Tag Archives: bitcoin

Bitcoin Grinds Higher Will The Golden Cross Send BTC to 6k?

Bitcoin Grinds Higher, Will The Golden Cross Send BTC to $6k?

For the past seven days Bitcoin has been slowly grinding higher and recording higher lows. The trend has clearly been ascending and current bullish price formations, plus the imminent ‘golden cross’, indicate higher moves could be on the cards.

At the time of writing BTC was trading at $5,425 according to Tradingview.com. It equaled the 2019 high of $5,450 a few hours ago and all signals are screaming ‘buy’ on the trading chart website. Market dominance for Bitcoin has also reached a two month high as it rules over the altcoins. All eyes are on the magical ‘golden cross’ which should occur today or tomorrow according to this chart.

When the 50 day moving average crosses the 200 day it is seen as a clear signal of trend reversal. There are three stages to this pattern which is the opposite of the ‘death cross’. Firstly the downtrend must bottom out indicating that selling has been depleted. In the second stage, where we are right now, the shorter moving average forms a crossover up through the larger moving average to trigger a breakout and confirmation of trend reversal. The third stage is continuation of the uptrend and higher prices.

Bitcoin resistance is currently at $5,400 with a second level at just below $5,600 where the 50 week moving average lies. Once these two are broken there is nothing stopping BTC barreling up and past $6,000. The golden cross could well be the catalyst to spark this move.

Crypto analysts are confirming this action with other signals such as a bullish pennant;

Others have looked into the volume of short positions which are very close to being liquidated should Bitcoin push any higher. This would also be bullish and, coupled with a good dose of fomo, could send BTC back to $6,000 very quickly.

Trader and technical analyst ‘Filb’ noted;

“Bitcoin continues to grind up, without sign of there being any leveraged positions being taken up which implies to me that there is aggressive spot buying in this market, which those shorting it cannot stop. This leads us to a scenario where there will be short positions heavily exposed – around 6k shorts are underwater and at risk of being liquidated.”

With others such as ‘Moon Overlord’ adding to the sentiment;

It may not all be plain sailing though as the 50 week moving average may also come into play as it did during the 2015 bear market. Some analysts foresee a bounce off this and back down to the 200 week ma which sits around $3,550.

Either way something big is about to happen with Bitcoin so buckle up and enjoy the ride!

Original article written by Luke Thompson and posted on the EthereumWorldNews.com site.

Article posted on Markethive by Jeffrey Sloe

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BTC Could Hit 98 Million Yes 98M USD in 10-20 Years Analyst Says

BTC Could Hit $98 Million (Yes… 98M USD) in 10-20 Years, Analyst Says

The crypto market has remained bullish on the last weeks, prompting a recent wave of optimism and euphoria among traders, analysts and enthusiasts in general. The 5k zone has supported the BTC, allowing the token to remain stable, reversing some indicators.

Having successfully held above 5k, analysts believe that the strength of the bearish market is losing influence and, with the halving on the horizon, many think that the cryptomarket is starting the next bull run.

Unlike the sentiment of 2017, most analysts today speak of conservative numbers. High forecasts such as Tim Draper’s or John McAfee’s are seen as exaggerated or unbelievable. Recently, however, an analyst did not hold back his mood by publishing a hyper-bullish prediction for the next few decades.

In a thread of 27 tweets, Twitter account Moon Capital explained that in approximately 10 to 20 years, BTC would become the first currency to reach a value of about 98 million dollars per unit.

BTC Could Substitute Fiat.. And Gold

The unusual prediction explains that to achieve this figure, the BTC had to maintain its traditional cyclical behavior but with the technological and financial developments typical of this industry.

This combination of circumstances could trigger the perfect scenario for BTC to become the world’s currency, replacing the global money supply. If this happens, the capitalization already increases by about 90.4 trillion dollars.

Also, investors could stop buying gold in the face of the possibility of using the BTC as a safer means. If the Bitcoin market takes 90% of the total capitalization of gold, it would account for about 6.9 trillion dollars.

This streak would give the BTC the necessary level of influence to allocate the capitalization of other financial markets such as bonds, stocks, equities, real estate and even public investments close to 5% of GDP.

Under this hyperoptimistic scenario, the BTC would gain around 294 trillion dollars in capitalization, becoming the “new global unit of account.” This price would total about 98 million dollars for each available token.

So far, it is still very early, and it is indeed impossible to predict the future, especially when it is such an optimistic scenario. Most banks are developing financial solutions based on blockchain technologies, precisely to compete against BTC, not to adopt this token.

To read the full analysis without having to sort through each tweet, here is a post containing all the Tweets. This is possible thanks to Thread Reader App

Original article written by Jose Antonio Lanz and posted on the EthereumWorldNews.com site.

Article posted on Markethive by Jeffrey Sloe

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Japan’s Largest Bank Will Issue a Proprietary Cryptocurrency This Year

Japan’s Largest Bank Will Issue a Proprietary Cryptocurrency This Year

Cryptocurrencies are here to stay. Their advantages over traditional remittances are so extensive that more and more financial institutions are accepting reality, using these technologies to evolve and adapt their products to the needs of modern society.

The most important announcement in this area happened this week when Mitsubishi UFJ said it would launch its own cryptocurrency at the end of this year.

For the Western population, this may not represent much of a hype, but just to put things in perspective, MUFJ is the fifth largest bank in the world by total assets and the most influential private bank if the Chinese institutions are excluded. Its total capitalization is approximately 2.78 trillion dollars, 300% more than the total assets of Goldman Sachs, and 169 billion more than JPMorgan Chase.

According to the Japan Times, Kanetsugu Mike, president of the bank, commented that this initiative is part of a policy of technological improvement aimed at increasing confidence, security, and efficiency in the organization:

“We aim to build an organization that is relied on and trusted globally, and represents innovation,”

After an internal test conducted in September 2018, the positive results allowed the Mitsubishi UFJ team to feel confident enough to move on to a massive implementation stage.

The use of a cryptocurrency allowed instant transfers to be carried out at almost no cost, something essential for a bank with such a high volume of transactions.

Blockchain is Slowly Becoming More Attractive to Banks

Mitsubishi UFJ is not the first bank determined to use blockchain technology. Already the IMF and the BIS have issued official pronouncements assessing the risks and benefits of issuing CBDCs.

Also, JPMorgan recently announced the development of its own token to facilitate transactions processed by its infrastructure. The development of this tech is as important as the MUFJ initiative since this bank is the sixth most important in the world, and the most influential for the “western world.”

The Bank has a strong relationship with cryptocurrencies and blockchain technology. It already uses Ripple technology to process transactions and the partnership seems to be yielding positive results.

Apparently, the cryptocurrency would simply be called “coin.” The bank did not share more details about its development.

Original article written by Jose Antonio Lanz and posted on the EthereumWorldNews.com site.

Article posted on Markethive by Jeffrey Sloe

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How Blockchain Will Transform the Hiring Process

How Blockchain Will Transform the Hiring Process.

By Chris Porteous

Blockchain has the potential to make data even more meaningful to HR professionals.

Most people have heard of the blockchain, although according to Forbes, the No.1 misconception with blockchain is that it’s the same as bitcoin. Being aware of the differences between the two is essential in understanding how blockchain can revolutionize the hiring process. Furthermore, if blockchain is adapted to work with current HR systems, it could mean a shift in the paradigm of massive proportions. We’re not looking only at the process here, but the data that facilitates that process. Blockchain has the potential to make that data even more meaningful to HR professionals as well as offer new insight into their potential hires than existing systems could.

The blockchain as a concept

So if bitcoin and blockchain aren’t interchangeable terms, then what is what? CNN Money defines bitcoin as a cryptocurrency that was initially created in 2009, as a means of storing value and transferring funds as a digital medium that is not controlled by any financial institution. Blockchain is the technology that made the existence of bitcoin possible, but there are so many more applications for it than merely a store of value in digital coins. Investopedia informs us that a blockchain is a distributed ledger, where all people who use the register have access to the contents of it, and those contents are declared through consensus of the network that the ledger is held on. In simple terms, a blockchain is a series of records, and everyone who has an interest in that blockchain has access to the entire blockchain. For us to determine the contents of that blockchain, we consult each member of the chain that holds a copy and the version of the blockchain that is in the majority wins out.

Blockchain and security

There’s something that makes the blockchain ideal for a situation where a company needs to take a potential employee’s word based on trust. Security within a blockchain is directly proportional to the number of users on that blockchain. This means that as more companies adopt the blockchain, the more secure the record kept on that blockchain will be.

An excellent example of this from an HR perspective is the submission of resumes using a site like TrustED. These documents are almost wholly taken on trust, except for references which the application usually gives to the employer. As these sites have shown, in the case of a blockchain, there would be no need for a resume since jobs that the applicant has done can be tracked and linked to the applicant’s account immediately. Additionally, previous employers could be reached directly to discuss the employee. And all of this data would be secured as more companies join the network. It would be a more reliable, but much more secure version of headhunting on LinkedIn.

Automated taxation

Blockchain was designed to be a method of securing data, but the evolution of the system has led to the development of a feature known as smart contracts. By setting a blockchain up that handles transactions automatically using these smart contracts, payment of salaries would be simple and wouldn’t involve any third-party. Additionally, a smart contract could be tied to the salary of each employee to ensure that each salary is removed before payment is made.

As Pricewaterhouse Coopers notes, many people in the system today wonder if the taxation system at present is capable of dealing with the evolved form of employment as exists today. This automated taxation system could be beneficial to both HR managers (who no longer have to calculate and pay taxation) as well as employees (who don’t have to worry about filing tax returns as all the information already exists on the blockchain).

Routine tasks and simplification

Payroll generation is another holdover from a bygone era, where the movement of money was linked to the flow of paper. Having a blockchain makes the need for keeping this paper-based system alive non-existent. Because blockchain can automatically log payments and instantaneously transfer funds, the need for updating a paper sheet with payment details and deductions (both of which could occur automatically as mentioned before) seems an added complication. Properly coded smart contracts would automatically execute these payments as they need to be done and inform both parties of the success of those payments. If there is a breach of that contract, all the data is readily available on the blockchain to allow for speedy litigation if necessary.

A disruptive technology

While Bitcoin might have had its way in the sun and is now moving like a rock rolling downhill, it did manage to show one thing?—?the usefulness and possibilities of a blockchain. Intelligent developers have already cottoned on the potential of these blockchains, and quite a few companies have become involved in research and development of the technology. Hackernoon even has a list of the banks that have started utilizing blockchain in their business, showing how disruptive this technology has been. The blockchain provides a better way of doing things than we have been invested in up to now. The smart thing would be to explore how it can change your business while everyone else is still in the dark about it.

Original article written by Chris Porteous and posted on the medium.com site.

Article posted on Markethive by Jeffrey Sloe

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Bitcoin BTC Could Skyrocket To 84k In The Coming Weeks Analyst Suggests

Bitcoin (BTC) Could Skyrocket To $8.4k In The Coming Weeks, Analyst Suggests

Last week was absolutely monumental for the cryptocurrency market. As this outlet covered extensively, Bitcoin rapidly surmounted key resistance levels on the back of a record-setting influx of buying pressure, with BTC finding itself above $5,000 for the first time since November.

As the crypto asset has stabilized since then, discovering a consolidation range at and around $5,100, analysts have done their best to gauge what comes next for BTC. And according to prominent trader Crypto Thies, a move drastically higher could very well be in store for the leading digital asset.

Thies recently took to Twitter to lay out his reasoning for this call. He explains that as it stands, Bitcoin could find support at $4,300, where it initially broke out, and $4,700, where the asset’s 200-day moving average currently sits. On the other hand, BTC will have trouble breaking past $5,500, $5,700 (the de-facto floor late last year), $6,600, and $8,400 (a top in a mid-2018 bear market rally), as these levels will act as resistances.

But, the trader makes it clear that in the coming weeks, BTC could start to test those resistances in an act of breaking out.

Thies writes that while he is confident that BTC will eventually return to $4,700, he expects for a Bitcoin to head higher in the coming weeks. He looks to the fact that the Bollinger Bands (BB), a measure used to depict trading ranges, have begun to squeeze on the one-week chart, along with BTC’s two-week candle breaking above its middle BB could suggest a move to the high BB, currently sitting at $8,400, in the near future.

Thies’ pseudo-price prediction comes in lower than some, but higher than most, interestingly enough.

Brian Kelly, for example, recently took to CNBC to claim that this ongoing move is likely to bring Bitcoin to $6,000 at the max. Per previous reports, Kelly claims that “high net-worth individuals, family offices, are starting to take a serious interest” in Bitcoin, all as custody solutions have propped up, volumes have spiked, and short sellers looking to cover their rear ends — presenting a strong case for a 20% rally from here.

Filb Filb, too, has kept his bullishness constricted to $6,000 for now. The analyst recently drew attention to two charts which showed similarities both in the structure and timing of their respective moves, specifically in a bid to show that Bitcoin could see a massive wick to the upside. If the move plays out as Filb expects, BTC could rally to $6,000 in the coming weeks.

On the other hand, others have been way more bullish than the aforementioned two. Fundstrat’s in-house Bitcoin optimist, Tom Lee, recently told Bloomberg that he adamantly believes that the cryptocurrency market can now be classified as a bull market, looking to the 200-day moving average for BTC to back his point. He added that a fair value for the asset is currently $14,000.

Is Bitcoin In A Bull Market?

No matter where BTC heads in the short-term, Thies’ Market God indicator, a proprietary measure created to predict trends both in the short- and long-term, has signaled that a bull run could be on the horizon. As reported by Ethereum World News previously, the indicator, which somewhat called the 2018 top, recently issued a “buy” signal for the first time in over two years.

Original article written by Nick Chong and posted on the EthereumWorldNews.com site.

Article posted on Markethive by Jeffrey Sloe

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Crypto Mixed Elon Musk Endorses Bitcoin

Crypto Mixed; Elon Musk Endorses Bitcoin

Investing.com Feb 19, 2019 11:24PM ET


Image © Reuters

Investing.com – Prices of major digital coins were mixed in Asia on Wednesday without a directional mover, but Tesla (NASDAQ:TSLA) CEO Elon Musk saying Bitcoin is “brilliant” and “paper money is going away” created some buzz in the crypto space.

On Tuesday in an interview on advisory services firm ARK Invest’s podcast, Musk said “Bitcoin’s structure is quite brilliant” and digital currency is “a far better way to transfer value than pieces of paper.”

But he also noted that “one of the downsides of crypto is that computationally it is quite energy intensive.”

Musk tweeted about Bitcoin last year, prompting many to wonder if his electric car company would have crypto-related plans. But Musk clarified that it would not be a good use of the resources of his company to get into this area.

The crypto space remained fairly quiet on Wednesday morning. Bitcoin was only up 0.79% to $3,916.9 by 11:02 PM ET (04:02?GMT).

Ethereum slid 2.47% to $142.85, while XRP slightly added 0.82% to $0.32542 and Litecoin gained 0.38% to $47.525.

The market capitalization of all cryptocurrencies rose further to $133.4 billion from $120 billion last Friday.

Meanwhile, JPMorgan’s launch of its own digital token JPM coin could change the banks’ approach to blockchain and crypto, according to CNN. Param Vir Singh, a professor of business technologies at Carnegie Mellon University, told CNN that “more banks will take [crypto] seriously” as JPMorgan’s move could force other banks to follow suit.

Last week, the news of JPM coin shook the crypto industry as the investment bank’s CEO Jamie Dimon once called Bitcoin a “fraud”. The move signified a shift in the U.K. bank’s approach to crypto.

Article written by and posted on the Investing.com website.

Article reposted on Markethive by Jeffrey Sloe

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Multi-Billion-Dollar Store Domino’s Pizza Now Accepts Bitcoin

Multi-Billion-Dollar Store, Domino’s Pizza Now Accepts Bitcoin

by Dalmas Ngetich – February 14, 2019

Well, Bitcoin hodling just got harder, you can now buy your favorite pizza from Domino’s Pizza via the Lightning Network while enjoying negligible fees. What’s more? Transaction settles in less than 30 seconds—which is near instantaneous if you ask me—and delivery time is within 30 minutes from anywhere in the US.

While there are no details on whether Bitcoins are accepted in all of their 13,811 stores spread out across the globe including China, there is no doubt that Bitcoin, Lightning Network and general adoption is gaining traction.

For starters, Domino’s Pizza is a public company with shares traded at the world’s second largest stock operator by market cap, NYSE as DPZ. The company revenue by financial year 2017 stood at $2.47 billion translating to $214.68 million in profits. Domino’s Pizza now joins Paragliding of Switzerland, Nanotorch, Spendl, Vape Store and Pollo Feed in a long list of merchants experimenting with the future of money.

Why Lightning Network

Although there is furore on how and why the Lightning Network (LN) operates, it is the next thing close to Bitcoin scaling. On their homepage, LN proponents say the off-chain platform guarantees instant transactions while simultaneously scaling the notoriously hard to “scale” public blockchain.

Elizabeth Stark’s developed solution bring forth instant payments without a worry of block confirmation times because “security is enforced by blockchain smart-contracts without creating an on-blockchain transaction for individual payments.”

Besides, the network is designed for speed, eliminating bottlenecks and can as a result process millions if not billions of transactions per second “blowing away legacy payment rails by many orders of magnitude.” Speed and scalability have a causative effect, slashing down costs and allowing one to pay for Pizza without worrying about high fees.

LN Capacity is Swelling

Through these properties, it is not hard to see why the LN has grown by leaps and bounds even while in Beta.

Statistics indicate that the network’s nodes are up 15.23 percent to 6,242 boosting the number of opened channels to 25,841—up 30.9 percent. Network’s capacity is up 36 percent to 673.85 BTC meaning LN can process $2.4 million worth of transactions.

These possibilities alone present an opportunity for one of the many investors in Lightning Labs including Jack Dorsey. The entrepreneur is behind Twitter and Square-both are multi-billion business tradable in leading American Exchange. In a Stephan Livera hosted podcast, he revealed that Cash App will soon integrate LN:

“We would love to make [Bitcoin] as fast and efficient and transactional as possible, and that includes looking at our seller base and register. It’s not an ‘if;’ it’s more of a ‘when’ – how do we make sure that we’re getting the speed that we need and the efficiency?”

Original article written by Dalmas Ngetich and posted on the EthereumWorldNews.com site.

Article posted on Markethive by Jeffrey Sloe

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Nasdaq Invest in Blockchain Technology Pushing For Crypto And Blockchain Adoption

Nasdaq Invest in Blockchain Technology, Pushing For Crypto And Blockchain Adoption

Nasdaq has decided to take a step forward in the push for blockchain technologies and adoption of cryptocurrencies, investing a substantial amount of money recently in the financing of a startup that develops Enterprise blockchain solutions.

According to an official press release, Symbiont successfully closed a $20m Series B funding round. Nasdaq Ventures led the round which also included investors such as Mike Novogratz’s Galaxy Digital, Citi and Raptor Group among others.

The money will be used to promote the growth of Assembly, a blockchain platform created by the company with support for Smart contracts and tokenization solutions.

Symbiont CEO and Co-founder Mark Smith expressed his enthusiasm after the success of having obtained the support of such important sponsors:

“Closing this round of funding enables us to accelerate investments in our platform and team … Leveraging our financial markets and blockchain technology experience, our anchor partners like Vanguard, Lewis Ranieri, and Nasdaq will benefit from developing new distributed applications on Assembly, our enterprise blockchain and smart contract platform. Assembly provides the opportunity for new participants to enter the digital asset market and offers existing participants a superior infrastructure on which to build the future of financial markets.”

Nasdaq also expressed its optimism and confidence in Symbiont’s success. For Gary Offner, Head of Nasdaq Ventures, products like Assembly can contribute to the economic growth of many companies on a global scale:

“We are committed to discovering and investing in innovative technologies to help build our future market infrastructure used by more than 100 marketplaces around the world … Our investment will also include the integration of Symbiont’s enterprise blockchain and smart contract platform into the Nasdaq Financial Framework. We are pleased to support this important, growing area for creating unique institutional applications of blockchain technology.”

Despite the bearish behavior of the crypto market in 2018 and the pessimism of many, Adena Friedman, President, and CEO of Nasdaq remains optimistic about the impact of the cryptocurrencies in the future. She is also determined to launch Bitcoin Futures and maybe an exchange if conditions are favorable. She recently addressed her followers on LinkedIn commenting on her impressions:

“It is difficult to ignore the huge amount that investors, including some of the most sophisticated global investors, have poured into digital currencies in recent years. The invention itself is a tremendous demonstration of genius and creativity, and it deserves an opportunity to find a sustainable future in our economy … At Nasdaq, we are working to help cryptocurrencies gain investors’ trust by offering our technology for trade matching, clearing, and trade integrity to start-up exchanges. We have also invested in ErisX, an institutional marketplace for cryptocurrency spot and futures. While this year will be another proving ground for cryptocurrencies, we believe digital currencies will have a role in the future. The extent of its impact will depend on the evolution of regulation and broader institutional adoption.

Original article written by Jose Antonio Lanz and posted on the EthereumWorldNews.com site.

Article posted on Markethive by Jeffrey Sloe

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Blockchain Investor Claims Bitcoin BTC Will Plunge To 0

Blockchain Investor Claims Bitcoin (BTC) Will Plunge To $0

Economists Bash Bitcoin In The Swiss Alps

Bashing Bitcoin (BTC) has apparently become a popular trend at Davos’ recent World Economic Forum event. More specifically, the cryptocurrency has become a punching bag. Just yesterday, per previous reports from Ethereum World News, Huw Van Steenis, the senior advisor to Bank of England’s governor, Mark Carney, bashed this nascent asset class.

Speaking to Bloomberg in a candid interview, Steenis, who purportedly is compiling a report about the future of finance, surprisingly claimed that cryptocurrencies, like Bitcoin aren’t on his radar, or list of concerns for that matter. The former Morgan Stanley economist then remarked that blockchain-based assets “fail” the basic tests that financial services are de-facto run through. Steenis explained that BTC, along with other digital assets, is slow, fail to hold their value over time, and aren’t a viable, bonafide Medium of Exchange (MoE).

Tech Investor Claims BTC Will Fall To $0

Just one day later, BTC fell victim to another attack, as a technology investor and entrepreneur took to a CNBC-hosted panel to bash the blockchain-based digital asset. According to CNBC post-mortem on the manner, Jeff Schumacher, the founder of BCG Digital Ventures, a corporate investment and tech incubator group, claimed that the flagship cryptocurrency could capitulate to a value of zilch eventually.

Speaking to a crowd of economists, global leaders, notable investors, and corporate C-suiters, Schumacher explained that he “believes it will go to zero,” adding that he thinks that it (or the technology underlying Bitcoin) is a “great technology.” However, the BCG founder made it clear that he doesn’t think that blockchain technologies should be applied to currencies, accentuating that its underlying value isn’t based on anything. Like many traditionalists with a vested interest in the centralized system, Schumacher fails to see the value of a decentralized, immutable, cross-border, rapid, uncensorable current that transcends the boundaries imposed by financial incumbents.

Instead of lauding blockchain technologies for their potential revolutionary use cases in finance, Schumacher instead touched on the innovation’s ability to facilitate “open decentralized ecosystems,” which would be the global protocols and infrastructure that businesses could run on.

Yet, some weren’t in agreement with Schumacher’s inflammatory quip. Glenn Hutchins, the chairman of Virtu-affiliated North Island, a financial technology services company, claimed that BTC will likely grow to have a notable role as a Store of Value (SoV). Hutchins noted that BTC’s role “in the system” could be as pseudo-gold in a digital economy, rife with arrays of tokens that serve every use case imaginable.

Hutchins isn’t the only notable investor to think of Bitcoin as a digital semblance of the orange-esque precious metal. As reported by Ethereum World News multiple times previously, a number of pundits have overtly claimed that BTC’s foremost use case is as digital gold.

Alistair Milne, the CIO of Digital Currency Fund, claimed that Bitcoin has seen its Store of Value (SoV) proposition become more apparent. More specifically, he noted that Bitcoin’s investors are now “very aware that BTC is like trading gold with 100x leverage,” along with the fact that the flagship cryptocurrency’s inflation rate will be lower than that of the precious metal. And, as “no one appears to doubt the usefulness of gold,”

The Winklevoss Twins, the co-founders of the Gemini Exchange, recently claimed that Bitcoin “better at being gold than gold itself.” Twin Tyler noted that as this industry continues to develop, BTC will continue eating up bits of gold’s market capitalization, until the newfangled cryptocurrency passes its (arguably worse) physical counterpart.

Lou Kerner has also recently chimed in on the matter. Kerner, the founding partner at CryptoOracle, divulged that the cryptocurrency’s portability, ease-of-use, divisibility, and scarcity, make it a viable alternative to precious metals, and will allow BTC to eventually surmount its quintuple-digit cell.

Original article written by Nick Chong and posted on the EthereumWorldNews.com site.

Article posted on Markethive by Jeffrey Sloe

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Blockchain and Cryptocurrency Litigation: What to Expect in 2019

Blockchain and Cryptocurrency Litigation: What to Expect in 2019


Image Source

2018 was an eventful year in general when it comes to blockchains and cryptocurrencies. Digital currencies such as Bitcoin and Ethereum suffered huge trading losses last year with the former nearing towards the $3,000 mark by the end of the year. Another notable trend from last year is the rise of blockchain and cryptocurrency related lawsuits, triggering SEC chairman Jay Clayton to announce a crackdown on the industry. This is why different industries have called 2019 the make or break year for these technologies. Now what is in store for laws and litigation regarding digital currencies and blockchains then? Let us find out.

Defining Cryptocurrencies as Securities

Over the years, there seemed to be a never-ending debate as to how cryptocurrencies are defined whether as a currency or an investment. These arguments may be nearing an end this year. A landmark federal court ruling has declared that cryptocurrencies, particularly those under initial coin offerings (ICO), may be subject to securities laws. In United States vs. Zaslaviskiy, the grand jury ruled that the cryptocurrency purchases the defendant has persuaded its investors to buy under his companies are considered as investment contracts. This means individuals and companies who purchased cryptocurrencies as funding for a business or enterprise can count it as an investment and is protected by the law. It also legally solidifies the SEC’s stand that the current securities regulations are sufficient enough to cover cryptocurrencies, blockchains and possibly other fintech investments in the future. Finally, this ruling can also lead to a clearer definition of what these technologies are in the eyes of the law.

Pushing for More Regulations

Despite the federal court ruling and SEC’s stand on cryptocurrency investments, the pressure for tougher regulations is still on for 2019. With the trading rate for cryptocurrencies remaining on the lower end and securities lawsuits regarding ICOs increasing, both the government and cryptocurrency institutions need to evolve. Creating a legal framework or adding supporting regulations specific to these technologies, like what France, South Korea and China did, can help with institutionalizing digital assets and similar investments. New laws that protect cryptocurrency and blockchain owners, traders and investors will surely encourage other institutions to adapt these technologies and bring it to more people.

Smart Contracts

Another factor that cryptocurrency and blockchain litigators are looking into this year are smart contracts. This is a type of blockchain technology that converts contracts into a computer code and is stored and managed by a network. It basically simplifies transactions and deals with money, property or any type of asset as it self-executes contract terms, liabilities and penalties.

While some lawyers see smart contracts as a threat, it can be a useful tool for them especially when it comes to documentation and paper trails. The transparent and self-executory nature of these contracts will help them in the event that these transactions are challenged in court.

There are a lot of exciting legal developments to look forward to as more institutions open up to the possibility of adapting cryptocurrencies and blockchain technology. More questions and situations will will eventually come up, but the industry remains positive about the growth of these technologies and the new rules and regulations that will come with it.

In need of expert legal advice? Contact us at Hogan Injury.

None of the content on Hoganinjury.com is legal advice nor is it a replacement for advice from a certified lawyer. Please consult a legal professional for further information.

Original article posted on the Hogan Injury Website

Syndicated article, by permission, posted on Markethive, by Jeffrey Sloe

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