Schlagwort-Archive: bitcoin

Willy Woo: Bitcoin Already Reached 40 of Fiat Currency Life Expectancy

Willy Woo: Bitcoin Already Reached 40% of Fiat Currency Life Expectancy


The crypto community keeps exploring the features of the current situation around BTC

amid the constant movement of the most capitalized cryptocurrency rate in a narrow price range. A well-known analyst on Twitter under the nickname Money Man expressed the opinion that a further decrease in BTC price can cause the large-scale purchase of the cryptocurrency. The specialist shared with his readers, with the intention to acquire a large amount of BTC if it drops to the level of $ 5,000. At the same time, a well-known investor in the crypto community, Willy Woo, averred that the position of BTC is similar to the level of development which fiat currency could reach by only over 27 years. Against the background of the current situation of the most capitalized cryptocurrency, Bitcoin evangelist Pierre Rochard believes that the US dollar is the only competitor to BTC. At the same time, he notes that BTC has attracted more new users than any other saving asset in the market over the past 10 years.

Will Bitcoin Be Able To Replace Fiat Currency?

This brings up variety of online resources and most often forums about cryptocurrency. The discussion regularly reaches a boiling point, mainly demonstrating the opposing positions of programmers and economists. To conclude, how soon will the new currency be able to overcome the global financial system, we have to explore a similar experience. A clear example is the appearance of the Euro in common life. There was ECU until 1998. Europeans introduced the new system gradually and replaced the ECU with the EURO in ratio 1: 1. Theoretically, replacing such an international currency as the US dollar over 10-15 years is possible too.

Due to the growth of the United States, national debt analysts predict an imminent crisis in the country’s financial sector. Investors are already looking for alternative investment options. Some choose the Swiss franc, others choose the Japanese yen. At the same time, many of them are turned to the cryptocurrency. Bitcoin is characterized by amazing gains, especially in contrast to the profitability of investments over the world. Perhaps the USA is using Bitcoin as an alternate option, realizing the instability of the US dollar. These thoughts are prompted by the fact that cryptocurrency has been legalized and is being prepared for introduction into the stock market.

But we have to expect that Bitcoin will replace the US dollar soon. Today we are witnessing only the initial stage of the emergence of electronic money, which is not dependent on the control of state regulatory bodies. Rather, familiar currencies evolve in a competitive environment that arose after the advent of cryptocurrency. In this case, the mechanism of international transfers will be simplified, and operations will be cheaper. One thing that we can say with confidence is that we observe a truly epic confrontation of systems that have been established over the centuries on one hand and advanced technology on the other hand.

Article Produced By
Victoria Tiebienieva

Victoria Tiebienieva is an Europe based cryptocurrency writer with over 5 years writing experience in the cryptocurrency space. Victoria has written numerous articles for popular cryptocurrency websites across Europe and beyond. She has spoken about cryptocurrency in notable media houses across her country.

Heiko Closhen, Entrepreneur

Want to Buy Bitcoin? Sweden’s Debt Collection Agency Is Auctioning Some Off

Want to Buy Bitcoin? Sweden’s Debt Collection Agency Is Auctioning Some Off


Kronofogden, the Swedish Enforcement Authority, is about to auction off 4.59 BTC. This will be the agency’s second auction, as another one took place back in 2017. The auction is set to take place today, and it will be conducted entirely online.

A Bitcoin Online Auction in Sweden

Kronofodgen, Sweden’s Enforcement Authority, has obtained 4.59 BTC and is ready to auction it off to the highest bidder. The market price is currently around 370,000 kronor ($37,600), or about $8,191 per Bitcoin. The agency’s operations developer, Johanees Paulson,


“Many people ask us why we’re auctioning off the currency and not converting it ourselves. The answer is that there isn’t an infrastructure which meets our needs. We need to do it in a quality-assured way, in order to be sure that the money won’t disappear on the way.”

History is on the agency’s side, as it conducted a successful auction before. In 2017 Kronofodgen sold 0.6 BTC with an estimated market value of 27,600 kronor at the time. The winning bid was placed by an undisclosed buyer who paid 43,000 kronor. Back then, the agency claimed that it had acquired the cryptocurrency by assessing a debt against a company. This year, there is no official word on where the significantly higher amount of Bitcoin has come from.

Other Governments Have Held Bitcoin Auctions

Bitcoin auctions have been held by other governments and entities. In 2016, the U.S. Marshals Service seized 2,700 bitcoins from the illicit Silk Road marketplace and later sold them for $1.6 million. Only 5 people placed bids, and the winner was anonymous. Bitcoin’s price has skyrocketed since then, and today the same amount would be worth over $22 million. An even more sizable portion of bitcoins was sold by Ernst & Young in 2017. The Australian government had confiscated 24.518 bitcoins from yet another Silk Road user a year prior. It was reported that the auction was successful, with 5 winners obtaining around $16 million worth of Bitcoin. The aforementioned Silk Road was the biggest anonymous black market for illegal drugs. It was shut down by the FBI in 2013, and the agency reportedly seized 144,000 bitcoins. Later, 44,000 of them were sold to 4 winners and they gathered $14.6 million.

Article Produced By
Jordan Lyanchev

Jordan got into crypto in 2016 by trading and investing. He began writing about blockchain technology in 2017. He has managed numerous crypto-related projects and is passionate about all things blockchain.

Heiko Closhen, Entrepreneur

How China Is Waging All-Out War Against Bitcoin Trading

How China Is Waging All-Out War Against Bitcoin Trading

                                   How China Is Waging All-Out War Against Bitcoin Trading


As bitcoin has gained traction over its decade-long existence,

it has attracted quite a number of adversaries and fans in equal measure. One of the most notable powerful antagonists is the second-largest economy in the world, China, which has relentlessly expressed its distaste for cryptocurrency and also shown how it is capable of influencing it. China banned Initial Coin Offerings (ICOs) in 2017, causing a significant drop in the price of bitcoin. Also, earlier this year, the People’s Bank of China (PBOC) announced that it “would block access to all domestic and foreign cryptocurrency exchanges and ICO websites”. According to the official statement issued, China would ban foreign exchanges in an effort to curb cryptocurrency trading. The recent development is aimed at combating cryptocurrency transactions in the world’s most populous nation.

Alipay And WeChat Do NOT Support Bitcoin Transactions

In the most bizarre turn of events, Alipay and WeChat have come out to publicly denounce that they support bitcoin transactions unlike what earlier reports had suggested. Here is the backstory: two days ago, Binance announced that it had launched P2P trading for Chinese yuan with support for ETH, BTC and USDT and initial access to android users. Shortly after this announcement, a twitter user asked Binance CEO Changpeng Zhao whether this meant that Chinese-based traders can use messaging platform WeChat and also payment platform Alipay to deposit funds, to which Zhao responded confidently with a “YES”.

Crypto community was thrilled by this news as these two platforms have large user bases which would have been a boon for bitcoin adoption. However, the joy was short-lived. Alipay was quick to diffuse any suggestion that it allows bitcoin transactions, responding to Zhao’s tweet with a resounding “NO”. They went ahead to state that they had received “several reports” claiming that Alipay is being used for bitcoin transactions. Alipay noted that it closely monitors transactions and it “immediately stops” payment services if a transaction is suspected to be related to bitcoin or any other cryptocurrency.

An Alipay spokesperson, Vick Li Wei reached out to ZyCrypto with a statement:

“Alipay closely monitors over-the counter (OTC) transactions to identify irregular behavior and ensure compliance with relevant regulations. If any transactions are identified as being related to bitcoin or other virtual currencies, we immediately stop the relevant payment services.”

Worth noting, Alipay has been here before. In August last year, Alipay imposed a similar ban that focused on OTC bitcoin trading. The founding partner of Primitive Ventures and analyst of Chinese markets, Dovey Wan gave her insight into this matter via a Twitter thread. Wan suggested that this move by WeChat and Alipay could be due to pressure from the Chinese government. As of August this year, the Chinese OTC market has stalled because payment platforms and local police were taking action against anyone conducting crypto transactions. In another tweet, Wan translates an announcement made by WeChat in the local language. “WeChat will never support cryptocurrencies trading and has never integrated with any crypto merchant. We welcome any whistleblower to report such behavior,” says WeChat.

Facebook opened a proverbial Pandora ’s box in China with its Libra announcement. Filled with the fear that Libra could pose a threat to the Renminbi and China’s monetary sovereignty, the People’s Bank of China (PBoC) announced its plans to develop its own digital currency. All these tough restrictions dictated by WeChat and Alipay could be as a result of China eliminating competition as it prepares for its imminent central bank digital currency (CBDC). Per speculations, PBoC intends to make the digital currency available through platforms like Alipay, WeChat and Tencent.

Does This Mean There’s No Hope For Bitcoin In China?

Although we might not be seeing China soften its stance towards bitcoin any time soon, its development of its CBDC could be a step in the right direction. Ripple CEO Brad Garlinghouse believes China increasing its efforts on the digital yuan is a call to action for the United States. Speaking with Fox Business, Garlinghouse advised the US government to step up to the plate or risk being left behind. Moreover, Garlinghouse alluded that China taking the lead in developing a central bank digital currency while the U.S does nothing could trigger the yuan dethroning the dollar as a reserve currency. In plain terms, even though China is not particularly interested in bitcoin, its undertakings in developing a digital yuan prove that bitcoin is a viable technology that has long term potential. To put it perfectly as Mahatma Gandhi did: first, they ignore you, then they laugh at you, then they fight you, then you win.

Community Response To This Alipay, WeChat  Vs Binance Dilemma

Binance CEO announcing that Binance users can use Alipay and WeChat to deposit funds for purchasing cryptocurrency and then the two companies firmly countering Zhao’s announcement has left many in the crypto industry dumbfounded. One Twitter user going by the name truthseeker (@truthurtm) posited that smaller exchanges in China have been hosting peer-to-peer bitcoin trading via WeChat and Alipay without encountering challenges. The fact that Alipay and WeChat are state-owned gave them no choice but to reaffirm their anti-bitcoin stance. Dovey Wan pointed out that her friend who has in the past engaged in OTC trading – though not often- was trying to buy coffee but instead received a WeChat error message saying, “This transaction is risky, in order to keep your funds safe we can’t proceed with this transaction”. Other crypto enthusiasts suggested that this confusion was a major PR disaster for Binance, for obvious reasons.

Article Produced By
Brenda Ngari

Brenda is a crypto and Blockchain enthusiast and has been crafting articles for at least a year. She has a solid background in Economics and Finance. When she is not writing crypto stories, she’s spending quality time with her family and friends or trying out different cuisines in the kitchen.

Heiko Closhen, Entrepreneur

Twitter isn’t tired of Bitcoin even though hashtags are at an all-time low

Twitter isn’t tired of Bitcoin even though hashtags are at an all-time low


Bitcoin mentions on Twitter hit an all-time low, dropping to around 8,300.

At its peak, Bitcoin was seeing 155,000 mentions at the beginning of December 2017. Nonetheless, the change doesn’t mean the world’s attention toward BTC is getting any lower.

#Bitcoin largely missing from Twitter

While the so-called crypto community was born from online forums such as Bitcoin Talk and Reddit, it matured on Twitter. Of the social media platforms, Twitter is fast-paced enough to keep up with the rapidly evolving crypto-sphere. Soon, it became the standard place for discussions on the state and future of the space, especially for those in America and Europe. As a result, Twitter, and the number of mentions a cryptocurrency gets there, are often seen as an important metric—one that gauges whether a project has made it into the public discourse. 

Therefore, it’s not surprising that mentions of Bitcoin on Twitter grew as the coin got more popular. The popularity of the #Bitcoin hashtag spiked every time it saw a significant price movement, indicating that it was, most literally, the talk of the town. Mentions of Bitcoin hashtags were at their all-time-high on Dec. 7, 2017, right when the coin began its turbo-charged jump to $20,000. Data from BitInfoCharts showed that #Bitcoin was mentioned more than 155,600 times that day. However, the Bitcoin hashtag has been losing its popularity ever since. On Oct. 4, the hashtag seemed completely missing from Twitter, as it got just over 8,300 mentions in the day. 

Is the world tired of Bitcoin?

Some might see the lack of Bitcoin mentions on Twitter as a sign of waning interest. But, the truth seems far from it. The data shown in BitInfoCharts only takes into consideration hashtags and not all and every mention of the word Bitcoin. Tweetbinder revealed that while #Bitcoin managed to get 500 tweets in 31 minutes, the keyword bitcoin took just 12 minutes at 18:20:08 UTC on Oct. 4 to get those same figures. By extrapolating these numbers, it is possible to assume the tweet count of the keyword Bitcoin to be nearly three times that of #Bitcoin.

As the oldest and most well-known cryptocurrency, Bitcoin has lost the novelty which would lead people to use hashtags when talking about it. Using hashtags is an efficient way to get more information and spread the word about new projects, but it seems Bitcoin has become such a household name that there isn’t any real need for it. Other metrics also disagree with the notion that Bitcoin is losing its popularity. Bitcoin’s hash rate, which determines the amount of computing power on the network, reached its all-time high on Sept. 26 and the trend has shown no signs of changing. That isn’t to say large price swings don’t increase attention toward Bitcoin. They do. But, it seems that the fewer number Bitcoin hashtags may have less to do with popularity and more to do with Bitcoin becoming a household name.

Article Produced By
Priyeshu Garg

Priyeshu is a software engineer who is passionate about machine learning and blockchain technology. He holds an engineering degree in computer science engineering and is a passionate economist. He built his first digital marketing startup when he was a teenager, and worked with multiple Fortune 500 companies along with smaller firms. When he is not solving transportation problems at his company (Ola), he can be found writing about the blockchain or roller skating with his friends. The author of this article is invested and/or has an interest in one or more assets discussed in this post. CryptoSlate does not endorse any project or asset that may be mentioned or linked to in this article. Please take that into consideration when evaluating the content within this article.

Heiko Closhen, Entrepreneur

You can’t fix 51 attacks on Bitcoin without adding centralization argues core developer

You can’t fix 51% attacks on Bitcoin without adding centralization, argues core developer


The ability to 51% attack Bitcoin indicates that it’s decentralized.

It’s impossible to fix this vulnerability without adding centralization, argued Litecoin founder Charlie Lee and Bitcoin Core developer Gregory Maxwell.

Characteristic of decentralization

Decentralization is one of the most important attributes of blockchain technology according to some of the most prolific figures in the industry. Yet, critics have scrutinized Bitcoin and other proof-of-work projects for their susceptibility to 51% attacks. However, the opportunity for 51% attacks could be a fundamental characteristic of a

decentralized public blockchain.

“One cannot fix the 51% attack flaw of a decentralized system without adding centralization,” tweeted Litecoin creator Charlie Lee. “This is one of the keys to understanding Bitcoin, proof of work, and decentralization. Most people fail to grasp this.”

Solving the double-spend problem

Fundamentally, Bitcoin solves the double-spend problem—the issues around guaranteeing that digital money isn’t spent twice. With tangible cash this problem is trivial. A paper bill can’t be in two places at once. But, when money is represented digitally, what prevents people from ‘counterfeiting’ bills? Duplicating electronic data is trivial and difficult to police, as demonstrated by the proliferation of online piracy. Historically, electronic cash was overseen by trusted third-parties. Money held in a PayPal account is an example of digital cash managed by a corporation while the electronic balance

held by a bank is a government example.

“Centralized systems like Ripple, EOS, IOTA, Blockstream Liquid, etc. just have a single party use its idea of whatever came first and everyone else just has to accept its decision,” asserted Maxwell.

But, in a decentralized system, who is the arbiter?

First come first serve

Bitcoin solves the double-spend problem by saying the first transaction to spend a coin is the valid transaction. Any subsequent attempts to spend that same coin are considered invalid. This might seem obvious but it’s a much trickier problem than it seems.

Gregory Maxwell, the former CTO of Blockstream and a longstanding Bitcoin Core developer, explains why.

“In a truly decentralized system ‘first’ is actually logically meaningless! As an inescapable result of relativity the order which different parties will perceive events depends on their relative positions, no matter how good or fast your communication system is.”

In other words, which transaction is considered ‘first’ depends on who is asked. If two transactions to spend the same Bitcoin happened at the same time, how would the network decide which is first and which is second?

Mining as a public election

Bitcoin solved this problem through voting. But, there’s a catch. Most permissionless systems have it so their users can remain anonymous. Thus, it’s impossible to just ask ‘people’ to vote—that would require a centralized party to verify the identities of those people and determine who’s eligible to vote. Instead, Bitcoin tallies votes through computing power, which doesn’t require the help of a centralized party. Similarly, it’s possible to use another resource like coins (proof-of-stake) to count votes.

Rigging elections

Continuing with Gregory Maxwell’s election analogy, when people refer to a 51% attack they mean the potential to ‘rig’ elections to change Bitcoin’s transaction history. Even though it’s possible to make 51% attacks costlier or more inconvenient, it’s impossible to eliminate that possibility without introducing centralization,

argues Maxwell.

“People have cooked up 1001 complicated schemes that claim to do it without introducing centralization, but careful analysis finds again and again that these fixes centralize the system but just hide the centralization,” says Maxwell about cryptocurrencies that claim to solve the 51% attack issue.

Delegating responsibility to masternodes, block producers, or superdelegates merely moves the potential for 51% attack to a smaller group of decision makers. Moving to proof-of-stake simply changes the underlying votes from computing power to coins. That isn’t to say these other projects are slower or less reliable than Bitcoin, they’re merely more centralized based on Maxwell’s theory.

Protecting decentralization

Maxwell makes an interesting final point. Critics seem to obsess over the risk of a 51% attack. But, the easy solution to that risk is to increase the number of block confirmations before considering a transaction final. A transaction on the Bitcoin blockchain gets exponentially more difficult to compromise the more blocks are mined on top of it. Thus, it’s still possible to transact even if a 51% attack is occurring by increasing

the number of confirmations.

“A far bigger risk to Bitcoin is that the public using it won’t understand, won’t care, and won’t protect the decentralization properties that make it valuable over centralized alternatives in the first place; a risk we can see playing out constantly in the billion dollar market caps of totally centralized systems,” concluded Maxwell.

Article Produced By
Mitchell Moos

Mitchell is a software enthusiast and entrepreneur. His first startup built algorithms for optimizing cryptocurrency mining. Prior to CryptoSlate, Mitchell was a project manager at a firm that built distributed software on Hyperledger. In his spare time he loves playing chess and hiking. The author of this article is invested and/or has an interest in one or more assets discussed in this post. CryptoSlate does not endorse any project or asset that may be mentioned or linked to in this article. Please take that into consideration when evaluating the content within this article.

Heiko Closhen, Entrepreneur

Quantum Computing Needs More QuBits to Take Down Bitcoin Says Encryption Expert

Quantum Computing Needs More QuBits to Take Down Bitcoin, Says Encryption Expert


Google’s latest quantum computing developments theoretically put Bitcoin and cryptocurrencies at risk,

given the growing prospect of being able to use the technology to crack blockchains that rely heavily on cryptography. While the crypto community reacted to last week’s leaked report claiming Google has achieved a major milestone in quantum computing, analysts say Google is far away from breaking Bitcoin. According to Dragos Ilie, a quantum computing and encryption researcher at Imperial College London, Google would need more quantum bits (qubits) to crack Bitcoin, reports Forbes.

“Google’s supercomputer currently has 53 qubits.

In order to have any effect on bitcoin or most other financial systems, it would take at least about 1500 qubits and the system must allow for the entanglement of all of them.”Spelling out the difficulties of scaling quantum computers, Ilie adds, “Don’t dump your bitcoins yet.”

“As you add more qubits the system becomes more and more unstable … [though] researchers can try different approaches for solving these issues so maybe there are ways to mitigate these problems but right now we are quite far from breaking bitcoin.” Charles Hayter, chief executive of bitcoin and cryptocurrency data website, CryptoCompare, points out that cryptocurrencies are programmable, open to development, upgrades and even change to fight back. Says Hayter, “Cryptocurrencies can be updated with quantum resistant tech. This is just a continuation of the age old arms race between crackers and enciphers.”

Article Produced By
The Daily Hodl Staff

Heiko Closhen, Entrepreneur

Mark Cuban: Bitcoin is at Best a Store of Value amp Has No Inherent Value

Mark Cuban: Bitcoin is at Best a Store of Value & Has No Inherent ValueBitcoin

               Billionaire Mark Cuban has long kept his eye on Bitcoin.

For a while now, the Dallas Mavericks owner has been discussing this market and getting involved, creating quite the buzz on Crypto Twitter at times. So unsurprisingly, when it came time for him to field questions from Twitter through WIRED Magazine’s “Tech Support” Youtube segment, people asked him about his latest thoughts on cryptocurrency.

With No Use Case, Bitcoin is Inherently Worthless: Cuban

When asked about cryptocurrencies during the segment, Cuban responded critically. Boiling it down to a single statement, Cuban argued that cryptocurrencies, “particularly Bitcoin”, is only worth what someone else is willing to pay for it. Then he elaborated, explaining how much like a baseball card or a piece of artwork, which are nice to look at and collect, Bitcoin does not have much of an underlying purpose.

Thus, its value is in the eye of the beholder. Thus, the business mogul equated Bitcoin to gold, explaining that they can both be defined as collectibles, are not alternative to fiat currencies, and are unlikely to succeed in a recession or if the traditional system crumbles. Cuban went on to underline issues in the cryptocurrency space at large, touching on how for “99% of the population”, using this new asset class is too complicated. “Should I put crypto on my device? Should I print out the key? Should I let someone host the cryptocurrency for me?”, he questioned as he tried to convey the relative difficulty of using an asset like Bitcoin over, say, a dollar. Cuban did, however, take some time to laud blockchain, arguing that there are many use cases for this technology class.

Is Cuban Right?

Cuban’s holistic stance on Bitcoin and cryptocurrency is similar to that taken by other leading economists and investors. Legendary value investor Warren Buffett, for instance, has claimed on multiple occasions that he sees not much more value in Bitcoin than he sees in a seashell or suit button. The issue is, Bitcoin, unlike traditional assets, don’t generate cash flow, distribute a fixed yield to holders, create products, and so on and so forth.

Despite the status of the individuals backing this claim, some have argued that the assertion that Bitcoin has no value is false. Parker Lewis, a team member at blockchain financial services company Unchained Capital, recently released an extensive blog post outlining how Bitcoin actually isn’t backed by nothing. Instead, Lewis argues, Bitcoin is backed by “the only thing that backs any form of money: the credibility of its monetary properties.”

Honestly, the post is quite elaborate and can get complicated at times. But the bottom line that Lewis argues is this: Bitcoin, through its decentralized protocol and distributed network of nodes and miners, offers society an arguably better alternative to the traditional fiat, which is rapidly being inflated away as “central banks [realize they need] to expand the monetary base in order to sustain the legacy system.”

Indeed. As outlined in a previous Blockonomi post, Bitcoin is unconfiscatable, decentralized, non-sovereign, immutable, censorship-resistant, global, public, and even more scarce than gold. This, analysts have argued, makes it a prime candidate to succeed in a world where governments and central banks begin to impose unorthodox policies, like negative interest rates and Modern Monetary Theory, to help stave a recession or depression in the fiat system.

Article Produced By
Nick Chong

Since 2013, Nick has shown interest in Bitcoin and cryptocurrencies. He has since become involved in the industry as a full-time content creator, working for NewsBTC, Bitcoinist, LongHash, among other outlets. Aside from covering the news, Nick is a Creative at Taiwanese technology company HTC.

Heiko Closhen, Entrepreneur

Venezuelan Central Bank Considers Adding Bitcoin to Balance Sheets

Venezuelan Central Bank Considers Adding Bitcoin to Balance Sheets


Despite operating its own largely unsuccessful, state-backed cryptocurrency,

the petro, the central bank of the Bolivarian Republic of Venezuela is also considering adding bitcoin to its balance sheets, giving state institutions the ability to settle payments in cryptocurrencies. Cryptocurrency mining has been especially popular in Venezuela for several years, due to factors such as the low cost of electricity and lack of access to financial institutions caused by international U.S. sanctions. Although the Venezuelan government launched the first state-backed cryptocurrency in 2018, the usage of world-renowned crypto assets like bitcoin has been steadily rising. 

On September 26, 2019, Bloomberg reported a new development in the Venezuelan crypto scene: the largest, state-backed oil company Petroleos de Venezuela SA (PDVSA) has made a formal request that the Venezuelan central bank deal in bitcoin and ethereum. According to Bloomberg, PDVSA is having trouble making and receiving payments through conventional channels, due to banks’ refusal to deal with Venezuelan businesses. However, PDVSA has in its possession a large, unspecified reserve of these two popular crypto assets. It believes that the Central Bank of Venezuela can use these reserves to pay off the company’s debts and receive payments without needing to go through traditional exchanges.

Circumventing Sanctions

The report claims that the Central Bank of Venezuela is seriously looking at its ability to make deals with this sort of asset. The Venezuelan government began officially experimenting with using BTC to circumvent various international sanctions in July 2019, so this development seems in line with previous behavior. Of particular interest, however, is the added note that the Venezuelan government is considering the feasibility of counting crypto assets toward the nation’s international reserves.

The Venezuelan government’s international reserves currently sit at the lowest point in three decades: $7.3 billion. Venezuela had previously entrusted a further $1.2 billion worth of gold to the Bank of England, which the bank has unilaterally refused to give back to them. Citing diplomatic ties to the United States and a disposition from both the U.S. and the U.K. to support Juan Guaido’s complete nonstarter of a self-proclaimed “interim presidency,” it does not seem clear if the bank will ever return such a substantial portion of the entire treasury back to Venezuela. Depending on how successful the central bank’s attempts to deal in bitcoin are, plans like this could help the hemorrhaging national economy regain some stability.

Article Produced By
Landon Manning

Landon Manning is a writer for Bitcoin Magazine.

Heiko Closhen, Entrepreneur

Bitcoin Magazine Week in Review

Bitcoin Magazine Week in Review


Bitcoin Magazine’s Week in Review brings you the most critical, interesting and popular news stories affecting Bitcoin this week.

With New Exchange Features, Wallets Aren’t Just for Storing Bitcoin Anymore 

The functionality of cryptocurrency wallets has been rather limited to straightforward asset storage, with a few branching out to asset transfers as well. However, a revolution is coming and it could transform how they operate completely. Developers are beginning to integrate exchange functionalities into hardware cryptocurrency wallets, essentially making it possible for inter-currency trading to be done.

Bakkt Opens Bitcoin Futures Trading, Clocks 29 Contracts in First 12 Hours

After months of speculation, cryptocurrency trading platform Bakkt launched its bitcoin futures contract offering this week. The contracts essentially enable investors to place speculative bets on the price of bitcoin in the future, and while these aren’t the first such products to be launched, the distinction here is that the contracts offered by Bakkt will be physically delivered — allowing traders be paid in bitcoin upon the maturity of the contracts, as opposed to in cash equivalents.

With 4.3 Million Bitcoin Mining Machines, Hash Rate to Hit 120 E by 2020

The bitcoin mining industry has continued to log new milestones, with miners riding this year’s cryptocurrency price rally, growing mining difficulty and the imminent reward halving in 2020. An industry report from China-based ASIC miner manufacturer Innosilicon has revealed that there are currently 4.3 million bitcoin mining machines on the network, with a demand for another 1.5 million yet to be filled. Once this market gap is filled, the report estimates that the total Bitcoin hash rate could increase by 75 exahashes by the end of the year. 

Sure, the Bitcoin Price Flash Crashed, but Hash Rate Is Fine

On Wednesday, reports surfaced that the Bitcoin hash rate dropped about 30 to 40 percent, following a price flash crash in bitcoin’s price from $10,000 to $8,300. Given the gravity of the fall in both metrics, speculations arose that the fall in price could be directly tied to the drop in the hash rate. Well, as it turned out, the hash rate is fine. The issue was a deviance in the block times that was being mined, nothing else. “It was just regular random fluctuations in block times. The longer time period over which you estimate hash rate, the more accurate your estimate is likely to be … and vice versa,” Jameson Lopp, the cypherpunk CTO of Casa, explained on Twitter.

Bitmain to Play Matchmaker Between Mining Farms, Miners With New Service

Bitmain, the largest manufacturer of bitcoin mining equipment in the world, is continuing to take advantage of the surge in the mining space. This week, the company launched the World Digital Mining Map (WDMM), a service which will essentially connect miners and mining farms together. With the WDMM, individual miners who need a cost-effective way to host their hardware can access a directory of mining farms close to them, complete with details of their efficiencies, their mining capacities and a host of other relevant specs. 

Bitcoin in Africa: Offering ‘New and Better Ways of Exchanging Value’

Appreciation for cryptocurrencies in Europe and the Americas is relatively high compared to attitudes in Africa. On that continent, knowledge about cryptocurrencies is sparse at best, but this can’t stop those Africans who are interested in cryptocurrencies from embracing them. In an interview with Owenize Odia, the country manager for Luno Nigeria, Bitcoin Magazine unearthed details about the current push for cryptocurrency adoption in Africa and how effective it has been so far.

25,000 Points of Sale in France to Accept Bitcoin Payments

News broke this week that France could see up to 25,000 points of sale within the country accept bitcoin as a means of payment next year. The initiative will see retail software provider Global P.O.S. leverage its wallet application EasyWallet and payment processor Easy2Pay to enable the payment option. Cosmetics giant Sephora, sports gear company Decathlon and others are expected to be part of the program, which will be launching in 2020.

Article Produced By
Jimmy Aki

Jimmy has been following the development of blockchain for several years, and he is optimistic about its potential to democratize the financial system.

Heiko Closhen, Entrepreneur

Bitcoin Price Sideways Market Stretches on What Will Change It?

Bitcoin Price Sideways Market Stretches on… What Will Change It?


Despite a bump over the weekend, the bitcoin price continues to sustain its $10,000 level,

trying to balance a sideways movement and walk away from any bearish channel influence. Let’s look at the charts to see where that could take us, in our weekly technical analysis report.

Bitcoin Price Technical Analysis

Long-Term Analysis

After a developing rise from the $4,000 USD level (started in April 2019) reached $14,000 in June 2019, the bitcoin price stayed in a sideways lateral market around $10,000, which would last for another month. From there a bullish consensus gained strength, and even current sideways movements are trying to walk away from the bearish channel influence. High exposure to external factors spreads the general will around, and offer and demand seem to be fragilely balanced. A high volatility scenario configured a 4,000 basis point range, recognizing $9,000 as a support and a target near $15,000. That’s if and when values overcome $12,000, moving institutional investors to re-enter the game. On the other hand, current distribution patterns are still active, and if the $9,000 support level is broken, our next scenario would include a deep fall to $6,000.

Mid-Term Analysis

Mathematical Indicators arrived at the bottom without knocking down the quotes, and started to turnover bringing positive signals. However they also failed to stimulate a trend to go up steadily, and quotes keep reinforcing the lateral development structure around $10,000. Even high volatility action could be considered a reason to allow a bullish chance, now backed by technical tools, if the current dispersed and erratic general will receives some news or external factor stimuli that unifies majority criteria. Should that happen, the target to the up side should coincide with a big triangle pattern near $15,000… or near $6,000 if it breaks to the down side instead.

Short-Term Analysis

Elliott Wave Theory’s counting seems to be starting a third upward movement, heading the trend to the $12,000 level. If this theoretical development confirms, the fourth wave could correct from there to $10,500 in October and a fifth upward one to higher levels would start on November to overcome $15,000. On the other hand, Japanese Candlestick Fairy Soldiers’ strength could decay if they’re still defending their current level from offer´s Crow distribution action, without moving up to transfer the action over $12,000. Bollinger Analysis is still neutral, reflecting prices over the centerline but without the stamina to go higher, breaking the channel’s upper bound. If offering action gets overflowed by some external factor, all the activity could shift down to get locked for another two months at a lower point, cancelling the bullish chance.

Article Produced By
Ramiro Burgos

Ramiro is a technical analyst specializing in stocks, futures, options and Bitcoin. He provides weekly analysis on the bitcoin price for Bitsonline. Based in Buenos Aires, Argentina, Ramiro has worked in the financial industry since 1987, with his technical analyses appearing in local and global news publications.

Heiko Closhen, Entrepreneur