Bitcoin Now Following A Trend That Previously Kicked Off The Start Of A New Bull Market

  • 40% of all BTC has not been moved for at least 2 years, the last time this happened, a new bull market started
  • Top riches 7 entities are all exchanges that collectively hold 13% of Bitcoin’s circulating supply
  • A healthy and consistent adoption of Bitcoin over the past 10 years as only 21 days in its history was negative growth

Bitcoin’s price is looking strong and enjoying good greens. Today, we jumped above $9,500, making yet another new high of 2020 and a level last hit in early November.

But interestingly, this surge in price has no effect on the HODLers.

According to the on-chain analytics firm, Glassnode, HODLed Bitcoin has been rather increasing “sharply” as we move into 2020. This could be because of the upcoming reward halving in May, which has been a historically bullish event of which investors have bullish expectations. Glassnode notes:

“Currently, over 40% of all BTC have not been moved for at least 2 years. Previously, we’ve seen this behaviour kick off new bull markets by restricting circulating supply and increasing demand.”

About 23 million entities own BTC

In another of its analysis, Glassnode found that 1910 entities hold more than or equal to 1,000 BTC while 75 entities hold equal to or more than 10,000 BTC.

The richest ones out there are 7 entities that hold equal to or more than 100,000 BTC which are all exchanges with Coinbase leading the pack, holding about 983 BTC. Coinbase is then followed by Huobi (369,100 BTC), Binance (240,700 BTC), Bitfinex (214,600 BTC), Bitstamp (165,400 BTC), Kraken (132,100 BTC), and Bittrex (118,100 BTC).

Together these exchanges control over 2,35,000 BTC, approximately 13% of the circulating supply of Bitcoin. Overall,

“as of January 2020 the number of entities holding Bitcoin is ~23.1 million. This is 18.5% less than the current number of non–zero addresses (~28.4 million).”

Instead of going with addresses, Glassnode chose entities because as it points out Bitcoin addresses can hold funds for more than one individual such as exchange addresses and a single entity can also own and control multiple addresses holding BTC.

The daily net growth of entities has also been a positive and strong one because there have been only 21 days so far in Bitcoin history in which the net entity growth was negative.

“This is a clear indication of a healthy and consistent adoption of Bitcoin over the past 10 years,” states Glassnode.

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Author: AnTy

Cryptocurrency Exchanges Aren’t Going Anywhere Soon, Even If They Are Dwindling

When the crypto bubble originally happened, there were new crypto exchanges popping up daily. However, a recent article in Forbes points out that these numbers are now going in the opposite direction, and there are new exchanges shutting down almost daily. The boom of 2016 has since died out, and the exchanges that arose during this time have no reason left to be around.

Realistically, Bitcoin has already been done, and the Forbes article simply states that the world doesn’t need more replicas of this asset. Without the Ethereum-based tokens, there’s only about 30 listable tokens, which hardly supports the number of exchanges that are presently on the market.

Despite the many regulatory concerns and the pressure that various countries are placing on exchanges, it still doesn’t look like they aren’t going away anytime soon. There are still exchanges that will continue to be shut down, but the bigger platforms seem well equipped with the necessary support to keep the industry going for quite a while.

Altcoins are another concern in the cryptocurrency market. The limited appeal of these coins must have use cases to survive. Online games, for example, often have para-currencies, though it isn’t always easy to swap out these or money, which is good for the government. If the para-currency could be swapped out easily, private currency ends up circumventing different laws. The article states,

“Up to now, the use cases of money were powerful, a store of wealth, a unit of account, and a means of exchange, but apart from a few niche applications, like jewelry, decoration, and votive offerings, that’s all there is.”

“Crypto can be more.”

The necessity for Bitcoin to come into the financial world was due to the failure of the government, just like the entry of tokens from pubs in the 17th and 18th century, which assigned tokens a value of a certain amount of ale. The article suggests that this example is a good reason to support a lack of future for cryptocurrencies, considering that governments could simply create their own to remedy these circumstances.

However, perhaps the opposite is true, in that the decentralized nature of cryptocurrency and their exchanges allow users to be hedged from “disaster and privation” that could be imposed on the public.

Cryptocurrency exchanges have been dropping out of the industry since 2016, following the cryptocurrency boom. However, a recent article from Forbes suggests that these platforms could be around for quite a while.

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Author: Krystle M

Family Members See Jail Time for Using Bitcoin on the Dark Web to Sell Drugs

A criminal case involving a father, his daughter, Bitcoin and drugs happened recently. Brittany Nicole Green and Gregory Green were both sentenced to jail recently in the state of Montana for using Bitcoin to create a drug ring on the dark web. While Brittany was sentenced to five years, her father Gregory will spend three years in jail.

Between 2017 and 2018, the father and daughter duo sold drugs via the dark web, received the money in Bitcoin and shipped them through the mail to other cities.

When the authorities finally raided the home of the criminals, they discovered “a supermarket of drugs” that contained methamphetamines, Xanax and other drugs such as Carfentanil.

The duo have been watched and investigated since December of 2018 when customs intercepted a package containing Xanax from Canada that was sent to Green. According to the U. S. Assistant Attorney Bryan Dake, one of the most unique aspects of the case is that all drugs were received and sent via the mail. The Greens never actually had to leave their houses to run the operation.

Both parties admitted to drug possession and conspiracy to sell it, so they went for a plea deal. The judge of the case affirmed that the daughter’s role in the drug ring was more active, so she deserved a longer sentence than her father.

This is not the first time that someone used cryptocurrencies to sell drugs online. In fact, the popular dark web marketplace Silk Road was one of the most famous cases in which this happened and one of the main reasons why Bitcoin managed to get a bad rap among authorities.

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Author: James W

BTC Users Running Lightning Network Nodes Urged To Update After Confirmed CVE Vulnerabilities Exploited

An unfortunate event happened in the Bitcoin Lightning Network recently. According to the recent announcement made on Twitter by Lightning Labs, the network is currently being exploited due to a vulnerability.

According to the tweet, all Ind 0.7, c-lightning 0.7, eclair 0.3 and their editions below that are possible to be affected by the exploit, so people should upgrade to the latest version of the system in order to protect themselves from the attack. The latest versions, 0.7.1 and 0.3.1, are not subject to the attacks.

Olaoluwa Osuntokun, the Chief Technology Officer (CTO) at Lightning Labs, affirmed that there are several cases of people exploiting the network. The exploit was originally discovered a few days ago by Rusty Russel, another LN coder.

According to Russel, security vulnerabilities could make several projects to lose funds. He did not disclaim exactly what was the bug, obviously, in order to protect the users, but someone or a group of people may have discovered the exploit and is using it to steal money from the LN.

The Twitter profile also warned people that LN technology is prone to have bugs as it is still during its experimental phases. Because of this, nobody should put more money on the network than they were willing to lose if a bug happens.

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Author: Hank Klinger

BitMEX Jokingly Jabs at Binance on Plagiarizing Its Documents For a Futures Trading Platform

The most recent spat between crypto exchanges happened between BitMEX and Binance. According to BitMEX, people from the other exchange plagiarized some content from documents had created.

BitMEX decided to be sarcastic and congratulated the other platform for it. The tweet also affirmed that the company was glad that the people at Binance enjoyed the paper so much that they copied it.

The original document created by BitMEX was used for the testnet of the company’s futures platform. Now, Binance also used it for the testnet of its own futures platform.

Even the CEO of BitMEX, Arthur Hayes, commented on the occasion. He joked that people who plagiarize should at least make a small effort so it doesn’t seem so obvious that they are stealing content.

The CEO of Binance, Changpeng Zhao, had no alternative but to confess that it was their fault. According to him, it was their mistake and he did not read the documents from BitMEX himself, so this part was not spotted by anyone.

His reaction was seen favorably in social media and some people have even defended Binance, affirming that it was not such a huge sin because people are launching new products practically all the time. Hayes seemed to be ok with the answer, posting a friendly meme as the answer.

Now, Binance is set to continue the launch of its futures testnet platform. The company has launched not one, but two platforms. The main idea was that people from the community could vote on which platform they liked the most. The platform with more votes would end up being chosen as the official one when the test phase is over.

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Author: Bitcoin Exchange Guide News Team

Siberia: Bitcoin Mining Farms Are Flourishing Over A Ruined Industry

After the end of the Soviet Union and the economic fallout that happened in Russia, several industry facilities were abandoned. Now, cryptocurrency miners are giving these abandoned places a new breath of life by using them as mining farms.

Most of these platforms were built during the Cold War and were originally used for manufacturing. Now, the installations and the Bratsk hydroelectric station, which are set in Siberia, are being used for BTC mining.

Several mining companies have been using the legacy of the Soviet Union, the hydroelectric station, as a way to get cheap energy. As the industry is no longer strong in the region, it is really inexpensive to use it for mining.

Siberia also has a pretty cold climate, so it is becoming an important mining hub right now. Several companies from other countries are entering Russia in order to also be benefitted from this emerging market.

According to Dmitry Ozersky, the CEO of one of the now local mining companies, Eletro Farm, there is a huge surplus of power in Russia. The Soviet Union created a lot of power stations, but the economic crisis made several places shut down.

After the new system was enacted and the country got in its feet again, the issue was that no one wanted to use the surplus power. Eletro Farm has over 18,000 ASIC miners and, according to its executives, is one of the largest operations around.

Regions such as Siberia still have industrial activity, but there is simply not a huge demand for it anymore. This was seen by miners who decided to takeover. They bought these cheap factories and used cheap electricity to get high profits. With their help, the region is starting to get some of its former importance back.

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Author: Gabriel Machado

Troublesome Exchanges QuadrigaCX and Cryptopia See Users of Both Share Same Unfortunate Fate

Troublesome-Exchanges-QuadrigaCX-and-Cryptopia-See-Users-of-Both-Share-Same-Unfortunate-Fate

Two Of The Biggest Crypto Dramas Of 2019 Happened On The Exact Same Day

  • Both Cryptopia and QuadrigaCX shut down their withdrawals and froze transactions on January 14th.
  • Since then, both exchanges have filed for bankruptcy.

Coincidences happen all of the time, but there are a few coincidences that are too close not to draw a connection. That is exactly the case with QuadrigaCX and Cryptopia, according to a recent article from Decrypt.co. A few customers discussed their recent losses that they experienced in January, watching QuadrigaCX go under on the same exact day that Cryptopia’s hack happened.

The hack of Cryptopia has been well publicized, resulting in the loss of $16 million in both ETH and ERC20 tokens on January 14th. The exchange discovered the loss rather quickly, taking the exchange offline and stopping anyone else from making withdrawals. Unbeknownst to Cryptopia, Quadriga was announcing the passing of their CEO the month before, which was a strange enough situation on its own.

Quadriga had already been slow for quite some time, but the news of Gerald Cotten’s death coincided with the exchange completely freezing withdrawals. As all of this news hit, investors on both sides of these exchanges were take aback, losing so much in one day. One trader named Ida, who omitted her last name, said that she switched to her Cryptopia account after having troubles with Quadriga to pull her coins as soon as possible, but Cryptopia had already been hacked. With the fast-acting work of Cryptopia to shut down withdrawals, Ida was met with another roadblock. The story was the same with many other mutual traders.

QuadrigaCX did not come back from their freeze, deciding to file for creditor protection. The company ultimately decided to file for bankruptcy recently. Cryptopia worked with the authorities in an attempt to relaunch the platform in the middle of March this year, but it didn’t quite go as planned. After multiple attempts by the team to revive the platform with the right security measures, Cryptopia decided to shut down and file for bankruptcy in New Zealand less than two weeks ago.

Realistically, the fact that both of these exchanges met the beginning of their ends on the same day is probably just an unfortunate twist of fate. However, the lack of regulations in the crypto industry are likely the true culprit here, along with the lack of protection.

Cryptopia used to be a place for crypto traders to create a diverse home of converting to altcoins. The platform even listed 400 altcoins at one time, including HoboNickels and BeaverCoin. The year 2017 was a great atmosphere for altcoins, though the volume is rather low for these types of coins. By having such a lot volume, these altcoins tend to become organized “pump and dump” schemes, and Cryptopia ended up being a place for these altcoins.

However, since the exchanges could not actually get the banking needed, these altcoins were not actually available for purchase, and could only be purchased through an exchange that let users use fiat currency to buy Bitcoin. In an interesting turn of events, that was where Quadriga was technically connected with Cryptopia. They would allow for the purchase of these coins, and consumers could go back over to Cryptopia for the altcoins.

Another major issue was the lack of Know Your Customer (KYC) protocols with Cryptopia, which they did not require for NZ $5,000 ($3,270 USD). In May 2017, Cryptopia’s bank started to notice the issues when the exchange decided to launch a stablecoin that they pegged to the New Zealand dollar called NZDT. As a result, locals could purchase their Bitcoin from Cryptopia directly. As funds flew in and out of their bank accounts, Cryptopia’s bank worried that the funds could be used for illicit activities, like drug purchases from the Black market. When the bank decided to shut down their accounts by February 2018, Cryptopia sent out a notification to their users.

Between the banking problems of both Cryptopia and QuadrigaCX, combined with poor accounting of their own blockchains, the companies finally met their demise. On January 14th, both exchanges saw the first stage of failure. Though both have sought the help of the traditional financial system, there are still many former customers that just want their money back.

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Author: Krystle M