Crypto Analyst: Bitcoin Investors Are Underwater, But BTC Bounces Back Quickly

Bitcoin’s highly publicized meteoric rise to its all-time high of $20,000 in December 2017 was a classic bubble cycle at its peak. The media attention and hype from individuals talking about the crypto on social media and in social circles sparked FOMO (fear of missing out) in retail investors who eventually got burned when the price of BTC collapsed starting in January 2018.
Throughout the current bear market, due to early investors getting in long before Bitcoin went parabolic, collectively, investors were able to stay above water. But once support at $6K broke and capitulation set in, Bitcoin investors became deep underwater and are still drowning in losses since. However, according to data shared by a prominent crypto analyst, Bitcoin is “seldom underwater” and it could signal that investors could be seeing gains again in the future.
Bitcoin Investors Have Only Been Underwater for Under 2 Out of 10 Years
Bitcoin has been rightfully lauded for the asset’s ability to produce substantial gains not seen in traditional financial assets or investments. Even at current prices of roughly $3,600, from the first ever recorded BTC price of $0.003 represents a 120 million percent increase – gains that are typically unheard of in other markets.
Due to the first ever cryptocurrency’s rise from practically worthless, to nearly $20,000, there have been many opportunities for investors to become profitable in their journey alongside Bitcoin and rarely are investors underwater on their BTC holdings.
Related Reading | Bitcoin Bottom Doesn’t Matter, Last Time General Population Can Afford Entire BTC 
According to a price chart from CoinMetrics that approximates the price paid for all circulating coins – as was shared by prominent crypto analyst Willy Woo – Bitcoin investors are underwater for only the third time in the technological and financial breakthrough’s ten years in existence.

What I like about @coinmetrics’ Real Cap is that it approximates what was paid for all the coins in circulation. Right now, as an aggregate, investors are underwater. For savvy long term investors this is an exciting time. BTC is seldom underwater. pic.twitter.com/1wfdU0rEiK
— Willy Woo (@woonomic) February 13, 2019

Only two times before the current dive have investors went underwater.
At the tail end of 2011, Bitcoin took a three-month dip into the water starting around September when price fell from nearly $8 in late August, all the way down to roughly $2 in November of the same year. It wasn’t until December when BTC made a recovery and came up for a breath of air.
During the dreaded 2014-2015 bear market following the Mt. Gox disaster, Bitcoin again fell deep underwater in January 2015 and stayed there until early November of the same year.
In total, Bitcoin has spent only around 18 months out of the ten years since the Genesis Block with investors of the asset underwater. Given Bitcoin’s resiliency and ability to bounce back, the market may be closer to establishing the ever elusive bottom.

Bye-Bye BTC Bear Market? Not So Fast
While the data does show that Bitcoin investors falling underwater could indicate a bottom is in or at least near, the same data could also be a sad signal for bulls.
Should Bitcoin’s price follow a similar path and trajectory as the 2014-2015 bear market, and it has done so eerily closely thus far, investors in the asset may be stuck spending another 7-9 months underwater before a bull trend resumes.
Related Reading | Crypto Analyst Expects Strong Bitcoin Bounce, Monthly MACD Signals Bottom 
The previous time Bitcoin went underwater, it stayed there for 11 months before a relief rally occurred that wasn’t immediately batted down by overhead by bearish resistance. The current bear market only dove underwater following the break of critical support at $6,000 back in November of last year, which could suggest that the bear market has a lot longer to go before the end of crypto winter is here.
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Crypto Feud: TRON Founder Takes Shots at Ethereum Creator’s Twitter Follower Count

Since late November of last year, Bitcoin and the majority of other crypto assets such as Ethereum or Litecoin have continued to plummet to new lows. However, TRON, a cryptocurrency aimed at “decentralizing the web” has experienced solid and steady growth in value.
TRON’s positive price action was due largely in part to an upcoming airdrop for the new BitTorrent Token launching on the TRON blockchain as a TRC-10 token, along with a major developer conference featuring celebrity appearances from the likes of Kobe Bryant and more. The constant marketing hype and promotion put forth by TRON founder Justin Sun and the recent buzz TRON has experienced has earned Sun more followers than Ethereum creator Vitalik Buterin – something that Sun immediately took the opportunity to rub in Buterin’s face.
Justin Sun Rises In Twitter Followers, Sets Off To Rub it in Buterin’s Face
Hype machine Justin Sun created his Twitter account in August 2017 to help promote his new cryptocurrency TRON. The outspoken founder has earned himself a reputation for making announcements of announcements, which has also seemingly earned him a large Twitter following – one that rivals that of Ethereum co-founder Vitalkin Buterin.

Now we are both 832k. We started six year after you but we always know it is never too late. @VitalikButerin #TRON #BitTorrent #TRX #BTT pic.twitter.com/OTECzheO6U
— Justin Sun (@justinsuntron) February 10, 2019

Except Buterin’s Twitter account was started back in May of 2011, and features 3 times the tweets that Sun has amassed on the social media soapbox. By that comparison, Sun is right to be proud that his Twitter antics have amounted to a larger follower count than his peers. However, Sun took the opportunity to rub it in the face of Vitalik Buterin, co-founder of Ethereum and someone who often speaks out against TRON.
Just days ago, Buterin even referred to it and EOS as “centralized piles of trash.”
Related Reading | Tron Fundamentals Continue to Strengthen With New Exchange Partnerships
Twitter followers of both were quick to denounce Sun’s public dig at Buterin, and the continued public social media feud between the two crypto industry figureheads.

You should compare dick sizes next.
— A v B (@ArminVanBitcoin) February 11, 2019

Origins of the TRON and Ethereum Crypto Twitter Feud
While Sun’s sucker punch may seem like it came out of left field and was unwarranted, he has been on the receiving end of many negative remarks made by the Ethereum creator.
No comments were more confrontational than Buterin’s response to an infographic Sun posted highlighting the ways why “TRON is better than ETH.” The tweet listed seven potential reasons, and Buterin followed up with an eighth point suggesting that TRON had plagiarized the Ethereum white paper Buterin had personally penned.

8. Better white paper writing capability (Ctrl+C + Ctrl+V much higher efficiency than keyboard typing new content)
— Vitalik Non-giver of Ether (@VitalikButerin) April 6, 2018

Since that moment the two have repeatedly exchanged blows across ‘Crypto Twitter’, with no signs of a ceasefire in sight.
Related Reading | Justin Sun’s Tron “Marketing Stunt” Draws Sharp Reply Form Vitalik Buterin
In fact, we may not have heard the last from Sun, who is claiming he has a “secret campaign especially for” Buterin he’s going to launch on Valentine’s Day. No, it’s not a box of chocolates or flowers, and Sun later revealed that TRON’s Valentine’s Day campaign is somehow tied to late Cypherpunk legend Hal Finney – who is often said to be the person behind the Satoshi Nakamoto pseudonym.
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Investors Will Soon be Able to Buy Stocks With Bitcoin, Crypto Industry is Highly Optimistic

Part of the appeal of crypto and Bitcoin is that it allows investors to very easily buy into an asset, whereas investing in publicly-traded stocks often requires an investor become accredited first, or invest a substantial minimum amount to get started.
Popular crypto investing app Abra has announced they will be offering a way to use Bitcoin to collateralize stock and ETF contracts, enabling investors to invest in stocks that otherwise might not be available to them. The news already has the industry buzzing about the potential implications of Bitcoin used as a bridge into traditional assets.
Abra Launches Investing in Stocks and ETFs Using Bitcoin
Crypto investing app Abra has announced that investors can soon invest in “stocks, ETFs, commodities, cryptocurrencies, and fiat currencies,” all using one app.
The app is available in 155 countries. Abra intends to start with “popular US stocks and ETFs,” but will add more global assets in the future.
Related Reading | Analysts Watch for Crypto Decoupling, Stock Market Correlation
Like investing in Bitcoin itself, Abra’s new options require just a $5 minimum and the company is charging zero fees on trading traditional assets during 2019 for those that sign up for early access.
Abra’s stocks and ETFs will be offered through crypto-collateralized contracts using Bitcoin. An investor will need to own Bitcoin to use as collateral in order to gain exposure to another asset – stock, bond, ETF, and more – and when the contract is settled, the new value of the asset will be converted back into Bitcoin holdings.
Crypto Industry Optimistic Over Bitcoin Involvement
Following Abra’s announcement, “crypto Twitter” began discussing the implications the news has on the crypto industry and on the future of Bitcoin. The collective comments from top industry figures shows just how optimistic the industry is over Bitcoin’s use as a settlement layer enabling exposure into more traditional investment assets.

Abra announces the ability to invest in stocks and ETFs using Bitcoin
This is much, much bigger news than the Lightning torch if it works.https://t.co/wqEXG8C1qv via @MessariCrypto
— Ryan Selkis (@twobitidiot) February 6, 2019

Ryan Selkis, the founder of Messari – a brand recently at the center of an XRP market cap controversy – believes that the news is “much, much bigger news” than the Bitcoin Lightning “torch” that swept Twitter over the past couple of days, even attracting the attention of Twitter and Square CEO Jack Dorsey.
Related Reading | Twitter CEO Experiments With Lightning, Sends Bitcoin Transaction
Morgan Creek Digital founder Anthony Pompliano commented that it’s now no longer an “if, but rather a when,” referring to the inevitable tokenization of stocks, bonds, commodities and more that analysts believe could occur thanks to the emergence of crypto.

This is HUGE!!!!!!!!!!!!!!!! All #bitcoin-based!!!!!! Kudos to @billbarhydt & team for lassoing traditional financial assets into Bitcoin, instead of trying to pigeonhole Bitcoin into the status quo—as so many other #crypto companies are doing. Best wishes for tremendous success! https://t.co/ZXs0lhqs8Z
— Caitlin Long (@CaitlinLong_) February 6, 2019

Both Atlantic Financial CEO Bruce Fenton and co-founder of the Wyoming Blockchain Coalition Caitlin Long called the news “huge.” Long later added that it “expands the BTC owner universe” by opening up stocks to people in countries with low economic activity who otherwise wouldn’t be able to buy into these traditional assets.
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Bitcoin [BTC] News: Twitter CEO & Cash App Founder Jack Dorsey is a Bitcoin Maximalist & “One of Us”

Jack Dorsey, the Twitter founder is a strong Bitcoin believer with no interest for altcoins who recently talked about Bitcoin having the “greatest chance of being the Internet’s native currency” while passing along the Lightning Torch.
Bitcoin: Resilient, Principled & a Great Brand
Jack Dorsey, Twitter CEO and founder of Cash app that expanded support for Bitcoin trading in January last year is clearly a huge Bitcoin proponent which was further evident when he reaffirmed that Bitcoin could be the internet currency.
“[Bitcoin] was something that was born on the internet, that was developed on the internet, that was tested on the internet…It is of the internet.”
As for what excites him about Bitcoin the most, that it’s an internet currency,
“Everything. Mostly I think it has the greatest chance of being the Internet’s native currency. If you think of the internet as you would a country, that’s huge.”
He has been apparently making the most of the ongoing bear market as well by buying the dip as he replies to “Have you been buying in this $3k range?” with “I have.”
But looks like Dorsey is not only a strong Bitcoin believer but a Bitcoin maximalist as well. Twitter CEO only own Bitcoin and no other digital currency.
“Bitcoin is resilient. Bitcoin is principled. Bitcoin is native to internet ideals. And it’s a great brand.”

Jack has no plans to buy any other cryptocurrency in future 

And rejected Eth Twice,

Binance CEO, Changpeng Zhao even commented with a gif, “One of us,”

He even took a jab at Coinbase as one Bitcoin enthusiast said, “I need to be able to RECEIVE incoming bitcoin to Cash App!! Help me get off Coinbase for good!!”

Bitcoin support would also becoming “some day soon” on Cash App Canada. We could also see Twitter in future allowing users to send Bitcoin through, say a Bitcoin Tipping button as Dorsey supplied with, “We do have to pay attention to this, and will have some answer at some point.”
Lightning Torch Makes a Round Around the World
Jack Dorsey has also been the latest recipient of lightning Torch which he passed on to Elizabeth Stark, co-founder of Lightning labs.

A lightning network payment dubbed Lightning Torch has been making global rounds. Going from user to user, each one adds 10,000 satoshis to the initial amount of 100k satoshis. It has travelled across 39 countries and changed hands at about 150 times.

It all started on January 19 by an anonymous Bitcoin enthusiast, hodlonaut. You can track the Lightning Torch here.
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Source: CoinGape

Crypto Exchange Volumes Drop to Lowest Levels For Over a Year

As the crypto winter deepens with no sign of a recovery on the horizon contractions have been occurring across the industry. The two notable signs at the moment are shrinking exchange volumes and a drop in crypto related Twitter activity.
Trade volumes across all of the major crypto exchanges have plummeted back to levels not seen since 2017. According to research by Diar, exchanges could be set to enter a new plateau as volatility dwindles and markets cool off. So far 2019 has been particularly quiet has crypto markets pulled back in January.
The research added that Binance, the world’s top exchange by reported volume, has seen its worst period for well over a year as the Bitcoin/USD market has been slashed 40% since December 2018. According to Coinmarketcap.com Binance volume is currently at $640 million which is way down from the billions traded on the exchange this time last year.
Binance is not the only exchange to suffer. Coinbase has also recorded its lowest month since May 2017 as trade volume plunge amid a deepening bear market. OKEx is another one that has lost out with the reversal of a three month growth trend as volumes shrink. Gemini has shown a similar pattern to Coinbase as the declines are extended.

There have been several reports last year of fake volumes on some of the major crypto exchanges but there is no denying that figures have shrunk across the board over the past year.
Twitter Activity in Decline
In addition to the drastic drop in exchange volumes has been a decline in crypto related activity on Twitter, which has become the standard social media platform for the industry. Prominent crypto analyst Murad Mahmudov has observed that Bitcoin related tweets have dropped to levels back in 2014. He added that this was an extremely bearish sentiment which backs up claims that the crypto winter is far from over.

1/ This screams bearish.Tweets about Bitcoin at the same level as 2014 and lower than at any point in 2016, like nothing has changed.
That is an absolute disaster for the price in the medium-term in my opinion. pic.twitter.com/DTdsUepx1t
— Murad Mahmudov (@MustStopMurad) February 3, 2019

Murad has made a number of price predictions with the most recent seeing a dip to $1,700 for Bitcoin by the middle of the year. This would provide a key level to accumulate and a trend reversal has been predicted for the latter half of 2019 when the bear market final comes to an end.
The decline in Twitter activity and exchange volumes are unsurprising considering that markets have collapsed by over 80% over the past 12 months.
Image from Shutterstock
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Crypto Researcher: Bitcoin Interest On Twitter Drops, Very Bearish

Although many compare crypto and blockchain to the early stages of the Dotcom Bubble, some believe that it is much more than that. This simple belief that cryptocurrencies, like Bitcoin, are paradigm-shifting has led industry insiders to enlist the use of exotic, yet often eerily accurate indicators to forecast what’s to come for this budding space. On Sunday, this theme was only cemented, as a leading researcher employed social media statistics to convey a prediction.
Related Reading: Research Shows BTC Price Linked to Public Sentiment on Social Media
Bitcoin Related Tweets Waning
The Bitcoin community is no stranger to Twitter, Reddit, and other social media outlets. In fact, since the cryptocurrency came into being, the hundreds of thousands of enthusiasts that have grown a connection to the innovation have coalesced on Twitter, forming what is now affectionately known as “Crypto Twitter.”
Many argue that crypto’s seeming enamorment with digital social engagement, whether taking the form of 280-character eye-opening messages, Medium posts, in-depth Youtube videos, or the like, is no accident. As stated by Jack Dorsey, chief executive of both Square and Twitter, in a recent appearance on Joe Rogan’s world-renowned podcast, the cryptocurrency was born, lives, and thrives on the presence of the Internet.
So, it should come as no surprise that cryptocurrency researchers have sought to take advantage of social media-centric indicators to foresee eventual price action. While such methods of analysis would be deemed unorthodox, even zany in legacy markets, such as U.S. stocks, many think it is apt to weigh social concepts and trends in this nascent market, which is deemed inherently emotional by most.
Murad Mahmudov, a Princeton graduate turned crypto crusader and hedge fund hopeful, recently used BitInfo’s Bitcoin-related tweets measure to do some impromptu analysis. Mahmudov, who is a long-term believer in the potency of this asset class, divulged that tweets regarding the cryptocurrency have reached 2014 levels, lower than any point in 2016.

1/ This screams bearish.Tweets about Bitcoin at the same level as 2014 and lower than at any point in 2016, like nothing has changed.
That is an absolute disaster for the price in the medium-term in my opinion. pic.twitter.com/DTdsUepx1t
— Murad Mahmudov (@MustStopMurad) February 3, 2019

Explaining the importance of this statistic, Mahmudov remarked that it’s almost as if “nothing has changed,” adding that this is an “absolute disaster for the price in the medium-term.” He noted that this accentuates how there are “far fewer people who care about decentralized, sovereign, uninflatable currency” than it may seem from the surface, and how little effect 2017’s parabolic run-up had on this community’s size.
In fact, Mahmudov quipped that more than 99% of all humans on Earth, whether poor, rich or from any other socioeconomic background, don’t care about the values that Bitcoin’s raison d’etre exemplifies. And as such, Bitcoin’s popularity boils down to its potential as a speculative asset, rather than libertarian, anarcho-capitalist, or cypherpunk ideologies.
Not only is the cryptocurrency’s value proposition as a speculative asymmetric asset waning, but Mahmudov even commented that the overall weakness in the global macroeconomy, coupled with the fact that Bitcoin is still a risk-on asset, accentuates that this bear market is still in full swing.
With all this in mind, he noted that cryptocurrencies likely have further to fall, especially as so-called “value investors” seek to buy lower lows, rather than current prices.
$1,700 BTC Inbound?
Mahmudov’s most recent harrowing comment comes just days after he issued an eerie price prediction for Bitcoin. Per previous reports from NewsBTC, through the use of historical analysis and key technical levels, like the 200-week moving average (200MA), 300MA, and 400MA, he determined that Bitcoin’s “steady support” will be found at an MA300 of around ~$2,400. However, Mahmudov made it clear that Bitcoin could “wick down” to as low as MA350~400 in the $1,700 range, “due to past patterns and how particularly overstretched the 2017 bubble was.”
In even earlier reports, he touted this $1,700 price prediction — a seeming level of utmost importance in his eyes. Speaking to Tone Vays in a Youtube podcast, Mahmudov observed that for the most part, crypto assets, like XRP, Ethereum, and EOS, are still overvalued, thus indicating that more optimism needs to be fleshed out of this market.
Despite the mortifying comments, Mahmudov is bullish for Bitcoin’s long-term potential. In fact, he’s so bullish that he once stated that he wouldn’t logically spend the flagship cryptocurrency for at least a decade, as the asset’s potential upside and asymmetric risk profile makes it nonsensical to use BTC at current rates.
Featured Image from Shutterstock
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Twitter CEO Jack Dorsey: Bitcoin is Most Likely to Become Internet’s Single Native Currency

CoinSpeaker

Twitter CEO Jack Dorsey: Bitcoin is Most Likely to Become Internet’s Single Native Currency

Jack Dorsey remains bullish on Bitcoin believing that it will emulate the internet to gain mass adoption worldwide by becoming the Internet’s single native currency.

Twitter CEO Jack Dorsey: Bitcoin is Most Likely to Become Internet’s Single Native Currency

Continue reading at Coinspeaker
Source: CoinSpeaker

XRP’s tweet volume has a stronger correlation to its trading volume than Bitcoin [BTC] or Ethereum [ETH]

XRP community is one of the most active and passionate crypto-community in the space and according to data from “The Tie”, XRP’s Tweet volume is directly correlated to the Trade volume of XRP.
In addition, XRP has the strongest correlation when compared to the dominant cryptocurrency, Bitcoin or Ethereum.
The Tie tweeted:
“Interesting look at how correlated #XRP tweet and trading volumes are. It appears as if spikes between trading and tweet volume occur in uniso. In some cases it is tweet volume leading spikes in trading, in other cases it is trading leading tweet jumps”
Source: The Tie
From the above chart, on October 2, 2018, the tweet volume of XRP and the trade volume spiked in unison. The same happened on other occasions such as in the month of December 2018 and also in January 2019. However, in November 2018, the trade volume spike prior to the tweet volume.
Although empirical, this comparison between the tweet volume and trading volume draws a conclusion of how the sentiment of the people in the community affects the trading of a particular asset.
Moreover, the same sentiments can be seen in other cryptocurrencies but with less correlation as compared to XRP. The below chart shows the same for Bitcoin. While Bitcoin does have similarity, the correlation is not as strong as XRP’s.
Source: The Tie
Ethereum has far less correlation with its trade volume and tweet volume as compared to XRP as seen in the chart below.
Source: The Tie
XRP, once the second largest cryptocurrency has now fallen down to become the third largest cryptocurrency by market cap as per data obtained from CoinMarketCap.
This comparison attracted a lot of critiques who argued that Twitter volume has nothing to do with the price movement.
A Twitter user, Goatmuscle commented:
“Its almost common practice for investment houses to pump chosen stocks on Trading Social Media. ‘Rampers’ & ‘de-Rampers’ are paid by larger corporate entities to help drive the market in a chosen direction… there are many examples on the web if you look hard enough…”
Tiffany Hayden replied:
“It’s also common practice for crypto enthusiasts to turn to Twitter for info and also to connect with others. Assuming people tweet to pump is wrong… It’s also becoming common practice for service providers to answers questions on social media.”
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Source: AMB Crypto

Study: Pump and Dump Schemes have Negligible Effect on Crypto Markets

A study by the Massachusetts Institute of Technology has revealed that machine learning can identify crypto pump and dump schemes before they happen. It arrived at a figure generated by fraudulent trading which is a tiny fraction of the total trade volume.
$7 Million Monthly Volume From Pump and Dumps
The study went on to reveal that there are at least two pump and dump schemes per day which generate $7 million in trade volume per month. NewsBTC’s daily crypto market wrap often identifies a random altcoin that is pumping for no apparent reason. However, in the grand scheme of things this figure is negligible when compared to a daily trade volume of around $15 billion.
In February the US Commodity Futures Trading Commission (CFTC) issued a specific warning about these types of scam, and regulators have begun to actively pursue the perpetrators. According to the regulator these schemes are considered as securities fraud. Research carried out at Imperial College London looked into pump and dump schemes in detail in order to develop an algorithm that can detect them.
The report highlights how pump and dumps are orchestrated as the organizer quietly accumulates an obscure altcoin before announcing a pump is about to begin on social media. Once the announcement, usually on Twitter or Telegram, has been made traders load up buy orders and the price begins to spike. The organizer then sells off his stash as the pump reaches a peak resulting in a dump back to previous levels.
As an example the researchers studied a single pump and dump scheme that occurred on November 18. The Official McAfee Pump Signals channel with over 12,000 members was monitored to glean details on the scheme. The chosen altcoin was BVB, worth around 35 satoshis at the time.
“We notice that the first buy order was placed and completed within 1 second after the first coin announcement. After a mere 18 seconds of a manic buying wave, the coin price already skyrocketed to its peak,” said the researchers noting a peak of 115 sats.
The speed of the operation was key as anyone entering the trade after around 18 seconds would not have made a profit. This was just one example but the study noted 236 other pump-and-dump events that took place between July 21 and November 18. The researchers used the historical data from known pump and dumps to train a machine learning algorithm to identify signs that a one is about to occur.
Cyptocurrency scams are not likely to go away anytime soon so identifying and being aware of them is all part of the evolution of this ecosystem. A few people make a little money out of pump and dumps but the effect on the market as a whole is negligible.
Full study can be found here: https://arxiv.org/abs/1811.10109
Image from Shutterstock
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Move over Twitter: Crypto Scams Have Infiltrated Facebook

While cryptocurrency-related scams are commonplace on Twitter, Facebook users have started being targeted by scammers with fake cryptocurrency ads.
Facebook Users Targeted with Fake Crypto Ads
Twitter has been widely plagued with cryptocurrency-related scams, typically through phony giveaways that lure users into sending crypto in exchange for a larger sum. The scam is so frequent and so commonplace, that scammers may have reached a level of saturation on that social media platform, and have since turned to its social media rival, Facebook.
A string of sponsored ads promoting a fake cryptocurrency has been spotted on Facebook. In this particular scheme, the cybercriminals behind it aren’t looking to steal cryptocurrencies from Facebook users, they’re trying to gain access to sensitive user data, including credit card information.
Hard Fork says the ad redirects users from Facebook, to a site mimicking CNBC, which does indeed report on cryptocurrencies like Bitcoin and Ethereum. The site offers Facebook users the chance to get in on a “big investment opportunity” and provides info on a fake cryptocurrency called CashlessPay.
Related Reading: Facebook Has a Change of Heart, Reverses Ban on Crypto Ads
The website also features all of the common red flags the U.S. Securities and Exchange Commission (SEC) points out on their HoweyCoins educational website designed to teach investors how to spot fraudulent initial coin offerings (ICOs). These signs include a celebrity endorsement by British serial entrepreneur and investor Sir Richard Branson, and the promise of turning “today’s breakfast money” into “something big within a week.”
Clicking through the counterfeit CNBC site leads to the CashlessPay fake crypto site itself, and completing the registration process further sends users down the scam’s rabbit hole to phony cryptocurrency exchanges hosted in Bulgaria.
Facebook May Regret Its Move to Reinstate Crypto Ads
At the start of the year, Facebook, Google, and others banned cryptocurrency-related ads outright – fraudulent or legit – from their advertising platforms. The move was highly controversial, and many point to the ban as what kicked off the current bear market.
However, back in June, Facebook updated its advertising policies to allow some pre-approved cryptocurrency advertisers to market on the popular social media platform. It appears that somehow scammers have found loopholes in Facebook’s policy.
Related Reading: Twitter on the Defensive, Blames Third-Party App for Recent Scams
One such way the scammers are able to spread their message via sponsored ads, is through existing popular accounts similar to what happens on Twitter.
There, a prominent user’s account – such as Elon Musk, CEO of Tesla – is hijacked and used to dupe users. In this case, musician Jonatanas Kazlauskas’ page was used to promote the scam. At this time, though, it is not clear if Kazlauskas’ 7.4K follower page was compromised or if the musician is directly involved in the scam.
Twitter has been plagued with similar scams throughout the year, and has mostly been defenseless against the swarm of scammers preying on social media users. Twitter recently said it had implemented some new security measures, which may have caused some scammers to seek Facebook as a new hunting ground.
Featured image from Shutterstock.
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Ron Paul Poll: 50% in Favor of Bitcoin as Long-Term Investment

Former U.S. House Representative Ron Paul recently polled his Twitter followers on which long-term investment vehicle they’d prefer if given a $10,000 gift and the choice of what to invest in. The overwhelming majority selected Bitcoin as their choice for a 10-year hold.
Ron Paul Twitter Poll Shows Preference for Bitcoin
Ex-Texas Congressmen and thrice-failed Presidential candidate Ron Paul took to his Twitter soapbox this week.
He was seeking an answer to what his followers would choose if given a gift of $10,000 and the option of which investment instrument to put the cash into for the long-term. The only catch was the investment of choice needed to be held for 10 years.
The poll offered up the choice between Federal Reserve notes, United States 10-Year Treasury Bonds, gold, and digital gold: Bitcoin – which has recently reached new one-year lows after 11-months of an ongoing bear market.
Bitcoin received the highest number of votes at 50% of all respondents. Federal Reserve Notes, 10-year Treasury Bonds, and gold all received 2, 11, and 37 percent of the vote, respectively.
Considering the return alone of each asset type over the last decade, it shouldn’t come as a surprise that Bitcoin received the overwhelming majority of votes, even despite it being a relatively new, often misunderstood, and even demonized asset for its use in criminal activities, conspiracy around price manipulation, contributions to energy consumption, unrivaled price volatility, and more.
Related Reading: Survey: 72% of Institutional Investors Believe Crypto Prices Would Rise in a Recession
10-Year Investments: A Comparison Against Bitcoin
Federal Reserve Notes is just another term for USD paper currency, meaning the $10,000 would be held directly in cash for 10 years. Given the fact cash isn’t technically an investment vehicle and can actually lose value over the course of 10 years due to inflation, it’s not shocking to see this option receive the least amount of the votes.
U.S. 10-year Treasury Bonds have offered investors return rates that have fluctuated between 2-3% over the last 10 years. Treasury Bonds are considered among the safest investment types as there is virtually no default risk, given the fact the government can just print more money to pay off its debts.
Over the last 10 years, gold has provided investors with a 65.7% return, all while providing peace of mind. Gold is often considered a safe-haven asset during times of uncertainty. And with many financial and economic analysts predicting a global market crash and subsequent recession on the horizon, gold is a sound 10-year investment.
Bitcoin however, over the 10 years since inception has gone from being virtually worthless, to being worth $20,000. Even at Bitcoin’s currently traded price of around $5,000 – the digital gold equivalent, as its pegged – has brought investors over 166 million percent gains over the last 10 years.
There’s a saying in cryptocurrency investing suggesting to “never invest more than you can afford to lose” that does put Bitcoin in a category by itself in terms of risk, but since the $10,000 was a gift in the first place investors are even more willing to put their investment at risk for a chance of substantial wealth.
Considering the exponential gain outlined above stacked against extremely moderate returns by comparison, it’s almost more surprising that Bitcoin didn’t receive an even larger number of the votes.
Featured image from Shutterstock.
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Twitter Implements Scam Safeguards, but Google’s Account Still Gets Hacked

Twitter has been on the losing side of an ongoing battle with scammers who are leveraging the platform’s user base to steal cryptocurrencies. However, the company has revealed that it’s implemented some safeguards in an attempt to reduce the frequency of such scams and better protect its users.
Twitter Issues Statement, Implements Scam Countermeasures
Twitter, the popular social media platform originally known for limiting discussion to 140 characters, has been fighting a growing trend where cybercriminals hijack accounts – often verified accounts – of major brands, big-name celebrities, and cryptocurrency industry executives and entrepreneurs.
The likenesses are imitated, and then used to lure users into sending a small sum of cryptocurrency to a scammer’s wallet, with the promise of a larger sum being sent in return. Except the sending user is left high and dry after they realize they are not only getting the promised larger sum, but that they’ve lost the initially sent assets as a result of the scam.
Related Reading: Crypto Scammers Steal $150K Posing As Elon Musk
Yesterday, one of the U.S.’s largest retail chains, Target, had their verified account of 1.92 million followers hacked.
A posted tweet on it stated that it was doing a cryptocurrency giveaway that led to over $38,000 in Bitcoin being stolen from Target’s customers. Target issued a statement apologizing to its customers and explaining the situation. However, the retail giant cannot be too pleased with the way Twitter has allowed this problem to run rampant on its platform, and continue to escalate.
Following the incident, Twitter issued a statement.

“We’ve been in close contact with Target this morning and can also confirm that their account was inappropriately accessed for approximately half an hour, after which we swiftly locked the account so Twitter could thoroughly investigate the issue,” the company told Hard Fork.

Twitter also claimed it had discovered additional security breaches, and has since implemented some countermeasures aimed at thwarting future attempts from cryptocurrency scammers.
Google’s Account Hacked Following New Countermeasures
Not even hours later after Twitter’s statement, the G Suite verified account owned by Google was also breached, and used for wrongdoing. The G Suite account has over 800,000 followers, meaning that well over 2.5 million users were exposed to scammers in less than 24 hours due to the social media giant’s inability to stop the spread of the ongoing issue.
Google removed the tweet, and said they were “investigating with Twitter now.”
The company appears to be defenseless in the fight against these cybercriminals, which are said to reach as many as 15,000 bots as part of a growing botnet designed to scam Twitter users out of their crypto.
Jack Dorsey, Twitter’s CEO, claimed the firm was “on it,” and began exploring using “untapped potential” blockchain offers as a way to improve transparency and accountability on the social media platform.
Featured image from Shutterstock.
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Target’s Official Twitter Account Falls Victim to Bitcoin Scammers, Google Becomes the Next

CoinSpeaker

Target’s Official Twitter Account Falls Victim to Bitcoin Scammers, Google Becomes the Next

Cryptocurrency scams stand up on a new level as nowadays the biggest industry players are caught into a trap of the frequent Bitcoin frauds.

Target’s Official Twitter Account Falls Victim to Bitcoin Scammers, Google Becomes the Next

Continue reading at Coinspeaker
Source: CoinSpeaker

BCH Fight: Bitcoin Cash Bashing Heats Up, Rivals Duke it Out Ahead of Hard Fork

The cryptocurrency industry is still in its infancy, or so we keep being told. That infancy, or childishness, is often revealed on the crypto-sphere’s primary tool for communication, Twitter. No greater example has been seen than the recent battles between rival camps over the upcoming Bitcoin Cash hard fork.
Three Camps, One Vision
The Bitcoin Cash hard fork, set for November 15, is part on an ongoing network upgrade published in its roadmap. It is a high possibility that the two or even three versions of the fork will be updated from BCH in different ways. The three current proposals are Bitcoin ABC, Bitcoin SV (Satoshi’s Vision), and Bitcoin Unlimited.
The first version is Bitcoin ABC which is essentially Bitcoin Cash in its current state with no major changes aside from a few network updates. This was founded by Bitcoin’s own ‘antichrist’, Roger Ver, last year when it split from the original chain in order to increase block size for faster transactions at lower cost. It currently has the majority of the mining power.
Bitcoin SV is an opposing liberal branch led by the man often referred to as ‘Faketoshi’, Craig Wright. Its vision is to overwrite existing code and increase block size even further, from 32Mb up to 128Mb in order to scale the network even further. It does not have the community support of the other two.
In the third corner is Bitcoin Unlimited which is a compromise between the two above headed by lead developer, Andrew Stone. The upgrade gives more voting power back to the miners to select the changes they want in the network. This would be achieved by switching to the Bitcoin Unlimited client and submitting a Bitcoin Improvement Proposal for proposed changes.
BCH Fight
The social media outbursts and claims from some of these ‘crypto pioneers’ leading up to this technological division have been a source of entertainment in themselves so here are a few …

And, no you ABSOLUTE cuck
Bitcoin IS not even close to a soy boy commitee
It is all use hard assed buggers bending you over to show you the light.
It is capitalism. Enjoy pic.twitter.com/oLsr2I407v
— Dr Craig S Wright (@ProfFaustus) November 13, 2018

The #BitcoinCash Civil War camps, $BCHSV $BCHABC summarized in a few quotes by @ProfFaustus who advocates Bitcoin Satoshi Vision and @rogerkver on the side of Bitcoin ABC. Billions at stake for both sides… Who is right at the end? $BCH #November15th #HardFork pic.twitter.com/s0KyKd94Si
— Global Chain (@global_chain) November 14, 2018

BTC supporters are too incompetent to even keep the blocks full like they want. #FAIL https://t.co/7BkqaVqLZS
— Roger Ver (@rogerkver) November 1, 2018

The whole BCH community are working together to kick Fake Satoshi out. The resisitence against cult leader proves the inner strength and sophistication of the BCH ecosystem!
— Jihan Wu (@JihanWu) November 9, 2018

Will be interesting af to see how the $BCH hash rate reacts when #Bitmain turns on 70,000 asics to signal for $BCHABC.
Does the crazy CSW have a hidden move for $BCHSV to outpower @JihanWu and @rogerkver?
This #Decentralised hash war is gona be so exciting for the bystanders
— Crypto Galacticos (@CryptoGalactico) November 13, 2018

If @jihanwu, @Rogerver & ABC devs want to make #Permissionless Kiddie porn sites and Silk Road Version2.0
They can piss off to #Dash
They are NOT adding this to #BCH
This is the ONLY real use case they have and it is not happening!
— Dr Craig S Wright (@ProfFaustus) November 8, 2018

Bitcoin maximalists on the other hand are reveling in it all, harking back to their own battles when BTC split back in November 2017 to create the BCH fork;

Oh well.. Karma's a $BCH. ¯_(ツ)_/¯
— WhalePanda (@WhalePanda) November 13, 2018

 
Regardless of ideology or fork preference, the petty squabbling is detracting from the real enemy, at least according to the original Satoshi; the centralized banking system. Essentially everyone wants the same thing, to improve the system, but they can’t seem to get over their egos to come to a human derived consensus yet. And so the tweet wars continue, at least until tomorrow when it looks like the miners will decide. Current stats on miner, node and hashrate divisions between all versions can be found on Coin.dance.
 
Image from Shutterstock
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Bitcoin Blackmail Scam Terrorizing Paradise Valley Residents

A local Arizona police department is warning residents in the area of a potential blackmail scam involving Bitcoin.
Paradise Valley Residents Receive Threatening Letter Demanding Bitcoin
Paradise Valley, Arizona police department is warning residents via its official social media accounts of a blackmail letter being sent around that attempts to scare recipients of the letter into sending Bitcoin or risk having their dirty laundry exposed. The letter, which appears to try and extort $9,200 in Bitcoin from Paradise Valley residents, was sent by snail mail and includes text threatening to expose “evidence” of an affair.

“I know about the secret you are keeping from your wife and everyone else,” the letter reads.

The blackmail letter is authored by a criminal going by the alias GreyCircle54 and claims to know about a “secret” and even claims to have “evidence” of this secret. GreyCircle54 essentially claims that they weren’t specifically targeting the person, and did not “go out looking to burn” the recipient of the letter, however, they happened to discover the “evidence” and are using it to threaten innocent individuals that may have a guilty conscience.
Related Reading: Another Rapper Sued in Alleged Crypto Scam
GreyCircle54 gives the recipient two “paths:” pay up, or be exposed.
The scam is only effective if the recipient is having an affair, however, it was enough to frighten Paradise Valley residents into reporting the issue to the local authorities. Police have a copy of the letter as evidence.
Bitcoin Blackmail Scam Makes Return After FTC Warning
This isn’t the first time this Bitcoin blackmail scam reared its ugly head. Back in August, the United States Federal Trade Commission (FTC) Division of Consumer and Business Education, whose mission is to educate consumers on how to protect themselves, issued a warning via a blog post entitled “How to avoid a Bitcoin blackmail scam.”
The FTC back then called it a “new” scam targeting men, and denounced the practice as a “criminal extortion attempt to separate people from their money.” The FTC recommends anyone who receives a similar letter report it to local authorities, as residents did in Paradise Valley, or to report it to the Federal Bureau of Investigation (FBI).
Beware of Bitcoin Scams in By Mail, and on Social Media
Cyber criminals are always seeking ways to part investors from their cryptocurrency assets. However, by being extra careful and paying attention for warning signs, scams can often be identified before falling prey to a scammer. The FTC points out that scams like the Bitcoin blackmail letter often contain “classic signs” like “threats, intimidation, and high-pressure tactics.”
Related Reading: Indian Teen Threatens to Blow Up Airport Over Bitcoin Scam
Another classic warning sign: If something looks too good to be true, it probably isn’t. Such is the case with another type of Bitcoin scam, in which Twitter accounts market a “giveaway” to their followers. Twitter users are invited to send a small portion of a cryptocurrency to a wallet address, and in return, the user will receive a much larger sum of cryptocurrency. The “giveaway” is often riddled with spelling errors, and it makes little sense for corporations or public figures to give cryptocurrency away or need to receive some in advance to be able to send more in return – yet thousands of dollars worth of Bitcoin are lost to these scams daily.
 
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