Analyst Reveals Four Charts That Show Anything is Possible in 2020

“The market does what it wants, when it wants to do it,” wrote Charlie Bilello, founder, and CEO of Compound Capital Advisors.

Bilello recently shared how in 2020, we have seen a “lifetime supply of material,” the things that the market hasn’t been expecting.

It has been the “real-time personification of collective human psychology, with fear and greed on full display,” that provided us with bizarre results. The crypto market is not new to such kind of happenings, but sometimes, even the crypto space manages to surprise.

We saw retail investors paying more than 735% premium to gain exposure to the second-largest cryptocurrency by market cap. Although the premium on Grayscale Ethereum Trust has collapsed since then, it remains particularly high with ETHE at over $70 (each share represents 0.09377463 ETH) while Ether is trading at $244.

However, things were even more bizarre in the mainstream market. If you thought “stocks can’t go up during recession,” you have been proved wrong when stocks rallied hard in Q2 of 2020.

After crashing in March, stocks jumped, Nasdaq climbed to make a new all-time high. The tech stocks were mainly responsible for this as while Apple and Amazon saw their valuation rising more than $10.5 trillion, Tesla has been up 230% YTD.

Even stocks of those companies that went bankrupt saw substantial gains. And Nicola Corp. garnered a market cap of $26 billion with zero sales or earnings.

Not only stocks rallied hard, the terms “oversold,” or ”at support” and “overbought” or “at resistance” lost their meaning.

These stocks were driven by all the free money pumped by the central banks. If you thought the Fed was “out of bullets” and won’t do anymore, the central bank proved wrong through unprecedented measures, which now has many experts warning about the inflation.

The Fed’s balance sheet entered 2020 at around $4 trillion, only to surpass $7 trillion in late May.

But 2020 didn’t only see the stocks skyrocketing but also plunging into nothingness and then continuing to go lower.

Can asset prices go below $0, this year showed us that yes they could. In April, the price of crude oil went negative for the first time. At that time, May futures for US crude oil WTI fell to minus $37.63 a barrel. (can Bitcoin fall to zero?)

The oil market saw its worst crisis in a generation where traders were willing to pay to get somebody to take crude off their hands after the lockdown to stop the spread of coronavirus pandemic wiped all the demand while the market was over-supplied.

Moreover, this year the national debt continued to rise to new highs while the interest rates on some US Treasuries also plunged into negative territory.

There are still five and a half months left in 2020, and the government is planning to put more money into the system while inflation has started to be seen in goods prices, and the recession has been declared.

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Author: AnTy

BCH Hash Rate Taken Over by Unknown Miner with 50% Control for Full 24 Hours

  • It is unclear if the 50% control was the result of the work of one or multiple miners.
  • Some proponents believe that this ability points to an issue with security and liability with Bitcoin Cash.

In the cryptocurrency industry, every platform thrives on a lack of majority control. Decentralization relies on this idea, as it allows the industry to remain free and unregulated. However, a recent article by Cointelegraph points out an issue with the Bitcoin Cash hash rate, which was in control of 50% of the hash rate for a total of 24 hours.

From 10:00am on October 24th to 10:00am on October 25th, the miner appeared to mine 73 blocks. Notgrubles, a crypto Twitter user, stated that this action is proof that “BCH is a security risk and liability,” and that the coin should be delisted.

With this level of control, the miner, or miners, cannot be far from having control of the entire network. One of the crypto proponents on Reddit suggested that this type of control would lead the miner to do “nefarious things.” Another Redditor – Bitmeister – stated that it is more likely that Bitcoin miners are trying to experiment with their BTC hash power by directing their attention to BCH.

Bitcoin’s network hash rate recently had a major dip of 40% at the end of September, which is still unexplained at this point. Considering the massive highs that Bitcoin experienced in their hash rates over the summer, this drop was even more surprising. Cointelegraph even reported that the hash rate passed 102 quintillion hashes, which was a major milestone for the digital asset.

With a higher hash rate comes greater competition to mine new blocks. At the same time, it increases the resources that would be required for a 51% attack, which secures the network.

Along with the sudden rise in Bitcoin’s price, Bitcoin Cash is also seeing some success, though the value of the token has declined since then. At the time of writing, the token was down by 2.45% with a value of $250.12 per BCH.

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Author: Krystle M

Kudelski Security Announces New Insecure Blockchain ‘FumbleChain’ to Teach Hackers About DLT

Kudelski Security Announces New Insecure Blockchain 'FumbleChain' to Teach Hackers About DLT

It is a pretty commonplace idea to think that blockchain technology means protection. Unfortunately, this idea could not be further apart from the truth. Despite the supposition of security, blockchains with exploits can be dangerous for everyone involved.

This is why Kudelski Security has recently announced that it will launch a new blockchain without deliberate flaws. The new project is set to be launched during the Black Hat USA infosec, according to The Next Web’s Hard Fork.

The convention, which is set to happen in Las Vegas, will see the launch of FumbleChain. The whole idea is that the network will be easy to exploit so that hackers can play and try to destroy it.

FumbleChain will have its own “e-commerce” app, FumbleStore, which will serve as a “capture the flag” game. These are games in which hackers compete to try to break into something.

Don’t mistake this idea for actual support for criminals, though. The idea is to educate the “good hackers” on how to exploit decentralized systems in order to find flaws in an easier way and fix them quickly before the “bad hackers” get at it and steal people’s money or information.

According to Nathan Hamiel, the head of cybersecurity at the company, there is a common error in which people think that blockchains are inherently safe when they are not. The technology, in his opinion, is very nuanced and complex, and it is quite easy to create breaches if you are not careful. Because of this, you simply can’t blindly trust it.

While it may seem strange to non-hackers, this kind of approach is actually very common. Many broken apps are released in competitions so that people can try out their skills.

The blockchain will be created using Python as the programming language, mostly because it is considered very easy to manipulate and this will make it easier for the participants to break in and modify the source code of the blockchain.

As soon as some of the hacking challenges proposed by the company are done, more will be added. This will keep the blockchain live for some time while people are trying out their skills.

Kudelski Security has affirmed that the app will also be available as a code repository on GitHub in case someone wants to download and check out the code.

There is only warning, though. According to Kudelski, if you run the program, you might end up putting your own computer at risk. This happens because the software is notoriously broken, so you really should know what you are doing if you want to be a part of this initiative.

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Author: Gabriel Machado

Palestinian Government to Possibly Demolish the Israeli Shekel and Introduce Crypto

Palestinian-Government-to-Possibly-Demolish-the-Israeli-Shekel-and-Introduce-Crypto

It has been revealed that yet another government will be considering the likes of cryptocurrencies in place of an already-established national currency. In particular, this involves the Palestinian government’s plans to possibly demolish the Israeli Shekel reports Al-Monitor.

Said news was publicly announced on Tuesday, July 9, 2019, where the Palestinian Prime Minister, Mohammad Shtayyeh noted that the reason for considering cryptocurrencies stemmed from the obstacles that arose from the use of the national currency to the Palestinian economy.

Shtayyeh appears to be keen on this decision, reiterating since Saturday, April 13, 2019, that nothing can be a hindrance of such plans. He also noted that despite the billions of shekels in circulation,

“we’re not forced to remain dependent on the shekel.”

Amidst Possible Crypto Adoption, Is It Truly Feasible?

While the news is a big move, as more and more countries consider alternatives to their national currencies, arguments have been made against executing made plans. It has been emphasized that a national cryptocurrency is not

“economically feasible.”

The news outlet has referenced an economic and social sciences professor based in Nablus, Bakr Shtayyeh, who does not think such moves are feasible for Palestine. Here are some of the concerns that have been expressed:

“If Palestine has its own currency, will it be able to prevent Israel from withholding tax clearance funds or controlling crossings and the movement of exports and imports? Will Palestine be able to conclude direct commercial deals with neighboring countries without the imported or exported goods passing through Israeli commercial ports?”

He further noted that the problem doesn’t rest in the national currency itself, but more so on the

“complex economic and political reliance on Israel.”

Israel and Palestine Relation to Prevent Crypto Adoption?

The economics professor believes that this endeavor could induce problems between Israel and Palestine. Some of which include Israel’s probable distaste for dealing with another currency and a rise in political tension. The latter alone could potentially devalue the cryptocurrency, which may defeat the main purpose behind considering its likes for economic gains.

Concerns Regarding Cyberattacks Disclosed

The professor further addressed the role of the Palestinian Authority (PA) needs to assume. In particular, he shared that an assessment needs to be done on the cryptocurrency to ensure that it can maintain a stable value.

With this being said, another area with concerns involves that of hacks and damages that could be achieved by Israel if political tension rises. That is,

“Is the PA capable of repelling cyberattacks and cyberpiracy that Israel could launch against the Palestinian cryptocurrency, especially since Israel is advanced in the field of software development?”

On the whole, Bakr Shtayyeh doesn’t think to issue cryptocurrencies as being impossible, but rather believes that there will be a lot of difficulties in making it happen. On the whole, Palestine needs to be considered with respect to the role it plays as a “consumer country” along with what the decision means for the national currency and economy.

As for the overall nature of the cryptocurrency, the Prime Minister supposedly did not share any specs. However, news outlet AA quoted him stating the following (closest possible translation):

“We are working to transform e-government into a reality that citizens feel,”

adding that more work needs to be done in,

“the preservation of information in official institutions,”

given that,

“the infiltration of information is part of the Israeli war on the Palestinian Authority.”

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Author: Nirmala Velupillai

Telegram and Lantah Dispute Over GRAM Crypto Trademark, Telegram Takes Home Injunction Win

Telegram and Lantah Dispute Over GRAM Crypto Trademark, Telegram Takes Home Injunction Win

It has been recently revealed that cloud-based instant messaging service provider, Telegram and blockchain-based commerce platform, Lantah have been in dispute over who gets the rights to the name, ‘GRAM’ for their respective crypto token reports The Block.

Telegram is supposedly demanding the latter from using the aforementioned name, which led to the involvement of the district court (a lower court) and their issuing of “a preliminary injunction,” which prevents Lantah from using the name.

As per Lexology, Telegram made the following argument at the time of their complaint (which was found in paragraph 43):

“Lantah’s unauthorized use in commerce of a service mark that is confusingly similar to Telegram Messenger’s GRAM mark has caused and is likely to continue to cause confusion or mistake, or to deceive consumers and potential consumers, the public, and the trade concerning an affiliation, connection or association between Lantah and Telegram where there is no such affiliation, connection or association.”

The Block covered the specifics as to why the Ninth Circuit was part of all this. It turns out that Lantah’s lawyers appealed the district court’s granting of the preliminary injunction by having the Ninth Circuit court (higher court) evaluate the decision prior to arriving to a conclusion.

In the case of the presence of the latter, it is usually considered a step toward the Supreme Court with a panel of judges versus just one from the district court. The final judgement? The circuit court has since sided with the district court by disclosing that Telegram’s use of ‘GRAM’ was acceptable.

Here are some of the reasons why Telegram’s uses of the trademark were deemed acceptable and why the district court’s decision towards the preliminary injunction was supported:

  1. During the ICO, Telegram provided purchasers with “Purchase Agreement for Grams” in which buyers were required to make the necessary payments by a set date to receive the GRAMS.
  2. Evidence exists in relation to Telegram’s plans of distributing GRAMS

[Author Alert] The author’s opinions above are solely based on their own self-conducted research. Assume any and all authors are using, holding, trading and/or buying cryptoassets mentioned as a portion of his or her financial portfolio. Use information at your own risk, do you own research, never invest more than you are willing to lose.

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Author: Nirmala Velupillai

Wall Street Analyst Dan Dolev Is Bullish On Jack Dorsey’s Undervalued Square Cash Payment App

Wall Street Analyst Dan Dolev Is Bullish On Jack Dorsey's Undervalued Square Cash Payment App

It is rare when analysts that are used to watching Wall Street business appreciate crypto-based businesses.

But we’ll take it when it comes. Dan Dolev of Instinet recently had some good words in favor of Jack Dorsey’s Square.

Square markets several software and hardware payments products and has expanded into small business services. The company was founded in 2009 by Jack Dorsey and Jim McKelvey and launched its first app and service in 2010. It has been traded as a public company on the New York Stock Exchange since November 2015 with the ticker symbol SQ.

Dan thinks that the current value of Square stock, which is currently around $74 is a steal and should be worth around $100. This means according to him, the stock is worth 33% lesser than it should be.

Square has had great timing: investors have been eagerly buying payment company stocks, encouraged by the mega-shift toward online commerce and electronic transactions.

Dorsey really thinks that cryptos are the future of finance. Earlier when asked about this topic in an interview with QZ, he said:

“As we bring more people online, we can also imagine a trend in parallel where they all have access to the same currency, and there are still conversions to a local currency like the pound, but being able to have one currency really takes away some of the barriers of the past and how we think about global markets. And having a global currency that is native to the internet will allow companies like ours to move much faster and reach a lot more people.”

On May 1, Square forecast second-quarter earnings per share of 14 cents to 16 cents, below analysts’ average estimate of 18 cents. But it expects revenue in the range of $2.25 billion – $2.28 billion, above its previous forecast of $2.22 billion – $2.25 billion. Square will keep re-investing its profits back into its business.

Its investments in the software will increase its customer base, as changes in its software will heighten the experience of all its customers.

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Author: Sritanshu Sinha

Bitcoin Is Outperforming Assets Over a 100-Years-Old With Still So Much Upside to Manifest

Bitcoin Is Outperforming Assets Over a 100-Years-Old With Still So Much Upside to Manifest

It is no secret that Bitcoin is one of the hottest assets in the world since April. It is faring better than almost any other non-crypto asset in the world and not a lot of altcoins are able to follow it, with some exceptions as Binance Coin (BNB) being the only ones.

Now, an old-school trader known as Peter Brandt has talked about why he is investing in Bitcoin. According to him, the BTC market is currently the best market ever seen.

On a chart, he compared Bitcoin lows, highs and its advancement with some other assets such as gold, which is 100-years-old. Gold only has a 93-fold in 100 years while Bitcoin has a 9,765-fold in only ten.

While the cryptocurrency has been subject to boom and bust cycles, the truth is that its prices are always higher when you compare them to four years before. The token went from almost nothing in price to over $19,500 USD. Now, the prices may be lower than they were before, but this is no reason to simply ignore all the potential that BTC has.

Even the Dow Jones Industrial Average has a fold of 873, which is smaller than Bitcoin’s performance from 2011 to 2017 alone.

If you invested in gold in the last three years, you would have only got a return on investment of 6.44% but if you invested in Bitcoin instead, the returns would be 330%.

This shows that there is simply no other way to explain it: Bitcoin is the ultimate investment. You will be obviously better off by holding it than you would be if you choose to invest in almost any other non-crypto asset in the market.

Bitcoin’s price is $9,544.22 BTC/USD exchange rate today. The real-time BTC market cap of $169.61 Billion currently ranks #1 with a chart dominance at 57.81%, daily trading volume of $6.09 Billion and live coin value change of BTC 2.80 in the last 24 hours.

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Author: Gabriel Machado

CNBC’s Ran NeuNer Calls Facebook CEO An “Unelected Dictator” Only to Bash GlobalCoin Project

CNBC’s Ran NeuNer Calls Facebook CEO An “Unelected Dictator” Only to Bash GlobalCoin Project

It looks like CNBC’s Ran NeuNer, a prominent comentator on the crypto economy, has finally decided to agree with a large part of the crypto community: Facebook’s GlobalCoin project can certainly be a very dangerous move for the world.

Facebook’s GlobalCoin project received over $10 million USD in investments from high-profile backers such as PayPal, Uber, Visa and Mastercard, so we have all the big ones betting on it. Why is NeuNer so worried now?

While a lot of people are excited about the new project, some diehard crypto fans are concerned about the lack of decentralization in the project for a long time.

NeuNer Changed His Mind About The Project Recently

NeuNer, who is the host of the CNBC crypto show called Crypto Trader, was initially very excited about the project. He was not the only one. Even within the crypto community, a lot of people got hyped because this was a big project and they thought that it could put crypto on the mainstream forever.

He originally affirmed that the idea that a single company could enable 2 billion people to make transactions across borders using low transaction fees was amazing and it could cause the “most exciting financial revolution” the world has ever seen.

Fortunately, someone probably talked to him and explained just how bad Facebook and its CEO Mark Zuckerberg can be. Soon, he understood that it was, in fact, very dangerous for people to trust Facebook so blindly as he did.

He later affirmed that the project was, indeed, scary. According to him, the idea of a company with the largest user base of the whole world being able to launch its token and allow transactions was not so fun anymore when you remember that Zuckerberg is in charge.

NeuNer affirmed that Facebook will have more users on its platform that USD has, so he believed that Zuckerberg had the power to become an unelected dictator. He is unrestrained, has made several bad decisions before and has full control over his board of directors.

With a man like this in charge, GlobalCoin could be maybe even too powerful and very centralized in a single figure who cannot even share the power with his own colleagues. And some people still believe that GlobalCoin will help Bitcoin.

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Author: Gabriel Machado

Whale Panda Calls Out Kin Foundation For Its “Defend Crypto” Movement as Others Chime In

Whale Panda Calls Out Kin Foundation For Its “Defend Crypto” Movement as Others Chime In

It is no secret to all that know the crypto world that some companies are struggling a lot to defend their businesses after they started to be chased by regulators. In the United States, a very important battle is being fought by several companies and the U. S. Securities and Exchange Commission (SEC).

However, not all the companies battling the SEC in order to keep its products alive are being very well received by the community. For instance, the Kin Foundation, which is behind the Kik app, has started a movement in order to fight the SEC and “defend crypto”. This movement has been very criticized lately.

Kin, the crypto services created by Kik, had an unregistered Initial Coin Offering (ICO) back in 2017 in which the company was able to raise $100 million USD, quite a high amount. After that, the SEC went to the company to sue it for offering unregistered securities. While some have defended the company, Whale Panda, a very prominent crypto influencer called them out.

According to Whale Panda, these movements to “defend crypto” are not legitimate. The company did a very shady ICO which was obviously a security token and they got caught by the SEC. Since then, negotiations are not pretty. Now, he affirmed, the company is set to use other shady ICOs to pressure the SEC.

He also affirmed that the allegation of Ted Livingston that more people were using Kin than any other crypto in the world was actually fake and people made fun of the company’s defensor online after that.

An attorney named Josh Lawler also voiced his opinion today and affirmed that the SEC will end up losing the case even if they win. According to him, the SEC exists only to protect “main street” investors. If the SEC winds against Kik, they will hurt the investors that they are trying to protect in the first place.

Circle, however, tweeted announcing some vague support for the so-called movement. The company affirmed that it was with the Kin Foundation because they struggled to make cryptos flourish in the United States like many other companies in the industry.

Most of the personalities on Crypto Twitter were not so generous, though. Jeremy Rubin, Riccardo Spagni and others affirmed that they did not sympathize with the movement at all.

Rubin even tweeted a “hot take”, in which he affirmed that the whole “defend crypto” movement was very sickening because cryptos were not under attack, only shady business practices. Kin was probably a security token in his view, so it made sense that the SEC decided to reject it.

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Author: Gabriel M