Day: January 31, 2018

Tennessee lawmakers have put forward a new bill that would bar state government retirement funds from investing in cryptocurrencies.

Bitfury group enters the fight against Bitcoin criminals by launching new software to track coins #NEWS

“It’s not useful for anything,” Krugman and his cohort claim. The problem of this blinkered mindset is that it fails to recognize the cost of trust.

Blockchain technology could enable the possibility of data control and proper identity management by their real owners. #SPONSORED

As the day progresses, we are witnessing some interesting trends in the world of cryptocurrency. With most markets in the deep red right now, it’s all the more surprising the Lisk price is in the green. More specifically, its value has increased by 13.25% in the past 24 hours. As a result, we now have a Lisk price of over $26, even though it initially peaked well above $33 earlier today.

Lisk Price Gets a Massive Pump

As is usually the case in the world of cryptocurrency, hype and speculation can result in some very odd price movements. In the case of Lisk, its initial price got a major pump because the altcoin is getting listed on a new exchange. This had such a powerful effect the List price went from $22 all the way to $33 in one swift move. Such an uptrend is never sustained for more than a few minutes, though, and the market correction set in pretty shortly afterward.

Even so, we now have a Lisk price of over $26m, which is still a nice 13.25% increase compared to just 24 hours ago. With a lot of profit taking already behind us, it will be interesting to see if the price will dip to $22 again or find some stability between $26 and $30. The way things look right now, it seems more likely the Lisk price will stay above $25, but reaching $30 again today will be very difficult.

Such odd price movements are nothing new in the world of cryptocurrency, though. Every time a medium or big exchange adds a specific altcoin to its platform, the value of said token is bound to appreciate in value rather quickly. Such hype cycles usually last for two to three days, after which things return to normal as if nothing happened. Being listed on exchanges doesn’t grant Lisk extra use cases, hence the Lisk price shouldn’t necessarily gain over $10 because of it.

With $274.15m worth of trading volume, there certainly seems to a big demand to both buy and sell Lisk right now. Do keep in mind this volume represents the massive price pump to $33 earlier today, and the subsequent sell-off to push the price to $26 and change. If this trend keeps up, there is a good chance $25 may not even become solid support for all that long. It will all depend on what the Bitcoin price does in the next 12-18 hours, as that is still the main market trend to keep an eye on right now.

Binance is currently the leading Lisk exchange by trading volume. Their BTC and ETH pairs are both in the top five as of right now. Bittrex, Upbit, and Bit-Z complete the top 5 in that order. It is evident Upbit is the only fiat currency gateway for Lisk in the entire top 5 right now, which means people are simply buying cheaper altcoins to accumulate more Bitcoin. This may eventually result in a steep Lisk price drop off later today or tomorrow.

As is always the case in cryptocurrency, there is no indication of how the markets will evolve later today. With the current 24-hour losses visible for all top coins, there’s a lot of work to be done before things can return to normal. Even though Lisk gained 20.21% in BTC value, it is doubtful that ratio can be maintained for much longer. There is a lot of money to be made and lost when the markets are so volatile, that much is rather evident.

Turkey follows Denmark’s lead in using Bitcoin to pay high-profile sports players, despite government warnings against crypto. #NEWS

As Bitcoin and other cryptocurrencies gain credibility as legitimate investments, the investment world is working to make changes. One interesting change has been the acceptance of Bitcoin as a legitimate investment as part of an IRA account in the US.

First, most 401K and IRA accounts have provisions that only allow for traditional investments such as stocks, bonds, and mutual funds. In recent years, the Internal Revenue Service in the US has put forth rules that allow for less traditional type investments in what is termed a “self-directed” IRA. Any potential investment account that allows for the trading of cryptocurrency demands further discussion, especially in light what has transpired in the cryptocurrency market over the past year or so.

By definition, a self-directed Individual Retirement Account is “an Individual Retirement Account (IRA), provided by some financial institutions in the United States, which allows alternative investments for retirement savings. Some examples of these alternative investments are real estate, private mortgages, private company stock, oil and gas limited partnerships, precious metals, horses, and intellectual property.” In other words, some financial institutions have been permitted to offer IRAs, which investors can use to make riskier investments if they so choose. Not all of these specialized custodians allow for Bitcoin trading as of yet, but the trend is heading in that direction.

In this day and age, this makes perfect sense. Thanks in large part to the Internet, today’s average American is much more investment savvy than say the average American of 20 years ago. This has prompted the IRS to view taxpayers as more fiscally responsible, which gives the tax collection agency a willingness to allow IRA investors more leeway related to their investments. This is an important distinction because IRA investments are made from pre-taxed earnings and remain tax-exempt until the individual begins drawing down funds later in life.

As a long-term investment, Bitcoin and other cryptocurrencies hold great promise. Setting aside outrageous claims of tremendous Bitcoin growth in the next couple of years, the time is fast-approaching when Bitcoin is going to be accepted as a viable form of payment for goods and services being provided throughout the world. To some extent, this transformation is already underway. Assuming that it becomes reality, Bitcoin’s pricing should stabilize, making it a terrific long-term investment option.

Of course, these early days of Bitcoin trading come with a bit of risk. We have already witnessed the volatility that comes with any form of new investment vehicle. The reality is investors aren’t quite sure what to make of the Bitcoin revolution. Fortunately, time and experience will solve these issues. As investors gain confidence, we can only imagine the heights to where Bitcoin may travel.

Whether from a Bitcoin wallet or a self-directed IRA in the US, the investment world has found a new friend in Bitcoin. Over the next couple years, we can expect each country to take a hard look at crypto-currencies in general. Regulations will be set forth and much of the mystery will diminish. In the US, the notion the IRS is willing to accept Bitcoin as a viable investment bodes well for the coin on US soil.

The post Bitcoin as Part of Your IRA? appeared first on NewsBTC.

The line has been drawn in the sand. As Bitcoin continues to show its volatility, as should be expected from any new investment option, many people are in the process of assigning themselves to one of two positions.

The pro-Bitcoin faction consists primarily of Bitcoin and other crypto-currency investors. It’s reasonable to assume another larger group of investors are sitting on the sidelines, waiting for the right opportunity to join in the fray. These folks live with the belief that Bitcoin is here to stay. Its future is bright, not only as a scarce commodity but also as a potential worldwide form of currency.

On the other side sits the naysayers. These folks live with the belief Bitcoin was developed out of greed, a greed that is destined to lead to a horrific “fall from grace.” They liken this fall to the United States stock market crash of 1929 and the dot-com crash of 2001. In both cases, the proverbial bubbled did burst, but to what effect?

In just a few weeks during 1929, the US stock market crashed. More than 86% of the wealth accumulated through stock-ownership was stripped away. The crash was preceded by volatility and a buying frenzy that lasted more than a year. When the bubble went pop, economies all over the world were turned upside down. It sent the US into a depression that would last for years. The market eventually recovered, and investor confidence was reestablished. The ill-effect was temporary and led to positive changes in the market.

The dot-com crash was very similar in nature, though it focused on one primary sector. The investment bubble built until the principles of economics took over and sent the investment world a message. The market crashed by 80%, a drop felt in countries all over the world. Today, the US stock market sets new records almost every day with some of those dot-coms (Amazon, Google) leading the way.

In reality, the Bitcoin “bubble” has very little to do with history. It’s an exciting unknown. Bitcoin isn’t controlled by companies and governments. It’s controlled by the people who choose to be part of it. Should the proverbial bubble burst, many investors will surely lose money. However, that money can always be made back by staying the course. Imagine the investor who purchased 500 shares of General Motors stock in 1927 and simply weathered the storms. Their patience was rewarded with surprising wealth.

More to the point, a crypto-currency crash will have no effect on the world’s economies. The downside to the average Joe, who chooses not to pursue Bitcoin, is nothing. So why are the naysayers so concerned? Some of them believe they are providing a service by warning others while some of them are just looking for kudos from predicting the outcome.

The ones who really matter are the ones who have opened a Bitcoin wallet and staked their claim. That’s whose opinion really matters. No one can project the future, but all investments come with risks. Bitcoin is an exciting investment vehicle that demands both respect and caution. For the investors who believe the potential growth outweighs the risk, Bitcoin is the most exciting investment to come along in decades.

The post A Bitcoin Crash? –Much Ado About Nothing appeared first on NewsBTC.

The latest news on last weeks estimated $530 million hack of the Japanese exchange Coincheck – one of the largest thefts of cryptocurrency so far – is that the hackers are now trying to move the stolen XEM into smaller exchanges as reported by the foundation that developed and is tracking the coin.

The NEM foundation, developer of the XEM coin, was able to track the coin to an unidentified account according to reports.  It now says that the hackers who were able to make off with the XEM are now attempting to spread the stolen coins out to six different exchanges where it can be sold off.

Tracking the booty

Jeff McDonald of the NEM foundation says he has tracked the coins down to an unidentified account and that the hacker is trying to sell them in smaller batches to avoid triggering anti-money laundering mechanisms built into exchange security systems.

“He is trying to spend them on multiple exchanges. We are contacting those exchanges,”

Singapore-based McDonald told Reuters.

The hacker has started sending out XEM tokens in 100 coin batches, worth about $83 each. The coins the hackers made off with represent around 5 percent of the total supply of XEM, the world’s 10th largest cryptocurrency, according to trade website Coinmarketcap.

The thieves attempt to transfer the XEM in small trades on various accounts to avoid detection is probably their first step in a series of trades before converting the cryptocurrency back to a conventional currency.  The hackers are unlikely to try to spend anything close to all of the stolen cryptocurrency at once because;

“(the) market simply couldn’t absorb that much… I would assume that they are going to get away with some of the money,”

McDonald said.

Exchanges under scrutiny

The Coincheck hack which occurred last Tuesday represented 523 million NEM tokens and sent ripples of distrust throughout the cryptosphere with dips in all major cryptocurrencies including Bitcoin and Ripple.

Once the hack was made public knowledge Coincheck was quick to reassure investors that they would be making restitution of at least 90% of the value of the hacked XEM coin. Paying back 260,000 investors their losses in Yen out of the companies funds helped XEM make a quick rebound after an initial drop in value once the hack was acknowledged.

This new hack has again raised questions about the security of cryptocurrency exchanges and especially their storage protocols. Japan’s Financial Security Agency (FSA) ordered Coincheck to make improvements in all operations, which suspend all trading except Bitcoin as of Friday.

The post Hackers in Coincheck Heist Believed to be Moving Stolen Loot appeared first on NewsBTC.

Bitcoin is back above the $10,000 mark, but may soon head back below $9,800, the technical charts indicate.

LINE is looking to launch a cryptocurrency exchange and trading functionality in its chat app, used by 200 million people monthly #NEWS

Japanese messaging app provider Line Corporation has announced the launch of a new company that will provide in-app cryptocurrency services.