Crypto Markets See Visible Drop Off as Major Coins Are in The Red

Wednesday, Nov. 8: most cryptocurrencies have seen a drop-off today, with the most visible losses seen by Bitcoin Cash (BCH) and Ripple (XRP), as data from Coin360 shows. As of press time, the markers are seeing mixed signals, mostly staying in the red.

Market visualization from Coin360

While in the beginning of the week Bitcoin (BTC) was mostly in the green, up almost to 2 percent on the day Monday, Nov. 5, today the major coin is hovering around zero, mostly staying in the red and trading around $6,450 as of press time.

Bitcoin 7-day price chart. Source: CoinMarketCap Bitcoin Price Index

Ethereum (ETH) is also about 2 percent down on the day, being traded slightly over $213 as of press time. The coin is seeing some stability after it has regained its second spot, bypassing Ripple (XRP) by market capitalization.

Ethereum 7-day price chart. Source: CoinMarketCap Ethereum Price Index

Ripple (XRP), in its turn, is currently trading at $0.50, dropping as much as 5.6 percent over the day as of press time. As per its weekly charts, the currency has seen its peak on Tuesday, Nov. 6, when the coin temporarily overtook Ethereum as the second largest altcoin.

Ripple 7-day price chart. Source: CoinMarketCap Ripple Price Index

Total market capitalization of all cryptocurrencies is around $215 billion at the press-time, falling from $219 billion over the last 24 hours. According to daily trading volume, it has also dropped in comparison to yesterday, Nov. 7, hovering around $13.5 billion as of press time.

Weekly total market capitalization chart. Source: CoinMarketCap

18 of the 20 major cryptocurrencies are in the red, with Bitcoin Cash (BCH), Ripple (XRP) and NEM (XEM) seeing the biggest drops in last 24 hours according to CoinMarketCap. BCH has lost a distinctive 4.8 percent after almost a week-long growth following its upcoming hard fork, which is backed by major crypto exchange Binance. As of press time, the coin was traded at around $589.

Dash (DASH) is the only crypto to see a slight growth among top 20 coins, up to 1 percent on the day and trading at around $167 as of press time.

Meanwhile, today, Nov. 8, two countries in Asia have called for clearer crypto regulation. The Deputy Prime Minister of Thailand, Wissanu Krea-ngam, urged to lawmakers to amend the existing legal framework for crypto — set in May 2018 — to meet the development of the technology, warning about possible dangers for consumers. In the meantime, South Korea’s lawyers have lobbied the local government to speed up its work and expedite a legal framework for cryptocurrencies as well.

Yesterday, Nov. 7, crypto Twitter saw an extensive discussion in response to William Shatner’s positive tweet about Ethereum (ETH) co-founder Vitalik Buterin.

The Canadian actor, most known for his role of captain James T. Kirk in Star Trek, posted a thumbs-up emoji tagging Buterin for his 2.5 million followers. Shatner was then drawn into a debate over the ETH network’s decentralization, showing familiarity with ERC standards in his rebuttal to “crypto troll[s].”

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Crypto Markets See Stirrings of Volatility as Major Coins Tip Into Red

Monday, Oct. 29: Crypto markets are seeing the first momentum in a while after a period of marked stability: virtually all of the major cryptocurrencies are in the red today, with some seeing losses of between a 4-6 percent range, as Coin360 data shows.

Market visualization by Coin360

Bitcoin (BTC) is trading at $6,352 at press time, seeing an almost 2 percent loss on the day according to CoinMarketCap. Having traded sideways throughout the week, the top coin today saw a vertiginous price drop, plummeting from its $6,480 trading range down to around $6,350 in the couple of hours before press time.

Earlier this month, Bitcoin had achieved a 17-month low volatility rate, recording its highest level of stability since mid-2017: the trend had continued over recent weeks, excepting one short-lived spike on Oct. 15.

Volatility and the lack thereof had become a staple on crypto twitter, with prominent crypto commentators quick to underscore Bitcoin’s new quasi-stablecoin status. Senior market analyst Mati Greenspan from eToro joked on Oct. 24: “Hey stock jocks!!! Tell me again how Bitcoin isn’t a stable store of wealth due to extreme volatility…”

As the market returns to its “normal” momentum, Adamant Capital founder Tuur Demeester has today quipped on Twitter, “is there a way to go long Bitcoin volatility? I would if I could.”

On the week, the crypto is now around 2.7 percent in the red: monthly losses are at around 3.4 percent.

Bitcoin 7-day price chart

Bitcoin 7-day price chart. Source: CoinMarketCap

Having seen similarly stable trading patterns, Ethereum (ETH) has today also been jolted by negative momentum, sliding steeply down 3 percent on the day to trade around $198, according to CoinMarketCap. Over the past week, the leading altcoin has also been trading sideways, showing only marginally more fluctuations than Bitcoin over the same time frame.

This brings Ethereum to a 3.8 percent loss on its weekly chart; monthly losses are a much starker 14.8 percent.

Ethereum 7-day price chart

Ethereum 7-day price chart. Source: CoinMarketCap

All of the remaining top ten coins on CoinMarketCap are in the red, except for stablecoin Tether (USDT), which is trading stably again.

The hardest hit top-ten performer is seventh largest coin Litecoin (BCH), down 5.2 percent on the day to trade around $49.22 by press time. EOS (EOS) is down 4.2 percent at $5.17, roughly on par with Bitcoin Cash (BCH), down 4.25 percent at $419.22.

In the context of the top twenty coins, the market picture is similarly bleak, with all assets seeing losses of within a 1-5 percent range. Anonymity-oriented alt Monero (XMR) is the least scathed, losing 1.1 percent over a 24 hour period to trade at around $101.43.

TRON (TRX) is down 4.9 percent at $0.022, IOTA (MIOTA) is down 4.23 percent at $0.456, with Ethereum Classic (ETC) pushing a 4.85 percent loss at $9.12.

Total market capitalization of all cryptocurrencies has slid to around $203.6 billion as of press time. Since its interweek peak at $211.1 billion Oct. 24., the market had held around or just below the $210 billion mark for much of the week before today’s tumble.

7-day chart of the total market capitalization of all cryptocurrencies

7-day chart of the total market capitalization of all cryptocurrencies from CoinMarketCap

In crypto news today, major European cryptocurrency exchange Bitstamp has been acquired by Belgium-based investment firm NXMH. NXMH is a subsidiary of South Korean-based media giant NXC Corp., which bought a 65.19 percent stake in South Korean crypto exchange Korbit last year.

Meanwhile, the operator of Japanese crypto exchange Coincheck, which suffered an industry record-breaking hack this January, has revealed the exchange saw a 66 percent decline in revenue for Q3 2018.

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No Coins for You! North Carolina Rejects Bitcoin Campaign Donations

North Carolina has barred electoral candidates in the state from accepting campaign donations made in bitcoin and other cryptocurrencies. This declaration is contained in a response from the North Carolina State Board of Elections Campaign Finance Office to Emmanuel Wilder, a Republican candidate running for a seat in the state’s legislature.

Regulatory Snafu

Earlier in the year, Emmanuel Wilder had asked the State Board if he could accept campaign donations in bitcoin and other digital currencies. In his submission, the candidate also suggested a framework for the Board to use in ascribing value to the volatile asset class.

The Board communicated its refusal of his request in a letter from its executive director, Kim Westbrooks Strach. The refusal is hinged on the fact that the state’s campaign finance regulations set monetary limits in U.S. dollars. The Board is also of the opinion that cryptocurrencies cannot be reliably valued.

An excerpt from the letter reads:

“We do not have the confidence that we could adequately regulate contributions to a political campaign in North Carolina in the form of cryptocurrency.”

In his reaction, a disappointed but optimistic Wilder said:

“Blockchain and other technologies hold the ability to improve how business and public institutions operate day to day…Although it might not be today, there will be a day when this technology will have a place in the political process.”

Anonymity Concerns

emmanuel wilder bitcoin north carolina
Emmanuel Wilder (Left, with fmr. Gov. Jeb Bush) was told that he may not accept bitcoin donations. | Source: Facebook

A number of political commentators believe that the perceived anonymity afforded by bitcoin and other cryptocurrencies is a big consideration and an issue that could potentially undermine campaign finance rules. Jen Jones, a spokesperson for Democracy North Carolina, a campaign finance watchdog earlier advised the Board to take this issue into consideration.

She said:

“[The board should consider] whether it’s possible for candidates to receive campaign donations via cryptocurrency while also complying with state disclosure requirements.”

North Carolina is not the only U.S. state to prohibit cryptocurrency campaign donations. In 2017, the Kansas Governmental Ethics Commission  ruled that candidates running in state and local elections are not allowed to accept bitcoin campaign donations. 

In June, Austin Petersen, a U.S. candidate from Missouri was forced to return a $130,000 bitcoin donation because it was over the FEC-mandated individual contribution limit of $5,400.

It will be noted, however, that the Federal Election Commission (FEC) ruled in 2014 that federal election candidates are allowed to collect contributions in bitcoin and gave guidelines for such collections. Under American law, though, states are at liberty to set their own rules for state election candidates.

Featured Image from Shutterstock

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BTC Trades Sideways, Other Top 20 Coins See More Notable Losses

Thursday, August 2: Bitcoin (BTC) and Ethereum (ETH) are trading around yesterday’s levels, while other top 20 coins are seeing notable losses, according to data from Coinmarketcap.

Market visualization from Coin360

Bitcoin (BTC) is up around 0.3 percent over the past 24 hours and trading at $7,579 at press time after testing a slight rebound today. The top cryptocurrency keeps trading sideways, with an intraday low of $7,451, according to the Cointelegraph Bitcoin Price Index. As Cointelegraph reported in a previous market analysis, if Bitcoin breaks $7,750 resistance, the move can extend to further to $8,400.

Bitcoin 24 hours price chart. Source: Cointelegraph Bitcoin Price Index

Bitcoin 24 hours price chart. Source: Cointelegraph Bitcoin Price Index

Ethereum (ETH) is down 1.03 percent, trading at $411 at press time. The major altcoin has climbed to an intraday high of $423 before seeing a gradual decline.

Crypto markets analyst Trading Room suggested on Twitter that if Ethereum dips delow $350, it would cause a further downtrend across other altcoins. However, Bitcoin would allegedly be “detached from the mayhem.”

Ethereum 24 hours price chart. Source: Cointelegraph Ethereum Price Index

Ethereum 24 hours price chart. Source: Cointelegraph Ethereum Price Index

Total market capitalization is standing its ground around $267 billion, seeing a slight decline within the day after peaking at $275 billion.

Total market capitalization 24 hours chart. Source: Coinmarketcap

Total market capitalization 24 hours chart. Source: Coinmarketcap

Bitcoin is steadily displacing altcoins from the market, reaching over 48 percent of total market cap dominance.

 Percentage of Total Market Cap (Dominance). Source: Coinmarketcap

Percentage of Total Market Cap (Dominance). Source: Coinmarketcap

VeChain (VEN) has suffered the most losses over the past 24 hours among the top 20 coins following the recent launch of its own mainnet and mobile wallet. The coin has lost almost 11 percent and is trading at $1.76 at press time, down almost 23 percent over the past week.

Tezos (XTZ) is seeing slightly less losses, down 6.65 percent and trading at $1.68 today.

While Bitcoin Cash (BCH) is seeing losses around 2.5 percent today, the number of BCH transactions has surpassed the amount of Bitcoin transactions for the first time. Yesterday, BCH celebrated its first birthday, following a hard fork from Bitcoin’s blockchain on August 1 last year.

Bitcoin and Bitcoin Cash Transactions Historical Chart (Dominance). Source: Bitinfocharts

Bitcoin and Bitcoin Cash Transactions Historical Chart (Dominance). Source: Bitinfocharts

Earlier today, payments service Square reported over $70 million in Bitcoin revenues in the first half of 2018. The firm’s revenues from crypto have grown by $37 million in Q2 2018 compared to $34 million in the first quarter. Bitcoin trading launched on its app in November 2017.

On July 31, Japanese financial conglomerate SBI Holdings announced it will acquire a 12 percent stake in U.S.-based electronic trading platform operator Clear Markets in a move to introduce a crypto derivative trading platform.

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'Keep NEO One!' Investors Protest a Proposal to Make Crypto Coins Divisible

Tokens on the blockchain protocol neo may be indivisible – but it’s becoming apparent that its community is not.

Perhaps ironically, it’s the very notion of indivisibility that has proved contentious to the coin’s investors and users in recent weeks. More specifically, a Github proposal to change the structure of the NEO token – one of two tokens native to the network (GAS is the second) – has the project’s token holders up in arms.

Authored by neo co-founder Erik Zhang, the post ideates a new economic model for the upcoming version (3.0) of the neo software, one the developer team hopes will better incentivize active participation in the network, but that will also see the NEO token become divisible.

It’s the latter change that has many network stakeholders in a frenzy.

One Discord user described the idea of making NEO divisible as “just plain dumb,” while others worried about its potential impact on NEO and GAS prices, saying:

“Divisible NEO is big BS, I would never vote for that. Price will go to trash if they do that.”

But Da Hongfei, another co-founder of neo, said the proposal illustrates a system that can overcome the “technical constraints” of the blockchain, like slow transaction speeds, while setting the stage for loftier goals, like the decentralization of the network’s governance process.

Previously called Antshares, neo was founded in 2014 with the goal of creating an enterprise-grade blockchain designed for digital assets, identity and smart contracts. After raising more than $3.7 million during an initial coin offering (ICO) and launching its live blockchain, or mainnet, in 2016, the project has scored significant interest, even being referred to as “China’s ethereum” at points.

As of today, however, it’s established a name for itself, and its tokens are valued at over $2 billion. Nonetheless, the co-founders believe the architecture of the network needs to be reworked.

According to Hongfei, the NEO token is currently indivisible for technical reasons that relate to its twin token model.

“NEO is kind of like the stake of the network; GAS is designed as a utility,” he told CoinDesk.

In practice, this means token holders use NEO to do things like voting for the network nodes that produce blocks and validate transactions as part of the project’s delegated byzantine fault tolerant (dBFT) consensus mechanism. GAS, on the other hand, is used to pay for the execution of services on the platform, such as smart contracts.

Every time GAS is consumed on the platform, it is redistributed to all token holders. Because GAS is currently redistributed to all token holders proportionally to their NEO holding ratio, Hongfei says NEO cannot be divisible.

But this mass redistribution scheme is one thing the team behind the project would like to adjust when it next upgrades the protocol.

While reconfiguring the platform’s economic model could be overlooked as mere technical minutia, it has become a flashpoint for other issues within the neo ecosystem – namely the platform’s ongoing challenge maintaining investor trust and its founder’s promise to relinquish at least some of its power to token holders.

Empty polls and blackholes

According to Hongfei, restructuring neo’s incentives system would tackle two hazards posed by the existing model.

For one, the current scheme does not incentivize inactive participants on the network (namely, those that do not vote in node elections) to become active. These users receive valuable GAS regardless of whether they vote or not.

And that could throw a wrench in the project’s plan to “decentralize,” which is dependent on users partaking in governance, Hongfei said.

“We need incentives for NEO token holders to vote for neo consensus nodes,” he said.

The second hazard is more theoretical and involves what neo calls “blackhole addresses,” or wallets to which owners have lost their private keys.

Hongfei explained that it is possible that “GAS will gradually be redistributed to those blackhole addresses and theoretically if the time is infinite, it is possible that all gas or almost all gas will go to that address.”

In the model proposed for neo 3.0, GAS would be sent to a pool instead of being immediately redistributed to all token holders. Once in the pool, GAS would be distributed over time exclusively to token holders that partake in voting for consensus nodes.

The new distribution method would also remove the technical barrier that requires NEO to be indivisible, Hongfei continued.

Unhappy investors

One possible outcome of making the token divisible is that it could become more accessible to investors in the event of a price increase.

However, the prospect of such a significant change to the project’s economic model has left the neo community disgruntled. And even Hongfei isn’t convinced that changing NEO’s design is a good idea.

“My personal opinion is [for NEO] to remain indivisible,” he said. “The price of one NEO token is about $30, that’s not really a lot of money. I don’t think people really need to vote like a fraction of $30.”

Despite the impact the proposal could have on investors’ token holdings, their capacity to influence the design of neo 3.0 is limited. While Hongfei said that plans to alter the platform are still “under discussion, nothing is all set,” neo does not intend to allow token holders to vote on the proposed changes.

“Currently the official channel is to discuss it on Github and many developers [and] users are posting their opinions of 3.0 and everyone is listening to that,” he told CoinDesk.

But in the end, only five core developers (one of which is Erik Zhang) will decide what neo 3.0 looks like.

And according to Hongfei, that’s because it’s the developers who understand all the technical nuances of the blockchain.

“Voting is a quite tricky system. If you ask people to vote on things they don’t understand, the result won’t be good,” Hongfei told CoinDesk. “Blockchain is a system that involves a lot of value; we don’t want to make it too complicated. Complicated software will usually have complicated security issues.”

But the community seems to disagree, as one Discord user wrote:

“If there is to be voting in neo, wouldn’t voting on something as substantial as making NEO divisible make sense? Why don’t they create a voting contract to allow people to vote on it? Otherwise, it’s just a totalitarian decision anyway, and anything that follows is suspect.”

Waiting on decentralization

The revelation that neo will exclude token holders from this process is likely to raise eyebrows, particularly because the platform recently came under fire for another decision executed with limited community input.

The team claimed it had “elected” the first privately-held consensus node to the network several weeks ago. But in practice this meant that the Neo Foundation, which is comprised of Hongfei and Zhang, voted for one candidate – neo-funded developer collective City of Zion (CoZ).

Nonetheless, the foundation claimed that the event was a step toward gradually handing over power to token holders, and continues to maintain that the process was an election. And that’s because, Hongfei claims, token holders could have voted in the election, theoretically.

“Currently in neo’s client or node software people can vote as they wish. But there are really very few people that know how to do it,” he said, adding: “We didn’t advertise it.”

He also argued that token holders could have campaigned to be consensus nodes, or at least, “it’s almost possible now.”

But according to Hongfei, the current consolidation of power within the platform is all part of the plan.

“We don’t think we can be decentralized at this early stage,” he said.

The development of neo 3.0 is expected to take at least a year. In the meantime, neo is expected to elect other privately operated consensus nodes, with Dutch telecommunications company KPN projected to be the next candidate.

Speaking to the network’s planned decentralization, Hongfei said that it will come “after a few years when the protocol is more stable.”

However, what that means is anyone’s guess, as Hongfei continued:

“We don’t have like a technical definition of stable, but what we are sure of is currently it’s not.”

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The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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How can bitcoin coins have real values? [closed]

First of all, “real value” is a questionable term. Some people deny a concept called Intrinsic Theory of Value. Anyway I can give us some reasons:

1) Limited supply and increasing demand

Bitcoin (as some other cryptocurrencies) has a fixed supply, which is currently 16,8 millions of units but it is going finish in the next years, when it hits 21 millions of units.

This supply of units is totally public through its ledger, which brings us an authentic and transparent scarcity.

According the classic economic model of Supply and Demand, if the demand increases and the supply does not increase in the same speed, the price will increase.

2) Bitcoin is a more effficient payment system

You can send an amount of money for an relatively small fee in a short time. The current systems simply can’t send 3000 USD from NY to Japan in 10 minutes for 2 USD less than 1 USD and the next updates can make it cheaper and faster.

3) High liquidity and media coverage

Anyone can trade relative small amounts of bitcoin in Internet. It doesn’t have the same limitations or restrictions that other markets have, like trades with minimal amounts. It has more liquidity than stock market, as you can trade in smaller positions.

So, if the Bitcoin market is bullish it trends to be really bullish, specially when media coverage show how bullish it is and much high it is performing, which brings more interested people to the market – even people who doesn’t know exactly how Bitcoin works, how its blockchain works, etc. It happened specially during 2017. So we have an explosive scenario, where:

  1. Bitcoin price increase much more than other investments in the same
  2. Media coverage about Bitcoin performance increases people
  3. Bitcoin is easy to trade in relative small amounts and
    people buy some Bitcoin
  4. Repeat.

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