cryptocurrency News and Updates from The Economic Times
The request comes in the wake of the recent Supreme Court order that struck down the central bank’s April 2018 circular that disallowed banks and regulated entities from facilitating trade in cryptocurrencies.
IAMAI had argued in the SC that the RBI circular was disproportionate. “They (Three-judge bench) have cited the ground of proportionality which is the doctrine that the fundamental right cannot be infringed upon in a disproportionate manner – in other words a measure has to be rationally connected to the ends,” said Jaideep Reddy, lawyer at Nishith Desai Associates.
The funding signals hope for an industry that floundered in the last two years amid the ban, during which time several exchanges had to shut up shop. Liquidity fell drastically and it became challenging to operate the business.
Bitcoin volatility has been cut in half
According to Digital Assets Data, the volatility of Bitcoin in the period before the next halving was lower than in the two previous events in 2012 and 2016. Given the higher maturity and market knowledge, analysts take this gradual reduction in volatility for granted.
Halving is an event that occurs in Bitcoin every four years. In Bitcoin, mining machine rewards are reduced by half. As a result, the supply rate of new bitcoins on the market will decrease, and if demand is maintained, this will often lead to an increase in cryptocurrency prices.
Usually the market starts to react a few months before the event. For example, considering the six months before the event and the six months after the event, the price of cryptocurrency was reduced by 2,000% in 2012. In the second half, taking the same time parameters into account, the reaction was not so extreme that the reaction reached 100%.
The situation was different in the six months before the next halving. Bitcoin accumulated from November 2019 to April 2020, and the US dollar fell 19.8%. However, it should be remembered that Bitcoin has been corrected more than half due to the corona virus crisis. In these six months, the price has increased by 13% compared to November 2019. In any case, the volatility before the next Bitcoin halving is much less than before.
BitBull Capital's Cryptocurrency Hedge Fund Manager and CEO, Joe DiPasquale, said in an article published in Forbes: "Over the years, due to increased liquidity, global participation changes, regulatory developments and institutional participation have made the market more stable."
Over the years, the market has become more stable due to increased liquidity, diversification of global participation, regulatory developments and institutional participation.
David Martin, an independent cryptocurrency analyst, said that as assets mature, there are more market participants and more efficiency. He compared Bitcoin to Amazon, a small technology startup whose stocks are as volatile as Bitcoin. "As the company matures, volatility gradually decreases."
New financial products developed by Bitcoin such as derivatives, better investor knowledge, regulatory structures and financial infrastructure have also contributed to this greater stability. In addition, there is more historical data that can be used to analyze the market and formulate better investment strategies.
In the current halving, which first appeared in PanoramaCrypto, the volatility after Bitcoin was lower.
Information source: compiled from PANORAMACRYPTO by 0x information. The copyright lies with the author Redação and may not be reproduced without permission
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TOP 5 Bitcoin & Crypto News: 13 April 2020
XRP price prediction, BTC Halving not following BCH’s pattern, BTC’s supply hits ATH, BTC fixing the global reserve currency, and China speeds up blockchain adoption.
The new week appears to have started mostly in the red. The Dow Jones Industrial Average (DJIA) dropped 328.60 points (1.39%) to close at 23,390.77, while the S&P 500 lost 28.19 points (1.01%) to close at 2,761.63. However, the NASDAQ Composite went up 38.85 points (0.48%) to close at 8,192.42. Dr. Anthony Fauci, Director of the National Institute of Allergy and Infectious Diseases, is cautiously optimistic that the COVID-19 pandemic is slowing down in the United States. He also said that parts of the country may start to reopen next month.
As for news within the crypto world, some of U.Today’s major headlines include an XRP price prediction, the Bitcoin (BTC) Halving event not following the pattern of Bitcoin Cash (BCH), the active supply for Bitcoin (BTC) hitting a new all-time high (ATH), Bitcoin (BTC) fixing the global reserve currency dilemma, and the Chinese government speeding up its adoption of blockchain technology.
If buyers are able to restore the price of XRP above its $0.187 support level, then they may be able to gain a foothold for a short time in the lateral range. However, a decline may continue towards the $0.172 area.
Looking at the daily chart, XRP has remained above the rising channel, resulting in a short-term bearish trend. The current drop is the result of a fall in trading volume and a support level between $0.16 and $0.1650. If the volume remains at the same level, then sellers may be to reach this support within days.
Matti Greenspan, Founder of Quantum Economics, believes that Bitcoin (BTC), Bitcoin Cash (BCH), and Bitcoin SV (BSV) are in different leagues. According to Greenspan, BCH’s halving has nothing in common with the tokenomics sense of halving (‘quantitative hardening’). BTC’s halving is ‘real’ as it will bootstrap the digital asset’s scarcity and catapult the price.
After its halving, BCH tanked 83%. This resulted in a 51% increase of a probable attack as the cost a hacker would have to pay to successfully complete such a task dropped to $7,550 per hour.
BSV miners moved their capacity to the BTC network due to its unprofitability. This resulted in a hash rate crash for both BCH and BSV below 1 EH/s.
New data from Glassnode reveals that investors have been actively moving Bitcoin (BTC), and that crypto exchanges are losing their status as popular locations for crypto storage. The active supply for BTC has surged over the past three months, hitting a new all-time high (ATH) of 1,698,181,749. This seems logical with the upcoming BTC halving, which takes place on May 12.
With a surge in the number of wallets containing more than one BTC, Glassnode also reported a decline in the number of BTC exchange deposits over the last three years, reaching an all-time low (ATL) of 777,333.
According to Twitter user @im_goomba, BTC’s dominance has dropped and may see another decline soon.
In a recent tweet, Preston Pysh, Founder of BuffettsBooks.com and videos on financial investing, mentioned the Triffin Dilemma (Triffin Paradox), a major economic problem that economist Robert Triffin says is connected to the US Dollar (USD) being the global reserve currency. To solve this dilemma, Triffin suggested introducing a special international currency that not be pegged to the USD or gold.
Prominent analyst and stock-to-flow model creator ‘PlanB’ stated that Bitcoin (BTC) can fix the Triffin Dilemma.
Unlike the USD or any other currency, there are only 21M Bitcoins programmed into circulation. With each new halving, the amount of new BTC in circulation gets cut in half, making it a deflationary currency.
As previously reported by Reuters, a group of central banks are about to start creating a central bank digital currency (CBDC) in order to solve the setbacks in the financial system brought on by the COVID-19 pandemic. This could be rolled out within the next three years.
In Shenzhen, China, the government of the Nanshan District has inked a deal with Huawei in order to help propel the adoption of blockchain and other cutting-edge technologies such as 5G and big data. According to the Global Times, the city will become a model for the semiconductor industry.
As previously reported by U.Today, the People’s Bank of China (PBoC) teamed up with Huawei to start testing its own digital currency in Shenzhen and Suzhou with major commercial banks and other industries such as healthcare.
While China is yet to change its attitude towards Bitcoin (BTC), blockchain technology does hold a lot of promise for the Communist State. In 2019, China accounted for 22% of all blockchain-related VC deals.
Author: Mon, 04/13/2020 – 01:47
Peter Schiff Warns Bitcoin Investors of an Upcoming Pricey Lesson
With all of the uncertainties in the world due to coronavirus, such as grappling with when to restart the U.S. economy, one certainty has rung true for the cryptocurrency community and that’s the upcoming halving event.
On about May 12, the reward for miners will be slashed in half from 12.5 BTC per block to 6.25 BTC, as per the network’s design by Satoshi NakamotoWe don’t know much about the founder (or founders) of Bitcoin — Satoshi Nakamoto — as he pretty much disappeared… More. The event has historically been bullish for the Bitcoin price, which has fueled optimism among cryptocurrency investors that this year will hold similar fortunes. Nonetheless, Euro Pacific Capital CEO Peter Schiff has offered an ominous warning to Bitcoin holders, saying in a tweet that they’re “about to learn a very expensive lesson in economics.”
Trying to explain the concept of money to a #Bitcoin hodler is like banging your head against a wall. These guys are about to learn a very expensive lesson in economics and gain a new appreciation for the age old saying “easy come, easy go.”
— Peter Schiff (@PeterSchiff) April 13, 2020
The thing of it is that Schiff appears to be missing the forest from the trees. While he has been accurately warning of an impending economic crisis for years, and the fragility of the monetary system, he refuses to recognize the shared features between the precious metal gold and “digital gold” Bitcoin.
For instance, both assets are scarce, given only 21 million BTC will ever be mined and 171,300 tonnes of the precious metal. [BBC] Both gold and Bitcoin can act as a hedge vs. economic inflationMost people who know anything about the economy have heard the word inflation. It is usually thrown around as a… More and have been known to trade in an uncorrelated manner to equities, though Bitcoin is still finding its sea legs here. And perhaps most convincingly, neither gold nor Bitcoin are appealing to billionaire investor Warren Buffett. [Forbes]
Schiff also reminds them of the saying, “easy come, easy go.” The problem with this theory, however, is that barring a few exceptions such as the ICO-fueled bubble of 2017, nothing about Bitcoin has been easy.
The Bitcoin price has taken investors on a roller coaster ride, one that has been impossible to predict even among the most sophisticated traders. Nonetheless its value has increased in a little more than a decade to a current market cap of $123 billion, which reflects the value that investors are willing to assign to the cryptocurrency. Ask long-term investors who have weathered the storm if recent gains have come easy.
Bitcoin is also now in the throes of its first real financial crisis, and while it hasn’t always been smooth sailing, the flagship cryptocurrency is holding its own.
Bitcoin’s model has also threatened the status quo of easy monetary policy, which for any emerging asset class is nothing short of a herculean task. Perhaps the sticking point for gold investors like Schiff is the fact that Bitcoin has introduced another store-of-value and exchanging-value asset to investors, one that threatens to steal even more market share from the precious metal than it already has.
Author: Illustrations by A. Gnetova and G. Phan
Crypto Today: Bitcoin forms deadly evening star formation
BTC/USD is currently trading at $6700 (-4.15%), bearish momentum comes back into play following a critical $7000 breach.
ETH/USD is currently trading at $152 (-5.45%), market bears are testing an important daily support at $150.
XRP/USD is currently trading at $0.18 (-3.20%), the sellers were able to regain control following the failure to conquer $0.2000.
Among the 100 most important cryptocurrencies, the best of the day are KMD $0.426656 (+8.80%), QNT 4.54 (+6.35%) BCN $0.000261 (+4.15%) The day’s losers are SXP $0.621739 (-8.92%), MKR $287.40 (-7.55%), DGB $0.005731 (-5.70%).
BTC/USD weekly chart: Last week’s candle formed a potential evening star formation. Should this current week push for a bearish closure below, then this would be a textbook confirmation of a possible incoming change in trend.
The Blockchain Research Institute headed by China’s Center for Information and Industry Development (CCID) released its 17th Global Public Chain Technology Evaluation Index on April 10. The index ranks 37 of the most widely used public blockchains by evaluating them under three different criteria: basic technology, applicability and creativity. The ranking of each project is then decided based on the sum of its scores under all the three sections. According to the latest index, EOS ranks as the best performing blockchain project, while the most widely used blockchain, Bitcoin, has slipped down three places and now ranks 14th on the list.
Taiwan-based tech giant HTC is to allow users of its Exodus blockchain phone mine cryptocurrency, but it isn’t going to make them rich. Reports on Friday detailed that the firm has partnered with Mida Labs to use its DeMiner app on the Exodus 1S model. The app allows users to Mine monero (XMR) and can earn users up to $0.0038 in the crypto on average daily. The electricity used to carry out the mining tasks would come to less than half the income from mining, according to the report.
The European Parliament has published a study identifying a number of legislative blind spots pertaining to crypto asset oversight in the European Union. The report identifies stablecoins, token-based fundraising, and the threat of money laundering through crypto mining among recent industry developments necessitating a regulatory response. It noted: “Newly mined coins are by definition ‘clean’, so if someone (e.g., a bank) is willing to convert them into fiat currency or other crypto-assets, the resulting funds are also clean. A first regulatory step could be to try to map the use of this technique and subsequently, if it effectively proves an important blind spot, to consider appropriate countermeasures.
Square’s Cash App is allowing US citizens and residents who don’t usually file a tax return to direct forthcoming government stimulus payments to the mobile payments application. It comes following the company failing to convince the United States Treasury to let it distribute the stimulus funds to segments of the US population.
Blockchain-native software and tax services company, Lukka, has been selected to provide crypto taxation software to the fifth-largest accounting firm in the United States, RSM. The deal will see RSM’s tax clients provided with the ‘Lukka Crypto Office’ and ‘LukkaTax for Professionals’ software to assist the tax preparation needs of both individuals and enterprises.
My friend is dumping his 401k and going fully into bitcoin.
Do you think this is smart?