Spike in new participants buying Bitcoin is ‘obviously bullish’ — Analyst

Bitcoin price has been flat for nearly a month but on-chain data shows a bullish surge in new participants joining the network.

The price of Bitcoin (BTC) has remained relatively flat for September and the strong decline in altcoin and DeFi token prices seems to be making the situation worse for many investors. 

Despite this lack of bullish momentum, on-chain data reveals that new participants are joining the Bitcoin network at an alarming rate.  

Although the price has failed to react to the sharp inflow of new participants, on-chain analyst Willy Woo believes that this is a strongly bullish sign. Sept. 30 Woo tweeted:

“We're seeing a spike in activity by new participants coming into BTC not yet reflected in price, it doesn't happen often. This is what traders call a divergence, in this case it's obviously bullish”

Bitcoin: Number of new entities vs price

Bitcoin: Number of new entities vs price. Source: Glassnode

As shown by the chart above, the number of new entities joining the Bitcoin network has been rising steeply since last week and the metric clearly surpassed the numbers recorded in August. The metric measures the number of clusters (wallets) owned by a given person or group.

What is drawing new participants in?

Some analysts believe that the surge in new entities could partially be attributed to the strong pullback in DeFi tokens and altcoins. In the past 30 days many have registered double-digit losses and this may have left investors looking for safer alternatives in the crypto market.

While the price of Bitcoin has repeatedly failed to break through the $11,000 level, it has remained stable above $10,000 for the past month. 

Given the current economic and political chaos sweeping through the U.S. and other countries impacted by the coronavirus pandemic, Bitcoin’s price stability strengthens the argument that  Bitcoin is a solid store of value.

Although the U.S. dollar has remained the most sought after asset in the face of the recent financial crisis, it’s possible that a second wave of coronavirus infections may negatively impact the global economy. Such an event would likely prod investors to invest in assets like gold and Bitcoin, especially if the dollar loses strength.

Dash adjusts block reward percentage to improve the economics of its network

This and other changes come as part of the protocol’s recent mainnet upgrade.

Dash Core Group, the entity responsible for developing the privacy-focused coin DASH, publicized fresh changes to the asset's proof-of-stake network on Sept. 30. 

"Dash Core v0.16.0.1 binaries are released and ready for deployment on mainnet by node operators," said an announcement on Medium from Pasta, one of Dash Core Group's Developers. "This is a major release and is a mandatory upgrade for all miners and masternodes."

The network update improves the DASH ecosystem in a number of ways, including methods for confirming appropriate masternode holder software, wallet user interface enhancements and better anonymity capabilities when using PrivateSend — the project's non-custodial coin-mixing option.  

The upgrade also includes "block reward reallocation to improve the economics of Dash by adjusting the percentage of reward," the announcement said. 

Dash recently made public another change on Sept. 18 — a platform calling on decentralized cloud use for blockchain information storage, based on concepts mentioned in its Dash Evolution movement. Initiated five years ago, Dash Evolution targets simpler crypto use for participants. The Sept. 30 Dash updates also result from Dash Evolution ideals.

Back in August, Dash released the first digital asset debit card available in Latin America. 

Dash adjusts block reward percentage to improve the economics of its network

This and other changes come as part of the protocol’s recent mainnet upgrade.

Dash Core Group, the entity responsible for developing the privacy-focused coin DASH, publicized fresh changes to the asset's proof-of-stake network on Sept. 30. 

"Dash Core v0.16.0.1 binaries are released and ready for deployment on mainnet by node operators," said an announcement on Medium from Pasta, one of Dash Core Group's Developers. "This is a major release and is a mandatory upgrade for all miners and masternodes."

The network update improves the DASH ecosystem in a number of ways, including methods for confirming appropriate masternode holder software, wallet user interface enhancements and better anonymity capabilities when using PrivateSend — the project's non-custodial coin-mixing option.  

The upgrade also includes "block reward reallocation to improve the economics of Dash by adjusting the percentage of reward," the announcement said. 

Dash recently made public another change on Sept. 18 — a platform calling on decentralized cloud use for blockchain information storage, based on concepts mentioned in its Dash Evolution movement. Initiated five years ago, Dash Evolution targets simpler crypto use for participants. The Sept. 30 Dash updates also result from Dash Evolution ideals.

Back in August, Dash released the first digital asset debit card available in Latin America. 

Sensitrust: Smart Working empowered by Artificial Intelligence and Blockchain Technologies

Disclaimer: The text below is a press release that was not written by Cryptonews.com. Before the Covid-19 pandemic, smart working was still a niche paradigm adopted by few software startups, freelancers, and nomad workers. Despite the unfortunate consequences of Covid-19 in the worldwide economy, the mainstream adoption of smart working as a de-facto paradigm in the job market, let many

Japanese esports company to pay its players in XRP

Will this ultimately prove to be a significant step for mainstream adoption, or a publicity stunt?

SBI esports, a subsidiary of Japanese financial services conglomerate SBI Group, announced that its esports players would receive salaries in Ripple (XRP) going forward as part of a sponsorship deal with venture capital firm, VC Trade.

According to the official announcement, player salaries will be paid via crypto instead of fiat in order to strengthen the company’s presence among esports players who also use digital currencies.

SBI esports, which is a long-time Ripple partner, said that this sponsorship deal is a way to diversify its portfolio within the blockchain industry. Their goal is to “create and nurture a healthy market based on customer-centricity, improve prices, and expand liquidity.”

As of press time, XRP holds a market capitalization of $10,827,898,158, making it the fourth largest crypto in the category of market cap, according to CoinMarketCap.

Back in 2019, Ripple’s developer ecosystem, Project Xpring, and the game-centric blockchain platform, Forte, jointly established a $100 million fund to support game developers.

Mac Ocampo, head of growth at blockchain entertainment studio Virtually Human Studio, previously lamented to Cointelegraph that “not all gamers are crypto traders, and not all crypto traders are gamers” — something he felt was a major challenge faced by the gaming industry.

Japanese esports company to pay its players in XRP

Will this ultimately prove to be a significant step for mainstream adoption, or a publicity stunt?

SBI esports, a subsidiary of Japanese financial services conglomerate SBI Group, announced that its esports players would receive salaries in Ripple (XRP) going forward as part of a sponsorship deal with venture capital firm, VC Trade.

According to the official announcement, player salaries will be paid via crypto instead of fiat in order to strengthen the company’s presence among esports players who also use digital currencies.

SBI esports, which is a long-time Ripple partner, said that this sponsorship deal is a way to diversify its portfolio within the blockchain industry. Their goal is to “create and nurture a healthy market based on customer-centricity, improve prices, and expand liquidity.”

As of press time, XRP holds a market capitalization of $10,827,898,158, making it the fourth largest crypto in the category of market cap, according to CoinMarketCap.

Back in 2019, Ripple’s developer ecosystem, Project Xpring, and the game-centric blockchain platform, Forte, jointly established a $100 million fund to support game developers.

Mac Ocampo, head of growth at blockchain entertainment studio Virtually Human Studio, previously lamented to Cointelegraph that “not all gamers are crypto traders, and not all crypto traders are gamers” — something he felt was a major challenge faced by the gaming industry.

Analysts Believe Chainlink is Poised to Rally by 50%+ as It Shows Signs of Bottoming

Chainlink has struggled to maintain its foothold above $10.00, which was lost when the token faced a massive influx of selling pressure that drove its price lower overnight.

Bulls have since re-surmounted this level and are ardently attempting to establish it as support. An ability to do this could help create a strong base of support that leads LINK’s price higher in the days and weeks ahead.

Where it trends in the near-term may depend largely on Bitcoin and the rest of the crypto market, which have been consolidating throughout the past few days and weeks.

Although Chainlink is still trading down 50% from its 2020 highs of $20.00, it has posted a strong rebound from recent lows of under $7.50.

These lows came about during a bout of capitulation, which resulted in a violent “v-shaped” recovery.

Analysts are now noting that the token could be well-positioned to see significantly further upside in the days and weeks ahead, potentially reclaiming multiple key levels.

One trader is even looking for a 50%+ rally in the near-term.

Chainlink Struggles to Defend $10.00, But Analysts Grow Bullish

At the time of writing, Chainlink is trading down just over 1% at its current price of $10.05, which marks a notable upswing from its overnight lows of $9.45 that came about during a sharp selloff.

Analysts are now noting that LINK may soon begin ascending higher, with the first key level for it to reclaim sitting at roughly $11.00.

While speaking about this, one trader stated that he is now “scaling into spot” positions in anticipation of further upside.

“I think that LINK has a bit different timing than everything else in this cycle. I could see us right now setting up the last consolidation before a new move upward. Scaling into spot,” he said.

Chainlink

Image Courtesy of Cantering Clark. Chart via TradingView.

Here’s Why LINK May Soon See a 50%+ Move Higher

Another trader echoed this bullish sentiment, explaining that he is watching for a continuation of its post-capitulation rebound that sends Chainlink’s price up towards $15.00 – marking a 50% rise from where it is currently trading at.

“Chainlink – Trade is starting off well. I already took some partial profits at weekly close, but I just added those back on this week’s pullback. Expecting us to continue the uptrend here,” he said while pointing to the below chart.

LINK

Image Courtesy of Calmly. Chart via TradingView.

Unless Bitcoin drags Chainlink lower in the days ahead, it is possible that significantly further upside is imminent.

Featured image from Unsplash.
Charts from TradingView.

Dfinity poised to launch straight into Top 5 crypto tokens by market cap

“Feature complete” final milestone before public launch unveils governance system for the first time.

On Sep 30, DFINITY announced its final milestone release before the network’s public launch later this year. This release, called Sodium, represents a “feature complete” version of the network. The company also disclosed details about their governance system, called Network Nervous System, or NNS.

NNS will use a proprietary token called ICP to facilitate operations on its “Internet Computer.” At launch, there will be 469,213,710 ICP tokens in existence — a number determined by the quantity of tokens previously issued via pre-sales and other distribution rounds.

While NNS’ most recent fundraising effort offered ICP tokens at a rate of around $4.50, the futures price of the asset is currently over $17. If this hypothetical value holds true, it would give the token a market cap of around $8 billion at launch. A price this high would be enough to place it squarely in the Top 5 on CoinMarketCap.

Williams wouldn’t be drawn on this statistic however, telling Cointelegraph:

“...we are focused on the technology, making sure the Internet Computer functions successfully, and the immense positive impact and benefits it will bring the world, so pay little attention [...] We think in the long term, whereas markets, especially crypto markets, are very volatile and short-term indicators.”

The NNS is an algorithmic governance system which will allow ICP holders to lock tokens within it to create “neurons.” These provide voting rights on proposals which affect the network’s operation. They also give participants rewards in the form of additional ICP tokens.

The independent data centres which run the special node hardware underpinning DFINITY’s Internet Computer are also rewarded in ICP tokens.

DFINITY chief scientist and founder Dominic Williams had this to say about the launch:

“It is the technical solution to the systemic problems big tech have created with their monopoly over the internet [...] The NNS is the catalyst for the open internet we were promised in the 1990s, and it ensures the future of the internet remains open and free.”

DFINITY’s Internet Computer aims to provide a truly decentralized alternative to running and hosting content through big tech’s cloud services. Instead, users directly interact with code held on an immutable blockchain.

This Chart Suggests Chainlink’s Parabolic Rise Isn’t Finished

Chainlink volatility is increasing after the asset fell from its all-time high of $20. A 60% collapse sent the cryptocurrency plummeting, only to see a record-breaking bounce that beat any intraday throughout the rest of the altcoin’s amazing 2020 so far.

And although there was a 60% crash, LINKBTC weekly price charts suggest that the asset’s parabolic advance is still intact, potentially pointing to more new 2020 highs ahead. But if the cryptocurrency can’t maintain its upside momentum, the fall down could be substantial.

Chainlink’s Parabola Hasn’t Broken On Bitcoin Trading Pair, New ATHs Inbound?

After such a powerful rise and so quickly to an all-time high of $20 per LINK token, Chainlink price is now reeling and attempting to establish some equilibrium.

A 60% crash quickly turned around with an over 30%, record-breaking daily climb on the USD trading pair. But should analysts actually be watching the Bitcoin trading pair more closely?

linkbtc chainlinkLINKBTC Parabolic Curve Holding Support | Source: TradingView

LINKBTC price charts show that the record-breaking bounce took place just as the cryptocurrency made its most recent touch of the parabolic uptrend curve.

Related Reading | Chainlink Weekly MACD Bearish For First Time Since Parabolic Rally Began

The previous touch sent Chainlink vertical and to a peak of just under 170,000 sats – a 300% increase. This latest bounce could send the cryptocurrency continuing much higher, but a breakdown, however, could be disastrous.

chainlink linkbtc parabola 2

LINKBTC Broken Parabolic Curve Drawdown Targets | Source: TradingView

LINKBTC Parabola Breakdown Could Be Disasterous For Oracle Altcoin

Chainlink has already fallen 60% from highs, but according to the laws of parabola, and statistics measuring the decline of assets historically when such advances are broken, the drop may not be over.

Some of the world’s most experienced traders, such as career commodities trader Peter Brandt claim that parabolic advances, when broken, collapse by 80% or more.

A fall of 80% on the LINKBTC trading pair would take Chainlink to a value of just 33,000 satoshi. But as Bitcoin has shown, things could go even deeper than that.

Related Reading | Chainlink Downtrend Could Continue Toward New Lows Despite Record Rebound

When Bitcoin lost $20,000 – a reasonable comparison to Chainlink’s $20 – it fell over 84% to $3,200 at the low. A comparable 84% fall would take Chainlink back to 25,000 sats.

And while Bitcoin is a strong example of what happens when parabolic assets break down, Ethereum trading against BTC may be a more one-to-one comparison with Chainlink.

ethbtc parabola chainlink

ETHBTC Broken Parabolic Curve Drawdown Example | Source: TradingView

ETHBTC fell a full 90% from ATH against Bitcoin when its curve was broken, dropping back to a base the asset built during the previous market cycle. A 90% fall in Chainlink, on the LINKBTC trading pair, would take the crypto asset back to its base, back at 15,000 sats.

Will Chainlink lose its parabolic support?

Featured image from Deposit Photos, Charts from TradingView

MyEtherWallet’s founder used to pay his rent by mining Bitcoin

His big takeaway? Mining rigs give off a lot of heat.

Kosala Hemachandra, founder and CEO of crypto asset storage platform, MyEtherWallet, mined Bitcoin as a way to pay his Los Angeles rent between 2014-2015. When it came time to pay his bills, he would convert his coins into cash to facilitate the actual transaction.

In conversation with Cointelegraph, Hemachandra reminisced about purchasing Bitcoin mining equipment in college while renting a room at his friend's home. "I bought a Bitcoin miner and then I had it in my room," he told Cointelegraph in an interview. "I was mining it and the amount that I earned through Bitcoin mining was enough to pay the rent for that room, so it was basically free, and then I did not have to pay extra for electricity."

During the first several years of Bitcoin's existence, mining proved to be a far more profitable gambit which required less advanced equipment than it does today.

It wasn't all fun and games, however. Hemachandra noted ominously that Bitcoin mining equipment gives off significant heat, making life in that LA room a toasty experience. "It's not as fun as it sounds," he said, explaining that the San Fernando Valley where he lived frequently hosted outside temperatures near 90 degrees Fahrenheit.

"Since I'm running a Bitcoin miner in my room, it goes above that, and then the air conditioner I had, it was barely working," he remembers. "It was barely able to keep it at a level that was survivable."

Many early entrants to the Blockchain space echo similar sentiments, often involving stories of how they used their erstwhile digital assets in creative ways.

American Economist Stephen Roach: ‘U.S. Dollar in the Early Stages of Sharp Decent’

American Economist Stephen Roach: 'U.S. Dollar in the Early Stages of Sharp Decent'

American economist and former chairman of Morgan Stanley Asia, Stephen Roach said on Sunday that he believes the U.S. dollar will “crash faster and harder.” Roach said similar statements during an interview back in June, and his latest commentary stresses that people should “expect the dollar to plunge by as much as 35 percent next year.”

Stephen Roach is a well known American economist as he worked as chairman of Morgan Stanley Asia and he also advised as the company’s chief economist as well. Roach currently serves as a senior fellow at Yale University and he’s been discussing the American economy regularly during the last few months. Last June, news.Bitcoin.com reported on Roach’s interview with CNBC when he explained a number of reasons as to why he predicts a “dollar crash.”

On Sunday, Roach published an editorial that bolsters his current opinion concerning a dollar crash and the economist emphasized that the USD has “entered the early stages of what looks to be a sharp descent.”

The economist noted that the U.S. dollar index has slumped by 4.3% after it benefited by 7% when there was a flight to cash in February. Despite what Roach calls a “modest correction” the former Morgan Stanley Asia chairman said, “the dollar remains the most overvalued major currency in the world.”

Roach expects the USD index to slide by as much as 35% in 2021 for a number of reasons.

“I continue to expect this broad dollar index to plunge by as much as 35 percent,” Roach says in a newly written editorial. “This reflects three considerations: the rapid deterioration in macroeconomic imbalances in the United States, the ascendancy of the euro and renminbi as alternatives, and the end of the aura of American exceptionalism that has given the dollar Teflon-like resilience for most of the post-World War II era,” he added.

Roach noted this past June in a prior opinion editorial that digital currencies like bitcoin and gold could possibly benefit from the massive dollar downturn. However, the two free-market assets may not see a significant boon from the major fiat adjustments, Roach highlighted at the time.

“Although cryptocurrencies and gold should benefit from dollar weakness, these markets are too small to absorb major adjustments in world foreign-exchange markets where daily turnover runs around $6.6 trillion,” Roach said.

The famed economist wrote on Sunday that it’s “no secret” what caused the unprecedented savings collapse in 2020. Moreover, the coronavirus outbreak “has been more than outweighed by a record expansion in the federal budget deficit.”

In Roach’s opinion, this is just the beginning of the USD’s deterioration, and “the savings plunge is only a hint of what lies ahead.”

“The vice is tightening on a still-overvalued dollar,” Roach concludes. “Domestic savings are plunging as never before, and the current-account balance is following suit. Don’t expect the Fed, focused more on supporting equity and bond markets than on leaning against inflation, to save the day. The dollar’s decline has only just begun.”

What do you think about Stephen Roach’s opinion about the dollar collapse? Let us know what you think in the comments section below.

The post American Economist Stephen Roach: ‘U.S. Dollar in the Early Stages of Sharp Decent’ appeared first on Bitcoin News.

Merchants accepting Bitcoin laud ‘zero chargeback risks’, says BitPay report

Bitcoin integration led to positive results for the merchants in this study.

BitPay recently released a study highlighting four merchants from different businesses that have implemented Bitcoin as a payment method. The parties selected to participate included a gold broker, an online gift card marketplace, a domain registrar that also serves as a hosting service, and an electronics retailer.

In the report, the unnamed merchants praised crypto’s lack of fraud-related chargebacks, noting the immensity of this issue when dealing with traditional institutions.

They also reported that while only 0.5% to 6.5% of their total eCommerce sales came from crypto transactions, these helped to boost the flow of new customers by 40% on average over the last three years.

During the pandemic, the study stated that merchants reported an increase in online shopping. This bolstered the number of crypto transactions on their respective platforms, with 11% of responding customers stating that they were using crypto and other digital payment methods for the first time.

The report also adds:

“The interviewed merchants identified an opportunity to grow sales by reaching a new customer segment that prefers to pay with bitcoin and other cryptocurrencies when shopping online. While cryptocurrency buyers still represent a relatively small share of spending, cryptocurrency recognition is significant and growing.”

At the beginning of September, a British online food delivery platform called “Just Eat” added cryptocurrency payment support for its subsidiary in France.