The Daily: Electrum Users Targeted by Hackers, Huobi DM’sDaily Volume Exceeds $1B

The Daily: Electrum Users Targeted by Hackers, Huobi DM’s Daily Volume Exceeds $1B

The Daily

Electrum developers have confirmed reports of an attack against the popular cryptocurrency wallet. Also covered in The Daily, Huobi Derivative Market’s daily trading volume has reached $1 billion, and one of the founders of Brazil’s leading crypto exchange Foxbit has died in a car crash.

Also read: UFC 232 to Have Official Crypto Partner, 5% of Israelis Use Bitcoin

Electrum Developers Scramble to Stop Phishing Attack

The Daily: Electrum Users Targeted by Hackers, Huobi DM's Daily Volume Exceeds $1BUsers of the Electrum bitcoin wallet have been targeted in a new phishing attack, the project’s developers confirmed on Twitter. The team notes that the wallet’s official website is electrum.org and warns against downloading the software from any other source.

The attack, which began about a week ago, has been conducted through malicious servers. When asked to broadcast a transaction through a legitimate Electrum wallet, these servers reply with an error message, directing users to download a fake ‘security update’ from an unauthorized Github repository.

At startup, the malicious software asks users for a two-factor authentication code, an unusual request as the 2FA codes are needed only when sending funds. The app then uses the code to transfer the stolen digital cash to addresses controlled by the attacker.

Electrum is one of the most popular cryptocurrency wallets with support for major coins such as bitcoin core, bitcoin cash, litecoin, and others. According to a report by Zdnet, the unknown hacker or hackers have so far managed to misappropriate over 200 BTC.

The Daily: Electrum Users Targeted by Hackers, Huobi DM's Daily Volume Exceeds $1B

Electrum developers released an update, version 3.3.2, after they were notified of the attack. However, they admitted in a blog post that “This is not a true fix, but the more proper fix of using error codes would entail upgrading the whole federated server ecosystem.” Gitub admins have also taken down the attackers’ repository.

In January of this year, Electrum issued an emergency patch for another bug. The vulnerability exposed passwords allowing websites hosting the wallets to potentially steal cryptocurrency belonging to their users.

Huobi DM’s Daily Trading Volume Surpasses $1 Billion

The Daily: Electrum Users Targeted by Hackers, Huobi DM's Daily Volume Exceeds $1BHuobi Derivative Market’s daily volume has exceeded $1 billion within a month after the launch of the trading service, the Singapore-based cryptocurrency exchange announced. The threshold was reached on Dec. 25, which was also a strong day for the company’s main trading platform, Huobi Global, with the combined trading volume of both Huboi’s platforms amounting to $2 billion on Christmas day. Huobi Global CEO Livio Weng commented:

This just goes to show the market demand for more sophisticated crypto trading tools, particularly those that allow traders to control risks in volatile markets. Huobi DM is a priority for us and we will continue to enhance it over the coming months.

The cryptocurrency contract trading feature offered by Huobi Derivative Market allows users to buy or sell bitcoin core (BTC) and ethereum (ETH) at predetermined prices and specified times in the future. That provides traders with a number of options such as arbitrage, speculation, and hedging. Huobi also plans to offer support for more cryptocurrencies, with EOS contracts already scheduled to go live on Friday.

Foxbit Co-Founder Gustavo Schiavon Dies in a Car Crash

The Daily: Electrum Users Targeted by Hackers, Huobi DM's Daily Volume Exceeds $1BGustavo Schiavon, one of the founders of the leading Brazilian cryptocurrency exchange Foxbit, has died in a road accident. While driving between Marília and São Paulo, the young entrepreneur reportedly lost control over his car and ran into a cargo truck. Gustavo’s girlfriend, Ariadny Rinolfi, has survived but has been hospitalized in serious condition. Another victim died in the crash that involved a total of two passenger cars and two large trucks.

Schiavon established Foxbit in 2014 with three other partners – João Canhada, Marcos Henrique and Felipe Trovão. In the following years, it became Brazil’s largest digital asset trading platform. This past March, the exchange lost to hackers 1 million Brazilian real (approximately $260,000), however, restored customers’ balances with the company’s own reserves.

This year Foxbit was also involved in a lawsuit against a commercial bank that closed its account citing concerns over money laundering. Without presenting evidence in court, the bank claimed it had the right to shut down accounts which it determined to be risky, which was later confirmed by Brazil’s judiciary.

What are your thoughts on today’s news tidbits? Tell us in the comments section.


Images courtesy of Shutterstock, Electrum, Foxbit.


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Seven Cryptocurrency Trends to Look out for in 2019

Seven Cryptocurrency Trends to Look out for in 2019

News

Another year is coming, filled with fresh optimism and newfound determination to make 2019 the year when cryptocurrencies take over. Having gotten their calls badly wrong for 2018, so-called experts will be hesitant to make bullish price predictions for 2019. That’s probably for the best since there are far more interesting things to focus on than price action. Here are seven trends that should dominate the cryptosphere over the next 12 months.

Also read: Bitcoin History Part 6: The First Bitcoin Exchange

2018 Didn’t Play Out the Way it Was Promised

Seven Cryptocurrency Trends to Look out for in 2019This time last year, all kinds of bold predictions were being issued for what 2018 would hold for the crypto space. In the event, the biggest trend of the year was one which few futurologists foresaw – stablecoins. 2018 will go down as the year the markets went south and ICOs died off, leaving a new wave of digital assets to shine – dollar-pegged stablecoins.

Love, hate or tolerate them, there’s no denying that stablecoins were a recurring motif this year. Whether they will continue to dominate in 2019 depends to a large extent on how conventional crypto assets perform. Should the current bear market persist, or bite deeper still, stablecoins will remain ubiquitous. If more favorable market conditions return, however, stablecoins will be forced to take a back seat, leaving the following trends to joust it out in 2019.

New Privacy Protocols Will Gain Traction

Seven Cryptocurrency Trends to Look out for in 2019With the Mimblewimble-powered Grin and Beam cranking into life, the stage is set for 2019 to be the most private year in crypto in a long time. The last few years of encroaching blockchain surveillance have stripped away a lot of the anonymity that cryptocurrency users once took for granted, but the fight back has begun. It’ll take more than a single privacy protocol to restore the imbalance of course, so it’s just as well there’s a host of privacy-minded tools set to come onstream.

Aside from the Mimblewimble coins, there’s the prospect of Bitcoin Core getting Schnorr signatures next year, which could open the door to privacy tech such as Coinjoin at some point. Before then, we’ll be seeing a lot of other pro-privacy platforms, apps and protocols gaining traction. Wasabi Wallet, a privacy-focused BTC wallet, will hoover up new users, while Ethereum may get its own take on confidential transactions courtesy of Aztec protocol. Stablecoins could get private too should Zkdai – zero-knowledge DAI transactions – become a thing. Pro-privacy projects like Dust and Loki should also make progress, while new projects such as Resistance, a privacy coin and accompanying DEX, are in the works.

STOs Will Replace ICOs

2018 was meant to be the year of security tokens until it wasn’t. That prediction can be rolled over to 2019, however, when it might just come true provided the technical and regulatory hurdles can be cleared by enough applicants. What’s beyond dispute is that 2018 killed the ICO, and no one is tipping the crowdfunded utility token model to rise again. The increased legal and compliance costs of holding an ICO, which now average around $1 million, have put paid to the vast majority of initial coin offerings.

Seven Cryptocurrency Trends to Look out for in 2019
The ICO market died off dramatically in 2018.

Amazix head analyst Jose Macedo believes the security token offering (STO) will become the standard model most crypto-based projects deploy. “While utility tokens are far from dead, what the industry has now realized is that few of these token economic models actually made sense in terms of long-term value capture,” he explains. “As a result, we’re seeing a lot of projects come to us looking for help in either launching their STOs or restructuring their ICOs as STOs,” adds Macedo. He continues:

We’re also seeing a lot more STO infrastructure be built out in terms of quality legal, token sale platforms, book-building firms, exchanges etc … As of right now, we have about $1B worth of STOs partnered with us looking to launch in 2019.

Seven Cryptocurrency Trends to Look out for in 2019While security token projects are poised to launch in proactive territories like Malta and Gibraltar, where regulatory frameworks have been drawn up, slower progress is expected in the U.S., where fundraising options are limited. There, the SEC will likely deem most ICOs to be issuing securities. American crypto-based projects are no closer to being granted Reg A+ approval to launch an STO, despite some, such as Gab, having filed the paperwork over a year ago.

Decentralized Credit Networks Will Take Off

Decentralized credit networks made huge strides this year in terms of infrastructure development. The tools necessary to facilitate collateralized loans, social credit and open finance have been fine-tuned and proven to work. 2019 will be when they scale up and start to serve the sort of users they were envisioned for – global citizens who’ve been excluded by the current financial system.

Seven Cryptocurrency Trends to Look out for in 2019Crypto debt markets and credit networks will be bolstered by the growth of projects like Dharma Protocol, GEO Protocol, Nexo, and Maker DAO. Maker’s system of multi-asset over-collateralization will be emulated, having proven its robustness through extreme market volatility this year. Multi-collateral dai will see a wide range of applications in 2019, as the number of users grows with the number of assets that can be collateralized. 2018 was all about ETH, but in 2019 Maker will accept BTC, ERC20s and other crypto and non-crypto assets.

Other Trends to Expect in 2019

It’s possible that 2019 could be the year when one or more dapps finally sees mass adoption, but don’t count on it. It may also prove to be the year when the first viral  blockchain game arrives. At the very least, crypto collectibles and virtual reality projects will attract fresh investment, with non-fungible tokens (NFTs) tethering them to public blockchains to facilitate the trading of digital assets. Once Decentraland’s virtual world launches in 2019, a meeting ground for all kinds of crypto games and projects will be established.

Seven Cryptocurrency Trends to Look out for in 2019The Bitcoin Cash community will continue to find new ways to spend and receive peer-to-peer cash, while the BTC brigade will have optimism that 2019 will finally be the year when the Lightning Network proves its suitability for something more than purchasing stickers. Custodial services for institutional investors will improve, bringing new money into the crypto space (but probably not propelling crypto assets to new highs). NYSE’s Bakkt will launch, bringing physical BTC futures contracts, and there’s an outside bet the SEC might approve a bitcoin ETF.

Stripped of much of the greed that characterized the dawn of 2018, and with 12 months of robust infrastructure work completed, 2019 is shaping up to be an exciting time for cryptocurrency users from all tribes, countries and continents.

What other trends do you expect to see in 2019? Let us know in the comments section below.


Images courtesy of Shutterstock and Tokendata.


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Markets Update: BCH Up Over 100% in a Week, BTC Breaks Above$4,000

Markets Update: BCH Up Over 100% in a Week, BTC Breaks Above $4,000

Market Updates

The cryptocurrency markets appear poised to post the strongest week of trading in months, with BCH up over 115% since Dec. 16. BTC is also on the cusp of posting its strongest weekly candle since February after breaking above $4,000.

Also Read: Russian Parliament Postpones Adoption of Digital Assets Bill

BCH Price Doubles in One Week

As of this writing, bitcoin cash (BCH) has posted the strongest percentage daily performance of the top 90 cryptocurrencies by market capitalization, with a 24-hour gain of over 35%. This rally has been driven by the third-strongest daily volume in the history of Bitstamp’s BCH market.

Markets Update: BCH Up Over 100% in a Week, BTC Breaks Above $4,000
BCH/USD – Bitstamp – 1D

Since posting an all-time low of approximately $73, BCH has gained approximately 132% and is currently trading for around $180. Bitcoin cash has also reclaimed its rank as the fourth-largest cryptocurrency by market cap after languishing at the bottom end of the top 10 just last week.

When measuring against BTC, BCH bounced roughly 83% from a record low of approximately 0.024 BTC on Dec. 15 to now trade for 0.0434 BTC, with the last two days comprising the second and third-strongest 24 hours of BCH/BTC trading on Bitstamp.

Markets Update: BCH Up Over 100% in a Week, BTC Breaks Above $4,000
BCH/BTC – Bitstamp – 1D

The market capitalization of BCH is currently $2.95 billion, comprising 2.25% of the capitalization of the combined crypto market.

BTC Poised to Post Strongest Weekly Candle Since February

BTC has broken above $4,000 for the first time in 10 days, driven by gains of more than 26% in less than one week. Should BTC close the week with a gain of more than 22%, it will be the strongest seven-day candle posted since Feb. 12.

Markets Update: BCH Up Over 100% in a Week, BTC Breaks Above $4,000
BTC/USD – Bitfinex – 1W

After posting a yearly low of approximately $3,200 on Bitfinex and $3,120 on Bitstamp on Dec. 15, BTC has rallied back above $4,000, posting an intraday top high of $4,200 on Bitfinex and $4,100 on Bitstamp.

Markets Update: BCH Up Over 100% in a Week, BTC Breaks Above $4,000
BTC/USD – Bitfinex – 1D

BTC currently has a market dominance of 54% and total capitalization of $71.15 billion.

XRP Market Cap Over $15 billion

The second largest cryptocurrency by market cap, XRP, has gained roughly 32% in five days, bouncing from approximately $0.3 to currently test resistance at $0.385.

Markets Update: BCH Up Over 100% in a Week, BTC Breaks Above $4,000
XRP/USD – Bitfinex – 1D

When measuring against BTC, XRP appears to be producing an ascending wedge pattern, with price action consolidating at the neckline area of between roughly 0.00009 BTC and 0.0001 BTC for the past five days.

Markets Update: BCH Up Over 100% in a Week, BTC Breaks Above $4,000
XRP/BTC – Bitfinex – 1D

As of this writing, XRP has a market capitalization of approximately $15.25 billion, comprising 11.6%.

ETH Bounces Back Above $100

After a year-to-date low of approximately $83, ETH has rebounded 31% in roughly one week to currently trade for $112 at local resistance.

Markets Update: BCH Up Over 100% in a Week, BTC Breaks Above $4,000
ETH/USD – Bitfinex – 1D

When measuring against BTC, ETH has chopped between approximately 0.025 BTC and 0.028 BTC for the last two weeks, excluding a brief capitulation down to a 2018 low of 0.0245 BTC on Dec. 7.

Markets Update: BCH Up Over 100% in a Week, BTC Breaks Above $4,000
ETH/BTC – Bitfinex – 1D

Ethereum now has a market cap of $11.4 billion and a market dominance of 8.7%.

Do you think that the cryptocurrency markets can continue to rally? Or are lower lows incoming? Share your thoughts in the comments section below!


Images courtesy of Shutterstock, Tradingview


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The Daily: Yellow Vest Coin Created, Security Token TradingPlatform Launched

The Daily: Yellow Vest Coin Created, Security Token Trading Platform Launched

The Daily

In The Daily on Monday, a new digital coin project targeting the ‘Yellow Vest’ protesters is promising censorship-free crypto transactions. Also, a regulated security token trading platform is now live in the U.S., South Korean internet giant Kakao invests in an Israeli startup, and crypto exchange Abra is giving away bitcoins for Christmas.

Also read: Trump Chooses Bitcoin Advocate as Chief of Staff, Congressman Proposes Wall Coins

‘Get Your Freedom Back!’

A new digital token project using symbols associated with the Yellow Vests (Gilets Jaunes) protestors in France has been devised. The creators of the Gilet Jaune Coin (GJCO) claim their main goal is to support what has become an international movement “in the legitimate struggle of nations to self-determination, and the reconquest of their economic, territorial, and monetary sovereignty.”

The coin’s website is littered with slogans such as “Get your freedom back,” “Long live the Gilets Jaunes” and “The people will not be sacrificed on the altar of debt!” It also abounds in promises and calls like “We will be listed on exchanges soon,” “To stay united, you should mine on our own pool” and “We invite you to buy a Gilet Jaune Coin wallet.”

The Daily: Yellow Vest Coin Created, Security Token Trading Platform Launched

The project’s team claims the coin is inspired by Bitcoin and based on Ethereum, and insists GJCO is easy to use and “perfect for transactions… at ridiculously low costs.” The developers of the new crypto further assure the public that the Gilet Jaune Coin is censorship-free and fraud-resistant, stating that its use is “recommended during the fight against the banking oligarchy, seeking to enslave us!”

It’s unclear whether the digital coin is actually related to the Yellow Vests Movement. The social media links on its website do not lead to real accounts, but coin’s Telegram channel now has over 90 members. The Mouvement des Gilets Jaunes demonstrations, which started as a protest against increased fuel prices in France this past November, have spilled over to other EU countries and even Turkey and Iraq. Protesters have also raised a number of demands related to socio-economic problems such as low incomes and government corruption.

Regulated Security Token Trading Platform Now Live

The Daily: Yellow Vest Coin Created, Security Token Trading Platform LaunchedOpen Finance Network (OFN), a security token trading platform regulated in the U.S., announced it’s transitioning from beta to full trading functionality. According to a blog post on Medium, one of the security tokens available to trade at launch is Blockchain Capital (BCAP). Blockchain Capital is a tokenized venture capital fund focused on digital assets. OFN notes that this is a compliant security token offering.

The platform is now available to both accredited and non-accredited investors in the United States and other markets. It implements a one-time verification procedure through an application called Investor Passport that allows users to invest based on their eligibility. Open Finance Network has also developed its own security token standard called the Smart Securities Standard in order to be able to offer both token issuance and secondary market trading.

Kakao Invests in Israeli Startup Orbs

South Korean Internet giant Kakao Corp. has invested in the Israeli crypto startup Orbs through its venture arm, Kakao Investment, Reuters reported. Kakao, which is South Korea’s largest messaging app operator, announced earlier this year its plans to establish a unit focused on blockchain technology. Orbs, which did not disclose the size of the investment, said the funds will help it grow and build on its existing partnership with the Kakao blockchain subsidiary Ground X. The two companies are already working together to develop applications of crypto technology.

Abra Giving Away Bitcoins for Christmas

The Daily: Yellow Vest Coin Created, Security Token Trading Platform LaunchedDigital asset exchange and crypto wallet provider Abra has decided to cheer up crypto enthusiasts during the bear market with a Christmas promotion. The platform is now giving away $25 of BTC to new investors for its ETF-style token called Bit 10. To be eligible for the crypto cashback, however, users have to buy at least $1,000 worth of tokens before the end of this month. And there’s another catch, according to The Next Web – Bit 10 is a market tracking index token that can be purchased and sold only through the Abra app. The token tracks the top 10 cryptocurrencies each month, which means its value will only go up in a bull market, but may struggle in the current one.

What are your thoughts on today’s news tidbits? Tell us in the comments section.


Images courtesy of Shutterstock, Gilet Jaune Coin.


Make sure you do not miss any important Bitcoin-related news! Follow our news feed any which way you prefer; via Twitter, Facebook, Telegram, RSS or email (scroll down to the bottom of this page to subscribe). We’ve got daily, weekly and quarterly summaries in newsletter form. Bitcoin never sleeps. Neither do we.

Transnistria Welcomes Crypto Miners, Plans to Expand theIndustry

Transnistria Welcomes Crypto Miners, Plans to Expand the Industry

Economy & Regulation

The government of Transnistria has recognized the importance of cryptocurrency mining for the territory’s economy and budget. The unrecognized republic in Eastern Moldova now plans to expand the industry by attracting more miners with a crypto-friendly business climate and favorable regulations.   

Also read: CEO of Romanian Exchange Coinflux Arrested on US Warrant

Tiraspol Plans for 100 MW of Mining Capacity

Transnistria Welcomes Crypto Miners, Plans to Expand the IndustryEarlier this year, the Pridnestrovian Moldavian Republic (PMR) adopted legislation that legalized crypto mining and provided incentives for foreign investors to set up mining farms within its borders. Under its provisions, a free economic zone was established for these companies and authorities promised to provide the necessary infrastructure, including unrestricted access to the Transnistrian electrical grid.

The new law “On the development of information blockchain-technologies in the PMR” also allowed tariff-free imports of mining equipment and exempted mining incomes from taxation. As a result, facilities with a total consumption of between 5 and 7 MW of electricity are now operating in the country.

But the government in Tiraspol doesn’t want to stop there. According to its prime minister, Transnistria plans to increase that number to 100 MW and has already managed to secure the needed investments. In an interview recently broadcasted by two local TV channels, Aleksandr Martynov stated:

We adopted a fairly liberal law that stimulates mining activities in Transnistria. We also isolated them from our tax system.

The head of the executive power further emphasized that Pridnestrovian authorities do not exercise any control over the revenues from the production of cryptocurrencies and don’t claim any portion of the income generated by entities that operate mining facilities. He added that the main goal set by the government is to sell more electricity to the bitcoin farms, and Transnistria can offer a lot of it at a low price.

Miners Utilize Excess Generating Capacity

Transnistria Welcomes Crypto Miners, Plans to Expand the IndustryThe largest producer of electricity in the region is the Russian-owned Moldavskaya GRES, a thermal power station built on the shores of Lake Kuchurgan on the Ukrainian border. It has an installed capacity of 2,520 MW. The station burns mainly Russian natural gas which the self-proclaimed republic does not even pay.

The fuel is billed to Moldova which claims sovereignty over the separatist territory in a frozen conflict with the government in Tiraspol that dates back to the dissolution of the Soviet Union in the early 1990s. The $6 billion of money owed by the Kuchurgan power station are considered part of Moldova’s debt to the Russian supplier, Gazprom.

Cryptocurrency miners help to utilize the excess capacity of the power plant. And more mining farms means higher revenues for the station, which translates into increased budget receipts for Transnistria, Prime Minister Martynov explained. He added that the projected income, which he described as significant, has already been included in PMR’s draft budget for the next year.

What do you think of Transnistria’s policies towards the crypto mining industry? Share your thoughts on the subject in the comments section below.


Images courtesy of Shutterstock.


Make sure you do not miss any important Bitcoin-related news! Follow our news feed any which way you prefer; via Twitter, Facebook, Telegram, RSS or email (scroll down to the bottom of this page to subscribe). We’ve got daily, weekly and quarterly summaries in newsletter form. Bitcoin never sleeps. Neither do we.

Despite 2018 Bear Market, Top Crypto Markets HaveOutperformed FANG Stocks Since 2017

Despite 2018 Bear Market, Top Crypto Markets Have Outperformed FANG Stocks Since 2017

Markets and Prices

Despite the 2018 cryptocurrency bear trend renewing gleeful predictions of bitcoin’s demise from mainstream financial analysts, the leading crypto markets have dramatically outperformed the ‘FANG’ (Facebook, Apple, Netflix, and Google) stocks since the start of 2017.

Also Read: Linkedin Names ‘Blockchain Developer’ Top Emerging US Job of 2018

FANG Stocks Up Between 25% and 115% Since Start of 2017

As with the cryptocurrency markets, the FANG stocks broke into new record highs during early 2017, leading to a multi-month bull trend driven by accelerated momentum. However, in spite of currently posting year-to-date losses between 75% and 90%, the leading cryptocurrency markets have significantly outperformed the FANG stocks since the start of 2017.

APPLE

At the start of 2017, AAPL (Apple) was trading for approximately $115. After rallying throughout 2017, APPL continued to set record highs during 2018 before going parabolic in the third quarter following a breakout above $1 trillion in market cap.

Despite 2018 Bear Market, Top Crypto Markets Outperform FANG Stocks Since 2017

Since establishing an all-time high above $230 at the start of October, APPL has aggressively retraced roughly 30% back to currently trade for approximately $165, resulting in the stock having gained approximately 43% since January 2017.

FACEBOOK

Of the FANG stocks, FB (Facebook) has seen the greatest price volatility in price over the past two years. Trading for approximately $115 at the start of January 2017, FB saw 12 months of predominantly bullish action before producing a roughly 23% retracement from a then-record high of $195 down to $150 during the first quarter of 2018.

 

Despite 2018 Bear Market, Top Crypto Markets Outperform FANG Stocks Since 2017

The second and third quarters of 2018 saw FB rally to post a record high of nearly $220, before suffering a violent 40% crash to establish local support at $125. As of this writing, FB is trading for $144, equating to a gain of 25% since the start of 2017.

NETFLIX

NFLX (Netflix) has been the strongest performing of the FANG stocks since January 2017. NFLX began 2017 trading at nearly $125 before producing 18 months of sustained bullish action.

Despite 2018 Bear Market, Top Crypto Markets Outperform FANG Stocks Since 2017

Since producing a double-top at approximately $420 during June and July, NFLX has recently retraced by roughly 40%. As of this writing, NFLX is consolidating at the $265 support area, resulting in a price gain of 115% in nearly 24 months.

GOOGLE

GOOG (Google) has been the least volatile of the FANG stocks in the last 24 months, beginning 2017 at roughly $772. GOOG then produced 19 months of mostly bullish price action, before double-topping at roughly $1,255 during July and August.

Despite 2018 Bear Market, Top Crypto Markets Outperform FANG Stocks Since 2017

GOOG has suffered the smallest losses of the FANG stocks since posting its current all-time high, having retraced nearly 20% to test support at $1,000. GOOG is currently trading for $1,042, equating to a price gain of 35% since January 2017.

Top Crypto Markets Gain Between 200% and 4,000% in 24 Months

At the start of 2017, the top five cryptocurrencies by market cap were BTC, ETH, XRP, LTC, and XMR.

Despite losing nearly 77% since the start of the year, BTC has gained nearly 250% since January 2017, gaining from nearly $965 to currently trade for $3,344.

Despite 2018 Bear Market, Top Crypto Markets Outperform FANG Stocks Since 2017

In spite of posting a YTD loss of 88.5% as of this writing, ETH has gained over 1,000% in nearly 24 months, rising from $8 to $88.5.

Despite 2018 Bear Market, Top Crypto Markets Outperform FANG Stocks Since 2017

Of the top crypto markets from the start of 2017, XRP has since produced the largest gains, with prices increasing nearly 4,350% from roughly $0.0065 to 0.29 today, despite posting a YTD loss of 87%.

Despite 2018 Bear Market, Top Crypto Markets Outperform FANG Stocks Since 2017

Although LTC has yielded a YTD loss of 90%, the now seventh-ranked cryptocurrency by market cap has still produced price gains of more than 500% since the start of 2017, gaining from $4.33 to $26.5 today.

Despite 2018 Bear Market, Top Crypto Markets Outperform FANG Stocks Since 2017

While XMR has slipped to rank 12th by market capitalization and produced a YTD loss of 88.5%, Monero has gained nearly 200% since January 2017, with prices rising from $13.8 to $40.4.

Despite 2018 Bear Market, Top Crypto Markets Outperform FANG Stocks Since 2017

Do you HODL or day-trade? Share your favorite trading strategies in the comments section below!


Images courtesy of Shutterstock, Tradingview


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Markets Update: Bears Continue to Drag Cryptocurrency PricesDown

Markets Update: Bears Continue to Drag Cryptocurrency Prices Down

Market Updates

Digital asset prices have been dipping in value again after a few days of price consolidation. At the moment, the entire cryptocurrency economy is awfully close to dropping under the psychological $100 billion market valuation. Furthermore, since our last markets update cryptocurrency global trade volumes are weaker than usual, with only $11.5 billion worth of assets traded over the last 24 hours.

Also read: Password Manager App Dashlane Mocks Cryptocurrency Owners

More Price Dips and Lower Trade Volumes

Crypto-market prices are sliding again as the top 10 digital assets have seen 24-hour losses between 2-13%. At the time of publication, the entire market capitalization of all the coins in existence is $104.2 billion today. Currently, bitcoin core (BTC) prices are down 3.8%, on Friday, and 2.8% over the course of the last week. This gives BTC a global average price of about $3,302 and the value is lower on certain exchanges. Moreover, bitcoin core has a market valuation of about $57.5 billion which is 55% dominance over the entire digital asset economy.

Markets Update: Bears Continue to Drag Cryptocurrency Prices Down
Top 10 cryptocurrencies on Dec. 14, 2018.

BTC is followed by ripple (XRP) as the market captures $12 billion and each XRP is being swapped for $0.29 per coin. Ethereum (ETH) holds the third position but markets are down 4.6% and ETH is being traded for $86 per token. Stellar (XLM) takes the fourth position today as each coin is trading for $0.10 a piece. However, XLM markets have lost over 7.5% during the last 24 hours of trading. Lastly, the current ruler of the fifth position is the stablecoin tether (USDT) which is trading for a U.S. dollar and once in a while a few pennies above 1 USD.

Bitcoin Cash (BCH) Market Action

Bitcoin cash (BCH) is the seventh largest market valuation just before the weekend and the entire BCH capitalization is only $1.4 billion. BCH prices during Friday’s trading sessions are down 13% over the last 24 hours and over 18% for the week. This action has given BCH a value of about $82 per coin with roughly $98 million in global trade volume. Bitcoin cash trade volume has increased since our last market update which is a positive sign.

Markets Update: Bears Continue to Drag Cryptocurrency Prices Down
BCH/USD daily chart.

The top five exchanges swapping the most BCH include Lbank, Binance, Kraken, Huobi, and Coinbase. During our last four market updates, ETH had dominated BCH trading pairs over the last few weeks. On Friday, BTC captures the most trades against BCH with 28.5% of global trades. This is followed by ETH (26.5%), USDT (22%), EUR (9%), and USD (6.4%).

BCH/USD Technical Indicators

Looking at the BCH/USD 4-hour chart on Bitstamp indicates that bears have the reigns again today. The long-term 200 Simple Moving Average (SMA) is still well above the short-term 100 SMA trend line. This shows that the path towards the least resistance is still very much the downside.

Markets Update: Bears Continue to Drag Cryptocurrency Prices Down
BCH/USD 4-hour Bitstamp.

The Relative Strength Index (RSI ~21.96) is also indicating extremely bearish conditions as the RSI is still showing an oversold market. Stochastic and MACd readings show a similar downside trajectory as there will need to be some surprise bull action to make things less dreary. Order books on the upside show bulls have some resistance from now until $100 and some smoother seas from there. On the backside, support is pretty decent from the current vantage point up to $75 where buy orders start to get slimmer.

Markets Update: Bears Continue to Drag Cryptocurrency Prices Down
Bitstamp BCH/USD trading view 4-hour chart on Dec. 14, 2018.

The Verdict: Uncertainty Remains Strong With Crypto-Markets Below Their 200-Day Averages

This December is showing that cryptocurrency values are not as bright as some people predicted throughout the course of 2018. Being so close to the end of the year, Fundstrat’s Tom Lee has stated that he’s getting “tired” of cryptocurrency price predictions. Lee stated multiple times this year that BTC prices could hit a target of $15,000-25,000 by the year’s end. According to Lee’s note to clients this week, the Fundstrat Global Advisor says BTC’s fair model price should be between $13,800 and $14,800.

“Given we are so close to year-end, we are not providing any updates to near-term price objectives — read this as, we are tired of people asking us about target prices,” explained Lee on Friday.

Lee conceded by adding:

Given the steep discounts of [bitcoin] to our fair value models, the excessive bearish sentiment about fundamentals does not seem warranted.

Lee’s fair market value is still more than $10,000 higher than today’s BTC spot prices. Further, with the price so low BTC/USD, and ETH/USD short positions are still at all-time highs this week. This means more so than ever individuals and organizations believe prices are going to drop again. A large portion of the top digital assets continue to slowly drop into a narrowing price range with no signs of any significant price bounces ahead. As long as BCH, ETH, BTC, and many other coins ride below their 200-day moving averages and show extremely oversold RSI levels, traders will remain skeptical.

Where do you see the price of BCH, BTC and other coins heading from here? Let us know in the comments below.

Disclaimer: Price articles and markets updates are intended for informational purposes only and should not to be considered as trading advice. Neither Bitcoin.com nor the author is responsible for any losses or gains, as the ultimate decision to conduct a trade is made by the reader. Always remember that only those in possession of the private keys are in control of the “money.”


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Netherlands to Regulate Cryptocurrencies in Bid to Curb Money Laundering

Netherlands to Regulate Cryptocurrencies in Bid to Curb Money Laundering

Economy & Regulation

The Netherlands is seeking to regulate cryptocurrency companies, supposedly in a bid to prevent money laundering and alleged terrorist financing. All virtual currency businesses will now be required to obtain an operating license from De Nederlandsche Bank, the country’s central bank, under draft legislation designed to prevent crypto assets such as BTC from being used for criminal activities.

Also read: British Lawmaker Proposes Tax and Utility Bill Payments in Bitcoin

Know Your Customer for Crypto Companies

Bitcoin’s disruptive nature has often landed it in the crosshairs of a controlling global regulatory system, which is steeped in tradition. The decentralized and censorship-resistant cryptocurrency has been accused of many crimes, including being used by criminals to launder money, evade tax and fund terrorist activities throughout the world.

Netherlands to Regulate Cryptocurrencies in Bid to Curb Money Laundering

In a brief note published in the local daily De Telegraaf, the Dutch central bank said that cryptocurrency entities like exchanges will be compelled to know and to reveal the identities of their customers. Any “unusual transactions” should be reported to the bank, which will monitor the individuals and transactions on a continuous basis.

Its real motivation is to curb illicit financial flows facilitated under the cover of cryptocurrency transactions, something a number of regulators in Europe are increasingly becoming concerned with. “Providers of so-called cryptocurrencies, bitcoin of which is the best known, will soon need a license,” said the article. “The measure should help prevent such virtual coins being used to launder criminal money or to fund terrorism.”

The proposed law will effectively place virtual currency companies directly within the regulatory purview of the Dutch central bank. The regulator has invited “interested parties (to) respond to the bill.” It also said comments will include suggestions on “more measures that must reduce money laundering risks. In this way stricter rules for the art trade and brokers will also be introduced.”

Regulation Puzzle

Netherlands to Regulate Cryptocurrencies in Bid to Curb Money Laundering

De Nederlandsche Bank has generally been open-minded about digital assets, while reiterating the need for inter-state regulation to curb issues of abuse, fraud and other criminal activity. The central bank has previously spoken of how cryptocurrency, in its current state, isn’t a risk to financial stability.

But the regulation of digital currencies in the Netherlands is broadly reflective of wider sentiment throughout the European Union, where the treatment of crypto assets remains somewhat opaque. In Spain, for example, the government last month said it had identified 15,000 cryptocurrency investors it will monitor to prevent tax evasion and money laundering.

Spain vowed to ensure that investors pay taxes on capital gains from digital currency transactions and that they declare any other benefits accrued from trading. However, it admitted that virtual currency taxes will not put much into state coffers “because the ownership of bitcoins is opaque for the tax authorities, and their negotiation is almost impossible to track.”

Different countries in Europe are experimenting with cryptocurrency regulation at different levels. The U.K. is planning a ban on BTC-linked derivatives and France is looking to build itself into a crypto haven with friendly laws. There is no congruency in approach to digital currency regulation within the European economic bloc.

Netherlands to Regulate Cryptocurrencies in Bid to Curb Money Laundering

As far as money laundering is concerned, cryptocurrencies have faced some criticism, with allegations that about $90 million has been funneled this way using over 45 digital coins since 2016. But the figure fails to register on the radar of global illicit flows when compared to commercial banks. For example, Germany’s Deutsche Bank is being investigated for allegedly helping criminals launder money running into several billions of dollars. Last year, the bank was fined $700 million on similar charges – and that is just one institution.

What do you think about the proposed crypto regulation in the Netherlands? Let us know what you think in the comments section below.


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Report: BTC Gets a Health Check in ‘The State of Bitcoin’

Report: BTC Gets a Health Check in ‘The State of Bitcoin’

Economics

Delphi Digital has taken a deep dive into bitcoin core in its first “The State of Bitcoin” report. The 59-page document from the digital asset investment company leaves no stone unturned, covering everything from BTC payments to coin distribution and rolling returns compared to stocks and gold. The report brings together a plethora of interesting statistics that attest to bitcoin’s growing evolution and adoption.

Also read: Fundraiser Aims to Raise $1M in Cryptocurrencies for Venezuelans

Better Understanding Bitcoin

Few people, save for a handful of terminal haters and discredited economists, dispute that Bitcoin is valuable. But quite where that value lies, and what the primary purpose of Satoshi’s creation should be, is a matter of some dispute. “In its current state, BTC is easier to dismiss than understand,” acknowledge the authors of The State of Bitcoin. “We believe the primary long-term value drivers for BTC revolve around its ability to serve as 1) a censorship-resistant store of value and 2) a ‘check’ on governments as an alternative, country-agnostic digital reserve currency.”

Report: BTC Gets a Health Check in ‘The State of Bitcoin’The report itself offers something for everyone, addressing BTC’s current deployment as both a medium of exchange and a store of value. Delphi Digital devotes particular attention to charting BTC’s progress in the countries that need it most – inflation-hit Argentina and Venezuela. Here, as well as in regions where many of the world’s unbanked can be found – primarily Africa – cryptocurrencies have huge potential. The report identifies three primary drivers behind BTC adoption in these countries:

  • As an alternative to local currencies suffering from high or hyperinflation
  • Allowing citizens to hold their wealth directly, rather than trust a local bank
  • To improve the speed and reduce transaction fees of sending remittances

Report: BTC Gets a Health Check in ‘The State of Bitcoin’The average cost of remittance for sending $200 is as high as $36 between South Africa and Botswana, for example, showing significant scope for cryptocurrencies to provide a low-cost alternative. But BTC’s use cases don’t end there. “In the past, when high inflation took hold in a person’s country, there was little that they could do except watch as their purchasing power evaporated,” continues the report. Now, “any person with internet access has the option to insulate themselves from local currency risk by switching to [BTC]. Essentially, bitcoin can offer a check on government power and policy while providing a vital safe haven for people from all around the world.”

Divining Trends Through UTXO Analysis

Examining unspent transaction outputs (UTXOs) offers up clues as to the market cycle that BTC is currently enduring, and hints at what may come next. Delphi Digital has used a green line to represent UTXOs that are at least a year old – i.e. coins that haven’t been spent in over a year. Monitoring the percentage of 1yr+ UTXOs, as part of BTC’s entire UTXO set, shows when bitcoin holders begin to move their coins once more, be it to sell, trade, or purchase goods and services. “In the second half of 2018, the 1-Year UTXO band began exhibiting a positive growth trajectory directly in tandem with the 1-2 Year band as older UTXO bands remain flat,” reads the report. “We believe we are in the midst of an accumulation process taking similar to the one in the 2nd half of 2014.”

Report: BTC Gets a Health Check in ‘The State of Bitcoin’
The black line represents the price of BTC on a logarithmic scale and the green line shows the percent of bitcoin UTXOs that have not been used in a transaction in at least a year

For those searching desperately for signs of a market recovery, one of the key takeaways from the report, based primarily on UTXO analysis, is that “Bitcoin may face additional selling pressure in the near-term, but we believe prices will bottom in Q1 2019 based on our analysis of holder dynamics during prior boom-bust cycles.”

From Banks to the Unbanked, Bitcoin Is for Everyone

Much of Bitcoin’s beauty lies in the fact that it can be many things to many people. While it can provide a lifeline to citizens suffering from hyperinflation or prone to having their assets seized by despotic governments, BTC can be equally valuable to governments themselves, central banks, and the so-called one percent. “There is a case to be made for central banks to hold a small portion of bitcoin in their reserves as a complement to gold if it matures into an accepted store of value,” ventures the report. It continues:

If the ~$1.4 trillion of gold reserves held by central banks grows at a similarly modest 2% rate per year, the expected value of bitcoin would be roughly $10,000 assuming a 25% chance it captures half the total value of future gold reserves … The upside potential for bitcoin is immense assuming it captures even a modest portion of the total assets held in offshore bank accounts, the investible gold market, and central bank gold reserves.

While it’s easy to speculate future use cases and users of bitcoin, what’s indisputable is that BTC is unlike any monetary system that’s gone before. Even now, 10 years on from the Bitcoin whitepaper, new applications for BTC are being discovered. It would take a brave soul to bet against bitcoin being worth more and transacted more 10 years from now.

Do you think it’s likely that BTC will start to recover from Q1 of 2019? Let us know in the comments section below.


Images courtesy of Shutterstock and Delphi Digital


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Text-Enabled BCH Payments Now Available in 35 Countries WithCointext

Text-Enabled BCH Payments Now Available in 35 Countries With Cointext

News

Cointext has announced that its bitcoin cash wallet service has just launched in the Ukraine and Italy. Cointext is now connected to 35 countries worldwide and the wallet works on any smartphone as well as basic feature phones.

Also read: Simple Ledger Developers Publish Monthly Puzzle With Bitcoin Cash Treasure

Cointext Connects to the Ukraine and Italy

Text-Enabled BCH Payments Now Available in 35 Countries With Cointext Cointext.io is a cryptocurrency wallet that provides users with the means to send bitcoin cash (BCH) through SMS technology (text messages). The wallet gives any text-enabled mobile phone the ability to send and receive BCH without an internet connection. The company has been adding supported countries to its list over the past few months, and on Monday Cointext added service to the Ukraine and Italy. The two new regions bring the total number of countries that are Cointext connected to 35.

Because the application doesn’t require registration and all it takes to use the app is a valid text command, anyone from the supported 35 territories can send bitcoin cash via SMS. After the Ukrainian and Italian services were activated, Cointext founder and CTO Vin Armani shared some notable pictures of people in Ukraine sending BCH through text on basic feature (Nokia-style) phones.

“Cointext allows anyone with a cellular signal to access cryptocurrency — This includes all brands of smartphones and about two billion people with basic feature phones,” Armani explained.

The Cointext founder continued:

Ukraine is experiencing political instability and Italy is facing a sovereign debt crisis. Cryptocurrency provides residents with a way to opt out, and Cointext provides them with the easiest tool to begin using cryptocurrency.

Text-Enabled BCH Payments Now Available in 35 Countries With Cointext

1.7 Billion Unbanked and 2 Billion Basic Feature Phones

By referencing the Cointext website, users in the Ukraine, Italy, Argentina, France, Hong Kong, Ireland, United States, Netherlands, Sweden, Puerto Rico, and other countries can locate their access number to use the service. In order to get a wallet, users simply text the word “receive” to the access number to get a fresh BCH address. Cointext uses a variety of other text commands to send funds to another address, and another command to read the wallet’s balance as well.

BCH proponents like applications that give people the means to interact with bitcoin cash using any text-enabled phone. This is because concepts like Cointext could bring cryptocurrency accessibility to the 1.7 billion unbanked individuals worldwide. African telecom companies have been experimenting with services like Mpesa for years, giving citizens in the region the ability to leverage text-based payments. Because the Cointext service allows individuals to send and receive BCH onchain via SMS, it operates in the same manner as Mpesa. In the African continent, however, the Cointext service only supports South Africa right now. Cointext has the most presence in regions throughout Europe, the U.S., and South America.

What do you think about the Cointext application? Let us know what you think about this subject in the comments section below.


Images via Shutterstock, Cointext, and Twitter.


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