysts predicted that $10k would serve as a reliable bounce point as the price represents important psychological support.

Clearly, this was not the case and even after making a strong upside move from $9,500 to $10,450, Bitcoin still struggles to stay above $10,100. 

Let’s take a look at what is keeping the king of cryptocurrencies down. 

Dovey Wan says Ponzi Scheme is Crashing the Crypto Market

On July 14 Primitive Crypto founding partner Dovey Wan attributed the sharp sector-wide correction to bulk Bitcoin sells from PlusToken, a Chinese Ponzi scheme. The scheme managed to accrue 200,000 Bitcoin and more than 800,000 Ethereum from naive investors in China.

According to Wan, not every member of the PlusToken team has been arrested yet and data from cybersecurity auditing firm Peckshield shows that recently more than 1,000 Bitcoin was transferred to Huobi and Bittrex from PlusToken accounts. 

Wan is convinced that the scammers are covertly shifting their funds “into small batches into exchanges, like 50 to 100 Bitcoin per batch.”  Wan also claimed that she recently stumbled across a chat where Chinese traders were saying that someone had been dumping 100 BTC non-stop on Binance.

If true, it is entirely possible that large back to back sales of Bitcoin could affect spot rate across exchanges but this sole event is probably not fully responsible for Bitcoin’s malaise

Mind the CME Gap 

The CME Bitcoin Futures gap is another popular topic amongst Bitcoin traders and many cite the existence of the gap as a reason why Bitcoin continues to drop below $10,000. A glance at a Bitcoin daily chart shows an $870 gap between $7,177 and $8,050.

The gap is simply the outcome of Bitcoin price moving over the weekend while the CME Futures are closed and the space denotes the difference between the previous close and the new opening price once the market reopens.

The gap is a cause for concern as traders set the price as a target that must be filled at some point, typically when an asset corrects and retraces to supports in the vicinity of the gap.

Many traders believe that Bitcoin must revisit this $7,100 to $8,500 range to truly correct before resuming its strong bullish trend to a new all-time 2019 high. 

Bitcoin Accumulation Before Surge on Recession Fears 

An assortment of crypto analysts have posted charts suggesting that Bitcoin has entered a lengthy consolidation phase and will continue to be pinned between $9,000 to $14,000 until more excitement and momentum build up over the 2020 halving event. 

Earlier this week as the stock market took a horrific tumble over weakening macroeconomic fundamentals, fears of a recession sprang up as an economist focused on an inverted yield curve on treasury bonds.

This week the slope on US Treasury bonds became inverted and for economists and market analysts, this is typically an indicator that a recession could be on the way.

At the same time, Gold has continued to rise in price and many investors believe that Bitcoin is a similar store of value and hedge against volatility.

If the US and other countries truly are on the verge of a recession, one would increase inflow into Bitcoin and a significant increase in its market cap and value.

At the time of writing, Bitcoin is steadily dropping back towards $10,000 and $9,800 is the most immediate support level. 

Do you think Bitcoin price will dip below $10,000 over the weekend? Share your thoughts in the comments below! 


Images from Bitcoinist Image Library, Twitter: @DoveyWan, BTC/USD charts by TradingView

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Srp 16

Coinbase Custody Acquires Xapo’s Institutional Business

Coinbase Custody today announced that it has acquired Xapo’s institutional business, making it the largest crypto-custodian in the world. The acquisition brings Assets Under Custody (AUC) to over $7 billion, servicing over 120 clients in 14 countries.


Innovation In Cryptocurrency Custody

Xapo is a long-respected name in the world of cryptocurrency custody solutions. It has led the industry in developing security techniques to meet the rigours of institutional clients.

In 2017 it hit the headlines for storing customers’ bitcoin in a fortified ex-military bunker in the Swiss Alps. By May 2018 it was holding around $10 billion in bitcoin for customers across five continents.

CEO, Wences Casares, has long been a champion of Bitcoin, and Xapo’s mission is to make Bitcoin secure and accessible. Casares believes that any investor who doesn’t have at least a one percent position in Bitcoin is being irresponsible.

Coinbase’s Move Into Crypto-Custody

Coinbase Custody started trading a year ago, with a remit to provide secure cryptocurrency storage for institutional investors. According to marketing it combined the ‘battle tested’ cold-storage solutions employed by the Coinbase exchange, with an institutional-grade broker/dealer.

It quickly added a raft of additional crypto-assets to its original four of BTC, ETH, BCH, and LTC. However, there were questions as to whether institutions would immediately trust the offering. Certainly, while the bear market was in full swing, growth in AUC was slow.

It wasn’t until the bulls really started taking control again in May this year, that AUC crossed the $1 billion mark. But since then, growth has been steadier, and with this latest acquisition of Xapo’s institutional business, Coinbase Custody are claiming over $7 billion in held assets.

The Final Hurdle To Institutional Adoption?

There are many who think that crypto-custody is the final hurdle to institutional adoption of bitcoin and cryptocurrency. This area is certainly where a lot of resources are currently being deployed.

Bakkt is still waiting on approval from the New York authorities for its custody solution, before it can start offering its physically backed bitcoin futures products. Fidelity’s move into crypto-custodianship was supposed to remove one of the final barriers to institutional adoption back in March.

Even the South Koreans are getting in on the act, although technically, the legality of cryptocurrency in the country is still in question.

We are still waiting for the expected flood of institutional investors, but steps are certainly being made. Whether their eventual arrival will be a positive thing is another question entirely.

What do you make of this latest Coinbase acquisition? Add your thoughts below!


Images via Shutterstock

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Srp 13

Analyst Looks to Blockchain Data to Explain Why Bitcoin is Still ‘Bullish’

Market analyst Jesus Rodriguez believes that investors should consider blockchain datasets when devising their Bitcoin investment plans.


Blockchain data helps with crypto investing

On August 12, Invector Labs chief scientist, Jesus Rodriguez, took to Hackernoon and made his case as to why he believes Bitcoin remains bullish despite correcting from $13,800. At the time of writing, Bitcoin continues to struggle to overcome $12,000 and technical analysis suggest the digital asset could drop to $10,800 – $10,600 over the short-term. 

According to Rodriguez, the majority of speculation surrounding Bitcoin price has been focused on macroeconomic factors such as the US / China trade-war, global monetary easing and central bank policies that are leading to the devaluation of fiat currencies. 

Last week, President Trump introduced additional tariffs on Chinese goods and the Dow Industrial Average reacted by dropping nearly 800 points. At the same time, volatility has increased across major world indices and China placed the cherry on top of this disastrous sundae by devaluing their currency. 

Meanwhile, Gold and Bitcoin increased in value as investors viewed the assets as a store-of-value and hedge against volatility. 

What does blockchain say about the Bitcoin rally?

While these are incredibly relevant factors that are clearly impacting Bitcoin price, Rodriguez suggests that investors take a deeper look beyond the macroeconomic perspective and analyze blockchain data. 

Looking closer at blockchain data could uncover some interesting details and patterns that shed light on the recent Bitcoin rally. 

According to IntoTheBlock’s blockchain-based data sets, nearly 90% of Bitcoin investors are “in the money”. There are also nearly one million addresses with positions acquired near Bitcoin’s current price and Rodriguez argues that these investors will help “influence the trading activity in the next few days.”

IntoTheBlock’s Break-Even analysis primarily focuses on realized gains and the indicator shows that Bitcoin’s next strong support/resistance is near $10,400. Rodriguez also pointed out that as BTC price rose, so did the number of active addresses and this is a sign of growing strength within the Bitcoin network. 

Rodriguez also attempted to poke a hole in the default explanation that China’s yuan devaluation led to Asian investors taking shelter in Bitcoin. 

Macro is micro when it comes to analyzing Bitcoin price action

Even more interesting is the fact that the majority of ‘new’ Bitcoin investors accumulated the digital asset before the current price rally began.

Essentially Rodriguez is saying that the current macroeconomic factors are reflective of long-term, structural challenges that have long existed in various economics and are just now showing themselves. 

This does not mean that macroeconomic challenges are directly responsible for the majority of BTC price action. In fact, macro-economic factors are short-term price indicators for Bitcoin price action and should not be fully relied upon to predict price movement. 

Roderiguez advises that investors also incorporate analysis of blockchain data like on-chain activity, network hash-rate, volume of large institutional and retail transaction, new address origination and the fluctuations in Bitcoin address openings, closing and transfers at various price points. 

By doing this, investors attain a more comprehensive view of the whole market and are likely to make wiser investment decisions. 

Do you think the current Bitcoin rally is primarily driven by macroeconomic factors? Share your thoughts in the comments below! 


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Čvc 29

Australia Wants To Limit Cash Payments Not Cryptocurrency

Draft legislation from Australia’s Department of Treasury has proposed limits on cash payments exceeding $10,000. Interestingly, cryptocurrency is not negatively mentioned in the document.


Australia Moves to Limit the Size of Cash Payments

Australia’s Department of Treasury recently published a new set of preliminary guidelines that govern the size of cash-based currency payments. The draft legislation proposes that a “payment limit of $10,000 for payments made or accepted by businesses for goods and services”.

The draft further stipulates that “transactions equal to, or in excess of this amount would need to be made using the electronic payment system or by cheque.” 

In 2018 the Treasury Department’s  Black Economy Taskforce proposed that implementing limits on currency transfers would significantly assist with combating tax evasion and other criminal activities. 

Cryptocurrency Makes the Exceptions List

The proposal also provides a detailed list of situations under which payments are not subject to the cash payment limit:

  • payments related to personal or private transactions (other than transactions involving real property);
  • payments that must be reported by an entity under anti-money laundering and counter-terrorism legislation, provided, broadly, the entity with a reporting obligation complies (or is reasonably believed to have complied) with their obligations under that legislation;
  • payments made or accepted by a public official in which the public official is legally required to make or accept cash payment in the course of their duties;
  • payments that exceed the cash payment limit because the payment is part of a transaction involving collecting, holding or delivering cash and this is undertaken in the course of an enterprise of collecting or delivering cash
    (i.e., providing cash-in-transit services);
  • payments that only exceed the cash payment limit because payment is or includes an amount of digital currency; and
  • payments that occur in situations where no alternative method of payment could reasonably be used.

Interestingly, one will note that cryptocurrency is not listed as a form of payment in need of additional oversight or restrictions. Typically, cryptocurrency is synonymously looped into discussions and legislation focused on illicit activity, money laundering, and terrorist funding.

In this case, cryptocurrency as a payment option falls under the second exception setting “payments that must be reported by an entity under anti-money laundering and counter-terrorism legislation.” As is common knowledge, the majority of major cryptocurrency exchanges have complied with the government’s requirement that exchanges implement adequate know-your-customer (KYC) and anti-money-laundering (AML) processes. 

Australia Believes Crypto Needs Room to Grow

Section 9 of the draft legislation provides greater clarity on digital payments, along with the specifics of their exemption from the cash payment limit. According to a document released by the Department of Treasury: 

Digital currency is a new and developing area in the Australian economy. Unlike physical currency, it does not have a firmly established regulatory framework or industry structure. This makes it difficult to apply the cash payment limit in a way that would not largely prevent the use of digital currency in Australia or significantly stifle innovation in the sector.

At the same time, there is little current evidence that digital currency is presently being used in Australia to facilitate black economy activities. Given this, the Government has decided at the present time to effectively carve digital currency out from the cash payment limit.

This position will remain under ongoing scrutiny to ensure that the exemption for digital currency payments remains appropriate in light of the current use of digital currency in the Australian economy.

The Department of Treasury website clarified that the draft was “released for public consultation” and the government is planning to implement the cash payment limit starting on 1 January 2020. The public is encouraged to submit opinions to the consultation and all inquiries must be submitted by August 12, 2019. 

Do you think limits on the size of cryptocurrency payments should fall under the command of Australia’s Department of Treasury? Share your thoughts in the comments below! 


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Čvc 23

Palestinian Authority: Cryptocurrency Will Bring Economic Freedom

The Palestinian Authority believes issuing a sovereign cryptocurrency token will reduce Palestine’s reliance on the Israeli shekel.


Palestinian Authority: First Money, then Power

Palestinian Prime Minister Mohammad Shtayyeh recently announced that his government will use cryptocurrency to bypass sanctions levied by Israel. Shtayyeh issued the statement while speaking before the Palestine Center for Computer Emergency Response in Ramallah on July 9. While speaking on Palestine TV, Shtayyeh said: 

The Palestinian economy has about 25 billion shekels [$7 billion] circulating in the local economy, but we’re not forced to remain dependent on the shekel.

Shtayyeh promised to consider every option and do whatever it takes to find a path to economic freedom that Israel cannot block. The 1994 Paris Protocol equips the Palestinian Monetary Authority (PMA) with the powers of a central bank, but the government has been unable to issue banknotes. The agreement was signed by the Palestinian Liberation Organization (PLO) and Israel in 1994 but it states that the shekel will be used “as means of payment for all purposes including official transactions.”

As a result, the Israeli shekel is one of the primary currencies in circulation, along with the Jordanian dinar, and the US dollar. 

Not All Good Ideas Work

In 2017, the PMA pitched the idea of launching a sovereign digital currency and the body hopes to have the digital asset ready within the next five years. In theory, using a sovereign digital asset to bypass sanctions sounds good but not everyone is on board with the idea. 

Najah University economics and social science professor Bakr Shtayyeh doubts that cryptocurrency will be economically feasible or practical for most Palestinians. Shtayyeh also questioned whether a Palestinian cryptocurrency will effectively separate Palestine from relying on Israel. Shtayyeh told Al-Monitor:

If Palestine has its own currency will it be able to prevent Israel from withholding tax clearance funds or controlling crossings and the movement of exports and imports? Will Palestine be able to conclude direct commercial deals with neighboring countries without the imported or exported goods passing through Israeli commercial ports. 

Shtayyeh believes that money is not the problem, rather, the Palestinian economy’s “complex economic and political reliance on Israel” is the true issue. According to Shtayyeh, “there are 170,000 Palestinians working in Israel who earn their salaries in the Israeli shekel [and] 80% of the trade exchanges with Israel are in shekels.” 

Furthermore, what foreign parties or countries would actually take the risk of violating international sanctions to transact with Palestine using its sovereign currency? Shtayyeh explained that in all reality, Israel will shun Palestine’s cryptocurrency and the countries reliance on the shekel will “remain unchanged”. 

Cryptocurrency to Alter the Post World War II International Order?

Security is another issue to consider, and Shtayyeh and Mazen al-Agha, an economics professor at the Palestinian Planning Center cautioned that Israel’s cybersecurity, cyberattack capability, and software development infrastructure is extremely advanced compared to Palestine.

Even if Palestine’s digital currency is developed to completion, there’s always the possibility that it could be compromised by outside cyberattacks. Shtayyeh and al-Agha suggest that a more realistic option would involve Palestine reducing trade exchanges with Israel and building special trade relations with neighboring countries. 

Palestine is not the first country to consider cryptocurrency as a method for overcoming oppressive governments or international sanctions. Currently, Iran, Cuba, Venezuela, and the citizens of Zimbabwe are considering cryptocurrency as a path to economic freedom.

All of the concerns aired by Shtayyeh and al-Agha are valid critiques that must be considered and while they may come off as skeptics, both agree that “in theory, it’s possible to issue this currency, but in practice, there are a lot of difficulties. Before issuing it, the PA needs to create a favorable economic environment.” 

Do you sovereign digital assets are a path to freedom for countries like Palestine, Venezuela, Iran, and Cuba? Share your thoughts in the comments below! 


Image via Shutterstock

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Čvc 21

Coinbase Bins Bundle Product as Altcoins Get REKT

After 8 months on the market, Coinbase binned its crypto-diversified Bundle product. Does this mean that the altseason is never coming back?


Coinbase Bins the Bundle

Altseason is over and nobody is quite sure when it’s coming back. Coinbase appears to have received the message, to the extent that the exchange binned its diversified crypto-bundle product. A quick view at the exchange’s updated FAQ reads: 

Coinbase Bundle purchases have been deprecated, as such all assets purchased in the Conibase Bundle have been redistributed to their respective individual asset wallets.

Coinbase Bundles were meant to provide crypto investors with a diversified digital asset portfolio that could be dollar-cost averaged following the same tactic investors use in traditional asset classes. Initially, investors could throw down $25 to purchase a bundle of five cryptocurrencies which were balanced in proportion to their market cap. 

Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, and Litecoin comprised each bundle. In combination with Coinbase Learn and Asset Pages, the bundles were meant to appeal to crypto newbies looking to dollar cost average into long positions without having to conduct an immense amount of technical analysis and research. 

When introduced in September 2018, Coinbase said: 

The vision of an open financial system depends on people’s ability to understand, explore, and choose cryptocurrencies. We expect that millions of people will make their first cryptocurrency purchase in the coming years. But all too often, getting started can be overwhelming for people learning about crypto for the first time.

It’s not Time for Crypto Diversification

While the product cancellation is bound to draw some criticism and possibly even pleasure from those who despise Coinbase, its is probably a wise move to bin the product as altcoins have been pummeled as Bitcoin rallied and corrected.

The crypto-sector is akin to a baby learning how to walk and each company will trial various products and adjust as necessary. The cancellation of Coinbase Bundle also adds credibility to the argument that diversification does not work for crypto yet as the sector remains too volatile at the moment. 

Do you think digital asset diversification is a successful investing strategy? Share your thoughts in the comments below! 


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Čvc 19

Bitcoin Still Legal In India; Crypto Regulation in Works

Bitcoin will remain legal in India while the government works on regulations, a minister has said in new positive comments on the fate of the industry.


Finance Minister: Bitcoin Regulations Coming

Responding to a request for clarity on the state’s view of cryptocurrency, Anurag Thakur, India’s Minister of State for Finance & Corporate Affairs, firmly denied any token was illegal. 

The comments contradict the content of an alleged draft law which surfaced last week, which outlined plans for a blanket ban on cryptocurrency and prison sentences for its use. 

The document, which appeared online from a local lawyer, appeared to form the basis of the queries to Thakur, who nonetheless did not refer to its contents explicitly.

“No, Sir,” he replied when asked whether the government “has prohibited cryptocurrency.”

“Taking note of the issue, the Government has constituted an Inter-Ministerial Committee (IMC) under the Chairmanship of Secretary (EA). The IMC has submitted the Report to the Government,” he continued.

As Bitcoinist reported, India continues to find itself in a state of flux after highly-mixed messages from authorities and the central bank. 

In July 2018, the Reserve Bank of India (RBI) forbade banks from serving cryptocurrency businesses, resulting in shutdowns for some and exodus overseas for others.

The draft bill, which has not seen recognition, made further reference to the creation of a digital rupee, which its author or authors said would become India’s only legally-allowed domestic digital currency. 

The industry has meanwhile sought to overturn the RBI ban via the courts, a process which appears to have run into multiple delays. 

‘Careful Steps Forward’

Summarizing, Thakur struck a cautious tone, signaling that existing rules applied to cryptocurrency while Delhi thrashed out new regulations.

“Presently, there is no separate law for dealing with issues relating to cryptocurrencies. Hence, all concerned Departments and law enforcement agencies, such as RBI, Enforcement Directorate and Income Tax authorities, etc. take action as per the relevant existing laws,” he confirmed.

“Similarly, police/courts take action on IPC offenses. Further, in view of the risks and dangers associated with cryptocurrencies, Government and RBI have been issuing advisories, press releases, and circulars to the public.”

His words saw a warm welcome among the local cryptocurrency industry, with Nischal Shetty, CEO of exchange WazirX, saying the government was taking “careful steps forward.”

The government saw direct backlash when the draft law emerged, with investor Tim Draper openly calling it “pathetic and corrupt” for allegedly suggesting the ban.


What do you think about the latest comments on bitcoin from India? Let us know in the comments below!


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Čvc 15

‘Still Positive About $1 Million Bitcoin Price By 2020 End’: John McAfee

Bears showed up en masse to administer a proper beatdown to Bitcoin price today. Where do we go from here?


Big Players Orchestrate a ShakeOut

On Sunday bears launched a coordinated assault on Bitcoin price which resulted in the price dropping below $10,000 for the first time since July 2. By the weekly close, the king of cryptocurrencies had dropped $1,400 and the total crypto-market cap dipped below $300 billion. As the carnage occurred, the illustrious John McAfee took to Twitter and lambasted investors who were running for the hills forecasting doom for Bitcoin. 

McAfee scolded investors for freaking out over weekly fluctuations and reminded investors to recall Bitcoin price’s parabolic move over the past few months.

Bitcoin Price Going To $1 Million

Despite today’s $1,400 correction, McAfee remains confident that Bitcoin price will reach his $1 million projection by the end of 2020 and he isn’t the only crypto influencer not bothered by today’s correction. 

Popular crypto-analyst PlanB tweeted an intriguing stock to flow analysis which shows BTC price reaching $100K a little after the 2020 halving event, followed by $1 million by 2024 and $10 million by 2028. 

On July 12 Tuur Demeester also posted a chart outlining Bitcoin’s seasonal price performance since 2011 and eagle-eyed traders will probably glean useful tidbits that will help provide foresight into Bitcoin’s future price action.

While today’s drop from $11,400 to below $9,800 is terrifying, corrections of this type are normal for Bitcoin. Investors with a long vision of Bitcoin realize that sharp pullbacks tend to follow parabolic advances and the current correction is likely an opportunity to accumulate more Bitcoin. 

As one would expect, the rest of the top-10 cryptocurrencies took on heavy losses as Bitcoin crashed. Ethereum dropped as low as $191, while Litecoin, EOS, and XRP also took on heavy losses ranging from 15 to 20 percent.

Overall, the crypto market dropped more than $20.1 billion over the last 24-hours. It’s likely that analysts will spend the next few days attempting to determine if the drop was primarily based on technicals or whether larger hands were at play. 

Do you think Bitcoin price will quickly recover to $12,000? Share your thoughts in the comments below! 


Images via Shutterstock, Twitter: @officialmcafee, @100trillionUSD, @TuurDemeester

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