Limited Supply Principle stifling cryptocurrency regulatory approval, says CME Chairman Terry Duffy

Terry Duffy, the Chairman of the Chicago Mercantile Exchange [CME], is in the news after he cast doubts on the prospects of a publicly traded Bitcoin asset. Cryptocurrencies backed by real assets like fiat currency would be the only form of virtual currency that would fit the bill under regulatory oversight, he stated.
During a recent interview at FIA’s International Futures Industry conference, Duffy voiced his support for stablecoins backed by real dollars.
Stablecoins like Tether [USDT] are backed one-for-one by fiat and hence, are the ‘best of both worlds.’ They allow users to delve into the cryptospace, enjoying ubiquity and universality of payments while still being tethered to the centralized financial world.
He stated,
“How do we figure out how to get the cryptos in there, but just have them backed up by fiat, and let that work as it is.”
Cryptocurrencies are often seen as just another investment vehicle, where the value of the underlying coin is more important than its use cases. Duffy stressed that the adoption and use of decentralized currency should be of greater concern, than the actual rise and fall of the market.
The CME Chairman added,
“But the argument has gone only to the price of say bitcoin or any other cryptocurrency. No one is talking about, ‘How do I use this asset?”
Publicly traded Bitcoin [BTC] assets, like the much-touted Bitcoin Exchange Traded Fund [ETF] have been in a regulatory shackle for months now. Despite two proposals, the Securities and Exchange Commission [SEC] is yet to give its approval, with many claiming that doing so is hindering the mainstream growth of decentralized currency.
Duffy added that the main reason for the backlash against the ETF was the underlying cryptocurrency’s principle of limited supply. The protocol placed into Bitcoin is that there can only be 21 million BTC in supply, which the market is expected to reach in 2140 when the mining rewards dwindled to 0.
Cryptocurrency proponents often cite this principle as one that balances the market and reduces inflationary pressure. Sovereign currency can be created by the government at any time, which is a fundamental point of opposition within the crypto-community.
In light of this debate, Duffy stated that governments cannot operate unless “they run on a deficit.”
Regulation is the single biggest hurdle for cryptocurrency adoption, something Duffy acknowledged. The cryptocurrency community needs to get the nod from financial watchdogs if they want to break into the forefront of the financial realm, he believes.
Duffy concluded by highlighting the skepticism that regulators have when approaching the topic of cryptocurrencies,
“I do believe that the regulators right now are a little careful about just rubber stamping anything as it relates to crypto.”
The CME group, together with its cross-city rivals, the Chicago Board of Options Exchange [CBOE], set the cryptocurrency market alight by launching Bitcoin Futures in 2017. However, 15 months after the launch, the CBOE decided to delist the XBT contracts for March 2019, allowing the CME group to take over the BTC Futures market.
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Source: AMB Crypto

Kintaro Capital Receives License from Malta Financial Services Authority as a Private Investment Crypto Fund

Kintaro Capital Receives License from Malta Financial Services Authority as a Private Investment Crypto Fund
Kintaro Capital is one of the first EU crypto funds who received their license from the Malta Financial Services Authority (MFSA), licensing it as a Private Investment Fund (PIF) for cryptocurrencies and listed equities.
Kintaro Capital Receives License from Malta Financial Services Authority as a Private Investment Crypto Fund

Continue reading at Coinspeaker
Source: CoinSpeaker

Breaking: DragonEx hacked; exchange reports loss of customers’ funds

DragonEx, a cryptocurrency exchange platform that claims to be “a safe and stable platform for Bitcoin and ETH transactions,” is in the news after it announced via their official Telegram channel that its platform had been compromised. The announcement stated that the exchange lost control of its users’ cryptocurrency assets. However, the exchange did not elaborate on the exact amount of loss incurred by DragonEx.
The announcement further read,
“Part of the assets were retrieved back, and we will do our best to retrieve back the rest of stolen assets. Several Judicial administrations were informed about this cyber crime case including Estonia, Thailand, Singapore, Hong Kong etc. and we’re assisting policemen to do investigation.”
The exchange’s officials stated that the trading services provided to users on the platform will shut down. The team claimed that the exact turn of events, loss of assets and  recovery details pertaining to the hack would be released in a week, adding that the exchange “will take the responsibility no matter what.”
Source: Telegram
DragonEx’s statement on Telegram stated,
“We have encountered attacks from hackers and our users’ crypto assets and DragonEx’s crypto assets are both stolen. International Policemen are investigating. Please wait for following announcement about the accurate loss situation.”
Further, an admin of the channel, Joanne Long stated that the team had tracked down the addresses the stolen funds were transferred to. Based on the data collected, they ascertained that the assets lost during the hack included Bitcoin [BTC], Ethereum [ETH], NEM [XEM], EOS, XRP, Ethereum Classic [ETC], NEO, ABBC, Litecoin [LTC], Bitcoin Cash [BCHABC], Stellar [XLM], Monero [XMR], Cardano [ADA], Ontology [ONT], Tron [TRX], Bytom [BTM], Asch [XAS], Icon [ICX], Qtum, and Tether [USDT].
Source: Telegram
These coins were then transferred to leading exchanges such as Binance, Bittrex, and Huobi. As of press time, the coins transferred from the above addresses were frozen on Huobi and
Notably, this announcement was made only on the exchange’s telegram account. The last update on Reddit was three days ago, while DragonEx remained silent on Twitter.
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Source: AMB Crypto

Bitcoin (BTC) Price Signaling Additional Losses Below $3,900

Bitcoin price failed to surpass the $4,000 resistance level and declined against the US Dollar.
The price declined sharply and broke the key $3,940 support area to enter a bearish zone.
Yesterday’s highlighted major bearish trend line is intact with resistance at $3,950 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair traded towards the $3,850 support and it is currently higher towards key resistances.

Bitcoin price declined below important supports near $3,940 against the US Dollar. BTC might correct in the short term, but sellers are likely to protect gains above $3,940.
Bitcoin Price Analysis
After multiple failures near the $4,000 resistance, bitcoin price started a sharp decline against the US Dollar. The BTC/USD pair formed a swing high near $3,980 and later declined below the key $3,940 support area. Sellers gained control and the price even broke the $3,900 support level. The price traded to a new weekly low at $3,855 and settled well below the 100 hourly simple moving average. Later, the price started an upside correction above the $3,900 level.
The price cleared the 23.6% Fib retracement level of the recent decline from the $3,978 high to $3,855 low. However, the price is currently facing resistance near $3,920. It represents the 50% Fib retracement level of the recent decline from the $3,978 high to $3,855 low. In the short term, the price might correct above the $3,920 level. Having said that, there is a strong resistance near the $3,940 and $3,950 levels.
Besides, yesterday’s highlighted major bearish trend line is intact with resistance at $3,950 on the hourly chart of the BTC/USD pair. The 61.8% Fib retracement level of the recent decline from the $3,978 high to $3,855 low might also prevent gains near $3,930. Therefore, if the price corrects higher, it is likely to face a strong resistance near $3,940 and $3,950. A proper close above the $3,950 resistance plus the 100 hourly SMA is must for a decent rebound towards $4,000.

Looking at the chart, bitcoin price clearly moved into a bearish zone below the $3,940 support level. On the downside, an immediate support is at $3,880, below which the price is likely to revisit the $3,850 support. If there are more losses below $3,850, the next stop for sellers could be $3,800. On the upside, the main resistance is at $3,950, above which there are chances of a fresh increase.
Technical indicators:
Hourly MACD – The MACD moved back in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD recovered recently, but it is still well below the 50 level.
Major Support Levels – $3,880 followed by $3,850.
Major Resistance Levels – $3,930, $3,940 and $3,950.
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Source: New

Bitcoin (BTC) Drops Below 4,000 After Approaching Historical Resistance Level

Bitcoin has broken below its recently established trading range between roughly $4,000 and $4,100 that was formed a couple of weeks ago. Although BTC has been somewhat stable as of late, this lack of major volatility should not fool traders as the cryptocurrency typically makes a large price swing after long bouts of sideways trading.
Now, Bitcoin is beginning to push up against a key resistance line that the cryptocurrency has failed to break above on multiple occasions over the past year.
Bitcoin (BTC) Drops Below $4,000 as Key Resistance Level Holds 
At the time of writing, Bitcoin is trading down 1.5% at its current price of $3,960 and just recently dropped below its key support level that had been previously established at approximately $4,000.
Over the past week, Bitcoin has been coiling tightly within approximately $4,000 and $4,050 before dropping today. Despite today’s drop being relatively small, the recent lack of volatility will likely be fleeting, as BTC has historically made some of its largest price swings after extended periods of sideways trading.
Tim Kelly, the founder and CEO of cryptocurrency trading platform BitOoda, recently spoke to MarketWatch about where he sees the markets heading next, and importantly noted that he believes BTC will “probe” its previously established resistance level at $4,200.
“BTC’s feel at the very moment is that it wants to probe the recent highs and see how strong the resistance is sitting at the $4,200 level… Unless large buying volumes come into the market, probing is all we shall see at that resistance level. We believe it will take a serious force of buying to take those levels out to the upside,” he explained.
$4,200 was established as a key resistance level in late-February when BTC surged from roughly $3,600 to highs of $4,200, before swiftly spiraling downwards to $3,800.
Bitcoin Rejected at Persisting Resistance Level 
Although Bitcoin is somewhat stable at its current price, BTC is now nearing a key resistance level that has persisted for the past year and has never been successfully broken above since the crypto dropped from its highs of nearly $20,000 in late-December of 2017.
GPas, a cryptocurrency analyst on Twitter, pointed to this resistance level in a recent tweet, facetiously saying that “this time will be different.”

"This time it's different" $btc
— GPas (@GarryPas) March 25, 2019

Assuming that this resistance level does hold for the foreseeable future, it could lead Bitcoin’s price back towards its 2018 lows of $3,200, which bulls must ardently defend or else significantly further losses could be in store.
As the week continues on and trading volume possibly increases, traders and analysts alike may discover whether or not BTC is able to break above the aforementioned resistance level, which could set the tone for which direction the entire crypto markets are heading next.
Featured image from Shutterstock.
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Source: New

Bitcoin Price Chart Shows How Surpassing Gold’s Market Cap Is “Easily” Feasible

Bitcoin, to many, is the digital equivalent of gold – one of the world’s first ever currencies, means of exchange, and stores of value. According to crypto bull Mike Novogratz, one day, Bitcoin’s market cap will surpass that of gold’s.
After the lofty prediction was made, crypto analysts took to Bitcoin price charts hoping to outline the trajectory that could take the first-ever crypto to a market cap of over $7.5 trillion. One crypto analyst, using Bitcoin’s long-term logarithmic growth chart, shows how BTC reaching such a feat is entirely “feasible.”
Mike Novogratz: Bitcoin Market Cap Will “Easily” Surpass Gold
This week, Galaxy Digital CEO and founder Mike Novogratz joined Morgan Creek’s Anthony “Pomp” Pompliano on the Off The Chain podcast he hosts. There, the outspoken crypto bull suggested that Bitcoin could “easily” reach a similar market cap as gold’s $7.5 trillion cap over the course of the next 20 years.
Related Reading | Precious Metals Firm Drops Crypto: Is the Bitcoin Digital Gold Narrative In Trouble?
Novogratz added that it would require BTC to “100x” from today’s prices of approximately $3,950, but clarified that crypto investors shouldn’t expect it get there “in the next year or two.” It’s a long-term goal for Bitcoin’s market cap, according to Novogratz.
Bitcoin Price Chart Shows Growth Trajectory to $7.5 Trillion Market Cap
Following Novogratz and his highly-publicized podcast remarks, crypto Twitter began digging into how Bitcoin price might eventually reach the heights discussed by the Galaxy Digital CEO.
Prominent crypto analyst Dave the Wave, known for his analysis of longer-term Bitcoin price charts and trend changes, shared a 50-year chart of BTC’s market cap using the logarithmic growth rate to highlight its path to $7.5 trillion.

Yes, according to the curve….
— dave the wave (@davthewave) March 25, 2019

Considering the chart’s growth trajectory, Bitcoin can be expected to peak some time around the year 2045, and from there it will begin to stabilize. At that point, it will become a more realistic store of value and currency due to volatility  essentially disappearing from the asset.
Related Reading | Poll Reveals Majority of Crypto Investors See Bitcoin Price at $100,000 to Millions Long-Term
At such an astronomical market cap, the price per BTC would be near $360,000 each assuming all BTC is mined by the time the target is reached in 2045. Despite such a seemingly unrealistic number, the $7.5 trillion market cap of BTC would only represent a mere under 2.5% of the entire global wealth, which is currently at $317 trillion according to The Credit Suisse Research Institute’s Global Wealth Report.
If Bitcoin were to absorb much of the world’s transactional value by becoming the global currency for the internet as many believe it may, BTC may eventually reach the potentially “millions” in value that most cryptocurrency investors expect it to. It just won’t happen for another 25 or more years.
Featured image from Shutterstock
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Source: New

Bitcoin [BTC] is a more fluid, dynamic currency than the US Dollar, claims Tim Draper

Tim Draper, a renowned Silicon Valley Venture Capitalist, recently spoke about Bitcoin and offered cryptocurrency investment advice during an AMA session on Facebook.
Draper said that the ideal period to invest in Bitcoin had not passed yet and that he had more faith in the digital asset than the US fiat currency.
Back in 2014, the FBI shut down the black market site Silk Road and seized 144,336 Bitcoins. The US Marshals Service auctioned these digital currencies, with Tim Draper purchasing 29,656 bitcoins at the time. Draper bought it for an estimated $18 million, worth around $118 million, at press time.
Tim Draper stated,
“What it is [Bitcoin] is the future of currency and the currency is going to be decentralised and open and you’re going to end up with a much more fluid, dynamic currency if you own Bitcoin, than if you own dollars.”
He also told investors not to worry too much with respect to the short-term price fluctuations in the cryptosphere. He indicated that it was not ideal to invest in Bitcoin while focusing only on the short term, suggesting that doing so was a “mistake”.
He stressed on the importance and value of Bitcoin and explained how it depended on people and heavy investors. He also added that people could manipulate the coin’s price, stating that its valuation could go up or down if big customers invested in or sold off the coin.
He added,
“Sometimes Bitcoin is going to feel very valuable … and sometimes you’re going to feel like dollars are what you really want to hold on to. When you feel like dollars are what you really want to hold on to, you probably want to buy Bitcoin.”
Tim Draper recently met Argentinean President, Mauricio Macri, suggesting that he should announce Bitcoin as a national currency. Draper was convinced that the decision would rescue the country from its current financial crisis. He said,
“That could end up being just phenomenal and globally, people will start saying I’m going to Argentina to start my business.”
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Source: AMB Crypto

Bitcoin [BTC/USD] Price Analysis: Prices side with bulls in short-term, long-term still in turmoil

Bitcoin [BTC] briefly broke the $4,000 sentiment level yesterday. However, it dipped back and was trading at $3,966 at press time. The market cap of Bitcoin was hovering around $70 billion, with a 24-hour trading volume of $9.19 billion.
Most of the trading volume of Bitcoin usually comes from BitMEX exchange via the trade of Bitcoin perpetual contracts against the US Dollar. However, the trading volume of BTC contributed by BitMEX has reduced in recent weeks as it contributed only $469 million, which is 4% of the total Bitcoin trade volume.
FCoin exchange is the top contributor as it contributed $644 million in terms of trading volume via the trading pair ETH/BTC, which is 5.50% of the total trading volume.
Source: TradingView
Bitcoin, on the one-hour chart, showed an uptrend that extended from $3,689 to $3,957, while the downtrend extended from $4,163 to $4,039. The prices were testing the immediate support at $3,953. Subsequent supports were seen at $3,848 and $3,696.
The Parabolic SAR markers spawned below the price candles and indicated that the price trend reversed and was headed upwards, whixh was a bullish signal.
The MACD indicator showed a bullish crossover below the zero-line. The MACD histogram on the one-hour chart showed green bars developing in tandem with the crossover.
The Relative Strength Index hit the 60-line and started its descent and was at the 50-line at press time, indicating an equal momentum between the sellers and the buyers.
Source: TradingView
The one-day chart of Bitcoin showed no signs of an uptrend, however, the downtrend extended from $9,800 to $4,056. The price of BTC bounced off the support at $3,189 on December 15, 2018. The immediate resistance was at $4,056, and subsequent resistance points were at $7,641, and $9,800.
The Aroon indicator showed the Aroon up line and Aroon down line collapsing. This indicated a consolidation movement that BTC was undergoing at press time.
The Stochastic RSI hit the oversold zone and showed a collapsing trend, which passed below the 50-line. This presented a bearish movement for Bitcoin in the longer timeframe.
The Chaikin Money Flow showed a rising trend, which meant that the money flowing into the Bitcoin market was high.
The one-hour chart showed a bullish trend for Bitcoin, which was confirmed by the Parabolic SAR, MACD, and RSI indicators. Unlike the one-hour chart, the one-day chart showed a consolidation phase for Bitcoin as indicated by Aroon, Stochastic RS, and CMF indicators.
The post Bitcoin [BTC/USD] Price Analysis: Prices side with bulls in short-term, long-term still in turmoil appeared first on AMBCrypto.
Source: AMB Crypto

Bitcoin (BTC) Dominance Drop to 50 Percent, will Sell-off Boost Altcoins?

Bitcoin Prices slumping
Solactive and CMC launching two crypto indices
Transaction volumes less than half those of late Feb

CMC in partnership with Germany’s Solactive will launch two crypto indices. Data broadcasts will be from several terminals including Bloomberg’s GDIS and Börse Stuggart. With information based on performance, Bitcoin (BTC) traders will be better equipped and trade accordingly.
Bitcoin Price Analysis
At the time of writing and drawing data from CoinGecko, Bitcoin enjoys a dominance of 50 percent with a market cap of roughly $69,994 million. If anything, this points to uncertainty. All the same, we expect prices to stabilize in coming few days. With better tools to gauge volatility and influence of BTC, predicting price moves and measuring sentiment has been made easy with news of CoinMarketCap collaboration with Solactive.
The two plan to launch two crypto indices. One, CMC Crypto 200 Index (CMC200), will collect price movement data of the top 200 crypto assets weighed by market capitalization including Bitcoin.  The other–CMC Crypto 200 ex BTC Index (CMC200EX) — won’t and helps in tracking the general performance of crypto assets without the influence of Bitcoin. Interested firms can draw data from Global Index Data Service (GIDS) of NASDAQ, Börse Stuggart, Refinitiv of Reuters and the Bloomberg Terminal.
Candlestick Arrangement

Bitcoin Prices are hovering at last week’s close. From the chart, it is clear that sellers have the upper hand and if bears manage to drive prices below the 20-day moving average, then BTC may collapse.
As we can see, we have a three-day bear reversal, but bulls are firm as prices are trading above $4,000 and Mar 16-21 lows. That’s roughly the 31.8 percent Fibonacci retracement level of Feb 24 high low and a region of interest as laid out in our last BTC/USD price analysis.
If prices sink below $4,000, aggressive traders should unwind their longs and wait for pullbacks above Mar 16 highs at around $4,200. At the same time, risk-averse, conservative traders should wait for full breaks above $4,500 as prices break free from the $1,300 of the last four months.
Technical Indicators
Mar 16 bull bar is our base bar. With decent volumes—13k, which is still lower than those of Feb 24—36k, bears are yet to reverse its gain. As aforementioned, any drop below $4,000 or the 20-day MA with high volumes above 13k could trigger a sell-off towards $3,800 forcing liquidation of longs. If not and there are counter bars driving prices above $4,200 with equally high volumes, then traders should brace themselves for a rally towards $6,000.
Chart courtesy of Trading View
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Source: New

Bitcoin Blockchain Costs Approx. $7 Million a Day to Stay Secure

It takes an average of $7 million every day to secure the Bitcoin blockchain network, according to Messari.
The cryptocurrency data portal published a new screener this Monday which outlined the revenues paid to miners for top proof-of-work coins. The Screener based its figures on new issuance and transaction fees, eventually finding that Bitcoin produced the maximum output among all the PoW assets, issuing $7.392 million worth of bitcoin tokens every 24 hours and distributing over $115,000 in mining fees.
Source: Messari
In contrast, Ethereum’s daily issuance rate was almost six times lesser at $1.85 million than that of Bitcoin. At the same time, it’s trading fees was nearly half at $58.23k than what Bitcoin network paid to miners. [Note: Ethereum is switching to proof of stake this year.]
Overall, both the Bitcoin and Ethereum networks were spending 0.1-percent of their current market capitalization.
Staying Secure
The issuance rate signified the daily amount miners were receiving to keep the concerned PoW network secure. Only Bitcoin and Ethereum networks were the ones that spent multi-millions to guard its operations against potential 51% attacks. At the same time, Litecoin was spending approximately $936 million, ZCash $400 million, and Bitcoin Cash $280 million for the same purpose.

BTC costs $7 million / day to secure.
ETH is less than $2 million.
Nothing else is in the seven figures.
New screener from @MessariCrypto is
— Ryan Selkis (@twobitidiot) March 25, 2019

Ideally, a hacker would need to outgrow a network’s combined issuance costs to overtake it. But before that even happens, he would need to set up resources such as land, electricity and mining machines. In the worst case scenario, hackers would likely pool their existing resources to take a PoW network down, or to modify data on its blockchain. Nonetheless, the move would end up harming the issued asset’s dollar valuation itself – based on low trust.
So, even if a hacker manages to pool all the resources and outbid bitcoin’s daily security rate of $7 million, his costs of launching an attack would be more than what he would earn in return.
A Bank’s POV
The banking and financial services sector has been the primary victim of cybercriminals over the past decade. The biggest US banks respond to such a security epidemic with big budgets. For instance, JP Morgan & Chase allocated around $500 million to cybersecurity in 2016. Crain reported that Citibank’s IT security budget touched $300 million. Yahoo Finance found that Wells Fargo was spending as much as $250 million every year to safeguard its online portals. If one adds it up, these three banks alone spent $1.5 billion to improve their cybersecurity. That makes it approximately $4.1 million every day.
And not to add, there are banks beyond the ones mentioned above. Their daily spendings on cybersecurity would easily surpass that of bitcoin.

Nevertheless, these banks are sizeable and cater for billions of people across the world. Whether or not Bitcoin’s blockchain would be able to handle such a size while retaining its security costs is a thing to watch out for.
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Source: New

Bitcoin [BTC] market resolute against manipulation, claims Bitwise report; dismisses SEC’s concerns

The purists in the traditional financial market realm have always believed that Bitcoin [BTC] can be controlled via a powerful computer network. A recent Bitwise report has, however, calmed allegations that the Bitcoin market is prone to market manipulation.
The report filed by Bitwise Asset Management was presented before the US Securities and Exchange Commission [SEC], in line with their recent application for a Bitcoin Exchange Traded Fund [ETF].
Market manipulation within the crypto-market has always been of concern to the SEC. The regulatory body in subsection 5 of Section 6(b) of the Exchange Act states that exchanges “are designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade.” The SEC often cited this subsection while referring to the volatile industry as being prone to frauds and scams.
Bitwise gave two arguments to satisfy the SEC Exchange Act of 1934, namely, unique resistance against manipulation/fraud, and a surveillance sharing agreement with a regulated market of a certain size. The investment firm, based on historical cases, added that the regulated surveillance-sharing reason was of “primary consideration”.
The report claimed,
“That the bitcoin market is protective against manipulation, and critically, that there is a significant, regulated and surveilled market for bitcoin futures.”
Bitcoin: The Commodity
In their defense of the top cryptocurrency’s lack of susceptibility to market manipulation, Bitwise claimed that “Bitcoin is the first digital commodity in the history of the world.” Here, it should be noted that the report hails Bitcoin as a “commodity,” and not as an “asset”.
Bitwise drew three core divergences in the character of Bitcoin to other commodities. Firstly, Bitcoin is fungible, meaning that the cryptocurrency was constant, irrespective of location, unlike natural commodities like gold.
Secondly, Bitcoin can be easily transported via a computer network. Lastly, Bitcoin can be traded on an exchange, allowing users to directly view the price and employ trading strategies for the same. Furthermore, there is an absence of representatives, advisers, and consultants in the decentralized currency realm as anyone is free to trade.
It must be noted that all the exchange volume analysis is based on the figures of 10 exchanges as they record “actual volume,” according to Bitwise.  The exchanges on the list are Binance, Bitfinex, Kraken, Bitstamp, Coinbase, BitFlyer, Gemini, itBit, Bittrex, and Poloniex.
The report added,
“These unique features allow the bitcoin market to be uniquely resistant to manipulation in critical ways.”
Bitcoin: Anywhere, Anytime
Bitwise juxtaposed the ability of the top cryptocurrency to resist market manipulation to scandals that have plagued other markets over the past few years. The report highlighted four key incidents, including the LIBOR scandal of 2012, the Global Forex Scandal of 2013, the Gold Fix Scandal of 2014, and the ASIC Scandal of 2016.
In all the aforementioned scandals, the common elements were a deliberate attempt at manipulating the market by large financial institutions, resulting in heavy fines levied on the culprits.
The traits of fungibility and transportability in the virtual currency market allowed the creation of arbitrage in the market. The opportunities for investors to make a quick buck due to price disparity between exchanges was reported by Bitwise as being negligible.
Given this dominance of market participants, global liquidity can stand in the way of market manipulation, increasing the inability of the market to fall prey to any sort of voluntary change.
Bitcoin: The Distributed Market
Bitcoin’s spread of volume and “distributed market” will prevent one exchange from holding the coin’s price hostage. Of the ten exchanges considered, no one exchange had pure dominance in terms of BTC volume. Binance accounted for the highest volume, chalking up 40.47 percent, and was followed by Bitfinex and Kraken with 13.94 percent and 11.67 percent respectively.
The report concluded by saying,
“The spot bitcoin market is highly fractured amongst ten exchanges, and no exchange has a majority share. This contributes to bitcoin’s unique resistance to market manipulation, as any attempt to manipulate the market must either be coordinated synchronously across multiple exchanges or must involve a significant spike of volume on a single exchange.”
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Source: AMB Crypto

Bitcoin [BTC] market more efficient as arbitrage on exchanges improved, says Bitwise Report

From the standpoint of investors, the cornerstone of the virtual currency market is its volatility. With price fluctuations at every corner, arbitrage-savvy investors would consider the cryptocurrency market a paradise. However, a recent report from Bitwise suggests otherwise.
The report presented to the SEC by the crypto-centric investment firm, Bitwise Asset Management, captured the arbitrage in the Bitcoin [BTC] market over the past 18 months. However, the crux of the research was the difference between actual volume and reported volume, which recorded a deviation of a whopping 95 percent.
It must be noted that the “arbitrage” in question refers to the variance in Bitcoin prices on exchanges, including Binance, Bitfinex, Kraken, Bitstamp, Coinbase, BitFlyer, Gemini, itBit, Bittrex, and Poloniex. This is because these exchanges pose “actual volume”, according to a prior study done by Bitwise.
Looking at the monthly average price deviation based on the price listed by the ten aforementioned exchanges, a consistent decline was seen in 2018. The price deviation in December 2017, when the Bitcoin bull-run began, was over 0.7 percent and since then, the deviation has not crossed 0.5 percent.
January 2018 saw the highest deviation in 2018, accounting for over 0.45 percent, which soon fell to under 0.1 percent by July. As the market went into a freefall after the Bitcoin Cash [BCH] hardfork, the deviation increased to over 0.15 percent. February 2019 saw the lowest deviation in over 15 months when a deviation of 0.05 percent was recorded.
Additionally, the average spread of the 10 exchanges varied from Coinbase Pro’s $0.01 to Bitfiniex’s $0.10, indicative of the accurate tracking between exchanges and small margin for arbitrage trading.
Bitwise cited three main reasons for the consistency in BTC prices across major exchanges. The primary reason was the launch of futures contracts by the Chicago Board Options Exchange [CBOE] and the Chicago Mercantile Exchange [CME] in December 2017. The report stated,
“[Bitcoin Futures] fundamentally transformed the bitcoin market, creating a two-sided market and easy hedging for the first time.”
The secondary reason was the surge in institutional interest, which Bitwise refers to as “institutional market makers.” Jane Street Capital, a trading firm was named by the report as a “leading market maker” entering the crypto-trading business in March 2018.
In July 2018, Europe’s largest ETF marker maker, Flow Trader, began making markets with the Swedish Bitcoin ETN. In the following months, several market makers followed Flow Traders’ lead and ventured into the crypto market. The report added,
“By summer 2018, most major market makers were either present in the bitcoin market or actively exploring the space.”
Cryptocurrency lending at the institutional level also provided immense impetus to the flattening of the arbitrage level, stated the third reason. Prior to the crypto-boom of December 2017, “modest lending” did take place but after the surge, the crypto-lending industry skyrocketed.
Bitwise cited the success of Galaxy Global Trading, a cryptocurrency lending platform, which processed over $1.11 billion in borrowings and lending in 2018 alone, with around 60 percent owing to Bitcoin [BTC]. According to the final quarterly report from the company, despite the decline in Bitcoin’s price, its loan records surged to $153 million active loans, a massive 15 percent increase from the previous quarter.
Based on the three factors presented above, the report suggests that the efficiency of the overall market in 2018 has seen a significant boost. This has allowed both retail investors and institutional investors to establish a commensurate foothold in the market. The investment firm hails this period as being a “dynamic, institutional-quality, two-sided market for the first time.”
Bitwise concluded:
“While future developments, including the proposed launch of a U.S. ETF, may be incrementally beneficial to the market, the spot bitcoin market today operates with an efficiency that matches or exceeds that of other major markets.”
Other findings of the report pointed out that the degree of difference between the Bitcoin Futures market and the Bitcoin Spot market is not as far apart as one might imagine. If adjusted rather than touted trading volume being taken into account, the BTC  Futures expressed as a percentage to their Spot equivalent rises from 1.51 percent to over 33 percent.
The post Bitcoin [BTC] market more efficient as arbitrage on exchanges improved, says Bitwise Report appeared first on AMBCrypto.
Source: AMB Crypto

Exclusive: Indian Bitcoin Users in the Dark Over Their Tax Liabilities

There is no doubt that India is among the most disoriented country when it comes to bitcoin regulations. When the Reserve Bank of India merely withdrew banking access to entities dealing in cryptocurrencies, the general public opinion misinterpreted it as an outright crypto ban. The ones who realized they could still trade crypto assets outside the RBI’s purview – using peer-to-peer systems – are now confused about their tax liabilities.
There are two conflicting perspectives among Indian bitcoin users. First, if they report profits made from cryptocurrency investments or trading activities, it would prove that they were using RBI-regulated banks secretly despite the ban. Second, if they conceal their earnings, they would be in a direct violation of the country’s capital taxation laws.
Fake Invoices
Under the ongoing ban, cryptocurrency users cannot enter the Indian fiat system. Banks in both public and private sector adhere to the guidelines set by the RBI, which means that their account holders have to follow the same rules indirectly. So if a user, say, sells a bitcoin token in an over the counter trade and receives Indian Rupees in return, he/she violates the RBI’s crypto banking ban. Generally, most of these traders are cash-settled, which leaves no means for RBI to detect their presence. However, traders using internet banking conceal such trades using fake invoices.

Since RBI has already banned Crypto dealings through bank, whether I have to pay #TAX on the income earned on Crypto investments and holdings?#taxoncrypto
— Crypto Kanoon (@cryptokanoon) March 25, 2019

On the promise of anonymity, the owner of a New Delhi-based over-the-counter cryptocurrency exchange told NewsBTC that they were conducting $4,000 worth of crypto-trades every day.
“Many a time, we have to create fake invoices for crypto transactions exceeding Rs 49,000 (~$711),” she said. “Generally, we make it look like IT support services.”
The owner explained that they were forced to take these measures because of the lack of cryptocurrency regulations, adding:
“I and my cousins were investing in bitcoin since 2015. We could not just dump everything following the RBI ban. We are ready to declare our assets and pay taxes if they create a law. But so far, they have not given any indication towards that direction.”
It is worth noticing that, in February last year, India’s Central Board of Direct Taxes, issued 100,000 tax notices to cryptocurrency traders and investors. Chairman Sushil Chandra said that they “felt” that profits made from cryptocurrency investments were a taxable event, citing finance minister Arun Jaitley’s vows to eliminate illicit use of cryptocurrencies.
Pending Supreme Court Case
The Supreme Court of India is now hearing a case challenging RBI’s authority when it imposed a banking ban on the crypto sector. India’s apex court earlier ordered the central bank to present their crypto regulation proposal’s first draft in four weeks, a deadline which is ending this March 29, two days before the fiscal year close.
RBI did not reveal whether or not it would ban bitcoin, considering the bank has remained mum over its perspective on crypto regulations so far. Based on the outcome, taxpayers could gain some clarity over how they should perceive their crypto investments. Till then, declaring crypto assets could push them to either side of the pit.
A clear catch-22 situation.

The post Exclusive: Indian Bitcoin Users in the Dark Over Their Tax Liabilities appeared first on NewsBTC.
Source: New

Bitcoin Could 1,000x To Overtake Fiat, Argues Venture Investor

Satoshi Nakamoto, the pseudonymous creator of the Bitcoin protocol, always expressed an inkling of mistrust and cynicism towards centralized institutions, including Wall Street and the incumbent government. And for many years, much of the broader crypto community echoed these thoughts.
Over the years, however, the underlying value proposition of Bitcoin and other digital assets have been misconstrued, especially as ‘get rich quick’ schemes have become a sector mainstay. But, some are still adamant that eventually, cryptocurrencies and related innovations will usurp the hegemony that fiat currencies have established for themselves.
Bitcoin To Replace Fiat, Crypto Could Eclipse $100 Trillion
In a recent interview with the Youtube channel “TheBitcoinofCryptoStreet,” Tim Draper, a known venture capitalist that loaded his crypto bags early, explained where he sees this market headed over the long haul.
He explained that as it stands, there is approximately $100 trillion worth of fiat currencies in circulation. While this form of money evidently makes up a majority of the flows, Draper argues that using such “poor” currencies is illogical, citing their controllability, lack of transparency, and subjectivity to political and social whims on the day-to-day.

And as the American investor argues that most of the brightest developers, engineers, and academics are working on digital assets — Blockchain Capital’s Spencer Bogart would agree — Draper notes that there could be a capital flight from fiat to crypto over time. He elaborates:
“My belief is that over some period of time, the cryptocurrencies will eclipse the fiat currencies. That would be a 1,000 times higher than what we have now.”
In a subsequent comment, Draper quipped that in five years’ time, when consumers walk into Starbucks using fiat, the baristas will “laugh at you.” He’s effectively implying that Bitcoin and other medium of exchange digital assets will be used in the place of traditional payment rails, like U.S. dollars, Euros, or Yen on Visa or Mastercard. 
Funnily enough, these remarks come just months after he predicted that a relatively mere 50% of the fiat market would migrate to cryptocurrencies. Regardless, the bottom line is that he sees long-term potential in the value of cryptocurrencies and their ability to overtake traditional currencies, which can and often are inflated each and every year.
A Blockchain-Only World
If Draper’s lofty dreams come to fruition, the world, by extension, will presumably be rife with systems based on blockchain technologies. And the long-time crypto proponent touched on this.
He explained that with a blockchain-only world, “our days would be so happy,” explaining that the technology liberates society from classical constraints. Draper notes that with decentralized technologies, government control is effectively revoked altogether, leading to a society that is, in general, more prosperous and equal in terms of wealth distribution.
Thought leaders and industry executives, like Ethereum’s Joseph Lubin, have recently made similar comments. At South By Southwest, which was attended by crypto pioneers such as the Winklevoss Twins, Lubin explained that in ten to twenty years, uch of the global economy will be in some way, shape, or form related to blockchains.
Draper Under Fire
While many embroiled in the crypto ecosystem would agree with Draper’s buoyant sentiment, the Bay Area investor has recently come under fire. In HBO’s recent documentary about the tech-heavy blood testing firm Theranos, titled “The Inventor” Out for Blood in Silicon Valley,” Draper made a surprising appearance.
Throughout the feature-length film, Draper, who invested in the now-scam Theranos, sported a royal purple tie studded in Bitcoin logos. Thus, some viewers of HBO may unconsciously associate questionable investment decisions with crypto.

2/ it’s @TimDraper in a bitcoin tie and i feel so conflicted!
is it good? is it bad? I DON’T KNOW WHAT TO THINK!?!
did anyone watch this scene and go “huh?”
k thanks for the chat
— Meltem Demirors (@Melt_Dem) March 20, 2019

But should his tacit involvement in this scheme, which he likely didn’t know about, discredit his comments on the long-term prospects of cryptocurrencies and blockchain?
Right now, not many can come to a conclusion, as they still see Draper’s Bitcoin-related thoughts as credible due to his previous successes and raison d’etre.
Related Reading: Tim Draper Paid $18 Million For His First Bitcoin Batch, What’s it Worth Now?
Yet, the fact that he wore a clear piece of unofficial Bitcoin merchandise may not give the public the best impression of cryptocurrency, as Theranos was revealed to have swindled not only the BTC enthusiast, but Walgreens, Safeway, and notable venture capitalists the world over.
Featured Image from Shutterstock
The post Bitcoin Could 1,000x To Overtake Fiat, Argues Venture Investor appeared first on NewsBTC.
Source: New

Bitwise: 95% Of Reported Bitcoin Trading Volume Is Fake

Bitwise: 95% Of Reported Bitcoin Trading Volume Is Fake
While many use CoinMarketCap as a go-to resource for cryptocurrency market data, roughly 95% of Bitcoin trading volume reported by this website is fake, according to Bitwise Asset Management report.
Bitwise: 95% Of Reported Bitcoin Trading Volume Is Fake

Continue reading at Coinspeaker
Source: CoinSpeaker