Starbucks Chairman Howard Schultz Believes In Cryptocurrency – Just Not Bitcoin

Howard Schultz, Starbucks Corporation’s current Executive Chairman and former CEO, said that the company sees potential in blockchain technologies and some cryptocurrencies.


Starbucks Wants To Go Cashless Without Bitcoin

Starbucks has been a leader in the adoption of promising technologies, such as mobile payment features, and is set to continue the trend with a venture into cryptocurrencies and blockchain. As excitement builds around cryptocurrencies and their underlying technology, known as blockchain, Starbucks aims to take full advantage.

The coffee giant will supposedly not be accepting the cryptocurrency Bitcoin though, the first decentralized cryptocurrency to be released back in 2009. Schultz expressed skepticism over the currency, stating, “I don’t believe that Bitcoin is going to be a currency today or in the future,” without further explaining his doubts.

However, he did hint at the likelihood of Starbucks accepting other cryptocurrencies saying,

I personally believe that there is going to be a one or a few legitimate trusted digital currencies off of the blockchain technology. And that legitimacy and trust in terms of its consumer application will have to be legitimatized by a brand and a brick and mortar environment, where the consumer has trust and confidence in the company that is providing the transaction.

If implemented, cryptocurrency payments could create and increase long-term shareholder value.

Starbucks Chairman Howard Schultz

Belief In Blockchain

Schultz’s belief in blockchain technology is shared by other corporations who have either created their own blockchain, invested in a blockchain project, or begun to accept blockchain based cryptocurrencies. For example, Overstock now accepts payments in Bitcoin and other alt-coins, and Seagate Technologies has been reported to have large investments in the cryptocurrency Ripple (XRP).

The company is not prepared for any immediate adoption of the technologies but believes that it will be extremely influential in the coming years. Schultz sees the high potential the brand has to legitimize the technology and give the consumer trust and confidence in the company that is providing the transaction.

The chairman elaborated on the company’s dealings with blockchain, clarifying that the company will not be investing in any projects or creating their own.

Will more retailers move to accept cryptocurrencies and integrate blockchain payments? Is Starbucks making the right decision? Let us know your thoughts in the comments below!


Featured Image courtesy of Pixabay

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Source: Bitcoininst

Ether Rising – Up 30% in a Week!!

January has been a pretty slow month for all cryptocurrencies. The majority of them have not made a recovery from the big slump two weeks ago. Bitcoin, as usual, has commanded the big selloff, but Ethereum has remained relatively resilient to downward pressures and has posted solid gains over the past couple of days.


Ethereum has now garnered the attention of mainstream media, such as Forbes, which recently reported about its upward momentum. A major market correction was expected, and it has been surmised that such corrections are a naturally occurring thing for cryptocurrencies at this time of year.

Bitcoin Posts Lowest Ever 36% Market Cap Share As Ethereum Steals Limelight

Ether Rising

According to Livecoinwatch.com, which includes South Korean markets, Ethereum is up over $1,200 from a low of $930 this time last Monday. This represents a weekly rise of 30%. The same cannot be said of Bitcoin, which has conversely shown very little gain from its price this time last week. The 24 hour trade volume for ETH has been around $4.5 billion, with South Korea’s Bithumb being the top exchange with over 10% of that trade in Korean won.

According to NewsBTC editor Joseph Young, who was also quoted by Forbes, the rise is in line with an increase in transactions on the network:

The increase in the daily transaction volume of the Ethereum network reflects the exponential growth rate of decentralized applications launched on top of the Ethereum protocol. Applications like EtherDelta, 0x, Radar Relay, and CryptoCribs have gained a significant amount of active users over the past few months.

This week, $1.6 billion cryptocurrency trading platform Coinbase CEO Brian Armstrong praised CryptoCribs, a decentralized Ethereum-based Airbnb-like platform with a non-ICO model.

Ethereum rises 30%

Greater Demand

As the number of ICOs and decentralized applications grows, the demand for Ethereum will follow. It is the platform of choice at the moment due to its level of support and a number of scalability improvements in the pipeline for the network.

The Ethereum roadmap addresses these scalability challenges through the implementation of its Casper update, which has already in the testing phase. Ethereum co-founder Vitalik Buterin said:

The Casper aspect of Casper, where two conflicting blocks should not be able to be finalized, seems to actually happen running and the network agrees all along what the final chain is. So that part has been totally successful. On the Sharding side, quite a lot of work has started.

Sharding involves taking a lot of the work off the chain to increase transaction speeds and lessen the load on the distributed ledger. Ethereum is set to grow from strength to strength, and this is currently being reflected in its increasing price.

[Disclaimer: the author of this article is a holder of Ethereum (ETH)]

For how far will Ethereum go, can we expect $2,000 soon? Share your thoughts in the comments below. 


Images courtesy of Wikimedia Commons, Pixabay, and Bitcoinist archives.

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Source: Bitcoininst

Is It Too Late to Buy Bitcoin? Is it Too Late to Invest In Cryptocurrency?

I get this question quite a bit, from family, friends & random people at parties. You will probably be asked this at some point during your Thanksgiving Holiday. In fact, a Google search for “Is it too late to invest in Bitcoin?” reveals 1,990,000 different search items. (Read also: Evolution of Cryptocurrency: What is Cryptocurrency?)

Asking if it is too late to invest in Cryptos is like asking,

Is it too late to invest in XYZ [Facebook, Classic Cars, Art, Augmented Reality, Diamonds, Airline Loyalty Points]?

You don’t hear questions like these today, so why are we asking if it is too late to invest in Cryptos?

The question itself is amusing once you start putting things into perspective and compare it to other investments people make. What some people want to know is if they can make a quick $Millions by getting in the game right now. If you are looking for a gamble, I can’t help you. But if you are actually curious about the space, read on.

Still, some people ask this question, because, at the end of the day, they do not believe Cryptos & Bitcoin are here to stay.  This is another misconception…

Continue Reading At MasterTheCrypto

How to Make Money in Cryptocurrencies Irrespective of the Volatility

Mark Twain said, “During the gold rush it’s a good time to be in the pick and shovel business.” Why? Because pick and shovel businesses make money even when the people who use them don’t find gold. This is a perfect metaphor for how to make money in crypto irrespective of the volatility.


In this case, the pick and shovel businesses are the exchanges, wallet providers, and all the other crypto service providers. Unfortunately, most of these companies are private and therefore not open for investment. But, there are some exceptions…

FinLab – German Listed Investment Company

Over the past five years, FinLab-shares (Bloomberg A7A:GR) have increased tenfold because FinLab focuses on investments in these pick and shovel-esque crypto service providers. For example, FinLab has a 25% stake in the Bitcoin/gold trading platform Vaultoro, a company whose business has grown dramatically over the last six months on the back of the crypto boom. Furthermore, FinLab recently announced their stake in Iconiq Lab, the world’s first batch-controlled initial coin offering (ICO) and token sale accelerator program. According to industry rumors, they are also working on a cryptocurrency investment bank.

FinLab is part of Christian Angermayer’s empire. The German serial investor and entrepreneur is tipped as Germany’s No. 1 powerbroker in the financial services and technology space. Angermayer was responsible for recruiting Peter Thiel as a co-investor in two of FinLab’s portfolio companies – the deposit platform Deposit Solutions, which quickly became one of Europe’s most valuable fintech startups, and nextmarkets, a social trading platform. He also orchestrated the Chinese HNA Group’s 9.9% stake in Germany’s largest lender, Deutsche Bank.

It is clear that Angermayer, whose investment holding Apeiron Investment Group is headquartered in Malta, has a fantastic global network, which consistently delivers exceptional returns.

Easy Access to the Crypto World

Easy Access to the Crypto World

With a diversified portfolio investing in service providers, FinLab offers a unique opportunity to profit from the cryptocurrency boom with at the same time an attractive downside protection. This is especially true for entities who aren’t able to invest directly in cryptocurrencies and/or fear it’s volatility.

Do you think the real money to be made in crypto stems from investing or providing services to investors? Tell us what you think in the comments below.


Images courtesy of Shutterstock, QuoteFancy

The post How to Make Money in Cryptocurrencies Irrespective of the Volatility appeared first on Bitcoinist.com.

Source: Bitcoininst

Young Investors Focused on Cryptocurrencies and Pot

TD Ameritrade CEO Says Young Investors Focused on Cryptocurrencies and Pot

This week Tim Hockey the chief executive officer of the large brokerage firm, TD Ameritrade, revealed that his company is seeing a “huge uptick” in investments from millennials tied to cryptocurrencies and cannabis.

Also read: The Marketing Ploys of Clones: Another Project Aims to Create a ‘Perfect Bitcoin’

Millennials Are Investing a Great Deal In Cannabis and Cryptocurrency

TD Ameritrade CEO Says Young Investors Focused on Cryptocurrencies and Pot Millenials are now the biggest investor demographic in the world, and according to the stock brokerage firm TD Ameritrade this group is investing heavily in cryptocurrency and reefer-related businesses with tradable shares. Just recently news.Bitcoin.com reported on TD Ameritrade offering its customers access to Cboe’s bitcoin-based futures product. The company revealed on December 18 that Cboe’s bitcoin derivatives launch had “adequate liquidity” and it was more comfortable with listing the product. TD also offers a variety of publicly traded shares of other types of digital currency and blockchain-based ventures.

During a recent interview Hockey explains there’s been a lot of younger investors these days mostly millennials. Hockey says the firm’s distribution strategy focuses on technology and other significant trends that are appealing to this demographic.   

“It seems to be working because our new accounts opened by millennials are up 72% year-over-year, and that’s driven by both our offerings as well as what’s of interest in the marketplace right now,” explains Hockey.  

Clearly, the two biggest stories of the quarter were the sectors of cryptocurrency and cannabis — Those are two sectors that didn’t even exist a few years ago and that has driven the skewing of our new accounts opened to the younger trader and younger investor.

 A Little Less Froth In 2018

TD Ameritrade CEO Says Young Investors Focused on Cryptocurrencies and Pot
TD Ameritrade’s Tim Hockey.

Hockey says the cryptocurrency market space is still not mature, and the recent excitement during the holidays was rather “frothy.” At the time Hockey said there was a lot of ‘fear of missing out’ (FOMO) and people wanted to participate when it was going up.

“Ever since the pricing has been normalized and there’s been a bit of a correction, then you’ve seen a little bit less froth, if you will, in the market,” notes the TD Ameritrade executive.

We’ve actually seen that in the first few weeks of January, crypto trades – not just the Cboe product, but companies that are related to blockchain – have contributed a couple of points less toward our trading activity.

Hockey says his company will remain focused on the younger generations and the millennial demographics’ investments. Lots of millennials use the Nebraska based TD Ameritrade as its one of the largest brokerage services worldwide allowing individuals and institutions to invest online.

“And what do younger clients need? They love technology, and we’ve got the platforms that are the best out there,” Hockey concludes.

What do you think about millennials investing in cryptocurrency and cannabis investments? Do you think this trend will continue? Let us know in the comments below.


Images via Pixabay, Twitter, and TD Ameritrade.


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Source: Bitcoinnews.com

There’s a New Crypto Marketplace that Lets You “Buy” Celebrities

People Are Paying Thousands of Dollars for Crypto Celebrities on the Blockchain

Anything can be placed on the blockchain with a little ingenuity – even Hollywood celebrities. Cryptocelebrities is this week’s Cryptokitties, a smart contract-based trading game which profits from digital scarcity. Only one copy of each celebrity is released, compelling traders to spend thousands of dollars to snap up ‘celebs’ like Satoshi Nakamoto and Emma Watson.

Also read: Coinbase is Making $2.7 Million a Day

Celebrities on the Blockchain Because 2018

On paper, a game like Cryptocelebrities sounds as dumb as last month’s big crypto game, Cryptokitties. Like its feline forebear, Cryptocelebrities rewards early adopters who get to snap up the best digital real estate and then sell it on for a profit. Blockchain-based collectors’ games such as these create a level of FOMO that can cause assets to change hands for thousands of dollars. At 4pm EST on Tuesday 23rd January, the Cryptocelebrities site was knocked offline temporarily, believed to be due to high demand.

People Are Paying Thousands of Dollars for Crypto Celebrities on the Blockchain

While the Cryptocelebrities project looks like a shameless cash-in, both on the current craze for blockchain games and on the celebs themselves, it does have some interesting features. One of these is for verified celebrities to control the royalties from the trading of their image and earn a share of the profits. It’s hard to imagine the likes of Clint Eastwood or Donald Trump using ether to verify their blockchain counterparts, but it’s a bold concept. Vitalik Buterin and Satoshi Nakamoto (depicted here as simply a question mark) also feature.

Don’t Get Too Attached

People Are Paying Thousands of Dollars for Crypto Celebrities on the BlockchainAnyone contemplating snapping up Hollywood’s – or Crypto’s – A-listers would do well not to get too attached. Anyone who wants to buy a celeb off its current owner can do so, and there’s nothing its owner can do to halt the sale. As the Cryptocelebrities website explains: “When someone else matches the current price, they’ll automatically snatch your Smart Contract. You’ll lose the card but you will receive up to double the amount you originally invested in ETH.”

If you buy a contract for 0.2 ETH, another player can snatch it away from you. Once that happens, you’ll automatically receive 0.4 ETH! Most contracts double in price with each transaction until they reach 1 ETH. Price increase: 2x from 0 ETH to 0.05 ETH, 1.2x from 0.05 ETH to 0.5 ETH and 1.15x from 0.5 ETH up.

Like other blockchain games, the smart contracts that control ownership may be decentralized but the images of the celebs reside on a centralized database. Should Robert Pattinson or Woody Allen’s agent step in and exert pressure on Cryptocelebrities to remove their image, traders could be left holding an empty card. Right now, Woody Allen is worth 1.05 ETH, but would anyone be willing to pay a higher free if his image wasn’t associated with the smart contract?

People Are Paying Thousands of Dollars for Crypto Celebrities on the Blockchain

At present, Vitalik Buterin is the most traded celeb, with a price tag that stands at 20 ETH, followed by Satoshi Nakamoto and Angelina Jolie on 13 ETH apiece. While it’s hard to imagine the pair ever sharing a red carpet, in Cryptocelebrities they stand shoulder to shoulder. Such is the popularity of the site that newly added celebs can change hands a dozen times within the first hour, as traders jostle to complete their Metamask transaction ahead of the competition. In the interests of journalism, news.Bitcoin.com tried – and failed – to snap up Ellie Goulding and Van Morrison.

Someone paid half an ETH for this.

At the time of publication, user mfs7772 is the Cryptocelebs whale, with 24 high-priced contracts in their custodianship including Nicole Kidman, Vitalik Buterin, and Ke$ha. It’s easy to write these primitive games off as ephemeral and frivolous – which they undoubtedly are – but they make for a fascinating study of human psychology, whilst demonstrating the concept of digital scarcity and the greater fool theory in action.

Do you think games like Cryptocelebrities have longevity, or are they just a passing fad? Let us know in the comments section below.


Images courtesy of Shutterstock, and Cryptocelebrities.


Want to create your own secure cold storage paper wallet? Check our tools section.

The post People Are Paying Thousands of Dollars for Crypto Celebrities on the Blockchain appeared first on Bitcoin News.

Source: Bitcoinnews.com

Does the IRS Fear Bitcoin?

An op-ed in the New York Times theorizes that the IRS fears Bitcoin due to tax evasion. What actions could the IRS take to combat this?


The Internal Revenue Service (IRS) is one of the most feared federal agencies in the United States. They can garnish wages, levy fines, put liens on personal property, and even send you to jail for failing to pay the appropriate taxes. Which is why it’s interesting to see an op-ed in the New York Times say that the IRS is afraid of Bitcoin.

Internal Revenue Service (IRS) Asked to Provide a Clearer Cryptocurrency Tax Framework

Does Anything Frighten the IRS?

The op-ed was written by Richard Holden and Anup Malani. Holden is a professor of economics at the University of South Wales while Malani is a law professor at the University of Chicago. While their op-ed headline says “Why the I.R.S. Fears Bitcoin,” what they actually argue is that the tax agency fears is the effect of cryptocurrency upon revenue collection.

A pretty significant amount of money goes untaxed each year in the US due to the underground economy that is currently cash-based. The Internal Revenue Service estimates that a whopping $500 billion in revenue is lost each year due to unreported wages.

What the Internal Revenue Service fears is that Bitcoin and other cryptocurrencies could become much more mainstream and used on a daily basis. Currently, it is somewhat of a hassle for people to exclusively use cash as one has to withdraw it, carry it on their person, and payments have to be made face-to-face. Cryptocurrency is much more flexible and easy, allowing for guaranteed payments to be sent or received anywhere in the world. Suddenly, the scope of the underground economy expands exponentially if Bitcoin becomes an everyday source of personal transactions.

The Tax Problem with Bitcoin

The Internal Revenue Service knows that a lot of people are currently not paying their taxes on Bitcoin, which they found out by examining the Coinbase accounts they gained access to. They found that only 0.2% of users reported Bitcoin gains or losses.

This tax evasion could be even worse if someone shuttles around their cryptocurrency through various addresses. The op-ed authors imagine a scenario where a person bought Bitcoin at $15,000, then transferred it to a second address when it hit $15,500. That Bitcoin is then sent to a third address (owned by the same user), and the coin eventually reaches a total value of $25,000. The user can then send the Bitcoin back to their original address and claim that they only made $500 (when they sent the Bitcoin to the second address). The user also tells the taxman that they just bought a Bitcoin for $25,000 from another user. Of course, the IRS is unaware that the second and third addresses are owned by the same person.

The above scenario is an intriguing one and would require multiple exchanges (ones that lay outside of the purview of the US) to work. Such a scenario and the purported anonymity that cryptocurrency provides is enough to give the taxman an upset stomach.

Ways to Clampdown on Bitcoin

The authors of the op-ed argue that the Internal Revenue Service has several options to combat their Bitcoin problem. One is to raise tax rates across the board to make up for the loss in revenue. This is definitely a non-starter as people will rise up in arms, and the current administration has no desire to commit political suicide over this idea.

Another method of dealing with Bitcoin is to ban all cryptocurrency outright. This is a possibility as any government does not like a system, especially economic, that lies outside of their control. However, I think such a scenario is unlikely as the possibility of taxing crypto is just too potent a lure to pass up. If the government can tax something, they will.

The last major way of handling Bitcoin discussed by the op-ed is to change the tax code so that taxes are collected when money is spent, not when it is earned. Basically, the current income tax system is replaced entirely by a consumption tax. To be honest, this is probably the best way to handle the problem of tax evasion as everybody has to spend money, whether it be for food, rent, entertainment, or transportation.

However, the likelihood of seeing a consumption tax replace the Gordian Knot of a tax code found in the US now is slim to none. The current tax system is designed for various special interests, all of whom have congressmen in their pocket.

Overall, the IRS does not fear cryptocurrency itself, but it does fear the effect that it can have upon the underground economy and tax evasion. The likely scenario that crypto enthusiasts in the US will see in the future is increased regulation and a removal of anonymity on exchanges. In the end, the taxman always gets his pound of flesh.

What do you think about the IRS and their issues with Bitcoin? What steps do you think they’ll take? Let us know in the comments below.


Images courtesy of Wikimedia Commons and Bitcoinist archives.

The post Does the IRS Fear Bitcoin? appeared first on Bitcoinist.com.

Source: Bitcoininst

Debunked: Top 5 Bitcoin Myths & Misconceptions

The mainstream press has a knack for giving airtime to Bitcoin naysayers who repeat the same tired arguments. Here are the top five most common myths presented against Bitcoin and why they are wrong.


Bitcoin Uses More Electricity Than [Insert Country]

“One Bitcoin Transaction Now Uses as Much Energy as Your House in a Week!”

“Bitcoin’s energy usage is huge – we can’t afford to ignore it”

“Bitcoin consumes more electricity than Denmark!” 

Deliberately eye-catching, sensational headlines about Bitcoin mining are constantly recycled in the press. While these concerns were recently refuted in a Forbes article, the incumbent global financial system isn’t exactly known for its sparing use of electricity. Think skyscrapers, data-centers, staff, branches, security costs, infrastructure etc.

5 Ways to Solve the Bitcoin Mining Energy Crisis

Bitcoin will use much less power as incentives force miners to pursue the cheapest (and increasingly renewable) sources of energy to cut costs and boost competitiveness. For more, here are nine reasons why Bitcoin mining is not a waste of electricity.

Governments Will Ban Bitcoin

Classic FUD (fear, uncertainty, doubt) perpetuated by the press that has fueled more than 200 obituaries to date. Sure, a small minority of nations have made cryptocurrency officially illegal. Ecuador, for example, launched its own ‘digital currency’ after banning its potential competitor, Bitcoin. Meanwhile, the blockchain industry is booming in places like the US, Japan, Hong Kong, Singapore, and Switzerland

Bitcoin may even play an increasing role in geopolitics. Therefore, it may simply become a risk for governments and central banks not to own Bitcoin (or whichever global cryptocurrency becomes the de facto store of value).

Meanwhile, volatility is diminishing, new money keeps flowing in, and the public becomes more knowledgeable about how the world’s first decentralized currency really works and why governments can’t just flip a switch and turn it off.

“It’s impossible to ban bitcoin and cryptocurrency trading because the more you regulate, the more it will become popular,” explains Francesco Nazari Fusetti, co-founder and chief executive officer of Aidcoin.

Additionally, governments are reportedly buying Bitcoin themselves. What’s more, some officials have even admitted to spreading false rumors to capitalize on the price movements.

Lastly, ask yourself: what country in their right mind would get rid of a burgeoning new industry that is expected to grow at a Compound Annual Growth Rate (CAGR) of 61.5% by 2021? Russia’s President Vladimir Putin is just one of the leaders who believe that the technology holds massive potential for his country and the global economy. 

 “The digital economy isn’t a separate industry, it’s essentially the foundation for creating brand new business models,” he said at the St. Petersburg Economic Forum last summer.

Bitcoin Has Zero Intrinsic Value

Only about 10% of the total gold supply was used for technology, such as industrial, electronic and dental use in 2014, according to Gold Industry Information. Approximately 12% of the gold supply was purchased by central banks, while the rest (78%) was mostly used for jewelry.

Bitcoin Gold Debuts at #5 on CoinMarketCap

Put differently, the overwhelming share of industrial gold consumption does not come from its intrinsic value. Its main use is largely rooted in ostentation and the historic perception that the shiny metal is valuable. 

Granted, both Bitcoin and gold have their own tradeoffs. However, gold is facing stiff competition from ‘digital gold’ in the digital age with its transportation, storage and security costs – the reason why banks were created in the first place.

Whether you believe “intrinsic value” can only be attributed to something physical is irrelevant. Bitcoin introduces something completely different – a new concept of digital scarcity. Here is a good article outlining what exactly gives Bitcoin its value.

Bitcoin Is Only Used By Criminals

False. All Bitcoin transactions are broadcasted on a public ledger making it the most transparent value transfer system in history. In other words, it’s much easier for a criminal to use plain old cash…or even banks.

The UK Is Trying To Crack Down On Malicious Bitcoin Use

In fact, an October 2017 report from the UK Treasury found that “there is no specific evidence of terrorists using [cryptocurrency] to store or transfer funds and the sector is assessed to be exposed to relatively low risks for terrorist financing.”

The study also found “a lack of evidence” of criminals using Bitcoin, noting that other methods offer “greater attractiveness.”

This was also supported by another recent study from Elliptic, a UK based cybersecurity firm, which revealed that less than 1% of all Bitcoin transactions are criminal in origin. Specifically:

The total percentage of identified ‘dirty bitcoins’ going into conversion services was relatively small. Only 0.61 percent of the money entering conversion services during the four years analyzed were verifiably from illicit sources, with the highest proportion (1.07 percent) seen in 2013.

Bubble! Tulipmania!

First, the so-called Tulip Bubble during the Dutch Golden Age is widely misinterpreted and may have never happened. Second, if tulips were immutable, scarce, and could be sent anywhere in the world without trusting a middleman in minutes, then maybe comparing a scarce digital unit of account to tulip bulbs would make sense.

Ironically, fiat currencies such as the US Dollar share a lot more properties with tulips, which can be produced ad infinitum, unlike the 21 million bitcoins that will ever exist.

Here is a good article explaining this myth further.

Agree with the list? Did we miss any other common Bitcoin misconceptions? Share them below! 


Images courtesy of Business Insider, Twitter

The post Debunked: Top 5 Bitcoin Myths & Misconceptions appeared first on Bitcoinist.com.

Source: Bitcoininst

5 Reasons Why This Week’s Cryptocurrency Price Drop is Nothing to Worry About

With more people entering the crypto markets than ever before, the seeds of fear, uncertainty, and doubt has a greater impact on price volatility. Newbie traders jumping in and out on the whims of social media hype, and then panic selling, causes what happened over the past couple of days. However, looking at historical crypto charts, this January dip is nothing new.


There are a number of reasons why the markets crash in January, and many originate in Asia where the bulk of crypto trading occurs. According to Coinmarketcap, which no longer includes South Korean exchanges, the total market capitalization of all cryptocurrencies fell from $750 billion to $420 billion in four days. At the time of writing, they have since recovered and are on the way back up again, currently sitting at a total of $575 billion.

FUD vs FOMO

Reason #1: A lot of the impetus for crypto price action comes from Asia where the news has not been good in recent weeks. China is constantly trying to quash the entire industry, and South Korea just can’t make its mind up with regulatory hype and clampdown fearmongering emerging on an almost weekly basis. The FUD is as infectious as the FOMO, and panic selling over the past few days has sent all coins into freefall, with some losing as much as 40%.

Looking back on historical Bitcoin charts reveals that a January selloff has happened before, several times in fact. Bitcoin is the gold standard for crypto, and a lot of the altcoins did not even exist back then.


Crash Catalysts

Reason #2: It has been speculated that one factor causing this is the Chinese Lunar New Year, which usually falls in February. It is a time of year when people take time off work and travel to visit family, and for this, they will need fiat, not crypto. Since nations in Asia are responsible for the lion’s share of crypto trading, it stands to reason that this could contribute to the annual selloff.

Reason #3: Another factor could be the end of the tax year approaching where investors are planning to pay their annual taxes. Again this has to be done in fiat, not crypto. While not the only catalyst, it could have some influence over price action.

Reason #4: The ending of the first ever Bitcoin futures contract may also have contributed to traders shorting the asset. Once the big players, such as CBOE and CME, get involved, smaller markets can be manipulated by the institutionalized investors, and we could see more of this action until things stabilize.

CBOE Announces Increased Bitcoin Futures Margins Amid Market Manipulation Worries

Reason #5: As more new and inexperienced traders enter the market, these chart oscillations will amplify. Only when they realize that this is a natural cycle and crypto is not dead will things settle down a little. Since total market investment in cryptocurrencies has jumped over 2500% in less than a year, we are still at very early stages of what could be a game changing industry.

Did you panic sell your crypto or hodl it? Share your experiences below.  


Images courtesy of CoinMarketCap, Bitcoinist archives, and Pixabay.

The post 5 Reasons Why January’s Price Slump is Nothing to Worry About appeared first on Bitcoinist.com.

Source: Bitcoininst

What’s Causing The Crypto Market Worldwide To Plummet?

The cryptocurrencies market has so far had a rocky start to the new year with prices of the top coins plummeting alarmingly. On January 16, 2018, as of this writing, only one out of the top 100 coins is in the green on CoinMarketCap.

Market Topple For All Coins

The total market still stands at $580 billion, but it is still trying to recover from the earlier drop to roughly $543 billion.

In fact, January 16, 2018, has been a particularly sad day in the recent history of all cryptocurrencies. Bitcoin, ethereum, Ripple, and pretty much any other popular coin you could think of are falling today after uncertainty over the crypto market in South Korea and China fueled a panic-driven sell-off of virtual currencies.

Bitcoin prices plunged over $3,000 between on the morning of January 16, 2018, hitting the lowest-ever for the month at $10,500.

While the volatility of the crypto market was relatively higher opening the year, the erroneous report emanating from South Korea about a possible regulatory crackdown created a ruckus in the worldwide crypto market. China’s recent accounts of clamping down on mining operations and other far-reaching regulations have also sent chills through the sector.

Apparently, many investors didn’t want to leave the fate of their crypto holdings to chances after South Korea’s Finance Minister Kim Dong-Yeon reiterated that a ban on virtual currencies was still a “live option.”

The South Korean government did later provide reassurance that an outright ban on crypto assets is not necessarily imminent.

The Office for Government Policy Coordination stated on January 15, 2018, saying that pulling the plug on virtual currency exchanges is just one of the many possible actions the government is deliberating on to protect investors from crypto volatility and speculations. It reassured that a final decision would be taken only “after sufficient consultation and coordination of opinions.”

Asia Ripe with Regulation

As mentioned above, it’s not just South Korea. Speculations are rife that China is also prepping to block domestic internet users from accessing international exchanges. The country had already imposed an outright ban on Chinese ICOs and exchanges earlier last year.

On January 12, 2018, BTCManager reported how the Chinese government is walking the extra mile to make business increasingly difficult for homegrown crypto mining companies. Most of the bigger companies are already preparing to expand to overseas markets in anticipation of a total crackdown.

January 16, 2018, will undoubtedly be remembered as a bloodbath for the cryptosphere. However, it’s observed this market movement is fairly common and happens almost every quarter.

The post What’s Causing The Crypto Market Worldwide To Plummet? appeared first on BTCMANAGER.

Source: BTC Manager