Cointelegraph.com News Cointelegraph covers fintech, blockchain and Bitcoin bringing you the latest news and analyses on the future of money.
Profit taking Bitcoin miners won’t stop the next bull run: On-chain analyst
by Joseph Young on September 21, 2020 at 12:31 am
Bitcoin miners sold substantial amounts of BTC throughout the past two months, but on-chain analysts believe it won’t stop the next bull run. Historical data shows that some miners began to sell Bitcoin (BTC) at the end of July, leading to increased selling pressure in the cryptocurrency market.Eventually, the dominant cryptocurrency fell steeply from mid-August, recording a 13% fall and since then BTC has struggled to retake the $12K mark.Bitcoin selling by miners from 2017-2020. Source: CryptoQuantAccording to CryptoQuant CEO Ki Young Ju, continued selling by miners might not be enough to prevent a bull run. On-chain data analysis firms closely observe the movements of miners and whales because they hold significant amounts of BTC.Willy Woo, an on-chain analyst, explained that miners represent one of the two external sources of selling pressure for Bitcoin. He previously said:“There’s only two unmatched sell pressures on the market. (1) Miners who dilute the supply and sell onto the market, this is the hidden tax via monetary inflation. And (2) the exchanges who tax the traders and sell onto the market.”When miners start selling their Bitcoin holdings, typically to cover expenses, it could trigger a correction in the cryptocurrency market.For instance, From Aug. 17 to Sept. 5, the price of Bitcoin dropped from $12,486 to $9,813. During that time, several whales sold Bitcoin right at $12,000 and the same behaviour was observed amongst miners.The selling pressure coming from miners and whales noticeably has been attributed to the current crypto market slump but in the longer term, Ki explained it is not enough to stop a prolonged bull run.If miners abruptly sell a significant amount of BTC, it could cause a severe correction as a small price movement could trigger liquidations from heavily-leveraged traders. Hence, even a relatively small sell-off by miners could theoretically cause massive price swings.Ki says the intensity of the sell-off from miners was not strong enough to halt future bull runs. He said:“Miner Update: Some miners began selling at the end of July, but I think in the long-run, miners didn't sell BTC large enough to stop the next bull-run.”According to ByteTree, the net inventory of Bitcoin miners declined by 125 BTC per week in the last 12 weeks. The data indicates that miners sold approximately $1.362 million BTC per week week atop the BTC that they mined and sold.Amount of BTC mined and sold in the last 12 weeks. Source: ByteTreeAs Ki emphasized, the data shows that miners sold substantial amounts of BTC, but not in amounts that were irregular to normal behaviour.Post-halving bull cycle remains a possibilityBitcoin is still hovering above the critical $10,000 technical support level despite multiple attempts by bears to drop the price below the key level.The resilience of Bitcoin amidst a heightened level of selling pressure suggests a cautiously bullish trend in the long term.The Bitcoin short-term holder NUPL. Source: GlassnodeSeveral on-chain metrics also indicate that now is a healthy accumulation phase for Bitcoin. Rafael Schultze-Kraft, the CTO at Glassnode, said:“Short-Term Holder Net Unrealized Profit/Loss (STH-NUPL) with a #bullish signal here imo. That bounce of the 0-line was important, is very characteristic for previous bull markets, and historically a good buying opportunity.”
MicroStrategy CEO seems to embrace Bitcoin maximalism
by Turner Wright on September 20, 2020 at 10:56 pm
From skeptic to maximalist in seven years. MicroStrategy’s decision to use Bitcoin as its primary reserve currency has Michael Saylor seemingly favoring the asset over altcoins.In a Sept. 20 tweet, the business intelligence company’s CEO stated that he considers Bitcoin (BTC) to be a crypto asset network, unlike tokens like Ethereum (ETH) or stablecoins, which he referred to as “crypto-application networks.”Posting a chart from analytics site Bitcoin Dominance, the CEO claimed that the coin’s dominance “has advanced from a low of 71.05% on December 20, 2017 to 93.57% today.”When considering network dominance in the crypto industry, I find it clarifying to separate crypto-asset networks like #Bitcoin from crypto-application networks like Ethereum & stablecoins. Bitcoin dominance has advanced from a low of 71.05% on December 20, 2017 to 93.57% today. pic.twitter.com/03cbWVyoLY— Michael Saylor (@michael_saylor) September 20, 2020However, Saylor is intentionally selective when it comes to this data. Bitcoin Dominance’s figures do not include initial coin offerings or stablecoins, but rather “only includes coins using proof-of-work that are attempting to be money.”According to CoinMarketCap, which takes stablecoins like Tether (USDT) into account, Bitcoin’s dominance was at a yearly low of 56.67% as of Sept. 13, while Messari shows the metric closer to 59%. Both are far from the 93% dominance Saylor tweeted. Ethereum and DeFi have been driving alt season this year, as the 10 largest DeFi tokens now represent a market cap of roughly $9 billion compared to Bitcoin’s $200 billion.Though initially claiming “Bitcoin’s days are numbered” in 2013, Saylor has turned bullish on the crypto asset in recent weeks following MicroStrategy’s purchase of $250 million worth of BTC as a reserve currency in August. He announced on Sept. 14 that the firm subsequently bought an additional $175 million of BTC.“Bitcoin scales just fine as a store of value.”Saylor isn’t alone in the crypto community in discounting the vast majority of altcoins. Emin Gün Sirer, the creator of the first proof-of-work-based crypto, said in April that Bitcoin maximalists are correct to label “95% of the things out there as scams.”“They’ve just recycled something that belongs to someone else,” he said.
US Space Force taps blockchain firm Xage Security for data protection
by Emilia David on September 20, 2020 at 10:00 pm
Going where no blockchain has gone before. The recently created United States Space Force, or USSF, and the U.S. Air Force Research Lab has chosen blockchain firm Xage Security to develop data security systems.In a statement, Xage Security said it was awarded a contract to provide end-to-end data protection for the USSF. The company will employ its blockchain-based Xage Security Fabric solution for the project.The company said Xage Security Fabric has a unified platform that can secure all systems and removes single points of entry so hackers can’t wipe information. It will allow the USSF to verify who accesses systems, ensure satellites continue to function securely even if ground equipment goes offline, and protect data until fully transferred to operational units.This is the second contract Xage Security won from the U.S. Air Force, following the first one signed in December 2019.The USSF was established in December last year to defend space and acquire military space systems. According to the University of Illinois, space systems are infrastructure and vehicles that work together to perform outer space tasks. These can be satellites or even spaceships. Since many space systems heavily rely on communication and geographical positioning, it’s crucial that data being sent through cannot be compromised.Xage Security CEO Duncan Greatwood said blockchain meets many of the complex needs of the USSF:“The USSF requires decentralized enforcement of security to establish space domain resilience and objective situational awareness––across every asset and data element. We built the Xage solution to serve the needs of complex critical infrastructure systems, and are excited to bring the Xage solution to the Space Force in the form of a blockchain-protected space system security.”The U.S. Department of Defense, which oversees all military branches including the Air Force and the USSF, has been interested in blockchain for a while. It awarded Indiana-based blockchain firm Simba Chain a contract to provide security for sensitive research and development data in March this year. The Defense Advanced Research Projects Agency, or DARPA, has also been involved in blockchain since 2019.
Uniswap payday, ETH transactions hit record high, EU backs stablecoins: Hodler’s Digest, Sept. 14–20
by Editorial Staff on September 20, 2020 at 9:17 pm
The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions and much more — one week on Cointelegraph in one link! Coming every Sunday, Hodlers Digest tracks every important crypto news story from the previous week. Essential reading for all Hodlers! Top Stories This Week Frenzy as Uniswap launches new governance tokenUniswap stole the show this week when it announced it was launching UNI, its very own governance token. A total of 1 billion tokens will exist, and anyone who has ever used the platform can claim 400 of them.Thousands came forward to accept their reward, and at one point, the airdrop was worth a cool $3,356. Not bad considering each token was initially priced at $3.Within a single day, UNI was listed on more than a dozen exchanges and had driven $1.8 billion in trading volume. Binance added to the excitement by announcing support for the token just 90 minutes after it went live.Many analysts were unsurprised when UNI rallied to highs of $8.60, and although the token has since had a correction, some traders believe the token could be worth many billions in the long term.One of them, Crypto Medici, wrote on Twitter: UNI going to be worth $3-5 billion (conservative) Still extremely undervalued. Token distribution was genius and many that sold will FOMO back in when we break $1 billion. This is before V3 comes out, and liquidity mining ramps up.Daily Ethereum transactions hit a new historical high amid DeFi boomThe Uniswap frenzy helped daily transactions on the Ethereum blockchain reach a new all-time high of 1.4 million exceeding the previous record of 1.35 million transactions in January 2018.After the UNI token launched, transaction fees spiked to almost $1 million an hour. All of this means that the significant levels of congestion on the Ethereum network show no signs of abating, prompting renewed concerns about scalability.Now, Coinbase Pro has had enough. The exchange has announced that it will no longer cover network fees on behalf of users. In a series of tweets, it explained:Historically, Coinbase Pro has absorbed these fees on behalf of our customers. However, as crypto has begun to gain broader adoption in applications like DeFi, payments and other projects, networks have gotten busier.In other Ethereum news this week, new research published by Cointelegraph Consulting has revealed that the total market cap of ERC-20 tokens has overtaken Ethereums. A boring week for Bitcoin But will momentum tip back in favor of bulls?As Cointelegraph analyst Michal van de Poppe notes, its been a relatively dull week when it comes to Bitcoins price.The worlds biggest cryptocurrency has seen a slow upward trend after finding a footing above $10,000. Although the rally continued to $11,000 on Sept. 18, it was pushed back by some short-term resistance levels.Van de Poppe says BTC is now facing a crucial resistance between $11,200 and $11,400, and if this area can be broken, a retest of higher levels will be back on the table. He doesnt expect there to be a clear breakout out of this zone in one go and says sustaining support at $10,750 is crucial.Establishing new yearly price highs highly dependent on breaking the multi-year resistance level at $12K to continue the general uptrend for the rest of the year, he wrote.Also this week, the Bank of England became the latest central bank to discuss negative interest rates effectively meaning that savers must pay to store cash. In response, Tyler Winklevoss said: You couldnt buy a better advertisement for Bitcoin.EU to see comprehensive crypto regulation by 2024The European Union has officially got on-board with blockchain, announcing that it wants to make cross-border payments quicker and cheaper through the use of crypto assets like stablecoins by 2024.The trading bloc is going to introduce fresh regulations that will promote this technology for international money transfers.According to the European Commission, 80% of consumers in the EU use paper money at present, but it wants to see digital payments become more common, with immediate transaction times.Documents seen by Reuters said: By 2024, the EU should put in place a comprehensive framework enabling the uptake of distributed ledger technology (DLT) and crypto-assets in the financial sector. It should also address the risks associated with these technologies.Apple forces Coinbase to change its crypto products, CEO claimsCoinbase CEO Brian Armstrong has accused Apple of stifling innovation in crypto and sidelining DeFi to protect itself from competition.The head of the exchange even claimed that other crypto firms are reluctant to speak out on these topics for fear of retaliation.Claiming that attempts to talk to Apple directly have reached a dead end, Armstrong said that Coinbase is being stopped from adding features to its iOS apps that would allow users to earn money using crypto and access DeFi apps.He wrote: Why would Apple want to prevent people from earning money during a recession? They seem to not be ok with it, if it uses cryptocurrency. Im not sure why.Winners and Losers At the end of the week, Bitcoin is at $10,838.10, Ether at $368.44 and XRP at $0.24. The total market cap is at $344,943,312,540.Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Hyperion, ABBC Coin and Celsius. The top three altcoin losers of the week are DFI.Money, SushiSwap and Flexacoin.For more info on crypto prices, make sure to read Cointelegraphs market analysis. Most Memorable Quotations Following UniswapProtocols announcement of the $UNI token today, #Ethereum saw a massive surge in miner fees. Almost $1M USD in fees were spent in a single hour!Glassnode Starting today, Coinbase Pro will pass along network fees directly to our customers Historically, Coinbase Pro has absorbed these fees on behalf of our customers. However, as crypto has begun to gain broader adoption in applications like DeFi, payments and other projects, networks have gotten busier.Coinbase Pro Prediction: $UNI will soon be the #3 crypto asset.Cole Kennelly, DeFi NYC founder I dont necessarily think that 2020 is going to be the year of some type of major retail bull run, largely due to the fact that the global economy still lingers over this industry, just like other financial markets.Joel Birch, Stacked co-founder Thanks Bank of England, you will help drive $BTC adoption.Tone Vays, veteran trader 2020 has witnessed a surge in the number of ATMs supporting digital coins.Aksjebloggen As $BTC has crossed above $11,000 for the first time since September 3rd, the sentiment of #Bitcoin on #Twitter is surprisingly at an all-time low.Santiment What happens when vaccine is proven? Gold silver Bitcoin will CRASH. Buying opportunity.Robert Kiyosaki, Rich Dad Poor Dad author Since DeFi protocols are designed to be permissionless, anyone in any country is able to access them without any regulatory compliance. As a result, DeFi can easily become a haven for money launderers.CipherTrace We added our 40th state today just a week shy of our one-year anniversary. 100% coverage is our goal.Binance US Prediction of the Week Bitcoin Birch says no retail crypto-wide bull run likely for the rest of 2020In the aftermath of Mays halving, there was optimism that Bitcoin could be about to embark on a bull run not to mention endless predictions that the cryptocurrency would return to all-time highs. But Joel Birch, the co-founder of the automated investing platform Stacked, now believes this isnt likely.Speaking to Cointelegraph, he said: I dont necessarily think that 2020 is going to be the year of some type of major retail bull run, largely due to the fact that the global economy still lingers over this industry, just like other financial markets.Despite that, he does believe that Bitcoin has an opportunity to continue heading upward between now and December.Others remain as bullish as ever. PlanB, the creator of one of the best-known Bitcoin price models, has said its high time for BTC to begin its next significant price rise to $100,000, writing: Time to go up.FUD of the Week Police summon Bithumb chairman for questioning over alleged fraudThe drama over alleged fraud involving Bithumbs senior executives continued this week, with the companys chairman summoned for interrogation.Police reportedly want to question Lee Jung-hoon, who is accused of multiple fraud and embezzlement offenses regarding the failed listing of the BXA token.It is believed that investors lost up to $25 million as a result, with Lee allegedly embezzling these funds in overseas property purchases and offshore investments.Also this week, Bithumbs offices were raided for the third time this month. Police reportedly seized a number of shares in Bithumb Holdings belonging to Kim Byung-geon, the companys Korea director.Fresh reports of Indian crypto ban are clickbait, says local sourceHeadline-grabbing pieces have warned that Indias parliament is preparing once again to try and ban crypto trading for good, but according to local experts, there might not be anything to worry about.Siddharth Sogani, the founder of the Indian blockchain research company Crebaco, has described the reports as nothing short of clickbait and he questioned the sources that Bloomberg had spoken to for a recent article.Ashish Singhal, the CEO of the crypto exchange CoinSwitch, also told Cointelegraph that it is far too early for any draft bill to be presented to the countrys parliament.He also pointed to the list of bills that is subject to discussion during the parliaments Monsoon Session and said a debate on banning crypto trading isnt scheduled. COVID-19 vaccine will spark Bitcoin crash, Rich Dad Poor Dad author warnsRich Dad Poor Dad author Robert Kiyosaki has claimed that Bitcoin will crash when the world finds an effective coronavirus vaccine.On Twitter, he wrote: What happens when vaccine is proven? Gold silver Bitcoin will CRASH. Buying opportunity.Nonetheless, Kiyosaki believes that gold, silver and Bitcoin remain the best investments in the long term, and he argued the biggest threat facing the American economy isnt the pandemic, but rather the massive levels of debt that have left the U.S. bankrupt. Best Cointelegraph Features Programmable money: How crypto tokens could change our entire experience of value transferWriting for Cointelegraph Magazine, Andrew Singer explores the rise of programmable money as some experts say the coronavirus is forcing a slow-moving tsunami in this area. Illicit crypto transactions are getting more attention from the governmentAs Selva Ozelli writes, the IRS has a strong interest in receiving information from informed whistleblowers about offshore crypto accounts and criminal crypto tax activity. DeFi and healthcare: A trillion-dollar opportunity for the takingYou may not think that decentralized finance and healthcare would go well together but according to Pradeep Goel, theres huge market potential.
The US is number one...in blockchain patents
by Ting Peng on September 20, 2020 at 8:00 pm
But the company with the most patents isn’t even American. Despite Chinese firm Alibaba filing the most patents so far this year, the United States still takes the lead as the country with the most blockchain patents, a Sept. 17 report from intellectual property consultancy KISSPatent said.IBM and Alibaba hold the most blockchain patents. Alibaba has filed more than 200 patents while IBM filed a little over 100. But other U.S.-based companies like Bank of America and Mastercard have also filed several patent applications bumping up the total for the U.S. According to KISSPatent, more blockchain patents have been filed in the first half of 2020 than all of 2019. The U.S. has 2,112 patents, followed by the Cayman Islands with 350 filings and Canada with 118. The rest of the top six are Japan with 108, South Korea with 87 and China with 77 patents. The Cayman Islands is second as Alibaba’s subsidiaries headquartered in the British Overseas Territory filed these applications.Although Chinese companies are often represented in various top 10 blockchain patent lists, not all of the companies work solely on blockchain. KISSPatent says these companies have blockchain applications as part of their technology portfolio. The reason China filed so many patents, the report said, was to avoid some trading sanctions overseas. It explained that:“They’ve learned from the example of Xiaomi, the “Chinese Apple,” which was blocked from selling its smartphones in its foray out of China - because the Swedish Ericsson held so many patents.”Source: KISSPatent The most popular category of patent filing, representing half of all patents, is fintech applications. These include applications using cryptocurrencies and those supporting the storage or the exchange of cryptocurrencies. Other popular categories are patents for decentralized business platforms, solutions deployed over blockchain, business services with a financial component and healthcare and traditional banking services on a blockchain. Many industry players have expressed concern over patent trolling, so Square helped launch the Cryptocurrency Open Patent Alliance. The group wants to democratize access to innovative technologies.