Thailand’s vibrant digital asset scene was shaken earlier this month when its most popular exchange unexpectedly announced an imminent closure. The news left crypto traders dazed and confused and fearing a wider crackdown from the military dominated government.A Dark Day For Thai CryptoSeptember 2 was a dark day for the crypto industry in the Asian nation as its most popular exchange told clients they had a month to clear out their accounts. The only explanation BX Thailand gave to its large customer base was that it wanted to ‘focus on other business opportunities’, which made little sense since the SEC registered exchange was clearly successful.The panic that ensued caused the price of Bitcoin to trade at ten percent lower than the rest of the world on the exchange as Thai traders dumped digital assets. BTC price dropped as low as $9,000 on BX as fears of a failure to liquidate escalated.Two weeks later and the situation is still no clearer. The company has yet to come forward with any real reasoning for the move and attempts to reach management have been unsuccessful according to the Bangkok Post.Bitcoin Co. was launched in 2013 and a year later bx.in.th was created to provide a trading platform for crypto assets. The firm was a pioneer in the industry at the time and one of the first to become officially authorized by the Finance Ministry.Speculation has grown over the snap closure and competing platforms suggest that BX may have been bamboozled by bureaucracy. Specifically, an unfeasible level of daily transaction reporting required by regulators.Founder of Satang Corporation Co., Poramin Insom, suggested that the company just may not have been prepared for this epic workload or what it considered client privacy violations.“BX [Bitcoin Co] may be worried about providing customer information and trading information to the SEC on a daily basis,”Competition in the Kingdom has increased and rival platform Bitkub chief executive, Jirayut Srupsrisopa, suggested that this may have been the cause. However, this is very unlikely though since BX was already the market leader, and they do not usually just shut up shop because of a new exchange or two opening up.President and chief executive at the ACIS Professional Centre, Prinya Hom-anek, believes more clarity is required from regulators.“We need market surveillance like the stock exchange has. There will definitely be future revisions [of the digital asset royal decree]. This is a case study, watched closely by global actors, for the SEC’s next move,”Yet again, regulation and excessive bureaucracy appears to have been the catalyst for another crypto closure. Thailand’s newly appointed military backed government has an unhealthy obsession with reporting and officialdom. The regime has recently implemented a country wide crackdown on the movements of its large expatriate community which has sent many of them packing.If crypto exchanges are its next target, BX will not be the first to close its digital doors or seek friendlier climes.Image from Shutterstock
Archives for September 16, 2019
The total crypto market cap is holding the main $250.0B support area, with positive signs.Bitcoin price could recover as long as it is above the $10,000 support area.Litecoin (LTC) price is eyeing an upside break above the $73.00 and $75.00 resistances.Bitcoin cash price is currently consolidating above the key $300 support area.EOS price is trading in a range above the $4.000 support, with bullish signs.Stellar (XLM) price is likely to make another attempt to surpass the $0.0600 resistance.The crypto market cap is showing positive signs, while bitcoin is correcting. Ethereum (ETH), LTC, ripple, bitcoin cash, EOS, TRX, and stellar are likely to head higher.Bitcoin Cash Price AnalysisBitcoin cash price settled above the key $300 support area recently against the US Dollar. The BCH/USD pair even surpassed the $305 resistance and it is currently consolidating gains. An immediate resistance is near the $315 level, above which the price could even break the $325 resistance.On the downside, the key supports are near $302 and $300. If there is a bearish break below $300, the price could start a fresh decline to $285 in the near term.Litecoin (LTC), EOS and Stellar (XLM) Price AnalysisLitecoin price is holding the $70.00 support area and it is currently showing positive signs. LTC price may soon attempt to break the $73.00 and $75.00 resistance levels. The next important resistance is near the $82.00-83.00 zone. On the downside, the main support is near the $70.00 level.EOS price climbed above the $3.850 and $4.000 resistance levels to move into a positive zone. The price is currently consolidating gains and it could continue higher if it breaks the $4.150 resistance. On the downside, a break below $4.000 might call for a correction towards $3.850.Stellar price is slowly rebounding from the $0.0570 support area. However, XLM price is facing a strong resistance near the $0.0600 level. If there is a successful break above $0.0600, the price could start a strong recovery towards the $0.0625 and $0.0650 resistance levels.Looking at the total cryptocurrency market cap 4-hours chart, there was a downside correction recently from the $260.0B resistance level. However, the decline found support near the $255.0B level and a connecting bullish trend line. It seems like there is a strong support forming near the $255.0B and $250.0B levels. On the upside, a break above the $260.0B resistance level could start another rise towards the $280.0B resistance area. Conversely, a break below the $250.0B support area might ignite bearish moves in bitcoin, Ethereum, EOS, litecoin, ripple, XLM, BCH, ADA, BNB, TRX, ICX, and other altcoins in the coming sessions.
This week has been all about Ethereum. Finally the second largest crypto asset on the planet appears to be moving without the influence of its big brother dictating things. ETH prices are on the up again today and the fundamentals keep improving.Ethereum Golden CrossIt has been another good day for Ethereum prices which have finally reached the psychological $200 level after a month trading below it. A dip back to the 50 hour moving average just below $190 yesterday was short lived as price quickly bounced back.The move back to just below $200 is the highest Ethereum has traded at since this time last month. A slight pullback has dropped ETH to $197 at the time of writing and it needs to break this barrier before its next leg up.ETH prices 4 hour – Tradingview.comA golden cross is clearly visible on the four hour chart as the faster 50 MA crosses above the slower moving 200. This is a bullish trend reversal signal and is usually followed by a rally. However, one analyst has noted that total market capitalization has not increased indicating that no new money is flowing into ETH yet.“ETH is up but total crypto market cap still staying flat, price increase could just be money being moved around from other crypto’s rather than fresh money. Waiting for TMC to pass $260B”ETH is up but total crypto market cap still staying flat, price increase could just be money being moved around from other crypto’s rather than fresh money. Waiting for TMC to pass $260B— Etherdamus (@Etherdamus) September 17, 2019Others are hoping that Ethereum can kick start a wider altcoin run as Bitcoin appears to be running short of buyers. At the moment the rest of the altcoins are flat or in the red but the possibility of an ETH decoupling will be strengthened if it can break the $200 barrier.BitPay Adds SupportNews that crypto payments provider, BitPay has finally added Ethereum support is also bullish. In a press release the company said businesses can accept Ethereum for purchases without the need for any integration or enhancements. Originally only BTC, BCH and a few stablecoins were available on the platform.Ethereum godfather Vitalik Buterin was pleased with the announcement, adding.“It is exciting to see BitPay leading the way in integrating Ethereum into global payment systems. This truly opens up a new world of possibilities for the Ethereum ecosystem, and together we can continue to be a leading innovator for real world use cases for cryptocurrencies.”The news adds to other bullish fundamentals for Ethereum such as Santander’s $20 million bond on the blockchain last week, further developments in the DeFi ecosystem for DAI, and a successful network test of ETH 2.0 clients.Image from Shutterstock
Ripple price is still struggling to surpass the main $0.2650 resistance area against the US dollar.The price is showing a few positive signs, but it must break the $0.2650 resistance level.There is a major breakout pattern forming with support near $0.2585 on the hourly chart of the XRP/USD pair (data source from Kraken).The price could either rally above $0.2650 or it might resume its decline below the $0.2580 level.Ripple price is trading well below the $0.2650 resistance against the US Dollar, and ranging vs bitcoin. XRP price could soon make the next move either above $0.2650 or towards $0.2500.Ripple Price AnalysisIn the past 2-3 weeks, XRP price made many attempts to surpass the $0.2650 resistance area against the US Dollar. However, the bulls failed to gain momentum above $0.2640 and $0.2650. On the other hand, Ethereum was able to break the $185 resistance area to start an upward move. Therefore, ripple bulls need to gain pace above $0.2650 to start a solid upward move in the coming days.The last swing low was formed near $0.2566 and the recent high was near $0.2628. At the moment, the price is correcting lower below $0.2610 and trading well above the 100 hourly simple moving average. An immediate support is near the $0.2600 level. It coincides with the 50% Fib retracement level of the recent wave from the $0.2566 low to $0.2628 high.The main support on the downside is near the $0.2590 level and the 100 hourly simple moving average. Additionally, the 61.8% Fib retracement level of the recent wave from the $0.2566 low to $0.2628 high is near $0.2590. More importantly, there is a major breakout pattern forming with support near $0.2585 on the hourly chart of the XRP/USD pair.Therefore, ripple price seems to be preparing for the next major break either above $0.2650 or towards $0.2500. This time, the chances of an upside break above $0.2650 are high. If the bulls gain control above $0.2650, the price could climb higher significantly towards $0.2850 or even $0.3000 in the near term. Conversely, if it fails again near $0.2650, there could be a fresh decline towards the $0.2500 support.Looking at the chart, ripple price is confined in a broad range below the $0.2650 resistance. There could be more ranging moves, but sooner or later, the price is likely to break the $0.2650 resistance area.Technical IndicatorsHourly MACD – The MACD for XRP/USD is currently placed nicely in the bullish zone.Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is correcting lower towards the 50 level.Major Support Levels – $0.2600, $0.2580 and $0.2550.Major Resistance Levels – $0.2640, $0.2650 and $0.2720.
- Block.One’s yearlong initial coin offering (ICO) for the EOS blockchain raised a record-breaking $4.1 billion in 2018.
- LiquidApps created a second-layer protocol for EOS to offload computing expenses for dapps, which became very expensive just a few months after EOS launched.
- In a similarly yearlong ICO, LiquidApps is currently selling DAPP tokens to be used on its new protocol.
- However, six months in, LiquidApps had sold only $2.8 million worth of DAPP. After the same amount of time for its sale, Block.One had sold $700 million worth of EOS.
New cryptocurrencies aren’t raising money like they once did, even during marathon sales.
In the first half of 2018, the average initial coin offering (ICO) raised $25.5 million, based on data reported by PwC. The biggest ICO of them all, the yearlong EOS offering, closed during that era and raised a whopping $4.1 billion.
But a second ICO that aimed to make EOS more usable and also opted for a yearlong approach hasn’t drawn as much investor interest.
LiquidApps is building a second-layer solution for EOS that runs on the company’s DAPP token, which has been sold in daily auctions since February 2019. At the end of its 233rd auction cycle on Aug. 19, the DAPP sale had raised just $2.8 million worth of cryptocurrency.
A source with knowledge of the LiquidApps fundraise told CoinDesk:
“They’ve done an interesting job and [have been] innovative in learning from the Block.One sale and mechanics in crafting how a fundraise for a project should be done. Where they’ve struggled is, not just different market conditions, but finding the right investors and participants for their sale that fully understand the value proposition for the project.”
LiquidApps declined to provide comment on the results of its token sale so far, despite multiple attempts by CoinDesk for comment.
For 333 days and 444 sale cycles, 500 million of the 1 billion pre-mined DAPP tokens will be gradually sold off – that’s 1.12 million tokens every 18 hours. CoinDesk’s analysis is based on the reported price of these tokens in each sale, as shown on the LiquidApps auction site.
The LiquidApps solution is meant to take pressure off the EOS blockchain’s RAM system, which has gotten bogged down as computing resources have proven to be the scarce asset on the fourth-largest blockchain by market cap.
Still, the effort seems to be garnering comparably little fanfare. For comparison, six months into the EOS sale, the startup behind it, Block.One, had raised $700 million, according to a December 2017 report by the Wall Street Journal.
This is a different era in crypto, however, and LiquidApps has put out a much more real product than vastly larger ICOs that ended long ago.
Fred Kreuger, creator of the Lynx Wallet, which is built to work well with EOS, told CoinDesk that he was not surprised by more modest returns on the LiquidApps ICO.
“Most end users and token buyers understand one thing – native tokens for blockchains.”
The company made a conscious decision at the outset not to set a goal for its fundraiser.
“Our goal with the Token Generation is to bring as many stakeholders into the ecosystem to best establish it for success,” LiquidApps CEO Beni Hakak told CoinDesk in a February email, shortly before the sale opened. “As true believers in the free market, we don’t involve ourselves with price speculations – there is no technical possibility to combine an auction, like we’re doing, with a capped amount.”
There may be less pressure on LiquidApps to raise a substantial amount due to its close relationship to another well funded ICO, Bancor.
Hakak was the director of operations at Bancor until January of this year, according to his LinkedIn page, which also lists him as the CEO of LiquidEOS, an EOS block producer that CoinDesk previously reported as a project of Bancor itself.
In February, the LiquidApps white paper listed eight people on its founding team, including all three co-authors of the original Bancor white paper: siblings Guy and Galia Benartzi and Eyal Hertzog. Still, according to a Bancor spokesperson, LiquidApps is a distinct and separate company, though one made up of Bancor alums.
That relationship yielded a great deal of skepticism from the broader crypto community. At the outset of the LiquidApps sale, Cornell professor Emin Gün Sirer saw the whole effort as ill-advised.
“This is an idea that, in the old days, would attract no more than $225K in seed funding from angels and a few VCs, and those VCs would be considered mavericks for taking this on,” he told CoinDesk in an email before the sale opened, adding:
“If $4 billion was not enough to yield an EOS network that is functioning smoothly, the thing to do is not to seek additional funds for more work in the same vein, but to question what went wrong with the original design of the RAM market in EOS.”
Why buy DAPP?
RAM is the ready, easy-to-access memory that applications need to work through a given function. Early on, speculators bought up the RAM supply in anticipation that increased popularity of EOS would make it valuable. In fact, it became so pricy that acquiring RAM resources on EOS became prohibitive.
The first product from LiquidApps was vRAM, a way for EOS dapps to offload most of their RAM needs to a second, less expensive layer. To its credit, vRAM was live at the start of the token sale and has been running ever since.
Investing With a Difference (IWAD) runs a node on the LiquidApps network, and one of the companies it worked with to use its services found dramatic savings. Moonlighting, a freelance job site that runs on EOS, would pay $2,000 per day to run all of its transactions on EOS, according to Raman Bindlish of IWAD. Their costs after moving most transactions onto IWAD’s deployment of LiquidApps dropped to about $10 per day.
“We are doing 10,000–20,000 transactions per day, and CPU/NET cost on EOS blockchain is almost minimal,” Bindlish told CoinDesk. “So, using LiquidApps framework for RAM, we brought down the cost of each transaction to less than $0.0005 on average.”
Since releasing vRAM, LiquidApps has put out many more useful tools for developers, such as a way to make accounts for free (an EOS account costs a bit of EOS), an oracle system and a time tool, among other things. LiquidApps published a detailed account of progress so far early this year. To access its different services, users pay in DAPP tokens.
Despite doubts about the necessity of its product, launching the solution has led to a network of service providers running its vRAM system and other products. This has created a new income stream for technically proficient teams no longer able to earn enough contributing to consensus on EOS, either as a block producer or standby block producer.
LiquidApps began in an era of expensive RAM. In September of 2018, it was running at roughly $0.80 per kilobyte. For context, at that time, it would cost a developer a few dollars in RAM to add one new user.
Since then, the price of RAM has dropped considerably. As of this writing, a kilobyte of RAM cost about $0.34 in EOS, according to EOS New York.
Hakak told CoinDesk in February:
“We believe The DAPP Network should be a separate, complementary ecosystem (economy) to EOS. While EOS Mainnet is where the consensus is established, the DAPP Network is a secondary trustless layer; and having a unique token, the DAPP token, will allow this ecosystem to flourish.”
EOS token image via Shutterstock
ETH price extended its gains above the $195 resistance level against the US Dollar.Bitcoin price is down more than 1.5% and it recently broke the $10,250 support area.Yesterday’s highlighted major bullish trend line is active with support near $193 on the hourly chart of ETH/USD (data feed via Kraken).The pair is currently consolidating gains and it might soon attempt to climb above the $200 resistance.Ethereum price is trading higher towards $200 and $205 versus the US Dollar, while bitcoin is declining. ETH price could continue to rise towards $205 or even $210.Ethereum Price AnalysisYesterday, we saw a nice upward move in ETH price above the $185 resistance against the US Dollar. Moreover, we discussed the chances of more upsides and a test of the $200 level. The price did climb higher, broke the $195 swing high, and recently traded close to the $200 level. On the other hand, bitcoin remained in a bearish zone and declined below the $10,300 and $10,250 support levels.Ethereum price formed a new monthly high near $200 and it is currently consolidating gains. An immediate support is near the $197 level. It coincides with the 23.6% Fib retracement level of the last leg from the $189 swing low to $200 high. If there is an extended downside correction, the price could test the $195 support area. Additionally, the 50% Fib retracement level of the last leg from the $189 swing low to $200 high is also near the $195 level.More importantly, yesterday’s highlighted major bullish trend line is active with support near $193 on the hourly chart of ETH/USD. The main support for Ethereum is near the $185 level (the previous resistance). Therefore, dips remain well supported in the near term towards $195 and $193. On the upside, an immediate resistance is near the $200 handle.If the price breaks the $200 level, there are high chances of it surpassing the $205 resistance level. The next key resistance is near the $210 level, above which the price could surge towards the $220-$225 zone.Looking at the chart, Ethereum price is clearly outperforming bitcoin and other altcoins. As long as it is trading above the trend line support and $185, there are chances of more gains. It would be interesting to see how bears react once the price surpasses the $200 barrier and attempts to climb above $205.ETH Technical IndicatorsHourly MACD – The MACD for ETH/USD is currently in the bullish zone, with positive signs.Hourly RSI – The RSI for ETH/USD is currently correcting lower and it might test the 60 level.Major Support Level – $193Major Resistance Level – $200
Hedera Hashgraph has launched its long-awaited public network, backed by some of the world’s largest corporations and promising faster transactions and greater capacity to scale than any blockchain to date.
Since December 2018, the network had been available in a testing environment to a small group of corporations and developers. As of 00:00 UTC Tuesday, anyone can open an account or build a decentralized app (dapp) on the hashgraph, which is similar to a blockchain but uses a different mechanism to achieve consensus about the state of the ledger.
With the public network now live, the Hedera treasury is set to begin distributing the system’s HBAR tokens around 01:00 UTC. The first tokens – more than 379 million – will go to investors who participated in a $124 million crowd sale that took place in three rounds from March 2018 to August 2018.
Another 1.95 million tokens will go to advisors, vendors and other participants on day one. The balance of the 50 billion supply of HBARs is to be released over the next 15 years by the network’s governing council.
Twelve cryptocurrency exchanges and over-the-counter (OTC) desks plan to list HBAR for trading: AlgoZ, BitOoda, Bering Waters, Bittrex, Galaxy Digital, GSR, Liquid, OKEx, OKCoin, OSL, Upbit and xFutures.
A year and a half in the making, the hashgraph stands out from other distributed ledger technologies (DLTs) in several ways. Its creators claim it works more efficiently than blockchains, making it more suitable for enterprises and commerce. Specifically, Hedera says the network can support up to 10,000 transactions per second, compared to 2.8 per second for bitcoin and 15 for ethereum, the two largest blockchains.
“This is the first instance globally of hashgraph being put to the test,” Hedera CEO Mance Harmon told CoinDesk. “It’s a different data structure, different technology and looks nothing like a blockchain, but solves the same kinds of problems with better security and better performance.”
Hashgraph proponents also say its proof-of-stake consensus mechanism is fairer than bitcoin’s proof-of-work, allowing transactions to come in the order they were recorded and to all settle in the same amount of time. Hedera’s code is patented rather than open-source, a condition the network says it will enforce to deter copying of the codebase or forking.
Not least of all, Hedera boasts the imprimatur of blue-chip names, with IBM, Boeing, Deutsche Telekom, Tata, Nomura and bank tech vendor FIS represented on its governing council, whose members run nodes and vote on software updates.
Praise and pans
In the lead-up to the launch, Hedera Hashgraph has gained its share of admirers and critics.
Among its fans are Steve Wilson, a principal analyst at emerging technologies advisory firm Constellation Research, who says Hedera’s size is the key to its speed.
While regular blockchains are a couple of gigabytes large, the hashgraph is smaller because it does not store all transaction history on the ledger (though it can be optionally stored on a “mirror” network). In addition to its speed, the hashgraph promises finality and instant payments as opposed to around 70 percent of transactions settling every ten minutes for bitcoin and a handful of transactions never reaching finality, Wilson said.
“If we think crypto is going to be viable for retail transactions, it’s not acceptable for you to walk out with the merchant unsure if they’ll get paid,” he said. “Hedera has a quality of service that others are not as committed to.”
That speed, however, only applies to certain kinds of transactions, said Eric Wall, the former blockchain lead at Nasdaq-owned fintech vendor Cinnober.
“A dapp requires smart contracts and since Hedera is currently throttling 10 transactions per second with smart contracts, then it doesn’t make this any more interesting than ethereum,” said Wall, who recently wrote a pair of skeptical Medium posts about Hedera.
Hedera’s consensus service is also nothing new, Wall maintained. Sidechains have also been created off of public blockchains that take advantage of the consensus strength of the underlying system.
“I can’t predict the future of what Hedera will transition to in the future, but moving away from a model that is based on economic and game theory guarantees to a trusted model is a severe reduction in the neutrality model of the system,” he said.
Link to private networks
Since October, hundreds of developers have been building on the network and 25 are now running dapps that were integrated into the mainnet prior to launch, Harmon told CoinDesk.
Nevertheless, the hashgraph is considered to be in a beta testing phase because the network still lacks the Hedera Consensus Service (HCS) and a few other features which will be included in version 1.0.
The HCS is to serve as a link between private blockchain networks and the hashgraph. It allows a hash of transactions from another network to be ordered in the Hedera network by time, showing a searchable record of when transactions occurred with the trust of a decentralized network.
For example, Certara, a drug development and decision-support company, plans to use the HCS to create “tamper-proof” recording of health data transactions while using a private network like Hyperledger Fabric to ensure privacy, said Jim Nasr, vice president of technology and innovation at Certara’s parent company, Synchrogenix.
The HCS will also allow Fabric to run on top of mirror nodes that provide insights into all the transactions flowing over the hashgraph but do not participate in the consensus mechanism like a regular node.
“Getting computational trust is why you want to go down the blockchain path for healthcare,” Nasr said. “With the consensus service, your transactions finalize on the mainnet yet can still leverage a private blockchain.”
Hedera Hashgraph co-founders Leemon Baird and Mance Harmon, image courtesy of the firm.
Bitcoin has been facing a bout of sideways trading for the past several days, but today’s drop to below $10,200 may spell trouble for the cryptocurrency’s near-term price action and may point to the possibility that BTC will soon revisit its nearest level of major support at $10,000.This latest drop, although relatively minor, has been driven by a massive influx of volume, which could mean that a massive movement is inbound in the coming hours and days.Bitcoin Slowly Moves Back Towards $10,000 as Sellers Flex Their StrengthAt the time of writing, Bitcoin is trading down just over 1% at its current price of $10,215, which marks a slight retrace from its recent highs of nearly $10,500.Importantly, Bitcoin failed to reach its region of major resistance at $10,800 ever since it bounced at $10,000 a couple of weeks ago, and the fact that BTC’s bulls were unable to push it to its near-term resistance region signals an underlying weakness that may spell trouble for its price action in the coming days.Over the past several months Bitcoin has been trading between roughly $9,000 and its June-highs of $13,800, and its trading range has been narrowing significantly over the past several months.This narrowing trading range may signal that a big movement – in one direction or another – is imminent.Chonis, a popular crypto analyst on Twitter, mused this possibility in a recent tweet, explaining that he believes Bitcoin’s will make “a notable statement this week” while pointing to a chart that shows BTC’s incredibly narrow trading range.$BTC – I think #bitcoin makes a notable statement this week… pic.twitter.com/4U5rNsc0rE— Chonis ⚔️ Flux Trading Group⚔️ (@BigChonis) September 16, 2019BTC Incurring Massive VolatilityThe cryptocurrency may already be showing some signs of there soon being a massive movement, as its latest drop has been driven by a massive influx of volume.Chonis further spoke about this volume in a recent tweet, explaining that Bitcoin’s latest candle on its 6-hour chart has the highest volume the crypto has seen in the past week.“$BTC – triangle breakdown on the 6hr chart…what’s notable is the higher volume in this dump with still more than half the time left in this current candle, this should be the highest 6hr candle volume for #bitcoin in over a week when it closes,” he noted.$BTC – triangle breakdown on the 6hr chart…what’s notable is the higher volume in this dump with still more than half the time left in this current candle, this should be the highest 6hr candle volume for #bitcoin in over a week when it closes… pic.twitter.com/WhpWAc6iOr— Chonis ⚔️ Flux Trading Group⚔️ (@BigChonis) September 16, 2019The coming hours may prove to be illuminating for Bitcoin, as its trading volume points to the fact that bulls and bears are currently locked in a battle, and which side prevails in the coming days could set the tone for how BTC trends in the coming weeks and months.Featured image from Shutterstock.
Payment solution BitPay will soon accept ethereum, the second-largest cryptocurrency by market capitalization, according to an announcement from the company today. With BitPay, subscribing businesses will be able to pay in bitcoin, bitcoin cash, and ether, along with a handful of stablecoins.
Launched in 2011, BitPay settles both fiat and crypto payments in over 200 countries.
Speaking on the addition, ethereum co-founder and creator Vitalik Buterin said it was exciting to see BitPay “leading the way in integrating ethereum into global payment systems.”
“This truly opens up a new world of possibilities for the Ethereum ecosystem, and together we can continue to be a leading innovator for real-world use cases for cryptocurrencies,” he continued.
Speaking with CoinDesk, the company said it often reviews potential cryptocurrencies for addition.
“BitPay regularly evaluates blockchains and cryptocurrencies to support the company’s goals of making it easy to send and receive payments for goods and services globally. We selected ethereum as it has broad support for real-world applications and is widely adopted.”
Narrowing it down, BitPay CEO Stephen Pair said ethereum was the next logical choice due to its current market base. “As one of the largest cryptocurrencies by market cap and one used by thousands of companies, Ethereum is the next logical choice,” he concluded.
Last week, the Hong Kong Free Press (HKFP) claimed BitPay was holding up bitcoin donations to the organization. A non-profit news organization, the HKFP has been covering the current civil unrest in the Chinese city. An official response from BitPay has yet to be released concerning the allegations.
BitPay CEO Stephen Pair via CoinDesk archives
Cryptocurrency market analyst Mati Greenspan has speculated that the current levels of Bitcoin dominance versus the rest of the cryptocurrency market might be the highest they will ever reach. He reasons that the last time Bitcoin dominance was as high as it is now, there wasn’t even a “developed market” for non-Bitcoin crypto assets.However, such a reading seems a little reductionist. For one, it doesn’t take into account the fact that most of the recent rise that has taken Bitcoin to its current dominance levels has been at the direct expense of the altcoin market.The Only Upper Limit on Bitcoin Dominance is 100%Posting to Twitter earlier today, Greenspan, a senior market analyst at eToro, suggested that Bitcoin’s current ~70% dominance level might be the highest it will ever again reach. The reasoning given was that prior to the 2017 altcoin boom, there wasn’t even a developed market for altcoins.Bitcoin dominance is now comparable to where it was before there was even a developed market for altcoins.Hard to see it getting much stronger from here. pic.twitter.com/pgfNWLQipr— Mati Greenspan (@MatiGreenspan) September 16, 2019However, altcoins weren’t invented in 2017. There was a thriving market for them, on an understandably less grandiose scale, during the bull market of 2013. The names might have been largely different and the sums of money smaller, but for those in the industry at that time, the hype was comparable.Additionally, there are a myriad of different events, that are not all that out there, that could radically increase the share of the total market capitalisation Bitcoin currently occupies. If the most bullish projections for the launch of the Bakkt platform later this month are correct, an institutional buying frenzy in the billions could feasibly occur, taking the price of Bitcoin to the proverbial moon. Since Bakkt has not announced plans to support any other digital asset in the near future, such an increase in buying pressure would presumably only benefit the Bitcoin market.Another event that could cause the Bitcoin price to rise in isolation from the rest of the altcoin market is the news that a major global economic force has been secretly adding Bitcoin to its reserves. Many proponents of the digital asset have previously stated that such a revelation would likely drive other nations to follow, driving prices upwards rapidly:I don’t believe that there isn’t a government somewhere accumulating Bitcoin.— Peter McCormack (@PeterMcCormack) September 16, 2019Bitcoin doesn’t even have to rise suddenly to take its share of the market capitalisation over 70 percent. There has already been evidence of an exodus out of altcoins into Bitcoin. This could quite feasibly continue, even without some event that takes one or more major altcoins down – for example, some vulnerability in Ethereum’s code or all cryptocurrencies associated with smart contract platforms being deemed securities by important international regulators. The only lower limit on how disenchanted investors can become with an asset or group of them is when absolutely nobody wants to hold them whatsoever. Related Reading: Bitcoiners Angered by HTC’s Support of Bitcoin Cash (BCH)Featured Image from Shutterstock.