Fewer Pronouncements of BTC’s Death in 2019, but Here Are the Top 5

Here are the top five Bitcoin “burials” of 2019 as negative sentiments seemingly decline.

Bitcoin has long been disregarded as a speculative asset class that is doomed to fail by mainstream media outlets around the world.

The apathy toward the world’s preeminent cryptocurrency has been embodied by countless articles that have either hailed the death of Bitcoin or predicted its impending demise.

For the past three years, Cointelegraph has reviewed the top annual Bitcoin obituaries courtesy of 99Bitcoins’ list of news articles that have unwittingly foretold the end of the cryptocurrency.

In 2017, Bitcoin and the overall cryptocurrency market saw the biggest surge in history, when BTC’s value soared to over $20,000 by December of that year. The lofty gains were eventually curtailed by a humbling price correction and stagnation that ensued for much of 2018.

Unsurprisingly, the number of Bitcoin obituaries skyrocketed during those years. In 2017, Bitcoin’s “death” was predicted 124 times, while 2018 saw that number reduced to 93. At the end of 2019, a full decade since Bitcoin’s inception, the number of articles proclaiming the end of the cryptocurrency had fallen to just 40.

In this listicle, Cointelegraph looks at the top five Bitcoin burials of the last year.

Bitcoin will go to zero

The annual World Economic Forum in Davos is a major event in the global financial and banking sphere, and cryptocurrencies have been part of its debates and forums over the past few years.

During a TV debate hosted by CNBC in Davos in last January, Bitcoin’s underlying protocol became a major point of contention in its potential future as a valued cryptocurrency.

BCG Digital Ventures Founder Jeff Schumacher highlighted concerns regarding the way in which Bitcoin derives value from its proof-of-work protocol — suggesting that its value could plummet to $0.

“I do believe it will go to zero. I think it’s a great technology but I don’t believe it’s a currency. It’s not based on anything.”

The debate itself was not centered around an attack on Bitcoin but a robust debate around the future of cryptocurrencies and the power of the protocols that underpin the blockchain technology used to keep them running.

Bitcoin is “absolutely worthless”

As Bitcoin’s price began to rebound from a lowly start in 2019, an article in Gizmodo slammed the cryptocurrency and people who have invested into the space. 

The author of the piece was scathing in his take on Bitcoin as the cryptocurrency bounced back to a four-month high following a difficult market climate in 2018.

“It’s fake money that’s about as practical to use in the real world as Monopoly bills.”

The writer also took aim at Bitcoin’s proof-of-work consensus algorithm, criticising the energy-intensive demands of recording transactions and maintaining the blockchain.

Bitcoin is a “digital game” — a SharkTank investor

In May 2019, renowned investor Kevin O’Leary of SharkTank fame likened Bitcoin to playing a “digital game” in an interview on CNBC’s Squawk Box.

O’Leary’s comments came as Bitcoin was sharply appreciating in value midyear. His major criticism was that investors could not take large sums of value in and out of Bitcoin because buyers demand a guarantee on the value of BTC they’re receiving.

O’Leary made reference to his own efforts to buy real estate in Switzerland using Bitcoin, with the difficulty being that the receiver of such a large amount of Bitcoin is not ready to trade other assets due to the risk associated with BTC’s price volatility.

“To me, it’s garbage, because you can’t get in and out of it in large amounts.”

Buffett — Bitcoin is a “gambling device”

Globally respected investor Warren Buffett, founder of Berkshire Hathaway investment group, has long been a dissenting voice towards cryptocurrencies and Bitcoin in particular.

Earlier this year, Buffett cast fresh aspersions on the space while speaking to the press ahead of his company’s annual meeting.

Buffett went as far as saying that Bitcoin had become a “gambling device” and that the cryptocurrency hadn’t produced anything.

“I’ll tear off a button here. What I have here is a little token… I’ll offer it to you for $1000, and I’ll see if I can get the price up to $2000 by the end of the day... But the button has one use and it’s a very limited use.”

While slamming Bitcoin, Buffett gave credit to the power of blockchain technology while pointing towards JP Morgan’s recently developed blockchain products.

Bitcoin not built to last

An article in the New York Post speculated in June that Bitcoin would not survive in the future, despite another price surge occurring that same month.

The cryptocurrency had jumped up to $13,000, marking a massive increase in value from the beginning of the year, when it was hovering around $3,000. 

The author of the article suggested that the surge could have come down to Facebook’s reveal of its Libra cryptocurrency plans, which may have boosted market sentiment in the cryptocurrency sector.

The argument suggested that Facebook’s product is something that provides real value and could be the catalyst that leads to the demise of Bitcoin.

“In fact, it might spell the beginning of the end for bitcoin. There are almost no major Wall Street investors of substance with meaningful track records who have invested in bitcoin. To me, it’s fool’s gold. There are no financial statements, no balance sheets, no revenues or assets.”

Dawn of a new decade

A decline in the number of sweeping statements made about the future lifespan or looming demise of Bitcoin and cryptocurrencies is an interesting development in the space.

The dawn of 2020 brings down the curtain on the first decade of the crypto era. Bitcoin led the way with its inception in 2009, and the space has subsequently exploded over the past 10 years.

Coinbase CEO Brian Armstrong wrapped up his take on the last decade in a blog post early in the new year, in which he vilified the multitude of articles which had inaccurately written off Bitcoin.

“There were over 379 articles written, prematurely declaring the end of Bitcoin. Not only did Bitcoin survive, it thrived, becoming the top performing asset of the decade. The naysayers were proved wrong and we learned an important lesson about human nature: most big breakthroughs are contrarian ideas that people dismiss and ridicule at the start.”

As Armstrong suggests, the success and adoption of Bitcoin birthed an era of innovation that spawned a plethora of cryptocurrency and blockchain projects that have driven the development of the space.

Toward the end of the decade, the interest in the space spilled into mainstream industries. The world’s best investment firms started gaining exposure to crypto while some of the biggest companies began using blockchain technology or developing their own enterprise software and tokens.

A combination of all of these factors may be the reason for the significantly fewer Bitcoin obituaries being published. The focus seems to have shifted to major developments in the space, like Facebook’s Libra cryptocurrency plans and moves by regulators around the world.

BitFlyer Now Offers US Users 0% Fees When Buying Bitcoin With USD

Tokyo-based cryptocurrency exchange bitFlyer launched its commission-free campaign for BTC/USD trading pair to its U.S. customers.

People in the United States now have another zero-fee option to buy Bitcoin (BTC) with the U.S. dollar.

On Jan. 30, Tokyo-based cryptocurrency exchange bitFlyer launched its commission-free campaign for BTC/USD trading pair to its U.S. customers.

bitFlyer USA operates in 47 states in the U.S. and holds New York BitLicense

The zero-fee feature is only available for the BTC/USD trading pair and has been implemented on bitFlyer’s pro trading tool, bitFlyer Lightning, the firm noted in a blog post. The campaign is automatically applied to all new and existing bitFlyer USA customers clients, while the end date of the campaign period is to be defined. bitFlyer noted that they will announce any changes about two weeks in advance.

While bitFlyer is headquartered in Japan and has a subsidiary in Europe, the new opportunity is an exclusive offering of bitFlyer USA, the U.S. arm of the exchange that was launched in the U.S. in November 2017.

Currently operating in 47 states and territories in the U.S., bitFlyer is a bearer of a major cryptocurrency license known as BitLicense, which allows crypto businesses to legally provide crypto-related services in New York state.

What are the regular fees

According to the official website of bitFlyer, the company usually takes 0.00000001 BTC or one satoshi per “unit of transaction” of Bitcoin, which is less than one cent at press time. bitFlyer’s regular withdrawal fee for Bitcoin amounts to 0.0004 BTC ($3.7), while the one of Ether’s (ETH) accounts for 0.005 ETH or about $0.9 at press time. There’s also a $10 fee to wire USD out of a bitFlyer account.

Transaction fees on bitFlyer

Transaction fees on bitFlyer. Source: bitFlyer

As part of the newly announced campaign, bitFlyer USA is also announcing its first-ever trading competition in the U.S., the company’s representatives said in an email to Cointelegraph. Called “Trade Grand Prix,” the upcoming contest is open to all users in the U.S. and will reward the top 10 traders a total of $1,600 based on their weekly and daily trading volumes. The competition will start on Feb. 10, the exchange noted.

Founded back in 2014, bitFlyer claims to be the the “most used virtual currency exchange in Japan.” The exchange is also operating a fully-owned subsidiary in Europe, bitFlyer EUROPE S.A., which is located in Luxembourg.

bitFlyer’s zero-fee Bitcoin purchasing option enters the U.S. crypto market to follow other firms in the industry already offering cryptocurrency trading with no fees. As such, American stock brokerage Robinhood Crypto is a major provider of zero-fee crypto trading, allowing customers to trade seven major cryptos with no commission fee. In late September 2019, California-based financial firm SoFi launched commission-free crypto trading on its platform SoFi Invest.

Bitcoin SV Volume is Heavily Manipulated, Data Finds

bitcoin sv wash trading

Timothy Peterson, CFA at Cane Island Alternative Advisors, tweeted about Coinmetrics’ recent findings on Bitcoin SV (BSV) transactions, which show extremely high levels of wash trading.

Bitcoin Satoshi’s Vision, or Bitcoin Scam Version?

Bitcoin SV, the cryptocurrency led by self-proclaimed Satoshi, Craig Wright, seems to have heavily manipulated transaction data, according to a report by Coinmetrics. Bitcoin SV has been controversial since its inception, not only because it was created as a contentious fork which caused a messy split of the Bitcoin Cash (BCH) blockchain, but also because of the involvement of Craig Wright and Calvin Ayer with the project.
Looking at the data, Timothy Peterson noted that the average transaction amount on the BSV chain is smaller than 1/10th of a cent. Furthermore, the network currently reports that it handles around 700,000 transactions of these extremely small transactions each day.

(1/2) The median (middle) transaction value for $BSV is less than 1/10 of one cent. This is an economically meaningless value. Txns have soared to 700k/day, meaning there are hundreds of thousands of fractional cent txns being processed daily…. pic.twitter.com/URIEYZBWSz
— Timothy Peterson (@nsquaredcrypto) January 31, 2020

 
This can lead to only two conclusions, either BSV is being used to process almost a million micro-payments every day, which eclipses the volume of the Lightning Network, or the volume is being spoofed by trading bots to fake activity. Seeing that there are only 40,652 active BSV wallet addresses, it’s highly unlikely that these transactions are genuine.

(2/2) Only explanation is automated wash trades to inflate $BSV stats and pump price. This is what price manipulation looks like. Data: @coinmetrics. cc: @Bitfinexed
— Timothy Peterson (@nsquaredcrypto) January 31, 2020

Do People Even Use BSV?
Craig Wright has claimed to be the anonymous creator of Bitcoin, Satoshi Nakamoto, for years but has been called out many times. He has been unable to provide conclusive proof to substantiate his claims, and much of the proof he has provided has been completely discredited.

Confirmed: Craig Wright doesn’t have keys to $8 billion of Bitcoin (via @decryptmedia) https://t.co/orkv9yNsjd
— Dan Hedl (@danheld) January 17, 2020

With new data hinting that transactions are being faked on the BSV chain, it calls into question just how much usage the chain actually has, if any at all. Most of the onchain transactions on BSV come from a single weather app, with as much of 96% of transactions being from this one app.
Bitcoin SV claims to have a lot of different apps, but it seems that only the weather app is being used at all. Even the weather app’s purported usage is spurious, detractors say it’s just taking data from a weather data site and writing it on the BSV blockchain. It’s not that Bitcoin SV users are obsessed with the weather, and using the app constantly to check the forecast.

Yes I agree BSV can be useful as a kind of minimum level of intelligence test. But I think you are one of those that failed it😁
— Andrea Chiavazza🇪🇺🇵🇸🇮🇷 (@ndrchvzz) November 24, 2019

Bitcoin SV has been jokingly called an intelligence test by the rest of the crypto community because of the poor reputations of its main supporters, the controversy surrounding Craig Wright’s claims to be the creator of Bitcoin, and because of the strange data surrounding BSV transactions.
Do you think BSV is spoofing it’s transaction data? Let us know in the comments!

Images via Shutterstock, Twitter @ndrchvzz @danheld @nsquaredcrypto, charts by Coinmetrics The post appeared first on Bitcoinist.com.

Crypto Exchange Zebpay Reopens in India Despite Banking Ban

Singapore-based crypto exchange Zebpay opens its doors to Indian clientele once again after a 16-month hiatus.

Singapore-based crypto exchange Zebpay reportedly returns to the Indian market more than a year after an Indian Reserve Bank crackdown led to the exchange’s closure in the country. 

After discontinuing Indian services in late 2018, Zebpay will open its exchange for the country once again, although the central bank ruling that caused its demise has not changed, IBS intelligence wrote on Jan. 29, Citing “reports.” 

Shutdown in the face of regulation

In September 2018, Zebpay halted exchange availability in India after the Reserve Bank of India, or RBI, forbade banks from serving crypto companies. 

Although it closed operations in India, Zebpay announced expansion to Australia in May 2019, showing the outfit was still alive and growing. 

Comeback in spite of limitation

The RBI ban has not changed, but Zebpay has decided to open its doors to Indian customers once again anyway, according to IBS intelligence. 

Surrounding the rebound, Zebpay has updated its company brass, including a new CFO and CMO. The outfit also touts added features and crypto-based trading pairs. Additionally, the exchange expects to open an avenue for involvement in mutual funds, IBS wrote. 

The past several months have yielded numerous sessions in front of India’s Supreme Court on the RBI ban in an attempt to gain clarity on the situation. 

Cointelegraph reached out to Zebpay for comment, but received no response as of press time. This article will be updated accordingly upon receipt of a response.

USDT Moves Every Eight Days on Average, Data Shows

Recent data shows Tether’s USDT stablecoin moves 46 times per year, on average.

Recent data from crypto data site Coin Metrics shows USDT tokens change locations every eight days on average. 

“The trailing 12 month velocity of @Tether_to on Omni, Ethereum and Tron has rapidly and consistently increased since September and currently sits at ATHs, where on average each $USDT turns over 46 times per year,” Coin Metrics posted on its Twitter account on Jan. 31. 

Moving on three blockchains

Tether, one of the crypto industry’s oldest stablecoin operations, originally built its USD-pegged token on Bitcoin’s Omni token layer. Tether also operates on Ethereum’s blockchain as an ERC-20 token.  

Several years after its inception, Tether issued USDT on Tron’s blockchain in 2019 as an added market option.

Based on Coin Metrics’ tweet, all three blockchains currently host all-time high USDT transaction numbers, in terms of how often each USDT token moves from any given location. 

Crunching the numbers

According to the numbers Coin Metrics listed, each USDT on the market moves approximately 46 times per year on average. 

Taking into account a 365-day year, this would mean an average USDT moves approximately every eight days. 

Such movement shows that the market still uses USDT regularly, even after years of insolvency doubts, lawsuits and questions.

Authorities subpoenaed Tether and allegedly related exchange Bitfinex near the end of 2017 on questions of solvency. 

In 2018, a law firm came forward, stating sufficient backing for USDT. As of recently, Bitfinex sits in the spotlight, facing four lawsuits for alleged market manipulation in 2017. 

Cointelegraph reached out to Coin Metrics for additional comment but received no response as of press time. This article will be updated accordingly should a response come in.

Centralized Exchange ACX Freezes Withdrawals Following “Audit”

Centralized cryptocurrency exchanges are a growing problem in the industry. Especially when they either disappear for a while without warning or suspend withdrawals out of the blue. 

In the case of ACX, an Australian exchange, customers are genuinely concerned.

ACX Is Auditing Internal Funds

That is only normal, as no one can withdraw funds from the platform at this time.

This has all taken place after a surprise audit, indicating that the company may have been hacked. 

What is even more worrisome is how this problem has existed for several weeks.

No official explanation is given, and it appears that the company’s office in Melbourne may no longer be operational.

Why the exchange is remaining very quiet as to what prompted the audit, is unclear at this time.

If a hack had occurred, they could simply say so.

The message on the platform mentions how both the hot and cold wallet will be audited accordingly. 

That will only further fuel speculation as to what has gone on with ACX. 

Assuming funds has been lost or stolen, it would only be the umpteenth exchange to go through such an ordeal.

Centralized cryptocurrency exchanges are sometimes incapable of managing customer funds properly.

As such, it is better to move money to one’s own wallet as quickly as possible. 

Image(s): Shutterstock.com

The post Centralized Exchange ACX Freezes Withdrawals Following “Audit” appeared first on NullTX.

Cardano Up 47% in 2020, But Does Blockchain’s Usage Warrant it?

Like many crypto assets, the price of Cardano (ADA) has increased over the opening month of 2020. Starting the year at around $0.033, the digital currrency now trades at more than $0.054. Although the same could be said about many of the thousands of other digital currencies, the gains do not appear to be based on actual usage. In fact, a look at the Cardano blockchain shows that very few people are using the cryptocurrency at all. Cardano Clearly a Long Way from Mass Adoption According to data taken from its blockchain, hardly anyone is using Cardano. The tenth most popular crypto asset in terms of market capitalisation routinely sees blocks that are completely empty. When they’re not empty, they contain just a handful of transactions. Pointing this out is software developer Joshua Henslee. Henslee tweeted the following yesterday: #Cardano has more 'blocks' than transactions….https://t.co/TG7TmplCNt — Joshua Henslee (@cryptoAcorns) January 30, 2020 A look at Cardano’s blockchain, via Blockchair.com, confirms the lack of network use. At the time of writing, 66 of the last 100 blocks contained no transactions whatsoever. Other blocks contain only one or two transactions. None of the previous 100 blocks NewsBTC looked at on the network’s official explorer contained more than 10 transactions. This has resulted in a situation where those mining ADA have added more blocks than the total number of transactions. At press time, there had been only 3,057 transactions over a total of 4,320 blocks. Evidently, actual use of Cardano is incredibly low. Will Upgrades and Partnerships Help Promote Adoption? Although the number of transactions occurring on the Cardano network is cause for concern, upcoming developments for the network may promote greater use going forward. As NewsBTC reported days ago, Cardano founder Charles Hoskinson just announced a major partnership with accountancy giant PwC. The partnership is part of a marketing drive by those behind the cryptocurrency. The aim is to promote the blockchain system as one suitable for deployment by commercial interests. Related to this are upgrades in the works to move the network to a proof-of-stake system and to add smart contract functionality. These updates, along with efforts to consolidate operations with the help of PwC, may indeed see the network experience greater use than it does at present. Clearly, the price action for Cardano so far in 2020 is based entirely off speculation for what the system might achieve in the future. The on-chain data above shows that the network is seeing very little actual use that might drive price right now. Whilst the markets of most cryptocurrencies are heavily based on speculation, most top ten digital assets do actually see some use. Bitcoin, for example, is emerging as a store of value for billions of dollars, Ethereum has a rapidly expanding DeFi ecosystem, and even Bitcoin SV has that weather application its proponents are so impressed by.   Related Reading: Last Year’s Top Crypto Market Performers Are Lagging Behind Altcoins in 2020 Featured Image from Shutterstock. The post appeared first on NewsBTC.

Europe’s First Crypto License Issuer Warns of New Unregistered Crypto Firm

The Commission de Surveillance du Secteur Financier of Luxembourg has spotted another unregistered crypto company.

Major European financial regulator, Luxembourg’s Commission de Surveillance du Secteur Financier (CSSF), has spotted another unregistered crypto company.

The firm, Crypto Bull, operating under the url crypto-bull.io, claims to be based in Luxembourg while it does not have permission to provide crypto services in the country, the CSSF announced on Jan. 31.

The warning notice reads:

“The CSSF informs the public that this entity has not been granted any authorisation to provide investment services or other financial services in or from Luxembourg.”

The unregistered firm wants to provide services to British, Spanish and Russian users

According to the website, Crypto Bull positions itself as a “reliable and technologically oriented” platform for cryptocurrency trading. Claiming to be located at 2, place de Paris, 2314 Luxembourg, Crypto Bull does not explicitly note whether the company is licensed or not.

The firm seems to be directing its services to users in the United Kingdom, Spain and Russia, according to the three relevant company phone numbers on the website.

With its domain purportedly registered in February 2019, Crypto Bull has apparently had a chance to mislead some crypto users. In fact, some online reviews claim that the firm is not a legitimate investment platform but rather a crypto Ponzi scheme. Other reviews say that Crypto Bull has already come into the spotlight by authorities in Italy and Spain and was blacklisted as a scam.

Luxembourg was the first European country to license a crypto exchange

Meanwhile, Luxembourg has been friendly to the crypto industry as the country houses major global cryptocurrency exchanges like Bitstamp. The CSSF, which regulates Luxembourg-based crypto exchanges, reportedly issued Bitstamp the first crypto license in Europe back in 2016.

As previously reported by Cointelegraph, the government of Luxembourg views cryptocurrencies as “intangible assets” that are not subject to income tax until they are exchanged for fiat. As such, all crypto-related transactions were reportedly exempt from VAT within Luxembourg as of August 2019.

In line with supporting the development of the local crypto ecosystem, Luxembourg authorities have been actively monitoring the market for potential scammers and fraudsters. In September 2019, the CSSF red-flagged the activities of a fraudulent clone website that is impersonating cryptocurrency payment services provider BitPay. Previously, the regulator issued a warning against Cryptominingoptionsignal, another crypto-related entity that claimed to be licensed in Luxembourg.

These Are the Most Traded Tokens on Decentralized Exchanges Right Now

These Are the Most Traded Tokens on Decentralized Exchanges Right Now

The decentralized exchange landscape is evolving fast, with new liquidity aggregators and relays enhancing usability while reducing slippage. Trade volumes are also strong across the leading ERC20 DEXs and Binance DEX. The bulk of this volume is captured by a small proportion of tokens, however, whose demand augurs well for the projects and the DEXs they dominate.

Also read: Ethereum’s Value Transfer Is Now Dominated by Stablecoins

Verasity Is Binance’s King of the DEXs

On Binance DEX, the decentralized exchange that operates on the eponymous Binance Chain, verasity (VRA) is out in front, with 19% of all trades. Verasity is an attention-based video and gaming platform that enables content creators to earn tokenized rewards. Rather than trying to create a crypto-friendly Youtube, a la Dlive, Verasity is designed to integrate into existing platforms such as Twitch, Youtube, and Vimeo.

These Are the Most Traded Tokens on Decentralized Exchanges Right Now

Behind the scenes, Verasity has been busy, gaining an entry into Asia’s lucrative streaming market through a partnership with Jun Capital, while a token burn has seen 17% of VRA’s supply removed from circulation. In Q4 2019, the project reported a 20x increase in videos viewed and a 10x increase in wallet registrations. VRA is currently listed on six exchanges, with the volume on Binance DEX exceeded only by that on Hitbtc.

Stablecoins Dominate Kyber Network

In keeping with Ethereum’s evolution into a stablecoin network, the most traded coins on Kyber’s DEX are all dollar-pegged assets. The most popular of these is multi-collateral dai ($890K 24-hour volume), USDT ($384K), and USDC ($282K). This is followed by wrapped bitcoin (WBTC) and wrapped eth (WETH), with link the leading altcoin on Kyber, with $147K in trades. Kyber Swap – the token swapping platform created by Kyber Network – has processed over $500M of trades since launching, and in December added support for Ethereum Name Service (ENS) token transfers.

These Are the Most Traded Tokens on Decentralized Exchanges Right Now

Maker and Augur Are Uniswap Favorites

On Ethereum token exchange protocol Uniswap, dai is the most traded currency ($420K), followed by Maker’s MKR governance token ($204K), Augur’s REP ($183K), and synthetix (SNX, $165K). Fifth and sixth spot are taken by stablecoins – SAI and USDC – before HEX makes an appearance at seventh with $115K in volume.

These Are the Most Traded Tokens on Decentralized Exchanges Right Now

Unibright Tops the IDEX Charts

IDEX, the leading decentralized exchange for years, lost ground when it introduced KYC. The exchange nevertheless maintains a lead over its Ethereum counterparts, recording 24-hour volume of $738K. The leading token by far is unibright (UBT) with $264K. The token is up 55% in 24 hours, which accounts for its high trading volume, which has surpassed $1 million across all exchanges.

Unibright is an enterprise-oriented blockchain project that’s focused on helping businesses integrate tokenization and distributed ledger technology. It’s unclear why the UBT token has spiked in value, though speculative trading is the likeliest cause.

These Are the Most Traded Tokens on Decentralized Exchanges Right Now

Uniswap and Token Aggregators Make Gains

Crypto Differ has published data showing that Uniswap was the biggest winner in December, increasing its volume by 33% and its traffic by 29%, while other Ethereum DEXs, save for IDEX, lost market share. Conventional Ethereum DEXs are also losing ground to token aggregators, which achieve the best rate for buyers by splitting orders across multiple DEXs in a single transaction. 1inch exchange is the leader here, seeing its volume increase 50% to $15M this month. It’s followed by DX.ag and Totle, the trio handling $1.7M in weekly volume.

Decentralized exchanges still account for only a fraction of crypto trading, but the rate of innovation and ecosystem growth augur well. On Jan. 28, 0x launched its own liquidity aggregator, combining the order books of Kyber Network, Uniswap, and Oasis. As user experience and liquidity improve, and the defi movement gathers pace, DEXs can expect to break new records this year, even if they won’t be challenging CEXs anytime soon.

Do you trade on DEXs? If so, which platforms do you recommend? Let us know in the comments section below.


Images courtesy of Shutterstock and Crypto Differ.


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

The post These Are the Most Traded Tokens on Decentralized Exchanges Right Now appeared first on Bitcoin News.

This Eerily Accurate Fractal Suggests Bitcoin Will Soon Explode to $12,000

After facing a constant stream of buying pressure that led Bitcoin’s price to climb as high as $9,550, BTC faced a large influx of overnight selling pressure that sent it reeling down to lows of $9,200 before it found some support. The sharp decline from $9,550 does make this 2020 high look like a local top for the cryptocurrency, and it is a strong possibility that the crypto sees some further short-term downside. In spite of this, one eerily accurate fractal pattern formed between May and June of 2019 that BTC has been closely following is suggesting that BTC may now enter a consolidation phase before moving up towards $12,000 in an explosive movement. Bitcoin’s Rally Stalls After Firm Rejection at $9,550 At the time of writing, Bitcoin is trading down over 1% at its current price of $9,275, which marks a notable rejection from its daily highs of $9,550 that were set at the peak of yesterday’s rally. The overnight decline from these levels led the crypto to erase all the gains that came about in the later part of this week, when BTC raced from lows of $9,200 on Wednesday to its recent highs of $9,550. Although this latest pullback hasn’t been too deep when the magnitude of Bitcoin’s recent gains is kept in perspective, it is important to note that it marked a break of the crypto’s bull trend on its 4-hour chart. Big Cheds, a popular cryptocurrency analyst on Twitter, spoke about this in a recent tweet, while pointing to a chart showing the key EMA levels that Bitcoin just broke below. $BTC #Bitcoin 4 hour – Trend break https://t.co/SfWIxU5RAF pic.twitter.com/0v6kYiVCUD — Big Cheds (@BigCheds) January 31, 2020 This Fractal Suggests BTC Could Soon Rally to $12,000 One factor that investors should keep in mind is that BTC has been closely tracking the price action seen in May-June of 2019, with the eerily similar price action suggesting that the crypto could now see a short bout of consolidation before moving up towards $12,000 in an explosive movement. Galaxy, another popular crypto analyst, spoke about this fractal in a recent tweet, noting that BTC could soon break the $10,000 barrier and move to $12,000 after a short period of trading sideways. “Today & May-June ’19 similarities are interesting to watch. By looking at this fractal, we are now in a consolidation before entering the next bull move & break the $10K barrier. RSI also bounced in the exact same area as it did back then,” he explained. Today & May-June '19 similarities are interesting to watch. By looking at this fractal, we are now in a consolidation before entering the next bull move & break the $10K barrier. RSI also bounced in the exact same area as it did back then.$BTC pic.twitter.com/q9dT4xm5NP — Galaxy (@galaxyBTC) January 31, 2020 If this fractal continues playing out, then Bitcoin may soon see a rapid – albeit potentially brief – parabolic surge into the five-figure price region. Featured image from Shutterstock. The post appeared first on NewsBTC.

Over 75% of Bitcoin in Circulation Are in Profit

bitcoin price going strong

Latest figures show that over three quarters of all existing bitcoin (76.05%) are in profit, meaning that the value is currently higher than last time it was moved. While this ratio fluctuates, historically it has remained above 50% for almost the entire history of Bitcoin.

HODLing Bitcoin Pays Off
As may be expected, there is a strong correlation between the ratio of bitcoin currently in profit and BTC price. During periods when bitcoin price has been pushing upwards to all-time and local highs then of course, profitability numbers will increase.
Similarly, in the periods when price crashes following price highs, the percentage of bitcoin in profit will go down. Although, notably, rarely to lower than 50%, and never to less than 40%.

Boom and bust cycles saw profitability numbers dip below half of all bitcoin in 2011, 2015 and 2019, towards the very bottom following the crash. However, the lowest ever recorded value was still 40.5%, following the crash from over $1,100 down to $226.
Even then, over 40% of bitcoin held was still in profit, showing both the benefit and popularity of a long-term HODLing strategy.
High Prices Means High Profitability
The steady growth period from the end of 2016 through to the end of 2017 showed the benefit that a prolonged uptrend could provide. The percentage of circulating bitcoin in profit never dropped below 80%.
In fact, on two occasions, in early May and November, profitability numbers reached record levels of over 99%. BTC price at these times was $1575 and $7234 respectively.
The slump through 2018 saw numbers fall to only 41.5% of circulating bitcoin in profit, although 2019’s rally brought numbers back up to over 92% in June.
Profitability numbers followed price back down, but only as low as 56%, before recovering to their current level of 76.05%.
HODL For The Future
Of course, bitcoin price has spent the past week on an upwards trajectory, adding over $1,000 in the course of the past five days. This means that the current profitability percentage is likely to be even higher.
As Bitcoinist reported, bitcoin price has this year bucked the January tradition by having a phenomenal month. As the month draws to a close, bitcoin is up 32%, a feat which, if repeated every month for the rest of the year, would see BTC close out 2020 with a price of over $150k.
HODLing sounds like a better strategy than ever right now.
What’s the longest you have held Bitcoin for? Let us know in the comment section below!

Images via Shutterstock The post appeared first on Bitcoinist.com.

Bitcoin Price Drops 3% on Brexit and Coronavirus Case in the UK

The BTC/GBP pair declined by 3% as Brexit occurred and a case of coronavirus turned up in the United Kingdom.

Bitcoin price (BTC) has been declining amid the recent coronavirus developments as today media reported that patients in the UK and Russia tested positive for the virus. The declining trend has been followed by major cryptocurrencies. 

Cryptocurrency market daily overview. Source: Coin360

In a day that will mark the departure of the United Kingdom (11 p.m. UTC) from the European Union and the confirmation of 2 cases of coronavirus virus infection in the UK, BTC/GBP pair has been declining by more than 3.7% since midnight.

Looking at the 15-minute timeframe, Bitcoin was trading near ‎£7,274 at midnight and started to decline steadily throughout the early morning.

BTC GBP 15-minute chart. Source: TradingView

Since 1:30 p.m., around the time most American and British news outlets reported on the confirmation of coronavirus, Bitcoin’s intraday price trend has been volatile. The digital asset reached a daily low of £7,015 around 2:30 p.m. with a slight recovery at £7,086 (around 4 p.m.). Shortly thereafter, the digital asset ended up declining again, nearly dropping to a daily low at 4:50 p.m.

 

BTC GBP 5-minute chart. Source: TradingView

As reported earlier by Cointelegraph, Bitcoin price declined after the coronavirus was confirmed in the U.S. and a similar effect seems to be happening in the BTC/GBP price as the health threat reaches a global presence. On the same page, the S&P 500 and the Dow Jones Industrial Average Indexes are down by more than 1% for the day.

Following the same trend, the FTSE 100, the main stock index for companies in the UK, declined more than 1%. However, the GBP/USD exchange rate was up today, contradicting the global stock market trend and suggesting an opposite behavior to Bitcoin.

The overall cryptocurrency market cap now stands at $255.7 billion and Bitcoin’s dominance rate is 66.2%. A handful of large-cap altcoins also mirrored Bitcoin’s losses. Most notably, Bitcoin SV (BSV) is down more than 8% and Bitcoin Cash (BCH) more than 5%. EOS is also down by more than 5%. On the winning side, NEM has gained more than 8% and Ontology (ONT) rallied 6%.

Keep track of top crypto markets in real time here

How Fund Managers View Lending and Staking: 3 Takeaways From a CoinDesk Research Webinar

In December, we invited two fund managers, both long bitcoin and other crypto assets, for a CoinDesk Research webinar on lending and staking. Jordan Clifford of Scalar Capital and Kyle Samani of Multicoin Capital joined us to discuss how they evaluate risk and returns in crypto lending and staking, what crypto assets' risk-free rate might look like, and what DeFi needs to do to attract investors and new users.

Craig Wright Talks Bitcoin SV with Senior UK Politicians, Says nChain Exec

Rumours are circulating that the main Bitcoin SV (BSV) proponent Craig Wright has been in private talks with members of the UK’s House of Lords. An nChain executive said Wright spoke for the senior British politicians yesterday. Osmin Callis claims that Wright used the opportunity to explain Bitcoin SV’s benefits to the senior legislative house. Those in attendance were reportedly welcoming of his ideas. Did Craig Wright Really Just Shill Bitcoin SV to UK Politicians? Craig Wright is perhaps the cryptocurrency industry’s most controversial character. Whether rightly or wrongly, most in the industry know him firstly as the man who lied about creating Bitcoin. There are many doubters to Wright’s version of events. Those who have studied his claims in detail have discovered various inconsistencies within the story. An overwhelming majority of those interested in cryptocurrency, therefore, refuse to believe Wright could have been integral to the creation of Bitcoin. Wright claims BSV, a hard fork of Bitcoin Cash (itself a hard fork of Bitcoin), is closer to the original vision of Bitcoin than what he calls Bitcoin Core (BTC). His company, nChain, has spent the last few years patenting various ideas relating to blockchain technology. Wright recently claimed in an interview reported by NewsBTC that central banks wanting to create their own digital currencies might benefit from either adopting Bitcoin SV or consulting with nChain. Memorable evening at the House of Lords watching Craig give a rousing speech to a private audience, explaining the benefits of bitcoin to government and society. Great intro from @SebPloetzeneder.They were really warm and welcoming to him and his ideas. When you know, you know.😉 — Osmin Callis (@CallisOsmin) January 30, 2020 If recent rumours are true, it looks like Wright is already talking Bitcoin SV with some pretty powerful people. Business developement manager at nChain, Osmin Callis, claims Wright spoke at the House of Lords last night to private audience. Osmin says that Wright explained the benefits of the cryptocurrency to the unknown audience. The wording of the above tweet strongly hints that those in attendance are members of the UK government. Wright/House of Lords Meeting Still Very Much a Rumour Unfortunately, NewsBTC was unable to find anything in the way of documentation to support Callis’s claims. However, lending some credence to claim is the fact that Wright’s right hand man and fellow Bitcoin SV advocate Calvin Ayre retweeted the above post today. Callis doesn’t give much detail about what supposedly went on at the meeting. She claims Wright spoke to a “private audience” and he explained “the benefits of bitcoin to government and society” to them. She does not, however, elaborate as to who exactly was present. The only other details we have at present are that nChain’s business education and communications manager Sebastian Plötzeneder introduced Wright and that the Lords were “welcoming” to both Wright himself and his ideas. Little more than a rumour at present, NewsBTC will bring further updates on this story as it continues to develop.   Related Reading: This Billionaire Bitcoin Investor Gives 3 Catalysts That Could Send Price Flying Featured Image from Shutterstock. The post appeared first on NewsBTC.

Last Year’s Top Crypto Market Performers Are Lagging Behind Altcoins in 2020

Last year’s most successful investments in the crypto market are strangely lagging behind the year’s top-performing altcoins thus far. Is this a sign of things to come, or are oversold assets simply correcting more powerfully than assets that have had less overall drawdown? Bitcoin and Exchange Tokens Lag Behind Altcoins in 2020 2019 was the year of the exchange token, led primarily by the native cryptocurrency token of the leading crypto exchange by trading volume, Binance. Binance Coin has among the most utility in the crypto market, offering holders of the asset discounts on trading fees, access to voting privileges, and the ability to buy into new altcoin projects via initial exchange offerings. Related Reading | Exchange-Related Tokens Dominate Crypto ROI Last Year  IEO coins like Matic, BitTorrent Token, and others, went on to be some of the most hyped altcoins of 2019. IEOs, however, have since been demonized, being called “unregulated crypto-casino fundraising mutations” by a former SEC chief, causing them to lose much of the luster they had throughout 2019. The success of Binance Coin has prompted other crypto platforms to launch native utility tokens of their own. The year closed out with Bitfinex’s UNUS SED LEO and Huobi’s token leading the charge as some of the top-performing altcoins of the year last year. But this year, exchange tokens have been underperforming collectively. Bitcoin was also a top performer during 2019, rising in dominance substantially and cannibalizing the altcoins space in its wake. In 2019, a year in which Bitcoin outperformed the majority of alts, exchange tokens were a bright spot, with most returning gains vs. $BTC. In 2020, a year that (so far), has numerous alts outperforming bitcoin, exchange tokens have underperformed (ex. $BNB). pic.twitter.com/VmMhW8FL5r — Ceteris Paribus (@ceterispar1bus) January 31, 2020 Crypto Comeback: Why Alts Are Overperforming the Rest of the Market Come 2020, though, despite Bitcoin rising as much as 30% since the start of the year, it has been underperforming other assets like Ethereum, Litecoin, EOS, and many others in the top ten cryptocurrencies by market cap. Bitcoin and exchange tokens may have crushed altcoins in 2019, but in 2020, it appears that the altcoin market is prepared to make up for lost ground, and will leave Bitcoin and exchange tokens in their dust. The increased performance is likely due to just how oversold and illiquid altcoin markets are currently after two full years of a bear market and drawdown. Altcoins have fallen by as much as 99% in value, so very little buy power can send altcoin prices flying. Still, many alts remain relatively stagnant, including XRP and Stellar. XRP has underperformed the rest of the crypto market top 10, and Stellar’s performance surely hasn’t lived up to the altcoin’s namesake. Related Reading | Ravencoin, HoloChain, and Binance IEO Altcoins Expected To Skyrocket Next Bull Run  The early rise in altcoins could lead to a full-blown alt season where altcoins vastly outperform Bitcoin for a period of time, resulting in massive rallies not only in USD value but BTC value as well. Featured image from Shutterstock The post appeared first on NewsBTC.

Bitcoin Cash Receives European Bank Custody Support

Bitcoin cash custody bank frick

Bitcoin Cash will be available for purchase through Liechtenstein’s Bank Frick. The small bank, which has opened its services to supply leading crypto coins, will also offer BCH custody for clients.

Bank Frick Offers Fiat Options to Buy Bitcoin Cash
Bank Frick has finally added Bitcoin Cash to its list of supported crypto tokens, including BTC, ETH, XRP, and LTC. Now, customers will be able to purchase BCH with Swiss francs, euro, and US dollars. Stefan Rauti, Head of Blockchain Banking at Bank Frick, commented on the new partnership,
By adding Bitcoin Cash, we are offering our clients yet another way to diversify their portfolios
He continued,
We are pleased to be able to offer this attractive cryptocurrency, which underlines our position as Europe’s leading blockchain bank.
Bank Frick has selected a relatively wide array of altcoins, offered at a time when those assets held a higher appeal. The bank offers the purchase and custody of less popular cryptocurrencies also, including Ethereum Classic (ETC), NEM (XEM), Qtum (QTUM) and Stellar (XLM). The offerings are not unique in the crypto space, but the fact that Bank Frick has remained interested in cryptocurrencies over the years remains encouraging. The bank also offers a secure channel to purchase cryptocurrency for fiat.
For now, the cold storage vault will be reserved for miners, institutional clients, and high net worth individuals. The bank follows the trend of offering custodial services as a more secure mode of owning coins, in comparison to keeping them with exchanges.
Kraken Exchange Uses Bank Frick, with Caution
Bank Frick is no stranger to the fintech sector, and its speciality is providing banking services for intermediaries. The bank is one of the partners of the Kraken exchange, serving SEPA transfers for the Eurozone.
But using Bank Frick comes with a warning. Because the bank is small, the Kraken exchange has reserved its right to suspend withdrawals for 72 hours after first receiving a deposit from this bank, as well as a handful of other German banks. In any case, the crypto space has veered away from the largest banks, resorting to smaller entities to serve their transactions.
Bitcoin Cash has received criticism for its approach to challenging Bitcoin. But the coin is among the most liquid assets, and is offered on multiple platforms. Bitcoin Cash trades at $371.07, with a significant run-up in the new year from lows about $200. The asset remains appealing for investment, though vulnerable to setbacks as all altcoins. The BCH network is also significantly less used, with just 50,000 transactions per day.
What do you think about Bank Frick’s involvement with crypto assets? Share your thoughts in the comments section below!

Images via Shutterstock The post appeared first on Bitcoinist.com.

Price Analysis Jan 31: BTC, ETH, XRP, BCH, BSV, LTC, EOS, BNB, ADA, ETC

The bears are attempting to stall the current rally but bulls are likely to defend the closest support levels, suggesting each dip represents a buying opportunity.

Morgan Creek Capital CEO Mark Yusko believes that Bitcoin should be a part of every investment portfolio. The performance analysis of the past five years shows that even portfolios that only held 1% of their total investments in Bitcoin managed to outperform their competitors. Bitcoin offers a ten-to-one downside capture, which makes it one of the most asymmetric assets that Yusko has ever seen.

The growing popularity of crypto derivatives indicates institutional players are gradually entering the space. The Chicago Mercantile Exchange group Managing Director and Global Head of Equity Index Alternative Investment Products, Tim McCourt, said: “CME Bitcoin futures have surpassed $100 billion in total notional value traded since their launch in December 2017.”

 Daily cryptocurrency market performance. Source: Coin360

Bank of Japan deputy governor Masayoshi Amamiya said in a seminar that the central bank should be ready to issue a central bank digital currency if the public demand for it increases. This shows that several major economies are exploring the possibility of launching a CBDC. 

As January comes to an end, multiple cryptocurrencies have risen sharply but can the bulls sustain the momentum? Let’s study the charts.

BTC/USD

Bitcoin (BTC) has turned down from the minor resistance at $9,600. However, with the 20-day EMA sloping up and the RSI in positive zone, the advantage is with the bulls. We anticipate the bulls to defend the dip to the 20-day EMA at $8,736, which is just below the 200-day SMA at $8,881.

BTC USD daily chart. Source: Tradingview

If the price rebounds off the 20-day EMA, the bulls will again attempt to clear the overhead resistance at $9,600. If successful, the BTC/USD pair is likely to move up to $10,360.89. 

Contrary to our assumption, if the bears sink the price below the 20-day EMA, the pair will weaken and can plummet to $8,240.67. The pair will turn negative if the price drops below the critical support at $7,856.76. The traders can trail the stops on their long positions to $8,200, which can be tightened further if the price dips below the 20-day EMA. 

ETH/USD

Ether (ETH) surged above the $173.841 to $180 resistance zone on Jan. 30 but the bulls have not been able to build on the strong up move. The price has reversed direction from $186.969. 

ETH USD daily chart. Source: Tradingview

There is a strong support at $173.841, which is just below the 200-day SMA at $175. If this support breaks, we expect the bulls to defend the 20-day EMA at $166. If the price bounces off either of these support levels, the bulls will make another attempt to move up to $197.75.  

Contrary to our assumption, if the bears sink the price below the 20-day EMA, the next support to watch out for is the $157.50 to $150 zone. A break below this zone will be a huge negative. The traders can trail the stops on the long positions to $160.

XRP/USD

The bulls are struggling to sustain XRP above $0.2326. This is a negative sign as it shows a lack of buyers at higher levels. There are several supports between $0.2326 and the neckline of the inverted head and shoulders pattern. We anticipate the bulls to defend this support zone aggressively.

XRP USD daily chart. Source: Tradingview

If the price rebounds off the support zone, the bulls will make another attempt to scale above the resistance at $0.25401. If successful, a move to $0.31503 is possible. 

Contrary to our assumption, if the XRP/USD pair breaks below the neckline, a drop to $0.20041 is possible. As the pair is struggling to move up, we suggest traders reduce their risk by trailing the stops on the long positions to $0.21.

BCH/USD

Bitcoin Cash (BCH) came very close to the overhead resistance at $403.88 on Jan. 30. However, the bulls have not been able to scale above this level and the price has once again turned down from it.

BCH USD daily chart. Source: Tradingview

There is a strong support at $360 but if the bears sink the price below this support, a drop to the 20-day EMA at $335 is likely. We expect the bulls to defend the 20-day EMA aggressively. If the price rebounds off $360 or the 20-day EMA, it will increase the possibility of a breakout of $403.88.

Conversely, if the bears sink the price below the 20-day EMA, a drop to $306.78 is possible. If this support holds, the BCH/USD pair might consolidate for a few days. The pair will turn negative on a break below $296.13. The developing negative divergence on the RSI warrants caution.

BSV/USD

Bitcoin SV (BSV) is currently at the support line of the symmetrical triangle. If the bears sink and sustain the price below the triangle, it will be a huge negative. This pattern has a target objective of $159.52 on the downside.

BSV USD daily chart. Source: Tradingview

However, we anticipate the bulls to attempt to stall the decline at $236. If successful, the BSV/USD pair will continue to consolidate between $337.8 and $236 for a few more days. The pair will turn positive above $337.80.

LTC/USD

Litecoin (LTC) broke above the overhead resistance at $66.1486 on Jan. 30, which completed a cup and handle pattern. This bullish setup has a target objective of $96.439. The 20-day EMA is sloping up and the RSI is in the overbought zone, which suggests that bulls have the upper hand.

LTC USD daily chart. Source: Tradingview

Currently, the bears are attempting to sink the price back below $66.1486. If successful, the price can dip to the 200-day SMA at $61.73 and below it to the 20-day EMA at $57.50. If the price rebounds off the 20-day EMA, the bulls will once again attempt to push the LTC/USD pair above $70.50.

However, if the price breaks below the 20-day EMA, a drop to $50 is possible. If the price sustains below $66.1486, it will invalidate the bullish setup. Therefore, we will wait and watch for a couple of days before suggesting a trade in it.

EOS/USD

EOS broke above the overhead resistance of $4.24 on Jan. 30, which was a huge positive. However, the bulls could not sustain the breakout and the price has again dipped back below $4.24. This suggests profit booking at higher levels. 

EOS USD daily chart. Source: Tradingview

The EOS/USD pair can now dip to the 20-day EMA at $3.68, which is likely to act as a strong support. If the price rebounds off the 20-day EMA, the bulls will once again attempt to propel the pair above $4.24.

However, we spot a developing negative divergence on the RSI, which is a bearish sign. If the bears sink the price below the 20-day EMA, a drop to the 200-day SMA at $3.3 is possible. 

BNB/USD

The bulls managed to push Binance Coin (BNB) above the overhead resistance at $18.50 on Jan. 30 and 31 but they have not been able to hold on to the breakout.  This shows a lack of buyers at higher levels.

BNB USD daily chart. Source: Tradingview

If the price sustains below $18.50, the BNB/USD pair will remain range-bound for a few more days. The pair will turn negative on a break below $16.50.

However, if the price rebounds off the 20-day EMA and breaks out of $18.50, a move to the 200-day SMA at $18.79 and above it to $21.8 is possible. For now, the stops on the long positions can be retained at $15.90.

ADA/USD

The bulls are struggling to scale above the overhead resistance at $0.0560221. This shows a lack of buyers at higher levels. Cardano (ADA) can now dip to the next support at $0.0461161. The 20-day EMA is also placed close to this level, hence, we expect the bulls to defend it aggressively.

ADA USD daily chart. Source: Tradingview

If the price bounces off $0.0461161, the bulls will again attempt to push the price above $0.0560221. If successful, a rally to $0.0652290 is likely.

As the ADA/USD pair has not been able to break above $0.0560221, partial profits can be booked at the current levels, if not done already, as suggested in our previous analysis. The stops on the remaining long positions can be kept at breakeven.

ETC/USD

Ethereum Classic (ETC) has turned down from $12.87278. The altcoin can now retest the breakout level of $10, as suggested in our previous analysis. If the price bounces off $10, it might offer a low-risk buying opportunity.

ETC USD daily chart. Source: Tradingview

However, if the retest of $10 fails to hold, the pullback can extend to the 20-day EMA at $9.15. We expect the bulls to defend the 20-day EMA aggressively. A bounce off this level or from $10 will increase the possibility of a move to $14.

Conversely, if the bears sink the price below the 20-day EMA, a drop to $7.7853 is possible. The developing negative divergence on the RSI is a bearish sign. Hence, traders should wait for the uptrend to resume before initiating long positions once again.

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.

Market data is provided by HitBTC exchange.

Bitcoin SV Plunges as Founder Admits to Whale Involvement

That Bitcoin SV (BSV) price rally is appearing to hit an end. The fifth-largest cryptocurrency by market capitalization suffered huge losses during the Friday trade as its rate plunged by up to 12.36 percent. The move downhill led Bitcoin SV to establish an intraday low of $261.29. At its monthly best, it was trading at $458.74. Bitcoin SV this Friday was down by up to 43.04 percent from its monthly top | Source: TradingView.com, BitFinex The weak intraday performance was accompanied by a lower daily volume. That itself raised concerns about the absence of trades in order-books that eventually executed the 43 percent crash on Friday. Nevertheless, the price fell towards the support line of what appears to be a newly-forming bull flag (in green). Shooting Your Own Foot The plunge did not appear as a surprise for a cryptocurrency whose price earlier this month had exploded by 374 percent. So it appears, the BSV-to-dollar exchange rate met profit-takers on its way up, which caused to correct rather aggressively. Now, with some gains still left on the table, there is a likelihood that the pair would continue its downside momentum. Part of the reason why it could happen is the possibility of whale-induced manipulation – a scenario wherein traders holding larger-than-expected capital can move an illiquid market in either direction. And, it is not a theory anymore. The reason is Bitcoin SV founder and self-proclaimed Satoshi Nakamoto, Craig Wright, himself. The former Australian pastor admitted in an interview with BlockTV that he knew who exactly pumped the BSV price in January. While he appeared confident about having the knowledge, he forgot that he was somewhat acknowledging how the Bitcoin SV market was under the control of fewer entities. That overall made BSV prone to price manipulation. Coupled with its thin order books and lackluster volume, the factor now serves as a bearish signal to long-term Bitcoin SV investors. More Warning Signals Concerns over a potential Bitcoin SV price manipulation raised further when Timothy Peterson, the author of Metcalfe’s Law as a Model for Bitcoin’s Value, brought focus towards the huge gap between the cryptocurrency’s median transaction value and its retail price. (1/2) The median (middle) transaction value for $BSV is less than 1/10 of one cent. This is an economically meaningless value. Txns have soared to 700k/day, meaning there are hundreds of thousands of fractional cent txns being processed daily…. pic.twitter.com/URIEYZBWSz — Timothy Peterson (@nsquaredcrypto) January 31, 2020 “The only explanation is automated wash trades to inflate $BSV stats and pump price,” he added. “This is what price manipulation looks like.” The post appeared first on NewsBTC.

Hierarchies of Money: Why You Use Bank Money But the Bank Wants Reserve Currency

Hierarchies of Money - Why You Use Bank Money but the Bank Wants Reserve Currency

While people tend to think of money as being all the same, the fact is governments and banks use different types of money than the everyday individual. From the top of the economic pyramid of world reserve currencies, down through central bank and commercial bank money, the capacities and function of different kinds of money vary broadly. Beyond M0, M1, and M2 classifications, reserve currencies ultimately afford policymakers opportunities not enjoyable by those holding “downstream” versions of the supply.

Also Read: Money and Democracy: Why You Never Get to Vote on the Most Important Part of Society

Different Money Supplies for Different People

Because various countries classify money differently, understanding the M0, M1, M2, etc., supplies can be somewhat tedious. From the broadest perspective, the two types of money existing worldwide in the current fractional reserve paradigm are central bank money and that of commercial banks. With central banks themselves ultimately relying on world reserve currency and the power to create money directly.

Hierarchies of Money - Why You Use Bank Money But the Bank Wants Reserve Currency
Modern fiat money is not backed by a commodity, but can be created at will by governments.

The popular classification system denominated in M’s generally measures different types of liquidity in overall money supplies. Trading Economics defines M0 for the United States as “the most liquid measure of the money supply including coins and notes in circulation and other assets that are easily convertible into cash.”

MB, or the broader monetary base, includes central bank reserves. The average person does not have power to significantly alter this base. The Fed, however, recently increased its balance sheet by creating over $400 billion from September to the end of December last year, demonstrating the monetary hierarchy.

Hierarchies of Money - Why You Use Bank Money But the Bank Wants Reserve Currency
Unlike central banks, everyday individuals cannot create official money, but must use it.

Money typically becomes classified as M1 when it exits central bank reserves and hits private bank checking accounts and the pockets of spenders. Because commercial and private banks are not required to hold all of this new money as reserves, they can loan most of it out, and other banks receiving these loans can then further loan it out again. This results in something called the ‘money supply multiplier effect,’ which is a staple of fractional reserve banking. As Investopedia clarifies:

[The effect] raises the value of money supply even though no additional physical currency actually exists to support the new amount.

For a simplified breakdown of the different money supply classifications and how the effect comes about, the video below is a handy resource for reference.

World Reserve Currency: The Magic Money of Kings

In short, there is a group that can create money and dictate its policy, and another group that must abide by these decrees and simply use it. As Perry G. Mehrling writes in his short article “Why is money difficult?”:

This process apparently offends common sense understanding of what it means to make a loan—I can only lend you a bicycle if I already possess a bicycle. Even more, it seems to go against a fundamental principle of elementary economics that “there ain’t no such thing as a free lunch”. Against this resistance, I insist that the essence of banking is a swap of IOUs.

Indeed one cannot lend a bicycle they don’t have, but banks can legally loan money which they also don’t have, multiple times over. It becomes easier to see then how some libertarian economists might label fractional reserve banking as hardly distinguishable from a state-sponsored Ponzi scheme. Mehrling points directly to the two kinds of money existing in the current hybrid system stating that “Money is part private (bank deposits) and part public (central bank currency), though in normal times we hardly notice because the two kinds of money trade at par.”

Hierarchies of Money - Why You Use Bank Money But the Bank Wants Reserve Currency

While central banks (which are neither truly public nor private) can print money and hold their own exclusive reserves, as well as dictate policy for subservient banks in the private sector, there is something at the top of the pyramid even they depend on: reserve currency status. A reserve currency has two main aspects:

  1. It’s held in large reserve quantities.
  2. It’s used in international trade.

Gold, whose value originated organically as a commodity in times past, and which eventually made its way to becoming the most saleable good worldwide, is the world’s first true money in a Mengerian sense. As such it can also be seen as the original world reserve currency.

With the advent of fiat money — or money created by governments by decree alone — new assets would soon take turns gaining and losing the title of world reserve currency, often in direct correspondence to political strife and wars. The progression from gold, to gold or silver-backed paper, to unbacked paper money demonstrates a politicization process which is often overlooked in modern times, as the state has become synonymous with money itself in much of mainstream cultural thought.

Hierarchies of Money - Why You Use Bank Money But the Bank Wants Reserve Currency

A distinctive feature of gold is that — like all natural resources — it is limited in supply. As governments and empires sought more and more expansion in times past, they needed to fund conquest and war, and this limitation became financially unbearable. The result was ultimately the system of fractional reserve banking practiced worldwide today, with the U.S. dollar as the unofficial world reserve currency.

With USD as the ‘new unlimited gold,’ power is secured for the United States government in trade much the same way it would have been for a gold-hoarding king of ancient times. Borrowing can be done at lower interest rates, imports become less expensive, and geopolitical power plays are easily made as the world economy relies on the reserve currency creator for survival. However, fiat printers, unlike gold, don’t know limitations. The collapse of fiat reserve currencies occurs when there is an inevitable point of failure at a concrete level, where the market no longer values the currency against the resources it was previously traded for, or truer forms of money.

Hierarchies of Money - Why You Use Bank Money But the Bank Wants Reserve Currency

When the Fiat Hits the Fan

Advocates of crypto often point to the limited supply of bitcoin and the mathematics which governs it in stark contrast to fiat money’s model of unlimited expansion regardless of underlying economic realities. It’s an unpopular position for those who don’t view scarcity as a pressing issue, or who perceive the state to have the sole right to money creation.

For many bitcoiners, this type of ideation misses the mark, as “divine right to rule” when it comes to anything — especially money — seems a terribly outdated and dangerous concept. So while the average person transacts every day with money whose value has been heavily diluted by way of an interminable cascade of IOUs, both private and central banks want to be as close as possible to the source controlling the most hard assets and global money creation itself — the central bank issuing the world’s reserve currency.

What are your thoughts on the different types of money and money supplies? Let us know in the comments section below.


Images courtesy of Shutterstock, Seika Chujo, fair use.


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Trezor Wallets Can Be Hacked, Kraken Reveals

Kraken’s security division revealed that the entire family of Trezor wallets can be hacked to steal private keys, though the method requires specialized hardware.

Kraken Security Labs revealed on Jan 31. that Trezor hardware wallets and their derivatives can be hacked to extract private keys. Though the procedure is quite involved, Kraken claims that it “requires just 15 minutes of physical access to the device.”

The attack requires a physical intervention on the Trezor wallet by either extracting its chip and placing it on a special device or soldering a couple of critical connectors.

The Trezor chip must then be connected to a “glitcher device” that would send it signals at specific moments. These break the built-in protection that prevents the chip’s memory from being read by external devices. 

The trick allows the attacker to read critical wallet parameters, including the private key seed.

Though the seed is encrypted with a PIN-generated key, the researchers were able to brute force the combination in just two minutes. 

The vulnerability is caused by the specific hardware used by Trezor, meaning that the company cannot easily fix it. It would need to completely redesign the wallet and recall all existing models.

In the meantime, Kraken urged Trezor and KeepKey users to not allow anyone to physically access the wallet.

In a coordinated response published by Trezor, the team minimized the impact of the vulnerability. The company argued that the attack would show visible signs of tampering due to the need to open the device, while also noting that the attack requires extremely specialized hardware to perform.

Finally, the team suggested users activate the wallet’s passphrase feature to protect from such attacks. The password is never stored on the device as it is added to the seed to generate the private key on the fly. Kraken also noted that this is a viable alternative, though researchers referred to it as “a bit clunky to use in practice.”

The feature also adds significant responsibility to each user. The passphrase needs to be complex enough to not be easily brute forced as well, and forgetting it would completely lock users out of their money.

Cointelegraph reached out to Kraken for additional details, but had not received a response as of press time. The article will be updated as more information becomes available.