December 19, 2017
By Jon Buck - December 20, 2017 (cointelegraph.com)
After a veiled suggestion from president Asiff Hirji that Coinbase would potentially add other assets, the exchange has officially launched support for Bitcoin Cash (BCH), according to the company’s blog post.
The addition is a welcome Christmas gift for those who held Bitcoin (BTC) in Coinbase wallets on August 1 when the BCH fork occurred. Users who had BTC at the time of the fork have received an equal amount of BCH in the newly created wallets.
After previously refusing to support the coin, the company promised that BCH support would come before the end of the year.
The blog post also made clear that Coinbase employees have been restricted from trading BCH on the site for a number of weeks prior to the announcement. Nevertheless, accusations of insider trading have hit Twitter.
hey @coinbase , @GDAX and @brian_armstrong by being part of a product index for @CMEGroup you agreed to certain rules. Since bch news was clearly leaked around 2:30pm CST to certain parties. this qualifies as insider trading. Hope you enjoy the incoming complaints.
— I am Nomad (@IamNomad) December 20, 2017
After the announcement, Bitcoin Cash’s price almost immediate jumped to over $3,000 on huge volume.
Interestingly, GDAX, the Coinbase affiliated site for trading, showed a startling price of $9,500 per BCH, though trading on the site was halted.
The Coinbase site showed the more widely published pricing. At press time, BCH was trading at $3,185, per the Coinbase site.
At press time, Bitcoin was trading at $17,000, having dropped from $19,000 to a low of $15,700 before partially recovering.
November 27, 2017
By Christine Masters - November 27, 2017 (cryptovest.com)
As Bitcoin nears $10,000 with certainty, altcoins are also inviting back investors, doubling in the past weeks and continuing to gain ground lost in September and October.
For cryptocurrency investors, an event likened to a "super moon" is rising right now, a joint bull market in Bitcoin and altcoins. While before the expected SegWit2X hard fork altcoins were sold to acquire Bitcoin, now, other digital assets are once again having their moment to shine and invite new buyers.
And the rise of all digital assets has been happening for several days now, with only temporary corrections.
The events of the last days, when a pump was expected for Bitcoin Cash, led Bitcoin to a height at $9,769.50, while the total market cap of all cryptocurrencies spiked to more than $304 billion. At the same time, Bitcoin's dominance is going down again, to 53.5% of the market cap.
The data spans more than 1300 cryptocurrencies of various ages, traded across more than 7,000 platforms.
The market dominance of assets has been mixed, with Ethereum's influence sliding, while Bitcoin Cash seems to pick up strength. But the climb of the price of altcoins taken as a whole mimics that of Bitcoin, showing that Bitcoin is not going to destroy the hundreds of other digital assets, but perhaps give them a boost.
Among the strong growers was EOS, at around $0.50 a month ago, now pushing to the $3 levels. EOS rose by more than 40% in the past day, to $2.76.
Litecoin has headed for the $100 projected for the year-end, adding 7% in the last day to top the $90 levels and settle there. Ethereum is within the $500 range, to be easily reached within hours. DASH has slowed its climb at $634, almost without change in the past 24 hours.
The top 50 coins on CoinMarketCap have grown in the past week by leaps of between 30 and 140%, with very rare losers. As the year of records approaches an end, and new investors are accelerating the adoption of cryptocurrencies, the price rally may continue- or come to an abrupt end, as the assets are still extremely volatile and prone to deep corrections and selling.
November 24, 2017
By Josiah Wilmoth - November 24, 2017 (www.cryptocoinsnews.com)
The Thanksgiving leftovers have been neatly packaged and stored away in refrigerators across the U.S., but investors will not be receiving any Black Friday discounts in the cryptocurrency markets this year. The three largest cryptocurrencies advanced in unison today, with the bitcoin price holding above $8,250 even as ethereum and bitcoin cash raced past significant milestones.
Against this backdrop, the total cryptocurrency market cap extended its record-setting streak. Having surged past $250 billion for the first time the previous day, the crypto market cap added more than $5 billion on Friday, bringing its new total to a present value of $258.7 billion.
Bitcoin Price Weathers the Storm
Ever since the post-SegWit2x cancellation bitcoin cash pump, there have been rumors that BCH advocates would mount another rally — perhaps on November 23, when U.S. investors and traders would be less active in the markets due to the Thanksgiving holiday. That theory was proved correct, though not to the degree that many expected.
The bitcoin cash price climbed nearly $600 — from $1,200 on Wednesday to $1,800 on Thursday — before pulling back to a present value of $1,658. This nevertheless represents an eight percent day-over-day increase and brings the BCH market cap to $27.9 billion.
|Bitcoin Cash Price Chart | Source: CoinMarketCap|
However, contrary to the last bitcoin cash pump, this one did not come at the expense of bitcoin. The bitcoin price did give investors a brief scare by temporarily falling below the $8,000 mark, but it quickly recovered and actually tested its all-time high on several exchanges.
|Bitcoin Price Chart | Source: CoinMarketCap|
At present, the bitcoin price is trading at a global average of $8,260, which translates into a $137.9 billion market cap.
Ethereum Price Reaches Record $420
Bitcoin’s resilience is even more impressive given that bitcoin cash was not the only top-tier cryptocurrency that threatened to funnel capital away from bitcoin to fuel its own surge. The ethereum price mounted a rally of its own, punching through the $400 level for the first time since June. The ethereum price ultimately rose as high as $425 — a new all-time high — and is currently trading just below that level, at $420.
|Ethereum Price Chart | Source: CoinMarketCap|
Ethereum now has a market cap of $40.3 billion, giving it a $12.4 billion edge on bitcoin cash.
Other Markets Take a Holiday
The remainder of the top 10 was surprisingly quiet on Friday, with four cryptocurrencies moving less than one percent and just one venturing past the two percent marker.
That asset was IOTA, whose price plummeted by 18 percent following an extended — if uneven — rally. The IOTA price is now $0.734, which translates into a market cap just above $2 billion and drops IOTA to ninth in the market cap rankings.
Posted by Josiah Wilmoth
Josiah is a former ancient and medieval literature teacher. He has been writing about cryptocurrency since 2014, and his work has been cited in Business Insider, NPR, and Yahoo! Finance. He lives in rural North Carolina with his wife and son. Email him directly at josiah.wilmoth(at)cryptocoinsnews.com.
November 23, 2017
By Rebecca Campbell - November 23, 2017 (www.cryptocoinsnews.com)
Max Keiser has said that bitcoin will increase to $100,000 from its current $8,000 value and believes that bitcoin cash is plagiarising it.
Host of Russia Today’s ‘Keiser Report,’ Keiser recently spoke to RT with the advice of sticking with the cryptocurrency as it will continue to dominate the market, pushing it forward.
"Hundreds of obituaries have been written about bitcoin and none of them have come true and none will. Fact is, bitcoin is a gift from God to help humanity sort out the mess it has made with its money".
The number one cryptocurrency has risen in recent months spurred on by the announcement that the CME Group are planning to launch a bitcoin futures contracts in mid-December, pending regulatory approval. Just yesterday, it was reported that bitcoin had risen to a new all-time high of $8,380, after recovering from the post-Tether hack market volatility.
Remaining confident as to where the digital currency is heading, Keiser believes that it will hit $100,000. However, even though the combined market value is increasing he believes most of the trading will remain within the top 20 alt-coins.
"Ninety percent of trading is in the top 20 coins, and that will continue. Coins will come and go. The composition of the top 20 will change less frequently".
While he states that trading within the top 20 coins is unlikely to change much in the future, he doesn’t have good things to say about bitcoin cash, the third ranked cryptocurrency. According to Keiser, the alt-coin is simply copying bitcoin, stating that:
"Bitcoin cash is an alt-coin that has its fans just like many alt-coins. I don’t think anyone who uses bitcoin’s name and applies it to an alt-coin like bitcoin cash does is adhering to acceptable business practices. In other words, bitcoin’s brand is being stolen by a competitor that calls itself bitcoin cash and this is outright fraud in my opinion, just like it’s fraudulent to use Coca-Cola and Nike’s name to sell soft drinks or shoes".
Created at the beginning of August, bitcoin cash has been marketed as the digital currency alternative to bitcoin and the answer to bitcoin’s current scaling issues. Despite a lack of support during its early days, with its price remaining below that of $1,000, recent weeks has seen it reach new all-time highs. Since last week, bitcoin cash has risen from $800 to $2,900 and is currently trading at $1,491, according to CoinMarketCap.
Yet, despite its fluctuating price, bitcoin cash proponents Roger Ver and Calvin Ayre have proclaimed that ‘bitcoin cash is bitcoin.’
Featured image from Shutterstock.
November 17, 2017
BY Bhushan Akolkar - November 17, 2017 (www.coinspeaker.com)
In a fresh new twist in the plans of SegWit2x hard fork, there is every possibility for the hard fork to go through in the near time.
The much-debated SegWit2x hard fork was being officially canceled last week after several community leaders and a large number of miners withdrew their support due to lack of consensus. As a result, the hard fork plans were completely halted which meant that Bitcoin will not be splitting into two, as projected earlier. However, just a few hours back, there has been the latest twist in this story as Director of Comms @ Coinbase, David Farmer took it to his Medium-blog that there are still a small group of miners who are attempting to go ahead with the hard fork.
Considering the possibility of network instability in such a case and in order to protect the customer’s funds, Coinbase is likely to suspend the buying/selling of Bitcoins 2 am Pacific Time on November 17th, an hour before the fork which is projected to occur between 6am to 8am Pacific Time on November 17th. Once the fork gets initiated and confirmed, all the normal operations will resume afterward. As per the latest information available on blockchain.info, the total number of blocks mined currently shows to 494743 and the SegWit2x is scheduled to take place at 494784 which is pretty close from the existing position.
Earlier this month, Bitcoin prices scaled to new highs above $7800 mark, but however soon after the announcement of the cancellation of SegWit2x, the prices corrected majorly for a week. Later, Bitcoin managed to regain its lost ground and currently, it trades convincingly close to and above $7800 in past 48 hours. Now, as per the most massive bitcoin exchange, Bitfinex, Bitcoin has crossed the $8000 to hit a new record high of $8040 and its latest price on the exchange shows to be $7837.55. Moreover, the word regarding the new twist in the plans of SegWit2x is yet to spread and we think and we think that there is every possibility we might see Bitcoin trading well above $8000 very soon.
In the meantime, just when the plans of cancellation of SegWit2x were announced, Bitcoins first derivate Bitcoin Cash was gaining the limelight as its prices rocketed to new highs above $1900 as a lot of miners shifted to the BCH blockchain. Bitcoin has recently been hard forked to a new software upgrade in its Difficulty Adjustment Levels (DAA). Many believe that it has created a level playing field for mining activities between the BTC and BCH blockchains.
As the SegWit2x is approaching closer, we believe that there can possibly be a new fresh upward momentum to be seen in the Bitcoin prices. The SegWit2x is expected to improvise a lot of things on the scalability issues of Bitcoins.
November 16, 2017
November 16, 2017 (www.forex-ratings.com)
The cryptocurrency market cap reached a new all-time high on Wednesday amid a generally-bullish day of trading. The bitcoin price set the tone for the rally, surging nearly $500 to recover past the $7,000 threshold for the first time since its weekend correction.
The total cryptocurrency market cap entered the day at $208 billion, and it climbed gradually throughout Tuesday evening. On Wednesday morning, the rally began to acquire steam, enabling the crypto market cap to leap to a new all-time high of $217.1 billion.
Bitcoin Price Pierces $7,000
The bitcoin price posted a 7% recovery on Wednesday, enabling it to climb nearly $500 in the past 24 hours alone. Since November 12, when the bitcoin price briefly crashed as low as $5,519, the flagship cryptocurrency has recovered by approximately $1,500, bringing it ever closer to the high-water mark it set last week shortly after the SegWit2x hard fork was called off. The bitcoin price is now trading at a global average of $7,004, which translates into a $116.8 billion market cap.
Several factors have contributed to this rally, most notably the fact that Man Group, one of the world’s largest hedge funds, stated yesterday that the launch of bitcoin futures contracts will convince it to make bitcoin part of its “investment universe”. However, traders are likely also bullish on the fact that mobile financial services application Square Cash is testing bitcoin integration and has already rolled the feature out to some users.
Ethereum Price Tests $340
The ethereum price continued its slow — but steady — advance on Wednesday, climbing another 3% to a present value of $338. Ethereum now has a market cap of $32.3 billion, bringing the second-largest cryptocurrency to its highest point since mid-October.
Bitcoin Cash Price Retreats
Bitcoin and bitcoin cash have taken inverse trajectories in recent days, and that phenomenon repeated itself — in direction if not degree — on Wednesday. While bitcoin and nearly every other major cryptocurrency experienced gains against the dollar, the bitcoin cash price declined 4%, reducing it to a current value of $1,289. Bitcoin cash has a market cap of $21.7 billion, making it approximately two-thirds the size of ethereum.
Market Swells at the Seams
Wednesday marked one of the most comprehensive crypto market advances in recent weeks, with 88 of the top 100 cryptocurrencies ending the day in positive territory.
The ripple price increased by 2%, while the litecoin price added 6% to rise to $65. The dash price recovered by 5% following Tuesday’s pullback and is now trading at $437. NEO’s 6% increase enabled it to broach the $30 barrier once again, and the monero price rose 1% to $124.
The competition for the last two spots in the market cap top 10 has been fascinating to watch this month, as no cryptocurrency has been able to cement its place in this echelon of the rankings. Today, IOTA burst into the ninth spot with a 19% increase, while NEM maintains the 10th position with a 3% gain. That makes ethereum classic, now ranked 11th, the odd token out.
November 13, 2017
By Joseph Young - November 13, 2017 (www.cryptocoinsnews.com)
Within a single weekend, from November 11 to 12, the bitcoin price plunged from $7,300 to $5,600, and recovered to $6,200, in less than 48 hours.
Beginning late Saturday evening, the bitcoin price began to fall from $7,300 to $6,900, as Bitcoin Cash started to record major gains. By Sunday morning, the price of Bitcoin Cash has surpassed $2,900, a new all-time high, while the price of bitcoin plummeted to $5,600.
As such, the rapid surge in the market valuation of Bitcoin Cash and abrupt plunge in the price of bitcoin led to serious market turbulence and uncertainty, as a relatively large portion of investors initiated a sell-off of bitcoin.
Daily Trading Volume Hits $22 Billion
The daily trading volume of the cryptocurrency market achieved $22 billion on Sunday, as the trading volumes of both bitcoin and Bitcoin Cash surpassed $10 billion. Since then, trading volumes have decreased.
According to reports, several major bitcoin investors including bitcoin angel investor Roger Ver sold billions of dollars in bitcoin and allocated the majority of those funds to Bitcoin Cash. As a previous CCN report explained, the sole beneficiary of the cancellation of the SegWit2x hard fork has been Bitcoin Cash, as supporters of SegWit2x migrated to Bitcoin Cash and unified their vision of scaling bitcoin’s on-chain capacity for short-term scaling.
Consequently, the demand for Bitcoin Cash increased in one major region that is South Korea, mostly through Bithumb, the world’s second largest cryptocurrency exchange by trading volume behind Bitfinex. Several cryptocurrency communities in South Korea heavily invested in Bitcoin Cash primarily due to the movement of miners from bitcoin to Bitcoin Cash.
However, traders were made aware that the migration of miners from bitcoin to Bitcoin Cash cannot be permanent, as miners moved when the Bitcoin Cash blockchain was more profitable to mine. Miners are extremely sensitive to profitability, primarily because mining requires a significant amount of resources, capital, and infrastructure.
Hence, in the near future, after a difficulty adjustment on both blockchains, it is likely that miners will move back to bitcoin if it becomes the more profitable blockchain to mine. Because of the tendency of miners to switch between more profitable blockchains, hash power is often not an accurate indicator to utilize to determinate the mid-term growth of a cryptocurrency.
In fact, as Ivie Business School professor JP Vergne wrote, developer activity is usually the most accurate indicator of a cryptocurrency’s price trend.
“We found that the best predictor of a cryptocurrency’s exchange rate is the amount of developer activity around it,” explained Vergne.
What Lies Ahead?
Given that the bitcoin price has stabilized in the $6,200 region and the tendency of bitcoin to rebound to its previous all-time highs, it is likely that the price of bitcoin will soon recover back to the $7,000 region, especially if institutional and retail investors attracted by CME Group and CBOE’s bitcoin futures exchange launch begin to engage in bitcoin trading.
Featured image from Shutterstock.
November 12, 2017
Bitcoin has edge over Bitcoin Cash in scaling - Adam Back, the inventor of HashCash who was cited in the original bitcoin whitepaper released by Satoshi Nakamoto
By Joseph Young - November 12, 2017 (www.newsbtc.com)
Adam Back, the inventor of HashCash who was cited in the original bitcoin whitepaper released by Satoshi Nakamoto, stated that bitcoin has an edge over Bitcoin Cash in terms of scaling, due to its infrastructure for second-layer payment channels.
“SegWit is a bug fix to enable massive scaling on layer 2 and lightning. Bitcoin Cash intentionally removed the bug fix, think about that carefully. Bitcoin will be fine, and scale further than Bitcoin Cash, because Bitcoin Cash lacks segwit and can’t do Lightning. this is short-term pump. just hold and wait,” said Back.
Importance of Second-Layer Scaling and Limit of Block Size Increase
As NewsBTC previously reported, there exists a certain limit to which block size increase can scale a blockchain network like bitcoin. Bitcoin and security expert Andreas Antonopoulos noted that if the block size of bitcoin gets increased at a rate that is directly proportional to the growth of its user base, inevitably, the blockchain network will become more centralized.
“If my block takes 11 minutes to validate, then i’m off the blockchain, which means fewer people can validate independently, which means the system becomes centralized. With which one of these increases, fewer people can participate in the validation process, fewer people can participate in storing the data, and fewer people can participate in being independent actors. We go from a system that is decentralized to a system that gradually gets more and more centralized,” said Antonopoulos.
Thus, while a block size increase can be viable as a short-term scaling solution, it is not by any indicator a long-term scaling solution.
In bitcoin, due to the lack of a centralized entity or network administrators, node operators and miners verify and confirm transactions independently. But, an aggressive increase in block size could restrict the ability of node operators to verify transactions, centralizing an important aspect of bitcoin in transaction settlement.
How Second-Layer Can Enable Lower Payments
In the long-term, second-layer has to be implemented in order to utilize bitcoin as both a robust store of value and a currency. Businesses must leverage the high level of security of bitcoin, and move small transactions with lower fees to second-layer payment channels like Lightning, which can allow bitcoin to actually scale to the capacity of mainstream financial settlement networks like Visa and Mastercard.
As Ethereum co-founder Vitalik Buterin emphasized, even blockchain networks like Ethereum that were designed to scale better than bitcoin by prioritizing flexibility, are nowhere close to centralized systems such as Visa, and it is not possible to achieve such capacity without altering the consensus protocol.
Back, who has been leading Blockstream, which has contributed to the development of second-layer infrastructure on top of bitcoin, heavily emphasized that while transactions on the Bitcoin Cash network are cheaper at the moment, in the long-term, bitcoin has an edge because it has SegWit that enables the infrastructure necessary for second-layer scaling solutions to operate.
Joseph is a web developer and designer, writer and a passionate musician who loves to travel often. He's worked as a researcher for a number of venture capital firms and as a freelancer designer for resorts and corporations in Korea and the Philippines. Joseph will be covering new technologies, startups, technical analysis and breaking news in the bitcoin industry.
By Joseph Young - November 12, 2017 (www.newsbtc.com)
The Bitcoin Cash price has dropped from $2,800 to $1,300 in a matter of hours, as the price of bitcoin rebounded from $5,500 to $6,400.
Many bitcoin experts including former Coinbase executive and Litecoin creator Charlie Lee stated that in the long-term, it is less likely that Bitcoin Cash would be able to compete with bitcoin due to its lack of infrastructure and developer activity.
“The BCH pump in the past few days is super impressive. I should have kept my BCH. I still don’t think BCH can compete with BTC long term, but markets can stay irrational for a long time. I’m glad there’s a blockchain for big blockers though. Hopefully, resulting in less drama.”
He further emphasized that there exists a clear gap between the development teams of bitcoin and Bitcoin Cash, which could play as a major role in the long-term growth of the two cryptocurrencies.
“Without decentralization, you lose censorship resistance. Censorship resistance is what gives Bitcoin value. Without that, it’s just PayPal 2.0, which is not revolutionary. BCH also has a very weak dev team when compared to Bitcoin Core. It’s like high school team against pros,” Lee added.
Since Bitcoin Cash has fallen from $2,800 to $1,300, the global cryptocurrency exchange market has stabilized to a certain extent, with Ethereum retaining its spot as the second largest cryptocurrency behind bitcoin. While the trading volume is still exceedingly high at over $26 billion, given the major correction of Bitcoin Cash in such a short period, it seems as if the current trend of bitcoin leading the market and Ethereum being the distant second will continue in the mid-term.
With Bitcoin Cash being marketed and used as a currency, mainstream adoption will be key for the long-term growth of Bitcoin Cash in terms of market valuation and user base. Bitcoin Cash will require businesses to adopt it as a payment method, as many leading Japanese conglomerates have done for bitcoin, and large-scale businesses within the cryptocurrency sector to build infrastructure around it.
If SegWit2x supporting businesses have moved on from their plan of increasing the bitcoin block size to 2MB to Bitcoin Cash, in the upcoming months, many existing bitcoin businesses will likely provide support for Bitcoin Cash, which include wallet services, exchanges, and brokerages.
However, if existing bitcoin companies do not move towards adopting and integrating Bitcoin Cash, it will significantly limit the potential of Bitcoin Cash.
Earlier today, prominent bitcoin and security expert Andreas Antonopoulos encouraged the bitcoin community to focus on the development and the growth of bitcoin, rather than discouraging the Bitcoin Cash market and its industry, as there is space for the two cryptocurrencies to co-exist.
In the long run, Bitcoin Cash will serve a different market to bitcoin, while bitcoin continues to evolve into an established robust store of value, with strong infrastructure to process payments with lower fees.
Disclaimer: The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. It should not be regarded as investment/trading advice. All the information is believed to come from reliable sources. NewsBTC does not warrant the accuracy, correctness, or completeness of information in its analysis and therefore will not be liable for any loss incurred.
Joseph is a web developer and designer, writer and a passionate musician who loves to travel often. He's worked as a researcher for a number of venture capital firms and as a freelancer designer for resorts and corporations in Korea and the Philippines. Joseph will be covering new technologies, startups, technical analysis and breaking news in the bitcoin industry.
November 10, 2017
JP Buntinx - November 10, 2017 (themerkle.com)
It is safe to assume the Bitcoin Cash price is being heavily manipulated right now. While this doesn’t mean the altcoin is overvalued per se, there are some interesting things happening in the trading department. With a current Bitcoin Cash price of over US$800, someone is clearly trying to push up the value of this altcoin. The latest pump comes on the heels of a previous one which ended not too long ago.
BITCOIN CASH PRICE PUMP CONTINUES
Last week, we saw some major gains for Bitcoin Cash appear out of the blue. There was no real reason for a steep Bitcoin Cash price increase, and there isn’t one today either. Regardless of the sentiment, the price is effectively moving up and doing so at a very quick pace. The people who bought BCH at US$350 two weeks ago will be very happy with their investment, as they’ve more than doubled their money by continuing to hold it today.
Although it remains to be seen if a lot of people resisted the temptation to sell at US$600 last week, the current momentum is pretty spectacular. With the Bitcoin Cash price rising by another 31% out of the blue, this altcoin seems underway to reach a new all-time high. This is all happening while the Bitcoin price is massively struggling for traction, especially now that the SegWit2x hard fork news has caused so much confusion.
It is possible this new Bitcoin Cash price pump is a direct result of the shenanigans involving SegWit2x. People tend to forget that a lot of SegWit2x backers are also the ones advocating Bitcoin Cash the hardest right now. For all intents and purposes, we may be witnessing one of the biggest “politically-oriented coins” in Bitcoin history right now. It is evident the Bitcoin network has some scaling issues to overcome, whereas Bitcoin Cash solved this problem by upping the block size to 8MB directly.
With over US$2.14 billion in 24-hour trading volume, things are looking pretty good for Bitcoin Cash right now. This trading volume is not too far behind Bitcoin’s, which is pretty impressive in its own regard. It is also well ahead of any other alternative cryptocurrency currently in the top 10. The bigger question is how much of this volume represents genuine interest in BCH rather than speculation. That number is probably a lot lower than what some people may proclaim it to be.
As is pretty much always the case, Bithumb has taken care of almost half of all BCH trades over the past 24 hours. Bitfinex and Coinone round out the top three, although Korbit and HitBTC are not too far behind. It is evident South Korea has solidified its position as a global cryptocurrency trading powerhouse these past few weeks. Bithumb especially is generating a lot more volume than most Chinese exchanges were ever capable of.
In the end, the lingering question is whether or not the Bitcoin Cash price momentum can be sustained for a long period of time. We have now seen two extended pumps in quick succession, which further confirms there is nothing natural about this growth whatsoever. There are still a lot of holders who never sold their coins since day one. Once these people start unloading BCH, things will get very interesting, to say the least. It is a great altcoin for some quick profits, though; that much is certain.
JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.
By Rhett Creighton - November 10, 2017 (cointelegraph.com)
Expert Blog is Cointelegraph’s new series of articles by crypto industry leaders. It covers everything from Blockchain technology and cryptocurrencies to ICO regulation and investment analysis. If you want to become our guest author and get published on Cointelegraph, please send us an email at email@example.com.
Calling off 2MB blocks marks the end of a 3-year effort between different political groups inside Bitcoin trying to come to a compromise. Core developers may feel like they have won the battle, but a silent majority will leave quietly, selling their coins and driving down price over time.
At the same time, it marks the beginning of a new age in human history. One where individuals have a freedom of choice, and a freedom of exit.
”New York Agreement” called off
I was fully expecting Nov 16th to be an apocalypse for Bitcoin. Over 80% of miners were signaling support for 2MB blocks, and several hundred of the largest Bitcoin exchanges and companies had signed an agreement to support the block size increase. Despite businesses planning for 2MB blocks, much of the Bitcoin user community and core development team was prepared to reject the software change, which would split the Bitcoin network in a most disruptive way.
The split would have been a disaster for Bitcoin. However, the price of Bitcoin has been reaching new all-time-highs because uninformed investors have been conditioned to think that a fork in Bitcoin means that you get free coins. That was the case with Bitcoin Cash, but the chain split planned for Nov 16th would have been very different.
Under the SegWit2x split scenario, I don’t think it would have been possible for anyone to agree which was the “real” Bitcoin chain anymore. Large companies like Coinbase had agreed to support both chains. The 2MB chain planned to launch with no replay protection for users, which would have caused massive confusion and loss of funds. As the first clean fork of Bitcoin, with a clear plan and goal of being business-friendly, I expected Bitcoin Cash to be a big winner. The price of Bitcoin Cash has gone up nearly 100% in the past two weeks with many investors speculating on a “Cashening.”
Bitcoin will lose market share
“When a party starts to suck, you leave. You can try to fix it, but the cleanest solution is to just get out… A lot of Blockchain is increasing the freedom for individuals, and part of that is having the flexibility to leave, and to make the choices that you want to, at any point in time.”
Two large factions of the Bitcoin ecosystem reached an impasse. For individuals and corporations who no longer find the transaction fees and scalability acceptable in Bitcoin, the simplest solution is to leave. Those individuals will dump their $7,500 (down to $6,600 at press time) Bitcoin on first time buyers as they slowly get out.
“Dumb Money” pouring into Bitcoin
People are exuberant about the price of Bitcoin increasing to nearly 7x the price it was at the beginning of the year. Real-life meetups are full of new faces and first-time investors. The Bitcoin subreddit is full of people cheering each other on about buying their first 0.1 BTC and expecting a 10x annual ROI.
One of the bullish pieces of news driving the mania is that the CME Group plans to add Bitcoin futures this year, potentially making Bitcoin available to billions of dollars worth of new investors. However, Wall Street hedge fund investors are not suckers. Even if a hedge fund wants to buy into Bitcoin, they might try to short it first to drive the price down and shake out weak holders. If they can cause a few billion in losses from the people who bought the top by shorting it all the way down to $3000 (where it was a few months ago), they will.
Blockchains: New kind of entity
Blockchains are a new kind of entity, much in the same way that corporations with shareholders were a new kind of entity invented 400 years ago. Today, corporations are able to lobby Congress and have many of the same rights as humans. We will see Blockchains also gain access to these rights in the near future.
I fully expect the market cap of all crypto tokens to increase exponentially over the next few years, but this is not a winner-take-all scenario. Today, mainstream media financial advisors are touting Bitcoin as “the new gold,” but it can’t ever be that. To get a sense of how it’s different, imagine a universe where anyone could create a new kind of metal with essentially the same properties of gold.
Expecting Bitcoin to have the majority market share of Blockchains in the future is about as ridiculous as expecting the East India Company to be more valuable than all other corporations combined today.
Demand for Bitcoin and rise of crypto-ruble
Through much of 2014–2015, the price of Bitcoin declined. However, in 2016–2017, we started to see some larger demand for Bitcoin driven by ransomware, Ponzi schemes like “MMM,” Chinese citizens evading capital controls, and a means of transferring value into other Blockchain tokens (“ICOs”).
Russia has recently announced that they are looking into developing their own “crypto-ruble.” The crypto-ruble will feature a 13% tax into and out of paper fiat if the redeemer is unable to provide documentation of the transaction history.
Because Russia will be much more centralized and efficient than Bitcoin at processing transactions, I expect the crypto-ruble to be an attractive alternative to Bitcoin for ransomware, people escaping hyper-inflation, and Chinese citizens circumventing capital controls (especially in the event of a Bitcoin bear market).
The Chinese government shut down the BTCC exchange last month with rumors that they may pursue a crypto-yuan as well. It’s clear that some very big players are ready to enter this market, and they aren’t interested in sharing their money with Mr. Nakamoto.
Disclaimer: The views and interpretations in this article are those of the author and do not necessarily represent the views of Cointelegraph.
helped create the Zclassic and Zen forks of Zcash (Over $50M market cap) and more recently, Whalecoin. He contributed to the Bitcoin Core test suite and is an MIT alum.
By Kai Sedgwick - November 10, 2017 (news.bitcoin.com)
Bitcoin cash is enjoying a new lease of life as major figures throw their weight behind the chain. In the wake of the abortive Segwit split, neither bitcoin nor B2x has prospered, with the latter failing to materialize and the former dropping below $6,800 for the first time in 10 days. BCH, meanwhile, hit $866 earlier today.
All Aboard The BCH Express
As the elation, anger, and acrimony over Segwit2x has started to settle, focus has returned to the seemingly intractable problems of bitcoin scaling and transaction fees. Given the difficulty of attaining consensus for developments of the bitcoin network, many have grown frustrated by the stalemate, with widespread Segwit adoption and Lightning Network implementation still months or years away.
With bitcoin currently unsuitable for small transactions due to high fees, various businesses and public figures have expressed their preference for a cryptocurrency more suited to everyday use. For some, this has meant looking to the world of altcoins, where the likes of Litecoin and Dash beckon. For those keen to stick with the bitcoin brand, however, bitcoin cash looks increasingly attractive.
One member of the Openbazaar team tweeted:
"Hearing lots of great things about @BitcoinCash $BCH today. Many developers and businesses seem better aligned with the vision now that 2x has failed".
The team running the P2P marketplace have every reason to be extolling the virtues of bitcoin cash, having announced that they’ll be accepting BCH on account of its cheaper fees along with zcash. As businesses have wrestled over what to do with a legacy bitcoin that’s becoming increasingly un-transactable, the BCH team have wasted no time in wooing defectors, stating:
"BTC’s utility continues to decline. Watch as businesses adopt BCH".
One public figure who has thrown his weight behind BCH is Pirate Party founder and bitcoin maverick Rick Falkvinge, who declared: “With recent developments, I’m putting all available dev resources to retool my software for #Bitcoin Cash. I suspect I’m far from alone.” He later added: “I’m moving my development effort to Bitcoin Cash, as Bitcoin Legacy now has hit a brick wall and needs to be dropped like a bad habit. I have no real reason to move the coins.”
One Coin to Rule Them All
The Bitcoin Cash market has surged over the last 24 hours, with volume exceeding $2.5 billion, 57% of which was trading against the Korean won. Much of the fevered interest in BCH will simply have been market sentiment, fueled by the growing consensus that the legacy bitcoin chain is ill-equipped to handle growing volume. It would be speculative at this stage to suggest that BCH is gearing up for its own version of The Flippening, when Ethereum believers thought their coin might actually overtake bitcoin to become The One True Coin.
Make no mistake though, if BCH’s most ardent supporters have their way, not only will bitcoin cash steal bitcoin’s market cap eventually but it will also steal its name. In the wake of the Segwit2x furore, there were hopes that the in-fighting which had driven a wedge into the bitcoin community would cease and work could resume on infrastructure improvements. Instead, the BTC/BCH debate has been ramped up, with supporters of both chains adamant that theirs is the best bitcoin.
Bitcoin legacy’s decentralized nature is both its greatest strength and its greatest weakness. The BCH team is wasting no time in rolling out network upgrades and implementing a clear roadmap. More than 1,500 businesses are already accepting bitcoin cash, a modest figure but one that is rising steadily.
Images courtesy of Shutterstock, Coincodex.com and Bitcoin Cash.
Kai "Segwit" has been assembling words for a living since 2009 and fascinated with Bitcoin since 2013. He's previously written white papers for blockchain companies and is particularly interested in P2P exchanges and DNMs.
October 29, 2017
By Rakesh Upadhyay - October 29, 2017 (cointelegraph.com)
The number of hedge funds which exclusively trade digital currencies has grown to 120, with about $2.3 bln in total assets under management, according to the financial research firm Autonomous Next.
While it sounds like a large number, it pales in comparison to the $3.15 tln managed by the hedge fund industry in the third quarter.
Cryptocurrencies have attracted only a small number of institutional investors because most still remain skeptical. The latest criticism comes from legendary investor Warren Buffet, who has said that Bitcoin is in bubble territory.
Well, a correction after such a stupendous rally is certainly possible. Therefore, we always recommend a stop loss to our readers. Even if the digital currencies correct sharply, our losses will be limited and our capital will be preserved. We can again reinvest at lower levels.
We had recommended long positions in Bitcoin in our previous analysis, with our target objective being $6000. On Oct. 27, the digital currency hit a high of $5986, where hopefully traders would have booked partial profits as suggested. Where is Bitcoin headed next?
Bitcoin is currently correcting towards the trendline support at $5600. Just below this support is the 20-day exponential moving average (EMA) at $5513. We expect buying to emerge at these levels, however, we are not certain that this level will hold this time.
Our stops at $5650 have been hit. We would like to sit back and wait, because if the support zone of $5513 to $5600 breaks, the digital currency will slide to $4975 levels.
On the other hand, if the support zone holds then Bitcoin is likely to remain range-bound between $5600 to $6000. However, the next buy on the virtual currency will only be triggered if it breaks out to new highs and crosses the resistance line of the ascending channel.
Presently, we don’t find any buy setups, therefore, we don’t not recommend any fresh trade on Bitcoin.
We don’t have any existing positions or recommendations on Ethereum. The bulls and the bears are taking a break after the hugely volatile day on Oct. 22.
Ethereum has a slew of resistances from $300 to $315 levels. Therefore we recommend a long position only on a breakout, and close above $315 with a close stop loss. The first target is $353.
On the downside, it has support from the trendline at $280, below which it is likely to fall to $272 and thereafter to $252 levels.
At current levels we don’t find any buy setups on Ethereum, hence we do not suggest to trade on it.
We had observed some buying in Bitcoin Cash but we did not recommend any trade because the risk to reward ratio was not favorable. Do we see a trade on it now?
The cryptocurrency is currently returning from the upper end of the range at $400. The 50-day simple moving average is also at $398. Therefore, we expect a stiff resistance at $400 levels.
However, if the digital currency breaks out of this overhead resistance, it has a pattern target of $518.
Hence, we can buy on a breakout and close above $400. We shall limit our risk by keeping a stop loss of $350. We don’t want to hang on to the trade if it falls back into the range.
However, if Bitcoin Cash fails to breakout and close above $400, it is likely to remain range bound for a few more days.
Both the buyers and the sellers seem to have deserted the digital currency in the past three days, as a result of which, the volatility has shrunk. However, this period of low volatility is unlikely to sustain for a long time. We should soon see an expansion in volatility.
If Ripple breaks out of the moving averages, it should attempt a pullback to at least $0.23955 levels, which is the 50 percent Fibonacci retracement of the fall from $0.29699 to $0.18211. If the virtual currency breaks out of this level, then a rally to $0.25311 and $0.27241 is also possible.
Therefore, we recommend a long position at $0.22 with a stop loss of $0.19650. As this is a risky trade, we suggest using only about 30 percent of the usual allocation.
However, if the cryptocurrency fails to breakout on the upside, it can drift down to $1.8211 levels.
Litecoin has not been able to breakout of the range of $44 to $57.7. Therefore, our buy levels were not triggered.
The 50-day SMA is situated at $55.59, while the 20-day EMA is at $56.57. Just above the moving averages is the upper end of the range at $57.729. If the digital currency breaks out of all these resistances, chances are that it will start a new uptrend.
Therefore, we retain our buy recommendation provided in our previous analysis. Please buy on a breakout and close above $57.7. The stop loss is $51, whereas the target objective is $71.
If Litecoin fails to breakout of the overhead resistance, it will fall back towards the $52 levels.
October 28, 2017
By Patrick Thompson - October 28, 2017 (cointelegraph.com)
Prior to the Bitcoin Gold fork two days ago, the market made some interesting moves.
Bitcoin price reached a new all time high on Oct. 20, 2017 - five days before the Bitcoin Gold fork -surpassing $6,000 for the first time and eventually climbing to nearly $6,200.
Those of you who have endured past chain splits are aware of what usually happens when there’s a split from the Bitcoin network. Ordinarily, the community complains, reddit.com, medium.com, and twitter.com become platforms for soapbox speeches, and a lot of trash is talked by factions within the community.
However, have you noticed the other events that are correlated with a chain split? Once a chain splits, you suddenly own a number of split tokens equivalent to the number of tokens you had on the Bitcoin network. This is because the new chain will be an exact copy of the Bitcoin Blockchain up until the point where the fork occurs.
If the wallet you use supports the forked chain’s software, you will be the owner of two digital tokens: Bitcoin and the Forked Chain Token. In our example we will use Bitcoin Cash (BCH) as the forked token. When the Bitcoin Cash chain forked off of the main chain, owners of Bitcoin became owners of an equivalent amount of Bitcoin Cash. This is because the chains were identical until the fork occurred. If you owned 10 BTC before the split, then you owned 10 BTC and 10 BCH after the split.
This is where the slope becomes slippery. People or organizations with unfathomable amounts of money can use forks as an opportunity to extort both the Bitcoin network and the forked network for enticing capital gains when a fork occurs.
Preparing for the fork
Let's say Randy owns 35,000 Bitcoins; at a value of $5,000 per Bitcoin, Randy’s digital assets are worth $175,000,000. Just like anybody with large amounts of money invested in a market, Randy pays attention to news that may affect his position (wealth) in that market. Randy learns that there will be a hardfork in the Bitcoin network and that the hardfork will create a new token, Bitcoin Cash (BCH).
On top of this, Randy learns that his Bitcoin wallet provider will support the forked software, so he knows that he will own Bitcoin Cash as well as Bitcoin once the fork occurs. Now, Randy expects to have 35,000 Bitcoin Cash tokens in addition to his 35,000 BTC after the fork. If Randy was to increase his position by millions of USD worth of Bitcoin, he would be the owner of more Bitcoin than he previously owned.
However, he would also create a buy wall that drives the Bitcoin price up since he is such a large player in the Bitcoin market. When Randy increases the amount of Bitcoin he owns, he also increases the amount of Bitcoin Cash he will own once the fork occurs.
Because Randy is an educated investor, Randy decides to increase his position in Bitcoin so that he owns 50,000 Bitcoin the day before the fork. Randy did this because he would like to own even more Bitcoin Cash than the 35,000 he would have had if he did not increase his position in Bitcoin. Now when the fork occurs, Randy expects to have 50,000 BCH in addition to his 50,000 BTC.
What happens when a chain forks
When the Bitcoin Network forks, some of the value that was in the Bitcoin network splits into the forked chain. When Bitcoin Cash forked from the Bitcoin network, the value of Bitcoin went from $2800 to $2700 (July 23,2017).
As a result of the fork, Bitcoin Cash was created and was valued around $555 at the time of it’s launch. (July 23, 2017).
Now what does that mean for Randy?
When Bitcoin dropped from $2,800 to $2,700, Randy's digital assets (wealth in Bitcoin) dropped from $140,000,000 to $135,000,000, a $5 mln loss. However, because of the fork, Randy now has 50,000 BCH worth $555 a piece. Because Randy is an educated investor and has no plans to use the Bitcoin Cash (BCH), he immediately sells his BCH for a profit the moment the option to sell BCH becomes available to him on his preferred exchange.
Randy sells all 50,000 of his BCH for a profit of $27,750,000. A nice $28 mln gain (rounded number) to make up for the $5 mln loss that he suffered due to the decline in the price of Bitcoin. At the end of the day, Randy profits around $23,000,000 from the chain split.
Keep in mind, there are other investors like Randy who are highly educated and extremely skilled at what they do. Furthermore, they may be executing a similar or even more efficient strategy as Randy regarding the hardfork; buy a lot of Bitcoin, anticipate a chain split where you are left with a number of new altcoins equivalent to the number of Bitcoin you own, quickly sell off the altcoin for a profit and then decrease your position in Bitcoin because it is overvalued.
Individuals like Randy are referred to as whales: individuals who hold positions so large in the Bitcoin market, that their bid and ask orders are capable of shaking up the market. Since it only takes a few big players using a similar strategy to drive the value of Bitcoin up or down, when an opportunity like this presents itself (a hardfork), the price of Bitcoin may not reflect the true value of Bitcoin.
Since educated investors know that the Bitcoin price may be artificially high due to big players like themselves implementing a hardfork strategy, the big investor(s) have an incentive to lower their position in Bitcoin once they have executed their hard-fork gameplan. This is because they expect the Bitcoin price to correct to a value that is closer to its true value once all the hard-fork affiliated nonsense subsides.
Because there are multiple people like Randy who have a relatively large position in the Bitcoin market, when these people decrease their position in Bitcoin to an amount that they are comfortable owning during a bear period (and that number may be zero) their collective ask offers are capable of creating a sell-wall that drives down the price of Bitcoin.
After the big sell off of both the altcoin - because investors find it virtually worthless for them to hold for the long term - and Bitcoin - because investors know the price is artificially high for the short term due to their market strategy - investors capitalize on the low price of Bitcoin from the massive sell-wall and they buy back the Bitcoin that they previously unloaded.
On top of the profit investors make from selling-off all of their altcoin, investors will experience capital gains from selling their Bitcoin at an artificially high price and then purchasing Bitcoin back once the price is lower. During the period where investors buy back Bitcoin, we tend to see the price stabilize for a short period of time.
Boom and bust
Investors may have stockpiled Bitcoin anticipating an equal amount of altcoin and then sold off a significant amount of both Bitcoin and altcoin - in our example Bitcoin Cash - to reap the massive capital gains available to them.
I can’t rule out the possibility that several other market factors had an effect on the Bitcoin price surge and subsequent plummet, but that being said, how plausible do you think it is that the whales set off the surge and fall of Bitcoin?