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Monday September 16 2019, Weekly News Digest

Bitcoin volatility

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United States

Bitcoin Mining Power Hits New High as Half a Million New ASICs Go Online (CoinDesk), Rated: AAA

The computing power dedicated to mining bitcoin has hit yet another new high, suggesting that more than 600,000 powerful new machines may have come online in the last three months.

According to data from crypto mining pool BTC.com, bitcoin’s two-week average hash rate has crossed another major threshold, reaching 85 exahashes per second (EH/s) around 19:00 UTC last Friday. Meanwhile, mining difficulty also adjusted to a new record of nearly 12 trillion.

Notably, both figures have jumped 60 percent since June 14, the data shows.

Bitcoin hashrate
BTC.com

What Bitcoin’s Valuation Says About Its Volatility (CoinDesk), Rated: AAA

Bitcoin’s volatility has often been cited as the reason why it will never make a good store of value, a reliable payment token or a solid portfolio hedge. Many of us fall into the trap of assuming that as the market matures, volatility will decrease. This leads us to believe in use cases that may not ever be appropriate; it can also lead us to apply incorrect crypto asset valuation methods, portfolio weightings and derivative strategies that could have a material impact on our bottom line.

First, there are different types of market volatility. Academic literature provides an array of variations, each with its distinct formula and limitations. Jump-diffusion models used to value assets hint at a helpful differentiation. “Jump” volatility results, as its name implies, from a sudden event. “Diffuse” volatility, however, is part of the standard trading patterns of an asset, its “usual” variation.

The standard deviation calculation – the most commonly applied measure of volatility – incorporates the destabilizing effect of sharp moves by using the square of large deviations (otherwise they could be offset and masked by small ones). But this exaggerates the effect of outliers, which are often the result of “jump” volatility. These are likely to diminish as transaction volume grows, leading to a misleadingly downward-sloping volatility graph.

JP Koning proposes an alternative calculation that uses the deviation from the middle value rather than the average, which reduces the effect of outliers and shows a more intrinsic volatility measure.

Bitcoin volatility

Bitcoin’s heading to a new all-time high along with the S&P 500, says Fundstrat’s Tom Lee (CNBC), Rated: A

“Bitcoin has kind of stalled recently because the macro outlook has stalled. I think, in a world without trend, bitcoin doesn’t go up,” Lee said Thursday on CNBC’s “Fast Money.” “The next big catalyst, I think, is a decisive breakout in the equity markets, because I think once equities break to an all-time high, bitcoin becomes a risk-on asset.”

In other words, according to Lee, as stocks go, so goes bitcoin — at least for now.

Bitcoin S&P 500
Source: CNBC

This Week Could Be Big For Bitcoin as Breakout Nears (NewsBTC), Rated: A

Bitcoin traders turned off their terminals and occupied themselves with other things this weekend as the king of crypto barely moved. The BTC trading range is getting tighter which can only mean one thing – a breakout is imminent.

Bitcoin candlestick
Source: NewsBTC

The Bitcoin Driven Power Shift from Bureaucracy to the Masses (Hacker Noon), Rated: A

Just as the individual control of fire radically changed the balance of power between humans and nature, individual control of the creation, transfer, and storage of value shifts the balance of power between ordinary humans and The Bureaucratic Machine which maximizes energy to value conversion.

Hence, energy to value conversion efficiency is a key RCD [1] advantage among humans and maximizing its value is key for increasing living standards as our global population approaches 8 billion.

Bitcoin Has Outperformed More Than 92% of ICOs (Be in Crypto), Rated: A

It’s no secret that the overwhelming number of ICOs during 2017 and 2018 failed spectacularly. However, if you look at the sheer number of losses when compared to Bitcoin, it becomes truly apparent that BTC is the benchmark for the entire cryptocurrency industry.

XRP Fork Unlikely to Succeed, Ripple Continues to Face Angry Investors (Coin Telegraph), Rated: AAA

The threat of an XRP fork is looming over Ripple, the San Francisco-headquartered startup behind the third-largest asset on the cryptocurrency market.

Twitter user @Crypto_Bitlord, who has over 100,000 followers and claims to own XRP, is rallying XRP investors disappointed with the token’s performance to split from the original ledger due to Ripple’s alleged XRP dumping. The plan follows a moderately popular Change.org petition submitted by the same Twitter persona titled “Stop Ripple Dumping,” which has amassed more than 3,500 signatures over the last four weeks.

Ripple Records 4% Surge Since Yesterday; Climbing Back to

Ripple Records 4% Surge Since Yesterday; Climbing Back to $0.26 (CryptoNewsZ), Rated: A

.26 (CryptoNewsZ), Rated: A

As on September 15, 2019, at 07:00:30 UTC, the price of XRP token is noted to be $0.26, and it is moving in the upward direction. The coin has recorded an uptrend of over 4% since yesterday climbing from $0.25 to its current value. It started on a low-end yesterday but soon gained momentum to climb up to $0.26 and has stayed there since then.

XRP
Source: TradingView and CryptoNewsZ

Litecoin has arrived with gains by recording 3% surge in a day (CryptoNewsZ), Rated: AAA

As on September 15, 2019, at 06:57:20 UTC, the price of LTC is noted to be $70.72, and it has recorded an uptrend of over 3% since yesterday rising from $68.60 to its current value. LTC dipped up to $68.38 yesterday before gaining strength to climb up the ladder and reach $71.33 mark. The coin has stayed on top since then and moving around $70 for the last couple of hours.

Litecoin
Source: TradingView and CryptoNewsZ

Calibra executive: Why Facebook’s Libra needs a blockchain (Decrypt), Rated: A

Facebook has drawn a lot of heat over its plans to create a cryptocurrency called Libra, set to launch in late 2020. Many argue that it could simply use traditional payment networks instead, and avoid all the fuss. But, Tomer Barel, COO at Calibra (which is running the Libra project), explained why it was going to all the trouble  during a Q&A at Ethereal.

Barel said that fiat money is broken and  “that for a currency to be successful, it cannot be controlled by a single entity. This is what blockchain brings us.”

Square’s Crypto Branch To Provide $ 100K To BTCPay Foundation (PYMNTS), Rated: A

Square Crypto has announced that it is giving the first of many grants to support open-source bitcoin projects to the BTCPay Foundation.

The crypto-focused branch of mobile payment company Square is giving the BTCPay Foundation a grant of $100,000 to support BTCPay Server, an open-source cryptocurrency payment processor that can allocate the funds to create anything, “as long as it’s free and open-source software that improves the security, scalability, privacy, user experience or fungibility of bitcoin — or all of the above.”

Crypto lending firm BlockFi now lets clients earn interest on any amount of crypto holdings (Tokenpost), Rated: A

Cryptocurrency lending firm BlockFi announced that it has dropped minimum deposit requirement in its BlockFi Interest Account (BIA) and will pay interest on any amount of Bitcoin (BTC), Ether (ETH), and Gemini Dollar (GUSD).

AirSwap vulnerable to attacks on its smart contract network (Cryptopolitan), Rated: A

Ethereum-based AirSwap detected a vulnerability in its AirSwap smart contract. The flaw was discovered by the internal security team, which noticed the flaw on Thursday. The team revealed the information through a medium post. The problem seemed to be in the mainnet of the smart contracts.

$ 15M Worth of Stellar (XLM) Moved to the Crypto Exchange Kraken (All-Stock), Rated: A

‘Whales’ are known to make big moves in the world of cryptocurrency and it’s very common for them to make transactions crossing millions of dollars worth in crypto. But a recent transaction of a huge sum of Stellar (XLM) has some people worried about the digital coin’s future.

Whale Alert, a real-time tracker of large crypto transactions alerted on its Twitter account about the transfer of 260,000,000 XLM virtual coins, which at that time were worth $15,008,070 to a wallet belonging to the crypto exchange firm Kraken.

Why the Dash Coinbase Listing Signals a New Era for Altcoins (Dash News), Rated: A

As an unfortunate result of all this, Dash ended up being a project blacklisted by the intelligentsia. Over the years I heard countless individuals decry Dash as a scam, with no clear reason why or evidence behind it. For a while this seemed to be mostly trolls, but after a while I noticed serious figures with valuable placement in the ecosystem were saying the same things. I heard a few say that their company stayed away from Dash because of this reputation issue. All unfounded, mind you. This likely delayed a potential Coinbase listing for Dash for years.

Switcheo integrates with Coinbase Wallet’s WalletLink API, expands access to all modern browsers (NEO News Today), Rated: A

Switcheo has announced it has integrated its non-custodial exchange with Coinbase Wallet’s WalletLink API. The WalletLink integration now allows “Coinbase Wallet users [to] securely access and administer their funds to trade on Switcheo from any modern browser.”

3 Reasons Why You Should Use a Broker To Buy Cryptocurrency (Hacker Noon), Rated: A

US regulators to allow Bakkt to launch a Bitcoin backed futures exchange is a clear sign that Bitcoin is here to stay.

#1 Greater Liquidity Pool
For every asset that is bought or sold, whether it is cryptocurrency or forex, needs to have someone to sell to or buy from. The more people buying and selling, the more liquid an exchange is considered.

#2 Reduced Spread and Slippage Fees
A common mistake is selecting a new cryptocurrency exchange based on its low trading only. This might seem like an attractive proposition and logical decision to maximise a fiat deposit in exchange for more cryptocurrency.

#3 Increased Cryptocurrency Pairs to Trade
Being stuck in an altcoin trade and not being able to get a fill can be a common problem on exchanges that offer 100 or 200+ tradable assets.

Donald J. Trump Banning Cryptocurrencies, is it a Rumor or What? (Tron Weekly), Rated: A

Back in March 2018, President Donald J. Trump signed an executive order which was presented to ban the Venezuelan cryptocurrency. As per the updates, that order is about to change into a law.  

According to Jason Brett, founder of Value Technology Foundation, a research company working on blockchain, around 20 bills related to blockchain are under consideration by the U.S. Congress.

In the executive order, it was mentioned that the U.S. nationals and organizations would be banned from holding, trading, buying, and spending Venezuelan crypto, Petro. The Senate bill 1025 is set to be approved by the U.S. government, maybe on the coming Monday (tomorrow). After the approval of the bill by Senate, the executive order signed by the President will become a law.

City Council member 1st elected official to buy cannabis with cryptocurrency (The Daily Californian), Rated: A

Berkeley City Councilmember Ben Bartlett became the first elected official to purchase cannabis with cryptocurrency at a demonstration facilitated by the Blockchain Advocacy Coalition on Tuesday.

International

Central banks to question Facebook over Libra cryptocurrency (Engadget), Rated: AAA

Facebook is about to undergo further scrutiny of its Libra cryptocurrency, and it may have to answer some difficult questions. Officials speaking to the Financial Times said that Libra representatives are meeting with officials from 26 central banks (including the Bank of England and the US Federal Reserve) in Basel, Switzerland on September 16th. The European Central Bank’s Benoît Coeuré is expected to chair the gathering, which will question Facebook over the digital money’s “scope and design.”

Wake up, US Federal Reserve! China just showed how digital currency is done (VentureBeat), Rated: AAA

Recently, China’s central bank — People’s Bank of China (PBOC) — surprised the business and crypto world with its plan to launch a central bank-backed digital currency (CBDC). The news came after the announcement of Facebook’s Libra, creating a perception that China is playing catch-up. But China has put more than five years into researching the idea, and the product, DC/EP (Digital Currency Electronic Payment), was reported even back in 2018.

Money Flower
Source: VentureBeat

As expected, most responses to the idea so far have focused on how DC/EP could become the biggest competitor to well-known stablecoins such as DAI and Tether, as well as to Facebook’s not-yet-launched Libra. But the most significant impact China’s DC/EP could have involves another sector: payments.

Cash
Source: VentureBeat

I believe China’s DC/EP product is designed to replace the mobile payment systems in China. China’s mobile payment market is enormous, and its volume reached 277 trillion RMB in 2018. That’s about 38 times greater than China’s M0!

Alipay and WeChat Pay are the dominant mobile payment juggernauts in China and have a combined 90%+ market share.

Bitcoin, Ethereum, Ripple’s XRP, And Litecoin Could Be Heading Into Their Biggest Week Ever (Forbes), Rated: AAA

Bitcoin and major cryptocurrencies including ethereum, Ripple’s XRP, bitcoin cash, and litecoin, could be primed for one of their biggest ever weeks as traders and investors gear up for the launch of the U.S.-based Bakkt bitcoin and cryptocurrency platform.

Now, Bakkt, which began allowing clients to deposit bitcoin into its warehouse at the beginning of this month, will launch its so-called physical bitcoin futures contracts on 23 September.

A closely-watched bitcoin price indicator has turned bullish and appears to be echoing moves seen in 2015 ahead of bitcoin’s massive 2017 bull run, data from bitcoin and crypto exchange Bitstamp, first reported by cryptocurrency trade site Coindesk, showed.

bitcoin ethereum litecoin ripple

European Union

ETH Miners Eye New Ethereum Gas Limit Amid Tether “Clogging” Fears (Ethereum World News), Rated: AAA

Earlier this year, Tether suddenly started to migrate USDT, its flagship stablecoin, operations from the Bitcoin-based Omni network to Ethereum (ETH).

This move was seen as a way to take advantage of Ethereum’s quicker block times, higher transactional throughput, and technical ease-of-use that may not be had with something like Omni. Indeed, within a few weeks, many started to take advantage of the ERC-20 version of USDT, resulting in a massive increase in transaction volumes and network usage for Ethereum. Just look to the chart from Etherscan below, which shows that for the first time in about forever, the network’s utilization (defined by average gas per block used over the gas limit per block) has consistently trended in the 90s.

Simultaneously, the transaction fees obtained by miners in the Ethereum network has begun to trend higher, moving from the baseline ~400 ETH per day to over ~800-900 ETH every day over the past week.

eth network
Source: Etherescan.io

Ethereum Price (ETH) Surging While Bitcoin Trading Sideways (NewsBTC), Rated: AAA

In the past analysis, we discussed the chances of an upside break in ETH price above the $185 resistance against the US Dollar. The price did gain traction and broke the main $185 and $186 resistance levels. Moreover, there was a close above $185 and the 100 hourly simple moving average. It opened the doors for more gains above the $190 level. On the other hand, bitcoin price remained in a range above the $10,300 level.

Ethereum price even broke the $192 level and traded to a new weekly high at $195. The current price action indicates more gains above the $195 level. If there is a downside correction, an initial support is near the $193 level. It coincides with the 23.6% Fib retracement level of the recent upward move from the $187 swing low to $195 high.

Ethereum
Source: NewsBTC

Vitalik Buterin speaks out on privacy, DeFi and Ethereum 2.0 (Yahoo! Finance), Rated: A

Talking with Ejaaz Ahamadeen, lead token architect at Digital Assets, a part of the Brooklyn incubator ConsenSys (which also funds Decrypt),  Buterin discussed the big gains made by privacy tools in recent weeks, the potential of decentralized finance (DeFi) and the roadmap of Ethereum 2.0.

The process he was referring to, dubbed Eth2Beaucoup, involves seven Ethereum 2.0 clients (versions of the upcoming blockchain platform upgrade) linking up and running in sync with each other. It’s regarded as a significant milestone in this phase of Ethereum’s development.

Binance Chain Hard Fork Archimedes Activates Atomic Swaps and Smart Contract Support (U.today), Rated: A

The recently launched Binance Chain testnet has completed its first hard fork upgrade Archimedes to make the network more stable and introduce new features

Binance CEO: Bitcoin Futures Platform ‘SAFU’ After Attack False Alarm (Coin Telegraph), Rated: A

The CEO of cryptocurrency exchange Binance has dispelled fears a bad actor had attacked its newly-launched Bitcoin futures platform.

In a series of tweets on Sept. 16, Changpeng Zhao, also known as CZ, initially warned that the exchange’s futures were under attack from one of its own market makers.

The perpetrator allegedly crashed the BTC/USD order book from $10,324 to $10,024, in what Zhao said was the second such attempt at an attack.

Trust Wallet finalizes Cosmos {ATOM} staking integration; unexpected bull-run ends at #19 (Our Bitcoin News), Rated: A

As you can understand from the title, Cosmos is positioned at #19 under IOTA but above Tezos in the market. The price soared at a rate of 2% in the course of the past 24-hours. The trading volume recorded is $184.007 million, while the supply has 190,688,439 ATOM coins involved in circulation. Currently, the total market cap of Cosmos is $669.716 million. ATOM is priced at $3.51 for now.

Cosmos
Source: @TrustWalletApp

Germany’s Largest Bank Joins JPMorgan’s Blockchain Network (Coin Telegraph), Rated: A

Germany’s largest bank, Deutsche Bank, has joined JPMorgan’s blockchain-based network, the Interbank Information Network (IIN).

Launched as a pilot in 2017, the JPMorgan-led blockchain initiative now has a network of 320 banks that have entered the platform to swap global payments data using the Ethereum network, the Financial Times reported on Sept. 15.

ÆTERNITY Launches Inaugural Universe One Conference in Prague to Showcase Entire Æcosystem (GlobeNewswire), Rated: B

Æternity, the next-generation, open-source blockchain for building decentralized applications, today officially announced its Æternity Universe One conference, the first conference dedicated to the Æternity ecosystem, including Æternity Blockchain, Crypto Foundation and Æ Ventures. The conference is scheduled for Sept. 20-21 at the Paralelni Polis in Prague, one of the most celebrated spaces in Europe’s crypto community, and home to both the Institute of Cryptoanarchy and Hackers Congress.

Central Banks to Meet With Libra Founders in Switzerland on Monday (Coin Telegraph), Rated: B

On Sept. 16, Libra representatives will meet with the Committee on Payments and Market Infrastructure (CPMI), a part of the Bank of International Settlements (BIS), in Switzerland, the Financial Times reports on Sept. 14.

According to Coeure, the ECB started to work on its little-known digital currency project plan before the launch of Libra.

United Kingdom

UK Authorities To Monitor Crypto Wallet Users (Inside Bitcoins), Rated: AAA

The Financial Conduct Authority (FCA) in the UK has proposed regulations to further monitor crypto related activity in the country.

The regulatory authority says that these regulations will be put into effect within the next year.

Firms that produce open-source software, and companies which provide wallet software, will also be governed by these regulations.

China

Libra, China, and the future of digital currency (Technode), Rated: B

Libra china
Source: Technode
Australia

Regulators scramble as global blockchain applications proliferate (Australia Financial Review), Rated: AAA

On Monday night in Switzerland a group of more than two dozen central bankers will meet members of the Libra Association, as they scramble to get their heads around the new cryptocurrency that Facebook, eBay, Spotify and other tech giants want to create, for sending money across the world’s biggest internet platforms.

Queensland’s REIQ implements blockchain for tenancy agreements (ZDNet), Rated: A

The Real Estate Institute of Queensland (REIQ) has announced partnering with local startup Igloo to develop a blockchain-based tenancy agreement platform.

The partnership will see residential tenancy agreements executed as digital smart contracts in Queensland by the end of this year.

APAC

The toss of a Bitcoin: How crypto ban will hurt 5 mn Indians, 20K Blockchain developers (The Economic Times), Rated: AAA

In 2017, it was reported that the Reserve Bank of India (RBI) was considering a proposal to introduce its own cryptocurrency akin to Bitcoin. The digital token was to be called Lakshmi – after the goddess of wealth. The idea died a premature death.

The “Banning of Cryptocurrency and Regulation of Official Digital Currency Bill 2019” draft has proposed a 10-year prison sentence for anyone who “mines, generates, holds, sells, transfers, disposes, issues or deals in cryptocurrencies”.

Nischal Shetty, founder and CEO of the cryptoexchange WazirX, says that the volume of crypto trading has been rising over the past few years.

7 Cryptocurrency Trends to Keep Watching in 2019 and Beyond (Toshi Times), Rated: A

Updated Regulatory Standards

The hacks such as the one where Tokyo cryptocurrency exchange lost $32m are thus a major cause of concern.

Security Token Offerings

Ripple Experiences Growth 

Retail Adoption of Cryptocurrency 

Gemini and Flexa have already announced a partnership with major retailers to start accepting crypto payment options at various stores. Retailers such as Baskin Robbins, Whole Foods and Crate and Barrel, GameStop now accept crypto in their businesses.

Bitcoin and Ethereum Dominance Continues 

There are over 1500 cryptocurrencies online, but these two continue their dominance.

Philippine Police Raid Alleged Cryptocurrency Scam, Arrest 277 (Coin Telegraph), Rated: A

Philippine police have reportedly raided the offices of an alleged cryptocurrency scam that was targeting investors in China.

According to a Sept. 15 report by local news outlet Inquirer.net, agents from the Bureau of Immigration, the Presidential Anti-Corruption Commission and the National Police’s Integrity Monitoring and Enforcement Group raided the offices of Grapefruit Services Inc. in Pasig City on Sept. 11.

MENA

eToro’s New Open-Source Programming Language Is First Step in Bringing $ 500 Trillion OTC Derivatives Market onto the Blockchain (NewsBTC), Rated: AAA

eToro, the global multi-asset investment company, has today released the details of Lira, a new open-source programming language for financial contracts. Lira is the first step in bringing the $500 trillion OTC derivatives market onto the Blockchain by introducing a new formal contract language.

Vitalik Buterin at Ethereal: This Is How I’d Eliminate ICO Scams (Cryptopotato), Rated: A

The Ethereal Summit is currently taking place in Tel Aviv. One of the more interesting panels included Ethereum’s co-founder, Vitalik Buterin. Titled “Q&A On Ethereum 2.0 With Vitalik,” the discussion touched on plenty of things concerning the future of the network, including scalability solutions.

Discussing one of the hottest trends of the past few months, Decentralized Finance (DeFi), Buterin touched upon a matter which has generated plenty of concern since 2017: the unacceptable number of scam Initial Coin Offerings (ICOs).

Africa

Africa Using Blockchain to Drive Change: Nigeria and Kenya, Part One (Coin Telegraph), Rated: AAA

Blockchain adoption in Africa is on the rise. From transportation to the gaming and lottery industries, reports of companies utilizing decentralized ledger technology (DLT) across the continent are emerging. Several stakeholders in the African blockchain scene say DLT is the key to solving the developmental issues plaguing the continent as a whole. They also believe the technology provides a platform for Africa to elevate itself to a position of greater relevance in global affairs.

Nations such as Kenya and Nigeria have announced plans in recent months to pursue regulation and greater cooperation with the private sector to leverage the benefits accruable from blockchain utilization.

Africa blockchain

Canada

KleanLoop A Decentralized Blockchain DApp For Creating Transparency In Tyre And Plastic Recycling (Yahoo! Finance), Rated: A

Klean Industries Inc. (“Klean”) is pleased to announce the development of the KleanLoop, a Blockchain-based platform, that now enables transparency across the waste to energy, resource recovery and recycling industries. Klean has completed its initial pilot testing phase over the past six months. Beta testing is also complete, and when released live, the KleanLoop will enable recycling companies to transmit essential information on waste and recyclables to all stakeholders within the value chain in a reliable and transparent manner.

Micronesia

Marshall Islands to launch digital currency (Deccan Herald), Rated: AAA

The Marshall Islands is proceeding with the creation of a blockchain-based national currency, the Marshallese sovereign or SOV, the country said in a statement. David Paul, the environment minister and minister-in-assistance to the president of the Marshall Islands, spoke about the venture.

Latin America

Crypto News From Brazil: Sept. 9–15 in Review (Coin Telegraph), Rated: AAA

A court in Rio de Janeiro has ordered supposed investment scheme Unick Forex to pay $28,500 to a client who filed a lawsuit against the company for a delay in platform withdrawals and moral damages.

The State Court of Justice in Sao Paulo has made a block request to several Bitcoin trading companies such as Bitcoin Market and Atlas Quantum.

On Sept. 10, the CVM stated that companies or individuals who raise funds from third parties for investment in cryptocurrencies need authorization from local municipalities.

Former soccer player Roberto Carlos emerged this week as an ambassador for the new casino cryptocurrency LUCK from online gambling company LUCKY.io.

On Sept. 9, Cointelegraph Brasil reported that a member of the parliamentary commission that intends to regulate Bitcoin and cryptocurrencies was accused of several scams and fraud.

Authors:

George Popescu
George Popescu
Allen Taylor
Allen Taylor

About the author

Allen Taylor

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