Bitcoin Price Analysis: Bears Take a Beating as Bulls Eye $9.5K

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Bitcoin Price Analysis: Bears Take a Beating as Bulls Eye $9.5K

It’s been a fairly exciting week for Bitcoin bulls, with rally upon rally feeding into the bullish sentiment. Although the weekly is not closed as of typing, Bitcoin saw its value jump 14% this week to $9169,5(Bitfinex). However, it seems that for all the gains achieved this week, Bitcoin has found itself staring at a significant high-time frame resistance zone on the weekly and daily charts.

Bitcoin Weekly Analysis

To understand where we might be going, let’s break down where we’ve been in weekly chart retrospective review. After an explosive first half on 2019, the second half of 2019 saw bitcoin’s price establish a series of entrenched bearish market structure; Lower lows and lower highs. This trend continued till mid December 2019, where after a period of consolidation and a fake-out to the downside, bitcoin managed to break its weekly pennant, push past prior lows of 7700 and then over 40% from the lows at $6477.

BTC/USD bitcoin chart

However, technically speaking, bitcoin has yet to firmly establish a break in larger bearish structure, and has still not made a higher high or higher low in this price range. Although the bulls have delivered a healthy dose of humble pie to bears this season, price is at significant high time-frame resistance, where hibernating bears have begun to wake up and even lure traders into a bull trap. The similarities to the 2018 bear market are eerily similar. However, something to keep in mind is the RSI indicator is about to close above the 50 midpoint, which in the past signalled a high probability of bullish continuation.

Bitcoin Daily Analysis

The daily is a perfect chart to view to establish one’s bias. On the one hand, we have both a bullish break of a descending wedge/channel; and yet on the other hand we have a simple retest of prior support that has now become resistance (Red Box).

Although it currently looks like the bulls have been caught with their pants down, if they manage to reclaim $8500-$8400 as support (which they currently seem to be doing-Green box)) it could simply be bullish consolidation at a new upper range from which to retest $9000 and eventually print higher highs. However, if bitcoin has truly exhausted its bullishness, and $9000 does hold as resistance, we could drift down to $7700 and test support once again to recharge. The daily RSI has been trending downwards since July 2019, and although RSI is approaching “overbought” zones, the larger RSI trend on the daily is still bullish as long as RSI remains above the midpoint at 50 on any retrace.

4-Hour Analysis

The 4H chart is essentially telling the same story as the daily chart—we hit high-time frame resistance and had a strong bearish reaction off of it into a healthy support zone.

If price maintains bullish structure and does not venture below $8400, there’s a strong possibility price will retest the highs and eventually delve into the mid $9000’s range—where I expect a lot of volatility. If bears take charge, price could see $7700, which would, in this authors opinion, be a golden longing zone.

Recap and Conclusion

There’s no denying that on a weekly time frame, the prevailing trend since July 2019 has shifted. This was jump-started by price faking out to new lows. A few weeks later, bitcoin price is retesting old support turned resistance. Now, it’s time to be cautiously optimistic about bullish prices in the coming weeks, provided we manage to clear the lower $9000 and not lose $7700 as support. This $8400-9000 zone is a significant piece of price the bears and bulls are fighting over, and the winner will likely set the trend for the coming months into the halvening.

Where do you think Bitcoin price is heading this week? Add your thoughts in the comment section below!

Images via Shutterstock, BTC/USD chart by Tradingview

Sunday Digest: Bitcoin Price, BSV Pump and Dump, and Other News

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Sunday Digest: Bitcoin Price, BSV Pump and Dump, and Other News

Today is the day when Orthodox Christians submerge themselves in icy water to mark Epiphany, celebrating the baptism of Jesus in the River Jordan.

Personally I prefer to celebrate my Bitcoin epiphany with a couple of icy beers, but you know, each to their own.

Bitcoin Price: On The Up

If last week, bitcoin price was all about $8k, then this week was all about $9k. Or to be more specific, would we get there?

Certainly, at the start of the week, the sentiment seemed to have turned bullish. $8k holding throughout the weekend raised hopes of a repeat of last year’s rally.

After a quiet Monday, the price started to pump on Tuesday, perhaps due to a mass liquidation of short positions on BitMex. From $8.1k bitcoin shot up, pausing briefly at resistance around $8.6k before finally topping out at around $8.8k.

And there it stayed for the rest of the week, trading in a range from $8.6k to tantalizingly close to $9k. It was looking as though $9k would have to wait, but then a spurt this morning saw $9k fall, and eyes move on to the psychologically significant $10k level.

The three competing theories on future bitcoin price models all point in the same direction, albeit at different rates. And a conservative analysis of the level of the next all-time high (ATH) came in at around $75k – $85k.

This means that, as usual, anything can happen. Let’s see if we can make it through January and keep hold of the month’s gains so far, for starters.

Bitcoin SV Flips Then Dips

Bitcoin SV had a notable week to compound its already impressive January gains. Craig Wright and Calvin Ayre have been promising “something big” for the coin for the past few months.

Still no word on what that might be, although the price has pumped on the anticipation, with BSV flippening Binance Coin (BNB) early in the week. This brought great joy to SV supporters as Binance CEO, CZ, led the delisting of SV when Craig Wright got out his lawsuit hammer, last spring.

But BSV wasn’t done there. Price doubled overnight, to see the token flippen its arch-rival, Bitcoin Cash (BCH). Of course, what goes up and all that.

Crypto Twitter was circling SV like a vulture, waiting for the epic crash it sensed coming. It didn’t have to wait long. SV started dumping hard, with the previous pump labeled wash trading, something which is actually easier when delisted from major exchanges.

Something about Russia and Crypto Legislations…

On Tuesday we published an article suggesting that there may finally be some movement on Russia’s long-debated crypto-legislation. It wasn’t the first time that officials have made such claims.

However, it was the first time that such claims were followed two days later by news that the entire Russian government had resigned.

So would the new Prime Minister be likely to expedite crypto legislation? At this stage, it’s impossible to be sure.

News In Brief

China’s Central Bank Digital Currency (CBDC) may not be the done deal we have been led to believe. Whilst it is supposedly now ready for limited geographical testing, an ex-governor of the Peoples Bank of China has suggested that current blockchain technology is not efficient or scalable enough.

Meanwhile, it was announced that the Reserve Bank of Australia is trialing its own simulated CBDC in a wholesale payment system.

According to reports, Ripple spent around $170,000 lobbying US lawmakers in 2019 in an attempt to influence crypto regulation. But if you think that’s a lot, it spent a massive $450,000 in 2018, with a similar lack of solid results.

And Finally…

According to a survey, over a third of small and medium-sized enterprises (SMEs) in the US now accept payment for goods and services in cryptocurrency.

It must be to cater for all the actual Nazis who are using bitcoin, according to certain US government officials.

What was your favorite bitcoin and crypto news story of the week? Let us know in the comments below! 

Image via Shutterstock

When Anti-Bitcoin Peter Schiff Lost his BTC…


When Anti-Bitcoin Peter Schiff Lost his BTC…

Peter Schiff may be unable to sell his Bitcoin (BTC), after getting locked out of his wallet. Schiff, who has been critical of BTC and sees its price as potentially tanking, tweeted that his wallet failed to decrypt.

Peter Schiff Loses Acess to his Bitcoin Stash

Bitcoin wallets are not forgiving of lost passwords or key files, and Schiff said he effectively lost all his coins.

Of course, Schiff’s BTC stash is safe and sound, in case he manages to make the wallet work again, or recovers the password. PIN and passwords, as well as key phrases, or lost wallet.dat files, have locked a significant part of the BTC supply by accident. Schiff, however, claims he is using the correct password, though the so-far unnamed wallet brand refuses to be unlocked.

Beyond advice to try the correct password or check CAPSLOCK, Schiff also raised eyebrows with his tweet. Schiff’s warning that BTC may not be user-friendly mimics the position of Dr. Nouriel Roubini, who has called Bitcoin usage as insecure, due to the risk of losing passwords beyond retrieval. This stance was therefore viewed as FUD and attempted attacks against a technology that, despite its risks, has been widely used and sees growing adoption.

What is more, all lost coins remain unmoved, showing that theft is impossible without a password. Schiff, who is a notorious proponent of investing in gold, cannot deny that gold cannot disappear digitally, but it can be taken away, stolen, or lost.

Skeptics also called fake in that Schiff has known BTC for years, enough to be aware of the risks of getting locked out of a wallet. But if true, Schiff joins a long list of notorious long-time “hodlers” who cannot access their coins, including the owner of thousands of BTC locked in a discarded hard drive.

The complaint about a locked wallet arrived just at a moment when BTC wiped out hundreds of dollars within an hour. It is uncertain if Schiff would have wanted to realize profits, or he is just expanding the FUD on falling BTC prices. Nor does Schiff disclose the proximity of his holdings.

A lost password, however, should not be the end of the world for Schiff. He has been advised to recycle his wallet from the private keys. Accessing BTC hinges on that self-ownership, meaning Schiff has been incorrect to state his BTC is lost – it is only inaccessible now, due to technicalities.

What do you think of Peter Schiff’s bitcoin wallet problems? Share your thoughts in the comments section below!

Images via Shutterstock, Twitter: @PeterSchiff

PlanB Reasserts S2F Reliability as a Bitcoin Price Forecaster

In his latest article, PlanB has re-affirmed the reliability of his Bitcoin-Stock-to-Flow model (S2F) to forecast the Bitcoin price trajectory. He also asserts that BTC markets are reasonably efficient, and they see risks that are not in the price data.

PlanB: Markets Are reasonably efficient

In his article of January 17, 2020, PlanB makes a case for his S2F as a reliable Bitcoin price forecast tool against the Efficient Market Hypothesis (EMH), and the classic risk and reward model.

The S2F model, introduced in March 2019, is based on Nick Szabo’s premise of “unforgeable scarcity,” which PlanB describes,

“S2F is a measure of scarcity. The power-law relation between S2F and bitcoin price over time captures the underlying regularity of bitcoin’s complex dynamic system of network effects as described by Trace Mayer.”

Trace’s Bitcoin network effects include 1. Speculation, 2. Merchants, 3. Consumers, 4. Security, 5. Developers, 6. Financialization, and 7. World Reserve Settlement Currency.

On the other hand, EMH stems from the British-Austrian economist Friedrich Hayek’s premise that “markets are information processing systems, delivering the best possible price discovery.”

Moreover, PlanB uses Nobel prize winner Eugene Fama’s theory of efficient markets to classify EMH in three categories:

  1. Weak EMH: historical price data is already priced in and cannot be used to make profits. Technical Analysis (TA) and Time Series Analysis (TSA) do not work.
  2. Semi-strong EMH: public news from media outlets like MSNBC, Bloomberg, WSJ, and research companies is already priced in and cannot be used to make profits. Fundamental Analysis (FA) does not work.
  3. Strong EMH: even inside information cannot be used to make a profit, because all information is already priced in.
    PlanB concedes that most investors and economists view modern financial markets as reasonably efficient. They accept weak and semi-strong EMH but reject strong EMH.

PlanB’s take is that markets are reasonably efficient since easy arbitrage opportunities are impossible, and he suggests, “Following EMH, the S2F model should be priced in because it is based on publicly available data (S2F).”

The Bitcoin Market Seemingly Overestimates Risks

Next, PlanB uses the above chart to explain the risks and returns of a Bitcoin investment, among traditional assets such as bonds, gold, and stocks.

After sizing the chart to a 1% BTC plus 99% cash investment, PlanB observes that this BTC investment would show an 8% return and 1% risk. Therefore, in such an investment, he reckons, “you can’t lose more than 1%, even if bitcoin drops 99% because you only invest 1%.”

As a result, defying economic orthodoxy, PlanB deduces that the market senses risks that are not in the price data. However, he affirms, from an EMH and risk and returns perspective, these risks should be considered in the data. PlanB identifies the following possible risks:

  • Risk that bitcoin dies• Risk of governments making bitcoin illegal and prosecuting developers
  • Risk of fatal software bugs
  • Risk of exchange hacks
  • Risk of 51% attacks by centralized miners
  • Risk of miner death spiral after halving
  • Risk of hard forks

Thus, the father of the S2F tool concludes that the market has seemingly overestimated these risks and that “Bitcoin really was a great investment opportunity, in line with the S2F model.” PlanB writes,

“My conclusion is that bitcoin markets are indeed reasonably efficient and price[d] in the S2F model, but also overestimate risk. Therefore, I prefer using the S2F model over a classic risk & return model to forecast future bitcoin price.”

PlanB also contends that several analysts have verified the cointegrated S2F model, confirming the trustworthiness of its Bitcoin price forecasts. If so, then, as earlier reported by Bitcoinist, PlanB’s prediction still holds: Bitcoin price should be above USD $100,000 by the end of 2021.

What do you think of the S2F model for forecasting the Bitcoin price trajectory? Let us know your comments below.

Images via Shutterstock, PlanB

Rising Crypto Adoption Hints at Growing DeFi Opportunities

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Rising Crypto Adoption Hints at Growing DeFi Opportunities

Breaking crypto usage down geographically has revealed some interesting trends. Countries that should have been high up were nowhere to be found and some unexpected ones were big into crypto, according to these results anyway. They could be new markets for DeFi.

South America Dominates Crypto

Research by a Statista survey has revealed that the top countries for crypto ownership and usage may not be as expected.

SET Protocol CEO Felix Feng took a look at the charts commenting on the breakdown and noting opportunities for DeFi expansion.

“It seems there’s tons of opportunity for DeFi to expand overseas.”

The results should be taken with a large dose of salt since only a thousand people from ‘select countries’ were surveyed.

The surprise result was Turkey being at the top but that can probably be linked to recent economic and political issues that have plagued the nation. Pressure on the local currency will drive people to safer crypto havens such as bitcoin.

The same is the case for the numerous South American nations that make up the top ten. Hyperinflation and capital controls in the likes of Argentina, Colombia, Chile, and Venezuela (which has not been included in these results) are driving people to use crypto.

Draconian regimes could put a dampener ion crypto adoption however as their central banks clamor for more control over the flow of finances within their borders.

It was recently reported by Bitcoinist that banking support for crypto exchanges may be in jeopardy following on of the country’s major commercial banks refusing to honor any agreement preventing the closures of crypto exchange accounts.

People of other nations such as India and China, where banks are already banned from dealing with crypto, have already sourced other methods to buy and sell digital assets.

One surprise omission was South Korea which would have been up the top somewhere. It was also surprising that Japan was so far down the list considering the nation’s positive attitude towards crypto.

DeFi Taps New High

The accuracy of the survey is questionable but the opportunities for decentralized finance expansion into some of these countries cannot be overlooked.

In 2019 DeFi grew by 180% in terms of total value locked into it. Today that value has hit a new all-time high of $834 million according to A billion-dollar Defi market is now not far away and as Ethereum prices recover it could be just around the corner.

At the moment it is just a tiny market but the opportunities are boundless, especially in the growing number of nations with restrictive banking practices and harsh capital controls. Does the bank own the money or do the people?

Will DeFi be dominant in South America? Add your comments below.

Images via Bitcoinist Media Library, Twitter: @felix2feng

Bitcoin Price Zooms Past $9,000 ‘Again’; Is $10,000 Next?

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Bitcoin Price Zooms Past $9,000 ‘Again’; Is $10,000 Next?

Weekends are usually a little slower for bitcoin trading but today BTC price has broken through the $9k resistance level as it taps a new 2020 high.

Bitcoin Price Back Above $9,000

BTC has spent most of the past day or so consolidating in the high $8k zone as it builds momentum for a push above $9k.

That move came a couple of hours ago as the digital asset surged to top out at $9,180 according to


BTC price 1-hour chart –

It is the first time bitcoin price has been back over $9,000 since early November following the China-driven blockchain FOMO.

Things have moved fast since its geopolitical pump earlier this month and there have been just ten days between topping $8k and now blasting past $9k. A five-figure bitcoin price could soon be back in play again.

So far this year BTC has gained $2,000 which equates to a move of almost 28% in less than three weeks.

Bitcoinist’s own ‘fil₿fil₿’ has noted that bitcoin price is actually performing better than forecast;

“In a shocking turn of events; Bitcoin is *marginally* outperforming vs forecast.”

The chart and technical analysts predicted an accumulation phase at around $8,500 until the end of February when bitcoin price was expected to break higher.

Bitcoin price has now crossed the 200-day moving average which is massively bullish. The fabled golden cross on the daily time frame could well occur before the end of this month if the momentum continues. It has already occurred on the four-hour chart a couple of weeks ago.

The last daily golden cross with the 50 and 200 moving averages occurred in mid-April 2019 at $4,500. Nobody needs reminding what happened next.

Analysts are now largely bullish with many confirming through TA that the uptrend has indeed begun. Popular chartist ‘dave the wave’ observed the recovery as price approaches the 0.610 Fib retracement level.

“BTC has already recovered near 60% of its decline from 20K.”

Elsewhere on Crypto Markets

Total market capitalization has now reached $250 billion, its highest level since early November. The altcoins are generally mixed but many are getting a lift from their big brother today.

Ethereum has made it above $175 adding 3% on the day and even XRP has topped $10 billion in market cap reaching $0.246 with a 4% move.

The two bitcoin off-shoots are dumping at the moment with BSV containing to get battered following its highly spurious pump last week. Stellar is having a good day with a 6% surge enabling XLM to flip Tron for the final top ten spot.

Bitcoin is back in the driving seat however as its dominance approaches 68% and it inches ever closer to five figures.

Will bitcoin price tap $10k this month? Add your comments below.

Images via Shutterstock, BTC/USD charts by TradingView, Twitter: @filbfilb, @davthewave

How Bitcoin, Crypto Prices Correlate With Network Parameters

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How Bitcoin, Crypto Prices Correlate With Network Parameters

There is now enough data to link Bitcoin and crypto price movements to easily quantifiable network parameters.

Bitcoin’s Transactions Show Highest Correlation to Prices

Transaction counts, active addresses, and price action show a connection for some coins, which explains heightened activity during rallies. A recent report by Longhash suggests some coins may reveal the intentions of their holders, based on on-chain activity.

The correlations are visible both for a longer historical time frame and for the past two years when specific price movements were also reflected in transaction counts. Bitcoin (BTC) reveals the strongest relationship between on-chain transactions and price action. The connection is both long-term and historical but also linked to the latest rallies and price slides.

“Both the number of transactions and the number of active addresses appear to correlate fairly positively with its price. This makes sense, of course — the more people are using and transacting with Bitcoin, the higher we might logically expect the price to be,” commented Longhash.

Bitcoin daily transactions also picked up from January 1, when they fell to a low of 250,000 per day. As the prices moved up to a higher range, Bitcoin on-chain transactions are now closer to 350,000 per day.

A similar relationship is seen for Litecoin (LTC), which is widely represented on exchanges. Both coins can be moved between markets for arbitrage. Additionally, heightened activity may be related to realizing profits. Ethereum (ETH) shows heightened transactions, though with a weaker correlation to market prices.

Token Transactions Rarely Reveal Price Trends

But beyond classical “coins”, tokens show a different picture. For networks like TRON (TRX), there is almost no correlation, or only very slight one, between price action and transactions. TRX tokens may be moved without fees, leading to high-count transactions, which are not always linked to using exchanges.

For Binance Coin (BNB), there is also an inverse correlation between token movements and price action. The reason for this is that BNB, like other native exchange tokens, is mostly used within the Binance ecosystem, for trading or other fees and investment activities. For that reason, BNB is not always stored on personal wallets, and actually resides within the exchange.

Longhash warns not to rely on transaction count levels for price action. For Bitcoin, rapid selling also leads to temporarily heightened transactions. Additionally, not all BTC price action relies on physically moving coins, as futures markets often don’t require a Bitcoin collateral or physical delivery.

What do you think about price and transaction count correlations on various crypto blockchains? Share your thoughts in the comments section below!

Image via Shutterstock

Next Bitcoin Price ATH to Fall in the $75k-$85k Range

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Next Bitcoin Price ATH to Fall in the $75k-$85k Range

With the crypto community awaiting Bitcoin’s next price ATH, Blockroots CEO warns that they might be disappointed if they expect BTC to hit $100k or more.

Next Bitcoin Price ATH May Not be as High as Expected

Bitcoin has been a hot topic ever since it started a massive bull run in late 2017, which led the coin to its all-time high (ATH) at $20,000. As everyone knows by now, the coin saw a massive drop after that, eventually reaching only $3,200 as its lowest point in the last three years. After the bearish 2018, the following year started showing signs of recovery, taking Bitcoin price almost to $14k by June 22, 2019.

The coin then saw another drop, nearly cutting its price in half. However, the beginning of 2020 brought another surge that returned investors’ hope that this might be the year when BTC finally exceeds all previous milestones and goes as high up as to $100k, or more.

While this is a popular opinion, Blackroots’ CEO, Josh Rager, disagrees with it. Rager recently made his expectations known on Twitter, admitting that it may be an ‘unpopular opinion,’ but he sees it as more realistic.

In his recent tweet, he stated that Bitcoin’s next price peak will likely not be as high as people expect it to be. Despite the fact that numerous analysts have proposed prices from $100k to $300k — and some even suggested $1 million. Rager, on the other hand, claims that the simple rate of return shows the bottom to peak return reduces by 20% per cycle. With that in mind, he expects that Bitcoin’s next price ATH will only be between $75k and $80k.

He further warned investors who are waiting for $100k or $1 million before taking profits, stating that they should not let greed get the best of them this time. According to Rager, once Bitcoin gets all over media and leaves Crypto Twitter, that will probably mean that it had reached its peak and that it will only go downhill from there.

He said that this may happen at any time, regardless of the price. It may happen at $50k, $75k, or $100k, according to Rager.

Is a halving-inspired bull run on its way?

2020 is expected to be a big year for crypto, and especially for Bitcoin. BTC will see block rewards halving in only a few months, which will impact supply and demand in a way where a significant price increase is a very likely result.

This will be Bitcoin’s third block reward halving, and if it ends up being anything like previous ones, it has excellent chances of inspiring another bull run.

As some may remember, the first halving took BTC price from $12.31 to $994, which was a 7,976% growth. When the second halving came, the Bitcoin price surged from $650 to nearly $20,000. Of course, this did not happen overnight, and it took months for the coin to reach its current ATH.

However, it is also worth noting that cryptos were still mostly unknown back then. Right now, countries around the world are working on regulating crypto, with some of them even developing their own cryptocurrencies. All that is left now is to wait for the halving to arrive, and to see who is right regarding the future of BTC price — Rager, or analysts who foresaw the price hitting somewhere between $100k and $1m.

Do you think that Rager is right, or do you see it surging much higher than $75k? Join the discussion in the comments below, and let us know what you think.

Image via Shutterstock,  Twitter @Josh_Rager

Ethereum 2.0 Testnet Attracts 22,000 Validators

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Ethereum 2.0 Testnet Attracts 22,000 Validators

One of the broadest testnets for Ethereum 2.0 is advancing, already attracting 22,000 validators. The shift to proof-of-stake is still left for the future, but there are signs of incipient and growing interest.

Largest Testnet for Ethereum 2.0 Starts Attracting Stakers

Ethereum (ETH) has not moved as fast from mining to staking as previously promised. Instead, the network has taken a series of smaller steps. At the same time, entities interested in the ETH economics have tried to remain a step ahead, by testing the staking mechanisms offered.

Prysmatic Labs has launched one of the largest testnets, outpacing single-client tests. The testnet launched this January 9, and immediately saw a pickup in reported validators.

“Just saw nearly 100% participation from over 22k active validators on the world’s first boneless ETH2 testnet,” said Preston van Loon, a developer at Prysmatic, cited by Trustnodes.

“These are 22k validating keys. It’s probably between 5 to 10 individual operators. Maybe more, but it’s hard to tell who controls keys and who’s just an observer,” he said.

According to Raul Jordan, Prysmatic has launched the largest testnet so far, encouraging for the future of the second-largest crypto network.

At the testnet level, Prysmatic has called for hackers to try and exploit the network. Moving to Ethereum 2.0 on an actual live network will be a high-stakes event, affecting a wide ecosystem of games, finance, and exchange apps.

But the exact number of participants is in fact lower. This shows that moving to staking, Ethereum supporters may be quite a few at the beginning. The move to staking will displace the already well-developed mining ecosystem for Ethash rigs.

Staking May Lock Up 10M ETH

Based on rough estimates by Vitalik Buterin, moving to a staking model may lock up around 10 million ETH. Annualized inflation will increase slightly for ETH, and the annualized interest rate maybe around 6%. Still, the network will have to find a sweet spot for the number of stakers.

The ETH rewards for staking will be variable, and the more ETH is staked, the fewer rewards will be proportionately distributed. This approach should discourage large-scale “whales” to take away most of the rewards while being overly influential.

Ethereum 2.0 has been announced over a year ago, and based on the most optimistic predictions, a launch may arrive within six months. However, skeptics allow for more delays. Despite the interest in testing the staking mechanism, there are still doubts miners may end up working on an alternative blockchain, posing special dangers for decentralized finance apps, which hinge their token value on a stable, reliable Ethereum network.

ETH traded at $169.73 after the most recent price recovery, getting close to its pre-crash level of stability around $180.

What do you think about the shift to Ethereum 2.0? Share your thoughts in the comments section below!

Images via Shutterstock, Twitter: @raulitojordan

When a Tesla Car Becomes a Bitcoin Node…

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When a Tesla Car Becomes a Bitcoin Node…

Bitcoin users recently decided to try using their Tesla electric car as a full BTC node, and it worked.

Tesla Electric Car becomes a full Bitcoin node

Electric cars and digital currencies are not usually two things that people would think to connect in any way, but they do have a few things in common. Both are considered emerging technologies that can make the world a better place. Both are also becoming increasingly popular around the world.

However, according to a recent video that was posted by some members of the Bitcoin community, they may establish an even deeper connection.

The video in question shows that Tesla cars can also be used for running Bitcoin. Crypto fans used the car’s onboard computer system to turn the electric vehicle into a Bitcoin full node.

As unlikely as it sounds, the attempt was actually successful, and its success was ensured by a project called Bcoin. This is a project that seeks out the alternative implementation of the Bitcoin protocol, which can be used to run a node on any machine. As a result, the Bitcoin network briefly had an entire car, helping with the process of running the world’s largest digital currency.

Why Running a BTC node on Tesla is a bad idea

Of course, while this was quite a unique way of presenting the Bcoin project, as well as Tesla’s capabilities — running a Bitcoin node via the Tesla car is probably not the best idea. As many already know, running a Bitcoin node requires a lot in terms of resources, including processing power.

Not to mention the fact that the computer that is used for running a node needs to download and process Bitcoin blockchain’s data, which could dangerously interfere with the UX experience of the car’s computer.

Furthermore, Tesla car’s memory modules were already known for being problematic due to limited read/write cycles, and using the car for running a blockchain node is likely to interfere with them further. However, according to Bcoin’s developers, they were familiar with these problems. In fact, their website even features a warning that reads: “This will use a lot of your bandwidth, CPU, and potentially disk space.”

In other words, they likely did not try to run their new car node for very long, just long enough to record a video and prove to the world that it was possible.

While this is the first time that a car was turned into a Bitcoin node, it is not the first time that the crypto community tried to use non-PC devices for running a full node. In fact, one experiment revealed that Raspberry Pi single-board computers are pretty good when it comes to syncing the blockchain.

Another thing to remember is one thing that Twitter and Tesla have in common, which would be the car maker’s CEO, Elon Musk, who is well known for his presence on Twitter. So far, Musk did not share his thoughts on this experiment.

He also never admitted to being a crypto investor, although he started dropping crypto references in his tweets quite often in the last several months. On one occasion, he stated that Bitcoin is ‘quite brilliant,’ and on another, he said that ‘Ethereum deserves some merit.’ He even revealed that Dogecoin is likely his favorite coin.

What are your thoughts on using Tesla cars for running a Bitcoin full node? Let us know in the comments below.

Image via Twitter: @Bcoin, @brandylee79