Bitcoin

Will Bitcoin’s Catch-22 Will Keep It From Spurring a Monetary Revolution?

Over the past couple of years, there have been a number of fast-growing industries that have caught the attention of investors. The rise of cannabis, the evolution of artificial intelligence, and the continued expansion of cloud computing have investors excited. But the fact of the matter is that bitcoin has run circles around all three of these popular industries.

Following a miserable 2018 during which the most popular cryptocurrency in the world lost more than 80% of its value, bitcoin has rebounded in a big way in 2019. Recently, the top crypto token in the world by market cap briefly crossed the $14,000 level, which it hadn’t seen in close to a year and a half. Even as of this past Monday, bitcoin was trading firmly above the $10,000 mark per token.

Bitcoin aims to revolutionize how money is moved

For cryptocurrency enthusiasts, bitcoin represents a changing of the guard in terms of monetary policy. With payments being processed on a transparent and immutable digital ledger known as a blockchain,  cryptocurrencies like bitcoin could transform the way money is moved from one party to another. In particular, bitcoin promises the potential of faster settlement times and cheaper transactions. For context, an overseas money transfer using a traditional banking network can take up to a full week to validate and settle, whereas bitcoin can complete the transaction in an hour or less.

In addition, bitcoin’s value has also benefited from its perceived scarcity. Without getting too far into the weeds, the supply of bitcoin is limited to 21 million tokens, with annual inflation of the existing token base, which currently stands at roughly 17.8 million tokens, of less than 4%. This inflation derives from the fact that cryptocurrency miners are responsible for proofing the validity of transactions on bitcoin’s blockchain, and are awarded bitcoin tokens for being the first to do so for a particular block (i.e., a group of transactions). With bitcoin nearing its coin cap, there’s perceived scarcity.

Bitcoin has also, arguably, been the beneficiary of good press of late. For example, Facebook‘s (NASDAQ:FB) announcement that it would create a currency-backed crypto token known as Libra is a shot in the arm to the long-term potential of crypto. If Facebook, the largest social media company in the world, plans to launch a new payment medium based on crypto, then bitcoin must have started revolution… right?

Well, not so fast.

Bitcoin’s Catch-22 will keep it from ever being a true game-changer

It’s no secret that I’m not the biggest fan of bitcoin as an investment, and I’ve previously laid out why I believe it should be avoided. But this goes beyond simply buying bitcoin and hoping it increases in value so investors can book a profit. The reason bitcoin won’t be able to lead a monetary revolution is that it’s held hostage by a Catch-22: Its “scarce” token coin and its utility as a medium of payment work in opposition to one another.

One of the reasons bitcoin holds such lofty values is that investors view the supply as being limited to 21 million tokens. However, this limitation is the result of programming code, as opposed to real world conditions of the type that limit the supply of gold. Though it’s unlikely, bitcoin’s token count could be increased if the bitcoin community were to reach a strong consensus.

Then, there’s the matter of bitcoin’s utility. It can certainly be argued that it is accepted in more countries than ever before, and that bitcoin’s divisibility to eight decimal places allows people all over the globe to use it for transactions. But what you may not realize is that in the neighborhood of 40% of outstanding tokens aren’t in circulation. Rather, they’re being held by investors over the long run.

The reality is that bitcoin can have either perceived scarcity or utility, but not both. With its current token count, it could never seriously challenge fiat currencies, but this relative undersupply has helped keep the price of tokens high. Meanwhile, substantially upping the token count would allow for increased utility, but the resulting inflation would kill the perception of scarcity and likely ravage bitcoin’s token price.

But wait — there’s more

Perhaps an even better argument against bitcoin is that…

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Tom Lee Is Afraid Trump will Institute a Bitcoin Ban

Fundstrat Lead Analyst Thomas Lee shared his worst nightmare on Twitter and it involved the U.S. President placing a ban on Bitcoin.


Is Libra Dragging Bitcoin Down?

As the US Congress and Senate hearings on Facebook’s Libra cryptocurrency wrapped up, members of the Trump administration shifted their gaze onto Bitcoin and cryptocurrency as a whole. During both hearings a number of lawmakers openly aired their opinion that Libra should never be allowed to launch. Even more concerning, on Thursday US Treasury Secretary Steven Mnuchin made media waves when he told CNBC Squawk Box that the U.S. government intends to implement “very, very, strong” regulations on cryptocurrencies to ensure they do not become “Swiss-numbered bank accounts”. 

For cryptocurrency investors, these mutterings generated mixed emotions and some are fearful that the government generated FUD could put a permanent dent in what many are interpreting as the start of a bull market. 

Lee’s Worst Nightmare

Fundstrat head analyst Thomas Lee appears to share in these fears and over the past 3 days, Lee posted tweets outlining his fear that Bitcoin’s 5 minutes of fame could expose it to the ire of President Trump. According to Lee, Bitcoin price action is likely to remain “choppy” until the media and legislative focus shift on to other matters. 

Lee believes that the current Bitcoin coverage is turning into “too much of a good thing” and he advised that more Bitcoin beneficial chatter surrounding Brexit, the China trade war, and European bank issues need to make news headlines. On July 13, Lee tweeted a screenshot a section of the official U.S. ban on the Venezuelan Petro and he placed extra emphasis on the following section:

any digital coin, or digital token, what was issued by, for, on behalf of the Government of Venezuela on or after January 9, 2018, are prohibited as of the effective of this order. 

According to Lee, while highly unlikely, the President could easily sign an executive order to ban Bitcoin and cryptocurrency transactions in the United States just like he did for Venezuela. Without providing much explanation, Lee concluded that such a drastic move would probably result in a Bitcoin fork. 

Bitcoin Shakes off the FUD

Despite these worries, Lee is still confident that now is the time to be invested in Bitcoin and he ends his tweet with #BTFD and #cryptowinter over. Interestingly, during the hearings Bitcoin slowly dropped to $9,100 but in the early trading hours on Thursday the digital asset managed a $1,000 upside move in a little over 30 minutes. At the time of writing, Bitcoin trades slightly above $10,600 and traders are hopeful that the cryptocurrency can reenter the $11,200 to $11,500 range over the next 24-hours. 

Do you think the Trump Administration will make cryptocurrency regulation a priority? Share your thoughts in the comments below! 


Images via Shutterstock, Twitter @SquawkCNBC

The post Tom Lee Is Afraid Trump will Institute a Bitcoin Ban appeared first on Bitcoinist.com.

Source: Bitcoininst

BTC Price Reclaims $10K After US Lawmaker Says Bitcoin Can’t Be Killed

Bitcoin (BTC) has retaken $10,000 today following a moderately volatile month, according to data provided by Coin360.

Picture 1

Bitcoin starting its parabolic advance in April which culminated in retaking the 5-figure mark in June for the first time since March 2018. At the time, BTC was on a slow-and-steady bull run that peaked just shy of $14,000 on June 26.

Since then, BTC has moved around a decent amount, dipping below $10,000 on July 2, retaking $13,000 on July 10, and slumping below $10,000 again on July 16.

Some analysts linked this week’s correction to technical reasons alongside the Libra hearings on Capitol Hill. Additionally, recent remarks from United States (U.S.) Secretary Treasury Steven Mnuchin who echoed president Donald Trump’s “not a fan of Bitcoin” comments could have also played a role.

But the ongoing scrutiny of Facebook’s Libra project in Washington D.C. appears to be educating lawmakers about the key differences between Bitcoin and other so-called “cryptocurrencies.”

As reported by Cointelegraph, Blockstream chief strategy officer Samson Mow suggested that Facebook should have simply offered a BTC service instead of foraying into a new cryptocurrency with Libra. Mow remarked:

“Once Libra is compliant with every jurisdiction, it will just be a more complex PayPal governed by an association. Should’ve just used Bitcoin.”

U.S. representative says ‘there’s no capacity to kill bitcoin’

Meanwhile, U.S. representative Patrick McHenry said that he believes Bitcoin (BTC) can not be killed in an interview with CNBC’s “Squawk Box” on July 17.

During the interview — when he was asked whether he believes politicians will allow cryptocurrencies to thrive — McHenry said:

“I think there’s no capacity to kill Bitcoin. Even the Chinese, with their firewall and their extreme intervention in their society could not kill Bitcoin.”

McHenry also pointed out that…

Continue reading at COINTELEGRAPH.com

 

Altcoins

Major Altcoins Rally as Bitcoin Sees Slight Gains

The number one cryptocurrency Bitcoin (BTC) is seeing slight gains on the day as major altcoins (ETH) and Ripple (XRP) rally.

Market visualization

Market visualization. Source: Coin360

Bitcoin has been trending down this week. Bitcoin retook $13,000 on July 9 before sinking all the way down to under $10,000 by July 16. At press time, BTC is trading just over $9,800 with a 2.64% gain on the day.

On July 4, analysts at SFOX conjectured that Bitcoin could rally in light of the American national holiday Independence Day, arguing that holidays in the midst of a bull market tend to spark FOMO. However, Bitcoin did not see any significant gains on the holiday, and is now sitting around $2,000 down from its price level 13 days ago.

Bitcoin 7-day price chart

Bitcoin 7-day price chart. Source: Coin360

Top altcoin Ether has had a bearish week, like BTC, mostly seeing a steady decline over the last seven days. It saw a fairly sharp fall on July 14, falling by about $200 in approximately an hour, without recovering. However, the number two cryptocurrency has recovered by approximately 8.3% on the day, and is sitting above $214 at press time.

Ethereum 24-hour price chart

Ethereum 24-hour price chart. Source: Coin360

Ripple’s value has also largely been on the decline for the past seven days. However, it has recovered almost 9% at press time — the largest daily gain out of the top three cryptocurrencies — and is trading just shy of $0.318.

According to a price analysis by Cointelegraph, however, XRP is currently one of the worst-performing major cryptocurrencies. Its next price level supports are reportedly $0.27795 and the yearly low of $0.24508…

Continue reading at COINTELEGRAPH.com

Bitcoin Broken

Bitcoin And Crypto Suddenly Branded A ‘National Security Issue’

Bitcoin and cryptocurrencies have been thrown into the limelight over recent months by social media giant Facebook’s plans to launch its own private cryptocurrency next year, with much of the attention negative.

U.S. president Donald Trump sent shockwaves through the bitcoin and cryptocurrency community last week when he branded bitcoin “based on thin air,” with his comments coming just after the chair of the U.S. Federal Reserve said closer regulation of cryptocurrencies was needed.

Now, U.S. Treasury secretary Steven Mnuchin has added his voice to the assault on bitcoin, Facebook’s planned Libra crypto project, and other cryptocurrencies, warning they pose a “national security” risk to the country.

“This is indeed a national security issue,” Mnuchin told reporters at a press conference yesterday. “Cryptocurrencies such as bitcoin have been exploited to support billions of dollars of illicit activity like cyber crime, tax evasion, extortion, ransomware, illicit drugs, and human trafficking,” adding that Facebook’s Libra “could be misused by money launderers and terrorist financiers.”

Echoing Fed chair Jerome Powell, Mnuchin said…

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Litecoin vs Bitcoin: Which one is better?

Litecoin vs Bitcoin

Litecoin vs Bitcoin. Which one is better? Everyone from qualified economists to Redditors have been comparing the two since Litecoin came into existence in 2011.

The conversation not only discusses these coins individually and against each other, but also pertains to a more complex debate over what it takes to become a successful cryptocurrency.

Bitcoin is the clear poster-child for the crypto-community. However, Litecoin has developed a user base from those who are skeptical of some aspects of Bitcoin but still strongly believe in the future of cryptos.

While Bitcoin and Litecoin have some slight technical differences, they both set out to accomplish the same thing: transfer value using cryptographic principles. Yet once the two coins face off, it’s clear why Bitcoin has come out the winner.

Litecoin vs Bitcoin: At a Glance

Note: On mobile devices, swipe and scroll table.

Cryptocurrency

Launch Date October 7th, 2011 January 3rd, 2009
Creator Charles Lee Satoshi Nakamoto
Protocol Proof-of-Work Proof-of-Work
Algorithm Scrypt SHA-256
Average Block Time 2.5 Minutes 10 Minutes
Block Halving Every 840,000 Blocks Every 210,000 Blocks
Max Total Coins 84,000,000 21,000,000

We can compare cryptocurrencies from many angles, but the most popular method is looking at their market capitalization. Market cap is essentially the amount of currency on the market (usually in U.S. dollars). Bitcoin is currently ranked number one with a market cap of over $56 billion, and Litecoin is ranked fifth with a market cap of $2.56 billion. Bitcoin is the standard cryptocurrency that most users and platforms prefer. You might be thinking, So why are we talking about Litecoin? Its market cap may be a tiny sliver of cake compared to Bitcoin’s $45 billion, but it’s one of the few altcoins with an active user base and legitimate credentials.

(You can view current market caps in the table above to see how they’ve changed since this article was published.)

Bitcoin Price Chart

Litecoin functions like Bitcoin: It is an online payment system that uses cryptocurrency instead of a national currency like U.S, dollars, Bitcoin and Litecoin carry out transactions using bitcoin and Litecoin respectively. As cryptocurrencies, they both garner a similar community and image, as well as rely on similar cryptographic principles.

Bitcoin was released in 2009 as the first cryptocurrency. Litecoin launched only two years later in 2011 but has been sprinting to catch up to Bitcoin ever since.

Litecoin Price Chart

Litecoin’s developers have stated that their intention was to create a “silver” to Bitcoin’s “gold.” Although Litecoin tech is arguably better than Bitcoin’s, it was born inferior.

Litecoin vs Bitcoin: At Depth

The two cryptos may seem similar, but they are actually quite distinct in their market acceptance and technical mechanics.

In the following four points, we will discuss what makes each crypto distinct. You will come to understand how Litecoin’s arguably superior algorithm will likely forever be subordinate due to Bitcoin’s pervasive network.

1) Bitcoin is Much More Popular

With a market cap roughly 22.5x the size of Litecoin’s, Bitcoin’s overwhelming popularity makes it the obvious choice for the crypto investment community.

According to Google Trends, Litecoin hardly holds a candle to Bitcoin’s search popularity. For scale, 100 indicates the peak popularity a term. A value of 50 means the term is half as popular, and a value of 0 means the term was less than 1% as popular as the peak.

Since cryptos are viewed as inherently risky, Bitcoin seems relatively stable with its extremely high market cap. Sure, Bitcoin’s price can still be incredibly volatile. Yet while a mere $1 billion loss would decimate Litecoin’s market cap in half, Bitcoin would need a crash of $40 billion in market cap for effects to be just as catastrophic.

Despite all this, Litecoin is still fairly relevant in the crypto community.

2) Litecoin Accommodates More Total Coins

Many crypto traders account for the total number of coins each cryptocurrency is programmed to make. Bitcoin is capped at 21 million coins, but Litecoin can make up to 84 million coins.

Both coins technically still have a long ways to go until they hit their cap limits but it remains a concern because of the price volatility expected as the coins reach their maximums. Bitcoin currently has roughly 16.5 million coins in circulation, and Litecoin has about 52 million. This means Bitcoin is currently at 78% of its maximum, and Litecoin is about 61% of its maximum. If Bitcoin nears its maximum coin amount first, then Litecoin may pick up more traction with traders buying into Litecoin to avoid the Bitcoin volatility.

The above point in favor of Litecoin, however, is largely a misunderstanding: Since both Bitcoin and Litecoin can be divided into fractional amounts, the maximum coin shouldn’t impact the value storage of either coin. For example, Bitcoin users can transfer as little as 0.00000001 bitcoins. The ability to accommodate more coins is then kaput.

3) Litecoin Has a Faster Transaction Processing Speed

Bitcoin’s average transaction confirmation time is a little over 9 minutes per transaction, whereas Litecoin’s is roughly 2.5 minutes per transaction. This makes Litecoin’s transactions roughly four times faster than Bitcoin’s, offering an attractive advantage for users who frequently conduct transactions, such as merchants .

Keep in mind that transactions technically occur instantaneously on both Bitcoin and Litecoin networks, but the transaction confirmation by other network participants does take some time. Waiting the full 9 minutes for a Bitcoin transaction or 2.5 minutes for a Litecoin transaction ensures the transaction was valid. Merchants can accept the transactions instantaneously without waiting for a confirmation, but they run the risk of becoming victim to a “double spend” attack.

This seemingly large advantage Litecoin has over Bitcoin, however, is minimized by third-party solutions that make instantaneous transactions more secure.

4) Litecoin’s Cryptographic Algorithm Welcomes Newbies

Long-term cryptocurrency users consider the technical components of Bitcoin’s and Litecoins’ different cryptographic algorithms when comparing the two.

Bitcoin uses the SHA-256 algorithm and Litecoin uses an algorithm called Scrypt. These algorithms determine the “mining” process for new coins. “Miners” confirm the transactions of other users, and are rewarded units of that currency in exchange.

Many consider Bitcoin’s SHA-256 algorithm more complex than Litecoin’s Scrypt, which therefore allows for a higher degree of parallel processing. Bitcoin miners have built sophisticated methods to mine bitcoins at a highly efficient rate. The most dominant method uses ASICs–Application-Specific Integrated Circuits. ASICs are essentially hardware systems (similar to CPUs) created purely to mine bitcoins.

The Bitcoin competition for mining is fierce due to the sheer amount of miners, as well as technical innovations such as the ASICs. New miners struggle to establish themselves without adequate computing power, capital to handle expenses, and the know-how to outcompete experienced competition.

Litecoin was largely created to appeal to miners who could no longer mine Bitcoin because their CPUs couldn’t compete with ASICs. Scrypt is more accessible for new miners. It was designed to be less conducive to custom hardware solutions such as in ASIC-based mining. Scrypt, however, is not immune to the innovation and there is increasingly development that hinders the easy-access mining Scrypt was partially designed for.

Bitcoin Crowned King Thanks to Its Network

While Litecoin’s efforts to make mining more accessible to everyone is a notable gesture that speaks volumes about the Litecoin community, it also pigeonholes itself into a niche. Instead of appealing to a massive community of people to achieve a network to contend with Bitcoin’s, Litecoin focused on minor differentiating factors. Litecoin essentially functions the same as Bitcoin and doesn’t offer enough for users to convert from Bitcoin.

It’s safe to assume that most crypto-traders, those responsible for the large crypto market caps, aren’t valuing tech over substantial profit. Litecoin’s value proposition simply sounds like another altcoin pitch to them. Less tech-savvy adopters hardly know what the mining process is like, let alone the difference between SHA-256 and Scrypt. So while Litecoin’s price has increased significantly over the past few months, it simply isn’t as attractive as Bitcoin’s.

Litecoin additionally took a hard jab in the gut when Ethereum exploded onto the scene in early 2017 and knocked Litecoin down to the #4 market cap position. Ethereum has developed nearly 10x that of Litecoin’s market cap in a short amount of time.

Litecoin Do Something Meme

Final Thoughts

Since Litecoin’s purpose initially was to be “silver” to Bitcoin “gold”, it really begs the question of whether it will ever be anything more than Bitcoin’s minion.

Litecoin technically has a superior algorithm but this is largely irrelevant, as Bitcoin’s popularity has cemented it as the gold standard for old and new crypto traders.

When it comes to cryptocurrency adoption, Bitcoin and Litecoin are in the same boat. Think of it this way: Bitcoin and Litecoin are both good guys. But Bitcoin is the main protagonist and Litecoin is the inferior supporting actor. Bitcoin is the Goku, Aragon, and Batman. Litecoin is the Vegeta, Boromir, and Harvey Dent. In the end, Bitcoin will likely end up in every sequel, while Litecoin is killed off due to lack of popularity.

An extensive user network is essential in the crypto community. No matter how hard Harvey Dent altcoins may try, even their technical superiority can’t beat the popularity of the Batman Bitcoin .

Additionally, Bitcoin’s liquidity cannot be overlooked. The fact that cryptocurrencies tend to be very volatile plays a huge role in the minds of new users. Many new users start with Bitcoin because it offers stability and a large preexisting market.

The network effect ultimately determines which cryptos survive and as more users buy into Bitcoin, Litecoin will likely become increasingly obscure. Litecoin’s relevancy is debatable and its recent spikes in price are largely due to the current rise in cryptocurrency prices as a whole.

It’s interesting to theorize situations where Litecoin could overtake Bitcoin. Litecoin loyalists cling to the fact that Litecoin is one of the only high-value value-exchange alternatives. In the unlikely case that any of Bitcoin’s potentially problematic features like its 21 million coin limit remain unaddressed and start to create substantial problems, people could shift towards Litecoin. However, the downfall of Bitcoin–the flagship of the cryptocurrency world–could spell doomsday for the cryptocurrency market at large.

The post Litecoin vs Bitcoin: Comparing Two of The Most Popular Cryptocurrencies appeared first on CoinCentral.

Source: Coin Central

Bitcoin Goes Up, Altcoins Go Down. Bitcoin Goes Down, Altcoins Still Go Down. Why?

The long-awaited altcoin season doesn’t seem to be anywhere nearby, as Bitcoin’s price movements continue to dictate the entire market. Regardless of what direction the cryptocurrency takes, it appears that altcoins just can’t get out of their slump. 

Bitcoin Goes Up, Altcoins Go Down

It’s safe to say that 2019 has been great for Bitcoin so far. Since January 1st, the cryptocurrency’s price is up by more than 210%. Looking at shorter-term charts gives us pretty much the same picture. 

In the past three months, Bitcoin surged from around $5,070 to its current price of $11,600, which represents an increase of more than 125%.

However, this has had a tremendous impact on the overall market as well. Bitcoin’s dominance index, which tracks its relative share of the entire crypto market, also took off for the skies. Presently, the BTC dominance stands at 65.1%, leaving altcoins hanging out to dry.

Indeed, altcoins have been suffering, especially when trading against BTC. Ethereum (ETH), the second-largest cryptocurrency by market cap, has lost about 35% of its value against BTC since the beginning of the year. Things are looking even worse for Ripple’s XRP, the value of which dropped by about 77% against BTC in 2019. The situation is more or less the same with other large-cap altcoins as well. 

Smaller altcoins are also feeling the pain. WAVES, for instance, is down a whopping 85% against Bitcoin since January 1st. 

Amid this Bitcoin-dominated market, many have hoped that a drop in the price of the largest cryptocurrency by market cap would allow altcoins to recover and potentially reclaim a higher percentage of the market. But it hasn’t turned out that way. 

Bitcoin Goes Down, Altcoins Still Go Down

The last week has been nothing but tumultuous for Bitcoin. After surging to around $13,100, it suffered a significant loss which brought its price back to about $11,600, a decline of more than 11%. 

BTC/USD. Source: CoinGecko

Yet what many thought would help revive altcoins turned out to do the exact opposite. Not only did altcoins continue to depreciate against BTC, they also saw serious declines against the dollar. 

Looking at large-cap cryptocurrencies, we note that ETH lost around 10% of its dollar value. Ripple’s XRP lost about 18% of its value while Litecoin (LTC) lost about 16% before starting to recover. 

In other words, it didn’t do the altcoins any good that Bitcoin dropped in value. What is worse, BTC dragged them with it and most of them actually lost more percentage-wise than BTC itself. 

Alt Season Postponed?

Indeed, it doesn’t seem to matter which direction Bitcoin goes in right now. The fact that it shed almost $2,000 of its value didn’t seem to cause its dominance to drop, as it remained almost unchanged. 

As CryptoPotato reported a few days ago, analysts seem to believe that the next altcoin season won’t arrive until 2020. Whether or not this is accurate, it’s definitely nowhere to be seen at present.  

Perhaps among the reasons why Bitcoin is currently dominating the market is that it has an actual use case. Such a sentiment was validated by the chairman of the US Federal Reserve, Jerome Powell, who recently said that “Bitcoin is a store of value… like gold.” Apart from that, altcoins are bleeding to historical proportions, which is another potential reason for their current situation.

The post Bitcoin Goes Up, Altcoins Go Down. Bitcoin Goes Down, Altcoins Still Go Down. Why? appeared first on CryptoPotato.

Source: Crypto Potato

Bitcoin

Bitcoin falls sharply as Fed’s Powell flags ‘serious concerns’ about Facebook’s cryptocurrency

Bitcoin is sliding after Federal Reserve Chairman Jerome Powell poured cold water on Facebook’s plans to launch a cryptocurrency.

The world’s best-known digital coin — which has experienced a meteoric rise in 2019 — fell 12% to about $11,450 on Thursday, according to CoinDesk data.

Bitcoin had hit a 17-month high above $13,000 just two weeks ago. It’s currently up about 200% since the start of the year, having gathered momentum as large companies like Facebook and Fidelity get involved in the space.

But it began sliding as Powell said that he held “serious concerns” about Facebook’s planned digital currency Libra. The social network is looking to launch the token alongside a consortium of companies including Uber and Visa.

“Libra raises serious concerns regarding privacy, money laundering, consumer protection, financial stability,” Powell said at a congressional committeeWednesday. “These are concerns that should be thoroughly and publicly addressed.”

Powell also called for a halt to the project until regulators’ questions about Libra are addressed. The Fed has set up a working group aimed at examining Libra, he added.

Facebook’s Libra takes the form of what’s known as a stablecoin. These are cryptocurrencies that are often pegged to currencies like the dollar. In Libra’s case, the token is backed by a group of government currencies and debt securities.

Analysts have been bullish on Libra, at least from the perspective that it could pave the way for more adoption of cryptocurrencies. But the Facebook-led project has been clouded by regulatory concerns, with central bankers and politicians around the world expressing skepticism.

“It seems that the market wasn’t ready to break a fresh highs just yet, and (bitcoin) is now back near the low end of its most recent range” of $10,000 to $14,000, Mati Greenspan, senior market analyst at eToro, told CNBC by email Thursday.

Greenspan added that…

Continue reading at CNBC.com

Bitcoin Price Falls

Bitcoin Falls Nearly 8% In A Matter Of Hours

Bitcoin declined sharply today, losing close to 8% in less than two hours.

The world’s most prominent cryptocurrency fell to as little as $12,138.37 shortly after 11:00 EDT, a roughly 7.9% drop from its intra-day high of $13,175.69 reached at roughly 09:30 EDT, CoinDesk data shows.

The digital currency then extended these losses, trading at $12,062.47 shortly after 1:30 EDT, additional CoinDesk figures reveal.

When explaining these latest fluctuations, analysts pointed to profit taking, claiming that variables such as leverage amplified the digital asset’s losses.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

“The market has risen a lot,” emphasized Charles Hayter, cofounder and CEO of digital currency data platform CryptoCompare.

As a result…

Continue reading at FORBES.com

Bitcoin

Parabolic Bitcoin Headed for $30,000, Predicts Morgan Creek CEO

The bitcoin price is once again trading above the $12,000 level, and the current market cycle could take the price to a new all-time high. Morgan Creek Capital Management CEO Mark Yusko was featured on CNBC, where he emphasized that bitcoin is the best-performing asset since October 2018 by a long shot.

“I think we’re in the next parabolic move. That will take us probably into the $30,000 level before we get another little correction.”

He points out that the bitcoin price has soared 70 percent since October 2018, while the stock market over the same period is about flat with those levels. Yusko, who previously ran an endowment fund, didn’t stop there, suggesting that bitcoin’s “path to $100,000 by 2021 is really quite easy to draw out.”

That’s about a 733 percent increase over the next couple of years, which is unheard of in other asset classes.

usko’s bullish price prediction is not even the most aggressive one out there, with billionaire venture capitalist Tim Draper attaching a $250,000 price target on the biggest cryptocurrency in the next few years. Draper expects that at the pace that engineers are currently working on bitcoin’s scalability issues, the leading crypto could be used instead of the dollar for everyday purchases in as little as two years.

Economy’s Pain Is Bitcoin’s Gain

Bitcoin has been looking attractive from both a fundamental and technical perspective, with catalysts such as institutional adoption and price momentum helping to fuel the gains. Crypto could also be benefitting from the slowing global economy, the uncertainty of which stands to drive investors into the arms of bitcoin.

For example, the U.S. and China still haven’t settled their trade differences, and there’s no guarantee that they will reach an agreement recent progress notwithstanding. Meanwhile, some are saying that EU is already in mired a “mild recession” while that the U.S. is headed for one, too.

Morgan Creek’s Yusko is of the belief that it’s doom-and-gloom for the stock market, saying that stocks are…

Continue reading at CCN.com