Why is Bitcoins price down to two-month lows?

Crypto investors are seeing red this week. Bitcoin plunged to two-month lows on Thursday, dipping below $9,000 for the first time since November. At the time of writing, Bitcoin had ricochetted back up to the $9,200 level, down from weekly highs simply above $12,000. This week has seen coins across the board in the red — a sign that investors are jumping ship to fiat currencies this time instead of swapping into altcoins as we’ve seen in the recent past.

At the time of writing, the total cryptocurrency market cap weighed in at $459 billion, down from January highs around $830 billion. It’s a contraction to be sure, but not a low for the last 30 days( that low came on January 18 ).

Is this the bitter end for Bitcoin? For cryptos? Well , no, probably not. Get your head bolt on right and you’ll should be noted that( for better or worse) many coins have watched unprecedented growth in the last six months to a year, even with Bitcoin’s price halved from holiday highs closer to $20,000. On the working day last year, Bitcoin was sitting pretty at $982. At the height of December’s craze, most reasonable crypto-watchers could agree that the price was overheated and there was only one way for it to go in the short term. Still, in the thick of the present correction, Bitcoin’s longer-term growth is anyone’s guess.

Cryptocurrency die-hards expecting the price to bounce back, even partially, “il be seeing” these tanking numbers as the perfect entry phase for getting in low and maximizing gains. Late speculators who got in during the mass crypto hysteria of the holiday season aren’t likely to have such steady hands, a factor that’s likely contributing to the slide.

So what’s causing the slide to begin with? As usual , no one thing can be blamed for Bitcoin’s current downturn, but recent skittishness around a subpoena for Bitfinex and fears around Tether — a kind of cryptocurrency equivalent to USD that matches the dollar one to one — likely taken into account in. Recent news that Facebook would ban ads for ICOs probably didn’t help either. And it seems like every day a new Ponzi scheme gets busted, hurling yet more doubt on the credibility of plenty of less than legit ICOs.

Even beyond news cycle highs and lows, Bitcoin has seen a few mid-January dips before, though 2017 ’s Bitcoin behavior surely broke from any seasonal patterns of the past.

Still, these growing aches are far from surprising. As cryptocurrencies mature — assuming they continue to do so — regulatory “bad” news will become more common. Countries across the globe will continue to struggle to accommodate their citizens’ sudden those who are interested in digital currencies — or not, in the case of India, which simply decided to ban them outright. Unsurprisingly, headlines like these inspire a sense of premonition among cryptocurrency fanatics wondering which country will be next to come down hard. Fear, perhaps justifiable anxiety for many speculators with plenty to lose, amplifies each new regulatory revelation. But for cryptocurrencies to grow out of the present scam-laden chaotic epoch, a thorough house cleaning is healthy.

Bitcoin and other cryptocurrencies have also looked less responsive to positive news in the latter half of January compared to their relative buoyancy during December’s dizzying highs. Then, every little positive news blip seemed to push the prices higher.

Bitcoin aside, some altcoins might just be adjusting from overheated, overhyped December highs. Ripple is an excellent example of this, hovering around$ 1 Thursday, a price that’s five times its November value and only seems bad after XRP flew a bit too close to the sunshine with sudden early January highs above $3. Ethereum is also faring pretty well, all things deemed, down from all-time highs above $1,400 but holding most of its newly built value after doubling in price from December costs around $500.

It’ll be interesting to see what happens as we move into next week’s Senate Banking Committee hearings on cryptocurrency. Titled “Virtual Currencies: The Oversight Role of the U.S. Security and Exchange Commission and the U.S. Commodity Future Trading Commission, ” the open hearings will air on February 6 at 10:00 Eastern day. It’s possible that the upcoming discussion in Congress has traders nervous, but ultimately variables from all over the globe combine to affect the market every day.

For anyone considering riding out the present correction, a little historical view — in this case, even a few months’ worth — could go a long way.

Disclosure: The writer holds a small posture in some cryptocurrencies. Regrettably, it is not enough for a Lambo .

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50 Cent realizes hes a Bitcoin millionaire thanks to sales of a 2014 album

Call him the ultimate hodler. After being one of the first musicians to accept Bitcoin all the way back in 2014, Rapper 50 Cent( a.k.a. Curtis Jackson) appears to have accumulated a small fortune in the volatile digital currency.

As TMZ first reported, and the man himself seems to have confirmed, 50 Cent left his Bitcoin sales untouched until rediscovering them some time lately. At the time, he reportedly raked in around 700 bitcoins in album sales for his fifth album, Animal Ambition, which launched in June 2014. TechCrunch reached out to confirm the numbers and will update when we hear back.

On the date of the album’s launching, one bitcoin was worth $657. If reports of his 700 bitcoin haul are accurate, then 50 made around $460,000 in sales at the time — not bad.

Today, that same sum of bitcoin is worth $7,770, 000.

50 appeared to confirm the news in an Instagram caption: “Not Bad for a kid from South Side, I’m so proud of me, ” followed by the comment “I’m a keep it real I forgot I did that shit. Lol.” A later Instagram post depicted bitcoin imagery with the caption “all moneys is good fund over here.”

In 2015, 50 filed for Chapter 11 bankruptcy and restructured his finances, agreeing to pay off $23 million in debt with a five-year plan. Last year, he reportedly finished paying off the $23 million early after receiving some fund in a settlement. Back in 2011, the rapper debuted a decide of headphones marketed with his personal brand and became the CEO of his own audio company, SMS Audio.

50 may have stumbled onto his crypto-millions, but that doesn’t diminish his early vision to support the then still reasonably obscure digital currency. Still, cryptocurrency fortunes can change at a moment’s notification. We’d be curious to know if he plans to cash out or live that #hodler life.

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Financial technology startups emerged as serious challengers to financial services in 2017

dYdX is a decentralized protocol for cryptocurrency derivatives

While some fiscal derivatives like futures trading are slowly coming to Bitcoin, we’re still a long time away from these financial products being widely available for the entire cryptocurrency asset class.

So dydX is constructing a decentralized protocol for derivatives, built on the Ethereum blockchain and the 0x protocol. The protocol lets you take out peer-to-peer short sells, long positions and options on any ERC2 0 token. It also provides the ability for traders to make fully-collateralized loans, which are used to to money short sellers.

As a refresher, a decentralized protocol means that no single entity controls the process. No one can cancel your order, steal your funds or rip you off as long as the smart contracts powering the protocol are securely written and properly vetted. There are already a few examples of decentralized exchanges like EtherDelta, where you can exchanges crypto assets peer-to-peer. But most of these platforms restriction you to exchanging one token for another, which is why dYdX’s focus on more complicated financial positions is unique.

When the platform launches in the spring there will be a decentralized open protocol that anyone can access, as well as a centralized relay built by dYdX that acts as a user interface to the protocol.

The UI will look like a traditional trading site but will never take control of user funds, and dYdX will charge a small fee on all trades that use their interface. Of course anyone else can also build private or public interfaces to interact with the dYdX protocol for free. Order volumes will be off chain with on-chain settlements, which allow for faster trading, especially during times of network congestion.

At first you’ll only be able to trade with ERC2 0 tokens( and Ethereum itself) but technologies like cross-chain atomic swaps may enable trading of non-Ethereum-based tokens in the future like Bitcoin.

dYdX was founded by Antonio Juliano, a former software engineer at Coinbase and Uber. The startup has raised a seed round led by Andreessen Horowitz and Polychain Capital, with participation from Coinbase founders Fred Ehrsam and Brian Armstrong, Elad Gil and others.

Juliano schemes on using the funding to build out a team of engineers( it’s currently a one-man store) and undergo extensive third-party security audits on the protocol before launching. As explained earlier the only thing that could bring down a decentralized protocol is flaws in its code, building crypto security audits very important for any serious decentralized protocol.

Both the decentralized protocol and centralized relay are expected to launch around April, with the independent security audits being the biggest roadblock before launch.

You can check out dYdX’s white paper here.

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Coinbase may have given away its own Bitcoin Cash surprise

On Tuesday, when Bitcoin Cash hit Coinbase, the popular user-friendly U.S.-based exchange, cryptocurrency’s reputation as the financial wild west was on full display.

While anyone following along was well aware that Coinbase planned to add Bitcoin Cash, the currency created in August’s Bitcoin hard fork, things still got weird immediately. After some suspicious pre-launch climbing, Bitcoin Cash’s Coinbase launch immediately assured prices soar to virtually three times those listed on other exchanges.

That “significant volatility” resulted Coinbase to freeze transactions for its newest asset, creating plenty of disarray in the process. Just a few hours later, the company disclosed that the chaos had prompted an insider trading investigation, a surprising concession after some in the cryptocurrency world cried foul( to be fair, they are often screaming foul ).

While it’s not yet wholly clear “whats going on”, many digital currency enthusiasts have pointed to a Reddit thread from three days ago titled “ATTN: Bitcoin Cash added to Coinbase API( EXTREMELY BULLISH )” that claims to have spotted evidence of Bitcoin Cash’s addition on a Coinbase API key permissions screen.

Given its broad disinterest in regulatory norms and preponderance of first-time investors, doctored screenshots trying to nudge costs one way or another are fairly common within the cryptocurrency community. Still, many Reddit users appeared to give this particular thread enough credence to check it out for themselves.( Regrettably, as Bitcoin Cash is now live, we weren’t able to verify the listing’s early appearance in the API .)

Again, Coinbase users knew that Bitcoin Cash was coming by January 1, 2018 — the deadline Coinbase devoted itself in August — but most users assumed that the new coin would be withdrawal-only, letting Coinbase users who stored Bitcoin on the exchange at the time of the fork get their trapped Bitcoin Cash out of the platform. As Coinbase stated in its August 3 blog post 😛 TAGEND

We are planning to have support for bitcoin cash by January 1, 2018, assuming no additional risks emerge during that time.

Once supported, customers will be able to withdraw bitcoin cash. We’ll make a determination at a later date about adding trading supporting. In the meantime, customer bitcoin money will remain safely stored on Coinbase.

Reddit’s / r/ btc community took the API breadcrumb as a signal that both constricted Bitcoin Cash’s looming Coinbase timeline and has proven that Coinbase intended to add trade options for the currency — a significant sign of adoption that would surely influence the altcoin’s cost across exchanges. “If you’re a programmer you know this is a very strong sign that Bitcoin Cash will receive full integration and not only withdrawals, ” one Redditor stated in the thread’s replies.

Given its mainstream appeal and extreme ease of use relative to other exchanges, Coinbase is something of a cryptocurrency kingmaker. For any digital currency gaining Coinbase trading support, volume and prices would widely be expected to rise as the news spread. Plainly, anyone paying attention to potential Coinbase API hints or other subtle backend signals is likely doing so with the intent to cash in on such a surge.

“We can’t confirm the screenshot. But we publicly announced we would be supporting Bitcoin Cash in August, so it would be expected that Bitcoin Cash would appear on the API at some phase, ” a Coinbase spokesperson told TechCrunch in response to questions about the incident.

Whatever truly was downed, the situation is shown how Coinbase’s decision to add any cryptocurrency builds for a very delicate rollout indeed. The company plans to introduce more altcoins on its platform in the coming year, so it will have ample opportunity to learn from its bumpy, semi-surprise introduction of Bitcoin Cash on December 19.

Like many things in the digital currency world, cryptocurrency marketplace forces-out are often even stranger and more inscrutable than their traditional fiscal equivalents. There might not be one single justification for Bitcoin Cash’s controversial pop on Tuesday, but the situation serves as yet another cautionary tale of the unique chaos of cryptocurrency, a fiscal realm where the rules are being written as they’re broken.

Disclosure: The author holds a small position in some cryptocurrencies, mostly because it seemed like a fun notion back in 2013 and then she forgot about it. Regrettably, it is not enough for a Lambo .

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Facebook Messaging VP David Marcus joins Coinbase board

Coinbase is growing up fast — or at least trying to. As an badge of its current effort to accommodate the massive demand on its platform, the mainstream U.S. cryptocurrency exchange merely added Facebook Vice President of Messaging Product David Marcus to its board of directors. Coinbase announced the news in a post on Medium.

With unprecedented trading volumes and bitcoin at an astronomical all-time high, it’s a critical — and challenging — hour for Coinbase. While Facebook and Coinbase may not share a lot of obvious overlap, bringing person onto the team who has a hand in scaling software to massive proportions surely can’t hurt.

“I’ve been involved with, and fascinated by cryptocurrencies since 2012, and I’ve witnessed how Coinbase has started democratizing access to this new asset class, ” Marcus said in the Medium post. “I’m convinced that what the company is working on has the potential to materially change the well-being of people around the world, and I’m looking forward to working with Coinbase and its leadership team to help make this vision a reality.”

Beyond his experience at Facebook, Marcus served as president of PayPal from 2012 to 2014. He joined PayPal after selling his mobile payments startup Zong to the company( owned by eBay) in 2011. Marcus will maintain his role at Facebook while serving in an advisory capacity at Coinbase.

“David brings first hand knowledge of building impactful, trusted mobile-first products at scale, ” Coinbase CEO Brian Armstrong said in the announcement. “His experience will add breadth and depth to the Coinbase board and will help the leadership team as the company focuses on becoming the most popular, and safest place to buy and sell digital currencies.”

Disclosure: The writer holds a small stance in some cryptocurrencies. It’s definitely not sufficient for a Lambo .

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One bitcoin is now worth $10,000

It happened. One bitcoin is now worth $10,000.

The milestone was hit on international exchanges earlier in the day( where prices are usually a few percentage higher) and was just intersected on U.S exchanges like Coinbase and Gemini a few minutes ago.

This comes two days after bitcoin reached$ 9k, and eight days after it crossed$ 8k.

This $ 10,000 marks a bull rally basically never before seen in modern financial markets. For perspective, bitcoin is now up 1,258% over the past year, with the cumulative value of all cryptocurrencies up 2,174% to a total of $316 B. Bitcoin alone currently represents about 54% of this total marketplace cap.

BTC 1y cost graph, from coinmarketcap.com

It’s a strange time in bitcoin land. There’s never been an asset, with the exception perhaps being Tulips, that’s risen so much in such a short sum of day. So without any precedent or style to designate a “book value” to the currency , no one truly knows what to think or do.

Some say this is the nascent start of a trillion dollar the enterprises and the biggest thing to happen in technology since the internet was fabricated. Some think that bitcoin will replace gold and U.S dollars and every monetary instrument in between. Yet others say that this is the biggest speculatory bubble the world has ever seen, and that bitcoin will crash to zero tomorrow.

And of course there’s the majority of us who think something in between, or really simply don’t know what to think. It’s hard enough to predict how technology will develop, and even harder when you add the feelings attached with trying to independently value and assess a tradable, liquid asset like bitcoin.

So the question likely on your mind right now…what’s next?

No one knows. Even the most passionate cryptocurrency believers admit that we’re very likely in a bubble, and that some type of correction will happen. Of course no one knows if this will be a 20% or 2,000% correction, or if it will even happen at all. But don’t be surprised if it eventually happens on some scale.

But despite the fact most of us can’t open Twitter or turn on CNBC without hearing about bitcoin, it’s adoption is still relatively small. Many Americans still have no idea what a bitcoin is, what it does or how to purchase one. The same goes for Wall street, and even though there have been over 100 cryptocurrency-focused hedge fund opened in the last year many institutional investors still haven’t take a stake in bitcoin.

So this could just be the beginning. Or the end. Either style, this milestone is a perfect time to step back and appear just how crazy the last year has been in the world of cryptocurrencies.

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Coinbase ordered to give the IRS data on users trading more than $20,000

Most digital currencies exist in a sort of twilight nation just beyond the comprehend of federal regulators, but the U.S. tax authority is starting to get savvy to this whole bitcoin thing.

On Wednesday, a federal judge in San Francisco ruled that Coinbase must render the IRS with identifying information on users who had more than $20,000 in annual transactions on its platform between 2013 and 2015. After noticing that the number of tax returns claiming gains from virtual currency didn’t line up with the emerging popularity of digital currencies like bitcoin as an investment vehicle, the IRS asked Coinbase to hand over a broad swath of information on its users. Coinbase pushed back, and now the court has landed on a compromise that the company is calling a “partial victory.”

“Coinbase itself admits that the Narrowed Summons requests information regarding 8.9 million Coinbase transactions and 14,355 Coinbase account holders. That only 800 to 900 taxpayers reported gains related to bitcoin in each of the relevant years and that more than 14,000 Coinbase users have either bought, sold, sent or received at least $20,000 worth of bitcoin in a dedicated year been shown that many Coinbase users may not be reporting their bitcoin gains, ” the court documents read.

While cryptocurrency users who value the relative decentralization and privacy afforded by digital currencies won’t be happy, Coinbase succeeded in restriction the government’s initial request for information on all Coinbase users who attained transactions from 2013 to 2015 to the smaller subset of high-value users.

The IRS initially requested nine kinds of user data, including “complete user profiles, know-your-customer due diligence, documents regarding third-party access, transaction logs, the recording of pays processed, correspondence between Coinbase and Coinbase users, account or invoice statements and records of payments.”

Rejecting some of those requests, today the court narrowed the scope of documents that the IRS can request from Coinbase to taxpayer ID number, name, date of birth, address, transaction logs and account statements, deeming the rest of the documents “not necessary.” Again, these personal data requests will only apply to accounts that have bought, sold, sent or received more than $20,000 in any of those types of transactions between 2013 and 2015.

As the court documents specify, the narrowed IRS request “applies to far fewer, but still more than 10,000, Coinbase account holders.”

You can read the court decision in full below.

//www.scribd.com/embeds/365896015/content?start_page=1&view_mode=&access_key=key-GwLPmvQCzRZlH4AftN7s

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Japanese bitcoin exchange bitFlyer is coming to the US

Japanese cryptocurrency exchange bitFlyer announced today it’s expanding to the U.S ., with approving to operate in 42 countries starting today. This includes regulatory acceptance in New York via the state’s Department of Financial Services’ “BitLicense”, which merely five other cryptocurrency companies currently have.

For comparison, Coinbase has approval to operate in 48 states( including Washington , D.C .) and Gemini is operating in 46 states( including Washington , D.C .).

The exchange is by far the biggest in Japan, trading about $180 million worth of bitcoin per day. In words of traditional exchange volume this ranks as the 14 th largest exchange worldwide ,~ ATAGEND but when you add margin volume to the computation the exchange is actually the largest in the world in terms of total exchange volume.

Founded in 2014, bitFlyer has raised a total of $36 million in venture funding.

At launch bitFlyer’s U.S. exchange will merely support bitcoin/ USD pairs, but “plans to expand its cryptocurrencies to include altcoins such as Litecoin, Ethereum, Ethereum Classic, Bitcoin Cash and more.”

Right now the exchange merely supports deposit and withdraw via bitcoin and USD wire transfer, which means early users will likely be institutional or high net worth investors. Eventually the exchange wants to add additional forms of money inflow and outflow like ACH transfer, making it easier for the average consumer to deposit or withdraw cash.

Like most exchanges bitFlyer will have tiered verification levels. The first level asks for personal information like your name and address and email and cell phone verification, and in return you can deposit and withdraw up to $2,000 in bitcoin per day and trade up to $3,000 in bitcoin per day. The second tier asks for additional information like bank account verification and proof of identity via photo ID, and allows users to deposit and withdraw up to $50,000 in bitcoin per day and trade an limitless sum of the cryptocurrency.

With Bitcoin spiking 1,200 percentage over the past year, there’s a ton of demand to trade the cryptocurrency and not a lot of places to do it. While there are dozens of established exchanges around the world only a few operate legally in the United States, with the two main ones being Gemini and Coinbase. And even these exchanges get flack for slow customer service response times, an almost unavoidable byproduct of the insane spike in customers they are seeing.

If bitFlyer can provide a solid trading and customer service experience, there’s a lot of room for them to establish themselves in the U.S. market.

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Bitcoin is over $9,000

Well, it’s over $9,000.

Even as you recoup from attempting to explain Bitcoin to your family over the Thanksgiving dinner table, the value of the cryptocurrency is growing at an increasingly hefty pace. As of the time of this writing, the value of a single Bitcoin was above $ 9,143, climbing nearly 6 phases in the past 24 hours.

At a certain point, news of clearing these incremental price impediments are going to get old, but given the increasing speed in which Bitcoin costs are knocking through these obstacles and hitting all-time-highs, it seems relevant to chronicle the procession towards $10,000 at least.

The cryptocurrency currently has a market cap north of $152 billion.

via coinmarketcap.com

My colleague Fitz Tepper said the case for Bitcoin at $10 k was pretty strong by year’s end when it made $8,000 merely six days ago, but at this rate perhaps its more relevant to wonder how close to $15 k the cryptocurrency will get in 2017 before the rate of investment at the least cools.

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