Bitcoin, Ethereum, Bitcoin Cash, Ripple, IOTA, Litecoin, NEM, Cardano – Price Analysis, Jan. 12

Bitcoin, Ethereum, Bitcoin Cash, Ripple, IOTA, Litecoin, NEM, Cardano - Price Analysis, Jan. 12

Bitcoin, Ethereum, Bitcoin Cash, Ripple, IOTA, Litecoin, NEM, Cardano – Price Analysis, Jan. 12

The South Korean government has confirmed that it has no plans to ban cryptocurrency trading in the short-term. This is a major relief to the markets, which were reeling under selling pressure.

Warren Buffet’s warning that the cryptocurrencies will have a “bad ending” also did not have any noticeable effect on the prices.

During the recent decline, instead of being perturbed, many traders saw this as a buying opportunity and rushed to open new accounts. The cryptocurrency exchange Binance saw a whopping addition of 240,000 users in just an hour on Jan. 10.

However, unlike the previous occasions, the pullback from the lows has been muted. Is this a sign of waning momentum? Let’s find out.

 

BTC/USD

Bitcoin broke below the 50-day SMA on Jan. 11 and since then, it has been struggling to climb above it. It has managed to hold on to the critical support level between the trendline of the symmetrical triangle and the neckline of the head and shoulders pattern.

If Bitcoin fails to rally within the next two days, chances are that it will turn down and break below $12,500, sinking it to $8,000 levels.

On the other hand, if the cryptocurrency clings on to the support and moves above the 20-day EMA, it will indicate a short-term bottom.

Very aggressive traders can buy on a breakout above $14,500 and keep a stop loss of $12,500. The target objective of this trade is $16,500. This is a very risky trade, hence, should be attempted with only 25 percent of the usual position size.

Risk-averse traders should wait for a reliable setup to form as there is no clear trend on the BTC/USD pair as long as it trades inside the triangle. It’s better to wait for a breakout or breakdown from the triangle before initiating any positions.

 

ETH/USD

Ethereum has been comparatively strong during the South Korean ban episode. This shows that its owners are not in a hurry to sell their holdings.

The buyers jumped in at the 38.2 percent Fibonacci retracement levels of the latest rally from $640.43 to $1,382. The uptrend remains intact and the bulls are likely to make another attempt to break out of the recent highs at $1,382.

 

If the price breaks out of the overhead resistance zone of $1,382 to $1,434, it will signal the start of the next leg of the up move, which can carry the ETH/USD pair towards its target objective of $1,814.67.

On the downside, support exists at the 20-day EMA and at $965.18, which is the intraday low on Jan. 8.

However, as we expect a strong resistance between $1,382 and $1,434, we are not recommending any fresh long positions in it.

 

BCH/USD

Bitcoin Cash broke out of the range on Jan. 10, however, contrary to our expectation, it could not rally to $3,249. It faced strong resistance at $2,950 and turned down from there.

It continues to be range bound but in a larger range. On the upside, $2,950 is the critical resistance and on the downside, $2,291 continues to be a strong support. If this support breaks, it has another support at the $2,072 level.

Traders should wait for a breakout above $2950 to initiate long positions. The breakout is likely to carry the BCH/USD pair towards the highs.

On the other hand, a breakdown below $2,072 can result in a decline to $1,733 and thereafter to $1,200.

 

XRP/USD

For the past three days, Ripple has been attempting to hold the uptrend line. The bulls continue to buy the dips close to the $1.5 levels.

The cryptocurrency is currently correcting inside a descending channel. If the bulls succeed in breaking out of the resistance line of the channel, a move to $2.85 is likely.

Strong support exists between $1.76978 and $1.40463, which are 50 percent and 61.8 percent Fibonacci retracement levels of the recent rally from $0.22255 to $3.317.

But we don’t find any reliable buy setups on the XRP/USD pair. Hence, we are not recommending any trade on it.

 

IOTA/USD

IOTA has continued its range-bound trading between $3.032 and $4.34. Yesterday, Jan. 11, the bulls again defended the lower end of the range.

We expect the range to hold. Hence, traders can buy on weakness towards $3.1 and keep a stop loss of $2.7.

The IOTA/USD pair should attempt to move towards $4.34 once it breaks out of the downtrend line. A move above $4.34 is likely to propel it towards the upper end of the range at $5.59.

Our bullish view will be invalidated if price breaks down and sustains below $3.032.

 

LTC/USD

Litecoin is still stuck inside the symmetrical triangle. Yesterday, Jan.11, the bears failed to break down of the triangle.

The bulls will now try to push prices towards the resistance line of the triangle at $280. The move will gain momentum above $254. The support is way lower at $215.

At the moment the risk to reward ratio is not attractive for trades.

The LTC/USD pair will become bearish if price breaks down and sustains below the 50-day SMA.

 

XEM/USD

As forecast in our previous analysis, the decline to the trendline support prompted buying. NEM is currently in a pullback. Should we trade this?

The traders bought the dip below the trendline support yesterday, Jan. 11. We now expect the XEM/USD pair to rally to $1.56949 and $1.68590, which are 50 percent and 61.8 percent Fibonacci retracement levels of the recent fall from $2.06278 to $1.07619.

The aggressive traders can buy at the current levels of $1.38 and keep a stop loss at $1.06, below yesterday’s lows. Though the initial risk to reward ratio is not attractive, we believe that buying near the strong support of the trendline is a good strategy.

 

ADA/BTC

Buyers bought the dip below the trendline on Jan. 11. We had forecast a pullback from the trendline in our previous analysis but advised waiting for a confirmation of a bottom before buying. So, can the traders buy now?

If the pullback sustains above the 0.000057 levels, we expect the move to extend to $0.00006616 and $0.00007221, which are 50 percent and 61.8 percent Fibonacci retracement levels of the recent fall.

Traders can buy the ADA/BTC pair at the current levels and keep a stop loss at 0.00004. Here too, we are recommending a trade without an attractive risk to reward ratio because we are buying close to the strong support of the trendline from where the price can surprise on the upside.

 

 

Author: Rakesh Upadhyay

 

Posted by David Ogden Entrepreneur
David Ogden Cryptocurrency Entrepreneur

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

Bitcoin, Ethereum, Bitcoin Cash, Ripple, IOTA, Litecoin, Dash, Monero: Price Analysis, Dec. 30

Bitcoin, Ethereum, Bitcoin Cash, Ripple, IOTA, Litecoin, Dash, Monero

Bitcoin, Ethereum, Bitcoin Cash, Ripple, IOTA, Litecoin, Dash, Monero: Price Analysis, Dec. 30

Cryptocurrencies have generated wealth for the traders like no other asset class. While Bitcoin has garnered most of the attention, it is not the only one to have risen in 2017. There have been scores of winners.

Ethereum was the second leading currencies aiming to overtake Bitcoin as the dominant leader of the year; it could never really achieve the feat.

However, within the past two weeks, Ripple has skyrocketed from a low of $0.22 on Dec. 10, to a high of $2.47 today. That’s a whopping rally of 1024 percent within a span of 20 days.

As a result, Ripple has now overtaken Ethereum as the second most valuable currency by market capitalization.

Bitcoin’s dominance, which had risen above 60 percent just a few weeks back has again cooled off to 38.3 percent.

As the market matures, we are likely to see a number of changes in the rankings of these currencies. Therefore, one has to keep an open mind towards all the cryptocurrencies because as traders; our main goal is to earn money.

So, do we have any good buy setups for the end of the year or is it best to remain on the sidelines and enjoy the holidays, returning to trade in the new year? Let’s find out.

BTC/USD

We expected a pullback from the trendline, however, due to lack of buyers, the recovery never gained strength. Today, the bears easily broke below the trendline support, which has escalated the selling.

Bitcoin has broken down of the neckline of the bearish head and shoulders pattern. If the cryptocurrency sustains below the neckline, it has a pattern target of $5,745.

However, we don’t expect to see such a plunge in the short-term.

We believe that the bulls will attempt to defend the recent lows of $10,704.99. But if they fail, the bears are likely to intensify their selling. A number of long positions will start to bleed, which is likely to lead to panic selling. We see another support at the $8,000 mark.

All these lower levels will come into play only if the BTC/USD pair breaks and sustains below the 50-day SMA.

Contrarily, if the bears are unable to breakdown of the 50-day SMA, we may see a recovery in the new year. Yet, we will prefer to wait until the digital currency breaks out of the downtrend line to initiate any position. We don’t find any trades at the current price.
 

ETH/USD

We mentioned that Ethereum will become positive in the short-term only on a breakout and close above the downtrend line. Yesterday, the bulls broke out of the trendline but could not manage a close above it.

On the downside, the 20-day EMA has been providing a strong support. If this support level breaks, we may see a slide towards $646.08 and thereafter to $600 levels. On the other hand, the ETH/USD pair will become positive above $770 because it has returned from the $760 levels on three occasions.

Between the 20-day EMA and $760, we are likely to witness a volatile range-bound trading action.

Therefore, we suggest waiting until we get a clear breakout and a confirmation of the resumption of the uptrend.
 

BCH/USD

For the past two days, the bulls had been defending the $2300 mark. But their attempt to resume the rally failed yesterday.

Today, the bears have broken down of the critical support level of $2300. The next downside target on the BCH/USD pair is a fall to the 50-day SMA.

We expect a strong buying around the $1,733 levels. Nonetheless, we recommend waiting until there is a clear bottom in sight.

Consider avoiding buying in a falling market.
 

XRP/USD

Ripple roared past our initial target objective of $1.5. Today, it reached an intraday high of $2.474.

Traders who had purchased on our bullish prediction should close their positions or at least trail with a close stop loss depending on their strategy.

After such a stellar rally, we expect the XRP/USD pair to enter into a correction or a consolidation. Therefore, we don’t have any fresh buy recommendations on it.

 

IOTA/USD

The bulls have successfully held on to the lower end of the range at $3.032 for the past few days. However, they have not been able to push the cryptocurrency higher.

Today, the IOTA/USD pair is again under a bear attack, which is threatening to break below the critical support. If the bears succeed, the cryptocurrency will fall to the 61.8 percent Fibonacci retracement level of $2.62196.

Yet, if the bulls manage to hold the supports once again today, IOTA will continue to trade inside the range. We shall initiate buy positions only on a breakout and close above the downtrend line. Until then, we shall remain on the sidelines.

LTC/USD

The bears have broken below the neckline of the head and shoulders pattern. Unless the bulls stage takes a sharp recovery today, chances are that Litecoin will continue lower in the next few days.

We anticipate a strong support at the recent lows of $175.199. The 50-day SMA is also just below this level, which should also provide some support.

However, if both these levels fail to hold, the LTC/USD pair will fall towards $110, which is the target objective of the breakdown of the head and shoulders pattern.

Our bearish view will be invalidated if the bulls manage to push the digital currency above the neckline at $240.
 

DASH/USD

For the past two days, the bulls managed to hold on to the 20-day EMA. But today, the bears have broken below the moving average support.

Dash has a strong support at the trendline. We expect the bulls to strongly defend this level.

Though we shall avoid buying until we get a confirmation of a bottom formation because if the trendline breaks, the DASH/USD pair can fall to $800 and thereafter to $650 levels.
 

XMR/USD

We were expecting a range-bound trading action in Monero. Despite that, the bears have taken control and have broken below the 20-day EMA today, which is a bearish development.

The immediate support on Monero is at $300. If this level breaks down, we are likely to see the decline extend to the recent lows of $245.1. The 50-day SMA is also at this level. Just below there is the 61.8 percent Fibonacci retracement level of $230.66.

We expect a strong support in this zone. At the same time, we don’t suggest buying until the fall is arrested.

When the markets are in a bear grip, it is a good strategy to wait until the decline ends, instead of being brave and attempting to catch a falling knife.

 

Author: Rakesh Upadhyay

 

Posted By David Ogden Entrepreneur
David Ogden Cryptocurrency Entrepreneur

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

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

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

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

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

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

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

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

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

 

Author ABHIMANYU GHOSHAL

 

Posted by David Ogden
David Ogden Cryptocurrency Entrepreneur

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

Bitcoin vs. Bitcoin Cash – Can Both Survive

Bitcoin vs. Bitcoin Cash - Can Both Survive

Bitcoin vs. Bitcoin Cash: Can Both Survive?

Industry leaders comment on which will dominate the market: Bitcoin or Bitcoin Cash.

You could be forgiven for thinking Bitcoin Cash was dead; the currency had slumped to about $600 before a sudden revival last week caused the price to soar to $2,600 while simultaneously knocking Bitcoin down a few notches.

As a brief recap, Bitcoin recorded a new all-time high of about $7,800 on Wednesday, November 8 followed by a downward trend, which saw Bitcoin fall by nearly 30 percent to under $5,630 by Sunday, November 12. The root of this was that the Bitcoin community couldn’t reach a consensus to proceed with the proposed SegWit2x hard fork. However, it didn’t take long for Bitcoin to return to its previous values and seek new highs.

The discussions of a hard fork finds its root in the one megabyte block size limit that the original developer of Bitcoin, Satoshi Nakamoto, set to make the digital currency more secure. Given the limit of only 21 million Bitcoins, Satoshi most likely didn’t envisage that Bitcoin will be as huge and valuable as it is today. That’s certainly understandable since nothing like it had ever existed.

However, now that the digital currency has become more popular than Satoshi probably envisaged, the currency is dealing with the modesty of its original design. Bitcoin’s lack of capacity has led to the growing amount of time it takes to process Bitcoin transactions. Those who would like to have their transactions confirmed in a timely manner have to pay relatively more transaction fee as an incentive for transaction validators (miners) to prioritize their transactions.

According to a website that tracks Bitcoin fees, the current “fastest and cheapest transaction fee is currently 770 satoshis/byte.” For reference, a comment on BitcoinTalk pointed out that the recommended fee (same as the fastest and cheapest fee) as of January 2017 was 120 satoshis. That’s over 500 percent increase in the recommended transaction fee since the beginning of the year.

This is contrary to the promise of speed and affordability that has been publicized as one of the advantages that Bitcoin offers over the traditional ways of conducting financial transactions.

The aim of the shelved SegWit2x hard fork was to solve these challenges by increasing the amount of transaction data that each block can handle to two megabytes. Once this fork was cancelled, some investors grew weary and pulled out of Bitcoin and moved into Bitcoin Cash, a digital currency that resulted from a Bitcoin hard fork in August.

Bitcoin Cash recorded an all-time high of over $2,500 when Bitcoin was falling on November 12. Considering that the scaling limitations inherent in the Bitcoin system still lie unfixed, coupled with the social buzz around Bitcoin Cash, investors are likely to be worried about what the future holds for Bitcoin. Here are some thoughts from industry experts.

 

The Lack of Consensus Makes Bitcoin Vulnerable To Big Money Manipulation

According to DNX Community CEO Conradie Graeme, the failure to push the SegWit2x hard fork through is a setback for Bitcoin.

“Everyone is focused on scalability issues, but I believe there’s a bigger vulnerability issue about Bitcoin Think about it, as it stands, if you can afford to pay more in transaction fee, you can have your transactions confirmed quickly and there is no limit to the amount of Bitcoin you can buy or sell. And in reality, it’s only the big money investors/traders who can afford to pay more in transaction fees. So in theory, big money can pump and dump Bitcoin using the unfair advantage of being able to get their transactions confirmed quickly by paying more. They can dump before anyone else to take profits. This could mean that Bitcoin will remain highly volatile and high volatility could hinder it from ever becoming huge in the digital payment space.”

 

Bitcoin’s Value Will Decline

Maksim Balashevich, CEO and Founder of Santiment, believes that Bitcoin will drop in value.

There is always time to accumulate and then also time to reduce the risks. #bitcoin is risky now more than rewardy #cryptocurrency pic.twitter.com/FC2PnhX3bZ

— Santiment (@santimentfeed) November 7, 2017

Santiment believes Bitcoin’s value will drop, being redistributed among other ‘cash payments protocols’ such as Bitcoin Cash, Ethereum, Dash, Monero and Ripple. He adds:

“The Bitcoin Core [developers] (and Blockstream) should feel the real pressure and pain for what they’ve been denying for too long time. Once this pain is obvious and on all discussion boards, we might find the way for relief.”

 

There’s Room for Coexistence

Eric Jackson, CEO and Co-Founder, CapLinked, on the other hand, believes that Bitcoin’s widespread institutional support and adoption means that it will likely be here to stay, adding that its recent price rebound confirms that. That doesn’t mean Bitcoin Cash has no chance. Here are his words:

“I also believe that it is possible for Bitcoin Cash to coexist with Bitcoin. Bitcoin’s appreciation over the past half-decade has turned it into a store of value more comparable to gold than a currency. The very notion that Wall Street is developing derivatives of Bitcoin also suggests that it is on its way to becoming the world’s first digital commodity. Bitcoin has smaller block sizes and higher transaction fees compared to [Bitcoin Cash], making [Bitcoin Cash] mechanically better suited as a payment option than Bitcoin. Thus, assuming the rise of [Bitcoin Cash] is in part due to the need for a more flexible digital payment mechanism, I think there is room in the world for both.”

Clem Chambers, CEO of global stocks and shares website ADVFN also shares the view that several digital currencies can coexist:

“There is room in the market for both Bitcoin and Bitcoin Cash, and for that matter many other coins including eccentric issues like Bitcoin Gold. In classic coinage, there are many denominations for the very same reason that there will be many different cryptocoin denominations. There are also many different currencies on top of denominations and for that matter an infinite set of designs. Cryptocurrency will follow a similar path.”

At press time, Bitcoin is trading at an all time high of just under $8300.
 

Author: Craig Adeyanju 11/21/2017 – 04:39

 

Posted by David Ogden Entrepreneur
David Ogden Cryptocurrency Entrepreneur

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

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

Bitcoin Breaks Through $8,000 Following Massive Head Fake

Bitcoin Breaks Through $8,000 Following Massive Head Fake

Bitcoin Breaks Through $8,000 Following Massive Head Fake

Bitcoin just surmounted the $8,000 level, topping out at $8,020 on Bitfinex before retreating to $7,900 at press time. By now, reading about Bitcoin’s breach of its previous high might be getting repetitious, so strong has the currency’s bull run been. This time is an exception, though, because Bitcoin just pulled the mother of all head fakes.

Looking back

About a week ago, the SegWit2x hard fork was cancelled and the price immediately spiked from $7,200 to $7,800. But within the hour, the price had dropped and continued to fall further. Just a few days later, Bitcoin had sunk to a local low of $5,500, while rival Bitcoin Cash shot up from $600 to $2,600. At the time, a large number of Bitcoin miners had moved to Bitcoin Cash and the number of unconfirmed transactions soared to over 135,000. Fees increased commensurately.

Things didn’t look good. Bitcoin had just officially eschewed the only near-term solution to the scalability crisis. SegWit, which was adopted back in August, will take time to gain traction as wallet providers must include the feature and users must voluntarily begin using it. Lightning Network, Bitcoin’s long-term scaling plan, is still in testing and not ready for primetime yet. With the cancellation of 2MB blocks, it became obvious that there would be no quick fix to the currency’s scaling problem.
 

Waves of good news

However, Bitcoin Cash began rapidly dropping from its nearly vertical price ascent, miners came back to Bitcoin, and the transaction backlog subsided. Bitcoin’s price began to rise, and as good news arrived, the price moves became even larger.

What good news? Well, the British hedge fund Man Group, with over $100 bln in funds under management, announced they will begin trading Bitcoin once CME’s futures market is launched. Immediately following this, Payments app Square announced its full integration of Bitcoin into the payments platform. The company stated:

“We’re always listening to our customers and we’ve found that they are interested in using the Cash App to buy Bitcoin. We're exploring how Square can make this experience faster and easier, and have rolled out this feature to a small number of Cash App customers. We believe cryptocurrency can greatly impact the ability of individuals to participate in the global financial system and we're excited to learn more here.”

Square’s market capitalization swelled from $15 bln to $16 bln following the announcement, so Wall Street is apparently just as pleased as the Bitcoin community.

 

Coinbase Custody

Adding to the good news, Coinbase today announced Coinbase Custody, a Bitcoin storage service intended for hedge funds that might want to invest in the digital currency. Coinbase’s announcement states:

“Over 100 hedge funds have been created in the past year exclusively to trade digital currency. An even greater number of traditional institutional investors are starting to look at trading digital assets (including family offices, sovereign wealth funds, traditional hedge funds, and more). By some estimates there is $10B of institutional money waiting on the sidelines to invest in digital currency today. When we speak with these institutions, they tell us that the number one thing preventing them from getting started is the existence of a digital asset custodian that they can trust to store client funds securely.”

The announcement continues, describing the benefits of the service:

We are designing Coinbase Custody to meet the needs of institutional clients. In particular, we feel that institutional clients require:

  • Strict financial controls (multiple signers, audit trails, limits, etc)

  • Dedicated account representatives and phone support

  • SLAs on funds transfers

  • A regulated digital currency custodian

  • Multi-user accounts with separate permissions

  • Support for a wide range of digital assets and currencies

  • Insurance (in some cases)

  • And high levels of cyber and physical security

  • The new service is expected to launch in 2018.

Expect sharp moves

Bitcoin’s technical analysts, who look at chart patterns to try and predict price moves, suggest that the currency is about to experience a significant price move. Because of its rapid climb, analysis would seem to indicate that the price should experience a pullback here to regroup and consolidate before pushing higher. However, around $8,000 is the top of the trading channel that Bitcoin has been in for months, and if the price can resoundingly break through this barrier, it could go parabolic.
 

In a sense, Bitcoin’s value is even higher than it would appear, at least for those who owned Bitcoin before the August 1 fork and who held the resulting Bitcoin Cash they received. User csasker on the /r/BitcoinMarkets subreddit wrote:
 

BTG + BCH + BTC now over 9000! :D:DDD

 

Author: David Dinkins

 

Posted by David Ogden Entrepreneur
David Ogden Cryptocurrency Entrepreneur

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

Why Silicon Valley is going gaga for Bitcoin

Why Silicon Valley is going gaga for Bitcoin

Why Silicon Valley is going gaga for Bitcoin

Cryptocurrencies are on a historic tear right now. And Silicon Valley’s infatuation with the industry explains a lot about itself.

Should I buy bitcoin? As a technology reporter, the questions I receive from random people at birthday parties, say, or seatmates on a plane, are usually emblematic of what is going on in the digital world. (And, increasingly, the real one, too, for that matter.) Not too long ago, the predominant question was Should I buy the new iPhone? Then it became Do I need to be on Twitter? or Do I need to be on Facebook? or Do I need to be on Snapchat? (That question has since come full circle to Should I quit Twitter and Facebook?) These days, the question I hear the most—well, besides whether Twitter should ban Trump—is Should I buy bitcoin?

I usually respond with the story of Laszlo Hanyecz. If you’ve come within 500 feet of bitcoin, or any other cryptocurrency, over the past few years, the name alone will make you cringe. Back in 2010, when the currency was in its infancy, Hanyecz went “mining” for bitcoins for a few months and collected 10,000 of them; he subsequently traded them, in what would be the first cryptocurrency transaction in history, to a guy who bought him two Papa John’s pizzas with a couple sides of that tasty, buttery garlic sauce. Back then, Hanyecz’s bitcoins had no value, and the $30 value of two pies and an accoutrement made his individual bitcoin units worth 0.003 cents apiece. Today, at their current market valuation, bitcoin units are worth around $5,800 each, which means Hanyecz’s 10,000 bitcoins would be worth around $58 million. “It wasn’t like bitcoins had any value back then, so the idea of trading them for a pizza was incredibly cool,” Hanyecz told me in 2013, when bitcoin was already valued at $1,242 each. “No one knew it was going to get so big.”

For a lot of people on the periphery of this technology, the extraordinary rise in bitcoin’s value has become cause for alarm. The Web is littered with news articles, blog posts, and white papers warning that bitcoin and its sibling currencies are worth nothing, and the rise and fall of the currencies’ worth, which can fluctuate by billions of dollars a minute, certainly backs that up. But while Jamie Dimon and other bankers might scoff at these digital currencies, Silicon Valley is extremely bullish. There’s a reason, too: if Dimon had invested in bitcoin when he first called it a joke, in 2015, he would have received a tenfold return on his investment.

There are a number of reasons why bitcoin and cryptocurrencies are doing so well right now. One of the more plausible scenarios was outlined this week in a very clever post written by Adam Ludwin, an investor and co-founder of Chain.com, a bitcoin developer platform, which argues that bitcoin is an entirely new asset class, similar to equities and bonds, and that “bitcoin is capitalism, distilled.” The “capitalism” part of the sentence helps explain why some in Silicon Valley are so specifically exuberant about it right now. “In the short-run, there will be extreme volatility as FOMO competes with FUD, confusion competes with understanding, and greed competes with fear (on both the buyer side and the issuer side),” Ludwin wrote. “Most people buying into crypto assets have checked their judgement at the door.”

This gets someone like me a bit nervous about what cryptocurrencies could end up doing to society in the long run. Silicon Valley culture is largely fueled by people who love to decimate industries that don’t work, often without any thought of how the disruption could lead to other negative results happening in society (see the recent social-media debacle around the election ). In typical Valley fantasy, people are seeing only the positive potential with bitcoin, not the potentially ugly outcomes when humans molest it for their own interests.

One of the many factors currently fueling the ascent of bitcoin is the rise of initial coin offerings, or I.C.O.s, where some lucky investors are reaping astounding returns. You can think of these like a traditional initial public offering, or I.P.O., but without the layers upon layers of regulation and government bureaucracy that come with a company going public. With an I.C.O., a start-up raises money for a new venture by selling “coins” that are very similar to shares of a public company. The coins then rise and fall as the company’s value oscillates. In 2014, when the founding of a new cryptocurrency called Ethereum was announced, it raised $18 million by selling a new digital coin called “Ether” for 40 cents per coin. Today, Ethereum has a market cap of around $30 billion. So if you had spent $100 on Ether during the I.C.O., you would have made $74,900 in profit. As Nathaniel Popper detailed in The New York Times earlier this summer, I.C.O.s have been generating billions of dollars in returns for some—and a lot of scams, too.

The lack of regulation in the cryptocurrency world, after all, means that there is a lot of fraud, extreme volatility, and coin values can jump up or down in mere seconds. Someone I recently spoke with who works with, and monitors, the crypto I.C.O. markets pointed out that some of these I.C.O.s feel awfully similar to the Dot Com public offerings of the late 90s, where the public was buying into nothing and ended up with exactly that when the entire market came crashing down and trillions of dollars were wiped off the stock market. In China, I.C.O.s became so troubling that they were banned earlier this year. In September, the People’s Bank of China issued a blunt statement saying that this practice was “illegal and disruptive to economic and financial stability.” I.C.O.s in China were occurring at an astounding rate, with one report claiming that more than $750 million was raised in I.C.O.s in July and August alone. A lot of people think the ban by China is temporary, slowing the dizzying speed of these offerings.

As a result of all the movement in the cryptocurrency market over the past couple of years, there are a lot of options out there for people who want to try their hand in crypto-investing. There’s bitcoin, the first and most well known of all the currencies, which currently oscillates in value at around $5,000 a coin. I’ve heard predictions all over the map, from bitcoins one day being worth as much as $500,000 each to units being worth absolutely nothing if a better coin comes along. (My personal prediction is that they will continue to rise for at least the next couple of years.) Ether had remained relatively flat until earlier this year when it spiked in value to over $350 apiece. (It’s since fallen to $300 each.) The current coin du jour is called Litecoin, which is getting a lot of attention because it’s still priced relatively low, at around $55 each, and is expected to rise considerably over the next year or so on account of new features that will be added to enable more privacy options. Then there are a slew of other coins to explore, including Monero, which is an open-source currency that was developed in April 2014, but which spiked this year after the illegal drug market AlphaBay was taken down. Monero, unlike other currencies, is truly anonymous, making it the perfect currency with which to buy and sell drugs, guns, and other illegal contraband on the Dark Web. If you look at the World Coin Index Web site, you can see a long list of other coins and their values over time, including Ripple, Bitcoin Cash, Qtum, NEO, Nav Coin, NEM, and a number of other coins.

For Silicon Valley, betting on one of these early can mean profiting beyond all imagination, exceeding even the famed 1,000x start-up returns from companies like Facebook and Uber. Earlier this summer, I interviewed Tyler and Cameron Winklevoss, the twins who co-founded The Facebook with Mark Zuckerberg, and they are now obsessively investing in cryptocurrencies. In a settlement with Facebook, the two brothers were awarded $60 million, but to hear them talk about it, it appears their investments in bitcoin and other currencies are going to reap a far bigger return over time. I’ve spoken with countless other people about the current state of bitcoin and cryptocurrency, and I’ve heard two truths that seems consistent. No one—and I mean no one—knows exactly which digital currency will be successful in the future. It could be bitcoin, it could be Litecoin, it could be something that hasn’t even been created yet. But, the other resounding feeling is that these currencies are here to stay in one form or another and there is nothing anyone can do to stop them. Which brings me back to that question that I’m often asked these days: “should I buy bitcoin?”

There’s an old saying in real estate that “you shouldn’t wait to buy, but rather you should buy and then wait.” That’s the way I feel about these cryptocurrencies. If you’re looking for a quick and dramatic financial boost, realize that you could probably get similar odds by buying a plane ticket to Las Vegas, walking into the first casino you see, and putting all your money on black or red. But, if you’re willing to wait it out, there’s a chance that your investment in a cryptocurrency could make for an impressive return over time. Just be prepared to go it the long haul. Or at least until the price spikes tomorrow.

Author Nick Bilton – special correspondent for Vanity Fair.

 

Posted by David Ogden Entrepreneur
David Ogden Cryptocurrency Entrepreneur

 

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

First Cash, Now Gold? Another Bitcoin Hard Fork Is on the Way

first cash now gold

First Cash, Now Gold? Another Bitcoin Hard Fork Is on the Way

Bitcoin, bitcoin cash, bitcoin gold?

There could be as many as four cryptocurrencies bearing the bitcoin name if a small group of miners and developers carry out a planned fork of the blockchain this month.

Styled as a rebellion of sorts, bitcoin gold aims to follow a similar launch plan as bitcoin cash – the blockchain that split from bitcoin this summer by way of a "hard fork." The idea of the project is to release an improved protocol, one that will challenge bitcoin cash in particular, and details are now starting to come come into focus.

Led by Jack Liao, CEO of Hong Kong mining firm LightningASIC, bitcoin gold is slated to launch on October 25, with its cryptocurrency being opened to exchanges on November 1.

Still, while whispers of the event are just beginning to spread, the importance of the project appears up for debate. Given that bitcoin cash produced an ultimately smaller bitcoin network, not to mention a cryptocurrency that's worth about 12 percent as much as bitcoin at press time, most seem to view the plan as another distraction in an already divided community.

For one, bitcoin gold looks like it could be even smaller that bitcoin cash, at least in that not as many miners seem to support it.

In remarks, BTC.Top founder Jiang Zhuoer and ViaBTC CEO Haipo Yang – two early champions of bitcoin cash – went so far as to downplay bitcoin gold as insignificant.
 

'Decentralized again'

But while those in the know might be skeptical of bitcoin gold, it does have a goal that many in the community may find attractive: creating a truly decentralized bitcoin.

Most notably, the developers behind the network hope to open up mining to more participants by replacing bitcoin's mining algorithm with one that will enable it to be mined with graphics cards. The idea is to make big miners – sometimes controversial figures on the network – less relevant.

"Bitcoin gold will implement a proof-of-work change from bitcoin's SHA256 to Equihash, a memory-hard algorithm that is ASIC-resistant and optimized for GPU mining," explained pseudonymous bitcoin gold developer "The Sorrow."

That the plan is being hatched in China, long the hotbed of bitcoin mining, only adds another layer to the story. Liao, whose mining hardware largely focuses on the litecoin network, is seen as one of the few voices domestically that can challenge the established order.

Yet, Liao was quick to name one mining firm in particular, Bitmain, as the reason that more bitcoin users should support the idea. A mining company that has been at the center of bitcoin drama over the last year, critics have long argued that the firm has too much of an influence over the network.

Still, creating a network that grows so popular as to remove miners is easier said than done, and some are skeptical that this would lead to the end goal that bitcoin gold advocates desire.

"GPU mining can't prevent centralization. GPU [markets] are controlled by Nvidia and AMD," Zhao Dong, a cryptocurrency trader and investor, argued in response to the plan.

Liao, however, argued the accessibility of the companies' products means the distribution of hashing power might evolve differently.

 

Bitcoin gold's unknowns

Again, though, even project leaders admit many of the details around the hard fork are fuzzy.

Bitcoin gold's pseudonymous lead developer "h4x" said that the project is "still evolving" and details such as exact block height of the hard fork are still up for discussion.

According to the original website text, bitcoin gold was even planning an initial coin offering (ICO) by which 1 percent of the bitcoin gold coins would go to the developer team, but these details have since been removed.

One thing is clear though about the funding: because of the nature of the split, every bitcoin user at the time will have an equal amount of bitcoin gold associated with their private key.

"It is a minimalist fork of the Bitcoin Core codebase in the spirit of litecoin – only a few conservative modifications," said h4x.

H4x went on to describe bitcoin gold in more abstract biological terms, arguing that it tests how well hard forks work and if they benefit the ecosystem.

He said:

"Organisms derive benefits from creating offspring. With bitcoin gold we are conducting an experiment to see if that principle holds true in the world of blockchains."

And this sentiment is largely in line with developers who have predicted that more bitcoin forks similar to bitcoin cash will come forth in the future.

After bitcoin cash forked earlier this summer, for example, Lightning Network developer Tadge Dryja argued that more forks would spring up, but for another reason: money.

With bitcoin gold in the works and another hard fork slated for November, it seems that prediction is slowly becoming reality.

 

Sep 27, 2017 at 08:00 UTC by Alyssa Hertig

 

Posted by David Ogden Entrepreneur
David Ogden Cryptocurrency entrepreneur

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

Bitcoin Cash – The New King of Cryptocurrency

Bitcoin Cash - The New King of Cryptocurrency

Bitcoin Cash – The New King of Cryptocurrency

Less than a month ago, a few new lines of code and a verbal agreement forked the Bitcoin blockchain, creating a newer, more nimble version called Bitcoin Cash. Since its arrival on Aug. 1, the infant cryptocurrency has more than doubled in value from $300 to a price north of $600, and investors are now wondering if its popularity poses a serious threat to the Bitcoin throne.

Bitcoin Cash is essentially a clone of the existing Bitcoin blockchain​ with one important feature: additional block size capacity (more on that later). Those who owned Bitcoin before the split now own an equal amount of Bitcoin Cash, meaning Bitcoin Cash and Bitcoin each now have 16.5 million units in circulation. Multiply Bitcoin Cash’s recent price of $607 times 16.5 million units, and you arrive at a market cap of $10.8 billion, making it the third-most valuable cryptocurrency​ at around 16% of Bitcoin’s $69 billion market value. An asset with the same value as streaming-music service Spotify or social media giant Twitter was born overnight.

Bitcoin Cash - The New King of Cryptocurrency

Source: Coinmarketcap.com

Bitcoin Cash got off to a slow start but sprang to life as the cryptocurrency’s mining algorithm self-corrected to attract profit-seeking computers, known as miners. These super-computers are the beating heart of the blockchain responsible for verifying and embedding transactions in digital ledgers, called blocks. Once the market noticed a rise in the rate at which blocks were being produced, known as the hash rate, investors bid up the price of the resulting tokens.

Bitcoin Cash - The New King of Cryptocurrency

Source: Tradingview.com

An Answer to a Years-Long Dispute

When Bitcoin was first introduced in 2009, block sizes were unlimited. To buy and sell Bitcoin, wallets required users to keep a record of the entire blockchain. It was as if one had to download the entire history of Google searches to find something on the internet. This led to an abundance of Denial of Service (DOS) attacks as hackers stuffed blocks with meaningless transactions making it difficult for users with slower computers to transact. To alleviate this problem, the Bitcoin community moved to limit block size to one megabyte (MB)

Currently, the 1 MB block size limits transaction speeds to four to seven per second, which can’t compete with Visa's and Paypal’s 2,000 transactions per second. Newer, innovative wallets permit an increase in block sizes, and the introduction of Bitcoin Cash is necessary to scale for mass adoption as a payment platform.

The new cryptocurrency attempts to solve the scaling problem by increasing existing block sizes from 1 MB to 8 MB, thereby increasing the amount of transactions processed per day and improving transaction speed.

Critics argue that larger block sizes will lead to the centralization of mining operations, as larger blocks require professional hardware. This would run counter to the idea of a decentralized network of miners, and limit oversight of the Bitcoin network to a few large miners and nodes.

What Has Happened Recently

To run a cryptocurrency, miners must confirm and account for recent transactions and mine new blocks. Their profitability is the spread between the value of the block reward (price of the coin x # issued per block) and the amount of resources needed to mine the block (known as the “difficulty”). The hash rate is the speed at which blocks are created. Higher hash rates make mining coins more lucrative as it increases the opportunity of mining the next block and receiving the reward.

The blockchain contains an important, self-correcting mechanism that can either speed up or slow down the hash rate when necessary. Essentially, the mathematical formula at the heart of the blockchain goes through a difficulty adjustment every 2,016 blocks. The difficulty is set so that 2,016 blocks will be mined just about every two weeks. If the pace is too slow, the difficulty adjusts downwards; and if the pace is too quick, the algorithm becomes more difficult to solve.

As Bitcoin Cash struggled out of the gates to attract miners, its difficulty adjusted sharply downward, making mining an extremely lucrative proposition. Accordingly, Bitcoin miners chased the easy money and shifted capacity to Bitcoin Cash. Hash rates subsequently skyrocketed, and this caused havoc to the original Bitcoin network. In just the past few days, the Bitcoin hash rate has been halved—slowing down the network and raising transaction prices.

Bitcoin Cash - The New King of Cryptocurrency

Source: Blockchain.info

Reports on social media say that Bitcoin transactions are taking hours or even days to confirm. However, the slower hash rate means that Bitcoin’s difficulty adjustment will be lowered for the next cycle and lead to an increase in miners.
 

The Bottom Line

Blockchain miners are now shifting capacity to Bitcoin Cash’s larger block-sized network, which is temporarily troublesome for the Bitcoin network. However, the difficulty adjustment for both networks will ensure that Bitcoin remains the king cryptocurrency—at least for now.

 

Author: Ian King August 28, 2017

 

Posted by David Ogden Entrepereneur

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

In Less Than 2 Days, Bitcoin Cash Becomes Third Biggest Cryptocurrency

In Less Than 2 Days, Bitcoin Cash Becomes Third Biggest Cryptocurrency

In Less Than 2 Days, Bitcoin Cash Becomes Third Biggest Cryptocurrency
 

Barely 48 hours since its spin-off from the Bitcoin blockchain, Bitcoin Cash has already surged past other cryptocurrencies to become the third-biggest in terms of market capitalization. How the currency will fare over time is still up for debate, as it still lacks support from several mining pools and major exchanges.
 

UNEXPECTED BOOM

Less than two days after splitting from the main Bitcoin network, Bitcoin Cash [BCC] now ranks third amongst the world’s most valuable cryptocoins. The budding cryptocurrency has reached a market cap of more $7.7 billion as of this writing, overtaking Ripple’s $6.7 billion market cap.

 

With a market cap of a little more than $44 billion, the original Bitcoin currency is leading the market, while Ethereum comes in second at $20.9 billion. In terms of value per coin, Bitcoin Cash is even ahead of Ethereum’s current valuation of $223.54, with a per unit value of $470.27.
 

The surge in Bitcoin Cash comes despite a lack of support from several mining pools and major exchanges like Coinbase and BitMEX. Some Coinbase users are even threatening to sue the exchange for not recognizing the currency.

 

Blockchain Global’s recently re-opened Australian Cryptocurrency Exchange, on the other hand, is confirming Bitcoin Cash trades and claims to have seen a huge demand for the currency. “We are receiving a lot of off-market orders for bitcoin cash — they’re exploding!” venture partner Sebastian Quinn-Watson told Business Insider.
 

A VOLATILE CURRENCY
 

The creation of Bitcoin Cash was the result of an ongoing debate regarding how to scale Bitcoin blockchain transactions, and experts are currently divided on how the split will ultimately play out.

 

For now, this sudden increase in value is understandable. Bitcoin Cash carries all the history of the original Bitcoin platform up until the fork on August 1, which means anyone with Bitcoin now has an equal amount of Bitcoin Cash.

 

Eventually, Bitcoin Cash should be able to stabilize itself for market exchanges, but right now, speculation is causing a surge in initial interest. “People are selling their Bitcoin positions and buying Bitcoin Cash as a proposition that it is the ‘new coin’ that has more value in the future,” explained Quinn-Watson. “It’s a bit speculative.”

 

No one knows for sure how long Bitcoin Cash can sustain this upshot. As with other digital currencies, Bitcoin Cash’s value depends mainly on how much value investors assign to it and how easily it can be used for “real-world” transactions.

 

“There’s no infrastructure available out of the box to support BCC,” Fran Strajnar, co-founder and CEO of Brave New Coin, told CNBC. “The network needs further support and infrastructure needs to be as easy as Bitcoin; otherwise, it’s over for BCC.”

 

David Ogden
Entrepreneur

 

 

Author Dom Galeon

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