OKEx Now Features Latin American Fiat Gateway with Latamex

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Here’s How to Expand Who Contributes to Bitcoin Core

A Bitcoin Core dev and her exchange partner discuss Bitcoin and privacy and how to incentivize more developers to contribute to the protocol.

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This episode is sponsored by Bitstamp and Crypto.com.

OKCoin and BitMEX recently came together to provide a $150,000 grant to Bitcoin Core developer Amiti Uttarwar. 

In this conversation, Amiti and OKCoin CEO Hong Fang discuss:

Amiti Uttarwar
Twitter: @amizi

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The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Sparks Fly as Critics Question Bitcoin Model Predicting $100,000 by 2021

The Bitcoin Stock to Flow (S2F) model created by the pseudonymous analyst “PlanB” has been a controversial subject over the past year. A majority of cryptocurrency investors on Twitter seemingly believe in the model, though it’s increasingly come under fire.

Debate about PlanB’s work has come to a head over the past few days as prominent commentators have chimed in.

What Is the Stock to Flow Model?

The S2F model is an econometric formula released by PlanB in March of 2019. The pseudonymous analyst is a Dutch institutional investor that manages a multi-billion balance sheet, though he moonlights as a Bitcoin proponent.

PlanB’s analysis suggests that the value of Bitcoin and other precious goods, namely gold and silver, can be valued by their scarcity. The image below is the model’s first iteration.

Bitcoin

BTC S2F model (first iteration) by analyst "PlanB" (@100trillionusd on Twitter).

The model predicts that after 2020’s block reward halving, BTC will rise to a market capitalization of $1 trillion. That corresponds with approximately $55,000 per coin.

The predicted market value for bitcoin after May 2020 halving is $1trn, which translates in a bitcoin price of $55,000. [This money will come from] silver, gold, countries with negative interest rate, countries with predatory governments, billionaires and millionaires hedging against quantitative easing (QE), [and more].”

It has since been updated with a new regression formula that suggests Bitcoin will reach $100,000 in 2020 or 2021.

PlanB’s updated iteration of the model has a high R squared value of ~95% and is purportedly “cointegrated” with BTC’s price. Statistics lingo aside, the S2F model’s proponents say that this is a confirmation that the model has credence.

Not everyone thinks that’s the case, unfortunately for BTC bulls.

Some Bitcoin Proponents Call Out Criticism

The S2F model has recently been supported by a number of Bitcoiners.

Bitcoin educator/programmer Jimmy Song wrote the following message on July 2nd, arguing that it is well too soon to “dunk” on the model:

“Why are people dunking on the s2f model just a few difficulty adjustments past the halving? The prediction was that BTC will be $100k before the end of 2021. Declaring victory now is like declaring victory 5 minutes into the game.”

The Keiser Report co-host Max Keiser, one of BTC’s earliest public bulls, agreed with the sentiment put forth by Song.

He said that the arguments “‘debunking’” the S2F model “appear to be just random word-salads by attention seekers.” Keiser added that he thinks the model is a “valid and vital analysis” that gives “excellent insight” into Bitcoin.

Keiser’s and Song’s statements of support for the econometric model come as it has come under fire from a few angles.

Namely, Nico Cordeiro, the CIO of Strix Levithan, released a report entitled “A Chameleon Model – Why Bitcoin’s Stock-to-flow Model is Fatally Flawed.”

The investor said that gold hasn’t been correlated with its S2F ratio over the past decade. Cordeiro added that he thinks the model is illogical due to it predicting $200 million by 2045.

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Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com
Sparks Fly as Critics Question BTC Model Predicting $100,000 by 2021

Ebang Plans Offshore Exchange as NASDAQ Share Prices Falter

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Ebang Plans Offshore Exchange as NASDAQ Share Prices Falter

ebang-plans-offshore-exchange-as-nasdaq-share-prices-falter

Chinese crypto mining company Ebang has announced plans to launch an offshore exchange amidst a drop in share prices. 

Ebang International Holdings, an ASIC mining rig manufacturer, has witnessed a decline in share prices of more than 11 percent since being listed on NASDAQ June 26. The company represented the second mining firm to have a U.S. initial public offering (IPO), with shares falling under the ticker EBON. 

Ebang’s stock launched last Friday with an initial 19.3 million shares offered, leading to the firm raising $101 million. Since opening, share prices briefly rose from $4.85 to around $5, before subsequently falling to $4.29. 

According to a report by Bloomberg on June 29, Ebang intends to launch an offshore cryptocurrency exchange before the end of 2020. The Hangzhou-based manufacturer expects total revenue to grow about 40% following the expansion, with Chief Financial Officer Chen Lei saying revenue could potentially double to $200 million. 

Chen called the stock’s launch a win for Ebang’s brand, despite being listed at a time of escalating tension between US and Chinese trade relations. Chen told Bloomberg the company seeks to draw more customers from overseas markets, including the US, as currently 90 percent of the firm’s sales come from China. 

Featured Image Credit: Photo via Pixabay.com

EOSIO-Based Social Media Platform Voice Briefly Goes Live Ahead of Schedule

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If you are on a personal connection, like at home, you can run an anti-virus scan on your device to make sure it is not infected with malware.

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Bank of Japan to Conduct Proof of Concept for Its Digital Yen

Bank of Japan to Conduct Proof of Concept for Its Digital Yen 

The Bank of Japan (BOJ), the 138-year old Japanese central bank, has announced plans to carry out a technical feasibility study for its central bank digital currency (CBDC). The bank says it intends to carry out a proof of concept (PoC), while also collaborating with other central banks and relevant agencies to reach the best decision on the matter, according to a report on July 3, 2020.

BOJ to Conduct Digital Yen PoC

At a time when a good number of apex banks around the world, including the People’s Bank of China (PBoC), the Bank of Korea and a few others are taking the concept of a central bank digital currency more seriously, the Bank of Japan (BoJ) is set to thread the same path.

As stated in a fresh report entitled “Technical Hurdles for CBDC,” the BOJ has made it clear that it plans to carry out a comprehensive feasibility study of a digital yen from a technical standpoint, and also work with other apex banks and related institutions before deciding to launch its CBDC or dump the project entirely.

Notably, the Japanese central bank has hinted that it thinks the issues of resilience and universal access may be the two most critical challenges that could hinder the smooth operation of a possible digital yen. 

The bank says its ideal CBDC must be capable of fostering financial inclusion to even those without a smartphone, and it must also be available in areas without internet connectivity or during times of extreme natural disasters such as floods and earthquakes.

Blockchain or Centralized Systems

Asides the hurdles of resilience and accessibility, another serious area the BOJ plans to critically evaluate is the underlying technology that would power its CBDC. 

The bank says while centralized databases may offer the digital yen superfast transaction speed and large capacity, the single point of failure present in such a system may make it unsuitable for such a project since a malicious attack on the system or any other technical issues could bring the entire platform to its knees.

However, blockchain-based CBDCs on the other hand, ticks all the right boxes in terms of resilience, and the absence of a single point of failure. But the issue of scalability still has to be put into a proper perspective. 

The BOJ said:

Both centralized and decentralized systems have their merits and demerits. In the case of large transactions for retail use cases in advanced nations, centralized systems are better… in scenarios where the number of transactions are limited and resilience is of high priority, a decentralized system is the best option.

As reported by BTCManager earlier in April, the Agricultural Bank of China (ABC) launched a mobile app for testing the nation’s CBDC named DE/CP and issued the digital currency to whitelisted government workers in the city of Suzhou.

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Bitcoin’s Volume is at the “End of the Line” Signaling Volatility is Imminent

Bitcoin

Bitcoin’s Volume is at the “End of the Line” Signaling Volatility is Imminent


  • Bitcoin’s range-bound trading is showing no signs of letting up as the crypto continues trading sideways within the lower-$9,000 region
  • It does appear to be laying the groundwork to make a massive movement
  • Data suggests that this movement could be imminent in the days ahead, potentially setting the tone for which direction it trends next
  • There are a few other factors that are likely to influence its near-term price action as well
  • One analyst notes that the direction BTC trends after making this big movement will signal “real direction”

Bitcoin and the aggregated cryptocurrency market have been caught within an extended bout of sideways trading throughout the past several days and weeks, struggling to garner any clear momentum.

This trading range first began establishing itself at the start of May, and in the time since BTC has primarily ranged between $9,000 and $10,000.

On a few brief occasions, the crypto has broken both above and below this trading range, hitting highs of $10,500 and lows of $8,500.

Which direction it trends next may depend on a few vital factors that one analyst is closely watching. He indicates that the next move Bitcoin makes will provide it with a “real direction.”

Bitcoin Volatility Levels Hit a One Year Low

At the time of writing, Bitcoin is trading up marginally at its current price of $9,100. This is around the price point at which the crypto has been trading for the past couple of weeks.

Yesterday, sellers did try to force BTC below the lower boundary of its long-established trading range, causing it to dip as low as $8,950.

This breakdown was short-lived, however, as the selling pressure was quickly absorbed by buyers.

This price action – just like all that seen over the past two months – has caused Bitcoin’s volatility levels to dive.

According to data from analytics platform Skew, they just reached lows not seen in over a year.

“BTC 1mth ATM Implied Vol reaches a 1Y+ low at ~46%.”

Bitcoin

Image Courtesy of Skew.

These bouts of extremely low volatility usually don’t last for long, meaning that Bitcoin could be positioned to make a massive movement in the days and weeks ahead.

Volume Trend Reaches the “End of the Line” as Analysts Expect Volatility 

One popular cryptocurrency analyst on Twitter explained in a recent tweet that he is closely watching a few crucial factors for insight into which direction Bitcoin will trend next.

He points to the crypto’s declining volume trend reaching the “end of the line” as well as a few other factors.

“Volume trend reaching end of the line. All closes outside local ranges were fakeouts. Watch for this behaviour to break – good odds it’ll signal real direction. Local unconfirmed (skewed) iHS neckline lines up with diag resistance from ATH to now.”

Image Courtesy of Bitcoin Jack. Chart via TradingView.

Once its volume begins picking up, it will likely translate into volatility.

Featured image from Shutterstock.
Charts from TradingView.

Irish Charity Receives $1.1 Million Grant to Build Blockchain Platform for Aid Distribution

Oxfam Ireland, a Belfast-based charity fighting global poverty, has received a €1 million ($1.1 million) grant to fund the next phase of a blockchain aid distribution project.

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The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Bitcoin Community Celebrates as Crucial Lightning Network Project Launches

Despite it having a strong fundamental premise, Bitcoin’s Lightning Network has yet to see the adoption that its proponents hoped would happen.

According to Lightning data provider 1ML, there is only $9 million worth of BTC locked in the network. There are also only 13,000 Lightning nodes, which, while many more than last year, is not yet signaling mainstream adoption.

Yet a product was launched yesterday that changes the Lightning Network’s trajectory for the better.

Bitcoin Lightning Network Gets Boost With New “Strike” App

If you’ve been following the Lightning Network’s development for a while now, you’ve likely heard the names “Jack Mallers” and “Strike” mentioned a few times.

Mallers is a prominent developer and entrepreneur in the Bitcoin space. And Strike is his latest project — a BTC wallet focused on allowing regular people to use the cryptocurrency and the Lightning Network.

On July 2nd, Strike finally went into public beta, launching for iOS, Android, and Chrome.

“Strike is the direct result of years of Bitcoin + Lightning development, countless hours of user research, intense product iteration, and months of BETA testing.”

In Mallers’ words, Strike is a service allowing “anyone in the world to interact with the Bitcoin and Lightning Network protocols using only a bank account and/or debit card.”

It removes the abstract elements of using the Lightning Network, like nodes, seeds, and channels, and replaces it with an app.

Mallers hopes that this product will help “usher in an era of Bitcoin that we believe can achieve our goal of true mainstream adoption.”

Community Celebrates The Move

Many in the Bitcoin space have been quick to celebrate the new product, which is the first public-facing application that gives consumers a chance to use Lightning.

Kraken’s Dan Held, a former executive at Blockchain and former employee at Uber, wrote:

“Congrats Jack Mallers. A fantastic product laser focused on delivering a great UX for Bitcoin users. “You don’t need a wallet, a node, a seed, channels, liquidity…and so on to interact with this new global digital economy.”

Blockstream CSO Samson Mow echoed the optimism, writing in response to a tweet from Mallers: “the teams that focus on user experience will win over the next billion Bitcoin users.”

Notably, Strike isn’t the only product looking to make the Lightning Network a more mainstream technology.

Square’s crypto division earlier this year released the Lightning Development Kit (LDK).

It is like a traditional software development kit (SDK) but one suited for the Lightning Network. The LDK will allow for:

“1) Adding Lightning capabilities to existing bitcoin wallets — no need to create a separate wallet just for Lightning. 2) Supporting multi-device, multi-application access to a single wallet. 3) Allowing wallets to make UX/security/privacy tradeoffs such as external transaction signing and customizing their state backup to a cloud service.”

Featured Image from Shutterstock
Bitcoin Community Celebrates as Crucial Lightning Network Project Launches