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American Investors Plan to “HODL” Bitcoin Until Price Hits $196,000

When would an average investor completely exit Bitcoin? A new survey among Americans indicates a price of $196K.

Survey methodology
LendEdu commissioned a survey in November 2017 of 564 Americans who had invested in Bitcoin. While surveys have been done in the past to gauge the awareness of the general public about Bitcoin, this survey focused on American Bitcoin investors and their sentiments. We have come a long way from 2015, when 65% of Americans surveyed didn't know what Bitcoin was. The questions asked in the survey ranged from their reasons for investing in Bitcoin to when they would sell all their Bitcoins.

Sell all your Bitcoin?
The average price at which the survey respondents said that they will sell all their Bitcoins is $196,166 per Bitcoin. This represents 30x the value of Bitcoin prevailing at the time of the survey. It is to be noted that this is the price at which the respondents will sell all their Bitcoins. Almost a third (32.62%) have sold some of their Bitcoins since they started investing. It is tempting to book profits, given how the price of Bitcoin has rallied in the last year.
Most of the respondents plan to hold their Bitcoins at least one year, with only 16.49% planning to sell sooner than that. According to the survey, 21% of Bitcoin investors plan to hold on to their coins for at least seven years, and 11.7% say they will hold the currency for 10 years or longer.

Store of value or speculative investment?
While pundits debate whether people are investing in Bitcoin because they treat it as a store of value or as a speculative investment, the survey results indicate something completely different. According to LendEdu:
“The most popular selection, chosen by 40.78 percent of respondents, was "I believe Bitcoin is a world changing technology." It is interesting to see that the plurality of Bitcoin investors are backing the technology as the primary reason for investing. Often, financial professionals speculate that Bitcoin investors are chasing a big payout.”
It seems that the naysayers are wrong, and these aren’t merely “greater fools” chasing huge gains. Instead, American Bitcoin investors are apparently sophisticated enough to realize the value of the project’s technology.
The next largest group of respondents see Bitcoin as something akin to digital gold:
“The second most popular reason why investors liked Bitcoin, chosen by 21.81 percent of respondents, was for the possibility of long term storage of value of it. Many financial professionals often compare Bitcoin to precious metals like gold, silver, and platinum. For centuries, investors have used precious metals as a way to diversify away from government backed currency.”
Worried About Safety
Another big takeaway from the survey is that almost half (44.15%) of the respondents were worried about the technological safety of their Bitcoins. This isn't surprising, considering high profile cases such as Mt. Gox. That exchange, the largest in the world by volume, went bust and its former CEO was arrested in Japan on embezzlement charges. He has pleaded not guilty.

In addition to the ill-fated Mt. Gox, numerous other exchanges have faced security problems. Multiple exchanges have been hacked and their customers’ Bitcoins have been lost. While Bitcoin holders can follow certain practices like keeping their Bitcoins in cold storage to increase security, the survey shows that ordinary investors continue to worry about the safety of their coins.


$16 Bln Payments App Square Integrates Bitcoin, What’s Next?

Earlier this week, $16 bln payments app Square officially integrated Bitcoin into its mobile platform, enabling three mln active users to buy, sell and store Bitcoin seamlessly.
Jack Dorsey, the CEO at Twitter and Square, particularly expressed his enthusiasm towards the potential of Bitcoin as a robust store of value, and the Square team’s optimism surrounding the long-term growth trend of Bitcoin.
In an interview with Forbes, a Square representative explained:

“We’re always listening to our customers and we’ve found that they are interested in using the Cash App to buy Bitcoin. We're exploring how Square can make this experience faster and easier, and have rolled out this feature to a small number of Cash App customers. We believe cryptocurrency can greatly impact the ability of individuals to participate in the global financial system and we're excited to learn more here.”
Market cap of Square surges by $1 bln after Bitcoin integration
Since Friday, the share price and the market cap of Square have increased by nearly 10 percent, as the company’s market cap rose from $15 bln to $16 bln within a five day period.

Various reports since September have revealed that Bitcoin has become a trendy and in-demand keyword within most major industries. Even large-scale multi-billion dollar companies such as Square and Overstock have started to  experience major surges  in their market valuations following their integration of Bitcoin and Blockchain technology.

More importantly, the integration of Bitcoin allows major payments app like Square to compete with existing service providers within the cryptocurrency and Bitcoin markets, which are dominated by a handful of companies including Coinbase and Blockchain. Given that Coinbase has evolved into a $1.6 bln startup within the past 12 months, companies in the traditional finance sector have begun to consider integrating Bitcoin and offering infrastructure around the cryptocurrency.

What comes next with Square?
In consideration of the company’s optimism in regards to the long-term growth and adoption rate of Bitcoin and its CEO Jack Dorsey’s enthusiasm towards the cryptocurrency market, it is highly likely that the development team behind Square will actively investigate the possibility of full Bitcoin integration throughout its platform.

For many years, Square has operated a widely utilized Point of Sale (PoS) network that has been used by hundreds of thousands of merchants globally. The integration of Bitcoin into the Square PoS network would immediately enable anyone to use Bitcoin at Square-using merchants such as restaurants, cafes and stores.

Whether Square intends to pursue the integration of Bitcoin into its PoS system remains unclear. But, major PoS operators in major regions like Japan have already started the process of integrating Bitcoin. Most notably, Recruit Lifestyle’s AirRegi PoS app, which supports more than 200,000 merchants in Japan, has rolled out Bitcoin integration and is expected to provide extensive support to over 20,000 merchants by the end of this year.


Bitcoin Cash Might Soon Be Worth 1/10 of Bitcoin

Thursday, Bitcoin Cash (BCH) price has dipped below the important psychological level of $1,000 - the value of one coin has fallen as low as $993. This follows a hectic weekend, during which the cryptocurrency has experienced a meteoric rise to its all-time high of $2,477, coupled with Bitcoin (BTC) temporarily dipping below $6,000.

By now, however, it is apparent that the ‘flippening,’ predicted by some of the BCH’s most enthusiastic supporters, is not happening any time soon. Bitcoin Cash retraces to its established levels around $1,000 while BTC is maintaining dominance.

In fact, Bitcoin continues breaking all records, as it blew right past the $7,500 mark and is now at around $7700, owing in large part to the news about the CME Group announcing Bitcoin futures trading.

The current price fluctuations are a reflection of the ongoing competition between the two coins for the place of a ‘true’ Bitcoin, with the supporters of both solutions being sharply divided over their differences.
Cointelegraph will continue monitoring the market and reporting on the price movements of Bitcoin and Bitcoin Cash.


World Gold Council Head:

Neil Hume, Mining and Commodities Editor for Financial Times, was quick to have World Gold Council Head of Market Intelligence, Alistair Hewitt, dismiss bitcoin’s ascendancy as a reason for gold’s third quarter (Q3) performance woes. He paraphrases Mr. Hewitt as having said, “there was nothing to suggest gold was suffering from the popularity of cryptocurrencies such as bitcoin, which have experienced explosive gains this year.” There is reason to be skeptical of that claim.

Gold Currents Might Turn Trends
Fortune’s David Meyer writes, “More people are now searching online for how to buy bitcoin than they are searching for how to buy hold,” according to Google Trends. Gold is the classic hedge against stock market volatility, especially during downturns.

That might be changing if Q3 figures are to be extrapolated into a full-fledged movement or current.
It certainly doesn’t help to have a booming stock market at the moment along with a new commodity asset in cryptocurrencies. Leaving out the entirety of the legacy markets, bitcoin alone has appreciated many hundreds of percentages in just 2017.

“Demand for gold slumped to an eight-year low in the third quarter,” Mr. Hume reports, attributing the record fall to “the prospect of higher US interest rates and tighter monetary policy” which  “resulted in less [gold] buying from institutional investors.”

World Gold Council Head:

Gold demand falls 9% to 915t in Q3 as ETF inflows slow from unprecedented highs in 2016, the latest World Gold Council report of 8 November 2017. It “showed demand for bullion fell to 915 tonnes in three months to September, down 9 per cent from the same period a year ago.”

“The latest figures were hit by ‘significantly’ lower inflows into gold exchange traded funds, which fell to 19 tonnes from 144.3 tonnes, and a softer jewellery market in India,” Mr. Hume detailed. (India is second only to China in gold consumption).
The “world’s biggest consumer of gold after China — dropped 25 per cent year-on-year in the quarter to 114.9 tonnes,”Financial Times notes.  
Quoting Mr. Hewitt, “It was a tough quarter for gold demand,” and, paraphrasing again, “Mr. Hewitt said net inflows had remained weak during October with just three tonnes added to ETFs as investors chased higher returns from assets such as equities and bonds.”

Central Banks are the Health of the State
And here is the a-ha! moment: Mr. Hewitt anticipates gold’s rebound due to “buying from central banks. Led by Russia and Turkey, central banks added 111 tonnes to their gold reserves in third quarter, 25 per cent more than in the same period in 2016,” Mr. Hume claims. Quoting Mr. Hewitt approvingly, “We now have another central bank that is buying 10 tonnes a month,” in reference to Turkey. “That’s a significant development that hasn’t been picked up by people looking at the gold market.”

Things have become so desperate in the gold market, the metal’s heroic past of taming governments, of spiting them, has given way to alms: hands out, begging for central bank acceptance.

Digital Gold, Gold 's Fading Hedge, and Bitcoin as Both a Store of Value and Settlement Commodity

Central banking is contrary to peace. Once such power was consolidated around the world by the early 20th century, even gold standardization of currency fell out of favor, and the rush toward inflation became all the rage. The power for governments to control money supplies is too tempting to trust with gold, but it is a way to stay relevant beyond circuit boards and jewelry. And central bank inflation is often overlooked for its keen martiality, its propensity for war and state expansion generally.

Governments in the inflation age can promise all sorts of goodies to subjects, march them off to war without a financial care (much less lives loss), and generally consolidate while also expanding power. If there is one takeaway from the entire 20th century and our present time, an inverse relationship exists between human freedom and government growth.

Gold no longer offers hope in this regard.

Bitcoin as Hope for Peace
The swirling debate at present is what bitcoin constitutes as a currency and network. It’s clearer to me bitcoin of the BTC variety, segwit bitcoin or whatever you’d like, is going to remain, if it does at all, a store of value and ultimate unit of settlement. Bitcoin cash (or a variant) might very well become the fungible, everyday currency of Satoshi’s digital cash ideal. With well-known transaction fees ever-rising and processing times thudding it along, BTC doesn’t in the near-term figure to be a currency in the easiest sense of that word.

This means there’s a chance bitcoin could replace gold as the future hedge, a way for people to fight inflationary warmongers and chiefdoms.

Digital Gold, Gold
        's Fading Hedge, and Bitcoin as Both a Store of Value and Settlement Commodity

With CME’s entrance into the bitcoin foray, and if institutional investors bring whales, along with blockchain dreams, BTC could very well reach price highs pegged by Fundstrat’s Tom Lee of 25,000 USD and beyond.


What is Bitcoin to a Layman Investor: Survey

Bitcoin is still a very enigmatic phenomenon. People are not even sure what it is; a currency? A store of wealth ala digital gold? There are different niches of the economy that view it totally differently from each other.
However, the real proof in the pudding is what the common man on the Bitcoin Street sees Bitcoin as and how they use and work with the new technology and revolution of money.
A recent survey from LendEDU shows how 1,000 Americans utilize their Bitcoin investment and the opinions they have from holding to spending, tax and security.

“Why did you invest in Bitcoin?”
As Bitcoin gains more and more traction, it is bringing in a larger and more diverse slice of the population. No longer the plaything of the technological savvy, there are mothers and teenagers who are investing.

Why Are Consumers Investing in Bitcoin?

According to the raw data presented above, the large majority of people are in the Bitcoin game for the long term revolutionary changes it can bring. This is interesting as there is a strong belief that people are getting into Bitcoin for greed; however, research suggests that only 14 percent of people are chasing riches.
Perhaps a deeper dig into the data would suggest that those who see it as world-changing are the same people who are fed up with the way things are now. The traditional money market and exclusive investing ecosystem is being shunned by millennials and the likes.

Roshaan Khan, a 20-year-old senior at Virginia Commonwealth University, seems to one of those who would fall into the 40-odd percent:
“All of my net worth is in cryptocurrencies because I see them as the best way to escalate my ability to be financially secure and pay off my student loans,” Khan said. “I like the idea of decentralization, the fact that there’s a lot less corruption and political ties. That idea appeals to me … Not having to go through banks. Having financial control over our lives again.”

“How much do you own?”
What is the current value of
    your Bitcoin investment?
This figure seems surprisingly low. Bitcoin investment that amounts to just under $3,000 does not seem to suggest that the common man is throwing everything they have at the new technology.
There is probably still a bit of a wait and see mentality, a similar mentality that many banks have.
David Gledhill, group chief information officer at DBS, one of Asia's largest banks, has said that there is no reason for his bank to join the Bitcoin craze - yet - as they are happy to wait and see. Perhaps this is a similar approach for many, not to go full tilt into the burgeoning technology.
“Bitcoin isn't going to help DBS bring in customers, deposits or wealth management so right now it's watch and learn," Gledhill explained.

“Hodl or spend?”
The easiest investment advice that is often handed down to newbies in the market is to ‘hodl,’ in other words, accumulate and let it grow.
Have Investors Sold Any of Their Bitcoin?
The survey shows that the ‘Hodl strategy’ is indeed a popular one with more than a two-thirds majority showing strong hands in the face of huge potential profits or even stomach-turning drops.
While ‘Hodling’ is a popular tactic in Bitcoin investing, so much so that Petar Zivkovski, COO of leveraged digital currency platform Whaleclub says: “holding the top 5 cryptocurrencies by market cap as they probably have the best foundation and ability to beat any crash.” The survey suggests some are not in it for the long road.

How Long Will Investors Hold Onto Their Bitcoin?

With Bitcoin jumping from $0 to nearly $8,000 in less than 10 years, it is interesting to note that only 11 percent of people are willing to hold on that length of time to see where things go.
The majority are likely to hold for less than three years. Perhaps this is indicative of the lightning quick market that Bitcoin has built, attracting impatient investors.
Of course, some are waiting for a figure, rather than a time limit, to sell off their digital assets. And just what is that figure? A very precise: $196,165.79.

“Tax and security concerns?”
Tax has been a sticky issue for Bitcoin, especially in the eyes of the IRS, and while this survey suggests that the majority will pay tax on their Bitcoin earning, a large portion wont.
67.38 percent said they will pay tax, while the remaining 35.87 percent will be keeping mum to the tax man.
When it came to security on the decentralized form of money, the concerns were pretty evenly split as 55.85 percent of people said they did not worry about the technological security. The rest, 44.14 percent, did.


Bitcoin Eyes $7k As Square Tests Bitcoin Payments

Bitcoin is breaking $7,000 again as p2p payments provider Square tests integrated crypto payments in its Cash app.
As Forbes and others report Wednesday, Square has issued a rollout to a limited number of customers, using pooled wallets to allow Bitcoin payments without the current high fees.
“...We’ve found that [customers] are interested in using the Cash App to buy Bitcoin,” the company said in a statement.
“We're exploring how Square can make this experience faster and easier, and have rolled out this feature to a small number of Cash App customers. We believe cryptocurrency can greatly impact the ability of individuals to participate in the global financial system and we're excited to learn more here.”
Bitcoin has increased over $450 in value over the past 12 hours to circle just inches below $7,000 on major exchanges.
As users continue to battle high fees, the debacle over Bitcoin Cash (BCH) which saw Bitcoin prices drop dramatically over the weekend seems to be abating.

Having hit $2,400 previously, BCH is now circling just half of that, while Bitcoin is at its highest since Nov. 10.
Reactions to Square’s experiment were mixed, with Reddit commentators’ lukewarm reception contrasting with excited tweets from extant Square users.


Bitcoin Price is Up 17%, Will it Achieve a New All-Time High in Short-Term?

Bitcoin price has risen by 17 percent within the past 24 hours, after dipping below $5,560 earlier today. Since then, Bitcoin price has stabilized at $6,450, recording a daily increase of around $890.

Bitcoin Price

Triggered by the sell-off of major Bitcoin investors and the rapid surge in the value of Bitcoin Cash Bitcoin price plunged over the past weekend. However, as expected, Bitcoin price recovered relatively quickly as the Bitcoin Cash price declined from over $2,800 to $1,200.

Short-term indicators for Bitcoin price increase
The sell-off of large sums of Bitcoin in the past few days led to a domino effect, wherein traders started to panic selling their Bitcoin in fear of market uncertainty and a major Bitcoin price correction. Consequently, the daily trading volume of both Bitcoin and Bitcoin Cash surpassed the $10 bln mark, for the first time in history.

However, as Bitcoin has demonstrated several times in the past year, it has recovered significantly faster than most analysts had expected in the short-term to around $6,500.
Historically, after achieving a new all-time high, Bitcoin tends to correct itself to the point that is higher than the previous all-time high and initiate a new rally to achieve a new all-time high. For instance, when Bitcoin price achieved a new all-time high at $4,500 earlier this year, it corrected itself to around $3,300 and initiated a new rally which allowed it to climb to the $5,000 region.

A similar trend will likely occur in the upcoming weeks with the US market. The second largest Bitcoin market behind Japan is highly optimistic in regards to the entrance of institutional and retail investors into the Bitcoin market, alongside tens of billions of dollars in new funds.

CME Group and CBOE, two of the largest options exchange domestically and globally, will launch Bitcoin futures exchanges by the end of 2017, to provide an infrastructure and sufficient liquidity to institutional investors.
Previously, Mike Novogratz, the billionaire hedge fund legend, revealed that a herd of institutional investors are preparing to engage in Bitcoin trading. Such movement will be made possible with the launch of large-scale Bitcoin futures exchanges approved by the US Commodities and Futures Trading Commission (CFTC).

The approval of Bitcoin futures exchanges by CFTC is fundamentally different than the approval of Bitcoin ETFs by the US Securities and Exchange Commission (SEC) in March of 2017 because the CFTC has already approved LedgerX to operate as a Bitcoin derivatives, options and futures exchange for retail investors. Thus, the approval of CME Group and CBOE to launch Bitcoin futures exchanges is guaranteed and is not conditional.

Billions of money on the sidelines to come to Bitcoin
Through strictly regulated Bitcoin futures exchanges, the so-called “money on the sidelines” invested in offshore banking accounts, wealth management products (WMPs) and traditional assets will migrate to Bitcoin in the mid-term. As Novogratz explained:
“I can hear the herd coming. I was just in San Francisco, met with a few big institutional investors and their still a ways away but they’re coming. Lots of funds are being raised and so I’m pretty confident to say that it [Bitcoin price] is going higher.”
Such movement will allow Bitcoin price to achieve new highs before the end of 2017 and potentially gear towards the $10,000 mid-term price target of highly regarded financial analyst Max Keiser.


Bitcoin Continues Usage Acceptance Especially in Australia

Bitcoin has sustained its growing acceptance as a ‘complementary’ currency to the official monetary systems around the world as of mid-November 2017. In Australia, for example, an increasing number of Bitcoin automated teller machines (ATM) are being installed around the country due to its continuous popularity as an online currency.

The installation of ATMs around Australia will give opportunities to Bitcoin owners to exchange their virtual currency for cash. This will result in a seamless transition from virtual to real money.

How does it sustain its growth?
There are many positive features of Bitcoin that attract a growing number of users to the number one digital currency.
One major draw is the ability for users to remain anonymous while conducting their transactions.
Once a user has already created an account to the Bitcoin system called the Blockchain, he/she can already create any number of ‘addresses’ that he/she can use in their sales and purchases.

Another attractive feature of the virtual currency is that there is no need for a third party or a middleman to effectively complete a transaction. This is because Bitcoin users can transact directly with each other. As compared to banks, which charge their customers in withdrawing and managing their own funds, Bitcoin transactions are marginally lower when compared to bank fees.

For investors, the phenomenal performance of Bitcoin’s price in the financial market provides an opportunity for them to buy or sell the virtual currency for high profits.
There is a very promising future for Bitcoin and other digital currencies in Australia based on the growing number of Bitcoin ATMs being established across the country at a time when bank closures are being reported around the nation.

These closures show that an increasing number of people are already favoring online banking and there is already a significant decline in the use of cash by consumers.
It is, indeed, interesting to see whether Bitcoin will continue its expansion in Australia and around the world in the near term


Japan Teaches Western Governments a Lesson in Cryptocurrency Regulation

Bitcoin is a phenomenon that provokes conflicting emotions in people. Fear. Excitement. Elation. Doubt. For governments tasked with regulating every new thing that comes along, be it the motor car or the internet, bitcoin presents a conundrum. How to regulate such a seemingly unregulatable creation? While many western governments have reached for the button marked “Fear”, Japan has taken the reverse approach.

Land of the Rising Coin

    Japan Teaches Western Governments a Lesson in Cryptocurrency Regulation 

Bitcoin has been an officially legal payment method in Japan since April, when 4,500 stores began accepting the cryptocurrency, and leading financial newspaper, the Nikkei, tips that figure to increase five-fold by the end of the year. Japanese shoppers can spend bitcoin in a range of stores including electronics giant Bic Cam and bitcoin signs are displayed prominently, helping to raise awareness. BTMs – ATMs that exchange fiat for bitcoin – are scattered throughout the country, and there’s even the ability to pay utility bills complete with a special bitcoin discount via Remixpoint.

Following the Mt Gox collapse, in which the country’s (and indeed the world’s) largest bitcoin exchange liquidated, losing 850,000 bitcoins, Japanese regulators stepped in. Rather than try to stem the use of cryptocurrency, they enacted regulations which mandated exchanges to maintain capital reserves, keep customer funds separate, and implement KYC procedures.Meanwhile, many western governments have dithered over cryptocurrency regulation.

Regulators Mount Up
This week, Donald Trump’s treasury secretary issued his first public comments about bitcoin – and they weren’t exactly glowing. His primary concern was with ensuring that bitcoin couldn’t be used “for illicit activities”. He also invoked the usual canards that

Japan Teaches Western Governments a Lesson in Cryptocurrency Regulation
Encryption is bad, m’kay?

government officials are prone to uttering in the same breath, citing money laundering, terrorists, and the dark web. The only box the treasury secretary forgot to tick off was the one marked “child pornography”.

These accusations aren’t just limited to bitcoin of course. Cryptography as a whole is the bugbear of many western governments, with British and US leaders in particular expressing frustration that backdoors can’t be built into encrypted messaging platforms such as Whatsapp. Bitcoin is mercifully free from centralized attempts at meddling with code, but that hasn’t prevented governments from restricting entry and exit points from the fiat world. Officials haven’t lain the banhammer on bitcoin, but they’ve done little to support it.

Opportunity or Threat

        Teaches Western Governments a Lesson in Cryptocurrency Regulation

   Japan is a tech-savvy nation whose elected officials have a better appreciation of the transformative power of emerging technologies than most. It follows that the more digitally-inclined countries should be among the first to embrace cryptocurrency. In Europe, Estonia, with its e-Residency digital passports, is another country that’s been positive towards cryptocurrency.
“Bitcoin regulation” can mean very different things in different countries. In Japan it means taking measures to safeguard citizens whilst encouraging the responsible use of bitcoin and enabling crypto companies to get on with business.In other developed nations, however, “bitcoin regulation” is a euphemism for “anti-money laundering”.

Thumbs Down From Down Under

“Australia follows Japan in move to regulate bitcoin” ran the headline in the Financial Times. It all sounds so promising, but delve into the story and it becomes evident that Australia is not about to start rolling out BTMs and putting up bitcoin signs in its retail stores.

“Stopping the movement of money to criminals and terrorists is a vital part of our national security defences and we expect regulated businesses in Australia to comply with our comprehensive regime,” states the country’s justice minister in Orwellian terms.

Japan hasn’t been shy when it comes to weighing in on bitcoin, as its stringent KYC regulations and new ICO guidelines show. But it’s tempered this with an open invitation to exchange owners, entrepreneurs, crypto pioneers, and bitcoin enthusiasts that says “We’re open for business”. Western governments could learn a lot.


Move Over Ethereum, Bitcoin Cash #2

For a long time, people debated whether Ethereum would one day overtake Bitcoin and become the largest cryptocurrency by market capitalization. The tables have turned on Ethereum now, with Bitcoin Cash overtaking Ethereum to become the #2 cryptocurrency.

Phenomenal run results in flippening
Bitcoin Cash had a phenomenal run during the weekend, with its price increasing from $660 on Friday to a peak of $2,446 on Sunday. The price has almost quadrupled in a matter of two days. While the price seems to have been driven by Korean exchanges, other global exchanges have reported healthy gains too.

At the time of reporting the price had corrected, but still bore a healthy gain. The overall market capitalization of Bitcoin Cash after the correction is still ~$31 bln, which is more than the market capitalization of Ethereum. While people had always thought of Ethereum as the major challenger to Bitcoin, it now appears that Bitcoin Cash has taken Ethereum's place.

Cannibalizing #Bitcoin
The sharp rise in Bitcoin Cash's price has come at the expense of Bitcoin. Bitcoin’s price has been on a steady downtrend ever since the Segwit2X fork was cancelled. A lot of people had bought Bitcoins in the expectation that they would get free Segwit2x coins after the fork. While market observers had expected some of this hot money to flow into altcoins once the Segwit2X fork happened/got cancelled, Bitcoin Cash seems to have been the main, but not only, beneficiary. The combined price of Bitcoin and Bitcoin Cash is over $8,000, which is not very different from the price on Friday.

Unconfirmed transactions plague #Bitcoin
Apart from the dashed expectation of free Segwit2X coins, another problem plaguing Bitcoin is the huge transaction backlog. With over 135,000 unconfirmed transactions and transaction fees soaring, the Bitcoin network seems to be grinding to a halt. Segwit2X would have made a difference, but it has been abandoned. Other scalability solutions, whether the Lightning Network or others are urgently needed, but may not get implemented in the near future. In the face of these problems, Bitcoin Cash seems very attractive.

People have all along been looking for a Bitcoin-killer altcoin, an altcoin with enhanced features, whose value would increase to overtake Bitcoin. In the end the solution might have been staring everybody in the face - the market may place a premium on quick confirmation and low fees, which could boost Bitcoin Cash.


Bitcoin Cash Pump Stalls, Stabilizes Near $1500

The Bitcoin marketplace has become a sort of chaotic mess, as the hardfork altcoin Bitcoin Cash(BCH) has surged. Many pundits have embraced the new altcoin as a way to honor the original Bitcoin vision of Satoshi Nakamoto. In contrast to the original BTC, BCH offers 8MB block s and faster transaction times.

As the new NYA-proposed SegWit2X hard fork has been put to an untimely end, the Bitcoin community expected stability and increasing prices. However, quite the opposite happened for Bitcoin as the price has sustained a substantial decline over the past couple of days.

As Bitcoin rapidly dropped in value, BCH has responded in the opposite way, pulling investors and consumers away from the original core chain, moving large amounts of volume into the BCH camp, and producing . So intense was the price shift, that even Vitalik Buterin publicly congratulated the chain’s growth.

Bitcoin Cash or Bitcoin Core?

Bitcoin Cash has continued to surprise the majority of BTC holders. The price has moved in huge swings, often as much as $500 in a matter of a few hours. As volatility increases and the market continues to correct and swing, prices will continue to move back and forth between the two contentious forks. Both have their followers, and the winning coin will have a sizable following after the dust settles.

However, among many industry insiders the results of the contention are not critical. Regardless of which fork succeeds, the general goal among cryptocurrency advocates is that support will continue to grow in the general marketplace. David Sønstebø Founder and Chairman of IOTA said:  
"The entire Bitcoin/Bitcoin Cash drama and fork fiasco highlights just how stagnant Bitcoin is both as a technology and community, as well as how the centralized miners have the ability to manipulate the market at a whim. Furthermore it really shows the inherent limitations of Blockchain architecture. No matter which route the quorum decides to go in, it will have a negligible effect on Bitcoin's adoption as a transactional settlement layer.”


Satoshi Nakamoto’s Confidant Gavin Andresen Throws Support Behind Bitcoin Cash

Gavin Andresen is the latest significant player in bitcoin to pledge support for bitcoin cash, referring to it as the chain most true to Satoshi’s original vision. In a tweet published on the 12th of November, Andresen has emphad his belief that the high fees associated with BTC are undermining it as an effective means of exchange.

“Bitcoin Cash Is What I Started Working on in 2010: A Store of Value and Means of Exchange.” 

Satoshi Nakamoto’s Confidant Gavin Andresen Throws Support Behind Bitcoin Cash  

Former lead developer for bitcoin, Gavin Andresen, has thrown his support behind bitcoin cash. In a recent tweet, Andresen has published a comment effectively describing bitcoin cash as the successor to his early work on the bitcoin project.

Andresen’s tweet speaks to the core utilities requisite of a money commodity, emphasizing the threat the high fees pose to bitcoin’s core mission of providing a fast and frictionless decentralized means of payment that is available for use by all. For many, without facilitating reduced barriers to access and ease of use for microtransactions, bitcoin runs the risk of principally being employed as a speculative asset used by individuals able to justify the significant costs now associated with making transactions. The tweet comes shortly after numerous businesses announced that they would be supporting bitcoin cash rather than BTC due to reduced fees.

Andresen’s Contribution to the Bitcoin Versus Bitcoin Cash Debate Is Highly Significant Due to Gavin’s Critical Role in the Early Development of Bitcoin  

Satoshi Nakamoto’s Confidant Gavin Andresen Throws Support Behind Bitcoin Cash 

In 2011, Gavin Andresen was chosen by Satoshi Nakamoto to inherit the role of lead developer for bitcoin. Andresen had worked closely with Satoshi prior to such, and his work is seen as integral to bitcoin by many. In 2012, Mr. Andresen established the Bitcoin Foundation, before leaving his development role to more closely focus on the foundation. Since then, Gavin Andresen has become increasingly critical of Bitcoin Core, and has been a long time supporter of alternate bitcoin protocol implementations. Earlier this year, Gavin revealed the Random Sanity Project, a “free, open source service to help detect and report catastrophic RNG failures.”

Bitcoin Cash’s price has skyrocketed in recent days, with BCC currently trading as of this writing at approximately $1750, comprising a more than 166 percent gain in just three days. The rally established new all-time highs of around $2150 before immediately crashing to retest the previous major breakout area of $1400 USD from the preceding day. Prior to the recent rally, bitcoin cash had established an all-time high of approximately $970 USD on Bitfinex roughly two weeks after its conception. Following the initial boom, bitcoin cash entered a descending channel where a support zone of roughly $300 USD was established, until BCC began to break out of said range at the end of October.


Bitcoin Cash Prices Surpass $1,800 — Eying the Second Largest Market Cap

As news.Bitcoin.com reported earlier this weekend, bitcoin cash (BCH) markets have been on a rampage following the canceled 2MB hard fork event. BCH prices have increased three-fold since then, reaching a high of $1810 across global exchanges and has since dropped to around $1400. Alongside this, the network hashrate has also met parity with the BTC chain.

 Bitcoin Cash Reaches an All-Time High of $1,650 and $7B in Daily Trade Volume
All eyes are on crypto-markets this week, and they’re looking at two markets in particular: bitcoin (BTC) and bitcoin cash (BCH). The two ecosystems have been sharing a strange correlation over the past 72 hours as BCH has reached new all-time highs and BTC has dropped over $1,300 in the last three days. Bitcoin cash markets are up over 70 percent over the course of the day. 

Bitcoin Cash Prices Surpass $1,800 — Eying the Second Largest Market Cap
Bitcoin market prices have hit an average low of $6,100 per BTC.

Moreover, Bitcoin cash trade volumes have surpassed $7B in BCH swaps over the past 24-hours. The South Korean exchanges Bithumb, and Korbit are dominating BCH markets, as the won captures 47 percent of the market.

Bitcoin Cash Prices Surpass $1,800 — Eying the Second Largest Market Cap
On November 11, 2017, at 11 pm EDT Bitcoin Cash took the second highest market cap by temporarily displacing Ethereum.

Further, the market capitalization of bitcoin cash reached over $29B, temporarily taking ethereum’s second place position.

Bitcoin Cash Prices Surpass $1,800 — Eying the Second Largest Market Cap
Bitcoin cash markets touch an all-time high of over $1800 per BCH across global exchanges.

The Hashrate Parity

In addition to the market action, both BTC and BCH markets are seeing a strong correlation in the hashrate arena. At the time of writing, both networks have an equal share of roughly 5.4 exahash per second. BCH is operating at 10 percent of the BTC’s difficulty, and it’s100.7% m
ore profitable to mine BCH, according to Coin Dance statistics. There’s also a bunch of pools mining bitcoin cash including F2pool, Antpool, Viabtc, BTC.comBitcoin.com, BTC.top, Supernova, Bitclub, and some unknown pools.

BTC and BCH hashrate November 11, 2017.

Mempools and Fees

To add to all the market mayhem, the Bitcoin network’s mempool (transaction queue) is backed up by 139,000 transactions waiting to confirm. According to Johoe’s Mempool statistics, the backup has accumulated quite a bit over the past three days since the 2x cancellation. On November 11, using Earn’s fee calculator the average 226-byte transaction costs $9.64 or 155,940 satoshis. Some users are paying upwards of $15-20 per transaction just to get them confirmed quicker. The bitcoin cash mempool is also seeing some action but is clearing smoothly. The average fee for a bitcoin cash transaction is roughly $0.10-0.25.
Bitcoin Cash Prices Surpass $1,800 — Eying the Second Largest Market Cap
The bitcoin (BTC) mempool top. The bitcoin cash (BCH) mempool bottom.

The week going forward should be interesting, to say the least, watching both of these markets and ecosystems. Now, of course, the story could go on forever with the two community’s raging back and forth at each other in typical internet fashion. However, the statistics alone on November 11th are more fascinating, and the story will play itself out as time progresses.


Bitcoin Cash Continues Climbing Over $2K, Retreats

The death of SegWit2X was seen as a huge boon for the Bitcoin Core team, and social media channels were full of Core supporters congratulating each other. Some supporters of the hard fork even went as far as apologizing for supporting the divisive measure.

However, as the dust from the fork cancellation settled, it became quite clear that the price of Bitcoin had begun to decline. As the price declined, the price of Bitcoin Cash rose in correlation. As it continued to rise the reality of the situation became clear. Much of the support for Bitcoin was beginning to shift to Bitcoin Cash.

Bitcoin vs. Bitcoin Cash
Over the past two days, the price has risen from the mid $500 range to a short term high over $2,150. After the price touched that high, it quickly retreated back below $2,000, settling in the $1,500 range. The major decline was also coupled with a quick pop in the price of BTC, moving back from below $6,000 to $6,200.

The massive fluctuations show the deep divide in the Bitcoin community. The price shifts reveal the desire for some scaling solution for the Bitcoin Core fork, but there is great rejection of Bitcoin Cash as well.


Bitcoin $400,000 Says Investing Guru Mark Yusko

The Chicago Mercantile Exchange (CME) has announced it will add Bitcoin futures trading in the fourth quarter of 2017. Bitcoin price almost instantaneously jumped on the news, reaching all-time highs over $7,500.

However, the cancellation of SegWit2x has led to a sudden slump in the price, and would-be investors have been scared away from previous high priced predictions. However, Mark Yusko, founder and CEO of Morgan Creek Capital Management ($3.7 bln in assets under management) has not shied away from making predictions, suggesting that Bitcoin will eventually be worth $400,000.

The investing guru first bought into the cryptocurrency scene in 2011 but regrets not purchasing more. He was clear about the future, however, in spite of the lack of support among institutional bankers. He noted:
"This will change the supply and demand equation for banking. It is that big. I'm not surprised at all that bankers, financiers and Saudi Princes are coming out against it. This is a truly disruptive technology.”

Yusko compared Blockchain and Bitcoin to the Internet thirty years ago, noting that it has the same capacity to ‘change everything.’ His lofty prediction is for the long term of the cryptocurrency.


bitcoin gold price

The Bitcoin Gold developers are preparing the cryptocurrency’s network for its official launch.

As CCN has reported, bitcoin gold (BTG) is an altcoin that will be created through a fork of the main bitcoin blockchain. Consequently, like bitcoin cash, it will have a shared blockchain history with bitcoin up until the fork. That split took place on October 24, when the bitcoin gold developers took a blockchain “snapshot” of the bitcoin network, meaning that everyone who held bitcoin balances at that time will receive an equal number of bitcoin gold coins.

However, the Bitcoin Gold network had yet to launch in the intervening weeks, as the developers were continuing to tinker with the source code by implementing replay protection, as well as a new consensus algorithm that will supposedly resist the use of specialized computer chips for mining. The developers were also premining approximately 100,000 coins, which they claim will be used to help fund the growth and development of the bitcoin gold ecosystem.

That process nearing completion, developers say the official network will launch on November 12 at 19:00 UTC. In response to the announcement, the price of bitcoin gold futures rose 31%, from $140 to $185.

However, it remains to be seen whether this latest bitcoin fork will amass enough support from users, miners, and services to remain viable over the long-term. Bitcoin cash has managed to assemble this infrastructure, but some analysts believe investors and traders will experience “fork fatigue” as subsequent altcoins fork away from the main blockchain.

Others fear that these forks, by retaining the bitcoin moniker, will make the ecosystem even more confusing for new users than it already is and could discredit the claim that bitcoin is truly a scarce commodity.
“These forks are very bad for bitcoin,” concluded Sol Lederer, blockchain director at tech startup Loomia. “Saturating the market with different versions of bitcoin is confusing to users, and discredits the claim that there are a limited number of bitcoins – since you can always fork it and double the supply.”


Bitcoin Leads Digitalization of Global Monetary System, Finance Industry

Over the past decade, companies with almost no physical assets have turned out to be the most successful businesses in their respective industries. Bitcoin is leading the digitalization of the global monetary system and is en route to competing against existing fiat currencies and the finance industry.

Uber, Airbnb and Amazon
Amazon, the second largest technology company in the global market with a $544 bln market valuation, has been criticized as a bubble and for its supposed “unsustainable business model” since 1997, for more than two decades.
Eventually, Amazon evolved into the leading service provider in the international e-commerce industry surpassing the growth rate of Alibaba in the past few years.

Businesses like Uber and Airbnb that are structurally similar to Amazon in terms of their tendency to limit holdings of physical assets have greatly exceeded the expectations of investors. Similar to Amazon, Uber does not process many automobiles to operate the world’s most widely utilized ride-sharing and transportation network. Airbnb does not hold much real estate to sustain a network in the hospitality marketplace.

Despite their lack of physical assets, the three above mentioned companies have completely transformed their respective industries with innovative and truly revolutionary technologies.

#Bitcoin’s digitalization of money
Bitcoin is leading a nearly identical digitalization process in the global finance industry and of money. While Bitcoin users can choose to hold the cryptocurrency in the form of physical money, the vast majority of Bitcoins are stored in wallets and trading platforms. Bitcoin transactions are settled in a peer-to-peer manner without the existence of intermediaries.

As prominent author, entrepreneur, and trader Stephen Burns stated:
$AMZN has almost no stores ?$Uber owns almost no cars ?$FB creates no content ✏️$BABA has no inventory ?$AirBnB owns no real estate ?
Bitcoin has no physical coins ?
As of current, Bitcoin is being increasingly recognized and acknowledged as a robust store of value, a safe haven asset and digital gold. Hedge funds, institutional investors and retail traders have been rushing into the Bitcoin and cryptocurrency markets to engage in Bitcoin investment, which CME chairman Leo Melamed described as a “new asset class.”

In the long-term, Bitcoin will compete with fiat currencies and existing monetary, financial and banking systems that dominate the global market, and ultimately solidify itself as the global digital currency.


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China Struggles to Lay Killing Blow to Bitcoin, Currency Thrives

China became the first country to take a hardline approach to ICOs, then moved on to Bitcoin and the exchanges that trade the digital currency. Despite these bold and brazen efforts, Bitcoin’s price is higher than ever, and the currency continues to be a factor in China. Where there’s a will there’s a way, and Chinese investors are still managing to trade Bitcoin and buy into controversial ICOs.

Fear of drop

The initial news of China’s take down of Bitcoin, which was timed with Jamie Dimon’s slur on Bitcoin, caused the price to take a dive. As the price dropped from $5,000 to $3,000 on the news, the fear was that further exclusion of a major Bitcoin player, like China, would erase Bitcoin’s price gains this year. However, this has not been the case at all.

Instead of a total shutdown, what has happened is that resourceful Chinese traders have adjusted their methods, switching to a private over-the-counter market.

Over the counter Bitcoin trading has risen from about 5% at the beginning of September, before exchanges were shuttered, to about 20% a month later. This is according to data cited in a report by the National Committee of Experts on Internet Financial Security, a government-backed research group.

Change in tactics

Traders have had to move with the times to stay relevant in the Bitcoin market, which has also seen a change in messaging app to effect these peer-to-peer trades.
State controlled messaging app WeChat has seen an exodus of Bitcoin related chat as the more neutral Telegram has picked up the slack. This is where the Chinese population has found aid in making over the counter trades.

Mining mission

There are still plenty of issues for miners to overcome in China due to new regulations. Many have fled to China’s hinterland in Gansu and Inner Mongolia, where cheap electricity can power massive rigs.

This new peer-to-peer market, however, is still young, and not liquid enough to allow these miners to set up the sale of their newly minted coins. According to Thomas Glucksman, head of marketing for Gatecoin:
“There are a lot of questions about the future of the Chinese miners, given that they still need to pay for staff and operations in renminbi. It’s either a case of migrating their operations or facilitating renminbi cash-out through the over the counter market.”


Fiat Currency Will be Laughable in Five Years Says Billionaire Tim Draper

Tim Draper has every reason to be bullish on Bitcoin as he has seen his $20 mln investment in the digital currency grow by over 1,000 percent in just three years. Draper is now predicting that in five years fiat will be so obsolete, it will be laughable.

The tech investor has made a fortune backing companies like Skype, Tesla and Twitter. He first got involved in Bitcoin after he bought 30,000 of them in 2014 in a government auction of assets seized from Silk Road.
Don’t be a laughing stock
While Draper may be on the defensive after his ICO baby Tezos became embroiled in scandal, leading to a class action lawsuit, he is still highly bullish about the future of the grand-daddy of digital currencies. Draper told Forbes:
"In five years, if you try to use fiat currency, they will laugh at you. Bitcoin and other cryptocurrencies will be so relevant ... there will be no reason to have the fiat currencies."
Bitcoin, and the rest of the cryptocurrency market, recently made it over $200 bln in a rally that saw Wall Street again add fuel to the fire by announcing trading in Bitcoin futures. This pales in comparison to the trillions of dollars in global fiat currency supply. Nonetheless, the fact that Bitcoin has appreciated over 600 percent this year is reason enough to believe it is on a rocketing trajectory, aiming at the fiat mark

Fiat bound

Draper goes on to explain how fiat has its limitations, the same limitations that are really starting to bug a progressive and forward thinking global population.

Crossing the border for any currency is never a pleasing or easy exercise. The Nigerian Naira drops 30% when you cross the border. Outside Argentina, the country's peso is currency nearly worthless, and there are other countries where this is true as well.

In Zimbabwe and Venezuela, their currencies have either disappeared totally, or are on the brink of total collapse, and already Bitcoin is doing its bit to pick up the pieces.

Seeing a future for ICOs

Draper may have been stung by Tezos, however, he still sees a future for altcoins and ICOs. The billionaire sees a future with hundreds, if not thousands, of different digital coins. Draper added:
“They’re all going to interrelate … and there will be exchange rates for all of them. My guess is that it will centralize around a wallet that you have, and when you pay for that Starbucks, your wallet will optimize to whichever currency has most value."

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