#218 Chris Burnsike & Jack Tatar: Cryptoassets – The Rise of a New Asset Class

Source From https://letstalkbitcoin.com/blog/post/epicenter-218-chris-burnsike-jack-tatar-cryptoassets-the-rise-of-a-new-asset-class

Over the past year, cryptoassets have exploded in popularity. From a mere $18bn at the start of 2017, the aggregate market cap of all cryptoassets recently reached $820bn as interest in Bitcoin and its cousins went mainstream. Jack Tatar and Chris Burniske joined us to discuss their new book ‘Cryptoassets: The Innovative Investor’s Guide to Bitcoin and Beyond’. It is one of the first systematic views on cryptoassets from a mainstream investor’s perspective.

Topics discussed in this episode:

  • How Jack and Chris originally became interested in Bitcoin and cryptoassets
  • Why the term cryptoassets is a good umbrella term for the different kinds of tokens
  • The different categories of cryptoassets: Cryptocurrencies, cryptocommodities and cryptotokens
  • How cryptoassets fit into an overall investment portfolio
  • How to value cryptoassets
  • Whether we are in a cryptoasset bubble and expectations for the future

Links mentioned in this episode:

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Watch or listen, Epicenter is available wherever you get your podcasts.

Epicenter is hosted by Brian Fabian Crain, S?ƒbastien Couture & Meher Roy.

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Two New Services Could Help Investors Rate Cryptocurrencies

Source From https://bitcoinmagazine.com/articles/two-new-services-could-help-investors-rate-cryptocurrencies/

Cryptocurrency Rating Services Launched

Increasing interest in cryptocurrencies has led to an influx of new investors. Unlike traditional markets, there are few tools that can help people make informed decisions, a situation that has already begun to claim victims in a particularly volatile environment.

In separate announcements, Weiss Ratings and Intercontinental Exchange (NYSE: ICE) have announced the introduction of new financial tools to help investors navigate the cryptocurrency market and make smarter investments.

Weiss Ratings, an established independent rating agency of financial institutions, says they will begin issuing ratings for cryptocurrencies on January 24, 2018, to help investors make informed decisions.

ICE, an operator of a network of global futures, equity and equity options exchanges, is partnering with blockchain technology provider Blockstream to launch the Cryptocurrency Data Feed (CDF).

Weiss Ratings Takes On Cryptocurrencies

Founded in 1971, Weiss is an independent rating agency of financial institutions. They will begin issuing letter grades for cryptocurrencies including Bitcoin, Ethereum, Ripple, Bitcoin Cash, Cardano, NEM, Litecoin, Stellar, EOS, IOTA, Dash, NEO, TRON, Monero, Bitcoin Gold and many others.

According to Weiss Ratings founder Martin Weiss, the data they are using is a combination of purchased data and data collected through other sources. It is updated on a daily basis, covering a sliding 12-month window.

Regressive testing to verify past data that the company uses to confirm predictions is still ongoing, but results have been accurate thus far, Weiss told Bitcoin Magazine.

“We have built an analytical technology over the years using intelligent models to replicate the real world and we are applying [these] to cryptocurrenc[ies]. These have been very accurate for many years.”

Ratings are built up across multiple indexes. The company built new models to reflect cryptocurrency data and developed an overall grading system that is broken down into four separate sub-models:

  1. Risk Index — The level of risk involved in the investment, based on factors like price activity and volatility.
  2. Reward Index — The potential reward outcome, based on historical patterns of buying and selling.
  3. Technology Index — A primarily manual process, where company analysts review the source code and white papers, analyze price movement and make ratings in a Query Tree (their internal software) to generate a quantitative result.
  4. Adoption Index — A measurement of adoption along two dimensions: how broadly it is adopted, transaction speed, settlement times, etc.

“A weighted average of those 4 indices is used to get the final grade,” said Weiss. “The goal at Weiss is to empower the investor to make prudent decisions.”

ICE Data Services: Real-Time Trading Data

The Cryptocurrency Data Feed (CDF) is a multi-asset and multi-venue data feed, capturing nearly 80 percent of cryptocurrency exchange trading volume over more than 15 exchanges around the world. It measures leading cryptocurrencies against the U.S. dollar and other major currency pairs.

The captured data is normalized to create a unique number sequence to identify the transaction, details of where the trade took place, quantity, price, currency, timestamp and other relevant order book data. This is designed to enable ICE Data Services’ customers to receive global market–representative trading data in a real-time feed with high-quality information.

“With the broad array of cryptocurrencies and exchanges, and given the price variances between exchanges, it’s critical that investors have a comprehensive source of pricing information,” said ICE Data Services President and COO Lynn Martin in a statement.

According to Blockstream SVP of Business Affairs Alex Fowler, the initial exchange partners set up through cooperative agreements include Bitbank, Bitfinex, BitMEX, Bitso, Bitstamp, BtcBox, BTCC, CEX, Coinfloor, Coincheck, itBit, GOPAX, OKEx, SurBTC, The Rock Trading, Unocoin, Vaultoro and Zaif, with more coming soon.

The data is collected using the exchanges’ APIs and, in some cases, by setting up dedicated connections with them. The current feeds lack standardized formatting and information: part of what ICE is providing is a single source that consolidates and standardizes the data, which will average out the information from the multiple sources into a more accurate overall view.

Historically, the data currently only goes back to the initial integration; however, Blockstream is working with the exchanges to try and incorporate older data as well.

Fowler told Bitcoin Magazine, “We believe that a consolidated data source, resulting from the combined participation of a strong and growing list of exchange partners globally, will enable us to address these gaps and thereby promote better liquidity, price stability, and public confidence in cryptocurrency as asset class.”

CDF will include bitcoin and a wide range of cryptocurrencies and currency pairings on launch; the final list will be on their website. ICE will develop and publish a selection of criteria for decisions on the addition and/or removal of assets in the feed. This will be an ongoing process as the market evolves. Access to the real-time CDF will be available to subscribers of ICE Data Services’ Consolidated Feed in March 2018.


This article originally appeared on Bitcoin Magazine.

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European Central Bank to Discuss Bitcoin and Blockchain With Youth

Source From https://cointelegraph.com/news/european-central-bank-to-discuss-bitcoin-and-blockchain-with-youth

Mario Draghi will tell what the ECB thinks about Bitcoin and its technology in the frame of the third Youth Dialogue.

One of the three major questions that the President of the European Central Bank will be answering via a series of videos on Feb. 12, 2018 is about cryptocurrencies and Blockchain.

Mario Draghi will respond to the selected questions, whether Bitcoin offers a viable alternative to traditional currencies as well as comment on the ECB's view on its technology, provided they are submitted by Tuesday, Jan. 23, 2018. Europeans aged between 16 and 35 can also ask questions around three main topics: possibility of a new global economic crisis, cryptocurrencies and Blockchain, Europe’s economic recovery and youth unemployment

The session is part of the ECB’s third Youth Dialogue which usually constitutes a series of talks held by the Bank’s policymakers with students and young people from different countries and backgrounds.

As a prelude to the session, the ECB has launched a Twitter opinion poll to ask if Bitcoin could offer a viable alternative to traditional currencies. The poll by Europe’s top bank has received more than 15,500 responses in about 24 hours.

Central banks and crypto

While the role of central banks in the digital currency world has always been a subject of debate, the view that they exist to help ensure stability for economies still stands.

Bitcoin’s volatility has earned criticism of being a vehicle for perpetrating fraud from the likes of Lloyd Blankfein, the chief executive of the US investment bank Goldman Sachs. Luxembourg's Finance Minister, Pierre Gramegna also suggested that the European Union could soon introduce new cryptocurrency regulations.

Adoption trend

What is clear is that 2017 was a crucial year for Bitcoin. Top digital currency soared in popularity globally as its value rose sharply, while crypto gained mainstream media’s attention.

Though there is no evidence, such awareness increased its adoption in Europe, available statistical data about 2017 shows that its use as an every-day payment method in main European economies is still minimal.

Crypto Q&A at the Youth Dialogue

Nevertheless, it is obvious that new information has been dropped into the public domain for many people to sort on their own. It should make the ECB’s Q&A session to be an interesting watch even if nothing new is expected.

The session is coming in the wake of the recent suspension of Bitcoin-backed Visa debit cards in Europe and proposed introduction of EU-wide regulation on such currencies. It’s also worth thinking what the outcome could mean for the affected payment processors who are reportedly in talks with alternate card issuers in Europe and for those seeking to set up a crypto/fiat bank that would be independent of traditional banks.

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eToro Cryptofund Review: Investing in Bitcoin, Ethereum, and More

Source From https://99bitcoins.com/etoro-cryptofund-review-investing-bitcoin-ethereum/

The post eToro Cryptofund Review: Investing in Bitcoin, Ethereum, and More appeared first on 99 Bitcoins.

Important: At the time of writing, eToro services aren’t available to US customers. eToro is a digital global trading market for currencies, cryptocurrencies, commodities, indexes, and stocks. Like most cryptocurrency trading platforms, it’s experiencing rapid growth and now boasts over 7 million users worldwide. In operation since 2008, eToro aims to offer fluid web-based and […]

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Not Content Scamming $1.5 Billion, Bitconnect Wants Another $500 Million for ICO

Source From https://news.bitcoin.com/not-content-with-scamming-1-5-billion-bitconnect-wants-another-500-million-for-its-ico/

Not Content with Scamming $1.5 Billion, Bitconnect Wants Another $500 Million for Its ICO

The fall of Bitconnect was as certain as night follows day. A pyramid scheme wrapped inside a Ponzi with a side order of WTF, Bitconnect was as crazy as it was calamitous. The only miracle was that the racket lasted so long. When the ringleaders shut up shop on Wednesday, causing the token to plummet from $290 to $8, that ought to have been the end of the matter. Remarkably though, BCC continues to be actively traded, and has even recovered some of its value. The reason for the mini revival? Bitconnect is launching an ICO.

Also read: Autopsy of the Bitconnect Implosion: Ponzi, Centralization, Governance

Meet the New Boss, Same as the Old Boss

It was no secret, prior to its collapse, that Bitconnect was running an ICO. Its Bitconnect X website has been accepting contributions since January 10. When Bitconnect closed its doors a week later, after its original website had been offline for days, it was assumed that Bitconnect X would follow suit. After all, no one would be gullible enough to get fooled twice, surely. Apparently so. Not only is the Bitconnect ICO going ahead as planned, but investors are actively throwing money at it.

Not Content with Scamming $1.5 Billion, Bitconnect Wants Another $500 Million for Its ICO

When Bitconnect announced that it was closing its lending platform on Wednesday, $1.5 billion worth of value was wiped off its market cap in less than two hours. Those losses weren’t borne by the company though – it was ordinary investors who were left out of pocket. Bitconnect’s execs were doing just fine, sitting on the stash of bitcoin they’d pocketed from investors in the months prior. But then, as Twitter traders eagerly watched to see the first altcoin drop to zero in real time, something strange happened. BCC stopped falling and started to climb.

The Ponzi Scheme That Just Won’t Die

On January 17, BCC was the worst performing cryptocurrency on Coinmarketcap. Incredibly, 24 hours later, it was the best performing coin on the site, up 410% in 24 hours to reach $43 a token. This revival will have been of little consolation to investors, who were still heavily in the red. Nevertheless, it showed that against all reason, people were still buying the coin. In the past 24 hours, $18 million of BCC has been traded and a coin that was written off as being utterly worthless is now changing hands for $28.

Not Content with Stealing $1.5 Billion, Bitconnect Wants Another $500 Million for Its ICO
On Thursday, BCC rose from $8 to a high of $43.

The reason for this is BCC can be used to purchase BCCX, the new Bitconnect token that’s being launched via an ICO. Each BCCX is priced at $50. To reiterate then: Bitconnect duped thousands of investors, selling them BCC coins at up to $290 apiece. It then crashed the market, and is now encouraging the same investors to exchange their BCC for BCCX at a ratio of 2:1 in an event that ought to be dubbed The Halvening.

Lambs to the Slaughter

By late 2017, it was apparent to Bitconnect that the Ponzi scheme they had constructed was on the verge of toppling. Not content with riding off into the sunset with their ill-gotten gains, they decided to have another bite of the cherry. The Bitconnectx.co domain was registered on the penultimate day of 2017, and the crowdsale commenced less than two weeks later. The company is seeking to sell 11.76 million BCCX, which will earn it $588 million. It will also retain another $145 million in coins, bringing its total assets to $733 million.

Not Content with Stealing $1.5 Billion, Bitconnect Wants Another $500 Million for Its ICOThe new-look Bitconnect X platform, for the record, “allows you to earn interest for helping maintain security on the network by holding BCCX in a Qt Desktop wallet that is attached to the network and allowing transactions to flow through it”. Which sounds suspiciously like Bitconnect mk I.

One of the first tasks on the Bitconnect X roadmap is to attain a listing on Coinmarketcap, which shouldn’t be a problem, as the site had no qualms about heavily promoting the previous scam. After that it will spend the summer performing vague tasks such as “adding more security layers in Exchange platform”, presumably while Bitconnect execs put as much distance between themselves and their creditors as possible.

Not Content with Stealing $1.5 Billion, Bitconnect Wants Another $500 Million for Its ICO

Bitconnect Keeps Playing While the Titanic Sinks

In the days after the collapse of Bitconnect, the company’s social media account continued glibly tweeting bitcoin news, as if nothing had happened. Each new story it posted was met with hundreds of thunderous replies, until the account finally broke its silence to audaciously issue the following claim:

Not Content with Stealing $1.5 Billion, Bitconnect Wants Another $500 Million for Its ICO

Before cryptocurrency was invented, gullible individuals were defrauded via Nigerian bank scams. After the mark had lost almost everything, and the princes’ fortune they’d been promised had failed to materialize, the scammer would go in for one last trick. They’d “come clean” with the victim and confess that they too had been duped. For a small fee, they could get the mark’s money back, and set everything right.

Not Content with Stealing $1.5 Billion, Bitconnect Wants Another $500 Million for Its ICOAmazingly, many victims, out of desperation, would take them up on this offer. The majority of Bitconnect X’s investors will be the same souls who lost thousands in Bitconnect. Despite all the warning signs, they’re willing to go for broke and pray that this time they can get out before the pyramid collapses. In the words of Winston Churchill, never was so much owed by so many to so few.

How long do you think Bitconnect X will last? Let us know in the comments section below.


Images courtesy of Shutterstock.


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The post Not Content Scamming $1.5 Billion, Bitconnect Wants Another $500 Million for ICO appeared first on Bitcoin News.

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Bitcoin Price Analysis: Potential Bearish Continuation Sets Up Lower Lows

Source From https://bitcoinmagazine.com/articles/bitcoin-price-analysis-potential-bearish-continuation-sets-lower-lows/

Bitcoin Price Analysis

Shortly after a sharp drop from the mid $14,000 to the lower $9,000s, bitcoin saw a strong bounce to the upper $11,000s. At the time of this article, bitcoin appears to be consolidating and is ready to make its next move:

fig1

Figure 1: BTC-USD, 1 Day Candles, Macro View

In the previous BTC market analysis, we discussed the distribution trading range the market fell out of as it reached for lower support boundaries. Ultimately, it found support on the macro 50% retracement values near $10,000. Once it broke south of the trading range, the price fell sharply and with high volume:
fig2

Figure 2: BTC-USD, 15 Minute Candles, Current Support and Resistance Levels

After bouncing off the macro 50% values, the market rallied and ultimately tested the linear trendline shown in Figure 1. Now, after several failed attempts to break the linear trendline’s resistance, the market finds itself in a consolidation pattern where it decides where it will move next.

fig3

Figure 3: BTC-USD, 60 Minute Candles, Potential Bear Flag

One possibility to keep a close eye on is this potential, strong bear flag. After finding support on the macro 50%, the subsequent rally saw decreasing volume throughout the length of the movement. This sort of price action could potentially lead to a bearish continuation with a measure move between $4000 and $5000 — a price target of approximately $6,000 – $7,000. If a drop of this magnitude continues the downtrend, we can expect to find support on the 61% macro Fibonacci retracement values shown in Figure 1.

It’s important to note that bitcoin has a penchant for breaking upwards when all signs say “down,” so tread lightly and wait for confirmation of the move. Confirmation of the bear flag breakout would show a pretty obvious outlier in volume, combined with wide price spread.

Summary:

  1. Bitcoin recently saw a steep drop in price where it ultimately found a local bottom in the low $9,000s.
  2. Since it bottomed out, it has seen a rally on decreasing volume which leaves the door open for a bearish continuation.
  3. If the bearish continuation continues, expect support on the 61% macro retracement values.

Trading and investing in digital assets like bitcoin and ether is highly speculative and comes with many risks. This analysis is for informational purposes and should not be considered investment advice. Statements and financial information on Bitcoin Magazine and BTC Media related sites do not necessarily reflect the opinion of BTC Media and should not be construed as an endorsement or recommendation to buy, sell or hold. Past performance is not necessarily indicative of future results.

This article originally appeared on Bitcoin Magazine.

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