Bitcoin, Ethereum, Bitcoin Cash, Ripple, IOTA, Litecoin, NEM, Cardano – Price Analysis, Jan. 23

Bitcoin, Ethereum, Bitcoin Cash, Ripple, IOTA, Litecoin, NEM, Cardano - Price Analysis, Jan. 23

Bitcoin, Ethereum, Bitcoin Cash, Ripple, IOTA, Litecoin, NEM, Cardano – Price Analysis, Jan. 23

When the markets are bullish, a lot of traders only focus on high target levels. This leads to a left out feeling among the ones who have missed out on the rally, and they rush to buy at elevated levels. This results in a huge loss of capital to the uninformed traders.

The opposite works when the market falls. One starts to hear bearish voices with the analysts forecasting apocalypse and novice traders get scared and dump their holdings. They buy when they should be selling and sell when they should be buying.

Hence, it is always better to take these forecasts with a pinch of salt. We, therefore, avoid giving unrealistic target levels to our readers and try to keep them on the right side of the trade.

BTC/USD

In our previous analysis, we had predicted that Bitcoin would turn down from the $13,202 levels and that is what happened. The cryptocurrency topped out at $12,988.89 on Jan. 20. It is currently retesting the critical support zone of $10,704.99 to $9,300.

For the past two days, the bulls are defending the $10,000 levels. If this level holds, we may see another attempt to pull back. The trend will turn positive in the short-term only when the BTC/USD pair breaks out of the down trendline 1.

This trade should be taken with only 50 percent allocation because on the way up, Bitcoin will face resistance at the neckline of the head and shoulders pattern and at the down trendline 2.

On the downside, a break of $10,000 is likely to hurt sentiment, resulting in a decline to $8,000 levels.

ETH/USD

We had forecast a rally to $1174.36, which is the 61.8 percent Fibonacci retracement level of the recent fall from $1424 to $770 and Ethereum topped out at $1,160 on Jan 20.

The price has returned to the trendline support, which has offered strong support since Dec. 10.

The bulls have been attempting to hold the trendline support for the past two days. We believe the support zone between $900 and $845 is likely to be defended strongly by the bulls. The ETH/USD pair will indicate a change in trend only after it breaks out of the down trendline.

If the above-mentioned support zone breaks, the decline can extend to $770 levels. We don’t find any buy setups; hence, we are not suggesting any trade on it.

BCH/USD

In our previous analysis, we had anticipated Bitcoin Cash to return from the $2,072 levels, and it topped out at $2,112.11 on Jan. 20.

The moving average has completed a bearish crossover, and the price is quoting below the 20-day EMA and the 50-day SMA; which is advantageous to bears. If the retest of the recent lows at $1364.96 fails, a fall to $1194 is likely.

If the bulls defend the $1364.96 levels, the BCH/USD pair is likely to become range-bound for a few days.

As the trend is still down, we are not suggesting any trade on it.

XRP/USD

Ripple returned from the 20-day EMA on Jan. 18. It currently has support at the $0.87 levels.

We believe that the XRP/USD pair will become range bound for the next few days between the support of $0.87 and the resistance of $1.74.

We shall wait for a breakout above the overhead resistance to initiate any long positions. On the downside, though we expect the $0.87 to hold, it might be reasonable to wait for a bounce before buying. As the trading inside the range is likely to be volatile, we shall only try to buy closer to the supports.

IOTA/USD

We had mentioned that $3.032 is the critical level for IOTA and a failure to break out above it will attract another bout of selling and that is what happened.

The cryptocurrency is currently attempting to hold the Jan. 16 low of $1.923. If the bears succeed in breaking down this support, a fall to the lows of Dec. 22 of $1.10 is likely.

If the bulls hold the $1.923 levels, the IOTA/USD pair is likely to remain range bound for the next few days. It will become positive only if the price breaks out of the down trendline of the descending triangle.

LTC/USD

Litecoin broke above $205, but could not reach $225, as we had expected. It turned down from $214.48 levels on Jan. 20.

The bears are trying to break down of the critical support level of $175.19. If successful, a fall to $140 is likely.

In the short-term, the first sign of bullishness will be when the LTC/USD pair breaks out of $215. Currently, we don’t find any trade set up on it.

XEM/USD

On Jan. 20 and Jan. 21, the bulls could not sustain above the downtrend line. As a result, NEM has resumed its decline.

Currently, the bulls are attempting to hold the $0.86 level. If this breaks, a fall to the Jan. 16 lows of $0.551 is likely.

On the upside, the down trendline is likely to offer strong resistance. The first signs of bullishness will be when price breaks out of the $1.21 levels.

We don’t find any trade setups on the XEM/USD pair.

ADA/BTC

Cardano could not break out of the 0.00006 levels. It is now likely to gradually fall to the support levels of 0.000047, and after that to 0.00004070.

For the next few days, we expect the ADA/BTC pair to remain range bound between 0.00004070 on the downside and 0.00006915 on the upside.

We shall wait for the pair to bounce from one of the support levels before initiating any trade. At the present levels, we don’t find any bullish setups on it.

Author: Rakesh Upadhyay

Posted By David Ogden Entrepreneur
David ogden Cryptocurrency Entrepreneur

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Bitcoin hackers have stolen âÂ£285million’ from cryptocurrency investors causing âCHAOS’

Bitcoin hackers have stolen ‘£285million’ from cryptocurrency investors causing ‘CHAOS'

BITCOIN hackers have stolen an estimated £285million ($400million) from cryptocurrency investors that have caused “information chaos” as they utilise a fundraising mechanism for devious means, a recent report revealed.

New data has shown that hackers have stolen approximately 10 per cent of funds raised through initial coin offerings (ICOs) the are used to finance new projects, according to a report from Ernst and Young.

It read: “Hackers are attracted by the rush, absence of a centralised authority, blockchain transaction irreversibility, and information chaos.

“Project founders focus on attracting investors and security is often not prioritised. Hackers successfully take advantage – the more hyped and large-scale the ICO, the more attractive it is for attacks.”

Initial coin offerings are used to exchange crypto tokens for bitcoin or ether to finance a new project – they are similar to Initial Public Offerings (IPO) where investors purchase shares of a company.

The fundraising method has been utilised by those with ideas that fear they could be overlooked if traditional venture capitalists were utilised.

An estimated £2.6billion ($3.7billion) has been raised from ICOs between 2015 to 2017 – this accumulated from over 372 offerings from around the world.

Ernst and Young compiled the data from ICO trackers, interviews, blockchain network scanners and exchange reports.

ICOs have long been a worry for regulators with Securities and Exchange Commission (SEC) Chairman Jay Clayton stating that they offer “substantially less investor protection”.

The susceptible nature of the offerings were exacerbated last year when the Securities and Exchange Commission filed a charge against an ICO scam that promised investors a 13-fold profit in less than a month.

The scam reportedly raised £10.7million ($15million) from thousands of investors.

A criminal complaint was filed to Brooklyn federal court – it was revealed that Dominic Lacroix sold digital tokens known as “PlexCoins” to investors.

The scam stated that its purpose was “to increase access to cryptocurrency services” around the world.

New data has shown that hackers have stolen approximately 10 per cent of funds raised through ICOs

A new division of the SEC, dubbed the Cyber Unit, declared that investors were caught off guard by the coin’s “false promises”.

Robert Cohen, the Chief of the Cyber Unit, declared: “This first Cyber Unit case hits all of the characteristics of a full-fledged cyber scam and is exactly the kind of misconduct the unit will be pursuing.

“We acted quickly to protect retail investors from this initial coin offering’s false promises.”

Author JOSEPH CAREY UPDATED: 03:08, Tue, Jan 23, 2018

Posted by David Ogden Entrepreneur
David Ogden Cryptocurrency Entrepreneur

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The Bull And The Bear Case For Bitcoin, Ethereum, Ripple, Litecoin, And Other Cryptocurrencies

There have been better days and worse days for Bitcoin, Ethereum, Ripple, Litecoin, and other cryptocurrencies.

The better days were back in November and December when a “virtuous” rotation helped spread the rally from Bitcoin to other cryptocurrencies. This means that funds cashed out from one currency were invested in other currencies.

That’s a bullish "technical" sign for cryptocurrencies, as it keeps the momentum for the sector alive.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment. Disclosure: I don't own any cryptocoins or tokens.]

The worse days were early this week when the sell-off in major cryptocurrencies spread across the entire sector. This means that money cashed out from one cryptocurrency didn’t flow to other cryptocurrencies, but moved to cash or to other investments.

And that’s a bearish sign for cryptocurrencies, as it undermines the momentum for the sector.

Apparently, momentum is changing very fast in cryptocurrencies, much faster than in other asset classes.

That’s why technical analysis alone may not be a reliable indicator for trying to guess the direction of the cryptocurrency markets.

What about fundamental analysis?

For the vast majority of cryptocurrencies there are no fundamentals to talk about, other than a website with a message that promises to make capitalism better.

For major cryptocurrencies like Bitcoin, there’s some information to make both a bullish and a bearish case.

The bullish case is about the advantages Bitcoin has a “headless” currency. "Increasingly widely accepted as a means of payment with no bank intermediation and absolutely no fees, Bitcoin has some of the attributes of a headless currency,” says Eric Pichet, a KEDGE professor.

Then there’s the rarity of the cryptocurrency and the low ownership rate, which explain its price spike, and the potential for further gains. “The relative rarity of the virtual product explains its rise in large part because only 0.01% of the world population own any,” adds Pichet. “Therefore, one can imagine the effect on its trading price if the primary cause of speculative bubbles, namely FOMO (Fear Of Missing Out) were to spread to a mere 1% of the world population, or 100 times more holders.”

The bearish scenario centers on two major threats which cryptocurrencies face. One of them is an intrusion in the blockchain system and the circulation of fake coins. Another threat is a concerted effort by governments around the world to ban their use.

As Eric Pichet concludes, "Under these conditions, what type of needles would burst the bubble? The first would be the heist of the century: an intrusion in the blockchain system that created a deluge of fake bitcoins. The second would be the adoption of a common position by all national governments and central banks to prohibit this means of payment in the name of fighting fraud, for example.”

Author Panos Mourdoukoutas

Posted By David Ogden Entrepreneur
David ogden Cryptocurrency Entrepreneur

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Bitcoin tax loophole could save cryptocurrency investors millions as it leaves HMRC short

MILLIONS of pounds could be lost by the Treasury after a tax loophole was revealed and cryptocurrency investors are expected to take full advantage of the gap, experts warn.

The massive loophole allows investors, who could have made millions when bitcoin hit its $19,343 (£14,000) high in December, to declare their returns as gambling winnings.

Winnings from gambling are generally not considered investment returns and so avoid taxation, leaving HMRC with the potential of a huge blackhole in its returns following a year of cryptocurrency boom.

An HMRC spokesman said: “We don’t normally tax betting and gambling because it is usually not classed as trading income.

“But there may be circumstances where factors such as the degree of skill and organisation would make the activity more likely to be taxable as trading income. Each case will depend on its own facts.”

The approach of the HMRC to cryptocurrency returns has been branded outdated by experts.

The rules are expected to confuse amateur investors as they leave it unclear who should be characterised as a gambler and who should fall into the taxable bracket of investor, barrister Etienne Wong claimed.

The current guidelines have not been updated since 2014 when bitcoin was worth less than £500, today a single coin will cost a trader £9,125.

According to the three year old guidelines cryptocurrencies users who buy and sell coins in a similar way to an investment are required to pay capital gains tax.

If someone is deemed to fit this description they will be forced to pay 18 per cent tax on any money over £11,300 if they pay basic-rate tax and 28 per cent if they are a high rate taxpayer.

crypto tax

Robert Langston of Saffery Champness has told cryptocurrency users to declare themselves as investors leaving them more likely to pay tax.

He said: "It is difficult to see how the profits on mainstream cryptocurrencies such as Bitcoin could be seen as gambling profits".

"There may conceivably be some cryptocurrencies in which the markets are random, and therefore the profits could be treated as gambling."

Mr Langston has claimed that even if use is deemed gambling because investors are gaining an asset and not cash it remains taxable.

Revelations about the loophole come as investors have been warned that regulation of cybercurrency is on its way.

Crypto prices could be under threat after two of Europe’s most powerful leaders have joined efforts to regulate the speculative cryptocurrency.

German Chancellor Angela Merkel met French President Emmanuel Macron to discuss regulating bitcoin after it was suggested that the token is “a risk for financial stability”.

Bitcoin prices suffered a crushing blow this week after South Korean regulators threatened to ban crypto trading, plummeting $83billion (£59.8billion) in value between Monday and Thursday alone.

Bitcoin investors now fear further regulation in Europe could adversely impact prices, which were trading at more than $12,700 (£9,163.43) at 11am GMT on January 20.

Yves Mersch, member of the Executive Board of the European Central Bank, sparked concern last December after suggesting that bitcoin could become a genuine threat to finance.

He said: “Second, there are now banks which hold positions in bitcoin. It is a matter for the supervisors to judge how big the risks are.

“Third, and what concerns me most, is when financial market infrastructures such as stock exchanges enter this business. That poses a major threat to financial stability.”

But investors are now fearful that increased regulation could damage or even kill the bitcoin bubble.

By TARYN TARRANT-CORNISH UPDATED: 01:20, Sun, Jan 21, 2018

David Ogden Entrepreneur

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Price Analysis, Jan. 19 – Bitcoin, Ethereum, Bitcoin Cash, Ripple, IOTA, Litecoin, NEM, Cardano

Price Analysis, Jan. 19 - Bitcoin, Ethereum, Bitcoin Cash, Ripple, IOTA, Litecoin, NEM, Cardano

Price Analysis, Jan. 19 – Bitcoin, Ethereum, Bitcoin Cash, Ripple, IOTA, Litecoin, NEM, Cardano

After a sharp fall, the aggressive bulls jump in and buy at lower levels. This strategy has resulted in huge gains for the cryptocurrency traders in 2017. However, unlike previous occasions, we have not seen a sharp rise this time. This shows that the traders are not confident of a huge rally from the current prices.

In the next few days, we expect a range bound action in most of the top cryptocurrencies.

BTC/USD

We had expected a pullback from the $10,704.99 levels. But Bitcoin overshot on the downside and fell to $9,300 levels.

Currently, the bulls are attempting a reversal, which is likely to carry the cryptocurrency to the neckline of the head and shoulders pattern at $13,202 levels.

We expect another round of selling from those levels, which is likely to sink the BTC/USD pair back to the support zone of $10,704.99 to $9,300. If this support zone breaks, a fall below $8,000 is likely.

On the other hand, if the bulls succeed in holding the support zone, it will lead to a start of a new uptrend. Nimble-footed traders can play the rise, but others should wait for more clarity to develop.

ETH/USD

We expected the support zone between the trendline and $940 to hold. On Jan. 17, Ethereum broke below the trendline and fell to a low of $770.

The bulls bought the dip aggressively, which has resulted in a pullback that carried the cryptocurrency towards the 50 percent Fibonacci retracement levels of the recent fall from $1424 to $770.

For the past three days, the ETH/USD pair has been struggling to cross above $1097. If the price breaks out of the $1100 levels, we expect a move to $1174.36 and $1284.28 levels. As the stop loss is $930, which doesn’t offer a good risk to reward ratio, we are not suggesting any trade on it.

BCH/USD

We expected the $1733 levels to hold. Still, the bears easily broke through it and Bitcoin Cash fell to a low of $1364.96 on Jan. 18.

The current increase is likely to face resistance at the $2072 levels, which was the support of the range previously. We shall get a confirmation of a bottom during the next downturn. If $1364.96 breaks, a fall to $1194 is likely.

Our bearish view will be invalidated if the BCH/USD pair sustains above $2072 for a day.

XRP/USD

We had forecast a fall to 61.8 percent Fibonacci retracement levels of the latest rally, however, Ripple fell close to the 78.6 percent retracement levels, which coincided with the lower end of the descending channel.

The cryptocurrency has broken out of the descending channel, which suggests that the downtrend is over. However, the present increase is facing resistance at the 20-day EMA, above which a move to $2.20 is likely. At that price, the XRP/USD pair will face resistance from the trendline that had previously acted as a strong support.

However, if the cryptocurrency fails to break above the 20-day EMA, the bears will attempt to resume the downtrend. Support lies at $0.87.

We expect a few days of range bound trading.

IOTA/USD

IOTA broke down of the bearish descending triangle pattern on January 16, which gives it a pattern target of $1.10.

However, the cryptocurrency took support at $1.93 levels on Jan. 17.

Currently, the IOTA/USD pair is retesting the breakout levels of $3.032. If the bulls breakout of the overhead resistance and the downtrend line, our bearish view will be invalidated.

However, if the bears defend the $3.032 levels, we are likely to see another bout of selling, which will retest the lows.

We don’t find any clear pattern; hence, we are not recommending any trade.

LTC/USD

We had forecast a likely fall to $100 if Litecoin broke below $175.19. It rose from a low of $140.00 on Jan. 17.

For two days in a row, Jan. 16 and Jan. 17, the bears broke down below $175.19 but were unsuccessful in holding prices down.

If the bulls breakout of $205, a move to $225 is likely, where both the moving averages converge. This level is likely to act as a resistance.

We don’t find any reasonable trades on LTC/USD pair.

XEM/USD

NEM fell close to the 78.6 percent retracement levels on Jan. 16 and Jan. 17. Thereafter, the bulls have commenced a pullback, which is likely to face a strong resistance at the downward trendline.

If the price moves above the downtrend line, an increase to $1.45 can’t be ruled out.

The next fall towards the recent lows of $0.55134 will confirm whether the bottom is in place or is there further to go.

Until then, we shall remain on the sidelines on the XEM/USD pair.

ADA/BTC

Cardano broke below the trendline support on Jan. 16 and Jan. 17, however, the bulls defended the support and pushed prices higher quickly.

The ADA/BTC pair broke out of the downtrend line yesterday, Jan. 18, however, it could not pick up momentum. It is struggling to rally above 0.00006. Once bulls breakout of 0.00006, a move to 0.00007 and thereafter to the 0.00008 levels is likely.

The cryptocurrency pair will become negative below 0.00004730.

Author: Rakesh Upadhyay

Posted by David Ogden Entrepreneur

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Cryptocurrency prices edge higher with ripple bouncing back 65% after âsevere’ sell-off

Cryptocurrency prices edge higher with ripple bouncing back 65% after âsevere' sell-off

Cryptocurrency prices edge higher with ripple bouncing back 65% after ‘severe’ sell-off

Bitcoin and ethereum — the first and second largest virtual currencies by market value — appeared to recover after Wednesday's lows.
Experts told CNBC earlier this week that investors had been "spooked" by news of regulatory crackdowns from both South Korea and China.
Regulators have expressed concerns over digital assets due to their extremely volatile nature and worries that they could be used for illicit activity.

Major digital currencies edged higher on Thursday, after a two-day sell-off saw the world's biggest cryptocurrency bitcoin lose more than 50 percent from its December high.

Bitcoin and ethereum — the first and second largest virtual currencies by market value — appeared to recover after Wednesday's lows.

Bitcoin fell as low as $9,199.59 on Wednesday morning, but bounced back to $11,702.74 as of Thursday at 12:00 p.m. ET, according to CoinDesk, which tracks prices from cryptocurrency exchanges including Bitstamp, Coinbase, itBit and Bitfinex. It was up 5 percent in the last 24 hours. The red-hot digital asset also broke the $12,000 level, hitting $12,045.10 at about 10:14 a.m.

Ethereum on the other hand dived below the $800 mark to a three-week low of $780.92 Wednesday, but lifted to $1,072.57 the following day. It was more than 5 percent higher in the last 24 hours.

Ripple's XRP, which is also known as ripple, surged 65 percent to $1.64 a coin, according to data from CoinMarketCap. The digital currency — which is controversial among crypto enthusiasts due the firm behind it being backed by big banks — fell as low as 90 cents the previous day.

Regulatory concerns

Experts told CNBC earlier this week that investors had been "spooked" by news of regulatory crackdowns from both South Korea and China.

South Korea — one of the largest markets for cryptocurrencies — has reportedly been considering the shutdown of trading through cryptocurrency exchanges. On Thursday, the country's policymakers said they were considering closing all domestic virtual currency exchanges, echoing a move last year from Chinese regulators.

China, separately, is reported to be deepening its clampdown of its digital currency market. According to reports from Bloomberg and Reuters, the country is planning to ban the centralized trading of digital currencies.

"Trade volumes were very noisy yesterday as the bulls and bears fought it out and some sort of calm has appeared on the markets after what has been a severe correction," Charles Hayter, CEO of digital currency comparison site CryptoCompare, told CNBC in an email Thursday.

"New has a lot to play with this," Hayter said, adding, "this market is now big and governments are sensing revenue for the coffers as well as a threat in some degrees. This will catalyze regulation where regimes who legislate severely will balkanise themselves to the industry."

Hayter said that regulation of cryptocurrencies "will be good in the long run," but warned that "unnecessary hoops and bureaucracy" could inhibit the industry's potential.

Regulators have expressed concerns over digital assets due to their extremely volatile nature and worries that they could be used for illicit activity.

Mati Greenspan, senior market analyst at eToro, said: "Now that the reasons for the recent sell-off are more clear to everyone and the slightly sour regulatory concerns have been priced in and the Asian premiums are evening out, traders will most likely start focusing on the technicals."

Greenspan told CNBC Tuesday that South Korean and Japanese investors often pay a premium of "20 percent or more per coin."

Nolan Bauerle, director of research at CoinDesk, said that the sell-off was "a feature of the global, liquid cryptocurrency trading environment."
"When the price of bitcoin drops, there is a pattern of traders that move to take different positions, either in another cryptocurrency or in fiat," he told CNBC.

"These large drops, usually between the 25-40 percent range, generally find a bottom that is a consolidation of a previous all time high. When this bottom is found, the pattern continues with demand causing a new upward bounce."

Disclaimer: This story has been amended to reflect the fact that bitcoin lost more than 50 percent from its December high.

Author Ryan Browne Updated 10 Hours Ago

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David Ogden Cryptocurrency Entrepreneur

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Old hands in South Korea bitcoin market unfazed by threats of ban

Veterans of the bitcoin market say restrictions would be relatively easy to circumvent
Investors in the cryptocurrency market are used to wild moves in the space
Expert say a ban might discourage new participants, but anonymity makes it easy for those already in the markets to move digital assets around the world

Threats of a potential cryptocurrency trading ban in South Korea have scared many investors away, but some veterans of the young market are defiant, saying restrictions would be relatively easy to circumvent.

Although the cryptocurrency market lost about $200 billion this week, or a third of its value, these investors – known within the community as "hodlers" after a misspelled meme that went viral during Bitcoin's early days – are used to rollercoaster rides.

China's shutdown of local exchanges in September, for instance, caused a 50 percent drop in Bitcoin, but prices rebounded eight-fold to almost $20,000. Currently valued around $10,000, Bitcoin could be poised for a similar whirlwind this time around, some say.

"In case the government shuts down all local exchanges,investors can always go abroad and open an account there," said a South Korean student who declined to be named because of legal risks. "I can ask my friends who study abroad or travel there myself. It's not that big of a problem."

Cryptocurrency experts say the student probably has good reason to be relaxed. A ban could discourage new market entrants, but the anonymity of buyers and sellers and the ability to move digital assets anywhere in the world with a click makes it hard to impose restrictions on existing participants without a global consensus.

Places like Singapore and Hong Kong maintain light regulations, while neighboring Japan has encouraged a vast ecosystem of companies and investors around digital assets by pioneering a set of rules for the industry. Germany has said national restrictions may be useless.

VPNs, offline wallets

According to industry experts, the first step to circumventing a ban is hiding IP addresses from authorities via virtual private networks (VPNs).

Traders can then continue business as usual. Decentralized exchanges, such as Shapeshift or Stellar Dex, do not require identification and can be accessed from anywhere.

Cryptocurrency wallets such as Exodus and Jaxx are linked to such exchanges, so trading and storing the assets can still be anonymous. Authorities in countries with strong legal protections may need a warrant to check computers or smartphones for proof of such activity.

VPNs, offline wallets

According to industry experts, the first step to circumventing a ban is hiding IP addresses from authorities via virtual private networks (VPNs).

Traders can then continue business as usual. Decentralized exchanges, such as Shapeshift or Stellar Dex, do not require identification and can be accessed from anywhere.

Even then, unless caught in the act, the holder can claim no trading has taken place since the legislation was approved and has forgotten the password for the wallet.

Some decentralized exchanges offer derivative products that allow betting on the price of a cryptocurrency against a fiat currency, including the Korean won and Chinese yuan. But cashing out in fiat is not possible on such exchanges.

An option in that case is to trade all cryptocurrencies for a top one such as Bitcoin, Ethereum or Litecoin, and sell it at one the 2,064 crypto ATMs in 61 countries, although the transaction fees can exceed 10 percent. If need be, coins can be stored on offline "wallets" the size of a USB stick.

Alternatively, holders can open bank accounts in countries that have not banned Bitcoin, then join a local centralized exchange where they can trade cryptocurrencies for fiat.

"I hold everything in a hard wallet the size of my thumb. I have copies of my private keys in a safe. I have accounts on four exchanges on three continents. If any government wants my money, good luck to them," said a Hong Kong-based investor who claims to hold "about $1 million" in various cryptocurrencies.

Crossing borders

A 30-year-old nurse in Seoul said she had already switched to Hong Kong-based exchange Binance before the government's warnings hit the market. Company officers at Seoul-based exchanges say, anecdotally, such moves have accelerated.

"All this could lead to serious money outflow and only the government is not aware of it," one officer said, requesting anonymity.

South Korea accounts for between 5 and 15 percent of daily Bitcoin trading. The value of all Bitcoins is around $200 billion.

If opening accounts overseas proves difficult, friends,family or the local Bitcoin community can help. Another option is to find someone with access to an exchange – preferably using encrypted social media apps such as Whatsapp or Telegram – and sell to them at a discount. But fraud is a risk.

"There could be a black market where people who can cash out offshore can pay you in won for your Bitcoins," said Aurelian Menant, chief executive of Hong-Kong based exchange Gatecoin.

But that leaves the door open to "dodgy stuff," Menant said, adding that the fear of scams in the aftermath of a ban may deter new investors, potentially shrinking Korean trading volumes "from billions to millions."

Source CNBC

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Bitcoin jolted by regulation worries, falls 7 percent on extended selloff

TOKYO/SINGAPORE (Reuters) – Bitcoin extended its sharp tumble of the past 24 hours, skidding more than seven percent on Wednesday in a rapid downturn in fortunes as investors were spooked by fears regulators might clamp down on an asset whose value has skyrocketed in the past year.

The price of the world’s biggest and best-known cryptocurrency fell to as low as $10,567 on the Luxembourg-based Bitstamp exchange, not far from its six-week nadir of $10,162 touched the previous day. The session’s high was $11,794.07.

It led the fall in cryptocurrencies, although others such as Ethereum and Ripple, have also slid sharply this week after reports South Korea and China could ban trading, sparking worries of a wider regulatory crackdown.

“Cryptocurrencies could be capped in the current quarter ahead of G20 meeting in March, where policymakers could discuss tighter regulations,” said Shuhei Fujise, chief analyst at Alt Design.

At its lows on Tuesday, Bitcoin had fallen 25 percent in the session, its biggest daily decline in four months. It was a far cry from its peak close to $20,000 in December, when the virtual currency had risen nearly 2000 percent over the year.

Tuesday’s decline followed reports that South Korea’s finance minister had said banning trading in cryptocurrencies was still an option and that the government plans a set of measures to clamp down on the “irrational” cryptocurrency investment craze.

Separately, a senior Chinese central banker said authorities should ban centralised trading of virtual currencies as well as individuals and businesses that provide related services.

“Bitcoin is deciding whether this is the moment to crash and burn,” said Steven Englander, head of strategy at New York-based Rafiki Capital.

“My conjecture is that cryptocurrency holders are trying to decide whether to abandon Bitcoin because its limitations mean it will be superseded by better products or bet that it can thrive despite them.”

Bitcoin futures maturing on Wednesday on the Cboe Global Markets Inc’s Cboe Futures Exchange were at $10,740, with 1,586 contracts traded, after having opened at $10,850. The open interest was 2,895 contracts. The Cboe 14 March 2018 contract was quoted at $11,130.

The futures are cash-settled contracts based on the auction price of bitcoin in U.S. dollars on the Gemini Exchange, which is owned and operated by virtual currency entrepreneurs Cameron and Tyler Winklevoss.

The MVIS CryptoCompare Ripple Index, which covers the performance of a digital assets portfolio which invests in Ripple (XRP), a cryptocurrency developed by Ripple Labs, dropped 15 percent to $7,298 on Wednesday.

That equity index has seen a 66 percent slide in its value since the start of the year. Ripple itself was quoted at $1.15 on website CoinMarketCap, down from a high of $3.81 on Jan 4.

“The run-up in Bitcoin created a mystique of one-way trading which is being shaken but the pricing requires faith that there will always be demand,” Englander wrote.

“This is far from guaranteed given the existence of alternatives with better characteristics.”

Reporting by Hideyuki Sano in TOKYO; Writing by Vidya Ranganathan; Editing by Shri Navaratnam

Our Standards:The Thomson Reuters Trust Principles.

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David Ogden Cryptocurrency Entrepreneur

David Ogden – Http://markethive.com/david-ogden

DUBAI PLANS TO LAUNCH 20 BLOCKCHAIN-BASED SERVICES IN 2018

Dubai is already running pilot programs in a few government departments but hopes to implement 20 blockchain-based initiatives in this year.

Dubai is making good on its nickname as the ‘City of the Future’. Its government had previously formed Smart Dubai, an agency created with the aim of making Dubai the most technologically advanced, and smartest city in the world. Part of that journey is to include blockchain-based services into a number of sectors.

Both IBM and Consensys have entered into strategic partnerships with the agency in advisory roles in order to help realize the goals of Smart Dubai.

BLOCKCHAIN IS NOT JUST FOR BITCOIN

According to The National, Aisha Bint Buti bin Bisher, who is the director general of Smart Dubai, believes that “blockchain will improve people’s experience.”

While at the Unlock Blockchain Forum, she went on to explain the implementation of this technology in the city:

The applications are in various fields, some of them are in RTA, road and transport, some of them are in energy, health and education. These 20-use cases are under pilot, and we are looking forward to see the results so we can scale it.

THE FUTURE IS NOW

Even though the initial deadline for the launch was scheduled for 2020, Bisher is confident that it can be completed this year. In fact, blockchain technology is already being used for land registry transactions.

Other government sectors, such as Department of Naturalization and Residency Dubai, are also running pilot programs. Additional departments, including Dubai Customs, are collaborating with IBM on future initiatives.

The agency has said that blockchain technology will improve service delivery in government by saving more than 25 million hours of productivity every year.

Bisher also said:

While others were still debating the prospects of this new technology, we went to work and today we are making Dubai the blockchain capital of the world, and we have already begun.

In addition, she touched on the blockchain benefits that the city is already experiencing:

Dubai broke ground when the world reluctantly approached this technology. Already, blockchain is rewriting how we deal with city services. In just a handful of years, blockchain has transformed key aspects of our city.

DISRUPTION BREEDS INNOVATION

While at the same conference, Ramez Dandan, who is the national technology officer at Microsoft Gulf, discussed how the disruptive technology is an exciting addition to the business sector:

Investment in blockchain across the GCC [Gulf Cooperation Council] and beyond is ramping up at an impressive rate as organizations recognize it for the disruptive technology that it is.

He further explained:

We strongly believe in the technology’s immense potential for enterprises of all scales and industries. It allows them to share business processes with suppliers, customers and partners, leading to new opportunities for multi-party collaboration and eventually exciting new business models.

Governments in the Arabian Gulf, including the United Arab Emirates, are looking to invest in technology to substantiate oil revenue, the latter of which has suffered recently due to oil price declines.

Author: NIKITA BLOWS · JANUARY 16, 2018 · 1:15 AM

Posted by David Ogden Entrepreneur
David Ogden Cryptocurrency Entrepreneur

David Ogden – Http://markethive.com/david-ogden

No, You Don’t Have to Buy a Whole Bitcoin

No, You Don't Have to Buy a Whole Bitcoin

"How much is bitcoin?"

"Around $14,000."

"Well, that's too expensive. I can't afford that."

It's a conversation that has surely happened thousands of times over the past several months as a new swarm of people find themselves enchanted by the cryptocurrency space and its tremendous gains.

And it reveals not only a misunderstanding, but also a psychological barrier that many face stepping into the scene for their first time.

Since so much emphasis is placed on how much "one" bitcoin is worth across the industry, new users often come in thinking that if they want to participate, they'll have to fork over tens of thousands of dollars to buy a whole bitcoin.

But actually, that isn't the case – it's possible to buy a half of a bitcoin, a quarter of a bitcoin or even a fraction of a percent of a bitcoin.

Yet, that's not always clear to new people entering the market, and many believe that's why a handful of altcoins – including dogecoin and dentacoin, both of which recently reached market caps of more than $1 billion – are seeing a pump in their price, as they offer an affordable way to get into the cryptocurrency markets in whole units.

And this confusion is (partly) why developer Jimmy Song argues some standardization should occur in what the industry calls smaller units of bitcoin.

Toward this goal, Song released a standards proposal that seeks to express one one-millionth of a bitcoin (about one cent at today's prices) as a "bit." And he's nudging wallet providers, exchanges and other bitcoin businesses to support the proposal.

If widely adopted, he hopes it will put an end to this confusion, and make new crypto users more apt to purchase bitcoin, if even in tiny amounts, instead of cryptocurrencies that he thinks might come back to bite them, since many of the cheap altcoins don't have much technical merit to back them up.

Rise of the 'bits'

The problem now is that more traditional dollar units, such as $5, when converted to bitcoin look daunting and messy – at 0.000345 bitcoin.

But with Song's proposal – which he's released in the form of a bitcoin improvement proposal, or BIP – that dollar value would instead be 345 bits, still a mental juggle, but arguably less confusing, since it's in whole numbers and not decimals.

"For whatever psychological reason, normal people have trouble understanding decimals and fractions. $0.002 is weirder than $200.00," said Erik Voorhees, co-founder and CEO of ShapeShift, which supports Song's proposal, adding:

"For bitcoin to be a global, commonly used currency, it would certainly be helpful to have a denomination that allows people to express prices in integers (2,000 bits for a coffee) rather than a decimal."

Adding to the mental benefits, Song also said the standardizing "bit" would remove what he calls "unit bias."

According to Song, people don't like having what looks like such a small amount of bitcoin, or money in general for that matter. Bitcoin's price rise at the end of 2017, only exacerbated that problem, adding even more zeros in between the positive numbers and the decimal.

Poking fun at all the recent bitcoin forks, Song said, a group of people could have success enticing a new wave of crypto buyers by splitting off bitcoin with the goal of moving bitcoin's decimal system six positions.

While others have proposed similar unit changes in the past, Song's proposal seems to be gaining transaction with exchanges and other companies, which is all the proposal needs to succeed – getting businesses to use the unit to display not only how much bitcoin is in an individual's wallet but also, within merchants stores, how much things cost.

And even though, Song's proposal is targeted at bitcoin, it could serve as an outline for how other cryptocurrencies, such as ethereum, could update their units to be more user-friendly.

Still confused?

Although the idea of the proposal is to limit confusion, it's garnered its fair share of criticism, with those against claiming it could add to the confusion instead.

The critics say, for instance, that if not all companies roll out the standard at the same time – and ShapeShift uses "bits," while Coinbase sticks with "bitcoin" – when sending bitcoin from one wallet to another, they could either think they somehow earned money or lost money.

Voorhees, for one, even agreed this was a concern, but argued that it shouldn't stop bitcoin companies from eventually adopting the standard.

"There will undoubtedly be some mistakes and friction as the new term gains usage, but for the purpose of language and mathematical simplification, the net result should be beneficial to bitcoin’s adoption," he said.

Meanwhile, Song stressed that even though he thinks it would be a move in the right direction, like most things in the cryptocurrency world, it's up to the community to decide if they want to adopt the system or not.

Still, many more exchanges and businesses would need to adopt the change to get the ball rolling. Song has been tweeting at various exchanges and companies – including CoinMarketCap, one of the most popular sites for checking cryptocurrency prices – suggesting they move to "bits."

Song concluded:

"This is meant to be a community-driven initiative and the benefits will hopefully be obvious to businesses."

Author: Alyssa Hertig Jan 15, 2018 at 05:00 UTC

Posted by David Ogden Entrepreneur
David Ogden Cryptocurrency Entrepreneur

David Ogden – Http://markethive.com/david-ogden