Bitcoin passed $8,000 as institutional money inches closer to cryptocurrency markets

Bitcoin passed $8,000
as institutional money inches closer
to cryptocurrency markets

The future(s) is bright.

Bitcoin’s seemingly unstoppable bull run continued as it passed $8,000 for the first time around 6pm UTC yesterday (Nov. 19). The price has been flirting with $8,000 for days, probably because several signs point to the long promised arrival of institutional money in the cryptocurrency markets.

One indicator is the increasing popularity of bitcoin futures. Over the weekend, the first year-long contract for the price of bitcoin was agreed by traders on the LedgerX platform, an issuer of derivatives regulated in the US. The contract is an option to buy bitcoin at $10,000 by Dec. 28, 2018. According to LedgerX, this carries an implied probability that bitcoin will be above $10,000 on that date. LedgerX has conducted $16 million in bitcoin futures trades since it opened for business on Oct. 20, according to CoinDesk. Another major futures trading platform will also start testing bitcoin derivatives today. The Chicago Mercantile Exchange (CME) will begin letting customers test bitcoin futures today. The exchange plans to let customers trade bitcoin futures for real before the year is up.

Another sign that institutions are getting serious about trading bitcoin is a new service offered by the exchange and wallet provider Coinbase. It launched Coinbase Custody, a storage solution for institutions with at least $10 million in cryptocurrency holdings, last week (Nov. 16). Coinbase chief executive Brian Armstrong claimed in a blog post announcing the product that there’s over $10 billion in institutional money on the sidelines of the cryptocurrency market, awaiting custodial and other solutions, although he didn’t provide a source for this estimate. The eye-popping returns on bitcoin and other cryptocurrencies are difficult for any fund manager to ignore. Their entry to the still young cryptocurrency markets could drive the price of bitcoin and its ilk higher still. 

A Chinese tech giant just joined Facebook and Amazon in the $500 billion valuation club

WeChat mascots are displayed inside Tencent office at TIT Creativity Industry Zone in Guangzhou, China May 9, 2017. Picture taken May 9, 2017.

The latest company to cross the $500 billion valuation threshold

is virtually unheard of in the West. Shares of Shenzhen-based Tencent, a company that made its mark with its popular WeChat messaging service, rose 4.1% in trading Monday on the Hong Kong Stock Exchange to close at HK$420, bringing the company’s valuation to HK$3.99 trillion (about $510 billion).

That places Tencent alongside major US-based technology giants who have passed the $500 billion mark in recent months. Amazon, which went public in 1997, hit a $500 billion valuation in July. Facebook, which went public in May 2012, reached a $500 billion valuation that same month. (Both companies remain over the $500 billion mark.) Tencent went public in 2004 (paywall), with shares priced at HK$3.70 (then $0.47), raising nearly $200 million. Interest in the stock remained tepid for about five years, before its price began to rise—slowly in 2009, then steadily by 2013, and then meteorically in 2017. Its stock price is up over 120% since its first of day trading this year, according to Factset.

Tencent’s mobile chat app, ubiquitous across the country, originated in 2011 as the Chinese answer to WhatsApp, and now counts some 980 million active monthly users. It has evolved into a news reader, an online payment provider, a taxi hailer, and a search engine all rolled into one. While it makes very little money for Tencent directly, it’s a funnel for the mobile and PC games that have long remained Tencent’s cash cow, and it might eventually turn into something lucrative in its own right.

The company has delivered stellar earnings over the past year, driven largely by the success of the hit mobile game Honour of Kings. Last week it reported quarterly revenues of 65.2 billion yuan ($9.8 billion), up 61% from the year prior, and net income of

Chuck Reynolds


Marketing Dept
Contributor
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Cryptocurrency is hot commodity as Bitcoin reaches record-high value

Cryptocurrency is hot commodity as Bitcoin reaches record-high value

Bitcoin now hovers around US$8,000 as investors pour into alternative currencies

The digital currency Bitcoin offers some benefits,

such as lower fees and global use. (David Gray/Reuters)  Cryptocurrency is a digital currency with no physical form or intrinsic value, but is an increasingly hot commodity as Bitcoin, its most well-known iteration, flirts with a record high. Bitcoin, the self-proclaimed original decentralized digital currency, is hovering around US$8,000 as investors pour into alternative currencies.

Many other types of cryptocurrencies exist, including Monero and Litecoin. These digital currencies are decentralized, meaning there is no third-party authority like a bank that oversees activity, and transactions happen directly between two individuals. This offers some benefits, such as lower fees and global use. Cryptocurrencies rely on blockchain technology. The blockchain is a public ledger of the currency's transactions.

Mining digital currency

Generally speaking, there are two ways to obtain cryptocurrencies: A person can purchase units on an exchange, or they can participate in cryptocurrency mining. Miners secure cryptocurrency networks. They receive new issues of the currency for verifying transactions, which are then recorded on the blockchain. Miners run software that can require special hardware, like asic chips — designed for Bitcoin mining. Their computers solve complicated math problems in exchange for new issues of the currency. A mathematical proof of work, created by trying billions of calculations per second, is required to confirm a Bitcoin transaction. The more puzzles a miner solves, the more cryptocurrency they earn — incentivizing miners to participate and strengthening the overall system.

Money math

On Bitcoin's network, the problems become more complex if they are being solved too quickly. As more miners joined the system and the problems grew very difficult, miners started to pool together to do this work. Once purchased or mined, cryptocurrency lives in the individual's digital wallet and can be used to purchase items online or at local stores that accept the currency. The digital currency's value is derived from demand. At the time of writing, one Bitcoin was worth roughly $9,800 (it is highly volatile), while Monero has yet to hit four-digit worth.

Chuck Reynolds


Marketing Dept
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Please click either Link to Learn more about -Bitcoin.
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Roger Ver Declares Bitcoin Cash to Be True Bitcoin, Market Forces Bring More Attention

Roger Ver Declares Bitcoin Cash to Be True Bitcoin, Market Forces Bring More Attention

Roger Ver Declares Bitcoin Cash to Be True Bitcoin, Market Forces Bring More Attention

Earlier this year, divergent groups within the original Bitcoin community could not agree on a particular protocol to be implemented in scaling the platform. Those who sought bigger blocks therefore hard forked away from Bitcoin and created Bitcoin Cash (BCH).

Battle for supremacy

Since the creation of Bitcoin Cash in August 2017, there has been a tug on both sides of the divide and many key players and stakeholders have publicly taken sides based on reasons that are peculiar to them.

After the hard fork, Bitcoin Cash followed a general downward trend following its initial surge post-creation, while Bitcoin continued to smash the roof and set new record-highs repeatedly. Recently, Bitcoin retraced significantly over a short period of time – about $2,300 in just a few days. The difference between this dip and previous corrections was the corresponding surge in value of Bitcoin Cash which many people see as a direct rival to Bitcoin.

This Bitcoin Cash surge has caused formerly-neutral trading platforms like eToro to add Bitcoin Cash to their platform, with members paying a closer attention to developments around the cryptocurrency.

Which is the real Bitcoin?

Roger Ver is known as ‘Bitcoin Jesus’ due to the fervour with which he preached the Bitcoin gospel in its early days, but now appears as the main face behind Bitcoin Cash. He insists that his version of cryptocurrency, Bitcoin Cash, is the future of Bitcoin.

Ver tells Cointelegraph:

“Bitcoin Cash is the real Bitcoin and will have the bigger market cap, trade volume and user base in the future.”

Currently, Bitcoin Cash has a market cap that is just about one-fifth that of Bitcoin, a daily trading volume of over half and a circulating supply that is slightly higher when compared to Bitcoin. Following the recent price fluctuations, the crypto community is beginning to pay closer attention to Bitcoin Cash.

Challenges are essential for growth

The CEO of Netcoins, Michael Vogel, sees Bitcoin and cryptocurrency as the world's largest and most ambitious open source project. The closest parallel, according to Vogel, is the open source nature of Linux, which is notorious for the sparring that happens between the backers of different versions of the software. Vogel believes that the rivalry between different camps of the Bitcoin community is just a temporary roadblock that will lead to a more robust and resilient technology.

Vogel says:

“I do not think the challenges and in-fighting between various crypto camps are a bad thing. In another way we're effectively witnessing democracy in action. These are, in part, simply growing pains of a new technology, but by blasting through these roadblocks Bitcoin also becomes more robust and resilient. This is why, in my opinion, Bitcoin continued to rally to all-time highs after the Bitcoin Cash fork during the summer; Bitcoin users have realized that "Bitcoin is still Bitcoin" any time a new fork occurs.”

Deliberate market influence

Dana L. Coe, Director at BitLox, sees the current situation as a deliberate action of market makers who are taking advantage of the tender stage of the crypto ecosystem. Coe tells Cointelegraph that the activity between Bitcoin and Bitcoin Cash is pure market volatility driven by rumors and speculation, which essentially drives all markets. However, he notes that in this case one can easily observe the market makers as they are quite obvious. This is especially so, as we have seen Bitcoin recover fully from the fall in price and subsequently break the $8,000 mark.

Coe says:

“The cryptosphere has come a long way, but let us not forget that compared to the economy as a whole, it is still small. Therefore, when actors from the larger national economies take an interest, crypto prices are most certainly to be subject to outsized influences. In the end, Bitcoin will stand or fall on the faith of it’s users and it’s users alone.”
 

Still more to come

Apparently, there is genuine attention being paid to the two most expensive cryptocurrencies at the moment. Most proponents have taken to social media to show support or criticize either Bitcoin or Bitcoin Cash, depending on which one they support.

Immediately after the hard fork, exchanges such as Bittrex, Kraken, ViaBitcoin and Bter all listed Bitcoin Cash on their platforms, after which its adoption seemed to have reached a plateau. But with more trading platforms listing Bitcoin Cash in the wake of its biggest push since creation, it is only normal to expect more developments around the community as time goes on.
 

Author: Iyke Aru

 

Posted by David Ogden Entrepreneur
David Ogden Cryptocurrency Entrepreneur

David https://markethive.com/david-ogden

Gox ICO? CEO Karpeles Floats Token Sale to Revive Bitcoin Exchange

Gox ICO?
CEO Karpeles Floats Token Sale to Revive Bitcoin Exchange

A Mt Gox initial coin offering (ICO)? It's not unthinkable,

according to the defunct bitcoin exchange's controversial CEO. In a blog post published yesterday, Mark Karpeles detailed possible avenues for reviving Mt Gox, the once-dominant Japanese bitcoin exchange that collapsed amid allegations of fraud and mismanagement in early 2014. Hundreds of millions of dollars worth of bitcoin – at then-current prices – were feared lost, though ultimately 202,000 BTC were retained as assets, under the custody of a trustee.

In the aftermath, Mt Gox entered bankruptcy, and has since been at the center of an acrimonious, years-long claims process, including a $75 million claim from CoinLab. Prosecutors in Japan later charged Karpeles with embezzlement, with that trial beginning earlier this summer. The blog post also addressed a recent bone of contention: while the value of the remaining Gox BTC has swelled as bitcoin's price has climbed to close to $8,000 per coin, those seeking to recoup their losses may ultimately collect much less, if anything.

And while some are clamoring for that increase in value to be factored into the payouts, Karpeles pushed back on the idea in the blog post, stating that those gains haven't actually been realized yet, among other complications (the bitcoins remain in the custody of the Mt Gox trustee). One possible avenue around the issue: reviving Mt Gox, with a price tag of $245 million. This could be accomplished either through a recapitalization by way of an equity sale or an ICO, according to Karpeles.

He wrote:

"Launch an ICO to raise money to hypothetically revive MtGox. This sounds more challenging, both legally and because there is no guarantee of raising enough to revive MtGox. In case there is not enough raised it could still be locked to be distributed to creditors, which would be better than nothing."

And in a seeming acknowledgement that the idea is rather far-fetched at present, Karpeles suggested that anyone interested in recapitalizing the exchange should get in touch. "Should anyone have 245 million USD sitting around and want to purchase MtGox, just drop me an email," he wrote.

Chuck Reynolds


Marketing Dept
Contributor
Please click either Link to Learn more about -Bitcoin.
Interested or have Questions. Call me 559-474-4614

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Will The Real Bitcoin Please Stand Up

Will The Real Bitcoin Please Stand Up

Too Many Cryptocurrencies?

For the past several months I have been positive on Bitcoin.  I have liked the fact that it rebounded from the China Crackdown that coincided with the Jamie Dimon – Bitcoin is a Fraud comment. Since then, I have argued that the launch of Bitcoin futures and even more importantly, Bitcoin ETFs, would drive further gains in the price of Bitcoin (and all major cryptocurrencies). Here we are with Bitcoin closing the week at over $7,700 (according to Bloomberg), which is just below its all-time high. The market has reacted well to all the news and it is clear that there are new adopters on a daily basis.  Not only will futures and ETFs help attract new interest, but it is clear that many firms have done a good job of making Bitcoin (and other cryptocurrencies) more accessible.

What is starting to concern me is the proliferation of cryptocurrencies.

Within Bitcoin you have the 'forks' that are creating potentially new paths. Then you have not only the existing 'major' cryptocurrencies like Ethereum, but it seems like there are new cryptocurrency launches on a daily basis, ranging from WhopperCoin to stories about Banks attempting to create their own cryptocurrencies.

Right now, the launches and the 'buzz' they are generating seems to have helped propel Bitcoin higher.

Can that continue, or will buyers get nervous that the market is too fragmented, which might limit the commercial value of any particular cryptocurrency, or worse, will the market get concerned that it is too easy to create ICO's and that is a sign of a bubble building?

For now, I think the growing adoption rate will outweigh those concerns,

but for those calling it a bubble – the list of bubble-like behavior is increasing. Right now, the launches and the 'buzz' they are generating seems to have helped propel Bitcoin higher. Can that continue, or will buyers get nervous that the market is too fragmented, which might limit the commercial value of any particular cryptocurrency, or worse, will the market get concerned that it is too easy to create ICO's and that is a sign of a bubble building?

Chuck Reynolds


Marketing Dept
Contributor
Please click either Link to Learn more about -Bitcoin.
Interested or have Questions. Call me 559-474-4614

David https://markethive.com/david-ogden

First Long-Term LedgerX Bitcoin Option Pegs Price at $10,000

First Long-Term LedgerX Bitcoin Option Pegs Price at $10,000

First Long-Term LedgerX Bitcoin Option Pegs Price at $10,000

LedgerX just initiated its first long-term bitcoin futures option.

Called a Long-Term Equity Anticipation Security (LEAPS), the trade was matched by the platform this morning and is set to expire on December 28, 2018.

Under the terms of the deal, the buyer has the right to buy bitcoin at a price of $10,000 at that date, or almost a 30 percent premium on today's price.

Yet, because the buyer only makes money if the price is more than $10,000 (called the strike price), the investment can be seen as a reflection of the level of confidence that the price will reach that level by the agreed upon date.

Such long term futures options have long been seen in the industry as a much needed sign of maturity, and could in part help pave the way for even more institutional money to enter the space.

In an exclusive interview with CoinDesk, LedgerX CEO Paul Chou sought to position the milestone as just the first of many more before the cryptocurrency market can truly be considered mature.

Chou said:

"There will be, I expect, a lot more trades down the line. This is the first one, but it at least gives you the first guess from different institutional traders as to what bitcoin's dynamics will look like from now until 2018."

The trade option was listed by LedgerX late Friday night, and to Chou's surprise, two institutional investors agreed to the terms of the deal just one day later.

Under the terms, the buyer agreed to a price of $2,250.25 for the trade, meaning the seller collects that money if the price is less that $10,000 by the end of next year, and the buyer gets to purchase bitcoin at the strike price if it is higher.

Unlike a futures swap however, the buyer is not obliged to purchase the asset.

"If the price goes to zero, you don't have to pay $10,000 for it," Chou said. "But if a year from now it's at $20,000, then you can exercise your options."

Based on LedgerX's own calculations (made using the Nobel-prize winning Black-Sholes financial markets model), the startup believes there is a 25 percent chance that bitcoin will reach that level in the allotted time.

 

Soft launch

While this is the first LEAPS financial instrument matched by New York-based LedgerX, they've been conducting increasingly high trade volumes since their soft launch a month ago.

As reported by CoinDesk, LedgerX traded $1 million in bitcoin derivatives its first week of trading, ending Oct. 20.

Since then, the first cryptocurrency firm to be granted a derivatives clearing organization (DCO) license by the CFTC has posted a $1 million day, a $1.6 million day and on November 15, a record $2.6 million day.

Since LedgerX listed the LEAPS option at 5:30 Friday evening, Chou says they saw an additional $500,000 traded before midnight. "That's for a holiday week too," he said. "So we were shocked." He estimates the company has conducted approximately $16 million in notional bitcoin transactions to date.

While the startups numbers seem to indicated active early interest, legacy institutions such as the Chicago Mercantile Exchange (CME Group) and the Chicago Board Options Exchange (CBOE) have both recently revealed their own similar plans.

Though Chou hopes to maintain his first-mover advantage, he said there's no hard date to launch into full operation. Rather, his team wants to make sure the platform scales well beyond the 1 million messages it sends per day before this milestone. He says he'd be "surprised if that takes "more than a month," concluding:

"But it might be sooner."

 

Author: Michael del Castillo Nov 18, 2017 at 21:59 UTC

 

Posted by David Ogden Entrepreneur
David Ogden Cryptocurrency Entrepreneur

 

David https://markethive.com/david-ogden

The Next Frontier in Blockchain Technology: Scaling and Commercial Optimization

The Next Frontier in Blockchain Technology:
Scaling and Commercial Optimization

Every successful startup at one point or another faces a turning point

in its history. This turning point, whether a challenge, conflict, or opportunity, oftentimes becomes the defining moment for the startup’s leadership team. How will they respond? What steps need to be taken? What is the game plan to get from point A to point B? These questions are vital, and investors and board members demand answers. Blockchain technology, though not a startup in the traditional sense, is at its turning point. Prices are at or near all time highs, trading volumes are soaring, and the number of cryptocurrency users is growing at a tremendous rate. But these statistics don’t tell the full story.

With cryptocurrency prices rising and transaction volumes hitting peaks, the Achilles’ heel of Blockchains, scalability, is back with a vengeance. The problem essentially boils down to block size–blocks that are too big are automatically rejected by the network. As a result, transactions per second are limited to single digit numbers, or double digit numbers if the Blockchain is really fast. The problem is that this pales in comparison with traditional payment methods like Visa cards. If cryptocurrencies want to compete in the transaction world in a substantive way, something needs to be done.

Sensing this need, some companies are working on customizable operating systems that will establish commercial-scale platforms. The goal is to meet growing business demand through Blockchain technology, as well as provide a central hub for all Blockchains. The hope is that platform operating systems will lay groundwork for the development of new, scalable applications, and organizations like EOS, Grid, DASH, and Waves are aiming to do just that.

How Blockchain operating systems can address the scalability problem

By creating a multi-chain parallel processing infrastructure that fulfills certain requirements, companies could pave the way for greater Blockchain commercialization. The operating systems they are working on are comprised of a main chain and an indefinite number of side chains, allowing a platform to fulfil multiple goals while reducing data redundancy.

The architecture of the operating systems establishes a well organized “Central Business District.” In this business district each industry has its own dedicated side chain–a one to one scenario where specific issues and problems receive direct attention via the corresponding chain. The highly customizable platforms consist of one main chain, or kernel, that forms the minimum viable Blockchain. As the backbone of the operating system this main chain is used as the core from which custom operating systems can be developed. Developers can use the operating system to create specific configurations, providing adaptability that has so far eluded certain Blockchain projects.

So how does this all impact scalability? In essence, a Blockchain-based operating system creates different streams (side chains) which handle very specific tasks. As a result, the main chain isn’t bogged down by having to process transactions it isn’t built to handle. The abundance of chains means that the platform can process independent transactions at one time.

The operating system creates a scenario similar to adding four additional lanes on a one way highway. Drivers can accomplish the same end goal, arriving at their destination, but take a variety of lanes to get there. Traffic bottlenecks are less likely on a five lane highway than a one line highway In the same way, a Blockchain can accomplish its goal but take a variety of chains to do so. Side chains enable the main chain to operate as intended while also getting specialized tasks done.

Blockchain solutions for everyday life

The end goal for Blockchain-powered operating systems is to provide real world commercial solutions. In order to cope with increased transaction volumes, Blockchain companies are building infrastructures that allow companies to create scalable platforms. By allowing a Blockchain to have connected yet independent side chains, companies will find that they can create customizable solutions to meet their business demands.

Chuck Reynolds


Marketing Dept
Contributor
Please click either Link to Learn more about -Bitcoin.
Interested or have Questions. Call me 559-474-4614

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Major ATM Manufacturer Integrates Bitcoin, Exposure to Millions of Users

Major ATM Manufacturer Integrates Bitcoin, Exposure to Millions of Users

South Korea’s Hyosung, one of the largest ATM manufacturers in
Asia, which also has its headquarters in Texas, has officially integrated Bitcoin into

its international ATM models.

South Korea's Hyosung, one of the worlds largest ATM manufacturers, which implemented #bitcoin support domestically years ago, has finally integrated #bitcoin into its international ATM model for retailers.

Importance of Hyosung’s Bitcoin integration

Since 2014 Hyosung has collaborated with leading Bitcoin service providers within the South Korean cryptocurrency industry such as the Tim Draper-backed Coinplug. For over three years Hyosung has enabled South Korean ATM users to buy and sell Bitcoin through tens of thousands of Hyosung ATMs, located at nearly every convenience store and subway station.

Through the Coinplug mobile app, Hyosung has allowed South Korean users to easily withdraw and deposit cash to sell or obtain Bitcoin, increasing the liquidity of Bitcoin for general consumers in the region. As seen in the photograph below, the efforts of Coinplug and Hyosung to transform many of the existing bank ATMs in South Korea to Bitcoin-supporting ATMs have led to an increase in mainstream adoption of Bitcoin. In the upcoming weeks Hyosung intends to roll out its full integration of Bitcoin into its international ATM models that will be shipped to supporting countries, such as the US and most European countries.

Benefits of Bitcoin supporting ATMs

Since 2016, most leading Bitcoin markets and their authorities have pressured Bitcoin exchanges and trading platforms to enforce strict Know Your Customer (KYC) and Anti-Money Laundering (AML) policies to crackdown on illicit use cases of Bitcoin and other cryptocurrencies such as Ethereum and Litecoin.

Consequently, the process of account verification and updating daily or monthly limits of Bitcoin trading accounts has become significantly challenging. On most exchanges users are required to spend at least a few weeks to submit necessary documents including personal verification (IDs or passports), bank documents, and even conduct a face-to-face interview for maximum monthly limit upgrades. For large-scale traders and investors it is worthwhile to go through such a rigorous verification process to create trading accounts. For beginner users and casual investors however, Bitcoin ATMs are significantly simpler to use to buy and sell small amounts of Bitcoin.

Currently, major Bitcoin brokerages and exchanges such as Coinbase and Gemini are focusing on providing support for institutional and retail investors. Cointelegraph recently reported that Coinbase launched Coinbase Custody, a Bitcoin custodian platform for institutional investors planning to invest a minimum amount of $10 bln in Bitcoin. A handful of companies including Coins.ph of the Philippines, the largest Bitcoin brokerage in Asia with nearly 3 million active users, are working to provide services for general consumers and small-scale Bitcoin investors. In the long-term, the integration of Bitcoin into hundreds of thousands of bank ATMs globally would further increase the mainstream adoption of Bitcoin.

Chuck Reynolds


Marketing Dept
Contributor
Please click either Link to Learn more about -Bitcoin.
Interested or have Questions. Call me 559-474-4614

David https://markethive.com/david-ogden

3 Reasons the Bitcoin Price Hit $8,000 Today

3 Reasons the Bitcoin Price Hit $8,000 Today

3 Reasons the Bitcoin Price Hit $8,000 Today

The bitcoin price touched the $8,000 mark on Friday morning (or Thursday night, depending on your time zone), enabling the flagship cryptocurrency to check another milestone off its to-do list before it reaches five-figure territory.
 

Bitcoin Price Touches $8,000

Just days prior, the bitcoin price had been trading below $6,000, but a mid-week rally raised bitcoin back to its pre-dip level and ultimately vaulted it to a new all-time high of $8,040 on cryptocurrency exchange Bitfinex.


BTC Price Chart | Source: BitcoinWisdom

At present, the bitcoin price is trading at a global average of $7,741, which translates into a $129.2 billion market cap.

 

3 Factors Behind Bitcoin’s Rally

While a multitude of factors contribute to the movement of the bitcoin price, three stand out as primary drivers of the present rally:
 

1. Wall Street’s Anticipated Entry Into the Markets

Ever since regulated U.S. derivatives exchange operator CME announced it would add bitcoin futures contracts to its product offering, analysts have been counting down the days until Wall Street makes its first major entry into the cryptocurrency ecosystem. Anecdotal evidence indicates that prominent institutional investors are eying the markets with interest — enough interest that Coinbase is launching a cryptocurrency custodial service specifically targeted at institutional investors with more than $10 million in crypto assets.

Related to this is the fact that Wall Street investors are increasingly bullish on publicly-traded companies that enter the bitcoin or blockchain space. Payment processor Square, for instance, received a significant bump to its share price after it rolled out a bitcoin pilot program to a limited number of users of its Square Cash app.

square-cash-bitcoin-price-nov17

2. Successful Lightning-Based Atomic Swap

Though less likely to make its way into the mainstream press, another factor influencing bitcoin’s rally is the successful completion of the first off-chain atomic swap. Accomplished using lightning network technology, developers at Lightning Labs traded testnet bitcoin for testnet litecoin trustlessly and without leaving a record of the transaction in either blockchain. Once the lightning network reaches mainnet implementation, this feature will enable the creation of decentralized cryptocurrency exchanges.

 

3. SegWit2x

Finally, some analysts believe that the bitcoin price received a small bump due to the fact that a minority percentage of miners continued to signal for SegWit2x even though the fork’s most prominent advocates had called for its cancellation. Spencer Bogart, head of research at Blockchain Capital, had told Bloomberg Quint that he believed “some capital is rotating out of other crypto-assets and into bitcoin to make sure they receive coins on both sides of the fork” in the event that it did execute as planned. However, the fork did not occur — or at least has not yet — and fork-compatible nodes remain stuck at block 494782.

 

Author: Josiah Wilmoth on 17/11/2017

 

Posted by David Ogden Entrepreneur
David Ogden Cryptocurrency Entrepreneur

David https://markethive.com/david-ogden

Bitcoin Price Achieves New All-Time High at $8,040; Bigger Surge in December?

Bitcoin Price Achieves New All-Time High at $8,040; Bigger Surge in December?

The bitcoin price has achieved a new all-time high at $8,040, within a week since it dipped below $5,600 on Sunday. Analysts expect the price of bitcoin to surge even further by the end of 2017, upon the entrance of institutional investors and retail traders through Coinbase, CBOE, Gemini, and CME.


Bitcoin Price Will Likely Surge Again in December

Earlier this week, CME Group announced that it will launch its bitcoin futures exchange approved by the Commodities and Futures Trading Commission (CFTC), to address the increasing demand from institutional investors and retail traders for bitcoin. Today, on November 17, Coinbase, the largest bitcoin brokerage and wallet platform in the world, introduced Coinbase Custody, another bitcoin trading platform for institutional and retail traders. On Coinbase Custody, large-scale investors can invest a minimum value of $10 million in bitcoin.

Brian Armstrong, the CEO at the $1.6 billion bitcoin startup Coinbase, stated:

“We already store billions of dollars worth of digital assets on behalf of our customers. We serve thousands of institutions via our GDAX product, the leading digital currency exchange in the U.S. We’ve raised $216M from venture capital firms and financial institutions like the NYSE/ICE, USAA, BBVA, Westpac, and MUFG. And we have approximately 200 employees working across our three offices in New York, London, and San Francisco with deep industry knowledge.”

Specifically, Armstrong noted that there exists approximately $10 billion in institutional money on the sidelines “waiting to be invested in digital currency.” If tens of billions of dollars flow into the bitcoin market throughout December and by mid-2018, the market valuation of bitcoin will surge substantially, likely to $200 billion in the short-term. Many institutional investors and high profile traders have invested in bitcoin over the past 12 months through a handful of investment vehicles including DCG’s GBTC and XBT Provider’s bitcoin exchange-traded note (ETN). Upon the launch of CME and CBOE bitcoin futures exchanges, along with Coinbase Custody, institutional investors will be able to invest in bitcoin with ease, by the end of this year.

Increasing Liquidity of Bitcoin

Already, bitcoin is far more liquid than the most liquid stock on earth in Apple. Bitcoin has a daily trading volume of around $5.8 billion, while Apple’s trading volume remains below $4 billion. Bitcoin’s daily trading volume is close to $6 billion without institutional and retail investors in the space. By December, the daily trading volume of bitcoin will be drastically higher.

In addition to the entrance of investors in the traditional finance sector, the adoption rate of major financial platforms is rapidly increasing. Most recently, $15 billion payments app Square integrated bitcoin into its mobile platform. Analysts expect more financial platforms to integrate bitcoin in the near future, as the market valuation of companies that have integrated bitcoin soared in a relatively short period. Square for instance, experienced a $1 billion increase in its market cap within a five day period, after integrating bitcoin.

Chuck Reynolds


Marketing Dept
Contributor
Please click either Link to Learn more about -Bitcoin.
Interested or have Questions. Call me 559-474-4614

David https://markethive.com/david-ogden