Bitcoin price extended losses and traded below the $3,400 and $3,375 supports against the US Dollar.There was a break below a major bullish trend line with support at $3,405 on the hourly chart of the BTC/USD pair (data feed from Kraken).The price is trading with a bearish bias and it could extend declines below $3,350 and $3,320.Bitcoin price failed to stay above $3,400 and extended decline against the US Dollar. BTC price broke the $3,375 support, opening the doors for more losses below the $3,320 support.Bitcoin Price AnalysisThere was a downside reaction after bitcoin price failed to trade above the $3,430 and $3,440 resistances against the US Dollar. The BTC/USD pair declined below the $3,400 support to move into a bearish zone. Sellers pushed the price below the 61.8% Fib retracement level of the last wave from the $3,372 low to $3,490 swing high. Finally, there was a break below the $3,375 support and the 100 hourly simple moving average.Moreover, there was a break below a major bullish trend line with support at $3,405 on the hourly chart of the BTC/USD pair. The pair traded to a new weekly low at $3,350 and later corrected a few points. It traded above the 23.6% Fib retracement level of the recent decline from the $3,444 high to $3,350 low. The current price action is bearish and any upside correction towards the $3,400 level could find sellers. The main resistance is near the $3,400 level and the 50% Fib retracement level of the recent decline from the $3,444 high to $3,350 low. On the other hand, if the price resumes its decline, there could be a break below the $3,350 low.Looking at the chart, bitcoin price is clearly signaling bearish extension below the $3,375 and $3,350 levels. The next key support is at $3,320, below which the price might test the $3,200 level.Technical indicatorsHourly MACD – The MACD is currently gaining strength in the bearish zone, with no sign of a recovery.Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently in the oversold levels, with neutral moves.Major Support Level – $3,350Major Resistance Level – $3,400
Archives for February 5, 2019
The total crypto market cap declined sharply and broke the $108.00B support level.EOS price traded lower and broke the $2.38 and $2.35 support levels.Binance Coin (BNB) outperformed and traded higher by more than 9%.Bitcoin cash price is down more than 5% and broke the $115 support level.Tron (TRX) price retreated from well above $0.0265 and tested the $0.0255 support.The crypto market declined heavily, dragged by bitcoin (BTC) and Ethereum. Binance coin (BNB) outperformed while coins like BCH, ripple, EOS, TRX and ADA declined sharply.Bitcoin Cash Price AnalysisBitcoin cash price failed to stay above the $120 resistance and declined below the $118 support against the US Dollar. The BCH/USD pair extended losses and traded below the $115 support level. The pair is currently trading in a bearish zone and it could test the $112 or $110 support level.On the upside, the previous support near the $115 level is likely to act as a solid resistance. The next key resistances are $118 and $120.EOS, Tron (TRX) and BNB Price AnalysisEOS price failed to gain momentum above the $2.40 level. As a result, there was a sharp decline below the $2.38 and $2.35 support level. An immediate support is at $2.30, followed by the $2.25 level.Tron started faced a strong selling interest near the $0.0270 level after the recent upward move. TRX price started a fresh decline and traded below the $0.0262 and $0.0260 support levels.Binance coin gained momentum recently and rallied more than 9%. BNB price traded above the $7.20 and $7.50 resistance levels. The next key resistance is at $8.00, while supports are seen near $7.50 and $7.25.Looking at the total cryptocurrency market cap hourly chart, there was a crucial rejection noted near the $110.00B resistance, resulting in a sharp decline. The market cap declined below the $108.00B support and a bullish trend line on the same chart. It tested the $106.50B level and it seems like there are chances of more losses towards the $105.00B or $102.00B levels in the coming sessions. Hence, there are chances of more losses in bitcoin, ETH, tron, litecoin, EOS, ripple, stellar, litecoin and other altcoins in the near term.
Ripple price declined further and broke the $0.2940 and $0.2900 support levels against the US dollar.There is a key bearish trend line in place with resistance near $0.2960 on the hourly chart of the XRP/USD pair (data source from Kraken).The pair is trading in a bearish zone and it could continue to move down towards $0.2820 or $0.2800.Ripple price accelerated losses against the US Dollar and Bitcoin. XRP/USD settled below $0.2940 and any recovery from the current levels could find a strong selling interest.Ripple Price AnalysisThere was a daily close below the $0.3000 support in ripple against the US Dollar. The XRP/USD pair declined further and broke many important supports near the $0.2900 level. Sellers were able to clear the key $0.2940 support and the 100 hourly simple moving average. It opened the doors for more losses and the price declined below the $0.2900 support level. It traded to a new monthly low at $0.2867 and it seems like sellers are in full control. At the moment, the price is consolidating losses above $0.2870, with no bullish angle.An initial resistance is the 23.6% Fib retracement level of the recent decline from the $0.3110 high to $0.2940 low. However, the main resistances are near the $0.2920 and $0.2940 level. The previous support was also near $0.2940, which is likely to prevent gains. Besides, the 50% Fib retracement level of the recent decline from the $0.3110 high to $0.2940 low is near the $0.2930 level. Finally, there is a key bearish trend line in place with resistance near $0.2960 on the hourly chart of the XRP/USD pair. Therefore, if there is an upside correction, the price is likely to face sellers near $0.2920, $0.2930 and $0.2940.Looking at the chart, ripple moved into a bearish zone below $0.2960. If sellers remain in action for a long time, there is a risk of a drop below the $0.2800 support level.Technical IndicatorsHourly MACD – The MACD for XRP/USD is gaining momentum in the bearish zone.Hourly RSI (Relative Strength Index) – The RSI for XRP/USD has reached the 20 level, with a bearish angle.Major Support Level – $0.2850Major Resistance Level – $0.2940
ETH price declined sharply and broke the $105 support area against the US Dollar.There was a break below a major bullish trend line with support at $105 on the hourly chart of ETH/USD (data feed via Kraken).The pair dived towards the $100 support area and it is currently consolidating losses.Ethereum price declined heavily against the US Dollar and bitcoin. ETH/USD is now at a risk of more losses below the $100 and $958 support levels in the near term.Ethereum Price AnalysisAfter multiple rejections near the $107 and $108 resistance levels, ETH price declined sharply against the US Dollar. The ETH/USD pair tumbled and broke the $105 and $103 support levels. There was also a close below the $105 level and the 100 hourly simple moving average. The decline was sharp since the price even broke the last swing low near the $102 level. It opened the doors for a test of the 1.236 Fib extension level of the last wave from the $103 swing low.More importantly, there was a break below a major bullish trend line with support at $105 on the hourly chart of ETH/USD. The pair tested the $100 support level, where buyers emerged. At the moment, the price is correcting higher above the $101 level. There was a break above the 23.6% Fib retracement level of the recent decline from the $106 high to $100 low. However, there are many hurdles on the upside near the $103, $104 and $105 levels. The 50% Fib retracement level of the recent decline from the $106 high to $100 low is also near the $103 level. Besides, the previous support near the $105 level might act as a strong resistance for buyers.Looking at the chart, ETH price is clearly under a lot of pressure below the $107 and $105 levels. That’s why there is a risk of more losses below the $100 and $98 supports.ETH Technical IndicatorsHourly MACD – The MACD for ETH/USD is placed strongly in the bearish zone.Hourly RSI – The RSI for ETH/USD is currently in the oversold zone, with no recovery sign.Major Support Level – $100Major Resistance Level – $105
The cryptocurrency market once again featured almost nonexistent volatility on Tuesday, though the Bitcoin price continues to feel uncomfortably heavy.
The global average for Bitcoin pushed upward a slight amount, to $3,470, in the 24-hour period. Notably, it dropped on Bitfinex to $3,505. This is important because if Bitfinex pushes downward, the rest of the crypto market is likely to go lower.
For various reasons, Bitfinex trends higher than the rest of the market, as we’ve noted repeatedly in these daily round-ups.
Sometimes it creates a questionable arbitrage opportunity of up to $100. Litecoin broke through $34 mark on the global average side of things. EOS appears to want $2.50 pretty badly but stands at $2.39. Stellar’s now under eight cents, while Bitcoin SV keeps losing. Read on for more details on each market.
Bitcoin Price Briefly Dips Below $3,400
Last night’s Coinbase trading brought Bitcoin down to $3,399 briefly, before a rebound which coalesced in the price by press time: $3,424.
Over at Bitfinex, which seems to set the tone for much of the market (if it’s high, others are not quite as high, and if it’s low, others are lower), BTC/USD had a negative True Strength Indicator going on.
One trader thinks this mid-week will probably lead to a massive break-up of the monotony in recent Bitcoin trading .
Litecoin Price Breaks Through $34
Litecoin has finally broken through the $34 barrier it’s been eyeing for a week.
If the expectation of a downturn in Bitcoin proves true, and Litecoin continues to push upwards, we may be entering a new phase of the altcoin-Bitcoin relationship.
We like to use Coinbase charts because they’re reflective of the retail market, rather than the strict trading market. Litecoin is a bit under $34 there, but it did spend part of the day as high as $34.11.
As has been the case for several days now, Litecoin’s volume topped $700 million – more than XRP or EOS, both of which have higher market capitalizations at this point.
EOS Eyes ‘Neutral’ Indicator
As stated before, EOS traders would likely love to see a round figure such as $2.50 this week.
However, it seems every time EOS gets back above $2.40, sell pressure presents itself. Still light years away from its double-digit highs, EOS is at least pushing back toward “neutral” on the buy/sell rating indicator scale.
Stellar Price Continues to Slide
Stellar found its way into the 7 cent range today. The last time we mentioned it in this column, it was solidly above $0.10. The dip is not relative to XRP, which is maintaining its $0.30 price despite this reporter’s feeling that a round $0.25 is likely on the cards for it.
That’s likely an interesting buy opportunity for Stellar at this point, to be clear. XLM was getting a “sell” recommendation by press time, but the company has a habit of releasing news that floats the market.
Is Bitcoin SV on its Last Legs?
If Bitcoin SV keeps this up, it could find itself knocked smooth out of the top 10.
The Bitcoin fork, which has an interesting development community actively building projects not possible with smaller blocks, hasn’t gone a day without losing some value in the past few weeks.
Just made https://t.co/8KiQh4RZn1 so it’s easy for you to use files stored on the blockchain.
Demo website – 100% on chain: https://t.co/iveDET8HDR
1000 thanks to @_unwriter for inspiring to create more.
— Rangel Wulff (@rangelwulff) January 29, 2019
It started life with a surprisingly high valuation across markets. Gradually, though, it’s working toward becoming worth half as much as the original Bitcoin Cash chain. Neither chain has managed to recapture the value lost beginning in November. A success story it is not, so far. The antics of community leader Craig Wright haven’t helped much:
The irony is I am a cult hero to Anarchists after having designed a system that helps stop piracy, that tracks money transfers and allows privacy and NOT anonymity.
— Dr Craig S Wright (@ProfFaustus) February 5, 2019
Let’s hope, for the sake of those deep in $100+ SV coins, that we’re not writing about a $50 BSV next week. However, if the Bitcoin shakeout takes place this week, we could be doing just that with ease.
Featured Image from Shutterstock. Price Charts from TradingView.
As Bitcoin continues to trade within its recently established range between $3,400 and $3,500, the markets have been trading sideways, with major cryptocurrencies like Ethereum (ETH) trading flat, as other cryptocurrencies, like Litecoin (LTC), have seen some relatively large price gains.Although the markets have been quiet as of late, analysts are pointing to developing fractal patterns to possibly give traders guidance as to where some major cryptocurrencies, like Ethereum and Litecoin, are heading next.Ethereum (ETH) Price May Soon SurgeAt the time of writing, Ethereum is trading down less than 1% at its current price of $107.21. Over the past week, Ethereum has been ranging between $105 and $110, and is currently trading directly between these two price points.It is important to note that ETH has been able to hold steady above $100, which is an important psychological level for the cryptocurrency.In a recent tweet from popular cryptocurrency analyst, Luke Martin, he explained that ETH may be gearing up for an upwards price based on an analysis of its fractal patterns.“$ETH fractal/pattern that caught my eye today scrolling through timeframes. Will be fun to track it’s progress… fractals aren’t something I would base a trade on but they can make for a nice guide. still need a setup or confluence with my actual approach,” Martin explained.$ETH fractal/pattern that caught my eye today scrolling through timeframes. Will be fun to track it’s progress.*fractals aren’t something I would base a trade on but they can make for a nice guide. still need a setup or confluence with my actual approach. pic.twitter.com/mrBJYBeVd7— Luke Martin (@VentureCoinist) February 4, 2019Martin importantly noted that fractal patterns are not necessarily the best trading signal, but rather act as a roadmap that can give investors and traders alike insight into which direction a cryptocurrency may begin to move.Other cryptocurrency analysts have expressed a bullish sentiment regarding Ethereum, with The Crypto Dog recently saying that he sees ETH seeing some price gains in the coming days or weeks.I want in $ETH pic.twitter.com/CzRtfLVhoB— The Crypto Dog📈 (@TheCryptoDog) February 3, 2019Litecoin (LTC) Fractal Patterns May Point to an Imminent DropLitecoin has seen some decent gains over the past week, surging from lows of $30 to highs of $35 before settling at its current price of $34.24. Although LTC has seen some positive price action over the past week, it is still down significantly from its monthly highs of over $40.Recently, multiple prominent analysts have expressed an overwhelmingly bullish sentiment regarding Litecoin that is based on a mixture of technical strength and its upcoming Confidential Transactions feature that will likely be implemented later this year.Despite this positive sentiment, Hasaka, a popular cryptocurrency analyst on Twitter, recently noted that LTC/BTC’s fractal patterns may signal that a drop is imminent.“$LTC F R A C T A L… Same pattern repeating as the previous top, albeit on a smaller scale,” he said.$LTC F R A C T A LSame pattern repeating as the previous top, albeit on a smaller scale. pic.twitter.com/Fr698UonNS— Hsaka (@HsakaTrades) February 4, 2019If this fractal proves to be true, it is likely that the drop will not be quite as large as Litecoin’s January dip, as the current fractal is much smaller than that seen last month.Featured image from Shutterstock.
The bitcoin bull market was a bubble that burst in 2018, but the “painful” event had a major upside: It attracted a lot of money and talent to the burgeoning industry. That’s the assessment of Matt Hougan, the global head of research at Bitwise, creator of the world’s first cryptocurrency index fund.
“It was a massive run-up and a massive pullback,” Hougan told Bloomberg’s Barry Ritholtz on his podcast. “[It was a] total bubble.”
While financial “bubbles” understandably carry a negative connotation, Hougan says the bitcoin bubble fueled intense media interest in blockchain and the crypto market.
Moreover, soaring crypto prices lured a tremendous talent pool to the industry that it otherwise might not have wooed but for the spectacular daily headlines in 2017.
Hougan: Bitcoin Bubble Resembles Tech Bubble
“It did the same thing that happened with the Internet, which is it attracted a huge amount of talent. It did bring a lot of capital and interest in development to the ecosystem.”
“So, I do think interesting things will be born from that. But, yes, it was a difficult year in 2018.”
“I think [bitcoin] is the next dotcom. Remember, the dotcom bubble created Pets.com, but it also created Amazon.”
Hougan also says that 95% of cryptocurrencies that exist today will crater into extinction ― and that’s a good thing for the market.
“There are 2,000 cryptocurrencies out there; 95 percent of them are useless and will die a painful death. The sooner that happens, the better.”
“But from those ‘ashes,’ will merge important things. Just like from the dotcom ashes emerged Amazon, Google, and Facebook, etc.”
So basically, Hougan says it’s important for the crypto market to purge all the sham virtual currencies so that the worthy ones can survive and thrive.
Bitcoin Is the New Millennial Gold
Hougan also says bitcoin is the millennial generation’s version of gold. He pointed to recent surveys showing that millennials (individuals born from 1981 to 1996) have a favorable view of cryptocurrencies compared to baby boomers (people born between 1946 and 1964).
“Every generation has an asset that they love or a way of getting exposure that they love.”
“The Greatest Generation love gold, then people loved active mutual funds. Gen X loved hedge funds. Millennials love crypto.”
Hougan attributes this to the decentralized nature of crypto, which cuts out the middle man. He believes that’s particularly appealing to the younger generation.
Hougan’s optimistic view of millennials is a stark contrast to that of CNBC analyst Scott Nations, who says millennials are too stupid to realize that bitcoin is a bubble they should avoid like the plague.
Matt Hougan: Don’t Lose Perspective
As for the crypto market’s wild daily price swings, Hougan noted that established corporate juggernauts like Amazon, Apple, and GE have all weathered massive stock market fluctuations on their rise to the top.
Accordingly, he doesn’t pay too much attention to the constant media hype that bitcoin is dead. He says all this cyclical lurching is part for the course, so everyone needs to calm down.
“Bitcoin’s gone through six or seven, 70 percent-plus drawdowns in the past. And each of those has set the stage for a new rally.”
“I’m not saying that will necessarily happen here, but it’s down 70 percent. It’s up 300 percent over last two years. So it depends on your perspective.”
Institutional Investments Will Come
Like bitcoin bull Mike Novogratz, Matt Hougan is confident that institutional money will eventually pour into the market; it’s just a matter of time.
To buttress this claim, Hougan noted that Fidelity is building up its blockchain unit to facilitate the mainstream adoption of crypto.
“Fidelity is hiring up to 150 people to build a way for institutional investors to buy crypto and store it with a name they trust. One of the greatest brand names in the future.”
“We know, we had conversations with 2,000 institutional and financial advisers last year. There is dramatic interest in crypto. They want good ways to get exposure.”
‘Stay the Course’: Billionaire Bitcoin Bull Mike Novogratz Has Advice for the Bitter Crypto Winter https://t.co/cRQ1FfzutU
— CCN.com (@CryptoCoinsNews) February 3, 2019
Featured Image from Shutterstock
Bitcoin’s “lightning torch” saw none other than Twitter CEO Jack Dorsey snatch up the ongoing payment experiment and pass it on Tuesday.
As CoinDesk reported today, users have been passing around a so-called “lightning torch” – a running game wherein each participant adds a little bitcoin to a payment, then passes it onto someone on Twitter that they trust – in order to spread awareness of the technology, widely seen as the future of bitcoin payments since payments are fast and scalable.
With Dorsey’s participation, the payment has now reached roughly 2,860,000 satoshis (worth nearly $100 at the time of press). To date, roughly 150 people have taken part in what has become a global exercise.
Crypto podcast host Matt Odell was the one nudging Dorsey to participate, tweeting: “You ready to carry the torch? Send me an invoice for 2,860,000 sats.”
Perhaps a bit unexpectedly, Dorsey responded on Twitter the next day, posting an invoice – similar to a regular invoice in that it’s used to request and retrieve a certain amount of funds. Odell then sent the necessary funds to Dorsey, before Dorsey tweeted simply:
“Cool example of #BitcoinTwitter experimenting on the lightning network.”
Dorsey didn’t have the torch for long. He quickly sent it on to Lightning Labs CEO Elizabeth Stark, as the point of the game is to keep passing it along
Dorsey is also CEO of Square, a payment app. Dorsey is an investor in Lightning Labs and has said positive things about the technology in the past. After his initial tweet Tuesday, Dorsey responded to a user saying that he holds bitcoin but no other cryptocurrency.
“Bitcoin is resilient. Bitcoin is principled. Bitcoin is native to internet ideals. And it’s a great brand,” he went on to write.
Speaking at CoinDesk’s annual Consensus conference last year, he said he hopes that bitcoin will become the internet’s “native currency.”
Jack Dorsey image via CoinDesk
Red Bull Aston Martin have announced a partnership between themselves and a cryptocurrency company. The deal between FuturoCoin and the sixth-most-winning car constructors in the racing championship is the first of its kind for Formula 1.Whilst other sporting teams have also started to embrace blockchain technology and digital assets in some way, crypto’s disruption of professional sports remains niche. Perhaps with a huge name like Red Bull Aston Martin announcing their latest crypto sponsor, more teams from other sports will seek similar opportunities to explore cutting-edge technology going forward.FuturoCoin Becomes First Digital Asset Firm to Sponsor F1According to a story in racing news publication The Checkered Flag, Red Bull Aston Martin has become the first Formula 1 team to partner with a cryptocurrency company. The energy drink firm-turned multi-sport-sponsors will be working with the little known digital asset Futurocoin going forward.For those unaware, Futurocoin is based on the same code as the more established digital currency, DASH. It claims to provide users four second transaction times and low fixed fees.The Team Principal of Red Bull Racing, Christian Horner, stated the following about the new partnership:“In recent years, the rise of blockchain technology and cryptocurrencies has been truly remarkable, and we’re delighted to be the first Formula One team to embrace this, through our partnership with FuturoCoin.”We are delighted to partner FuturoCoin in #F1‘s first ever cryptocurrency sponsorship! 🏁 More here 👉 https://t.co/y2aemOcxRq pic.twitter.com/B71OuVytmJ— Red Bull Racing (@redbullracing) February 5, 2019Similarly optimistic about the partnership is Paulina Woźniak, CEO of FuturoCoin’s management company. She stated the following with regards the deal:“We are very proud that FuturoCoin will be the first cryptocurrency in the world to appear on a Formula One car. In addition, we are looking forward to working alongside Aston Martin Red Bull Racing, a prestigious brand that is recognised across the world.”Professional Sports Slowly Embracing Blockchain and CryptocurrencyThe partnership between Red Bull Aston Martin and FuturoCoin might be a first for Formula 1. However, it is certainly not the only time a professional sports team has expressed similar interest in blockchain technology or cryptocurrency.Last year, NewsBTC reported on several stories of sporting clubs making moves to explore the financial and technological innovation. Last summer, Italian football club Rimini FC became the first team to be bought using cryptocurrency. Then in October, French football club Paris Saint-Germain detailed plans to launch its own digital asset.In other sport-related cryptocurrency news, NBA team the Sacramento Kings became the first professional sports club to mine digital assets from their own stadium in June 2018. The club turned part of their state-of-the-art sporting venue into a data centre, with profits generated going towards local charitable causes. Related Reading: eToro Signs Sponsorship Deals with Seven Premier League TeamsFeatured Images from Shutterstock.
A lightning network payment has been making global rounds on Bitcoin’s secondary layer. The payment, slowly accumulating in value with each passing, is 2.8 ($96) million satoshis strong and still going. Dubbed the Lightning Torch, the payment has changed hands nearly 150 times across 39 countries.
Traditionally, participants announce their ownership over Twitter to seek out the next recipient. Hopeful torch bearers respond to the tweets with a lightning network invoice, and after choosing a user to trust, the current holder adds a discretionary amount to the payment’s sum and sends it to the next holder.
The experiment has been making an impression on the community; so far, Andreas Antonopoulos has been in on it, and most recently, at the time of this writing, Twitter co-founder Jack Dorsey even took up the flame from Matt Odell.
The phenomenon is an exercise in restraint, trust and altruism that personifies Bitcoin’s complicated relationship between trusted and trusteless operations and parties. In this way, it’s fitting. The remarkable origin of the initiative is equally as unconventional as its carrythrough: it all arose from the curiosity and educationally incentivized agency of an anonymous Twitter personality masquerading as an astronautical feline.
Kindling the Fire
Hodlonaut, a self-described “hodl enthusiast” who has been “fulltime bitcoin” since the middle of 2018, is represented by a space-suit-clad tomcat. Superimposed in front of a lunar backdrop, the tomcat’s expression and soft smile signal optimism. His suit is stitched with a BTC logo on the shoulder and NO2X (No Segwit 2X) and UASF (user-activated soft fork) acronyms on his right chest.
The diehard Bitcoin maximalist has been involved with Bitcoin since early 2013, and he’s racked up a respectable following on Twitter. He’s used this platform to ponder Bitcoin philosophy and evangelize like most of Crypto Twitter. But he’s also used it as a chance to put his ideas into action, most recently with the Lightning Torch initiative.
Speaking to Bitcoin Magazine, hodlonaut reflected on the experiment.
“It’s been interesting to see reactions from some parts of the community. Some scowled at this from the beginning because it was based on community trust,” instead of the same baked-into-the-code trust that inspires mantras like “Don’t trust; verify.”
Hodlonaut is more interested in actions than mantras, so he started testing out whether or not you could trust the community to hold itself accountable — if community overwatch could make a trust-dependent act trustless in its own way. The experiment began with a giveaway on Twitter, where hodlonaut said he would send satoshis through the lightning network to anyone who replied to his thread. 250 people replied, and good to his word, hodolonaut said he “brushed up on his typing skills and sent everyone some sats.”
This altruism was stoked by the excitement hodlonaut felt when he first bootstrapped his raspberry pi to run lightning.
“Transacting with lightning network is the exact same excitement I had with bitcoin when I first discovered it.”
He wanted to spread his excitement through the community, so he took the giveaway a little further. On January 19, he made the “spur-of-the-moment” decision to send 100k satoshis ($3.40 USD) to a randomly selected stranger who replied to the new giveaway.
“This thing,” as he called the idea behind the experiment, “just fell into my head. I had no ambitions and I just threw it out there.”
Some LN fun..
– I send 100k sats with https://t.co/va7XSnFii0 to the first person I choose to trust that replies to this.
– That person adds 10k sats and sends 110k to someone (Either from reply to a new tweet, or this thread)
.. and so on
How many sats before it breaks?
— hodlonaut🌮⚡🔑 (@hodlonaut) January 19, 2019
He may have haphazardly thrown it out, but the community very intentionally caught and carried it on. Hodlonaut’s impulsive act of experimentation has developed into a full-fledged social experiment and movement. After reaching its first bearer, the transnational torch has been routed through each continent (save Antarctica, which would be too impressive) and 39 countries, including the bulk of the EU. Despite its creator initially believing that it “would go 4, 5, 6 hops and someone would take it and no one would [care],” the torch has passed between 139 unique users 149 times.
Total capacity is up to 2.2 bitcoin, and hodlonaut is optimistic that it will reach the lightning network’s ~4.3 million satoshi limit before the experiment terminates, at which point, he intends to ask the final bearer to donate the funds to BTC Venezuela, a cryptocurrency charity.
Don’t Let the Flame Die Out
The flame, while still well fed and protected, has met trouble during its marathon across the world.
On two separate occasions, users have treated the torch as a personal boon rather than a community exercise, confirming hodlonaut’s fears that greed may put the torch out. These opportunists have claimed the funds for themselves, refusing to conform to the precedence of passing it along. Their attempts to snuff out the flame, however, have only made it stronger and emboldened the community’s resolve.
The first time, a few days in, the torch was lit with 250k satoshis ($8.60 USD), when one recipient took it for themselves. To salvage the situation, the sender decided to relight the torch with their own funds and resend it to a more trustworthy user. The same story happened the second go-around at 2.51 million satoshis ($86 USD). This time, the taker justified his actions with a tweet that read, “I’ll seize it because I can, and no one can stop me,” which hodlonaut interpreted as meaning that you shouldn’t trust anything but code.
Luckily, Klaus Lovgreen, the person who sent it to this opportunist, followed the example set the first time the torch was threatened and paid the loss out of pocket, sending it to a new user. His “good deed turned out to be profitable,” hodlonaut said, after he directed users to Lovgreen’s tippin.me page to compensate him for his good will.
Keep It Rolling
The torch has survived two potential roadblocks and has grown out of hodlonaut’s influence. But that’s just the way he’d like to have it, even when the torch was on the verge of being extinguished.
“I wouldn’t have restarted it because I think this needs to be organic.”
The organic nature of the initiative and the community’s willingness to sacrifice personal funds to keep it going have made the experiment in community trust a success. Hodlonaut said that this shows both an increasing interest in lightning and the resolve of a community sparked by an exciting new technology, even in the harsh market climate.
“A lot of people have been onboarded to lightning. Personally, this is the most community feeling I’ve felt with bitcoin for a long time. There are so many people out there who are willing to educate each other and help people,” he said, expressing that lightning is important for community morale in times of a bear market.
You can track the torch’s race to the lightning network cap here. If it makes it to the end, a handful of anonymous donors have said that they will match the final amount (just shy of $150 USD) to be donated to BTC Venezuela. If you are interested in donating to BTC Venezuela or matching the donation as well, please consult the charity’s website or reach out to hodlonaut on Twitter.