gb
- by frank issah
- 4 posts
-
When the bitcoin price declined from nearly $20,000 in Dec. 2017 to below $6,000 during the first quarter of 2018, many observers blamed new investors whose shaky hands had never endured a true bear market.
However, new research from blockchain analytics firm Chainalysis suggests that it was long-term investors, hands calloused from years of hodling though they may have been, who triggered the decline and then continued to sell into the dip — to the tune of $30 billion worth of bitcoin between Dec. 2017 and April 2018.
“This was an unprecedented sell off and such an opportunity is unlikely to be repeated soon,” the firm wrote in its report.
According to Chainalysis, those former hodlers largely sold to new speculators — not other long-term investors, shifting the balance of bitcoin wealth away from those with a demonstrated ability to hodl through adversity and toward buyers who may not have the stomach for a multi-year bear market.
Source: ChainalysisThat cuts against the conventional wisdom surrounding the decline, which said that fair-weather investors — many of whom had bought bitcoin close to its all-time high — had panicked at the first sign of a downturn and sold their coins while hodlers strengthened their grip in preparation for a bear cycle.
Moreover, the influx of new speculators has depressed the bitcoin price since these users are far more quick to sell their coins than long-term investors. In fact, the reports notes that the amount of BTC available for trading has increased by 57 percent since the sell-off began in December. At present, the supply of circulating bitcoins is split nearly evenly between investors and speculators.
However, this sell-off did not come without a silver lining. Since speculators tend to own fewer coins than long-term investors, bitcoin wealth is less concentrated than it was prior to 2017.
Of course, they also tend to be less-inclined to hodling, which means that it will take more demand to move the price needle in a positive direction than in the past.
Featured Image from Shutterstock
Follow us on Telegram.
Josiah is a full-time journalist at CCN. A former ancient and medieval literature teacher, he has been reporting on cryptocurrency since 2014. He lives in rural North Carolina with his wife and children.
Follow him on Twitter @Y3llowb1ackbird or email him directly at josiah.wilmoth(at)ccn.com.-
- 1
Francisco Gimeno - BC Analyst Interesting analysis, if true, that hodlers are one important reason for the lowering prices of Bitcoin in the last five months. Among the FUD news it is positive to see proper analysis trying to put some reason to this market.- 10 1 vote
- Reply
-
-
Strong Use Case: How blockchain can help remove plastics waste, and help the poo... (business.financialpost.com)David Katz is on a mission to democratize material handling and waste management. Since co-founding The Plastic Bank in 2013 in Vancouver, he has been hard at work creating an ecosystem that attaches a value to plastics that make their way into the oceans and rivers around the world.
The key to helping him realize that vision is blockchain, a technology that is often misunderstood by the layperson. Many confuse it with cryptocurrency or assume blockchain opportunities are mainly targeted to the financial services and cybersecurity sectors.
But the possibilities for application developers are much more diverse.The power of blockchain is that it provides a single shared source of the truth that is immutable and can be shared.
This offers the ability to validate and authenticate transactions within seconds versus days or weeks, whether it’s tracking the distribution of goods from source to consumption, sharing medical histories or pinpointing the exact source of a food product, explains Manav Gupta, director and distinguished engineer, Cloud Native Competency at IBM Canada in Toronto.
Blockchain can achieve a variety of things for developers and end users. It can be used to create a large business network tying people and entities, provide the ability for parties to digitize and trade assets, and/or provide a single shared ledger on a distributed platform that can cross markets and sectors.
In Katz’ case, blockchain is serving as a platform for the use and exchange of waste materials, which will put value into the hands of the poor. While he prefers not to use the term “the Uber of recycling,” he admits it’s a good analogy.
“A driver has their own car and expenses. But the more they want to work, the more money they can make.”
Through The Plastic Bank, individuals or groups in poverty-stricken parts of the world are able to collect plastic waste and exchange it for tokens or credits that can be deposited in an online account. The tokens can then be applied toward goods and services they typically can’t afford, such as education, Wi-Fi services or medical insurance, among others.
Katz says blockchain is propelling these types of initiatives in a number of social applications.
“The ability to share authentic data is critically important, especially when working in areas that suffer from poverty and corruption. We know who is collecting materials and where – all questions that couldn’t be answered before. It speeds up everything.
”He joins a growing group of entrepreneurs exploring the value of blockchain for social good, from recyclables and charitable donations, to distribution within refugee camps and clean energy management, says Mark Kovarski, a Toronto-based technology consultant and partner at 85 Advisors in New York, an accelerator focused on blockchain innovation.
“If you look at the startup space from a cleantech and envirotech perspective, the growth has been phenomenal. There are now over 130 startups globally, and over $300 million being invested in startups using blockchain with an environmental focus.
It’s a huge growth market right now.”Key areas of development include energy efficiency, recycling using tokenized rewards system, end-to-end supply chain transparency, carbon footprint reporting and non-profit contributions.Blockchain has great potential to lead the way to a more energy efficient, lower cost-of-energy world, while helping achieve global greenhouse gas emission targetsPaul Ghezzi, CEO, Kontrol Energy Corp.
Kovarski stresses that for startups, it’s all about the application layer and there are numerous platforms available to developers for little to no cost. These include IBM Blockchain, Ethereum, IOTA, NEO, EOS and Ripple.
“These platforms are like the glue for building distributed apps.”Paul Ghezzi, CEO at Kontrol Energy Corp. in Vaughan, Ont., a developer ofenergy efficiency solutions and technology, says his company has a number of accelerator initiatives within the blockchain sector that are using the various platforms.
He says as an energy services provider, the focus is on creating the applications that reside on them.“In terms of energy savings, blockchain has great potential to lead the way to a more energy efficient, lower cost-of-energy world, while at the same time helping to achieve global greenhouse gas emission targets,” he explains.
“For each $1 of energy saved, up to $3 of utility transmission and distribution investment can be mitigated. The return potential to save $1 dollar of energy is higher than having to build a new energy infrastructure.
”The areas that show the greatest upside within energy include, peer to peer trading of energy networks; carbon reduction monitoring, recording and monetization; and infrastructure planning and management, he adds.
Gupta says there are countless opportunities that developers can explore that will contribute to improving society, from securing food supply chains to improving energy efficiency.
“Ultimately, if a solution makes it easier and better to reconcile information in a trustable manner – that’s a social good right there.”
Discover more from Financialpost here:
http://business.financialpost.com/entrepreneur/how-blockchain-can-help-remove-plastics-waste-and-hel...
-
Francisco Gimeno - BC Analyst We are used to see Blockchain use cases in the financial sector, insurance, logistics, or administration. However the use cases of Blockchain for social good will have long term more impact than any other use case. In this case a fantastic use case to secure the plastic waste and recycling sector, improving its efficiency and creating a better environment and better business too. The growth of Blockchain for social good in many fields is exponential and in line with the change of social paradigm we are witnessing to improve communities, society and the world.
-
-
There has been a persistent cat and mouse chase between regulatory bodies and cryptocurrency businesses pretty much since the inception of the industry. But despite some initial reluctance, crypto-companies are slowly starting to show more interest in working with governments.
In the US particularly, the cryptocurrency businesses are gradually starting to align themselves with regulatory bodies. Two of the largest cryptocurrency businesses in the US, Coinbase and Circle, recently announced plans to launch licensed cryptocurrency securities trading.
The Goldman Sachs-backed Circle announced plans to seek a federal banking license in an effort to increase the services it provides, in an interview with Bloomberg on Wednesday. The company also intends to pursue registration as a brokerage and trading venue with the US Securities and Exchange Commission (SEC).
“No venture that began in the largely unchecked world of digital currencies has obtained such status with [US] regulators,” Jeremy Allaire, CEO of Circle told Bloomberg.
“While getting a banking license would subject it to tough scrutiny, the move would winnow the field of regulators Circle must appease because federal laws would pre-empt a patchwork of state rules covering crypto.
”The move was closely followed by Coinbase, which announced similar plans on its blog today. The company has applied for a license with the SEC as a regulated “broker-dealer.
”Coinbase has acquired three companies — including Keystone Capital Corp., Venovate Marketplace Inc., and Digital Wealth LLC. — hoping to offer services like cryptocurrency securities trading, margin trading, and over-the-counter (OTC) trading, along with new market data products. Of course, the moves is still subject to approval from the SEC.The willingness to work alongside each other seems to be mutual.
The US authorities have also been softening their stance towards cryptocurrency related businesses.While the regulatory bodies earlier saw the cryptocurrency industry as a blanket and preferred to stay out of it, the focus has now shifted to specifically targeting scam and illicit businesses running in the space.
The SEC, particularly, has been focusing on fraudulent companies, especially initial coin offering (ICO) scams.While the SEC is not willing to bring any changes in its rulebook to accommodate cryptocurrencies and ICOs, the agency has no problem with either as long as they abide by its existing rules.“If you have an ICO or a stock, and you want to sell it in a private placement, follow the private placement rules.
If you want to do any IPO with a token, come see us,” SEC Chairman Jay told CNBC on Wednesday. “The SEC is happy to help you do that public offering if issuers take the responsibility SEC laws require.
”As this regulatory mist clears in the US, even major Wall Street players — that were once strongly critical of cryptocurrencies — are now jumping on the bandwagon.
The New York Stock Exchange (NYSE), Nasdaq, Goldman Sachs, JP Morgan have all announced cryptocurrency projects in the recent months. Even technology giants like Facebook, Google, and IBM don’t want to be left behind.
While early regulatory challenges, particularly in Asian countries, forced cryptocurrency exchanges like Binance and OKEx to seek shelter in locations like Malta (where legislation tends to be more favorable to blockchain companies), other exchanges have figured out ways to work with the authorities and register their offices in the same countries they plan to operate in.
Cryptocurrency exchange behemoths including Bitfinex, Poloniex (which Circle recently acquired), Bithumb and Bittrex have been tightening their know-your-customer (KYC) and anti-money-laundering (AML) procedures in a bid to comply with the regulations. Bittrex recently even tied-up with a bank in the US to offer cryptocurrency trading against the US dollar.
Singapore-headquartered cryptocurrency exchange giant, Huobi announced expansion to Europe in April, after previously expanding to Asia and the US.“We are not afraid of regulation nor are we escaping regulation,” Peng Hu, Vice President of the Huobi Group said at the time.
“Not Malta, not Switzerland. Absolutely London, more precisely Britain, is the entry point for the European market for us.” South Korea and Japan have been giving scares to cryptocurrency exchanges, but at the same time they have been working at drafting regulations to allow cryptocurrency exchanges to function in compliance with the laws.
Korean authorities have been raiding cryptocurrency exchange offices lately, but they have all been aimed at ensuring compliance with the KYC/AML laws.
In India, there were speculations that cryptocurrency businesses will have to move out of the country following the RBI directive to banks to stop associating with any business dealing in virtual currencies.
But this development seems unlikely for the time being given that the Indian government is considering retrospectively taxing cryptocurrency tradinginstead of a ban — providing an avenue for the businesses to stay put legally.
Cryptocurrency industry and regulatory bodies are starting to get synchronized globally, perhaps with the major exception being China, which is more keen on blockchain than cryptocurrencies.
While cryptocurrency industry came with the promise of decentralization and freedom from government, it is likely that these businesses are now towing the line of the government for the sake of survival.
Some argue that regulations will make the space more organized and it will be easier for consumers to make safe financial investments. But not all agree. Bitcoin proponent Andreas M. Antonopoulos argues that cryptocurrencies like Bitcoin can’t be regulated no matter what.
“The question is not whether Bitcoin should be regulated, but whether it can be regulated. The reality is “No.” The rest is nostalgia,” he said in a tweet two years ago.
“Appeal to authority is the old way, not Bitcoin,” a stance that he retains till date. He may very well be right.
With more than 1,600 cryptocurrencies out there, avoiding regulation altogether doesn’t seem like a viable option — especially in light of the string of scams in the space. Establishing legislation that stimulates growth for businesses and protects consumers is no mean feat, but it is certainly a task that we can’t ignore.
https://thenextweb.com/hardfork/2018/06/07/cryptocurrency-regulations/
-
Francisco Gimeno - BC Analyst Regulation or a meeting point between institutions and crypto market actors is expected in 2018. Too many unknowns, too much ignorance, and a philosophical debate on decentralisation and also on tokenisation has made this encounter not feasible until now. But postures are approaching, and if Bitcoin can't be regulated by its own nature, start ups, crypto exchanges, many alt coins and tokens should comply with agreed game rules, which don't compromise the foundational aspects of the digital crypto revolution.
-
-
By LUCINDA SHEN June 11, 2018
Yet another banking giant, worried about the asset’s volatility, is banning cryptocurrency purchases using its credit card.America’s third largest bank by assets, Wells Fargo, said Monday that customers will no longer be able to purchase Bitcoin and its ilk using credit cards issued by the firm.
The decision follows on similar announcements made by J.P. Morgan, Citi, Bank of America, as banks and payments processors feared that the asset’s wild price swings could cause buyers to renege on payments back to the bank.
“Customers can no longer use their Wells Fargo credit cards to purchase cryptocurrency,” a bank spokesperson said in a statement Monday.
“We’re doing this in order to be consistent across the Wells Fargo enterprise due to the multiple risks associated with this volatile investment. This decision is in line with the overall industry.”
And, similar to other statements from banks about the decision, Wells Fargo noted that it will continue to monitor cryptocurrency markets.
“We will continue to evaluate the issue as the market evolves,” the spokesperson said.
The move comes at a time when the volatility of Bitcoin, the poster child of the cryptocurrency movement, has fallen in recent weeks compared to 2017.
Still, its price moves are significant—leading to sizable gains and losses. The value of the digital coin fell to $6,700 Monday after hovering at about $7,500 for the past week.
http://fortune.com/2018/06/11/wells-fargo-bitcoin-cryptocurrency-credit-cards/
-
Francisco Gimeno - BC Analyst The reason for this is volatility of prices and the danger of buyers payers not being able to pay back to the bank. Which is true, but overall, we should ask to see the long term price volatility record. Maybe we would be shocked to see that is not so big as stated. And we should compare the non payments for crypto users against non payers of normal credits and loans. Banks and financial institutions don't know yet how to react to bitcoin and other cryptos, so they need to act like this in times of uncertainty for them.
-