Yuri Molchan

BKCM Founder: BTC Fall Caused by BCH Fork, Will End Soon

Brian Kelly comments on Bitcoin’s recent sharp decrease, assuring that this is just a temporary thing; according to him, the BCH hard fork is to blame
BKCM Founder: BTC Fall Caused by BCH Fork, Will End Soon
Contents

On Thursday, for first time over the past three months, Bitcoin has made a large-scale move. However, it moved in the direction contrary to what the market had expected and shed over approximately 12 percent. The sellout was one of the largest to occur within just a day since the start of the year.

Brian Kelly, the CEO of BKCM crypto investment fund, has recently shared some curious information in an interview with CNBC. He believes that the current drop in Bitcoin is most likely caused by the ongoing war between Bitcoin Cash (BCH) and its newly forked chain.

The Struggle of two BCH camps

Brian Kelly believes that Bitcoin is rolling back due to the opposition between the two camps. The leaders of the first one are Craig Wright and CoinGeek. On the other side of the battlefield are Bitmain with Jihan Wu, ABC, and ViaBTC. Both sides are competing for the right to run the BCH chain that will ensure the consensus in the network.

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Kelly pointed out that this hard fork is not a typical one. In most cases, all the community agrees, leaving the old chain behind; in this case, there is a real bloodbath that has spread to the whole crypto market.

How is that the BCH fork is making the market bleed?

The worst thing about this hard fork is that it has begun to spread its negative impact on the whole crypto market. The camp that has sprung off the main chain is dubbed Bitcoin SV (Satoshi Vision), led by Craig Wright. It has made a severe hash power contest from the hard fork and threatens to conduct a 51-percent attack on the BCH chain. If they actually decide to do that and succeed, they will gain a tool for manipulating Bitcoin Cash’s blocks.

Their ’enemies’ — Jihan Wu, Bitmain and other big BCH mining pools — have a substantial influence over crypto miners in China. Basically, Bitmain, being the major mining gear producer and operator of mining pools, could throw its hash power onto BCH from Bitcoin in order to withstand CoinGeek and Craig Wright.

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Should this take place, such a move will bring down the BTC hash rate quickly and could in theory be a source of obstacles for mining blocks, eventually making the whole network slow down.

Brian Kelly: the crypto chaos will not last long

Kelly believes that, should the war of hash rates keep going, it will hit both BCH and BTC hard. Both networks will slow down, reckons Kelly. People have already begun to sell off their crypto stock. He also added that his company has taken advantage of the downtrend and bought more crypto.

However, other analysts believe that the bearish trend may keep going for a while, making the crypto market volume down to a $180-bln low in the near future.

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Darryn Pollock

Bitcoin Google Searches on the Rise — What Does it Mean for Cryptocurrency Market?

Google searches have always been key to Bitcoin’s price gains, and amid the bloodbath, there is actually an uptick in interest
Bitcoin Google Searches on the Rise — What Does it Mean for Cryptocurrency Market?
Contents

There is a very strong correlation between the price of Bitcoin and how often it is being searched. The graph of its change in price from about June to December of 2017 almost mirrors that of its Google search.

This makes a lot of sense as the cryptocurrency market is still very new and mostly unknown, but more than that, it is a speculator’s market. People often hear about Bitcoin and its price gains, research more, buy into it, which drives up the price and the interest again — known as a Satoshi cycle.

Now, however, with the price of Bitcoin dropping to lows, and ceasing its volatile nature — up until very recently, that is — there has been less interest and thus less google searches, which again correlates with the price of the cryptocurrency.

However, looking at the Google trends of certain Bitcoin related search phrases, there seems to be an uptick in interest again, but what can be read into this is very much up for debate.

“Bitcoin”

eToro Senior market analyst, Mati Greenspan, tweeted about the uptick in interest for the term Bitcoin.

He is highly optimistic in the tweet that this is positive news, but his range of search is from March to present — which is a key factor. Looking at a graph for the same phrase over the past 12 months, it shows barely any change in interest.

 change in interest

This is because the uptick in interest which is being viewed from March is devoid of the peak interest which was seen over December.

More so, the term ‘Bitcoin’ is a bit ambiguous in simply determining what the searches are about. Like any good mainstream media source, there is huge reporting on the recent downfall of cryptocurrencies, and this could be fueling the Google searches.

“Buy Bitcoin”

Alistair Milne, CIO of the Digital Currency Fund, tries to decipher this trend a little more by looking at the phrase ‘buy bitcoin’, and he notes that there is no noticeable uptick on this phrase. But again, he has opted for a graph that looks at the last 12 months.

When one takes the same range as Greenspan and his ‘Bitcoin’ search, and applies it to ‘buy Bitcoin’ there is a small, but noticeable, uptick, in the search results.

True to form

Currently, Bitcoin has managed to bounce back up from a floor in the mid $3,500 mark, and as such, the Google results are showing this increase in price which — considering how nonvolatile BTC has been these past few months — is a big jump.

It is hard to say that Bitcoin is now back on track and hauling in millions of potential investors who are starting to search for it again, but there is indeed a uptick in search for the popular cryptocurrency again.

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Joseph Young

No, a Woman Did Not Use Bitcoin to Send Money to ISIS: False Narrative

Woman allegedly sent $150,000 in bank transfers to ISIS. But, the media decided to focus on Bitcoin
No, a Woman Did Not Use Bitcoin to Send Money to ISIS: False Narrative
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A 27-year-old woman named Zoobia Shahnaz based in Long Island sent a $150,000 wire transfer to ISIS members in Pakistan, China, and Turkey. Yet, mainstream media reports focused the incident on Bitcoin.

On November 26, CNBC published an article with the headline “New York woman pleads guilty to using bitcoin to launder money for terror group ISIS.” The report explicitly described a process in which she obtained fraudulent credit cards, bought Bitcoin with it, sold the Bitcoin, obtained cash, and allegedly sent the cash to ISIS members through bank wire transfers.

A court document read:

“Most of these cryptocurrencies that [Shahnaz] purchased were then converted to U.S. dollars and transferred into a checking account in the defendant’s name.”

Banks Were Used to Transfer Money

As the report of CNBC states, all of the payments Shahnaz allegedly sent ISIS throughout the past 16 months involved cash and banks and were processed through a series of wire transfers.

“After getting the money, Shahnaz made several wire transactions overseas that were designed to avoid financial reporting requirements and conceal the source and destinations of the illegally obtained cash, according to authorities,” the report read.

No direct payments were sent to the terrorist group using Bitcoin or any other cryptocurrency, mostly because by nature, Bitcoin is not anonymous. With blockchain analytics firms like Chainalytics, which works with major cryptocurrency exchanges like Binance, the world’s most widely utilized digital asset trading platform, it is virtually impossible to cash out illegally obtained Bitcoin on an exchange.

If the woman bought Bitcoin on a regulated cryptocurrency trading platform based in the U.S. with credit cards, then her identity is stored by the exchange from the Know Your Customer (KYC) process she had to undergo before purchasing the cryptocurrency.

Once the funds leave the exchange, the transaction can be verified using a blockchain explorer, and if the funds are sent to an exchange, there exists a wide range of transaction untangling tools to identify the transactions.

Earlier this month, an initial coin offering (ICO) exit scam called Pure Bit raised $30 million in Bitcoin and Ethereum and disappeared with user funds. On various messaging platforms including Kakao, investors in the ICO were kicked out with a simple message: “I’m sorry.”

However, the addresses used by the ICO operators were made public during the token sale process. When the individuals sent the money to Upbit, South Korea’s largest cryptocurrency exchange by daily trading volume, the exchange was immediately alerted and froze the funds of the scam group.

Possibly because the operators found out that it is not possible to withdraw the stolen Bitcoin and Ethereum on exchanges in South Korea, the group came out with an apology and absurdly decided to refund all investors.

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“I made an unforgivable mistake that cannot be turned around, blinded by money. It has been less than a day and I have already started to suffer from guilt. Although it cannot be compared with the hardship faced by the investors, I also felt significant guilt. I sincerely apologize to all of the investors in the ICO who were affected by the operation,” the operator of the ICO said.

False Narrative

The narrative against crypto that digital assets are tools which enable criminals to launder money has been overplayed by critics for many years.

With practical regulatory frameworks and increasing efforts of exchanges, it has become more challenging for criminals to use Bitcoin to process transactions.

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Thomas Hughes

Switzerland’s First Crypto ETP Registers Record Numbers

Amun’s Crypto Basket Index (HODL5) has become the product with the highest volume on the SIX Stock Exchange
Switzerland’s First Crypto ETP Registers Record Numbers

Just a week into its lifespan, Amun’s Crypto Basket Index (HODL5) has become the product with the highest volume on the SIX Stock Exchange (Switzerland’s largest stock exchange and 4th largest in Europe). Amun’s HODL5 is composed of Bitcoin, Ethereum, Ripple, Bitcoin Cash, and Litecoin.

This is the first Exchange Traded Product (ETP) listed on a regulated stock exchange, and its current appeal raises hopes that if the SEC will allow ETFs to be traded in the US, there will be an afflux of institutional investors pouring money into the crypto market.

Chart Analysis – LTC/USD

Chart Analysis – LTC/USD

Litecoin has been performing very well lately, gaining more than 3% over the last 7 days and more than 7% for the last 24 hours, currently trading at 34.20 against the US Dollar.

After moving below the long-term support zone between 35 and 30, LTC/USD reached a low at 27, then recovered most of the losses and is now attempting to break resistance for the second time in a short while. A break above the key handle at 35 will open the door for a move into 40, which is psychological resistance, rather than purely technical. As long as the pair remains above the middle line of the Bollinger Bands (BB), our bias is bullish for the short term.

Support zone: middle line of the BB, followed by 27

Resistance zone: 35

Most likely scenario: break of resistance en route to 40

Alternate scenario: choppy, sideways movement with a bearish bias

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Cryptotips George Shnurenko

What is Hashgraph and The Differences Between Blockchain

💡 Cryptotips
Hashgraph is a new approach to processing and storing data that’s considered to be the main Blockchain’s rival
What is Hashgraph and The Differences Between Blockchain
Contents

Although Blockchain is the leading technology in the world of crypto, it’s not the only method of data processing and storage. It was the first technological advance which served as the foundation for Bitcoin and altcoins, but it’s far from perfect. Now there’s a grandiose alternative coming– Hashgraph. What is it, and how it differs from the Blockchain?

What is Hashgraph technology?

If you’re more or less tech-savvy in the sphere of the Blockchain, you know that it uses consensus to record the transactions. Hashgraph uses a bit different approach: it implements a gossip protocol that works the following way:

  • every node of the system distributes signed information (this is called “events”) about the current and previous transactions to random neighbors

  • the neighbors process the information they receive and send it to other nodes

  • the process continues until all nodes get the new information.

The process doesn’t take much time due to a quick convergence property of this protocol.

The founder of this technology, Leemon Baird, uses Byzantine fault tolerance, which means the transaction becomes valid when more than 2/3 of nodes get aware of the transaction. It’s supposed that 1/3 nodes can work incorrectly or improperly. It is considered to be a safer environment than the distributed ledgers.

What is stored in each node in Hashgraph? The pieces of information processed are called ‘gossips’, and they are sent from one computer to two others, and so on. One of the main advantages of gossips is that they can weigh about one or two bits. That boosts the speed of transaction processing by over 250,000 TPS (for comparison – Bitcoin makes six transactions per second) depending on the bandwidth.

What cryptocurrency is Hashgraph?

After becoming aware of Hashgraph appearance, many Internet users start wondering what is Hashgraph coin. The fact is that Leemon Baird hasn’t introduced the proprietary coin yet, and he stays the sole rightful owner of his system– the control of who can use Hashgraph, and who cannot. However, his team is working upon The Hedera Hashgraph network that will introduce its own token, so if you wonder what is Hashgraph cryptocurrency like, visit the official website to get details.

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Until Hedera token appears on the market, Internet users are actively discussing what cryptocurrency is like Hashgraph, with some mentioning Swirdls, IOTA, and DAG-based tokens.

Hashgraph vs Blockchain: Whatthe difference?

if you still see no difference between Blockchain vs Hashgraph, let’s clear things up:

Blockchain

Hashgraph

Uses proof-of-stake and proof-of-work mechanisms of reaching consensus.

The platform leverages a new type of consensus mechanism, based on gossip about gossip and virtual voting

Relatively slow.

Processes transactions much faster.

Data is stored in a ledger on nodes directly involved in the consensus.

Data is stored on all computers of the network., which makes it impossible to hack.

Cryptocurrencies can be mined.

No mining will be used– the nodes will process transactions automatically with ‘gossips’ being about 1-2 bits.

Answering the question “What is Hashgraph?” Reddit explains that “Hedera Hashgraph is a superior consensus mechanism/data structure alternative to the Blockchain. A decentralized platform without servers.” Therefore, the principle of decentralization is one thing that unites Blockchain and the new platform.

Pros and cons of Hashgraph

What is a Hashgraph primary advantage? In fact, there are three aspects making it superb (and all are in question):

  1. It’s fast due to the gossip protocol that optimizes messages and minimizes communication overhead. Another reason for that is that Hashgraph is functioning in a private environment with limited access– that’s what conditions a high throughput. The participants of the permission-based environment are known beforehand which eliminates the vulnerability. But what will happen when/if Hashgraph becomes a public ledger?

  2. It’s fair– that’s conditioned by consensus time stamping. But the fact that ‘neighbors’ are chosen randomly poses a risk that some chosen networks are malicious and may stop sending the transactions. At the same time, every message can be sent without the intrusion of Byzantine nodes. Although it’s not a problem yet, the creators will need to solve this issue before releasing a public distributed ledger.

  3. It’s secure due to its asynchronous nature. However, the specialists still wonder what is the algorithm terminating the consensus protocol putting the efficiency of random approach in doubt.

Will Hashgraph replace Blockchain?

Being revolutionary in some aspects, Hashgraph is an efficient consensus protocol that can help us reach a very high speed of transaction processing and enjoy higher security. Being used in private settings, this platform totally justifies author’s claims about its safety and speed. But what about public use? There’s a probability that Hashgraph will face the same problems as public Blockchains.

So before googling “what is a good Hashgraph crypto” don’t forget that the Blockchain technology has a lot of room for development, and public Blockchain creators introduce innovative protocols permanently improving their products.

Cryptotips
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Darryn Pollock

Bitcoin’s Wild Volatility and Trading Volumes Have Cooled, Are Traders Bored?

Bitcoin’s rollercoaster ride of volatility has all but abated over the last few months as traders seem to be bored with the once wild asset
Bitcoin’s Wild Volatility and Trading Volumes Have Cooled, Are Traders Bored?
Contents

Bitcoin burst onto the world stage with stories of incredible growth and wild volatility, it was an exciting game for traders to play as they could see gains of 50 percent in a day — and losses of even more. The price of the digital currency rocketed from $6,500 to $20,000 and back to $6,500 in exactly 11 months.

However, the last few months have been devoid of massive growth, but they have also been lacking in the crazy volatility that was synonymous with the digital asset. While the call from the institutionalized adopters has always been for a cooling of the volatility, has it also perhaps had a knock-on effect.

Bitcoin trading volume has been on the decline, despite its market dominance recently matching the level that saw it at $20,000. Traders seem to be struggling to have the same enthusiasm and frenzy about Bitcoin, and could this be a factor in its struggling price?

Record low volatility

Bitcoin’s volatility has long been seen as a double-edged sword. It has been great for bringing into the light of the mainstream and helping force its way into the headlines, but in terms of adoption and function, it has stopped it being a usable currency.

Now, the past few months have seen Bitcoin settle right down, barely able to break out of a $600 range. The 30-day volatility index for the world’s largest digital currency hit a 12-week low of 2.55 percent on Tuesday, its lowest level since July 10 and more than 500 basis points lower from where it began the year at 8.02 percent.

Bitcoin’s Wild Volatility and Trading Volumes Have Cooled, Are Traders Bored?

The markets are getting boring

There are a few theories as to why the Bitcoin volatility range has fallen so much, some of them are positive, but one is that the traders are simply getting bored with the once wild ride that was Bitcoin.

“One can argue that the depressed volatility patterns we’re seeing with Bitcoin is the market slowly adopting Bitcoin as a SoV [store of value]. That’s a fun theory but premature,” wrote Thejas Nalval, Elements portfolio director, and Kevin Lu, the firm’s director of quantitative research.

Some feel that it is because the markets are becoming more transparent and efficient meaning liquidity is predominantly a reflection of natural supply and demand.

“We’re a bit more skeptical. We think the market has quite simply just run out of juice for now. It’s almost become boring,” they wrote.

Waiting for the future?

Of course, in this bearish market, it is hard to get excited and reinvigorate that same frenzy that was seen leading up to December last year. There is very little happening at the moment for traders to get excited about.

But on the horizon, there is a lot that could shake everything up once again and kick-start massive rallies and — by extension — massive volatility.

Traders and cryptocurrency enthusiasts in general are awaiting big calls from regulators, namely the SEC and the potential of a Bitcoin-ETF. Should this product be given the green light the belief is that a lot of institutionlized money would come flooding in and restart the Bitocin boom.

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