Category Archives: Cryptocurrency

Ethereum, one of the most popular cryptocurrencies, is becoming more difficult to mine. At the same time, volatility is rearing its welcome head, and the value of Ethereum is now less than half of what it was around a month ago. As a result, profitability is way down, and some miners are putting their GPUs up for sale on second-hand sites such as Ebay, CoinDesk reports.

While it is difficult to predict anything when it comes to cryptocurrencies, we are cautiously optimistic that GPU pricing should start trending back to normal in the coming weeks. That could change at the drop of the hat, of course, but with the way things are now, miners are less motivated to stock up on GPUs and mine Ethereum.

That was not the case a month ago when Ethereum reached an all-time high of $300 before recording another high of more than $400 a short while later. More and more miners jumped on the crytpocurrency bandwagon in hopes of making some extra dough, and maybe even eventually striking it rich, as some early adopters of Bitcoin did. But since then, Ethereum has fallen in value, declining to a low of $133 over the weekend. It's currently trading at around $170-$180.

It has also become more difficult to mine over the past month. Have a look at the steep trend line from the beginning of June until now:

From our vantage point, the difficulty in mining has caused about a 10 percent drop in profitability, while the falling price has made Ethereum mining 50 percent (or more) less profitable. Power costs remain constant, so where an RX 580 might have grossed up to $5 per day next last month, it will now only gross around $1.70. That means instead of a net profit of $4, it's now down to a net gain only $1.25 (at a power cost of $0.10 per kWh). Generally speaking, it looks like a typical miner might have to wait six months or more to pay for a GPU hardware investment, compared to two or three months.

This is a good thing for gamers. While crytpocurrencies like Bitcoin (SHA256) are far more easily mined on ASIC hardware, othere's like Ethereum (Dagger-Hashimoto) and ZCash (Equihash) use algorithms that are resistant to ASIC hardware. Combined with Ethereum's spiking value, miners went running for the hills with as many GPUs as they could carry in what became a modern day gold rush.

This resulted in a shortage of many desirable graphics cards from both AMD and Nvidia. The best bang-for-buck options for gaming are also great options for mining, but there just aren't enough parts to meet the demand of both markets. Cards like the Radeon RX 570 have been out of stock or grossly overpriced by third-party vendors, such as this Gigabyte Aorus Radeon RX 570 going for $550. And that's not even the most expensive RX 570 SKU out there. PowerColor's Red Devil variant is listed on Newegg (through a third-party) for $639.

It's a crazy situation, but here's hoping that recent events restore some sanity to the graphics card market. There's an RX 580 8GB currently in stock at Newegg for 'only' $310, which is still way over MSRP, but the coming weeks should see inventories and prices start to return to normal. If you'd rather not wait for inventory levels to even out, you can also check second-hand sites for deals.

See the original post:
Steep decline in cryptocurrency market has miners dumping their ... - PC Gamer

Cryptocurrency markets are crashing. Bitcoins price has fallen by about 20% in the last seven days, wiping out $7 billion of market value. But its doing better than other major cryptocurrencies like ether and ripple, which have lost 30% or more.

Bitcoins relative resilience in the current crash bolsters its status as the reserve currency of the cryptocurrency markets. Some $29.5 billion worth of bitcoin has been traded on global exchanges in the last month, compared to $26.3 billion worth of ethereum, according to data site Coin Marketcap. Not all traders are cashing out of ether into bitcoin, of course, the ether-Korean won currency pair is among the most actively traded in the last 24 hours, Coin Marketcaps data shows.

One indicator of bitcoins health relative to other cryptocurrencies is the so-called Bitcoin Dominance Index maintained by Coin Marketcap. It shows the total value of all bitcoin in circulation as a proportion of the value of all cryptocurrencies in circulation. As cryptos in general rallied this year, bitcoins dominance has fallen. But as markets have corrected in recent weeks, bitcoins dominance rose.

Bitcoin is still more than twice as valuable as ethereum, and about six times as valuable as Ripple. That gap could grow if the cryptomarket correction continues.

Read next: The strange mix of reasons why bitcoin has soared to all-time records

Go here to read the rest:
Cryptocurrencies are crashing, but bitcoin isn't falling as badly as the rest - Quartz

The price of the digital currency bitcoin fell over the weekend, dropping below $2,000 and farther away from its June highs, part of a broad selloff in dozens of cryptocurrencies, including ether.

Bitcoin on Sunday traded as low as $1,836, according to news and research site CoinDesk, down about 8% on the day, and almost 40% from its high of $3,018 on June 11. Meanwhile, ether, the currency used on the Ethereum network, traded as low as $155 on Sunday, down about 60% from its high of $395 on June 13.

Prices were lower across the board on Sunday, most notably for the tokens created via the so-called initial coin offering, or ICO, process.

The selloffs are yet another stark reminder that for all the potential and promise in these new kinds of digital assets, they remain highly speculative trading vehicles. The markets around them are still relatively immature and illiquid, resulting in extremely volatile trading.

An expanded version of this report appears on WSJ.com.

Also popular on WSJ.com:

Can the most expensive indie move ever break even?

Elon Musk lays out worst-case scenario for AI threat.

Read the original here:
Bitcoin slides below $2000 as cryptocurrency selloff continues - MarketWatch

Digital currencies are decentralized, peer to peer currencies that are not influenced by the actions of governments or central banks. They run on open source platforms, and can be traded against fiat currencies, or as funds, at leading trading platforms. Blockchain technology has revolutionized e-commerce and financial services, and more banks are adopting this dynamic technology to process financial transactions.

Digital currencies have come a long way since inception after the global financial crisis of 2008/2009. Bitcoin was created by Satoshi Nakamoto, an individual, or group of individuals, who have since disappeared from the scene. Their legacy remains however, with a myriad of digital currencies now available on the market. These include Bitcoin, Litecoin, Dogecoin, Ethereum and hundreds of others which are rapidly garnering the attention of e-commerce retailers, traders, banks, financial institutions, and even regulatory authorities around the world.

One of the worlds premier financial trading platforms, eToro has launched a CryptoFund. This fund tracks the activity of cryptocurrency such as Bitcoin and others. The precise asset allocation in the CryptoFund is as follows:

The bulk of the CryptoFund 84% is comprised of Bitcoin, Ripple and Ethereum. In June, the fund tracked negatively with losses of 4.65%, followed by month-to-date declines in July of 25.64%. The eToro CryptoFund is a trading option, meaning that registered clients can benefit from price movements in the fund regardless of direction. At eToro, there are currently over $300,000 worth of assets under management (daily reading) with the CryptoFund, with hundreds of traders.

Since this is a CopyFund, it is possible to follow successful traders, copy their trades and profit accordingly. The increasing popularity of cryptocurrencies is a result of several factors, notably their increasing adoption in e-commerce, their rarity, and the anonymity that is afforded to traders. Compared to fiat currency which is completely controlled by governments and central banks, cryptocurrency offers multiple trading opportunities. This fund has a market capitalization of at least $1 billion with monthly trading volumes in excess of $20 million.

eToro management carefully monitors the individual components of the fund and if any of them dips beneath $1 billion, or if trading volumes are less than $20 million, a currency could be dropped from the fund. The cryptocurrency with the highest market capitalization is Bitcoin at $40 billion, but others like Ethereum and Litecoin also have high market capitalizations. The precise weighting assigned to individual currencies in the fund is determined by the portfolio manager at eToro.

The Crypto Copyfund is traded as a CFD (contract for difference) which is a derivative trading instrument. eToro management protects traders with the limits imposed on the daily trading activity of the CryptoFund. If the limit is exceeded, the funds trading activity will be closed for the day. This is done to maintain stability in trading activity, much like the major indices on Wall Street.

eToro is a strictly regulated financial trading enterprise. Only traders from accepted jurisdictions can register, deposit, and trade cryptocurrency online. In the United Kingdom, eToro is registered by the Financial Conduct Authority (FCA) and operates under the name eToro UK. The minimum required deposit is $5,000, and clients are required to be UK residents.

The rest is here:
Trading Cryptocurrency the eToro Way - newsBTC

Albania's central bank calling on potential investors to avoid buying digital currencies, according to a new report.

According to the English-language weekly Tirana Times, the central bank stated that it hasn't issued any licensure to businesses brokering or exchanging digital currencies in Albania.

"As a result, every company that is involved in these operations in the Republic of Albania is not licensed and its activity does not comply with the regulatory and supervisory framework of the Bank of Albania, the bank reportedly said.

It's a missive that largely echoes those issued by other central banks in the past several years. In some of those cases, investors were warned to avoid specific digital currencies, including bitcoin or Onecoin, the latter of which has earned the particular ire of central banks and regulators worldwide.

As with officials at institutions like the Central Bank of Armenia, Albania's central bank suggested that investors avoid buying digital currencies, pointing to more regulated products instead.

"One should orient investments toward financial products and instruments offered by institutions licensed and supervised by the Bank of Albania and the Financial Supervisory Authority, the message stated.

It's unclear at this time which businesses in Albania would be effected should the central bank move to enforce its stance more concretely, though LocalBitcoins lists a handful of traders in cities including Tirana and Elbasan.

Albania map image via Shutterstock

The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Have breaking news or a story tip to send to our journalists? Contact us at [emailprotected].

Read more:
Albanian Central Bank Issues Warning to Cryptocurrency Investors - CoinDesk

Ever since Bitcoin first appeared on the scene several years ago, fans of the cryptocurrency have been searching for a way to apply the idea that might capture the public imagination and broaden the use of the technology beyond just geeks and programmers.

Now, some believe that application has appeared with the rise of the "token" economy, in which companies or startup ventures fund their operations by handing out units of cryptocurrencies. Some companies have even done what are known as "initial coin offerings" or ICOs, in which they distribute tokens instead of shares to investors.

The cryptocurrency market is seen by some as a bubble with hugely inflated prices. Some observers say bitcoin and other similar ventures are similar to Linux , an open-source alternative to Microsoft's Windows operating system that has never really achieved mainstream success.

But entrepreneur and investor Balaji Srinivasan, a partner at Silicon Valley venture capital firm Andreessen Horowitz, believes that token-based systems "may eventually create and capture more value than the last generation of Internet companies."

Get Data Sheet , Fortune s technology newsletter.

In an essay published recently on the blogging platform Medium, Srinivasan and his partner Naval Ravikant, co-founder and CEO of a popular online VC community called AngelList, said they believe the token economy has the potential to become "a Kickstarter on steroids."

The two men, both of whom have been investing in bitcoin-related technology for several years, argue that using tokens as a financing option has the potential to improve the liquidity options that companies have by several orders of magnitude, as well as increasing the size of the available audience that might want to invest in such ventures.

All of this is possible because of an explosion in the cryptocurrency market over the past few years, they argue, in which Bitcoin has survived internal strife but also given birth to alternative currency systems and platforms such as Ethereum.

Initial coin offerings or ICOs are one way of using these new currencies, Srinivasan and Ravikant say. Canadian messaging-app maker Kik recently announced that it is launching its own cryptocurrency called Kin, and plans to offer units of it to supporters through a crowdfunding campaign. The currency is based on Ethereum's blockchain technology.

Kik plans to issue 10 trillion Kin tokens to developers and users via a separate non-profit foundation called the Kin Foundation, which will ultimately hold 60% of all the Kin tokens and be run by a group of independent directors.]

Srinivasan and Ravikant warn that some uses of cryptocurrency tokens, including some ICOs, may be subject to regulation by governments if they are seen as equivalent to doing a traditional equity offering or IPO, in which investors receive shares of the company. But they argue other uses of tokens for crowdfunding could essentially be unregulated.

Token supporters say they aren't really equity but more of a digital IOU, which entitles the holder to redeem their tokens in return for access to a platform like Ethereum's.

That access has value because it can be used to generate Bitcoin-style currency through a computer-intensive process known as "mining," and those coins can in turn be exchanged for other more familiar currencies like U.S. dollars. One bitcoin is currently worth about $2,300.

Some skeptics say token-based fundraising has the potential to turn into a huge boondoggle if it is unregulated, with unwary investors being fleeced of their savings with little to show for it.

Ravikant and Srinivasan, however, argue that tokens will allow companies to raise money much more quickly for new ventures than existing systems do, and will also allow for startups to build valuable services without having to rely on advertising as their only revenue source.

Large technology companies like Google and Facebook offer "have sometimes come under fire for making billions of dollars while early adopters only receive the free service," their essay says . "After the early kinks are worked out, the token launch model will provide a technically feasible way for tech companies to spread the wealth and align their user base behind their success."

See the rest here:
Bitcoin Fans: Cryptocurrency Token Economy Is the Future ...

GETTY - STOCK

Computer whizzes behind the virtual currency are split over how to handle Bitcoin transactions with a new software update set to launch on Friday.

Jordan Hiscott, chief trader at Ayondo Markets, which launched Bitcoin trading last month, said that its astounding rise reminds him of the technology bubble in 1999, with investors seeking large short-term gains.

Bitcoin could be in an asset bubble that may reach a crescendo within days.

Right now the outcome is unclear, Hiscott said: This uncertainty and short-term speculation could lead to a deflating of the asset bubble.

Bitcoin exists only on computers with no regulatory authority behind it, but has a market capitalisation of more than $38billion (29billion).

Bitcoin could be in an asset bubble that may reach a crescendo within days

Jordan Hiscott

Originally launched in 2009, it was the worlds best-performing currency in 2015 and 2016 and has netted millions for investors who got in early.

Bitcoin surged another 150 per cent this year to top $3,000 in June, but has since fallen back more than 20 per cent to around $2,327. Other virtual currencies, including Ethereum, have also fallen.

GETTY - STOCK

Josh Mahoney, market analyst at trading platform IG, said Bitcoin is a new phenomenon and that makes it very difficult to price: A lot of speculative money has gone into it, which always makes for a volatile market.

He said that Bitcoin has suffered sharp sell-offs before, notably after hackers stole coins from online exchanges, but has always fought back: Every sell-off has been greeted by a new wave of buyers.

The price has been driven by Chinese investors who are using Bitcoin to shift money out of the country.

This means it also remains vulnerable to tighter Chinese regulation. Risk-averse investors would not touch it with a barge pole, Mahoney added.

See original here:
Is the Bitcoin bubble about to burst? Traders warn cryptocurrency could CRASH this week - Express.co.uk

Source: CoinDesk

The digital currency has had a stellar year, rising by more than 200 percent and easily outperforming stock market benchmarks like the S&P 500 index and the Nasdaq composite in 2017. The cryptocurrency has now more than tripled in value since trading at $968 on Dec. 31, and has gained nearly 30 percent in June alone.

Bitcoin in 2017

Source: CoinDesk

Brian Kelly, CEO and founder of BKCM and a CNBC contributor, told CNBC this week that the cryptocurrency was "in the first years of what is likely to be a multi-year bull market. Of course there will be corrections and even crashes along the way, but bitcoin is here to stay."

A contributing factor to bitcoin's recent surge is growing demand from Asia. In addition to the China factor, Japanese interest has risen ever since the government approved bitcoin as a legal payment method in April.

Investors also plowed more money into the currency after Minneapolis Federal Reserve President Neel Kashkari commented on the blockchain technology behind bitcoin, saying it "has more potential than bitcoin itself."

CNBC's Fred Imbert contributed to this report.

Here is the original post:
Bitcoin bulls runs wild as cryptocurrency surges above $3,000

Digital currencies like the bitcoin were once the preserve of programmers, geeks and digitally-savvy traders but they have made it to the mainstream, grabbing headlines for their soaring prices, flash crashes and more.

The numbers around these currencies can be baffling to most of us. Take a Bloomberg report last week about a cryptocurrency trader - who is known only by a string of numbers - whose US$55 million (S$75 million) on paper in the digi-currency ethereum became US$283 million in just over a month, a 413 per cent profit.

Wild swings like this are - and will be - the norm for cryptocurrencies, say experts, so anyone investing in them is in for a rocky ride.

But that in turn will attract risk-takers, so it is best to get a handle on just what this quirky corner of the finance world is all about.

"Cryptocurrency is a form of digital currency that uses cryptography to allow for the peer-to-peer exchange of value, without a third party such as a bank or a remittance company," notes Singapore University of Social Sciences (SUSS) Professor David Lee, whose areas of interest include digital currency and blockchain technology.

ST ILLUSTRATION: JASTER NGUI

He notes that Satoshi Nakamoto - either an actual programmer or a group of them using the name - invented the bitcoin so people can transfer value or currency among peers who do not necessarily trust one another, using a public ledger that is transparent to everyone.

The Financial Times explains: "When people invest in the bitcoin, the money is going into the underlying technology - known as blockchain - not the payment instrument itself."

It refers to the blockchain as "essentially a giant record book of all bitcoin transactions; it is to the bitcoin what the Internet is to e-mail".

And it is described as a decentralised network where every bitcoin transfer is verified, processed and written down, and comes with potential "to make economic interactions cheaper, faster and more secure".

INVESTING IN UNDERLYING TECH

When people invest in the bitcoin, the money is going into the underlying technology - known as blockchain - not the payment instrument itself.

THE FINANCIAL TIMES, saying the blockchain is "essentially a giant record book of all bitcoin transactions".

ASTRONOMICAL RETURNS

To put things into perspective, an investor who had invested just US$1,000 back in 2010 could have cashed out nearly US$51 million today.

MR SACHIN MITTAL, head of telecom, media and technology research at DBS Group Research, on the bitcoin, the most famous, valuable and oldest cryptocurrency.

Mr Sachin Mittal, head of telecom, media and technology research at DBS Group Research, says the bitcoin is the most famous, valuable and oldest cryptocurrency, although there are around 800 others.

Mr Yusho Liu, co-founder of CoinHako, which helps people buy and sell cryptocurrencies, notes that almost 48 per cent of the global cryptocurrency value is held in bitcoin while ethereum holds about 40 per cent of the market share.

Cryptocurrencies have come under the spotlight, with huge gains made by the bitcoin and ethereum, notes Mr Mittal.

The value of the bitcoin shot up about 155 per cent within the first six months of this year. A bitcoin was worth US$2,539 on July 10 this year, compared with five US cents in July 2010. "To put things into perspective, an investor who had invested just US$1,000 back in 2010 could have cashed out nearly US$51 million today," notes Mr Mittal.

Ethereum has risen 2,775 per cent, from US$8.39 to US$241 since the start of this year.

Many argue that the bitcoin and other cryptocurrencies have no intrinsic value and may be a perfect vehicle for forming a bubble, Prof Lee adds.

"To put it into perspective, with a US$40 billion market capitalisation for the bitcoin and US$100 billion for total cryptocurrency, this investible class is minute, compared with US$66.8 trillion for listed equity and US$48.2 trillion for gold."

However, he stresses: "Cryptocurrency is a very complex investment instrument. I would not advise anyone who has no knowledge of cryptocurrency to get involved at all.

"To start off, there are a lot of videos, books and papers written about the subject. One may also join Access - the Singapore Cryptocurrency and Blockchain Industry Association - to attend its talks and programmes to learn about cryptocurrency and the blockchain industry."

Continue reading here:
Digital currencies soar in value, but subject to wild price swings - The Straits Times

Things have evolved from bad to worse for all cryptocurrency markets over the past 24 hours. For the first time in a while, the Bitcoin price may actually go below US$2,000. Although such a retrace isnt necessarily bad news off the bat, it also shows there will be a lot of proverbial blood in the water. All currencies are literally bleeding value right now, although some are trying to buck the trend.

It has to be said, the cryptocurrency markets have been extremely bearish over the past few days. It was only a matter of time until we would see a price decline such as the one present on the charts right now. Experts predicted it would only be a matter of time until we would see a big Bitcoin price retrace. Unfortunately, that is exactly what is happening right now, with no real end in sight.

To put this into perspective, Bitcoin alone lost over 12.3% in the past 24 hours. That is quite a powerful downturn for the worlds leading cryptocurrency, as most of its losses were limited to a few percent here and here. Going into negative double digits is something we rarely see from Bitcoin these days, unless major news breaks. So far, that has not happened.

However, the August 1st deadline keeps coming closer, and a lot of people are very concerned about what the future may hold for Bitcoin. If a chain split were to occur, things quickly go from bad to worse for Bitcoin. Even if one of the chains only survives for a day or less, it would set a very dangerous precedent for the worlds leading cryptocurrency.

Then again, one would expect most Bitcoin holders to store their balance somewhere safe and look at things from a distance. There is no reason to sell Bitcoin right now, as no one will actually lose coins if they store them in a wallet only they can control before July 31st. In the worst case, people will only have their coins on one chain, just like they do now. The best case scenario would see people holding the same balance across multiple blockchains, which will allow people to make free money by not selling Bitcoin right now.

Other currencies are dragged to the bottom alongside Bitcoin as well. Ethereum, Ripple, Litecoin, Dash, ETC, and all other top currencies see their value drop at an alarming rate. Right now, there is no cryptocurrency in the top 50 which notes any gains. Instead, quite a few coins and tokens are down by 20% or more. Quite a substantial amount, as it will take weeks, if not months, to recoup some of these losses. Rest assured there are some smaller coins noting losses of over 25% as well.

With the total cryptocurrency market cap dipping below US$75bn, things are looking anything but great right now. It is not all doom and gloom, though, as we have seen such retraces in the past. Bitcoin and consorts come out stronger every single time such an event happens. Sadly, no one can predict when the reversal might take place. Cryptocurrency is still a small and fickle market It doesnt take much money to shake things up in a positive or negative manner.

If you liked this article, follow us on Twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin, cryptocurrency, and technology news.

Read the original post:
Bitcoin Price may dip Below US$2000 as Cryptocurrency Markets Turn Deep red - The Merkle