Archive for the ‘Crypto Corner – Bitcoin, ETC’ Category

New Zealand Becomes 1st Country To Legalize Payment Of Salaries In Crypto

Courtesy of ZeroHedge View original post here.

Bitcoin and other cryptocurrencies have been on a persistent upswing this year, but they're still pretty volatile. But during a time when even some of the most developed economies in the word are watching their currencies bounce around like the Argentine peso (just take a look at a six-month chart for GBPUSD), New Zealand has decided to take the plunge and become the first country to legalize payment in bitcoin, the FT reports.

The ruling by New Zealand’s tax authority allows salaries and wages to be paid in cryptocurrencies such as bitcoin from September 1, as long as the payments are in regular, fixed amounts. The digital currency of choice must also be pegged to at least one regular currency and must be able to be converted directly into a standard form of payment.

This makes New Zealand the first country to legally support payment in crypto. There are, however, some stipulations: In a bulletin dated Aug. 7, New Zealand’s Inland Revenue excluded self-employed taxpayers from earning incomes in cryptocurrencies, and added that some companies that choose to pay their employees in bitcoin or other crypto will be able to withhold tax under New Zealand’s 'pay as you earn' income tax scheme.

Crypto enthusiasts celebrated the decision on Twitter.

Move over kiwi — New Zealand becomes the first country to legalize salaries paid in cyrpto — would you want to get paid in bitcoin? via @financialtimes

— annmarie hordern (@annmarie) August 13, 2019

It's also notable that the decision to allow payment in bitcoin comes around the time that the RBNZ slashed its benchmark interest rate by 50 basis points, causing the kiwi to crater earlier this month. The RBNZ's board cited downside risks to inflation and jobs as its reason for the cut. The Kiwi is now near its weakest level against the dollar since 2015. Economists said the dramatic cut appeared to be an attempt by the bank to get out in front of a slowing global economy, since NZ's domestic economic data hardly necessitated such a dramatic action.

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Bitcoin Surges Back Above $10,000 As Fed Rate-Cut Looms

Courtesy of ZeroHedge. View original post here.

A weaker dollar (perhaps) and even more negative-yielding global debt are perhaps the two catalysts for the latest rebound in cryptos as Bitcoin bounces back above $10,000 after the weekend's plunge.

With Bitcoin cash leading the rebound and Ethereum retracing its losses for the week…

And as The Fed kicks off the global rate-cut bonanza, so we suspect Bitcoin will re-engage with the global volume of negative-yielding debt…

As Bitcoin offers, like gold, a hedge against the idiocy of policymakers.

Bitcoin Back Below $10,000 As Venezuela Sets New Crypto Volume Record

Courtesy of ZeroHedge. View original post here.

For the fourth time in a month, Bitcoin prices have tested back below the $10,000 Maginot Line this morning and the rest of cryptos are worse.

A sea of red…

Source: Coin360

Bitcoin is back below $10,000…

But Litecoin leads the week's losses…

CoinTelegraph's Suberg notes that the latest downturn marks a repeat of the breakdown seen in Bitcoin last week, which resulted in a recent low of $9,125. Now, as then, analysts welcomed the opportunity to buy up cheap coins.

“Wanting to see a push back up to the neutral area or resistance. If not, more 4 digit BTC to accumulate,” investor Josh Rager summarized in his latest daily price update, noting the importance of the $10,200-$10,350 range.

As Twitter user and Lightning Torch creator Hodlonaut noted, politics did not necessarily have a fairly-weighted impact on price action. One Congressman, he noted, had described Bitcoin as impossible to stop by any government.

“9 days ago Bitcoin had not yet been called an 'unstoppable force' in the U.S. Congress. Still, price was almost 30% higher than now. Some dips are tastier than others,” he wrote.

However, demand remains high elsewhere in the world, as CoinTelegraph's William Suberg details, Venezuelans traded more bolivars for Bitcoin  than ever before last week, but the statistics say more about fiat than cryptocurrency. 

image courtesy of CoinTelegraph

During that period, users on LocalBitcoins alone generated volumes of over 57 billion bolivars, beating the previous all-time high of 49 billion, which appeared in the previous week.

Weekly LocalBitcoins Volume (Venezuelan Bolivar) Courtesy of

As Cointelegraph reported, Venezuela’s currency continues to suffer from runaway inflation, which estimates claim has reached 10,000,000%, leading citizens to resort to alternative means of storing value. 

But there’s a catch

Yet as the bolivar count on Localbitcoins keeps growing, in Bitcoin terms, the number is falling. The 57 billion figure for last week equated to just 574 BTC — considerably less than in some previous weeks earlier this year. 

Underscoring the weakening bolivar, Venezuela’s cryptocurrency trading is not supported by the government, which also imposed embargoes on foreign currency. 

Earlier this year, the Lightning Torch transaction relay raised 0.4 BTC ($4,000) in funds among Bitcoin users for Venezuelans unable to escape the country.

Cryptos Suddenly Panic-Bid, Bitcoin Back Above $10k

Courtesy of ZeroHedge. View original post here.

Following further selling pressure overnight, someone (or more than one) has decided to buy-the-dip in cryptos this morning, sending Bitcoin (and most of the altcoins) soaring…

A sea of green…

Source: Coin360

Bitcoin surged back above $10,000…

Ethereum bounced off support at its flash-crash lows…

But Litecoin is outperforming on the day…

As CoinTelegraph notes, Bitcoin recovered more swiftly from its bear cycles than Amazon did during the boom and bust of the dot com era, data from crypto analytics firm Messari reveals.

Bitcoin’s 2019 breakout ‘extremely bullish’ by comparison

Fellow industry analytics firm Ceteris Paribus shared Messari’s findings in a tweet on July 17:

“The latest $BTC cycle mirrors $AMZN during the dot-com bubble, but the recovery has been much more swift. Even with the recent sell off, bitcoin is 54% down from its high, vs. the 85% Amazon was trading at over a similar timeframe.”

Bitcoin and Amazon ‘bubbles’ comparison, 2015-2019. Courtesy of Messari via @ceterispar1bus

In a further tweet, Ceteris Paribus argues that while the two assets are markedly different, they have both allegedly “traded on pure speculation” at different points in their histories. 

A comparison of the two reveals that Bitcoin’s breakout following crypto winter has been “extremely bullish” as compared with Amazon’s own tumultuous past, with Ceteris Paribus noting that the coin is “much further ahead than most people imagined in Dec. 2018.” 

Industry perspectives 

Interestingly, veteran trader Peter Brandt has this summer compared the likely fate of altcoins to the casualties of the dot com era, predicting that Bitcoin’s bull rally this will not extend to the cryptocurrency sector as a whole — unlike the historic rally of winter 2017. He remarked that:

“Following 2001-02 tech collapse, dotcoms with real value exploded. The ‘alt’ .coms went bankrupt.”

Meanwhile, Blockstream CEO Adam Back — the inventor of the hashcash proof-of-work (PoW) system later used in Bitcoin’s mining algorithm — has favorably compared the coin with earlier periods of innovation.

“Bitcoin has come much further and much faster than people expected,” he said. “There was a saying in the early dotcom era about ‘internet time,’and [...] bitcoin time [...] seems to be moving even faster.”

This April, Cointelegraph published an expert’s take on the so-dubbed Bitcoin bubble and its historical cousins — both the 17th century Tulip mania and the  dot-com bubble of 1999-2000.

Bitcoin Breaks Back Below $10k, Crypto-Crash Accelerates As Asia Opens

Courtesy of ZeroHedge. View original post here.

Update 2010ET: Having briefly stabilized after this morning's weakness, cryptos are tumbling once again as Asian markets open.

Bitcoin has broken below $10,000 again…

*  *  *

While all eyes are on Bitcoin as it slides back towards $10,000, the real mover in the last 12 hours has been Ethereum after flash-crashing around 545amET today.


Ethereum almost instantaneously collapsed from $262 to $192 before ripping back higher… but is now fading further…

It is unclear if any specific catalyst prompted this collapse but the move in Ethereum followed reports, as CoinTelegraph points out, that the Ethereum smart contract of 0x decentralized exchange (DEX) protocol has been suspended after a vulnerability has been uncovered in its code, the project’s team announced in a Medium post published on July 13.

Per the announcement, third-party security researcher samczsun warned the 0x team about the vulnerability in the exchange smart contract and, after evaluating it, the team suspended the exchange’s contract and the AssetProxy contracts.

The vulnerability would have allowed an attacker to fill certain orders with invalid signatures. The announcement reassures that one has exploited this vulnerability and no users have lost their funds.

But, we note that the only consequence is apparently a temporary suspension of the service.

Some have blamed President Trump's tweet for the slide in crypto but that seems a stretch at best

But we do note that, as Cointelegraph reported yesterday, a draft bill entitled “Keep Big Tech out of Finance” has surfaced online, allegedly from within the United States House of Representatives Financial Services Committee, which could have spooked some short-term traders.

Also the correlation between global negative-yielding debt (perhaps a proxy for how screwed up the world is) and cryptos is holding…

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Japanese Crypto Exchange Suffers $32 Million Hack

Courtesy of ZeroHedge. View original post here.

Authored by Marie Huillet via CoinTelegraph

Japanese crypto exchange Bitpoint has suspended all services after losing $32 million in a hack involving XRP, Bitcoin (BTC) and other cryptocurrencies.

In an official announcement on July 12, Bitpoint revealed that it had lost around 3.5 billion yen (~$32 million) — 2.5 billion yen (~$23 million) of which belonged to customers and 1 billion (~$9.2 million) to the exchange.

Courtesy of CoinTelegraph

Bloomberg reports that shares of Bitpoint’s parent firm Remixpoint Inc. shed 19% following news of the incident, and were untraded in Tokyo as of 1:44 p.m. “on a glut of sell orders."

Alongside XRP and Bitcoin, a total five different cryptocurrencies had been stored in the affected hot wallets, including Litecoin (LTC) and Ether (ETH).

The exchange’s cold wallets are not reportedly thought to have been compromised, Bitpoint’s announcement indicates.

As previously reported, the industry record-breaking hack of $534 million of NEM from Japan’s Coincheck exchange in January 2018 had been attributed to the fact that the coins were stored in a low-security hot wallet.

In 2019, May’s $40 million hack of top crypto exchange Binance has loomed large over the industry – at least eight crypto exchanges have been the target of large-scale hacking incidents in the first half of this year, most recently Singapore-based Bitrue.

All the hype around Libra is a red herring. Facebook’s main game is Calibra


All the hype around Libra is a red herring. Facebook's main game is Calibra

Calibra has little to do with the ideals behind blockchain. The digital wallet is more like a traditional bank account.

Courtesy of Priya Dev, Australian National University

Amid the hype around Facebook’s plan to launch its own cryptocurrency, Libra, there’s one big question. How is the company going to profit from it?

The project relies on developing blockchain technology. But blockchain’s whole raison d'être is to challenge the way corporate capitalism and businesses like Facebook make money.

Facebook has also established, with several dozen equally capitalistic partners, the Libra Association, a nonprofit organisation based in Switzerland, to spearhead the venture.

After years of copping criticism for questionable business practices, has Facebook decided to take an altruistic turn?

Probably not. It’s more likely that blockchain, and even Libra, is a means to a end; it’s about Facebook wanting to be not only the world’s biggest social media platform but also the globe’s go-to marketplace, putting Amazon, eBay, Apple and Google in the shade.

To appreciate why this suggestion isn’t also hyperbole, we need to talk not so much about Libra but its companion technology, the “custodial wallet” called Calibra.

Blockchain, but not blockchain

First, let’s do a quick recap of some fundamentals.

In 2008, a person or group calling themselves Satoshi Nakamoto proposed a method for transacting over the internet without a trusted third party such as a bank. It uses a distributed ledger known as a blockchain and cryptography to maintain a tamper-proof record of ownership of electronic cash – hence the term cryptocurrency.

Blockchain’s core innovation is to do away with the need for trusted entities like banks. So how do people safely send or receive cryptocurrency? Well, they can use a “cryptocurrency wallet”. A cryptocurrency balance is recorded against a blockchain address. Proving ownership depends on a secret code (or “private key”) known only to the owner. The “wallet” is essentially software that allows people to manage their private keys and authorise transactions.

Facebook has other ideas for its cryptocurrency. The Libra Association says it wants…
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President Maduro Orders The Bank Of Venezuela To Accept Petro Crypto

Courtesy of ZeroHedge

Authored by Adrian Zmudzinksi via,

Venezuela’s President Nicolas Maduro ordered the country’s leading bank, Banco de Venezuela, to accept the nation’s cryptocurrency, the Petro at all of its branches, the country’s Finance Ministry tweeted on July 4.

image courtesy of CoinTelegraph

According to the tweet, Maduro gave “the express order to open Petro desks in all the branches of the Bank of Venezuela.” The announcement apparently came during an event celebrating the tenth anniversary of the nationalization of the bank in question.

On June 19, Maduro announced that 924 million bolivars (over $92.5 million) were allocated to the Digital Bank of Youth and Students to open one million Petro wallet accounts for the country’s youth. José Angel Alvarez, president of the country’s National Cryptocurrency Association, commented to cryptocurrency news outlet CCN:

“It is a bold and correct decision to move forward towards a hybrid economy where the fiduciary currency of a country competes face to face with cryptocurrency.”

As Cointelegraph reported in January, Venezuela has taken issue with United States sanctions, including those levied specifically against transactions in the country’s national digital currency, the Petro. In March, President Trump banned US citizens from buying Petro.

In May, news broke that Venezuela is considering closing mutual trade settlements with Russia using the ruble.

Libra, Iran and the potential end of cryptocurrencies as we know them


Libra, Iran and the potential end of cryptocurrencies as we know them

Wit Olszewski / Shutterstock

Courtesy of Robert Herian, The Open University

Facebook’s new cryptocurrency, libra, is being heralded as the moment that cryptocurrencies and blockchain, the technology that supports them, become truly mainstream. A notable rise in the price of bitcoin and many other cryptocurrencies in the run up to the libra announcement on June 18, and since, suggests a market directly responding to this possibility and bolstered by it.

Of course, the price of bitcoin is known to rise and fall sharply on a fairly regular basis. Yet there is no doubt that having one of the world’s largest and most influential corporations throwing its weight behind the technology will calm nerves and build confidence.

More importantly, it gives legitimacy to the idea that cryptocurrencies and blockchain are here to stay. And, as I have argued in my research, must be taken seriously, not least by regulators.

In the same moment the world is introduced to libra, tensions between the United States and Iran continue to grow, with President Donald Trump increasing US sanctions against Iran. The two are not directly connected, but libra (or other cryptocurrencies) could offer Iran a route round its sanctions. This, of course, is not something Facebook intends – but Iran’s interest in cryptocurrencies could have a serious influence on libra’s future.

A troubled past

In their contemporary forms, bitcoin and blockchain have been around for roughly ten years. In this time cryptocurrencies have proliferated wildly. According to the cryptocurrency platform, CoinMarketCap, there are now at least 2,248 different kinds of tokens. Many of these are actively and enthusiastically exchanged and traded by a growing number of people.

The recent history of cryptocurrencies, and bitcoin specifically, has not been all that positive. Famously, in 2013, the illicit darknet marketplace Silk Road was shut down following an FBI investigation. The site’s founder, Ross Ulbricht, was imprisoned for life. Silk Road users relied heavily on bitcoin to ensure anonymity, and the libertarian ethos underpinning bitcoin appeared to fit well with Silk Road’s rejection and evasion of authority and…
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Bitcoin Creates Monster Bearish Reversal Pattern

Courtesy of Chris Kimble.

The chart looks at Bitcoin on a weekly basis over the past 6-years. The long-term trend remains up, as it continues to create higher lows inside of rising channel (1. This pattern has been taking place since the 2013 lows.

We applied Fibonacci retracement levels to the 2017 highs and 2018 lows. The rally off the 2018 lows saw Bitcoin hit its Fibonacci 50% retracement of the large decline.

While testing the key Fibonacci retracement level, it created a large bearish wick pattern (Bearish reversal pattern) at (2), while attempting to close above the 50% level.

In the short-term, it looks to be very important that Bitcoin remains above rising support at (3). If this support would fail to hold after this large bearish reversal pattern, odds increase that it will experience some selling pressure in the short term.

To become a member of Kimble Charting Solutions, click here.


Phil's Favorites

What is an inverted yield curve? Why is it panicking markets, and why is there talk of recession?


What is an inverted yield curve? Why is it panicking markets, and why is there talk of recession?

Markets know what has happened each time the yield curve has turned negative. The idea of a negative curve without a a recession would take some getting used to. Shutterstock

Courtesy of Mark Crosby, Monash University

Since President Trump tweeted about imposing new tariffs on China, global equity markets have gone into a tailspin.

Trump’s more recent announcement that the new tariffs would be ...

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Zero Hedge

Morgan Stanley: "The Global Economy Is Deteriorating Faster Than Offsetting Policy Action"

Courtesy of ZeroHedge View original post here.

Sunday Start, submitted by Jonathan Garner and James Lord of Morgan Stanley

As regular readers know, Morgan Stanley is pretty bearish on global risk assets. This applies to emerging markets (EM) too, where we've been calling for wider credit spreads, weaker EM currencies, particularly in Asia, and lower equity prices. However, not so long ago the narrative guiding investors ran something like this: The Fed was ahead of the curve, EM bond yields looked attractive in a world of negative interest rates and a US-China trade deal seemed within reach...

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The Technical Traders

Negative Yields Tell A Story Of Shifting Economic Leadership

Courtesy of Technical Traders

Negative yields are becoming common for many of the world’s most mature economies.  The process of extending negative yields within these economies suggests that safety is more important than returns and that central banks realize that growth and increases in GDP are more important than positive returns on capital.  In the current economic environment, this suggests that global capital investors are seeking out alternative solutions to adequately develop longer-term opportunities and to develop native growth prospects that don’t currently exist.

Our research team has been researching this phenomenon and how it relates to the continued “capital shift&rdq...

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Insider Scoop

Heavy Volume Drives Low-Float Stock Plus Therapeutics Up 200%

Courtesy of Benzinga

Plus Therapeutics Inc (NASDAQ: PSTV) is the latest and one of the most extreme recent examples of the powerful combination of low float and heavy trading volume.

Plus shares traded higher by more than 215% on Friday. The biotech stock more than tripled after the company reported ... more from Insider

Lee's Free Thinking

Long Term Stock Market Chart Perspective

Courtesy of Lee Adler

After a big day like yesterday, I like to get a little long term stock market chart perspective. (Yes, this stilted verbiage is for search engine optimization ).

We do that with a monthly bar chart, which I update when relevant in Lee Adler’s Technical Trader. That’s in addition to the regular daily bar/cycle charts covering the past year, and a weekly cycle chart covering the past 4 years.

I wrote on July 14, in reference to the price and indicator patterns on the weekly chart:

The market has overshot a 3-4 year cycle projection in terms of both price and time. There are no long term projections. A 4 year cycle high is ideally due now. A 4 ye...

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Kimble Charting Solutions

S&P About To Decline 14%, Catching Up With The Crude Oil Declines?

Courtesy of Chris Kimble

This chart looks at the performance of the S&P 500, Crude Oil and the Yield on the 10-Year note over the past 4-months.

Crude Oil has declined around 14% more than the S&P during this time frame. Yields have declined, even more, around 36%. The is a huge spread between these assets over this short of a time period.

A few importa...

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Chart School

Bitcoin 2019 fractal with Gold 2013

Courtesy of Read the Ticker

Funny how price action patterns repeat, double tops, head and shoulders. These are simply market fractals of supply and demand.

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Ref: US Crypto Holders Only Have a Few Days to Reply to the IRS 6173 Letter

Today's news from the US IRS has been blamed for the recent price slump, yet the bitcoin fractal like the gold fractal suggest the market players have set bitcoin up for a slump to $9000 USD long before the IRS news hit the wire.

Get the impression some market players missed out on the b...

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Digital Currencies

New Zealand Becomes 1st Country To Legalize Payment Of Salaries In Crypto

Courtesy of ZeroHedge View original post here.

Bitcoin and other cryptocurrencies have been on a persistent upswing this year, but they're still pretty volatile. But during a time when even some of the most developed economies in the word are watching their currencies bounce around like the Argentine peso (just take a look at a six-month chart for GBPUSD), New Zealand has decided to take the plunge and become the first country to legalize payment in bitcoin, the FT reports.

The ruling by New Zealand’s tax authority allows salaries and wages to b...

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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:


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DNA testing companies offer telomere testing - but what does it tell you about aging and disease risk?

Reminder: We're is available to chat with Members, comments are found below each post.


DNA testing companies offer telomere testing – but what does it tell you about aging and disease risk?

A telomere age test kit from Telomere Diagnostics Inc. and saliva. collection kit from 23andMe. Anna Hoychuk/

Courtesy of Patricia Opresko, University of Pittsburgh and Elise Fouquerel, ...

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Members' Corner

Despacito - How to Make Money the Old-Fashioned Way - SLOWLY!

Are you ready to retire?  

For most people, the purpose of investing is to build up enough wealth to allow you to retire.  In general, that's usually enough money to reliably generate a year's worth of your average income, each year into your retirement so that that, plus you Social Security, should be enough to pay your bills without having to draw down on your principle.

Unfortunately, as the last decade has shown us, we can't count on bonds to pay us more than 3% and the average return from the stock market over the past 20 years has been erratic - to say the least - with 4 negative years (2000, 2001, 2002 and 2008) and 14 positives, though mostly in the 10% range on the positives.  A string of losses like we had from 2000-02 could easily wipe out a decades worth of gains.

Still, the stock market has been better over the last 10 (7%) an...

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Free eBook - "My Top Strategies for 2017"



Here's a free ebook for you to check out! 

Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

Some other great content in this free eBook includes:


·       How 2017 Will Affect Oil, the US Dollar and the European Union


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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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