roadrunner

With no exchanges, P2P marketplaces, or escrow services in Bitcoin’s earliest days, acquiring coins wasn’t easy. You either mined them or begged someone on the Bitcointalk forum to sell to you OTC. Then, along came a developer called Gavin Andresen who created a faucet that allowed anyone to claim free BTC. Also read: Bitcoin History Part 1: In the Beginning How Gavin Andresen Turned on the Tap for Bitcoin Gavin Andresen “For my first Bitcoin coding project, I decided to do something that sounds really dumb,” wrote Gavin Andresen. “I created a website that gives away bitcoins.” It was June 2010 and, in an era when obtaining BTC wasn’t easy, Andresen’s idea proved to be very smart. For the nascent cryptocurrency community to grow, it was essential that bitcoin be distributed as widely as possible. Only through having skin in the game, and sending and receiving BTC, would it be possible for people to understand Bitcoin and for it to grow from an idea into a global phenomenon. Bitcoin faucets were the original airdrops, and Andresen’s was the first faucet. To begin with, it dispensed 5 BTC per visitor, each of whom was required to do nothing more than complete a captcha. The notion of receiving a king’s ransom in BTC for little more than visiting a webpage seems outlandish today, but back then, 5 BTC was worthless in dollar terms. “It only gives 5 coins [a day],” complained the second forum user to reply to Andersen’s post (the first was bitcoin pizza guy Laszlo). Satoshi was impressed though, enthusing: Excellent choice of a first project, nice work. I had planned to do this exact thing if someone else didn’t do it, so when it gets too hard for mortals to generate 50BTC, new users could get some coins to play with right away. To those who had the perspicacity to appreciate what they were taking from the tap, those bitcoins were priceless. A handful may have hodled, but the majority of claimants will have long since frittered their coins away on sites like Satoshidice and later Silk Road. Faucets such as Andresen’s were forerunners to the sort of websites where BTC could be exchanged for goods and services. The webpage for Gavin Andresen’s bitcoin faucet One thing that anyone revisiting the early Bitcointalk threads will note is the benevolence that pervaded: More than one individual found security holes in Andresen’s faucet, and one drained his wallet of BTC before kindly returning it and explaining how to patch the flaw. Through altruistic deeds such as these, bitcoin’s early adopters gave the cryptocurrency its value back then, placing community ahead of personal profit. 19,700 BTC Given Away To fuel the first faucet, Andresen loaded it with 1,100 BTC of his own. After these were disbursed, the faucet was reloaded, with early bitcoin miners and whales also donating coins. “Bitcoins are a new kind of money,” explained Andresen’s faucet website. “They aren’t created or controlled by a government (like dollars or euros), they’re created and controlled by anybody who wants to be part of the Bitcoin payment network.” “What’s the catch?” asked the last of the four questions on the developer’s website, to which came Andresen’s reply: “I want Bitcoin to be successful, so I created this little service to give you a few coins to start with.” It’s fair to say that both Bitcoin and Andresen went on to overachieve in some style. By the time the faucet had dispensed its last coins in early 2011, 19,715 BTC had passed through Andresen’s wallet. Bitcoin, meanwhile, was on the way to its first parabolic price spike, mainstream media coverage, political censure, and a world of adventure. But those are all tales for another time in Bitcoin History. Bitcoin History is a multipart series from news.Bitcoin.com charting pivotal moments in the evolution of the world’s first and finest cryptocurrency. Read part one here. Images courtesy of Shutterstock. Need to calculate your bitcoin holdings? Check our tools section. The post Bitcoin History Part 3: Turning on the Faucet appeared first on Bitcoin News. View the full article

Two United States congressmen have introduced two pieces of legislation to help prevent alleged cryptocurrency price manipulation while aiming to position the U.S. at the forefront of innovation within the digital asset industry. Also read: Chilean Court Rules in Favor of Closing Bank Accounts of Crypto Exchange Orionx Protection From Price Manipulation The Virtual Currency Consumer Protection Act of 2018 and the U.S. Virtual Currency Market and Regulatory Competitiveness Act of 2018 task U.S. financial regulators with researching means to protect retail investors from price manipulation, while staking the global economic powerhouse’s share in the evolving financial technology. Darren Soto In a joint statement, congressmen Darren Soto, a democrat, and republican Ted Budd approvingly noted the potential of virtual currencies, and the technology that powers them, to facilitate economic growth as well as the need for security guarantees for users. The lawmakers pointed out the need to “ensure that the United States is at the forefront of protecting consumers and the financial well-being of virtual currency investors, while also promoting an environment of innovation to maximize the potential of these technological advances.” In terms of the two bills, the U.S. Commodity Futures Trading Commission (CFTC), which regulates futures and option markets, as well as other financial regulators will make critical recommendations on fine-tuning the regulatory environment for consumers and businesses. The congressmen observed that the bills are particularly important following concerns raised in the New York Attorney General’s recent report on cryptocurrency exchanges, showing how they are prone to the risk of manipulation. The Wall Street Journal also recently detailed potentially abusive software, whereby bots can manipulate the price of bitcoin. The representatives said: The Virtual Currency Consumer Protection Act directs the CFTC to describe aspects of how price manipulation could happen in virtual markets and then to make recommendations for regulatory changes that can improve the CFTC’s monitoring procedures in preventing price manipulation. Driving Innovation The second bill, titled the U.S. Virtual Currency Market and Regulatory Competitiveness Act of 2018, seeks to keep the U.S. at the cutting edge of blockchain technology. The bill directs the CFTC to run a comparative study of the regulation of virtual currency in other countries and then table recommendations for the U.S. Based on the CTFC’s recommendations, the U.S. will craft for regulatory changes to promote competitiveness in the industry, with a view of providing regulatory clarity and bringing in alternatives to cumbersome regulations that may be currently discouraging innovation in virtual currencies. “For example, it asks the CFTC to clarify the virtual currencies that qualify as commodities and examine the costs and benefits of a new, optional regulatory structure that could replace the current state money transmission system,” the congressmen explained in their statement. What do you think about the planned legislation on crypto in the U.S.? Let us know in the comments section below. Images courtesy of Shutterstock. Express yourself freely at Bitcoin.com’s user forums. We don’t censor on political grounds. Check forum.Bitcoin.com. The post Bipartisan Bitcoin Bills to Step up Consumer Protection in the U.S. appeared first on Bitcoin News. View the full article

Accidental millionaire Kaique Nunes has a bug to thank after his withdrawal request of 500 reals ($128) erroneously returned a cool 137 million reals ($35.13 million) from Brazilian bitcoin exchange Bitcambio. Nunes was not too eager to part with his overnight millions when Bitcambio started contacting to effect a reversal of the transaction, suspecting an elaborate scam. Also read: Coinbase Opens Door to More Than 30 New Cryptocurrencies Fortune Bugs a Man’s Account The Brazilian walked into his fortune last month when he drafted an order for $128, and the facility responsible for the automatic computation of transactions landed him the nine-figure bug-induced surprise. The company has already cancelled the transaction but, given its unwieldy size, local authorities insisted on getting the customer’s written agreement first. “Earlier last month, I issued some normal draft orders. After a while, Bitcambio called to let me know that they had issued all this value and that they needed me to recognize a document in a notary’s office. I thought it was a coup,” Nunes told local publication Portal do Bitcoin. For him, the call could have been anything, from a scammer worming his way into a signature, to an employee at the digital asset exchange supposedly trying his hands on easy money. But Bitcambio was determined to have its own back so its workers remained on Nunes’ case, explaining to him the importance of the reversal procedure. “They said that they had already canceled, but that to complete the process it was necessary to go to the registry office, to recognize the signature and a document that they sent by email,” Nunes was quoted in the article as saying. But he had his own ways to tell whether he was not being phished – not a bad idea considering the ubiquity of elaborately coined ruses about sudden fortunes, used to manipulate would-be helpers into giving up signatures and pass codes. ‘A Mistake Really Happened’ On Dec. 4, Nunes posted on Bitcambio platform vendor Rodrigo Souza’s page, and a mutual group where he is an administrator, seeking clarification on the issue. Souza put it down to a mistake and promised Nunes that he would be compensated for committing his time and travelling for the rectification of the problem. Souza’s company Blinktrade provided the software on the exchange. “People, the mistake really happened. Kaique will be reimbursed for all the costs he has to go to the notary’s office to solve this shit. Note [it] is already being canceled,” Souza posted. He took responsibility for the mistake and committed to resolving it. “At Bitcambio everything is done strictly within the law. Mistakes happen, we are not afraid to have their attention.” Speaking to Portal do Bitcoin, Souza said efforts to get the bug-induced transaction had not gone through as client verification was required, except in the case of a lower value. Nunes has since agreed to help with the reversal and hopes the revenue service will not trouble him. What do you think about Bitcambio’s monumental error? Let us know in the comments section below. Images courtesy of Shutterstock and Coinbase. Need to calculate your bitcoin holdings? Check our tools section. The post Brazillian Bitcoin Exchange Sends User $35M in Bug-Induced Error appeared first on Bitcoin News. View the full article

In October, an early access game called Crypto Crisis was released on the digital distribution platform Steam. The recently launched title rewinds time to the year 2009 and lets players mine coins on a simulation of the Bitcoin network by utilizing historical data from the last decade. Also read: Indian Supreme Court Moves Crypto Hearing, Community Calls for Positive Regulations Simulated Bitcoin Mining Operations The new simulator game, designed by Armoured Beans, allows players to relive a “closely simulated” version of the Bitcoin network. Essentially Crypto Crisis players spawn back in 2009 and start a mining operation while improving mining equipment and selling bitcoins throughout the duration of the game. Crypto Crisis was released as an early access game, which means it’s currently incomplete, but players can still try the game as it develops. On Nov. 16 and 28 Armoured Beans published two major updates which improved the game’s maps system and added new models for utility equipment. “[You] have fallen into debt with very little to your name, and you decide to start Bitcoin mining to turn your life around — Compete for and increase your share of block rewards by building and upgrading your mining rigs while carefully managing your resources,” explains the developer’s summary of the game. The Bitcoin-infused game is very similar to simulators like Sid Meier’s “Civilization” and Will Wright’s “Sims.” Instead of conquering the world or attracting all the babes at a Sims party, Crypto Crisis users manage energy consumption, data facilities, and their mining rig’s heat output. As the game progresses, players slowly improve their mining operations by unlocking new maps and additional space in order to accumulate more bitcoin miners. Just like in the early days, when everyone could mine, the game starts you off with a basic central processing unit (CPU) to mine coins. Not long after that, players can upgrade to graphics processing units (GPU) and then facilities full of next-generation application-specific integrated circuit (ASIC) machines. Reset and Start Over At the moment there are four 3D maps available to play and over 20 different mining chassis types. There’s also a wide variety of rigs to choose from alongside more than 170 CPU, GPU, and ASIC parts. Besides dealing with buying and upgrading mining devices, users also have to deal with the cryptocurrency market. They must choose whether they hold the coins in order to gather more profit or sell them right away for immediate funding. Crypto Crisis users can also rank up while they play the mining simulation, with rankings logged on the Steam leaderboards. Developers recommend about 1 GB of storage space and at least 768 MB to 1 GB of random-access memory (RAM) for the game to run fluidly. According to Crypto Crisis reviews, Steam players seem to be enjoying the early access game development so far. One player says it’s a fun game but he’s restarted back to 2009 over 17 times because he “can’t figure out how to make enough money to stay afloat.” Another player attempting to rule the virtual mining world started off well only to find that the game was prone to freezing during play. “Actually quite enjoy this game — I have played quite a few opening scenarios to determine the best path and I finally settled on one that I have been quite successful at making money,” the player wrote. “Unfortunately, I just moved into the apartment and purchased my second 6kw generator and large A/C unit, when I selected my 3rd super gaming chassis, the system completely froze.” Getting to mine bitcoins back in 2009 is not so easy, unless you have a flying Delorean and a working flux capacitor. However, cryptocurrency fans can get a taste of what it was like with a historical simulator based on the most innovative money of our time. And unlike in real life, if players fail to become mining barons, they can always reset and start over. What do you think about the game “Crypto Crisis?” Let us know what you think about this historical Bitcoin network simulator in the comments section below. Disclaimer: Bitcoin.com does not endorse nor support any of these mentioned products/services/games. Readers should do their own due diligence before taking any actions related to the mentioned company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, games, goods or services mentioned in this article. Images via Shutterstock, Crypto Crisis, and Pixabay. Need to calculate your bitcoin holdings? Check our tools section. The post ‘Crypto Crisis’ Mining Simulator Lets Players Relive the Last 10 Years of Bitcoin appeared first on Bitcoin News. View the full article

Residents of the Herengracht, one of Amsterdam’s most famous canalside streets, have been confronted by a curious combination of illuminated letters and numbers. The large 34-character display has provoked curiosity and more than a little confusion. Part of Amsterdam Light Festival, the gaudy installation is in fact a bitcoin address with a benevolent cause attached. Also read: House of Nakamoto Opens in Amsterdam Cryptographic Code Down by the Canal Frederike Top “Code” is the name of Frederike Top’s eye-catching contribution to Amsterdam Light Festival. The 37-year-old Dutch artist, who learned her craft in Utrecht, normally creates lamps, furniture and interior designs that are characterized by playfulness, often with an element of user interaction. In “Code”, Top has taken her artwork to the streets and scaled it up significantly to create a coruscating bitcoin address in the heart of the city’s tourist district. The positioning of the artwork, affixed to the face of a former bank building, is no coincidence. As the Amsterdam Light Festival website explains, “Central control is no longer needed for digital transactions as opposed to the traditional financial world. Cryptocurrency is a real threat for governments and banks as Top highlights in her installation by positioning it in front of the enormous, closed former bank building.” Charity in the City of Crypto The BTC address used for the project, 1MA8Wopde19HbANkJHnuu76LGbooQHLnuP, which even contains the word “bank”, has an altruistic purpose: all contributions it receives will be donated to Huis van de Tijd, a foundation for elderly people with dementia. So far, 14 modest BTC donations have been made. Amsterdam has a strong Bitcoin heritage, having housed its own Bitcoin Embassy since 2014. It also recently opened the House of Nakamoto, an information center and retail store for cryptocurrencies that features a Bitcoin museum. Frederike Top’s bitcoin address artwork can be seen as part of Amsterdam Light Festival until Jan 20, 2019. The seventh edition of the festival comprises 29 illuminated artworks and 10 city stories, with the lights switched on between 5 p.m. and 11 p.m. daily. Walking tours take visitors around the installations, which can also be viewed by bicycle or boat. Amsterdam Light Festival What are your thoughts on Bitcoin-themed artworks such as this? Do you think they help to raise awareness of cryptocurrency? Let us know in the comments section below. Images courtesy of Amsterdam Light Festival. Need to calculate your bitcoin holdings? Check our tools section. The post Bitcoin Address Illuminates Amsterdam’s Lights Festival appeared first on Bitcoin News. View the full article

The ongoing drama surrounding the opaque operations of Tether throughout 2018 has driven the proliferation of similar pegged currencies, leading to USDT’s dominance over the stablecoin markets waning. Despite this shift, USDT trade volume has risen 100 percent since tether’s dramatic decoupling from its dollar peg in October. Also Read: Buffett Bet 2.0: Asset Manager Wagers Crypto Fund Will Beat S&P 500 Tether Loses Stablecoin Crown Amid Controversy At the start of 2018, USDT accounted for approximately 94 percent of the entire stablecoin market. According to Diar, Tether’s dominance fell to 74 percent as of December 2018. As of this writing, Tether is the seventh largest cryptocurrency by market capitalization with a circulating supply of 1.85 billion USDT, down from over 2.8 billion on Oct. 7, 2018. Continual speculation regarding the opaque nature of Tether’s operations and accounting, punctuated by a crash that saw the price of the so-called stablecoin drop to $0.88 on Oct. 15, paved the way for rival dollar-pegged cryptocurrencies to grow their market share. The major stablecoin competitors to emerge have been Trueusd (TUSD), Paxos Standard (PAX), Circle’s USD Coin (USDC), and Dai (DAI). Tether Decoupling Drives Demand for Stablecoin Alternatives On Oct. 14, one day before Tether’s dramatic decoupling from its dollar-peg, tether was the eighth largest market cap with a circulating supply of 2.66 billion USDT and a 24-hour volume of $2.02 billion. The second largest stablecoin, trueusd, was then the 48th largest crypto by capitalization with a circulating supply of 135.3 million TUSD and a 24-hour volume of $11.75 million. Dai comprised the 97th largest crypto with an outstanding supply of 60.8 million DAI and a 24-hour volume of $4.2 million, and paxos ranked 176th by market cap with a supply of 23.75 million PAX and a 24-hour volume of $21.3 million. Data indicating the circulating supply of Circle’s USDC as of Oct. 14 could not be found, however, Coinmarketcap recorded USDC as having a market cap of approximately $24 million and 24-hour volume of roughly $1.2 million on Oct. 17. USDT Supply Falls 30% in Two Weeks On Oct. 28, roughly two weeks after USDT crashed to $0.88, tether still boasted the eighth largest market cap but the circulating supply of USDT had fallen by approximately 30 percent, with a 24-hour trade volume of $1.68 billion. Meanwhile, the supply of trueusd had grown 30 percent to 175.45 million to rank as the 45th largest cryptocurrency by market cap, with $26.4 million worth of TUSD changing hands during the preceding 24 hours. The supply of USDC had grown nearly 420 percent to rank it as the 58th largest crypto with 124.2 million outstanding tokens, but 24-hour volume had fallen to $642,196. Paxos had grown 305 percent to rank as the 69th largest capitalization with a supply of 96.1 million and a 24-hour volume of $24.8 million. The supply of dai had grown 9 percent to 66.5 million despite dai slipping one place to rank as the 98th largest crypto asset and 24-hour volume falling to $3.3 million. Stablecoin Rankings Today As of Dec. 7, trueusd is the 25th largest cryptocurrency by market cap with a circulating supply of over 200 million and a 24-hour volume of $52.5 million. USDC now closely follows, ranking 26th with a supply of nearly 181.2 million and a 24-hour volume of $25 million. Paxos is currently the 27th largest crypto by capitalization with a circulating supply of 167.6 million, but boasts a larger 24-hour trade volume than its immediate competitors with $86.75 million. Dai now ranks as the 63rd largest cryptocurrency despite its circulating supply falling by 54.7 million. $10.6 million of dai has changed hands in the last 24 hours. Despite suffering a significant drop in circulating supply and dominance over the stablecoin markets, the 24-hour trade volume for USDT pairings has doubled since Tether’s brief decoupling from the dollar, and now stands at over $4 billion a day. Do you think that USDT competitors will continue to gain stablecoin market dominance? Share your thoughts in the comments section below! Images courtesy of Shutterstock At Bitcoin.com there’s a bunch of free helpful services. For instance, have you seen our Tools page? You can even lookup the exchange rate for a transaction in the past. Or calculate the value of your current holdings. Or create a paper wallet. And much more. The post USDT Volume Up Despite Tether’s Stablecoin Dominance Dropping appeared first on Bitcoin News. View the full article

Coinbase has announced that it plans to list over 30 cryptocurrencies, with many more to follow. In its largest listing spree to date, the California-based exchange will add dozens of cryptocurrencies in the coming months, including dai, mana and neo. Moving forward, Coinbase ultimately plans to add over 90 percent of “all compliant digital assets.” Also read: SEC to Decide Fate of Vaneck Solidx Bitcoin ETF by Late February Coinbase Embarks on a Listing Blitz On Dec. 7, Coinbase shared an ambitious plan to list scores of digital assets. The seven cryptocurrencies it currently supports, BCH, BTC, ETH, LTC, ETC, ZRX, and BAT, will soon be complemented by over 30 more. A company blog post explained: “Coinbase’s goal is to offer support for all assets that meet our standards and are fully compliant with local law. Over time, we intend to offer our customers access to greater than 90% of all compliant digital assets by market cap.” While focused on ERC20 tokens, the listing blitz will also include assets operating on other networks such as NEO and XRP. Ripple’s native cryptocurrency had long been a source of speculation, with both the company and its token-holders eager for XRP to be added to the dominant U.S. exchange. While their wish will now come true, ripple will have to share the limelight with many other tokens scheduled to be added around the same time. Coinbase to Compete With Token-Rich Exchanges Such as Binance One of the main drivers behind Coinbase’s aggressive listing policy will be the desire to claim a slice of the trading volume being absorbed by token-rich exchanges such as Binance, which operates 393 markets. Okex has 415 and Huobi 290 trading pairs. Coinbase made record profits last year, but its financials for 2018 will show a major drop in revenue as market conditions have reduced the appetite among retail investors for cryptocurrencies such as BTC, ETH, and BCH. The full list of cryptocurrencies Coinbase has shortlisted for addition comprises cardano (ADA), aeternity (AE), aragon (ANT), bread (BRD), civic (CVC), dai (DAI), district0x (DNT), enjincoin (ENJ), EOS (EOS), golem network (GNT), iost (IOST), kin (KIN), kyber network (KNC), chainlink (LINK), loom network (LOOM), loopring (LRC), decentraland (MANA), mainframe (MFT), maker (MKR), NEO (NEO), omisego (OMG), poet (POE), quarkchain (QKC), augur (REP), request network (REQ), status (SNT), storj (STORJ), stellar (XLM), ripple (XRP), tezos (XTZ), and zilliqa (ZIL). “Some of these assets may become available everywhere, while others may only be supported in specific jurisdictions,” concluded the blog post. Coinbase Pro has since announced that it will begin accepting deposits for civic, district0x, loom, and mana ahead of trading commencing. What are your thoughts on the 30 cryptocurrencies Coinbase intends to list? Let us know in the comments section below. Images courtesy of Shutterstock and Coinbase. Need to calculate your bitcoin holdings? Check our tools section. The post Coinbase Opens the Door to More Than 30 New Cryptocurrencies appeared first on Bitcoin News. View the full article

Cryptocurrency exchange Gemini announced the launch of bitcoin cash (BCH) support and detailed that BCH will be available for trading on the platform this weekend. Bitcoin cash supporters have been waiting for Gemini to list BCH since the fork on Aug. 1, 2017. Beginning Saturday, at 9:30 a.m. EST, customers will be able to deposit bitcoin cash into their Gemini account in order to trade. Also read: Previously Inactive Whales Are Moving Large Amounts of BTC Gemini Exchange Adds Bitcoin Cash Support Bitcoin cash fans found out on Dec. 7 that the New York-based trading platform Gemini was adding BCH to the exchange interface this weekend. It’s been 15 months since the Aug. 1 BCH fork, and proponents have been waiting for what seemed like forever for Gemini to list the coin. The exchange will add bitcoin cash with five trading pairs which include USD, BTC, ETH, LTC, and ZEC. Gemini’s vice president of engineering, Eric Winer, detailed that BCH seeks to “build on the goal of the original Bitcoin and become an electronic cash system.” Furthermore, in light of the recent Nov. 15 hard fork which resulted in a split and the birth of BSV, the company explained that the BCH ticker will be assigned to the ABC side of the fork. We are pleased to announce that Bitcoin Cash (BCH) is now available on Gemini! On Saturday, we will begin accepting Bitcoin Cash deposits, and trading will open across all currency pairs on Monday. For more information, please visit our blog on @Medium https://t.co/KchBr1wUc3 — Gemini (@Gemini) December 7, 2018 BCH Will Be Available for Gemini’s Trading and Custody Services, but No BSV Support Bitcoin Cash, a fork of the Bitcoin network, was recently forked into two distinct networks and blockchains: Bitcoin ABC and Bitcoin SV — At this time, we will only be providing support for the Bitcoin ABC network and we will be referring to it as Bitcoin Cash with ticker: BCH,” detailed Winer’s post. The engineering executive also noted the company had added replay protection and continued by stating: Any cryptocurrency sent to Gemini over a blockchain that we do not support, such as Bitcoin SV (BSV), will be invalid and irrecoverable. We are continuing to evaluate Bitcoin SV over the coming weeks or months, and we may or may not choose to support withdrawals and/or trading of Bitcoin SV in the future. Of course, BCH proponents were pleased to hear that the trading platform was finally adding bitcoin cash. Moreover, on Dec. 6, the bitcoin cash fork BSV jumped ahead of BCH as far as coin market capitalization is concerned. However, since the Gemini announcement, BCH has temporarily reclaimed the fifth position but both assets have been toe-to-toe in price over the last 48 hours. A preview of the BCH trading engine on Gemini. Trades will open tomorrow, Dec. 8, 2018, at 9:30 a.m. EST. Gemini’s Winer further detailed that the company worked closely with the New York State Department of Financial Services (NYSDFS) in order to list BCH. Winer and Gemini associates believe the New York company is “the world’s most regulated cryptocurrency exchange and custodian.” Bitcoin cash will also be available to Gemini’s cryptocurrency custody business model which aims to attract institutional investors. What do you think about Gemini adding bitcoin cash (BCH) to the company’s trading and custody services? Let us know what you think about this subject in the comments section below. Images via Shutterstock, Gemini, Twitter, and Pixabay. Need to calculate your bitcoin holdings? Check our tools section. The post After Year-Long Wait New York-Based Exchange Gemini Lists Bitcoin Cash appeared first on Bitcoin News. View the full article

The U.S. Securities and Exchange Commission (SEC) has delayed its decision on the Vaneck Solidx bitcoin exchange-traded fund (ETF), which will trade on Cboe BZX Exchange. The SEC has received more than 1,600 comments and will make a decision by February next year. Also read: Indian Supreme Court Moves Crypto Hearing, Community Calls for Positive Regulations New Decision Date The SEC announced on Thursday that it has designated “a longer period within which to issue an order approving or disapproving the proposed rule change” by Cboe BZX Exchange to list and trade shares of Vaneck Solidx Bitcoin Trust. The SEC stated that the delay is “so that it has sufficient time to consider this proposed rule change.” Cboe BZX Exchange filed this proposed rule change on Jun. 20 and, on Sept. 20, the SEC instituted proceedings to make a decision on it. The SEC wrote in its Thursday’s announcement: The commission, pursuant to Section 19(b)(2) of the [Securities Exchange] Act, designates February 27, 2019, as the date by which the Commission shall either approve or disapprove the proposed rule change. According to the Securities Exchange Act of 1934, the SEC can extend the time to make a decision on an ETF up to 240 days after the date of its publication in the Federal Register. This proposed rule change was published for notice and comment in the Federal Register on July 2. “February 27, 2019, is 240 days from that date,” the commission wrote. The SEC also revealed: As of December 6, 2018, the commission has received more than 1,600 comments on the proposed rule change. Meeting With SEC A meeting was held on Nov. 26 between officials of the SEC and representatives of Cboe BZX Exchange Inc., Van Eck Securities Corp., and Solidx Management Llc. They discussed the proposed rule change for Vaneck Solidx Bitcoin Trust’s ETF. In its presentation submitted to the SEC, Solidx wrote that the “futures markets [for bitcoin] perform a valuable role in price discovery,” adding that “the empirical evidence indicates that the spot and futures prices are cointegrated … this is evidence of a well-functioning capital market.” The company proceeded to show the commission that there is a “significant market” for bitcoin futures, citing the case of Breakwave Dry Bulk Shipping ETF which the commission approved in December last year. Applying the analysis used in the Breakwave approval order, the company asserted: When compared to the dry bulk shipping market there is no question that the bitcoin futures market is a significant, regulated market. Solidx also wrote, “there is no question 100% of bitcoin futures trade on ‘well established, regulated markets that are members of ISG [intermarket surveillance group],'” such as the CME and the Cboe Futures Exchange. Moreover, the company told the SEC that “several properties of bitcoin and the underlying ecosystem make it less susceptible to manipulation than other commodities that underlie already approved ETPs [exchange-traded products].” Recently, SEC Chairman Jay Clayton spoke about key upgrades he needed to see in cryptocurrency markets before he is comfortable with a bitcoin ETF. Do you think the SEC will approve this bitcoin ETF in February next year? Let us know in the comments section below. Images courtesy of Shutterstock, Cboe, Van Eck Securities Corp., Solidx Management Llc. Need to calculate your bitcoin holdings? Check our tools section. The post SEC to Decide Fate of Vaneck Solidx Bitcoin ETF by Late February appeared first on Bitcoin News. View the full article

In this edition of The Daily, Coinbase customers in certain regions can now link their Paypal accounts to withdraw fiat and sell cryptocurrencies. Also, Russia’s third-largest bank is working to launch a digital asset management service in Switzerland, and Koinex, India’s leading crypto exchange, has set up a new development center in Bengaluru, the country’s IT hub. Also read: Poloniex Offers Institutional Accounts, Okex Launches ‘Perpetual Swap’ Coinbase Offers Paypal as Withdrawal Option Leading U.S. cryptocurrency exchange Coinbase has added support for Paypal as a payment method for withdrawals, allowing users to directly transfer fiat funds into their Paypal accounts. The availability of the withdrawal option is dependent on an individual’s country of residence. An announcement published on its website detailed that Coinbase has introduced the ability for customers to link their Paypal and Coinbase accounts. Once implemented, Coinbase customers will able to either withdraw fiat currencies to Paypal, or sell their cryptocurrencies and use the Paypal account to receive the fiat money. To take advantage of the service, users need to ensure they have completed all identity verification steps on Coinbase and that their listed country is correct. Then they will have to go to ‘Settings’ and click “Link a New Account” if using the desktop platform, or “Add a Payment Method” in the mobile app. After selecting Paypal, they will be prompted to log in to their Paypal account. Currently, Coinbase customers in supported regions can only use Paypal to withdraw fiat or sell cryptocurrency. Purchases of digital assets with Paypal are not available yet. Gazprombank Ventures Into Digital Asset Management Gazprombank (Switzerland) Ltd., the Swiss subsidiary of the Russian state-owned Gazprombank, plans to launch a digital asset management product in cooperation with two fintech companies, Avaloq and Metaco. The new financial service will be based on the Silo infrastructure, a crypto asset custodial solution developed by Metaco. According to a press release, the partners will offer their clients the ability to perform crypto transactions without the need to set up a separate cryptocurrency wallet. They will be able to monitor and control both their fiat and digital funds through their accounts. The new service will be officially launched in 2019. Gazprombank, which is the third-largest Russian bank by assets, announced its intentions to begin limited-scale cryptocurrency operations through its Swiss subsidiary earlier this year. In March, its deputy CEO Alexander Sobol said the bank is doing that in response to demand from some of its large customers. Koinex Sets up Development Center in Bengaluru Digital asset exchange Koinex, India’s leading cryptocurrency trading platform, has announced it’s inaugurating a new development center in Bengaluru, the country’s IT hub. The unit will be exploring potential implementations of crypto and blockchain technologies in various industries, the Indian daily Business Standard reported. According to the publication, the development center will work to address different issues related to finance, payments, security and banking operations on a global scale. The Mumbai-headquartered company has already secured backing from leading venture capital companies, including Singapore-based Beenext and San Francisco-based Pantera Capital. Koinex also noted it’s currently expanding its workforce. In addition, the company plans to allocate $1 million for investments in the development of the blockchain and crypto ecosystem in India. Koinex co-founder and CEO Rahul Raj expressed confidence in the diversification of the platform’s product offerings. He also emphasized that “digital assets exchanges are at the epicenter of all blockchain related development today.” Coinsquare Acquires Wallet Provider Blockeq Coinsquare, a major Canadian cryptocurrency trading platform, has acquired wallet solutions provider Blockeq for $12 million. According to an announcement, the crypto exchange plans to take advantage of the technology developed by Blockeq in order to expand its products and services using the Stellar Network. The startup has so far released a number of private stellar wallets, including desktop versions for MacOS and Windows, as well as mobile apps that are currently available on both Apple App Store and Google Play Store. After the acquisition, Blockeq will continue to operate as a Coinsquare subsidiary and a separate entity. What are your thoughts on today’s news tidbits? Tell us in the comments section. 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. The post The Daily: Coinbase Adds Paypal Withdrawals, Gazprombank to Manage Crypto Assets appeared first on Bitcoin News. View the full article

In the last 24 hours, many leading cryptocurrency markets have broken down to post new lows for 2018. The bloodshed has seen BCH fall below $100 for the first time ever, while the market cap of ETH has fallen below $10 billion for the first time in over a year. The total capitalization of the combined cryptocurrency markets appears on the verge of testing $100 billion, currently sitting at $107.5 billion. Also Read: International Cooperation ‘Critical’ to SEC Action Against ICOs BTC Posts New Low for 2018 BTC has broken below support at the local low at approximately $3,500, posting a new low for 2018 of $3,300 on Bitstamp and $3,370 on Bitfinex, at roughly 10 p.m. EST. BTC currently has a market cap of approximately $59.5 billion. BTC/USD – Bitfinex – 1D The dump has also coincided with a drop in the spread between the prices on USDT and USD exchanges, with the spread between BTC markets on Bitfinex and Bitstamp currently at approximately 2%. BTC/USD – Bitstamp – 1D BTC has fallen approximately 83% when compared with the all-time highs of nearly $20,000 posted nearly 12 months ago. BCH Dips Below Double Figures For First Time BCH has dropped below $100 for the first time ever, trading as low as $96 on Kraken. BCH/USD – Kraken – 1D The sustained bearish action of recent weeks has seen the market capitalization of BCH fall below $1.8 billion, currently ranking it as the seventh largest cryptocurrency. As of this writing, BCH has shed 97% of its value when compared with its all-time high of roughly $4,000 during Dec. 2017. Looking at the BCH/BTC charts, Bitcoin Cash is currently trading at an all-time low of approximately 0.03 BTC. BCH/BTC – Bittrex – 1D XRP Tests $0.3 Despite experiencing a significant sell-off alongside the other leading cryptocurrency markets, XRP has held above the area of its 2018 low for now. XRP is currently trading at the $0.3 area, sitting roughly 20% above the $0.25 area of September’s double-bottom. XRP/USD – Bitfinex – 1D When measuring against BTC, XRP appears to be consolidating after recently breaking above the 0.00009 BTC area for the first time in six months. XRP has gained roughly 100% over BTC since mid-September. XRP/BTC – Bitfinex – 1D XRP is the second-largest cryptocurrency by market cap with a capitalization of $12.1 billion. ETH Market Cap Slips Below $10 Billion ETH also fell below $100 in recent days, hitting the double-figure range for the first time since May 2017. ETH is currently trading for approximately $85, down approximately 94% from the January high of $1,425. The sell-off saw record-breaking volume posted on Nov. 20. ETH/USD – Bitfinex – 1D When measuring against BTC, ETH is currently retesting support at 0.025 BTC for the first time since exactly one year until today. ETH/BTC – Bitfinex – 1D The crash below $100 has also seen the market capitalization of Ethereum fall below $10 billion for the first time since May 2017, with Ethereum currently ranking as the third largest cryptocurrency with a market cap of $8.8 billion. Do you think that the worst of the dumping is over for 2018, or will we see lower prices by January? Share your thoughts in the comments section below! Images courtesy of Shutterstock, Tradingview At Bitcoin.com there’s a bunch of free helpful services. For instance, have you seen our Tools page? You can even lookup the exchange rate for a transaction in the past. Or calculate the value of your current holdings. Or create a paper wallet. And much more. The post Markets Update: Leading Cryptos Grind to New Lows for 2018 appeared first on Bitcoin News. View the full article

Steven Peikin, co-director of the enforcement division of the U.S. Securities and Exchange Commission (SEC), recently described international cooperation as playing a critical role in facilitating investigations in the initial coin offering (ICO) sector. Also Read: Chinese Miners Short BTC Markets to Hedge Against Falling Prices ‘Daunting Task’ of Identifying Misconduct Speaking at Harvard Law School, Peikin described the SEC’s enforcement division as having the “daunting task of ferreting out misconduct and, where appropriate, recommending civil enforcement actions that variously seek injunctions or cease-and-desist orders, penalties, disgorgement of ill-gotten gains, suspensions and bars of bad actors, and the temporary suspension or delisting of securities.” Peikin stated that collaboration with international regulators is “critical” to the SEC’s ability to investigate and take action against ICOs. The operators of ICOs are typically located outside of the U.S. and raise funds from “a broad base of investors both inside and outside the U.S.” Quebec Regulator Played Key Role in Plexcoin Case Peikin said that the SEC generally sees two types of securities law violations from token offerings. “First, we see ICOs that meet the definition of a security, but are being sold, brokered, or traded to U.S. investors without complying with the registration requirements of the federal securities laws. Second, we see ICOs that appear to be simply outright frauds — where the issuers are using excitement around the crypto-asset space to simply rip off money from investors,” he said. Peikin stated that the international assistance received by the SEC in regulating the ICO sphere has been “essential.” As an example, he noted how cooperation with the Autorité des marchés financiers in the Canadian province of Quebec led to the SEC charging two Canadian residents for their role in the fraudulent Plexcoin token sale. He added that the commission will continue to work with other international regulators “to develop pending ICO investigations.” Increased Popularity of ICOs Obscures Risks Peikin said that in recent years, ICOs have “exploded from a mere concept to a phenomenon.” He added that the global ICO industry has grown “some 22,000 percent” in just two years, comparing the “more than $22 billion” raised by ICOs in 2018 with the “less than $100 million” raised in 2016. “The growth in the ICO market can obscure the fact that these offerings are often high-risk investments,” Peikin stated. “The issuers may lack established track records. They may not have viable products, business models, or the capacity for safeguarding digital currencies from theft by hackers. And some of the offerings can be simply outright frauds.” What is your response to Peikin’s comments regarding the need for international cooperation in investigating ICOs? Share your thoughts in the comments section below. Images courtesy of Shutterstock, sec.gov, Wikipedia At Bitcoin.com there’s a bunch of free helpful services. For instance, have you seen our Tools page? You can even lookup the exchange rate for a transaction in the past. Or calculate the value of your current holdings. Or create a paper wallet. And much more. The post International Cooperation ‘Critical’ to SEC Action Against ICOs appeared first on Bitcoin News. View the full article

Cryptocurrency asset manager Morgan Creek Digital is betting $1 million that its crypto fund will outperform the S&P 500, calling the challenge Buffett Bet 2.0 to mimic the billionaire investor’s famous bet. The wager is expected to be taken by “someone who is bullish on the S&P 500, or someone who thinks cryptocurrencies are worthless or overvalued.” Also read: Indian Supreme Court Moves Crypto Hearing, Community Calls for Positive Regulations Recreating Buffett’s Wager Morgan Creek Digital is recreating Warren Buffett’s famous $1 million wager. However, “unlike the famous value-investor, Morgan Creek is betting against the S&P and placing its faith in the 10-year performance of cryptocurrencies,” Cnbc reported on Thursday. Anthony Pompliano, Morgan Creek Digital’s co-founder and partner, was quoted as saying: Whoever takes the other side will likely be someone with the same outlook as Buffett. It’ll be either someone who is bullish on the S&P 500, or someone who thinks cryptocurrencies are worthless or overvalued. Buffett took a $1 million bet using his own money against asset manager Protégé Partners in 2007. He wagered that a passive investment in the S&P 500 would outperform a sample of five actively managed hedge funds picked by Protégé Partners. “Buffett won that bet in 2017, with the S&P returning about 7 percent compounded annually versus a 2.2 percent from the hedge funds,” the publication wrote. Calling the challenge “Buffett Bet 2.0,” Morgan Creek Digital is inviting anyone who believes that the S&P 500 will outperform its index fund over a decade to take the other side of the bet, the news outlet detailed. The company’s $1 million will be funded by its partners. Pompliano said the intention is for the winner to donate the proceeds to charity. Crypto Fund vs. S&P 500 Morgan Creek is betting that its Digital Asset Index Fund will outperform the S&P 500 over a 10-year period starting Jan. 1, Cnbc described. The fund, available to accredited U.S.-based investors, requires a minimum investment of $50,000, carries a management fee of 2 percent, and can be redeemed monthly with 15 days’ notice. Its custodian is Kingdom Trust. Pompliano explained that this index fund was structured to give similar exposure to the S&P 500, but with cryptocurrencies. It was launched in partnership with Bitwise Asset Management. Bitwise also manages three other crypto funds, two of which were launched on Wednesday. The Digital Asset Index Fund tracks the Morgan Creek Bitwise Digital Asset Index. Its 10 constituents as of Aug. 27 are BTC (77.5%), ETH (11.1%), BCH (2.4%), LTC (2.3%), EOS (2.2%), ZEC (1.0%), XMR (1.0%), DASH (0.9%), IOTA (0.7%), and NEM (0.7%). Pompliano was further quoted by Bloomberg as saying: Bitcoin and crypto assets have been the best-performing asset for the last 10 years … They have beat the S&P 500, and we believe they will continue to do so for the next 10 years. What do you think of Morgan Creek Digital’s bet? Do you think crypto will outperform the S&P 500? Let us know in the comments section below. Images courtesy of Shutterstock and Morgan Creek Digital. Need to calculate your bitcoin holdings? Check our tools section. The post Buffett Bet 2.0: Asset Manager Wagers Crypto Fund Will Beat S&P 500 appeared first on Bitcoin News. View the full article

The price of bitcoin core (BTC) has dropped considerably over the past few months, significantly affecting individuals and organizations that mine the cryptocurrency. According to recent reports, many miners in China are now short selling bitcoins to hedge against falling digital asset prices. Also Read: Markets Update: Cryptocurrencies Are Still Blood Red Some Chinese Miners Are Short Selling BTC Due to the recent low prices of many cryptocurrencies, mining has become less profitable. Back when digital asset prices were higher, miners would hold coins for longer periods of time, but one Chinese miner believes this is no longer the case. Earlier this week, miner Jin Xin told a Chinese-language news outlet that many of his fellow miners have been short selling BTC to hedge against bearish market conditions. “If I mine 30 coins in the next month, while the price may continue to fall by another 10 percent according to the current trend, I shall place a short order on the exchange to sell them at the current price, but deliver one month later,” Jin said. The Chinese miner further explained that a large number of local miners are short selling as an act of “self-defense.” Jin said that unless they short sell BTC, some miners will be “ultimately eliminated.” He also explained that he has been purchasing secondhand miners and using them until the machines reach the point of unprofitability. He then dismantles them and sells off the parts. If cryptocurrency market sentiment becomes bullish again, he said that he will purchase more machines and repeat the cycle. The BTC hashrate has declined considerably over the last three months. Shorting, Selling Mining Rigs and Relocating There’s been a lot of discussion about mining profitability lately because of low digital asset prices. Hashrate has been shifting and SHA256-mineable coins like bitcoin cash (BCH) and BTC have seen a significant decline in overall global hashrate. The BTC network, for instance, has lost upward of 22 exahash since last September. There have also been local reports of SHA256 miners being sold by the kilo to hedge against operating losses. But some miners are not giving up so easily and are attempting to relocate, according to a recent study published by Coinshares. Although BTC prices were just above $3,500, BTC/USD short positions rose to 37,216 orders on Dec. 6, 2018. Chinese miners short selling digital assets is unusual, because the practice of shorting financial markets has been frowned upon in the country since 2015, even though there are rules that still facilitate the practice. Bitcoin miners in China may be following the direction of gold miners in the country, as they have been accused of the same short-selling methods. Speculative short-selling practices in China’s gold and silver markets have broken records this year, according to analysts. And on Dec. 6, even with BTC prices just above the range of $3,500 per coin, data from BTC/USD shorts on the Hong Kong-based Bitfinex exchange touched all-time highs. What do you think about Chinese miners short selling to hedge against falling cryptocurrency prices? Let us know in the comments section below. Images via Shutterstock, Blockchain.com, Trading View, and Pixabay. Want to create your own secure cold storage paper wallet? Check our tools section. The post Chinese Miners Short BTC Markets to Hedge Against Falling Prices appeared first on Bitcoin News. View the full article

Cryptocurrency exchange Wex, successor of the infamous BTC-e, has a new owner. Dmitry Havchenko, a former Ukrainian entrepreneur turned separatist fighter, has reportedly bought the coin trading platform through a family member. He now wants to restore it and also to track down the lost “Vinnik’s treasure.” Also read: BTC-e Operator Alexander Vinnik to Go on Hunger Strike, Lawyer Says Wex Sold to Former Pro-Russian Fighter in Ukraine Wex’s operator, Singapore-based World Exchange Services, has been officially acquired by Havchenko’s daughter, 29-year-old Darya, BBC Russian Service reported. Local authorities did not allow her father to register the company under his name, probably because of his participation in the armed conflict in the region of Donbass. Wex has been practically out of service for months, with reports of very limited activity and only a few coins available for trading and withdrawal. A number of users have already informed Russian police they are unable to withdraw their funds from the platform. Wex recently lost its .nz domain and after changing its web address several times is currently hosted on another domain, wex1.in. The exchange inherited BTC-e, once the largest cryptocurrency trading platform in the Russian-speaking world, which was relaunched under the Wex name in mid-September 2017. Toward the end of last year, its daily volume reached $80 million and it was among the top 20 digital asset trading platforms in the world, according to data from Coinmarketcap, quoted by RBC. World Exchange Services, reportedly registered by one of BTC-e’s biggest clients, Belarusian native Dmitry Vasiliev, kept BTC-e’s interface and user accounts, although it has denied any connection with the previous operator, Seychelles-based Canton Business Corp. According to some reports, one of the supposed founders of BTC-e, simply known by his “admin” nickname, has also been involved in the rebranding. In the summer of this year, Havchenko made his first attempt to acquire Wex but the deal failed. According to U.S. authorities, BTC-e has been used to launder billions of dollars, including cryptocurrency stolen in the Mt Gox hack. Its suspected co-owner Alexander Vinnik was arrested in Greece last summer and is awaiting the outcome of his extradition trial. He is wanted for a number of crimes in the U.S., France and his native Russia, but has always maintained his innocence, claiming he was only consulting BTC-e. Recently, Vinnik went on a hunger strike to protest his treatment by the Greek judiciary. Tracking ‘Vinnik’s Treasure’ Dmitry Havchenko Dmitry Havchenko, also known by his wartime call sign “Moryachok,” now wants to restore Wex and establish its headquarters in Crimea, the Autonomous republic which seceded from Ukraine and joined the Russian Federation. He told the BBC he plans to use the platform to provide financial support to other unrecognized pro-Russian entities in the post-Soviet space, including the two self-proclaimed republics in Eastern Ukraine, Donetsk and Lugansk, Transnistria in Moldova, and Abkhazia and South Ossetia in Georgia. “Our goal is to fight the domination of the dollar,” Havchenko declared. The new owner also promised to restore the funds lost by Wex users. “The main task now is to return the missing crypto assets. A whole team of lawyers and collectors will be working to achieve that,” he said speaking to the BBC. Havchenko hinted he could also seek help from Russian law enforcement agencies. However, he declined to give any timeframe as to when the exchange might reopen. Another goal set by the entrepreneur is to track down the digital funds that disappeared after BTC-e went offline, the so-called “Vinnik’s treasure.” He was referring to money accumulated from exchange fees collected by the platform as well as users’ funds that were not withdrawn after its demise. The BBC is quoting different estimates of the total amount which range from $150 to $500 million. According to the report, BTC-e was working with at least 15 entities registered in different offshore jurisdictions, from Cyprus to Belize, and using a number of bank accounts around the world, including one with the National Investment Bank of Mongolia. Many have been searching for Vinnik’s treasure, including the U.S. government. In 2017, the Treasury Department’s Financial Crimes Enforcement Network decided to fine the exchange $110 million and Vinnik another $12 million for various violations of U.S. anti-money laundering laws. What are your expectations for the future of the Wex cryptocurrency exchange? Share your thoughts on the subject in the comments section below. Images courtesy of Shutterstock, Smartmockups, YouTube. Need to calculate your bitcoin holdings? Check our tools section. The post Report: Troubled Crypto Exchange Wex Finds New Owner appeared first on Bitcoin News. View the full article

Cryptocompare, the cryptocurrency market data aggregator, has published its monthly exchange review for November 2018, offering insights about the latest changes in the global market using transaction data from over 70 trading venues. Also Read: IRS to Face Record Number of Crypto-Related Loss Claims Key Findings in the Report The authors of the report found that spot volumes represented 75 percent of the total market volumes in November, with futures volumes making up the remaining 25 percent. Platforms that charge trading fees controlled almost 90 percent of the daily spot volume, with transaction-fee mining exchanges at just 8 percent and venues operating with no-fee models at a mere 2 percent. Trading on fiat-to-crypto exchanges constituted only a third of daily spot volumes, with the rest on pure crypto-to-crypto venues. “We have seen great interest in our monthly reports and are constantly adding new features to our regular analysis,” said Charles Hayter, CEO of Cryptocompare. “Real-time, accurate cryptocurrency market data remains crucial to our universe of retail and institutional investors, as we see more assets migrating to the digital format due to its immediacy and friction-less global nature. Our report is designed to safeguard data accuracy and integrity, to ensure consistency and confidence in the market.” Korea Takes the Lead for Now Cryptocompare found that Korean Won (KRW) dominated BTC to fiat spot volumes last month, representing 50% of all volumes on average. In total, South Korea-based exchanges produced the highest total daily volumes with a combined $1.4 billion, overtaking Malta-based exchanges at a combined $1.2 billion trading volume during the month of November. The above follows directly from Bithumb overtaking Binance as the largest spot exchange. The Korean trading platform saw an incredible 284% increase in volumes from the average of $323 million for the previous two-month period. Bithumb reached a total of $1.24 billion in November, with Binance at just $641 million and ZB coming in at third place with $560 million. In contrast, the report also notes that Bithumb attracted a significantly lower number of daily visitors than similarly-sized exchanges and that its daily visitors decreased in November. And an analysis by Cryptocompare into its BTC to KRW volumes shows that the exchange’s trading volumes appear to follow from Bithumb’s “Super Airdrop Festival” and “Special Gift” promotional events. Cryptocompare’s Aggregate Pricing Index (CCCAGG) Exchanges by 24-hour volume. Will Korean trading volumes drop down next month? Share your thoughts in the comments section below. Images courtesy of Shutterstock. Verify and track bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. Also, keep up with your holdings, BCH and other coins, on our market charts at Satoshi’s Pulse, another original and free service from Bitcoin.com. The post Bithumb Overtook Binance as Largest Spot Exchange by Daily Volumes in November appeared first on Bitcoin News. View the full article

In a little over a month, one of the most eagerly anticipated cryptocurrency projects in recent times will launch. There will be no ICO or premine, and, like the transactions themselves, the project team are highly private. Grin, the first network to utilize Mimblewimble cryptography, has wide-ranging implications for privacy that could ultimately shape the future of the Bitcoin network. Also read: Previously Inactive Whales Are Moving Large Amounts of BTC Grin and Beam Will Give Privacy Purveyors a Lot to Smile About Grin and Beam are two projects that will make use of Mimblewimble, a form of cryptography whose applications include facilitating private transactions. Of the pair, Grin has garnered the most attention from bitcoiners. One reason for this is that the success of new privacy protocols could pave the way for Bitcoin Core or Bitcoin Cash to adopt similar tech. That possibility remains some way off, but in the meantime, there are other reasons why Grin has intrigued the Bitcoin community. Observers have noted the similarities between the launch of Grin with that of Bitcoin and Monero. Grin has a largely anonymous team, no founders’ rewards, and a community spirit that harks back to the early days of Bitcoin, when proponents were more interested in creating something useful than posturing and profiting. While Grin will certainly attract its share of speculators, its technology is its primary talking point. “Grin has no amounts and no addresses,” explains its website. “Transactions can be trivially aggregated … It’s not controlled by any company, foundation or individual. The coin distribution is designed to be as fair (but not gratis) as is known to be possible.” The Magic and Mystery of Mimblewimble At the heart of Grin, as well as Beam, the latter described as a “Scalable confidential cryptocurrency,” is Mimblewimble. Named after a Harry Potter spell also known as the Tongue-Tying Curse that prevents an opponent from casting theirs, Mimblewimble enables the bulk of a blockchain’s past transaction data to be removed. It first surfaced on the #bitcoin-wizards IRC channel back in 2016, proposed, fittingly, by a pseudonymous developer known as Tom Elvis Jedusor, named after Voldemort’s real name in the French edition of Harry Potter. Intriguing as Mimblewimble’s origins are, it’s what the so-called Tongue-Tying Curse can do in the here and now that’s had tongues wagging. “Mimblewimble collapses all transactions within a block into a single block-wide transaction,” explains Jordan Clifford in “Behind Mimblewimble”. He continues: “It uses a modified version of Confidential Transactions so that the balances are stored as cryptographic commitments rather than publicly visible amounts.” Because Mimblewimble does away with conventional addresses, sender and receiver essentially have to agree to transact before broadcasting their actions to the network. With the amount that has been sent masked, it is extremely difficult for third parties to eavesdrop. This is in stark contrast to networks such as Bitcoin, where “blockchain voyeurism” is a very real thing. What Mimblewimble Means for Bitcoin Like many cryptographic technologies to have emerged over the last decade, Mimblewimble’s origins can be traced back to Bitcoin. For one thing, it uses Dandelion, a technology that was originally designed for Bitcoin, as a means to obfuscate transactions by routing them through a series of network hops. Due to the decentralized design of Bitcoin, network upgrades are few and far between. “Move slow and break nothing,” is basically the mantra. Bitcoin is still a long way from introducing privacy-enhancing technology, and there are many who believe that, due to pressure from institutional investors and regulators, it may never be possible to broadcast fully anonymous transactions directly on the BTC blockchain. Schnorr signatures, a scaling technology which can help to combat spam attacks, have a greater chance of being introduced first. This could provide a stepping stone, however, for the addition of Coinjoin or alternative privacy tech based on Mimblewimble. Given the potential applications for a Bitcoin network with optional private transactions, it’s no wonder that Grin and Beam are attracting so much interest. The Beam mainnet launch is due this month, while Grin’s is set for Jan 15, 2019. Both networks will provide a fascinating insight into the capabilities of Mimblewimble, two and a half years after it was conceived. What are your thoughts on Grin and Mimblewimble? Let us know in the comments section below. Images courtesy of Shutterstock and Jordan Clifford. Need to calculate your bitcoin holdings? Check our tools section. The post What Grin and Mimblewimble Mean for the Future of Bitcoin Privacy appeared first on Bitcoin News. View the full article

Earlier this week, armchair sleuths began pointing out that large amounts of cryptocurrency from long-dormant addresses have been on the move. For instance, one wallet that’s been inactive since its inception in 2013 moved 66,452 BTC — worth around $245 million — to an unknown address. Hours later, a few more addresses from the top 20 rich list moved another $728 million worth of BTC. Also read: Eight Historic Bitcoin Transactions More Than $1.5B Moved From Dormant BTC Wallets Cryptocurrency markets have been dreadfully bearish lately and have lost considerable value. Some people have blamed whales, as those who hold large quantities of digital assets are known, for dumping coins on markets to scare people enough to panic sell, so they can then scoop up more at cheaper rates. Traditionally, during such bearish times, bitcoin enthusiasts have concocted all kinds of crazy theories about these massive holders. But it doesn’t help when big whales actually start moving large amounts of BTC from wallets that have been inactive for years. On Tuesday, according to data from the Whale Alert bot and various blockchain explorers, more than $1 billion worth of BTC was shifted out of four dormant addresses to other wallets. The following day, more than 151,000 BTC — valued at over $562 million — was moved from other long-inactive wallets to a number of previously unknown addresses. But big holders of cryptocurrency are not just moving BTC. Large sums of ETH, XRP, BCH and all of the stablecoins have also been shifting around. In one instance on Dec. 5, a bitcoin cash transaction worth around $13 million was done for less than a penny. And the night before the BCH hard fork on Nov. 15, an address moved more than 1 million BCH ($300 million) to another wallet. Internet detectives later discovered that the owner of the wallet that shifted 66,452 BTC had actually moved a whopping 608,000 BTC, valued at roughly $2.5 billion. According to one person investigating the matter, the 608,000 BTC was moved by one entity in a five-day period to roughly 76 different wallets. “The coins didn’t move out since 2013-2015,” explained a Twitter user named Spiry. Whale Watching in Crypto Bear Markets Whale sightings are a hot topic this year, as people have noticed a number of big movements in recent months. Back in February, most cryptocurrencies had already lost 60 percent of their value after touching all-time highs in mid-December 2017. At the time, news.Bitcoin.com reported that the top 100 biggest BTC addresses had made a lot more money due to the bearish decline. In fact, many of those whales had sold their holdings one to three months prior to the big dips in value, only to later gather more coins once they had become cheaper. Then in May of this year, cryptocurrency enthusiasts once again started talking about Nobuaki Kobayashi, the Mt. Gox trustee who had previously revealed plans to sell tens of thousands of BTC and BCH that had been held in the custody of the Japanese court system. Mysterious movements of large sums have fueled a lot of speculation during the past year of continuous price declines. Similar whale movements and big BTC settlements were also seen during the bear market of 2014-15. But at that time, instead of talking about whales like the Mt. Gox trustee, bitcoiners were mainly discussing the U.S. Marshals Service’s sale of thousands of BTC that had been seized in the Silk Road bust. There are a lot of similarities between then and now — whales moving coins to wallets and exchanges are not out of the ordinary. What do you think about the recent reports of whales moving large sums of BTC and other coins? Let us know in the comments section below. Images via Shutterstock, Twitter, Whale Alert, Pixabay, and Jamie Redman. Need to calculate your bitcoin holdings? Check our tools section. The post Previously Inactive Whales Are Moving Large Amounts of BTC appeared first on Bitcoin News. View the full article

Joseph Christinat, the vice president of Nasdaq’s media team, has confirmed that the exchange will soon launch bitcoin futures. In a recent interview with a newspaper in the U.K., Christinat revealed that the platform plans to start offering bitcoin futures contracts within the first half of 2019. Also Read: Chilean Court Rules in Favor of Closing Bank Accounts of Crypto Exchange Orionx Nasdaq Waiting for ‘Go-Ahead’ From CFTC Christinat told the Daily Express that the world’s second-largest stock exchange by market capitalization expects to launch bitcoin futures trading in the first six months of the coming year. “Bitcoin Futures will be listed and it should launch in the first half of next year,” Christinat said, adding that Nasdaq is currently “waiting for the go-ahead” from the U.S. Commodity Futures Trading Commission (CFTC). “There’s been enough work put into this to make that academic. We’ve seen plenty of speculation and rumors about what we might be doing … so, here you go — we’re doing this, and it’s happening.” Exchange Unfazed by Cryptocurrency Bear Market Christinat claimed that Nasdaq remains committed to ensuring the launch of bitcoin futures, emphasizing the company’s long-term perspective on the cryptocurrency industry. “We got into the blockchain game five years ago,” Christinat stated. “When the technology first popped up we just leant out of the window and shouted ‘hey come over here’ right at it.” Christinat also said Nasdaq has devoted a significant amount of resources toward launching bitcoin futures. “We’ve put a hell of a lot of money and energy into delivering the ability to do this and we’ve been all over it for a long time — way before the market went into turmoil, and that will not affect the timing of this in any way. No. Period. We’re doing this no matter what.” Do you think we will see the launch of Nasdaq’s bitcoin futures before the second half of 2019? Share your thoughts in the comments section below. Images courtesy of Shutterstock The Bitcoin universe is vast. So is Bitcoin.com. Check our Wiki, where you can learn everything you were afraid to ask. Or read our news coverage to stay up to date on the latest. Or delve into statistics on our helpful tools page. The post Nasdaq Confirms Plans to Launch Bitcoin Futures in First Half of 2019 appeared first on Bitcoin News. View the full article

Node40, a developer of bitcoin tax-reporting software, expects the U.S. Internal Revenue Service (IRS) to receive a record number of cryptocurrency-related tax return claims this year, as it predicts that many investors will decide to declare their losses. Also Read: G20 Leaders Declare Commitment to Regulate Crypto Assets Pros and Cons of Reporting Cryptocurrency traders hit by considerable price declines in 2018 now have a strong incentive to report their activities to the authorities, in order to offset their losses against other tax liabilities. However, Node40 warns that doing so could have long-term consequences for investors. For example, if an individual reports particularly high losses, they may be questioned about where the money came from to begin with. “It is clear that, with the huge falls in cryptocurrency markets during 2018, many people will be weighing up whether this is a good opportunity to reveal the losses they have suffered,” said Perry Woodin, co-founder of Node40. “Having not reported their crypto activity up to now though, those choosing to reveal losses this year will need to report their crypto positions every year from now on, giving the tax authorities much better visibility of people’s crypto involvement.” What You Need to Know Reporting taxes based on inaccurate calculations in the U.S. could result in penalties of up to 40 percent and tax courts often place the burden of proof on the individual rather than on the IRS. So it’s important that people who choose to report this year have written records of all transactions they took part in, including accurate gains or losses, as well as proper cost basis assignments. If you use accounting software to generate these documents, make sure that it can recover historical trade activity from all the exchanges and wallets you have ever used. “There is a lot for individuals to consider when it comes to crypto accounting and their tax returns,” said Sean Ryan, co-founder of Node40. “For example, ‘hodlers’ will have a completely different set of circumstances to traders, while those receiving crypto from forks and then selling will also have a unique situation to deal with.” Is reporting crypto losses worth the risk? Share your thoughts in the comments section below. Images courtesy of Shutterstock. Verify and track bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. Also, keep up with your holdings, BCH and other coins, on our market charts at Satoshi’s Pulse, another original and free service from Bitcoin.com. The post IRS to Face Record Number of Loss Claims, Says Crypto Accounting Firm appeared first on Bitcoin News. View the full article

In a landmark judgment, the Supreme Court of Chile has ruled that state-owned Bancoestado was justified in closing the accounts of cryptocurrency exchange Orionx without explanation. The judges ruled that the bank acted in compliance with laws on money laundering and terrorist financing, a threat allegedly posed by censorship-resistant, decentralized cryptocurrencies. Also read: Finma: Crypto Startups Can Handle up to $100M Deposits in Switzerland Cryptocurrencies Lack ‘Intrinsic Value’ Cryptocurrencies such as bitcoin are not legally recognized in Chile, but they are not banned, either. Nonetheless, the ruling has significant implications for relations between banks and crypto exchanges. Commercial banks can now shut down exchange accounts without notice, while pointing to laws on money laundering and terrorist financing. According to local media reports, the Supreme Court claimed that digital assets lack “physical manifestation” and “have no intrinsic value.” It also took issue with the fact that they are not controlled or issued by governments or companies. “These characteristics and elements determine, therefore, the current impossibility for the bank to comply with the aforementioned obligations,” said the court in its judgment. “It prevents it from knowing in depth (of) the financial activities related to cryptocurrencies developed by the appellant, the most relevant characteristics of its operations, the foundations on which these are supported and, finally, if their amounts are excessive or not.” The court added: It is precisely this impossibility of knowledge and of fulfilling the duties that weigh on the bank, which gives support to the decision to close the bank account of the plaintiff, which consequently cannot be called arbitrary. Bank Cuts Ties With Crypto Exchanges Bancoestado closed the accounts of Orionx in March, claiming that it did not want to “operate with companies that are dedicated to the issuance or creation, brokerage, intermediation or serve as a platform for the so-called cryptocurrencies.” The decision was sudden and was meant to affect three digital asset exchanges — Orionx, Buda and Crypto Mkt. Eventually, a notice of closure was only sent out to Orionx. The trading platform challenged the decision in court. Bancoestado was reportedly one of only a few banks remaining that provided financial services to exchanges in Chile. Both Buda and Crypto Mkt have threatened to create their own digital bank to fill this void. Shutting Down Competition According to Chilean publication Emol, the Supreme Court “rejected” Orionx’s appeal because it was “clear that the respondent, by ordering the closure of the bank account, did not” act “in an arbitrary and illegal” manner. It said the closure did not “cause Orionx deprivation, disturbance or threat in the legitimate exercise of any of the constitutional guarantees…” Commercial banks in some parts of the world are using money laundering laws and terrorism-funding regulations as convenient excuses to cripple cryptocurrency transactions. In Nigeria, for example, Union Bank has shut down customer accounts that it suspected of having links to virtual currency. Several exchanges in Brazil have also had their accounts frozen on similar charges. Banks can claim to be acting in accordance with the law, but it is also clear that they are acting in self-interest to eliminate competition. Compared to bank transfers, cryptocurrencies have proven to be a more efficient, faster and cheaper way of sending money across borders. For example, transfers sent on the Bitcoin Cash network generally cost under $0.10 for any amount. That compares with anything above $3 for popular debit and credit cards such as Visa or Mastercard. What do you think about the decision of the Supreme Court in Chile? Let us know in the comments section below. Images courtesy of Shutterstock. Express yourself freely at Bitcoin.com’s user forums. We don’t censor on political grounds. Check forum.Bitcoin.com. The post Chilean Court Rules in Favor of Closing Bank Accounts of Crypto Exchange Orionx appeared first on Bitcoin News. View the full article

Cryptocurrency exchange Poloniex is now offering institutional accounts and we’ve covered the announcement in The Daily. Also, Okex is launching a new derivative product, while crypto derivatives exchange Erisx has raised $27.5 million and Nasdaq has confirmed that it’s planning to launch bitcoin futures next year. Also read: Binance Shows DEX Preview, Ohio to Attract Blockchain Startups With Big Investment Poloniex Announces Institutional Accounts U.S.-based cryptocurrency exchange Poloniex has revealed that institutional accounts are now available on its platform. According to a blog post on Medium, institutional clients can take advantage of a large selection of crypto-asset trading pairs, as well as dedicated support and robust API services. The Circle subsidiary also said that it won’t charge fees on BTC/USDC trades until the end of this month. The announcement further notes that Poloniex is focused on meeting the advanced trading needs of financial institutions. It is the latest crypto trading platform to turn its attention to institutional clients, following the lead of exchanges such as Binance and Coinbase. It hopes to attract them with higher withdrawal limits and customer support provided by a team of professional account managers. Okex Launches New Derivative Product Okex, currently the second-largest cryptocurrency exchange by daily volume, has launched a new derivative called “Perpetual Swap.” In a recent announcement, the Malta-based digital asset trading platform explained that the product represents a peer-to-peer virtual derivative. Perpetual Swap has been created to allow traders to speculate on the direction of the price of major cryptocurrencies. The new instrument resembles futures contracts, as it allows traders to take long or short positions to profit from or hedge against fluctuating asset prices. On the other hand, there is no expiry and settlement occurs on a daily basis, so traders can hold positions without time limits and withdraw their profits at any moment. According to the press release, they can leverage up to 100x. Crypto Derivatives Exchange Erisx Raises $27.5M New crypto derivatives exchange Erisx has announced the closing of a $27.5 million series B funding round with the participation of major financial institutions and leading representatives of the crypto industry. The new investors include Nasdaq Ventures, Fidelity Investments, Monex Group, Consensys and Bitmain. The crypto startup is developing a single platform for regulated digital asset futures and spot contracts. It is already registered with the U.S. Commodity Futures Trading Commission (CFTC) as a regulated futures exchange and expects to secure a license to operate as a clearing organization. Erisx wants to launch the spot and futures contracts in the second quarter of 2019. The exchange also plans to introduce support for deposits, withdrawals and trading of several leading cryptocurrencies — bitcoin core (BTC), bitcoin bash (BCH), ether (ETH) and litecoin (LTC). Nasdaq Confirms Reports About Bitcoin Futures A representative of Nasdaq, the world’s second-largest stock exchange, has confirmed reports about its plans to launch BTC futures in 2019. “Bitcoin futures will be listed and it should launch in the first half of next year,” Joseph Christinat, vice-president of Nasdaq’s media team, told the British Daily Express. He noted that the exchange is currently waiting for the go-ahead from the CFTC. “We’ve seen plenty of speculation and rumors about what we might be doing, but no one has thought to come to us and ask if we can confirm it, so, here you go — we’re doing this, and it’s happening,” Christinat added. He also revealed that Nasdaq has been focusing on cryptocurrency and blockchain technology for some time, despite this year’s market losses. “We’ve put a hell of a lot of money and energy into delivering the ability to do this and we’ve been all over it for a long time — way before the market went into turmoil, and that will not affect the timing of this in any way,” Christinat stressed. What are your thoughts on today’s news tidbits? Tell us in the comments section. 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. The post The Daly: Poloniex Offers Institutional Accounts, Okex Launches ‘Perpetual Swap’ appeared first on Bitcoin News. View the full article

Bitwise Asset Management has launched two new cryptocurrency funds, one of which only invests in BTC. The launch “is driven by inbound client interest and investor dissatisfaction with existing options,” the company says. The market downturn has also given investors “a unique opportunity to enter the market at prices many thought we’d never see again.” Also read: Indian Supreme Court Moves Crypto Hearing, Community Calls for Positive Regulations Two New Funds Bitwise Asset Management announced on Wednesday that it has launched two new funds: the Bitwise Bitcoin Fund and the Bitwise Ethereum Fund. The former only holds BTC and the latter only ETH, in addition to “any meaningful hard forks and air drops,” the company states. According to the announcement: The launch of the funds is driven by inbound client interest and investor dissatisfaction with existing options, many of which carry premiums, charge exit fees, have lockups, and/or charge expenses to the fund outside the stated management fee. The company explained that 100 percent of the funds are held in cold storage. Kingdom Trust is the custodian of both funds. Contributions to the bitcoin fund can only be done by “U.S. bank wires and BTC,” Bitwise’s website shows. Starting on Wednesday, two share classes are available for both funds. The first, aimed at institutional investors, has “an all-in expense ratio of 1.0% and a minimum investment of $1 million,” the company described. The other has “an all-in expense ratio of 1.5% and a minimum investment of $25,000.” Subscriptions and redemptions are accepted every Wednesday, “with no lockups, withdrawal fees, or performance fees,” the announcement details. Existing Index Funds Current constituents of Bitwise 10 Index. The two funds launched on Wednesday are the company’s second and third strategies, the announcement clarifies, adding that the first is “the broad-market Bitwise 10 Private Index Fund.” This fund tracks the cryptocurrencies in the Bitwise 10 Index, “which is a basket of the largest coins, weighted by 5-year diluted market capitalization and rebalanced monthly,” its website describes. The constituents of this index are currently BTC, XRP, ETH, XLM, BCH, EOS, LTC, ZEC, XMR, and DASH. In addition to the Bitwise 10 Index, the company has three other indices: the 20 mid cap, the 70 small cap, and the 100 total market. Furthermore, the company has partnered with Morgan Creek Capital Management to offer investors another index fund called Digital Asset Index Fund. According to its website, this fund “tracks the Morgan Creek Bitwise Digital Asset Index.” Its current constituents are BTC, ETH, BCH, EOS, LTC, ZEC, XMR, DASH, IOTA, and NEM. Current constituents of Digital Asset Index Fund. Clients Are Interested Bitwise CEO Hunter Horsley commented: The 68% drawdown in bitcoin prices this year has given investors a unique opportunity to enter the market at prices many thought we’d never see again. He added that, while “an ETF [exchange-traded-fund] has not yet been approved, investors and advisors like the fund format because it’s professionally managed and simplifies access to best-in-class custody, trading, reporting, and tax preparation, and allows for the safe capture of events like hard forks and airdrops.” The company’s global head of research elaborated: Our clients have been adding to their positions throughout the downturn, and many who’ve been following the space for a while are using this opportunity to finally come in. What do you think of Bitwise’s various crypto funds? Let us know in the comments section below. Images courtesy of Shutterstock, Morgan Creek Capital Management, and Bitwise Asset Management. Need to calculate your bitcoin holdings? Check our tools section. The post Bitwise Launches Bitcoin Fund, Driven by Client Interest appeared first on Bitcoin News. View the full article

Nicolas Maduro’s move to increase the price of the petro, the country’s oil-backed cryptocurrency designed to counter inflation, has sparked intense debate. Experts and tech-savvy Venezuelans alike are less than enthusiastic about the Venezuelan president’s decision. Also read: Maduro Orders Price of Venezuela’s ‘Cryptocurrency’ to More Than Double Venezuelans Unimpressed by President’s Latest Proclamation Venezuelans have blasted President Nicolas Maduro and his new cryptocurrency after the leader of Venezuela upped the petro’s price last week. A number of Venezuelans and experts told news.Bitcoin.com that the idea of a petroleum-backed cryptocurrency was a bad idea from the start and that the government never truly had any idea what it was doing – with one even saying that it was just a trick to launder the government’s dirty money. Last week, President Maduro said that the price of the petro, his country’s national “cryptocurrency,” had been increased from 3,600 sovereign bolivars to 9,000. The wallet for the petro is still unavailable but the Venezuelan government continues to sell the digital currency and issue certificates of purchase to buyers. But experts are skeptical on whether the cryptocurrency can even be trusted, and Venezuelans working in the field of technology have said they would never use it. Fabian Camacho, a 28-year-old software developer and systems engineer now working in Colombia, said: “I wouldn’t plan to use [the petro] and I don’t believe the exchange houses use them in Venezuela – they prefer to buy dollars to resell them and play with the exchange rate that is handled here according to the price of the peso compared to the bolivar and the dollar.” He added: “I don’t have faith in any ideas of the government and that [petro] crypto coin is one more move to steal more money.” Venezuelan Expats Unenthusiastic Tech business owner Gabriel De La Rosa, 28, who lives in Madrid, told news.Bitcoin.com he had living proof that no one in a position of power knows how the currency will work. “My sister worked directly with the country’s ombudsman,” he explained. “No one in the government had any idea about cryptocurrencies, or how to use them. No one knows how you can even link the price of petroleum with cryptocurrencies.” He continued: No one, absolutely no one, has any idea how it will function. And no one will accept a currency that they don’t have confidence in. So really, it doesn’t have any value. Another Venezuelan working in tech in Colombia, who wished to remain anonymous, told news.Bitcoin.com that the petro was 100 percent a scam – and that it was a good way for the government to launder money. Venezuela’s government has been accused of rampant corruption and even of operating as a “mafia state” by some, with criminals penetrating state institutions. Experts have also continued to criticize the crypto, saying it has no real use due to who is managing it. Venezuelan economist and the director of Ecoanalitica, a Caracas-based economic research organization, told news.Bitcoin.com that the petro would “suffer the same fate as the bolivar,” the country’s worthless currency. He said: “In the universe of crypto coins, the issue of trust is fundamental. In the case of the petro, the promoter is the Venezuelan government because it has the country in hyperinflation. I think it is a scam, it is a measure that doesn’t materialize, and many people don’t trust it. The government has been talking a lot about the petro as a cryptocurrency or as a unit of payment, but the truth is I don’t know that transactions are being made with it.” He added that Venezuelans have utilized other cryptocurrencies to get easy access to U.S. dollars. Petro Wallet Still Not Ready Senior market analyst at Etoro, Mati Greenspan, tweeted that “If the petro is tied to the price of oil, then the president can’t announce the exchange rate on television”, adding that it “isn’t a cryptocurrency.” Launched in February, the petro is a plan to rescue crisis-stricken Venezuela, which is currently gripped by the world’s highest inflation, causing chronic food and medicine shortages. The currency is supposed to be backed by an area that holds five billion barrels of oil. But the wallet for the petro is still unavailable to the public and the links to download it don’t work. In October, a new whitepaper for the cryptocurrency said that the petro is backed by 50 percent oil, 20 percent gold, 20 percent iron, and 10 percent diamond. What are your thoughts on the petro? Let us know in the comments section below. Images courtesy of Shutterstock. Need to calculate your bitcoin holdings? Check our tools section. The post Venezuelans Remain Skeptical After President Maduro Raises Petro’s Value appeared first on Bitcoin News. View the full article

A lot of cryptocurrency enthusiasts and market observers reference websites that measure the digital asset economy by market capitalization. Now there’s a new data website, Coinmarketbook.cc, that calculates a cryptocurrency’s buy support based on order books held on various exchanges. Also read: US Law Enforcement Wants Surveillance Tools for Privacy Coins ‘Market Cap is a Lie’ There are many analytical websites that record the data of the largest digital assets by value and most of them focus on the total market valuation of each currency. Sites like Satoshi Pulse refer to the total U.S. dollar value of the number of coins that are in circulation. For instance, the price of bitcoin cash (BCH) is about $140 per 1 BCH, with a circulating supply of over 17 million coins, giving the currency a market valuation of around $2.46 billion. That places bitcoin cash markets in the fifth position among 2000+ digital assets within the crypto-economy. But Coinmarketbook measures the value of digital assets in an entirely different way, because it instead focuses on buy support for cryptocurrencies and determines the value of each coin in this manner. “Market cap is a lie and buy support tells the true story,” Coinmarketbook explains on its front page. “Buy support ratings separate investments from gambles and buy support analytics determine if the current price will hold.” These are the top seven cryptocurrencies according to Coinmarketbook. Coinmarketbook is quite different than data sites that show market caps. At the time of publication, bitcoin core (BTC) was still No. 1 on Coinmarketbook’s list, as it had a buy support rating of around 100 percent. Things get drastically different from standard market-cap sites from there, as BTC is followed by ether with 21.68 percent buy support, eos at 8.73 percent and ripple at 8.65 percent, with litecoin rounding out the top five at 3.78 percent. The statistics also show how buy support is gauged by the number of markets a coin is listed on. For example, BTC is listed on 25 markets, but other coins have upward of 35 market listings. Market Data Variance Coinmarketbook lists a lot of markets, but it doesn’t quite match the amount of exchange data used on sites like Coinmarketcap.com and Satoshi Pulse. For example, Coinmarketbook lists a total of 16 markets, including exchanges such as Bitmex, Bithumb, Huobi and Bittrex. However, the site is missing information from the top BCH exchanges by volume today, which include Binance ($12.4 million), Coinbase ($4.1 million), Hitbtc ($4 million), Kraken ($3.5 million) and Poloniex ($1.4 million). This is clear to see on Coinmarketbook’s website. However, the creator of the site recently said on Twitter that more exchange data is on the way. Coinmarketbook lists buy support for bitcoin cash, but the site is missing a lot of exchanges that trade BCH. Coinmarketbook is following the lead of a handful of other analysis sites that rank cryptocurrencies according to different criteria, such as fair market value and “honest” global trade volumes. Coinfairvalue.com, for example, is a platform that evaluates fair market value rather than focusing on speculation. The creator of the Honest Coinmarketcap spreadsheet, meanwhile, believes that global cryptocurrency trade volumes are often blown out of proportion. Trade volume figures for specific coins such as BTC and ETH are exaggerated by as much as 80 percent, while volumes of digital assets like BCH and XRP are off by 43 to 70 percent, he claims. Deceptive Order Books Given that it is missing data from a number of exchanges, Coinmarketbook should probably add more analytics to become more accurate. Cryptocurrency enthusiasts should also take assessments based purely on buy support and order books with a grain of salt. Order books can be misleading, as not all of the buy and sell orders on exchanges are real. Bitstamp’s BCH/USD order book on Dec. 5, 2018, at 11:00 a.m. EST. Order books are good to observe, but traders should remember that some orders are mere bluffs that won’t be executed. Many order books on trading platforms have plenty of orders, but good traders know that some of them are bluffs. An individual may place an order to buy or sell an asset, but that doesn’t mean he or she will execute the deal when the time comes. Some traders use phony orders to make the market move or trend in certain ways, which is why assessing a coin by this kind of so-called support can be misleading. Traders do use order book depth charts for some clues down the road, but depending on them entirely to make trades can be very risky. What do you think about Coinmarketbook.cc and how it evaluates coins by order book buy support? Let us know in the comments section below. Images via Shutterstock, Coinmarketbook.cc, and Bitstamp. Need to calculate your bitcoin holdings? Check our tools section. The post Coinmarketbook Gauges Cryptocurrencies by Buy Support Rather Than Market Cap appeared first on Bitcoin News. View the full article