Yearn.finance (YFI) Open Interest Hits an All-Time High as Selloff Continues

Yearn.finance’s YFI token failed to gain any momentum following yesterday’s sharp rebound following a brief dip below $10,000.

The cryptocurrency is now on the cusp of once again breaking below this level, with the immense selling pressure coming about as open interest for the token reaches an all-time high.

Although the sell-side of YFI’s order books are rather thin at the moment, a lack of any intense inflows of capital has perpetuated its recent technical weakness – which is showing few signs of slowing down any time soon.

The governance token’s price is also dipping in tandem with the implementation of a new proposal to redirect the ecosystem’s income towards YFI token buybacks, which is widely expected to boost its price.

Investors don’t seem to care too much, however, as the selling pressure placed on the token has been relentless.

Unless it traps short positions and sees a more sustainable rally in the near-term, there’s a decent chance that significantly further downside is imminent.

Yearn.finance (YFI) Struggles to Gain Momentum as Descent Continues

At the time of writing, Yearn.finance’s governance token is trading down over 6% at its current price of $10,370.

Yesterday, the crypto rallied to highs of $12,000 following a dip to lows of $9,600 set just a few days ago.

This decline marked capitulation, and the subsequent rebound made many analysts suspect that this was a short squeeze that could help mark these lows as a long-term bottom.

However, the decline seen throughout the past day signals that this selloff is not over and that further downside may be seen in the days and weeks ahead.

YFI Open Interest Hits All-Time Highs as Traders Bet on Volatility

Open interest for Yearn.finance’s YFI token is now at an all-time high, which indicates that an explosive move could be right around the corner.

Prominent investor Andrew Kang spoke about this in a recent tweet, explaining that OI is surging following the move towards $15,000 that cleared the upside liquidity.

“OI on YFI at new ATHs, surpassing first capitulation at 12k earlier this month. 12k-15k liquidity capitulated into high volume at 10ks (same as first capitulation into 12ks. Sell side orderbooks thin. What happens to shorts on a bounce up?”

Yearn.finance YFI

Image Courtesy of Andrew Kang. Source: BTCUSD on TradingView.

Although he seems to believe that this indicates a move higher is imminent, the lack of any short squeeze during yesterday’s relief rally seems to point to immense underlying weakness amongst bulls.

Featured image from Unsplash.
Charts from TradingView.

John McAfee Pumps Crypto From Prison, Denies Tax Fraud and Murder Charges

John McAfee Pumps Crypto From Prison, Denies Tax Fraud and Murder Charges

John McAfee has shared many details about his life in Spanish prison and chances of extradition to the U.S. He additionally claims to have regained control of his ghost cryptocurrency project.

Prison Life ‘Is an Adventure’

Former U.S. presidential candidate and antivirus software tycoon John McAfee is in Spanish prison awaiting his extradition trial after he was arrested in Spain.

McAfee has been tweeting regularly from prison. “You want to know what prison is like. It’s like a Motel 6 run by Hitler’s SS,” he tweeted, elaborating:

I am content in here. I have friends. The food is good. All is well. Know that if I hang myself, a la Epstein, it will be no fault of mine … Prison is an adventure to say the least.

“Spanish prisons are like the Hilton hotel compared to the abject surreality and dehumanization of American prisons,” he described in another tweet. “In Spanish prisons, you are treated as a human being instead of a number. I am treated well.” Admitting that he is “surrounded by murderers, muggers, and thieves,” the antivirus software tycoon maintained that it is “Not as bad as our government of course. But still.”

McAfee Denies Charges Against Him

The former presidential candidate insists that the U.S. government is after him for speaking the truth, particularly against the Securities and Exchange Commission (SEC) and the Internal Revenue Service (IRS). “I once publicly called the SEC a festering pustule on the face of America, and the IRS – a legalized criminal gang aspiring to be the equivalent of Hitler’s SS. These are the two agencies accusing me of hideous crimes. I can only assume that they took offense at my remarks.” Nonetheless, he affirmed: “I would not exchange my life in prison for a life of freedom in which I could not speak the truth.”

Regarding the $23 million dollar judgment against him, McAffee claimed: “It was a civil suit not a criminal issue. I never even responded to the suit. It was simply a default judgment.” He declared:

I am charged with tax fraud – which is lying on your tax return. I have filed no returns for many years and have made no secret of it. If I have said nothing how could I have lied. My real crime is speaking publicly about the insanity rampant within our system of government.

Responding to a question from the media about whether the U.S. justice system is just, he said: “If extradited, I face 35 years in prison for multiple counts of refusing to file tax returns. Had I chosen armed robbery, I would’ve received 5 years maximum. You tell me if it’s just.”

Furthermore, McAfee tweeted on Friday: “I’m in prison for refusing to file tax returns, while government bureaucrats use your taxes for private planes, lavish parties and all other benefits of their power.” Commenting on the upcoming U.S. presidential election, he said, “If you think this election, whatever its results, will change this system, you will be sadly disappointed.”

McAfee Still Pumping His Ghost Cryptocurrency

Although charged by the SEC for pumping tokens, McAfee is still pumping his ghost cryptocurrency. He confirmed from prison that Ghost is the only crypto project he is involved with at present. Recalling that he abandoned the project in August due to a fallout with the management, he clarified:

I have returned to controlling the Ghost development. My feud with management has ended. With the announcement that we will soon release a private stable coin, will mark a new era in transacting crypto business. Transaction fees will be shared amongst all Ghost holders.

“When our private stablecoin is released, it will revolutionize crypto transactions. I have capable managers and communicate frequently from prison,” he claimed. “My work with Ghost revolves entirely around our development of the world’s first private stablecoin. Version one will be a wrapped DAI. Later we will have a new stable, private blockchain. Holders of Ghost will share all transaction fee profits for the stablecoin.”

He also commented on Paypal’s announcement to begin supporting cryptocurrencies, including bitcoin, on its platform. “Paypal’s acceptance of cryptocurrency signals, I believe, a new wave of cryptocurrency acceptance worldwide. Governments around the world will have to get used to cryptocurrencies.” He further tweeted: “Paypal to take crypto. The IRS must be pissing itself.”

What’s Next for McAfee

The U.S. government wants him extradited from Spain, which McAfee says he is 100% certain will not happen because the Spanish “courts will see the clear resentment of the American government toward my public condemnations of their increasing corruption. They also understand how simple it is for a corrupt system to manufacture evidence that can prove anything against anyone who is a public enemy. They will decline my extradition,” he wrote. As such, he said he will not need a lawyer in the U.S., emphasizing that “There is zero chance that Spain will extradite me.”

McAfee revealed that when he is released, he will do “The same as before,” which is to “continue speaking against the cancer that has invaded every organ of the U.S. government bureaucracy.” He added that he is not sorry for what he has done. “I have followed my heart and stood up for my beliefs. I will never regret that,” he said.

On the subject of him allegedly being wanted for murder in Belize, McAfee insisted:

This is false. I was not charged with murder nor was I a suspect. The Belizean authorities will confirm this. I was a person of interest like all of the murdered man’s neighbors. I chose not to be questioned. I was already at war with the Belizean government.

McAfee posted his prison address on Friday after he said many people have asked for it. “Letters only. No packages. No money, drugs or weapons please. Everything is opened,” he warned. Finally, the cybersecurity tycoon said he would not reveal where he had been hiding: “I will not say. I may need to hide again someday.”

What do you think about John McAfee’s story? Let us know in the comments section below.

The post John McAfee Pumps Crypto From Prison, Denies Tax Fraud and Murder Charges appeared first on Bitcoin News.

Sleepy Swiss town launches Tezos-backed Coronavirus aid program

The town of Wetzikon will be using blockchain tech for targeted local business aid

On Friday the Swiss town of Wetzikon -- formerly best-known for its idyllic pastures and churches -- launched a blockchain-based program to support small and medium-sized local businesses affected by the Coronavirus pandemic.

Valued at 250,000 Swiss francs ($280,000), the initial aid disbursement will be funded with a municipal credit line earmarked for the Coronavirus and will be distributed to the roughly 25,000 inhabitants of Wetzikon in the form of an eCoupon worth 10 Swiss francs. 

Residents can access the disbursement through a smartphone app, “ecoo,” which will be using the aid program as a pilot trial for its platform. 

According to their website, ecoo is designed to help entities such as governments and event organizers distribute earmarked funds in the form of coins and points, and was built on the Tezos blockchain through a collaboration between the Swiss firms Papers AG and multiple subsidiaries of Farner Consulting AG. 

On the app residents will be able to convert their coupons into “WetziKoins” that they can later use to make purchases at local companies. Local business owners can then convert the currency back into Swiss francs from the town administration, also via the app. 

Ruedi Rüfenacht, Mayor of Wetzikon, said of the program: “Under the current circumstances it is imperative for us to act in favor of the local economy in a sustainable manner. With ecoo, we have found a viable solution to motivate the people of Wetzikon to shop in local stores instead of just buying online or from wholesalers outside our town. ”

Wetzikon is not the only government that has explored using blockchain technology as a response to the Coronavirus. Bank of Canada exec Timothy Lane has previous called on central governments to prepare for Central Bank Digital Currencies (CBDCs) in an effort to encourage cross-border digital payments.

Sleepy Swiss town launches Tezos-backed Coronavirus aid program

The town of Wetzikon will be using blockchain tech for targeted local business aid

On Friday the Swiss town of Wetzikon -- formerly best-known for its idyllic pastures and churches -- launched a blockchain-based program to support small and medium-sized local businesses affected by the Coronavirus pandemic.

Valued at 250,000 Swiss francs ($280,000), the initial aid disbursement will be funded with a municipal credit line earmarked for the Coronavirus and will be distributed to the roughly 25,000 inhabitants of Wetzikon in the form of an eCoupon worth 10 Swiss francs. 

Residents can access the disbursement through a smartphone app, “ecoo,” which will be using the aid program as a pilot trial for its platform. 

According to their website, ecoo is designed to help entities such as governments and event organizers distribute earmarked funds in the form of coins and points, and was built on the Tezos blockchain through a collaboration between the Swiss firms Papers AG and multiple subsidiaries of Farner Consulting AG. 

On the app residents will be able to convert their coupons into “WetziKoins” that they can later use to make purchases at local companies. Local business owners can then convert the currency back into Swiss francs from the town administration, also via the app. 

Ruedi Rüfenacht, Mayor of Wetzikon, said of the program: “Under the current circumstances it is imperative for us to act in favor of the local economy in a sustainable manner. With ecoo, we have found a viable solution to motivate the people of Wetzikon to shop in local stores instead of just buying online or from wholesalers outside our town. ”

Wetzikon is not the only government that has explored using blockchain technology as a response to the Coronavirus. Bank of Canada exec Timothy Lane has previous called on central governments to prepare for Central Bank Digital Currencies (CBDCs) in an effort to encourage cross-border digital payments.

Sleepy Swiss town launches Tezos-backed Coronavirus aid program

The town of Wetzikon will be using blockchain tech for targeted local business aid

On Friday the Swiss town of Wetzikon -- formerly best-known for its idyllic pastures and churches -- launched a blockchain-based program to support small and medium-sized local businesses affected by the Coronavirus pandemic.

Valued at 250,000 Swiss francs ($280,000), the initial aid disbursement will be funded with a municipal credit line earmarked for the Coronavirus and will be distributed to the roughly 25,000 inhabitants of Wetzikon in the form of an eCoupon worth 10 Swiss francs. 

Residents can access the disbursement through a smartphone app, “ecoo,” which will be using the aid program as a pilot trial for its platform. 

According to their website, ecoo is designed to help entities such as governments and event organizers distribute earmarked funds in the form of coins and points, and was built on the Tezos blockchain through a collaboration between the Swiss firms Papers AG and multiple subsidiaries of Farner Consulting AG. 

On the app residents will be able to convert their coupons into “WetziKoins” that they can later use to make purchases at local companies. Local business owners can then convert the currency back into Swiss francs from the town administration, also via the app. 

Ruedi Rüfenacht, Mayor of Wetzikon, said of the program: “Under the current circumstances it is imperative for us to act in favor of the local economy in a sustainable manner. With ecoo, we have found a viable solution to motivate the people of Wetzikon to shop in local stores instead of just buying online or from wholesalers outside our town. ”

Wetzikon is not the only government that has explored using blockchain technology as a response to the Coronavirus. Bank of Canada exec Timothy Lane has previous called on central governments to prepare for Central Bank Digital Currencies (CBDCs) in an effort to encourage cross-border digital payments.

Bitcoin Could Rally to an All-Time High if It Hits One Key Level

Bitcoin could be on the cusp of posting a move to fresh all-time highs if it can close its monthly candle today above one critical level.

The benchmark cryptocurrency has been caught within the throes of an intense uptrend throughout the past several days and weeks, with each selloff being fleeting and followed by it setting higher highs.

This type of price action shows that it is now in a clear bull market, and the fundamental and technical strength underpinning it at the present moment suggests new all-time highs could be on the table.

One analyst is stating that a monthly close above $13,900 could be all that it takes to rally significantly higher in the days and weeks ahead.

In 2017 during the peak of the bull run, Bitcoin’s price was rejected at $20,000 mid-way through the month, with its monthly candle for December closing below $14,000.

This means that tonight’s monthly candle close could be one of the most significant ones that Bitcoin has ever seen before.

Bitcoin Rallies to Fresh Post-2017 Highs as Bulls Maintain Control 

At the time of writing, Bitcoin is trading up over 2% at its current price of $13,855. This marks a slight decline from its daily highs of $14,100 that were set overnight.

The cryptocurrency has not seen any sustainable declines since this uptrend first began, which is an incredibly positive sign that speaks to bulls’ current strength.

So long as buyers continue absorbing any intense selling pressure, there’s a strong likelihood that upside is imminent.

The key level to watch in the near-term is roughly $13,900, as a daily candle close above this level would allow BTC’s monthly candle to see its highest close ever.

Analyst: Break Above $13,900 Could Send BTC to Its All-Time Highs

Highlighting the importance of breaking and closing above $13,900, one analyst explained that he would not be surprised to see a rally to all-time highs of over $20,000 if Bitcoin’s monthly close takes place above this level.

“Lets close BTC above that green line on the monthly and send it to ATH,” he said.

Bitcoin

Image Courtesy of Josh McGruff. Source: BTCUSD on TradingView.

Bitcoin bears have been vying to stop this from taking place, which means that it will require a significant influx of buying pressure in the coming hours for this crucial breakout to occur.

Featured image from Unsplash.
Charts from TradingView.

Yearn.finance (YFI) fell to four digits—but are whales accumulating?

The price of YFI, the native token behind the decentralized finance (DeFi) giant Yearn.finance dropped to double-digits. It has started to recover as the market sentiment around Yearn.finance started to show signs of improvement.

On October 30, the price of YFI dropped to as low as $9,631 on Binance. The DeFi space saw a marketwide pullback, causing many major tokens to plunge.

yfi yearn finance
The price of Yearn.Finance throughout its history. Source: YFIUSDT on TradingView.com

But in the medium term, there are positive factors that could buoy the sentiment around YFI. They are the potential reaccumulation of whales, new product launches, and post-capitulation recovery.

Whales might start to reaccumulate YFI

Earlier this week, a pseudonymous DeFi investor known as “Future Fund” said Sam Bankman-Fried is the biggest holder of YFI.

Bankman-Fried, who is better known as SBF, is the head of Alameda Research and the CEO of FTX. The investor wrote:

“For everyone that’s mad at SBF for shorting YFI. He is also now the largest holder of YFI at a total of nearly 1800 YFI.”

On October 11, SBF confirmed on social media that he placed a net 200 YFI short. At the current price of $11,000, that is equivalent to $2.2 million. But, a reported 1,800 YFI position is equivalent to $19.8 million, which far exceeds the initial short position.

The reported spot holding could indicate that some whales might be showing signs of reaccumulation.

But, some investors questioned whether reading too far into the trades of whales, like SBF, is important.

“Maybe, just maybe, we are reading too much on all the trades done by Alameda, who has a MARKET NEUTRAL mandate and is an arbitrage-focused trading shop,” a pseudonymous private fund manager said.

A new Yearn.finance product launch

According to “banteg,” a developer at Yearn.finance, the protocol is considering enabling buyback on the v2 vaults. He said:

“Can confirm that buying back YFI is how v2 is currently being structured. Treasury automation needs much more work though.”

Due to the limited supply of YFI, a buyback feature as a part of the v2 vaults could strengthen the value proposition of Yearn.finance over the longer term.

Post-capitulation recovery

Since its peak on September 12, the price of YFI plunged by more than 77%. The price trend demonstrates a capitulation-like phase, where it crashed strongly in a short period.

Santiment, an on-chain market analysis firm, said YFI is showing signs of bullish divergence following the correction. It wrote:

“It appears that YFI is showing some signs of some bullish divergences, based on our research. An increase in whale activity is a good sign, and there appears to be an uptick in active addresses as well.”

Whether Yearn.finance would recover in the near term primarily depends on the overall sentiment around DeFi. So far, the DeFi market is lagging behind Bitcoin, alongside Ethereum.

The post Yearn.finance (YFI) fell to four digits—but are whales accumulating? appeared first on CryptoSlate.

MicroStrategy’s bottom line gets beefier on Bitcoin moves: Bad crypto news of the week

Check out this week’s Bad Crypto podcast.

It’s been another strong week for Bitcoin. The dollar price is up about 2.5 percent over the week, although that’s still something of a decline from its recent high above $13,400. At one point, Bitcoin fell 4 percent in 24 hours. But bulls remain optimistic and see the price advancing towards $20,000, possibly as early as March. That future price movement will depend on a number of factors, including whether banks follow Paypal into cryptocurrency acceptance; the size of the stimulus expected to counter the new coronavirus outbreak; and the pattern of the hash rate, among other factors. One point of volatility could come at the end of the month: that’s when the BTC options market reaches a $750 million expiration. In the meantime, large amounts of Bitcoin are on the move. A whale has recently transferred a billion dollars’ worth of Bitcoin. It cost them $3.58.

Despite that volatility, Anthony Pompliano, the co-founder of Morgan Creek Digital, thinks that Bitcoin has broken away from its correlation with the stock market and is now a safe haven for investors. Mike Novogratz agrees. He sees Bitcoin as a kind of digital gold: a good way to store value but not something that will function as a currency in the next five years. That opportunity, though, may only be available for Bitcoin. Altcoins are doing less well; Ethereum, for example, has been looking relatively weak despite Bitcoin’s growing strength.

Some companies have been doing well out of that strength. Business intelligence firm MicroStrategy has made more than $100 million in profit from its Bitcoin investments. That’s more than it’s made analyzing business. Visa might struggle to follow them. The US Department of Justice is now investigating the company’s acquisition of Plaid, a fintech company.

The government has also been investigating social media. A Senate Commerce Committee hearing gave the CEOs of Google, Facebook, and Twitter, a partisan grilling. One solution to the opacity of the companies’ content moderation, though, might be open-source algorithms.

Senators haven’t been alone in engaging in partisan hackery. A group of hackers took over President Trump’s campaign website. The hackers said that they had evidence proving the president’s “criminal involvment and coorperation with foreign actors” (sic)… and asked for funds.

In Japan, a group of companies have come together to create a blockchain-based trade data management system. In Siberia, a new Bitcoin mine will create 100 jobs. Singapore’s biggest bank, DBS, is launching an exchange to swap fiat for cryptocurrencies. And in China, charities are using the blockchain to give donors trust as they raise money for people in Wuhan, the epicenter of the coronavirus outbreak. In the US, though, while Nasdaq CEO Adena Friedman has said that machine learning and cloud tech will drive evolution in capital markets, the adoption of the blockchain is “complicated” and “will take longer.”

At least the art world is moving ahead. From art inspired by the blockchain to crypto art and digital marketplaces, artists and auction houses have found new opportunities in blockchain technology. Another reason for optimism.

Check out the audio here. 

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

$1.1 Billion Crypto Ponzi: Masterminds of Wotoken Head to Prison in China

$1.1 Billion Crypto Ponzi: Masterminds of Wotoken Head to Prison in China

A Chinese court has confirmed the sentencing of the masterminds behind the 7.7 billion yuan Chinese Ponzi scheme Wotoken, which had over 715,000 investors.

Wotoken Scammers Sentenced to Prison

The Intermediate People’s Court of Yancheng city, Jiangsu province, denied an appeal by four convicts involved in the billion-dollar Ponzi scheme Wotoken on Tuesday, several local media reported.

The court upheld the original sentences for Gao Yudong, Li Qibing, Wang Xiaoying and Tian Bo who were dissatisfied with their original sentencing and filed an appeal. They believe they had minor roles in the scheme. The four were sentenced to prison for 8 years and six months, seven years, seven years, and two years and six months respectively, IT Times reported. They were also fined 2 million yuan, 1.5 million yuan, 1.5 million yuan, and 1 million yuan respectively.

In addition, two other defendants were sentenced for their roles in the Wotoken scam. Li Guomin was sentenced to 3 years in prison and fined 100,000 yuan while Tang Xiaohua was sentenced to 6 months imprisonment with one-year probation, the publication added. In May, 12 people allegedly behind the Wotoken Ponzi scheme were tried, including the six defendants mentioned above.

Chinese law enforcement has seized 425 million yuan ($64 million) of illegal proceeds from the Wotoken scheme, which were turned over to the state treasury. The illegal proceeds belonging to the four who appealed will also be recovered and turned over to the state treasury, the publication conveyed.

The scheme involves a number of cryptocurrencies, collectively worth about 7.7 billion yuan ($1.15 billion), according to blockchain data. They included 46,050 BTC, 286 million USDT, 2 million ETH, 292,590 LTC, 56,900 BCH, and 6,841,797 EOS.

The Wotoken (WOR) platform attracted 715,249 registered users between July 2018 and October 2019. The scheme has 501 MLM layers.

At least one person behind the Wotoken Ponzi scheme was also a key member of a larger Chinese Ponzi scheme called Plustoken, according to an investigative reporter. The Plustoken Ponzi swindled about $6 billion from more than 715,000 investors. Chinese police took down the scheme in July, arrested 109 people involved, and charged six members with fraud.

What do you think about the Wotoken Ponzi scheme? Let us know in the comments section below.

The post $1.1 Billion Crypto Ponzi: Masterminds of Wotoken Head to Prison in China appeared first on Bitcoin News.

$1.1 Billion Crypto Ponzi: Masterminds of Wotoken Head to Prison in China

$1.1 Billion Crypto Ponzi: Masterminds of Wotoken Head to Prison in China

A Chinese court has confirmed the sentencing of the masterminds behind the 7.7 billion yuan Chinese Ponzi scheme Wotoken, which had over 715,000 investors.

Wotoken Scammers Sentenced to Prison

The Intermediate People’s Court of Yancheng city, Jiangsu province, denied an appeal by four convicts involved in the billion-dollar Ponzi scheme Wotoken on Tuesday, several local media reported.

The court upheld the original sentences for Gao Yudong, Li Qibing, Wang Xiaoying and Tian Bo who were dissatisfied with their original sentencing and filed an appeal. They believe they had minor roles in the scheme. The four were sentenced to prison for 8 years and six months, seven years, seven years, and two years and six months respectively, IT Times reported. They were also fined 2 million yuan, 1.5 million yuan, 1.5 million yuan, and 1 million yuan respectively.

In addition, two other defendants were sentenced for their roles in the Wotoken scam. Li Guomin was sentenced to 3 years in prison and fined 100,000 yuan while Tang Xiaohua was sentenced to 6 months imprisonment with one-year probation, the publication added. In May, 12 people allegedly behind the Wotoken Ponzi scheme were tried, including the six defendants mentioned above.

Chinese law enforcement has seized 425 million yuan ($64 million) of illegal proceeds from the Wotoken scheme, which were turned over to the state treasury. The illegal proceeds belonging to the four who appealed will also be recovered and turned over to the state treasury, the publication conveyed.

The scheme involves a number of cryptocurrencies, collectively worth about 7.7 billion yuan ($1.15 billion), according to blockchain data. They included 46,050 BTC, 286 million USDT, 2 million ETH, 292,590 LTC, 56,900 BCH, and 6,841,797 EOS.

The Wotoken (WOR) platform attracted 715,249 registered users between July 2018 and October 2019. The scheme has 501 MLM layers.

At least one person behind the Wotoken Ponzi scheme was also a key member of a larger Chinese Ponzi scheme called Plustoken, according to an investigative reporter. The Plustoken Ponzi swindled about $6 billion from more than 715,000 investors. Chinese police took down the scheme in July, arrested 109 people involved, and charged six members with fraud.

What do you think about the Wotoken Ponzi scheme? Let us know in the comments section below.

The post $1.1 Billion Crypto Ponzi: Masterminds of Wotoken Head to Prison in China appeared first on Bitcoin News.

Bitcoin reaches $14K for the first time since January 2018 — what’s next?

The price of Bitcoin is on the verge of having its highest monthly close ever but bulls must still break through $14K for a shot at a new all-time high.

Bitcoin (BTC) price is undoubtedly having an impressive year after crashing to $3,700 in March but then rallying to $14,000 in the following months. Now BTC has reached the highest point since January 2018 as the price touched $14,100.

Thus, the likelihood of the new bull cycle is heavily increasing as the price of Bitcoin continues to make new higher highs and higher lows. What's more, the strength is even seen while the U.S. Dollar Currency Index, with which it is typically inversely correlated, is also recovering amid coronavirus fears.

Bitcoin yet to break the $13,700-14,250 area

BTC/USD 1-week chart. Source: TradingView

The weekly chart shows some crucial levels to be watched in order to continue the bullish momentum. One of them is the current resistance zone surrounding the $14,000 threshold. Breaking through this resistance zone would initiate further strength toward the next threshold around $16,500-17,000.

These two levels are the final hurdles before a possible new all-time high, while the majority of altcoins are still facing huge losses compared to their 2017 peak highs.

There are two crucial levels to watch on the downside. The first and primary breaker is the $11,400-11,800 area. That’s been the crucial resistance zone for two years, which means it could see a retest before any more upside.

However, if that area is lost, the next support zone is found between $10,100-10,400. These two zones are critical to hold if the market is in bullish territory.

The highest monthly close ever is possible for Bitcoin

BTC/USD 1-month chart. Source: TradingView

As the monthly chart shows, the highest monthly close ever is possible for Bitcoin — an incredible accomplishment 12 years after the release of the whitepaper.

However, it also shows the significance of this resistance zone as it’s the last major hurdle before the all-time high can be challenged.

If $13,700-14,200 breaks, further continuation toward new all-time highs are almost guaranteed as there are not many levels standing in between.

However, the start of a new bull cycle is typically accompanied by accumulation periods, through which previous resistance zones are retested and confirmed as support. Such an accumulation period would mean Bitcoin’s price can correct toward $11,600 to find sufficient support before a major move up.

Current market behavior comparable to the 2016 cycle

BTC/USD 1-week 2016 chart. Source: TradingView

The 2016 chart shows these accumulation ranges through which a healthy trend was established. Every previous resistance level got retested for confirmation, after which a range was established to accumulate Bitcoin.

After such a range-bound construction, compression started to build up, ultimately resulting in a massive breakout.

Another massive signal is the quick buys during market corrections. These are shown by long wicks as buyers quickly step in to buy as price is falling. A similar move can occur if the market corrects in the coming weeks.

Possible scenario for Bitcoin price

BTC/USD 1-week scenario chart. Source: TradingView

The current area of $11,400-11,800 is a crucial resistance zone. If the price of Bitcoin falls to break through this resistance zone, a correction will become the likely scenario.

Therefore, Bitcoin’s possible scenario is range-bound action between $11,400 and $14,200. Such a sideways construction would be similar to the 2016 period of accumulation.

Ether and other altcoins may then show up to the part the moment Bitcoin finishes its correction and goes into the sideways range-bound construction. It will likely take a few more months before altcoins can start to move upward.

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.

0x charts path towards cross-chain asset exchange and liquidity aggregation

The interoperability protocol seeks to expand beyond Ethereum and create cross-chain functionality

In a blog post on Friday, 0x Labs product manager Theo Gonella laid out the protocol’s ambitious plans to direct development towards a promising, if technically tricky horizon for permissionless exchange: seamlessly connecting the growing constellation of viable layer-1 blockchain platforms.

The Ethereum-based protocol, designed to be an interoperability toolkit for decentralized exchanges of all stripes, has seen marked success this year in connecting a network 30+ projects building with their API. 

Throughout 2020, as Decentralized Finance (DeFi) boomed, so too did 0x’s usage: the protocol facilitated nearly $4 billion in trades across dexes and aggregators like Tokenlon and 1inch, and generated nearly $400,000 in protocol fees, according to the 0xTracker. 

Likewise, 0x’s native token, $ZRX, saw a rally of 280% from $.259 to $.73, before a 50% drop amid the wider DeFi market rout. 

As it looks to the future, however, 0x now plans to bring its vision of interoperability cross-chain. 

“While Ethereum is the platform on which most tokenized value has emerged in the past years, we believe we are heading towards a multi-blockchain world with a vast web of interconnected networks forming the backbone of web3,” wrote Gonella. “Given our vision for 0x protocol as an open technical standard for p2p exchange, it is natural that the standard expand into new ecosystems as they emerge.”

The post laid out the signs of growth Ethereum competitor chains would have to exhibit in order for 0x to devote developmental resources, including unique digital assets, robust developer communities, and a deep pool of end users. 

Gonella also acknowledged that cross-chain functionality and composability is a notoriously difficult problem, however.

Issues include porting wrapped assets of different standards across chains, opportunity cost for users who lock their tokens into cross-chain bridges, and necessary updates to the 0x infrastructure and tokeneconomic model, including staking and governance. 

Despite the complexity of the task, Gonella struck an optimistic tone: 

“We’re seeing a Cambrian explosion of innovation and creativity, and it’s only just getting started.”

What industry leaders would wish for Bitcoin’s white paper 12th anniversary

Experts in the blockchain and crypto industry make their wishes for Bitcoin’s 12th birthday

While the crypto community decides whether Bitcoin (BTC) was born — or merely conceived — 12 years ago, the fact is that Oct. 31, 2008, remains one of the most notable dates in humanity’s modern history. Exactly 12 years ago, Satoshi Nakamoto published what some have described as “a new bible”Bitcoin’s white paper. Designed as a brand new “purely peer-to-peer version of electronic cash,” many see the creation of Bitcoin as a response to a global financial crisis.

Related: Happy birthday dear Bitcoin: Crypto’s first white paper turns 12

Cointelegraph’s video team talked to Adam Back, co-founder and CEO of Blockstream, about the birth of Bitcoin. Check out the video here:

Although Bitcoin has recently become more appealing than both Jesus and sex, at least among Reddit users, let’s not forget that it’s only Bitcoin’s 12th anniversary and that many great achievements and challenges still lie ahead, though for this real-world saga, we can only hope to know how this story will end and who will emerge as the victor.

Cointelegraph has reached out to Bitcoin’s friends and supporters, asking them to send their birthday wishes to the Big BTC.

Alex Wilson, co-founder of The Giving Block:

“For Bitcoin’s birthday, I hope it brings financial freedom to billions of people around the world.”

Muneeb Ali, CEO and co-founder at Blockstack PBC:

“My wish for the 12th birthday of BTC is that it marks the new chapter for BTC where it starts going from a passive capital (store of value) to actively deployed capital e.g., used as collateral in financial products. I think that’s the next logical step on Bitcoin’s path to becoming a reserve currency.”

Michael Terpin, founder of Transform Group and BitAngels:

“The 12th anniversary of the Bitcoin white paper, which took nearly two years to reach a point where anyone was even able to buy a pizza with 10,000 Bitcoins, is an astounding example of Bill Gates’ mantra that most people overestimate what can be done in a year, but underestimate what can be accomplished in a decade. Today, as Bitcoin passes a market cap of $260 billion, we have further market validation of Satoshi’s paradigm and of the global hunger for fair, self-sovereign vehicles for wealth creation and management.”

Jimmy Song, instructor at Programming Blockchain:

“A robust network, an antifragile community and a high price”

Alejandro De La Torre, VP of Poolin, a Bitcoin and cryptocurrency mining pool:

“I’d wish Bitcoin continued success in its adoption and many more years of a healthy, global network powered by the kind and caring miners.”

Efi Pylarinou, fintech and blockchain advisor:

“My wish is that either the European Commission, Switzerland or the United States decide to adopt the Bitcoin blockchain towards a new constitutional right of every citizen who has a decentralized blockchain on-chain wallet with his/her ID. This wallet will also be used by each country when and if they decide to adopt some UBI scheme.”

Scott Melker, trader, investor and the host of The Wolf Of All Streets podcast:

“$20,000”

Taylor Pearson, entrepreneur and author of The End of Jobs

“May the censorship resistance rise up to meet you. May the hashpower be always at your back. May the BIP-32 paths shine warm upon your blocks; the fees fall softly on your security and until we meet again, may Satoshi hold you in the palm of his hand.”

These quotes have been edited and condensed.

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

DeFi sector’s weakness might just make it the ultimate Bitcoin hedge

The DeFi sector has been caught in the throes of a relentless selloff over the past two months, with bulls unable to gain any traction as many of the tokens sink against USD and Bitcoin.

Bitcoin’s intense strength has made this selloff quite surprising, as many investors previously speculated that strength amongst the major digital assets would lead traders to allocate more capital to “high beta” assets – like those residing in the DeFi market.

Thus far, this hasn’t been the case, and even major cryptocurrencies like Ethereum have been sinking in value against Bitcoin.

This has led one legendary crypto trader to note that shorting major DeFi altcoins could be the best way to hedge against any potential BTC downside in the near-term.

He believes that because these altcoins can plunge even while Bitcoin rallies but almost always outpace the benchmark crypto’s downside movements, they essentially provide a win-win for traders looking to hedge BTC long positions.

That being said, limited liquidity and randomness are two drawbacks that traders should take note of.

DeFi sector continues crashing despite Bitcoin’s strength

Tokens within the DeFi sector have been struggling to gain any momentum throughout the past couple of months, with the entire sector cratering in the time following its peak in early-September.

According to proprietary data from CryptoSlate, the tokens falling under the decentralized finance sector are down over 3 percent in the past 24 hours and down nearly 9 percent over the past seven days.

Yearn.finance’s YFI token – a darling of the DeFi space and widely viewed as a benchmark indicator – dipped below $10,000 for the first time in months overnight.

The buying pressure here was quite intense, but it highlights how poorly many of these tokens are performing.

Trader claims shorting DeFi could be the ideal BTC hedge

For traders long on Bitcoin looking to hedge against downside, one legendary pseudonymous crypto trader believes that shorting DeFi altcoins could be the best play.

While on a recent podcast with Luke Martin, the trader known as Flood explained that besides limited liquidity and potentially seeing random movements, they could be a great way to hedge against Bitcoin downside.

Martin noted that today’s DeFi decline has proven this thesis correct.

“Earlier this week I asked @ThinkingUSD what trade he was looking at in the short-term & he gave his thesis on why Defi alts were the smart hedge trade. The accelerated drop in the last 24hrs has proved that correct.”

Unless there is some catalyst that causes investors to rotate capital out of Bitcoin and into altcoins, there’s a solid chance that DeFi will continue underperforming.

The post DeFi sector’s weakness might just make it the ultimate Bitcoin hedge appeared first on CryptoSlate.

Former Google lawyer joins spate of high-profile attorneys entering crypto

Coinbase leads a growing list of crypto companies attracting top-tier legal talent

On Friday Coinbase Inc. announced the appointment of former Google Senior Legal Director Milana McCullagh as deputy general counsel for product and commercial legal.

McCullagh, who worked for more than 13 years at Google, will work across functions at Coinbase on product legal support, helping the firm to streamline legal compliance for new product launches.

McCullagh's appointment is part of both a Coinbase campaign to attract legal talent that started last year, as well as a broader industry-wide movement of top-tier attorneys joining crypto firms. 

Between August and October, Coinbase appointed former general counsel at Dyson Ltd., Katherine Minarik, as general deputy counsel for litigation; former senior legal counsel at Uber Technologies Inc. in London, Carly Nuzbach Lowery, as an associate general counsel; the former attorney at Fenwick Jade Clemons as a commercial counsel; and head of supervisory affairs at CLS Group Holdings AG, Janice Payne, as director of regulatory compliance.

The glut of hirings may be part of an effort by Coinbase to quell regulatory fears from potential investors on the eve of a possible IPO. The San Francisco-based company held talks with law firms and investment banks regarding an IPO earlier in the year. 

Additionally, these appointments coincide with the company's recent decision to curtail “political” and “societal” discussions at work, which led to a request by 60 employees to take advantage of exit packages provided by the company.

Major legal appointments sweeping the cryptocurrency industry

Coinbase is not alone in its goal of bringing top-tier legal professionals to the crypto industry, however.

On October 8, the blockchain-based company O(1) Labs Operating Corp. announced the appointment of the former in-house attorney at Goldman Sachs and associate with Kirkland & Ellis LLP, Sang Joon Kim as general counsel.

On October 7, the cryptocurrency exchange and custodian Gemini Trust Co. LLC appointed the former head of legal with Morgan Stanley's global financial crimes division, Andy Meehan as a chief compliance officer for the Asia-Pacific region.

And, last Wednesday, venture capital firm Andreessen Horowitz announced the appointment of the former chief regulatory officer at the New York Stock Exchange, Anthony Albanese, to work on cryptocurrency regulation matters.

These moves coincide with the steps taken by US regulators to legalize the cryptocurrency industry. Earlier, the US Department of Justice issued official guidelines to regulate the cryptocurrency market and hold it accountable.

Erich Dylus, an aviation finance attorney for Vedder Price by day and a member of legal engineering DAO LexDAO by night, told Cointelegraph that the hirings might be a sign of the legal world acknowledging crypto’s growing influence:

“Some attorneys are discovering an exciting frontier in need of 'meatspace' legal guidance -- it speaks to the maturing nature of the crypto and crypto-adjacent industries that big names are making the jump.”

The crypto compliance lie: Sacrificing privacy does not make us safer

The lightchain-vs.-darkchain dichotomy is counterproductive, and a healthy graychain will produce more valuable crypto assets like Bitcoin.

In the last month, we’ve seen the United States Federal Reserve come after BitMEX for failing to identify customers, crypto intelligence firm CipherTrace report that most crypto exchanges are not collecting enough user info, and the so-called “FinCEN Files” demonstrate that even large banks that collect and report vast troves of suspicious transactions are not doing enough to unbank the bad guys. Suffice to say, it’s a great time to be alive for compliance hardliners and a rough patch for privacy advocates, aside from a healthy recent boost in the price of Monero (XMR).

Stepping back and looking at the larger trend, many in the crypto community are now imagining a world with two “Bitcoin blockchains” — or perhaps, two distinct networks of various blockchains. The first is a blessed white blockchain, or “lightchain,” akin to a friendly neighborhood where everybody knows each other’s name; the other is a sinister “darkchain” full of drug traffickers, pimps and terrorists (as far as we know).

Privacy advocates fear that because Know Your Customer rules are being placed on exchanges that custody crypto and that banks and institutional wealth will make crypto mainstream via similar custodial solutions, only those who custody crypto with such institutions will be allowed onto the lovely lightchains. These chains will lie within the lofty ivory pillars of Wall Street and beneath the halls of wealth and power, while the vast unwashed masses who prefer to hold and control their own crypto will be forced into a crypto ghetto on the darkchain.

Anti-Money Laundering compliance

While the basis of these fears is well founded, it is important to remember the original purpose of AML compliance, originating in 1970s America, was to assist law enforcement in its investigations. Maintaining a vast reporting system for monitoring user activity and feeding it to the government, like the modern Transportation Security Administration airport panopticon, is a 21st century, post-9/11 invention of Bush-era America and hardly a prerequisite for a global financial network.

In fact, this recently imposed norm was a major impetus for many privacy-friendly innovations in crypto, including, arguably, Bitcoin (BTC) itself. In other words, the “lightchainers” are justifying potentially removing the privacy from blockchains under the same “War on Terror” rationale for the Patriot Act, only with the possibility of permanently airing your dirty laundry on a public ledger rather than keeping it between the banks and government (and occasionally leaked to Buzzfeed).

More importantly, it has long been obvious that even in the crypto space, the imposition of global mandatory wallet identification and traceability has strained this original “assisting law enforcement” rationale for AML rules. Historically, the Elliptics, CypherTraces and Chainalysises of the world have spent most of their energy working with law enforcement to map out actual criminals and their transactions resulting from actual criminal activity, rather than setting up vast dragnets of everybody’s wallet addresses.

Whether it was Mt. Gox or other exchange hackers, BitLocker scammers or international criminals of many stripes, Bitcoin has a feature that allows blockchain exploration compliance firms to demarcate known bad guys and create an actual “darkchain” not to be mixed into the polite company of the remaining blockchain(s).

This system has worked. Most virtual asset service providers, or VASPs, (i.e., exchanges) use blockchain explorer compliance tools to block and track transactions on the darkchain and assist law enforcement with its investigations. These efforts have also made it much, much harder for actual criminals to launder their crypto on compliant exchanges.

Lightchain vs. darkchain

So, let us reject the thesis that we are barreling toward a “lightchain-vs.-darkchain” dichotomy. Rather, let’s recognize that we already have a small darkchain of proven money launderers that VASPs do not, and should not, work with and should freeze and work with law enforcement to deal with. We then have the splotches of lightchains that exist within VASPs (i.e., exchanges) for which they are, and should be, legally obligated to keep private and share only to the extent they detect darkchain or demonstrable criminal activity, rather than sharing private user information of noncriminals. This leaves us with a third chain, the vast, lovely, delightfully opaque “graychain” blockchains that have served us so well for all these many years.

To “keep blockchain gray,” we must resist the efforts of the lightchain to penetrate the gray by penalizing VASPs and blockchain exploration and compliance tools that engage in unjustified tainting of the gray with the white. In other words, publicizing identifying information of exchange customers should lead to lawsuits and, in Europe, anti-privacy enforcement actions. Likewise, we must resist the darkening of our beloved graychain by policymakers, pundits and so-called crypto lawyers who advocate for penalties on operating in the gray zone.

There is nothing wrong with holding your crypto in a hardware wallet, and to argue that those who exercise healthy cybersecurity by doing so have “something to hide” stains credibility. We must resist this by advocating for the graychains, which are by no actual measures true vectors for money laundering, and by pointing out the irrationality of believing that pseudonymous blockchains are more valuable when they are no longer anonymous at all. In the end, even if the lightchainers are successful, they will be sowing the seeds of even more private forms of money that lie beyond their reach.

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

Zachary Kelman is the managing partner of Kelman PLLC, a boutique law practice based in New York specializing in matters related to cryptocurrency and blockchain technology. The firm handles both litigation and corporate matters, including advising on compliance with international standards for data and financial services. Zachary has advised governmental bodies and central banks around the world on the application of local and international laws to digital assets and their many uses.

Bitcoin Price Flirts With USD 14,000 On 12th Whitepaper Anniversary

Bitcoin price has briefly broken USD 14,000 resistance and spiked up to USD 14,100 on some of the major exchanges, including Coinbase, Bitstamp, Binance, and Gemini on Saturday morning (UTC time) before correcting below USD 13,600. However, at pixel time (13:37 UTC), BTC trades at USD 13,821 and is up by almost 4% in a day and 6% in a week. The price jumped by 28% in a

De Bitcoin whitepaper is vandaag precies 12 jaar oud

Vandaag is het precies twaalf jaar geleden dat de mysterieuze en anonieme bedenker van Bitcoin, Satoshi Nakamoto, een paper met de wereld deelde: Bitcoin: A Peer-to-Peer Electronic Cash System. Daarin beschreef hij in slechts acht pagina's hoe Bitcoin zou moeten werken.

Ongeveer twee maanden later ging het Bitcoinnetwerk van start en werden de eerste blocks gemined. Sindsdien groeide het uit tot het meest decentrale en veilige netwerk ter wereld, met een uptime van bijna 99,99%. Geen enkel netwerk in de wereld kan daaraan tippen. Als valuta is bitcoin inmiddels hard op weg om de belofte waar te maken als dé valuta van het internet, met steeds meer gebruikers en adoptie door het bedrijfsleven.

Het idee werd realiteit. En dat begon allemaal met de Bitcoin whitepaper: Bitcoin: A Peer-to-Peer Electronic Cash System.

Je kan de originele Bitcoin whitepaper in het Engels lezen op onze website. Op de website van bitcoin.org tref je een vertaling in het Nederlands.

"The root problem with conventional currency is all the trust that's required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust. Banks must be trusted to hold our money and transfer it electronically, but they lend it out in waves of credit bubbles with barely a fraction in reserve. We have to trust them with our privacy, trust them not to let identity thieves drain our accounts. Their massive overhead costs make micropayments impossible."

-Satoshi Nakamoto, bron

"Het kernprobleem met conventionele valuta is al het vertrouwen dat ervoor nodig is. De centrale bank moet vertrouwd worden om de valuta niet te devalueren, maar de geschiedenis van fiat valuta is vol met breuken van dat vertrouwen. Banken moeten worden vertrouwd om ons geld te bewaren en elektronisch over te boeken, maar ze lenen het uit in golven van kredietbubbels met nauwelijks een fractie in reserve. We moeten ze vertrouwen met onze privacy, erop vertrouwen dat ze identiteitsdieven ervan weerhouden onze accounts leeg te trekken. Hun enorme overhead-kosten maken microbetalingen onmogelijk."

-Satoshi Nakamoto, vertaling door bitcoin.nl

Bedankt, Satoshi!

De Bitcoin whitepaper is vandaag precies 12 jaar oud

Vandaag is het precies twaalf jaar geleden dat de mysterieuze en anonieme bedenker van Bitcoin, Satoshi Nakamoto, een paper met de wereld deelde: Bitcoin: A Peer-to-Peer Electronic Cash System. Daarin beschreef hij in slechts acht pagina's hoe Bitcoin zou moeten werken.

Ongeveer twee maanden later ging het Bitcoinnetwerk van start en werden de eerste blocks gemined. Sindsdien groeide het uit tot het meest decentrale en veilige netwerk ter wereld, met een uptime van bijna 99,99%. Geen enkel netwerk in de wereld kan daaraan tippen. Als valuta is bitcoin inmiddels hard op weg om de belofte waar te maken als dé valuta van het internet, met steeds meer gebruikers en adoptie door het bedrijfsleven.

Het idee werd realiteit. En dat begon allemaal met de Bitcoin whitepaper: Bitcoin: A Peer-to-Peer Electronic Cash System.

Je kan de originele Bitcoin whitepaper in het Engels lezen op onze website. Op de website van bitcoin.org tref je een vertaling in het Nederlands.

"The root problem with conventional currency is all the trust that's required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust. Banks must be trusted to hold our money and transfer it electronically, but they lend it out in waves of credit bubbles with barely a fraction in reserve. We have to trust them with our privacy, trust them not to let identity thieves drain our accounts. Their massive overhead costs make micropayments impossible."

-Satoshi Nakamoto, bron

"Het kernprobleem met conventionele valuta is al het vertrouwen dat ervoor nodig is. De centrale bank moet vertrouwd worden om de valuta niet te devalueren, maar de geschiedenis van fiat valuta is vol met breuken van dat vertrouwen. Banken moeten worden vertrouwd om ons geld te bewaren en elektronisch over te boeken, maar ze lenen het uit in golven van kredietbubbels met nauwelijks een fractie in reserve. We moeten ze vertrouwen met onze privacy, erop vertrouwen dat ze identiteitsdieven ervan weerhouden onze accounts leeg te trekken. Hun enorme overhead-kosten maken microbetalingen onmogelijk."

-Satoshi Nakamoto, vertaling door bitcoin.nl

Bedankt, Satoshi!

Happy birthday dear Bitcoin: Crypto’s first white paper turns 12

An assessment of Satoshi Nakamoto’s Oct. 31, 2008 paper that “set in motion a revolution in finance.”

Has it only been a dozen years since Oct. 31, 2008, that Satoshi Nakamoto published a modest nine-page paper describing a new online payments system called “Bitcoin?” Depending on where one stands, that pseudonymous white paper — its author(s) remain unidentified — fostered either a fintech revolution or, as some believe, “the greatest scam in history.” 

To mark the anniversary of the publication of “Bitcoin: A Peer-to-Peer Electronic Cash System,” Cointelegraph invited comments on the enduring vision of the paper’s author. Would Satoshi Nakamoto have been pleased with how Bitcoin and blockchain technology have developed and evolved over the past 12 years?

James Angel, an associate professor at Georgetown University’s McDonough School of Business, told Cointelegraph: “It has set in motion a revolution in finance with the rise of DeFi apps, smart contracts, and coin offerings, in addition to a payment revolution that is leading to central bank digital currencies.” Gina Pieters, an assistant instructional professor at the University of Chicago’s economics department, told Cointelegraph: “He would be pleased to see the evolution and new applications of his vision.”

The influence of Bitcoin’s (BTC) white paper goes beyond finance, Garrick Hileman, head of research at Blockchain.com, told Cointelegraph: “Its impact is worthy of being considered alongside other major technical innovations, such as the personal computer and internet.”

Would Satoshi be disappointed?

Satoshi’s vision was for a P2P, or decentralized, digital cash system — as referenced in the white paper’s title. The problem with incumbent digital commerce was that it relied exclusively on “financial institutions serving as trusted third parties to process electronic payments,” Satoshi wrote. This had inherent weaknesses. Transactions could be reversed, banks had to mediate disputes, and transaction costs were high. Satoshi’s solution was presented in the second paragraph of the white paper’s introduction:

“What is needed is an electronic payment system based on cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for a trusted third party.”

In the 12 years since the paper’s publication, the need for P2P transactions — without interfering third parties — has become something of an article of faith among Bitcoinists. But, on reflection, has this aspect of Satoshi’s vision been fulfilled? David Yermack, a professor of finance at New York University’s Leonard N. Stern School of Business, told Cointelegraph:

“I think the greatest source of disappointment for Nakamoto would be the increasing centralization of blockchain governance in entities such as mining pools and even central banks, which are on the verge of launching their own cryptocurrencies. Nakamoto’s mission was to challenge the hegemony of central banks, and ironically, the greatest issuers of digital currencies seem likely to be the central banks themselves.”

Angel went further: “Satoshi would be appalled at the politics of concentrated mining pools that currently dominate the Bitcoin protocol.” While Pieters added that Satoshi would be disappointed that the “primary transactions of Bitcoin were not occurring through peer-to-peer trading, but rather intermediated by centralized exchanges or companies.”

Thwarting fraud

The matter of fraud in digital transactions has always loomed, and in Bitcoin’s white paper Satoshi proposed a way to solve the classic “double-spend” problem — where miscreants spend the same coin twice, something not difficult to do with electronic coins. He did this using a “peer-to-peer distributed timestamp server to generate computational proof of the chronological order of transactions.” In this way, explained Satoshi, “transactions that are computationally impractical to reverse would protect sellers from fraud.”

Solving the double-spend problem today is considered one of Satoshi’s greatest achievements. His Bitcoin blockchain has never been hacked (though the same can’t be said for the many crypto exchanges that trade BTC). Still, fraud associated with digital payments has not been squeezed out of the system. Would this have dismayed Bitcoin’s founder?

Angel said that Satoshi would “have been disappointed that Bitcoin did not turn into an everyday payment medium but instead a store of value for fearful fatcats and tax evaders.” Moreover, Satoshi would “have been saddened by the increase in inequality that Bitcoin’s history has created, with a few early adopters becoming whales and the other 99.99999% of the population as have nots.” Still, one assumes Bitcoin’s creator — whether man, woman or group — would have marveled at the breadth of BTC’s adoption, as Yermack outlined:

“Nakamoto would be astonished by the growth of blockchain projects and the many thousands of digital coins and tokens that have been created in the image of Bitcoin. One suggestive piece of evidence is that Nakamoto fixed the size of the blocks on the Bitcoin blockchain at 1MB in 2010 and mysteriously commented that ‘we can always increase this later when we need to.’”

He had no inkling that the blockchain would become overloaded within the next five or six years, continued Yermack, “and that a contentious debate, still unresolved today, would break out among different constituencies of Bitcoin about the best way to expand the blockchain’s capacity further.”

In the past 12 years, most of Satoshi’s original software code has been altered or substituted, added Hileman, but still, Bitcoin has retained its key foundational qualities, including “its fixed supply of 21 million coins, open access, and censorship/tamper resistance. I believe Satoshi would be happy with the ongoing software optimizations and improvements to these core foundational characteristics that continue today.”

Was Satoshi an environmentalist?

While the white paper says a lot about transaction fees, CPU power, network nodes, proof-of-work chains, and even the Gambler’s Ruin problem, it says nothing much about the larger world around, including the environment. Angel contends that Satoshi would be shocked by the environmental damage caused by the Bitcoin mining arms race, adding: “At current hash rates and mining efficiency, Bitcoin mining alone is consuming about seven gigawatts of electricity, which is the equivalent to seven Chernobyl power plants.”

And while little is known about Satoshi’s politics, his creation, in the form of the first crypto blockchain, would also be disturbed by the idea of central bank digital currencies, and in some cases, “those currencies are designed for repressive governments to engage in even more surveillance and control over their populations,” added Angel.

Focusing on the white paper proper, Franklin Noll, a monetary historian and the president of Noll Historical Consulting, told Cointelegraph: “His concern was with speedy, anonymous, low cost, non-mediated, non-reversible transactions. So far, Bitcoin transactions — and many other blockchain transactions — have not been found to be all that speedy, anonymous, or low cost.” He further added:

“I believe Satoshi would want to see more use of non-custodial wallets to store and transact Bitcoin,” added Hileman, who explained that custody firms that manage private cryptographic keys on behalf of Bitcoin owners “resemble traditional banks.” Meanwhile, he believes that “Satoshi was not a fan of trusted third-party financial intermediaries.”

What is Satoshi’s legacy?

After a little more than a decade later, what is the significance of Satoshi Nakamoto’s white paper? In the financial sphere, “It incentivized financial companies and central banks to prioritize evaluating their technology, considering both increased digitization and ‘always-on’ digital platforms,” Pieters opined, continuing: “In some cases, like the renewed examinations of CBDCs, this has led to explorations of new systems even if it is not directly the adoption of blockchain technology.”

“Bitcoin and blockchain have fundamentally changed the monetary world,” added Noll. “Terms like proof-of-work, distributed ledger technology, decentralized finance, programmable money and smart contracts are now part of the lexicon of anyone serious about the future of money and finance.” Hileman added:

“We are also only beginning to understand the potential impact of blockchain technology in areas outside of finance, such as digital identity, addressing the problem of fake news, and public election tampering.”

“The publication of Nakamoto’s 2008 paper was an important turning point in financial record-keeping,” said NYU’s Yermack. “We are only beginning to understand the ramifications, but they appear to be vast.”

A surprisingly modest document

One won’t find the word “revolution” in Satoshi’s paper. There is nothing about overturning the economic order or narrowing the gap between rich or poor. It’s an unassuming treatise on electronic payments — how they can be made to function effectively.

On his own terms, Satoshi succeeded wildly. He promised a workable P2P digital payment system, and he delivered. The market value of Bitcoin stands at $251 billion 12 years after the idea was unveiled.

Whether Bitcoin is also harming the environment, abetting money launderers or propping up political regimes, goes beyond the scope of his paper. What can be said is that economic decentralization continues to present governance challenges. How much “peer-to-peer” does society really want? The larger global community will have to decide.

Twelve years out from the publication of “Bitcoin: A Peer-to-Peer Electronic Cash System,” it’s worth remembering that “it is a dictum of history that revolutions do not always turn out as the founders planned,” Noll told Cointelegraph.

Did Satoshi choose to publish Bitcoin’s whitepaper on Halloween as another Easter egg?

For all we don't know about Satoshi, we can tell he loved a touch of theatricality

Satoshi Nakamoto announced the Bitcoin whitepaper on a cryptography mailing list on Halloween 2008. It could be the case that this was a meaningless coincidence, but when we take into account the meticulous planning behind Bitcoin’s launch party, the chosen date begins to look more meaningful.

Halloween is the carnival time, a ritual day when one can pretend to be someone or something else, whether a comic book superhero like Batman or Superman, or another eternally popular choice for Halloween, a Ghost — a spirit, much like Satoshi, that is neither dead nor alive. 

The carnival tradition goes back hundreds, even thousands of years, and there is no more apt day for the creator of Bitcoin to reveal the persona of Satoshi Nakamoto than Halloween.

“The mystery and the paradox of it”

Whoever created the pseudonym Satoshi Nakamoto, they likely came from the cypherpunk community, a variegated bunch that was united by a common goal of using cryptography to curtail the reach of the Hobbesian Leviathan. The word “cryptography” is made up of the two Ancient Greek words, which when combined, mean something like “hidden writing” or “secret writing”. The early spirit of the cypherpunks is summed up best by none other than Hal Finney in his famous “farewell” post on Bitcointalk:

“Fast forward to late 2008 and the announcement of Bitcoin. I've noticed that cryptographic graybeards (I was in my mid 50's) tend to get cynical. I was more idealistic; I have always loved crypto, the mystery and the paradox of it.”

Finney was the first person, outside of Satoshi, to run Bitcoin; he was the recipient of the first Bitcoin transaction as well. His early involvement in Bitcoin and prior experience in programming has led many to believe that he was Satoshi. Had Finney been involved in the creation of Bitcoin, then for the lover of “mystery and paradox” named “Hal”, revealing the project to the world on Halloween might have had additional meaning.

Things are not as they appear to be when it comes Bitcoin’s launch

For Satoshi Nakamoto, the creation of a decentralized electronic currency that was beyond the purview of any government was an ideologically driven endeavor imbued with symbolism and ceremony. The coinbase transaction of the genesis block contained a quote from an English newspaper, The Times, that many believe was a political commentary on the failings of the contemporary financial system:

“The Times 03/Jan/2009 Chancellor on brink of second bailout for banks”.

The quote has also acted as a watermark, a timestamp that certifies that the Bitcoin network was started on Jan 3, 2020. This is a generally accepted start date for the Bitcoin blockchain. Yet, it may not be true. It is true that it could not have been created before that date, but the quote does not prove that the network was born on that date. The first block (the genesis block was block zero) was mined on Jan 8, five days later. This was likely the day when the Bitcoin network went live. Satoshi backdated the ultimate timestamping service in order to make a political statement.

FDR and the birth of Satoshi Nakamoto

Satoshi’s profile on the Foundation for Peer to Peer Alternatives, or P2P Foundation, listed his birthday as April 5, 1975. Some have drawn attention to the fact that on April 5, 1933, President Franklin Delano Roosevelt signed Executive Order 6102 forbidding the hoarding of gold, which limited an individual’s ability to own gold. During the Great Depression, the population looked to gold as the ultimate safe-haven asset at the time of great uncertainty. The recent horrors of German hyperinflation were still fresh on everyone’s mind. Up until then, the U.S. dollar was backed up with gold, the government needed to have more gold reserves to print more dollars, thus it believed that the hoarding of gold was hampering economic growth.

Nonetheless, the same year, the United States was forced to abandon the gold standard. Roosevelt’s order was eventually repealed by President Gerald Ford, the bill went into effect on Dec 31, 1974. Hence, some have suggested — the birth year of Satoshi Nakamoto — 1975, the first year the Americans regained the right to hoard gold.

Bitcoin keeps on trick-or-treating the world

Satoshi has done a wonderful job of creating an anonymous alter ego. Twelve years later no one has been able to unmask his Halloween disguise. In a world where seemingly the answer to any mystery, the solution to any paradox, is within a few clicks of a mouse, creating an impenetrable anon had to take wit and meticulous planning. Satoshi was always careful as to leave scant traceable personal clues in his writing.

Satoshi’s last post on Bitcointalk came on Dec 12, 2010, in his penultimate post from the day before, he famously lamented about the attention Bitcoin was getting from the WikiLeaks association:

“It would have been nice to get this attention in any other context. WikiLeaks has kicked the hornet's nest, and the swarm is headed towards us.”

Soon after that he withdrew from public life. Yet when the world was besieging befuddled Dorian Nakamoto, Satoshi, perhaps moved by the remorse about a prank that went too far, posted a message on the P2P Foundation’s site:

“I am not Dorian Nakamoto.”

Trick-or-treating is one of Halloween’s carnival customs where kids go door-to-door pleading for treats and threatening mischief if the adults fail to comply. As Bitcoin, paradoxically, turns 12, it appears the world has not yet decided how to deal with this mischievous urchin.

OCC’s Brian Brooks Against Government Issued Digital Dollar – Supports Regulation of Privately Issued Stablecoins

OCC's Brian Brooks Is Against the Government Issuing Digital Dollar, Supports Regulation of Privately Issued Stablecoins Instead

The acting director of the U.S. Office Comptroller of Currency (OCC) Brian Brooks says the creation of the U.S. digital dollar is a terrible one because the government is not good at building things. Instead, Brooks believes tech companies, which already possess the know-how, to be in a better position to issue stable digital currencies. He says the U.S. government needs to focus on doing what it does best-regulation.

Growing Stablecoin Supply

The acting comptroller of currency’s comments come as reports suggest the US is currently working on a digital dollar. However, the U.S. digital dollar can only be issued in four years’ time.

Speaking in an interview, Brooks, who uses analogies to support his stance on stablecoins, believes the United States can only flourish when the government allows the private sector to innovate. Expounding on this belief, Brooks says U.S. government regulatory agencies should instead be concerned with the protection of investors.

To support his theory, Brooks points to the phenomenal growth of stablecoins in the past few months. He says:

If you look at the growth of the major stablecoin, the USDT, you see it has been doubling in market capitalisation every 60 days for the past four, five to six months. This kind of growth is astounding.

Therefore, instead of competing with private innovators, Brooks advises the US government to focus on “putting audit and consumer disclosure rules so that the market can have confidence that the money is there.”

The Envisioned Role for Central Banks

Still, Brooks makes it clear that allowing private companies to be the issuers of stablecoins does not diminish the effectiveness of the monetary policy since any such tokens issuance is backed by dollars that are in circulation.

“Just like Circle and Coinbase have issued a stablecoin and not the Federal Reserve…. still that stablecoin is issued with the promise that it is redeemable for a dollar.” All dollars in circulation are issued by the U.S. Federal Reserve.

Brooks also clarifies that stablecoins issued by private tech companies cannot be more than the circulating supply because “you cannot sell the stablecoin unless someone gives you the dollar.”

When asked about the role of commercial banks in this setup, Brooks says he envisions the financial institutions “being nodes on these blockchains or themselves be issuers of stablecoins at some point.” This will be in addition to banks acting as depositories.

Contradictions

Meanwhile, the OCC acting chief appears to contradict the US Federal Reserve Chairman Jerome Powell as he laments how the U.S. has been slow to embrace digital currencies. Powell recently said that the U.S. not very concerned about being the first to issue a central bank digital currency. Instead, he says prefers getting it right the first time.

However, pointing to the EU’s release of a stablecoin framework as well as China’s distribution of the e-RMB, Brooks asks:

The question is where is the U.S. in all this? It is not an answer to just say we are worried about AML.

Brooks explains that other countries are seeing “crypto and stablecoins in particular as a strategic advantage” and the U.S. “has not figured that out yet.”

Do you agree that the US government must not issue a digital dollar? Tell us what you think in the comments section below

The post OCC’s Brian Brooks Against Government Issued Digital Dollar – Supports Regulation of Privately Issued Stablecoins appeared first on Bitcoin News.

Yield Trust DeFi Protocol with Anti-Manipulation and Unique Trust Score Feature – Presale Now Live

PRESS RELEASE. Yield Trust Team from Stockholm, Sweden is ready to launch their new DeFi protocol for public access, providing users exciting and unique technologies to finally beat market manipulation and reduce market affection by the whales. The protocol is going to grow all around starting it’s move to Polkadot after releasing all significant features and might become one of the biggest multichain DeFi projects in the industry.

What makes Yield Trust so unique?

Yield Trust is part of the large Yield Trust protocol which will include way more features in future to build around the main governance which will control the whole ecosystem of dApps.

It is built for people not users implying a trust score system to treat everyone as a person.

Main Yield Trust advantage is that it is not another compilation project from the others or copycat or fork. It brings absolutely new features to decentralized finance scope.

Upcoming Features of Yield Trust Protocol

► Trust score (Monetary proxy)

The system to reward holders and punish manipulators by restricting whales. Trust score is an internal smart contract variable which is applied to everyone, but restricts only the people who are manipulating token price. Smart contract as a monetary proxy will decide if a user is violating Trust score.

► Insured farming

Is the new yield farming approach where users get cover tokens instead of getting nothing by depositing liquidity or tokens into a pool. Cover tokens represent liquidity rate for the pair of the pool and served by separate smart contract and can be redeemed anytime.

► Early Referral program Airdrop

Instead of throwing away tokens there is a Referral program to reward the most active users of the community for spreading the word about Yield Trust. 1,000 Tokens are going to be distributed between everyone who joined it.

Token Metrics

  • 48.3% – Dapps & Rewards
  • 30% – Presale Allocation
  • 15% – Initial Liquidity (forever locked)
  • 3.3% – Team
  • 3.3% – Referral program

Presale Info

Yield Trust is making Yield Trust ($YTRU) Governance Token accessible by joining an exclusive presale through bounce.finance from OCT 30th 3PM UTC – NOV 8th 3PM UTC.

At the end of the presale YTRU/ETH pair will be listed on Uniswap and initial liquidity added and locked forever. Repositories with source code of the protocol will be available on Github after deployment.

  • 1 ETH = 15 YTRU
  • Soft Cap: 400 ETH
  • Hard Cap: 600 ETH
  • Presale Allocation: 9,000 YTRU
  • Max Supply: 30,000 YTRU
  • Unsold Tokens: Proportional Burn
  • Individual Cap: No Max
  • Presale venue is bounce.finance

More information at https://yieldtrust.finance/presale

Social Media

Website: https://yieldtrust.finance

Telegram: https://t.me/ytru_finance

Twitter: https://twitter.com/ytru_finance

Medium: https://yield-trust.medium.com/


This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

The post Yield Trust DeFi Protocol with Anti-Manipulation and Unique Trust Score Feature – Presale Now Live appeared first on Bitcoin News.

As crypto lending app Cred suspends withdrawals, Uphold terminates its contract

Crypto lending app Cred purged its services earlier this week amidst allegations of fraud coming to light. The service allows users to earn a yield on crypto assets based on the amount of collateral they post, but now faces a tough battle to regain the public’s trust and bring its service back to speed.

The issue was first identified on October 29 after Cred noted the company was investigating a “recent fraudulent incident” and liaising with law enforcement authorities. At the time, it suspended all deposits/withdrawals with immediate effect.

As a reaction to the malicious development, US FinTech player and crypto exchange Uphold terminated its services with Uphold until further notice, CryptoSlate learned in a note. The platform allows users to link their wallets to third-party apps such as Cred to enable the purchase and sale of cryptocurrencies.

“We arranged a call with Cred straightaway and were not sufficiently reassured by their answers, or the clarity they were able to provide. The extent of any problem at Cred was not, and is not, clear to us,” an Uphold spokesperson told CryptoSlate.

They added:

“We acted immediately out of an abundance of caution to protect our customers by closing down all outgoing links into Cred and ending our relationship with the company. We can’t say more because we don’t have the information. Cred is investigating the matter.”

Uphold is one of many wallets to offer an integration with Cred. However, it was the first to restrict further transfers to Cred and terminate the relationship when it learned of the issue. 

A spokesperson from Cred told CryptoSlate that the crypto service was still in the process of assessing the business impact of a fraud incident in consultation with its Counsel and specialists. 

“We are working hard to assess the situation and expect to share more next week. For now, all inflows and outflows of funds will remain temporarily suspended for the November 1 program,” they stated.

Meanwhile, Cred told CryptoSlate that concerns and rumors about Cred being hacked were fabricated. “No Cred systems, customer accounts, or customer information have been compromised,” a spokesperson stated in a mail to us.

The post As crypto lending app Cred suspends withdrawals, Uphold terminates its contract appeared first on CryptoSlate.