BTC to Experience Biggest Annual Loss yet if It doesn’t Reach $5,959 by the End of the Year

Andres Chavez
-
0
BTC to Experience Biggest Annual Loss yet if It doesn’t Reach $5,959 by the End of the Year

The year 2018 started as a promising year for Bitcoin and most of the altcoins in the top 20 according to market cap. In January, the world’s premier crypto asset was worth more than $19,000 and approaching towards the $20,000 threshold after a multi-week surge that started at the end of 2017 and peaked in late December. After January 14th, the market started to correct itself, but the downturn that came after that was surprising, to say the least.

Bitcoin (BTC) price continued to drop all year long, with short spurts of stability. For most of October and November, it hovered between $6,000 and $7,000, but another astonishing collapse took over the industry on Wednesday, November 14th.

Starting from that day, BTC fell over and over again: first, it dropped below $6,000, then it fell from $5,000, and when we thought further cuts were impossible, its value was less than $4,000. For days, it shed at least 5 percent of its price, often more than that. Today, the battered asset is exchanging hands at $3,782.08, which would represent a -4.78 percent balance on the day.

14-Month Lows are Hard to Come back from

The digital asset has hit 14-month lows in its recent skid and has left investors, institutions, and the whole community wondering whether this is rock bottom or if there is further room to go down. The most important takeaway is that Bitcoin is on track for its largest yearly loss to date.

If we take into account the fact that three weeks ago BTC was trading at $6,300, we are talking about a 54 percent year-to-date drop, according to data found in the CoinDesk’s Bitcoin Price Index (BPI). In October, BTC dropped to as low as $6,000, but even back then, most of the actors within the industry thought that it would regain some steam in the last few weeks of the year.

Then, November happened. And for weeks, there was the talk of a bullish market, but the bears are still dominating the scene, making a year-end recovery to previous levels unlikely, at least in the short term.

At the end of the day, the current projection has Bitcoin ending the year with a 73 percent annual price fall, which would be the biggest ever recorded in its brief history. The asset has been around since 2009, and never had to endure such a harsh yearly drop. Prior to 2018, BTC had a streak of three years gaining value.

Only One other Annual Loss to Date

In fact, the cryptocurrency only experienced one other annual loss, and it was a 57 percent drop back in 2014 when there was not as much media exposure as there is today. If the prices hold below $5,959, we would be talking as the single biggest annual loss in the history of Bitcoin, and right now, when it is below $4,000, the outlook looks bleak.

However, as it happened last year, Bitcoin also has shown its power by gaining value quickly, so we should not rush to conclusions just yet. But technical charts are not providing much hope for the near future, according to Coindesk.

Coindesk reports that the symmetrical triangle breakdown seen in the last four-hour chart is swinging towards a test of the November 25th  low of $3,474, and that acceptance below that level would mark a bear grip and open up the further potential to drop.

By Andres Chavez

 

U.S. Department of Treasury Urges Crypto Industry Actors to Fight the Illicit Use of Assets

Andres Chavez
-
0
U.S. Department of Treasury Urges Crypto Industry Actors to Fight the Illicit Use of Assets

Cryptocurrencies have come to improve the way we manage money. Thanks to their decentralized nature, we can firmly say that we are our own “banks” without having to rely on any external institutions. However, and sadly, some people have used them for illegal purposes.

Sigal Mandelker, who acts as the United States’ Under Secretary for Terrorism and Financial Intelligence while representing the US Department of Treasury, extended a petition for the crypto community to help prevent the illicit use of these digital assets.

Coping with New Technologies

Mandelker delivered a speech this week, most precisely on December 3rd, at the Financial Crimes Enforcement Conference. She explained that all emerging technologies come with a significant amount of risk, and the ones relating to cryptocurrencies need to be mitigated since they can be used for evil purposes.

While it is true that most of us have control over what to do with our crypto assets, Mandelker stated that it is in the hands of financial institutions and cryptocurrency services providers to try to force a stoppage in illicit acts and not helping the bad actors harm the reputation and security levels within the industry.

“The digital currency industry must harden its networks and undertake the steps necessary to prevent illicit actors from exploiting its services,” she said, possibly referring to crypto exchanges, wallets, and other service providers within the field.

Combating Money Laundering and the Financing of Terrorism

Regulatory frameworks need to be strengthened, too, according to Mandelker, which would be a responsibility for international regulators through anti-money laundering (AML) and Combating the Financing of Terrorism (CFT) regarding cryptocurrencies.

The AML, says Mandelker, needs to supervise and enforce the law, and there is supreme importance in sanctions obligations. “The lack of AML/CFT regulation of virtual currency exchangers hosted wallets, and other providers — and, indeed, of the broader digital asset ecosystem — across jurisdictions exacerbates the associated money laundering and other illicit financing risks.”

The US Department of Treasury recently adopted a new approach to track illicit actors who used cryptocurrencies and other innovative technologies to perform their shady acts, such as money laundering and transferring funds of dubious origins: these criminals implemented the “SamSam” malware, which has changed the fate of 200 victims so far, some of them being public organizations.

Mandelker explains that in the scheme, two Iranians served as helpers in the exchange of the ransom, paid in Bitcoin, to Iranian rial for the hackers involved. The two facilitators are now, since last week, on OFAC’s Specially Designated Nationals and Blocked Person’s (SDN) list. “For the first time ever, OFAC attributed digital currency addresses associated with designated individuals,” Mandelker said.

In the same vein, several countries around the world are taking the matter of security in crypto-related assets very seriously. For example, the Estonian Ministry of Finance recently announced that it will add amendments to a financial bill made to tighten regulation in this front.

The bill will make sure to include “virtual currency exchange service providers” and “virtual currency payment service providers.” Prior to the introduction of the bill, the correct term to treat the assets was “alternative means of the payment service provider.”

By Andres Chavez

EU Nations Join Forces to Promote Blockchain Adoption

Andres Chavez
-
0
EU Nations Join Forces to Promote Blockchain Adoption

Global blockchain adoption has long been the key to the industry’s long-term success. It is the only missing ingredient in an otherwise impressive set of features and advantages, and while the road to cover is still long and tedious, advances have been made in the last few months in several locations.

The most recent positive news development regarding the subject comes from European soil. This week, some European Union members have come together in an effort to promote the use of the blockchain technology with the intention of using it to improve services provided by the respective authorities, as well as to achieve financial well-being.

The countries in question announced on Tuesday the signing of a “joint declaration” in which they acquire the compromise of promoting the adoption of the blockchain technology in the region in order to “transform” their respective economies. They are also committed to collaborating in technology development as the EU aims to become one of the planet’s leaders in this regard.

The Actors behind the Document

The six nations that signed the agreement were Spain, Portugal, France, Italy, Malta, and Cyprus. The joint declaration was agreed upon and signed in the city of Brussels, the capital of Belgium, on Tuesday, December 4th.

In the document, the signees state that “the blockchain has the potential to be a game-changer” in several industries and applications. According to the document, it can increase efficiency and transparency in services provided by governments, ranging from health care, transport, education, and others. For citizens, its global adoption would mean “accountability and privacy for the end-users.”

“This can result not only in the enhancement of e-government services but also increased transparency and reduced administrative burdens, better customs collection and better access to public information,” it could be read in the declaration.

Regulatory issues surround the adoption of blockchain technology. Regarding the situation, the group of signees stated in the document that they “believe that any legislation on Distributed Ledger Technologies should take into account the decentralized nature of such technology and should be based on European fundamental principles and technological neutrality. It should also allow innovation and experimentations in order for the public and private sector to better understand the Distributed Ledger Technologies and to develop use cases.”

Malta, One of the Pioneers in the Quest for Mass Adoption

Malta’s authorities are excited to officially form a block of European countries to support and promote the application of blockchain technology as a solution for many of the issues that could use optimization and improvement, such as mobility, shipping, land registry, customs, company registry, and others. Silvio Schembri, who currently acts as Malta’s parliamentary secretary for digital economy, financial services, and innovation, took its happiness to Twitter on Tuesday and wrote that he was “proud” that his nation, the smallest of the EU, was embracing a “leading role” on promoting blockchain adoption.

European countries are not only promoting the blockchain technology as an all-around solution, but they are also experimenting with it on a wide scale.

‏By Andres Chavez

GM Proposes the Blockchain as a Solution for Automated Vehicles

Andres Chavez
-
0
GM Proposes the Blockchain as a Solution for Automated Vehicles

American automobile giant General Motors has recognized the utility of engaging in blockchain-based projects and does not want to be left off the party. On Monday, the company made the news thanks to a futuristic announcement.

GM is looking to develop a blockchain network that can manage data from future fleets of automated vehicles. The piece of news was published by the U.S. Patent and Trademark Office, and details how automated (self-driving) cars can be able to store all their data with the help of the distributed ledger.

The mentioned data would be able to be shared among people in the blockchain, according to the project developed by GM Global Technology Operations LLC. It would be especially useful in navigation.

“It is desirable to provide locations information and densities of vehicles in regions in an online blockchain ledger for interoperable information sharing between vehicles of participants for using in navigating routes,” the document reads.

An Innovative Approach for Data Sharing

General Motors is also proposing data sharing between different independent platforms: for instance, data can be stored, shared, and distributed in an all-inclusive network with agents such as local authorities, airports, and others. Such a system would, according to the document found in the U.S. Patent and Trademark Office, help assess the “validity of permits and licenses to operate as hacks, taxis, or other for-hire services.” It means that vehicles can be ticketed to help them publish their data in a blockchain administrated by a public authority. Payments such as tools, parking, and other situations can be tied to the system, according to the filing.

General Motors has made no secret about its investments and focus on autonomous vehicles, having announced back in March that they would start making these cars by next year. Another area of interest regarding the automobile firm is the blockchain, as it is evident by its alliance with BMW to establish the Mobility Open Blockchain Initiative (MOBI) with the intention of “pushing innovation in the blockchain-auto space,” according to Coindesk.

While details about GM’s intentions and plans regarding the use of the blockchain technology in offering enhanced security for distributing important data between automated cars and other entities, the application was initially submitted in May.

A Little More about General Motors

One of the biggest and most successful automobile manufacturing companies in the United States of America and the whole world, General Motors, often shortened to GM, is a multinational corporation with headquarters in the city of Detroit.

Since 1908 (an astonishing 110 years ago) it has been designing, manufacturing, marketing and distributing all kinds of vehicles and their parts. The original founder was William C. Durant, as a holding company.

GM is known within the industry as the largest American automobile manufacturer, and it is ranked No. 10 on the Fortune 500 list of the biggest U.S.-corporations by total revenue. The company makes vehicles in 37 nations and owns brands such as Cadillac, Buick, Chevrolet, Wuling, Buick, GMC, Baojun, Holden, and Jiefang. Each one of them manufactures different types of vehicles that range from city cars, trucks, luxury automobiles, and others.

By Andres Chavez

Venezuela Ranks Second in BTC Global Trade

Maria Rodríguez
-
0
Venezuela Ranks Second in BTC Global Trade

The transactions are made on the Localbitcoins platform. Eight of every 10 BTC traded in Latin America are exchanged in Venezuela and Colombia

The economic crisis and the hyperinflation that seize Venezuela are not an impediment for that South American country to become the second in the world in Bitcoins (BTC) commercialization.

Until November 24th, about 1,190 BTC were sold in Venezuela, whilst if only the monthly volume produced is studied, this country is tied with The United States.

During November, around 4,352 BTCs were commercialized on the P2P (peer to peer) platform Localbitcoins, including 1,190 in the last week of that month.

The United States and Venezuela were tied with 4,354 and 4,352 BTC, respectively, which means that the Caribbean country twice outperformed the United States in terms of weekly volume. This is how the historical level of BTC in Localbitcoins and the weekly record has been almost totally conquered by the region located in northern Latin America.

It is increasing

In August, Venezuela reached the third position, with 2,103 BTC traded on the platform. Now, in December, and only three months after this feat, it managed to double the monthly volume.

BTC volumes from the United States and Venezuela remain close, could only be reached by those in Russia, according to data provided by the Finnish startup Localbitcoins and Coin Dance.

Since August, Venezuela and Colombia are the two countries which dominate the positions in the rest of the South American countries. Both continue to represent more than three-quarters of BTC exchanged in Latin America.

Four months ago, the two countries achieved 78% of dominance and in November in increased to 81.5%. The domain of the first one is 58% on the group of countries with the largest movement of bitcoins in the region. None of the other countries exceeds 10%. In fact, eight of every 10 BTC traded in Latin America are exchanged in Venezuela and Colombia.

Facing forecasts

Faced with the sustained fall in Bitcoin’s price, its ups, and downs, as well as happens with other cryptocurrencies and in the crypto market in general during 2018, the volume exchanged of BTC in Venezuela increases month by month.

Whilst the price of bitcoin has fallen back to 75%, which is the highest position it has reached so far this year, the weekly volume exchanged in Venezuela at Localbitcoins has grown up to 387%.

In August, after the monetary reconversion that the country suffered as part of the last economic announcements, some Venezuelan people have resorted to mining, buying and selling BTC as an alternative.

This is how the monthly BTC exchange volume has grown to over 72%. A few days ago, the president of Venezuela, Nicolás Maduro, increased the national minimum wage to Bs 4,500 and the value of Petro, the cryptocurrency of that country, stood at Bs. 9,000.

Some analysts believe that the indicator continues its path of increase during December, this is because, with each new wage increase, as the one recently announced, basic products also increase their cost and citizens seek other options, new businesses and to do this they take advantage of the crypto market. Some companies even resort to BTC or dollar payment as a solution.

In the coming days, most likely, this behavior will continue to be observed, due to the corresponding purchases and expenses to the end of the year.

 

By María Rodríguez

Japanese Exchange GMO Coin Gives its Support to the Bitcoin ABC Version

Andres Chavez
-
0
Japanese Exchange GMO Coin Gives its Support to the Bitcoin ABC Version

GMO Coin, one of the biggest and most widely known cryptocurrency exchanges in Japan and the world, is once again offering Bitcoin Cash (BCH) trading support after a forced hiatus thanks to the hard fork of the asset that took place on November 15th.

And, since Bitcoin Cash split into two different blockchains and cryptocurrencies, it is convenient to note that GMO is supporting the Bitcoin ABC network (BCHABC,) according to a report from Finance Magnates (FM) this Monday, December 3rd.

The announcement, according to the report, is official and would start on December 4th, in the BCH/JPY trading pair. The exchange temporarily put a halt on BCH trading because it wanted to “avoid the disruption caused” by the November 15 hard fork, which coincided (or caused, according to numerous experts) an ugly industry-wide collapse that has Bitcoin (BTC) prices flirting with the $4,000 threshold.

According to specialized crypto news site Cointelegraph, Finance Magnates approached the GMO Coin exchange to know which BCH platform they would list. A GMO spokesperson replied, saying that “in our company, the one shown as BCH indicates a Bitcoin Cash called BCHABC.”

SV or ABC?

More than a week has passed since the Bitcoin Cash blockchain was divided into two very different networks: one is known as the most conservative part, which is Bitcoin ABC: they do not want to implement any major changes to the software, whilst e Bitcoin SV (BCHSV) has a very different way of viewing things.

Bitcoin SV supporter, Calvin Ayre decided to call for a permanent blockchain split after it was clear that talks were going nowhere. He stated that BCH SV did not want to be called Bitcoin Cash anymore. Ayre is joined by Craig Wright in the upper echelon of Bitcoin SV.

Cointelegraph noted in a recent publication that “Bitcoin SV is the original Bitcoin (BTC) not the original Bitcoin Cash,” accusing other blockchains of “tinkering Bitcoin to death.”

A Hash War

Bitcoin Cash [BCH] is one of the most influential cryptocurrencies in the industry, and it is viewed by the community as one of the closest things to the Bitcoin original version. Neither side was willing to drop its argument in the struggle, and a hash war full of hostility shortly began.

In the same vein, the term hash war refers to miners deciding which cryptocurrency to mine, and the asset with more miners was the moral winner. An exchange list Bitcoin Cash, but whether it is the ABC or the SV version has been a subject for debate. GMO Coin decided to support the Bitcoin ABC blockchain, but others have gone to the SV side.

According to the site BCFocus, Wright explained his vision in a recent Medium post. He said that Bitcoin SV (Satoshi Version) will make miners earn over $8,000 per block, which equates to $640 a bitcoin on exchanges without considering “the gambling price of bitcoin, just what miners will earn as a service.”

Wright strongly defends Bitcoin SV and says it will reach 6.5 million transactions per second in a span of two or three years.

By Andres Chavez

1...1,6021,6031,604...1,654Page 1,603 of 1,654