Peer-To-Peer Pressure: Risks vs Reward and a Changing Regulatory Landscape

Peer-To-Peer Pressure: Risks vs. Reward and a Changing Regulatory Landscape

Peer to peer lending also known as P2P is not a new phenomenon.

People have always turned to their friends and family for financial assistance when caught between a rock and a hard place. It was either that or the cutthroat pawnshop owner or the shadowy lenders down a dark alley. Before the recession, many a person in need of a loan could comfortably approach a bank and get their credit problems solved. However, with the collapse witnessed in the banking sector, things took an about turn, and stringent borrowing measures took the loan out of reach for most people in need.  

The rise of peer to peer lending

The rise in the popularity of peer to peer lending has been partly attributed to a growing need for alternative lending sources outside the brick and mortar lending institutions. The other could be the financial need of the younger generations in the job market that does not have the stable financial future cushion the older generations had to rely on.  With little in terms of job security, the gig economy is on the rise, meaning that there will not be much to rely on as far as employer matched pension benefits are concerned. So millennials and their peers are out there looking for a way to make that extra buck that will make their future more comfortable.  These age groups are also leaving tertiary institutions tangled in high student debt more than witnessed in any other generation in history. They, therefore, need these alternative lending sites, for credit for their business ideas and start-ups, since most of them are deemed not worthy of credit by most banks.

Why P2P lending has had such an unbeaten run

With this crowdfunding method, you will be matched to an investor willing to lend you cash for interest. Banks have for eons thrived on low-interest charges lent to savings accounts and high-interest charges lent to creditors.  Younger investors have found out that P2P lending can give them higher returns on their investments, much better than bank savings.

With these ultra-low rates on savings, banks have put their clientele in a bind and opened the door for alternative lending sources. These alternatives have thrived and taken away their customers right under their noses. P2P lending also has fewer overheads than brick and mortar lenders. Investors, therefore, can have better ROIs and also give affordable interest rates to the borrowers…It’s a win-win for all parties.

The dark clouds on the horizon

As for 2018, the peer to peer lending industry in the U.S had hit the $3 billion mark. A clarion call is continually being sent out to more youngsters with deep pockets to join in, in the largely unregulated trade. Riding on the wave of financial technology they are appealing to millennials who have a deep distrust for banks and their out of date and inefficient systems. This age group are digital mavens and flourish where the service and industry are, and so, they are responding in droves to the P2P attraction.

P2P lending is of course very different from traditional lending or short-term lending from companies.  Why? If you are planning to lend some money to your friend, you will have a harder time making that transaction legal. Banks thrive in the legalism they in conjunction with the law have built for mutual interest. P2P is however very different from cash saving for investors or lenders. An investor could lose everything they have plowed into lending for interest if the borrower defaults. The transaction in this sector are primarily unprotected and not covered by the Federal Deposit Insurance Corporation (FDIC).  

Peer-To-Peer Pressure

In the UK, financial regulators are preparing methods to crack down on the marketing efforts of P2P lending sites in fear that more people are throwing their money into these pools through false advertising. In 2018, these platforms transacted £6.1bn as loans. And while there is great risk apportioned to these investment platforms, the reward is that their interest rates far exceed most of what is found on other investment instruments.

However as young investors enjoy the rates and grow their savings, the UK Financial Conduct Authority has its eyes fixed on the glossy ads that are inviting more and more hapless investors to the market.  Most are going overboard and putting in more they can afford in the hopes of striking it rich. With reported increased investor losses on loans, profits to investors are on a decline, and many a long time investor is preparing to leave the scene.

Regulation and closure

There has been increasing criticism over this crowdfunding method, especially after the massive collapse of their Chinese P2P lending platforms in 2016. One of the greatest dangers these platforms raise to investor assets is that they often grow to large pools of money giving the platform owners the onus loan out more risky investments in a bid to expand.  

The expansion helps the platform sell off the business faster with less worry about the risks they have put their investors in. They can just get their millions, wash off their hands and walk away to the sunset, leaving their investor’s finances in disarray. In China P2P lending took off like fire to fuel, hitting 6000 platforms in a few years. By 2017, the transactions this industry commanded totaled more than $445 billion. In a move to regulate the sector, the Chinese government moved in to shut down some platforms like Ezubao that was more Ponzi in its operations than a crowdfunding business.  

Soon some of the Chinese largest P2P lenders started to exit the scene claiming that the new regulations were making it hard to turn in a profit. As of February 2018, there were less than 2000 platforms of this nature operating in China. With the Chinese government still on the move with regulations more and more platforms shut down, often freezing the assets of their investors on their downward spiral. Lenders began to panic and withdrew their funds en masse causing a further loss of funds and investor confidence in the sector.

Guo Shuqing, the chair of the China Banking and Insurance Regulatory Commission later issued a statement to the effect that investors had swallowed hook line and sinker the ‘too good to be true’ deal that Chinese P2P platforms represented. He warned that while the high returns of 6% were questionable, those beyond 8% were dangerous, while those higher than 10% would cause investment losses. The upheaval witnessed in China has not hit the United States yet, but with growth, it is expected that the law and the taxman will make a move too.

Pros of P2P lending

  • Peer to peer platforms fills a natural void in the lending market and in the community need to share the resources available to them. There is a mutually beneficial relationship between borrower and lender that has less red tape than experienced in other lending sectors
  • You will get to enjoy higher returns than those of many different investment channels.  
  • You have the choice of who to lend depending on your risk tolerance.
  • There is a lot of personal satisfaction derived from helping out a worthy person in genuine need of finances. If for example a borrower has a sketchy financial history, but has a sob story that arouses your sympathy, you can assume the risk of the loan or forego the high returns of the investment.
  • The sense of community and camaraderie in P2P sites is very inviting, and their forums are very heated and active. There is also the spirit of helping each learn about healthy borrowing and lending.
  • It is a good investment source for anyone that dislikes saving their cash in a bank
  • The denial rate for P2p loans is much lower than what is witnessed in banks.
  • The borrowing and lending relationships built over time can be forged to more profitable long-term relationships due to the nature of the platforms
  • The opportunity to invest and make profits is open to small scale investors as well who would have a harder time reaping off such benefits in other sectors
  • As per statistics, over 80% of all investors on these lending platforms have either met or exceeded their ROI. It works!

 Cons of P2P lending

  • The available loans are often small and in many P2P platforms limited to $35,000, though there are variances.
  • Poor credit histories will still keep some borrowers away
  • The loans are not insured so a lender capital could be entirely or partly lost, especially when dealing with dishonest borrowers who have perfected their sob storytelling techniques
  • P2P platforms tend to publish what many borrowers consider private financial stories. Some borrowers may, therefore, prefer an impersonal brick and mortar lender to the publicity of a P2P platform
  • As the industry grows and shapes itself, regulations, consolidations may become a risk and a burden, chasing away disciplined investors.

Our advice

To stay on the safe side, do your due diligence before committing your hard-earned cash to a P2P platform. Gauge the health of a platform not only by its sheer size, but by its performance for years. Do as much as you to minimize your exposure by ensuring that you do not put all your eggs in one single basket.

Article Produced By
Mark

https://themerkle.com/peer-to-peer-pressure-risks-vs-reward-and-a-changing-regulatory-landscape/

Litecoin LTC Price Analysis and Prediction 2019 Hanging Around Doing Nothing Waiting For Bitcoin Move

Litecoin (LTC) Price Analysis and Prediction 2019 – Hanging Around, Doing Nothing, Waiting For Bitcoin Move

                                

4H LTCBTC

LTC is resting Fib618 level at 0.0114BTC, right below an intersection of EMA20 and MA50 after it got rejected at Fib50 (December lows – April high) at 0.0129 BTC. LTC is right at the breakdown level – Fib618 at 0.0114 BTC and if LTC fails to defend it, it would probably dip to the Fib786 at 945k sats. Breakout level is in the zone of two Fibonacci382 levels (April high – May low) at around 0.0140-0.0143 BTC. Smashing this level would see LTC reach 0.0159 BTC or even higher (0.017 BTC). Moving averages are aligned in descending order so a leg down is more likely than a leg up.

Daily LTCBTC

LTC needs to break 0.0123 BTC zone to enter an intermediate bull market on the daily chart. This level is a converging point for EMA20 and descending trendline that started back from April highs. MA200 is right below the price action and should serve as a support should LTC keep this correction phase.

LTCUSD

Due to the BTC’s slump, LTC lost some of its USD value. It is still, however, hanging around the support at $84-89 on EMA20 and Fib236 level. Failing to sustain this level could see us stoop to $78 or even a local bottom of $65 (in case bitcoin drops heavily and drags the whole market with itself). A surge up would mean a re-test of the $107 resistance. One bullish scenario that could play out for LTC in the upcoming days is the formation of a bullish pennant pattern. Considering that there is less than 100 days until the LTC halving, this could be the ideal time to long litecoin.

One thing to bear in mind is the turbulent and erratic nature of bitcoin – a sudden thrust up or slide down is always on the cards which would invalidate this and all other analysis and predictions. In such cases, market is shaken up with most traders exiting altcoins and entering bitcoin positions or seeking shelter in stablecoins, especially in the initial phases of bitcoin pumps and dumps. So it is always a good idea to keep a close eye on bitcoin’s behaviour before opening a long or a short on any other coin in the market. Should this happen, stop by again to check out our updated charts and thoughts. Trading volume is big but questionable – reported volume in the last 24hrs is $3.1 b and “Real 10” (trading volume on the exchanges that provably prevent wash trading) volume is of course much lower – $85 million. This means that LTC’s liquidity is highly inflated and overstated by whopping 37x.

Moreover, LTC comparatively has a solid buy support, according to coinmarketbook.cc. Buy support is measuring sum of buy orders at 10% distance from the highest bid price. This way we can eliminate fake buy walls and whale manipulation and see the real interest of the market in a certain coin. LTC currently has a sound $19m of buy orders measured with this method, which sets LTC buy support/market cap ratio at 0.43%, a slightly above average value. Bitcoin and Ethereum have a 0.27% and 0.28% ratios, respectively. This novel metric indicates there are a lot of manipulations, inflated liquidity and fake orders on all crypto trading pairs, including LTC pairs.

Social Metrics

Litecoin’s sentiment score, measured by the market analytics firm Predicoin, paints a neutral picture. Predicoin wraps its analysis up into a single simple indicator known as the SentScore, which is formed from

the combination of five different verticals:

  1. News
  2. Social Media
  3. Buzz
  4. Technical Analysis
  5. Fundamentals

Interpreting the SentScore’s scale:

  • 0 to 2.5: very negative
  • 2.5 to 4.0: somewhat negative zone
  • 4.0 to 6.0: neutral zone
  • 6.0 to 7.5: somewhat positive zone
  • 7.5 to 10: very positive

Litecoin currently has a Sentscore of 4.9, a significant drop from the 6.5 it had back on April 10th. Overall, Predicoin’s Sentscore is an excellent indicator of community interest and can provide useful insight into which coins are trending right now. Litecoin is obviously not one of them.

Mid May Update: Fundamentals

To assess fundamental health of a project, we used the FCAS metric. FCAS is a comparative metric whose score is derived from the interactivity between primary project lifecycle fundamentals: User Activity, Developer Behavior, and Market Maturity.

There are a few sub components which provide data to each fundamental:

User Activity is comprised of Project Utilization and Network Activity
Developer Behavior is comprised of Code Changes, Code Improvement and Community Involvement
Market Maturity is comprised of Liquidity and Market Risk. Market Maturity has less than 5% impact on a project’s overall FCAS.

FCAS ratings are on a 0-1000 point scale with a corresponding letter grade. Break points are based on standard deviations in the underlying component distributions. 900 – 1000 is marked as S for superb. 750 – 899 is marked as A for attractive. 650 – 749 is marked as B for basic. 500 – 649 is marked as C for caution. And finally, below 500 is marked as fragile.

Litecoin has been ranked as the B category – basic with overall 746 points as of May 7th. By far the strongest metric that contributed to this great score is user activity that got 901 points, followed by market maturity with 769 and user activity that had only 624 points. This is a data backed claim that litecoin is not that great off fundamentally, especially its development side.

Below are some of the most important news around the project in the last 30 days.

  • One particular happening heats the hopes of LTC holders as a potential instigator of a larger scale bull run. That is halvening or halving, bound to happen in August. Litecoin’s second block reward halving will take place in less than 4 months, with the reward for each block reduced from 25 LTC to 12.5 LTC.
    Historically speaking, halvings have been a big deal, for both bitcoin and litecoin. The halving day does not immediately impact the price of Litecoin. Instead, the effects are felt sometimes months ahead, followed by a surge in price in the following months.
  • TD Ameritrade is a popular broker for trading traditional financial assets and has already made its entry into the cryptocurrency industry. The electronic trading platform is among the backers of an upcoming cryptocurrency exchange called ErisX. ErisX is an exchange that is targeting institutional investors. The platform will offer investors the ability to trade the cryptocurrencies Bitcoin (BTC), Litecoin (LTC) and Ethereum (ETH) on spot and futures markets.

Below is our long-term forecast where we cover general market movements and sentiment shifts before delving deeper into the specific predictions for LTC. Litecoin was created back on 7th Oct 2011 by Charlie Lee, an ex-Google employee, who quit working in order to focus on Litecoin full time. Charlie is very active on Twitter. You can read his blog here. Litecoin was designed to complement Bitcoin by solving issues like transaction timings and concentrated mining pools.

Will Litecoin Survive Beyond 2019

Litecoin [LTC] is one of the coins that suffered biggest hit by the bear market. The overall market cap has dropped below $2.5 billion and seems the shedding is not over yet. It is a well known fact that Charlie Lee sold at the peak of LTC price and tweeted a very good advice to the rest of the holders: On December 12th, 2017, Charlie Lee sent out a tweet telling people not to get too excited with the unsustainable bull run. Charlie warned about the pending multi-year bear market and that anyone who could not handle Litecoin (LTC) dropping to $20 should not buy it. While many attacked him as a FUD instigator, his reasons for making these assertions were rock solid and since LTC is now hovering just aboe $30. Charlie explained that every time the crypto market rises up too fast, it overshoots its real value, which leads to a huge correction, and a price consolidation. Charlie’s predictions have come true.

Charlie is not active in LTC for quite some time – it has been years since he contributed to the development of the once second largest cryptocurrency, that is now ranked at number 7 on CMC rankings. Being dubbed the silver to Bitcoin’s gold, Litecoin was introduced in 2011 as a quick fix that was supposed to solve some problems typical of Bitcoin. With new projects flooding the market in the recent years, Litecoin’s role seems to be thing of a past – LTC is the odd man out and nobody can bring about a solid argumentation for Litecoin’s purpose in the future. And the reason I think Litecoin is dead is not because of its price – it dropped together with the whole market and not by its own fault. The reason is lack of unique value proposition – it is just blunt copy of bitcoin with couple of parameters changed. It was that back in 2011 and it is that still in 2018. This lack of vision and will for separation from bitcoin and creation of your own niche will cost Litecoin its existence.

Litecoin can do everything Bitcoin can and it is often called a testnet for bitcoin. But who needs a multi-billion testnet – who needs two identical projects as one is enough and this is a winner takes all battle. Litecoin depends on Bitcoin. This is not just a hypothesis, this was Charlie’s vision from the project’s inception.

LTC enjoyed the treatment as a bitcoin’s little brother – technology was similar so exchanges and wallets could easily integrate it where ever they integrated bitcoin. This gave it exposure and liquidity which drove its price up especially as many would use it for faster transactions between exchanges or wallets as it had faster transaction time than bitcoin. In the meantime, there are many other coins that can be used for this purpose that are even faster and cheaper, almost free (Nano for example).

With Coinbase and other exchanges adding new projects, the top 10 market caps being dominated by some very diverse and colorful coins and a general lack of media attention and focus on Litecoin unless it makes some significant price movement, I’m not sure what would motivate new comers do the research necessary to learn about Litecoin’s potential. So if Litecoin’s utility as a micro-payment solution is now in question, where does it stand? I suppose it could be the “silver” to Bitcoin’s “gold”, but if Bitcoins are (basically) infinitely divisible and act as a good store of value, then what does Litecoin do?

As Bitcoin network keeps being optimized and upgraded with new innovations like Lightning Network, use cases of Litecoin will disappear and so will its reason to exist. Litecoin doesn’t have the name recognition that Bitcoin has. It does have a fantastic advantage to make improvements to itself much faster than Bitcoin does, but with the rise of so many other projects that have base codes that are already more fit for micro-transactions and scaling, has Litecoin missed the train? I would say yes.

LTC will continue to drop as investors move towards projects that are more realistic in their goals. If anyone replaces fiat, it is going to be bitcoin and not litecoin. Litecoin’s boon and curse has been its mirroring of bitcoin – they enjoyed the ride in the past but with every market contraction, we will lose projects that have no reason to exist, like Litecoin.

Our Litecoin 2019 Price Prediction

LTC, as the rest of the market, is tightly coupled and dependent on bitcoin’s price action. If bitcoin embarks on another bull run, LTC can hope for one as well. Since that is very unlikely, don’t expect much to change for LTC price-wise in this year. So 2019 will be a year of boring sideways action with minor bitcoin ignited jumps and slumps.

In general:

The main currency in cryptocurrency markets is Bitcoin and given this, altcoins tend to fuel Bitcoin runs and Bitcoin tends to do the same in return. Given this relationship, Bitcoin price movements (or lack thereof) tend to effect altcoin prices.

When Bitcoin goes up swiftly, it will likely:

  1. Suppress or depress altcoins as money flows into Bitcoin;
  2. Or, take altcoins along for the ride

In cases when Bitcoin plunges, it will likely:

  1. Depress altcoins as money flows into fiat;
  2. Or, cause altcoins  to boom as money flows into them, but this is rarely the case.

When Bitcoin moves sideways, it will likely:

  1. Cause altcoins to mimic that as traders wait for a clear sign on the direction of the market;
  2. Or, cause altcoins to flourish as traders look for returns in altcoins and try to get favorable trades in terms of BTC pairs.

To summarize, Bitcoin is the focal point of the crypto market in many ways, and with BTC trading pairs on every exchange, the gravity of Bitcoin is hard to evade. The majority of projects will fail — some startups are created just to gather funds and disappear, some would not handle the competition, but most are just ideas that look good on paper, but in reality, are useless for the market. 

Vitalik Buterin, co-founder of Ethereum said:

“There are some good ideas, there are a lot of very bad ideas, and there are a lot of very, very bad ideas, and quite a few scams as well”

As a result, over 95% of successful ICOs and cryptocurrency projects will fail and their investors will lose money. The other 5% of projects will become the new Apple, Google or Alibaba in the cryptoindustry. Will LTC be among those 5%? Hard to tell but probability for that is higher than with most other coins primarily for 2 reasons: solid use case and legit team behind the project. All of this summed up means one thing: LTC might live through couple of orchestrated and, for a regular trader, completely unpredictable pumps but the majority of time will be murky sideways trading with small volume and no significant interest from the market. 

Price will heavily depend on what BTC will do and since many analysts think BTC will not be making big moves in this year, it is hard to expect LTC will do them either. The price will probably stagnate and record slow-moving depreciation or appreciation depending on the team activity, potential technological breakthrough or high-level partnership.

Market prediction for Litecoin price

Litecoin is an original gangster coin, bitcoin’s copy from the old days, one of the strongest brands in crypto space. Let’s check what are the market experts or crypto editorials saying.

  • Trading Beasts
    A crypto forecast website called trading beasts predicted that by the end of 2019, LTC might reach around $80, and only a bit higher in 2020 – predicted to rise up to $95.
  • Crypto Ground
    Here comes a more optimistic prediction of cryptoground, where they say that by 2019 end, LTC might reach $90, and in five years litecoin might reach $324.
  • CoinFan
    CoinFan is a website that offers price forecasts for every relevant cryptocurrency. Their algorithm is awfully bullish as they predict that Litcoin might reach $472 by 2019 end, and might reach $1687 by 2020 end.
  • Wallet Investor
    Wallet Investor is known for their pragmatic cryptocurrency prediction. They believe that LTC might drop to single digits – $3.17 by December 2019, where the year high price might be around $45.

Article Produced By
Torsten Hartmann

Torsten Hartmann has been an editor in the CaptainAltcoin team since August 2017. He holds a degree in politics and economics. He gained professional experience as a PR for a local political party before moving to journalism. Since 2017, he has pivoted his career towards blockchain technology, with principal interest in applications of blockchain technology in politics, business and society.

https://captainaltcoin.com/litecoin-ltc-price-prediction-update-05-20-2019/

 

Just 376 People Found to Own a Third of All Ether Cryptocurrency

Just 376 People Found to Own a Third of All Ether Cryptocurrency

 

                                  

 
  • New study says so-called whales don’t move Ether prices much

  • Bitcoin price found to be good indicator of where Ether trades

Just 376 people hold a third of all Ether, the cryptocurrency that powers the Ethereum blockchain, according to new research by Chainalysis Inc.Large holders are known in the crypto market as “whales,” which Chainalysis defines as individuals who hold their assets in digital wallets and not on an exchange, Kim Grauer, a senior economist at the company, said in an interview. By comparison, 448 people own 20 percent of all Bitcoin, she said.Chainalysis also looked at the effect Ether whales have on price, and found that large holders don’t move their cryptocurrency often.

“The majority of whales aren’t traders,” she said. “They’re mostly holding.”

The study also found that when a whale moves Ether from a wallet to an exchange, there is a small but statistically significant effect on market volatility. Investor sentiment and the price of Bitcoin are strong indicators of where Ether will trade, the Chainalysis research found. As Bitcoin rallied 52 percent since the beginning of May, Ether rose 48 percent.

Grauer plans to turn the research into an academic paper analyzing the effect of large Ether holders on the market and will discuss the data Wednesday at the Consensus blockchain conference in New York. “We’re excited to bring the models that have been applied to the stock market to cryptocurrencies,” she said. The data on Ether was collected from early 2016 to the end of April, before Ether and Bitcoin surged in recent weeks. “It’s unfortunate this bull run didn’t happen a month ago to be part of our analysis,” she said, adding that the link between Bitcoin’s price and that of Ether backs up their findings.

Article Produced By
Matthew Leising

https://www.bloomberg.com/news/articles/2019-05-15/just-376-people-found-to-own-a-third-of-all-ether-cryptocurrency

 

Bullish Or Not: People Who Sold Bitcoin At The Low Are Buying Back In

Bullish Or Not: People Who Sold Bitcoin At The Low Are Buying Back In

                                

 

Someone bought Bitcoin back in 2013, sold out in 2014,

and now they’re back trying to get back in the game. That’s according to a tweet by Jake Chervinsky. Apparently, the guy in question is his close friend. In Jake’s opinion, this kind of stuff goes to show that the Bitcoin market has come a long way, and that’s why it’s attracting people who had already jumped out of the boat earlier on. Jake goes on to argue that the fact that people like his friend are dipping their hands back into the crypto business years after they walked and at a time when the crypto has already gone up value means that the market is now bullish.

In For The Long HODL

Going on and in response to a commenter, Jake said he was sure his friend is now getting on board to hang onto the Bitcoin for the long hodl. Of late, numerous analysts and Bitcoin fans have claimed that the crypto is yet to achieve its true potential, with some even arguing that Bitcoin could one day be worth over $250,000. Others believe Bitcoin is on track to replace Gold as a store of value. That’s probably one reason friends like Jake’s are buying even as the crypto is way more valuable than when they sold out.

Insider Knowledge?

Asked about the possibility of the SEC approving a Bitcoin ETF soon, Jake opined that either a yes or no decision is imminent. However, one of the thread contributors was wary that the current Bitcoin surge may be as a result of possible insider trading by people who know about the pending decision.

FOMO And Rekt?

Jake’s tweet wasn’t without some pessimists at the corner, claiming that Jake’s friend buying of Bitcoin during the current surge may have been influenced by FOMO (Fear Of Missing Out), As such, the user argued that such action wouldn’t be bullish as Jake claims but rather bearish. However, Jake was quick to point out that the fact that his friend didn’t buy back during the 2017 surge disapproves the bearish notion.

Article Produced By
Nick James

Nick is a cool guy with lots of love for technology especially cryptocurrencies and blockchain. He likes to share the juicy nitty-gritty about the latest developments in the crypto world. When he's not immersed in his crypto world and creative mindset, you can find him having fun with friends and family. Contact: Nickjames [at] zycrypto.com

https://zycrypto.com/bullish-or-not-people-who-sold-bitcoin-at-the-low-are-buying-back-in/

Ripple’s XRP Network Might Be Prone to Suffer Similar Outage As Stellar Lumens

Ripple’s XRP Network Might Be Prone to Suffer Similar Outage As Stellar Lumens

                               

 

On May 14th, the Stellar network went down.

The problem was caused by some of the validators of the Stellar Development Foundation going down. The incident caused many in the cryptocurrency space to question the level of decentralization of the Stellar network. In a blog post, Stellar promptly responded to the outage and the “over-centralized”

critiques of the network.

“We’ve seen claims that Stellar is “over-centralized” and that somehow a failure with SDF’s nodes dragged down the whole network. Ironically, the opposite is true. Stellar has added many new nodes recently. In retrospect, some new nodes took on too much consensus responsibility too soon. We need better community standards around maintenance timings, quorumset building, and validator configuration.”

Ripple CTO David Schwartz was impressed by the way Stellar handled the situation. He laid out his thoughts on the matter in a Twitter thread. Schwartz broke down the issue and explained that similar problems could possibly arise on

the Ripple network.

“The same thing can happen on the XRPL. If too many validators are missing, the network will halt because there’s no way to be sure that they’re not validating other ledgers and you just can’t see them due to a network issue. “PoW system make forward progress even where forward progress is unsafe. XRPL and Stellar do not make forward progress under potentially unsafe conditions.”

Schwartz went on to breakdown how the Stellar protocol actually worked as intended. The temporary shutdown is actually a better result than the chaos that could ensue. An accidental hard fork could occur if the consensus protocol fails. Schwartz’s explanation caused a lot of hardcore Ripple fans to take a step back to look at the bigger picture. Many even admitted to and expressed remorse for their knee-jerk reactions and trollish responses. Ultimately, to avoid this particular issue, more validators are needed. This means that more users and validators are needed. And as the cryptocurrency community strengthens and the number of participants grows, security and efficiency go up.

Article Produced By
Stephen Brown

Cryptocurrency enthusiast and Expert in content creation and planning, project management, process improvement, media operations, and staff training. BA in Political Science from Brooklyn College. Contact: stephenbrown [at] zycrypto.com
 
 

Roger Ver Debunks Craig Wright’s Claims that He Owns Some of the First BTC Adresses

Roger Ver Debunks Craig Wright’s Claims that He Owns Some of the First BTC Adresses

                                  

Satoshi Craig Wright sued Bitcoin Cash figurehead,

and former business partner, Roger Ver for libel after being called a “fraud and a liar.” Ver responded by seemingly debunking Wright’s claim that he controlled several high-profile Bitcoin addresses. For two weeks we thought that tensions between Satoshi Wannabe Craig Wright and the rest of the planet had been quieted down. However, seems that poor Wright needed money to pay out Calvin Ayre’s sun tan he is getting in Antigua so he decided to show up again. Well, at least he stays consistent. Just to remind you, Ver got served a lawsuit by Wright at a Bitcoin Cash summit two weeks ago. He was sued for calling Wright a scammer and a liar in a video which has been removed as it goes against set rules by the YouTube community. However, Ver has now released a copy of the video on Twitter. We had a chance to ask him to comment on this whole situation even before he got served.

He said:

“I think Craig Wright cut his own side. He is always on his own side and if his side, maybe for the moment or for the day lines with someone else’s, he may join someone’s side just for the day but as far as I can tell – he is on his own side.

Bitcoin cash is community that wants to build P2P cash for the people around world to use and we want everybody to be able to benefit from that. I know he is suing everybody with different opinion than his. They said they’re suing me but they didn’t serve me yet. But I am sure he wants to sue me.”

However, it seems that Roger finally got sick of it (like every normal person would) and he decided to strike back. Ver responded to the lawsuit by seemingly debunking Wright’s claim that he controlled several high-profile Bitcoin addresses, which would have suggested that Wright is Satoshi Nakamoto. The addresses, which were described as a “lazy copy-paste job,” was supposed to prove that Wright owns some of the first Bitcoin addresses ever created. Ver decided to debunk his claims by using one of the listed addresses to create a signed message. Crypto enthusiasts and avid followers of the Wright soap opera were quick to verify the signature, which did indeed show that the address was not owned by Wright.

Satoshi, Solotoshi – Is There Any Difference?

In the meantime, a few days ago, we could hear another, yet not mentioned name to stand behind the Satoshi suffix. Satoshi Nakamoto person, or whatever that is, has not been seen online in more than eight years. Evidence has now surfaced that points to a new Satoshi candidate, whose known life has a number of parallels with that of Bitcoin’s inventor. His name is Paul Solotoshi Calder Le Roux and, if he would actually be the real Satoshi, he would have had a good reason why his 1 million BTC hasn’t moved – the Rhodesian has been in jail since 2012. Even if Le Roux did create Bitcoin, it does not follow that money laundering was his goal: it would likelier have been an extension of his obsession with cryptography, which can be traced back to the 90s.

If it’s to believe what Wikipedia says, he was a brilliant programmer and privacy ideologue who worked on E4M (Encryption for the Masses), software which “is capable of encrypting entire disks, and optionally of plausible deniability (denying the existence of an encrypted volume).” However, not to be boring, presidential candidate and software developer, John McAfee had to have his tweet: Even though McAfee vowed to reveal the identity of the anonymous Bitcoin creator known as Satoshi Nakamoto, he later backed out, saying lawyers warned him it could complicate his plan to fight extradition to the U.S. from the Bahamas. However, when asked about this, a Justice Department spokesman in Washington said that he had no information.

Adam Back: Satoshi is An Individual

Last but not least comes from Blockstream CEO Adam Back who claims that Satoshi is an individual, not a group of people. Black may be important because he is the person who was actually cited in THE Bitcoin’s white paper. According to Back, this explains why the real identity of the person who started it all hasn’t been revealed yet. It’s hard to keep secrets when a group of individuals is involved.

He said:

“It just seems like something one person would do to me.”

Article Produced By
Teuta Franjkovic

Experienced creative professional focusing on financial and political analysis, editing daily newspapers and news sites, economical and political journalism, consulting, PR and Marketing. Teuta’s passion is to create new opportunities and bring people together.

https://www.coinspeaker.com/roger-ver-debunking-craig-wright/

Was This The Trigger For Bitcoin’s Dump? 3600 BTC Huge Sell-Off Order On BitStamp

Was This The Trigger For Bitcoin’s Dump? 3600 BTC Huge Sell-Off Order On BitStamp

                                

Cryptocurrencies today are down by as much as 15% in a crash

that could be fueled by a ‘whale’ selling over 3,600 BTC on Bitstamp. All the major cryptocurrencies are down at the moment, with Stellar (XLM) being the biggest loser with an almost 15% decrease (24 hours). Coin prices started to fall around 2:49 AM (UTC). During this time, BTC price dropped from $7,749 down to $7,179 in less than 30 minutes with Bitcoin’s 24-hour decline being 8.7%. Binance Coin (BNB) was the luckiest, surviving the crash with a drop of less than 6% while Ethereum experienced moderate (7.70%) and Ripple severe (12.44%) losses.

Major BTC dump in the background

At 3:02 AM (UTC), data shows a massive 3,645 BTC sell order on Bitstamp worth $26 million at that time. While there can be more reasons, it is possible that the Bitstamp sell-off triggered massive dumps across all BTC markets as Bitcoin was falling sharply. “This last drop was likely caused by a combination of profit-taking and also algorithmic trading compounding the sudden fall. We can expect these types of steep rises and drops to continue for some time until institutional investors grow market volume,” Kenetic Capital co-founder Jehan Chu said to CNBC.

The BTC long squeeze

Yesterday, CryptoPotato reported that the number of BTC shorts on Bitfinex had decreased significantly by 40% while Bitcoin long positions remained relatively steady (only dropping by 4%). This event created the settings for a long squeeze, which could have commenced by now. A long squeeze can happen when the number of open shorts is low, while open longs are high.

During a long squeeze, the price of an asset suddenly drops inciting further selling. Basically, the same has happened with Bitcoin experiencing a considerable price drop of $600 within less than 30 minutes. While the number of BTC shorts on Bitfinex remained steady since yesterday’s article, BTC longs have started to drop the same time as the coin’s price crash and continued to fall by a total of over 10%, which is a very rare occasion.

Article Produced By
Benjamin Vitáris

Ben is a crypto journalist and copywriter who has a great passion for blockchain technology. He believes that decentralization empowers people to take charge of their lives, and gives back what we desired for a long time: financial freedom.

https://cryptopotato.com/was-this-the-trigger-for-bitcoins-dump-3600-btc-huge-sell-off-order-on-bitstamp/

Bitcoin BTC Plunges Below 7500 Is This A Chance For The Bulls To Re-accumulate?

Bitcoin (BTC) Plunges Below $7,500, Is This A Chance For The Bulls To Re-accumulate?

                                

 

After a fruitful couple of days for the market,

the dreaded pullback has finally hit. In the last couple of hours, the market has been hit hard by the bears and has since seen a significant drop in prices. Bitcoin has dropped from highs of $8,000 and at the time of press has slipped further below the $7,500 mark to $7,281. This has marked a drop of more than 8% from the last 24 hours. Over the last 24 hours, the market leader has dropped as low as $7,100 before finally finding support and bouncing back again. For now, remaining above the $7,000 support position is crucial. Despite this significant drop, the coin remains bullish with the recent drop a mere pullback after a dramatic surge in the last couple of days.

What Triggered The Freefall?

According to reports, the plummet comes in the wake of several thousand bitcoin sell orders on crypto exchange Bitstamp. For analyst and product developer at Gnosis, Eric Conner, this is exactly the reason that triggered the sell-off.

He stated:

“For reference, someone put a 5,000 BTC sell on Bitstamp, which BitMEX uses for 50% of its feed and it appears to have tripped some algorithms which made a cascade on BitMEX,”

While the sell is usual in the market, many traders and enthusiasts were hoping that given the market is on a positive trend, there would be a quick buy-back, keeping prices up. This was not the case and the delay could have seen prices drip. However, the recent plummet might just have given market bulls a chance to reaccumulate and make another dashing move over the next couple of days. With the bottom in and the only way now for prices looking like up, this dip could be the chance for those looking to accumulate or re-accumulate to buy before the market can regain momentum and forge ahead in its previous trend. If this is the case, the next momentum should see prices breach the $10K position.

Altcoins Also Taking A Dip

Altcoins have also in the last couple of hours been taking a beating following in the trend of Bitcoin. In the last couple of hours, losses among top altcoins have spanned from 5% to 15%. From Ethereum and XRP, two of the largest altcoins, they have dropped by 12% and 11% respectively at the time of press. The total market value now stands at a little over $228 billion.

Article Produced By
John Kiguru

John is an exceptional writer with a liking on technology, finance and the intersection of the two. A firm believer in the transformative potential of cryptocurrencies and the blockchain,. When he is not writing, he likes to listen to Nas, Eminem, and The Beatles. Contact: john.kiguru [at] zycrypto.com

https://zycrypto.com/bitcoin-btc-plunges-below-7500-is-this-a-chance-for-the-bulls-to-re-accumulate/

Bitcoin Has Reached Adulthood Now No Wonder It Rallied Past 8k Says

 Bitcoin Has Reached Adulthood Now, No Wonder It Rallied Past $8k, Says…
                                 

Bitcoin’maturation as an asset is the foremost underlying factor

fueling its recent rally that saw the most popular cryptocurrency in the world surpassing a00 valuation, says a new report.A new report by a web intelligence platform Indexica claims that Bitcoin has now matured as an asset, which might very well be the key underlying factor to have triggered the asset’s recent rally past an $8,000 valuation.

3 Major Driving Forces

The report is based on an index that gathers data using natural language processing of textual documents. The web intelligence platform specifically developed this index to identify the primary factors powering Bitcoin’s recent surge. According to Bloomberg, the Indexica data reveals three key driving forces are acting simultaneously to give Bitcoin an upward momentum. These include:

  • Conversations surrounding Bitcoin are becoming more complex and in-depth
  • Less fear about the asset being an elaborate scam.
  • A shift in the tense used to describe the asset (the majority of Bitcoin-related conversations are now being conducted in future tenses).

More Complex Conversations About Bitcoin

To elaborate on the first point, the Indexica report underlines that a growing number of academics and financial experts are deliberating about Bitcoin and the broader crypto economy as compared to at any point in the past. Furthermore, a growing number of traditional financial institutions have either already come on board or are currently preparing to ride the crypto bandwagon. Among other perks, this changing attitude by key industry players and academics are likely to reduce the chance of a generally frowned-upon speculative growth.

‘Futurity Metric’

The report also implied that the tense used to describe Bitcoin in conversations was also a sign that the asset is now maturing. It specifically mentioned the month of April as a breakthrough point when the tense of the conversations started changing notably. The futurity metric underlines how Bitcoin-related discussions now revolve more around what’s going to happen in the future as opposed to reminiscing events from the past. This factor, according to Indexica, played a major role in fueling Bitcoin’s ongoing rally. Explaining the reasoning behind the “futurity metric,” Zak Selbert, chief executive officer at Indexica,

noted:

“Think about it, executives will speak of good things they expect to happen on conference calls before they happen. They only mention mistakes afterward.”

Worth noting here is that over the course of the past one month, Bitcoin price has surged nearly 60% from around $5,075 on April 15 to its current price of around $8,000. according to CoinMarketCap.

Article Produced By
Shilpa Lama

Shilpa is a management graduate and a network engineer who is deeply passionate about blockchain technology and artificial intelligence. She has been associated with several leading science & tech publications throughout her career as a journalist and columnist. Full-time foodie, semi-skilled musician, wannabe novelist.

https://blokt.com/news/bitcoin-has-reached-adulthood-now-no-wonder-it-rallied-past-8k-says-new-report

Bitcoin Will Be Alive and Well Legendary Investor Mark Mobius

Bitcoin Will Be Alive and Well – Legendary Investor Mark Mobius

                                

Another major investor has just endorsed Bitcoin,

noting that there is a use-case for it. However, volatility still prevents him from investing in cryptocurrency. "There's definitely a desire among people around the world to be able to transfer money easily and confidentially. <..> I believe Bitcoin and other currencies of that type are going to be alive and well,” said Mark Mobius (82), a legendary investor, co-founder of an asset management company Mobius Capital Partners, in a podcast with Bloomberg.

However, he confirmed he’s got nothing in crypto, saying: “Whether I would invest in it is not a question. You have incredible volatility and, at the end of the day, you can’t chase one individual group or one organization that will keep track of what is going on.” "Mark!!… The volatility is one of the most attractive qualities of crypto from an asset managers perspective. The idea of asymmetric risk allows us to use this unique and uncorrelated asset class to greatly increase our return on risk in any otherwise well-diversified portfolio. Just as I, in my portfolio, am holding about 3.5% in emerging markets, I believe that one day soon asset managers around the world will diversify with crypto," Matti Greenspan, senior market analyst at social trading platform eToro, reacted.

Mobius is not the only legendary investor that endorsed crypto recently. Marc Faber (73), a legendary Swiss investor for the first time has recently invested in bitcoin. Faber, who is often referred to as “Dr Doom” for his bearish views on the stock market, economy, and the central banks’ monetary policy, said that it was the young readers of his investment newsletter (“The Gloom, Boom & Doom Report”) and Wences Casares, CEO of Bitcoin wallet provider Xapo, who encouraged him to make his first investment into bitcoin. On the other hand, David Siemer, CEO of a financial products company, Wave Financial, told Bloomberg in a separate podcast that "cryptocurrency is a non-correlated asset. From every investor that has a broad portfolio, adding a small amount of this asset to this portfolio does improve risk profiles."

In regards to Bitcoin rising to USD 8,000, Siemer said that: “It’s been refreshing that it’s come this quickly; obviously, we’re all in on this sector and very bullish. As far as where the price goes, it’s obviously a very speculative asset, and we [Wave Financial] don’t publish things like future price targets. There’s an incredible amount of momentum right now – our own guess, and we have our own trading teams, is that it’s going to continue to rise over the next few months.” He also urges people to look beyond Bitcoin as well, as “we’re actually seeing a much bigger price movement today in lots of other assets.” For example, the majority of altcoins outperform the most popular cryptocurrency today.

Article Produced By
Sead Fadilpaši?

Sead is a staff journalist at Cryptonews.com who covers cryptocurrency and blockchain news daily, writes analysis pieces, tests blockchain and cryptocurrency products. He's based in Sarajevo, Bosnia and Herzegovina. Prior to joining Cryptonews.com he was a freelance, also was a journalist for Al Jazeera web. He spends his free time in music studios, recording songs for movies and cinema. Loves to break gadgets so he could fix them, enjoys exploring new music and loves tasty and equally unhealthy food.

https://cryptonews.com/news/bitcoin-will-be-alive-and-well-legendary-investor-mark-mobiu-3876.htm