This Is What’s Behind BTCs Weekend Tumble

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This Is What’s Behind BTCs Weekend Tumble

A Secondary Reaction

Bitcoin took a surprise tumble this past weekend. Down as much as 16% over the past three days the world’s leading cryptocurrency is now trading at levels not seen since early January. While scary, this move will likely not last long and here is the reason why.

Members of a defunct ponzi scheme called Plus Token is dumping tokens on the market. This news came to light thanks to a Twitter account labeled only Ergo. The perpetrators of this scheme sent nearly $220 million in tainted funds to a mixer over the weekend. A cryptocurrency mixer, also called a tumbler, is a service that scrambles and mixes coins and tokens in way that makes them less traceable and therefore safer for criminals to sell. The use of the tumbler suggests the group behind Plus Token is liquidating their funds and the rapid decline in BTC confirms that someone is doing just that.

Other top BTC pundits including TradingView analyst Jacob Canfied concur, BTC is falling because Plus Token’s supply is getting dumped on the market. The Plus Token scheme was busted last spring but there are still unknown operators at large. Someone from the group has been moving millions in ETH and BTC from wallet to wallet over the past few months and there is still quite a bit left for them to sell.

The Technical Damage Is Still Limited

While there has been some technical damage done it is limited. The bad news is that the 2020 uptrend is over, at least for now. The BTC/USD has corrected back to a key support that indicates a new trading range may have formed. This range has a bottom, potential bottom, at today’s low and a top near the 2020 high. In the near term I would expect to see prices continue to bob along support, assuming it holds, until the bulls can get their feet back under them. If price action doesn’t bounce back from the current levels it will negate the price reversal that happened during November and December 2020 and may lead to a much deeper decline.

Longer term, I am still the same old perpetual bull. The halvening is still coming up and I think that will underpin price action if not drive a new bull market. The halvening will come in about two months from this posting and the hash rate continues to rise which tells me the miners are looking for higher BTC prices.

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Category Archives: bcoin

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ArcBlock CEO: Why Blockchain’s ‘Just Not There Yet’

In his mission to build the “Amazon Web Services of the blockchain age,” ArcBlock CEO Robert Mao outlines a problem that finds blockchain in a technological purgatory.

The Trouble with Blockchain

ArcBlock CEO Robert believes blockchain’s utopian promises to disrupt, decentralize, and democratize are by no means hot air.

The veteran software engineer and former Microsoft researcher connects the dots between the tumultuous rise of blockchain and the unfurling of the internet; it has been a decades-long plight turning rudimentary application into a technological paradigm.

Just as the internet moved from methodology (e.g. email), to technology (TCP/IP), to an all-encompassing platform (the world wide web), Mao explained, blockchain has been destined to carve out the same path.

Bitcoin, emerging as a trustless, peer-to-peer cash system piqued the world’s interest in blockchain and gave it recognition as a groundbreaking technology. If Mao’s blueprints are indeed correct, the meaningful and mass adoption of blockchain cannot arise until the third and final stage of development. Or, as he put it:

“When the platform is ready, that’s the prime-time for the whole thing.”

Mao suggests that current technology is in an interim phase where developers must face a sobering truth:

“Even today, as a developer, you get excited with blockchain, you really want to build something and then you will realize what the reality is. One part is the vision, the other part is the reality. The reality is, building blockchain is really tough.”

Expounding on this, he noted many hurdles awaited any blockchain developer wishing to build an application—right from the initial challenge of choosing which blockchain to build on, to then mastering the chosen blockchain’s scripting language, protocol, and data structure, as well as other core operational nuances.

“Each of those blockchain technologies, they have different protocols, different data structures, different libraries and even different languages. So basically if you want to switch from Ethereum to Tendermint, basically everything has to be changed. This is definitely not a smart move for any team.”

One Platform to Bind Them

Originally starting out to build a group knowledge network for software development, ArcBlock chanced upon blockchain when searching for a means of incentivizing the sharing of knowledge.

And where cryptocurrency may have jumped out as an obvious incentive model, the team were paralyzed once again when attempting to select a suitable blockchain. Going out and talking to the wider development community, however, Mao and his Seattle-based firm soon realized they were far from alone in tackling such a project.

ArcBlock, having in 2020 changed direction in hopes of solving this problem, sought to lower the barrier to entry for dApp developers, emerging as one of the platforms Mao believes to be a fundamental prerequisite to true growth in the nascent blockchain sector.

Through the platform’s functional ‘Open Chain Access Protocol’ and ‘Blocklet’ microservice framework, developers do not have to commit to any one blockchain; instead, they need to work within an open-source, technology-agnostic environment where dApps can be built and deployed on any blockchain and/or cloud for serverless computing.

The platform’s more “ambitious” aims, Mao admitted, include a decentralized messaging service for a dApp’s real-time communication across devices, and a token economy service permitting projects to build native crypto-assets that function on different blockchains.

Blockchain: “Just Not Ready Yet,” But Ripe for a Boom

As developers “in their DNA,” they are focused purely on the technology, Mao said, the ArcBlock team are not disheartened by the cryptocurrency market’s well-noted, and widely scorned, correction.

The immediate concern, however, is the sheer decline in the interest of developers, which has simultaneously plummeted with the price of cryptocurrency.

“When the [blockchain] technology’s not the prime-time yet, no matter how excited you get, you eventually get burned out. So the whole market going down is actually just a burn-out in the last bubble moments.”

Blockchain, in Mao’s view, is not so much a struggling technology, but a crop waiting for harvest—one that will bear fruit, just as the internet did—once its underlying technology is packaged into easily digestible platforms.

“This is exactly like the internet in the year 2000. When we look back to the year 2000, we think OK, that time it wasn’t a bubble at all. It wasn’t something empty, it wasn’t something fake, it just wasn’t there yet. I think right now blockchain is just the same.”

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Dogecoin Price Decline Forces Market Cap Below $260m

Even though it would appear Dogecoin is a more stable hedge than most other cryptocurrencies right now, that is not always the case whatsoever. As today’s market momentum shows, even the DOGE value can drop by over 6% in a matter of hours. For the time being, the main question is whether or not the value will remain above $0.002 or dip below this threshold in the coming days.

Dogecoin Price Loses Stability

It is not uncommon for cryptocurrencies to lose any sense of price stability during an extended bear market. This is especially true for altcoins, and Dogecoin is no exception in this regard. In fact, its perceived level of stability has lasted a lot longer than people originally expected, which should be considered to be somewhat of a victory in its own right now. It also remains one of the more active cryptocurrency networks to date, which is always something to keep in mind.

In the past 24 hours, there hasn’t been any positive Dogecoin price momentum to speak of. Whereas the altcoin successfully gained on Bitcoin in the previous week, that streak has now been broken again. A net 3.2% loss in BTC value, combined with Bitcoin’s ongoing value decline, result in a net 6.5% USD loss for Dogecoin itself. That further shows things will not be improving for the altcoins over the coming days, although there is always a chance the markets turn around on a dime.

On social media, it seems a few interesting Dogecoin-related discussions are taking place right now. The main discussion on Reddit is whether or not anything can allow the Dogecoin value to rise in the coming weeks and months. More specifically, there hasn’t been any real bullish trend in the cryptocurrency world throughout most of 2020, and it seems community efforts will need to be pursued first and foremost.

WHAT EVENTS / CATYLISTS WILL DRIVE VALUE OF DOGE UP via /r/dogecoin https://t.co/KFWPl1Watr hot in #reddit #dogecoin #doge #crypto much wow!

— Domain Address Info (@DomainAddress4u) December 5, 2020

There are also a few people who are seemingly comparing Dogecoin to Ravencoin. That particular altcoin has seen some bullish price momentum on the same level as Dogecoin throughout the second half of 2020, yet fails to hold on to these gains in the process. With a growing focus on security tokens moving forward, it is only normal a “Dogecoin version” of such tokens will show up eventually. Whether or not that will be Ravencoin, remains to be determined.

As is always the case where Dogecoin is concerned, arbitrage opportunities are never too far off. In fact, it would appear things are looking very promising in this regard, as some quick profits can be scored by exploring these price gaps between different exchanges. For today’s options, a nice 2.5% profit can be pocketed by simply moving funds around a bit. It is by far the easiest way of making money in the cryptocurrency industry right now.

Assuming the Dogecoin price trend doesn’t reverse course anytime soon, there is a very real chance the market cap will drop below $250m in the coming days. That is in stark contrast to the valuation of over $700m just a few weeks ago, when things looked a lot more promising. When even Dogecoin can’t escape the negative market pressure, one knows things are not heading in the right direction whatsoever. For now, the future direction remains unclear, but it is unlikely positive momentum will materialize out of the blue.

Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency.

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A bitcoin-replica launched with an aim to discourage miners from forming pools and gain a monopoly over its network has been compromised. Mark Nesbitt, a security expert, revealed that the blockchain of Vertcoin, a peer-to-peer PoW cryptocurrency, is under a 51% attack. The Coinbase engineer found that some anonymous cybercriminals rented a large amount of ASIC

Chatter Report: Pompliano Praises Bitcoin Performance, Antonopoulos Says Death Spiral ‘Unlikely’

In today’s Chatter Report, we explore the different ways crypto influencers have been responding to the low prices of 2020. Some are unfazed like Anthony Pompliano, who still believes that bitcoin is the best performing asset. Others are reassuring like Andreas Antonopoulos, who has been busy addressing concerns about bitcoin being in a death spiral. The rest are pensive like James McAvity, who has been theorizing about which miners are holding their coins rather than selling them.

Bitcoin is the ‘Best Performing Asset’

Anthony Pompliano, founder of Morgan Creek Digital, sparked a fervent discussion on Twitter when he noted that the S&P had almost lost $755 billion in a single day. Pompliano was putting losses in perspective for cryptocurrency investors, as public equity investors lost more money in a single day than crypto investors did for all of 2020.

Crypto Twitter quickly fired back, as former Wall Street trader John Todaro pointed out the unfair nature of comparing two markets that have different capitalizations. Todaro expanded more on the misleading nature of Pompliano’s tweet, arguing that they should be comparing percentage gains/losses and not raw figures.

Yeah but different mkt sizes obviously. So when the S&P 500 rises 3% in a day, you’ll say us stocks made more money than all of crypto combined?

Another commenter, Alamentarius, argued that it was unfair to compare the “equity value of every public company” with a “speculative project that turned into a bubble.”

Bitcoin outperformed the S&P 500 for last 10 years, 5 years, and last 2 years. It will outperform over next 10 too.

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It’s irresponsible for investors to have zero exposure to the best performing asset.

Unfazed, Pompliano defended his initial claims, citing the historical financial performance of bitcoin compared to the S&P. He then boldly described bitcoin as the “best performing asset” on the market.

Andreas Antonopoulos on Bitcoin Death Spirals

With bitcoin prices falling day by day, the ecosystem has been expressing concern about a potential death spiral. To address these concerns, “Mastering Bitcoin” author Andreas Antonopoulos put out a Youtube video explaining death spirals and why he believes they are unlikely scenarios.

Antonopoulos explained that death spirals are triggered by a combination of economic factors crashing the bitcoin price and/or governments shutting down or outlawing mining. This drives down the price of bitcoin, so miners start turning off their mining equipment. The result is a severe drop in mining hash power, or 50 percent in this hypothetical scenario. As mining power falls by half, blocks start to come up every 20 minutes instead of every 10 minutes.

Since bitcoin mining difficulty adjustments are calculated every 2,016 blocks, it now takes four weeks for the difficulty to change instead of two weeks. This slows the network down further, which could lead miners to decide that they aren’t making enough profit. As a result, more and more miners would then decide to shut off their equipment, leading to a vicious downward cycle known as the bitcoin “death spiral.”

After explaining the death spiral, Antonopoulos claimed it is unlikely to happen because miners have a much “long[er]-term perspective.” Since investing in mining equipment requires a huge up-front cost and electricity is purchased on long-term plans, most miners won’t stop mining, as they will assume that profitability will return within a few months.

Do Miners Hold or Sell Their Bitcoin?

Other bitcoiners also have been theorizing about what miners might do with their bitcoin in an extended bear market. As commenter James McAvity noted, the circumstances surrounding each particular mining operation will determine whether miners sell their bitcoins or hold on to them.

– Miners who hedged with futures & options when prices were higher

– Smaller ops that have free power(dorms, home heaters, solar home operations)

– Money launderers trying to clean cash into new coins

– High inflation areas like Venezuela etc.

McAvity explained that miners that can generate ancillary free power and businesses that are struggling to survive are the ones that are more likely to sell their bitcoins immediately after mining them. By contrast, miners that hold their bitcoins are those that have hedged with futures and options when prices were higher. They could also be smaller operations that have free power or they could be money launderers trying to clean cash by turning it into bitcoin. Alternatively, they could be from high-inflation countries like Venezuela.

What do you think of bitcoin’s performance in 2020? Is it still the best performing asset? What about the likelihood of a death spiral? Do you think miners sell their bitcoins immediately or keep them? Let us know in the comments below.

Images courtesy of Shutterstock.

Keep track of the bitcoin exchange rate in real-time

How CryptoXchange’s Profit Sharing Initiative Can Buffer Crypto Market Dips

We live in an increasingly fast-paced technological age, with opportunities being created and passing us by before we’ve had a chance to get a hold of them. We can see this especially clearly in the crypto sphere, where honest investors are seeking cost effective and efficient ways to buy, store and trade. With plans to host over 100 cryptocurrencies, extend multi-language support to all investors, and involve all users in a profit sharing model, CryptoXchange is looking to not only provide the support that is so often lacking in other exchanges but allow investors to be part of the long-term success of the company.

The team at CryptoXchange saw that usability was the main problem for crypto enthusiasts. With Bitcoin volatility concern, more than ever users are looking to diversify their portfolio, with a bigger share of the top 100 cryptocurrencies. Acquiring currencies beyond Bitcoin and Ethereum can indeed be a daunting experience, even for experienced crypto investors. Multiple exchanges need to be accessed, each with their own wallets, passwords and configurations. Trading fees aside, the KYC process can be very slow, with support for those not proficient in English difficult to access.

In response to these problems, CryptoXchange was created, never once losing sight of the user. CryptoXchange is a modular trading platform, that aims to incorporate over 100 cryptocurrencies. It can be configured for beginners, who can start trading with a more simplified panel, and professionals, who can take advantage of CryptoXchange’s advanced analytic tools. On receipt of the correct documents, bank-level KYC is assured within a day, and 24/7 multi-language support is available in over 15 languages. With trading fees at a low 0.2%, users can be satisfied in knowing they need only one exchange to buy, store and trade cryptocurrencies, without having fees significantly deplete any profits made. Furthermore, to make the movement of crypto even easier for users, CryptoXchange plan to introduce a debit card, which will allow users to pay with crypto anywhere in the world.

The most exciting innovation that CryptoXchange has unveiled thus far is its profit sharing buyback model. Unlike other exchanges, users can receive up to 30% profit share, that is paid out in weekly dividends. This profit sharing model works through the XCHGE utility token and EARN coin, that operate on CryptoXchange;

  1. The XCHGE token is awarded for participation in the CryptoXchange ICO and will also go public on other exchanges.
  2. The EARN coin, like gas, is the form of payment taken for any processes that occur within the platform. EARN coins can be obtained through investing in the CryptoXchange ICO, investing in part of a Masternode, or as a reward for holding XCHGE tokens in your CryptoXchange wallet.

Profits earned through Masternode processes within the exchange will be used to buy back the EARN coin, not only stabilizing the exchange but increasing scarcity and raising the value of EARN. Investors will see profits through the increased price of EARN, and 30% of the buyback profit will be shared through weekly dividends.

For investors, this means that simply holding tokens guarantees some form of return, and at the same time encouraging investment in the future of CryptoXchange, as users will be less inclined to sell their tokens. From a profit-making perspective, these dividends can add to any gain in a bull market, and offset any potential loss in a bear market.

Founder, Roni Baibochaev has engaged a suite of professionals from around the world, including well-respected advisor Marc Schippke , to make CryptoXchange a reality. In delivering usability and a profitable buyback model, it will no doubt attract many investors and crypto enthusiasts of all stripes.

This is a sponsored press release and does not necessarily reflect the opinions or views held by any employees of NullTX. This is not investment, trading, or gambling advice. Always conduct your own independent research.

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