All posts by Alan B. Zibluk

Markethive

Winklevoss twins cut up their Bitcoin key and keep the pieces in different bank vaults across America to protect their $1.3billion digital fortune

Leave a comment

Winklevoss twins cut up their Bitcoin key and keep the pieces in different bank vaults across America to protect their $1.3billion digital fortune

Winklevoss twins cut up their Bitcoin key and keep the pieces in different bank vaults across America to protect their $1.3billion digital fortune

  • Tyler and Cameron Winklevoss, 36, started buying up Bitcoin back in 2012

  • They used $11m to buy roughly 120,000 Bitcoins when they were less than $10

  • The funds for Bitcoin came from the $65 million settlement they reached with Facebook's Mark Zuckerberg

  • Twins have cut up the keys to their digital fortune and keep each piece in bank vaults across American to protect their billions

The Winklevoss twins say they have cut up the key to their $1.3 billion Bitcoin fortune and keep each piece in various bank vaults across America in an elaborate attempt protect their assets.

Tyler and Cameron Winklevoss, who are best known for suing Facebook's Mark Zuckerberg claiming he stole their idea for the social networking site, started buying up Bitcoin back in 2012.

They bought roughly 120,000 Bitcoins when they were less than $10 each using $11 million from the $65 million settlement they reached with Zuckerberg.

Tyler and Cameron Winklevoss, 36, say they have cut up the keys to their $1.3 billion Bitcoin fortune and keep each piece in differnet bank vaults across America

The two Harvard-educated were laughed at when they made the initial investment.

But they told the New York Times that they held onto their Bitcoins, and as a result have watched it soar in value recently.

'We've turned that laughter and ridicule into oxygen and wind at our back,' they said.

The twins say they aren't leaving anything to chance when it comes to protecting their digital fortune.

Given it is a digital currency, Bitcoin is kept in and address, or electronic 'wallet', that can only be accessed with the matching private key or password.

Anyone who can get access to that key can then take the Bitcoin.

The twins bought roughly 120,000 Bitcoins when they were less than $10 each using $11 million from the $65 million settlement they reached with Zuckerberg

The Winklevosses came up with a their own system to protect their keys.

They printed off their keys and cut them up into pieces before storing them in envelopes in safe deposit boxes across the US. If anyone happens to steal one envelope, the person would not have access to the entire private key.

The twins did try to create an ETF or an Exchange Traded Fund for the cryptocurrency, which would have opened it up to institutional investing.

That didn't happen as the US Securities and Exchange Commission rejected the application, citing the possibility of fraud.

The twins, who also competed as rowers in 2008 Beijing Olympics, still don't get close to their arch-nemesis Zuckerberg's net worth of $70 billion.

The twins, who are best known for suing Facebook's Mark Zuckerberg claiming he stole their idea for the social networking site, started buying up Bitcoin back in 2012

WHAT IS BITCOIN?

Bitcoin is a virtual currency, the first of a new form of money held only online that can be used either to spend like ‘cash’ or as an investment a little like a commodity such as gold.

Bitcoin, like other similar electronic currencies that have followed (Ethereum, Litecoin, Zcash and Dash), are stored online in a ‘digital wallet’ and then spent on goods and services. Alternatively, you can exchange it for a traditional currency such as sterling. This can be done using a special pre-payment card that converts the cryptocurrency when a purchase is made.

HOW DOES IT WORK – AND HOW DO YOU BUY IT?

When Bitcoin was invented in 2009, it was aimed at techies who ‘mined’ for it using ‘Blockchain’ technology. Blockchain allows transactions to be managed cheaply, securely and anonymously in a kind of devolved online ledger with records of transactions held on thousands of computers.

To release coins a ‘miner’ had to verify each transaction by solving a complex maths problem. But today, the Bitcoin revolution has extended beyond the techies and miners. Cryptocurrencies can now be purchased from specialist exchanges such as Coinbase, Kraken, Bittylicious and Bitstamp.

You can usually pay for the currency by credit or debit card or bank transfer. Exchanges are likely to make a charge for each purchase of cryptocurrency. For example, Coinbase charges 3.99 per cent for card purchases.

Oliver Isaacs, a technology investor and expert in cryptocurrencies, says: ‘You can send a currency to another person’s digital wallet so a Christmas present could be on the cards.’

WHY HAS BITCOIN’S VALUE BOOMED?

The number of Bitcoins in circulation will never exceed 21 million. About 16 million have already been ‘mined’. The limit was set by a mysterious coding genius with the pseudonym Satoshi Nakamoto, the creator of Bitcoin. This aims to ensure it will always have scarcity value.

The recent price rise – a nine-fold leap since the beginning of this year alone to $11,000 (£8,000) at one point last week for a single Bitcoin – is partly due to growing interest from institutional investors and hedge funds.

But it is possible to purchase as little as a one hundred millionth of a Bitcoin (0.00000001 Bitcoin) – called a Satoshi.

WHERE AND HOW TO SPEND IT

A number of online and physical shops accept Bitcoin – from pubs and florists to holiday booking websites and charities.

Shoppers can pay online or use an app on their phone. They need to set up a virtual wallet first to store their coins. This acts like a bank account for receiving or using virtual currency – but without any consumer protection. To find shops accepting the currency visit wheretospendbitcoins.co.uk.

SHOULD YOU BUY? 'One year's winner can be next year's loser'

Warnings abound that investors’ heated love affair with Bitcoin can only end in tears.

The number of boasts of fortunes made from Bitcoin should ring alarm bells. Remember the rapid rise in share prices ahead of the bursting of the technology bubble in 2000?

Some experts warn of a 30 per cent ‘correction’ in the Bitcoin price as soon as January. Others believe governments will clamp down because the secretive nature of these currencies makes them popular with criminals and also because they might undermine international currencies.

Justin Urquhart Stewart, of wealth manager Seven Investment Management, says: ‘Bitcoin’s relentless march has the hallmarks of an investment trap. Investing in something just because it has gone up has never been sensible. One year’s winner can all too easily become next year’s loser.’

But he is attracted to the technology behind the currency. He adds: ‘Blockchain is more than a mechanism for moving money. It is about secure control of data and information. It could also be used in industries beyond financial services such as retail, healthcare and real estate.’

Patrick Connolly, of financial adviser Chase de Vere, is nervous of the hype over an investment that is neither regulated nor offers consumer protection.

He says: ‘We are not recommending any Bitcoin investments to our clients. Many people are investing without understanding the risks.’

Benjamin Dives of start-up London Block Exchange says: ‘If you are looking to invest you really need to do your homework.’

 

Author: Emily Crane For Dailymail.com 17:25, 24 December 2017 |

 

Posted by David Ogden Entrepreneur
David Ogden Cryptocurrency Entrepreneur

 

Alan Zibluk – Markethive Founding Member

Markethive

What Comes After the Futures – The Next Chapter for Bitcoin

Leave a comment

What Comes After the Futures - The Next Chapter for Bitcoin

What Comes After the Futures – The Next Chapter for Bitcoin

A Coindesk 2017 Review

On the ninth anniversary of Satoshi Nakamoto's white paper, one of the world's most respected derivatives providers, the CME Group, announced it would launch a regulated bitcoin futures market.

Not to be understated, this was a pivotal moment in bitcoin's history, and quite simply, the future has never been brighter.

It's safe to say that 2017 has been a remarkable year. Almost every single metric of adoption has shown signs of exponential growth: exchange users, wallet downloads, social media chatter, Google search trends, trading volumes, transactions per day, etc.

The price has moved hand-in-hand with these metrics, and bitcoin has reached more people than ever before.

Yet, many of the existing trading platforms have been struggling to stay online 24/7. (Even the CBOE website went down as it launched its bitcoin futures market.) In the majority of cases, these outages are not due to denial-of-service (DDOS) attacks, but the sheer volume of organic traffic.

And with this interest, the futures markets are effectively embedding bitcoin into the traditional regulated markets, adding legitimacy for those that doubted its longevity or who still believe it is a fraud (See: Jamie Dimon). Nevertheless, some bitcoin advocates take issue with the seal of approval from Wall Street.

Author Andreas Antonopoulos has said:

"I am uniquely allergic to the word 'legitimacy,' it makes me want to vomit when warmongering, war profiteering bankers use it to describe bitcoin. That takes a lot of audacity."

And it does seem there's reason to suggest Wall Street isn't directly behind this year's growth.

On March 10th, the Bats BZX exchange had its bitcoin ETF application denied by the SEC due to the unregulated and illiquid nature of bitcoin markets. The decision marked the end of a three-year journey for investors Cameron and Tyler Winklevoss, who had long sought to bring such a product to market.

Bitcoin has faced many regulatory challenges in its history, most at the hands of regulators: the LedgerX ETF denial, Chinese regulators halting zero-fee trading and ultimately closing all exchanges.

However, the market capitalization of bitcoin has risen from $20 billion to well over $300 billion in the nine months since those developments.

Fueling the fire

That's not to say that Wall Street isn't bringing new interest to the market – far from it.

The futures markets have shown that investors want to gain exposure to bitcoin in a regulated manner without having to store the underlying asset. For the average investor, there's a lot of risk is involved with holding bitcoin and this is represented by the significant premiums.

But, aside from the pushing up the price and generating media coverage, the futures market will have profound effects on bitcoin.

Increasing demand will likely lead to more futures markets and creating greater volumes over time. There are currently over 15 applications pending for new ETFs, the volume is coming and to quote Antonopoulos again, there is a long way to go:

"When you watch a trader eat a sandwich while he presses enter on a $10 billion trade, you realize how small this game is. We are going to have a lot of volume and that's not bad, in fact that is the first step to reducing volatility."

The 2017 bull run combined with scaling tension has led to a sustained increase in bitcoin volatility over 2017, breaking the five-year down trend.

The regulated futures markets and potential ETFs may be the antidote; deepening liquidity, closing the spreads and reducing the volatility, all of which will contribute to greater market efficiency, price discovery and ultimately ensure bitcoin will be a better store of value and medium of exchange.

Knowledge is Power

But regardless of the tempting volatility, no sophisticated traders will jump into bitcoin without arming themselves with knowledge. It takes a time and breadth of disciplines to understand bitcoin and its many intricacies – as well as a little bit of faith.

To that end, the "education" phase is well underway, in fact the CFTC (Commodities Futures Trading Commission) launched an online information portal days prior to the bitcoin futures launch. Its aim is to educate the public on digital commodities.

This period of research and analysis will have many positive externalities ranging from more effective regulation to greater capital allocation efficiency within the crypto economy. So far, investing within the bitcoin ecosystem has largely been haphazard. Almost every single bitcoin company has underperformed against bitcoin itself.

A greater understanding of bitcoin will foster an ecosystem that allocates capital with greater efficacy, creating the value feedback loop more prevalent in cryptocurrencies such as ethereum.

Every healthy futures market needs a mixture of speculators and hedgers that hold the underlying assets. Typically for markets run by CME, this may be farmers looking to lock in the price of their harvests by short selling contracts of wheat, corn, etc.

Today, the bitcoin futures market is mostly comprised of speculators, and there is a lack of natural sellers as most traders would have to naked short (short without holding bitcoin). At Interactive Brokers, precautions are so great you need five times the collateral to make a trade. For a contract of $100,000, a trader would need $500,000 as margin.

To quote Richard Heart:

"The history of bitcoin is shorts getting rekt, constantly."

Revving up

Still, the ability to hedge the price of bitcoin alters the risk profile of other parts of the industry, particularly mining.

Expect more risk-averse companies to venture into mining industry. After announcing they would start mining the top 10 cryptocurrencies Digital Power Corp. saw a stock appreciation of 750 percent. Digital Power are not alone and numerous tech companies are jumping aboard the mining bandwagon.

With the ability to short sell bitcoin to "lock in" mining profits, these companies can do so with drastically reduced risk. For companies like Digital Power, instruments that provide shorting on indices will be invaluable. If this trend continues, Western mining corporations could start to chip away at the currently centralized mining hash power, with 80 percent of it residing in China.

But, it will take time for volumes to build and spreads to close as only a limited number of sophisticated investors are currently capable of carrying out the risky cash and carry arbitrage. No doubt that uncertainties surrounding forking, scaling and regulation will make bitcoin’s journey to an efficient market bumpy.

The most interesting part of bitcoin's rise to the regulated economy is that it took eight years of clamor, belief and HODLing.

To be sure, though, there's more hard work ahead.

 

Author Charles Hayter Dec 23, 2017 at 23:00 UTC

 

Posted by David Ogden Entrepreneur
David Ogden Cryptocurrency Entrepreneur

Alan Zibluk – Markethive Founding Member

Markethive

Bitcoin slump sees trades suspended on certain exchanges

Leave a comment

Bitcoin slump sees trades suspended on certain exchanges

Bitcoin slump sees trades suspended on certain exchanges

Bitcoin plunged on Friday, extending a fall that saw the crypto-currency lose almost a third of its value from a record of nearly $20,000 (£15,000).

The crypto-currency's price dipped below $11,000 on Friday, according to the Coindesk exchange website, before recovering to above $13,000.

Amid the swings, three Bitcoin-related exchanges suspended certain trades.

Bitcoin has had a blistering trip over the past 12 months. Its price at the start of the year was about $1,000.

It has skyrocketed since – more than doubling in value since November – drawing interest from major firms as well as private investors.

But since Sunday Bitcoin has been on a losing streak, falling back to where it was at the start of December.

Analysts said investors should be prepared for such rapid changes, which have characterised the asset from its start.

"This is exactly how this asset trades and has done since the beginning," said Nick Colas, co-founder of New York-based DataTrek Research. "It has a lot of volatility and it will for the foreseeable future."

What happened on Friday?

This week's plunge led to a flood of trades that swamped one of Bitcoin's major exchanges, Coinbase, on Friday. A technical slowdown prompted the firm to halt buying and selling twice.

The CME and CBOE exchanges in the US also temporarily suspended trading of certain Bitcoin futures contracts, which allow investors to bet on where they expect the price of Bitcoin to be at certain points in the future.

The exchanges have automatic brakes that apply once a commodity or asset has moved by a certain amount – as happened in this case.

What sparked the slump?

The market remains driven by sentiment, according to Charles Hayter, founder and chief executive of industry website Cryptocompare.

"A manic upward swing led by the herd will be followed by a downturn as the emotional sentiment changes," he said.

Some traders would have been cashing in on the spectacular gains made over the year, he added.

Concerns about the infrastructure behind crypto-assets may also be spooking investors, said Nick Colas, himself a Bitcoin trader.

In recent weeks, markets have been rattled by hacks and allegations of insider trading.

He attributes some of this week's slump to the launch of a new crypto-asset that came earlier than planned. The surprise temporary shutdown of Coinbase on Friday was the kind of thing that could erode investor confidence, he argued.

"It is not OK to just take trading offline randomly through the day," he said. "The robustness of that system is just as important to their confidence… as the price of crypto-currencies themselves."

A spokesman for Coinbase said the firm was working around the clock to ensure smooth trading. Friday's suspensions lasted for about two hours in total.

"We're doing everything within our power," the spokesman said.

What exactly is Bitcoin?

A digital asset, Bitcoin is not backed by any governments. It is created through a complex process known as "mining", and then monitored by a network of computers across the world.

There is a steady stream of about 3,600 new Bitcoins a day, with more than 16.5 million now in circulation. Supply is expected to peak at about 21 million.

Every single transaction is recorded in a public list called the blockchain.

This makes it possible to trace the history of Bitcoins to stop people from spending coins they do not own, making copies or undoing transactions.

What are authorities saying about Bitcoin?

Regulators around the world have stepped up their warnings about its provenance as an investment.

One of this week's most striking comments came from Denmark's central bank governor, who called it a "deadly" gamble.

Earlier this month, the head of one of the UK's leading financial regulators warned people to be ready to "lose all their money" if they invested in Bitcoin.

Andrew Bailey, head of the Financial Conduct Authority, told the BBC that neither central banks nor the government stood behind the "currency" and therefore it was not a secure investment.

Despite the risk to individuals, US authorities have said they do not think it is a big enough part of financial markets to be a threat to broader economic stability.

 

Source BBC News

Posted by David Ogden Entrepreneur
David Ogden Cryptocurrency Entrepreneur

Alan Zibluk – Markethive Founding Member

Markethive

Bitcoin Price Technical Analysis for 12/22/2017 – Bears Settling In

Leave a comment

http://seriouswealth.net/wp/wp-content/uploads/2017/12/Bitcoin-Price-Technical-Analysis-for-22nd-Dec-Bears-Settling-In.

Bitcoin Price Technical Analysis for 12/22/2017 – Bears Settling In

Bitcoin price is trending lower on its 1-hour time frame and might be due for a pullback to the area of interest at $16,000.

Bitcoin Price Key Highlights

  • Bitcoin price continues to trend lower and has just dipped below the $13,500 mark.

  • Price seems to be drawing some support from this area, though, probably making its way up for a correction.

  • Applying the Fib retracement tool shows the nearby inflection points that might serve as resistance.

  • Bitcoin price is trending lower on its 1-hour time frame and might be due for a pullback to the area of interest at $16,000.

Technical Indicators Signals

The 100 SMA is below the longer-term 200 SMA to confirm that the path of least resistance is to the downside. This means that the selloff is more likely to resume than to reverse.

The 61.8% Fib is closest to the falling trend line resistance that’s been holding for the past few days. It also coincides with the broken support at the $16,000 longer-term area of interest.

The 38.2% Fib is near the $15,000 psychological level which might also contain plenty of sell orders. The 50% Fib is located at $15,285.

Stochastic is pulling up from oversold territory to reflect a pickup in buying pressure that could allow the correction to stay in play for a while. RSI is also pulling up so bitcoin price might follow suit.

Market Factors

The persistent slide in bitcoin price has probably been leading traders to liquidate their positions before the year comes to a close. The euphoria over the launch of bitcoin futures has faded after all, and there are no major catalysts that could spring another rally.

Then again, there are a few network upgrades scheduled all the way until March next year and this would still likely leave bitcoin stronger than ever. However, issues pertaining to bitcoin trading manipulation have eroded confidence in the cryptocurrency somewhat.

Meanwhile, the dollar remains strongly supported by tax reform progress as the government is on track towards implementing corporate tax cuts soon. This would be very positive for businesses and consumers, thereby upping the chances of seeing more Fed rate hikes next year.

 

Author Sarah Jenn 5:31 am December 22, 2017

 

Posteds by David Ogden Entrepreneur
David Ogden Cryptocurrency Entrepreneur

Alan Zibluk – Markethive Founding Member

Markethive

Bitcoin’s Smaller Cousins Are Leading the Crypto Rally

Leave a comment

Bitcoin's Smaller Cousins Are Leading the Crypto Rally

Bitcoin’s Smaller Cousins Are Leading the Crypto Rally

Bitcoin’s smaller cousins are outpacing the largest cryptocurrency’s gains since major U.S. exchanges started offering futures.

The biggest gainers among digital assets with at least $1 billion of market capitalization in the past seven days are so-called alternative coins Verge, Tron, Qtum and Cardano, soaring at least 300 percent. Despite some wild price swings, bitcoin’s price is mostly flat since Cboe Group Markets Inc. and CME Group Inc. made the derivatives available in the past two weeks.

“People were really excited about the futures coming in and bitcoin really rallied leading up to that,” Joe Van Hecke, managing partner at Chicago-based Grace Hall Trading LLC, said in a telephone interview from Charlotte, North Carolina. “Bitcoin’s been on a massive rally and the other coins are just now catching up as it takes a breather. Additionally some positive press around some of them added to the rally. ”

Smaller Coins Have Bigger Gains

Bitcoin's smaller rivals are outpacing the largest cryptocurrency

smaller coins have bigger gains

Here’s a primer on these lesser known digital tokens. Most of them try to improve on the very things some see as positive in bitcoin; for those who don’t like to broadcast their transactions on a public blockchain, some platforms are offering untraceable transfers. And if you’re uneasy with the fact that bitcoin can’t be easily regulated, there’s a coin to fix that too. There’s even a blockchain-less cryptocurrency that tries to eliminate fees.

Verge

Verge aims to provide individuals and businesses with fast, efficient and decentralized transactions, which was bitcoin’s original purpose, but wants to improve on bitcoin by maintaining personal privacy, using anonymity-centric networks such as Tor, obfuscating IP addressees and making transactions "completely untraceable," according to its website. Verge, with a market cap of $1.07 billion, is up more than 1,000 percent in the past week.

Tron

Tron, operated by the Singapore-based Tron Foundation, wants to build a “worldwide free content entertainment system” based on the blockchain, according to its website. The protocol allows users to freely publish, store and own data, enabling them to decide how the content gets distributed and at what cost. Payments would be made in cryptocurrencies including tron’s coin. Tron, with a market cap of $3.1 billion, is up 340 percent in the past week.

Qtum

Qtum wants to be the public ledger for business. The open-source blockchain project wants to combine the reliability of bitcoin’s blockchain with the flexibility of smart contracts of the ethereum network, according to its website. That combination will allow it to provide stability for business applications. Qtum Foundation, which develops the project, is based in Singapore. Qtum has a market cap of $5.1 billion and is up 262 percent in the past week.

Cardano

Cardano, backed by the Zug, Switzerland-based Cardano Foundation, is a decentralized public blockchain that aims to protect user privacy, while also allowing for regulation. Cardano is a multi-layer protocol; the settlement layer will have a unit of account, while the control layer will run smart contracts and will be programmed to recognize identity, assisting compliance, according to its website. The system is designed to be upgraded so that it can evolve quickly. Cardano has a market cap of $14 billion, and is up 348 percent in the past week.

Other cryptocurrencies making waves because of their longer-term price moves and new developments:

Monero

Monero is a decentralized cryptocurrency that focuses on privacy, hiding the origins, amounts, and destinations of all transactions. Monero on Dec. 5 announced that more than 35 artists, including Mariah Carey, Lana del Rey and Marilyn Manson, will start accepting the cryptocurrency on their online stores. Monero’s price has more than quadrupled to over $420 in the past two months.

Iota

Iota is a cryptocurrency backed by a distributed ledger that’s not on a blockchain. Instead the network is called a "tangle" and aims to eliminate fees by creating a decentralized peer-to-peer system. Iota’s tokens have been on a rollercoaster, rallying on a statement on its blog that seemed to imply a partnership with Microsoft Corp., and then plunging after the platform clarified it’s not in a formal agreement with the tech giant. Iota’s price has soared from less than a dollar a month ago to more than $5, climbing to become the sixth biggest cryptocurrency by market cap, right after litecoin.

 

Author Camila Russo 20 December 2017, 15:37 GMT

 

Posted By David Ogden Entrepreneur
David Ogden Cryptocurrency entrepreneur

 

Alan Zibluk – Markethive Founding Member

Markethive

Bitcoin Cash makes waves as it becomes available on Coinbase – and then halts trading

Leave a comment

Bitcoin Cash makes waves as it becomes available on Coinbase – and then halts trading

Bitcoin Cash makes waves as it becomes available on Coinbase – and then halts trading

Bitcoin Cash, a fork of the more popular cryptocurrency that was created in August, is now fully supported on Coinbase’s exchange, so you can buy and sell the currency there – just not immediately.

Abbreviated as BCH, the currency showed Cash prices at roughly $8,500, or nearly three times higher than the value it commands on other exchanges (Coinmarketcap has it at $3,381 at the time of writing).

TechCrunch noted that the price surge was likely the result of a glitch, as no other exchange reflected a similar increase in value. Coinbase’s US-based sister exchange GDAX noted that it’s clearing BCH markets until 9AM PST on December 20. As such, Coinbase has halted BCH trading on its platform as well – though sends and receives are still possible.

The company noted that you should be able to buy and sell BCH again tomorrow, but didn’t say whether it determined what might have caused the hiccup.

Update: GDAX explained that it paused BCH trading owing to high volatility, and that order books will reopen on December 20 at 9AM PST.

 

Author ABHIMANYU GHOSHAL

 

Posted by David Ogden
David Ogden Cryptocurrency Entrepreneur

Alan Zibluk – Markethive Founding Member

Markethive

Watch out for a correction in bitcoin after a parabolic rise

Leave a comment

Watch out for a correction in bitcoin after a parabolic rise

Watch out for a correction in bitcoin after a parabolic rise

  • Cryptocurrencies are suitable for short-term trading

  • Bitcoin futures have limits on expiry

  • The bitcoin trend shows room for a 50% correction

Bitcoin trading, and the capital allocated to it, remains a very small part of the multi-trillion dollar equity markets. It is an even smaller part of the much, much larger derivatives market.

The key problem with bitcoin and other cryptocurrencies is that they are fiat currencies in the true sense of the word. A fiat currency relies on investors confidence for its value. A fiat currency is not backed in gold or some other asset. Most world currencies are fiat currencies, but they are backed by sovereign states. It is rare for a sovereigns States to default on debt which in turn leads to currency collapse.

Cryptocurrencies are the currency of choice for money laundering, hackers, terrorists and criminals. Governments will not stand by and allow these cryptocurrencies to evade the regulations around these activities. There is a high risk that sovereign executive action will destroy the value of these bitcoins.

Legitimacy

Cryptocurrencies do not have the support of sovereign states. In fact some sovereign states – China – refuse to recognize these as legitimate currencies.

This is the most significant risk in cryptocurrency trading. At any time a sovereign state like the United States may ban or prohibit cryptocurrency use and trading and thus render all contracts immediately worthless. This makes the cryptocurrencies suitable for short-term trading with exceptionally good risk management.

The listing of bitcoin contracts on Chicago futures exchanges does not legitimize Bitcoin. These contracts can only be cash settled in U.S. dollars. The contract cannot be converted to bitcoins on expiry. This gives an indication of the level of confidence in the currency. Creating a bitcoin futures contract legitimizes and regulates the trading activity, but it does not legitimize bitcoin as a currency.

CME, the world's largest futures exchange, launched its bitcoin futures contract this week under the ticker "BTC." The front-month contact opened above $20,000. The previous week the Chicago Board Options Exchange launched it own futures contract with the front-month topping $18,000.

Cryptocurrencies are also tracked on CoinDesk, which monitors prices from digital currency exchanges Bitstamp, Coinbase, itBit and Bitfinex.

The trend

This trend is a parabolic curve. The trend is best described using a segment of an ellipse, mistakenly called a parabolic curve
 

Once the three anchor points are set, the position of the curve does not change. The trend starts off slowly then accelerates very rapidly until the activity on the price chart is almost vertical.

Prices will soon move inevitably to the right of the curve. This usually signals a rapid retracement of 50% or more.

History

Alexandre Dumas wrote a book, The Black Tulip, which should be read by any person thinking about trading bitcoins. If anything, the situation is worse now that Dumas describes in his day when tulip futures were actively traded on the Amsterdam stock exchange.

Bitcoins will not impact the stock market other than to remove some speculative capital from the equity market. However the amounts are small when compared with overall market activity.

 

Author Daryl Guppy CNBC

Posted by David Ogden Entrepreneur
David Ogden Cryptocurrency Entrepreneur

Alan Zibluk – Markethive Founding Member

Markethive

Analyst who predicted bitcoin’s rise now sees it hitting $300,000-$400,000

Leave a comment

Analyst who predicted bitcoins rise now sees it hitting $300,000-$400,000

Analyst who predicted bitcoin's rise now sees it hitting $300,000-$400,000

  • Ronnie Moas in July put a $5,000 price target on bitcoin when it was at $2,600
  • The founder of Standpoint Research now sees the cryptocurrency rising by another 500 percent

Bitcoin will surge past $20,000 and continue its meteoric march into six figures, according to independent research analyst Ronnie Moas.

"Bitcoin is already up 500 percent since I recommended it in the beginning of July, and I'm looking for another 500 percent move from here," said Moas, the founder of Standpoint Research, a self-described "one-man operation" based in Miami.

Over the summer, Moas put a $5,000 price target on bitcoin for 2018. At the time, the digital currency was trading at just $2,600. Since then, it has surged to $18,168 as of Monday, according to prices tracked on Coinbase.

"The end-game on bitcoin is that it will hit $300,000 to $400,000 in my opinion, and it will be the most valuable currency in the world," Moas told CNBC's "The Rundown."

"I don't know how much gold there is in the ground, but I know how much bitcoin there is, and in two years there will be 300 million people in the world trying to get their hands on a few million bitcoin."
-Ronnie Moas, founder, Standpoint Research

The analyst's comments came as the CME, the world's largest futures exchange, launched its own bitcoin futures contract. The Cboe did the same earlier this month.

His aggressively bullish call — a near-$380,000 dollar appreciation on today's prices — is based on the idea that since only 21 million bitcoin can ever exist. Increasing demand for the digital currency will naturally drive its price up, he said.

"I don't know how much gold there is in the ground, but I know how much bitcoin there is, and in two years there will be 300 million people in the world trying to get their hands on a few million bitcoin. This mind-boggling supply and demand imbalance is what is going to drive the price higher," Moas said.

Not everyone agrees

Moas said he believes his price target is a conservative call, but others disagree.

"We think that it's risky," Vasu Menon, vice president of Wealth Management at Singapore-based bank OCBC, told CNBC.

"I don't see strong fundamental drivers for this bitcoin rally," he said.

But Moas says the party is just getting started.

"I look at bitcoin the same way I look at Amazon," he said. "The way to play Amazon for the last 15 years was to buy it, hold it, and add on the dips. That's exactly the way I think people should be playing bitcoin."

Author Dan Murphy Correspondent, CNBC

 

Posted by David Ogden Entrepreneur
David Ogden Cryptocurrency Entrepreneur

Alan Zibluk – Markethive Founding Member

Markethive

Bitcoin Price Weekly Analysis – BTC/USD Upside Drift Above $20,000

Leave a comment

Bitcoin Price Weekly Analysis – BTC/USD Upside Drift Above $20,000

Bitcoin Price Weekly Analysis – BTC/USD Upside Drift Above $20,000

Bitcoin price is surging higher towards $20,000 against the US Dollar. BTC/USD might soon break the $20k level and gain further traction in the near term.

Key Points

Bitcoin price is gaining pace once again and is currently trading above $18,000 against the US Dollar.

There is a monster bullish trend line forming with support at $17,000 on the 4-hours chart of BTC/USD (data feed from SimpleFX).

The pair is moving higher and it might soon break the $20,000 level for more gains in the near term.

Bitcoin price is surging higher towards $20,000 against the US Dollar. BTC/USD might soon break the $20k level and gain further traction in the near term.
 

Bitcoin Price Trend

There were nasty gains in bitcoin price above the $16,000 level against the US Dollar. After a major correction, the price found support above $15,000. Later, buyers gained momentum and were able to push the price above the $17,000 level. It opened the doors for more gains and the price was able to trade to a new all-time high above $19,000. The recent high was $19,426 and it seems like the current upside move is far from over.

During the upside move, the price was able to break a major connecting resistance trend line at $18,000 on the hourly chart. The current price action is positive above $17k and it seems like the price might continue to move higher. On the downside, an initial support is around the 23.6% Fib retracement level of the last wave from the $15,590 low to $19,426 high. Moreover, the broken trend line at $18K could act as a strong support in the near term.

Moreover, there is a monster bullish trend line forming with support at $17,000 on the 4-hours chart of BTC/USD. Therefore, the current trend is very positive and the pair might accelerate above $20K in the near term.

Looking at the technical indicators:

4-hours MACD – The MACD is gaining momentum in the bullish zone.

4-hours RSI (Relative Strength Index) – The RSI is reaching the overbought levels, but with no signs of a major correction.

Major Support Level – $17,000

Major Resistance Level – $20,000

 

Author: Aayush Jindal 6:00 am December 17, 2017

 

Posted by David Ogden Entrepreneur
David Ogden Cryptocurrency Entrepreneur

 

Alan Zibluk – Markethive Founding Member

Markethive

Tax dept starts probe into Bitcoin exchanges to ascertain rate they can be taxed under

Leave a comment

Tax dept starts probe into Bitcoin exchanges to ascertain rate they can be taxed under

Tax Dept starts probe into Bitcoin exchanges to ascertain rate they can be taxed under.

 

The indirect tax department has launched an investigation into Bitcoin exchanges operating in India to ascertain at what rate they can be taxed under the goods and services tax (GST) regime, two people with direct knowledge of the matter said.

The development comes as the income tax department launched searches on top Bitcoin exchanges including Zebpay, Unocoin and CoinSecure on Wednesday.

According to the indirect tax officers, the investigations began probe about a month back and top executives and promoters of some Bitcoin exchanges were asked to explain their business model and how much indirect tax — either service tax or value-added tax — could be levied on the last financial year's revenue.

"There is ambiguity around how much sales tax is applicable on revenues of these startups as the product they deal in is not defined by the current tax laws," said a person with direct knowledge of the matter. "No satisfactory answer is yet provided by any of these Bitcoin startups."

A senior executive at one of the top seven Bitcoin exchanges in the country confirmed that both direct and indirect tax officials have been questioning the company about its business model and taxability. "While the indirect tax department has been calling senior executives since mid-November, the direct tax officials started reaching out to us two weeks back," the person said.

Bitcoin is the most popular among digital currencies that allow online payments directly from one person to another without any middlemen or going through any financial institution. With many businesses beginning to accept them, there is rising demand for such cryptocurrencies that come without any government control and allow anonymous transactions. More than that, Bitcoin has become a craze among investors, with its value skyrocketing more than 1,200% in 2017 alone. Price of one Bitcoin stood at $17,900, or .`11.46 lakh, on the Luxembourg-based Bitstamp exchange as on Friday evening.

Among other things the tax department wants to know if Bitcoins are currency, goods or services. Tax rates would depend on how the product is defined.

"Bitcoin may not qualify as currency or money as it is not a legal tender for Indian indirect tax laws," said Pratik Jain, national leader, indirect tax, PwC. "Therefore, VAT (value-added tax) or GST implications may arise. In case it is sold to overseas customers from India it may qualify as 'export'." However, if there is a commission or fee earned in the transaction, then the business of Bitcoin exchanges is likely to be viewed as a 'service', Jain said. "There are several grey areas which need to be investigated, in light of the precedence and guidance available under laws of other countries."

Industry insiders said that Bitcoin players, including Indian exchanges, earn their revenue through commission, transaction fees or price arbitrage. There was no response to queries sent to Zebpay and CoinSecure on Wednesday. Unocoin told ET: "Given that we have not received any notice, none of your questions are relevant."

No tax notices have been issued yet. That can happen only after an investigation is concluded and the exact tax applicable is determined.

One person close to the development said the indirect tax department is likely to issue demand orders to Bitcoin exchanges by the first quarter of next year. "The sales tax department and VAT authorities would be well within their rights to issue arbitrary demand orders (for 2016-17, before the implementation of GST)," the person said. GST was put in place on July 1.

According to another person in the know, VAT authorities from Gujarat, Maharashtra and Karnataka have separately initiated an inquiry to determine if Bitcoin exchanges are liable to the tax.

Tax experts said calculating indirect tax on the revenue earned by the Bitcoin startups is causing problems due to lack of clarity around the 'place of supply' provisions.

Income-tax authorities too are on the trail of the Indian Bitcoin sector. ET reported on Monday on an ambiguity in income tax to be paid by Bitcoin holders in India. According to people with direct knowledge of the matter, the income tax authorities wanted access to data on Indian Bitcoin holders and the gains they have made.

The stratospheric rise in Bitcoin valuation has prompted several investors and experts, including Warren Buffet and JP Morgan's Jamie Dimon, to warn that it is a bubble. The Reserve Bank of India (RBI) has so far issued three warnings against Bitcoins — the first in 2013, the second in February this year and the third last week.

There are 1,600 types of cryptocurrencies available across the globe based on blockchain technology. The more common ones include Bitcoin, Ethereum, Ripple, Litecoin and Dash.

"One needs to choose a cryptocurrency wallet and an exchange to trade on the currency," said Vishal Gupta, founder of SearchTrade, a search engine company that uses Bitcoins to pay users every time they search on the platform. "From there it is as simple as filling out a form and waiting for the transaction to process."

Gupta, who also cofounded the Digital Assets and Blockchain Foundation India (DABFI), however, declined to share how players (wallet or facilitators) earn their revenues.

 

Authors: Sachin Dave, Vishal Dutta ET Bureau|Dec 16, 2017, 09.43 AM IST

 

Posted by David Ogden Entrepreneur
David ogden cryptocurrency entrepreneur

Alan Zibluk – Markethive Founding Member