ICOs Raked in $13 Billion Despite 90% ETH Price Drop, New Research Finds

ICOs made almost $13 billion in profits from their token sales despite the 2018 cryptocurrency bear market, new research from BitMEX reveals.


BitMEX: ICO Issuers ‘Gave Themselves $24 Billion’

Published January 16, the third instalment of the trading platform’s dedicated series on ICO statistics also suggests ICO teams “gave to themselves” tokens worth over $24 billion at the time of issuance.

“Today this figure has fallen to around US$5 billion, with the difference primarily being caused by a fall in the market value of the tokens, alongside ($1.5 billion) of transfers away from team address clusters (Possibly disposals),” BitMEX summarizes.

In total, combined with findings from the second installment in October 2018, a figure of $12.8 billion is now circulating as the total profit wrought from the ICO craze of the past two years.

While some teams have since launched products and demonstrated application of funds, many have yet to do so, staying dormant since their token sales.

As Bitcoinist reported, ICOs that raised hundreds of millions of dollars each faced a highly volatile market over the last twelve months with over 70 percent now underwater.

Others have since fallen foul of the law, with Paragon and Airfox both required to pay back huge sums to investors along with fines for flouting US securities regulations.

2020 ICO Renaissance?

Responding to the BitMEX findings, Blockstream CEO and Hashcash inventor Adam Back thus appeared unsurprised.

“[W]hen people start startups, they take usually a paycut (versus a) big (company), so modest pay, relatively,” he commented on Twitter.

[A]and take illiquid stock, that is not tradeable (sic) until they achieve technology and market success. [A]m I reading it right that ICOs just dipped into investor capital (and) gave it to themselves?

BitMEX CEO Arthur Hayes was also palpably nonplussed.

“When you create poo poo out of thin air, gravity is a bitch,” he tweeted.

Ethereum (ETH) 00, the major network used to issue ICO tokens, currently trades around $120, equating to a drop of over 90 percent versus its all-time highs.

Earlier this month, Hayes suggested that both ETH and the ICO market could see a resurgence within the next eighteen months.

What do you think about BitMEX’s new findings? Let us know in the comments below!


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Source: Blockchain

XRP Overtakes Ethereum Despite Looming ‘Constantinople’ Upgrade

Ethereum constantinople

XRP has reclaimed the position of the second largest cryptocurrency by market cap from ETH just days before Ethereum’s ‘Constantinople’ hard-fork upgrade. 


Pre-Fork Drop

On January 16th, Ethereum is scheduled to undergo a network-wide system update called ‘Constantinople’. Among other things, the implementation of the upgrade will reduce the block reward from 3 ETH/block to 2 ETH/block.

Days before the event, however, Ethereum’s (ETH) 00 price experienced a notable decline.

In a matter of minutes, ETH price dropped by about 8 percent.

The movement caused ETH to fall behind Ripple (XRP), which reclaimed its spot as the second largest cryptocurrency by means of market capitalization, less than two weeks after Ethereum regained the number two spot from XRP.

In fact, the two have been neck and neck over the past few months in cryptocurrency market cap rankings.

XRP 00 also experienced a decrease around the same time, but the cryptocurrency experienced a relatively smaller loss of 2.5 percent against the USD.

Ethereum’s ‘Constantinople’

Constantinople is a system upgrade scheduled for implementation at block 7,080,000. Given the current average block time, the event should take place on January 16th, 2019.

One of the most discussed changes that the upgrade will cause is the reduction of block reward from the current 3 ETH/block to 2 ETH/block. This is also referred to as the “thirdening.” It’s the second time Ethereum’s block rewards have been reduced.

The first one was called “Byzantium” and it took place on October 16th, 2017. Back then, ETH surged by about 6 percent during the day, followed by the cryptocurrency’s late 2017 rally to an all-time high of about $1,400.

In total, the upgrade will integrate 5 Ethereum Improvement Proposals (EIPs), which are geared toward tackling cost, speed, functionality, and mining issues.

Support For ‘Constantinople’

Several cryptocurrency exchanges have announced their support for the upcoming network upgrade.

Binance, HitBTC, Huobi, Bittrex, OKEx, CEX.IO, Cryptopia, and Poloniex, have all announced that they will support the Constantinople hard-fork.

Most of them advise users to give sufficient time for their deposits to be processed prior to the upgrade.

At the time of writing this, Gemini, Coinbase, and Bitfinex, haven’t yet declared their support for the upgrade.

What do you think about Constantinople and its impact on Ethereum? Don’t hesitate to let us know in the comments below!


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Source: Blockchain

Our Man At CES 2019 – Part One: Finding Crypto

CES

Where better to check out all the latest crypto-tech than the Consumer Electronics Show in Las Vegas. Actually, as it turned out, finding crypto at CES wasn’t as easy as first expected.


Technology Unveiled at CES 2019

The Sunday before the show hosts a media event called CES Unveiled, featuring the Best of Innovation awards.

After three hours feigning interested in a whole range of tech startups latest offerings, I was beginning to lose hope. The closest I’d come to anything blockchain related was a point-of-sale device, which the exhibitor said: “could develop to include cryptocurrency payments in the future.”

CES

Just as the event was finishing I stumbled across the Archos booth, where they were showing a new hardware wallet, the Safe-T touch. I arranged to meet them again during the show proper, with the possibility that they might be able to source a review model.

On exiting the hall I was sequestered by a youth holding a sign saying CoinAgenda. Apparently there was a crypto-afterparty a short bus ride away. A quick straw poll of the guests suggested that nobody really knew what the party had to do with crypto. But there was an open bar, so nobody seemed overly concerned.

Conference Tracks

Monday was spent exploring Vegas, but I did chance upon this Bitcoin ATM in a Love Boutique.

Then Tuesday saw a full day of hosted panel-type discussions in the ‘Digital Money’ conference track. Access to these conference tracks required the purchase of an additional pass over and above the registration for the main event. Whilst I hadn’t found much to report from the Unveiled show, there was a rich vein of cryptocurrency and blockchain, playing a prominent part in events.

A diverse range of speakers and panel guests included Brock Pierce, Tim Draper, Michael Terpin of Transform group, and the Prince of the Netherlands. Sessions covered topics such as security, blockchain in the entertainment industry, regulation, and decentralization.

Last on the schedule was ‘The Second Annual Token Slugfest’, in which six companies gave four-minute pitches for their ICOs. This concluded with a clap-o-meter type judging of the pitches, and the crowning of an eventual winner.

Having spent the day bathed in the warm fuzzy glow of all things crypto, my spirits were rejuvenated. I planned to hit the show floor the next day to continue my search. Actually the (many) show floors. I hadn’t realized quite how big this CES thing was.


Images courtesy of Shutterstock, Bitcoinist

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Source: Blockchain

SEC Report: Examining Cryptocurrency a Priority in 2019

SEC EtherDelta securities

The Office of Compliance Inspections and Examinations (OCIE) of the United States Securities and Exchange Commission (SEC) listed the cryptocurrency market as one of the six focus points of its compliance monitoring activities for 2019.


Spotlight on the Cryptocurrency Market

According to a report titled “2019 Examination Priorities,” OCIE says it plans to shine the spotlight on the goings-on in the cryptocurrency. An excerpt from the report relating to cryptocurrencies reads:

Given the significant growth and risks presented in this [the crypto] market, OCIE will continue to monitor the offer and sale, trading, and management of digital assets, and where the products are securities, examine for regulatory compliance. In particular, through high-level inquiries, OCIE will take steps to identify market participants offering, selling, trading, and managing these products or considering or actively seeking to offer these products and then assess the extent of their activities.

To this end, the OCIE plans to examine the activities of firms operating in the digital asset market. This examination will cover sale, trading, as well as the management of cryptocurrency assets. The OCIE also plans to pay particular attention to cryptos deemed to be securities.

Commenting on the approach for 2019, Pete Driscoll, Director of the OCIE, said:

OCIE is steadfast in its commitment to protect investors, ensure market integrity and support responsible capital formation through risk-focused strategies that improve compliance, prevent fraud, monitor risk, and inform policy.

Identifying the virtual currency market as a priority isn’t a new development for the OCIE. Back in 2018, the emerging market also formed part of the OCIE’s agenda. However, the mandate for 2019 appears to be an extension of the goal for last year, which focused primarily on risk and security.

Too Much Regulation?

The expansion of OCIE’s focus on digital assets comes at a time when U.S. Federal Lawmakers are trying to establish a separate regulatory ambit for cryptocurrencies. Some commentators feel the SEC is over-regulating the industry, slowing the rate of innovation in the country with regard to digital assets.

In December 2018, Reuters reported that members of the GOP were frustrated with the leadership of the SEC over their stance on most ICOs being securities. This new report from the OCIE expanding its examination focus might exacerbate such concerns. Meanwhile, for the SEC, the Commission continues to state that strict laws create a safer marketplace.

What do you think about the SEC’s focus on cryptocurrency in 2019? Let us know your thoughts in the comments below!


Image courtesy of SEC.gov, Shutterstock

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Source: Blockchain

BIS Reports 70% of Central Banks Are Studying Cryptocurrencies

BIS

A new report published by the Bank of International Settlements (BIS) shows that the majority of central banks are studying central bank digital currencies (CBDC). However, most of them are unlikely to issue any type of digital currency in the near future. 


CBDC ‘Unlikely’ in The Short Term

BIS published the results of a new survey on central banks studying the technology behind Bitcoin and cryptocurrencies. A total of 63 banks have responded. They represent jurisdictions, which cover about 80 percent of the population of the world and more than 90 percent of its entire economic output.

The intention of the survey was to find out whether central banks currently are developing their own central bank digital currencies (CBDC) and how likely they are to issue them.

Of the 63 banks, 70 percent said that they are either currently working or will soon be engaged in work on CBDC.

However, this includes conducting conceptual research on the matter, sharing studies and views of developing a “common understanding of this new field of study.” According to the report, half of the respondents have moved to a more “hands-on” proof-of-concept activities in order to test new technologies.

The report reveals that 85 percent of the central banks are unlikely or very unlikely to issue any type of CBDC in the short term (1-3 years).

Back and Forth

In September, Bitcoinist reported that the European Central Bank (ECB) has no intentions of issuing a central bank digital currency.

ECB

It’s also arguable whether a central bank issued digital currency will even fit the mold of decentralized cryptocurrencies. In December, a couple of researches at the St. Louis Fed, outlined that:

Once you add a central bank and remove the “permissionless” network—with nodes that can leave and join as they wish, there isn’t much left to the cryptocurrency you started with.

Nevertheless, some central banks remain open to the idea of CBDC. The BIS report outlines that the Central Bank of Uruguay has completed a pilot programme on a general purpose CBDC.

At the same time, the governor of UK’s central bank Mark Carney has previously said that the Bank of England is open to the idea of a central bank issued digital currency.

What do you think of CBDCs? Don’t hesitate to let us know in the comments below!


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Source: Blockchain

Fred Wilson: 2019 Will Find the Bottom and ‘Slowly’ Enter a Bull-Run

Fred Wilson Union Square Vetures

Fred Wilson, the co-founder of Union Square Ventures, holds that 2019 will see the cryptocurrency market bottom out and ‘slowly’ enter a new bull run. However, he’s also concerned by actions of ‘misguided’ regulators. 


2019: Finding the Bottom

Venture capitalist and co-founder of investment firm Union Square Ventures, has laid down his predictions on the overall state of the cryptocurrency market in 2019.

The investor believes that we are currently in the process of bottoming out. However, he thinks that this would take much of 2019 but it will be followed by “some bullish runs.”

I expect we will see some bullish runs, followed by selling pressures taking us back to retest the lows. I think this bottoming out process will end sometime in 2019 and we will slowly enter a new bullish phase in crypto.

Unlike others who’ve based their positive predictions on catalysts such as further market adoption, institutional money entering the market, infrastructure, and so forth, Wilson sees the premise of a new bullish run in the face of the results of promises made back in 2017.

I think the catalyst for the next bullish phase will come as the result of some of the many promises made in 2017 coming to fruition in 2019 […] I think we will see a number of “next gen” smart contract platforms ship and challenge Ethereum for leadership in this super important area of the crypto sector.

Another area where Wilson thinks 2019 will bring ‘meaningful progress’ and further adoption is stablecoins. He’s not alone on the matter.

Bitcoinist reported earlier in November that CoinJar’s co-founder Asher Tan also believes in the potential of stablecoins to solve the problem of volatility in the cryptocurrency space.

Regulatory Concerns

The venture capitalist also shares that there will be pressure on the cryptocurrency industry, in general. According to him, it will stem from ‘misguided regulators’.

The area I am most concerned about are actions brought by misguided regulators who will take aim at high quality projects and harm them.

Back in October, industry proponent Jeremy Allaire, CEO of investment application Circle, called for globally coordinated cryptocurrency regulations. At the same time, the Chairman of the US Commodity Futures Trading Commission (CFTC) J. Christopher Giancarlo urged regulators to apply a “do no harm” approach to cryptocurrency legislation.

Last but not least, Wilson thinks that scams, hacks, and overall failures are going to remain a “drag on the sector.” However, he also holds that this is normal and ‘always the case’ with emerging tech.

What do you think of Fred Wilson’s prediction of the cryptocurrency industry’s condition in 2019? Don’t hesitate to let us know in the comments below!


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Source: Blockchain

India Likely To Lift Cryptocurrency Ban in 2019

India's Supreme Court to Issue Final Ruling on RBI Cryptocurrency Ban in September

India’s long-running saga regarding the legality of cryptocurrency is likely to see a lifting of the current ban in 2019.


Indian Flip Flops

Reports suggest the Gov’t formed committee debating the matter are in favor of legalization, although with strong regulations.

India was a notable early adopter of Bitcoin, prompting the Reserve Bank of India (RBI) to issue its first cryptocurrency warning way back in December 2013. But Indians continued to embrace cryptocurrency with a fervor matched only by RBIs increasing animosity towards it.

Despite this, it is interesting to note that RBI was considering its own fiat-cryptocurrency, the Lakshmi, back in September 2017. In the end, though, it seems that the bank considered a ban to be a better solution.

But Who Banned What Exactly?

In April this year, RBI ordered financial institutions to stop providing services to businesses involved with cryptocurrency. Companies were given a three month grace period, so the ban came into force on July 5.

However, though the central bank’s position on the matter was made fairly explicit, the government’s position seemed increasingly at odds with this. Reports stated that the Indian government had no intention to enforce a blanket ban on cryptocurrency.

Ongoing Confusion

Lawyers for industry players are locked in an ongoing legal battle to repeal the RBI ban, which was allegedly implemented without any research being conducted.

Reserve Bank of India

RBI Headquarters in Mumbai

The government has been deliberating its final decision, suggesting that it may reach some conclusion before the end of the year. Meanwhile, the Supreme Court gave the government a two-week deadline to provide some clarity back in October – which it missed.

The government’s own suggested resolution date has again slipped back, and this latest report suggests the committee’s recommendations will come in February 2019 (a further delay).

When Clarity Comes

Companies are queuing up to (re)enter the Indian market if the ban does finally get lifted.

This includes social media giant, Facebook, which is supposedly working on a stable coin for WhatsApp. The initial focus of this venture is said to be the remittances market in India.

Will India eventually lift its ban on cryptocurrency? Share your thoughts below!


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Source: Blockchain

Ethereum ICO Treasury Withdrawals Hit 2018 High in December

Ethereum ETH withdrawals

Projects which had their initial coin offerings (ICOs) on the blockchain of Ethereum have quickly liquidated their ETH holdings since June of 2018. Treasury withdrawals hit a year-high in December with more than 420,000 ETH being liquidated.


420,000 Ethereum Sold in December

Upwards of 420,000 ETH has been liquidated from ICO treasuries so far in December, making the month the largest withdrawal period this year according to Diar. 

The market research firm also reveals some statistics for 2018’s prolonged bear market. In January, the total amount of ETH held in ICO treasuries was 4,623,148. Currently, this number has been reduced to 3,052,168 ETH. The average monthly withdrawal is 2.45 percent while December has seen 12.20 percent of Ether withdrawn from treasuries or a total of 423,816 ETH so far.

November was also a month of a massive selloff as over 290,000 ETH were liquidated, led by Tezos’ 82K ETH drawdown.

Sold at Year-Low

Almost half of the total withdrawn amount of ETH in December can be attributed to one single project – Filecoin. It sold off all of its holdings of 216,906 ETH.

Another project which liquidated almost all of its ETH holdings was Substratum, withdrawing 8,931 ETH in December.

Kyber, on the other hand, withdrew 66,454 ETH and is currently left with a little over 3,000 ETH in the treasury. The reasons for the selloff are undisclosed.

Looking at ETH’s 00 yearly price chart, however, shows that the third quarter has been particularly unforgiving for the cryptocurrency. In December, it fell down to as little as $83, which is almost 95 percent down from its all-time high values at the beginning of the year.

What do you think of Ethereum’s peaking treasury withdrawals? Don’t hesitate to let us know in the comments below!


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Source: Blockchain

Looking to 2019: What Will Bring About The Next Crypto Bull?

new year 2019 bitcoin icos crypto bull

2018 is nearly finished and investors are cautiously optimistic about crypto’s prospects in 2019. While it’s great to think positive, what will it really take to turn the market around in 2019?


2018 was a Nightmare

As the end of 2018 approaches, there will be a steady barrage of articles writing 2018 off as a fluke correction year for crypto. Readers can also expect to be bombarded with proclamations that all cryptocurrencies have bottomed and 2019 will bring a bull run the likes of which the world has never seen.

With that said, 2018 was a rough year and the crypto-bear definitely roamed free and caused an unforeseeable amount of havoc. All criticism aside, 2019 should be a better year than 2018. Honestly, how could it get any worse?

Let’s take a look at what factors and new developments could help the crypto-market turn around next year.

Liquidity, Demand and Volume

Diminishing volume has been a recurring theme all throughout 2018 and a quick glance at a chart for Bitcoin or nearly any other cryptocurrency shows that repeated fake out rallies, dead cat bounces, bull traps and a continuous pattern of lower highs were clear signals that the market would continue trending down but hindsight is 20/20 isn’t it?

Evaporating demand for cryptocurrencies translated to free falling prices and sharp corrections that repeatedly pulled the market below crucial supports.

The launch of Bakkt’s Bitcoin futures exchange could assist with the demand, liquidity and volume of Bitcoin and there are rumors that the platform operators are considering adding other digital-assets.

As has been discussed throughout the year, institutional grade investment platforms provide an on digital assets ramp for hedge funds, institutional investors, family offices and other larger firms to access the crypto-market in a secure, regulated manner.

To ETF or Not to EFT?

Every month of 2018 was spent pondering whether or not the U.S. Securities and Exchange Commission (SEC) would approve a Bitcoin-based exchange-traded fund. For a time, it seemed that the entire lifeforce and future success of the crypto-market was reliant on the result of this decision and with each postponement and hint of denial the market steadily stepped down another leg.

At this point, it’s safe to say that most retail investors just want to scream out “Just get it over with already.” In other words, either deny or approve the damn thing so the market can react, accept and move on. Obviously, in the event of an approval, demand permitting, the market could experience an uptick in liquidity, demand, and volume.

Even if 2017’s bull rally was the product of a manipulative fluke, it is clear that main street investors appetite for creating a quick buck fueled a parabolic rally that will be the talk of ages.

While cognition is one of the key features that separates man from beast, a good rally and the chance to turn a quick profit is too hard for many a man to resist and if demand and investment from financial giants generate a trend change in the crypto-market, mainstream investors are bound to pile in.  

Whether it be parabolic frenzy or purchasing and advertisements from brokers and institutions, higher volume is required.

A New Year of Bullish Bets on CME & CBOE Futures

With Bitcoin shorted to nearly $3,000, Morgan Creek Digital’s Anthony Pompliano and other analysts are still suggesting the digital asset has further to fall. A possible silver lining to the whole situation is with the turn of a new year and Bitcoin price 00 so low, perhaps BTC bets on the CME and CBOE futures will turn bullish.

Analysts have correlated Bitcoin’s precipitous decline with the debut of Bitcoin futures and it seems that their approval and roll out came too late into Bitcoin’s 2017 rally to provide any benefit.

Hopefully, 2019 will reverse this trend as at some point if this trend does not reverse, there’s nowhere to go but up.

At the moment, SEC commissioner Hester Peirce, who many crypto-investors look to as a friend of crypto and affectionately refer to as Crypto-Mom pledges that she will continue to fight for crypto but also cautions, “Don’t hold your breath.

I do caution people to not live or die on when a crypto or Bitcoin ETF gets approved. You all know that I am working on trying to convince my colleagues to have a bit more of an open mind when it comes to [crypto].

– Hester Peirce

The SEC Sets a Deadline to File Comments for or Against Bitcoin ETF Applications

Meanwhile, SEC Chairman Jay Clayton resolutely stands by his previous statement that a crypto-ETF is a no until manipulation no longer poses a threat. Clayton has repeatedly said,

I want to see better market surveillance and custody for digital currencies before being comfortable with a crypto ETF.

– Jay Clayton

One thing to look forward to in 2019 is the growth of genuine use cases as the market grows more dynamic and diversified. Investors would do well to redirect their focus from the oft disappointing discussion of Bitcoin ETFs and bull markets to growth opportunities within the expanding sections of the crypto market

Genuine Use Cases

2019 should see an expansion of the crypto payments sector and announcements like last week’s news about a partnership between hardware wallet manufacturer Ledger and payment startup Crypto.com are a preview of what’s to come. The sector requires more services that allow cryptocurrency holders to transact in crypto without having to first spend fiat or exit crypto to make fiat payments.

More brokers offering crypto-to-crypto payment services are needed and a growing number of companies are beginning to enter this space. Crypto holders want to spend their funds and an increasing number of businesses are looking to accept crypto.

In fact, a 2017 study from Visual Capitalist report found that the number of brick-and-mortar shops accepting cryptocurrencies grew by 30.3% and this is representative of nearly 11,300 retailers worldwide.

Even more encouraging is the forecast of the e-commerce and payments sector experiencing exponential growth by 2021. Revenue from E-commerce and mobile payment processors are predicted to rise from $528.2 billion to $885.4 billion.

2018 also saw the gradual development of new sectors in the crypto-hemisphere. In 2016 and 2017 investors earned a return on their investments through block rewards for mining and staking coins to support various networks.

As the ICO market withered in 2018, the profits from mining, masternode operation, and staking became less lucrative for many but new options for earning a return on crypto-holdings emerged.

Crypto-banking, crypto-lending, and crypto-to-crypto payments are all genius concepts that draw from the conventional business models of traditional finance but drop some of the challenges that come with traditional banking.

Stablecoins to the Rescue?

While still approached somewhat warily by investors, stablecoins offer a convenient, safe and at times lucrative (due to arbitrage) place to rest one’s funds as Bitcoin and altcoins whipsaw back and forth.

A number of stablecoins came on the market in 2018 and a currently giving Tether (USDT) a real run for the money. They might function as the saving grace to the cryptomarket as provide a regulated, stable, on-ramp for banks and businesses looking to dabble in crypto.

Also, with the ICO market in shambles, stablecoins and security token offerings could be the next assets that underpin an evolving fundraising model that traditional, blockchain and crypto-based startups need to acquire capital in 2019.

New ventures like the partnership between crypto-lender Nexo and stablecoin TrueUSD are likely to provide profitable alternatives to investors as holders can earn a return steady return on their digital assets and also acquire crypto-to-fiat loans on their crypto holdings.

Other crypto banking providers and payments companies like Nexo, FOTON Bank and Revolut are already making it easier for crypto-holders looking to acquire capital or make crypto payments quickly. The use of smart contracts and platform-specific native tokens are meant to bypass taxable conversions (crypto to fiat, crypto to crypto) and also remove the double transaction fees that those attempting to convert and spend crypto frequently encounter on exchanges.  

With forecast of a ‘revolutionary force’ in 2019, investors should keep a close eye on this corner of the crypto-sector to see what other services stablecoins could provide.

In 2019, it’s going to take more than pure speculation for traders to turn a profit and each investor will have to work a little bit harder and familiarize oneself with a maturing crypto-market.

Trading wise, investors will need to stay abreast of new developments and exploit the little opportunities in order to average a respectable profit. At this point, nobody is sure what the market holds for 2019 and it’s yet to be determined if a bottom has been found yet.

In order for the oft-mentioned ‘mass adoption’ that investors and analysts speak of to occur there needs to be genuine, convenient use cases for cryptocurrency other than just investing and spending.

What do you think it will take to turn the crypto-market around in 2019? Share your thoughts in the comments below.


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Source: Blockchain

Vitalik Buterin: Bitcoin is ‘Genuinely Cool Tech,’ Bitcoin SV Is ‘Pure Dumpster Fire’

dumpster fire

Bitcoin Cash ‘Satoshi’s Vision’ (BSV), the new hard fork of Bitcoin Cash (BCH), is a “pure dumpster fire,” Ethereum co-founder Vitalik Buterin has said.


Cool Vs. Dumpster Hot Air

In a Twitter discussion with cryptocurrency commentator and entrepreneur Tuur Demeester December 25, Buterin debated the pros and cons of two algorithms used by many cryptocurrencies: Proof-of-Work (PoW) and Proof-of-Stake (PoS).

As part of its long-term upgrade schedule, Ethereum plans to transfer from PoW to PoS, with Buterin saying he “doesn’t believe” in the former.

Vitalik Buterin

BSV, which plans to use giant block sizes to solve scaling difficulties ‘on chain,’ has faced technical and publicity hurdles since it came into being on November 15.

The altcoin unwittingly became collateral damage from the debate after an advocate requested Buterin’s opinion on it.

The user had claimed the scaling plans from Bitcoin (BTC) developers – specifically ‘off-chain’ scaling via the Lightning Network, was a “joke.”

Buterin slickly disagreed.

“I have my disagreements with the bitcoin roadmap, PoW, etc but they’re trying to do something that’s genuinely cool tech,” he responded.

“BSV is a pure dumpster fire.”

Traders Stay Warm This Christmas

In a curious move, the BSV proponent did not criticize Buterin for his negative perspective, something which has become commonplace among the coin’s better-known activists.

Craig Wright, the self-proclaimed ‘Satoshi Nakamoto,’ has continued to earn a notorious reputation for his lack of tolerance of BSV 00 naysayers.

As Bitcoinist reported, an apparent spat with BCH advocate Roger Ver prior to the hard fork saw Wright pen an email calling Ver his “enemy.”

“Have a nice life. You will now discover me when pissed off,” he wrote.

BCH, BSV and ETH have meanwhile all staged something of an unlikely recovery over the past week. BCH had led the rally, more than doubling in value to hit more than $200 before correcting nearer to $170. ETH managed $160 from a low of $73.

Do you agree with Vitalik Buterin’s comments? Let us know in the comments below!


Images courtesy of Shutterstock, Bitcoinist archives

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Source: Blockchain