Tag: Bitcoin

Bitcoin Rebounds from Slump to Attain New All-Time Highs

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Just a little over a week after its price went over $9,000, Bitcoin on Tuesday once again made history by climbing 3.86 percent and crossing $12,000. Trading prices from Tuesday price bump have given Bitcoin a market capitalization of nearly $203 billion which further represents a historic rise in valuation of about 1,100 percent since the beginning of 2017. All this has been amid speculation that the extensive adoption and use of futures will facilitate the legitimization of decentralized digital currencies and, ultimately, mainstream use by investors. There has been increased optimism pertaining to the distributed ledger technology, blockchain, that is a vital component of Bitcoin – even though there are still warnings about the speculative mania that revolves around Bitcoin which implies that it merely an asset bubble that will burst eventually. The lack of government backing seems to be at the heart of Bitcoin’s volatility hence the doubts.

According to hedge fund manager Mike Novogratz, “This is a bubble and there is a lot of froth. This is going to be the biggest bubble of our lifetimes.”

Novogratz is not the only one who still thinks the Bitcoin doomsday is nigh – Dennis Gartman, who is considered the biggest Bitcoin bear, still won’t bite despite Cboe Global Markets announcing that it would be venturing into Bitcoin futures trading beginning Sunday. Gartman’s major worry when it comes to Bitcoin is the cryptocurrency’s volatility, something that he says “frightens him.” This he attributes to the difficulty that comes with margining a currency that regularly shifts from 15 to 20 percent. In light of the new developments and Cboe Global Market giving Bitcoin some sense of legitimacy, Gartman still believes Bitcoin has a long way to go before he finally gives it a thumb up;

“When they begin to pay taxes on it, when it ceases to be an avenue for avoiding taxes, when it ceases to be a place where drug dealers are trading and making transactions, then I’ll be interested,” he said.

Bitcoin Bubble Burst: The App That Warns Against Crashes

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One thing that ardent Bitcoin lovers and the usual Bitcoin vultures have in common is their need to keep their eyes on the charts – everyone seems to be having bubble predictions which are simply anticipations of a crash that is expected anytime soon. On Sunday afternoon Bitcoin’s value shot up to over $11,770 from a low of $9,9400 on Thursday. This rapid 1,434% increase in value that has been witnessed in just a few months has led people to think that its volatility is a clear indication that the Bitcoin bubble will burst soon.

Now, innovative apps are coming into play to help the Bitcoin community in monitoring changes in Bitcoin’s prices. Presented at the Disrupt Berlin hackathon, the Bitcoin Bubble Burst app is one such handy tool that allows Bitcoin users to focus on other important things while it monitors changes in Bitcoin’s price and related news events then alerts the users in real time. There are, of course, plenty other apps that offer alert services for changes in Bitcoin prices or trading volumes but the creators of Bitcoin Bubble Burst are offering something totally different with their app. While none of the other similar apps offer adequate warnings, Bitcoin Bubble Burst makes use of neural networks and an advanced machine learning system that they trained on data linked to Bitcoin price changes. These include trading patterns as well as key news items all of which are detected by the Bitcoin Bubble Burst’s system and once they attain a certain vital threshold, users are alerted via email with a logical justification of the warning.

“Sometimes huge events, like the ban of Bitcoin in China, are mentioned in social media and the news – before it affects the value,” the creators of BBB say on their website. The idea behind the project was not just to spot and monitor the dynamics of the Bitcoin ecosystem but also to offer Bitcoin users relevant advice on whether they should either buy or sell. Also, according to the creators, Bitcoin Bubble Burst will not have ads or spam and it will be an open source, encrypted service that will only give alerts when they are important.

Fundamentally speaking, the Bitcoin world is still unpredictable which therefore implies that the viability of this app, and other similar ones, still needs to be tested over a significantly extensive stretch of time. Other than that, the idea of having an app that does all the hard work for you is exceptional. Who wouldn’t want that?

Survivalists and Doomsday Preppers Switching from Gold to Bitcoin

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It is now safe to say that this is officially Bitcoin week. Other than just breaking barriers and reaching all-time highs of over $11,000 the decentralized digital currency has also caused quite a stir in the financial world. People have been wondering what the hell is happening right now in regards to Bitcoin’s speculated price changes. Will it go higher? Will it crash again? By now, Bitcoin has already managed to dwarf some of the largest financial market bubbles in history – and if it is indeed a bubble, then what next for its enthusiastic adopters?

Some North American doomsday and survivalist preppers, however, have a different opinion regarding Bitcoin. In addition to the usual humongous supply of nonperishable food that they usually have stacked away in their doomsday bunkers, the preppers are now ditching the habit of stockpiling gold bars and coins for the invisible Bitcoin wallets in cyberspace – they are confident about the internet staying intact even if the world’s civilization collapses. Devoted survivalists are convinced that the decentralized cryptocurrency is definitely going to survive or endure global pandemics, economic collapse, catastrophes, climate change and even nuclear war. Very enticing, right?

While it seems rather counter-intuitional that some of Bitcoin’s most fervent proponents are a group of people whose motivation is in the belief that public and global infrastructures will crumple on the onset of social, economic and political distress, it is undeniable that these same group of people are partly key determinants of Bitcoin’s future. As it happens, these survivalists have very different perspectives when it comes to Bitcoin which they have labeled the currency of the future – this has been further propelled by Bitcoin’s 900% plus increase within the last ten months. To these people, Bitcoin is going to rival the euro, the dollar, the yen and even gold all of which are not doomsday-proof.

“People see Bitcoin prices going to the moon. No one thinks gold is going to the moon”

There have always been discussions about the pros and cons of cryptocurrencies especially on survivalist forums such as survivalistboards.com and mysurvivalforum.com and from what we could gather, the tides have shifted significantly. To put this into perspective, as Bitcoin’s value soars higher and higher more people are considering investing in decentralized digital currencies – now “buy Bitcoin” registers as a far more popular search phrase on Google as compared to “buy gold.” In fact, the US Mint’s gold coin sales are reported to have recorded decade-lows within the first quarter of 2017.  Still, the faith in Bitcoin can perhaps be attributed to its similarity to gold – both have a finite supply which, according to Bitcoin supporters, makes it immune to inflation. Digital currencies have been portrayed as the ‘knight in shining armor’ when it comes to breaking the society’s dependence on state monopoly over the issuance of currencies in a bid to dominate the economy. Bitcoin is definitely on a roll but is the quest for economic liberation enough to keep it going? Who knows? Maybe what everyone really needs is a guide to surviving Bitcoin, or surviving with Bitcoin.

2017 Gains Soar to 940% as Bitcoin Tops $10,000

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This week has been a great week for Bitcoin – the virtual currency soared to an all-time high above the $10,000 value which had been highly anticipated by many of its followers. But will it hold? As of now, Bitcoin seems to be doing pretty well on various major digital currency indexes and major exchanges including the renowned Luxembourg-based BitStamp. This year alone, Bitcoin has broken a ton of records by soaring to over 900% of its initial value at the beginning of January 2017 thus registering the largest gain of nearly all asset classes while at the same time having to cope with the increased institutional and market demand for crypto-currencies. Evidently, mainstream use of Bitcoin and other cryptocurrencies has increased significantly and the horizons are looking clear, in most part.

Still, cryptocurrencies are still met with a significant amount of skepticism – Bitcoin’s value and price surge are seen by some of these skeptics to be nothing more than a speculative bubble that does not relate to any real financial market or the economy as a whole. Among the skeptics is leading banker and Credit Suisse Chief Executive Tidjane Thiam who openly expressed skepticism for Bitcoin saying;

“From what we can identify, the only reason today to buy or sell Bitcoin is to make money, which is the very definition of speculation and the very definition of a bubble.”

There have been endless raging debates regarding the legitimacy of Bitcoin but the fact that the decentralized digital currency has managed to stay afloat despite a number of major crashes across its 9-year lifespan has put certain opinions under review for reconsideration. Bitcoin’s value may vary from one market to another but the escalating trend of its value seems to be stabilizing and this is a core concern for potential investors and the Bitcoin community. Will it hold? How high can it get? We will just have to wait and see.

Good Weekly Start for Bitcoin as It Tops $9000 Mark

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Bitcoin’s forward trajectory has continued with the cryptocurrency’s dollar price rising above the $9000 mark – as of today, it stands at $9730 as it draws closer to the $10,000 region. This should come as no surprise as Bitcoin has gained a lot of popularity by breaching its all-time highs month after month. The price surge is expected to continue and maintain a similar trend as we approach 2018. This year, 2017, has been a particularly great year for Bitcoin in regards to its value. What began as a $1000-mark breach back in January marked the onset of the currency’s best year.

Is Bitcoin Liquidity Increasing?

In just two weeks or less, Bitcoins’ price has shot up from less than $7800 to over $9060, a surge that has caused a significant increase in its trading volume from about $2 billion to over $4.6 billion. This makes Bitcoin more liquid than even the most liquid stock in the world, a title that was previously held by Apple. Furthermore, Bitcoin now processes more trades than the major stock markets in the world like KOSDAQ in South Korea. As major financial institutions like the Man Group, a $95 billion hedge fund, participate in strictly regulated Bitcoin exchanges in the coming weeks, the price of Bitcoin might surpass $10,000 sooner than anticipated. In fact, financial firms like StandPoint and Wall Street analysts have already set new highs for Bitcoin’s interim price target moving it up from the previous $10,000 to $14,000.

According to StandPoint founder Ronnie Moas, “There have been many positive developments during the last five months and a few of the obstacles that were in Bitcoin’s way have been knocked down.”

Bitcoin mining is now more profitable than it has ever been in its 9-year life – only 4.3 million Bitcoins are left to mine as nearly 75 percent of the decentralized currency has already been mined and is used in the over 250,000 daily transactions on the network.

New USD Highs as Bitcoin Bull-Run Primes Altcoin Markets

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After recently establishing an all-time high of nearly $8400, Bitcoin has currently consolidated above $8000 a situation that has resulted in a liquidity shift towards the general altcoin markets. The outcome has been in favor of several of the major altcoins which have recorded very high dollar values even though the prices, when compared to Bitcoin’s value, can be considered to be relatively modest. For instance, Ethereum recorded a new all-time high value of about $420 with the prices stabilizing well above the $400 mark.

At the time of this writing, one Bitcoin is equivalent to about $8140 after it set a new record after establishing a new all-time high value of approximately $8380. Also, Bitcoins current total market capitalization stands significantly above $136 billion – the 24-hour trading volume is also well over $4 billion. This reasserts the market dominance that Bitcoin currently enjoys – it sits at 53.1% which, however, represents a 5% drop from its value a week ago.

Mark Keiser, host of Russia Today’s ‘Keiser Report’ anticipates that the price of Bitcoin is likely to soar from its current $8000 Value to new highs of about $100,000. While it is certainly still too early to tell how his predictions will play out, he has continued to express his confidence in the cryptocurrency’s market dominance saying that;

“Hundreds of obituaries have been written about bitcoin and none of them have come true and none will. Fact is, bitcoin is a gift from God to help humanity sort out the mess it has made with its money.”

November has not been a very good month for Bitcoin – its markets fell by approximately 28% shortly after attaining the preceding all-time high of $7890. This represents Bitcoins largest red weekly candle since its inception. Nonetheless, after dropping to its $5450 all-time low, Bitcoin rapidly regained its momentum and recovered to produce its largest weekly candle when it broke above the $8000 mark.

CME Announces Bitcoin Futures for December!

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In somewhat of an unexpected twist, CME has released its Bitcoin Futures market specifications with the date being officially announced on November 19. The launch date is, however, still awaiting relevant regulatory approval, a situation that the CME Group elaborated in a recent update that read, “Effective Sunday 10 December 2017 for trade date Monday 11 December 2017, and pending all relevant regulatory review periods, please be advised that CME will launch Bitcoin Futures.” Thus, the market will certainly need to wait a little longer even though most of the relevant information has been dispensed – the contract unit for the futures is $25 or 5 index points to be quoted in Bitcoin per US dollar and will be listed on CME, CME’s Globex central standard time and Clearport.

With this year’s planned Bitcoin Futures product, CME, which is currently the largest Futures exchange in the world, intends to prevent extreme Bitcoin volatility. In a CNBC interview, CME Chairman and CEO Terry Duffy expressed his confidence in CME’s self-certification process and the application process. He further confirmed the launch dates by hinting at the possibility of trading beginning by the second week of December 2017. This comes after CME’s huge revelation in October that it had been seeking approval from regulators to launch a Bitcoin-related product. During the reveal, CME expected to keep the futures to be settled through cash and be dependent on existing of 2016’s prevailing price indices – this has since changed and will be based on the Bitcoin Reference Rate. CME’s Bitcoin futures will be capped at price limits of 20% above or below the settlement price. Similarly, there is going to be a spot position limit of 1,000 contracts.

CME has been preparing for the launch for quite a while now as portrayed by Duffy’s sentiments during the CNBC interview where he went ahead to explain;

“I’m going to implement something. If the market drops precipitously, we’ll stop trading, and if we think a product is going away, we have the longs, we have the shorts, we’ll match them up at a price and that’s the way our rules read today.”

This has drawn a lot of attention from the Bitcoin community and everyone is looking forward to seeing how CME’s involvement will impact Bitcoin’s ecosystem.

While some Bitcoin users are speculating that Bitcoin spot markets will be less volatile with CME’s Futures products, stabilizing the weighty fluctuations in the price of Bitcoin with Futures markets is more theoretical than practical. Bitcoin’s price has already transcended the $8000 mark – an upward momentum that is expected to lead the cryptocurrency to all-time highs by the end of the year. To be more specific, Bitcoin’s price is likely to extrapolate towards the $10,000 mark in December if investors from various institutions and hedge funds buy into it.

The Story Behind the Rise and Fall of Bitcoin Cash

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“Bitcoin and Bitcoin Cash will coexist and serve different cases, just like Bitcoin and Ethereum. It is not a zero-sum game. Work on building your project, not on destroying the other,” that was what Bitcoin and security expert, Andreas Antonopoulos had to say to affirm the fact that Bitcoin Cash indeed has a market share based on its ability to serve immediate payments and short-term scaling. This comes after Xapo president Ted Rogers declared that the recent price trend exhibited by the cryptocurrency was not sustainable. But where did this all start?

In an unexpected twist, Bitcoin Cash soared to an all-time high price of $2800 on November 12 – a situation that made the three-month-old cryptocurrency the sole beneficiary of the SegWit2x hard fork cancellation. Nevertheless, this glorious achievement was short-lived with Bitcoin Cash struggling to sustain the upward momentum of its price which eventually dropped to $1100 in just a couple of days. Luckily for Bitcoin Cash users and traders, the price has stabilized at around $1110 as of now.

The collapse of the SegWit2x plan that was potentially the main cause for the dramatic pump in Bitcoin Cash’s price has been attributed to the lack of consensus among Bitcoin community members. There have been varying opinions regarding the future of Bitcoin and Bitcoin Cash with some still portraying an element of optimism while others expecting worse scenarios considering the over 50% retrace that the currency experienced earlier. The high prices of cryptocurrencies, like Bitcoin, have attracted millions of users who may or may not be savvy with the concepts revolving around these. The result, especially among the less savvy cryptocurrency users has culminated in the form of confusion which makes matters even worse. In fact, some cannot even tell the difference between Bitcoin and Bitcoin Cash – which leads us to the unpleasant reality that awaits. So, what can we expect?

According to Auxesis Group chairman and Cashaa founder Kumar Gaurav, “The quick rise [of BCH] from around 600 to 2400 USD in a few days makes it look like a typical artificial pump which was already being followed by a dump back to $1300 USD within 30 min. As compared to the FX market, the crypto market is still small, it is easy to do that and cannot be used to estimate the future of BTC vs BCC.” He further adds that unlike Bitcoin which has already surpassed a lot of expectations, Bitcoin Cash still has a long way to go before its growth in the long term can be estimated.

Divergent opinions suggest that there is still room for both flavors of Bitcoin to co-exist thanks to the increasing number of cryptocurrency users. In Hoskinson’s words, “Bitcoin Cash seems to be a productive split with its existence neither threatening Bitcoin’s nor requiring support from Bitcoin’s remaining adherents. Now Bitcoin is free to provide its small-block vision and cash the large block. My hope is that this will reduce fighting in the long run as both sides realize that the other isn’t going away. Just like we did with Ethereum and Ethereum classic.”