Monthly Archives: July 2017

The price of bitcoin across global exchanges hit $2,833 today, the highest figure observed since July 23.

The five-day high comes amid what has been largely a week of stability in the price of the digital asset against the dollar. Bitcoin prices fell to a seven-day low of $2,433 on Wednesday, but have traded as high as $2,889 as recently as July 21.

Still, the fluctuations come ahead of what could emerge as a turbulent time for the price.

While bitcoin's long-raging scaling debate may soon reach a conclusion of sorts (with the integration of the Segregated Witness now scheduled for early August), it's not going to be without twists.

For one, the cryptocurrency is about to see the first large-scale fork of its live blockchain, with some miners and businesses vowing to create a separate project called Bitcoin Cash.

Already trading at $300 (though it hasn't been released), it's hard to say exactly how the move may impact prices.

Still, if the project does come to pass, those on either side of the debate may now be able to more easily move the market in their preferred direction, potentially leaving the door open for volatility ahead.

Markets image via Shutterstock

The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Have breaking news or a story tip to send to our journalists? Contact us at [emailprotected].

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Bitcoin Inches Above $2800 to Hit 5-Day High - CoinDesk

When most people start to get excited about Bitcoin there tends to be a list of frequently asked questions that they go through immediately. How do I buy it? Who accepts it? What can I buy with it? Is gambling with bitcoin legal? Where can I store it? How do I protect it?

Security is always one of the obvious concerns that first time bitcoin traders have. With physical money, the question of security has a pretty natural answer but when you are talking about digital currencies its just not as simple as keeping it hidden away under lock and key.

There are hackers out there that come up with new and innovative ways to steal bitcoin every day and its up to the individual to understand how to keep their cryptocurrencies secure. At this point a new batch of questions emerge. Where are the safest bitcoin exchanges? Whats the safest way to store my bitcoin? Are bitcoin exchanges safe places to store my bitcoins?

Major cryptocurrency exchanges are relatively secure ways to store your Bitcoin but its typically not advised for larger amounts. The major exchanges are essentially big money targets for hackers who are constantly developing new ways to steal bitcoin from people.

Over the years that Bitcoin has been in digital circulation, there have been multiple accounts of bitcoin being stolen via hacking of some of the major exchanges. The most recent crypto robbery was of one of busiest exchanges in the world based out of South Korea where over 30,000 customers information was compromised in the attack.

With that said, its easy to get into a comparative loop of digital security insecurities. While the major exchanges are those big money targets, they also reserve the right to cancel your account at any time for any reason and seize the funds that are in your account. That doesnt mean that they will just arbitrarily steal your money but if you are dealing with a less popular exchange its a possibility that does exist.

The common consensus on the internet through the crypto communities is that storing small amounts of Bitcoin on reputable exchanges is actually pretty harmless. However, if you have larger amounts that you need more security for youll need a more secure digital wallet.

For large amounts of Bitcoin where you need the maximum security you can opt for what is called Cold Storage. The term Cold Storage refers to when a person takes all of their bitcoin keys off of any known servers and computers and instead stores them physically on a device that is not connected to the internet so it cant be hacked.

People sometimes use USB devices or other mediums of data storage that arent connected. Some have even been known to buy a computer specifically for the storage of their bitcoins and go through steps to never connect it to the internet so hackers can find it and will never be able to access it. Here is a list of safe cold storage wallets that are popular in the crypto space.

See more here:
Are Exchanges Safe Places to Keep Bitcoins? - The Merkle

The user-activated hard fork (UAHF) on the Bitcoin network is looming around the corner. Bitcoin Cash (BCC; BCH) is slated to break away as a new fork from the Bitcoin blockchain on August 1 at9:20PM JST or 12:20PM UTC.

Also read:Fork Watch: JP Powerhouse Coincheck Now Unlikely to Suspend Bitcoin Payments

Multiple bitcoin exchanges have signaled support for Bitcoin Cash. This news comes alongside the inevitability that a UAHF event will occur.

Last week, Bitcoin.com detailed many of the exchanges and platforms that will be rejecting Bitcoin Cash (BCC), but now more appear to be settling into the idea that it will exist as a legitimate digital token. At the time of writing, futures of BCC are being traded on Viabtcs exchange for roughly $390.

Kraken

The large bitcoin exchange Kraken made an announcement yesterday in support of Bitcoin Cash. They said they will be providing users with the ability to trade it on their platform. They pledged to credit clients with an equivalent amount of Bitcoin Cash based on their current holdings of bitcoin.

Although the Bitcoin Cash fork is expected to be minor, it may be successful. Provided that unforeseen circumstances do not make it prohibitively unsafe or difficult for us to do so, Kraken will support Bitcoin Cash

However, Kraken warned margin traders on their platform to be very cautious across the fork. They were told to either greatly reduce their position or cease margin trading altogether to ensure a smooth transition. In the least, they should set stops and not rely on Kraken to function optimally while the fork is in progress.

Bitfinex

The bitcoin exchange platform Bitfinex also announced they would be supporting bitcoin cash. They plan on providing an amount of bitcoin cash tokens equivalent to that of bitcoin in their customers wallets.

They said, A minority of Bitcoin miners will be forking on August 1st, 2017 to create a newchain calledBitcoin Cash. The fork does not impact Bitcoin balances, but it creates a new token. At the time of the fork, all Bitcoin addresses holding a balance will automatically have equivalent balances in Bitcoin Cash.

The company, however, mentioned they will not be using BCC for the bitcoin cash ticker symbol. They said it is already in useon their platform. Instead, they will use BCH. The company will distribute BCH tokens with the UTC timestamp of the first forking block, which will occur August 1. Their page contains details on how they plan on ironing out the kinks and managing technical issues.

Besides exchanges, major hardware wallets manufacturers are also supporting Bitcoin Cash. Both Trezor and Ledger have provided details on securing bitcoin cash in their wallets when the fork occurs.

Trezor wallet said they can safely adopt bitcoin cash functionality with their wallets sincethe currency supports replay attack protection. They said, Bitcoin Cash has implemented the necessary protection againstreplay attacks, meaning Trezor can support the currency safely. We will provide an interface, accessible from Trezor Wallet, where you can access and safely claim your Bitcoin Cash coins. You will be prompted by Trezor Wallet once you select Bitcoin Cash in the currency selector.

As a result of the in-built replay attack protection, Ledger will also provide full functionality for bitcoin cash via their wallets. They say users will be able to gain access to bitcoin cash after the fork by using a special tool. They said users could view bitcoin cash currency as free air-dropped money.

As a result, all bitcoin holders will be granted a new duplicated Bitcoin Cash balance (literally airdropped free money) if the fork activatesthis post and the follow ups will describe how you can best secure this new balance, then decide to trade it, hold it or sell it as you wish.

Both hardware wallet companies wrote details on their page explaining how to respond to the fork and gain access to freshly minted bitcoin cash.

Several other exchanges and wallet providers are also signaling their support for the hard-forked token. Exchanges include Quoinexchange, Viabtc, Kcoin, Btcbox, Bithumb, Kex, Mercury Cash, Huobi,Quadrigacx, Toubi, Korbit, Bittrex, and Btcpop. Wallet providers who are adopting Bitcoin Cash include, Bitcoin ABC, Bitcoinclassic, Electrum Cash, and btc.com.

The exchange Quoinexchange said, We have also received many inquiries regarding BCC(Bitcoin Cash) crypto currency. As an exchange, our goal is to provide a fair exchange platform which is highly secure and compliant. As a result of the fork, users that hold BTC in their balances at the time of the fork will be credited equivalent BCC. If your account balance at the time of the fork holds 1 BTC, youwill be credited 1 BCC.

These announcements seem to suggest stronger community backing for the fork token. It does not look like the currency will die immediately in the rip and roar of the fork. The future of the digital asset remains uncertain, for sure.

However, the basic rules of forks still apply to everyone regardless of what happens: keep private keys safe. No matter what coin wins out, every bitcoin user should try to maintain their coins with their own securely held private keys. This ensures that control of both coins remain in the users hands.

Will bitcoin cash continueto grow after Aug 1? Will it have more supporters? Let us know in the comments section below.

Images courtesy of Shutterstock, bitfinex.com, and crunchbase.com

Bitcoin.coms own store features a wide range of interesting Bitcoin-related products. Looking for a hardware wallet? We got em. Want a good-looking t-shirt? Its there. Want to gift a nice Bitcoin tea cup? Go shopping.

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Fork Watch: 'Bitcoin Cash' Support Grows as August 1 Draws Near - Bitcoin News (press release)

Howard Marks has some harsh words for the bitcoin community and the rise of digital currencies, which have become all the rage lately.

Digital currencies are nothing but an unfounded fad, said the co-chairman of Oaktree Capital Management, who was among the first to sound the alarm on the 2008 financial crisis.

Bitcoin BTCUSD, -1.02% is based on a willingness to ascribe value to something that has little or none beyond what people will pay for it, wrote Marks in his latest memo to clients.

Read: Bitcoin isnt real, and markets are darn hot, warns Howard Marks

The billionaire investor believes an increasing lack of faith in fiat currencies on top of millennials love of all things virtual have allowed cryptocurrencies to emerge as a potential investment tool.

Maybe Im just a dinosaur, too technologically backward to appreciate the greatness of digital currency. But it is my firm view that the ability of these things to gain acceptance is just one more proof of the prevalence today of financial naivet, willing risk-taking and wishful thinking, he said.

Marks boasts a net worth of $2 billion, according to Forbes. His investing letters are often parsed by market participants for insightful nuggets.

He freely admits he is stumped by cryptocurrencies and says he isnt alone among savvy Wall Street investors puzzled by its rise.

But they are not real!!!!! Nobody has been able to make sense to me of these currencies, he said.

One of the biggest pitfalls of bitcoin and its digital peers, according to Marks, is that they are mostly used to buy other imaginary money or to invest in companies that will create other new currencies.

But regardless of whether bitcoin is real or not, the more important question posed by Marks is whether the digital currency is suitable for investment or if it should be treated as just another tool for speculation.

Serious investing consists of buying things because the price is attractive relative to intrinsic value, explained Marks. Speculation, on the other hand, occurs when people buy something without any consideration of its underlying value or the appropriateness of its price, solely because they think others will pay more for it in the future.

Related: What are ICOs and why is the SEC taking steps to protect investors from them?

Francisco Blanch, head of global commodities and derivatives research at Bank of America Merrill Lynch, earlier this week also stressed that for all the buzz generated by bitcoin, it still has some ways to go before it can be considered a legal tender.

Most regulated financial institutions allow their clients to borrow against financial or physical assets, but we are not aware of any major institution that takes cryptocurrency as collateral at the moment. Thus, in our view, a key step for bitcoin would be for it to become pledgeable collateral, he said.

Treasury Secretary Steven Mnuchin said cracking down on illicit activity in cybercurrencies is a focus of regulators. I share your concerns about bitcoin and others and them being used for illicit activity, said Mnuchin during congressional testimony on Thursday, referring to the recent arrest of a Russian man accused of laundering some $4 billion using bitcoins.

Meanwhile, prominent financial adviser Josh Brown, who proclaims to idolize Marks, had a bit of an existential take on the whole cryptocurrency debate.

He agrees with Marks that bitcoin isnt real and its value is based on nothing.

But so what? he asks. Nothing is real, in truth.

He goes on to argue that anything that doesnt appear in nature may not be realeven countries, religion, and currencies.

Read: Bitcoin may have reached a tipping point, now that Downtown Josh Brown just invested

Things become real enough when people begin to believe and agree that they are. The Declaration of Independence didnt make America real, it made people believe that it could be real and then will it into existence with their cooperation and their actions, said Brown.

Read more from the original source:
Howard Marks says bitcoin isn't realand we can all blame millennials for its rise - MarketWatch

The provider of a bitcoin exchange-traded note (ETN) in Sweden hassaid that it will track what the market considers to be "bitcoin" following a possible network split next week.

XBT Provider AB released a statementoutlining its plans ahead of what could be a split in the bitcoin blockchain on August 1, one pursued by the proponents of an alternative implementation called Bitcoin Cash. The first of two ETNs launched by XBT Provider went live in mid-2015 following approval by the Swedish government.

The firm said that, as the ETN holders don't actually possess any bitcoin, they won't be directly affected. But XBT Provider said it is moving proactively to protect the bitcoin holdings that the ETN tracks, steps which include safeguarding the assets themselves in the event of a chain split.

"The Guarantor's group companies have moved as much of their bitcoins held on account as is practicable in the circumstances to custodian infrastructure that will support both coins should a new coin result from the anticipated fork," the company stated.

Ultimately, the firm said it will align with whichever chain the market deems to be "bitcoin", explaining:

"The Issuer wishes to further clarify that its Certificates are designed to track "bitcoin" and not any alternative coin which results from a forking event and which shared a common transaction history prior to the fork. Therefore, the Issuer's Certificates will, after a fork, be referenced to the coin which the bitcoin community and exchanges define, and consider to be, 'bitcoin'."

This approach isn't set in stone, however, as XBT Provider will undertake a three-month observation period, during which it will wait and see which chain comes to attract the most support.

Train yard imagevia Shutterstock

The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Have breaking news or a story tip to send to our journalists? Contact us at [emailprotected].

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Bitcoin Investment Vehicle Adopts Open Strategy Ahead of Blockchain Fork - CoinDesk