Analysts say Bitcoin’s choppy price action is ‘typical of low liquidity markets’

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Cointelegraph 09 July, 2021 - 06:25pm 47 views

When is ETH London hard fork?

Ethereum's long-awaited London hard fork is likely to launch on Aug. 4 between 13:00 UTC (9 a.m. ET) and 17:00 UTC, with block 12,965,000. Many Ethereum enthusiasts are excited for the delayed release, while some are watching on with “cautious optimism.” Yahoo FinanceEthereum’s London Hard Fork Expected to Launch on Aug. 4

What Happened: A new report from global cybersecurity firm BrandShield finds that suspicious domain registrations for Dogecoin (CRYPTO: DOGE) were up 13,331% since August 2020.

This percentage increase is 35 times greater than the number of suspicious domains registered for Ethereum  (CRYPTO: ETH), the second-largest cryptocurrency by market cap.

Since last year, suspicious domains registered for Ethereum and Bitcoin (CRYPTO: BTC) were up 376% and 324%, respectively.

BrandShield’s analysis also found that in addition to the explosive growth in fake Dogecoin websites, cybercriminals were also leveraging Tesla Inc's (NASDAQ:TSLA) CEO, Elon Musk, name to defraud investors across social platforms.

Why It Matters: “As cryptocurrency receives more mainstream coverage, investors of all experience levels are flocking to the alternative capital markets, whether to trade assets for the first time or diversify their investments,” said Yoav Keren, co-founder, and CEO of BrandShield.

“It shouldn’t surprise anyone that cybercriminals are following the money and targeting retail investors with both increasing frequency and sophistication through a wide array of fraud schemes.” 

Even cryptocurrency exchanges like Coinbase Global Inc (CRYPTO: BTC) and Binance became a popular target for cybercriminals.

Coinbase saw a 1728% increase in fake websites, while Binance saw a 616% increase over the same period.

A Federal Trade Commission (FTC) report from earlier this year found that consumers lost over $80 million to crypto-related scams during the fourth quarter of 2020 and the first quarter of 2021.

Price Action: At press time, Bitcoin was trading at $32,562, gaining 2.10% overnight.

Dogecoin was up by 2.61% during the same period, trading at $0.2196, while Ethereum rose by 0.53%, trading at $2,169 at the time of writing.

Click here, or sign up for our newsletter to explore more of Benzinga's Cryptocurrency market coverage, in-depth coin analysis, data, and reporting.

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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I know why people think bitcoin is a force for good — but they’re wrong

The Independent 09 July, 2021 - 08:00pm

First, it’s important to consider how crypto works, and why people think (erroneously) that it’s a force for good. The economic theory behind a global currency dates back to the 19th century and Carl Menger’s School of Austrian Economics. The seemingly democratic and egalitarian idea of creating a currency that is controlled, created, managed and distributed by people and not governments may be attractive in theory, but in practice has unintended consequences.

The common claim made by bitcoin enthusiasts is that cryptocurrency marks a fundamental shift towards a decentralized world that isn’t manipulated by central banks or governments. I can understand why this is a seductive idea, especially when so many young people today saw their parents plunged into destitution after the 2008 crash.

But just because bitcoin isn’t controlled centrally does not mean it is decentralized. A thousand people own 40 percent of all bitcoin. With a market cap of more than $500 billion, 1,000 unelected, anonymous individuals can send tremors through the cryptocurrency market with a single shrug. That’s not decentralization — that’s a pump-and-dump scam.

Bitcoin has moved power from the hands of visible, elected regulators to anonymous individuals who may use criminal schemes to increase their profits. And ironically, bitcoin is subject to some of the most centralized economic power in the world.

“Pumps and dumps” are illegal when trading any other form of asset or currency, and the same should be true of crypto. Currently, the lack of regulation means crypto whales can continue to commit the same financial crime with total impunity.

The only real benefit of crypto is to criminals, whether facilitating financial crime or terrorism and drug-smuggling. In August 2020, the US Department of Justice revealed that the exchange Bitcoin Transfer acted as a central hub in six terror-funded operations in Syria’s Idlib. And that is not a one-off; bitcoin is linked to many other terror groups. As long as bitcoin remains an easily accessible, yet completely unregulated and anonymous ‘currency’, that will remain the case.

That’s not to say that traditional currencies aren’t used in terror financing, human trafficking and drug-smuggling. But those currencies have regulation that allows paper-trails to be established, and financing channels to ultimately be shut down. Bitcoin’s commitment to high-level encryption makes that impossible.

Banning crypto is impossible — there is no way to stop someone creating digital ‘tokens’ and encouraging others to treat them as a valuable asset. But regulating it is a must. Bitcoin’s fans, whether bedroom traders or El Salvador’s president (who recently declared it legal tender) want us to believe it is an attractive asset, a reliable currency, or both. In that case, we should treat it as such, and apply existing laws around money laundering and insider trading to it.

Emergent technologies are often adopted for nefarious use cases before going mainstream. Many internet technologies were fueled by online pornography. But as the internet has grown, so too has regulation. The two go hand-in-hand — and crypto enthusiasts’ pursuit of growth and resistance to regulation proves that they know the former is only possible because of the demand created by the lack of the latter.

There’s nothing inherently wrong with law-abiding people treating crypto like any other (speculative) asset class, and using volatility to their profit. But the more ‘regular’ people put their savings into it, the more important it is that we protect them.

This is too big to ignore. When a country like US ally El Salvador is recentering its economy around bitcoin, despite it being hostage to the whims of 1,000 anonymous individuals and regularly used by terrorists and mafias, it is time to act.

We need action now, and for the leaders of ‘advanced’ economies to learn from the crypto-hostile government in Beijing. If global terrorism and cybersecurity is a concern, then cryptocurrency must be a concern. We cannot ignore this for much longer.

Production Cost: Why $14K Is Likely The Absolute Floor For Bitcoin

NewsBTC 09 July, 2021 - 08:00pm

Bitcoin price is at a critical inflection point according to most analysts across the market, either ready to lose support and fall deep into a bear market, or about to climb to new highs – nothing in between.

Those on the bearish side of the fence are already calling for lows under $10,000 and others suggesting a deeper decline than Black Thursday. However, one important piece of data suggests that the absolute price floor for BTC, is around $14,000 per coin. Here’s why.

Crypto traders are an egotistical bunch. When they’re not shitposting and sharing memes online, they’re posting screenshots of their unrealized PnL amounting in the millions and the hindsight charts that made them rich.

As a speculative market, participants are often seen rightfully speculating, predicting prices of hundreds of thousands per coin in the future, or projecting a fall to new lows.

With extremes on both sides, a target more steeped in reality is instead likely. Bitcoin won’t reach $400,000 or more this cycle, nor will it plunge to below $3,000.

In fact, using history as a guide, the price per BTC should never fall below $14,000 again.

$14,000 was the high of the last major bullish impulse which peaked in June 2019. Bitcoin went on a tear when it finally broke through that resistance level in late 2020.

The price per coin climbed more than four times from there, but is now headed back downward almost as fast as it made it to new highs.

As for how far the leading cryptocurrency by market cap might fall, the lowest point should be no more than $14,000 for fundamental reasons. The cost of producing each coin is currently around that price for most miners, to as expensive as around $22,000.

At the same time, Edwards’ Hash Ribbons tool is starting to round upward and could soon give the most profitable buy signal in crypto history.

After a wave four, comes the grand finale wave five, which should send Bitcoin to the higher side of the speculative targets commonly discussed.

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

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© 2020 NewsBTC. All Rights Reserved.

Should You Buy Bitcoin or Invest in the Stock Market?

Motley Fool 09 July, 2021 - 08:00pm

Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.

It can be tough trying to decide where to invest your money, especially when there are countless investment options out there.

Investing in the stock market is a tried-and-true way to build wealth over time, but cryptocurrency has been making waves for its explosive price increases. The S&P 500 has had a phenomenal year, surging by nearly 40% over the past 12 months. The price of Bitcoin (CRYPTO:BTC), however, has skyrocketed by nearly 300% in that timeframe.

Where you invest will make an enormous impact on your long-term earning potential, so it's important to be sure you're investing in the right places. If you want to earn as much money as possible by investing, should you buy Bitcoin or invest in the stock market? Here's what you need to know.

All investments carry some degree of risk, regardless of whether you buy stocks or cryptocurrency. However, cryptocurrency in general is far riskier than stocks.

Stocks have a long history of increasing in value over time. So if you buy a stock from a company with strong fundamentals, there's a good chance that stock will experience long-term growth.

Cryptocurrency, however, is still uncharted territory. Bitcoin has only existed since 2009, and though more merchants are beginning to accept it as a form of payment, it's far from being mainstream.

Nobody knows for sure whether Bitcoin will even become mainstream someday. There's a chance it could change the world, in which case investing now might make you very wealthy in the future. However, it's anyone's guess whether that will actually happen, and there's also a chance Bitcoin may be worthless a few decades down the road.

For that reason, investing in the stock market is safer than buying Bitcoin right now. It's still important to do your research when investing in stocks, because not all stocks are created equal. But if you invest in solid stocks with a strong track record, you're more likely to earn positive returns over time.

That said, if you're itching to invest in Bitcoin, there are ways to invest in cryptocurrency while limiting your risk.

One option is to invest a small portion of your portfolio in cryptocurrency while keeping the majority of your money in safer stocks. When the bulk of your portfolio is well-diversified with a variety of strong stocks from different industries, if Bitcoin doesn't succeed, it won't take the rest of your investments down with it.

Also, if you choose to buy Bitcoin, only invest money you can realistically afford to lose. Don't invest any money you may need in the near future, and try to build a solid emergency fund with three to six months' worth of savings before you buy cryptocurrency.

Another way to invest in Bitcoin is a more indirect approach through crypto stocks. A crypto stock is a company that is somehow tied to cryptocurrency.

Square, for instance, allows its sellers to accept cryptocurrency as a form of payment, and the company itself has heavily invested in Bitcoin. And tech company NVIDIA creates graphics cards that are often used in the high-powered computers behind cryptocurrency mining. If Bitcoin does become mainstream someday, crypto stocks like Square and NVIDIA could benefit from it.

Investing your money is one of the best ways to build wealth, and buying stocks is a great place to start. Cryptocurrency isn't right for everyone, but if you do choose to invest, be sure you're taking a strategic approach to keep your money as safe as possible.

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Crypto: Are fools rushing in to investing?

Stuff.co.nz 09 July, 2021 - 08:00pm

This is because they are looking for somewhere to put their money thanks to low returns available from bank savings accounts caused by the Reserve Bank driving down interest rates to stimulate the economy by getting people to spend more.

For many, the alternative to a savings account is investing in something that will bring a better return than 1.2 per cent or so available on three-year terms, even if with that investment comes more risk.

A recent study shows close to 40 per cent of participants are using or plan to use micro investing platforms (where you invest small amounts of money regularly) such as Sharesies, Hatch and Stake, which offer services including managed fund investments.

It’s been estimated around 55 per cent of Generation Y (39 years old or younger) are using them or are likely to.

Mix with this the curiosity of looking at cryptocurrency, which has had high (and low) fluctuations, and for the first time in a generation we have people who wouldn’t normally be investors now looking at opportunities and entering conversations at sports events, in bars, and around the barbie with a level of excitement.

Don’t get me wrong. Talking about investing is a great thing but how many people understand how to read a company’s balance sheet or even understand the basics of cryptocurrency? Not many, I suggest.

So what’s the difference between shares and cryptocurrency?

When you buy a share or stock, you’re investing in a particular company you believe will continue to grow in the future. You may have a connection with them through someone you know or who works there, you may like and use their products and know the world wants more of them, or they promote your values, such as sustainability.

Cryptocurrencies are nothing like that. You buy tokens of a particular currency to use them as a form of payment, or you might just hold on to them in the hope they increase in value – often just because of their popularity and how much other people want them. There’s nothing you can do to increase their value. You’re not relying on smart chief executives, you’re relying on luck and hope to a certain extent.

It’s a class of asset designed to create a digital currency through advanced cryptography, which protects information and communications through the use of codes, so only certain people can read and process it.

There are a handful of cryptocurrencies, and bitcoin is by far the most popular.

Bitcoin was started in 2008 when a programmer using the pseudonym Satoshi Nakamoto published a paper discussing the technology and code needed to enable the cryptocurrency. He described the process of “mining,” which creates a supply of bitcoins.

Each bitcoin is a computer file stored in a “digital wallet” app on a smartphone or computer.

You can send bitcoins (or part of one) to your digital wallet, or you can send them to other people. Each single transaction is recorded in a public list called the blockchain, which is the underlying technology that powers digital ledgers that can be shared over public or private networks and tracks transactions.

A computer mines bitcoins using algorithms that solve a series of calculations. These time-consuming computations verify bitcoins and allow for the creation of new ones. Only 21 million bitcoins can be mined, and they become more time-consuming to create as the supply grows. As you can see it’s not a bricks and mortar investment, and it is quite complex to understand.

There’s no doubt investors have made significant gains using it. But they have also made significant losses. It’s human nature to want to get onto a winner and it’s difficult to ignore an asset that has gained more than 500,000 per cent in just a few years. So why does it seem to be so volatile?

On April 17 this year, bitcoin experienced a sharp decrease, falling nearly 14 per cent in an hour before rebounding. It is thought the plunge was due to unconfirmed internet rumours that US authorities were going to crack down on money laundering involving cryptocurrencies.

A few days before this, bitcoin and other cryptocurrencies rose as the trading platform Coinbase went public, attracting an $86 billion valuation.

Tweets from well-known business leaders have contributed to bitcoin’s price volatility. A recent example is Tesla chief executive Elon Musk pledging in February to accept bitcoin as payment for Tesla vehicles. This sent cryptocurrency soaring. In May he reversed this pledge, triggering a slide.

Its volatility is such that bitcoin rose from $US5000 ($NZ7100) in March last year to nearly $63,000 ($NZ90,000) in April this year. It then plummeted to $US31,000 ($NZ45,000), and has settled around $US33,000 in recent weeks.

History tells us investment in bitcoin involves an element of FOMO (fear of missing out), especially where you hear stories of how much money people have made on bitcoin and other cryptocurrency.

I know from my own friends and family that many people are actively investing in cryptocurrency.

I’m still standing on the side-line – my risk tolerance is pretty conservative and I’m on my own financial journey – but for some people, FOMO is too great, and their risk tolerance may allow some consideration.

If that’s you, then you should take the time-honoured advice of investing: tread carefully and be aware of the risks. These include: cryptocurrency supply is limited, it can be mined using only power-hungry computer systems that crunch algorithms, it’s not a store of stable value, it doesn’t accumulate interest, and governments are making its use more difficult and may move to regulate it.

I’m a firm believer if you don’t fully understand something then you should seek advice. In the words of my financial adviser “you just don’t need to take the risk that crypto represents. It’s unregulated and who is to say that you will ever be able to spend it on handbags or shoes. Better to invest elsewhere and be sure.”

As always, my financial adviser has a good point that’s made me pause.

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