Facebook Wants to Mint Its Own Stablecoin for WhatsApp

facebook whatsapp

Facebook, the world’s largest social media website has been reportedly working on a stablecoin to allow WhatsApp users to transfer money. The company’s initial focus is supposedly the remittance market in India. 


Facebook’s Stablecoin

The social media mogul is developing a stablecoin pegged to the US dollar, Bloomberg reports, citing sources who have asked not to be named.

Purportedly, the company intends to use the cryptocurrency to allow WhatsApp users to transfer money. According to the report, Facebook’s initial target will be the remittance market in India.

WhatsApp was acquired by Facebook back in 2014. The popular messaging platform is purportedly popular in India, boasting over 200 million users. Bloomberg also reports that the country leads the world in terms of remittances as people have sent home $69 billion in 2017 alone.

A Challenging Road Ahead

Facebook’s foray into the field of blockchain was attested back in May when the head of their Messenger platform David Marcus announced the formation of a “small” group to “explore how to best leverage Blockchain across Facebook, starting from scratch.”

A Facebook spokesman said a few days ago:

Like many other companies, Facebook is exploring ways to leverage the power of blockchain technology. […] This new small team is exploring many different applications. We don’t have anything further to share.

However, the launch of the purported stablecoin may still be far off. According to the sources, the company is still working on the strategy, including a plan for custody assets or regular currencies, which would be held to protect the value of the stablecoin.

Commenting on the matter was Arran Stewart, co-founder, and CVO of a blockchain-powered recruitment company, who also identified potential hurdles in Facebook’s plan:

There are many hurdles with creating effective use of blockchain technology, especially on such a big of scale as Facebook. I would imagine that their approach may be a private hyper ledger fabric system for recording user profile data, potentially for the purposes of security but there are also many other things that Facebook maybe considering – such as becoming a merchant and offering the ability for one user to send money to another or even the purchase of goods or services through the Facebook platforms.

Others, such as software programmer Udi Wetheimer, questioned Facebook’s motives in having their own stablecoin. Thought adoption of virtual currency by a social media giant like Facebook could be a good way to onramp new Bitcoin users, he noted.

In July, Bitcoinist reported that Viber, one of WhatsApp’s biggest competitors, is also working on launching its own cryptocurrency for in-app money transfers.

What do you think of Facebook’s plans to issue a stablecoin? Don’t hesitate to let us know in the comments below!


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Source: Blockchain

Study: Asia Has More Impact on Bitcoin Price Than America and Europe

asia shanghai bitcoin price

With events like SEC approval for Bitcoin ETFs and the introduction of cryptocurrency derivatives, it is easy to imagine the market being driven by news out of the United States. However, new research suggests that Asia, and not the West, is the dominant driver of Bitcoin price and cryptocurrency markets.


Western Focus Might be Misleading

Jay Clayton, the Chairman of the United States Securities and Exchange Commission (SEC) commented back in June 2018 as part of his comments about the Commission’s stance on whether cryptocurrencies where securities or not, saying:

We’ve (the SEC) been doing this for a long time, and we’ve built a $19 trillion economy, a securities market that is the envy of the world, following these rules.

While it is true that the Western hemisphere exerts a lot of dominance over the mainstream asset market, the same doesn’t necessarily apply to Bitcoin and the altcoin market. However, it isn’t unusual to see US-based “trading experts” to argue that things like the CME and CBOE BTC futures are driving Bitcoin price 00.

According to Mosaic, a cryptocurrency data and research firm, developments in Asia exert a significantly greater effect on the virtual currency market than the ones from the Western part of the globe.

The research firm says there have been 11 major news developments from Asia concerning cryptocurrencies. These headlines impacted the market by an average of 18.61 percent.

The most significant of these developments came at the beginning of the year when CoinMarketCap removed data from South Korean exchanges. According to Mosaic, this singular event crashed the market by more than 57 percent.

Back in mid-2018 when BTC price rallied from $6,200 to $8,000, many commentators pointed to news coming out of Asia. At the time, wealthy Chinese citizens turned to Bitcoin as a haven as the government accelerated the devaluation of its currency.

Asia Dominates Mining and Cryptocurrency Exchange

To start with, Asia dominates both the mining and exchange landscape. Even with the crackdown by China, other places like Singapore, Hong Kong, Japan, and South Korea are hotspots for numerous cryptocurrency exchange platforms and related businesses.

Why is this information relevant? Well, apart from the apparent trading volume conclusion, there is also the language component. These Asian exchanges make sure their services are offered in their local languages, bringing trading closer to the local population. With relatively cheaper electricity, the region (especially China), is still a dominant player in the bitcoin mining industry.

Hong Kong cryptocurrency

Earlier this year, Arthur Hayes, CEO of Hong Kong-based BitMex platform, said that crypto trading in Asia is more developed than in the West.

“Asia dominates cryptos because they’re very used to digital trading assets. South Korea has been trading digital goods related to gaming for two decades. When you move to a purely money based digital currency, they understand that culturally, so they get on board quickly,” he said. Therefore, it stands to reason that news out of that region would have a much greater sway on the market than in the US and Europe.

The researchers conclude that due to the “pivotal role” Asia plays in cryptocurrency, “investors seeking a better idea of what drives crypto prices would do well to look East.”

Will an influx of US-based institutional investors shift the tide of dominance towards the Western hemisphere? Please share your thoughts with us in the comments below.


Image courtesy of Mosaic.io., Shutterstock

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Source: Blockchain

Bitcoin Hash Rate Stabilizes After Mining Difficulty Adjusts to Lower Price

hash rate stabilize stable blocks

The Bitcoin hash rate – the number of hashes per second the network is performing – has stabilized undergoing its biggest downward difficulty adjustment in seven years amid lower BTC price. 


Bitcoin Network Heals Its Wounds

On the back of the Bitcoin price 00 hitting 15-month lows and dropping 50 percent in the past month alone, miners have faced operational losses or stopped mining altogether.

Bitcoin’s hash rate thus began falling over recent weeks, reversing an upward trend which had persisted throughout previous bull and bear cycles.

The downward difficulty adjustment December 4 helped to offset the lower price of bitcoin for miners.

Now, data from monitoring resource and wallet provider Blockchain confirms that hash rate has naturally begun climbing again following the event.

The data was reproduced on social media by Frank T. Young, chief product officer of fintech services provider Global Payments Tuesday.

Bitcoin Doesn’t ‘Take The Punch Bowl Away’

Bitcoin’s ‘self-correction,’ he argued, serves to illustrate not only the cryptocurrency’s sustainability as an ecosystem, but puts it in another league from the manual processes still used in fiat money systems – including the US Federal Reserve.

St. Louis Federal Reserve Bank: 3 Qualities Bitcoin and Cash Share

On Wednesday, the Fed was due to make a significant policy decision on interest rates.

“(The Bitcoin hash rate) has stabilized via difficulty adjustment,” Young commented.

“When you watch news coming from Wednesday’s Fed meeting ask yourself, ‘which approach is more sustainable?’ The ‘politically driven opinion of appointed Fed officials’ or ‘math?’”

Catalina Marketing chief product officer Ben Sprecher responded in kind, claiming it was “pretty amazing to have a self-correcting, self-throttling mechanism built-in” in Bitcoin.

The whole voodoo of ‘take away the punch bowl as the party gets started’ + ‘add *just* enough stimulus when ‘needed’’ gets replaced by the math of internal equilibrium incentive mechanics.

Saifedean Ammous, to whom both commentators appealed in the discussion, appeared to endorse the Bitcoin – Fed contrast.

Despite prices still hovering near annual lows, others in the industry continue to reiterate their faith in Bitcoin, among whom was Galaxy Digital CEO Mike Novogratz this week.

What do you think about Bitcoin’s hash rate function? Let us know in the comments below!


Images courtesy of Shutterstock, Blockchain.info

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Source: Blockchain

UK Gov’t Unveils Cryptocurrency Tax Guidelines For Individuals

Bitcoin cryptocurrency tax uk

Her Majesty’s Revenue and Customs (HMRC) yesterday released a policy paper, detailing cryptocurrency tax guidelines for individuals. The good news is that no new punitive tax measures apply to crypto, which essentially falls under existing taxation schemes.


Which Tax Applies?

After defining what a crypto-asset is, the paper notes that the nature of the industry requires a continually developing tax perspective. It breaks down the difference between exchange, utility, and security tokens, although the guidance within applies specifically to exchange tokens.

The tax treatment, however, is not dependent on the definition of the token, but on its nature and use. In simple terms, crypto-assets received as a form of payment will be liable for income tax. Those held as a personal investment will be subject to capital gains tax, but only on disposal.

Cryptocurrency Tax Liabilities

Income Tax and National Insurance contributions are liable on crypto-assets received in the following circumstances:

  • Non-cash payment for employment or services rendered
  • Mining fees or awards – where the mining activity is not at the degree where it would amount to a taxable trade.
  • Financial trading in cryptocurrency – where the level of organization and frequency amounts to financial trade.

As crypto-assets gained through these activities count towards total earned income, the level of tax payable depends on tax bracket.

Capital Gains Tax

In most cases, HMRC expects that the buying and selling of crypto-assets by an individual will amount to investment activity. As with any other asset, this requires payment of tax on any gains realized at the point of disposal.

For the purposes of crypto-assets, disposal may include:

  • Selling for money
  • Exchanging for other types of crypto-asset
  • Using as payment for goods or services
  • Giving away to another person – who is not a spouse or partner

Charity donations are not usually subject to capital gains tax. Special rules apply to pooled assets (those which a person acquires over time and at different prices), regarding initial purchase cost.

Rates of capital gains tax are 20% for higher or additional rate taxpayers, and 10% for basic rate taxpayers. If your gains plus your income fall within your personal allowance then zero tax is due.

The Bottom Line

This is a very clear and well-written paper, and it is refreshing to see the British government eschew the “Crypto bad!” mentality, favored by some. By treating crypto-assets as regular income and/or investments, dealing with them should be made easier, as most taxpayers (and all tax professionals) will already be familiar with these processes.

Interestingly, the Bank of England posted a Twitter poll this week, asking for respondents preferred way to receive Christmas money. No prizes for guessing what’s coming top. Although perhaps somebody should tell the BoE that ‘bank transfers’ are ‘digital currency.’

Additionally, acceptance of bitcoin and other cryptocurrencies by the government for tax payment could also be on the horizon. Earlier this month, Bitcoinist reported that UK Member of Parliament, Eddie Hughes, has called for local authorities to take a lead, and accept Bitcoin payments.

Do the cryptocurrency tax guidelines help mainstream adoption? Let us know in the comments below!


Images courtesy of Shutterstock, Twitter

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Source: Blockchain

Bitcoin Price Now Hinges On 50-Month Moving Average

Bitcoin price analysis moving average

BTC traders were concentrating on one metric in particular this week as Bitcoin price slowly slides towards $3000.


Bitcoin’s ‘All Over’ Scenario

The largest cryptocurrency had recovered from fifteen-month lows over the weekend around $3130 to trade around $3200 at press time December 17.

In the short term, however, the situation could deteriorate exponentially, veteran trading guru Tone Vays warned in his latest market update Sunday.

Vays, who had previously correctly forecast BTC/USD’s drop to between $3000 and $3500, now singled out the 50-month moving average Bitcoin price 00 as a determining factor for the future.  

With the pair now hovering just above that average, a reversal must come to keep Bitcoin in line with its historical behavior, having tested the barrier twice before.

Conversely, a full candle below would spell a run down to $1300, Vays describing it as being “all over.”

“We have crossed the 50-month moving average twice before but never closed below it; I pray to God we don’t close below it because if we do, shit gets bad,” he summarized bluntly.

…The moment we can close below the moving average and have a full candle below the moving average, it’s all over; we’re going to $1300 and hopefully not lower.

Technical Strength Keeps Building

Analyzing weekly chart behavior, Vays said the 200-week moving average, which had likewise not seen a full red candle open and close below it before, could also represent a watershed moment.

“…Let’s hope it holds but I’m not very optimistic,” he added.

Cryptocurrency markets had broadly steadied over the weekend, with some assets gaining 1-2 percentage points to stem losses which had seen many reach 18-month lows.

The two strands of Bitcoin Cash (BCH and SV), which continue to fight a hostile publicity and hash rate war, likewise modestly improved, despite the legacy chain still trading at its lowest ever (BCH) price 00 in both USD and BTC terms since inception in August last year.

Bitcoin itself meanwhile has seen fresh technical improvements. Its mainnet Lightning Network implementation has been rapidly growing to reach 477 BTC capacity Monday.

What do you think about the short-term future Bitcoin price? Let us know in the comments below!


Images courtesy of Shutterstock

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Source: Blockchain

Gab Says Bitcoin is The Clear Solution as ‘Free Speech Money’

Gab free speech money bitcoin

Censorship-free social media platform, Gab, took to Twitter to proclaim the gospel according to Bitcoin. Describing the grandaddy of cryptocurrency as “free speech money,” it pledged to educate its near million-strong community.


The Next Evolution Of Online Payments

In recent tweets, Gab calls for the next evolution of online payments, in the form of un-censorable money. This must take payment processing online out of the hands of a small number of gatekeepers. Touting Bitcoin as “the clear solution,” Gab cites Silicon Valley’s inability to de-platform it from using the cryptocurrency.

Gab sees its role now as being to make Bitcoin easy to purchase and use. Something it says it can (and will) achieve with enough education and time. Gab:

We aren’t doing it because it’s hip or cool or the latest technology fad. We are doing it out of necessity.

All well and good, but Gab is hardly the first to the ‘championing of Bitcoin’ table. What does it think it can bring with it which is different?

A Community Of Almost A Million People (And Growing)

Taking a clear swipe at what it calls “vaporware crypto startups,” Gab mocks their relative lack of interest from users. Despite raising tens of millions of dollars, these startups cannot match Gab’s highly engaged community, according to the tweets.

Gab claims its users have been “put through the ringer for years,” for standing by its mission of delivering free speech. It adds:

Bitcoin is inherently pro-liberty and pro-freedom. It is free speech money. Gab has the distribution to introduce it to a huge and growing community.

A million people doesn’t sound all that impressive though, next to over 35 million authenticated users, already using cryptocurrency. And it’s rather telling that Gab chose Twitter to spread its message, rather than its own platform.

No Room At The Inn

Gab’s championing of Bitcoin comes on the back of its recent banning from PayPal. Despite this, Gab starts the tweet-storm praising PayPal’s achievements in initially breaking down barriers to online payments.

Ironically, Gab has repeatedly found itself de-platformed, often as a result of its refusal to de-platform those who have been barred from other major platforms. This has led to a reputation as a haven for hate speech.

Despite this latest missive, Gab has not always had the smoothest of paths regarding Bitcoin. Earlier this year, it had its Coinbase account closed without warning. This led it to describe centralized exchanges as “cancer,” and “contradictory to everything crypto stands for.”

The social media platform has since switched to the self-hosted BTCPay Server solution, reducing its dependence on third-party payment processors such as Coinbase and BitPay.

Gab now claims it “…has the power and community to reverse the current bear market. That’s not an understatement.”

Holding your breath while waiting for that to happen is not, however, recommended.

Will Bitcoin be increasingly used by de-platformed entities? Share your thoughts below! 


Images courtesy of Shutterstock

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Source: Blockchain

FAANG Stocks Lose Over $1 Trillion – More Than All Cryptocurrencies Combined

FAANG stocks crash

Facebook, Amazon, Apple, Netflix, and Google stocks have together shed over $1 trillion in market capitalization from their all-time highs, marking an even bigger loss in dollar value than all cryptocurrencies combined in 2018.


FAANGs Lose Bite

Bitcoin and cryptocurrencies, in particular, are not the only bubble in town.

Stocks of tech stalwarts like Google, Amazon, and Facebook, collectively knowns as FAANG, have lost over $1 trillion USD in market capitalization from their all-time highs.

Comparatively, despite a nightmare year for cryptocurrencies, the total cryptocurrency market cap is down roughly $700 billion from its $830 billion historic high in January 2017.

total market cap

Among the FAANGS, Netflix (NFLX) was the worst performer, down -34.8% for the year (as of December 13th), followed closely by Facebook at -33.7%, according to data from Investopedia.

Apple Inc. (AAPL) didn’t fare much better amid disappointing iPhone sales, down -26.8% stock from its record price – and almost -14% in the past month alone.

Amazon.com Inc. (AMZN) is also dropped by a considerable -19.1% with Google-parent company Alphabet Inc. (GOOGL), right behind with a -16.9% drop.
 
The runup to record high valuations for FAANG shares was an impressive bull period, which appears to now have peaked in July 2018. Interestingly, this month was also the last time Bitcoin (BTC) saw prices above $8,000.

But while the ‘Bitcoin is dead’ narrative appears to be greatly exaggerated, according to a recent study from the University of Cambridge, the cryptocurrency ‘bubble’ is admittedly still relatively more severe than FAANGs’ with an 85% drop.

Everything’s Bubbling

The S&P 500 and the Nasdaq 100, for example, have fallen by a lower -9.9% and -12.1%, respectively, from their own highs compared to the FAANGs. In fact, the recent stock rout has been led by the once-red-hot FAANG as tech-oriented ETFs saw “massive outflows” in November, reports Bloomberg.

“The conditions that have allowed these kinds of high-growth stocks to outperform have changed, if not reversed,” says David Lafferty, chief market strategist at Natixis Advisors. “I just don’t see much upside.”

Similar conditions may have also allowed for this exuberance to spillover to the nascent cryptocurrency industry earlier this year. Both Wall Street and retail investors began buying into the high-risk, high-reward casino world of crypto and novel ICOs pushing the price to record highs by the end of 2017.

At the time, newly launched Bitcoin futures marked Bitcoin’s entry into mainstream finance, boosting Bitcoin price to new heights. Today, BTC price 00 is down roughly 85% from its all-time high of almost $20,000.

Bitcoin Adoption ‘Driven By Bank Failures’

Unfortunately for both stocks and cryptocurrency, Lafferty doesn’t see much hope for the near term as the central bank policy has shaken many investors.
“The Fed’s tightening is getting to where it’s starting to hurt,” he says. “GDP should decelerate in 2019, which will lead to a natural decline in earnings growth. What that means for multiples and investor sentiment is up in the air.”
paris protests buy bitcoin

Elsewhere, protests across France and slower economic growth globally as a whole could be a sign of a looming financial crisis, which in 2008 birthed Bitcoin as a decentralized and apolitical alternative to the existing financial system.

In other words, don’t be surprised to see a divergence between Bitcoin and stock market performance in the future.

Former Wall Street investor and market analyst, Max Keiser, recently told Bitcoinist that Bitcoin was, in fact, designed to thrive in times of economic turmoil. He explained:

Bitcoin adoption has always been driven by bank failures, bailouts, bail-ins, and political unrest. The problem Bitcoin has had recently is its competitor, the US Dollar, has been rising.

Ten years after its birth, it will be interesting to see if Bitcoin – which isn’t a stock or a company share but a digital protocol for transferring value – can eventually decouple from traditional markets and provide a haven during the next bust cycle.

Fundstrat Global Advisors Head of Research, Tom Lee, meanwhile recently called BTC undervalued, given its fundamentals are strong as ever.

“Bitcoin’s fair value, given the number of active wallet addresses, usage per account and factors influencing supply, is between $13,800 and $14,800,” said Lee.

In the macroeconomic climate, Lee holds that treasury sales of initial coin offerings (ICOs) are the reasons for the lower price.

Therefore, the market correction could actually prove to be healthy for Bitcoin, the most secure blockchain in the world, as unprofitable businesses and low-quality projects go belly up, leaving only the cream of the crop for the next bull-run.

Can Bitcoin thrive in the next financial crisis? Will it outperform FAANG stocks in the near future? Share your thoughts below!


Images courtesy of Shutterstock, coinmarketcap.com, thetechnicals.com 

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Source: Blockchain

Litecoin ‘Flappens’ Bitcoin Cash By Market Capitalization

In February, Charlie Lee predicted a ‘flappening’ of Litecoin and Bitcoin Cash before the end of the year. Well, with just two weeks of the year left, the prediction came true, as Litecoin’s market cap overtook Bitcoin Cash.


Natural Rivals

In many ways, Bitcoin Cash was always a more natural competitor to Litecoin than to Bitcoin. From its conception, it tried to address several perceived shortfalls of Bitcoin, that Litecoin tried to fill years earlier.

Both allow faster transactions and confirmations, aimed squarely at the retail sector to encourage adoption for smaller payments. This is one area of utility that Bitcoin has traditionally struggled with, although the development of Lightning Network is trying to redress this balance.

While Litecoin had a head-start in terms of being first to market, Bitcoin Cash had the weight of Bitcoin branding. It also didn’t hurt that the entire Bitcoin user-base suddenly found themselves with some, after the 2017 fork.

Two Ways To Pluck A Chicken

Litecoin advocates have long waited for a ‘flappening’ (combining ‘flippening’ with Lee’s ‘Chikun’ nickname), creating a website monitoring the situation. By many metrics, Litecoin has always been ahead of BCH, but in most eyes (and notably those of CoinMarketCap), the key figure is… well, market cap.

Charlie Lee Litecoin

While most assumed that an overtake would occur through gains in LTC price 00, ultimately other forces were at play. Indeed, Litecoin creator Charlie Lee took complained in September about third parties “artificially” suppressing Litecoin price.

Whether or not this was true turned out to be a moot point. In the end, it was the (un)civil hash-war following the recent hard-fork, that did it for Bitcoin Cash. The steady hemorrhaging of BCH value [coion_price coin=bitcoin-cash] eventually brought the market cap below that of its rival.

The Flappening Effect

The internet and Twitterverse, in general, seemed generally very pleased, congratulating creator Charlie Lee for the achievement. But the ‘flappening’ also had another side effect.

As news spread, the LTC price began to spike, and at time of writing has seen a 24-hour increase of almost 12%. This has boosted its market cap from simply overtaking BCH, to being nearly 10% higher.

Will Litecoin keep outperforming Bitcoin Cash or will BCH price recover? Share your thoughts!


Images courtesy of Shutterstock, BItcoinist archives

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Source: Blockchain

President Trump Appoints Bitcoin Proponent as White House Chief of Staff

mulvaney trump

President Donald J. Trump has announced that he will be naming Mick Mulvaney as the new acting White House Chief of Staff. Mulvaney is a well-known Bitcoin proponent and has previously expressed his support of blockchain technology. 


Mulvaney: New Acting Chief of Staff

Mick Mulvaney, who’s currently the director of the US Office of Management and Budget (OMB), has been named Acting White House Chief of Staff and will reportedly assume the position at the end of the year.  He will be succeeding the post from John F. Kelly.

“I am pleased to announce that Mick Mulvaney, Director of the Office of Management & Budget, will be named Acting White House Chief of Staff, replacing General John Kelly, who has served our Country with distinction. Mick has done an outstanding job while in the Administration,” President Trump tweeted.

According to CNN, Mulvaney will not be resigning as director of the OMB while he is acting White House Chief of Staff. Citing sources familiar with the situation, CNN reports that it is President Trump who wants Mulvaney to keep his current role as OMB director as well. The latter has been occupying the position since February 2017.

 Good News for Bitcoin

Mulvaney is a well-known Bitcoin and blockchain proponent, spearheading the Blockchain Caucus – a soundboard for policy creation handling blockchain technology as well as the growing impact of virtual currencies.

“Blockchain technology has the potential to revolutionize the financial services industry, the U.S. economy and the delivery of government services, and I am proud to be involved with this initiative,” Mulvaney previously stated.

Mulvaney is yet another appointment of President Trump who seems to be favoring the development of the cryptocurrency industry. In September Bitcoinist reported that the President has appointed Elad Roisman as an SEC commissioner.

Roisman has previously demanded regulations, which treat the industry “in a fair and transparent manner, provide clarity and certainty to the markets and investors.”

What do you think of Mick Mulvaney becoming White House Chief of Staff? Don’t hesitate to let us know in the comments below!


Images courtesy of Shutterstock

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Source: Blockchain

Peter McCormack Tells How He Turned $32K Into $1.2M and ‘Back to Pretty Much Zero’

bitcoin price

In an informative, entertaining, comical, and bitterly poignant tweet yesterday, What Bitcoin Did podcast host Peter McCormack explains how he amassed–and lost–his crypto fortune over the last two years.


From $32K to Millionaire and Back

He starts the Twitter post saying:

So here is a thread on how I turned $32,000 into $1.2m and back to pretty much zero (once taxes are paid). Just note, I am not bitter or salty in any way at all, the last 2 years have been an amazing ride – travelled the world, been wealthy, been poor.

Peter’s story isn’t all that uncommon, although perhaps not everyone is as candid over the irrational and irresponsible behavior that led to them losing their fortunes.

Peter McCormack

Like many invested in the space, Peter saw potential first of all in Bitcoin back in 2016. At the time his own advertising business was folding and he decided to take a risk. All he had left was $32,000. He sunk every penny into BTC and ETH.

Right Time, Right Place

Peter hopped on the crypto train at the right time and place. It didn’t take him long before he expanded his portfolio into a plethora of other altcoins. He admits to having no trading experience and not properly conducting his research. He just got caught up in the crypto momentum and hype that so many others did, saying:

As it started to go up I diversified into everything, Monero, Dash, this that, any crap – even Ripplecoin. Everything just kept going up.

By the summer of 2017, his profits had reached half a million dollars. But, he admits, that’s when he started to get greedy. Instead of religiously taking out 25% of his profits as he had previously done, he reinvested it all closing the year with a fortune of $1.2 million.

When my balance was high I went crazy: new clothes, first-class flights, giving money away to family, charity, laughed at $25k lost on Confido… the list is endless.

Then it All Started to Go Wrong

You can pretty much guess how the story ends from here. As the markets started to spiral, Peter failed to react, convinced that it would all recover. He was so heavily invested in crypto at this point and had only known it go up and up.

bitcoin cash crash bitcoin sv

He was making five sources of income, from trading, mining, a mining pool, his podcast, and consulting. He wasn’t going to abandon the space.

As the market started to crash I just ignored it, kept thinking it would come back, it crashed like 4 times in 2017. But it didn’t. Mining is what busted me most:

– 70 S9s
– 70 DragonMints

The above with setup was like $300k.

Despite losing money on mining, he couldn’t pull the plug and was stuck with paying fixed data center fees. “Each month digging into my BTC to pay the bills,” he says.

At his peak, Peter had 150 BTC. But as the prices started to slide and the various altcoins and shitcoins he’d invested in start to crash out and plummet, his holdings had soon dwindled to about 80 BTC and dropping.

Basically greed and over ambition have destroyed what could have been life-changing money. After I pay my tax bill pretty much all is gone.

Peter McCormack Has a Silver Lining to His Story

Peter admits to having to sell more of his bitcoins than he would have liked due to the responsibilities of being a father. He also hasn’t lost everything since he still makes a modest income from his podcast.

And he has some advice for other crypto HODLers and traders out there:

If there is another bull run and you make a bunch of cash then remember to take profits. Don’t overstretch yourself. People say don’t invest what you can’t afford to lose, well don’t keep in Crypto profits which will change your life.

He ends his thread with an edit that puts the whole crazy journey into context and pounds home the message that there’s more to life than obsessing over wealth.

In the last 5 years I have lost a marriage (after 3 months), lost my Mum (cancer) and nearly died from a drug overdose. Rich or broke, the money made little difference to happiness.

What do you think of McCormack’s experience and lesson learned? Share your thoughts below!


Images courtesy of Shutterstock, Twitter

The post Peter McCormack Tells How He Turned $32K Into $1.2M and ‘Back to Pretty Much Zero’ appeared first on Bitcoinist.com.

Source: Blockchain