This New Bitcoin And Cryptocurrency Exchange Cant Be Hacked – Forbes


Bitcoin exchange hacks have plagued the cryptocurrency ecosystem since the first platforms for trading were launched in the early 2010s, and these events have caused major public relations issues for the entire crypto asset market. While exchange hacks dont have anything to do with potential technical problems related to the underlying Bitcoin network, its never a good look when millions or even billions of dollars worth of Bitcoin is stolen from thousands of exchange customers in a matter of minutes.

Although the Bitcoin exchange industry has improved its ability to deal with crypto asset security over the years, the threat of another large hack is always looming over the ecosystem. But that could soon change.

One of the main features of Bitcoin is that its programmable money, and developers have figured out new ways to build exchanges in ways that do not require users to turn over control of their funds until the exact moment they want to make a trade. One of the new exchanges that is taking advantage of this technology is Nash.

How Does Nash Secure Customer Funds?

In the past, exchange customers have always deposited their coins onto trading platforms with the exchange taking custody of the funds. That exchange platform then becomes a central point of focus for hackers because theres a big payday in it for them if theyre able to get into the exchanges internal wallet.

With platforms like Nash, users do not need to hand over custody of their crypto assets to a third party before they trade.

Many Bitcoin enthusiasts are excited about the Lightning Networks potential to cut transaction costs, speed up transactions, and potentially improve user privacy. And this same sort of technology can be used to vastly improve the level of security offered by exchanges.

Nash uses a system of state channel smart contracts to handle trades, and the system is currently live on the Ethereum and Neo blockchains. Notably, the Ethereum blockchain briefly surpassed Bitcoin in a key measurement of overall adoption last month. However, Ethereums ETH token is also down heavily against Bitcoin over the past couple of years.

According to Nash co-founder Fabio Canesin, Bitcoin support is expected to be added to their platform soon.

We initially demonstrated that our proposed architecture could deliver cross-chain markets that compete with the performance of centralized exchanges an extremely important parameter for liquidity, said Canesin when reached for comment. For this reason, we focused on the NEO-ETH market. Now that this is live and functioning well, we can move onto other networks. Bitcoin is the obvious next candidate owing to its importance in our industry.

State channels effectively allow multiple parties to transact with each other in Bitcoin or other cryptocurrencies without having to touch the blockchain. This works via a technical trick that involves two parties placing funds into a 2-of-2 multisig address and then creating valid transactions from that multisig address to each of their personal addresses as a way to update how much of the funds in the multisig address belong to each party. None of these generated transactions are actually broadcast to the blockchain. The only transactions that hit the blockchain are the ones at the end when each party is ready to leave the payment channel with the appropriate amount of funds (if this was too confusing try reading this longer explanation of the Lightning Network).

While decentralized exchanges have existed in the past, a key advantage of using state channels is they allow transfers to happen instantly, meaning users dont have to wait seconds or minutes for blockchain confirmations to execute their trades.

It should also be noted that, while customer funds cannot be stolen by hacking an exchanges internal wallet, hackers could still cause plenty of damage if they were able to push out a malicious software update to Nash customers. That said, this is still a huge security gain.

Updates require a signed payload using offline keys, said Canesin when asked about this potential issue. However, if a hacker did somehow manage to push a malicious update, users would also have to log in and sign a transaction before encountering an issue. The data in our software is not enough, since user-provided entropy is also required. We try to mitigate these risks by building several layers of protection.

The high level of security offered by Nash also relies on the integrity of the smart contracts backing the exchange, and vulnerabilities in advanced smart contracts have continued to pop up in 2019.

Other projects that are working on this type of non-custodial trading technology include SparkSwap, which is built on the Lightning Network, and Arwen, which has built its own plugin model for existing exchanges.

In addition to their trading platform, Nash is also working on a mobile wallet, browser extension, and payment processing service for merchants that will all be integrated with each other.

While even the developers behind Bitcoin admit the cryptocurrency is an experiment that could still fail, exchanges like Nash are another step in the right direction when it comes to improving both usability and security of this technology at the same time. This is also the sort of technology that makes it clear that it would be difficult for governments to implement a Bitcoin ban, as two members of the U.S. Congress recently admitted.

Note: This article was updated to point out the potential issues associated with complex smart contracts that are used as the basis for Nashs exchange and other similar platforms, as pointed out by Kraken CEO Jesse Powell on Twitter.

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This New Bitcoin And Cryptocurrency Exchange Cant Be Hacked - Forbes

Has Bitcoin Innovation Stalled? – Forbes

Bitcoin and cryptocurrency startups made waves back in 2017 as investors piled into anything bitcoin, crypto or blockchain related.

Now, after the initial excitement has died down, it seems the explosion in successful bitcoin and cryptocurrency startups that some had anticipated has failed to materializewith just two bitcoin and crypto companies featuring on Y Combinators list of its top 100 companies by valuation.

The bitcoin price boom and subsequent bust meant that bitcoin and cryptocurrency startups quickly fell from grace among investors, with only a few, including Coinbase and SFOX, remaining popular.

Earlier this month, seed funder Y Combinator released a freshly updated list of companies it's invested in byvaluation, with the companies included boasting a cumulative value of $155 billion.

Online payments company Stripe, which was among six companies to abandon Facebook's libra cryptocurrency project this week, topped the list, followed by the hotel-disrupting Airbnb.

San Francisco-based bitcoin and cryptocurrency exchange Coinbase placed fifth on Y Combinator's list, while the only other bitcoin and cryptocurrency startup to feature was SFOX, a crypto prime dealer for institutional investors and professional traders.

On Y Combinators previous top 100 list, released this time last year, Coinbase and SFOX were then the only two bitcoin and cryptocurrency companiessuggesting the flow of successful new bitcoin and crypto companies coming onto the scene might have stalled.

The bitcoin price, which has fallen sharply from its all-time high of almost $20,000 per bitcoin at the peak of its epic 2017 bull run, has rebounded somewhat this year but not sufficiently to rekindle investor appetite for bitcoin and crypto startups, it seems.

"Over the past five years crypto markets have experienced many downturns," said Akbar Thobhani, chief executive of Silicon Valley-based SFOX.

"The market is still at a very early stage of adoption and many of the applications are still pre-product market fit. We will continue to see growth in crypto applications and many of these applications will be built on open platforms like bitcoin and ethereum."

The bitcoin price is up over double from where it began the year, though hasn't recovered enough to restore the confidence of investors.

Last month, Coinbase and Ripple, the payments group behind the XRP cryptocurrency, crashed out of a top 10 U.S. startups list for 2019each dropping over 20 places.

Meanwhile, investors, predominantly hedge funds, are pouring cash into crypto-linked investment trusts despite the bitcoin price downturn.

Grayscale Investments, which runs ten crypto-linked investment trusts, recorded inflows of $255 million last quarter, its best ever three-month period.

"There is an across-the-board sentiment that digital currencies is an asset class that is not going away," Michael Sonnenshein, managing director of Grayscale, told Business Insider.

While investors seem happy to bet on bitcoin, they have less confidence in startups promising to bring bitcoin and crypto innovation.

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Has Bitcoin Innovation Stalled? - Forbes

Is This The Real Reason Behind Bitcoins Latest Sell-Off? – Forbes

Bitcoin has been struggling recently after a period of stability, suddenly moving sharply lower at the end of last month.

The bitcoin price, which is still up more than double from where it began the year, fell from its recent plateau of around $10,000 per bitcoin to just above $8,000 in a move widely put down to the lackluster performance of the hotly-anticipated Bakkt bitcoin and cryptocurrency platform.

Now, new data has suggested the slump in the bitcoin price might be more to do with the "coming of age" of bitcoin and cryptocurrency marketswith exciting new competitors distracting investors from the long-time crypto poster-boy.

The bitcoin price has fallen around 30% from this year's highs, dropping from over $13,000 per bitcoin to under $8,000 earlier this month.

Bitcoin, cryptocurrency and financial markets research company Indexica has found that bitcoins strongest predictive measure was its "quotability," it was first reported by Bloomberg, a financial newswiremeaning traders are treating it like any other investment asset and showing bitcoin is most often being talked about in conjunction with more traditional currencies.

"Now that bitcoin is a big kid, anything can make it move, just like anything can make gold or a G-10 currency move, said Zak Selbert, chief executive of Indexica told Bloomberg, adding bitcoins sensitivity to new competitors such as Facebook's troubled libra project and Mastercards partnership with R3 demonstrates the industry's maturity.

"Bitcoin is part of the financial landscape in a very intertwined and mature way."

Many bitcoin and cryptocurrency watchers had hoped that bitcoin's reputation as "digital gold" would mean it began acting as a so-called safe haven asset, with investors buying into bitcoin at times of political and economic uncertainty.

This appeared to happen earlier this year, until the bitcoin price moved sharply lower as gold and the Japanese yen, two traditional safe havens, climbed.

The bitcoin price hit a year-to-date high earlier this year, thought to be due to the interest in bitcoin and cryptocurrencies from some of the world's biggest technology companies, but has since fallen back.

Meanwhile, some have suggested bitcoin's recent bounce back over $8,000 earlier this week was due to the U.S. Federal Reserve's plans to pump cash into the financial market to boost bank balance sheets and drive inflation.

"We know that [Fed easing] has historically helped bitcoin," Joe DiPasquale, chief executive of the bitcoin and cryptocurrency investment firm BitBull Capital, told bitcoin industry news siteCoindesk.

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Is This The Real Reason Behind Bitcoins Latest Sell-Off? - Forbes

Bitcoin Sextortion Malware Is Even Worse Than Thought – Forbes

Bitcoin's massive price increase of the last few yearsthe price is still up over 10-fold since early 2017 despite last year's sell-offhas caused hackers and criminals to target bitcoin holders.

Wild swings in the bitcoin price, which remains highly volatile, have failed to put off hackers, who are betting bitcoin and other major cryptocurrencies will hold at least some of their value.

Now, researchers have warned a previously-known strain of malware, dubbed "Save Yourself," was not only designed to try to extort victimsbut can also potentially compromise bitcoin wallets and mine other cryptocurrencies.

Criminals have been keen to get their hands of bitcoin and other cryptocurrencies due to their relatively anonymous nature.

Those targeted by the malware, which claims the victim's computer has been hacked when it has not, receive an email claiming to have recorded pornography viewing on the device and threatening to release the recordings unless a ransom is paid in bitcoina practice known as "sextortion."

"The malware is responsible for sending a large number of spam emails part of a sextortion campaign, where the goal is to trick the recipient into believing their computer has been infected and that their porn-browsing details will be published unless they pay an extortion fee," cyber security researchers from Reason Security wrote in a blog post.

"The malware uses the computer as a proxy station to send blackmail emails to users, and uses the CPU for monero mining. To maintain a low profile, the malware will use only 50% of the CPU's capability ... [and] can also read clipboard data and replace bitcoin wallet addresses with its own address."

Researchers warned that devices infected with the email-sending malware are able to "reach more than 100,000 users in a very short time thanks to the malware's spreading capability."

The scammers also have been found to include sensitive information, such as email passwords, in the bitcoin sextortion emails, thought to have been gathered from large-scale data breaches.

Bitcoin's epic bull run, which saw the price rise from under $1,000 per bitcoin to almost $20,000 in under 12 months, meant that criminals began targetting crypto holders.

Meanwhile, cyber security experts have also warned that criminals are switching from bitcoin to litecoin, a rival cryptocurrency, in order to avoid spam filter detection.

"As this latest twist shows, threat actors can switch to the next cryptocurrency and attempt to iterate through all the scams previous versions," phishing analysts Cofense wrote.

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Bitcoin Sextortion Malware Is Even Worse Than Thought - Forbes

Bitcoin And Ethereum Suddenly Soar Despite SEC Blow – Forbes

Bitcoin and ethereum, the two biggest cryptocurrencies by market value, suddenly soared yesterday despite the U.S. Securities and Exchange Commission (SEC) rejecting the latest attempt at creating a bitcoin exchange-traded fund (ETF).

The bitcoin price is up some 5% over the last 24-hour trading period, while ethereum has risen almost 6%, both adding to gains earlier in the week.

The bitcoin and cryptocurrency market has swung wildly over the last few weeks as traders and investors seek direction.

"The news that the SEC is not going to approve a bitcoin ETF has not impacted the market with bitcoin heading higher again," Marcus Swanepoel, chief executive of London-based bitcoin and cryptocurrency exchange Luno, wrote in a note this morning.

"Overall, global markets are also up and we are seeing some positive sentiment."

Bitcoin's bounce was attributed to the U.S. Federal Reserve's plans to pump cash into the financial market to boost bank balance sheets and drive inflation.

"We know that [Fed easing] has historically helped bitcoin," Joe DiPasquale, chief executive of the bitcoin and cryptocurrency investment firm BitBull Capital, told bitcoin industry news site Coindesk.

The SEC yesterday ruled the Bitwise Asset Management ETF proposal, filed with the NYSE Arca stock exchange, did not meet legal requirements to prevent market manipulation or other illicit activities.

"Because, among other things, [Bitwise and NYSE Arca] has asserted that 95% of the bitcoin spot market consists of fake and non-economic activity, but has not established that it has, in fact, identified the 'real' bitcoin market, or that the 'real' bitcoin market is isolated from the fraudulent and manipulative activity, we find, in each case, that NYSE Arca has not met its burden to demonstrate that its proposal is consistent with the requirements ... and therefore the Commission disapproves this proposed rule change," the SEC said.

The SEC has so far rejected all bitcoin ETF proposals due to concerns around fraud and market manipulation, with the regulator knocking back the closely-watched VanEck bitcoin ETF application last month.

Bitcoin speculators have long hoped a U.S. bitcoin ETF will mean traders and investors are more easily able to buy into volatile crypto markets without having to navigate clunky bitcoin exchanges.

The bitcoin price jumped sharply yesterday, adding some $400 per bitcoin in a matter of minutes.

Bitcoin and other major cryptocurrencies were sent sharply lower last month after the hotly-anticipated Bakkt bitcoin and cryptocurrency trading platform went live with underwhelming volumes.

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Bitcoin And Ethereum Suddenly Soar Despite SEC Blow - Forbes

Yes, Even Bitcoin HODLers Can Lose Money in the Long-Term: Heres How – Cointelegraph

Since dropping from its 2019 high at $13,800, Bitcoin (BTC) has been in a rut which has led to the price retracing roughly 43% to $7,800. Traders would take a more conservative approach and describe the last two months of price action as consolidation which is typical after parabolic advances. With the 2020 Bitcoin halving event approaching, the ultimate question on the minds of most investors revolves around whether or not Bitcoin will reach a new all-time high on the heels of the event and more importantly, when.

While every trader has his or her own style, most keep a vigilant eye on Bitcoin charts and attempt to exploit every long and short opportunity that Bitcoins market cycles provide. This practice can be time-consuming, tiresome and inefficient based on ones proficiency at trading and the ability to weather the manipulative fiascos that frequently rock the crypto market.

As the crypto market matures, new technical analysis methods are being developed and traders are also beginning to pay more attention to the on-chain data produced by blockchains. To dig deeper into this topic, Cointelegraph spoke with equities and crypto-market analyst Philip Swift. Swift is also the creator of the Golden Ratio Tool and the Bitcoin 2-Year MA Multiplier.

Cointelegraph: Philip, thanks for taking the time to sit down to have a chat about crypto trading and technical analysis. What brought you to crypto?

Philip Swift: My route into crypto was less exciting than buying drugs on Silk Road, unfortunately! In 2016 I was looking to invest some profits from real estate investing. Traditional market investment opportunities looked awful as they were offering poor returns for reasonable amounts of risk. I also felt uncomfortable with the inevitable handing over of fees to some broker or money manager who probably wasnt great at their job.

I then came across Bitcoin and saw it had a much more appealing risk/reward opportunity. As I learned more about it, I could see the benefits from a social perspective too, which I thought was really interesting. So I fell down the Bitcoin rabbit hole.

CT: Why is it important to view Bitcoins price action on a logarithmic scale? Should this always be done in your opinion?

PS: There is real value in viewing Bitcoins price action on a logarithmic scale because it allows you to see two things. First, you can see the adoption curve of Bitcoin over its 10-year history as more and more people begin to use it.

Second, you can see that contrary to the popular belief that Bitcoin has only had a recent price explosion that was a bubble, Bitcoin has actually gone through three full market cycles in its 10-year history. This context is useful for helping us forecast potential price action and also for managing emotions as we enter into the next market cycle.

I definitely dont think a logarithmic scale should always be used. Thinking in absolutes is very dangerous, particularly when it comes to trading and investing. There are times where a standard scale is very useful, particularly when trading small time frames in certain market conditions.

CT: Given the unique insight on-chain data provides, do you think traders' reliance on the investing strategies and tools used for traditional financial markets is a misapplication? Why should traders focus more on on-chain data?

PS: I think of all these different approaches like tools in my toolbox. If I want to build something brilliant, I need to have a range of tools to achieve that.

I find it strange in the world of Crypto Twitter that there are people who say they only use technical analysis (TA) or only use on-chain analysis. Why would you limit yourself when clearly these different schools of thought all have value when they are applied correctly? So I use a combination of TA, on-chain metrics, and market cycle analysis. This process has consistently worked very well for me over time.

My sense is that there are people in the space who have either learned from experts used to operating in traditional markets like the Forex or they aspire to be the traditional type traders having watched some TV shows and movies. For these reasons, they think that Bitcoin should also be measured using traditional tools from these traditional markets.

This is way off the mark in my opinion as Bitcoin has characteristics that are very different from other asset classes, and more importantly, it is not yet an established asset class. It is going through a period of adoption. This makes it function differently to macro asset classes and established currency markets.

CT: How would you interpret the current Market Value Realized Value Z-score (MVRV-Z score) and could you explain this to a simpleton such as myself?

PS: The current MVRV Z-score is at levels we would expect at this point in the market cycle. In my opinion, there is still plenty of upside to go before we reach the cycle high.

MVRV Z-score highlights periods where the price of Bitcoin is extremely over or under-valued relative to its historical fair value. The indicator has been able to pick Bitcoins major cycle highs to within two weeks!

When it enters the upper red band on the chart, this indicates that price is overvalued and most likely needs to have a major pullback on big timeframes - otherwise known as entering a bear market.

CT: Your Bitcoin Golden Ratio indicator suggests that:

If this decreasing Fibonacci sequence pattern continues to play out as it has done over the course of the past 9 years, then the next market cycle high will be when the price is in the area of the 350DMA x3.

According to your indicator, this is around $19,971. Some traders say a bull market does not officially start until an asset breaks through the previous all-time high. At this price, your indicator would be showing overstretched conditions so barring a massive blow-off top, what can one forecast past the 350DMA x 3?

PS: Like any moving average, the Golden Ratio Multiplier moving average lines move with Bitcoins price. So as price increases, so do they. Therefore, by the time the price gets to the $20,000 area, the 350DMA x 3 will be much higher. In effect, the price will be trying to catch up with the 350DMA x 3, and it is unlikely to do that until they are both well above $70,000 this cycle in my opinion.

CT: Whats the likelihood that Bitcoin simply consolidates between $8,500 - $10,000 and $10,000 - $11,500 until the next halving event? How does on-chain data support this narrative?

PS: Unlikely. The halving is still 7 months away and we are seeing a lot of accumulation happening on-chain.

I do believe this upcoming halving event will create significant buying demand for Bitcoin. Markets are not efficient, and we are not rational players. I think the halving event hype coupled with global macro issues we are seeing play out as we head towards it will create hype for Bitcoin that will push the price up as people FOMO in.

CT: In your most recent tweet, you said that you believe that Bitcoin is currently in phase A of the Puell Multiple. Is this a multi-year measurement/cycle?

Puell Multiple Chart. Source: Lookintobitcoin.com

PS: Yes it is. I was highlighting how, just like the previous two major Bitcoin cycles, we have entered a period where the Puell Multiple became over-extended and had a sharp dropdown. Both of those periods were then followed by Bitcoin price action going sideways for 6-8 weeks. I am not saying that has to happen now, but it is certainly noteworthy.

CT: What else do you want to tell me? Are there any additional hot topics, statements or opinions of importance that you think the world should know?

PS: In the world of Bitcoin there seem to be two main groups of people. Hodlers and traders. HODLers think you should hold forever and constantly dollar cost average in. Traders try to grow their Bitcoin stack using leverage.

Both of these approaches have issues. HODLers have to endure multi-month bear markets with 80%+ drawdowns on their holdings. So its quite inefficient and actually poor from a risk management perspective. The vast majority of traders (over 90%) lose money in the long run so that approach is not ideal either..

I believe that there is a smarter approach for most people. Strategic investing, which requires just a basic understanding of Bitcoins market cycles and its economics. This can help you avoid buying towards the top and selling towards the bottom of Bitcoins cycles.

Over the course of Bitcoins history, people who have used this approach have significantly outperformed all HODLers and the vast majority of traders.

Bitcoin 2-Year MA Multiplier. Source: Lookintobitcoin.com

Here is a really simple chart from my site that brings this to life. If you bought Bitcoin whenever the price was under the green moving average and then gradually sold out in the red zones above the red moving average, then you would have achieved outsized returns relative to most other Bitcoin investors and traders.

CT: What is your approach to crypto investing? Intraday trading, swing trading, BTC accumulation, Fiat accumulation?

PS: I swing trade crypto and also make long term investments in Bitcoin. I dont want to spend my days stuck in front of the computer screen staring at 15-minute charts so I choose to swing trade on multi-week time frames which suits my trading style.

CT: What is the ultimate purpose of Look Into Bitcoin?

PS: I want it to help regular people (not just large institutions) invest better in Bitcoin, as I believe Bitcoin is a once in a generation opportunity that is leveling the financial playing field.

By providing free-market cycle and on-chain valuation tools for regular Bitcoin investors, it helps them see more clearly and think differently about Bitcoin prices, and ultimately supports their Bitcoin investing.

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Yes, Even Bitcoin HODLers Can Lose Money in the Long-Term: Heres How - Cointelegraph

Binance Futures Bitcoin trading volumes hit a record high – Decrypt

Number one spot cryptocurrency exchange Binance has seen its futures trading business rocket as of late, with 24-hour trading volume hitting a high of $820m on 15 October. Trading volume has since settled to around $700 millionthe same level that occurs on Binances highly successful spot trading exchange.

Since the launch of Binance futures bitcoin derivatives market in September, 24-hour trading volume had mostly settled in the $250-$500 million range. However, since the futures exchange hit a recent volume low of $300 million on 13 October, daily trading volumes have more than doubled in the last 3 days to hit a high of over $800 million.

Futures trading is classified as a type of derivatives market. Unlike spot marketswhere the settlement happens immediatelyin futures trading, the market only needs to be settled dependent on the specific markets settlement date. This settlement delay means that high leverage is commonplace for futures trading exchanges.

At the moment Binance Futures offers traders up to 20x leverage, with rivals such as BitMEX offering up to 100x. Spot markets most often have no or very low leverage. The pick up in Binance futures trading could indicate that crypto-traders are increasingly interested in speculating (with high leverage) in cryptocurrency investments.

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Interestingly, Binances other futures market, Binance JEX, is faring less well. The sister venture, which started trading five days after Binance Futures, splits its US-dollar denominated trading pairs between Bitcoin (52%), Ethereum (20%) and EOS (28%). Binance JEX also kicked off trading with around $300 million worth of 24-hour volume, but has seen a steady decline in interest, with daily volumes currently at $160 million, and seemingly trending lower.

According to data from CoinGecko, Binance Futures currently ranks at fifth place in the overall crypto futures trading market, in terms of its daily trading volumes. Ahead of Binance is Bybit ($710 million) and the three futures heavyweights of Huobi ($1.6 billion), BitMEX ($2 billion) and finally OKEx ($2.8 billion).

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Binance Futures Bitcoin trading volumes hit a record high - Decrypt

SEC Restarts Clock on Proposed ‘Bitcoin and T-Bills’ ETF – CoinDesk

The U.S. Securities and Exchange Commission (SEC) is again soliciting comments on a proposed exchange-traded fund (ETF) based around bitcoin and Treasury bonds.

According to a public filing published Tuesday, investment management firm Wilshire Phoenix and NYSE Arca filed an amendment to their ETF proposal earlier this month to address issuance and redemption for the securities and the listing/trading of the funds shares.

Coinbase Custody will act as the custodian for the bitcoin held by the trust, according to the filing. Tuesdays notice says Coinbase will provide attestations confirming the amount of bitcoin it holds within five business days of the trusts monthly rebalancing, adding a detail not present in the original filing.

The amended rule change proposal also notes that CME and Intercontinental Exchange (ICE) provide bitcoin futures products in the U.S., rather than CME and Cboe. The latter company wound down its futures product earlier this year.

Later on, the filing seemingly addresses the SECs concerns with potential market manipulation in the cryptocurrency space.

The Sponsor notes that, in connection with the Commissions analysis of whether amarket is inherently resistant to manipulation, the Commission has in certain circumstancesfocused not on the market as a whole but instead on the significant subset of the market that hasa meaningful impact on the particular ETP [exchange-traded product], the filing says, adding:

For instance, orders approving listing applications ofETPs that invest in gold bullion focused on the spot and futures market, even though gold istraded on a number of different market segments. Focusing on the spot market is appropriatebecause the spot market is the market to which the particular ETP would look to determine its [net asset value].

The amendment filed on Oct. 4 replaces and supersedes the original filing in its entirety, Tuesdays notice said.

The SEC first kicked off the comment period for Wilshire Phoenixs proposal in June, before announcing in late September that it was evaluating the proposal.

According to the filing, members of the public must submit comments within 21 days of the notices publication in the Federal Register. The SEC has 45 days after the filings publication in the Register to make an initial decision, but can extend that timeframe if it chooses to do so.

Tuesdays filing follows the SECs decision to reject a bitcoin ETF proposal filed by Bitwise Asset Management, also working with NYSE Arca. The regulator cited concerns about market manipulation and a lack of surveillance-sharing agreements as an issue in its rejection.

SEC logo image via CoinDesk archives

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SEC Restarts Clock on Proposed 'Bitcoin and T-Bills' ETF - CoinDesk

Bitcoin recovers to $8,300 after dropping 2% over the weekend – Decrypt

The majority of the top-20 cryptocurrencies by market cap are holding steady today after an up and down weekend, and the market leader is no exception.

Bitcoin dropped by about $100, or roughly 2 percent, earlier today, but has recovered to just above the $8,300 mark. Nevertheless, it marks an overall drop of around $500 since the end of last week.

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Crypto traders, at the time, could have been forgiven for briefly thinking Bitcoin was on its way toward a massive recovery. Last Friday, the price of Bitcoin hit the $8,800 markonly to drop way back down again moments later.

For the last few weeks, Bitcoin has struggled mightily to break through the $8,500 resistance mark. Holders, however, might be heartened to know that Bakkt, despite its slow start, is now starting to catch on with institutional players, and has traded nearly $2 million in Bitcoin futures contracts since last Wednesday, according to Forbes.

So if Bakkts slow start really did contribute to Bitcoins tanking price as many analysts suggest, this might provide a glimmer of hope for the Bitcoin traders eager for good news.

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Bitcoin recovers to $8,300 after dropping 2% over the weekend - Decrypt

Sign in with Lightning: New Bitcoin authentication tool goes live – Decrypt

A Bitcoin Lightning Network authentication tool has gone live at Lapps.co, a website featuring a curated selection of Lightning apps (Lapps). This means that users can Sign in with Lightning rather than using a trusted third party such as Google or Facebook.

The authentication tool was created by Rui Gomes, lead software engineer at OpenNode, a Bitcoin payments company. He believes that online authentication is still a tricky problem, which essentially trades your privacy for ease-of-use. Instead, he has created Lightning Authentication to provide a Proof of Identity that doesnt require a trusted third party. It could become the go-to method for logging into websites and apps in the emerging decentralized internet, known as Web3.

Authentication online is still an unsolved problem. Most web platforms use social sign-in methods which severely compromise your privacy, or they use simple email/password combinations which are easy to forget. Lightning Authentication solves this problem by allowing you to authenticate without giving up any private information, Gomes told Decrypt.

He mentioned that it provides greater incentives to keep your own personal details private, since theyre connected with your financial details too. It also aligns the incentive to protect your Lightning identity with the incentive to protect your money (bitcoin) because now they're one and the same, he added.

Lightning is a second layer payments network built on top of Bitcoin, designed for making faster and smaller payments. It is still in development, and there are both signs that its growing and that its shrinking, but ultimately its hard to tellas Blockstream CSO Samson Mow told Decrypt last week.

But Lightning isnt just for payments. Everyone who uses it will have a unique identifying number, which wont be connected to any personal information. And each person essentially has their own password controlling their funds (known as a private key)which its vital to keep safe. But this combination is what enables it to be used as such a powerful means of authentication.

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Gomes said, Your unique Lightning Node ID is not tied to any personal information and can be used as Proof of Identity in platforms that support Lightning Authentication. This means that any individual can prove their identity using a Bitcoin/Lighting node without the need for any government-issued ID, social media accounts, or even an email/password combination.

Instead, their Lightning Node ID is used as Proof of Identity, increasing the user's privacy, security, and user experience, he added.

The Lapps.co Lightning Authenticator is really easy to use. You simply click the button, send a tiny payment of 1 satoshi (100 millionth of a bitcoin, worth $0.00008) and youre signed in. It takes just a few seconds. And unlike using your mobile phone as an authenticator, you cant have your Lightning wallet SIM jacked. (But it is possible to be hacked and have your details stolen if you arent careful).

Lapps are a slowly emerging trend in the Bitcoin ecosystem. Essentially, they are applications built on the Lightning network that work using Lightning payments. They allow for micropayments in online applications, which could revolutionize the way we use the internet. Imagine playing a video game, and every gold coin you pick up is a tiny amount of real money, for example.

For now, this Lightning Authenticator just lets you sign into Lapps.co, giving you tools like upvoting cool Lapps or submitting Lappsyou can also sign in with Twitter toobut it could get integrated into the Lapps themselves, or other Bitcoin-related websites. One day, it might be the way to sign into every app. At least, thats what the Bitcoin hopefuls think.

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Sign in with Lightning: New Bitcoin authentication tool goes live - Decrypt

Bitcoin continues to struggle to get over the $8,700 price hump – Decrypt

Bitcoin is having a pretty good week. A bullish trend, which began on Monday, has seen the price of Bitcoin recover from its monthly low of $7,762 two weeks ago.

During the last four days, Bitcoin has climbed, but its met strong resistance near the $8,700 per coin mark.

This is a key zone, because it marks the EMA 200 line (the Exponential Moving Average of the last 200 days, which gives an approximation of what the actual price of BTC should be if we consider its performance in the previous months.

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Yesterday, a gentle bullish push that started at $8,180 sparked optimism in traders and hodlers. The bulls expected it to cross the EMA200 as confirmation of a trend that could lead BTC to at least a zone near $9,500.

And, in fact, it didbut not for long.

At 3:00 UTC, the bulls broke that barrier for a few minutes, but soon tired out. Almost immediately, the price corrected to below $8,500 per bitcoin, according to TradingView.

Currently, Bitcoin is priced at about $8,555 and is having difficulty taking off. Although this may seem discouraging for traders in the short term, the truth is that these small corrections serve to balance the markets. A trend without corrections increases its risk over time.

Zooming out, Bitcoin still remains in a downward channel. Most analysts believe that before talk of any possible rally can begin, Bitcoin must first break the resistance of this channel located near a price of $9,500.

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Bitcoin continues to struggle to get over the $8,700 price hump - Decrypt

The bugs that almost killed Bitcoin – Yahoo Finance

Bitcoin was the first cryptocurrency, being introduced to the world by the anonymous developer or group of developers that go by the name Satoshi Nakamoto.

BTC has had a long history of ups and downs, some of which were quite good for the community as it allowed folk to further accumulate additional Bitcoin. Others, however, almost destroyed the original crypto.

Today I aim at looking at some of the toughest bugs Bitcoin developers had to deal with, why did they happen, what went wrong and how they were mitigated.

I will do my best to keep things simple and not technical.

Ready to hear some of the most disturbing stories surrounding Bitcoin?

Software is created through scripts. In Bitcoin, the original version was programmed in a low-assembly language called c++.

Even though developers, especially in the open-source world, make tons of runs at the code, some bugs tend to happen. This may be due to changes that make some functions incompatible with the new code, due to errors in the new code or even due to functions that do stuff they shouldnt.

Whatever the reason may be, you must realise that Bitcoin, being open-source software, is also prone to some bugs and errors. Even though most issues are easily fixed (BTC is lucky enough to have top-notch devs looking at it), sometimes bugs that arise may cause unforeseeable problems.

Below I will look into the top three bugs and errors that almost led to Bitcoins demise.

One of the original instructions that you could run in the scripting language was OP_LSHIFT which would shift a number a certain set of places to the left. It was discovered that when using OP_LSHIFT on some machines, processing the transaction would cause the machine to crash.

The way that this bug works is that you would simply make an evil transaction and send it to a bitcoin node, effectively causing the node to crash.

The way developers fixed the bug was to invalidate certain functions, making the script return false essentially not running the program (the transaction).

Inflation bugs allow you to print more money. Its almost like you are able to become a central bank within the Bitcoin protocol.

The code that originated the problem was about adding up all the outputs and all the inputs in the transaction. You subtract all the inputs from the outputs, and if you got a negative number then that meant your outputs were greater than your inputs.

Basically an inflation bug is caused by an overflow, as in when the absolute value of the number is too high for the computer to represent it.

So this allowed the user to print money, and this bug was exploited on main net. Billions of BTC were produced.

To solve the issue the code was patched and every miner switched to a new fork, using the last block before the exploit. In essence, there was a hard-fork of the Bitcoin code.

The netsplit bug exploits the fact that you can have two alternative blocks with different transactions in it, that hash to the same value.

This doesnt mean the hash value is broken. It means that there are two blocks, with different transactions that collide, which have the same hash.

This bug has an easy fix. Miners simply need to eventually reject one of the blocks, making those transactions invalid.

Collisions may happen, and are known to happen, to a certain extent. One of the worst times there were two valid blockchains for around eight blocks. Meaning some miners were mining one chain, while others were mining a different chain.

These splits may happen but eventually get resolved, as one of the chains will get more work done and replace the other.

The post The bugs that almost killed Bitcoin appeared first on Coin Rivet.

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The bugs that almost killed Bitcoin - Yahoo Finance

Bitcoin Price: Which Countries Have the Biggest Premiums? – Cointelegraph

Up until early 2018, major cryptocurrency markets the likes of South Korea and Japan demonstrated high premiums for Bitcoin. At the 2017 peak, when the Bitcoin price was trading at around $20,000 in the U.S. spot market, Bitcoin was being traded in South Koreas cryptocurrency exchange market for around 26,000,000 Korean won, equivalent to about $22,000. This difference is now known as the Kimchi premium.

Since then, starting with the introduction of various regulatory frameworks by South Korea to reduce regional premiums that included the prohibition of trading cryptocurrencies with foreigners in the local market, premiums in major markets have declined substantially.

Still, due to the lack of supply and the relatively high demand in some markets, Bitcoin is being traded at a premium in certain regions some higher than most.

Following the prohibition of cryptocurrency trading by the Peoples Bank of China, local banks in China were ordered not to work with local Bitcoin exchanges to prevent individuals and businesses from trading digital assets. Over time, the government of China also ordered payment processors such as AliPay to stop processing Bitcoin exchange-related transactions, according to report form Chinese blockchain publication 8BTC.

But reportedly, individual investors have continued to invest in Bitcoin after the ban. The imposition of a ban on cryptocurrency trading by China forced investors to move over to neighboring countries like Hong Kong, essentially initiating trades in a peer-to-peer manner.

On the over-the-counter (OTC) trading platform of OKEx, for instance, investors can trade Bitcoin using Tether (USDT), a stablecoin backed by the U.S. dollar, and then sell the USDT for the Hong Kong dollar. The premium on Bitcoin emerges when investors exchange USDT that they use to buy or sell Bitcoin for HKD, similar to most peer-to-peer OTC markets. On OKEx, USDT is being traded at around $1.02 to $1.04, which indicates a premium ranging from 2% to 4%.

Most fiat-to-crypto exchanges in Japan and South Korea more or less follow the price trend of the U.S. spot market for Bitcoin. On Upbit and Bithumb, two of the biggest cryptocurrency exchanges in South Korea, Bitcoin is being traded at 9,900,000 Korean won, equivalent to $8,365. On Coinbase, Gemini and Kraken, Bitcoins price, as of Oct. 12, 2019, is hovering at around $8,345, indicating a slight premium of less than 0.25%.

While South Korea remains a relatively small market in comparison to Japan, the U.S. and Hong Kong, the prohibition on foreigners trading cryptocurrencies has eliminated a large portion of the demand for cryptocurrencies. In the 2017 bull market, the majority of large-scale trades in the South Korean market are said to have come from Japanese and Chinese investors and miners, decreasing the supply of exchanges.

The Japanese exchange market is also showing a slight premium of 0.2% and has seen most of its premium decline in the past two years. For spot or brokerage buys, which involve a direct wire transfer or a transaction through a payment processor directly to the exchange, there is a premium of 3.59%. On BitFlyers brokerage, the price for Bitcoin buys is estimated to be 936,621 Japanese yen, which is equivalent to $8,635 nearly $300 higher than the global average spot price.

The cryptocurrency exchange markets of Malaysia, the Philippines and Thailand are mostly dominated by brokerages such as Coins, which is the largest exchange in the Philippines and was acquired by the largest ride hailing app in Indonesia called Go-Jek. Coins, which has more than 5 million users in the Philippines alone, enables users to buy or sell Bitcoin based on precalculated price like BitFlyers brokerage, which also typically sees a premium of over 3%.

On Coins.ph, the Philippines arm of Coins, Bitcoin has a buy price of 440,280 pesos, around $8,530, indicating a premium rate of 2.2%. BuyBitcoin.ph, the second most widely utilized brokerage in the Philippines, has a buy price of 443,300 pesos, showing a premium close to around 3%. On Coins.th, the Thailand arms of Coins, the buy price of Bitcoin is hovering at 256,637 baht, or $8,425, a premium of less than 1%.

Thailand had a dominant spot exchange called BX Thailand, but the local Securities and Exchange Commission (SEC)-approved exchange shut down on Sept. 30, citing a low level of volume. The closure of popular exchanges could result in a larger price discrepancy in the short term as volumes shift to brokerages. However, over the long term, the gap should close.

On exchanges that have been operating for years in South America, the price of Bitcoin closely matches that of the U.S. spot market, even on brokerages that have fixed buy and sell prices. On ChileBit, the Bitcoin price is being traded at around $8,374, with a 0.34% premium and on FoxBit in Brazil, the Bitcoin price is trading at $8,440, with a 1% premium. The premium of brokerages and spot exchanges in South America in general with the exception of a few countries such as Venezuela and Argentina is close to zero.

The low premium may indicate a low demand from local investors as Chile, Brazil and other bigger markets in South America are not known to have large-scale mining centers that provide liquidity to the global Bitcoin exchange market.

Apart from small cryptocurrency exchange markets with relatively low liquidity, strictly regulated products that are often utilized by institutional and accredited investors to invest in the Bitcoin market consistently demonstrate substantially higher premiums.

The Bitcoin Investment Trust (GBTC), for instance, which oversees close to $2 billion in assets and enables institutional and accredited investors to invest in Bitcoin through a regulated OTC exchange in the U.S., has a share price of $9.81. Each share of GBTC represents 0.00097368 BTC, which would imply that around 1,200 shares are equivalent to the price of 1 Bitcoin.

Based on the $9.81 share price of GBTC, each Bitcoin bought through the Bitcoin Investment Trust would be worth more than $10,000. Based on the current price of Bitcoin at $8,300, GBTC indicates a premium of over 20%.

Investors pay higher premiums for products like GBTC and exchange-traded products (ETPs) because they rely on third parties to secure their Bitcoin holdings. In recent months, GBTC has been trying to enable users to invest in Bitcoin at face value without the substantial premium by operating a private placement window. Whether this will decrease the premium of GBTC remains uncertain.

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Bitcoin Price: Which Countries Have the Biggest Premiums? - Cointelegraph

Latin Americans get two new ways to trade Bitcoin, Ethereum, and more – Decrypt

The importance of the Latin American market for the crypto industry continues to become more evident, as two new cryptocurrency exchanges make their way into Central America.

In Costa Rica, local crypto startup Obsidiam today launched what it describes as a new type of hybrid exchange, according to a report from local media outlet La Republica. At the same time, Japanese exchange BitPoint is expanding an already established presence in the region by opening its doors to Guatemalans.

BitPoint had been eyeing an expansion into Guatemala for some time, according to Spanish-language media site Guatemala.com, as executives visited the country and held several meetings with local banks to explain the advantages of cryptocurrency and blockchain technology.

The meetings evidently yielded positive results, as BitPoints Latin America portal added support for Guatemala last week. BitPoint, which last July suffered a massive hack that saw the exchange lose $32 million in customer funds, is nevertheless optimistic about what its Latin American expansion means for its business and for the region.

Now, 100 million people in Latin America can safely invest in Bitcoin and the world's leading cryptoassets through BitPoint, Stefan Krautwald, a board member of BitPoint Latin America, said in a statement. Our goal is that in the short term, anyone in the region can own cryptoassets as part of their investment portfolio."

Meanwhile, in Costa Rica, Obsidiama firm that primarily deals in crypto-related financial serviceshas launched a new crypto exchange that will enable its users to trade, remit, process payments, and do many more operations with cryptocurrencies than they would otherwise be able to do with traditional exchanges or financial services.

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The firm is promoting its venture as a type of hybrid exchangea combination between a decentralized (P2P) exchange and a traditional exchange," according to its website, though it does not elaborate on what, exactly, that means for its users. The company did announce, however, that its exchange will initially support Bitcoin, Litecoin, Ethereum, and XRP, promising to add more options in the future.

All in all, the options available to Latin American users to buy and sell cryptocurrency continue to multiply.

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Latin Americans get two new ways to trade Bitcoin, Ethereum, and more - Decrypt

Virginia Bitcoin Mining Operation Ordered to Liquidate Assets – Cointelegraph

BCause Mining, a Bitcoin (BTC) mining operation in Virginia Beachin the United States, has beenordered to liquidate its assets.

In an Oct. 9 article, local news outlet the Virginian-Pilot reported that the Bitcoin mining company filed for bankruptcy earlier this year.

This week, a federal judge approved the motion to convert the filing from a reorganization to a Chapter 7 bankruptcy.

BCause Mining was ordered to liquidate its assets, shut down its operations and lay off its 27 full-time and four part-time workers.

The now-defunct mining company received a $500,000 grant in January 2018 from the city of Virginia Beach to expand its operations to a local rented warehouse.

BCause had pledged to invest more than $60 million in a massive expansion, which would have made it the largest cryptocurrency mining operation in North America.

Virginia Beach municipal spokeswoman Julie Hill said that the city will now consider filing a claim in bankruptcy court in an attempt to recoup some of the money it paid out to the mining company. Virginia Beachwould be considered an unsecured creditor, which means that its claim will only be addressed once all the secured claims are dealt with.

Cointelegraph previously reported that the Federal Bureau of Investigation (FBI) is investigating whether a student at the University of Michigan attempted to hack West Virginias voting app.

West Virginias Secretary of State, Mac Warner, alerted the FBI during an unsuccessful attempt to gain unauthorized access to the Voatz voting app and said that the activity of the attempt came from IP addresses linked to the University of Michigan.

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Virginia Bitcoin Mining Operation Ordered to Liquidate Assets - Cointelegraph

BTCUSD Breaks Below Key Support As Bitcoin Remains on Offer – InvestingCube

The price of Bitcoin (BTCUSD) has broken below the 8289 key price level, after flirting around it for several days. Intraday bias continues to remain bearish on the lack of bullish triggers, after the pair has traded in a tight range throughout the week.

The price activity is seen extending lower in a gradual fashion, contained within the confines of a down channel. Despite the drop, volatility on Bitcoin continues to remain low.

Price is currently trading at 7938. BTCUSD is gradually dipping towards the near-term support seen at 7707, which is where price candles formed lows on May 26, June 30 and October 7. This area is therefore going to be the immediate support to the downtrending price action.

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Price needs to break below 7707 to open the door for further descent towards 6850 (May 12 lows), which is also the 23.6% Fibonacci retracement level. More downward pressure could take price below this area to target 5850, which is the major support before a huge cascade down to 2019 lows.

However, if price holds at 7707 as it has done twice in the last three months, then we may see a bounce which could retest 8289 in a repeat of the price move of Sept 30 and October 10.

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BTCUSD Breaks Below Key Support As Bitcoin Remains on Offer - InvestingCube

10 of the Best Telegram Crypto Channels – Bitcoin News

Telegrams token might have received short shrift from the SEC, but its messaging app has been embraced everywhere by everyone. 300 million users attest to the success of Pavel Durovs end-to-end encrypted platform, which has become a mainstay of the crypto community. On the rare occasions when Telegram experiences an outage, there is a discernible dip in cryptosphere chatter. The rest of the time, crypto Telegram is a hive of activity. Heres a selection of what it has to offer.

Also read: Tax Guide: What Crypto Owners Should Know

In 2018, following a short-lived flirtation with Slack and Discord, the cryptosphere set up camp on Telegram, where its been embedded ever since. If crypto Twitter is for serious discourse, thought leadership and occasional mud-slinging, crypto Telegram is for more ephemeral but no less vital discourse: trading, accessing market data, catching up on industry news and sharing dank memes by the sticker set.

And then theres the token sales of course, for it wouldnt do to forget them. Even in the post-ICO era, the rules of IEO engagement mandate a healthy Telegram following for crypto projects. Their Telegram channels serve as a focal point for updating the community on projects, token sale dates and bounty campaign opportunities.

Token sale monitoring service ICOspeaks has assembled a shortlist of the most popular Telegram crypto channels. It includes a selection of leading cryptocurrency news and exchange feeds, in English and Russian. To that list can be added the following channels which provide a snapshot of what crypto Telegram has to offer.

A lot of the prominent Telegram channels have ICO in their name as a hangover from 2018, despite their content being far broader these days. ICO Drops is a case in point. It still covers token sales, but its most valuable content touches upon general industry news: Bakkt; custodial solutions; SEC enforcement. Its accompanying infographics provide a tl;dr for those who dont have the time to read full articles.

ICO Analytics falls into the same boat as ICO Drops, but its not just another clone: the quality of this channels research speaks for itself. If youre looking for figures on token sale ROIs, exchange token performance and other metrics, youll find it here, neatly packaged into bar graphs and charts.

One for the swing traders, Cointrendz provides a steady stream of updates on which cryptocurrencies are breaking out. Or pumping, as its better known. If your strategy involves following the volume and skimming what you can off the top, Cointrendz has got you covered. Cryptonomia does a similar job.

Its a given that youve got to shill your own channel in a round-up of this nature, so heres ours. A stream of all the articles that get published on news.Bitcoin.com. Click em if you like the look of the preview snippet. If you dont, dont. For pure Bitcoin Cash news, meanwhile, the unaffiliated and aptly named Bitcoin Cash News will hit the spot, while Spanish speakers should check out Crypto Noticias.

All of the channels up until now have been read only, which is fine for absorbing information, but when you want to interact you need to hit up a discussion channel thats open to anyone. Theres a plethora of candidates to choose from, but for focus and flow (some channels are so popular they move too fast), The Crypto Room gets it about right.

Its not just the people that make crypto Telegram so essential: its also the bots the benevolent ones at least. Telegram bots can perform a host of useful functions, from displaying wallet balances to providing price alerts and facilitating crypto swaps directly within the app. Always perform due diligence on the team behind a Telegram bot before admitting it to your channel, though, just in case its doing more than passively responding to your commands. Popular bots and automated services include Tokenstats, @Cryptowhalebot, @tracktxbot, @Cryptocurrencyalertingbot, and @buttonwalletbot.

Everyones got their favorite crypto chart reader, a guru who appears to have the ability to sift through the tea leaves on Tradingview and predict where the markets headed. Yours probably isnt Botje11, but hes a good example of what Telegram chart diviners do: provide solid analysis, couched in just enough disclaimers to retain their credibility whatever way the needle moves next.

The research arm of the worlds largest cryptocurrency exchange is arguably one of its strongest divisions. Binance Research is right up there with Bitmex Research and Coinmetrics for the quality of its original reporting, and its Telegram channel is filled with deep dives and fun factoids.

The anti-trading channel, Rekt Plebs will teach you what not to do. In short, dont buy shitcoins.

What are your favorite crypto Telegram channels? Let us know in the comments section below.

Disclaimer: This article is for informational purposes only. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Images courtesy of Shutterstock.

Did you know you can verify any unconfirmed Bitcoin transaction with our Bitcoin Block Explorer tool? Simply complete a Bitcoin address search to view it on the blockchain. Plus, visit our Bitcoin Charts to see whats happening in the industry.

Kai's been manipulating words for a living since 2009 and bought his first bitcoin at $12. It's long gone. He's previously written whitepapers for blockchain startups and is especially interested in P2P exchanges and DNMs.

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10 of the Best Telegram Crypto Channels - Bitcoin News

This Cryptocurrency Just Surpassed Bitcoin In One Key Adoption Metric – Forbes

(Photo by S3studio/Getty Images)

Throughout the history of cryptocurrencies, altcoins have had a lot of trouble competing with Bitcoin, which is basically the gold standard of the market. In terms of everything from network effects to brand recognition, there is still simply no real threat to Bitcoin's position at this time.

That said, Ethereum briefly passed Bitcoin in one key area last week: total daily USD-denominated transaction fees. In fact, Ethereum miners collected more in fees than Bitcoin miners on this past Saturday and Sunday too, according to Coin Metrics.

Additionally, while it's been a rough September for the Bitcoin price, Ether is in the green (just barely) this month, and the cryptocurrency recently enjoyed one of its best 24-hour Bitcoin-denominated price moves ever recorded.

Increased Usage Means Higher Fees

In cryptocurrency networks, transaction throughput is limited in order to preserve decentralization. If the network is processing too many transactions per second, the users' ability to run their own full nodes and check that no one is cheating will be harmed. Since the whole point of using a public blockchain is to gain properties like censorship resistance and trust minimization, avoiding centralization is key.

Due to the limitations placed on capacity, cryptocurrencies like Bitcoin and Ethereum see higher transaction fees when the networks become congested. This is exactly what has happend with Ethereum over the past month, as total daily USD-denominated transaction fees hit levels not seen in over a year.

So, what has caused the recent spike in Ethereum transaction fees? It appears the blame can be placed on a Ponzi scheme-esque game called FairWin, which also has a critical vulnerability in its associated contract on the Ethereum blockchain. According to ETH Gas Station, FairWin has recently accounted for roughly a third of the activity on the entire Ethereum network.

The spike in FairWin's popularity, according to Etherscan, correlates almost perfectly with the increase in total fees seen on the Ethereum network this month, according to Coin Metrics.

Total USD-denominated transaction fees per day for the Bitcoin and Ethereum networks.

What Does This Mean for Ethereum's Future?

The total value of all the transaction fees paid on a cryptocurrency network every day is a key metric to watch because it illustrates the level of demand for that particular blockchain. If people are willing to pay relatively high fees to use a particular blockchain, they must be getting some sort of utility out of it.

Additionally, fees are intended to eventually replace the creation of new Bitcoin as the incentive for miners to secure the network. Things will likely work differently for Ethereum, as the Ether token is expected to be issued on a perpetual basis, which means a never-ending block subsidy. This is effectively a trade-off of dilution of the current Ether supply in exchange for a higher level of network security.

In terms of their possible effect on the Ether price, it's unclear if fees are an important metric to watch. While total fees can be a useful indicator of the amount of real activity on a cryptocurrency network and provide a greater incentive for miners or stakers to secure the network, this data point doesn't necessarily have much to do with the native token of the network.

This point is especially true when it comes to Ethereum, as that blockchain is often used to issue and transfer non-native tokens.

At the end of the day, it does not seem clear that a popular Ponzi scheme game or the movement of something like Tether USD means people should be buying and holding Ether over the long term. And as Castle Island Ventures Partner Nic Carter recently explained, a cryptocurrency increases in value when users decide to hold the asset for long periods of time rather than utilize it as a sort of appcoin.

It is perhaps the market's realization of this point that was behind Ether's 85% drop against Bitcoin since the peak of the hype around the altcoin becoming the largest cryptocurrency (measured by market cap) back in June 2017.

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This Cryptocurrency Just Surpassed Bitcoin In One Key Adoption Metric - Forbes

Latest Bitcoin price and analysis (BTC to USD) – Yahoo Finance

At the time of writing, Bitcoin (BTC) is trading at just below $7,800 after losing about 22% in value since last week, when BTC was trading above $9,900. However, in the last 24 hours Bitcoin lost less than 4%, meaning price is already recovering.

BTC experienced a substantial pump earlier in the month which saw its price jump from $10,000 to a peak of around $10,900. Price quickly retraced to around $10,200 and has now dropped below the psychological $10,000 level once more.

Following a number of lower highs, Bitcoin now seems to be in a short-term downtrend, with price dropping below its 200-day EMA.

Will price recover back to $10,000 and above? If so, when?

Lets take a look at Bitcoins chart.

BTC chart, by Trading View

As you can see from the chart above, BTC is now back to trading between its 20-day EMA, 50-day EMA and 200-day EMA. Price was swinging between the 20-day and the 50-day EMA during most of the month, however, last week saw the price finally closed below all EMAs.

Last week, I stated Bitcoin should be bouncing back after the drop but we might have to wait for a few more weeks while Bitcoin consolidates between $7,000 and $9,600.

BTC is prone to huge drops between 30% and 40%, even during bull seasons, meaning we shouldnt expect the market to suddenly enter a long-term bearish momentum. I dont advise to fight the trend, but to always surf it for as long as possible. Hopefully, within the next three to five weeks, we will see a major reversal after a period of serious accumulation by hodlers.

Volume has dropped from a peak of $27 billion earlier in the year to around $14 billion now, although its currently on a positive trend towards $15 billion.

Bitcoins market dominance has also decreased slightly from 70% to 68,5%, according to CoinMarketCap.

As veteran traders and investors usually say, smart money buys when theres blood on the streets. Looking at the overall market behaviour, Im quite confident that were still in a bull run, but we should enjoy these consolidation periods and take the opportunity to scoop up some more BTC. These drops wont last forever.

The reason why Im confident is because its hard to see a different scenario. How can the markets not push higher up throughout the year after the ECBs recent rate cuts, the continuous share buybacks from huge corporations, or the inverted bond yield shoving investors away towards riskier assets?

Safe trades!

Current live Bitcoin pricing information and interactive charts are available on our site 24 hours a day. The ticker bar at the bottom of every page on our site has the latest Bitcoin price. Pricing is also available in a range of different currency equivalents:

US Dollar BTCtoUSD

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In August 2008, the domain name bitcoin.orgwas registered. On 31st October 2008, a paper was published called Bitcoin: A Peer-to-Peer Electronic Cash System. This was authored by Satoshi Nakamoto, the inventor of Bitcoin. To date, no one knows who this person, or people, are.

The paper outlined a method of using a P2P network for electronic transactions without relying on trust. On 3rd January 2009, the Bitcoin network came into existence. Nakamoto mined block number 0 (or the genesis block), which had a reward of 50 Bitcoins.

If you want to find out more information about Bitcoin or cryptocurrencies in general, then use the search box at the top of this page. Heres an article to get you started.

As with any investment, it pays to do some homework before you part with your money. The prices of cryptocurrencies are volatile and go up and down quickly. This page is not recommending a particular currency or whether you should invest or not.

Disclaimer: The views and opinions expressed by the author should not be considered as financial advice.

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Latest Bitcoin price and analysis (BTC to USD) - Yahoo Finance

Bitcoin Giants Coinbase, Circle, Kraken, Bittrex, Grayscale And Others Band Together To Rate Tokens – Forbes

Bitcoin and cryptocurrency companies have been struggling in recent years against vague regulation and characterization of cryptocurrencies.

Wild swings in bitcoin and cryptocurrency prices, which soared throughout 2017 only to crash back down to earth last year, meant regulators around the world scrambled to protect potential bitcoin buyers but questions remain around whether digital tokens are securitiesleaving crypto companies uncertain about how future legislation will affect them.

Now, bitcoin trading and investment giants Anchorage, Bittrex, Circle, Coinbase, DRW Cumberland, Genesis, Grayscale, and Kraken have banded together to create the Crypto Rating Council in order to better decide which digital assets can and cannot be traded on their platforms.

Bitcoin and cryptocurrency companies remain unsure how future reglation will affect them.

The group have created what they call a "scalable, points-based rating system" to help define whether a cryptocurrency is or is not a security.

The system will use a set of several dozen questions, "derived directly from SEC guidance and case law."

"We also worked hard to focus our framework on objective, repeatable, fact-driven questions that can be answered consistently by technical experts across different assets and over time," Coinbase wrote in a blog post announcing the council.

"The result of the analysis is a score which makes it easy for members to synthesize the analysis across many tokens and make their own, independent business decisions about whether or how to support an asset."

The system will give bitcoin and similar digital tokens a score between one and five, with a score of one meaning the councils independent analysis suggests the asset has few or no characteristics consistent with a traditional regulated security.

"We expect that some ratings will change over time and we will accept and consider feedback from asset issuers when they want to share additional information or clarifications that may impact an assets rating," the group added.

The bitcoin price has rallied so far this year but remains far under its all-time high set in late ... [+] 2017.

Bitcoin, along with its major rivals litecoin and monero, have been awarded a rating of one, while ethereum, the world's second biggest cryptocurrency by value, has been given a rating of two.

Ripple's XRP, one of the most divisive digital tokens, has been given a rating of four.

The group is planning to add more members and assets in "coming months," and may develop similar tools for non-U.S. jurisdictions.


Bitcoin Giants Coinbase, Circle, Kraken, Bittrex, Grayscale And Others Band Together To Rate Tokens - Forbes