According to local news outlet Joongnag Daily, a blockchain company based in Korea believes that it has found what it takes to revolutionize blockchain technology and bring even quicker pace to the way that transactions are being carried out.

SymVerse, a blockchain firm that was established earlier this year, hosted an event and held a demonstration on Wednesday, November 28, 2018.

Choi Soo-hyuk, CEO of SymVerse, calls the company’s platform “the ideal network to operate decentralized applications. Our network is an all-in-one platform characterized by a multi-blockchain structure, which facilitates higher speeds and functions.”

Based on the report, the company’s blockchain platform can facilitate transactions at a much quicker pace, as its implementation doesn’t require smart contacts. The snail speed at which blockchain processes transactions has been seen as one of the major obstacles to its widespread adoption.

However, SymVerse, with its quick and effective version of the blockchain technology, is looking to bring complete revolution to the technology, thereby helping to bolster its effectiveness and appeal.

The platform would also feature a unique identification system which users can use to set new accounts using a unique identification system, known as the ‘SymID,’ thereby making it possible to create seamless transfers of balances between various accounts.

The SymVerse network has already seen signups from about 30 companies that will like to launch their applications on the network. Some notable prospective partners include Hancon Secure, an IT firm that has strong ties with the leading office suite developer in Korea, and Chainflix, a peer-to-peer video sharing platform that provides an opportunity for viewers and video creators to mine and earn crypto tokens.

Some foreign investors in the company also sent videos to congratulate SymVerse on this milestone. The company has employed the services of Thomas Sargent, a co-recipient of the 2011 Nobel Prize in Economics, who will come on an advisor to the project.

A spokesman for the company claimed that “SymVerse is the only blockchain company in the world with a Nobel Prize laureate serving as an advisor. All our advisors are very active in providing us with their input on developing our network.” SymVerse was established back in May, and the company published their whitepaper early this month. It is expected that operations are to begin in the first quarter of 2019.

This post credited to ccn Featured image from Shutterstock.

Members of VanEck, SolidX and the Cboe BZX Exchange met with U.S. Securities and Exchange Commission (SEC) staff earlier this week to present a new argument on why the bitcoin market is ready for an exchange-traded fund (ETF).

In the latest push to convince the regulator to approve a rule change which would open the door for the country’s first bitcoin ETF, the three firms met with the SEC’s Division of Corporation Finance, Division of Trading and Markets, Division of Economic and Risk Analysis and Office of General Counsel.

Notably, Monday’s effort differed from previous presentations, which took more of a regulatory focus.

Instead, the proponents’ argument centered around the idea that the bitcoin market is mature enough to support an ETF, and at present looks similar to markets for other assets which already have such products. The presentation gave several examples of assets that already have ETFs, including crude oil, silver and gold.

The presentation specifically tied the idea of futures markets with spot markets, noting that for money substitutes such as gold and silver, this connection between the two can be proven with empirical evidence. Further, this type of price co-integration “is evidence of a well-functioning capital market.”

The firms went on to explain that “Similar to commodity futures, the spot and futures prices [of bitcoin] are tightly linked,” again providing “evidence of a well-functioning capital market.”

On another note, they argued that the bitcoin ecosystem is “less susceptible to manipulation” than other commodities which already support exchange-traded products.

For example, insiders might possess or trade information related to the supply of physical commodities – say, if a new source for an asset is discovered, or if some event lowers the production – and this may impact price.

Bitcoin does not face this sort of issue, the presentation notes, adding:

“The linkage between the bitcoin markets and the presence of arbitrageurs in those markets means that the manipulation of the price of bitcoin on any single venue would require manipulation of the global bitcoin price in order to be effective … Bitcoin therefore is no more susceptible to manipulation than other commodities, especially as compared to other approved ETP reference assets.”

Any attempt to manipulate bitcoin’s price “would require overcoming the liquidity supply of such arbitrageurs who are effectively eliminating any cross-market pricing differences,” especially as these arbitrageurs are likely to have their funds stored on different exchanges to take advantage of price differences.

The applicants’ pitch came a day before SEC chairman Jay Clayton said concerns about market manipulation are one of the barriers preventing an ETF approval.

Speaking at CoinDesk’s Consensus: Invest conference a day after the presentation, Clayton explained that “the prices retail investors are seeing are the prices they should rely on, and free from manipulation.”

Outside the market itself, the ETF’s proponents highlighted Cboe’s matching engine and VanEck’s MVIS Bitcoin OTC Index as further benefits on Monday.

In particular, MVIS’ other indices are designed specifically for use with an ETP. The VanEck subsidiary already offers 88 indices on different asset classes, passively managing some $15 billion-worth. The company is also in compliance with the EU’s benchmark regulation, they added.

This post credited to coindesk Image via Shutterstock

Student loans, credit card debt, mortgage, corporate loans, and all kinds of debt are placing huge pressure on the U.S. stock market. Over the long-term, Mark Yusko believes emerging markets and Bitcoin are viable long-term bets for investors.

On CNBC’s Fast Money, Morgan Creek Capital Management CEO and chief investment officer Mark Yusko expressed his concerns towards the “melting” stock market of the U.S. and warned the state of the market in which corporations are stacking up debt which they can no longer afford.

As various types of debt continue to spike to an all-time high, Yusko explained that the pressure on the U.S. economy will lead the credit bubble to explode, severely hurting the market.

Last week, the Securities Industry and Financial Markets Association reported that the corporate debt of the U.S. reached $9 trillion, doubling the debt within two years.

Yusko said:

“I think this year, will continue to melt slowly like a melting ice cube. I think next year, with the economic slow down it gets worse, probably double digit drops and the big year is 2020, when the credit bubble starts to blow up. Every company has binged on cheap debt, they have over-levered, there’s 14% of companies of S&P can’t service their debt with the next three years of ebitda.

Is Bitcoin a Good Bet?

In the long-term, the Morgan Creek CEO asserted that Bitcoin is a good asset to have in a portfolio because as a decentralized network, the performance of the asset does not depend on broader financial markets.

Over the past eleven months, due to the unforeseen impact of the futures market on the price trend of Bitcoin amongst many other possible catalysts, the asset class has suffered an 80 percent drop from its all-time high valuation at around $800 billion.

Still, Yusko emphasized that he is a “big bull” in the long run and in the years to come, the dominant cryptocurrency will likely achieve more usage, awareness, and adoption, eventually recovering in value.

He stated:

“Bitcoin, love it long-term. I was wrong, completely wrong, on the impact of futures on the Bitcoin price. I thought, because they were cash settled, you couldn’t get rehypothecation and put artificial price pressure. I was wrong. You’re seeing rehypothecation. You see on those expiration right before the futures expire, lots of pressure on those down days. But, as we get more usage moving forward and people buy into this idea that it is a store of value, increasing use cases, we’re trading $4.5 billion worth of Bitcoin every day, versus 5 years ago, sub couple hundred million. So huge increase in usage, long-term I’m a big bull.”

Bitcoin remains down nearly 80 percent down from its all-time high at $19,500. In consideration of the magnitude of the recent sell-off, investors that enter the Bitcoin market now will probably see gains relatively quick in the foreseeable future, Yusko said.

20-Fold Returns

In the next 10 years, as was the case with the Internet sector subsequent to the dot-com bubble, Yusko added that a 10 to 20-fold return on investment is possible.

“Over a decade, I think you can make 20 times plus your money. I really do. I think it is one of those few asset classes where you have asymmetric return profile. I think over a one year period, it’s tough to tell.”

This post credited to ccn Featured image from Shutterstock.

In a recent controversy brought to light by Amber AI, Hong Kong-based cryptocurrency exchange OKEx has been allegedly engaging in “market manipulation and fraud,” impacting $400 million in trades. Investors are unable to seek help from the courts due to regulatory exclusions.

An Achilles Heel for Investors

Despite Hong Kong having been among the first hubs to publicly endorse both blockchain and fintech, cryptocurrencies have remained a thorn in the side of Beijing’s financial regulators. At the moment, there is very little incentive to impose an outright ban on crypto trading or exchange in the city, unlike in Mainland China. That said, the Securities and Futures Commission (SFC) in Hong Kong has not worked to make the atmosphere towards crypto more favorable, either.

Why Major Crypto Exchange OKEx Controversially Used User Funds to Liquidate Bitcoin Contract
Related: Why Major Crypto Exchange OKEx Controversially Used User Funds to Liquidate Bitcoin Contract

 

 

 

 

 

 

Back in October 2018, the SFC proposed a “sandbox” approach for crypto exchanges. According to the South China Morning Post, the proposal introduced Nov. 1, enabled exchanges to apply for licensure in Hong Kong.

While the move was widely regarded as a step forward for the industry in China (and the industry overall), many failed to notice a key point in the announcement: The new approach would not accept platform operators trading digital assets, such as futures, derivatives, and other contracts.

These exceptions stripped investors of the ability to seek the SFC’s help in the case of fraud or manipulation, leaving investors vulnerable.

Investors Left Without Recourse

On Nov. 26, the South China Morning Post said that the Seychelles-registered exchange was under fire last week after three of its future settlements for Bitcoin Cash were delivered earlier than scheduled. These contracts affected trades worth more than $400 million.

Several investors endured heavy losses as a result, turning to the law in hopes of a fair inquiry into the incident. The solicitations to the courts received no responses, with judges pointing to the recent dictum of the exclusion of derivatives and futures.

It seems that in cases of derivatives and futures, fund managers and traders need to carefully weigh their options and assess the risks themselves, as any remuneration from the courts seems unlikely.

Potential Fraud

In more troubling news, Amber AI, an algorithmic trading firm, claims that these trades were not simply a mistake.

In a Medium post, the firm claims that OKEx was trading against its clients’ positions in the futures markets and profiting at their expense. Amber AI claims that the incident borders on fraud.

The exchange denied all such claims in a detailed blog post.

This is not the first time OKEx has caused losses for its customers. Back in July of 2018, the exchange took a portion of the gains from all of its traders in a clawback mechanism used to plug clients’ margin call losses.

The exchange endured the significant backlash from the community, even though it may have been within their contractual rights to cause these losses.

In all, OKEx has been in the news for the wrong reasons. However, without the pressure of a regulatory agency, there is little customers can do to dispute losses caused by OKEx. In this regulatory environment, the best traders can do is remain vigilant and avoid these unregulated securities, and if these practices continue, vote with their dollars and trade somewhere else.

This post credited to cryptoslate  Image source: Cryptoslate

Crypto industry investor Anthony Pompliano says Bitcoin (BTC) will likely fall to 85 percent below its all-time-highs – around $3,000. Pompliano gave his forecast during an interview on CNBC’s Squawk Box Nov. 26.

The partner at crypto investment firm Morgan Creek Digital Assets argued that while “Bitcoin was overvalued in Dec. 2017” – with selling pressure this year subsequently driving its price downwards – there are several important factors related to the asset’s long-term value that are important to remember:

“First, [Bitcoin] is the most secure transaction settlement layer in the world, so it’s got to be worth something […] it’s the best performing asset class over the past ten years – it’s outperformed S&P, DOW, NASDAQ, etc. during the longest bull run. It experienced two 85 percent drops during that time, but [it’s] still up over 400 percent in the last two years.”

Third, he added, all of Bitcoin’s price action in past years has been driven by retail investors – ahead of any meaningful involvement from major institutional players such as those now poised to enter the crypto space next year. Big players include Fidelity and New York Stock Exchange (NYSEoperator Intercontinental Exchange (ICE).

Pompliano argued that the recent “wash-out” on the crypto markets is a barometer of retail investor patterns; throughout its retail-driven history in 2017, the cryptocurrency traded as a “highly volatile speculative asset.” By contrast, he continued, more recent institutional involvement is primarily conducted via less transparent over-the-counter (OTC) trades, where trends are not immediately apparent and harder to gain insight into.

Pompliano was lastly asked about dwindling profit margins for cryptocurrency miners as the asset’s value tumbles. He conceded that outside of regions with abundant low cost power, such as China – where he claimed miners can mint Bitcoin for as little as $2,000-2,500 – we are seeing a similar “wash out” of miners in areas where electricity costs push expenses closer to $6,000 or $6,500. These latter, he said, “are underwater now.”

As previously reported, Morgan Creek Digital assets is backed by the institutional investment house Morgan Creek Capital, which has $1.5 billion in assets under management. The firm launched a Digital Asset Index Fund in late August, which gives accredited investors indirect exposure to Bitcoin, Ethereum and eight other large market cap assets, although not pre-mined cryptos such as Ripple (XRP) and Stellar (XLM).

Speaking yesterday, Vinny Lingham, CEO of identity management startup Civicpredicted Bitcoin will trade range-bound between $3,000 and $5,000 for at least three to six months; if the coin fails to then break higher, it could lose the $3,000 support as well.

Bitcoin is currently trading at $3,730 by press time, down just over 6 percent over the past 24 hours.

This post credited to cointelegraph Image source: Cointelegraph

From an institutional crypto craze to a big update on the Tron network, here’s a look at some of the stories breaking in the world of crypto.

Bitcoin, XRP, Ethereum, Bitcoin Cash, Litecoin

Institutional traders are in a frenzy over the new crypto ETP that launched on Switzerland’s SIX Exchange last week.

As reported by The Block, the Amun Crypto Basket Index (HODL) now has the highest volume of any exchange-traded product trading on the venue. Its turnover is at about $425,000 a day, more than silver, crude oil and gold.

The index has nearly half of its assets invested in Bitcoin, with the remaining half comprised of XRP, Ethereum and Litecoin.

Stellar

Crypto exchange Coindelta just listed Stellar (XLM).

The India-based exchange says deposits and withdrawals are enabled, and the coin can be bought with the Indian rupee.

Coindelta@coindelta_

** New Listing on Coindelta **

Knock knock! Announcing the listing of Stellar (XLM) on Coindelta.
Deposits and Withdrawals are live now and the trading will start at 06:00 PM IST, 26/11/18. 😉

Details: https://medium.com/coindelta/coindelta-lists-stellar-xlm-ff438e465cc  @StellarOrg

15 people are talking about this

Ripple

A Ripple-backed venture just closed its Series A round of funding, raising more than $12 million.

Securitize aims to transform the securities industry by leveraging blockchain technology to tokenize private and public shares on the New York Stock Exchange or Nasdaq.

Ripple’s Xpring investment fund contributed an unknown amount to the project, along with Coinbase Ventures.

Tron

Tron just released a new update on DApp development, and says more than 20 decentralized apps are now up and running on the Tron network.

This post credited to Daily HODL Image source: Daily HODL

Throughout the past 24 hours, the price of Bitcoin (BTC) dropped from $4,065 to $3,600, reversing a short-term corrective rally.

The dominant cryptocurrency has been on a steep downtrend for several weeks but on November 26, for a brief of time, Bitcoin seemed to be initiating a corrective rally after reaching a new yearly low at around $3,400.

Temporarily, Bitcoin spiked to $4,000, engaging in a 17 percent increase in price within a 24-hour period. However, the price of the asset began to fell back to the lower region of $3,000.

What is Bitcoin up to?

The cryptocurrency market is struggling to sustain any sort of momentum in an attempt to create a trend reversal. Sell pressure on major digital assets is increasing and buy pressure is declining, which has led both Bitcoin and Ethereum to drop by more than 40 percent in the past two weeks.

“Bitcoin failing to complete the bull flag and to hold the neckline of the IH&S. Lack of buy pressure and $3,800 range looking weak. Expecting more downside: $3,400 as first target,” cryptocurrency trader Crypto Rand said on November 26.

Since Monday, the price of BTC has moved closer to the $3,400 support level and based on the movement of BTC in the past 12 hours, it is likely that BTC will drop below the level in the days to come, especially if it fails to maintain stability above the $4,000 mark.

Ripple (XRP)EOSStellar (XLM) and other major cryptocurrencies are in a worse position than BTC and ETH because of their low daily volumes. Currently, the volume of ETH remains larger than that of XRP, XLM, and BCH combined.

When the price of an asset falls substantially without a huge spike in volume, it represents a free fall without much sell pressure. Which means as big sell volumes begin to the hit the market, the price of the asset could be vulnerable to additional sell-offs in the near future.

The volume of BTC is decent at $6.5 billion and the volume of ETH is also relatively high. But, the volume of other major cryptocurrencies are lower than where they were from August to November, a period in which BTC demonstrated its lowest level of volatility in recent history.

Alex Krüger, a cryptocurrency trader and economist, said:

“Before the crash BTC had been growing exponentially. Will BTC ever resume exponential growth? Maybe not. Maybe only temporarily. Many assets don’t grow exponentially. What if bitcoin has matured and starts behaving as a currency or most commodities?”

One Positive: Swiss ETP

The newly introduced crypto exchange-traded product (ETP) in Switzerland offered by Amun and the Swiss Stock Exchange, has began to appeal to a large group of traders in the region.

It has become the biggest ETP in Switzerland with the highest trading volume, portraying an immense interest from local investors towards crypto.

This post credited to ccn Image from Shutterstock. Charts from TradingView.

Exiled American whistleblower Edward Snowden has weighed in on the conversation surrounding bitcoin, stating that while the market lodestar will be eventually fade away, the use of cryptocurrencies will not end with bitcoin.

Speaking in an interview with Ben Wizner, Director of the ACLU Speech, Privacy and Technology project, Snowden said that the belief which supports bitcoin acting as a global currency will merely transfer itself to other cryptocurrencies instead of dissipating.

Scarcity and Belief

Responding  to a question from Wizner about whether he believes bitcoin has long-term intrinsic value, Snowden compared bitcoin to paper fiat money and pointed out that the only difference between fiat and monopoly money is the belief generated by state backing, which essentially boils down to “men with guns.” In his view, while bitcoin and other blockchain-based crypto assets have a severely limited amount of fundamental value, two things, in particular, ensure that bitcoin remains viable in the near term.

The first he said, is scarcity, which is caused by bitcoin’s limited supply of 21 million BTC. This scarcity engenders competition to mine the remaining few million bitcoin, and that alone gives it a measure of value. The second and more significant factor in his view is the fact that large segments of the general population view it as a bona fide means of exchange. According to Snowden, this belief in cryptocurrency frameworks as a method of transferring real-world monetary value outside of banking networks is transferable and will survive the death of bitcoin.

In his words:

“That belief is how cryptocurrencies move enormous amounts of money across the world electronically, without the involvement of banks, every single day. One day capital-B Bitcoin will be gone, but as long as there are people out there who want to be able to move money without banks, cryptocurrencies are likely to be valued.”

“Great Utility, Poor Implementation”

Snowden, who lives in Russia after claiming asylum there in 2013 also revealed that despite his prediction of its impending demise, he likes bitcoin because of the opportunities and possibilities it has created around the world. Using himself as an example he said:

“Let’s say Bank of America doesn’t want to process a payment for someone like me. In the old financial system, they’ve got an enormous amount of clout, as do their peers, and can make that happen. If a teenager in Venezuela wants to get paid in a hard currency for a web development gig they did for someone in Paris, something prohibited by local currency controls, cryptocurrencies can make it possible. Bitcoin may not yet really be private money, but it is the first “free” money.”

Going further, however, he criticised the existing blockchain hashing paradigm, stating that neither of the two main hashing methods are great and new ones should be developed. Without mincing words, he described Proof of Work as an environmentally destructive activity slanted in favour of the rich, and Proof of Stake as a direct handout to the rich in the hope that their greed will keep the system running.

This post credited to ccn Featured image from Youtube.

For those doubting price could go lower, this month has been rather interesting. More than 90B in marketcap burn. Gone like the wind. A literal bloodbath.

I don’t know if I should laugh or cry. Honestly.

In one hand, great, I can purchase more Bitcoin at cheaper prices. On the other, goddamn it.

Did we seriously need another beating?

Why didn’t the stock markets continue to crash instead? Why couldn’t you guys just leave our dear btc alone?!

2018 has been really ungrateful for hodlers. A few bits of hope here and there; but mostly, horrendous massacres. Just by looking at absolute volumes, one can argue crypto-markets have become uninteresting for most retail investors who joined in late 2017.

Although hashrate has been able to keep more or less steady, we’re now seeing a decline in transaction numbers, which is rather surprising as it’s now cheaper to buy and sell bitcoin, due to lower fees (in fiat).

Public data obtained on Coinpayments.net, which processes transactions for dozens of traditional cryptocurrencies, showed that it had seen a drop of 50% in the first half of the year.

Now, since we’re already in deep-sh**, why not remember the worst beatings of the year? Since we’re going down, we might as well go down laughing!

 

 

Before I embrace darkness, hopefully in a funny way, a word of seriousness. As reported by Greg @ Hacked:

 

Bitcoin sunk below $4,000 for the first time in the same period, hitting $3,819 on the BTC/USDT market. The market fluctuation did also affect Tether however, so the true U.S dollar figure might be slightly higher. Yet even the BitMEX BTC/USD price fell to a low of $3,686.

Meanwhile, Stellar (XLM) took the worst hit out of the major altcoins, plunging 22.4% on across Saturday alone.

 

If you don’t like to joke about serious stuff, this next bit might not be for you.

Otherwise, please enjoy.

–This article shouldn’t be taken as financial advisement as it represents my personal opinion and views. I have savings invested in cryptocurrency so take whatever I write with a grain of salt. Do not invest what you cannot afford to lose and always read as much as possible about a project before investing. Never forget: with great power, comes great responsibility. Being your own bank means you’re always responsible for your own money

 

The Worst Beatings Of 2018

 

As a starting point, I’m choosing late December 2017. Don’t start complaining just yet, my logic does make sense as the first real big drop in price happened during December, last year.

The first bearish signal happened between 17th December – 22nd December, right before Christmas holidays.

128B (in marketcap) evaporated in just a few days. This was one of the worst price drops in the history of Bitcoin.

Still, we did manage to recover. Just to break our legs again: between January 6th and February 6th, btc’s marketcap dropped 190B. It went from about 295B to 105B. An absolute wreckage.

Nobody was expecting such a huge drop within just a month. Bitcoin’s marketcap literally halved during the period comprised between December 2017 and early February 2018.

That manipulation, tho.

 

If the previous 2 beatings weren’t big enough, players decided to continue shorting Bitcoin. So, between March 5th and April 1st (not fooling anyone here), marketcap dropped 87B. Not as bad as the previous drops, but that’s only because there was less selling volume. After the February recover to almost 200B, short-sellers grabbed the bull by the horns and took it down once more, to around 110B.

News at the time were focusing, of course, on blaming CMBC Bitcoin’s futures markets for the price drops, which made absolute sense.

We shouldn’t forget during these peak high and lows there were little to no institutional investors on-board.

I really can’t imagine what’s to come.

 

Fast forward one month and we have another Baptista Bomb on marketcap. This time, between 6th May and 29th May, Bitcoin’s marketcap went from 169B to 121B. Only 48B lost this time.

Not bad!

Of course, for those of you who bought Bitcoin at a premium value (8K+), desperation started to kick-in. This was the time news started to get darker, and some folk started to contemplate Bitcoin’s price coming down to 5k eventually.

We’re not far away from those bearish predictions now, are we?

 

 

During the summer Bitcoin’s price also went up and down, burning about 40b in marketcap, between the 25th July and 14th August.

For those enjoying your summer holidays, those were really bad news. It was at this point most of us accepted the harsh reality Bitcoin’s price might not be recovering anytime soon.

Although I don’t think that was the killer blow.

Sentiment was already pretty beaten up, however there were still some lights at the end of the tunnel.

Hope was still alive.

 

 

In my mind the final flow happened between the 5th September and the 9th of September, when marketcap was at about 127b, and the 9th of September, when marketcap dropped to 107B.

Although the drop was about half what happened the previous time, for most that was the actual fatality move.

A destructive kick in the balls.

It was at this point google trends showed sentiment to be at its lowest levels since early 2017.

One thing some people do not immediately realize is that since January 2018 both price drops volatility and the difference between minimum and maximum levels has stabilized.

This is, if we compare the amounts lost in terms of marketcap by date, this is what we see:

 

190B -> 87B -> 48B -> 20B -> 12B

 

Doesn’t it seem interesting the amount lost halves each time? 

 

I cannot guarantee these drops were calculated precisely, as it’s near impossible to say so; however, it does seem curious we have such a high correlation between the min-max (or average lost) of each period, being the later the half of the previous.

This result gives me confidence to believe we’re getting to a point of real stability and price should be going upwards soon.

My personal bet?

Until the end of Q1 2019, Bitcoin’s price will double.

Let’s see if my analysis performs better than Bitcoin over the last few months. If it doesn’t… well, just buy some more!

 

Conclusion

 

 

Since Bitcoin was released many booms and bursts happened, due to a plurality of reasons. Some of the most epic I would like to mention are:

  1. June 2011: The price of the Bitcoin rose from $0.95 in early 2011 and reached a peak of $32 around 8 to 10 June 2011. By the 12 June 2011, however, the coin fell by about 68% in value. A further drop was seen to $2 in November 2011, contributing to a fall of 94%. This was associated with early volatility so the Bitcoin did see more interest from traders despite this crash.
  2. January 2012:  In the beginning of 2012, the coin further increased in value to $7.20. An unexpected crash then occurred around 16 to 17 January, 2012 when the value fell by 36% to $4.60. While the coin did recover sufficiently to $6.25, it continued to flounder in the market for the next six months. This was a pretty scary proposition for early investors who had seen a high of $32 in the previous year.
  3. August 2012: Bitcoin recovered pretty well between July and August 2012 to reach a high of $15.25. This happy trend was soon cut short by a fall around August 18 2012 by 51% to reach $10.50, and then fall further to $7.50 in the same month. The cryptocurrency stayed below the $15 mark for the remainder of that year.
  4. April 2013: While the price did increase as far as a whopping $266 in April 2013, it also fell sharply in the same month by about 71% to a value of $67. Experts have since attributed this fall to investor enthusiasm through media coverage as well as a brief outage at the Mt. Gox exchange.
  5. November 2013: The price of Bitcoin remained at around $120 for the rest of the year and then surged again in November to reach a peak value of $1,150 towards the end of the month. This was clearly because of the rush of first-time investors who were attracted towards the new cryptocurrency. By about mid December of 2013, another huge meltdown occurred. The coin dropped in value to $500. It remained below $1,000 for the next couple of years.

Despite the terrible news around during these periods, Bitcoin has always managed to recover; each boom and bust is a perfect example to show how resilient cryptocurrencies can be when supported by a solid community.

Whatever you might feel now about Bitcoin always remember: markets work in cycles. If you’re patient enough you’ll be able to participate in both bearish and bullish cycles.

The key thing is to time markets right.

Good trades!

Disclaimer: The views expressed in the article are solely those of the author and do not represent those of, nor should they be attributed to, CCN.

This post credited to ccn Image source: CCN

Would a state-backed cryptocurrency be better than its decentralized counterpart? International media has already rolled out their opinions on the matter. It’s a YES-IT-CAN.

The opinions find their inspirations in comments made by Christine Lagarde last week. The head of the International Monetary Fund (IMF) said that a government-backed cryptocurrency would eliminate the issues of trust that have clogged the decentralized cryptocurrencies like Bitcoin.

New York Times reacted to the IMF chief’s remarks, calling it “a hopeful sign for digital tokens,” while predicting it could “have a chilling effect on existing, nongovernmental tokens.” The Guardian offered its editorial space to a long-time Bitcoin critic and economist Nouriel Roubini to further his plan. He outright called cryptocurrencies worthless when compared to central bank digital currencies (CBDC).

“If a CBDC were to be issued, it would immediately displace cryptocurrencies, which are not scalable, cheap, secure, or [actually] decentralized,” Roubini claimed.

Missing Links

The comments mentioned above appear at a time when the cryptocurrency market cap has plunged by more than 70 percent since its all-time high. It has allowed critics to jump to the conclusion that decentralized digital currencies, mainly Bitcoin and Ethereum, have no intrinsic value, that they are highly speculative unlike central-bank issued fiat money. Yet, critics have ignored the whys and whats that prompted the launch of decentralized assets at the first place. They have been unable to respond to how Federal Reserve stimulus programmes, secret bailouts, and money production have destroyed the value of the US Dollar.

Their focus has turned more towards proving Bitcoin as a sugar-coated false promise of a financial revolution while ignoring the very bads of the existing financial system. Economy believes that an asset has value when it checks scarcity and utility. The US Dollar lacks scarcity, for its supply is governed by a centralized body called Federal Reserve. There is no check on how many dollars would get printed, allowing insiders to manipulate a greenback-backed market on their whims.

Bitcoin, on the other hand, has a set cap of 21 million tokens. Its supply is governed by mathematical algorithms, meaning no corrupt human involvement would be able to topple it. As far as the use-cases are concerned, Bitcoin has been constantly looked at for its potential of becoming a store-of-value asset like Gold, while being constantly considered for settling cross-border payments despite its price volatility.

The critics then say that bitcoin has no intrinsic value. But even gold and paper money suffers from the same stigma. According to the World Council, only 15 percent of the global Gold supply is used in industrial applications. The rest goes into making bars, bullions, and jewelry – mainly because people trust they have value.

Trust is the Only Factor

The launch of Bitcoin was a response to a global financial crisis in which – let’s accept it – banks had f***ed up the economy. The digital currency – more or less – follows the philosophy of the Austrian Monetary Theory. According to it, money can be sound only when its supply is limited. It believes that money should not be controlled by the state. These facts are missing from the reports and opinion pieces of anti-Bitcoin economists.

The Federal Reserve and central bankers believe that only they have the right to print money. Bitcoin is only a beginning towards breaking the myth. As long as the central banks do not innovate and protect people against currency inflation – as evident in the case of Zimbabwe and Venezuela – there is no chance they would be able to outrun crypto. People need to trust their banks, but mainstream media and economists are avoiding a broader discussion.

The next financial crisis should bring more evidence to the theory. No rush.

This post credited to News BTC Image source: News BTC