Daily Archives: May 21, 2017

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Bitcoin Price Breached $2,000, Pundits Coin-Flip What Comes Next

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Bitcoin Price Breached $2,000, Pundits Coin-Flip What Comes Next

  

Bitcoin price finally breached the much anticipated $2,000 line,

sending excitement throughout the burgeoning global cryptocurrency community. As early as five a.m. GMT+2 on Saturday, CoinMarketCap listed the pacesetter of digital currency for $2014 with almost $34 mln Market Cap. The $2,000 lane has been expected for some time now but it intensified three days ago when Satoshi Nakamoto's brainchild stabilized at the $1,800 range. On Friday it made it to the $1,900s further increasing the $2,000 price obsession. As much as it is good news for the whole community, what does this mean for all of us? What is in it for the ecosystem? Experts and community members differ on what’s ahead.

Lingham: not healthy

Bitcoin Price Pundit Vinny Lingham is not excited about the current price trend and sees it as very deleterious for space. "Not healthy in my opinion, but clearly everyone else knows best," he noted. "I'll just wait and see."

Malcolm Macleod: problems remain

More so, Gulden Wallet Developer, Malcolm Macleod's concern is that the price has been pushed too high, without the fundamentals to back it up and ultimately it is damaging to the ecosystem. He cites particularly the ongoing transaction queue problems. "These things are always a mixed bag, so probably some good and some bad things come from it," Malcolm stated.

More flow from fiat

But Alexandro Colorado of Bitcoin Mexico believes otherwise. For him, even though Bitcoin certainly has the availability issue but the rally has merits. "It makes sense as there is more money coming into the system," Alexandro explained to Cointelegraph. The Chief Cat Herder of Cryptopulco, the annual cryptocurrency conference in Acapulco, Mexico, Nathan T. Freeman had this to say:

"BTC increases in value relative to USD because people are willing to give up more fiat currency in exchange for Bitcoin. If you try to explain why they are willing, you are projecting a motive for their subjective value, and you're most likely full of shit. Even if the motive you ascribe is correct, you can't prove it. It's just an unfalsifiable claim in a sea of individual choices. It's all good."

Bitcoin Bubble to burst in 2019?

Though the network is growing impressively, hitting pass $2,000 seems like an impending doom for some experts. Whilst others point to some nagging fundamentals, many are optimistic it will keep growing without any blemish.

Alexandro Colorado says:

"A bubble is some sort of manipulation but actual growth is another thing. Companies grow billions in months, why crypto shouldn't? The Mexico-based Bitcoin enthusiast pointed out that a lot of the world still don't know or trust crypto but it doesn't mean we are heading into a bubble.”

When Cointelegraph asked Vinny Lingham if there is an impending bubble,

this was his answer:

"Yes, but people who called the bubble in 2011 were wrong. It took two years to burst."

Coin-flipper

Malcolm MacLeod is unsure if there is going to be a burst, but it is unclear to him what fundamentals if there are any behind the latest price growth. "I think there is a high chance that it is a bubble of some kind but I hope to be wrong," he indicated. Absorbingly, this is Nathan T. Freeman's take on whether it is a bubble and

Will it burst soon:

“There's only one major event in Bitcoin itself that could shape the future, and that's the outcome of the block size debate. All other factors are outside the purview of Bitcoin itself and therefore could shape out. Anyway, you're talking about predicting the simultaneous global effect of huge political shifts.”

"Predicting a bubble is a dice roll, and anyone who claims to know those outcomes is a coin-flipper," he added.

Chuck Reynolds
Contributor
Please click either Link to Learn more about TCC-Bitcoin.

Alan Zibluk – Markethive Founding Member

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Bitcoin Price Hits $2,087, Trading in Japan, South Korea for $2,350

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Bitcoin Price Hits $2,087, Trading in Japan, South Korea for $2,350

  

Bitcoin price established its new all-time high at $2,087 earlier today

after surging past its previous all-time high set at $2,050, with demand toward Bitcoin rising from institutional investors in the US, Japan, and South Korea. At the time of writing, Bitcoin is being traded in Japan and South Korea, the second and third largest Bitcoin exchange markets in the world, at around $2,350, at an 11 percent premium relative to the global average Bitcoin price and the price listed by US-based Bitcoin exchanges. Analysts including Charles Hayter, the CEO of CryptoCompare, explained that the Japanese and South Korean Bitcoin exchange markets played a key role as the driving factor of Bitcoin’s recent price surge. In an interview with CNBC, Hayter stated:

"Arbitrage between the fiat pairs drags markets up or down in line with leading markets. At present, volumes on the KRW and JPY pairs dominate trading with a combined 48 percent market share.”

Cointelegraph previously emphasized the importance of the Japanese and South Korean exchange markets on the global Bitcoin market. The two markets hold over 48.6 percent of the global bBtcoin exchange market share and represent the vast majority of institutional investors within Asia.

Japan, in particular, has experienced an explosive growth in demand for Bitcoin as some of the country’s most influential conglomerates announced the launch of their independent digital currency exchanges, with the vision of facilitating fiat-to-digital currency trading securely and transparently, with low fees.

Forever blowing bubbles

Cointelegraph reported that a significant number of investors have started to fuel an altcoin bubble concentrated around Ripple and NEM. IndieSquare co-founder and Japan-based researcher Koji Higashi stated that the legalization of digital currency and the tax exemption of Bitcoin convinced beginner and casual cryptocurrency traders that every other cryptocurrency is legitimate and well-based. However, Higashi noted that most investors are investing in cryptocurrencies apart from Bitcoin with relatively shallow knowledge and understanding of digital currencies.

Higashi explained:

“I think I know the answer now. Newly entering Japanese investors are driving this great altcoin bubble and not-so-smart money is flowing into the space especially into some altcoins at a rather concerning rate. Another thing to note about this new trend is that the general lack of understanding or appreciation of the technology by many of new users.”

What happens next

In the next few months, as Bitcoin maintains its momentum and upward trend, it is likely that the Japanese cryptocurrency exchange market will demonstrate some stability and see a decline in interest over alternative cryptocurrencies or altcoins. If so, the demand for Bitcoin will likely increase over time. Currently, analysts and researchers at mainstream media outlets such as CNBC and Bloomberg are attributing Bitcoin’s recent upward momentum to the economic uncertainty and instability of the US. This is a rational conclusion considering that the US replaced the Japanese Bitcoin exchange market for the first time in the past 12 months to become the largest Bitcoin exchange market.

Chuck Reynolds
Contributor
Please click either Link to Learn more about TCC-Bitcoin.

Alan Zibluk – Markethive Founding Member

Markethive

Palestine Considers Launching Its Own Bitcoin, But Why Reinventing Wheel?

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Palestine Considers Launching Its Own Bitcoin, But Why Reinventing Wheel?

  

In a bid to free its economy,

Palestine is considering a digital national currency. But with Bitcoin around, is it worth reinventing the wheel?

Using foreign currencies

There are many countries that do not have a national currency and instead use another country’s currency in daily lives. For example, East Timor, British Virgin Islands, Palau and Zimbabwe use the US dollar. Similarly, Montenegro, San Marino and Kosovo use the Euro. The case of Palestine is an interesting one as it uses multiple currencies like the US dollar, Jordanian Dinar and the Israeli Shekel. Now, it has emerged that the Palestine Monetary Authority (PMA) is planning its own digital currency, something of a Palestinian Bitcoin.

Enter the Palestinian Pound

There are a number of digital currencies already in circulation. Bitcoin, of course, is the most popular and widely used of them all. These currencies are not issued by a central monetary authority like a central bank. However, inspired by them some central banks have been mulling the idea of launching national cryptocurrencies as well. We reported that Senegal was introducing a national cryptocurrency as an example. Similar plans have also been discussed with regards to Sweden and China.

A Palestinian currency thus would not be the first or unique in this respect but it does bring to fore an interesting use case: countries that have trouble printing their own currencies due to one reason or another can explore a digital currency alternative. The proposed digital currency would be called the Palestine Pound.

Skirting Israeli curbs

The proposed digital currency can help Palestinians skirt around Israeli curbs that have been imposed and the need for obtaining clearance from them.

Azzam Shawwa, Governor of the Palestine Monetary Authority was quoted by Reuters as saying:

“If we print currency, to get it into the country you would always need clearance from the Israelis and that could be an obstacle, So that is why we don't want to go into it.”

The digital currency would largely eliminate that problem for the Palestinians. According to Reuters another problem that PMA might encounter is the 1994 Paris Protocol, which gives PMA the legitimacy of a central bank but does not allow it to issue currency. The Paris Protocol suggests that the Palestinians use the Israeli currency – The Shekel instead.

Five-year strategy

According to what the PMA governor told Reuters, the Palestine Pound is a part of the bank’s ‘five-year strategy’, which will be published before the end of 2017. The governor also revealed that the digital currency route is a preferred alternative. It would be interesting to see if the Palestinians could pull off a national cryptocurrency in the short to medium term.

However, the governor seems to realize the scope of the wider challenge that awaits him. He revealed to Reuters:

“But it's not only the currency, you have to see the economy also. Issuing (a currency) is something, but you also need the backbone of the currency; reserves, gold, oil and that is part of the business plan.”

Bitcoin to help oppressed

While a national currency for Palestine may or may not happen, countries that do not have their own currencies can always use Bitcoin as an alternative.

As Max Keiser wrote way back in 2013 in RT:

“Bitcoin, like the spiritual leaders who have come before it in the Middle-Eastern desert, is a miraculous gift capable of transforming an oppressed, forgotten people. The Palestinian economy is a multi-billion dollar economy that unfortunately benefits mostly outsiders. But if Bitcoin were adopted as the official currency, Palestinians would be able to shape their own economic destiny and in so doing their sovereign destiny.”

If economic independence is the stated aim of the PMA, then it should probably explore what already exists instead of reinventing the wheel.

Chuck Reynolds
Contributor
Please click either Link to Learn more about TCC-Bitcoin.

Alan Zibluk – Markethive Founding Member

Markethive

Top 10 Reshuffles On CoinMarketCap: Ethereum vs. Ripple, Nem vs. Litecoin & More

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Top 10 Reshuffles On CoinMarketCap: Ethereum vs. Ripple,
Nem vs. Litecoin & More

  

As Bitcoin continues to grow,

some altcoins are not being left behind either. Last week there was an intense competition on the Top 10 of CoinMarketCap with some casualties being posted. It was so engrossing to see some old cryptocurrencies uprooted from their longstanding positions. This registered the fact that no entity has a monopoly over a particular position.

Ethereum lost to Ripple

Smart Contract king, Ethereum in a very surprising circumstance lost its long-held number two spot to snowballing Bank Transfer giant Ripple. Fascinatingly, within the week it doubled its value and it was near twice the value of Ethereum. Rising almost 40 percent, its market cap was over $15 bln. It has now lost almost $2 bln and Ethereum is now closing the gap. Actually, it was the second best-performing cryptocurrency on the top 10 last week.

Yet still, Ripple leads Ether with almost $2 bln in Market Cap. Some analysts in the space are strongly convinced it is likely that it will recover and take back the number two position it nearly monopolized for a couple of years. It remained to be seen since Ripple keeps making deals with banks around the world expanding its portfolios. Anyway, Ethereum with no doubt as well has become a popular smart contract platform.

NEM pushed Litecoin

In a related development, on Thursday fast-growing NEM also pushed SegWit trailblazer, Litecoin to the fifth rank and became the world's fourth most valuable digital currency. This was when the Ethereum Token rose a towering 50 percent in growth rate. It became one of the notorious astonishments associated with altcoins rise since Litecoin, the silver of crypto has been performing awesomely in the market since choosing the SegWit path. Well in this space nothing is no more a bewilderment. NEM now holds more than $2 bln in Market Capitalization. Significantly New Economic Movement (NEM) was the best performing crypto in the week and continues to lead in altcoin growth in 2017. It seems to be attracting more investors to its fold.

Stellar Lumen vs. Monero

Another interesting raging battle is between the radioactivity of Ripple as a result of a misunderstanding, Stellar Lumen, and steadily declining Monero. On Thursday XLM dislodged Monero from the eighth rank but the latter fought back gallantly to take it back on Friday. Alas! This did not last long and the Microfinance Blockchain once again took over on Saturday. At the time of filing this report, the difference in Market Cap between the two was $20 mln. If Monero remains the way it is tanking, the likelihood of gaining back the position is slim. Moreover, Stellar Lumen so far has given all indications it has come to the top 10 to stay.

ByteCoin bites Steem

Among the other things, last week witnessed a newcomer in the ranks of the elites when Bytecoin crashed the gates of the top 10 sending Steem stumbling down below. For four days now Bytecoin has held the tenth position firmly. It is up to them to prove to the community if they have come to stay or not. Meanwhile, Siacoin is barking fiercely to gain entrance to the top as it is now at the eleventh spot. Cointelegraph anticipates a hot week ahead.

Chuck Reynolds
Contributor
Please click either Link to Learn more about TCC-Bitcoin.

Alan Zibluk – Markethive Founding Member

Markethive

Untraceable Coins Storming Into Top 10 Cryptocurrencies – Bytecoin Surge

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Untraceable Coins Storming Into Top 10 Cryptocurrencies – Bytecoin Surge

Bytecoin, an untraceable privacy-preserving cryptocurrency,

has just seen an astronomical triple-digit percent surge in price. The cryptocurrency soared to the all time high market capitacapitalization44,000,000, before calming down to around $300,000,000 and establishing itself at the top 10 cryptocurrencies by market capitalization at the time of writing (according to CoinMarketCap). A symbolic turning point for one of the first untraceable cryptocurrencies launched in 2012.

The price hike happens upon the flourishing investor interest in cryptocurrency markets, and in particular upon the growing public appreciation of untraceable cryptocurrencies that contain privacy mechanisms (other examples are Monero, Dash and Zcash, which have also experienced an increase in value in the recent months). The Bytecoin surge may also be attributed to the announcement of the new features, which include allegedly never-before-implemented untraceable tokens – also known as “digital assets” or “colored coins”.

Bug discovery

Amid the Bytecoin price rise, a cryptocurrency Monero has released a statement disclosing a vulnerability in the CryptoNote protocol, that underlies both Monero and Bytecoin cryptocurrencies. As written in the statement, the bug “allows for the creation of an unlimited number of coins in a way that is undetectable to an observer unless they know about the fatal flaw and can search for it.” The statement does not list Bytecoin as one of the currencies that have updated the protocol following the detection of the bug.

According to the official response from the Bytecoin, its development team has been aware of the vulnerability in April 2017, when during software testing it has discovered that several malicious transactions creating 504 million Bytecoins had appeared in the network – which accounts for 0.2% of the total 183 billion Bytecoin supply.

Questions remain

The development team states that it patched the bug and worked with the mining services to update their software (that validates the transactions in the network), as soon as the bug was found. According to Minergate, the major Bytecoin mining pool, it was contacted by the Bytecoin team in the mid April and “the fix to the mining software has been implemented by adding more checks for the transactions consistency” shortly thereafter.

The updated version prevented blocks with malicious transactions to be mined and thus no extra coins could be created. The questions still remain about the cryptocurrency exchanges and wallets, who are supposedly “safe to stick with the previous version of software”, according to the Bytecoin statement, but “encouraged to update the protocol”.

The rise of token untraceability

In spite of this bug discovery and patching, the CryptoNote-based cryptocurrency markets, including Monero and Bytecoin, has been positive, keeping them among the top 10 by capitalisation. Whether it is because the coin holders are not well-informed of the protocol issues or they are confident of the development teams’ ability to manage these issues, the fact remains that Monero’s and Bytecoin’s capitalizations jointly amount to $750,000,000 at the time of writing, and as a result many early adopters have gone from rags to riches.

With the ICO phenomenon coming into place this may not be all, as new cryptocurrency teams emerge stating their intention to adopt the privacy-preserving CryptoNote protocol. In fact, if the concept of untraceable tokens (untraceable digital assets) becomes a reality this year as promised in the Bytecoin roadmap, the major trends of the crypto world could in theory converge: the booming ICO phenomenon, the increasing capitalisation of tokens created on top of various blockchain platforms, and the growing market interest in untraceability and privacy. We are here to observe and see.

Chuck Reynolds
Contributor
Please click either Link to Learn more about TCC-Bitcoin.

Alan Zibluk – Markethive Founding Member

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Bitcoin Price Breaks $2,000 in Historic All-Time High

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Bitcoin Price Breaks $2,000 in Historic All-Time High

Bitcoin Price Breaks $2,000 in Historic All-Time High

 

Bitcoin price has, for the first time in its history, reached $2,000 and beyond during trading on Saturday.

The world’s most prominent cryptocurrency began trading in 2017 at $1,000 per coin, with today’s new all-time high representing a doubling of value for bitcoin. On an average, bitcoin price climbed to $2,040.88 in global trading markets. On the Bitstamp Price Index (BPI), price struck a high of $2,020.

Trading leading into Saturday saw global average prices climb to $1,968.48. A steady period of trading during the day saw prices climb throughout before crossing the symbolic $2,000 milestone at 18:00 (UTC) on Saturday.

“Nearly seven years ago to the day, the first real-world Bitcoin transaction was completed in Florida, when two pizzas were bought for 10,000 bitcoins,” reminded eToro senior markets analyst Mati Greenspan in conversation with CCN. “If you’d invested $100 in bitcoin that day and left it there, you’d be sitting on over $20 million right now.”

He added: “The $2,000 mark is a historical moment for Bitcoin”.
 

Intriguingly, trading over the last 24 hours was led by US markets followed by Japan, the inverse of recent trading trends of the past few months. Bitfinex, GDAX and Bitstamp led the way in the US marketplace, altogether leading to over 35% of trading in the past 24 hours. Trading markets in Japan, China and South Korea combined for over 45% of trading volumes.

Bitcoin prices have gained 50% in May alone, a month that saw bitcoin in the headlines for being abused by ransomware extortionists behind the global WannaCry cyberattack.

“One might have expected that the WannaCry cyberattack – in which hackers asked for payment in Bitcoin – would have had a negative effect on price, but it seems like not even a ransomware attack can prevent the rise of Bitcoin,” Greenspan added.

The analyst also revealed that bitcoin’s soaring gains hasn’t put off existing investors from continuing to invest in the cryptocurrency. “Bitcoin is gaining some serious momentum among investors on our platform, with 88% of Bitcoin traders still buying the asset.”

Bitcoin’s flourish comes during a time of marked gains for the wider cryptocurrency ecosystem, led by the likes of Ethereum, Litecoin and Ripple.

After hitting an unprecedented $100 for the first time on Thursday, Ethereum’s ether token is now trading above $125.

Altogether, the entire cryptocurrency market cap is now valued above $70 billion, up from less than $30 billion a little over a month ago.

David Ogden
Entrepreneur

Author:Samburaj Das

 

Alan Zibluk – Markethive Founding Member