The energy costs of bitcoin mining are often cited as canceling out the. We must also consider the savings made, in avoiding some of the hidden costs of the alternative. Gold Standard Critics of gold originally made the same arguments — that the mining and storage cost of gold meant paper money was more economical. However, American Economics Professor Roger Garrison points out that society incurs additional costs under a fiat system. The cost of different
CryptoOracle partner Lou Kerner said that strong cryptocurrencies should be viewed like the big companies that came out on top after the dot-com bubble.
Lou Kerner, a partner at venture capital firm CryptoOracle, compared the current slump in crypto prices to the dot-com burst in the early 2000s in an interview with CNBC Nov. 21.
On CNBC’s “Worldwide Exchange” show, Kern stated that strong coins should be viewed like the big companies that came out of the dot-com bubble, using the example of e-commerce giant Amazon:
“If you go back to the internet bubble, which is what a lot of us in crypto look at for direction, Amazon, arguably one of the greatest companies in the history of the mankind, was down over 95 percent over two years.”
Amazon went public in May 1997, with its share price of $18 per each. By December 1998, the company’s share price surged to more than $300 per share, but right after the dot-com bubble burst in March 2000, the share price slumped to just under $6 per share. Over time, Amazon managed to become the second U.S. company to reach a market value of $1 trillion.
Kerner said that current volatility is nothing compared to what longtime BTC investors have encountered, recalling a day in 2013 when the market fell by 70 percent overnight. “This is what investing in crypto is all about,” Kerner added, also noting that the impact of all great technological changes is overestimated in the short term and underestimated in the long term.
The venture capitalist further stated that Bitcoin is “the greatest store of value ever created,” adding that the leading cryptocurrency will surpass gold over time. When asked what could be behind the recent slump on the cryptocurrency market, Kerner argued that “crypto has been so weak because [for] most of it there is no underlying value outside of confidence.”
Many industry experts have shared a positive outlook regarding the future of crypto market. Bart Smith, digital asset head at U.S.-based global trading and technology firm Susquehanna, said he is still a long-term BTC believer amidst the market crash, emphasizing that crypto trading is a “long game” and that “every great idea is volatile.”
Spencer Bogart, a partner at the venture capital firm Blockchain Capital, also believes that crypto opportunities are “still gigantic” despite the current bear market. Bogart also expressed his “mono-crypto” position, claiming that Bitcoin has the “largest established network effect” and is “more than five times larger than the number two crypto.”
Venture capital investments into the blockchain industry have surged in 2018 as retail speculation faded away, a new report reveals. Sign of Maturation? According to a press release sent to Bitcoinist, a new report dubbed Q3 State of Blockchains prepared by European venture firm Outlier Ventures reveals that VCs are particularly active across all funding stages and that 119 deals are disclosed in Q3 of 2018 alone. One noteworthy detail is that the more quality
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Major Spanish banks BBVA and Santander have joined the launch of the E.U. International Association for Trusted Blockchain Applications.
The representatives of two Spanish banking groups were invited to an E.U. blockchain roundtable held in Brussels by Mariya Gabriel, the commissioner for Digital Economy and Society, and Roberto Viola, director of the E.U. Department of Communications Networks, Content and Technology.
According to a BBVA press release, during the meeting E.U. officials revealed that the IATBA will launch in the first financial quarter of 2019. The main aim of the association is to develop E.U. blockchain regulation, along with preparing the launch of E.U.-wide blockchain applications.
According to Expansion, BBVA and Santander are among the first five banks invited to join IATBA. The other members of the association have not yet been disclosed.
IATBA is an initiative promoted by the European Blockchain Partnership — a collaboration of 27 E.U. countries, including UK, France, Germany, Sweden, the Netherlands and Ireland. As Cointelegraph previously reported, the states cooperate to establish “a European Blockchain Services Infrastructure that will support the delivery of cross-border digital public services, with the highest standards of security and privacy.”
While the CEO of BBVA has previously noted some of the challenges and limitations of blockchain technology, the firm has already tested several blockchain solutions. In June, the bank partnered with Spanish energy company Repsol to test different blockchain technologies, namely Hyperledger and Ethereum.
Most recently, BBVA carried out a $150 million loan on a private blockchain network through a group of three funding banks including French banking group BNP Paribas and Japan’s bank holding Mitsubishi UFJ Financial Group (MUFG).
Santander is also interested in decentralized technologies. In July, it joined IBM’s Blockchain Platform along with four other banks, and created a research team to explore the use of blockchain in securities trading.
Japan’s major shipping operator Nippon Yusen K.K. is reportedly introducing its own digital currency to enable marine workers to more easily convert money into local currencies.
Established in 1885, Nippon Yusen is Japan’s largest shipping line in terms of sales. From April 1 to Sept. 30, 2018, NYK Group’s consolidated revenue was 915.6 billion yen ($8.1 billion).
People familiar with the matter reportedly told Bloomberg that NYK is introducing its own digital currency for crew members in order to simplify the process of managing, sending, and converting money into marine workers’ local currencies. The currency will purportedly be tied to U.S. dollars, which would help avoid serious swings in value.
Per the anonymous sources, NYK is working with banks and software development companies to ensure the currency’s ability to be converted into local currencies. The company has reportedly conducted successful tests using shipboard telecommunications, and is now seeking a patent for the technology.
NYK will supposedly introduce the digital currency in the first half of 2019, while the initiative presupposes the use of smartphones. Along with paying their own workers, the company is also looking to offer the currency to other shipping operators.
Port and shipping authorities around the world have already embraced the potential of blockchain technology. Earlier this month, nine major terminal operators and shipping companies signed a Memorandum of Understanding (MoU) to launch an open digital platform based on distributed ledger technology (DLT).
The new platform will reportedly “allow shippers to digitize and organize their dangerous goods documents and automatically connect with relevant parties to streamline the approval process.”
In October, Europe’s largest port, the Port of Rotterdam, partnered with major Dutch bank ABN AMRO and the IT subsidiary of Samsung to test blockchain for shipping. The members of the blockchain trial expect the technology will help reduce shipping time and simplify financial transactions.
Despite the BTC price drop, the owner of a $3 million palazzo in Valletta, Malta, refuses to accept anything but Bitcoin. 421-Year-Old Palazzo: Only BTC Accepted Malta has undoubtedly managed to establish itself as one of the friendliest nations towards cryptocurrencies and blockchain. To further attest to this, the owner of a $3 million building in the heart of Valletta – the country’s capital, is reportedly accepting only Bitcoin for its purchase. The building is
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Cryptocurrency markets have seen slight gains on the day, with all top ten cryptocurrencies trading in the green.
Wednesday, Nov. 21: It seems as if the recent drop-off in markets has slowed, with almost all the top 20 cryptocurrencies seeing green today.
Market visualization from Coin360
Bitcoin’s (BTC) losses yesterday totalled more than 15 percent, though the coin has managed to bounce back into the green today, up 3.12 percent on the day and trading at around $4,499 at press time. The leading cryptocurrency is down over 21 percent on its weekly chart.
Yesterday, Wall Street crypto bull Tom Lee reiterated his recently reduced year-end price prediction of $15,000 for Bitcoin, despite the recent market crash. While remaining confident in a year-end rally, Lee admitted that the markets have “certainly” seen a “negative development,” which signals a “downside of the momentum.”
Bitcoin 7-day price chart. Source: Cointelegraph Bitcoin Price Index
The second largest cryptocurrency by market capitalization, Ripple (XRP), is up 0.80 percent over the last 24 hours and trading at $0.439. The altcoin’s market cap is around $17.8 billion, while its weekly high point was around $20.8 billion on Nov. 18, according to CoinMarketCap.
XRP daily price chart. Source: CoinMarketCap
Ethereum (ETH) is up 2.19 percent on the day and is trading at $134.46 at press time. The coin’s lowest price point on the day was $126.30.
Ethereum 7-day price chart. Source: Cointelegraph Ethereum Price Index
Bitcoin Cash (BCH) is down the most among the top twenty coins this week, having lost over 40 percent in the seven-day period. On the day, the coin is up a modest 2.67 percent, trading at $231.97 at press time.
The total market capitalization of all cryptocurrencies is around $148.5 billion, while its weekly high point was around $189 billion on Nov. 15. As of press time, daily trade volume amounts to almost $18 billion, while the number of cryptocurrencies listed on CoinMarketCap has decreased to 2,071.
Total market capitalization 7-day chart. Source: CoinMarketCap
Earlier today, Cointelegraph reported that the recent cryptocurrency market crash has eased pressure on the U.K.’s financial regulator to introduce hasty new rules for the sector. Gillian Dorner, deputy director for financial services at Britain’s finance ministry, reportedly said that “we want to take the time to look at that in a bit more depth and make sure we take a proportionate approach.”
British regulators are reportedly analyzing over 2,000 crypto assets to see whether they can be regulated under existing rules before considering whether reform might be necessary.
Also today, Spencer Bogart, a partner at the venture capital firm Blockchain Capital, said he believes that crypto opportunities are “still gigantic” despite the current bear market, pointing out the critical role of “programmable money,” which is supposed to gain even more popularity over time.
The world did not come to an end after the financial crisis of 2007–2008. Similarly, this bear market will also pass and the stronger cryptocurrencies will rise and reward investors.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Market data is provided by the HitBTC exchange.
Bottoms are formed during market capitulations. After Bitcoin broke below the critical support of $5,900, investors dumped their holdings, fearing a complete loss on investment. For someone who does not believe in the future of cryptocurrencies and who was in it only for making a quick buck, it might be the right thing to do.
However, for the others, who believe in the story of blockchain and cryptocurrencies, the current fall offers a great opportunity to invest for the long term. During bottom formations, the outlook is always very dire and every bit of news is viewed as negative.
One such news was the U.S. Justice Department investigating the probability of Bitcoin manipulation in 2017 using stablecoin Tether. Though we believe that any regulatory step to protect retail investors is a long-term positive, the markets did not view it in the same way.
After the fall, while naysayers are claiming victory and forecasting a further fall, the bulls see an opportunity to buy for the long term. It is difficult to predict a bottom when markets are gripped in fear. Hence, we believe it is better to wait for the markets to show signs of stabilization before attempting a buy.
The software companies did not vanish after the dotcom bubble. The world did not come to an end after the financial crisis of 2007–2008. In the same way, this bear market will also pass and the stronger cryptocurrencies will rise and reward investors. Therefore, be patient and let the markets offer us a relatively low-risk buying opportunity.
Bitcoin nosedived to a low of $4,368.69 on Nov.20. The fall of the past two days gives the impression of panic selling by investors. Usually bottoms are formed after such a round of liquidation.
Both moving averages have turned down, which is a negative sign. The RSI has hit deeply oversold levels, which suggests that selling has been overdone and a pullback is likely.
The bulls might attempt to carry the BTC/USD pair to the downtrend line, which can prove to be a roadblock. If the downtrend line is crossed, we expect the bears to offer strong resistance in the zone of $5,450–$5,700.
The next leg down will give us a better insight about the bottom. If the bears slice through $4,368.69, the fall can extend to $4,000 and below it to the major support zone of $3,500–$3,000.
On the other hand, if the bulls successfully defend $4,368.69, the probability of it being the bottom increases. It is difficult to pinpoint the bottom right away. We can confirm a bottom only in hindsight.
Ripple has emerged as one of the outperformers during the recent fall. It has stretched its lead over Ethereum after becoming the second most valuable cryptocurrency in terms of market capitalization.
The XRP/USD pair is currently finding support between the trendline and $0.40. Both the moving averages remain flat, which points to range bound action in the near term. On the upside, $0.519 and $0.565 will act as resistances.
On the downside, if the bears sink prices below $0.40, a fall to $0.37185 and below that to $0.26913 is probable. Though we are relatively bullish on the digital currency, we shall wait for a new buy setup to form before proposing any trade.
Ethereum extended its fall on Nov. 20 and broke below the support of $136. The RSI has reached deeply oversold levels, which previously resulted in a pullback.
Currently, the bulls are attempting to pullback from the $126.20 level, which is likely to face a stiff resistance at $167.32. The downtrending 20-day EMA will also be a difficult hurdle to cross.
If the next leg down breaks below $126.20, the ETH/USD pair can extend its decline to $110. As the trend is down, we shall wait for a new reliable setup to form before recommending a trade.
Stellar broke down of the ascending channel on Nov. 19 and followed it up with another sharp fall the next day. However, the bulls have managed to hold the critical support at $0.184.
The current pullback attempt is likely to face a stiff resistance at the support line of the channel and above it at the downtrend line.
If the bears sink the XLM/USD pair below the critical support at $0.184, it can slide to the next support at $0.13 and below that to $0.09.
EOS broke below the critical support of $3.8723 and dived to a low of $3.4703 on Nov. 20. In doing so, the RSI dipped into deeply oversold territory that indicates that the selling has been overdone and a pullback is probable. Currently, the bulls are attempting to climb back above the overhead resistance at $3.8723. If successful, the pullback can extend to $4.493, which might again act as a stiff resistance.
If the pullback stalls at $4.1778, the bears will again attempt to sink the EOS/USD pair below the support at $3.8723. If successful, the decline can extend to the next support at $3. The falling 20-day EMA and the RSI in the oversold territory show that the bears have the upper hand.
Litecoin dipped to an intraday low of $31.78 on Nov. 20, which was just below our suggested support of $32. The pattern target of a breakdown from the descending triangle is $29.653. We believe the zone between $32–$29.653 will act as a strong support.
However, as the trend is down, any attempt to pullback will face a stiff resistance at the 20-day EMA that is sloping down. Above this, the next major resistance will be in the $47.246–$49.466 zone.
We believe that after such a sharp fall, the LTC/USD pair might attempt to form a bottom around current levels. However, the traders should wait for a confirmed bottom and a new buy setup to form before attempting to buy.
Cardano fell in the past two days and overshot our suggested support of $0.043722 and made an intraday low of $0.041572. The RSI has declined deep into the oversold territory, which suggests a pullback is around the corner.
The pullback can carry the ADA/USD pair to the overhead resistance at $0.060105. However, the trend is down, hence, any attempt to recover will face a hurdle at the previous support of $0.060105 and at the 20-day EMA, which is sloping down.
If the next leg down breaks below the support at $0.041572, the fall can stretch to the next lower support of $0.025954.
Monero is trying to find support close to the $64.525 level. The RSI has entered deeply oversold levels, which shows that selling has been incessant. We believe that the bulls will attempt a pullback from the current levels that can carry the digital currency to the overhead resistance at $81.
The bears are likely to attempt to turn down the XMR/USD pair from $81. If the next down leg breaks $64.525, the fall can extend to $60 and below that to $46 levels.
Our bearish view will be invalidated if the bulls scale $81 and sustain above it. Currently, there are no bullish patterns that suggest a buy, hence, it is best to remain on the sidelines.
In the past two days, TRON broke below the two critical supports of $0.0183 and $0.01587681. With the RSI dropping close to 15 on Nov. 20, it shows that the selling has been overdone and a relief rally is likely.
In a down trending market, every previous support acts as a resistance after it is broken down. Hence, we anticipate a stiff resistance at $0.01587681 and $0.0183. If the TRX/USD pair turns down from one of these levels, the bears will attempt to sink the price to the next support at $0.00844479.
On the other hand, if the bulls scale $0.0183 within the next few days, it will confirm that the current fall was a fake breakdown. We shall wait for the trend reversal to happen before suggesting any trade in it.
Dash is currently trading inside a descending channel. It broke below the critical support of $129.58 on Nov. 19 and made a new 52-week low at $98.01 on the next day. It is presently finding support at the bottom of the channel. The bulls might attempt to push prices back above the $129.58 resistance. If successful, the pullback can extend to the upper end of the channel, close to $160.
However, as the DASH/USD pair is in a downtrend, we anticipate a strong resistance at $129.58 and at the 20-day EMA. During the next down move, if the support at $98.01 breaks, the next support is at $75. Traders should wait for the trend to reverse and a bottom to form before initiating any long positions in it.
The Colorado Division of Securities issued cease and desist orders to four more ICOs allegedly involved in fraudulent and illegal practices.
The Colorado Division of Securities has filed cessation orders against four Initial Coin Offerings (ICOs) allegedly involved in fraudulent and illicit practices, according to an official announcement Nov. 20.
Colorado Securities Commissioner Gerald Rome issued the new cease and desist orders following investigations by the Division’s ICO Task Force. Rome has issued 18 cessation orders to ICO projects offering unregistered securities since May, 2018. According to the announcement, at least two more orders are still pending.
The recent orders affected four crypto and blockchain-related firms; Global Pay Net, Credits LLC, CrowdShare Mining, and CyberSmart Coin Invest. All the companies were reportedly accessible to Colorado residents and allegedly violated securities laws.
Regulators state that the projects also engaged in fraudulent marketing practices; Global Pay Net allegedly falsely claimed that “investors receive 80 percent of the company’s profits.” CrowdShare Mining promised an “at least 1,000 percent” four-year return on investment for investors who bought its token.
Commissioner Rome stated that the “sheer number” of cease and desist orders against ICOs should be a “red flag […] that there is a real risk that the ICO you are considering is a fraud.” Rome also highlighted the problem of crypto investor protection, claiming that fraudsters “simply create a fake ICO to steal investors’ money,” and “trick investors into wrongfully paying them.”
Earlier this month, the securities regulator issued cease and desist orders to four ICOs for allegedly offering unregistered securities.
On Nov. 19, Italian securities regulator Commissione Nazionale per le Società e la Borsa (CONSOB) issued enforcement actions against three crypto-related firms for alleged violation of local financial laws by failing to register as financial intermediaries.
That same day, the North Dakota Securities Commissioner issued a cease and desist order against an alleged Russia-based ICO that posed as Liechtenstein Union Bank.
According to a recent study by the University of British Columbia, ICOs face a “compliance trilemma” that limits their potential. Some issuers shirk compliance measures in order to “reach a distributed pool of investors” and have an offering that is “cost-effective.”
The study explains, “If issuers forgo these costs, the risk of being non-compliant rises significantly. The result is a trilemma, whereby issuers currently must forgo one of these goals to realize the other two, or to compromise on all three.”
Bitcoin Cash SV’s recent blockchain reorganization has led to well-known industry figures labelling it as centralized.
The latest setback to affect the nascent fork, the reorganization (often referred to simply as “reorg”) lasted for two blocks and was initially feared to be a malicious attack.
Reorgs occur when two miners solving a block at the same time cause a temporary fork in the network. The miner that solves the next block then dictates how the blockchain continues as their fork now has now performed more work as per the Proof-of-Work (PoW) algorithm rules.
When the network agrees on which fork to use, the redundant block which will not see a continuation of the blockchain built on top of it, as it is “orphaned.”
When blockchains experience congestion, however, information about blocks may reach miners slower than usual, resulting in blocks being made redundant.
In this aforementioned event, the BCHSV reorg came about due to the mining arm of cryptocurrency news publication Coingeek, a party in favor of competing fork Bitcoin Cash ABC (BCHABC), orphaning its own blocks.
Emin Gün Sirer, creator of the world’s first cryptocurrency to deploy a PoW concept and vocal critic of BCH, continued the debate, noting that the possibility for miners to make their own blocks redundant raised questions about the BCHSV’s level of decentralization.
“This should not be possible in a decentralized system,” he wrote, adding:
“You can only invalidate your own block and create a new tail if you’re the majority miner. BCHSV is a centralized coin.”
Prices have also declined, Kraken’s BCHSV/USD (written at BSV/USD) pair hitting lows of $32.40 Nov. 21. At press time, BCHSV is trading at around $49.77 on CoinMarketCap, down about 6.66 percent over a 24 hour period.