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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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

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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

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Bitcoin investors BANNED from using their mega-profits to buy houses amid money-laundering fears

Investors who’ve made a mint are now trying to cash in on their sudden windfall by milking the UK’s property boom.

BITCOIN investors are being knocked back by mortgage lenders amid fears about money laundering.

The price of the virtual currency has rocketed nearly 1,500 percent in the past year.Some have made massive profits on Bitcoin but are facing obstacles because of transparency fears And now investors who’ve made a mint are trying to cash in on their sudden windfall by investing in the UK’s property bubble.

But lenders are now worried about the source of the cash and have been rejecting them for mortgages.

Broker Mark Stallard said one investor had a £40,000 deposit pot after investing in bitcoin but even he was denied a loan.

Mr Stallard, from House and Holiday Home Mortgages: said: "The first mortgage lender I rang asked me what a cryptocurrency was.

"I rang two other lenders and they said they would not touch it.

"When I mentioned where the money had come from there was massive reluctance to help or understand the problem.

"I do not believe the mortgage providers in general are ready for this issue and research tells me that a lot more people will be knocking on our doors with funds made or raised in this fashion.”

The perceived problem with cryptocurrencies, such as bitcoin, are that they are not regulated by central banks. Instead they are held digitally by people using electronic identities which allow them to remain anonymous and so could be used by criminals.

Several building societies said they would not accept a deposit derived from a cryptocurrency, while banks including Santander, Nationwide and Aldermore said they had no formal policies.

The Building Societies Association said: "There is currently no regulation of these electronic currencies, which puts them into the highest risk category in relation to money laundering.

"In addition, it is well known that such currencies are popular with criminals, who use them to launder the proceeds of crime.”

Author: By Patrick Knox 13th January 2018, 3:44 pm

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Of course if you pay cash for the property, a bank may also want to know the source of the funds, So maybe you could get the seller to accept Cryptocurrency and record the transaction on the blockchain, which opens up a new ball game.

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

Bitcoin, Ethereum, Bitcoin Cash, Ripple, IOTA, Litecoin, NEM, Cardano – Price Analysis, Jan. 12

Bitcoin, Ethereum, Bitcoin Cash, Ripple, IOTA, Litecoin, NEM, Cardano - Price Analysis, Jan. 12

Bitcoin, Ethereum, Bitcoin Cash, Ripple, IOTA, Litecoin, NEM, Cardano – Price Analysis, Jan. 12

The South Korean government has confirmed that it has no plans to ban cryptocurrency trading in the short-term. This is a major relief to the markets, which were reeling under selling pressure.

Warren Buffet’s warning that the cryptocurrencies will have a “bad ending” also did not have any noticeable effect on the prices.

During the recent decline, instead of being perturbed, many traders saw this as a buying opportunity and rushed to open new accounts. The cryptocurrency exchange Binance saw a whopping addition of 240,000 users in just an hour on Jan. 10.

However, unlike the previous occasions, the pullback from the lows has been muted. Is this a sign of waning momentum? Let’s find out.

BTC/USD

Bitcoin broke below the 50-day SMA on Jan. 11 and since then, it has been struggling to climb above it. It has managed to hold on to the critical support level between the trendline of the symmetrical triangle and the neckline of the head and shoulders pattern.

If Bitcoin fails to rally within the next two days, chances are that it will turn down and break below $12,500, sinking it to $8,000 levels.

On the other hand, if the cryptocurrency clings on to the support and moves above the 20-day EMA, it will indicate a short-term bottom.

Very aggressive traders can buy on a breakout above $14,500 and keep a stop loss of $12,500. The target objective of this trade is $16,500. This is a very risky trade, hence, should be attempted with only 25 percent of the usual position size.

Risk-averse traders should wait for a reliable setup to form as there is no clear trend on the BTC/USD pair as long as it trades inside the triangle. It’s better to wait for a breakout or breakdown from the triangle before initiating any positions.

ETH/USD

Ethereum has been comparatively strong during the South Korean ban episode. This shows that its owners are not in a hurry to sell their holdings.

The buyers jumped in at the 38.2 percent Fibonacci retracement levels of the latest rally from $640.43 to $1,382. The uptrend remains intact and the bulls are likely to make another attempt to break out of the recent highs at $1,382.

If the price breaks out of the overhead resistance zone of $1,382 to $1,434, it will signal the start of the next leg of the up move, which can carry the ETH/USD pair towards its target objective of $1,814.67.

On the downside, support exists at the 20-day EMA and at $965.18, which is the intraday low on Jan. 8.

However, as we expect a strong resistance between $1,382 and $1,434, we are not recommending any fresh long positions in it.

BCH/USD

Bitcoin Cash broke out of the range on Jan. 10, however, contrary to our expectation, it could not rally to $3,249. It faced strong resistance at $2,950 and turned down from there.

It continues to be range bound but in a larger range. On the upside, $2,950 is the critical resistance and on the downside, $2,291 continues to be a strong support. If this support breaks, it has another support at the $2,072 level.

Traders should wait for a breakout above $2950 to initiate long positions. The breakout is likely to carry the BCH/USD pair towards the highs.

On the other hand, a breakdown below $2,072 can result in a decline to $1,733 and thereafter to $1,200.

XRP/USD

For the past three days, Ripple has been attempting to hold the uptrend line. The bulls continue to buy the dips close to the $1.5 levels.

The cryptocurrency is currently correcting inside a descending channel. If the bulls succeed in breaking out of the resistance line of the channel, a move to $2.85 is likely.

Strong support exists between $1.76978 and $1.40463, which are 50 percent and 61.8 percent Fibonacci retracement levels of the recent rally from $0.22255 to $3.317.

But we don’t find any reliable buy setups on the XRP/USD pair. Hence, we are not recommending any trade on it.

IOTA/USD

IOTA has continued its range-bound trading between $3.032 and $4.34. Yesterday, Jan. 11, the bulls again defended the lower end of the range.

We expect the range to hold. Hence, traders can buy on weakness towards $3.1 and keep a stop loss of $2.7.

The IOTA/USD pair should attempt to move towards $4.34 once it breaks out of the downtrend line. A move above $4.34 is likely to propel it towards the upper end of the range at $5.59.

Our bullish view will be invalidated if price breaks down and sustains below $3.032.

LTC/USD

Litecoin is still stuck inside the symmetrical triangle. Yesterday, Jan.11, the bears failed to break down of the triangle.

The bulls will now try to push prices towards the resistance line of the triangle at $280. The move will gain momentum above $254. The support is way lower at $215.

At the moment the risk to reward ratio is not attractive for trades.

The LTC/USD pair will become bearish if price breaks down and sustains below the 50-day SMA.

XEM/USD

As forecast in our previous analysis, the decline to the trendline support prompted buying. NEM is currently in a pullback. Should we trade this?

The traders bought the dip below the trendline support yesterday, Jan. 11. We now expect the XEM/USD pair to rally to $1.56949 and $1.68590, which are 50 percent and 61.8 percent Fibonacci retracement levels of the recent fall from $2.06278 to $1.07619.

The aggressive traders can buy at the current levels of $1.38 and keep a stop loss at $1.06, below yesterday’s lows. Though the initial risk to reward ratio is not attractive, we believe that buying near the strong support of the trendline is a good strategy.

ADA/BTC

Buyers bought the dip below the trendline on Jan. 11. We had forecast a pullback from the trendline in our previous analysis but advised waiting for a confirmation of a bottom before buying. So, can the traders buy now?

If the pullback sustains above the 0.000057 levels, we expect the move to extend to $0.00006616 and $0.00007221, which are 50 percent and 61.8 percent Fibonacci retracement levels of the recent fall.

Traders can buy the ADA/BTC pair at the current levels and keep a stop loss at 0.00004. Here too, we are recommending a trade without an attractive risk to reward ratio because we are buying close to the strong support of the trendline from where the price can surprise on the upside.

Author: Rakesh Upadhyay

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Bitcoin is no long the only game in crypto-currency town

IT STARTED as a joke. Dogecoin was launched in 2013 as a bitcoin parody, using as its mascot a Japanese shiba inu dog, a popular internet meme. The crypto-currency was never really used, except for tipping online, and one of its founders has called it quits. But recently its price has soared: on January 7th the dollar value of all Dogecoins in circulation reached $2bn, a sign of how crazy crypto-currency markets have become. It is also a reminder that, for all the focus on bitcoin, it is no longer the only game in town. Its market capitalisation now amounts to only about one-third of the crypto-market (see chart).

Bitcoin is no long the only game in crypto-currency town

A new crypto-currency is born almost daily, often through an “initial coin offering” (ICO), a form of online crowdfunding. CoinMarketCap, a website, lists about 1,400 digital coins or tokens, including UFO Coin, PutinCoin, Sexcoin and InsaneCoin (worth $7m). Most are no more than curiosities, but by January 10th, around 40 had a market capitalisation of more than $1bn.

First on the list, after bitcoin, was Ethereum, whose coin, called ether, reached a market capitalisation of $137bn. Ethereum’s claim to fame is that it is also a platform for “smart contracts”—business rules encapsulated in software. Most ICO tokens, for instance, are issued by such contracts. Its success has attracted crypto-copycats: Cardano ($20bn) and NEO ($8bn), a Chinese version.

Ripple, too, is defying gravity. It is all the rage in crypto-crazy South Korea, which this week roiled crypto-markets with plans to ban trading on exchanges. Ripple sells software to move money between countries; more than 100 banks have signed up to its technology, based on a coin called XRP. Its market capitalisation jumped by more than 40,000% in 2017, reaching nearly $149bn on January 4th, before falling back to $78bn. That still makes Chris Larsen, a Ripple co-founder, one of the world’s richest people, at least on digital paper.

Less well-known coins have also taken wing. Monero ($6bn) and Zcash ($2bn) focus on privacy. Stellar ($9.8bn) has developed a system to transfer funds cheaply that is used by charities, particularly in poor countries. IOTA ($10.1bn) allows connected machines to exchange information and payments securely. And then there is Bitcoin Cash ($46bn), whose founders split from bitcoin in August 2017 because they were unhappy with how it was run.

Might any of these one day replace bitcoin as crypto-land reserve currency, something insiders call the “flippening”? Given bitcoin’s governance problems (another “fork”, or split, may be in the offing) and limited capacity (a transaction now costs nearly $30, on average, in fees), this cannot be excluded. But the others have problems, too. Ethereum’s user fees have soared and the system has again hit technical snags. As for Ripple, some question the extent to which XRPs are actually used.

Come what may, the field will only get more crowded. Kodak, the archetypal victim of digital disruption, wants to jump on the crypto-wagon: on January 9th it announced that it will launch a coin to allow photographers to charge for their works. More ambitious will be the ICO of Telegram, a messaging service with 180m users: it aims to raise $1.2bn and issue a token called Gram that can be used to pay for a range of services from online storage to virtual private networks. Even Facebook has reportedly started looking into creating a token. Should the world’s biggest social network ever make that move, bitcoin’s days as the leading crypto-currency would almost certainly be numbered.

Source: The Economist

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Bitcoin Price Technical Analysis for 10th January â Small Reversal Signal

Bitcoin Price Technical Analysis for 01/10/2018 â Small Reversal Signal

Bitcoin Price Technical Analysis for 01/10/2018 – Small Reversal Signal

Bitcoin Price Key Highlights

Bitcoin price appears ready for another selloff as price has formed a head and shoulders pattern on the 1-hour chart.

Price has yet to break below the neckline around the $14,000 major psychological support.

The chart pattern is approximately $3,000 tall so the resulting drop could be of the same height.

Bitcoin price is forming yet another selloff signal on a short-term time frame, but technical indicators are looking mixed.

Technical Indicators Signals

The 100 SMA is still above the longer-term 200 SMA on this time frame to suggest that the path of least resistance is to the upside or that the rally could continue. However, the gap between the moving averages has narrowed significantly to show that a downward crossover and and pickup in bearish momentum is imminent.

A break below the neckline could take bitcoin price down to the $10,000-11,000 region next while a bounce could lead to a move up to $15,000 then the highs at $17,000.

Stochastic is pulling up from the oversold region to signal a return in buying momentum while RSI also appears to be slowly heading north as well.

Market Factors

Dollar demand has once again ticked higher on record high Treasury yields, as well as record closes for equity indices. Traders are now looking ahead to a positive earnings season scheduled to start on Friday, and these upbeat expectations are likely to be sustained as tax reform kicks in.

Meanwhile, bitcoin price continues to reel from the hesitation among ETFs facing SEC regulation. A couple of funds withdrew their applications, citing pushback from the financial watchdog. Direxion Shares ETF Trust secretary Angela Brickl wrote

“On a call with the Staff on January 5, 2018, the Staff expressed concerns regarding the liquidity and valuation of the underlying instruments in which the Fund intends to primarily invest and requested that the Trust withdraw the Amendment until such time as these concerns are resolved. In response to the Staff’s request, the Trust respectfully requests withdrawal of the Amendment.”

This cryptocurrency is also losing ground to its altcoin rivals, as well as equities that are performing better.

Author: SARAH JENN

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Bitcoin drops below $15,000 as regulation, demand concerns linger

Bitcoin slumped, dragging down smaller rivals such as ether and litecoin, as concerns that regulators will tighten their grip on the market weigh on the world's largest cryptocurrency.

Regulators in China and South Korea are increasing oversight on cryptocurrency trading and mining, while the US Securities and Exchange Commission late last year started cracking down on some digital token sales, known as ICOs. Coinmarketcap.com's decision to exclude Korean pricing data for coins helped create the appearance of a large drop in prices, which some traders attributed as playing a part in the selloff.

"News on the regulatory front is dragging down cryptos," said Gabor Gurbacs, director of digital-asset strategy at VanEck Associates Corp. "South Korea and China tightening is weighing on bitcoin and in the ICO market, things started slowing down, with the SEC cracking down on illegal offerings."

Bitcoin slumped as much as 17 per cent to $14,820, the most in more than two weeks. The rout in bitcoin is part of a broader selloff in the cryptocurrency realm, with all of the top 10 by market cap falling, and most tumbling by at least 10 per cent, according to Coinmarketcap.com. Cardano fell 16 per cent, while litecoin slumped as much as 16 per cent to as low as $230. Bitcoin is little changed this year after surging about 1,400 per cent in 2017.

China plans to limit power use by some bitcoin miners, people familiar with the matter said last week, a potential challenge to an industry whose energy-intensive computer networks enable transactions in the cryptocurrency. The People's Bank of China outlined the plan Jan. 3 at a closed-door meeting, according to the people, who asked not to be identified because it wasn't public. They didn't detail how authorities plan to enact the curbs.

South Korea began inspections at six banks including Industrial Bank of Korea, that provide virtual accounts to companies related to cryptocurrency trading, to clamp down on potential money laundering. The nation last month said it will restrictively allow cryptocurrency trading on only qualified exchanges and review a possible capital gains tax on crypto trading as a way to restrain the nation's frenzied speculation.

Demand for cryptocurrencies in Korea is large enough to cause distortion on some prices. Ripple surged to almost $4 on some Korean exchanges, while it trades at around $2.50 elsewhere. Coinmarketcap.com is excluding Korean exchanges from its pricing, which helped cause ripple to tumble as much as 31 per cent today.

Naeem Aslam, chief market analyst at TF Global Markets in London, said the increased regulatory oversight will weigh on prices in the short term, but should be positive in the longer term.

"We need regulators to look into the space more closely, the Korean exchanges have become crazy in terms of price differences so these regulatory actions would help the price stability," Aslam said. "As for the mining operations, China is making the process more difficult for miners, but opportunist have started to focus on Canada which is more regulatory friendly and cheap on the energy front."

Author : Camila Russo

Posted by David Ogden Entrepreneur.
David Ogden Cryptocurrency Entrepreneur

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Why African millennials can’t get enough of Bitcoin

Why African millennials can't get enough of Bitcoin

Bitcoin's eye-watering price surge over the past year is proving too tempting to resist despite fears that cryptocurrencies are a bubble floating towards an inevtitable burst. One group for whom it holds particular appeal is African millenials, writes the BBC's Catherine Byaruhanga.

Thirty year-old Peace Akware in Kampala is a convert to the crytocurrency craze. Like any self-respecting middle class millennial here her smartphone is always within reach and with it her digital wallet.

"I check my Bitcoin every day and any chance I can get. Any minute, any hour, anytime, as often as I can," she tells me from the small bungalow she rents on the outskirts of Kampala.

Finding a job here is almost like a lottery for graduates so Ugandans often have so-called side hustles. Peace has sold clothes and even got into money lending. Both failed. But buying cryptocurrencies like Bitcoin appeals to her because it requires less of her time and there are no upfront costs.

She's bought more than a thousand dollars worth of bitcoin. So far the gamble is paying off and overall she's seeing her digital value rise. "You know there's potential for it growing even further. I would like to buy a car. I would like to buy land. I would like to build with it".

Disrupting remittances

It's not just those hoping to get rich quick who are getting in on the action.

In parts of the continent – especially commercial hubs like Lagos, Nairobi and Johannesburg – a small but growing number of people are finding that cryptocurrencies offer a cheaper solution to an expensive problem – transferring funds across borders.

The technology platform Bitpesa uses Bitcoin as a medium to transfer cash across borders.

It's like a remittance company.

With traditional remittance companies like Western Union, when you transfer money initially it goes from your local currency into dollars then on the other side they receive dollars which are then converted into the local currency.

You lose a lot of money in that conversion.

What Bitpesa does is substitute the dollars with bitcoin. It's cheaper, especially when there is a shortage of dollars in the country or restrictions on accessing dollars. It's also quicker because you don't have to go through long complicated bank approvals.

Elizabeth Rossiello is the CEO of Bitpesa. Even as someone who knows how the finance world works, she gets frustrated with traditional banking.

"I've been in Nairobi for the past month and I had three big banking things to do. All three of these operations with three different Kenyan banks were cancelled for different reasons, or had delays or needed additional information so it took almost two and a half weeks per transaction to get them finalised and I'm an expert."

Bitpesa has been operating for four years now and has over 6,000 customers across the continent. It focuses on big-ticket transfers – for example, paying suppliers in China or employees in another country.

In Nigeria, when the government placed controls on access to the US dollar during a financial crunch, Bitcoin made it much easier for businesses to transfer cash abroad, something that has increased interest in cryptocurrencies in the country.

In places like Zimbabawe, where there has been political and economic instability, Bitcoin has become a place to store value, buy goods and services from abroad and crucially a vehicle for remittances from the diaspora.

Many central banks are sceptical. The Nigerian, Kenyan and Ugandan central banks have issued warnings about getting involved in the new and unregulated market. The Governor of the Central Bank of Kenya went as far as saying digital currencies are a type of Ponzi scheme because of the way their value often fluctuates.

Bitcoin classes

Martin Serugga, a sharply dressed currency trader in Kampala warns people to be cautious too.

He says unfamiliarity about the new financial instruments could lead to criminals duping customers out of their money.

Nevertheless, he's started weekly classes with over 50 people attending to learn about cryptocurrencies and how to trade them against traditional currencies like the US dollar or British pound.

He says high youth unemployment in Uganda is driving interest in Bitcoin and other products.

Martin teaching class.

Mr Serugga's class is made up of equal numbers of men and women majority of them are young. They come to an upmarket coffee shop for their dose of the financial markets. The bright projector on the screen flashes numbers, graphs and bright colours.

Joachim Ndhokero, a recent economics graduate, is still unemployed. His father encouraged him to attend the classes to make some money but it's not been easy. He lost over $900 (£664) in a trade gone wrong. Before he lost all his money he had just made a $200 profit. Then he went to the cinema and lost everything.

"I think it was within like two hours.

"That day I learnt that for crytocurrencies since they have a bigger spread they can easily bring in losses. If it's a loss, it's really a loss."

The expert advice here is "use what you can afford to lose".

Blockchain magic

But it's not just the currency aspect of this technology that people think will transform the continent.

Digital security expert Neil Blazevic sees the blockchain technology which underpins cryptocurrencies as the more important innovation.

Blockchain is a form of recording data that cannot be tampered with or hacked. It can be used for documents from contracts drawn up by lawyers to land registries.

He lists many more applications.

"If African developers, entrepreneurs, and governments can leverage blockchain technologies they may have a shot at tackling some of the continent's most intractable problems of the unbanked masses, digital identities, untrusted voting systems, to name only a few applications," Mr Blazevic explains.

"With the right support for innovation, and collaboration Africa could once again leapfrog over the digital divide and become a market leader just like it did in the move from landline communications infrastructure to the mobile phone ecosystem."

One person who has fully embraced the African mobile phone revolution is Ms Akware. She continues to watch over her digital wallet.

She knows that the value of Bitcoin could fall at any moment. If all fails she'll probably start again from scratch with a new venture.

For the moment she's holding on, hoping to buy her first car in two months.

Source BBC News

Posted by David Ogden Entrepreneur
Dacvid Ogden Cryptocurrency Entrepreneur

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