Category Archives: Bitcoin

The number of active Ethereum addresses has more than doubled since the start of 2020. Ethereum's active address count is growing at nearly twice the rate of Bitcoins.

Data from the blockchain analytics website Messari shows that Ethereums active address count has increased by 118% since the turn of the year. Bitcoins active address count, by comparison, increased by 49%.

Why are more people turning to Ethereum than Bitcoin? One obvious answerEthereum is home to the top decentralized finance (DeFi) applications.

The rise of DeFi apps on Ethereum drove the blockchains total number of unique addresses to over 100 million by early June. A July report from Dapp.com estimated that DeFi applications accounted for over 97% of all Dapp volume on Ethereum.

The 100 million figure accounts for every unique address used in a transaction on Ethereumboth senders and recipients. This, obviously, doesnt account for users who use multiple addresses, and so doesnt entirely reflect the growth of Ethereums user base.

However, data from Bitinfocharts tracks transactions that go either from or to unique Ethereum addresses. Seen below, unique active Ethereum addresses rose 160% since January 1, climbing from 208,392, to 542,458 at time of writing.

Meanwhile, Bitcoins unique active address count rose 42% in the same time, climbing from 585,047 on January 1 to 832,751 by July 10. This aligns closely with the data from Messari, and lends credence to the notion that Ethereum is currently experiencing a groundswell of renewed interest and activity.

But while the rise of DeFi has undoubtedly contributed to the rise in unique Ethereum addresses, another Ethereum-based Dapp could also be playing a major role.

As reported by Decrypt on July 5, Forsage, the most popular Dapp on activity by user count, was responsible for guzzling almost 13% of Ethereums gas. Gas is the fuel that runs Ethereum, and is used as a measurement of the price of performing computations on the network.

That means Forsagewhich the Philippines SEC has denounced as an unregistered securityis hogging 13% of the entire Ethereum blockchain. The presence of a Russian Ponzi scheme known as MMM Global has also contributed to the hoarding of Ethereums computational power in recent times. These operations usually see funds transferred from address to address, adding to Ethereums total unique address count.

Today, Forsage accounts for 12.5% of Ethereums gas usage, according to Dune Analytics, while ETH Gas Station places the figure at 15.8%.

Either way, the presence of what Ethereum researcher and developer Philippe Castonguay told Decrypt were inevitable and unstoppable Ponzi schemes should also be considered when accounting for Ethereums increased usage.

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Active Ethereum addresses growing twice as fast as Bitcoin - Decrypt

The growing number of ISA millionaires in the UK underlines the power of investing in shares to create wealth and get rich. Meanwhile, playing the National Lottery is hopeless as a wealth-generator for many, and dabbling with Bitcoin comes with massive risks.

Playing the National Lottery is a harmless bit of fun, but its no good as part of a plan to get rich. Why? Because the probability of winning a life-changing sum of money is vanishingly small.

According to the National Lottery website, the odds of getting six numbers right and winning the jackpot are one in 45,057,474. And the odds of getting five numbers plus the bonus ball are one in 7,509,579.

So maybe we should turn to Bitcoin and some of the other cryptocurrencies for our shot at making a million. I cant deny that some people have done extremely well from moves in the price of Bitcoin over the past few years.

Indeed, the first price ever recorded for Bitcoin was in October 2009 when a chap called Martti Malmi sold some for 0.09 US cents each. Peanuts, in other words. And the highest price ever recorded for a Bitcoin happened in December 2017 when it sold for $20,089. Thats loads of money when compared to the original price.

Today, the Bitcoin price is around $9,300, which is still many thousands of percent higher than its starting price. And, for me, thats one of the main problems. I see huge potential for the price to fall back down and limited opportunity for it to rise much from where it is now. Indeed, the spectacular rises of the past few years may never be repeated.

I reckon Bitcoin and the other cryptocurrencies are risky vehicles driven by nothing much other than speculation. So Id avoid them all and turn to shares and share-backed investments in a drive to create wealth. Indeed, over the long haul, studies have shown that shares on the stock market have outperformed all other major classes of asset. And I think thats a good starting point for any plan to get rich.

You can sidestep some of the risks involved with investing by avoiding speculative stocks and diversifying across several different shares. You could even invest using managed funds and trackers for a wider approach to diversification.

But if you focus on identifying good-quality underlying businesses and buy the shares at opportune moments when good value is on offer, you could do well over the long haul. Key to generating wealth is to compound your investments. So Id plough all my dividends and gains from selling shares back into more shares.

I reckon a carefully managed programme of investment in quality shares over a long period of time is a surer and better way to aim for wealth. So Id forget speculating on Bitcoin and playing the National Lottery.

The post Forget the National Lottery and Bitcoin! I reckon shares are a better way to get rich appeared first on The Motley Fool UK.

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Kevin Godbold has no position in any share mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Motley Fool UK 2020

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Forget the National Lottery and Bitcoin! I reckon shares are a better way to get rich - Yahoo Finance UK

Avoiding cheap UK shares in favour of gold and Bitcoin may seem to be a logical approach for any investor seeking to make a million. Gold and Bitcoin have risen significantly over recent months, while indexes such as the FTSE 100 and FTSE 250 have lagged their performances.

However, the track record of the stock market suggests a long-term recovery is very likely. Therefore, buying undervalued stocks today and holding them over the coming years may substantially increase your chances of becoming an ISA millionaire.

With that in mind, here are two cheap UK shares that could be worth buying today due to their potential to produce high returns in the long run. They could increase your chances of building a 1m ISA.

While many UK shares have delivered disappointing performances of late, Imperial Brands (LSE: IMB) 57% share price fall over the past five years is relatively poor.

Despite this, the companys most recent results showed it continues to produce rising revenue. For example, its sales in the first half of the year increased by 2%, with a growing market share in tobacco products boosting its financial performance. Alongside cost reductions, this suggests the profit potential for the business could improve over the medium term.

Clearly, tobacco volumes are likely to come under further pressure as consumer trends change. Furthermore, asset impairments caused a severe decline in the companys profitability in its most recent update.

However, with Imperial having strong brands that offer pricing power, as well as scope to invest in next-generation products such as e-cigarettes, it could deliver a relatively robust financial performance in an uncertain economic period.

As with many UK shares, Imperial Brands has reduced its dividend. However, it continues to offer a relatively attractive dividend yield of 10%. As such, it may yet experience further challenges in the short run, but could deliver a relatively impressive total return in the long run.

The Morrisons (LSE: MRW) stock price has outperformed many UK shares over recent months. Its down 8% since the start of the year, which is ahead of the FTSE 100s 20% decline in 2020.

The companys most recent update highlighted the rise in demand since the start of the coronavirus pandemic. For example, in the first quarter, its like-for-like (LFL) sales increased by 5.7%. This trend may persist over the coming months especially with the popularity of online shopping likely to rise.

Morrisons has invested heavily in its online offering, which could position the business for long-term growth as the gradual shift from in-store to e-commerce continues. Its balance sheet strength suggests it has the financial position to maintain a high degree of investment in its online services. It should also help it overcome what could prove to be a period of higher costs as it adapts to a changing retail environment.

Therefore, now could be the right time to add the stock to a portfolio of UK shares. Over time, they could boost your chances of becoming an ISA millionaire.

The post Forget gold and Bitcoin. Id buy these 2 cheap UK shares today to become an ISA millionaire appeared first on The Motley Fool UK.

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Peter Stephens owns shares of Imperial Brands and Morrisons. The Motley Fool UK has recommended Imperial Brands. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Motley Fool UK 2020

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Forget gold and Bitcoin. I'd buy these 2 cheap UK shares today to become an ISA millionaire - Yahoo Finance UK

Tey Elrjula is a tech entrepreneur, a refugee and the author of The Invisible Son, now available for pre-sale.

Bitcoin is good for whatever you need. Ive used it to order pizza and to build a fulfilling career, despite all types of hardships.

Ive been using bitcoin for years because my family needs it, not because I enjoy speculative trading. In 2013 I was introduced to cryptocurrencies while working with software engineers in the Netherlands. My idea was that if we created money from code, then money would become a way of communication and its value would represent the community.

I used to send money from the Netherlands to my family in Lebanon twice a month, and the fees were killing me. Even worse, the long waiting lines at money transfer shops were torture. There are still a lot of insurmountable restrictions on money transactions, especially those that exclude large populations around the world.

For example, a sizable segment of people in Saudi Arabia doesnt have residence permits and are not able to transfer money to their families in countries such as India or Pakistan. Bitcoin doesnt have those restrictions or involve exorbitant transactional charges.

Later in 2013, I started a Facebook group on bitcoin. I moderated the page and had discussions with many of the 10,000 people who came there, most of whom were from Egypt. I met a lot of interesting people in that group, such as Abdullah Almoaiqel. Abdullah is now the co-founder and partner of Rain, which is the first regulated digital currency exchange in the Middle East. The company is based in Bahrain and operates from Bahrain and Egypt.

Then, in 2014, everything started going wrong. My European residency card expired at the end of that year and there was a war going on back home. People said Hezbollah, the local militia, was fighting to keep ISIS out of Lebanon.

Technology is helping us live in a world where we need to trust less and verify more.

Half of Syria was flooding into the Netherlands back then, and smugglers were active on the other side of Europe. I bought a small book to teach me how to pray in Islam, then started to practice my prayers and listen to the Koran. I also started listening to Sayed Hassan Nasrallahs speeches, his recitals and calls to fight alongside Hezbollah in Syria. I was surrendering to my fate of being deported to Syria or Lebanon.

Sleepless nights went by, with the Facebook pages continuously broadcasting images of the brutality of war in Syria. I did not want to be part of this.

On Sept. 11, 2014, 500 migrants lost their lives in the Mediterranean Sea attempting to cross tosafe land. It was at that moment I realized how blessed I was to be in Europe, and I surrendered to the idea of becoming a refugee.

Meanwhile, I kept working on the Facebook page I ran with a top Egyptian software engineer and early adopter of bitcoin. The Egyptian bitcoin users kept me busy. I chatted with a lot of people and answered their questions on the mining process, price speculation, buying bitcoin and selling it. They knew I was moderating from Holland, but didnt know I was now partially undocumented.

I turned 30 in the camp and lied to my parents, telling them I was in my nice European apartment waiting for the immigration authorities to renew my residency. Nobody knew I was living alongside the other Arab refugees in a camp except me.

Refugees do not have IDs, so they cant have bank accounts. They dont know anyone in the Netherlands, not yet at least. Bitcoin became an even bigger part of my professional work. The constant exposure to crypto landed me translation jobs for reporters who were covering bitcoin stories.

On sunny days, I earned a few hundred euros as an escrow agent connecting buyers and sellers of bitcoin. In July 2015, I earned a technical expertise certificate from the University of Nicosia and registered on the bitcoin blockchain. Finally, I was credentialed, a professional and no longer a hobbyist.

Slowly my Bitcoin identity was overcoming my refugee identity.

The general public looks at the Bitcoin network as a gambling game in which you can lose all your money. Many meetups were starting to appear in the Netherlands. I started working as a speaker. One such event in the Netherlands was called Bitcoin Wednesday, held on the first Wednesday of every month. Slowly, my Bitcoin identity was overcoming my refugee identity.

For years to come and every time I come out onto a stage, I would ask people to put their hands in their pockets and take the coins out. In return I would give them bitcoin for the same amount. Why? Because the best way to understand bitcoin, especially after they hear the pizza story, is to use it.

Money and identity have been hand-in-hand for centuries, yet I used bitcoin without an identity. Besides my email, I did not need anything to use money and transact digitally. However, I do need an identity to present myself to the world and interact with services like education and diplomas, health care and vaccines, travel and airline tickets. Technology is helping us live in a world where we need to trust less and verify more.

I have travelled to more than 20 different European cities and a few in the Middle East delivering keynotes, public presentations and leading workshops showing organizations the digital future of education, money and business where it is built on principles ofdont trust, verify.

Bitcoin may not be useful for everything, but it sure as hell changed my entire life.

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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I'm a Syrian Refugee. This Is How Bitcoin Changed My Life - CoinDesk - CoinDesk

On July 4, 2020, the Bitcoin Cash proponent Cain published an interview with the blockchain developer, Shammah Chancellor, about a new project called Stamp Chat. At its basic level, Stamp is a prototype of a layer-2 private messaging and payment system on Bitcoin Cash. It implements stealth [plus] confidential transactions on top of Bitcoin Cash using layer-2 protocol technologies.

This week Bitcoin Cash supporters were introduced to a new interview about a tool called Stamp, an encrypted message and payment system that leverages the Bitcoin Cash (BCH) chain. Stamp was highlighted about a month earlier via a Bchignite.com livestream. The project is being developed by the software programmer Shammah Chancellor, otherwise known as @micropresident.

The project was introduced on Saturday, July 4, 2020, by the Bitcoin Cash proponent Cain (@bchcain) via the read.cash blog. Cain gives a summary of how governments today have the ability to censor our speech online, and our financial lives as well through centralized parties. The BCH enthusiast highlights how our freedom of expression is censored and monitored by the powers that be.

The fact that we are being monitored limits our freedom of thought and our freedom of expression, Cains interview stressed. You might think twice about entering something into a search engine, or posting something on Facebook or Twitter. This limits our ability to communicate and explore ideas, and this is why I am so excited by Stamp, the new Bitcoin Cash project being developed by Shammah Chancellor, aka @micropresident.

Cains post further added:

Stamp is still in its early stages and only available on testnet, but the interface already looks polished and many features like group chats and nested messages have already been deployed. According to his Github page: Stamp is a prototype of a layer-2 private messaging and payment system on Bitcoin Cash. It implements stealth [plus] confidential transactions on top of Bitcoin Cash using layer-2 protocol technologies.

Individuals who are interested in Stamp can check out the Github repository and get more familiar with the project. The Github repos disclaimer is a touch different and states: Stamp is in early alpha development stage. There will be multiple breaking changes from now until a stable release. We default to the Bitcoin Cash testnet as to protect against lost funds.

Those who are interested in testing the Stamp protocol can do so by accessing the cashweb/stamp/releases section and grabbing test coins from faucet.fullstack.cash.

The Stamp developers who contribute to the project also have a Telegram chat channel as well for people who want to learn more about the project. Shammah Chancellor also describes the Stamp project in great detail during his interview with Cain.

Stamp is the name of the wallet that uses a number of backend protocols, the developer explained. These protocols are a suite called Cashweb, with the vision being that everything online is powered by Bitcoin Cash. Fundamentally, Cashweb is powered via standard web technologies: Websockets, JWT tokens, HTTP/2. The idea being to make it easy for non-cryptocurrency developers to integrate with.

Cashweb is a [three] tier network, Shammah Chancellor continued. The first tier being Bitcoin Cash. The second tier is a keyserver network, which is used to look up, in a cryptographically secure way, important information about a Bitcoin Cash address. The third tier is a messaging system (called relay servers) which allows wallets to pass, encrypted, structured messages between them. The developer concluded:

When you add a contact to a Stamp wallet, it reaches out to a keyserver and requests your contact information. This is then verified, and used to determine which relay server they accept messages on. Once your wallet has this information, it can start exchanging structured, encrypted, messages between itself and another user.

Cryptocurrency supporters who are interested in reading the rest of the interview between Cain and Shammah Chancellor can follow this link here that stems from the read.cash blog.

On the Reddit forum r/btc, BCH proponents seemed pleased with the announcement and some people contributed to the development funding. Looks promising, an individual wrote on Reddit. I sent a bit of funding. Good luck with it.

What do you think about the Stamp project built on the Bitcoin Cash network? Let us know what you think about this subject in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons, Stamp, Read.cash, Cain

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is 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, goods or services mentioned in this article.

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Developer Reveals Layer-Two Private Messaging and Payment System on Bitcoin Cash | Technology - Bitcoin News

Bitcoin (BTC) has failed to challenge the multi-year resistance of $10,500 since the beginning of June 2020. This extended period of chop will ultimately result in one of two inevitable outcomes.

Either a massive green candle to catch bears off guard or a period of profit-taking that will see the leading digital crypto-asset fall to sub $8K levels in the coming weeks.

But what signs can we look out for to determine which direction the largest cryptocurrency by market capitalization will go?

Daily crypto market performance. Source: Coin360.com

Using the Moving Average Divergence Convergence (MACD) indicator, which on the weekly chart has historically proven to be an incredibly accurate indicator for buying and selling Bitcoin, you can see that the blue MACD line is starting to point down toward the orange signal line.

Whenever the weekly MACD does this, it signals to investors and traders to either sell or short. In the early history of Bitcoin, both bullish MACD crosses (when the blue MACD line crosses up through the orange signal line) and bearish MACD crosses (what were seeing now) were infrequent they would occur once a year maybe twice.

BTC/USD 1-week chart. Source: TradingView

However, in the last 18 months, they crossed nine times, thats once every two months on average since the beginning of the 2018 bear market.

The last time Bitcoin crossed bearish on the MACD there was a whopping 57% decline in the price of Bitcoin almost immediately after they crossed. So are we in store for yet another pullback? According to the Fibonacci levels, this could put downside targets anywhere between $7,916 and $3,850.

BTC/USD 1-day chart. Source: TradingView

On the daily chart, things are not much clearer. Its evident from the chart that $10,400 is the resistance and $8,800 is the support. How long this range continues is anyone's guess.

However, the last time Bitcoin broke through this level, the price soared by a further 32.2%, at which point $10,400 became support several times before eventually continuing its downtrend.

Right now, Bitcoin is dangerously close to the support level, which happens to be the 236 Fib. Losing this level opens up $7,900 as the first downside target.

Conversely, should the bulls take control and push past the $10,400 resistance level, the upside from the current price of $9,040 is a staggering 56%. Quite the trade if you can pull it off, but one that first needs to wait for confirmation, and this could take not weeks, but months to play out.

BTC/USD 1-hour RSI chart Source: TradingView

On a more positive note, the 1-hour relative strength index (RSI) indicator shows that buyers stepped in as it approached oversold territory around 31.40. Keep in mind, that anything below 30 is considered a strong buy signal.

However, on the higher time frames between the 12h and monthly charts, the RSI is very much in the middle, providing no clue as to which way the market is going to go. Either the bulls will take charge and push up BTC price 50% or the bears will drive the price down by an equal percentage.

There is quite literally nothing on the charts that can give an indication with the exception of the bearish MACD. However, sideways action can cause the MACD to cross if it lasts long enough.

ASIC producers market share. Source: BitMEX

In a recent report published on the Bitmex Blog entitled Battle for Asic Supremacy, you can see that the previous leaders in ASIC production such as Bitmain are losing their dominance. Having once occupied a 75% market share, new stars like MicroBT are fast becoming the new dominant force in this space.

But with mining rewards recently being halved, this particular industry looks somewhat like a financial black hole. For example, Canaans share prices tanked by nearly 50% shortly after a $90m IPO last year, and relative newcomers Ebang are seemingly desperate for cash after having their Hong Kong IPO rejected in 2018. Now, these firms are seeking a cash injection on United States soil after recently filing for a U.S.-based IPO in April 2020.

The unsurprising lack of financial interest in these companies will almost certainly be playing a role in the current price of Bitcoin.

The question this leaves me with is this: if no one is making any money from Bitcoin, what happens next? Is this a bullish or bearish thing? To me, the answer seems obvious, it comes across as very bearish.

BTC/USD 1-hour chart Source: TradingView

Using the current Fib levels on the hourly chart, the key levels to claim are the 618 at $9,420 and the 100% at $9,800. After $9,800, the last area of heavy resistance sits at $10,400.

Using the same chart and Fib levels, $8,800 is where the first level of support will be found. Losing this level at this stage of the game would open up the 382 on the daily chart, which sits around $7,600.

The views and opinions expressed here are solely those of @officiallykeith and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

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Bitcoin Price Consolidating But What Happens if $9K Support Is Lost? - Cointelegraph

A recent report from ZUBR Research explains that by 2028, retail demand for bitcoin will exceed the new supply. The report highlights that in eight years as Bitcoins supply rate decreases retail size addresses [will] begin to eat up all the new supply alone. Even the next halving in 2024 could see retail accounting for acquiring 50% of the bitcoins in circulation.

Not too long ago, cryptocurrency proponents witnessed the Bitcoin (BTC) networks third halving, which cut the block reward by 50% on May 11, 2020. Just before the third BTC halving, the active supply issuance or inflation rate was around 3.8%.

Today that number is steadily dropping and at the time of publication, BTCs inflation rate is 3.51%. On June 29, a research report published by ZUBR Research details that in eight years, retail demand will outshine the rate of issuance by a long shot.

The study called Retail Investors Steady in Physical Bitcoin Snatch-Up explains how the BTC network has entered the next reward era. With 90% of all Bitcoins already mined, the remaining supply is estimated to take nearly 120 years to come to market, ZUBR wrote. This figure the remaining 10% taking another 120 years shows just how scarce the cryptocurrency already is.

In time one of the great burdens will be liquidity and physical Bitcoins become harder to come by. The researchers findings also indicate that Covid-19 gave crypto proponents a glimpse at some potential scenarios. ZUBR Research also discussed the question of whether Bitcoin is a better version of gold or not.

The study says that investors will have to weigh this decision as demand has moved in decline for gold further extending that gap available on the market during the Covid-19 crisis. No doubt, Bitcoin saw strong demand in the wake of the coronavirus pandemic. The demand was similarly witnessed for gold, the report highlights.

ZUBR researchers add:

There is a very critical difference to gold, however. Bitcoin supply constraints will not be a result caused by black swan events (such as the global COVID-19 lockdown that shut-in mines), but the permanent perpetual nature of the store-of-value cryptocurrency that is designed to cut off new supply.

The study notes that the researchers leveraged data from the analytics firm Chainalysis. ZUBR predicts that retail demand will continue to grow this year and by 2028 the demand will be far greater than issuance.

Just like with gold markets, the demand for bitcoin while remaining scarce could send the price of BTC sky high. The next halving will sill a lot of retail and investor demand but the fifth halving will see uncontrollable buying pressure.

Extrapolating future demand at this pace points to a very dramatic shift in 2028 when Bitcoins supply rate further decreases and these retail size addresses begin to eat up all the new supply alone, ZUBR estimates. By the time the next reward era comes around in 2024, retail could potentially account for eating up over 50% of the physical supply, the researchers added.

The paper concludes by stressing:

With retail [investors] gunning hard, these supply constraints might come sooner rather than later should growth in demand from smaller investors remain as steady as it has in the past half-decade.

What do you think about the theory that retail demand will outshine bitcoin issuance in eight years? Let us know what you think about this subject in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons, ZUBR Research

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is 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, goods or services mentioned in this article.

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Demand for Bitcoin Will See a Dramatic Shift in 8 Years - Retail Investors to Eat up Entire New Supply | Economics - Bitcoin News

Data analyzing in trading market. Working set for analyzing financial statistics and analyzing a ... [+] market data. Data analyzing from charts and graph to find out the result.

Earlier today, Pfizer PFE reported that its early stage Covid-19 vaccine trials have produced optimistic results. The news sent equities and bitcoin higher, while dropping gold beneath the psychological $1,800 level.

Despite the Pfizer-led reprieve for bitcoin, its price movements since the halving have largely been disappointing, especially amidst the Feds extraordinary actions, which have benefited store of value assets like gold, historically.

The main question floating around the crypto investment world is, Why isnt price rising? Three possible explanations have floated to the top.

In 2019, a group called PlusToken, systemically scammed numerous investors throughout China to the total of more than 200,000 bitcoin, or ~ $1.84 billion, at the time of writing. Since then, the scammers have meticulously liquidated their ill-gotten gains on several exchanges. Liquidations have created a consistent and strong selling pressure to bitcoin according to notable fund manager, Travis Kling.

More true today than it was 6 months ago. https://t.co/1UW8J84wEQ

— Travis Kling (@Travis_Kling) June 24, 2020

However, as seen by todays price action, the correlation between the S&P 500 and bitcoin has been rising steadily as Covid-19 cases spike in several states. The popular bitcoin analyst, PlanB, has stated recently that equity correlation is driving bitcoin, not scammers. He further notes that I think it is a silly narrative. In the old days if traditional markets moved without news or cause, it was always "the hedge funds.

#bitcoin is down, and so is S&P500 .. "U.S. Stocks Tumble With Virus Threatening Economy". Just like June 11 and just like the month March. This has nothing to do with "Whales", "futures manipulation", "Plustoken scammers" etc etc. pic.twitter.com/K4ggl110TT

— PlanB (@100trillionUSD) June 24, 2020

Finally, others surmise bitcoin is a free market asset and naturally oscillates, which make correlations unstable and temporary over time. Popular crypto trader, Scott Melker, notes I do think that bitcoin has benefited from a bull market (equities) - that's just logical...but that does not mean that those assets have been correlated. He further states that if you have to make a comparison, I think a naked eye on the DXY (US Dollar Index) vs BTC chart is more compelling...clear inverse correlation.

https://www.tradingview.com/x/FRt9y4Lu/

While each faction believes their conclusions are the leading driver of bitcoins tepid movement, no one knows for certain given the unverified price effect of scammer sales, and inconsistent correlations between both equities and US dollar index to bitcoin.

https://coinmetrics.io/correlation-charts/#assets=btc-dxy,btc-s&p

Pragmatism would suggest that some combination of the aforementioned elements are driving bitcoin. However, only after time has passed and looking in hindsight, will readers know the dominant factor.

Disclosure: The author owns bitcoin and ethereum.

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Equities Buoy Bitcoin, But Price Headwinds Are Unchanged - Forbes

(Photo Illustration by Igor Golovniov/SOPA Images/LightRocket via Getty Images)

The financial space was rocked by the news that German fintech group Wirecard filed for insolvency owing 3.5bn. Not only a financial failure but also a seemingly elaborate and sophisticated fraud, according to EY, the companys auditor for more than a decade.

Many companies using Wirecards service would have been struck by the news, and would have had to hit the panic buttons, including a few crypto companies using Wirecard for their own card payment systems.

Already a difficult operation to get right, crypto payment, and crypto payment cards are only starting to make their way into the mainstream but it is instances like this that really hinder their potential and growth. Bitcoin has had a few changes in designation over the years, and as it stands, making it a payment system is harder than it once was.

The major cryptocurrency has undergone a number of evolutions in its some 11 years of existence. The digital currency began life as a medium for exchange in transactions, and found its first use when 10,000 BTC was traded for two pizzas (those pizzas are now worth just shy of $100 million).

But, just like the value of those two pizzas has changed, so has the designation of Bitcoin. The digital asset is today seen far more like an investable asset. Bitcoin is spoken about in the same breath as stocks and commodities and is permeating the conversations of Paul Tudor Jones and the execs at CME, Fidelity and other corners of Wall Street.

However, this fluid flow of Bitcoins designation may well be seeing a shift back towards acting like A Peer-to-Peer Electronic Cash System, as it is labelled in its own whitepaper. Recent news from Visa, PayPal and Venmo have many looking towards Bitcoin (or that should be cryptocurrencies, blockchain and the entire token ecosystem) for its potential in payments.

PayPal isrumouredto be rolling out direct sales of cryptocurrency to its over 300 million users, while it is posting job vacancies for blockchain experts. Visa has also started working towards the cryptocurrency space with apatentfor its own type of cryptocurrency, not to mention its support of the Coinbase cryptodebit card as a Visa Principal Member.

If there is indeed a move towards Bitcoin and crypto taking a new role in the evolving payments system, then the clues will probably be in the application. One of the biggest applications, and the possible bridge to the next evolution of payments, is the oldest, new, technology cards.

But, as therecent news surrounding Wirecardshows, this road for crypto cards is not an easy one. Just getting a foot in the traditional card scene can be difficult for Crypto payments solutions providers but then there are the companies that provide the payments railways to also consider.

The little pieces of plastic that nearly everyone carries around in their wallets are seen as so normal and so standard that little thought is given to their journey. However, debit and credit cards can be seen as the original fintech, and the original digitalization of cash.

This is why they are probably all the first place to look for the next iteration of digital cash and that could be crypto. I have already mentioned that Visa is doing a lot of work regarding crypto payments and tokenization, but its chief competitor Mastercard is not letting this new wave slip by.

I spoke with Suman Hughes, Director of Communications at Mastercard about their thoughts on cryptocurrency cards and the incorporation of crypto as a new payments system.

We see potential in cryptocurrency, especially in stablecoins. We have observed how using an internal stablecoin and tokenized fiat can improve settlement. We are driving the development of new products, including viable digital currencies that are safe, stable, reliable, and compliant, Hughes told me.

We are working with governments to explore Central Bank Digital Currencies (CBDCs), which brings physical cash into the modern digital age. CBDCs can enable financial inclusion, increase the efficiency of payments infrastructure and reduce informal economies.

Unsurprisingly, the interest in the potential of crypto for a major payments network like Mastercard revolves around its potential for a broader application. CBDCs are certainly on the rise, and could become a standard implemented by governments, rolled out through the likes of MasterCard and into the hands of the individuals.

But, there is also no getting away from the original crypto space and those who are looking to utilize their decentralized coins and cryptos in a payments method. Coinbase,Foldand other big crypto companies have partnered with Visa and the likes to roll out cards, but there are others trying to compete.

I spoke with the CEO of Crypto.com, Kris Marszalek, a company looking to pioneer the way in regards to personal crypto payments cards. He explained how it is not a straightforward process to compete with the legacy payments networks, even if it is with a brand new technology.

Its definitely challenging for a crypto startup to roll out a card product that is ready for prime time, he told me. It needs to work well with traditional financial and payment networks, which means we have to partner with established players.

That was a judgment call we made from day one. We focused on compliance, security and privacy as the foundation on which the company should be built. Were building a globally trusted financial institution thats in the process of securing licenses in all major jurisdictions.

But we are also building for the future. Payment is always about adoption, from both a merchant and user standpoint.

It is not only difficult entering the legacy system of payment with new financial technology like Bitcoin, there are also the hurdles that come with some of these traditional companies. TheWirecard newshas rocked the financial world and with Crypto.com reliant on this company for its cards, they too were struck hard.

The FCA in the UK effectively shut down Crypto.comscard activityin the UK and Europe to try and stem the damage from Wirecards collapse, and forced Crypto.coms hand in looking for a new card service provider.

"The FCA effectively shut down Wirecard UK, the issuer of our cards in Europe. Our EU/UK cards will stop working today. All customers will receive 100% credit back to their crypto wallets within 48 hours. Were moving the card program to a new vendor, Marszalek tweeted following the news.

The latest on this saga for Crypto.com is that the FCA, the U.K. watchdog, has allowed Wirecard Card Solutions, a Newcastle-based subsidiary of troubled German company Wirecard AG, to resume regulated activity meaning that the cards from Crypto.com have been reactivated in the UK and Europe.

These kinds of events, while mostly a one-off and rare, do represent the other issues that crypto faces in trying to enter the mainstream. Payment systems are usually taken as impenetrable and as a given, but there are hidden dangers that can hold back the advancement of this space.

That being said, the future of crypto seems laid out, and on top of that, its future as a payments system is becoming more and more probable.

There are certainly tangible changes in the crypto space when it comes to payments, and how these payments will be enacted and rolled out. But there is also a long way to go. However, as Marszalek explains, the digital asset bridge has already been built by cards.

By 2030, every single person on the planet will hold digital assets one way or another. Our mission is simply to accelerate the worlds transition to cryptocurrency. Familiar form factors, like a card, play a very important role in educating main street users.

Still, Hughes explained that there are still a number of things that need to be overcome in the crypto space for payments to be normalised with these assets.

We strongly believe that for digital currencies to become trusted payment instruments for consumers or businesses, it is essential that they offer stability, regulatory compliance and consumer protections, she added.

See original here:
Bitcoin As A Payment System Crypto Cards And The Rocky Road They Travel - Forbes

The share price of Bitcoin (BTC) mining firms Riot Blockchain and Hive Blockchain has produced enormous year-to-dategains, with stock in Riot nearly doubling while Hives has tripled over 2020 so far.

However, not all mining firms have fared well throughout the COVID-19 pandemic, with Canaans stock falling nearly 70% since early January, and both Hut 8 and DMG Blockchain seeing scant YTD gains despite experiencing significant volatility this year.

While Bitcoin is up more than 26% from roughly $7,200 to $9,100 since the start of the year, the leading cryptocurrencys gains have been dramatically overshadowed by a handful of firms mining it.

Hive Blockchain has seen a dramatic performance this year, rallying more than 420% from the start of 2020 until mid-February, from $0.066 to $0.345. The firms shares crashed back to $0.118 over the next month as immediate economic fallout from the coronavirus took effect. However, an expansion that led toHive doublingits mining capacity saw its stock rebound to test the $0.033 area by mid-May.

HIVE/CAD 2020 YTD: Google

The firms shares have since fallen back to $0.228.

After starting the year trading for $1.22, Riot Blockchain shares rallied to $1.60 by mid-Februarybefore crashing to $0.65 in roughly one month. However, Riot produced a strong recovery, gaining over 375% to trade for $3.10 on June 10. The firms shares have since retraced to $2.29.

RIOT/CAD 2020 YTD: Google

Riots recovery may have been boosted by announcements in May that its mining revenues had grown 70% in the first quarter year-on-year, itsplans to roughly double its hash rate after Bitcoins block reward halving, and the dismissal of pump-and-dump complaints against the firm.

Riot also expanded its total hash rate capability after establishing a hosting arrangement for its Antminer S17s with fellow mining firm Coinmint in April after facing disruptions resulting from COVID-19.

However, the gains enjoyed by Riot and Hive are certainly not indicative of all miners, with Canaan suffering huge losses over 2020 so far.

After starting the year at $6.02, Canaan shed over a quarter of its value by mid-Feb when a sudden spike pushed prices up to $8.04 in a single day. Canaans stock then plummeted to $2.81 in mid-March, before embarking on a steady recovery to retest $6 two months later.

RIOT/USD 2020 YTD: Google

Since May 14, Canaans price has crashed by more than two-thirds to currently trade for $1.82.

While the YTD performance for Hut 8 and DMG Blockchain are currently sitting at an approximate break-even, both firms have seen extreme volatility during 2020.

HUT/CAD 2020 YTD: Google

Both Riot and DMG produced sudden spikes of over 60% in February followed by crashes of at least 60% by mid-March and a recovery back to trade at early-Januarylevels.

DMGI/CAD 2020 YTD: Google

Read more:
Stock in Crypto Mining Firms Riot and Hive Massively Outperforms Bitcoin - Cointelegraph