The price of bitcoin has risen sharply, exceeding the $3,200 level for the first time on the CoinDesk Bitcoin Price Index (BPI).
Archives for August 4, 2017
BetKing, a popular Bitcoin gambling platform known for making profits worth over 7400 BTC during its previous stint has announced the ICO of its BetKing Bankroll tokens. The four-week long crowdsale is set to go live on August 7, 2017, and end on September 4, 2017. During the period, investors and cryptocurrency enthusiasts can purchase … Continue reading BetKing ICO, an Opportunity for Investors to Gain a Share in Casino’s Profits
The post BetKing ICO, an Opportunity for Investors to Gain a Share in Casino’s Profits appeared first on NEWSBTC.
The internet and social media have unleashed unprecedented access to information. The time between content creation and widespread publication has become vanishingly small. Along with this ease of access and sharing, however, comes a lack of control over one’s own content. With a few clicks, content can be republished without reference to its original source, thereby obscuring who the authentic owner is.
What the internet has lacked up to this point is a network-based log of ownership that can keep pace with the exchange of information. Enter blockchain technology. While the first and currently most prominent application of this technology is an internet-based payment system, this will over time prove to be just one of many use cases.
One of the earliest non-financial applications of blockchain technology was a service called “Proof of Existence.” The service embeds a hash of a document into a block in the Bitcoin blockchain. A user can use this embedded hash to prove that the document existed at the block height containing the hash without relying on a trusted third party, creating a decentralized timestamping service.
Po.et is a blockchain protocol that aims to expand on the concept of Proof of Existence to become a transformative tool for the publishing industry. In its early development, Po.et will be a platform on which written content can be timestamped using the Bitcoin blockchain and be discoverable along with important metadata. Eventually, Po.et aspires to create a fully decentralized marketplace in which publishers, editors and content creators can interact with purchase and licensing agreements without the frictions that exist today.
Max Bronstein, media and strategy lead for Po.et, said that the project was born out of some challenges faced at Bitcoin Magazine. He stated that Po.et was designed to help answer “questions of ownership or attribution on the web,” including “who owns the work, who created it and whether or not the usage of the work is authorized.”
According to Bronstein, these questions are currently difficult to answer for many works, and the organizations that manage ownership and licensing information like Getty Images and Creative Commons often exist in silos without interoperability with other platforms.
Richard Titus, an entrepreneur who formerly helped lead digital content at BBC and the Daily Mail, joined the Po.et advisory board in July. He said, “Preserving an ecosystem of content creators, publishers and advertisers requires the establishment of ownership and Po.et is at the right stage of development to bring a true marketplace into existence.”
The Po.et development team has divided their milestone iterations into three “eras”: Rosetta, Gutenberg and Alexandria.
“The Rosetta era represents Po.et’s potential to enable new understanding of written works, their authenticity, provenance and edit history through blockchain-based timestamping,” said Bronstein. The first era has already begun offering these timestamping services to publishers of written content. The document, along with standardized metadata, is stored on the BitTorrent network so that it can be discovered by any party interested in knowing its origins and authorized uses.
The second stage, the Gutenberg era, is projected to begin in April 2018. During this stage, Po.et intends to expand its platform to include custom licensing agreements for registered assets, revenue sharing and a written content marketplace. Payment channels will be utilized at this stage to enable cheap and instant micropayments for the agreements with a wide array of more than 40 publishers. One key application of these features may be an e-book metadata format that can serve as an alternative to the current costly standard for creating discoverable metadata for books: the ISBN system.
The third and final era, Alexandria, is slated to begin in July 2019. “The Alexandria era is when we expect Po.et to reach scale and become the first universal ledger for all types of digital assets, just as Alexandria was the home of the first world library and greatest repository of all human knowledge,” said Bronstein.
This stage will see the expansion of the Po.et platform beyond written content to include image, video and audio assets. Furthermore, Po.et hopes to introduce in this stage a fully decentralized marketplace open to all stakeholders with a reputation system to promote honest use of the network. In this stage, developers will be able to write and deploy smart contracts that interact with this open marketplace. One major use case of Alexandria could be brand licensing, an industry estimated to total over $250 billion in sales annually. The simplified process of verifying authenticity and negotiating terms with Po.et could open this market to smaller players.
The Early Adopters
Bitcoin Magazine was the first to integrate the Po.et document timestamp into its platform — you can find a Po.et authentication badge at the top of this page. Other major digital media publishers in the blockchain space have signed on as alpha partners, including The Merkle, Crypto Insider, CoinSpeaker and ChainB.
Po.et has also forged a unique partnership with the LTB Network through which owners of the LTB Network’s LTBCOIN can swap their tokens for up to a total of 1 percent of the total Po.et tokens available.
Adam Levine, founder of the LTB Network, stated that “Po.et is an elegant solution to one of the biggest real world publishing problems. At the LTB Network, we’re excited to become one of the first fully integrated publishing platforms which will allow all written content to be published through and easily re-licensable with the Po.et project.”
Thus far, Po.et has secured financial investments from BTC Inc. and several blockchain notables, including Fenbushi Capital, led by Bo Shen, Feng Xiao and Vitalik Buterin; Simon Dixon and BnkToTheFuture; Michael Cao of block.one; and Matthew Roszak and Anthony Di Iorio.
Po.et will also be funded by a token sale taking place on August 8, 2017. At that time, 50 percent of the total supply will be sold off for bitcoin or ether.
POE tokens represent a proportional stake in the fees generated over the Po.et platform. While these fees are currently subsidized by the Po.et Foundation during the Rosetta era, they will eventually be generated by processing license payments and creating content licenses and then collected by the Po.et Foundation in future eras.
Disclaimer: Bitcoin Magazine is an alpha partner of Po.et. BTC Inc., the parent company of Bitcoin Magazine, is an investor in Po.et.
The post A New Era of Content Publishing and Licensing on the Blockchain appeared first on Bitcoin Magazine.
As discussed in the previous BTC-USD market analysis, the market has begun to test and retest known support and resistance lines on both the macro and micro levels. Since finding its local bottom around $1,800, BTC-USD has paved a fairly clean schematic of support and resistance levels along the Fibonacci Retracement values:
Figure 1: BTC-USD, 6-hr Candles, Bitfinex, Fibonacci Levels Post-bottom
The high $2,600 values (also the 23.6 percent Fibonacci Retracement line) have historic significance in this market because they are firmly established support values. However, if we look at the 6-hr volume trend, we can see that each rebound off the $2,600 values was paired with decreasing volume on every attempt to break support. The volume trend shown above is typically a sign that the market is no longer confident in the higher price values and will ultimately need stronger volume to break new highs.
Zooming in on the most recent test of $2,600, we can see another clean set of Fibonacci Retracement lines paving strong support and resistance values for the current trend:
Figure 2: BTC-USD, 2-hr Candles, Bitfinex, Current Bull Trend
From this perspective, the strong support outlined in Figure 1 (the 23 percent Fibonacci Retracement values) is now shown in Figure 2 as the 50 percent Fibonacci Retracement values. However, this most recent bounce is showing strong signs of market momentum loss.
For those who are familiar with my style of technical analysis, I put a strong emphasis on volume trends and how they correlate with price movement. This trend is no exception: the most recent bounce is continuing to rise on decreasing volume. A trending market that moves on decreasing volume typically indicates that the trend is beginning to exhaust and will likely need to consolidate or pull back to garner support from lower values. Our current trend has several indicators of bullish exhaustion outlined not only in the volume trend, but also in the MACD and RSI (both tools are market momentum indicators).
The MACD and RSI are showing bearish divergence. Bearish divergence is a trend used by market analysts to objectively view price activity for indications of potential pullback or market consolidation. When the price is in an uptrend and the MACD histogram (the green/red bars) fails to make a new peak to correspond to the new price highs, the ears of bearish investors perk up, as this is typically when bears are looking to place their short positions. Much like the MACD histogram, the RSI can also be used to show market momentum loss — the market is said to be diverging bearishly if the price makes a new high but the RSI does not make a new high.
This recent, low volume climb in BTC-USD value is not terribly surprising. BTC began its ascent right around the time several major exchanges enabled Bitcoin Cash (BCH) deposits. Once the BCH deposits were enabled, those who were previously sidelined immediately post-fork were able to sell off their BCH and reinvest in other coins. (I won’t dive into BCH-USD analysis, but if you take a look at the price trend, it lines up with the BTC-USD price climb.)
Typically, it isn’t advisable to zoom in terribly close within the crypto-market because the volume doesn’t provide useful resolution to its perceived trend. However, in times of high volume I find it useful to look at the timescales as small as 5-minute candles to get a small peek at where the market is heading short-term:
Figure 3: BTC-USD, 5-min Candles, Bitfinex, Double Top Reversal
Currently, the 5-minute candle trend is showing signs of a textbook Double Top Reversal (shown in the rectangle). The volume profile showing spikes on the two local highs indicates a pullback in price is possible.
Looking at the MACD histogram, we can see no signs of downward momentum loss as the histogram continues to make new lows to correspond to the lows made in price movement. To accompany the MACD, sustained sell volume is evident and hints toward continued interest in the lower price range. I won’t go into the details of how to calculate Double Top Reversal price targets, but if this reversal pattern holds true, we can expect price movement close to the 23 percent Fibonacci Retracement line shown above.
On both the macro and micro trends, BTC-USD shows signs of diminishing upward momentum.
Exchanges recently enabled BCH deposits, and it is very likely that the recent hike in BTC-USD price was due to trades selling their BCH and purchasing BTC.
The immediate trend shows signs of bearish momentum and is in the process of testing a Double Top Reversal pattern.
Trading and investing in digital assets like bitcoin, bitcoin cash and ether is highly speculative and comes with many risks. This analysis is for informational purposes and should not be considered investment advice. Statements and financial information on Bitcoin Magazine and BTC Media related sites do not necessarily reflect the opinion of BTC Media and should not be construed as an endorsement or recommendation to buy, sell or hold. Past performance is not necessarily indicative of future results.
The post Bitcoin Price Analysis: BTC Markets Anemic After Initial BCH Trading appeared first on Bitcoin Magazine.
After a few difficulty adjustments, blocks on the bitcoin cash blockchain are now being mined more steadily.
ConsenSys hosts Ethereal SF event to merge culture and technology.
In this guest post, blockchain theorist Melanie Swan discusses three recent developments in the blockchain economy, using classical economic principles to distinguish between hype and long-term structural change.
The Hard Fork of August 1
The first important recent event in the blockchain economy is the long-anticipated Bitcoin hard fork that happened on August 1, 2017. A hard fork is a change to the software protocol that creates a permanent divergence from the previous version of the blockchain, such that nodes running the old software are no longer accepted by the newer version. The change was for the purpose of improving scalability, the Bitcoin blockchain’s ability to handle larger-size blocks of transactions.
The number of transactions per block swelled from 400 in 2014 to 2,000 at the beginning of 2017, so developers had plenty of advance warning to work out a solution for greater scalability. The hard fork is an example of decentralized democracy in action in that participants registered their preference regarding one of two methods for addressing the scalability challenge. The majority of the constituencies (developers, miners, exchanges, wallet companies and merchants) elected the hard fork to one of the new protocols (SegWit2x), while the other group split to a new Bitcoin blockchain, Bitcoin Cash, which supports another protocol.
It was almost possible to see Adam Smith’s invisible hand operating in real-time as transactions amassed and the first block was recorded on the new Bitcoin Cash blockchain six hours after the split. It comprised of 6,985 transactions in a block size of 1.9 MB, indeed almost two times the previous block size, thus demonstrating greater scalability.
The economic theory upshot of the Bitcoin hard fork is that it is a demonstration of competitive markets proceeding in an orderly and efficient fashion, offering choices to participants, who coordinated themselves between the two options.
Developments in Regulation: The SEC
A second recent event in the blockchain economy is in regard to regulation. On July 25, 2017, in the U.S., the SEC (Securities and Exchange Commission) ruled that ICOs (initial coin offerings, also known as token sales), unlike crowdfundings, in certain cases, may count as securities and therefore would be subject to securities registration laws (both the offerings and any exchange coordinating their purchase and sale).
An initial coin offering is similar to an IPO but is an investment directly in a company project, in exchange for cryptocurrency coins or tokens, which provide greater liquidity to both investors and companies. It is complicated because the SEC may use the Howey test, a long-standing mechanism, to determine whether a particular instrument is a security or not, in their analysis of ICOs.
It could be that ICOs are split into two categories: those that are regulated (i.e., subject to securities laws) and those that are unregulated (i.e., exempt from registration).
Unregulated offerings may pertain to “utility coins” as in the case of storage cryptocurrencies (such as Siacoin [SC] and Storj [STORJ]). These projects may be categorized as internet network public goods creation, where tokens are related to network operation but not profit-garnering.
Regulated offerings concern investments that are more like the traditional idea of stock, where shareholders have an expectation of profit and a say in corporate governance. ICOs in the latter form would need to comply with securities registration laws.
The economic theory implication is that involved parties are sorting out the definitions and treatment of new kinds of entities in the blockchain economy using established precedents. Above all, knowing the regulatory stance of governments can help to stabilize the market. The SEC acted in the wake of what some call an “ICO dotcom bubble,” in which some firms raised millions of dollars within minutes for their crypto-projects.
The result is that the investment market for cryptocurrencies is becoming distinctly more institutional. One indication is the SEC’s move to regulate ICOs. Another is the decision of the U.S. CFTC (Commodity Futures Trading Commission) in July 2017 to grant approval for cryptocurrency derivatives to be launched by LedgerX on the CBOE (the largest U.S. options exchange). This is important because derivatives markets are already connected to the vast global institutional trading ecosystem, and thus cryptocurrency derivatives might be a more accessible and liquid means of trading and investing in cryptocurrencies than the underlying cryptocurrencies themselves. A third indication is “Project Omni’s” announcement in August 2017 that it will be building a platform for trading large-size positions (i.e., $20 million and up) for the institutional market.
Many Sectors of the Economy Go Crypto
A third important recent development is the awareness that the blockchain economy is a system in which businesses create private currencies that compete for customer acceptance in the marketplace.
Economists from Friedrich Hayek to Paul Krugman have envisioned and heralded this development. The word “private” has different meanings in the blockchain economy. Here, “private” is meant in the sense of being offered by companies in the private sector as opposed to governments in the public sector. Traditionally, governments have had a monopoly on offering currencies, but blockchain technology is changing that.
The other meaning of “private” in the blockchain economy is that there are public chains where anyone may participate, like Bitcoin and Ethereum, and private or “closed” chains where users must be approved, such as the closed banking chains envisioned for securities clearing.
The closed banking chains (like those of the consortia R3 in U.S./Europe and NEM in Japan) would be a shared ledger for an industry group that wants to clear transactions among themselves.
While Hayek only saw private currencies for financial institutions (i.e., there would be a ChaseCoin, a CitiCoin, etc.), cryptocurrencies are emerging for many kinds of businesses across all sectors of the economy. A notable example is decentralized storage (private online cloud storage), where consumers may choose between Sia (SC), Storj (STORJ) and MaidSafe (MAID).
The CoinMarketCap listing starts to read not only as a directory of money-like cryptocurrencies, but closer to what might be Hayek’s wildest dream: a listing of a new-world economic order.
There are businesses in storage, news (Steem [STEEM] and Yours), healthcare (Factom [FCT]), financial services (NEM [XEM]), the Internet of Things (IOTA [IOTA]), blockchain as a service (BaaS) technology platforms (Stratis [STRAT]), fundraising platforms (Waves [WAVES]) and interbank transfer (Ripple [XRP]). Business cryptocurrencies are mixed in with cryptocurrency cash systems (e.g., Bitcoin, Ethereum, Litecoin, Dash and Zcash). CoinMarketCap is a listing of the rich panoply of the economy itself.
Recent blockchain economy events — the Bitcoin hard fork, the SEC ruling about ICOs and a growing awareness that blockchains are popping up in many sectors of the economy — suggest that economic principles might be a helpful tool for distinguishing hype from structural change in that these three developments appear to be significant and enduring.
The post Op Ed: Is the Blockchain Economy Ushering in a New World Economic Order? appeared first on Bitcoin Magazine.
Price analysis on BTC, ETH, XRP, LTC, ETC, August 4
In an attempt to provide transparency to customers, a group of livestock farmers in Arkansas is planning to implement blockchain technology to track the origins of meat products.
Economic development charity Heifer International published a press release on August 2 announcing a partnership between the Arkansas-based Grass Roots Farmers’ Cooperative and the British startup Provenance. By using blockchain tech, customers will be able to track meat products “from farm to fork.” The farmers’ co-op believes using the technology will boost the confidence of consumers since they will have more insight on the quality and origins of the meat they purchase.
Detailed in a separate press release published by the Grass Roots Farmers’ Cooperative, the farmers are planning to put QR codes on the meat products they sell, which customers can use to track their food on the blockchain using Provenance’s platform. In addition to the quality and the origins of the meat, customers will be able to see how the animals were raised and gain insight into the people who contributed to producing the final product.
“Americans have an increasing interest in better understanding what they’re eating. According to the 2016 Label Insight Study, 83 percent of consumers want more information about what’s in their food, and I totally believe it,” Cody Hopkins, Grass Roots general manager and founding member, wrote.
“When I learned about this technology, I thought, ‘This is the solution.’ It’s the perfect way for Grass Roots to offer folks total transparency. Provenance has developed a platform that levels the playing field for small-scale farmers and puts information directly in consumers’ hands.”
According to Hopkins, the same study showed that 75 percent of the U.S. citizens polled stated they do not trust the accuracy of food labels. The Grass Roots founding member believes utilizing blockchain tech for meat products will provide transparency, thereby improving the reputations of the farmers among consumers.
“This is a total breakthrough for the small-scale, sustainable farmer. Until now, it’s been a struggle for us to tell the story of why our foods are different from those raised in feedlots and large chicken houses. With blockchain, we can show you,” Hopkins wrote.
Hopkins added, “We can prove exactly who raised the animal and how it was raised, how many animals were raised in its batch and how they lived, and who the butcher was and how it was harvested. And all of this farm-to-fork information is authenticated by a technology that’s virtually unhackable.”
San Francisco–based Golden Gate Meat Company will be the first to trial blockchain tech for their products using Provenance’s platform. According to Heifer International’s press release, the test of the platform for meat products started on August 2.
“Our farmers are innovative, always looking for ways to incorporate the latest technology that ultimately create real value to the consumer,” said Pierre Ferrari, chair of Heifer USA’s advisory board.
“It’s only a matter of time before this becomes ‘best practice’ throughout the industry.”
The post Where Was Your Beef? How One Farmers’ Co-op Will Track Meat on the Blockchain appeared first on Bitcoin Magazine.
Australia’s largest grain exporter partnered with Blockchain startup AgriDigital to develop a Blockchain-based system for food supply chain management.