This Cryptocurrency Just Surpassed Bitcoin In One Key Adoption Metric

Throughout the history of cryptocurrencies, altcoins have had a lot of trouble competing with Bitcoin, which is basically the gold standard of the market. In terms of everything from network effects to brand recognition, there is still simply no real threat to Bitcoin’s position at this time.

That said, Ethereum briefly passed Bitcoin in one key area last week: total daily USD-denominated transaction fees. In fact, Ethereum miners collected more in fees than Bitcoin miners on this past Saturday and Sunday too, according to Coin Metrics.

Additionally, while it’s been a rough September for the Bitcoin price, Ether is in the green (just barely) this month, and the cryptocurrency recently enjoyed one of its best 24-hour Bitcoin-denominated price moves ever recorded.

Increased Usage Means Higher Fees

In cryptocurrency networks, transaction throughput is limited in order to preserve decentralization. If the network is processing too many transactions per second, the users’ ability to run their own full nodes and check that no one is cheating will be harmed. Since the whole point of using a public blockchain is to gain properties like censorship resistance and trust minimization, avoiding centralization is key.

Due to the limitations placed on capacity, cryptocurrencies like Bitcoin and Ethereum see higher transaction fees when the networks become congested. This is exactly what has happend with Ethereum over the past month, as total daily USD-denominated transaction fees hit levels not seen in over a year.

So, what has caused the recent spike in Ethereum transaction fees? It appears the blame can be placed on a Ponzi scheme-esque game called FairWin, which also has a critical vulnerability in its associated contract on the Ethereum blockchainAccording to on-chain crypto market analytics firm Glassnode, FairWin has recently been consuming up to half of the gas spent on the Ethereum network at any given time.

The spike in FairWin’s popularity, according to Etherscan, correlates almost perfectly with the increase in total fees seen on the Ethereum network this month, according to Coin Metrics.

What Does This Mean for Ethereum’s Future?

The total value of all the transaction fees paid on a cryptocurrency network every day is a key metric to watch because it illustrates the level of demand for that particular blockchain. If people are willing to pay relatively high fees to use a particular blockchain, they must be getting some sort of utility out of it.

Additionally, fees are intended to eventually replace the creation of new Bitcoin as the incentive for miners to secure the network. Things will likely work differently for Ethereum, as the Ether token is expected to be issued on a perpetual basis, which means a never-ending block subsidy. This is effectively a trade-off of dilution of the current Ether supply in exchange for a higher level of network security.

In terms of their possible effect on the Ether price…

Continue reading at FORBES.com

Why The Bitcoin Price May Be Headed For A Great Few Months

In a new report, digital asset research firm Delphi Digital has shared some trends that could help predict where the Bitcoin price is headed this month. While Bitcoin dipped more than 15% in roughly an hour last week, the cryptocurrency has since recovered from those lows below $8,000.

Delphi Digital laid out both bullish and bearish trends in their recent report. Additionally, the digital asset research firm pointed out that those who are bullish over the long term should be happy to see these lower price points.

“[Those] with long-term conviction in this asset class should welcome this pullback with open arms as it presents an opportunity to buy or add to existing positions at lower prices,” says the report.

The Good News

In terms of the reasoning behind Bitcoin’s multiple, sudden price drops last week, many of those who shared their opinions on Crypto Twitter were blaming Bakkt’s lackluster launch. However, Delphi Digital does not agree with that assessment.

“Many people seem to be disappointed in [Bakkt’s] launch but we believe a slow and steady increase in volume is much more likely as institutions and sophisticated investors become comfortable with the new product,” says the report.

The report goes on to illustrate how well Bitcoin has performed following a loss of 10% or more in a single day, which is what occurred last Tuesday. According to Delphi Digital, the Bitcoin price has risen 11% on average in the 30 days following a loss of 10% or more in 24 hours. The median return for this same scenario is 8.6%.

The average returns 7 days, 14 days, and 30 days after a 10% price dip are all better than the average returns on all other days. Obviously, it’s better to buy Bitcoin after the dip than before it.

On top of this bullish trend from the Delphi Digital report, a report from crypto prime dealer SFOX earlier in the year indicated a correlation between the holidays and upward swings in the Bitcoin price. According to SFOX, this correlation is strongest when the Bitcoin price is already rising before the holidays begin, as that creates a situation where FOMO (fear of missing out) can set in while everyone is with their friends and family for Thanksgiving, Christmas, and New Year’s Eve.

The Bad News

While the gains that usually follow a 10% drop in the Bitcoin price are worth considering, it doesn’t mean that Bitcoin’s downward price movement is over. On the very next page after covering the potential for an upwards price move, Delphi Digital laid out…

Continue reading at FORBES.com

Could Google Be About To Break Bitcoin?

Google sent shockwaves around the internet last month when it was claimed the search giant had built a quantum computer able to solve formerly impossible mathematical calculations–with some fearing bitcoin could be at risk.

Details of Google’s so-called “quantum supremacy,” meaning it can solve calculations impossible with traditional computers, were posted to a Nasa website before being deleted, it was claimed by the Financial Times, a business newspaper.

Google’s quantum supremacy could mean it is able to perform in 200 seconds what would take a powerful computer 10,000 years and potentially mean bitcoin, and the encryption that underpins it, could be broken.

Bitcoin, cryptography, and encryption rely on complex mathematical problems and the fundamentals provide the basis of the internet and digital communication trust.

A powerful enough computer, similar to Google’s quantum computer, could solve these classical equations quickly enough to crack not only bitcoin but also the encryption that the internet is built on.

An explosion in bitcoin investors and the bitcoin price over recent years have made many worried that their newfound crypto-based wealth could be under threat from these powerful quantum computers…

Continue reading at FORBES.com

Why Bitcoin Price May Soon Recover to $10,000

After a precipitous drop to $7,700 this weekend, Bitcoin (BTC) bulls have managed to reclaim some ground. While the cryptocurrency market hasn’t flipped decidedly bullish yet, Bitcoin has found itself up by 6% in the past 24 hours, moving to $8,500 in a steady trend upward.

Despite not showing the qualities of a fully-fledged bullish reversal, analysts say that this recent bounce is a sign of good things to come. Whether or not this materializes in an imminent move to fresh all-time highs remains to be seen, however.

Bitcoin Technicals Flip Bullish

Yesterday, all analysts and their mothers were calling for Bitcoin to fall to the low-$7,000s. One analyst, for instance, said that the cryptocurrency seems poised to collapse due to a number of factors: a lack of extreme negative funding, “increasingly negative delta at range support”, a perceived exhaustion in buying support, and large volume imbalances all implying that Bitcoin has a bearish skew heading into coming daily trading sessions.

True to its inherent volatility, however, Bitcoin reversed on Monday, trending higher to $8,500 as laid out earlier. This unexpected recovery puts the cryptocurrency market in a good position technically, per a number of analysts.

Firstly, the move to $8,300+ is allowing the cryptocurrency to regain a key short-term support level, as CNN-featured analyst Luke Martin recently pointed out.

Secondly, macro investor and gold proponent Dan Tapiero recently pointed out that the Bitcoin price chart has printed a massive bull signal. In a tweet, the institutional investor noted that the TD Sequential indicator, which is a time-based technical indicator, has drawn a buy 9 signal. Tapiero noted that the last time that this buy signal was seen was in January 2019, when the cryptocurrency traded at $3,600. What followed, of course, was a massive move to $14,000 over the course of the following months.

Dan Tapiero@DTAPCAP

Bitcoin might put in a perfected TD 9 buy signal today. Last time I pointed out it disappeared on close. (Thanks to @TommyThornton for catching.) Very important to watch 5pm “close” to confirm. Rare buy signal last at 3600 Jan’19 came right before large multi-month 400% rally.

View image on Twitter
100 people are talking about this

And lastly, the Fisher Transform, a trend indicator, recently saw a bullish crossover on Bitcoin’s daily chart, implying that the cryptocurrency may soon be subject to some upward momentum…

Continue reading at NEWSBTC.com

Will Facebook’s Libra Overtake Bitcoin Cryptocurrency And The Ethereum Blockchain?

Trust is the fundamental element in business transactions. It is what keeps economies and societies functioning. Throughout history, we have managed to build complex institutions from legislative, judicial, law enforcement to banks and various financial institutions to enable trust in commercial transactions. We also invented tools such as fiat money, bonds, stocks and contracts to guarantee the successful execution of business transactions.

And then came Bitcoin and its blockchain technology that allowed two parties to exchange value with trust without legislative institutions, fiat money, banks or contracts. It is, simply, a revolutionary technology. This is probably why blockchain was hyped as the “next generation of the internet” that will create “the programmable economy.”

(Full disclosure: I own bitcoins and have a small investment in Facebook.) 

Despite the many successful implementations of blockchain, it has not been as transformational and didn’t generate the much-hyped benefits.

One reason is that blockchains are implemented as disconnected solutions with no foundational protocols such as TCP/IP, HTTP and HTML that created the internet revolution. Additionally, no single blockchain network emerged as the dominant one that would offer a multitude of business services to produce the desired transformational benefits.

Enter Facebook’s Libra cryptocurrency and blockchain.

On June 18th, Facebook announced the Libra blockchain and cryptocurrency, which raised many questions: What is Libra and how will it work? Is it a cryptocurrency? Is it a blockchain? Will it overtake Bitcoin and Ethereum? Will consumers trust it? What is its potential? What’s in it for Facebook? And will Libra become the unifying and transformational blockchain that everyone was hoping for?

The Libra whitepaper holds some answers to the above questions, including how it will be governed. Libra will be launched by the Libra Association, which is an independent, nonprofit membership organization, headquartered in Geneva, Switzerland. Libra will be governed and controlled by this association and will be independent of Facebook. It is currently composed of 28 organizations.

The key difference between Libra and Bitcoin is the permissionless versus permissioned blockchain. Simply put, a permissionless blockchain implies that anyone with the right hardware infrastructure can apply the mining protocols and participate in validating transactions and in becoming a validating node on the Bitcoin network. Currently, Bitcoin has over 9,500 nodes, which enabled it to withstand the test of time and produce an immutable, distributed and secure ledger.

In contrast, Libra is going to be a permissioned blockchain that is centralized where its consensus mechanism, software and governance are controlled by Libra Association members who are the only ones permitted to validate transactions. At launch, the Libra blockchain will have 100 permissioned organizations. Visa, Mastercard, Uber, Vodafone and Spotify are among the founding companies of the Libra Association.

So, is Libra a cryptocurrency with a blockchain like bitcoin?

Well, Libra applies many of the same building blocks and concepts as Bitcoin. It uses a blockchain, cryptography, digital wallets, anonymous accounts, smart contracts and the gas concept with a new programming language called “Move.” This makes Libra more like Ethereum than Bitcoin.

Libra will be implemented as a stable cryptocurrency by pegging it to a basket of “low volatility” assets such as the dollar, euro, yen and bonds, and through creating the Libra Reserve. This reserve allows the 100-node consortium to “mint” and destroy Libras as needed and based on demand. So, when customers buy Libra coins using dollars, those dollars are put into the reserve that is then invested in low volatility assets. This fund concept is missing from Bitcoin and Ethereum, which leads to their price swings and speculations and makes Libra a powerful contender to Bitcoin, Ethereum and other cryptos.

Libra is also being architected with some advantages over traditional cryptocurrencies. It will consume far less electricity than Bitcoin and is touted to have a higher throughput of 1,000 transactions per second (TPS) compared to bitcoin’s seven TPS and Ethereum’s 15 TPS.

It also promises to make sending money across the globe as easy as texting and will have very low fees compared to close to 5% of the transaction value of international wire transfers.

Furthermore, Libra has the potential of helping many of the 1.7 billion unbanked to enter the global financial system. It could trigger a wave of innovation in financial services as much as the internet did for online services. These are some remarkably important advantages for Libra that could possibly offer the transformation that has been expected from blockchain and cryptocurrencies.

With Facebook’s 2.4 billion users across the globe, Libra has the potential of transcending governments and central banks and possibly becoming an international digital currency. If Facebook’s users adopt Libra to shop, transfer money and transact, it could make Facebook one of the most powerful financial institutions in the world.  “That would herald a consumer revolution — but could also make financial systems less stable and reduce governments’ economic sovereignty, ” writes The Economist.

It’s clear that Facebook’s Libra has “legs” but also some serious challenges. Aside from the technological challenges of delivering the Libra network with the advertised throughput, security and smart contracts, there are questions on whether a 100-node blockchain network can be immune to global outages and to denial of service attacks.

In addition, how will…

Continue reading at FORBES.com

 

Bitcoin Chaos Continues As Facebook’s Mark Zuckerberg Reveals Libra Woes

Bitcoin and cryptocurrency markets went into meltdown this week, with the bitcoin price suddenly falling off a cliff.

The bitcoin price lost some 15% in a shock sell-off on Tuesdaydragging down the wider bitcoin and crypto market and catching traders, who had hoped the hotly-anticipated Bakkt crypto platform launch would give bitcoin a boost, off-guard.

Now, Facebook chief executive Mark Zuckerberg has revealed his libra cryptocurrency, which is largely credited with sparking bitcoin’s bull run earlier this year, may not launch in 2020, as previously expected.

“Obviously we want to move forward at some point soon [and] not have this take many years to roll out,” Zuckerberg told Nikkei Asian Review, a Japanese business newspaper. “But right now I’m really focused on making sure that we do this well.”

Facebook’s libra has run into opposition around the world as countries, including India, France and the U.S., warn it will undermine their national currencies, with U.S. president Donald Trump launching a blistering attack on libra, bitcoin, and crypto earlier this year.

Bitcoin traders and investors have closely-watched the development of Facebook’s libra, which has been adopted as something of a cryptocurrency regulatory bellwether and a tacit endorsement of bitcoin’s underlying blockchain technology.

“A lot of people have had questions and concerns, and we’re committed to making sure that we work through all of those before moving forward,” Zuckerberg added.

The bitcoin price lost further ground yesterday, dropping some 5% and dipping below the psychological $8,000 per bitcoin mark.

Bitcoin cash, an offshoot of bitcoin itself, led the cryptocurrency market lower, recording losses for the day of over 5% and taking its weekly decline to almost 30%.

The bitcoin sell-off comes after a muted launch of the New York Stock Exchange owner Intercontinental Exchange’s Bakkt crypto platform, which was unveiled last year boasting software giant Microsoft and coffee chain Starbucks among its partners.

Bakkt’s platform allows traders and institutional investors to swap so-called “physically” settled bitcoin futures contracts, meaning…

Continue reading at FORBES.com

 

How far will Bitcoin fall?

The bears may not be finished with bitcoin (BTC) price just yet. With a bounce off the bottom yet to materialize, further losses are looking imminent and some analysts are eyeing a collapse to below $6,000 for the king of crypto.


No Bounce For Bitcoin Price

There has been no bounce off the bottom this time for bitcoin which could be a sign of more pain ahead. Since its huge collapse earlier this week the world’s top digital asset has failed to gain any traction above $8,600. The buyers that were supposed to be massing at this zone are remaining cautious as BTC consolidates just below $8,400.

bitcoin

BTC chart 1 hour – Tradingview.com

A fall back to and below $8k is looking likely as the bulls are nowhere to be seen at the moment. Bitcoin’s market capitalization has fallen back to $150 billion and the daily volume is up at $20 billion but it is all outflow at the moment.

The only positive metric for BTC at the moment is market dominance which is still over 70% according to Tradingview. However, that market itself has shrunk by 16% this week as over $40 billion has been converted back into fiat.

Analysts are leaning towards bearish sentiment with predictions going as low as $5,500 by some.

“2 Months ago July the 12th-17th, I called off the Bull Run as one of the first. Not only that, as you can see I told you about targets between 7.4-5.5k.”

It seems that it is not just the analysts that are bearish. A survey on CT yesterday garnered over 3,300 responses from the crypto community and over 60% of them foresee a bitcoin price drop below $8k before any sustained move higher.

So the 2019 bull run could be over as bears start to dominate things on crypto markets again. If bitcoin price does fall below $7k, or even as low as $6k, things are going to get very messy again for altcoins.

Crypto winter looks set to return for the majority of them which have hemorrhaged most of their gains for the year. There has been no sign of recovery from this week’s double-digit market crash as most of the top crypto assets remain in the red again today.

Ethereum has weakened further and is now trading below $170 while XRP hit a new 20 month low yesterday. Only one altcoin has made any attempt at clawing back some gains today and that is IOTA which is up almost 4%. The rest are still in meltdown.

Will bitcoin price fall back to $6k this time? Add your comments below.


Images via Shutterstock, BTC/USD charts by TradingView, Twitter: @D4rkEnergYYY, @TrueCrypto28

The post Bitcoin (BTC) Price Could Drop To $6,000: Analyst appeared first on Bitcoinist.com.

Source: Bitcoininst

What Caused Yesterday’s Bitcoin Price Plunge?

A giant Bitcoin transaction – possibly a sell-off – caused Bitcoin to drop to lows of under $8000 on September 24.


Byte Tree: Exchange Triggered ‘Short Term Panic’

That was the conclusion of monitoring resource Byte Tree, which provided fresh data for the past 24 hours’ trading activity on Wednesday. 

The theory offers a new perspective on the tumultuous week for Bitcoin investors. They watched as the largest cryptocurrency fell by up to 20% in hours. 

According to Byte Tree, a transaction from a private wallet to an exchange worth $1.2 billion triggered the dip. The scale of funds at involved sparked a panic selling session.

“In this case it looks like large transfers are made from wallets into an exchange, and subsequently sold,” officials commented in an accompanying Reddit thread

In another comment, they added additional information about how the sequence of events took shape. 

“Gradual build up of sells, minimal buys. Big on-chain movement of $1.2bn at 3pm BST correlates to accelerating fall in price (as the order book is eaten up),” they explained. 

“It looks like this was ‘the tipping point’ that triggered short term panic.”

Bitcoin Users Dispell Hashrate Myths

As trading statistics trickle through, other well-known cryptocurrency figures are dispelling myths that Bitcoin has lost technical stability.

Prior to the rout, Bitcoin’s network hashrate appeared to drop 40%. Initially, commentators suggested something was wrong, and that mysterious changes were taking place on a fundamental level.

This is a false narrative, others have countered. Hashrate in itself is immeasurable and data charts are only an estimate. 

A drop in hashrate on the charts can occur as a result of slower block times and does not correspond to miners leaving the network.

“The ‘hashrate crash’ isn’t real,” interoperability startup Summa One founder James Prestwich summarized.

Christopher Bendiksen, head of research at CoinShares, continued:

“If you look at the popular hashrate estimate graphs you’ll notice that they spike hard both up and down. This doesn’t mean that the hashrate is rapidly growing or falling, it is simply a relic of the inherent variance in PoW mining.” 

He added the idea hashrate charts can directly measure Bitcoin’s hashrate was a “surprisingly common misconception.”

At press time, traders still felt jittery about the short-term outlook for Bitcoin. BTC/USD trailed below $8400, down 14.1% on the day.

What do you think caused Bitcoin’s price drop? Let us know in the comments below!


Images via Popularmechanics.com

The post Bitcoin Price Plunge Came From $1.2B Sell, Data Says Amid Hashrate Row appeared first on Bitcoinist.com.

Source: Bitcoininst

Bitcoin Collapses, Falls Out of Triangle

Newsflash: Bitcoin (BTC) has just collapsed under $9,000 for the first time in months. The cryptocurrency is down some 8% in the past 24 hours, trading at $8,900 as of the time of writing this price update.

Josh Rager 📈@Josh_Rager

Sub $9k is a gift 😂

49 people are talking about this

Altcoins have been absolutely destroyed. Ethereum has shed 13% in the past 24 hours; Bitcoin Cash, -20%. The market capitalization of the cryptocurrency market has collapsed all the way to $240 billion.

With this massive flash crash, Bitcoin has shed an array of clear support levels — the descending triangle bottom of ~$9,500, the horizontal support of $9,400, and key moving averages. A daily and weekly close at these levels could thus be disastrous for bulls, at least in the medium-term.

It may not be curtains closed for this bull market, however…

Continue reading at NEWSBTC.com

Top 3 price prediction Bitcoin, Ripple, Ethereum

Today is the day – the release of futures on Bitcoin by ICE – owner among others by the all-powerful NYSE. This initiative, channeled through the trading platform Bakkt, will allow trading futures on Bitcoin with delivery to maturity.

The fact that the future has a physical deliverable at maturity will help the future price to stay close to the spot price.

The futures on Bitcoin are a handy tool to make price hedges on the cryptographic asset – a very interesting for miners and corporations that make payments and collections with Bitcoin.

The market opens the week in the same way that it closed on Friday. On that day, significant resistance was reached in the Altcoin segment – which is translating into more or less substantial price falls depending on the asset.

The next few days will confirm or disprove the Altcoins season and also the possibilities of having a tremendous upward race towards the end of the year.

 

ETH/BTC Daily Chart

The ETH/BTC cross is currently trading at 0.02109 and marks the second day in the red after being unable to pass the SMA100 by 0.0215.

Prominent influences with a lot of audience in social networks are hailing the end the Altcoins rally – an opinion I do not share.  The technical structure is still in the development phase and retains a strong upside potential – so I predict that the upside movement still has room for development…

Continue reading at FXSTREET.com