Regulators in South Korea have reportedly banned the trade of futures contracts and other derivatives tied to bitcoin.
Archives for December 7, 2017
Bitcoin Price Key Highlights
- Bitcoin price has been on a tear and seems unstoppable in its climb.
- Price has barely retraced from its rally, but potential dips on short-term time frames can be spotted.
- But with bitcoin price surging to unprecedented levels at an unprecedented pace, there’s a rising risk of a tumble as it goes.
Bitcoin price is once again setting new records but the chance for sharp profit-taking moves is building as it climbs.
Technical Indicators Signals
The 100 SMA is above the longer-term 200 SMA across all time frames, indicating that bullish momentum is very strong. The gap between the moving averages has also been widening to reflect strengthening bullish pressure.
On the 15-minute chart, it can be seen that bitcoin price is trading above an ascending trend line. Price has just made another bounce to new highs but might be due for another dip soon.
Stochastic is indicating overbought conditions once more and is starting to turn lower, possibly drawing some sellers back in. RSI has a bit more room to climb so bitcoin price might break out of the tiny consolidation to set new highs yet again.
Anticipation is building up over the launch of CBOE bitcoin futures, drawing an influx of demand from retail and institutional investors. Apart from that, the fact that bitcoin is hogging the financial headlines once more on its stellar climb has drawn more market interest.
Of course, as it establishes one new high after another, bitcoin price is seen as being more and more vulnerable to a crash. Nonetheless, price seems indifferent from these naysayers and continues climbing, especially as there seems to be no catalysts that could lead to unwinding.
CME and Nasdaq are also prepping to launch their bitcoin futures products soon, which means more availability and higher volumes. In the past, this has consistently led to strong gains and this phenomenon could carry on until the situation changes.
The post Bitcoin Price Technical Analysis for 12/08/2017 – Riding on Small Dips appeared first on NEWSBTC.
I really wanted to write about a cryptocurrency other than Bitcoin today. But Bitcoin price just won’t give us a break! After reaching a new high above $14,000 on Wednesday, the market decided to break yet another record. Testing almost $20,000 on Thursday!
Bitcoin Price Action
Bitcoin price sure did erase some of the gains at the end of the day. But it started Friday’s trading session on yet another bullish momentum.
At the pace the Bitcoin price bubble is growing, it appears we may not even see any point in counting on periodic pullbacks to any psychological market levels.
But if Bitcoin price were to test a support level after these massive gains, it might be the 23% Fibonacci retracement level $16,425.
Bitcoin Market Cap
As the king of cryptocurrencies, Bitcoin’s $297B market value has now passed Bank of America’s $288 billion. So basically, if we were to compare Bitcoin to the largest companies in the US by market cap, it would rank number 11 right after JPMorgan Chase and Exxon Mobil.
But is this enough for investors to keep pouring money and investing in Bitcoin?
Bitcoin Investment Strategy
Bitcoin backers view it as a currency and payment system of the future as well as a new kind of investment. They say it’s an emerging alternative to the USD, euro and yen and an investment such as gold, stocks or bonds.
Skeptics say Bitcoin is impossible to value, wildly volatile and a speculative play that may never gain widespread acceptance.
Should You Invest in Bitcoin?
This really depends on your personal risk tolerance, current financial situation, and future goals.
But even if you are an investor of high-risk appetite, at this point I would recommend thorough risk management ahead of time.
Personally, I believe we could see the $50,000 price level for Bitcoin before the bubble bursts. However, for all Bitcoin investors out there, it is important to set target limit orders and at least take partial profit as the Bitcoin price goes higher.
This way, they will be able to manage the risk of a potential Bitcoin bubble burst.
Needless to say, and as we always recommend to all traders, only invest the money that you can afford to lose!
The post Bitcoin price Approaching $20,000 – Market Value Passes Bank of America appeared first on NEWSBTC.
A rise in the number of cryptocurrency projects and hence the ICOs has opened up a lot of opportunities for different kinds of people to make a quick buck. While most of these opportunities are clean and legitimate, there are some which aren’t, and can be classified as “borderline extortion.”
For any crowdsale or an ICO be successful, the promoters of the project have to work hard and even spend a small fortune on marketing and promotional campaigns, so that they can build trust among the community members, who will, in turn, contribute towards the project. If there are any doubts about the legitimacy of a project, community participation in the crowdsale could be severely impacted, leading to a failure of the ICO and in turn the project itself.
Given the scenario, various reports have emerged where crypto-project promoters and developers were approached by people claiming to help in promoting the project and crowdsale over various platforms for a hefty fee. While one can’t really comment on their efficiency, turning them down could turn detrimental to the project. According to few people in the industry, these “so-called” influencers have threatened to malign the project when their services are turned down. It is claimed in few cases that some of them have attempted to extort money from the project creators, and when their demands aren’t met, the projects were targeted with negative comments and reports on BitcoinTalk, other forums, and social media platforms.
In recent days, one of the projects Zabercoin has claimed that it is being targeted by someone in a similar fashion. Juan Engelbrecht, the CEO of Zabercoin offering details about the ordeal said,
“We were recently approached by an individual by the name of Alexander Moyo on Facebook (FB). He threatened us with a bad review on our ICO page if we refuse to pay him for a favorable review. Since Zabercoin is a company with integrity and high morals, his request was declined. “
Following the rejection, the person allegedly launched a smear campaign against Zabercoin by repeatedly posting bad reviews on Facebook by using different accounts. These messages posted in every three-minute intervals further escalated beyond the social network to Twitter and BitcoinTalk. The result of such an attack is said to have caused some damage to the company’s reputation.
“According to my knowledge and analysis, we have one of the strongest FB followings for an ICO. For example, Zabercoin has more than 65,000 followers and only had 5-star ratings before him. We had no other choice but to remove all these negative and harmful reviews on FB, after which he added “SCAM” to all our FB posts. Thereafter this individual by the name of Alexander Moyo was blocked on FB.
Unfortunately, his blatant abuse did not stop with FB. He continued to victimise Zabercoin ICO by inserting the word “SCAM” to several of our posts on Twitter from @tokenspot. Subsequently, this individual was also blocked on Twitter.
As if his victimisation on FB and Twitter was not enough, he continued with this unethical and abusive practice on our BitcoinTalk (BTT) threads only five minutes after he was blocked on Twitter. He claimed that our website has a Trojan which is a very negative post. The user is strangely enough also based in the London area. The Zabercoin management team feels extremely disappointed, victimised and helpless since it was through no fault of them. The team replied with a link to verify that the website is clean: “https://www.virustotal.com/ – type our URL – all is clean!”
While speaking to NewsBTC, Engelbrecht expressed serious concern about the attack and the damage it could potentially cause not just to Zabercoin but also other projects which could become his next targets. He also urged the community to beware of such scammers who could end up destroying the whole ecosystem. At the same time, using the opportunity to defend his company against these allegations, he offered the following statement.
“As CEO of Zabercoin and a person of integrity and high morals, I strongly believe in our very innovative and good product. Therefore, I have serious concern for such unlawful victimisation not only towards us as a company but also towards other new and upcoming ICOs in the future. The crypto community should make it a priority to address such undeserved abuse and unacceptable behavior towards upcoming ICOs since launching an ICO is a very costly process.
Our website is SSL certified, contract audited by ICOrating, all team and advisor members can be verified on social platforms, our team has a proven strong track record which can be verified as well via other company websites, and then one individual dares call us a “scam”. In order for the success of crypto we need to work together to filter these scammers.”
It is indeed a cause of concern that such actors could easily destroy thousands of dollars’ worth of investment made into projects and their crowdsale with ease and it is up to the cryptocurrency community to decide how they would like to tackle such an issue. It is always advisable for those interested in investing in ICOs to conduct a thorough due diligence of any project. At the same time, they would have to keep their eyes open to spot patterns which could indicate a targeted slander campaign against the very projects they are interested in investing in. After factoring in all the inputs from various sources, it is up to the investor to decide on whether to go ahead and purchase the tokens or not.
In “It’s a Wonderful Life,” the 1940s Christmas classic, George Bailey (played by Jimmy Stewart) is the guiding force of a small-town bank, who ends up sacrificing his own dreams for the betterment of his community.
Ultimately, facing financial ruin, he begins to question what it was all for. That is when his friends appear, one by one, with a flurry of donations, reminding him of how he touched each and every one of their lives, and Bailey realizes he is a rich man after all.
Bitcoin evangelist Andreas Antonopoulos recently found himself at the center of a similar outpouring of gratitude. The author and public speaker has spent the last five years of his life traversing the globe and educating people about Bitcoin. But, as it turns out, he hadn’t exactly made himself rich along the way.
WIth the price of bitcoin soaring into the $16,000s, a grateful community has decided to give Antonopoulos’s fortunes a karmic boost. A spontaneous giving spree, fueled by social media, is under way. Thus far, more than 143 BTC, valued at $825,000, has been sent to his bitcoin address. One individual alone sent an eye-popping 37 BTC, worth $500,000.
Along with the money, people are tweeting under the hashtag #ThankYouAndreas and reminding Antonopoulos of the many ways he made a difference in their lives.
Never a Rich Man
Antonopoulos became involved with Bitcoin in 2012. He has written two books on the subject, describing in detail the technical rules governing Bitcoin in a way that a novice could understand, and has given more than 200 talks (many of them free) about Bitcoin.
It is easy to imagine that someone who knows so much about Bitcoin might have found a way to profit from it. A small investment in the virtual currency five years ago, when bitcoin was at around $6, would have netted the Bitcoin writer a humongous profit. (Bitcoin is currently listed at $16,000.) But Antonopoulos wasn’t really a speculator.
Indeed, as investor Roger Ver pointed out in one of his tweets, if Antonopoulos had put more money into bitcoin early on, he would have been a lot better off financially.
But Antonopoulos was too busy, too obsessed with spreading his vision of a world free from the strictures of legacy banks and payment systems. He wanted people to understand the technology and to appreciate its promise.
That early obsession, as he described in a recent blog post, led him to undo a lifetime of savings and eventually fall into credit card debt as he tumbled down the Bitcoin rabbit hole. He lived paycheck to paycheck for years until becoming debt-free at the end of 2016. Those bitcoins he’d collected and earned had to be cashed out along the way to support him and his family.
I did invest, Roger. Then I sold in 2013 to pay my rent. I didn’t have disposable income to work for two years without pay and invest at the same time. I should’ve gone into more debt, but that would have been irresponsible towards my family who I supported
— Andreas M. Antonopoulos (@aantonop) December 5, 2017
Because most people were not aware of Antonopoulos’s earlier struggles, some were puzzled when he recently began putting videos of his talks on Patreon, a membership platform that allows users to collect monthly subscription fees for services.
“I’m not a bitcoin millionnaire [sic],” Antonopoulos responded to one follower on Twitter. “My supporters on Patreon, many at $5/month, make it possible for me to work with independence.”
Developer Adam Beck quickly responded with the suggestion that “if ‘sign guy’ can get a meaningful start from tips, we should try [to] find a way for the community to fund @aantonop to a hodlers position.” And the community agreed.
Shortly thereafter, his number of Patreon supporters began to rise, and donations started to pour into Antonopoulos’s bitcoin address.
In addition to the funds that accumulated, accolades began to pour in from supporters far and wide on Twitter, Reddit and Patreon. Many credit him for getting them into Bitcoin in the first place, for helping them to understand it and for inspiring them to pursue careers in the space.
“I don’t know anyone as authentic, well-intentioned and universally respected in the industry,” wrote entrepreneur Ryan Selkis in a tweet.
#THANKYOUANDREAS for being a shining example of what a thought leader in the space should look like 👏👏
— Dan Hedl (@danheld) December 6, 2017
“@aantonop is by far the BEST advocate and most eloquent speaker on #bitcoin. His speeches had a HUGE influence on me,” wrote investor and author Brian Kelly.
“The community raised over $700,000 worth of Bitcoin in a matter of hours for Andreas from all over the world, which beautifully shows the power of Bitcoin itself, actually,” wrote Erik Voorhees, CEO at cryptocurrency exchange ShapeShift.
For Antonopoulos, the outpouring of support has been no less than overwhelming.
“I am going offline for a few days. I need time to process everything that happened,” he tweeted on Wednesday. “If you sent me a message in the last 48 hrs, thank you. If I don’t respond for a week or so, I apologize.”
The post It’s A Wonderful Life for Bitcoin Evangelist as Community Expresses Its Gratitude appeared first on Bitcoin Magazine.
Cryptocurrency mining marketplace NiceHash has confirmed that yesterday’s hack resulted in the loss of over 4,700 BTC.
Cryptocurrency mining marketplace NiceHash has confirmed that yesterday’s hack resulted in the loss of over 4,700 BTC.
The utility aspect of Bitcoin faced a setback yesterday as PC gamers heard from Valve Corporation’s Steam Team in a blog post that Bitcoin would no longer be accepted as payment on its digital distribution platform, Steam. Citing the volatility of the currency as well as the rising cost of fees, a representative of The Steam Team, known as “kurtis”, explained that the volatility of Bitcoin has created a problem for users trying to purchases games using the currency. Kurtis pointed out that:
The value of Bitcoin is only guaranteed for a certain period of time so if the transaction doesn’t complete within that window of time, then the amount of Bitcoin needed to cover the transaction can change. The amount it can change has been increasing recently to a point where it can be significantly different.
Kurtis further elaborated that the normal resolution mechanism on Steam is either to refund the original payment to the user, which would negate the transaction or to ask the user to transfer additional funds to cover the remaining balance. “In both these cases, the user is hit with the Bitcoin network transaction fee again.” Bitcoin was adopted as a means of payment via bitcoin payment processor, BitPay, for games on Steam on April 27, 2016.
Some users commenting on the blog seem to agree and support Valve’s decision, with many calling for utilization of alternative cryptos such as Vertcoin, IOTA, and Litecoin. Others, such as one user named “Kaj Jez”, stated,
Massively disappointing. The first purchase I ever made in Bitcoin was on Steam. As long as Steam doesn’t accept BTC I will prefer to do business with devs’ own stores that hopefully do…But as Bitcoin will undoubtedly improve itself with scalability solutions so to will Steam hopefully improve itself by rectifying this mistake and once again accepting it.
Steam, the largest digital distribution platform for PC Games, has an active user base of over 275 million users with an average of 11 games per user, according to Sergey Galyonkin’s Steam Spy API. In a Medium article, Galyonkin elaborated that 2016 sales for PC games through the Steam Platform totaled roughly $3.47 billion dollars. While it is unclear how much of that revenue resulted from bitcoin transactions during its period of acceptance, it is clear that the PC gaming community faced a major setback in utilizing Bitcoin as a means for buying games.
At the time of this writing, neither BitPay nor Steam nor Valve Corp could be reached for additional comment.
The post Out of Steam: PC Gaming Platform Ends Bitcoin Payment Option appeared first on Bitcoin Magazine.
While China continues to dominate the bitcoin mining market, North America has now gained another significant player who can help decentralize mining power. Hut 8 Mining Corp (Hut 8) and the Bitfury Group (Bitfury) have announced a partnership that will create North America’s largest bitcoin mining center, located primarily in Alberta, Canada.
“We are excited to partner with Hut 8 to expand our activities in the strategic North America market,” said Bitfury CEO, Valery Vavilov, in a statement. “We believe there is a tremendous opportunity to establish North America as one of the most important cryptocurrency mining hubs in the world.”
Known for manufacturing their own Application Specific Integrated Circuit (ASIC) chips, Bitfury is the world’s largest bitcoin mining company outside of China. Their custom hardware and software solutions eliminate the reliance on any third parties, which lowers costs and improves efficiency. Their BlockBox AC datacenter product allows for significantly shorter setup time to establish a commercial bitcoin mining center.
Hut 8 is a bitcoin mining company that will provide shareholders access to the price appreciation of bitcoin. Once the partnership is finalized, Hut 8 will control what they believe to be the largest cryptocurrency mining farm in North America: Hut 8 will gain immediate control over 22 bitcoin mining datacenters spread across Alberta.
The expectation is for Hut 8 to be listed on the Canadian stock exchange during Q1 of 2018 and increasing control over an additional 35 datacenters. Hut 8 anticipates that through a combination of existing Bitfury sites and new installations, they will scale to 60 or more datacenters during 2018.
The datacenters will be comprised of Bitfury’s containerized bitcoin mining units called Blockboxes, containing Bitfury’s 16nm ASIC chip, which they claim is one of the most efficient on the market. Bitfury will be providing the infrastructure for the partnership via the aforementioned assets and Hut 8 will own and operate the centers.
On December 4, 2017, Hut 8 is made available an approximate 13,200,000 shares on a private placement basis through GMP Securities L.P., worth approximately $25.7 million ($33 million CAD); the proceeds of which will be applied towards the initial acquisitions described above.
Also making moves in the North American mining market, Giga Watt has been promoting its own modular datacenter design called “Giga Pods.” While Giga Watt doesn’t have custom hardware solutions, they do allow for new entrants to buy and run their own hosted mining rig and potentially make money. It will be interesting to watch the development of these companies in North America over the course of 2018.
The post New Bitcoin Mining Centers Set to Increase North American Market Position appeared first on Bitcoin Magazine.
As the price of Bitcoin reaches its most vertigo-inducing figure to date, few in the space would consider giving up a portion of one of their coins for something as trivial as a computer game. I mean, digital cats are one thing, but the latest Call of Duty, or Fifa? Nah, better hold onto those precious satoshis to see if super-bull John McAfee is even half right with his million dollar price call. It’s just as well that the majority of folks are well and truly in the hold camp too as online video games market Steam has announced that they will no longer accept Bitcoin for use as a payment method.
The platform, which is by far the most popular way to buy new games for the PC, announced Wednesday that they were ceasing all payments using Bitcoin. In a statement on their website, they claimed that with the current volatility in price, it was difficult to use the world’s best performing cryptocurrency in a business sense:
“Historically, the value of Bitcoin has been volatile, but the degree of volatility has become extreme in the last few months, losing as much as 25% in value over a period of days. This creates a problem for customers trying to purchase games with Bitcoin. When checking out on Steam, a customer will transfer x amount of Bitcoin for the cost of the game, plus y amount of Bitcoin to cover the transaction fee charged by the Bitcoin network. The value of Bitcoin is only guaranteed for a certain period of time so if the transaction doesn’t complete within that window of time, then the amount of Bitcoin needed to cover the transaction can change. The amount it can change has been increasing recently to a point where it can be significantly different.”
It’s understandable from a business point of view. If you were to transfer around $20 of Bitcoin to the website for a game, and it takes two hours to confirm on the network, that’s enough time for the value of the BTC sent to be radically different by the time Steam can do anything with it. Naturally, as they’re trying to run a business, rather than an investment fund, this is problematic.
Steam cited another reason for their revoking of Bitcoin services too: the high cost of transactions. It’s understandably difficult to get someone to voluntarily send a payment if a large percentage of said payment needs be included as a fee. The increase in interest in Bitcoin has led to a situation where users are forced to up their fees to get the network to recognise and process their transaction.
This leads to an interesting dichotomy. Do you include a large fee, and pay way over the odds for the goods or service you’re buying but at least you’ll ensure that the value will be more likely to be correct when it arrives with the vendor? Or, do you scrimp on the fee, and risk the value of what you send being completely mismatched with the initial price? It’s understandable that these issues are causing difficulties to vendors such as Steam.
Steam didn’t completely dismiss Bitcoin, however. They did concede that if the volatility calms down, and transaction fees lower, they would consider reintroducing the payment method. For now, however, it remains more problematic than convenient to include it. Therefore, Steam users must revert to using more traditional payment methods. Let’s face it anyway, it makes a lot more economic sense to use a currency that is guaranteed to lose value (like the dollar) for day to day purchases, whilst saving that super-rare digital gold for a rainy day?
The post Steam Announce They Will No Longer Support Bitcoin appeared first on NEWSBTC.