Miner outflows of bitcoin have dropped to decade lows, with analysts suggesting a hoarding mentality is partly responsible.

The seven-day average of the total amount of bitcoin transferred out of miners addresses declined to 987 on Thursday, hitting the lowest level since Feb. 3, 2010, according to data source Glassnode. The previous decade low of 988 was registered on May 23.

The number of coins being sent by miners to exchanges is also at its lowest point in over a year, as noted by Glassnode in its weekly report.

It is a sign of efficient miners continuing to hoard (only selling a proportion of BTC), said Asim Ahmad, co-chief investment officer at London-based Eterna Capital.

The increase in miner holding does not necessarily have long-term bullish implications for the cryptocurrencys price. Miners tend to operate mainly on cash and liquidate their holdings almost on a daily basis to fund operations.

As such, miner hoarding could be termed as temporary deferral of BTC sales, possibly due to fears that the market lacks the strength to absorb the regular amount of supply. Essentially, they may be waiting for the market to show strength and prices to rise before realizing their profits.

The market, therefore, could face an above-normal miner supply during the next meaningful price rise. That, in turn, could put the brakes on a price rally.

Hoarding aside, the other main reason for the decline in outflows is the reduction in bitcoin being mined since Mays reward halving, said Ahmad.

Indeed, transfer volume from miner addresses fell from 2,334 BTC to 1,034 BTC in the nine days following the May 11 reward halving, which reduced the per block emission by 50% to 6.25 BTC.

That sharp decline in profitability forced out less inefficient miners, as evidenced by a drop in the seven-day average of the hash rate the total computing power dedicated to mining blocks on the blockchain. That fell from 120 tera hashes per second (TH/s) to 90 TH/s in the two weeks following halving (though its since climbed as more efficient machines were switched on).

Forced out miners, however, may return to bitcoins blockchain if prices rise sharply, making older hardware once again profitable.

Bitcoin is currently trading largely unchanged on the day near $9,370, according to CoinDesks Bitcoin Price Index.

The cryptocurrency has been largely restricted to a narrow range of $9,000 to $10,000 since mid May. The direction in which the range is breached will likely set the tone for the next big move.

Disclosure:The author holds no cryptocurrency at the time of writing.

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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Outflow of Bitcoin From Miners at Lows Not Seen Since 2010 - CoinDesk

This week Bitcoin (BTC) price has struggled to overcome resistance at $9,600 and at the time of writing the top-ranked cryptocurrency on CoinMarketCap is finding support near $9,400.

Crypto market daily performance. Source: Coin360

Technical analysis shows there is a strong support level at $9,270 and if Bitcoin price drops below it a steep pullback could occur.

To many traders the $9,000 and $9,270 levels are considered as the last lines of defence for buyers, and protecting these levels is critical to prevent another price decline to the $8,000s.

In the last 24 hours, the price of Bitcoin attempted to break below $9,270 in a rapid sell-off from $9,400 to $9,240. Immediately after it hit $9,240, BTC bounced strongly to as high as $9,450.

XBT-USD range since June 12 with $9,270 acting as a strong support level. Source: TradingView.com

Bitcoin has essentially been in the same range since June 11, with the $9,200 range acting as a support area. BTC dropped to the $9,000 level once in the past eight days, demonstrating relatively low volatility compared to May.

The lack of volatility since early June can be attributed to the strength of buyers at $9,270. Sellers are trying to take BTC back to the $8,000s but data shows bulls are defending the $9,000 to $9,200 with large orders primarily on BitMEX and OKEx.

On June 18, Bitcoin trader Edward Morra wrote that $40 million worth of limit orders were filed between $9,270 and $9,350 on BitMEX alone. The trader said:

More than $40M stacked in limit orders around $9,350 - $9,270 on Bitmex. Don't seem to be pulled for now, quite an effort needed from bears to push through it.

The abundance of buy orders in the low-$9,000 region caused BTC to recover quickly as soon as it reached $9,000 or $9,200 in the past several days but support levels can weaken after multiple retests in a short period of time.

If the $9,000 to $9,270 range breaks down, traders anticipate a steep pullback to occur in the Bitcoin market.

Cryptocurrency trader Satoshi Flipper noted that the breakdown below the $9,200 support can causea drop to the $8,600 to $8,700 support range in the near-term.

BTC/USDT 4-hour chart. Source: TradingView.com

BTC futures open interest. Source: Skew

Open interest at multiple futures exchanges is also rising as $930 million in BTC options are expected to expire on June 26. BitMEX, in particular, saw its open interest stabilize above $600 million.

This is important because when open interest reaches record levels the probability of a long or short squeeze increases in the short-term.

Thus, the market is currently at a point where traders anticipate a large price movement from Bitcoin and the upcoming $930 million BTC options expiry re-enforces the likelihood that Bitcoin price will see increased volatility over the coming week.

Bitcoin daily price chart. Source: Coin360

The overall cryptocurrency market cap now stands at $265.7 billion and Bitcoins dominance rate is 65%.

Read this article:
Bitcoin Bears Struggle at the $9,270 Support What Happens if It Breaks? - Cointelegraph

The original use case for bitcoin might have fallen flat, but the innovation it unleashed continues to push blockchain implementation forward.

NurPhoto via Getty Images

Blockchain and cryptoassets were developed, which at this point is well known, to disrupt, disintermediate, or otherwise topple the incumbent financial infrastructure. Democratizing access to financial resources and information, the argument went, was a slam dunk idea in the aftermath of the financial crisis. That said, and despite the billions of dollars invested, thousands of individuals working on the issue, and the media focus on this potential, bitcoin remains a medium of exchange only used for a small portion of its total trading volume.

Trading volume across different exchanges for bitcoin and other cryptoassets may total in the tens of billions, but utilization of bitcoin as a legitimate fiat alternative remains slower than might have been anticipated. Reasons as to why this has occurred have been documented extensively, so lets just summarize them briefly. This is not to say that bitcoin will never catch on, but as of June 2020 that simply is not the case.

The issues

First, price volatility and the near obsession over price levels discourage both retail investors and merchants from using bitcoin as an effective medium of exchange to conduct transactions. Second, and even though bitcoin is thought of as anonymous, the reality is that transactions and holdings can (and have) been traced back to real world owners. Lastly, but perhaps most importantly, the lack of understanding and the lingering association of crypto with criminal activity may lead many non-experts to steer clear.

So why is all of this good for the crypto space at large? If the flagship cryptoasset, and regardless of personal views, bitcoin has received the most coverage and is the most well known cryptoasset, falters in its initial use case, how can this be a positive? It is a positive because, and exactly because of the faltering adoption of bitcoin as a fiat alternative, the cryptoasset space has grown and developed so rapidly as a result. Bitcoin, without a doubt, is a tremendous innovation that will be celebrated for decades to come, but the issues forestalling wider adoption are being addressed by new market entrants.

Fixing the issues

The great thing about competition and free markets is that there does not need to be one singular answer, winner, or solution for every market participant. Simply because bitcoin has not caught on as a widely used fiat alternative as of 2020 does not mean the entire space will collapse and fade away. To the contrary, several separate cryptoasset sectors have emerged, and continue to grow rapidly seeking to address some of the very issues that have kept bitcoin from breaking into the mainstream.

Stablecoins have been widely discussed, but it is important to remember the fundamental issue these cryptoassets seek to address. Tether, Circle USD Coin, Paxos, and the Gemini dollar are simply the tip of the iceberg of a market that has grown to be worth billions of dollars since its introduction. Price volatility can destroy the use case of any medium of exchange, and by stabilizing these cryptoassets, stablecoins seek to lead the way to mass market adoption.

Privacy coins seek to address the fact that, even though bitcoin is pseudo-anonymous, it is definitely possible for transactions to be traced to wallet addresses, IP addresses, and eventually the participants behind these transactions. Monero and Zcash are two of the largest coins that seek to both remain in compliance with anti-money laundering (and other) regulations, while improving the privacy of cryptoasset transactions.

Central bank digital currencies may be the most recent entrant into the cryptoasset space, but despite that, the ripple effects are already being felt. Issued and governed by a central bank or other governmental entity, these cryptoassets (in theory) would operate in compliance with all applicable regulations. Better yet, the implicit backstop of governmental support would encourage individuals and merchants alike to use these cryptoassets as a legitimatized medium of exchange.

The bitcoin blockchain changed the technology, accounting, and financial markets world; that can be said without a doubt. Despite this impact, however, crypto in its original form has not been able to gain much of a toehold among consumers and business owners. Like any free market, entrepreneurs and innovative organizations continue to launch and develop new iterations of cryptoassets specifically designed to address these existing flaws.

Bitcoins original use case may have fallen flat, but those stumbles opened the door to an entire ecosystem of innovative solutions, and that is a great thing.

Read more:
Bitcoin Failed As Money, And That Is Great News For Crypto - Forbes

Isaiah Jackson, the author of Bitcoin and Black America, shares with me the story of how he found a solution with the new digital currency that originated in 2009 with the age-old problem of money, power, and racism in the United States of America. Unapologetically, Jackson, at one point in discussing how local currencies for Black communities would be more beneficial than the U.S. dollar, clarified his answer by saying, Leave us alone. I dont know how more bluntly to put it.

Talking to Jackson, I realized quickly just how much thought he has given all this. When I referenced how the greenbacks were produced in 1861 as a way to raise money for the North in Civil War, he broadened the discussion to include the Wildcat Banking era, a time when numerous types of currencies existed. He also expressed that he believes that the Federal Reserve System, created in 1913, was not the right direction for America, as Jackson explains how much value the dollar has lost since that time.

Amid discussion of what Jackson characterizes as a racist banking system, we delved into the concept of redlining, where banks would in the past literally draw red lines around communities that they wanted to avoid making loans. Jackson provided a picture of the present and future potential for digital redlining where coding in algorithms with emerging technologies like AI could produce the same results.

Finally, the highlight for this interview came when our discussion turned to the horrific irony aspect of how George Floyds arrest was over a counterfeit $20 bill. From the bill that pictures President Andrew Jackson on it, time will tell as to whether in the future a $20 bill with Harriet Tubman on it will be more or less common than Bitcoin in digital wallets for Black communities across America. For now, I present to you Mr. Jackson, author of Bitcoin And Black America, who offers a new FinTech take on a solution for Black economics.

Isaiah Jackson on his Book Tour for 'Bitcoin And Black America' at Howard University.

Jason Brett: You put two concepts together, Bitcoin and Black America, well before these riots started. Can you tell our readers a little bit about what brought you to the conclusion that your book needed a title like this and what you are trying to say.

Isaiah Jackson: So the Black America part, which is my community, for a long time, we have been distressed economically and there have been a number of solutions that have come about in our community that have not worked because we have the same median income as we had in the 60s. In my opinion, we need something totally different and dont need to keep talking about the same solutions over and over. Bitcoin has only been around the last 11 years. One of things I wanted to do was look at the circular economy that can happen with Bitcoin and apply it to the circular economy the Black community should have. Just providing solutions for us to have leverage in a system where we have not had leverage before. We dont have money usually to convince Members of Congress and we dont have leverage to keep out the police violence we have seen recently and that was the motivation to write the book initially. Going forward I want to make sure people have at least the option to have Bitcoin and to be economically successful.

Brett: Are we getting ahead of ourselves if we talk about Bitcoin or Digital Dollars before weve figured out how to increase broadband access in urban and rural areas? Without that connectivity it creates a digital divide. Is that a barrier and should the U.S. be working on developing infrastructure to solve this?

Jackson: As someone who has lived in urban communities where the phone service is poor, [I can tell you that] the phone service is worse in Black neighborhoods that are poor. Unfortunately that is a thing and the digital divide does exist. A lot of people with phones dont have laptops, but the good thing about Bitcoin is that you can use Bitcoin with just a phone and even in countries such as Nigeria and others that may not have that much tech, they have a surplus of phones. You can use Bitcoin instantly and you dont have to be very tech-savvy- just enough to download an app. The digital divide exists but Black people are very resilient and will find a way. If there is a solution to the problem, there wont be any sort of vibe that stops us.

Picture of protester at a Black Lives Matter protest after death of George Floyd holding a sign, ... [+] "The system is broken Bitcoin + Black America"

Brett: In terms of how the police are viewed, it is a lot different for Black America. Is it the same in terms of how Banks are viewed?

Jackson: Yes, and I believe its more not trusting banks by older Black people. I know a lot of my relatives and others have kept money in the mattress to save because they didnt trust banks back then. I used to think it was ludicrous- why would you not put it in a bank? Now, years later, I am starting to realize why. Banks control everything, all of the money. Its sort of a Catch-22: I may not like them but I have to use them. Some of the solutions have been Black-owned banks so that discriminatory loans can be avoided. A lot of the Black community is content with using Black banks. But in my opinion, there is still one more step to go. We still have to have leverage and they still have to adhere to the money laws we have.

Brett: One of the other ideas that has been talked about is making post offices contain banks that are part of the Federal Reserve. Do you think there would be more comfort in these communities to enable someone with a digital wallet [enabled by the post office] to hold Bitcoin and Digital Dollars?

Jackson: We could have Bitcoin ATMs placed at Post Offices. The level of trust of post offices would help people realize it is mainstream because some people are still scared. People could use stablecoin U.S. dollars for payments and Bitcoins for other things. So yes, I believe that is possible and the post office would be great.

Brett: Would you please explain how is Bitcoin different than a dollar and how is a stablecoin different than Bitcoin?

Jackson: Bitcoin is censorship resistant. It cannot be taken or stopped. It is also scarce, which creates a value proposition. Currently it is a store of value, at some point it will be a medium of exchange and then later, a unit of account. That is what our dollar is now, a unit of account and medium of exchange and it is similar to a stablecoin. A stablecoin is the digital representation of one dollar. Unfortunately we live in a system where our dollar has been devalued, over 99% since 1913. Even though we consider it stable, it does have volatility and inflation has contributed. Bitcoin is deflationary and encourages saving not spending and that is why we have seen the increase in value of Bitcoin over the years. The volatility of Bitcoin scares some people away, but however, as a savings account, it is the best-performing asset of the last decade.

Brett: Using Bitcoin would require retailers and businesses accepting them as well. How will people use it to buy groceries or basic necessities?

Jackson: Bitcoin has been added to over 100,000 businesses around the world. I think major retailers will add it- the only thing stopping them is regulation. There are third-party apps that are working to increase Bitcoin adoption, such as the Fold app. So they are one step away- they will adopt it at some point. Walmart already has a QR code in the checkout line.

Brett: During the Civil War, Greenbacks were created as paper currency. We have had tensions for years along these same lines. What should Congress do with Bitcoin and any political position that you have and how do you see that as potentially helping to solve some of the issues that exist today and help bridge the divide that exists?

Jackson: After the Civil War, we had Greenbacks and a bunch of different currencies. Their value was based on the community that used it. The number one time for opening Black businesses, and the second best time was in the late 1800s. Right after the Civil War when there were different currencies that you could choose whichever worked best for you. The ability for black-owned businesses to grow is how we got Black Wall Street and how we got Rosewood. We were able to flourish as a middle class because the currency was not controlled and we were not held to the standard that we have to use the dollar. We found a currency that worked better for us and the value goes up based on the community. That is what we are looking for. Giving people the option to use Bitcoin and other digital currencies is the same thing in digital form. Once Black people realize this is the currency that works for us, it may not be the dollar and that is fine. That is sort of the leeway we need- leave us alone. I cant say it anymore simply then that. If we are left to our devices and inflation doesnt kill our value, black people have flourished and vice versa. It is a very simple solution.

Brett: Are you struck by the fact that George Floyd was arrested for passing a counterfeit bill?

Jackson: The irony is amazing. The fact that a $20 bill is the reason for his death and sprung a lot of protests. While America printed trillions in counterfeit money of its own, The quantitative easing that has happened in this country for corporations is ridiculous. They are basically giving themselves counterfeit money and just keeping it. It is ironic. It is unfortunate. Digital payment solutions would prevent a counterfeit payment but it would have to trickle down over time because Im not saying he would have used a digital wallet but if he did, he definitely would not have a counterfeit bill involved.

Brett: So, the Bitcoin is a tech innovation that has created this ability to have digital money like in the 1800s that can allow Black communities to flourish?

Jackson: With the Bitcoin solution that I have discussed, everybody can win. Banks want control of money. People want Bitcoin. If we have a circular economy of Bitcoin, all banks have to do is accept Bitcoin businesses as customers of their banks. JP Morgan is now accepting businesses that accept Bitcoin and banks can get their profit that way. Banks would have to come up with a viable product that we would want. Banks need to go back and figure out why we need them and not vice-versa. In my opinion, it is not a knock on anybodys business. Long-term, we are going to find a solution and the banks will be left behind. Bitcoin is the best solution.

Brett: What led you to becoming an author and can you tell me more about your career?

Jackson: I went to NC State and studied Computer Science, and after college my first job was a teacher. Teachers are notoriously underpaid. I was 23 years old and barely making enough to live on, and was looking for ways to make money. I found out about Bitcoin from a roommate who was working at a financial services firm. We discussed it in 2013. Ultimately, I became a Bitcoin consultant and trader. Then I wrote the book, because 90% of my clients were Black people. I decided that I needed to write a book so people can get all of this information at the same time. The idea of the book started in 2016 when Mike Brown got killed in Ferguson. Four years later and we are back in the same place. This is a problem. Thats how I got started. Thats how the book came about. I am glad people are taking notice.

Isaiah Jackson with at the Black Blockchain Summit with

Brett: One of the important things as a compliance regulator is addressing the concern of redlining. I have done this. What about the possibility of digital redlining. Does Bitcoin already prevent that? How do we future-proof against this?

Jackson: Digital redlining will happen. CBDCs (central bank digital currencies) will be monitored under the guise of terrorism and money laundering. That is the reason why people have their money stopped. However, for some reason, people who have nothing to do with terrorism have their money stopped based on a certain amount, time periods, etc. All of those things go into digital redlining and this is censorship resistant. There is even going to be digital redlining with Bitcoin. Certain coins that move to certain addresses through exchanges are identified as being terrorist-linked and are shut down. That will move more transactions to peer-to-peer. That is why I feel like Bitcoin cannot be defeated. If you shut down one area, it is literally like plugging a hole. Nothing is ever going to stop it. Its software and if people consider it money, why regulate it? Fortunately we have a solution.

Amazon Best Sellers During Week of June 8, 2020 for Digital Currencies shows Bitcoin & Black America ... [+] in the #2 spot.

Brett: What is next for you?

Jackson: The second edition of Bitcoin and Black America is out next year. This one will be more in-depth and I will be introducing with a certain number of books. I had started my book tour last year but had to halt it due to the pandemic, but hope to start it again in August.

Brett: Thanks for your time.

Read this article:
Exclusive: New Author Of Bitcoin And Black America Talks Black Economics Amid Protests - Forbes

A pedestrian looks at an electronic quotation board displaying share prices of the Tokyo Stock ... [+] Exchange in Tokyo on June 16, 2020. (Photo by Kazuhiro NOGI / AFP) (Photo by KAZUHIRO NOGI/AFP via Getty Images)

Two major global crypto exchanges announced a joint $150,000 grant toward bitcoin development today in what represents another step forward for the industry. The equally matched grants of OKCoin and BitMEX are one of the first major private funding partnerships directly supporting bitcoin. The grant will be given in twelve monthly installments to Amiti Uttarwar, a software engineer who has a history in the bitcoin development space and is based on the open-source grant template.

Previously a software engineer at Coinbase, Amiti took time off to attend the prestigious and highly-regarded Chaincode Residency. The residency is run by Chaincode Labs, one of the premier research and development firms in crypto and has been a training ground for some of the top talent in the bitcoin development space. Fellow 2019 Chaincode Residency alumnus Fabian Jahr was the recipient of a similar previous grant by OKCoin. Amitis reputation for gritty technical achievement followed her post-residency to Xapo, where she worked as a bitcoin developer full-time.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

Elaine Song, who manages the grant program for OKCoin, spoke to the need for private firms that have benefited so greatly from the efforts of individual contributors to give back and create places where that investment in development is more sustainable. Stressing that it was in everyones best interest for the ecosystem to grow, Song said the program was open ended and would continue for the foreseeable future with the intention of making more grants.

Although there is no specific criteria for who gets selected for the grants, Song noted We are moved by and look for peoples passion in the space. With decentralization and open source development you have to really believe in what youre doing. And thats what is really going to keep the ecosystem alive, that passion. The grant comes with no strings attached, and there is no requirement for the work to benefit either OKCoin or BitMEX specifically. Amiti will be given essentially unilateral discretion in choosing her work.

Despite the passionate buy-in from OKCoins Song, the tension between for-profit firms like the exchanges and the independent, sometimes pseudonymous, cypherpunk developers doing the work from which they often benefit has been stark at times over the years. Hundreds of billions of dollars of value are transferred and stored on the bitcoin blockchain, yet there are nary more than a handful of dedicated (read: funded) bitcoin development shops in existence today. At the same time, major exchanges are doing hundreds of millions to billions of dollars in turnover a day, benefiting from demand secured by the privacy and decentralization work largely done elsewhere.

While initiatives like BitMEX and OKCoins should be lauded, it is important to remember how much work there is left to be done to foster a truly healthy, robust, and durable ecosystem. Other recent announcements such as the Human Rights Foundations Bitcoin Development Fund are easy to applaud, and dont present any immediate conflicts of interest either inherent or implied. Although fantastic, and welcome, relying solely or mostly on a few limited sources of private funding from industry players could create a bottleneck to bitcoin development over time. For something with as many diverse and varied stakeholders as bitcoin has, the inability to solve the funding gap is becoming an increasingly glaring problem. So BitMEX and OKCoin should be applauded for stepping in, especially as it is BitMEX themselves that are even tracking this data in the first place. Thats putting your money where your mouth is. But this should be viewed as a spark to ignite other stakeholders and firms to pay attention and contribute, rather than a sign of lasting triumph.

To that end, BitMEX published a timely recent piece of research titled Who Funds Bitcoin Development to which they conclude:

Although the funding situation could improve, in our view the data indicates that the ecosystem is in a reasonably strong situation with respect to developer funding, based on metrics such as the distribution of funders and transparency. Of course, progress can also be made in the distribution of funding and Chaincode Labs is now the clear leader in terms of developer funding for Bitcoin Core. On the other hand, funding is far more distributed than it has been in the past, certainly compared to the 2012 to 2014 period when there was only one significant funder,The Bitcoin Foundation.

While true that funding is more distributed than in the past, comparing resources today to those available in 2012 to 2014 misses the mark. Bitcoin was still an experimental technology at that point and, argumentatively, had not yet been proven fully viable. Today, the importance of maintaining and securing a healthy long-term ecosystem for bitcoin matters exponentially more, yet the capital dedicated to supporting that need has not even remotely kept up with the network value captured since.

As the BitMEX report notes, grant programs like these are a crucial first step as This brings much needed diversity to the group of donors, potentially improving the level of sustainability, in particular these exchanges are a new type of entity and are funding developers out of retained earnings, rather than using donations or venture capital funds. As of now though funding remains a patchwork, weighing on growth in the space. Even with more private involvement, it will be some time before the industry reaches Songs goal of trying to make crypto developer a sustainable career path.

For her part, Amiti seems thrilled to be here. After completing the Chaincode Residency, she had planned on going back to Coinbase. Instead, she found her way to Xapo, a Hong Kong-based crypto wallet and banking company founded by serial entrepreneur Wences Casares that has been backed by some of the largest investors in the space. While Xapo is known for its bitcoin debit card and crypto-friendly payments app, its also known for being an early mover in the space and giving back, most recently by sponsoring Amiti to do further development on bitcoin post her residency.

She will be sponsored for the next year now by OKCoin and BitMEX and is excited to continue the work. Theres no doubt that at least part of that work will be continuing to be a beachhead for further inclusiveness particularly of women and minority voices in the space. Although it is her unadulterated passion, drive, and technical competence that has spurred her to this point, it is notable she is one of only a handful of women developers in the space.

There have also been criticisms of the tone and demeanor of some of those in the industry, with so-called bitcoin maximalism having a negative association at times. It takes a rugged, rag-tag bunch of personalities however to get basically anything of interest done in the world these days, and Amiti downplays any division.

Although she notes that "when I was making my first contributions, I was realizing that there were no women here. As I looked at the contributors [list], I was among the first. I found that kind of ridiculous. Were trying to build a new financial system thats global, how can we build a representative system if we're missing 50% of the people." She is also quick to speak to the progress being made. Amiti goes on to talk about the positive experiences shes had so far and looks to build on over the next year.

"I've found my interactions with people in the bitcoin community to be very warm and welcoming. Definitely Twitter can portray it one way from time to time. But in my one-on-one communications the vast, vast majority have been welcoming. I'm grateful that I see my role in the bitcoin culture is to show people that this is a welcoming and wonderful place to be challenged and supported as opposed to trying to change the culture."

There are only 30-40 people who contribute to Bitcoin Core full time. Contrast this with the fact that as an industry, we are trying to build a fully functional global currency. We have a long way to go, said Amiti. With this grant, I plan to continue my efforts to make Bitcoin core more reliable, private, and understandable.

Asked why working on bitcoin fits her, she says on a personal level Im just, Im a huge nerd. I find it fun, its intellectual playspace. Its deeply intricate. Ive met some incredible, passionate people willing to share their time and mentor me. As to what she sees herself doing in five years? There was no hesitation.

"I can't imagine working on anything but Bitcoin."

Disclaimer: Rory is an active trader and investor holding positions in several cryptocurrencies as well as equities and other private investments at any point.

More:
Bitcoin Grant Marks Another Step Forward But Questions On Industry Funding Remain - Forbes

Bitcoin giveaway scams have been around for more than two years, but a new twist in tactics has helped scammers make more than $2 million over the past two months from Elon Musk's name.

The new trick involves the use of Bitcoin vanity addresses in order to give the scam more credibility in the eyes of a suspicious user.

Vanity addresses are Bitcoin addresses that incorporate a custom word in the address itself -- such as "1MuskPsV7BnuvMuHGWmmXUyXKjxp3vLZX6" or "1ELonMUsKZzpVr5Xok8abiXhhqGbdrnK5C."

Over the past month, Justin Lister, CEO of cyber-security firm Adaptiv, has been tracking the use of Bitcoin vanity addresses abusing Elon Musk's name in giveaway scams.

Lister has been collecting the addresses with the help of BitcoinAbuse, a website where users can report Bitcoin addresses abused in ransomware, extortions, cybercrime, and online scams.

In a spreadsheet shared with ZDNet earlier this week, the Adaptiv CEO said he tracked down 66 addresses that have been reported by scammed users on BitcoinAbuse.

Lister said the 66 addresses received more than 201 in Bitcoin since being created in late April 2020.

Since receiving the spreadsheet from Lister earlier this week, a 67th Elon Musk vanity address was also submitted to the BitcoinAbuse website. This vanity address held an additional 13.9 Bitcoin, which brought the total to 214 Bitcoin, a sum that now stands over $2 million at today's exchange rate.

The $2 million sum is enormous if we take into consideration the low effort required to run one of these scams.

Because BitcoinAbuse also requires users to add a short description of where they encountered the Bitcoin address, this made investigating the source of some of these scams much easier.

Based on ZDNet's review, most of the Bitcoin vanity URLs had been shared with the help of YouTube live streams.

Hackers hijacked high follower-count YouTube accounts, changed the account name and its graphics to mimic the account of a celebrity or a trusted brand, and then launched a live stream to broadcast their scam.

The scam relied on tricking users into sending Bitcoin to the scammers' address, on the promise of doubling their profits, part of the giveaway -- usually organized on the occasion of an important event in the celebrity/brand's history.

In our investigation, we found that hackers had either renamed the channels to Elon Musk's name, the SpaceX brand, or news outlets such as Euronews, seeking credibility.

The Bitcoin address was usually embedded either in the live stream itself, and users had to scan it with a QR code reader, or users were asked to visit a dedicated "giveaway" website.

But we're not reporting on something new here, with multiple of these fake Elon Musk giveaway live streams making the news this month alone [1, 2].

Bitcoin giveaway scams abusing the Elon Musk and SpaceX names have been going on all month, ever since SpaceX and Musk made the news last month for the company's first successful rocket launch carrying a live NASA astronaut crew.

Bitcoin and Ethereum giveaway scams have been around since at least February 2018, when the first such case was reported. Since then, the trick has gotten old and users have gotten better at spotting the scammers.

The role of the Bitcoin vanity address was to give more credibility to the scam and make it look authentic, similar to how "verified profiles" give more authenticity to accounts on social media sites like Twitter, Facebook, and Instagram.

The Bitcoin network doesn't have a way to "verify" addresses, so vanity addresses, which are hard to come by, are the closest thing to a "verified" Bitcoin address.

The trick of using Elon Musk vanity addresses was, obviously, successful, helping crooks net more than $2 million, but it wasn't the only one.

ZDNet also found other vanity addresses submitted to the BitcoinAbuse database and reported as being abused in similar YouTube-based giveaway scams.

We similarly found vanity addresses for SpaceX and Bill Gates. Both have been used in similar YouTube-hosted giveaway scams, with the Gates-themed addresses holding more than $100,000 in stolen funds.

In addition, we also found another Bitcoin vanity address that was not available on the BitcoinAbuse website. This one had been used for a giveaway scam that tried to take advantage of the recent launch of the Play Station 5 gaming console. Luckily, no user fell victim to such a scam.

Similar scams abusing Linus Torvald and Mark Zuckerberg's names have also been reported, along with brands like Facebook, Twitter, and even the UN.

As long as these scams have a giant return-on-investment and crooks make more than they spend setting up the scam, the "giveaway" scourge will continue to haunt cryptocurrency owners.

Users should be wary as these scams aren't limited to YouTube live streams only, and have been also spotted on Twitter, Facebook, Instagram, and more recently on TikTok -- similarly by hacking into high-follower profiles and broadcasting the scam for a short period.

In most cases, these scams are powered by hacked accounts sold on hacking forums for prices going from $5 to thousands, depending on the follower count. Taking into account that some scammers are making as much as $180,000 a day, the scams are most likely to go on for years, or until users stop falling for the scams.

Read the rest here:
Elon Musk Bitcoin vanity addresses used to scam users out of $2 million - ZDNet

Cryptocurrency does not appear to be a significant trend in terror financing in the Middle East, but a new round of U.S. sanctions aimed at Syria may tip the scales in favor of experimentation.

On Wednesday, Hezbollah leader Hassan Nasrallah said U.S. sanctions against his Syrian ally President Bashar al-Assad are an attempt to starve both Syria and Lebanon. Local black market activity related to global assets like dollars is surging, with Lebanese banks failing to meet that demand.

The Americans are pressuring the Bank of Lebanon to prevent it from putting enough dollars into the market, Nasrallah said.

To date, evidence suggests terror groups like Hamas are using only small amounts of bitcoin, at volumes far smaller than what the civilian population in the region is using. In fact, the analytics firm Chainalysis estimates most campaigns by terror groups like ISIS have raised less than $10,000 worth of cryptocurrency, less than a single Palestinian trader typically sells in a week.

That said, among the most prominent terrorist organizations in 2020, Hezbollah in southern Lebanon is arguably the most likely to benefit from using crypto. (Hezbollah is classified as a terror group by the U.S. and 17 other nations. A number of EU countries do not classify Hezbollah as a terror group.)

Randa Slim, the Lebanese-American director of diplomacy programs at the Middle East Institute think tank in Washington D.C., said she believes Hezbollah is interested in bitcoin.

No other party in Lebanon has the kind of access to financial resources nor the military infrastructure to be able to maintain its role. Were going to see Hezbollahs dominance over the political life of the country, and increasingly over the economic life of the country, Slim said, referring to Lebanons current economic crisis.

Hezbollahs power may be growing, but bitcoin doesnt appear to be playing a significant role in that so far. Slim said she hasnt seen any focus in Hezbollah-affiliated media and publications on cryptocurrency and the money from Iran mostly comes in cash. Likewise, an anonymous Lebanese bitcoiner said he hasnt seen or heard anything related to both bitcoin and Hezbollah.

Iranian government officials have repeatedly made public statements in 2020 that they are interested in using bitcoin, without saying how they plan to deploy that capital. Considering their own economic crisis at home and raging stock market, there isnt any evidence yet to suggest Tehrans crypto strategy includes terror financing.

Nasrallah frequently mentions that his group tries to avoid [cypherpunk] technology, the anonymous Lebanese bitcoiner said, because theres an enormous asymmetry between them and Israel when it comes to such technology.

Either way, Iranian funding is only a fraction of Hezbollahs finances. Middle Eastern bitcoin experts, even those with ample reason to fear extremists, are generally less concerned with the risk of terror financing than their North American counterparts.

Limited concerns

Beyond the fact Hezbollah leadership knows its longtime enemy Israel has more crypto resources, the Lebanese bitcoiner said if terrorists can get missiles they can certainly acquire bitcoin and operate their own systems.

In short, the possibility exists regardless of sanctions, which have primarily limited civilian access to global assets. As one Iraqi bitcoin trader, who also commented on the condition of anonymity, said with regards to the extremist threat in his homeland on the opposite side of Syria, the possibility of terror financing is not a convincing reason for us to be afraid of [bitcoin].

The Iraqi said the only way to deprive extremist groups of financial support is to address the deteriorating economic situation that directly affects peoples living situation. The Lebanese bitcoiner agreed.

Hezbollah is able to maintain the majority of its influence by being able to provide for the most disadvantaged individuals in the country, the Lebanese bitcoiner said.

In reference to how Hezbollah distributed American dollars to its supporters late last year, earlier in the Lebanese economic crisis, the bitcoiner said: If people had a way to manage their finances in a truly decentralized fashion, what effect would that have on Hezbollahs ability to buy loyalty with dollars?

To that end, the Iraqi trader is optimistic about bitcoins potential in the Middle East, especially places with weak nation-state structures like Lebanon and Syrias Rojava region. Lest we forget, American sanctions arent the only compliance issues in the region. Lebanese Christians and various Muslim sects, for example, may also face discriminatory obstacles and be attracted to bitcoin for this reason.

I am confident that we are at the beginning of the road and that in the near future there will be a significant improvement, the Iraqi trader said in reference to currency dynamics and free trade across the region. Its estimated hundreds of civilians across the Middle East use bitcoin to sustain themselves, although its not clear how many in total.

A lot of people that are salaried employees are now using cryptocurrency, the anonymous Lebanese bitcoiner said. In that sense, I am grateful for cryptocurrency and think it can be very useful in those contexts.

Financial crime

As of June 2020, there is more evidence to suggest fraud than terror financing in the Middle East.

According to the Washington Institute, a pro-Israel think tank, Hezbollah typically uses money laundering schemes, banking fraud and credit card scams to fund its operations. Such financial crimes are on the rise during the recession, more broadly speaking, even in the United States. Any such operations would not be unique to cryptocurrency nor Lebanon.

The most obvious illicit use case beyond run-of-the-mill scams would be Iran sending bitcoin to Hezbollah. By the most extreme estimates, such as the one published in 2019 by Israel Hayom, Hezbollah reportedly has a $1 billion military budget, out of which roughly $100 million worth of fiat is estimated to come from the Iranian government.

Local sources in Tehran said they havent heard of specific crypto exchanges working directly with governments for political transactions. The scale of terror financing, in particular between Iran and Hezbollah, would theoretically create a noticeable data surge in Beiruts and Tehrans comparably small bitcoin markets. If Hezbollah is using bitcoin, it has done so without attracting local or international attention.

For broader context, the state of Lebanon, where Hezbollah represents a political party as well as an independent militia, is estimated to have an annual budget of $2.78 billion. Chainalysis estimates crypto terror financing across the region hovers around $1 million (for Hamas and ISIS, theres not yet a comparable estimate for Hezbollah). As such, the blockchain sleuthing firm called this very limited adoption. Such cryptocurrency campaigns appear to be ineffective at best.

Based on public data about bitcoin usage in the Middle East, theres no evidence suggesting significant trading volumes are devoted to financing Hezbollah. In short, neo-Nazis may be more likely to use bitcoin than Islamic extremists.

Cash flow

Meanwhile, the Lebanese banking system is on the verge of collapse.

Hezbollah reportedly threatened to storm Lebanese banks in 2019, when the group had trouble accessing funds. Tensions between the terror group and Lebanese central bankers continue to simmer. That sentiment is commonplace. Unaffiliated protests lit a central bank building on fire last week in Tripoli, Lebanons second-largest city.

Broadly speaking, bitcoin usage has become more widespread in Lebanon during this economic crisis. Considering most Hezbollah supporters are Lebanese, the Middle East Institutes Slim said the groups supporters are probably not an exception to local fintech trends.

People on the ground do not believe regulations deserve credit for the lack of terror financing. The bitcoin traders from Iraq and Lebanon said it is simply a matter of civilians finding bitcoin more useful than extremists these days. It remains to be seen whether cryptocurrencies offer a unique value to Hezbollah.

Plus, Lebanons overall electricity infrastructure may not be mature enough for a competitive bitcoin mining industry, not to mention the digital-literacy divide that limits local liquidity. The group faces mounting economic pressure because it also operates hospitals, schools and agricultural programs with dire needs during the coronavirus crisis.

Slim said sanctions have not reduced the overall financial support for groups like Hezbollah, merely diversified the ways these budgets are managed and deployed. Despite, or perhaps because of, the perfect storm of economic uncertainty, it appears Lebanons growing bitcoin market is driven organically, among civilians, not by institutions or extremist campaigns.

Its not something, in my opinion, the Lebanese government has the technical resources to focus on and monitor, she said of bitcoin. Whatever money Iran has devoted over the years to its regional projection of power, through proxies and alliances like Hezbollah that pie, I dont think it has expanded. There are now more demands for the money.

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The Truth About Bitcoin and Hezbollah in Lebanon - CoinDesk - CoinDesk

Only 3.5 million bitcoins around 19% of the total outstanding supply are used for trading, according to a new report from blockchain analytics firm Chainalysis.

According to the report, nearly 18.6 million bitcoins have been mined as of June 2020, and the majority of this supply is being held long-term.

Chainalysis found that approximately 60% of the current supply of bitcoin is held by parties that have never sold more than 25% of the bitcoin theyve ever received. The firm categorized this supply as held for long-term investment.

Another 20% of the current Bitcoin supply hasnt been moved in five years or longer, what Chainalysis calls lost Bitcoin.

The remaining fraction is used for trading, mainly between exchanges. This amount supplies the market and helps determine the price of bitcoin, Chainalysis said.

The report suggested that bitcoin being held for long term investing could eventually end up being an important source of liquidity in the market as the cryptocurrency becomes more scarce.

The report also found that throughout 2020, around 340,000 people were active Bitcoin traders on a weekly basis. Chainalysis put these traders into two categories: retail and professional. It categorized retail traders as those depositing Bitcoin worth less than $10,000 USD at a time.

Retail transfers account for 96% of transfers sent to exchanges, the report said. Professional traders, on the other hand, accounted for much fewer weekly transfers in 2020, despite playing a larger role in controlling market liquidity.

2020The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Less than 20% of the current supply of bitcoin is used for trading, says Chainalysis - Yahoo Finance

The shock of the COVID-19 pandemic had a profound effect on the cryptospheremost famously, perhaps, on March 12th, cryptos Black Thursday, when the price of Bitcoin plummeted from nearly $8000 to under $5000 in less than 24 hours.

The Most Diverse Audience to Date at FMLS 2020 Where Finance Meets Innovation

Indeed, the pandemic brought Bitcoinits price, its functionality, and its role in the global economywas once again brought into the global spotlight.

This is why on Tuesday, June 23rd, at 15:00 CET, Finance Magnatesis gathering four leading experts from across the cryptocurrency industryKyle Samani, Diogo Monica, Nischal Shetty, and Darryn Pollockin a live webinar to discuss Bitcoin in a post-COVID-19 world.

There are a limited number of free spots still available for attendees. Click here & register now to secure yours.

Finance Magnateshashand-selected a panel of leading experts to share their insights on Bitcoins status as a safe haven, its purpose, and its correlative relationship with other financial markets.

Two of our panellists will provide insight from the institutional side of the industry, while the other two bring a global retail perspective to the discussion.

In addition to his role as co-founder and Managing Partner at Multicoin Capital, Kyle Samani is a well-known cryptocurrency researcher and analyst. Recently, his blog post on cryptos Black Thursday, entitled March 12: The Day Crypto Market Structure Broke, has been highly cited across the industrys news media.

FBS Offers a Demo Professional Account with Increased LeverageGo to article >>

Diogo Monica, co-founder and President of Anchorage, is a highly sought-after public speaker on the topics of usable security, cryptography, and distributed systems, and serves as an advisor and board member to numerous startups. He also led platform security at payments firm Square from 2011-2015.

Nischal Shetty is the founder and CEO of India-based cryptocurrency exchange WazirX, which was acquired by Binance late last year. Nischal is known as one of the premier faces of crypto in India, and is a renowned advocate for cryptocurrency in the country. Nischal also famously started the #IndiaWantsCrypto campaign on Twitter, which has been running for nearly 600 days.

Darryn Pollock is the Chief Communications Analyst at Huobi Group where he oversees communications and content strategy for global markets. Darryn has a background in journalism and has written for a number of blockchain and cryptocurrency websites including Forbes and CoinTelegraph as a senior correspondent.

The panel will be moderated by Rachel McIntosh, podcast host and cryptocurrency industry journalist at Finance Magnates.

This panel discussion presents an invaluable opportunity for you and your company to gain valuable insight into the future of Bitcoin.

This free event promises to be packed with valuable insight and commentary on the past impacts of COVID-19 and whats to come. Wed love for you to come and bring your questions, comments, and insights.

Click here to register yourself (and your friends!) as attending.

Originally posted here:
Crypto Leaders on the Future of Bitcoin: Join Us For a Free, Live Webinar - Finance Magnates