Bitcoin Just Surged Past $7,000. Here’s Why

Bitcoin Just Surged Past $7,000. Here's Why

Bitcoin Just Surged Past $7,000. Here's Why

Talk about a roller coaster.

As of late Thursday, the price of Bitcoin was about $7,000, having reached the threshold for the first time just hours earlier. The upswing continued a rally that started Wednesday, when the Chicago Merchantile Exchange announced plans to offer Bitcoin futures — a move that could add even more institutional investors to Bitcoin markets and theoretically push up prices.

While Bitcoin investors cheered the rally, dubbing the CME’s decision a step toward legitimizing the cryptocurrency, it was also a reminder that digital coins still have a ways to go before reaching widespread mainstream adoption.

After breaching $6,500 for the first time a day earlier, Bitcoin prices surged as high as $7,350 in trading Thursday likely thanks to traders in Asia noticing the CME’s announcement.
 

“This is Asia waking up and FOMO,” said Timothy Enneking, managing director at Crypto Asset Management, referring to the fear of missing out on a potentially lucrative rally.

But the euphoria didn’t last. Over the course of the following 20 minutes or so, bitcoin prices shed $550 to hit $6,800—a 7.5% swing. While the volatility of Bitcoin has lessened since its inception, the price swings have continued to worry regulators and institutional investors—deterring widespread use.

Bitcoin's Three-Day Ride

Earlier this year for example, the Securities and Exchange Commission denied a proposal that would allow for a Bitcoin exchange traded fund, or ETF. Some Bitcoin investors had hoped an ETF tied to the cryptocurrency would do what they now expect the CME’s decision to do: Bring in more institutional investors.

In the filing denying the proposal, the SEC noted that Bitcoin had “fundamental flaws” that made it a “dangerous asset class to force into an exchange traded structure.”

Those flaws included price volatility, low liquidity, shallow trading volumes, and oversized exposure to trading in countries with weak regulatory oversight.

Bitcoin on the Rise

The price of Bitcoin reached three milestones in the last 30 days.

Granted, Bitcoin investors are hoping that the CME’s decision, which is still pending regulatory review, will increase the number of players in the market, thereby solving some of those problems by lowering volatility and increasing liquidity.

But other issues, including building a regulatory frame for Bitcoin both in the U.S. and abroad will take time. On top of that, Bitcoin is still undergoing growing pains on the technological side. Bitcoin users are now preparing for a potential “2x hard fork” called “Segwit2x” coming later this month.

Since Bitcoin is decentralized, its users must agree to update to the same software and rules to keep the cryptocurrency running. If just some users decide not the abide by those changes, it creates a new cryptocurrency. So far, the 2x hard fork, which would in theory increase the speed of transactions by increasing the size of blocks to 2 megabytes from 1 megabyte, has been divisive. The lack of consensus has spurred worries that the Bitcoin community itself could fragment.
 

And despite news of the CME’s decision, Thomas Lee, who is bullish on the cryptocurrency, warned Thursday owners will have to clench their teeth as bitcoin prices may still have further to fall before rebounding.

“For those tactically minded, we would be buyers of bitcoin in the $5,500 range, but such a pullback does not need to happen,” Lee, a managing partner of Fundstrat Global Advisors wrote in a Thursday note. In the long-term, Lee expects Bitcoin prices to reach $25,000 by 2022.

Authors: Lucinda Shen and Grace Donnelly November 2, 2017
 

Posted by David Ogden Entrepreneur
David Ogden Cryptocurrency Entrepreneur

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

Bitcoin blows past $7,000, double its value in mid-September

Bitcoin blows past $7,000,
double its value in mid-September

Speculators have shrugged off a
Chinese crackdown and other controversies.

Six weeks ago, it looked like Bitcoin's latest boom might be coming to an end.

The virtual currency had been worth almost $5,000 in early September, but then Chinese regulators announced a harsh crackdown on China's Bitcoin economy. On September 15, Bitcoin's price reached a low of $3,000. But then the currency bounced back, and it has been on a tear ever since. Last night the price of one bitcoin soared to about $7,000 for the first time—that's a ten-fold increase over the last year.

It's never easy to pinpoint exactly what's driving market optimism about Bitcoin, and this case is no exception. A major factor in Bitcoin's growing value over the last year has been the broader popularity of initial coin offerings—sales of new Bitcoin-like cryptocurrencies. Because it's not easy to set up an exchange for trading a new currency for dollars, most ICOs are conducted using bitcoins or Ethereum's ether as an intermediary—customers buy those currencies first and then trade them in for the new token. There has been a lot of worry that ICOs are an unsustainable bubble in recent months, but people kept pouring money into them in October. Token sales generated more than $300 million last month, according to statistics from Coinschedule.

And bitcoins have been performing better than a lot of other cryptocurrencies. Other major cryptocurrencies, including ether, the cryptocurrency of the Ethereum network, have yet to regain their early September highs. By contrast, Bitcoin is now more than 40 percent above its early September peak. We can expect more volatility in the coming weeks, as Bitcoin is due for another contentious network fork in mid-November. Still, speculators don't seem very worried about that controversy denting the popularity of the Bitcoin network.

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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Bitcoin smashes past $7,000 for the first time

Bitcoin smashes past $7,000
for the first time

  • Bitcoin soared past the $7,000 mark for the first time Thursday
  • The virtual currency reached an all-time high of $7,355.35 at about 7:16 a.m. ET
  • CME Group said it would introduce bitcoin futures contracts Tuesday

Bitcoin soars past $7,000 to a new record high

The cryptocurrency has had a bullish streak throughout the week following the CME's announcement that it will introduce bitcoin futures contracts. According to data from CoinDesk, the virtual currency reached an all-time high of $7,355.35 at about 7:16 a.m. ET. The jump in price saw the virtual coin rise by more than 7 percent on the day. A surge in the digital coin's value saw the total market value of all cryptocurrencies top $189 billion for the first time Thursday. The market cap of bitcoin alone is currently more than $121 billion, according to data from industry website Coinmarketcap.

CME bitcoin futures

On Tuesday, the CME Group, the world's largest derivatives operator, said it would introduce bitcoin futures contracts. The introduction of such a product could bring more institutional investors into the market. Analysts believe this has been boosting the price. CME said its bitcoin futures contract would be cash-settled and based on the CME CF Bitcoin Reference Rate (BRR), launched in November last year with London-based online trading platform Crypto Facilities.

"This is bitcoin crossing the divide from the wild west of finance to the mainstream," Charles Hayter, CEO of cryptocurrency comparison website Crypto Compare, told CNBC in an email Thursday. "Futures from an incumbent exchange bring bitcoin and cryptocurrencies into the regulatory fold. This allows more complex financial products to be created and will eventually open the doors to institutional money." The digital currency's price has risen 600 percent since the beginning of the year.

Regulatory concerns

A number of regulators have warned of illicit activity surrounding cryptocurrencies like bitcoin. In September, China banned a practice known as "initial coin offerings" (ICOs). An ICO is a crowdfunding method for firms to raise funds by selling new cryptocurrencies. China's regulators also moved to close down domestic bitcoin exchanges later that month. Both measures sent the price of bitcoin down sharply.

And on Wednesday, the U.S. Securities and Exchange Commission said that celebrity endorsements of ICOs could be "unlawful" if they do not disclose how they are benefiting. Banking executives like JPMorgan CEO Jamie Dimon and Blackrock CEO Larry Fink have also criticized the cryptocurrency. Dimon has made several comments on bitcoin, and last month said that investors "stupid enough to buy bitcoin" would "pay the price for it one day." Fink called the virtual currency an "index of money laundering" that same day, raising concerns over fraudulent activity.

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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Bitcoin soared above $6,900 despite strong regulatory warning from Securities and Exchange Commission

Bitcoin soared above $6,900 despite strong regulatory warning from Securities and Exchange Commission

Bitcoin soared above $6,900 despite strong regulatory warning from Securities and Exchange Commission

Bitcoin soared above $6,900 despite strong regulatory warning from Securities and Exchange Commission

  • The price of bitcoin, the red-hot digital coin up more than 550% this year, soared past $6,900 to $6,916 Wednesday evening, according to data by Markets Insider.

  • The rally comes ahead of a warning by the Securities and Exchange Commission on initial coin offerings, a cryptocurrency-based fundraising method.

Bitcoin blew past $6,900 Wednesday even after the Securities and Exchange Commission warned investors about celebrity endorsements for certain cryptocurrency-based fundraising efforts.

The red-hot digital currency traded at an all-time high of $6,916 per coin, according to Markets Insider data, on Wednesday. The rally followed a price spike triggered by the announcement of the potential launch of a bitcoin-linked financial product by exchange giant CME on Tuesday. The coin is up more than 550% this year.

The upward march continued Wednesday evening despite a warning by the SEC about initial coin offerings, a red-hot fundraising method.

ICOs, according to fintech analytics firm Autonomous NEXT, have raised more $2 billion this year. A number of celebrities from champion boxer Floyd Mayweather to Paris Hilton have supported ICO projects in recent months. But the SEC said Wednesday that such endorsements do not mean that such investments are sound. Here's the agency (emphasis theirs):

"Celebrities, from movie stars to professional athletes, can be found on TV, radio, and social media endorsing a wide variety of products and services – sometimes even including investment opportunities. But a celebrity endorsement does not mean that an investment is legitimate or that it is appropriate for all investors. It is never a good idea to make an investment decision just because someone famous says a product or service is a good investment."

The SEC added that some celebrity endorsers may not be educated on the investment opportunities they promote. Here's the SEC:

"Investors should note that celebrity endorsements may appear unbiased, but instead may be part of a paid promotion. Investment decisions should not be based solely on an endorsement by a promoter or other individual. Celebrities who endorse an investment often do not have sufficient expertise to ensure that the investment is appropriate and in compliance with federal securities laws."

A number of countries, including China, have deemed ICOs illegal because startups have used the method to raise quick money without disclosing substantive information to investors.

The SEC provided its first guidance on ICOs in July. The financial watchdog said ICOs can sometimes be considered securities — and as such are subject to strict laws and regulations.

 

Author: Frank Chaparro

 

Posted by David Ogden Entrepreneur
David Ogden Cryptocurrency Entrepreneur

 

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

How Blockchain Would’ve Saved Bitcoin Gold, Can Stop Hackers

How Blockchain Would’ve Saved
Bitcoin Gold, Can Stop Hackers

They say to keep your friends close and your enemies closer.

This may prove to be true for Blockchain technology as well, particularly when it comes to new platforms. As has reported already, the recent Bitcoin ‘fork,’ Bitcoin Gold, was the victim of a DDoS attack on the very day it started.

According to the official Bitcoin Gold Twitter account, the platform was under a huge request barrage as the altcoin was seeking to get off the ground, with 10 mln requests per minute. With such huge volume, the site was down for most of the launch day, and took a couple of days to become fully functioning again. The news follows other hacks in the second quarter of 2017, where substantial amounts of cryptocurrency have been stolen, and where white hat hackers came to the rescue.

Blockchain as solution for DDoS

The issue for Bitcoin Gold was bandwidth – the ability for a site to handle and process data. With 10 mln requests per minute, the Bitcoin Gold site simply did not have enough bandwidth to process the requests. The decentralization that Blockchain provides has created a way for bandwidth to be monetized and pooled. After all, most home internet users only use a fraction of the bandwidth they pay for every month. Through Blockchain, that bandwidth can be pooled together and sold off to companies seeking DDoS protection. According to hacking expert

Daan Pepijn:

"During a DDoS attack, this spare bandwidth is utilized to deflect and absorb the bad traffic coming from zombie machines (the same ones that the bad hackers have taken over). [Now], anyone with a computer, fast broadband connection, and spare bandwidth can rent out excess bandwidth in order to contribute to global and regional pools of DDoS mitigation nodes."

By decentralizing the bandwidth needs and pooling the excess, the technology allows companies to effectively ‘bank’ resources to protect against future attacks. Without the solutions that Blockchain technology provide, an attack like one on Bitcoin Gold will always result in a shut down.

Incentivizing the good guys

Blockchain is also being used to incentivize white hat hackers who are seeking to protect platforms from bad hackers. By offering incentives in the form of bug bounties, companies are seeking to bring their enemies into their circle of friends, and produce a system where all potential weaknesses have been found, exploited, and patched.

The digital currency Dash, for example, recently used a group of approximately 60,000 whitehat hackers to take apart their Blockchain platform in every possible way, seeking for bugs. The process resulted in a far more secure Blockchain system for the cryptocurrency. Other cryptocurrency platforms are seeking to employ these “good” hackers to protect them from bad (“black hat”) ones. White hat hackers are often incentivized by tech providers to pursue bugs via decentralized Blockchain platforms. Again, per

Daan Pepijn:

"According to Bugcrowd, businesses have so far paid out $6 million since the start of 2017, which is already a 211 percent increase from the total 2016 figure. This underscores the potential of an ecosystem for ethical hacking."

By incentivizing white hat hackers, cryptocurrency platforms are protecting users from theft and themselves from disgrace and massive loss. As with other industries, Blockchain technology seems to be the basis for such protection. Between whitehat groups and DDoS protection, Blockchain technology is providing solutions for hacking events that were unthinkable even a couple of years ago.

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

Survey: Most Americans Remain Blissfully Unaware of the Blockchain Revolution

Survey:
Most Americans Remain Blissfully Unaware of the Blockchain Revolution

With the cryptocurrency market cap now estimated

to be in the hundreds of billions of dollars and a sort of familiar frenzy kicking into overdrive, here’s another reminder that widespread adoption by the U.S. public has not yet materialized. A September poll conducted by student loan refinancing market LendEDU found that 78.6 percent of Americans were aware of Bitcoin, the most famous cryptocurrency—and up to 39.6 percent were open to “the idea of using Bitcoin for transactions and purchases.” But a poll released by LendEDU on Tuesday suggests that beyond having heard about Bitcoin in the news, the vast majority of Americans have so far declined to learn more than the bare minimum.

LendEDU’s new 1,000-respondent online poll found that just 31.6 percent were aware of Ethereum, a newer cryptocurrency which has exploded in scale to the second-largest market position in recent years. Just 18.2 percent said they planned to invest in Ether tokens. Even fewer had heard or planned to invest in Ripple, the third-largest cryptocurrency. Almost exactly three-quarters of respondents said they had never heard of initial coin offerings, a complicated and almost completely unregulated form of investment vehicle in which crypto-backed companies sell stakes in “new” cryptocurrencies in lieu of traditional stocks. Just 15.1 percent said they planned to invest in an ICO.

ICOs have boomed this year, with billions of dollars flooding into the sector despite warnings from various authorities—as well as notorious Wall Street scammer Jordan Belfort—many of the companies involved could be pump-and-dump schemes. There are hints of a possible crackdown by the Securities and Exchange Commission in the future, though U.S. regulators don’t have a great track record. ICOs’ relative obscurity may be both a curse and a blessing. It could limit the fallout of any possible implosion in the cryptocurrency markets, but people who haven’t been adequately informed of the risks might also wander into bad investments.

Taken together, the polls also suggest that regardless of the ongoing crypto boom, much of the public is staying away from the rampant speculation. It’s hard not to envy them, especially given how much resemblance the typical blockchain business pitch has to a time-share promotion. But it’s also a reminder that if trends continue, a crash could hit the larger economy with possibly serious consequences—and for many people it will seem like it came out of nowhere. Of course, it’s also possible that the bubble will never pop and the 15.1 percent who plan to get into ICOs will be the billionaire libertarian overlords of our future, in which case…

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 Price Boom Sees Students Flocking to Take Cryptocurrency Courses

Bitcoin Price Boom Sees Students Flocking to Take Cryptocurrency Courses

Bitcoin Price Boom Sees Students Flocking to Take Cryptocurrency Courses

The rise of bitcoin is seeing an increasing number of students signing up for cryptocurrency classes at top computer science schools such as Stanford.

According to Dan Boneh, co-director of the Stanford Computer Security Lab and professor of cryptography, he is attracting a large number of people to his cryptocurrency courses. As a cryptography researcher for almost 30 years, Boneh began teaching a bitcoin and cryptocurrency class in 2015, attracting more than 100 students. His online cryptography course has seen over one million signing up, reports CNBC.

As a result of bitcoin’s increase in value more students are turning their attention to learning more about them. To date, the digital currency has hit a new all-time high near $6,500 pushing its market value above $100 billion. It’s no surprise then that a rising interest is being experienced. Aside from the huge attraction in the valuation of cryptocurrencies, Boneh believes that they have another benefit too.

He said:

Cryptocurrencies are a wonderful way to teach cryptography. There are a whole bunch of new applications for cryptography that didn’t exist before.

Boneh’s online textbook is also being employed across the state. In Pittsburgh, at the Carnegie Mellon School of Computer Science, Vipul Goyal, faculty member in the Computer Science Department at CMU, is heading a class called Special Topics in Cryptography. Offered for the first time this year, around 20 students, mostly PhD candidates, are taking the class, focusing on digital currencies such as bitcoin and the blockchain.

Last year, the University of California at Berkeley launched a class called the Cryptocurrency Decal. In 2015, the MIT’s Media Lab created the Digital Currency Initiative.

Just as there has been an increase in the number of students taking cryptocurrency courses, so too has there been a rise in the number of bitcoin-related jobs.

According to employment marketplace Freelancer, there has been an 82 percent increase in jobs related to bitcoin. Speaking to CNBC, Matt Barrie, CEO of Freelancer, said earlier this week that one of the main skills that employers are looking for is a candidate’s ability to manage initial coin offerings (ICOs).
 

He said:

People are getting freelancers to design new types of cryptocurrencies.

The marketplace adds that employers want people to create new digital currencies and to create proposal plans for technologies utilizing blockchain.

In the third quarter of the year, Freelancer listed 480,000 new jobs. To date it has more than 12 million and 25 million active users on its site.

Author: Rebecca Campbell on 31/10/2017

 

Posted by David Ogden Entrepreneur
David Ogden Cryptocurrency Entrepreneur

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