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Bitcoin Could Be the Next Big Inflation Hedge – Cointelegraph

As reports hit the United Kingdom in mid-June warning that inflation rates had fallen to a four-year low, high-profile fund managers were conversely worrying that the COVID-19 stimulus from governments and central banks would ultimately drive up prices.

In a recent market outlook note, famed hedge fund investor Paul Tudor Jones warned that:

We are witnessing the great monetary inflation an unprecedented expansion of every form of money unlike anything the developed world has ever seen. High debt accommodated by money printing is difficult to banish. Inflation expectations could one day respond to this reality.

Crispin Odey, the London-based founder of Odey Asset Management, also agrees inflation is ultimately unavoidable given the level of stimulus. In the short term, the money will be made on the inflation bet, Odey wrote in a recent letter. With potential inflation seemingly on the horizon, investors are looking out for the next big hedge in order to protect assets during the nascent economic crisis.

Jones, for one, has decided a way forward is to invest his fund, Tudor Investment Corporation, into Bitcoin (BTC). If I am forced to forecast, my bet is it will be Bitcoin, commented Jones in the same letter to investors. Bitcoin reminds me of gold when I first got into the business in 1976.

After the United States Federal Reserve indicated on June 10 that interest rates will remain near 0% until 2022, Bitcoin saw a short-lived run past $10,000, gaining 1.6% over 24 hours before dropping back.

Institutional investment managers have been increasingly interested in all things crypto over the past couple of years, and their interest keeps rising. A recent Fidelity report shows that in a survey of almost 800 institutional investors across the U.S. and Europe, 45% of firms in Europe say they hold crypto assets. Fidelity goes on to report:

The survey revealed higher penetration with crypto hedge and venture funds, as expected, but also the financial advisor, high net worth individual and family office segments.

Consumers are also showing increased signs of interest, with the U.K.s Financial Conduct Authority reporting that an estimated 2.6 million people have bought crypto assets at some point, nearly double the number reported last year.

Investors across the board can take advantage of these same trends and realize the benefits of hedging against inflation via Bitcoin. But accessing crypto markets can be extremely convoluted at times, with crypto exchanges charging users hefty fees for the privilege. Yet over the past couple of years, there has been somewhat of a maturing of crypto markets. Now, more consumer-friendly, easy-to-use platforms have been set up, providing immediate and safe access to best-price crypto. Users of these platforms can benefit by instantaneously and effortlessly exchanging their money into digital currencies at competitive prices and monitoring their balances in real time.

Through these unprecedented times as economies around the world adjust to dealing with a pandemic, investors across the globe are having to readjust their positions. Using Bitcoin to hedge against potential inflation is not solely in the realm of the Joneses and Odeys of this world, however. New technology platforms are making it much easier for U.K residents to similarly safeguard their assets by combining currencies into one account, helping to make cryptocurrencies more readily available.

The best profit-maximizing strategy is to own the fastest horse, Jones said in his Great Monetary Inflation note. He clearly believes that Bitcoin is the one to back.

The views, thoughts and opinions expressed here are the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Mark Hipperson is the founder and CEO of Ziglu, a cryptocurrency trading platform. Previously, he co-founded Starling Bank, where he was responsible for helping to secure the U.K. banking license with regulators and obtaining the initial $70 million funding. He was also responsible for the design, build, implementation and support of the banks IT services platform, apps and infrastructure. Mark started his career at Barclays where he was deputy chief technology officer and head of technology for the Barclays Group.

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Bitcoin Could Be the Next Big Inflation Hedge - Cointelegraph

Bitcoin Price Predictions by Top Analysts Are Usually Wrong Heres Why – Cointelegraph

Since Bitcoin (BTC) price rallied above $19,000 in 2017, crypto analysts have issued an amazingly wide range of price predictions on the date and value of the next all-time high or low.

Sometimes these predictions are rooted in deep fundamental and technical analysis, whereas other times they are simply nothing more than off-the-cuff estimates issued at whim.

Options markets provide useful insights into traders' expectations, including mathematical probabilities for an asset's future prices. Using Black & Scholes model allows one to better assess the likelihood of analysts' estimates.

The Black & Scholes valuation algorithm has been the basis for the pricing of options on traditional assets since the early 1970s, and remains widely used.

Although the Black & Scholes option pricing model tends to underestimate the odds of substantial movements, it does provide precise and conservative estimates.

Similar to weather forecasting, adding more than a couple of days to an estimate reduces its precision by a logarithmic proportion. One must also consider that the model has to predict a binary outcome because a $9,500 option will be deemed worthless if the expiry price is $9,499.

Many analysts tend to exaggerate their estimates to make a bold statement and attract media attention, or their predictions are based on various types of bias.

No one expects gold bugs like Peter Schiff to draw a bullish Bitcoin estimate, and the same can be said for expecting a bearish prediction from Stock-to-Flow model author PlanB.

The question investors should be asking is exactly how far off were those estimates compared to Bitcoin options pricing? Furthermore, should one even consider these analysts and pundits opinions?

Although the Black & Scholes options pricing model can be complicated, it's usage is pretty straight forward. By informing the current BTC price, strike level, days until expiry, and annual volatility, the model will instantly provide the odds above and below a specific price.

Skipping the complex calculations, one can refer to Skew Analytics to find current probabilities for each expiry based on options pricing.

Bitcoin probability at options maturity. Source: Deribit

Most active option strikes expire on the last Friday of every month. As previously explained, those figures will seem conservative. Both August and September strikes signify a mere 50% probability that Bitcoin price will remain above $9,000.

A 50% odd should is effectively neutral, as the mathematical model states that odds above and below such target are pretty much the same.

By contrast, the probability for a $8,500 on the July expiry (just two weeks from now) sits at 76%. The model becomes more confident as we approach maturity, so one should not expect options to price 90% plus odds for contracts with more than two weeks left.

To assert whether analysts and pundits' predictions fare better than options markets pricing, one needs to stack those odds against the Black & Scholes options model, which requires four basic inputs: current price, strike (prediction), days until expiry, and implied volatility.

Bitcoin price and pundits predictions. Source: TradingView

The above chart depicts six predictions over a 100 day period, which will be individually tested against the options markets model.

Despite having said numerous times that he isn't an active trader, Binance founder Changpeng Zhao often likes to publicize his predictions. In early November, CZ declared that BTC would hit $16K 'soonish,' so one should assume four months.

CZ missed the mark by 35% as Bitcoin failed to break $10,500 level within four months. This was not a lousy call, but rather way too optimistic as indicated by the Black & Scholes model.

Analyst Willy Woo reflected on the previous year cycle low of $3,100 and estimated that Bitcoin could drop 71% from its $12,800 high, reaching $4,500 before the next halving. It seemed rather unlikely at the time, but a six-month timeframe in cryptocurrency is a very long time.

Hats off to Willy Woo on this call as the March 13 infamous crash caused a brief test of the $4,000 level. Despite being correct, buying protection for such a long time frame costs substantial money. A $6K put option would have cost Woo $540 back then.

Notorious Bitcoin basher Peter Schiff spotted a head and shoulders pattern and issued a $1,000 prediction. Although no timeframe was set, based on such a pattern, a three-month time frame seems reasonable.

One doesn't need to be a statistician to deem such predictions as unreasonable. According to the options model, a $5,000 target back would still have shown a limited 10.7% probability.

Peter could have remained bearish using a more reasonable goal, according to options markets at that time.

The 40-year market stalwart said that BTC had already hit its floor; hence investors waiting for a price dip to $6,000 have "missed" their opportunity. No timeline was mentioned, although a 3-month prediction would have pleased most investors.

Less than two months after that tweet, the sudden Bitcoin collapse on March 13 proved Peter Brandt's prediction wrong.

In an interview with Yahoo! Finance, Fundstrat senior analyst Tom Lee suggested that Bitcoin's technical achievements paved the way for 200% gains within six months, with halving acting as a catalyst.

With less than 20 days to fulfill such a prediction, it seems very unlikely to occur. At least buying a $23K call option would have cost $65, a bargain considering a $4,000 upside to Lee's target.

The creator of the stock-to-flow model revealed his belief that Bitcoin would not return below $8,200. PlanB also mentioned that he was expecting levels above $10,000 near Bitcoin halving in May.

Less than a month later, PlanB's $8,200 support level was broken, although his $10,000 prediction for halving was pretty close as it was off by only 3% to 5%.

One might say PlanB got it 50% right, although the bold $10,000 prediction could have earned him good money using a butterfly spread strategy.

Black & Scholes can be a useful tool to understand how far a prediction might be from options pricing. Whats clear is that pundits seem to exaggerate their takes, which leads to huge misses and misinformation in the form of bad analysis being spread through major media outlets.

In some cases, the wild guesses do hit the mark. For example, Willy Woo and PlanB could certainly have profited by defying options model pricing, but generally it's better to do your own research instead of following calls from leading analysts.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

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Bitcoin Price Predictions by Top Analysts Are Usually Wrong Heres Why - Cointelegraph

Velas Enters the Top 100 Coinmarketcap and Launches on Bitcoin.Com Exchange | Press release – Bitcoin News

The blockchain network that is self-learning and self-optimizing and claims to be able to deliver up to 30,000 transactions per second with a speed of anywhere from 1 second to 2 minutes. Velas is a blockchain ecosystem that implements an AI-powered Delegated Proof-of-Stake (AIDPOS) consensus mechanism for dramatically improved scalability, high security, and interoperability.

We are excited to announce the listing of Velas (VLX) for Bitcoin.com Exchange users. Deposits and trading are enabled, and the BTC-VLX and USDT-VLX markets will be open for trading on Tuesday, July 14th. The high profile listing comes at just the time Velas coin is soaring up the Coinmarketcap Top 100 coins.

What is Velas?

Velas Network AG was founded in 2019 in Switzerland by Alex Alexandrov, the CEO of CoinPayments. Velas is a self-learning and self-optimizing blockchain platform for secure, interoperable, extremely scalable transactions, and smart contracts. The Velas blockchain uses neural networks optimized by artificial intelligence to enhance its consensus algorithm, which maintains decentralization, stability, and security.

What is the concept of Velas?

The Velas blockchain allows for the creation of public and private containers for all coins supported. These containers will allow for the creation of an on-chain/off-chain scalability solution for all other coins as needed and serve as one ecosystem wallet for all Velas smart contracts.

Unparalleled durability and increased tolerance mean that the Velas blockchain is unique within the field of distributed ledger technology, opening up a new era in e-commerce and the global economy.

How does it work?

Velas utilizes a unique, innovative consensus mechanism a so-called Artificial Intuition Delegated Proof of Stake (AIDPOS). The AIDPOS framework sits at the core of the Velas blockchain, insofar that it is supported by a theoretical process called Artificial Intuition. Meaning that the above-mentioned technology seeks to collect, identify, and assess patterns and/or relationships across all data sets that go in and through the network. This process results in an ultra-efficient blockchain operation.

The company claims that it can deliver up to 30,000 transactions per second by only creating blocks when they are needed, while at the same time keeping the network safe from the threats and malicious activity. This amounts to a block per/second speed of anywhere from 1 second to 2 minutes.

What is the function of its coin?

The Velas blockchain has its own cryptocurrency, the Velas coin (VLX). It is used to fuel the Velas blockchain network, it is necessary for smart contracts and also being used for transactions.

What pairs can you trade?

VLX/BTCVLX/USDT

To celebrate the launch of our new coin listing, enjoy fee-free trading* on all Velas pairs for a limited time only.

What pairs are included in the fee-free trading promotion?

VLX/BTCVLX/USDT

How long can you trade Velas markets fee-free?

The Velas (VLX) fee-free trading will last the first two days from listing time.

Start date: Monday, July 20th, 2020 3:00 pm UTCEnd date: Wednesday, July 22th, 2020 3:00 pm UTC

*Promotional VLX fees 0% Maker fee and 0.01% Taker fee during the promotional period only

This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not 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 the press release.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. 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.

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Velas Enters the Top 100 Coinmarketcap and Launches on Bitcoin.Com Exchange | Press release - Bitcoin News

Pros and Cons of Cryptocurrencies: Ripple and Bitcoin – Global Trade Magazine

Lots of people have run down bitcoin, and many have claimed that cryptocurrency has had its day, but bitcoin is still here, and so are many types of cryptocurrency. Perhaps Ripple hasnt set the world on fire, but then maybe that is the way it is supposed to be. Perhaps cryptocurrencies like Ripple are supposed to start at the very bottom and then work their way up over decades. Bitcoin had to struggle from the bottom, and it is now the most respected and most valuable cryptocurrency in the world. Here are the pros and cons of bitcoin and Ripple.

There are plenty of upsides to bitcoin, and it is especially pleasing to see that bitcoin is still riding high when so many online gurus claimed that it would be made extinct by Ethereum.

BTC is Popular and Understood

The thing about bitcoin is that it is now very popular and people understand how it works. This is contrary to most other Cryptocurrencies where people need to be taught what they are, what they do, and why they are special.

Bitcoin is Trusted

The whole notion of cryptocurrency may still be daunting to some people, but the name bitcoin is the most trusted in the entire cryptocurrency market. Even other well-known Cryptocurrencies are not as well-liked or trusted.

BTC is Fairly Stable

We have all see the big rises and big dips, but bitcoin has staying power and seems to have a natural price and value growth. It may well end up becoming a widely accepted currency in the future.

Five years ago, one could have said there were many downsides to bitcoin, but these days with the acceptance of cryptocurrency as a form of payment and money transfer, there are only really two downsides to bitcoin.

Quantum Computing Would End all Cryptocurrency

If a technology company were to invent quantum computing, then bitcoin mining could be done at very fast speeds, which would make bitcoin and all cryptocurrency useless. However, Quantum computing is a long way off yet, especially when you consider that we have only just discovered the 3D chip.

Bitcoin is Expensive

Although the cost of bitcoin is an issue, it is not really a problem. You can buy a portion of a bitcoin and use it to transfer money and buy things. Nevertheless, as an investor looking to make a profit, the cost is a problem for small investors.

The price of ripple has seen massive surges and massive drops, yet there is still a fair amount of trading going on, so do not rule out Ripple just yet.

XPR is Affordable

The cost of Ripple is tiny, especially when compared and other Cryptocurrencies like bitcoin and Ethereum.

It Solves the Cross-Border Problem

Just like bitcoin, you can use Ripple to quickly transfer money overseas and back again, and it will not cost you a fortune to do so.

Very Fast Settlements

The pre-mined nature of XRP goes a long way to helping ensure that transactions are settled quickly. They can run at 1000 settled transactions per second, which is a brilliant speed.

XRP has its downsides too. The mainstream appeal of Ripple is a big selling point, but will these downsides convince you to invest in another coin?

It is More of an Investors Coin

This is the sort of coin you may invest in if you want to make money in the short and long term, which may eventually be its downfall because investments come and go.

Its Rival SWIFT is the Worlds Largest RPS Network

The problem with investment coins is that their real-world use is often limited. Where SWIFT and OMG are used daily for currency moving transactions by payment processors, XRP is less utilized in the real world.

The Founders Own Too Much of the Coin

Ripple is pre-mined, which is why and how the owners are able to own over one-third of the entire stock of Ripple. This runs contrary to a decentralized theme, especially since the owners could sell off their share at any time and irreparably destroy the value of the coin.

___________________________________________________________________

James Miller is a career expert from Medellin. He is passionate about career success stories, surfing, and photography. Also, James writes to his own blog SimplicityResume about career success and about job industry insights.

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Pros and Cons of Cryptocurrencies: Ripple and Bitcoin - Global Trade Magazine

Bitcoin and other cryptocurrencies are about to go mainstream Jim Duffy – The Scotsman

NewsOpinionColumnistsUsually the preserve of nerds and geeks, cryptocurrencies are now attracting interest from governments and major corporations, writes Jim Duffy

Thursday, 23rd July 2020, 4:45 pm

Studying sociology was a complete and utter waste of time, according my old shift sergeant in the polis. He was real stickler for tradition and crossing Ts and dotting Is. He wasnt a fan of those cops who entered the service with degrees and wanted to get into cushy department jobs as quickly as possible to get off shiftwork and off the street.

And of course, I was doing a second degree in thats right sociology. Well, to be fair, it was socio-economics and socio-linguistics, so it had some function. But not to him. Hey Duffy, tell us all wit a sub-culture really is. To his amusement and that of his fellow sergeants, I really had no clue. But I do now.

Right under our very noses, there is a sub-culture growing and bubbling away. I am part of it so I can relate to it. There are a whole grouping in Scottish society also part of this sub-culture too. It has meaning. It has interest. And it has the potential to make them millionaires. And that is the dangerous part of this particular sub-culture. Its called crypto, but you may simply know it as Bitcoin.

It didnt dawn on me that I was part of this sub-culture until I was watching a live-stream video from the CEO of one of the big cryptocurrencies. As I watched and listened, my attention was drawn to the scrolling comments sidebar.

Usually I ignore this fast-moving and irrelevant verbiage as it involves a lot of hype and fans love for the host of the webinar. Lots of to the moon and pictures and emojis or rockets and dollar signs. But, to my amazement up popped a well-known Scottish name telling the presenter that he loved him.

I felt a bit sick to be honest. It was all a bit sycophantic. But, it stopped me in my tracks as both he and me were part of the same sub-culture.

Like all sub-cultures, theres usually something deviant or subversive. In sociological terms, these are not as harsh as they appear. In short, it just means that they have different views from the norm and are usually grouped together, while communicating together in forums, chatrooms or less accessible platforms. Do I feel deviant? Yes, most certainly as the crypto geeks or movement has been sidelined for such a long time.

In 2018, the crypto scene burst into life reaching all-time highs. But, the gains made by investors and speculators fizzled out. And from that time, it has had to lick its wounds in a very bearish market place.

Nevertheless, it has moved on and while we all got back to ISAs, bonds, building society accounts and premium bonds, the crypto sub-culture has been busily beavering away. Actually developing software and infrastructure that could make a difference to our lives. And the lives of those in developing countries.

We are a group of nerds who have our own FTSE 100-style list of top crypto companies. We have exchanges where we can buy and sell and trade this crypto as it moves up and down just a regular market place. New companies come to the fore, while others mature and create value. We have an array of You-Tube influencers, who put out entertaining videos each day. We have tweets galore where folks chat on this coin or that coin. And so it goes on. But, while this sub-culture keeps busy and we dont shout from the rooftops about it, there is big change coming. And Im not happy.

Part of being part of a sub-culture is that feeling of being in it together. We are not quite accepted. Governments are wary of crypto. Banks have been sceptical and dismissive of this part of finance that undermines them and worries them at the same time. Big institutional investors want to stake their cash on trusted five-star funds, not crypto decentralised finance. And credit card providers and the likes of PayPal dont want involved with this sub-culture.

Until recently, that is... Now they are now all over it and my sub-culture will move from exactly that into mainstream. Yuck.

As I said, crypto has come along way. And with that progress, comes adoption and acceptance into new financial networks. Mastercard, PayPal and governments are now creating the policy plumbing for crypto to enter your lives.

Some of the magic will go

While my dirty little secret loses it sex appeal and moves out and upwards. Soon, you will be able to invest in companies you may have never heard of, but that are actually pretty big already.

Names such as Cardano, Reserve, VeChain and, of course, Bitcoin will at some point be offered by financial advisors within regulated funds. Disclaimer I invest in these. And here all the fun stops for me.

Sure, my sub-culture buddies stand to make some huge returns on their bags of crypto when it all goes mainstream. And the Lambo garages might be busy. But, I feel a little sadness or mixed feelings really. Yes, Im glad that the confidence we all had in crypto has been proven right and the geeks, nerds and hodlers, yes you read that right, will make a few bob. However, the genie will be out the sub-culture bottle and it will lose some of its magic as it moves to the high street.

So, if my old sergeant wants to know now what a sub-culture is, I can prattle on for a good hour on its genesis, hopes and fears, systems and processes, communication apparatus and a whole lot more. But, within 12 months, it will be gone and a new one will take its place.

Now thats something to look forward to

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Bitcoin and other cryptocurrencies are about to go mainstream Jim Duffy - The Scotsman

Bitcoin prices unfazed as major Twitter hijacking ripples through social media and digital currency community – MarketWatch

Bitcoin prices on Wednesday evening were virtually unchanged, even as unknown hackers were perpetuating a massive scam to lure bitcoins away from owners.

Scammers were engaged in a sprawling hack that compromised the Twitter Inc. TWTR, -0.13% accounts of a parade of high-profile individuals and entities, including Tesla Inc.s TSLA, -4.54% CEO Elon Musk and Berkshire Hathaway BRK.A, +0.91% BRK.B, +0.94% billionaire Warren Buffett. Hackers used the accounts to solicit bitcoins from individuals by promising to double the amount sent to a bitcoin wallet address. Former President Barack Obamas Twitter account also was hacking, underscoring the breadth and sophistication of the hacking (see an attached screenshot of the tweet).

Bitcoin BTCUSD, -0.07%, however, was seeing little in the way of significant movement, with the value of the worlds most popular digital currency off 0.4% at $9,209.77, and futures for bitcoin trading on the CME Group were up slightly, around 0.5%, in electronic trade, after the June contract settled at $9,190, according to FactSet data.

In a stated via its platform, Twitter said that it was aware of a security incident on its platform. We are investigating and taking steps to fix it. We will update everyone shortly.

Bitcoin has a long history of hacking by perpetrators looking to abscond with other peoples digital currencies. The cryptographic asset also has a history of individuals hacking bitcoin exchanges.

Last year, popular exchange platform Binance said it discovered that hackers stole 7,000 Bitcoins from a single digital wallet, totaling some $40 million, according to a report from the Wall Street Journal.

Hacks have been a primary reason that many have been circumspect about the future of the cryptocurrency, which introduced the world to blockchain technology. According to WSJ, more than $1.7 billion in bitcoin has been publicly reported stolen, since the inception of the coin back in 2009, including the historic Mt. Gox hack.

It isnt clear if any coins have been lost in this episode, but some have speculated that the perpetrator of this Twitter attack may have gotten some $100,000 in coins sent to their account.

Meanwhile, other cryptos that also tout the blockchain ledger technology, the signature element of bitcoins, also were seeing little price movement.

Prices of Ether, the currency that runs atop the Ethereum ETHUSD, -0.31% platform, were off 1% at $238.07, those for XRP XRPUSD, +0.32%, the currency pegged to Ripple, were down 0.5%, trading at 19.7 cents.

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Bitcoin prices unfazed as major Twitter hijacking ripples through social media and digital currency community - MarketWatch

$10.9 Billion Bitcoin Stash Proves Satoshi Is Still the Biggest Whale – Cointelegraph

A recent report by blockchain tracking and analytics provider, Whale Alert, revealed that the miner known as Patoshi mined over $10.9 billion or 1,125,150 BTC during Bitcoins infancy in order to protect the network from a 51% attack.

Patoshi has been confirmed to be the anonymous Bitcoin creator known as Satoshi and the early blocks mined by Patoshi also include the first BTC transaction to Hall Finney, a well known developer and early Bitcoin contributor.

Whale Alert was able to come to this conclusion by reviewing previous research conducted by independent researcher and cryptographer Sergio Lerner. Lerner coined the term Patoshi miner back when a cryptographic pattern that revealed most of the early Bitcoin mining was done by one individual with access to modified mining software.

The Patoshi Pattern. Source: Whale Alert

In the chart above, the Patoshi pattern is visualized and it reveals that the straight lines are using the standard Bitcoin mining software and the saw-like lines are attributed to Patoshi.

This same pattern allowed Whale Alert to discover that the Patoshi miner adjusted its speed between blocks in order to keep the average block time at 0.6 blocks per 10 minutes.

Based on the patterns left by the miner on some of the code that is stored in each Bitcoin block, Whale Alert also concluded that this early Bitcoin mining operation was composed of up to 48 computers and one of them was responsible for coordination.

According to Whale Alert, there are two reasons for adjusting the speed, to either keep the block time near the 10 minute mark or to protect the network from a 51% attack.

Satoshi kept his share of the hashrate at a steady 60% as the network grew and a 51% attack was a major threat for Bitcoin at that time, as it has been for newer cryptocurrencies in recent times.

It seems likely that Satoshi was trying to protect the Bitcoin network but as it became less prone to malicious attacks he reduced Patoshis block creation rate to 1 block per 10 minutes.

Blocks mined per 10 minutes per Patoshi chain. Source: Whale Alert

Many analysts believe Satoshi stopped mining at block 54,316 once he deemed the network sufficiently decentralized. However, there have been some irregularities in later blocks that span up until May 2010 or block 112,500, but currently these cannot be confirmed as Patoshi or Satoshi.

The actions of the Patoshi miner appear to be meticulously calculated and geared towards the protection of the network as the global Bitcoin hashrate increased and mining picked up. It seems unlikely that this same entity would want to sell some of the Bitcoin supply and this would have a deteriorating effect for the BTC network. Whale Alert concludes as much by saying:

The timing of the shutdown, the mining behavior, the systematic decrease in mining speed and the lack of spending strongly suggest that Satoshi was only interested in growing and protecting the young network. The bitcoin mined by Patoshi were possibly a mere byproduct of these efforts and it is unlikely that the remainder will ever be spent, although the question remains why Satoshi didnt simply burn them in this case.

According to an early Bitcoin developer, Satoshi feared a 51% attack so much that he even had a GPU ready to defend the network, although it was not used to keep mining somewhat balanced.

Lerner also believes that the Patoshi miners actions were not motivated by financial gain and according to Lerner, Satoshi won't use his coins ever.

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$10.9 Billion Bitcoin Stash Proves Satoshi Is Still the Biggest Whale - Cointelegraph

Twitter hack once again puts a negative spotlight on Bitcoin – CNN

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See the new colors and new features here.","descriptionText":"Bandai America has released a new iteration of its popular pet toy named the Tamagotchi On Wonder Garden. See the new colors and new features here."},{"title":"Trump's attack on Twitter might not mean all that much","duration":"02:56","sourceName":"CNN","sourceLink":"cnn.com/business","videoCMSUrl":"/video/data/3.0/video/business/2020/05/29/trump-section-230-js-orig.cnn/index.xml","videoId":"business/2020/05/29/trump-section-230-js-orig.cnn","videoImage":"//cdn.cnn.com/cnnnext/dam/assets/200528165054-04-trump-social-media-executive-order-large-169.jpg","videoUrl":"/videos/business/2020/05/29/trump-section-230-js-orig.cnn/video/playlists/business-tech/","description":"President Trump signed an executive order targeting social media companies, after lashing out at Twitter for labeling two of his tweets "potentially misleading." CNN's Jon Sarlin talks with CNN Tech Reporter Brian Fung about what Trump's executive order really means.","descriptionText":"President Trump signed an executive order targeting social media companies, after lashing out at Twitter for labeling two of his tweets "potentially misleading." CNN's Jon Sarlin talks with CNN Tech Reporter Brian Fung about what Trump's executive order really means."},{"title":"Zoom's founder says he 'let down' customers. 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The rest is here:

Twitter hack once again puts a negative spotlight on Bitcoin - CNN

Bitcoin and Cardanos ADA Weekly Technical Analysis July 20th, 2020 – Yahoo Finance

Bitcoin

Bitcoin fell by 0.95% in the week ending 19th July. Partially reversing a 2.50% gain from the previous week, Bitcoin ended the week at $9,231.2.

It was a bearish start to the week. Bitcoin fell from a Monday intraweek high $9,350 to a Wednesday intraweek low $9,026.6.

Bitcoin fell through the first major support level at $9,095 before finding support in the 2nd half of the week.

3 consecutive days in the green cut the deficit for the week, with Bitcoin recovering to $9,200 levels.

3-days in the red, however, were enough to leave Bitcoin in negative territory for the week.

Bitcoin would need to move back through the $9,200 pivot to bring the first major resistance level at $9,380 into play.

Support from the broader market would be needed for Bitcoin to break back through to $9,300 levels.

Barring an extended crypto rally, the first major resistance level and last weeks high $9,380 would likely cap any upside.

In the event of a breakout, Bitcoin could take a run at $9,500 levels before any pullback. The second major resistance level at $9,526 would likely cap any upside, however.

Failure to move back through the $9,200 pivot would bring support levels into play.

A pullback through to sub-$9,100 levels would bring the first major support level at $9,055 into play.

Barring an extended crypto sell-off, however, Bitcoin should steer clear of the second major support level at $8,879.0. The 23.6% FIB of $8,900 should limit any downside in the week.

At the time of writing, Bitcoin was down by 0.36% to $9,197.9. A mixed start to the week saw Bitcoin rise to an early Monday high $9,238.2 before falling to a low $9,191.2.

Bitcoin left the major support and resistance levels untested at the start of the week.

Cardanos ADA fell by 2.23% in the week ending 19th July. Following a 29.24% rally from the previous week, Cardanos ADA ended the week at $0.12409.

It was a mixed start to the week. Cardanos ADA rose to a Monday intraweek high $0.1369 before ending the day in the red.

Falling short of the first major resistance level at $0.1468, Cardanos ADA slid to a Thursday intraweek low $0.1169.

Steering clear of the first major support level at $0.10116, Cardanos ADA recovered to $0.12 levels to limit the downside.

4-days in the red that included a 3.49% loss on Thursday and 3.01% fall on Friday delivered the weekly loss. A 6.61% rally on Tuesday limited the downside for the week, however.

Cardanos ADA would need to move through the $0.1260 pivot to support a run at the first major resistance level at $0.1350.

Support from the broader market would be needed, however, for Cardanos ADA to break back through to $0.130 levels.

Barring another extended crypto rally, the first major resistance level and last weeks high $0.1369 would likely cap any upside.

In the event of another breakout, the second major resistance level at $0.14596 and $0.15 levels could come into play.

Failure to move through the $0.1260 pivot could see Cardanos ADA see a 2nd consecutive week in the red.

A pullback through to sub-$0.12 levels would bring the first major support level at $0.1150 and 23.6% FIB of $0.1125 into play.

Barring an extended broader-market sell-off, however, Cardanos ADA should steer well clear of sub-$0.010 levels. The second major support level at $0.1060 should limit any downside.

Story continues

At the time of writing, Cardanos ADA was down by 0.92% to $0.12294. A bearish start to the week saw Cardanos ADA fall from an early Monday high $0.12444 to a low $0.12267.

Cardanos ADA left the major support and resistance levels untested at the start of the week.

This article was originally posted on FX Empire

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Bitcoin and Cardanos ADA Weekly Technical Analysis July 20th, 2020 - Yahoo Finance

Uncovering The Money Laundering Attempts Of Bitcoin Fraudsters Behind The Recent Twitter Scam – Forbes

A snap-shot investigation to follow the funds connected with yesterdays Twitter Hack of Jeff Bezos, ... [+] Elon Musk, and several celebrities to review where the fraudsters have transferred the funds into.

Performing an initial investigation to follow the funds related to the Twitter TWTR hack that happened on July 15 to Elon Musk, Jeff Bezos, Barack Obama, Joe Biden, Kanye West, Bill Gates and numerous other celebrities and executives of large technology companies, it is evident the many of those funds already hit reputable exchanges that might freeze the funds.

During the Twitter hack, the fraudsters, posing as celebrities, falsely informed users that they have decided to partner up with a mysterious organization called "CryptoForHealth" in order to 'give back to their community.' The scam has been covered extensively by several news outlets including Forbes contributors like Jasse Damiani, that reviewed the initial steps just after the hack.

As different celebrities were sharing and resharing those posts that turned out to be fraudulent, some of their followers decided to open up their own wallets and pay as well. More than $130,000 later, most of the posts had been removed, the website of CryptoForHealth shut down. Twitter stepped in to forbid some users to tweet, but it is high time to recover the funds to the victims or at least specify to which exchanges they have been sent.

Despite a common misperception as Bitcoin represents a pseudo-anonymous network, transactions performed on it are both visible to the general public and traceable. Addresses can be directly connected to particular exchanges.

As scammers are still moving funds between cryptocurrency wallets, investigators from all over the world have stepped in with the goal to identify types of exchanges and freeze the funds on different accounts.

From the initial review, it is evident that much of the funds have been transferred to Binance. In a recent statement to TechCrunch, Binance Security Team informed that they have been aware of the situation and launched an investigation, which is visible to the crypto community as their team marked several cryptocurrency wallets as fraudulent.

Earlier today, an article released by Cointelegraph revealed that addresses used by the hackers had previously been linked to Coinbase and BitPay, common names in the cryptocurrency exchange and merchant sphere.

According to our initial analysis the funds have reached many exchanges, but the core of the funds originated from the main Binance address. It is now clear that scammers were sending funds back and forth between different cryptocurrency addresses in an attempt to confuse law enforcement agents, wash them. Once completed fraudsters have sent a large parts of the funds to an address belonging to Binance yet again, which has been rather quickly discovered and flagged by the exchange.

Secondary besides Binance, it seems though that multiple exchanges like Bittrex, as well as MercadoBitcoin in Brazil have received funds from this scam already, said Sven Martinsson, the Founder & CEO of VALEGA Chain Analytics - a Blockchain Investigations and analytics firm working out of Finland.

Even though the investigation remains novel, due to the transparency of the open blockchain of Bitcoin, it is possible to follow different transactions to a different account at cryptocurrency exchange platforms. Being personally engaged in one such crypto exchange platform, competent and motivated compliance team members have a portfolio of tools and processes to stop such transactions in case they are being spotted. The fraudsters seem to know that so that there is a race for the fraudsters to try to exchange the funds to fiat currencies as soon as possible and Blockchain investigators to mark as many wallets as quickly as possible to freeze those funds.

Even though the identity of the scammers remains yet unknown, there are tools in place which allow for visualizing transactions between different accounts and exchanges that use the publicly available data and connect wallets to crypto exchanges.

Here are a couple of examples of how the fraudsters anticipated to hide their tracks. Everything starts on the left side in the middle of the graph, which represents the first address to which the scammers asked users to pay. Each additional connected line of dots represents their effort to hide their tracks and mix funds between different wallets and exchanges.

A more comprehensive description has been placed below each picture which represents a print screen out of a Blockchain Analytics Software.

Even though if this initial graph might not be the easiest to read, it represents the initial ... [+] address cryptocurrency address listed on the hacked addresses (red dot at the lower part of the picture on the left side). Once the scammers received the funds they started to distribute the funds to multiple different wallets. (the second line, looking from the left to the right). While receiving those funds scammers have been trying to transfer funds to more and new addresses to try to wash them to possibly exchange them back to FIAT currency. Green dots represent the addresses that already have been flagged as fraud, green represents addresses that have not YET been flagged in the system as of 6:30 PM CET. When expanding a few of those as an example, it is possible to see that a few were sent to an address that had not yet been associated with fraud or suspicious activities.

Zooming in closer to different dots allows us to directly view the cryptocurrency wallet address which has been used. It is connected to a particular wallet provider or a platform (with strong but not utmost certainty). In order to review where funds were directed and how much was sent.

Expanding further, one of the addresses gives an immediate hit on another Binance address (This ... [+] addresses has already been flagged by the exchange as of 6:30 PM CET)

It is visible that scammers used some of the addresses multiple times (the split the funds to ... [+] different addresses and send them to a new address) and not yet all of the wallets have been flagged as fraud.

Investigations performed by compliance teams take time as they are most likely performed by individuals who are working for different exchange platforms or geographies, so sometimes the funds are able to be transferred to an account before they are being flagged as fraudulent. Red accounts have been already marked as fraudulent.

By the time Binance, when this chart has been recorded most certainly the team behind Binance has ... [+] taken the appropriate countermeasures and flagged a Cryptocurrency wallet as Darknet wallet. Before this cryptocurrency wallet has been flagged, unfortunate significant amount of funds have passed across it to other addresses.

The fraudsters didnt stop at one platform there. Within hours, one of the cryptocurrency wallets in ... [+] which funds have not been moved, has finally initialled a transfer. (It is the red-dot at the bottom, which starts with Cpf)

Following each transaction and the connected spiderweb of transfers between cryptocurrency addresses helps to spot a time period in which fraudsters will try to wash funds with a legitimate exchange. As stated below, fraudsters launched a transfer to MercadoBitcoin in Brazil as well as Bittrex.com already.

The more paths have been explored the more exchange have been listed to which funds have been ... [+] transferred. This time funds were sent to a suspicious cluster (in yellow) of entities (mainly with tumblers and gambling companies, an easy way to launder money) Using the weakness of mostly national law enforcement agencies., fraudsters have approach many exchanges around the globe like MercadoBitcoin (an exchange in Brazil). Furthermore a Binance address to the left now considered a darknet entity.

This review is just a snapshot of the current stage of transfers performed by the fraudsters as of the afternoon of July 17th. It does not display traces in full to avoid obstructing justice or investigations. Even though it has been a Twitter hack and not a Bitcoin hack, the pseudo-anonymity of bitcoin and visibility of each transaction with tools like the wallet explorer does prove that the Crypto community is not helpless and knows more and more with each transaction the fraudsters perform. It is important to underline that it was not Bitcoin that got hacked, it was Twitter. Bitcoin was just the chosen means of payment.

Sven will release a collected investigation free of charge to anyone who can identify themself as an investigator in the process.

Disclaimer:

The transaction investigation remains ongoing. For security reasons and not to interfere with investigations, this is just a teaser to provide insights into different tactics of criminal networks. Exchanges in question have the appropriate means to stay compliant and do their reporting accordingly. This is NOT an attempt to defame or point any fingers and the statements are assumptions, not yet evidence. It remains a visualization of investigation that affected many users and the account holders on Twitter.

For transparency purposes - The contributor of this post is a Head of Compliance in one of the leading Cryptocurrency Exchanges in the Nordics called Safello.

He serves as a board advisor to Valega Chain whose team has launched an investigation to follow the stolen funds on his request. Statements about how Blockchain Analytics Tools work have been performed on the example of Valega Chain Analytics and should not be generalized to other Blockchain Analytics Tools as all of them have their own criteria, tools, and internal processes.

Read more:

Uncovering The Money Laundering Attempts Of Bitcoin Fraudsters Behind The Recent Twitter Scam - Forbes

Is High-Frequency Trading the Reason Bitcoin Has Become Boring? – Cointelegraph

The Bitcoin (BTC) market has been quiet lately. A little too quiet.

As of Tuesday Bitcoins volatility levels had dropped to levels unseen since 2017. In recent weeks, Bitcoin has fallen behind as investors piled into altcoins such as Chainlink (LINK) and Cardano (ADA) .

One possible explanation for Bitcoins consolidation may be an increased presence of high-frequency trading (HFT) firms in crypto in recent months. Speaking to Cointelegraph, Paolo Ardoino, CTO of Bitfinex explained that he believes HFT is a major reason behind Bitcoins low volatility.

In crypto, we are back to the old days of HFT before it became the zero-sum game that it has become today. In crypto HFT firms can make a lot of money deploying relatively straightforward plays, such as cross-exchange arbitrage and exploiting the spread between one exchange and another.

HFT is a trading method that uses algorithms to transact a large number of orders in fractions of a second. It has existed in the cryptocurrency space for a long time. But just as billionaire Paul Tudor Jones revealed his Bitcoin holdings recently, other institutional investors are increasingly joining the market. This may explain the greater use of HFT.

Bitfinex, which claims to be huge for HFT in crypto, recently revealed that between 80 percent and 90 percent of volume on Bitfinex was now generated by HFT firms. Bitfinex partnered with Market Synergy and has been offering institutional standard cryptocurrency connectivity.

Bitfinex concludes the growing use of HFT represents increasing maturity in the digital asset space. But why would Bitcoin volatility go down with increased use of HFT? Ardoino explains the increased liquidity due to the surge of HFT tradings leads to low volatility:

As Bitcoin becomes an established asset class, we anticipate the high levels of volatility associated with cryptocurrency to recede, he explained. There is generally an inverse correlation between liquidity and volatility; i.e., higher liquidity tends to lead to lower price volatility.

The increasing presence of HFT firms in crypto seems to have added more liquidity to crypto exchanges. This provides sufficient orders for both sides of the order book and increases market efficiency, contributing to prolonged low volatility price consolidation in Bitcoin

Bitcoin is famous for moving aggressively for a short period of time. Last year, Tom Lee of Fundstrat reminded investors that the majority of Bitcoin (BTC) gains come in the ten best trading days of the year. However, the growing presence of HFT may be changing the rule of 10 best days as well.

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Is High-Frequency Trading the Reason Bitcoin Has Become Boring? - Cointelegraph

Where, Oh Where Has Bitcoin Volatility Gone? Part 2 – Cointelegraph

At the same time that volatility and short-term implied volatility have been sucked out of the market, longer dated options (six months or so until expiration) are still pricing closer to their historical average volatility in the 70% range. This steepness in implied volatility term structure suggests one of two things: Investors expect that this period of low volatility will be transitory and that a catalyst in the next couple of months will once again rock markets, or perhaps sellers of options are just not willing to make a longer-term bet, and as such, are not providing any supply in these longer-term options. The result is a steepness in term structure that could present an opportunity for the volatility-savvy trader.

Implied volatility is an interesting asset to trade. Most individual investors who use options as part of their investment strategy do so for the purpose of speculation or protection. They might even employ income generation strategies by selling options against their holdings. They tend to be focused on prices: What level do they think this asset can get to before expiration? Where would they be willing to sell it or buy it? While the nuances of volatility and options pricing may not be obvious to everyone, every trade that a trader makes is implicitly taking a stand on implied volatility.

On the other side of the individual investors trades are option market makers. These players think of almost nothing but implied volatility. The goal of a market maker is to keep their net position as flat as possible while collecting a bid/ask spread on each trade. The likelihood of order flow being balanced on every single option strike and expiry is essentially zero, so they use implied volatility curves and term structure to relate option prices to each other, keeping their risks balanced even if their position becomes a hodgepodge of long and short calls and puts at all different strikes and expirations. Option market-makers prefer to have all their risks balanced out, but when customer order flow is concentrated in one direction, sometimes that is simply not possible.

The result of this unbalanced order flow, with investors happily selling short-dated options while being skittish to sell longer dated options, has led to extreme steepness in the implied volatility term structure in Bitcoin (BTC) options. As of this writing, according to data analytics service Skew, the implication in options prices (as illustrated by forward implied volatility, which is the calculated volatility between two specific expiries) shows the expectation that volatility will realize 30% in the next week, the last week of July will see volatility of 50%, the month of August will see 60%, and the month of September will see 70%.

Perhaps the market is right and has great insight about when the current low volatility environment will end. But more likely, order flow is at such an imbalance between expiries that market-makers have twisted the term structure to levels that present some positive expectancy opportunities.

If traders wanted to express the opinion that the current cycle of low volatility reinforced by continued short-dated option selling will continue, they would do well to sell both calls and puts on various strikes with expiration dates in six to eight weeks, just after the inflection point where implied volatilities really start to drop off.

If the current environment continues, they will likely see gains not just from collecting decay on the option premium, but also from implied volatilities rolling down the term structure surface. If they wanted to, or needed to, for margin purposes, they could hedge some of the risk of an unexpected event by buying a few options in much longer dated expiries and a few contracts in cheap, short-dated expiries as well.

No one can predict exactly when the next high-volatility market event will come, but its likely not tomorrow. It is more likely to happen within the next month, and even more likely than that within the next two months.

It is very reasonable for volatility term structure to be upward sloping, but the current steepness in that slope implies a specific time frame for the reemergence of increased volatility coming in early August. Its entirely likely that this implication is priced into the Bitcoin options market not because its the actual forecast, but because there are plenty of investors willing to sell two-week options, while there are few willing to sell one-month and two-month options.

If a trader has the appetite for this risk and believes that there is no specific reason that realized volatility should double within the next several weeks, they could theoretically get paid a hefty premium for selling those options.

This is part two of a two-part series on Bitcoin volatility read part one on the rise and fall of BTC volatility here.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, readers their own research when making a decision.

The views, thoughts and opinions expressed here are the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

This article was co-authored by Chad Steinglass and Kristin Boggiano.

Chad Steinglass is the head of trading at CrossTower, an exchange operator. He has over 15 years of experience trading equity, index and credit derivatives. He was an options market-maker at Susquehanna and Morgan Stanley and the head trader for a division of Guggenheim. He was also a portfolio manager of capital structure arbitrage at Jefferies. He is an expert in market dynamics, market microstructure and automated market-making and trading systems.

Kristin Boggiano is president and co-founder at CrossTower, an exchange operator. Kristin is a structured products, regulatory and digital asset expert who brings over 20 years of experience as a trading and regulatory lawyer and over nine years in digital asset trading and regulation. Prior to founding CrossTower, Boggiano was a chief legal officer of AlphaPoint, managing director of an algorithmic trading platform at Guggenheim, and special counsel at Schulte Roth, where she founded the structured products and derivatives division and led the regulatory group for Dodd Frank. Kristin is also the founder of Digital Asset Legal Alliance and Women in Derivatives. She earned her law degree and MBA from Northeastern University and her B.A. from Sarah Lawrence College.

Originally posted here:

Where, Oh Where Has Bitcoin Volatility Gone? Part 2 - Cointelegraph

Most-wanted Wirecard executive reportedly owns significant sums of Bitcoin Report – Yahoo Finance

The former chief operating officer at disgraced payments firm Wirecard has reportedly brought "significant sums" of bitcoin following his escape from Germany, according to reporting by a leading German business newspaper Handelsblatt.

Jan Marsalek was a key figure behind the breakdown of Germany-based Wirecard, which has made headlines for filing for insolvency and allegations of improper accounting tied to billions of dollars that went missing from its balance sheet.

As per German publication Handelsblatt, Marsalek has been missing for weeks and he "is said to have brought significant sums to Russia in the form of bitcoins from Dubai, where Wirecard had dubious operations" as per a translation of a Sunday evening report. The report says he is in Moscow under the supervision of Russian military.

Marsaleks fascination with cryptocurrencies has been documented, as reported by The Wall Street Journal.

"Mr. Marsalek liked engaging in late-night discussions about cryptocurrencies and their ability to move money without a trace," a July report noted.

2020The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Original post:

Most-wanted Wirecard executive reportedly owns significant sums of Bitcoin Report - Yahoo Finance

Twitter Hack Used Bitcoin to Cash In: Here’s Why – CoinDesk – CoinDesk

Someone hacked Twitter Wednesday and used bitcoin to capitalize on it.

Bitcoin is an alternative money system based on the value of censorship resistance. In other words, Bitcoin was built from the ground up to evade third-party interference (think banks, governments and law enforcement), making it a natural tool in the hands of a world-class hacker.

Bitcoins value proposition can be broken into a few categories, all based on the technology under the hood.

Once the hacker gets it, its theirs

Bitcoin is electronic. A popular meme for bitcoin is magic internet money, which, in a sense, it is. Bitcoin operates natively online you can send bitcoin from your phone or computer to anyone else, just about anywhere in the world, in a few clicks, without anyone being able to stop you. And once youve sent it, you cant get it back.

That feature or in this case, a bother is a prime reason the Bitcoin blockchain exists. Bitcoin relies on what are called Peer-to-Peer (P2P) transactions so it cant be confiscated by middlemen such as law enforcement. Once the coins are in someone elses wallet, count them as good as gone.

Bitcoin is pseudonymous

Like many Twitter handles, Bitcoin is pseudonymous. We cant link an address to a personal identity very easily.

Stolen U.S. dollars (USD), on the other hand, would be near impossible to get into and out of a bank account without being flagged. Traditionally, money is moved from one account to another through a third party.

Legacy systems have the upside of being able to reverse transactions and attach identities to them. That is clearly a disadvantage to hackers. (Notably, reports surfaced of the hacker running a similar campaign on CashApp for USD).Bitcoin transactions, by comparison, are a lot harder to control.

Bitcoin is liquid

Bitcoin is also traded online in a lot of places. Holding bitcoins in your wallet wouldnt be worth much without people to swap dollars for bitcoins. Launched in 2009, bitcoin is the most established and most highly traded digital asset. Its also available on popular financial apps such as CashApp or PayPal.

Its common sense that the attackers would choose bitcoin. Bitcoin is the most censorship resistant and liquid asset in existence, Blockstream CSO Samson Mow said in a private message.

All this to say the Twitter hacker chose the right cryptocurrency to get U.S. dollars.

But bitcoin can be tracked and traced

Addresses can be tracked, however. And they can also be blackballed by others. By nature, the Bitcoin blockchain is 100% transparent. That means the ins and outs of transactions from one party to another are viewable for all to see with a little know-how.

For example, popular cryptocurrency exchange Coinbase would not allow users of its service to transfer funds to the Twitter hackers address.

Blockchain analytics firm Chainalysis says the 12 or so bitcoins (worth about $110,000 at the time) the hacker netted are already on the move. But we can see where they are going. Some firms are even able to match meatspace identities with blockchain ones based on small details hackers overlook.

Having said that, there are tools available to people who really want to obfuscate their transactions, and whoever perpetrated this particular heist seems to be prepared to take measures to protect their loot.

At the end of the day, its important that people be wary of promises of free money on the internet whether that comes in the form of dollars, pounds or bitcoin.

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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Twitter Hack Used Bitcoin to Cash In: Here's Why - CoinDesk - CoinDesk

Bitcoin SV DevCon 2020: Leveraging Bitcoin services to thrive – CoinGeek

The number of applications built on Bitcoin SV is steadily growing, as more developers and businesses leverage the networks low fees and massive scalability. At the inaugural Bitcoin SV DevCon virtual event, the founders of Money Button, Codugh and Tokenized joined Brendan Lee to talk about how their services are being utilized by the Bitcoin ecosystem, their unique features and what the future holds.

For Codughs Shashank Singhal, his interest in blockchain technology dates back to 2016. While he and his fellow cofounder Andrew Snow built briefly on the Ethereum blockchain, its inability to scale proved to be a hindrance.

We need a blockchain that can handle a large volume of transactions. Weve seen from apps like WeatherSV that BSV can handle massive transactions on-chain. Low fees on BSV allow for micro transactions which is essential to us. The dedication to a stable protocol means we can be certain that we wont encounter any big changes or struggle in the future.

Money Button has become one of the most popular wallets in the Bitcoin space, but as founder Ryan X. Charles revealed, its more than just a wallet. Charles delved into some of the advanced features and how developers are exploiting them to develop their platforms.

Money Button now boasts of over a million button swipes and is now integrated into more than 150 active applications. Some of the renowned apps using Money Button include Twetch, Cityonchain, and PowPing. Charles singled out Baemail for its innovative use of Money Button, being the first app that made use of the advanced features such as the encryption of data inside a Bitcoin transaction.

Despite the platforms immense success, Charles believes that Bitcoin appsMoney Button includedare still very niche.

I dont think weve reached a mainstream audience yet. We still have a long way to go to reach a genuinely mainstream audience. Thats why we spend a lot of time worrying about user experience because we want to ensure that ordinary end users can use the app.

Tokenized CEO James Belding concurred with Charles, pointing out that we are just scratching the surface of whats possible with Bitcoin. Belding remarked, I think the concept of smart contracts has barely been touched in terms of where it needs to go to become a mainstream competing product.

Tokenized allows users to tokenize any ownership certificate, from high value assets like stocks and bonds, to loyalty points, tickets and gym membership.

The three founders also shared the advanced features their firms have been working on. Money Buttons invisible button has opened up a world of possibilities, allowing app developers to customize the user experience. Codugh has been in a closed beta, with Singhal calling on developers to sign on to the waitlist. The wider release is scheduled to take place in three months, he revealed. For Tokenized, the focus has been on e-money, with the company submitting a whitepaper to the Bank of England that lays out how e-money on the Tokenized platform would function.

New to Bitcoin? Check out CoinGeeksBitcoin for Beginnerssection, the ultimate resource guide to learn more about Bitcoinas originally envisioned by Satoshi Nakamotoand blockchain.

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Bitcoin SV DevCon 2020: Leveraging Bitcoin services to thrive - CoinGeek

How long does it take to mine a Bitcoin? – Decrypt

Bitcoin (BTC) uses the Proof of Work (PoW) consensus algorithm as the basis of its security. This means that like many other cryptocurrencies, a network of cryptocurrency miners is used to discover blocks and add pending transactions to them, to render them irreversible.

The block discovery process, which takes approximately 10 minutes per block, also results in the minting of a fixed number of new Bitcoin per block. This is currently set at 6.25 BTC per block, but halves approximately every four years (210,000 blocks), reducing the number of Bitcoin minted with each newly discovered block.

This BTC is provided as an incentive to the miner (or miners if using a mining pool) that discovered the block.

Although it takes 10 minutes to discover each block and each block yields a 6.25 BTC reward for the miner that successfully discovered it, it's important to understand that the entire Bitcoin mining network is essentially competing in this block discovery process.

This means that only a single miner in the entire mining network will actually successfully discover the blockand since there are potentially tens of thousands of Bitcoin miners in operation, the odds of single-handedly discovering a block is quite low.

For this reason, the vast majority of Bitcoin miners work together as part of a mining pool, combining their hash rate to stand a better chance of discovering a block. Then, regardless of which miner in the pool actually discovers the block, the rewards are distributed evenly throughout the pool.

Consequently, a miner that contributes 1% of a pool's hash rate, will also receive 1% of the block rewards it accrues.

F2Pool is currently the largest pool by hash rate share, contributing around 20.52 EH/s of the total Bitcoin hash rate of 123.39 EH/s. This 16.6% hash rate share essentially means that around 16.6% of all newly minted BTC are mined by this poolequivalent to 149.4 BTC per day.

An individual miner that contributes 1% of the pool's hash rate (~205 PH/s) would earn approximately 1.494 BTC per day. This means a miner would need close to 132 PH/s of hash rate to mine an average of 1 BTC per day at current difficulty levels.

To put this into perspective, this is the equivalent of 1,200 Antminer S19 Pro mining rigscurrently one of the fastest ASIC miners on the market. The total cost for this setup would likely be somewhere around $2.4 million, assuming a unit price of $2,000/ea.

For those with a smaller budget, it would take a single Antminer S19 Pro a total of 1,200 days to generate 1 BTC in rewards when working with a mining poolthat's the equivalent of generating 0.0000833 BTC/day in rewards.

To calculate how long it would take another mining rig to generate 1 BTC in rewards, you can simply plug its hash rate into the following equation: 1 / (hash rate (in PH/s)) * 0.0076. This result will produce the number of days it will take to generate 1 BTC in rewards at current difficulty levels.

Although most Bitcoin miners tend to focus their efforts as part of a mining pool, it's also possible to go it alone.

Unlike Bitcoin mining pools, which essentially guarantee smaller regular payouts and eliminate most of the risks involved with Bitcoin mining, solo mining is more of a gamblebut can also be more rewarding. Since solo miners don't need to pay any mining pool fees, the overall mining profitability can be slightly higher than working with a pool, particularly for those running a sizeable mining operation.

Statistically speaking, a solo miner looking to generate 1 BTC per day would need to contribute just over 0.11% of the total Bitcoin hash rate. As we previously mentioned, this is equivalent to around 132PH/s or the combined output of 1,200 Antminer S19 Pro mining units. On average this mining operation would discover a block yielding a 6.26 BTC reward every 6.25 days, which averages out to 1 BTC/day.

Because even gigantic 1,200 rig mining operations would take almost a week to discover a single block, miners with just a few machines would likely go years without discovering a block, making the practice extremely risky in most cases.

The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.

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How long does it take to mine a Bitcoin? - Decrypt

The Origins of the World’s Oldest Bitcoin Metric, Explained – CoinDesk – CoinDesk

The concept of bitcoin days destroyed (BDD) was introduced in 2011, two years after the creation of the worlds first cryptocurrency,bitcoin. People were already beginning to create blockchain metrics to measure on-chain transaction activity and value.

Once the first cryptocurrency metric was created, BDD was quickly followed by a plethora of other unique metrics including unspent transaction output (UTXO), market value to realized value (MVRV) and spent output profit ratio (SOPR). Despite the sophistication of cryptocurrency data and analysis since 2011, BDD remains a fundamental metric to understanding and valuing bitcoin.

[BDD] is a metric that reflects the collective action of long-term [BTC] holders, said CoinDesk senior research analyst Galen Moore on a special podcast episode about the metric. Whats the psychology of the long-term holder? You can see that in a collective way [through BDD] in a way I dont think is possible in other asset categories.

Moore interviewed Coin Metrics Lucas Nuzzi on July 7, to learn more about BDDs use cases and limitations. In a follow-up discussion July 9, Moore noted no other financial asset enables traders and investors to see the activity of long-term asset holders as transparently as bitcoin.

To this, CoinDesk research intern Duy Nguyen noted the motivations behind why long-term holders are moving funds at any given time is still largely a guessing game that requires further off-chain analysis beyond the scope of BDD.

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The Origins of the World's Oldest Bitcoin Metric, Explained - CoinDesk - CoinDesk

News.Bitcoin.com Lead Writer Jamie Redman Named One of the Best Crypto Bloggers | Featured – Bitcoin News

Lead Writer at News.Bitcoin.com, Jamie Redman has made Redeeem.coms list of twelve influential go-to crypto bloggers. Redeeem says the list comprises names behind some of the most informative crypto news articles.

In its citation, Redeeem says Jamie Redman, who is also a crypto meme designer, is one to follow for crypto enthusiasts. Redeeem also lists some of Redmans best works to date.

A decentralized crypto fan, Redman has been in the crypto space since 2011 and has written over 3,300 articles since 2015 with just News.Bitcoin.com alone.

Redman believes the community should be focused on moving forward instead of squabbling endlessly.

Commenting on this recognition, Redman said:

Its an honor to be named by Redeem.com as one of the top twelve crypto bloggers among some of the writers I respect and read regularly. Blockchain and cryptocurrency solutions are hard to understand and its up to writers to break it down for people and make comprehension easier.

Redman adds that crypto writers have played an extremely important role when it comes to the adoption of crypto assets, as our words describe the myriad of benefits this technology has to offer.

Meanwhile, also making Redeeems 12 Best Crypto Bloggers list is Pete Rizzo, a former editor with Coindesk and Roger Huang, cryptocurrency writer with Forbes. Also, two female crypto bloggers, Portia Burton from the blog Blockchain Explainer, and Angeline Mbogo from the news outlets Bitcoin Africa, Afritechnews.

Crypto bloggers remain instrumental in pushing back against some misrepresentations and mistruths often peddled by ignorant but influential individuals.

Bloggers have also called out the mainstream media when it publishes misleading stories about bitcoin or the general crypto space.

The recent hacking of verified Twitter accounts and the associated donation scam gave fresh ammunition to cryptocurrency critics. Bloggers like Redman and many others have been on hand to set the record straight.

What do you think of Redmans recognition? Tell us what you think in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons, blog.redeeem.com, Mike Townsend

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. 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.

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News.Bitcoin.com Lead Writer Jamie Redman Named One of the Best Crypto Bloggers | Featured - Bitcoin News

Money Reimagined: This Isn’t Good for Bitcoin – CoinDesk – CoinDesk

No, blockchain does not fix this.

By this I dont mean centrally controlled databases that are vulnerable to attack, the problem highlighted by this weeks massive Twitter hack.

I mean the meta problem of yet more bad publicity, with the word bitcoin again associated with fraud and unsavory behavior, a picture that cryptocurrency advocates will again struggle to avoid. That problem will indirectly but greatly contribute to ongoing public pressure for regulatory constraint on the cryptocurrency industry, which will impede innovation in the sector and its prospects to bring positive change to a broken financial system.

A related problem is that Crypto Twitter is an echo chamber. It is too smart for its own good. Within that nerdy hive mind, form doesnt matter. Its all about substance.

Youre readingMoney Reimagined, a weekly look at the technological, economic and social events and trends that are redefining our relationship with money and transforming the global financial system. You can subscribe to this and all of CoinDesksnewsletters here.

Bitcoin isnt a crime, its just code.

The hack will open eyes to the failings of a centralized system.

Decentralization is now inevitable.

Oh, how I wish those sentiments, expressed repeatedly over Twitter this week, were absorbed by normies. Sadly, it wont be the case.

In two consecutive tweets, Blockstack CEO Muneeb Ali laid out the challenge between what should be and what, sadly, will be.

Might the spectacular breach of Twitters defenses eventually convince people to abandon the centralized internet platforms that control their data? Maybe. But many in the mainstream will share the views of New York Magazines Josh Barro, who argued, poorly, that the hack wouldnt have happened if we banned cryptocurrencies.

Barro is a smart, influential columnist, respected on both sides of the political divide. Its counterproductive to call him a would-be Communist moron, as this Crypto Twitter member did, alongside many others derogatory comments. It signals more about the critic than the criticism, helping perpetuate negative stereotypes of the crypto community.

A far better response came from Ideo CoLabs Ian Lee, who highlighted Barros error in conflating technology with a crime.

But in the age of social media, constructive nuance like that gets lost in the noise of ad hominem attacks and invective.

Thats a problem because Twitter is a powerful factor in public debate. The performance of the conversation the form, as much as the substance matters for how public opinion develops.

And that matters because public opinion feeds into regulation, which in turn can impede innovation.

DeFi in the crosshairs?

This comes amid signs U.S. regulators are focusing on some of the more innovative crypto financial engineering projects.

On Monday, news broke that the Securities and Exchange Commission and the Commodity and Futures Trading Commission had forced two separate settlements, worth $150,000 each, out of Abra Global, the crypto-based provider of synthetic digital asset products.

Abra, which counts American Express and Indian billionaire Ratan Tata among its investors, has long been seen as one of the most innovative companies in the crypto industry. It launched in 2014 with what was then a radical idea for a crypto-collateralized synthetic stablecoin enabling peer-to-peer remittances from the U.S. to the Philippines. (Abra wasnt providing an actual token to users, but a contract giving them rights to a fixed-dollar value worth of underlying bitcoin, a deal it achieved via some sophisticated hedging techniques and by using the intermediary-free Bitcoin blockchain as the settlement layer.)

More recently, Abra took the same synthetic assets model to offer non-custodial derivative-like investment exposure to a range of assets, including both crypto tokens and traditional financial instruments. In effect, it allowed anyone in the world to place bets of any size on the direction of U.S. stocks and bonds.

Thats what got Abra into trouble. The SEC determined it was offering security-based swaps, which precluded it from selling to U.S. customers not classified as accredited investors. Although Abra took steps to geofence the American market from its product, the regulators found it hadnt done enough.

The fines wont derail Abra, which has a growing global base of customers. But the action underscores the challenges for crypto companies doing innovative things in the U.S. against what continues to be a somewhat hostile posture from the SEC. (The CFTC has generally taken a more accommodating stance toward cryptocurrency innovation. Its former chairman, Christopher Giancarlo, is now driving the charge for the U.S. government to embrace a tokenized version of a digital dollar.)

In particular, there are risks for the Decentralized Finance, or DeFi, movement. Abra is not formally a DeFi provider, but its model using underlying cryptocurrencies as collateral to assure stability and blockchains for an intermediary-free, low-friction settlement rail shares similarities with this burgeoning industry.

Theres no reason to suggest DeFi leaders like MakerDAO and Compound are in breach of securities, derivatives or money transmission laws. But you can bet that Washington regulators now have their eyes on an industry thats bringing services such as collateralized lending and interest rate benchmarking traditionally the domain of highly regulated financial institutions into a decentralized setting.

The DeFi industry was perhaps too small to matter to regulators before this. But, although the $2.6 billion in value now locked in DeFi contracts is still just a fraction of the trillions in traditional lending markets, its now big enough to get on regulators radars.

'Collateral' damage

This is why the Twitter fallout matters. If cryptocurrency continues to be a dirty word in Washington, political pressure will come to bear on the agencies seeking to regulate the industry.

DeFi is not immune from all that.

To be sure, the industry could benefit from more smart regulation. Legal clarity and reliable protection from scammers could help expand DeFi adoption and drive progress from a speculative ecosystem to one that generates valuable credit products and risk management tools.

But if the regulatory backlash is too blunt, it could do great harm to innovation. DeFi development can and will continue offshore. But as Abras experience shows, the global digital economys borderless nature makes it hard for companies to comply with regulations everywhere even when they want to. So the regulatory risk will continue to dangle over the heads of innovators.

Thats a pity, because while participants face real risks in the freewheeling, unregulated world of DeFi, the ideas generated there offer an exciting reimagining of the financial system. Whether it ends up looking anything like the current Ethereum-based DeFi ecosystem or something else, the prospect of reducing gatekeeper friction in finance is appealing in a world where exclusion from credit often defines the difference between rich and poor.

DeFi leaders have lawyered up in a bid to stay compliant. Some of the issues they face were discussed in a DeFi regulation workshop CoinDesk hosted during our virtual Consensus: Distributed event in May. There, Ropes & Grey attorney Marta Belcher eloquently argued that regulators may even be in breach of developers First Amendment constitutional rights if they constrain efforts to writing open-source code for decentralized communities.

But do not underestimate the power of Washington or the extent to which social media-infused hysteria can energize those who wield that power.

This is why the messaging around events like this Twitter attack matters. At times like this, crypto thought leaders should all try to take the high road.

CoinDesk Research covers quarterly data in crypto markets including volatility, correlation, volume and returns of the CoinDesk 20 list of crypto assets. In this report, we also cover derivatives markets, synthetic bitcoins, BTC versus ETH, central bank digital currencies and the return of aging bitcoin mining equipment; and look at the relationship (or lack thereof) between online sports betting and crypto markets. Sign up to download the free report.

A history lesson

A common theme here at Money Reimagined is the current financial system tends to serve those with access to financial assets while creating barriers for those on the lower rungs of society. This is a particularly important issue for assessing the impact of the Federal Reserves massive quantitative easing program in response to the COVID-19 crisis. I continue to believe the real risks from that program, at least for now, lie far more with asset price inflation, and its accompanying impact on income inequality, than with inflation. Global demand for dollars is just too big and the economic fallout from the pandemic too great for any monetary oversupply to unleash an accelerated increase in consumer prices.

So, it was quite impactful for me this week to discover the annotated historical charts on equality presented in a colorfully named site Id never encountered before: WTFHappenedin1971. The reference to 1971 is, of course, the so-called Nixon Shock, the moment when the U.S. took the dollar off its peg to gold, abandoning the core anchor of the Bretton Woods global financial system established in 1944. It was also when the worlds central banks suddenly gained fiat monetary powers, an unimpeded capacity to create money, the very powers the Fed is now drawing on to fight the COVID-19 recession.

The classic hard money, anti-1971 argument is that central banks degrade peoples wealth by inflating the monetary base, though strong arguments are made on the other side that fiat monetary creation power enables them to better manage economic cycles, and that a contained amount of inflation is necessary to achieve that. That debate hasnt been resolved for centuries and may never be. Perhaps its less controversial to talk about the unequal distribution of that monetary policys impact. This chart from WTFHappenedin1971 shows the effect on income equality since those monetary powers were given to central banks half a century ago.

Notably, the chart is from the Center on Budget and Policy Priorities, a think tank typically described as progressive and that earns a Left rating on the spectrum provided by AllSides.com. Its not the only one from a left-leaning organization thats included in The WTFHappenedin1971 site. Another from the Economic Policy Institute shows a striking divergence between productivity expansion and the relative stagnation of real wages since 1971.

In other words, a site thats implicitly making the typically conservative argument for a return to the gold standard or to bitcoin-like hard money principles is cleverly drawing on the observations of the left to make its point. The American left typically favors government activism via money and fiscal policy to attack poverty, not strict constraints on monetary issuance.

Libertarians argue, with some validity, the left simply doesnt see how fiat money inflation hurts the poor by eating into their buying power. But the left says thats offset by the benefits of higher income from jobs created via monetary stimulus and easier credit.

Where might these positions align around this clear inequality divide? Around something that I see as a bigger reason to embrace decentralized, peer-to-peer cryptocurrencies than the strict scarcity function of bitcoins monetary policy: the excessive power of financial intermediaries. Inequality has gone hand in hand with the financialization of the American economy, where finance and financial groups have held increasing sway over the economy.That trend accelerated dramatically in the post-1971 era because of the political and economic clout that Wall Street earned for itself as the de facto agents of monetary and financial regulatory policy. Disintermediating that is where the real opportunities lie for crypto.

Global town hall

CHIMERICA. Before there were reserve-backed stablecoins like tether and USDC, there were currency boards. Under that rigid currency peg model, a countrys monetary authority commits to hold in reserve the full value of its currency in some other countrys currency and promises holders of the local currency to honor any redemption requests at a fixed exchange rate. Some currency boards have failed spectacularly Argentinas is the case par excellence but some have been a force for stability and growth. Hong Kongs Linked Exchange Rate System, which has pegged the Hong Kong dollar to the U.S. dollar since 1983, is mostly an example of success. Thats probably because, unlike Argentinas agricultural export-driven economy, Hong Kongs revolves around finance, which thrives on stability. Ending the peg would be extremely harmful to that economy, which is why hawks within the Trump Administration were reportedly keen to undermine it in retaliation for Chinas increasing control over HKs citizens. This week less trigger-happy souls apparently won the day as Trump ruled out taking such action.

Presumably, someone demonstrated to Trump the enormous harm such actions would have on American financial interests. The peg creates strong synchronicity between U.S. banks and the many foreign-owned banks (including U.S. subsidiaries) based in Hong Kong. Hurting them would diminish the United States global financial clout. It might also incentivize China to retaliate by dumping its giant holdings of U.S. Treasury bonds to accelerate the end of the dollars reserve currency status. However, as withU.S. interests in the Hong Kong peg, such actions by Beijing would be counter to Chinas interests in financial stability. Whether they like it or not, both countries are joined at the hip by intertwined policy structures, forming what the financial historian Niall Ferguson and the economist Moritz Schularick described as Chimerica.

HOME SWEET BANK. If theres a number from this past week that matters for the prospects of U.S. economic recovery, its 2.98 percent. Thats the record-low level to which U.S. mortgage rates dropped as the continued economic crisis and the Feds relentless monetary expansion efforts pushed benchmark bond yields ever lower. This powerful market shift has the potential to work as a countervailing force for economic recovery. Some 65 percent American households own their home, and theres now an incentive for them to refinance their mortgages or take out a home equity loan, creating financial liquidity thats much needed in these difficult times. Americans might not have direct access to the Fed stimulus dollars slushing around financial markets, but in this way they can turn the equity in their home into something of a bank.

MODELING VALUE. Valuing crypto assets has been a challenge for some time. How does one put a value on a token without an explicit return built into it, such as a promise of interest payments or dividends, or a real-world utility function such as oil or some other commodity? Well, analysts are still trying to figure that out, with multiple methodologies being applied. In this report, the first of two on crypto valuation by Coin Metrics, partners in our new Research Hub, Kevin Lu and other members of the team lay out a series of quite different approaches. All have some merit. But of course the lack of consistency makes it hard to settle on a commonly held market view. Should we be worried about that? How can something be considered valuable if theres no consensus on how to measure that value? Never fear, says Coin Metrics, this is a process that takes time. And to back that up, they conclude with this statement: The Dutch East India Company, founded in 1602, was the first corporate entity to issue bonds and shares to the public, and in doing so became the worlds first formally listed public company. It then took a period of over 300 years for the necessary foundational concepts to be developed until the formal discipline of equity valuation was established in the 1930s.

Relevant reads

Everything We Know About the Bitcoin Scam Rocking Twitters Most Prominent Accounts. Among Crypto Twitter dwellers, for whom the meme flow of the cryptocurrency community is like a lifeblood, Wednesdays massive hack against the social media platform felt profoundly disorientating. CoinDesk reporter Danny Nelsons tick-tock breakdown makes for compelling reading on how the crisis rapidly mushroomed.

Hong Kong Citizens Turn to Stablecoins to Resist National Security Law. Hong Kongers may not yet need to fear the end of their currencys dollar peg, but many are now fearing surveillance of their HK dollar transactions after the introduction of a new security law that aims to quell opposition to the Chinese Communist Party. Our reporter David Pan discovered that a number of them appear to have found a payment solution to avoid Beijings prying eyes: stablecoins.

Bank of England Considering a Central Bank Digital Currency, Governor Says. The Bank of England was one of the first major central banks to explore the prospect of a digital currency after bitcoins invention sparked interest in such ideas. The project then went into a kind of hiatus while former Governor Mark Carney started floating even bigger ideas with his proposal for a new digital international hegemonic currency to replace the dollars reserve role. Now, under new Governor Andrew Bailey, a British CBDC is back on the table, as CoinDesks Sebastian Sinclair reports.

Five Years On, Ethereum Really Is the Minecraft of Crypto-Finance. In the 2010s, the online world-building game Minecraft enjoyed surging popularity among pre-teens and teenagers a generation that included a young Russian-Canadian called Vitalik Buterin. This opinion piece from Camila Russo, author of the new book The Infinite Machine, offers a reminder of just how young Buterin was (19 years old) when he invented Ethereum.

Russian Activists Use Bitcoin, and the Kremlin Doesnt Like It. In Russia, it often seems President Vladimir Putin controls everything most importantly, national elections, in which he routinely earns overwhelming majorities in the popular vote. But as CoinDesks Anna Baydakova reports, he cant control Bitcoin, which gives Putins opponents a type of freedom they otherwise struggle to obtain.

How a Digital Dollar Can Make the Financial System More Equitable. If we want digital dollars to foster a more equitable financial system, design is everything, say Patrick Murck and Linda Jeng, both lawyers at Transparent Systems. They offer a radical proposal for achieving such results: a cooperative model that puts community ownership and governance, rather than centralized or corporate control, at the core of the digital currency network.

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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Money Reimagined: This Isn't Good for Bitcoin - CoinDesk - CoinDesk

Why Decentralized Finance Through Bitcoin Can Be A Great Thing For The World – Programming Insider

It has been an established statement that cryptocurrency or the bitcoin runs in a decentralized network.

The term decentralization has been there is the society for quite long now. It is an important term which is actually something greater than what we actually know. The concept of decentralization has always been an important idea that has never been very clear. Here we will try to clarify the idea of decentralization.

A Trustless System

Well, this is one of the best systems, as there is no authority linked to it and no one is responsible for anything. You can withdraw and deposit whatever amount you want easily in your crypto wallet.

A trustless system is a system that allows you to do anything with your money and no one except you are responsible for whatever happens to your crypto asset. Here you do not send the money to another user, you send the crypto to another address.

In the case of the trustless system, the system is such that you can use which no one would care about. In the case of a bank, one is always responsible send just a limited amount of money is transferred. But in the case of cryptocurrency, the entire amount which could be a huge amount can be sent to anyone. But in the case of bank transactions that are not possible, while on the other hand, you can send money from were to wherever you want. You can send cryptos in large amounts from one part of the earth to the other. While the geographical limitation is there in banks, it takes a lot of pain to transfer any money to any other country.

Although this system is trustless which means you can send and receive money from people who you have never met or ever had any conversation with such people.

Low Risk

If you are a little careful with the kind of investment you do or the way you use your cryptocurrency, you will get to know that actually the risk is very less in the crypto market. Keep reading to know the impact of crypto currency in global economy then you would be able to do some low-risk investment.

Cryptocurrency is highly volatile hence the risk associated with the cryptocurrency is really high. But you have also seen millionaires and billionaires, so how do you think they escape the risk of the cryptocurrency?

It sounds really difficult to deal with such a volatile kind of cryptocurrency, but even then, people do become a millionaire. It is just because they know when to trade and how to trade. The price and the value of the bitcoin would rise and fall wherever necessary but then you will soon realize that if you trade properly, you will be able to do great business.

If you know when to use your crypto and when to trade crypto, then you will also know that when would you meet a crash in the market and when would you be able to sell off the shares.

The Legitimacy of the Crypto Market

Some people think that the crypto market is not a legal market, it is because a lot of the darknet activities happen through this platform. But this does not mean that it is actually an illegal activity. Many of the countries have actually made the use of bitcoin legal and they want to encourage more and more people to use crypto.

During the COVID-19 it has been seen that in many of the countries the fiat currency was not been able to cope with the financial crisis in the market. While some places like South Africa and Venezuela accepted the cryptocurrency like bitcoin to bring back the economic condition of the country. They believed that it is not possible because the value of bitcoin fluctuates while the fiat currency remains what it is, hence they feel it is not possible.

It can be concluded looking at the economic condition of the world that using the decentralized currency is the best kind of currency that must be used. This will help you to get back the economic condition of the country properly.

Read more:

Why Decentralized Finance Through Bitcoin Can Be A Great Thing For The World - Programming Insider


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