Cryptocurrency prices edge higher with ripple bouncing back 65% after ‘severe’ sell-off

Cryptocurrency prices edge higher with ripple bouncing back 65% after ‘severe' sell-off

Cryptocurrency prices edge higher with ripple bouncing back 65% after ‘severe’ sell-off

  • Bitcoin and ethereum — the first and second largest virtual currencies by market value — appeared to recover after Wednesday's lows.

  • Experts told CNBC earlier this week that investors had been "spooked" by news of regulatory crackdowns from both South Korea and China.

  • Regulators have expressed concerns over digital assets due to their extremely volatile nature and worries that they could be used for illicit activity.

Major digital currencies edged higher on Thursday, after a two-day sell-off saw the world's biggest cryptocurrency bitcoin lose more than 50 percent from its December high.

Bitcoin and ethereum — the first and second largest virtual currencies by market value — appeared to recover after Wednesday's lows.

Bitcoin fell as low as $9,199.59 on Wednesday morning, but bounced back to $11,702.74 as of Thursday at 12:00 p.m. ET, according to CoinDesk, which tracks prices from cryptocurrency exchanges including Bitstamp, Coinbase, itBit and Bitfinex. It was up 5 percent in the last 24 hours. The red-hot digital asset also broke the $12,000 level, hitting $12,045.10 at about 10:14 a.m.

Ethereum on the other hand dived below the $800 mark to a three-week low of $780.92 Wednesday, but lifted to $1,072.57 the following day. It was more than 5 percent higher in the last 24 hours.

Ripple's XRP, which is also known as ripple, surged 65 percent to $1.64 a coin, according to data from CoinMarketCap. The digital currency — which is controversial among crypto enthusiasts due the firm behind it being backed by big banks — fell as low as 90 cents the previous day.

 

Regulatory concerns

Experts told CNBC earlier this week that investors had been "spooked" by news of regulatory crackdowns from both South Korea and China.

South Korea — one of the largest markets for cryptocurrencies — has reportedly been considering the shutdown of trading through cryptocurrency exchanges. On Thursday, the country's policymakers said they were considering closing all domestic virtual currency exchanges, echoing a move last year from Chinese regulators.

China, separately, is reported to be deepening its clampdown of its digital currency market. According to reports from Bloomberg and Reuters, the country is planning to ban the centralized trading of digital currencies.

"Trade volumes were very noisy yesterday as the bulls and bears fought it out and some sort of calm has appeared on the markets after what has been a severe correction," Charles Hayter, CEO of digital currency comparison site CryptoCompare, told CNBC in an email Thursday.

"New has a lot to play with this," Hayter said, adding, "this market is now big and governments are sensing revenue for the coffers as well as a threat in some degrees. This will catalyze regulation where regimes who legislate severely will balkanise themselves to the industry."

Hayter said that regulation of cryptocurrencies "will be good in the long run," but warned that "unnecessary hoops and bureaucracy" could inhibit the industry's potential.

Regulators have expressed concerns over digital assets due to their extremely volatile nature and worries that they could be used for illicit activity.

Mati Greenspan, senior market analyst at eToro, said: "Now that the reasons for the recent sell-off are more clear to everyone and the slightly sour regulatory concerns have been priced in and the Asian premiums are evening out, traders will most likely start focusing on the technicals."

Greenspan told CNBC Tuesday that South Korean and Japanese investors often pay a premium of "20 percent or more per coin."

Nolan Bauerle, director of research at CoinDesk, said that the sell-off was "a feature of the global, liquid cryptocurrency trading environment."
"When the price of bitcoin drops, there is a pattern of traders that move to take different positions, either in another cryptocurrency or in fiat," he told CNBC.

"These large drops, usually between the 25-40 percent range, generally find a bottom that is a consolidation of a previous all time high. When this bottom is found, the pattern continues with demand causing a new upward bounce."

Disclaimer: This story has been amended to reflect the fact that bitcoin lost more than 50 percent from its December high.

 

Author Ryan Browne Updated 10 Hours Ago

Posted by David Ogden Entrepreneur
David Ogden Cryptocurrency Entrepreneur

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

Tom Lee Says BTC Will Hit $25,000 in 2018, Advises ‘Aggressive’ Buying At Market Low

Tom Lee Says BTC Will Hit $25,000 in 2018, Advises ‘Aggressive’ Buying At Market Low

Co-founder and Fundstat strategist Tom Lee predicted

that Bitcoin (BTC) will hit $25,000 by the end of this year in an interview with CNBC today, Jan. 18. Lee had previously forecasted that BTC would only reach this mark by 2022. The Wall Street strategist told CNBC today that now by 2022 he sees BTC hitting the $125,000 mark. Lee’s predictions comes after a very volatile week in the crypto market, with BTC hitting below $10,000, dipping even lower than it did during the market crash Dec. 22. Just days before the December crash, Bitcoin had hit an all-time high over $20,000. Lee predicts that $9,000, or just below the lows seen this week, will be the price floor for BTC this year. He sees another market dip as an opportunity

for investors:

"We expect bitcoin's major low to be $9,000, and we would be aggressive buyers around that level […] We view this $9,000 as the biggest buying opportunity in 2018."

Lee also offered predictions for several altcoins, forecasting that Ethereum and Ethereum Classic would see about 90 percent growth by the end of the year, and NEO 50 percent. Today, the crypto market began its bounce back, with BTC up almost 15 percent and the top 20 altcoins up as much as 70 percent in the 24 hours to press time.

Bitcoin Backing Firms Feel

the Crypto Crash Pinch

With Bitcoin shedding 50 percent of its value in little under a month,

those firms who vocally rode the wave on the up are now feeling the terrify drop in terms of loss of their own market value. Companies such as Overstock, which has some of its fortunes locked up in the digital currency, as well as Square Payments, which announced plans to allow for some Bitcoin buying and selling, have been hit hard by this crash.

Taking a beating

While the numbers being tracked by these Bitcoin-backing firms are nothing compared to the actual losses being suffered by the cryptocurrencies, they are directly correlated. Square showed a loss of five percent or $90 mln, this week as the company which is led by Twitter’s CEO Jack Dorsey ended with a value of $15.1 bln. Overstock, a longtime supporter of Bitcoin going back to 2014, fell 11 percent ending with a value of $1.8 bln thanks to the roughly $200 mln loss. This latest drop in the crypto market has been put down to the uncertainty emanating from Korea with their apparent bank of cryptocurrencies on the cards. This pressure from regulators also adds teeth to the fears in dealing with cryptocurrencies in major firms.

Renaming regrets

There are also instances where companies who have tried to jump on the Bitcoin and Blockchain bandwagon have found that the wagon is currently in the shop for repairs. A number of firms have changed their focus, tact or simply their name, to profit from the hype and mania around cryptocurrencies. However, the other, ugly, side to this ecosystem is the violent volatility that needs to be stomached. Kodak, perhaps better known for their cameras, fell eight percent. The company has announced plans to offer a cryptocurrency known as KodakCoin at the end of the month, initially sending shares up 60 percent on the day of the announcement. Shares of Riot Blockchain, once a biotech firm dubbed Bioptix, shed 17 percent Tuesday, even shares of Long Blockchain, once Long Island Iced Tea, shed two percent.

Lessons up for grabs

While the future, as it always is, is uncertain for the crypto ecosystem, there are lessons to be learned in this latest Bitcoin ‘death.’ Bitcoin has been dead and buried countless times as its volatile nature is too much for some to take, sending them fleeing. However, it has shown stronger and stronger resistance and ability to bounce back over the years and the crashes. Something that companies that are facing unprecedented dips will need to be aware of. Bitcoin believer Max Keiser explains these movements in a graph he tweeted.. This pattern will repeat all the way to Bitcoin $100,000 and beyond..

Chuck Reynolds


Marketing Dept
Contributor

Please click either Link to learn more about Bitcoin.
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This week’s Bitcoin crash was all about fraud and regulation

This week’s Bitcoin crash was all about fraud and regulation

Cryptocurrencies have had a rough week:

the value of bitcoin plunged to a mere 50 percent of its 2017 peak, and other currencies, such as Ethereum, Ripple, and Litecoin have seen double-digit losses compared to their heights from last year. Tuesday also witnessed the collapse of BitConnect, an anonymously operated crypto exchange that had been repeatedly accused of running a Ponzi scheme via its proprietary BCC currency.

Taken together, these events may simply act as another reminder of the “volatility” of the cryptocurrency market, which saw bitcoin rise to a peak of $19,783 on December 17th. Bitcoin has gone through multiple crashes before: in spring 2011, in November 2013, and in January 2017. However, this current bubble comes against a new backdrop: a global tide of regulation against the inchoate cryptocurrency industry. On one hand, these regulations may be scaring bitcoin investors into selling their coins now before the full impact of regulation makes itself felt. On the other, it may also be threatening suspect exchanges such as BitConnect, with its own token declining in value by 46 percent between December 17th and January 15th — the day before it announced its closure.

The value of Bitcoin plunged to a mere 50 percent of its 2017 peak

In the United States, regulation has reared its head in the form of the SEC. Last month, its newly formed Cyber Unit pressed charges for the first time against PlexCorps, which was accused of defrauding investors through a questionable initial coin offering, or ICO. Almost a week later, SEC chairman Jay Clayton issued a warning on cryptocurrencies to investors, hinting that the commission would begin monitoring the market more closely for any potential violations of securities laws. The US isn’t the only nation taking a harder line on cryptocurrencies, either: the Chinese government tightened its ban on crypto trading this week, and the South Korean government is planning on implementing a similar ban itself.

This global movement toward harsher regulation has been cited as a major cause of the exodus of value that has gripped cryptocurrencies in the past week. It would also potentially account for BitConnect’s collapse, which came after multiple cease and desist letters from securities watchdogs in Texas and North Carolina. A historic lack of regulation likely contributed to the current bitcoin bubble by facilitating market manipulation and duplicitous trading practices. Even as bitcoin became a household name in 2017, such practices remained common. In November, a Business Insider investigation discovered that “pump and dump” scams — where investor groups artificially inflate cryptocurrency values by orchestrating mass purchases of coins — were “rife” on the US exchange Bittrex. Similarly, Bitfinex, the biggest exchange by daily volume, acknowledged market manipulation on its platform in August, when it revealed that it had detected several accounts engaging in “large-scale manipulation tactics” relating to the Bitcoin Cash currency.

Such manipulative activity could be the tip of the iceberg

Such manipulative activity could be the tip of the iceberg, given that certain critics have even accused Bitfinex of creating Tether, a cryptocurrency pegged to the US dollar, in order to buy bitcoins and artificially inflate the latter’s value. What’s clear is that such disreputable methods as “pump and dump” and “spoofing” are possible because exchanges like Bitfinex are unregulated. In any regulated market, the action of traders such as the infamous “Spoofy” would be illegal. Yet, without the active oversight of the SEC or FINRA, they can be carried in the cryptocurrency market with impunity.

Because market manipulation has helped push cryptocurrencies to dizzy, grossly inflated heights, the recent falls in value have been similarly spectacular. But unlike with previous drops, the newly emerging drive to regulate the cryptocurrency market could hobble a recovery. Assuming that the likes of the SEC and FINRA begin clamping down on fraudulent trading practices, and assuming that these practices were vital to Bitcoin’s precipitous rise, then Bitcoin may very well struggle to climb as quickly in 2018 as it did in 2017. Not only will the parties responsible for manipulative trading be inclined to sell their ill-gotten gains and run, but an increasing number of people will fully realize that the cryptocurrency market is a hive of dubious activity. That said, if greater regulation tamps down disreputable practices and brings the cryptocurrency into the regulatory mainstream, the longer-term trend may only be upward.

Chuck Reynolds


Marketing Dept
Contributor

Please click either Link to learn more about Bitcoin.
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David https://markethive.com/david-ogden

Old hands in South Korea bitcoin market unfazed by threats of ban

Old hands in South Korea bitcoin market unfazed by threats of ban

Old hands in South Korea bitcoin market unfazed by threats of ban

  • Veterans of the bitcoin market say restrictions would be relatively easy to circumvent

  • Investors in the cryptocurrency market are used to wild moves in the space

  • Expert say a ban might discourage new participants, but anonymity makes it easy for those already in the markets to move digital assets around the world

Threats of a potential cryptocurrency trading ban in South Korea have scared many investors away, but some veterans of the young market are defiant, saying restrictions would be relatively easy to circumvent.

Although the cryptocurrency market lost about $200 billion this week, or a third of its value, these investors – known within the community as "hodlers" after a misspelled meme that went viral during Bitcoin's early days – are used to rollercoaster rides.

China's shutdown of local exchanges in September, for instance, caused a 50 percent drop in Bitcoin, but prices rebounded eight-fold to almost $20,000. Currently valued around $10,000, Bitcoin could be poised for a similar whirlwind this time around, some say.

"In case the government shuts down all local exchanges,investors can always go abroad and open an account there," said a South Korean student who declined to be named because of legal risks. "I can ask my friends who study abroad or travel there myself. It's not that big of a problem."

Cryptocurrency experts say the student probably has good reason to be relaxed. A ban could discourage new market entrants, but the anonymity of buyers and sellers and the ability to move digital assets anywhere in the world with a click makes it hard to impose restrictions on existing participants without a global consensus.

Places like Singapore and Hong Kong maintain light regulations, while neighboring Japan has encouraged a vast ecosystem of companies and investors around digital assets by pioneering a set of rules for the industry. Germany has said national restrictions may be useless.
 

VPNs, offline wallets

According to industry experts, the first step to circumventing a ban is hiding IP addresses from authorities via virtual private networks (VPNs).

Traders can then continue business as usual. Decentralized exchanges, such as Shapeshift or Stellar Dex, do not require identification and can be accessed from anywhere.

Cryptocurrency wallets such as Exodus and Jaxx are linked to such exchanges, so trading and storing the assets can still be anonymous. Authorities in countries with strong legal protections may need a warrant to check computers or smartphones for proof of such activity.

Threats of a potential cryptocurrency trading ban in South Korea have scared many investors away, but some veterans of the young market are defiant, saying restrictions would be relatively easy to circumvent.

Although the cryptocurrency market lost about $200 billion this week, or a third of its value, these investors – known within the community as "hodlers" after a misspelled meme that went viral during Bitcoin's early days – are used to rollercoaster rides.

China's shutdown of local exchanges in September, for instance, caused a 50 percent drop in Bitcoin, but prices rebounded eight-fold to almost $20,000. Currently valued around $10,000, Bitcoin could be poised for a similar whirlwind this time around, some say.

"In case the government shuts down all local exchanges,investors can always go abroad and open an account there," said a South Korean student who declined to be named because of legal risks. "I can ask my friends who study abroad or travel there myself. It's not that big of a problem."

Cryptocurrency experts say the student probably has good reason to be relaxed. A ban could discourage new market entrants, but the anonymity of buyers and sellers and the ability to move digital assets anywhere in the world with a click makes it hard to impose restrictions on existing participants without a global consensus.

Places like Singapore and Hong Kong maintain light regulations, while neighboring Japan has encouraged a vast ecosystem of companies and investors around digital assets by pioneering a set of rules for the industry. Germany has said national restrictions may be useless.
 

VPNs, offline wallets

 

According to industry experts, the first step to circumventing a ban is hiding IP addresses from authorities via virtual private networks (VPNs).

Traders can then continue business as usual. Decentralized exchanges, such as Shapeshift or Stellar Dex, do not require identification and can be accessed from anywhere.

Cryptocurrency wallets such as Exodus and Jaxx are linked to such exchanges, so trading and storing the assets can still be anonymous. Authorities in countries with strong legal protections may need a warrant to check computers or smartphones for proof of such activity.

Even then, unless caught in the act, the holder can claim no trading has taken place since the legislation was approved and has forgotten the password for the wallet.

Some decentralized exchanges offer derivative products that allow betting on the price of a cryptocurrency against a fiat currency, including the Korean won and Chinese yuan. But cashing out in fiat is not possible on such exchanges.

An option in that case is to trade all cryptocurrencies for a top one such as Bitcoin, Ethereum or Litecoin, and sell it at one the 2,064 crypto ATMs in 61 countries, although the transaction fees can exceed 10 percent. If need be, coins can be stored on offline "wallets" the size of a USB stick.

Alternatively, holders can open bank accounts in countries that have not banned Bitcoin, then join a local centralized exchange where they can trade cryptocurrencies for fiat.

"I hold everything in a hard wallet the size of my thumb. I have copies of my private keys in a safe. I have accounts on four exchanges on three continents. If any government wants my money, good luck to them," said a Hong Kong-based investor who claims to hold "about $1 million" in various cryptocurrencies.
 

Crossing borders

A 30-year-old nurse in Seoul said she had already switched to Hong Kong-based exchange Binance before the government's warnings hit the market. Company officers at Seoul-based exchanges say, anecdotally, such moves have accelerated.

"All this could lead to serious money outflow and only the government is not aware of it," one officer said, requesting anonymity.

South Korea accounts for between 5 and 15 percent of daily Bitcoin trading. The value of all Bitcoins is around $200 billion.

If opening accounts overseas proves difficult, friends,family or the local Bitcoin community can help. Another option is to find someone with access to an exchange – preferably using encrypted social media apps such as Whatsapp or Telegram – and sell to them at a discount. But fraud is a risk.

"There could be a black market where people who can cash out offshore can pay you in won for your Bitcoins," said Aurelian Menant, chief executive of Hong-Kong based exchange Gatecoin.

But that leaves the door open to "dodgy stuff," Menant said, adding that the fear of scams in the aftermath of a ban may deter new investors, potentially shrinking Korean trading volumes "from billions to millions."

 

Source CNBC

 

Posted by David Ogden Entrepreneur
David Ogden Cryptocurrency Entrepreneurs

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

How Much of a Bubble is Bitcoin, Really?

How Much of a Bubble is Bitcoin, Really?

Even those who’ve never invested in Bitcoin before

are starting to keep a closer eye on its progress. That’s because the currency has recently soared in value, causing the people who own Bitcoins to get excited and wonder how much more the worth could climb. There are even instances where people with no former interest in cryptocurrency feel now is the time to start becoming involved in the Bitcoin boom. But some onlookers wonder, will the bubble burst, and if so, how long from now?

Bitcoin shows many signs of a classic bubble

Derek Thompson, who covers economics for The Atlantic as a senior editor, notes it’s hard to determine if Bitcoin is a bubble because it’s an entire industry. However, he thinks Bitcoin's recent patterns are akin to other famous bubbles that burst — such as the dotcom bubble. Bitcoin is a topic on everyone’s tongues and minds. Investors make huge life decisions based on Bitcoin worth, and they often make impressive predictions about what’ll happen in the future. People also made those actions in association with other things that went bust, leading individuals to caution history will repeat itself. They say the only thing they’re not certain about is when it’ll happen.

Bitcoin volatility is a constant

One of the reasons why people are buzzing about Bitcoins is because their value has skyrocketed so much. At the beginning of 2017, a Bitcoin was worth $1,000. Now, its value is $5,000. Then, there was a point in September where the per-coin value was nearly $5,000, but it tumbled to $3,200 only two weeks later. For a broader perspective though, it’s necessary to realize that altcoins — any cryptocurrency that’s not Bitcoin — also fluctuate. That reality could theoretically contribute to worries that Bitcoin is a bubble. They might assume that Bitcoin is as volatile as all the other cryptocurrencies, but compiled market statistics actually indicate it’s the most stable.

Even so, some people who intelligently track the market expect volatility. Dave Birch, founder of Consult Hyperion, a leading consultancy in the field of electronic transactions, has even said, “One does not invest in Bitcoin, one gambles in Bitcoin.” He backs up that belief by advising people to only invest as much as they’re prepared to lose. If individuals actually did that, the possibility of a bursting Bitcoin bubble wouldn’t be so frightening. Instead, many people have moved all their investments over to the Bitcoin world.

Anonymous transactions and lack of spending options
cause raised eyebrows

A characteristic that attracts many people to Bitcoin is the ability to send and receive money without revealing personal information. They also love the lack of government regulation and feel that by investing in the Bitcoin market, they have more financial freedom. However, Ray Dalio, founder of Bridgewater Associates, the world’s largest hedge fund, calls the idea of private Bitcoin transactions questionable. He doesn’t believe the world’s governments will allow the lack of personal identification information associated with Bitcoin to persist forever and brings up how in the US. The IRS has already demanded some user records associated with the Coinbase website.

Furthermore, Chainalysis is a company that specializes in helping identify the people who own the digital wallets used to store Bitcoins. The discovered information reduces fraud and money laundering. Dalio also mentions the high amount of speculation and the lack of spending options for Bitcoin owners. He believes the concept of Bitcoin could work because of that speculation and that people don’t have enough ways to use the Bitcoins they own. For those reasons, he agrees there is a Bitcoin bubble, and that’s the only logical conclusion considering the rapid rise of the Bitcoin’s value.

Market control in the hands of a small number of people

Another thing that could make the Bitcoin bubble burst — or at least make investors panic — is the fact that approximately 1,000 people hold about 40 percent of all Bitcoins. The individuals tied to large amounts of the cryptocurrency are often referred to as “whales.” If they choose to suddenly sell a lot of Bitcoins to take advantage of high market prices, other Bitcoin owners notice. There are also fears the whales could coordinate actions between themselves and work together to make the market fluctuate. Because the laws surrounding cryptocurrency are not concrete, there are uncertainties about what kind of punishments they might face for doing that.

Cryptocurrency founder says Bitcoin is not a bubble

Although it’s not hard to find plentiful online resources asserting there’s no doubt Bitcoin is a huge bubble soon to burst, some people provide alternative views. One of them is Ben Davies, co-founder of another cryptocurrency called Glint. He thinks people are not looking at the bigger picture of Bitcoin, and that’s causing them to incorrectly see it as a bubble.

Davies also thinks the way people often compare Bitcoin to the bubble associated with tulip bulbs doesn’t hold water. He notes that although the prices of tulips soared then experienced a sharp downturn, that historic event is a “poor comparison. He asserts the price increases associated with tulips were not similar to the cryptocurrency phenomenon. However, even Davies admits Bitcoin “has all the hallmarks and antecedents that are the precursor to a bubble.”

This is just a sampling of why so many people strongly believe Bitcoin is a gigantic bubble that’s a substantial concern. To avoid getting into the kind of trouble that could potentially ruin their lives, investors should continue studying the market regularly and seeing how the Bitcoin value fluctuates. Besides, it’s smart to have a plan in place for if or when the bubble bursts. Many of the people who were the most severely affected by previous bubbles that popped were those who didn’t stop to think “What if?” and figure out what to do if the worst happened.

Failing to do so could mean a person is ignoring history.

IBM And Maersk Start Promised Blockchain Supply Chain Company

IBM and Danish transport and logistics company Maersk announced Jan. 16 that they are teaming up to create an as-yet-unnamed Blockchain-based shipping and supply chain company. The goal of the venture is to commercialize Blockchain for all aspects of the global supply chain system, from shipping to ports, and banks to customs offices. Blockchain technology is uniquely able to provide special control for the logistics industry, since it can replace tedious and insecure paperwork with secure digital records that are also transparent.Maersk’s chief commercial officer Vincent Clerc, who will serve as chairman of the newly formed board for the joint venture, was quoted in the official announcement

saying:

“The potential from offering a neutral, open digital platform for safe and easy ways of exchanging information is huge, and all players across the supply chain stand to benefit.”

The company had promised to make delivery of the new project by the end of last year. The offering is the fulfillment of a year’s worth of planning by both companies, each of whom have invested in Blockchain in various other ways as well. The joint venture is hoping to start offering their software solutions by Q3 2018.

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

Cryptocurrencies Are Doomed to Fail, But There’s Money to be Made, Says an Investor Officer

Cryptocurrencies Are Doomed to Fail, But There’s Money to be Made, Says an Investor Officer

The traditional diversified portfolio of investments

will have a host of assets in varying risk brackets, but for a traditional investment, officer cryptocurrencies could seem too speculative to be part of any portfolio with a wealth preservation focus. The caveat is that while not all cryptocurrencies are guaranteed to stick around forever, there are still profits to be made by a savvy investor that chooses a long term winner early on.

Money to be made

An investment officer from Credo Wealth, Deon Gouws, is personally interested in digital currencies, but as chief investment officer for a traditional financial institution, is understandably nervous.

He says:

"Most cryptocurrencies we see launching today are likely to fail, but there’s still a lot of money to be made if you can identify the long-term winners successfully and early.”

Mike Novogratz, a well-known investor who has been bullish on Bitcoin for some time now, has made statements indicating agreement. He has called the asset a bubble, but one where there is money to be made.

Novogratz said:

“This is going to be the largest bubble of our lifetimes. Prices are going to get way ahead of where they should be. You can make a whole lot of money on the way up, and we plan on it.”

Technology over profiteering

As the cryptocurrency space has evolved, prices have risen astronomically with the influx of interest from the mainstream market. Those who have joined the space in recent times have seen the likes of Bitcoin build to as high as $20,000. However, those who have joined this space in their droves have clearly done for the profiteering that has taken place, and the promise of more to come. This then means that there is more of a diluted core of users who are in it to see the technology thrive and flourish.

In turn, this not only adds to the speculative nature of the market but also to the bubble-nature that Novogratz refers to. The entire crypto space may not be as prone to a big collapse, or a catastrophic failure like some flimsy ICOs, but there are still concerns for those looking for pure profit.

Bubble territory

The real issue in the market being flooded with people in it to make a quick buck is that the potentially revolutionary technology can be pushed towards bubble technology. It is not the product that is prone to being in a bubble. It is the way in which it is used or perceived that leads to bubbles being formed and popped. The dot-com bubble has shown a lot of similarities to Bitcoin’s rapid growth, but that does not mean dot-com businesses or digital businesses, are always going to be bubbles. And the same applies to Bitcoin.

In the dot-com boom, people were entering the market to make money, and they were throwing money at anything with .com on the end. It is happening today too, with Bitcoin and Blockchain, but that does not mean a bubble is a definite. If people continue to flood the cryptocurrency market intent on only making money off it, rather than appreciating it as a new wave of technology, then Gouws’ opinion may be spot on. People will enter have a direct say in which way something like this moves, with their speculative investing. There needs to be a concerted push to appreciate the technology, and adopt it for mainstream uses if Bitcoin, and other cryptocurrencies, are to be a long term success.

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

Bitcoin jolted by regulation worries, falls 7 percent on extended selloff

Bitcoin jolted by regulation worries, falls 7 percent on extended selloff

Bitcoin jolted by regulation worries, falls 7 percent on extended selloff

TOKYO/SINGAPORE (Reuters) – Bitcoin extended its sharp tumble of the past 24 hours, skidding more than seven percent on Wednesday in a rapid downturn in fortunes as investors were spooked by fears regulators might clamp down on an asset whose value has skyrocketed in the past year.

The price of the world’s biggest and best-known cryptocurrency fell to as low as $10,567 on the Luxembourg-based Bitstamp exchange, not far from its six-week nadir of $10,162 touched the previous day. The session’s high was $11,794.07.

It led the fall in cryptocurrencies, although others such as Ethereum and Ripple, have also slid sharply this week after reports South Korea and China could ban trading, sparking worries of a wider regulatory crackdown.

 

“Cryptocurrencies could be capped in the current quarter ahead of G20 meeting in March, where policymakers could discuss tighter regulations,” said Shuhei Fujise, chief analyst at Alt Design.

 

At its lows on Tuesday, Bitcoin had fallen 25 percent in the session, its biggest daily decline in four months. It was a far cry from its peak close to $20,000 in December, when the virtual currency had risen nearly 2000 percent over the year.

 

Tuesday’s decline followed reports that South Korea’s finance minister had said banning trading in cryptocurrencies was still an option and that the government plans a set of measures to clamp down on the “irrational” cryptocurrency investment craze.
 

Separately, a senior Chinese central banker said authorities should ban centralised trading of virtual currencies as well as individuals and businesses that provide related services.

 

“Bitcoin is deciding whether this is the moment to crash and burn,” said Steven Englander, head of strategy at New York-based Rafiki Capital.

 

“My conjecture is that cryptocurrency holders are trying to decide whether to abandon Bitcoin because its limitations mean it will be superseded by better products or bet that it can thrive despite them.”

Bitcoin futures maturing on Wednesday on the Cboe Global Markets Inc’s Cboe Futures Exchange were at $10,740, with 1,586 contracts traded, after having opened at $10,850. The open interest was 2,895 contracts. The Cboe 14 March 2018 contract was quoted at $11,130.

The futures are cash-settled contracts based on the auction price of bitcoin in U.S. dollars on the Gemini Exchange, which is owned and operated by virtual currency entrepreneurs Cameron and Tyler Winklevoss.

The MVIS CryptoCompare Ripple Index, which covers the performance of a digital assets portfolio which invests in Ripple (XRP), a cryptocurrency developed by Ripple Labs, dropped 15 percent to $7,298 on Wednesday.

That equity index has seen a 66 percent slide in its value since the start of the year. Ripple itself was quoted at $1.15 on website CoinMarketCap, down from a high of $3.81 on Jan 4.

“The run-up in Bitcoin created a mystique of one-way trading which is being shaken but the pricing requires faith that there will always be demand,” Englander wrote.

“This is far from guaranteed given the existence of alternatives with better characteristics.”

 

Reporting by Hideyuki Sano in TOKYO; Writing by Vidya Ranganathan; Editing by Shri Navaratnam

Our Standards:The Thomson Reuters Trust Principles.

 

Posted By David Ogden Entrepreneur
David Ogden Cryptocurrency Entrepreneur

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

Inside the Korean crypto exchange that grew so fast the government raided it

Inside the Korean crypto exchange that grew so fast the government raided it

Korea has gone from an afterthought in the cryptocurrency markets

to one of its major hubs in a matter of months. Crypto trading has grown so feverish that the government raided the country’s major exchanges to check their books—and to cool down the red-hot trading activity. The lynchpin in the Korean market is an exchange called Bithumb, which has raked in cash as its customers have swelled in the millions. It regularly accounts for over 80% of Korea’s ether-won trade. Business was so good that the exchange struggled to develop its infrastructure to keep up with demand.

The signs of Bithumb’s success are apparent in its offices. It occupies a 10-story building on Teheran-Ro, a boulevard lined with glittering towers housing the Korean offices of global titans like Google and Amazon. The thoroughfare is named after the capital of Iran, Seoul’s sister city, and has become the premier address for technology conglomerates, startups, and venture capitalists in the Korean capital. Inside Bithumb’s headquarters, visitors pass by burly security guards before they are allowed entry. Employees get plenty of perks, like three to four flat screens on each desk, and fridges filled with energy drinks, teas, and alcohol. Little is known about Bithumb’s founder, Kim Dae-Shik, although Korean newspapers reported that the firm has recruited a former head of Alipay in Korea, Jung Won-Shik, to take the CEO role. Bithumb has not responded to queries from Quartz.

At a data center that Bithumb rents space from, the firm houses millions of dollars worth of top-of-the-line servers. “They have so much money to buy the latest and greatest stuff,” said a person who worked with the exchange and asked not to be identified. “They can throw money at servers. Spending $40,000 to $50,000 on a server is not a problem for them.” Bithumb has a major challenge to accommodate the millions of customers rushing to trade cryptocurrencies on its platform. Customers were trading minute-by-minute as the famously volatile cryptocurrency markets fed their mania. Bithumb has close to 100,000 users trading on its platform at any given minute, said the person Quartz spoke with. “It’s a fact that so many South Koreans are trading on a minute-by-minute basis,” says the source.

Bithumb’s growth follows Korea’s rising importance to the cryptocurrency markets. Over the summer, trading volumes in Korean won exploded on cryptocurrency exchanges; at one point the won was the most popular currency pair in the ether and Ripple markets. These are two cryptocurrencies worth over $150 billion, both jostling for second place in the ranking of the most valuable cryptocurrencies on the market, after bitcoin.

Bithumb’s struggles to scale its operations mirrors the problems facing exchanges around the world. Often set up by founders without a background in developing serious financial platforms, cryptocurrency exchanges are struggling to build systems that can withstand the rapidly growing demand for access to the crypto markets. “They more or less got lucky in terms of growth,” said the Bithumb source. “And they know how to throw money at the problem.”

Large exchanges in the US like the Winklevoss twins’ Gemini, or the startup with “unicorn” valuation status, Coinbase, suffered regular outages and interruptions all last year. These platforms use homegrown trading and security systems that are a far cry from the sophisticated software that run the world’s major exchanges, and they now are cracking under the strain of millions of new users.

Security—or problems enforcing it—is another theme common to the world’s biggest cryptocurrency exchanges. Reuters has estimated that over $4 billion worth of cryptocurrencies have been stolen from exchanges since 2011. For Bithumb, the security concern is heightened by the fact that hackers linked to North Korea are suspected of targeting its funds. In June, it reported a loss of cryptocurrencies now worth over $80 million. The South Korean intelligence agency said it suspects North Korea was behind the heist, in an attempt to get around financial sanctions, according to the BBC.

If last week’s raids on Korean exchanges were the start of a nationwide crackdown on cryptocurrencies to protect ordinary investors, it hasn’t quite played out that way. In the aftermath of the raids, the justice minister announced an imminent ban on cryptocurrency trading, only to be publicly rebuffed by citizens. An online petition opposing a ban amassed more than 200,000 signatures, crashing the presidential Blue House’s website, according to Reuters. “Please don’t take away our happiness,” the petition reads. One petition that garnered 30,000 signatures called for the justice minister to resign. The government issued a statement yesterday trying to calm Korea’s crypto-hungry citizenry, assuring them that no ban would take place without further consultation.

Exchanges like Bithumb are currently not accepting new deposits from customers. But one observer of the Korean cryptocurrency scene, who goes by Crypto Korean on Twitter, said he expects deposits to be reinstated soon. “People are super upset because they lost shitloads of money,” he said. “The backlash was too strong, so I think [exchanges] will commence [deposits] again later this month.” For Bithumb, that would be a welcome return to business as usual. “Tech-wise, they are one of the better ones. They are not clueless, and they have money so they can scale,” said the source. “That tells you how much Koreans like their crypto.”

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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Capital One Blocks Cryptocurrency Purchases With Its Card

Capital One Blocks Cryptocurrency Purchases With Its Card

In a first, Capital One Financial Corporation

(COFCOFCapital One Financial Corp105.14-0.28%)

has blocked holders of credit cards from its bank from using them for cryptocurrency purchases. In a statement to Breitbart news, the company said it made the move due to “limited mainstream acceptance (of cryptocurrencies) and the elevated risks of fraud, loss, and volatility inherent in the cryptocurrency market.”But that decision is subject to change. “Capital One continues to closely monitor developments in cryptocurrency markets and exchanges and will regularly evaluate the decision as cryptocurrency markets evolve,” the bank wrote. 

Capital One’s decision to block purchases was first reported by online publication The Merkle, which cited a Reddit thread regarding the issue. In the thread, a Coinbase user reported that his purchase of $90 in cryptocurrencies was blocked by the bank. Capital One subsequently tweeted a clarification. (See also: IMF Chief Lagarde's Comments On Bitcoin Have Big Implications.)  While most banks have held off from offering cryptocurrency-related services to customers, they have not blocked transactions involving them. Capital One joins TD Bank, which is reported to have told customers that “it doesn’t deal in that kind of business.” PNC Bank is another bank that blocked transactions involving cryptocurrencies. It is unlikely that other banks will follow Capital One’s lead. 

The size of cryptocurrency markets has ballooned in the last year, and prices for individual tokens have skyrocketed as day traders and investors have rushed to put their money into the assets with exponential returns. However, much of the increase in cryptocurrency valuations has occurred on the back of speculation about future prospects. The timeline for that future is still hazy, however. While they have warned about the dangers of investing in cryptocurrencies, government regulators have stayed away from them for the most part. This has resulted in extreme price volatility and scams. As talk of regulation and institutional money flowing into the markets gathers pace, it is likely that Capital One might revise its stance regarding cryptocurrencies. (See also: Bitcoin Government Regulations Around The World.) 

Investing in cryptocurrencies and other Initial Coin Offerings ("ICOs") is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or other ICOs. Since each individual's situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein. As of the date this article was written, the author owns small amounts of bitcoin. It is unclear whether he owns other bitcoin forks.

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

DUBAI PLANS TO LAUNCH 20 BLOCKCHAIN-BASED SERVICES IN 2018

DUBAI PLANS TO LAUNCH 20 BLOCKCHAIN-BASED SERVICES IN 2018

DUBAI PLANS TO LAUNCH 20 BLOCKCHAIN-BASED SERVICES IN 2018

Dubai is already running pilot programs in a few government departments but hopes to implement 20 blockchain-based initiatives in this year.
 

Dubai is making good on its nickname as the ‘City of the Future’. Its government had previously formed Smart Dubai, an agency created with the aim of making Dubai the most technologically advanced, and smartest city in the world. Part of that journey is to include blockchain-based services into a number of sectors.

 

Both IBM and Consensys have entered into strategic partnerships with the agency in advisory roles in order to help realize the goals of Smart Dubai.

 

BLOCKCHAIN IS NOT JUST FOR BITCOIN
 

According to The National, Aisha Bint Buti bin Bisher, who is the director general of Smart Dubai, believes that “blockchain will improve people’s experience.”

While at the Unlock Blockchain Forum, she went on to explain the implementation of this technology in the city:

The applications are in various fields, some of them are in RTA, road and transport, some of them are in energy, health and education. These 20-use cases are under pilot, and we are looking forward to see the results so we can scale it.

THE FUTURE IS NOW

 

Even though the initial deadline for the launch was scheduled for 2020, Bisher is confident that it can be completed this year. In fact, blockchain technology is already being used for land registry transactions.
 

Other government sectors, such as Department of Naturalization and Residency Dubai, are also running pilot programs. Additional departments, including Dubai Customs, are collaborating with IBM on future initiatives.
 

The agency has said that blockchain technology will improve service delivery in government by saving more than 25 million hours of productivity every year.

 

Bisher also said:
 

While others were still debating the prospects of this new technology, we went to work and today we are making Dubai the blockchain capital of the world, and we have already begun.

In addition, she touched on the blockchain benefits that the city is already experiencing:

 

Dubai broke ground when the world reluctantly approached this technology. Already, blockchain is rewriting how we deal with city services. In just a handful of years, blockchain has transformed key aspects of our city.

DISRUPTION BREEDS INNOVATION
 

While at the same conference, Ramez Dandan, who is the national technology officer at Microsoft Gulf, discussed how the disruptive technology is an exciting addition to the business sector:

 

Investment in blockchain across the GCC [Gulf Cooperation Council] and beyond is ramping up at an impressive rate as organizations recognize it for the disruptive technology that it is.

He further explained:
 

We strongly believe in the technology’s immense potential for enterprises of all scales and industries. It allows them to share business processes with suppliers, customers and partners, leading to new opportunities for multi-party collaboration and eventually exciting new business models.

Governments in the Arabian Gulf, including the United Arab Emirates, are looking to invest in technology to substantiate oil revenue, the latter of which has suffered recently due to oil price declines.

 

Author: NIKITA BLOWS · JANUARY 16, 2018 · 1:15 AM

 

Posted by David Ogden Entrepreneur
David Ogden Cryptocurrency Entrepreneur

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