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

Bitcoin Soars $1000 Off The Lows After G-20 Rejects Crypto Crackdown

Courtesy of ZeroHedge. View original post here.

While advertising bans and Mt.Gox Trustee overhangs remain, the FUD of a possible global regulatory crackdown in the G-20 Communique was a major driver of this weekend's weakness… until Les Echos confirms FSB has rejected calls for regulation.

After headlines suggesting a global crackdown on cryptocurrencies spooked the markets on Friday, Reuters reports that the global watchdog will pivot more toward reviewing existing rules and away from designing new ones, resisting calls from some G20 members to regulate cryptocurrencies like bitcoin.

The reaction was immediate as a relief rally – on heavy volume – sent Bitcoin $1000 higher, erasing Friday's losses…

Interest in cryptocurrencies surged last year as prices rocketed only to tumble in recent months, triggering warnings from regulators. But in a sign of too little consensus for radical action, Reuters reports that the FSB said more international coordination was needed to plug data gaps in monitoring the rapidly evolving but still tiny sector worth less than 1 percent of global GDP at its peak.

“The FSB’s initial assessment is that crypto-assets do not pose risks to global financial stability at this time,” FSB Chair Mark Carney said in a letter to G20 central bankers and finance ministers who will meet in Buenos Aires on Monday and Tuesday.

All major cryptocurrencies are rallying on the news…

What Google’s Ban For Crypto Ads Really Means

Courtesy of Nicholas Colas of DataTrek Research

The recent news that Google will not allow advertising of cryptocurrencies is a good reason to revisit the fundamental drivers that predict bitcoin price trends. Google searches and bitcoin wallet growth continue to slow in 2018, which is all you need to know about the near term direction of the asset. But while Google’s move may slow future adoption rates, plenty of other banned items (drugs, hacking software, counterfeit goods, etc.) still manage to flourish. An imperfect set of comps, to be sure, but still relevant to the discussion.

There are only 4 things Google doesn’t allow you to advertise on its search engine platform:

  • Counterfeit goods.
  • Dangerous products or services, like recreational drugs, weapons, ammunition, explosives and fireworks, and tobacco products.
  • Anything that enables dishonest behavior, such as hacking software, services to artificially inflate web or ad traffic, fake documents or academic cheating.
  • Inappropriate content, like hate speech or ads that use profane language
  • Source:

As of June of this year, you can add one more: anything about cryptocurrencies like bitcoin. The prohibition is actually quite broad: “Cryptocurrencies and related content (including but not limited to initial coin offerings, cryptocurrency exchanges, cryptocurrency wallets, and cryptocurrency trading advice).” Frankly it is hard to blame Google, or Facebook (which put a similar ban into place recently), for the move given the level of fraud and deception in the space. The phrase “Goat rodeo” comes to mind except goats are, at least, cute.

Bitcoin’s price has been hit on the news, and for good reason: its value correlates well with the growth in the number of wallets that store the crypto online. Less advertising for bitcoin-related services may slow new wallet growth, which has already declined from its peak last year. A few numbers:

Google search trends for “bitcoin” – our preferred leading indicator for wallet growth – shows a similar decline in 2018. Our…
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Bitcoin Battered To Fresh Lows After Twitter Joins Crypto Ad Ban

Courtesy of Zero Hedge

Facebook started it – banning crypto/ICO ads on Jan 30th, then came Google – copying Facebook's ban on March 14; and now, less than a week later, Twitter is virtue-signalling support for the crypto-crackdown, planning its own ban on ads.

image courtesy of CoinTelegraph

Sky news reports  that Twitter is preparing to prohibit a range of cryptocurrency advertisements amid looming regulatory intervention in the sector.

The microblogging platform is following similar moves by Facebook and Google which have restricted financial advertisements due to concerns about illicit activities.

Sky News understands that the new advertising policy will be implemented in two weeks and currently stands to prohibit advertisements for initial coin offerings (ICOs), token sales, and cryptocurrency wallets globally.

The reaction was swift, just as we have seen to the other crypto ad bans… smashing Bitcoin back below $7500 (into mystery-dip-buyer territory)…

But Ethereum and Ripple have been the worst performers since the crypto ad bans began…

Reportedly, Twitter has experienced an influx of fake accounts pretending to advertise cryptocurrency giveaways, often by users posing as famous crypto sphere personas like Litecoin’s Charlie Lee.

“We’ve Been Hearing A Lot Of Complaints” – City Passes First US Bitcoin Mining Ban

Courtesy of Zere Hedge

In sleepy upstate New York, one small post-industrial city has adopted what's widely believed to be the first bitcoin mining ban in the US. On Thursday evening, the city council in Plattsburgh New York voted unanimously to impose an 18-month moratorium on bitcoin mining, per Motherboard.

As we pointed out earlier this month, two large-scale bitcoin mining operations in the town had become a tremendous drain on the local utilities. This is a problem because, according to the Municipal Electric Utility Association, since the 1950s, the city is allotted a certain amount of inexpensive hydropower generated on the St. Lawrence River. Bitcoin miners are often drawn to areas with inexpensive hydro-power, like the Columbia River basin in the Pacific Northwest.

Mining is the extremely energy-intensive computational process that secures the Bitcoin blockchain and rewards miners with bitcoins, and increasingly, environmentalists are worried that the tremendous amount of energy required to power the bitcoin network could adversely impact the environment. Already, the bitcoin network uses more energy on a daily basis than many countries, including the Republic of Ireland…


The Bitcoin moratorium was proposed by Plattsburgh's Mayor Colin Read earlier this month after local residents began reporting wildly inflated electricity bills. But unfortunately for residents, the moratorium affects only new commercial Bitcoin operations and will not affect companies that are already mining in the city.

"I’ve been hearing a lot of complaints that electric bills have gone up by $100 or $200," Read said. "You can understand why people are upset."

Thanks to a hydroelectric dam on the St. Lawrence River, Plattsburgh has some of the cheapest energy in the US – its mayor claims it's among the cheapest electricity in the world.


Residents pay only 4.5 cents per kilowatt-hour (the US average is a little over 10 cents). Industrial enterprises, including Bitcoin mines, pay even less, often just 2 cents per kilowatt-hour.

But there's a catch: The problem is that Plattsburgh only has an allotment of 104 megawatt-hours of electricity per month. The biggest Bitcoin mining operation in Plattsburgh, operated by a Puerto Rican company called Coinmint, uses roughly 10% of the city’s
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Bitcoin: Bubble Or Hyperdeflation?

Courtesy of ZeroHedge. View original post here.

Bitcoin flew too close to the sun. Now the eyes of the world are upon the crypto market, with all the consequences that follow…

“30th anniversary of Black Monday, when markets dropped 23% in a day. In crypto we just call that Monday."

- Alexander Tapscott

But, as Incrementum's Demelza Hays and Mark J. Valek show in their latest magnificent Crypto Research report, it all happened as it always has.

Bitcoin reached an all-time high and then predictably it fell again. All common stages of the classic bubble were accounted for: euphoria, infatuation, denial, fear, desperation.

When Bitcoin fell under $7000 and the market capitalization of the whole sector halved, the funeral preparations by nay-sayers were already underway. The fact that cryptocurrencies have already survived five such bubbles, as the brilliant analysis by Michael B. Casey shows, is dutifully ignored by said grave diggers…

In general, we are talking about old-school economists who said it from the start: Bitcoin is a scam.

We strongly disagree: This initial scam phase is part of the Wild West stage of any new unregulated market, and Bitcoin and the blockchain have simply a maturing process ahead of them to weed out the bad seeds. In this respect, the crash of the past months is to a certain extent desirable because it is cleansing the market of criminal, half-baked ideas. That is how free market economy works. But it might be a tall order to expect mainstream economists to recall this after more than a decade of bail-outs and quantitative easing.

All of which leaves the question of what happens next. The question appears to be, as Hays and Valek ask (and answer below), is Bitcoin a bursting bubble or the only exit path on the world's first hyperdeflation…

Since December, Bitcoin’s price dropped 69 % from a high of $19,224 to a low of $5,920 in early February. The last time Bitcoin’s price plummeted this much was after the 2013 rally when it reached $1,000 per coin for the first time. During a 411-day correction, Bitcoin’s price dropped 87 % from $1,163 on November 30, 2013 to $152 on…
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Anthill 23: Bursting the Bitcoin bubble


Anthill 23: Bursting the Bitcoin bubble

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Courtesy of Annabel Bligh, The Conversation; Gemma Ware, The Conversation; Kelly Fiveash, The Conversation, and Will de Freitas, The Conversation



In this episode of The Anthill podcast from The Conversation, we’re delving into the world of Bitcoin. The cryptocurrency has come a long way since its launch by the mysterious person (or persons) Satoshi Nakamoto in 2008. The price of one Bitcoin hit a peak of more than US$19,000 in December 2017. It has since fallen below US$9,000.

Bitcoin has made a lot of headlines over the last year, but will it be the currency of the future? To find out, we spoke to professor of business history at Bangor University, Bernardo Batiz-Lazo, about what makes money money. He shared his doubts about Bitcoin – or any other cryptocurrency – going mainstream anytime soon.

And Larisa Yarovaya, lecturer in accounting and finance at Anglia Ruskin University, explains some of her recent research into the effect of US policy announcements on different cryptocurrencies. Her findings give some insights into whether or not they make good assets for investment. She also tells us how cryptocurrencies respond in different ways to the US dollar and gold.

For many, one of the big appeals of cryptocurrencies is the fact that they are not regulated by any governments. But different countries have responded in wildly different ways to the rise in popularity of Bitcoin. Initial coin offerings have been banned in South Korea, where regulators are considering shutting down local cryptocurrency exchanges. Meanwhile, the threat of regulation in China and elsewhere recently triggered a significant slide in Bitcoin’s value.

Russia, however, has been a hotbed of cryptocurrency innovation, where President Vladimir Putin wants to create infrastructure for the national adoption of virtual coins. And in Sweden there’s talk of releasing a national cryptocurrency.

The Conversation’s technology editor Kelly Fiveash spoke to lawyer Iwa Salami at the University of East London and Brian Lucey, finance expert at Trinity College Dublin, to take a closer look…
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Comparing The 25 Most Notable Cryptocurrencies

Courtesy of Zero Hedge

Since garnering more mainstream attention, the rise of Bitcoin has been debated openly by government officials, financial institutions, and mass media outlets. A segment on Bitcoin was even recently broadcast to millions of viewers on the popular The Ellen DeGeneres Show.

But as Visual Capitalist's Jeff Desjardins notes, while Bitcoin remains the undisputed bellwether for digital currencies, it’s also fair to say that the entire crypto landscape has been changing dramatically over the last year. New coin and token offerings have raised billions of dollars, innovative ideas are capturing the attention of investors, and there are now 20+ cryptocurrencies that have at least $1B in market capitalization.

Bitcoin may be in the public spotlight, but there’s a lot happening behind the scenes.


Today’s visualization comes to us from Nick Young, and it shows the 25 most notable cryptocurrencies on the market using data from March 5, 2018.

Courtesy of: Visual Capitalist

In the graphic, the 25 cryptocurrencies are organized by market capitalization, inception date, 30-day trade volume, and also the type of function that each coin or token has. It’s also worth noting that relative comparisons are done on a log scale for easier viewing.

Here are the top five cryptocurrencies by market capitalization, according to the graphic:

Note: Cryptocurrencies are volatile and have large swings in value, so these numbers can change quickly.

And here is the top five cryptocurrencies by 30-day volume, as well:

Bitcoin’s journey to $10,000 in late 2017 caught the attention of many people in the media and investing world, catapulting the currency into the mainstream. At the same time, however, it’s also clear that the rest of the cryptocurrency landscape is flourishing as a strong supporting cast, making for a more diverse, interesting, and efficient ecosystem overall.

Exactly a year ago, Bitcoin made up over 80% of the market capitalization of the cryptocurrency space. Today, with many altcoins gaining traction (and the Bitcoin hard forks taking place), the share held by Bitcoin is closer to 42%.

Cryptos Crash: Bitcoin Back Below $8k Into “Mystery Dip-Buyer” Territory

Courtesy of Zero Hedge

Today's weakness in cryptos, driven initially by concerns over Google's looming ad-ban, is accelerating overnight…

Hanging over the market still are concerns about next week's G-20 meetings (and the possibility of a more global standard for cracking down on cryptos) as well as the massive Mt.Gox sale overhang.

Nobuaki Kobayashi, bankruptcy trustee for Mt. Gox, the largest bitcoin exchange in the world before hackers absconded with tens of thousands of customers' bitcoins worth billions at recent prices, said he started selling in late September, meaning it's quite possible he sold at least some of the coins at the highs reached toward the end of last year.

This is what Kobayashi's "sells" look like on the chart of Bitcoin…

Still, Bloomberg reported  that Kobayashi is sitting on another approximately $1.9 billion, which he says he plans to offload soon…

However, with Bitcoin battered back below $8,000, it has entered the "Mystery Dip-Buyer" Zone.

As a reminder, according to BitInfoCharts, a mysterious buyer with a Bitcoin address of 3Cbq7aT1tY8kMxWLbitaG7yT6bPbKChq64 purchased an astronomical amount of bitcoins worth $344,000,000 at a blended cost basis around $8,400 from 02-09-18 through 02-12-18.

In total, this Bitcoin whale doubled down adding nearly 41,000 coins for a new total of 96,000 coins worth somewhere around $900,000,000 at today’s price ($9,400).

Bitcoin address 3Cbq7aT1tY8kMxWLbitaG7yT6bPbKChq64 is number three on the top 100 richest Bitcoin address in the world.

So will "Mystery Dip-Buyer" come back in or will Kobayashi win?

Bitcoin Sinks As Google Moves To Ban All Crypto, ICO Ads In June

Courtesy of ZeroHedge. View original post here.

Mimicking its biggest rival for ad dollars – FacebookGoogle will ban online advertisements promoting cryptocurrencies and initial coin offerings, and "other speculative financial instruments" starting in June.

Some aggressive businesses found a loophole: purposely misspelling words like "bitcoin" in their ads. A Google spokeswoman said the company’s policies will try to anticipate workarounds like this.

The reaction was immediate across the crypto space but for now is somewhat subdued…

Alphabet’s Google said the new policy will become effective in June across ads bought on its search and display-advertising network, as well as its YouTube unit.

But, as The Wall Street Journal reports, the policy also will restrict ads for nontraditional methods of wagering on the future movements of stock prices and foreign-exchange, such as binary options and financial spread-betting, Google said.

Google said last year it removed more than 130 million ads that were used by hackers to mine for cryptocurrency. That is a very small percentage of the ads run on Google’s ad network.

The company’s director of sustainable ads, Scott Spencer, declined to comment on how much potential ad revenue the company would be turning away by enacting the new policy, saying the decision was made to prevent consumer harm.

One wonders when the crackdown will start on inverse VIX ETFs, or just S&P ETFs, or brokerages? Aren't they all capable of doing consumers "harm"?

As a reminder, here is Facebook's justification:

We want people to continue to discover and learn about new products and services through Facebook ads without fear of scams or deception. That said, there are many companies who are advertising binary options, ICOs and cryptocurrencies that are not currently operating in good faith.

This policy is intentionally broad while we work to better detect deceptive and misleading advertising practices, and enforcement will begin to ramp up across our platforms including Facebook, Audience Network and Instagram. We will revisit this policy and how we enforce it as our signals improve.

We also understand that we may not catch every ad that should be removed under this new policy, and encourage

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“Bitcoin Misery Index” Flashes ‘Buy’ Signal

Courtesy of ZeroHedge. View original post here.

Authored by Ana Alexandre via,

Wall Street strategist and co-founder of Fundstrat Global Advisors Thomas Lee has developed a ‘contrarian index’ that lets investors know how ‘miserable’ Bitcoin (BTC) holders are based on current prices, CNBC reports.

The Bitcoin Misery Index says now is the time to buy from CNBC.

The index is called the Bitcoin Misery Index (BMI) and was designed as a trading tool for investors to take advantage of volatility in BTC exchanges. BMI is calculated on a scale of zero to 100, taking into account factors such as volatility and the number of winning trades out of the total. When the indicator is low, the buying opportunity is at its best, and vice versa.

When the bitcoin misery index is at ‘misery’ (below 27), bitcoin sees the best 12-month performance. A signal is generated about every year, Lee explained to CNBC in a Friday report.

"When the BMI is at a 'misery' level, future returns are very good."

At the moment, the Bitcoin index is at 18.8, which is an absolute minimum since Sept. 6, 2011, the report said.

Lee’s comments follow a significant cryptocurrency market fall in which BTC lost almost 27 percent just after hitting a weekly high of $11,675 on Monday, March 5. A series of negative news resulted in heightened concerns about more regulations on crypto markets.

On March 7, the US Securities and Exchange Commission (SEC) issued a statement saying that all platforms trading securities are required to register with the agency as an exchange. Additionally, Japanese authorities temporarily halted the activities of two cryptocurrency exchanges and issued “punishment notices” to seven more, as reported on March 8.

Despite Bitcoin currently trading at more than 50 percent of its December 2017 high of over $20,000, Lee has not abandoned his optimistic forecast of $25,000 by the end of 2018.

Tom Lee is known for his bullish outlooks for BTC and as the “only major Wall Street strategist to issue regular reports and formal price targets on bitcoin”, according to CNBC.


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QOTD: The Uphill Battle


QOTD: The Uphill Battle

Courtesy of 

The New York Times:

One central tension at Facebook has been that of the legal and policy teams versus the security team. The security team generally pushed for more disclosure about how nation states had misused the site, but the legal and policy teams have prioritized business imperatives, said the people briefed on the matter.

“The people whose job is to protect the user always are fighting an uphill battle against the people whose job is to make money for...

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Zero Hedge

Tempe Police Say "No Fault By Uber" In Fatal Crash

Courtesy of ZeroHedge. View original post here.

Following yesterday's market-moving report of a fatal accident involving a self-driving Uber car on the roads of Tempe, Arizona, legal experts immediately chimed in, saying this case presents many thorny legal issues - chief among which is the issue of who could be at fault.

Since it was the first recorded fatality involving a self-driving car, would investigators point the finger at the car's human driver? Uber? The car's manufacturer? Some combination of the three (or none of the above).


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Peter Thiel: Need To Rethink Tariffs In Light Of Trade Deficit With China; SF Sucks, Bitcoin Rocks

By VW Staff. Originally published at ValueWalk.

PayPal cofounder Peter Thiel in a wide-ranging interview on President Trump’s trade tariffs, China’s economy, technology regulations and his outlook for bitcoin.


Check out our H2 hedge fund letters here.

Peter Thiel: Need To Rethink Tariffs In Light Of Trade Deficit With China

Peter Thiel On Leaving Silicon Valley For Los Angeles

Billionaire investor Peter Thiel argues Silicon Valley is is a ‘totalitarian place’ where people are not allowed to have dissenting views.


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Chart School

Weekly Market Recap Mar 18, 2017

Courtesy of Blain.

Indexes were coming off a massive week and entered this past week somewhat overbought, so certainly were due for some sort of rest.   For the week, the S&P lost 1.2%, and the NASDAQ 1%.  While most of this political mumbo jumbo stuff is not really market moving for more than a hot minute while the algorithms scramble to react, it is worth noting the movement in key economic positions.  To that end:

Lawrence Kudlow of CNBC fame has been officially named as director of the National Economic Council to replace Gary Cohn, who resigned earlier this month. Kudlow has supported Trump’s tax cuts but opposes tariffs.

Trump said ...

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Insider Scoop

The Market In 5 Minutes: AT&T, Facebook Data, Apple Screens, Google Shopping And More

Courtesy of Benzinga.

Related SPY What You Need To Know About Larry Kudlow, Trump's New Economic Advisor Appeals Court Overturns Fiduciar... more from Insider

Digital Currencies

Bitcoin Soars $1000 Off The Lows After G-20 Rejects Crypto Crackdown

Courtesy of ZeroHedge. View original post here.

While advertising bans and Mt.Gox Trustee overhangs remain, the FUD of a possible global regulatory crackdown in the G-20 Communique was a major driver of this weekend's weakness... until Les Echos confirms FSB has rejected calls for regulation.

After headlines suggesting a global crackdown on cryptocurrencies spooked the markets on Friday, ...

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Members' Corner

Cambridge Analytica and the 2016 Election: What you need to know (updated)


"If you want to fundamentally reshape society, you first have to break it." ~ Christopher Wylie

[Interview: Cambridge Analytica whistleblower: 'We spent $1m harvesting millions of Facebook profiles' – video]

"You’ve probably heard by now that Cambridge Analytica, which is backed by the borderline-psychotic Mercer family and was formerly chaired by Steve Bannon, had a decisive role in manipulating voters on a one-by-one basis – using their own personal data to push them toward voting ...

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How your brain is wired to just say 'yes' to opioids

Reminder: Pharmboy and Ilene are available to chat with Members, comments are found below each post.


How your brain is wired to just say ‘yes’ to opioids

A Philadelphia man, who struggles with opioid addiction, in 2017. AP Photo/Matt Rourke

Courtesy of Paul R. Sanberg, University of South Florida and Samantha Portis, University of South Florida


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Mapping The Market

The tricks propagandists use to beat science

Via Jean-Luc

How propagandist beat science – they did it for the tobacco industry and now it's in favor of the energy companies:

The tricks propagandists use to beat science

The original tobacco strategy involved several lines of attack. One of these was to fund research that supported the industry and then publish only the results that fit the required narrative. “For instance, in 1954 the TIRC distributed a pamphlet entitled ‘A Scientific Perspective on the Cigarette Controversy’ to nearly 200,000 doctors, journalists, and policy-makers, in which they emphasized favorable research and questioned results supporting the contrary view,” say Weatherall and co, who call this approach biased production.

A second approach promoted independent research that happened to support ...

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Swing trading portfolio - week of September 11th, 2017

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


This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...

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NewsWare: Watch Today's Webinar!


We have a great guest at today's webinar!

Bill Olsen from NewsWare will be giving us a fun and lively demonstration of the advantages that real-time news provides. NewsWare is a market intelligence tool for news. In today's data driven markets, it is truly beneficial to have a tool that delivers access to the professional sources where you can obtain the facts in real time.

Join our webinar, free, it's open to all. 

Just click here at 1 pm est and join in!

[For more information on NewsWare, click here. For a list of prices: NewsWar...

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Kimble Charting Solutions

Brazil; Waterfall in prices starting? Impact U.S.?

Courtesy of Chris Kimble.

Below looks at the Brazil ETF (EWZ) over the last decade. The rally over the past year has it facing a critical level, from a Power of the Pattern perspective.


EWZ is facing dual resistance at (1), while in a 9-year down trend of lower highs and lower lows. The counter trend rally over the past 17-months has it testing key falling resistance. Did the counter trend reflation rally just end at dual resistance???

If EWZ b...

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All About Trends

Mid-Day Update

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

Click here for the full report.

To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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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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Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

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