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

With cryptocurrency launch, Facebook sets its path toward becoming an independent nation

 

With cryptocurrency launch, Facebook sets its path toward becoming an independent nation

The world’s newest country? railway fx/Shutterstock.com

Courtesy of Jennifer Grygiel, Syracuse University

Facebook has announced a plan to launch a new cryptocurrency named the Libra, adding another layer to its efforts to dominate global communications and business. Backed by huge finance and technology companies including Visa, Spotify, eBay, PayPal and Uber – plus a ready-made user base of 2 billion people around the world – Facebook is positioned to pressure countries and central banks to cooperate with its reinvention of the global financial system.

In my view as a social media researcher and educator, Facebook CEO Mark Zuckerberg is clearly seeking to give his company even more political power on a global scale, despite the potential dangers to society at large. In a sense, he is declaring that he wants Facebook to become a virtual nation, populated by users, powered by a self-contained economy, and headed by a CEO – Zuckerberg himself – who is not even accountable to his shareholders.

Facebook hasn’t behaved responsibly in the past, and is still wrestling with significant public concerns – and investigations – about its privacy practices, information accuracy and targeted advertising. Therefore, it’s important to see through the hype. People must consider who is reshaping the world, and whether they are doing it in the best interests of humankind – or whether they are just seeking to benefit the new class of elite technology executives.

Humanity needs ethical leadership, and time to think through the potential repercussions of rapid technological change. That’s why, in my view, Facebook’s cryptocurrency should be blocked by financial regulators until its design has been proved to be safe for all of global society.

You might not want to trust this man. Anthony Quintano/Wikimedia Commons, CC BY

Understanding Libra

Technology companies are interested in a global currency that is native to the internet. That could allow companies like Facebook and Twitter to bring in more users…
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Facebook claims Libra offers economic empowerment to billions – an economist is skeptical

 

Facebook claims Libra offers economic empowerment to billions – an economist is skeptical

Courtesy of Jay L. Zagorsky, Boston University

Facebook is joining the cryptocurrency craze. Should we be concerned?

The social network site on June 18 said it’s launching a new cryptocurrency called Libra with the help of 27 partners, including MasterCard, Visa, ebay and Uber.

In simple terms, Libra is meant to replace the paper bills in your wallet or purse with a digital equivalent. But unlike other cryptocurrencies like bitcoin, Libra will be directly backed by assets.

The white paper describing the vision for this new currency is filled with laudable goals such as creating economic opportunity and advancing financial inclusion. But it will take time to completely understand the ramifications of Libra, which Facebook hopes to launch in 2020.

As a macroeconomist, I believe there are economic benefits to Facebook’s cryptocurrency – but also some big potential downsides.

The benefits of Libra

Existing cryptocurrencies are not tied to physical assets. This makes them immune to the whims of national governments but also makes them prone to speculative bubbles and flash crashes.

Libra, on the other hand, is going to be 100% backed by assets. Every unit of Libra currency will be backed by an equivalent basket of bank deposits and short-term government securities in various major currencies.

As a result, Libra will not suffer wild price fluctuations. And since it will be backed by a collection of international currencies and assets, it won’t be tied to the fortunes and policies of one country either.

Economist Friedrich Hayek believed in the decentralization of currency. The Mises Institute, CC BY

Another effect of being backed by assets is that it may help lower the risk of high inflation in countries across the world. Nobel Prize-winning economist Friedrich Hayek made this very point in his book “The Denationalisation of Money.” Hayek believed everyone would be better off if people could pick among different types of private money, like Libra, instead of using government-issued money. Hayek believed issuing private money would banish inflation…
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Cryptos Are Crashing As Asia Opens, Bitcoin Back Below $8k

Courtesy of ZeroHedge. View original post here.

Having survived the day's bloodbath in US tech stocks, cryptos are crashing in the early Asian session, apparently playing catch-down to the day's de-risking.

While no catalyst is immediately evident, there are some reports noting 13 large global banks are preparing to launch digital versions of major global currencies next year, though we suspect this drop was more algorithmic that fundamental-driven.

Source: Coin360

The entire crypto space is down 8-12%…

With Bitcoin back below $8000 and oddly attracted lower to Nasdaq's collapse…

However, as CoinTelegraph reports, macro strategists remain bullish, despite the recent overnight crashes (many of which appear to synchronize around the Korean morning).  The following factors have been mentioned in recent weeks as potential catalysts for an increase in bitcoin’s price:

  1. Rise in institutional demand, as seen in the drastic increase in Bitcoin Investment Trust (GBTC) premium.

  2. The entrance of major financial institutions such as Fidelity, Etrade and TD Ameritrade.

  3. Scheduled block reward halving of bitcoin in May 2020.

  4. A noticeable improvement in the infrastructure supporting the asset class.

  5. Rising institutional demand, triggering the recovery of retail interest.

Technical analysts in the crypto sector, such as Josh Rager and Cred, foresee $8,200 as a crucial support level that could prevent the asset from dropping to the $7,000 region once again.

The last time bitcoin’s price dropped below $7,000 was in a flash crash on March 17, when it fell to $6,400, triggered by the unexpected sell-off of 5,000 BTC on Bitstamp, which then led to the mass liquidation of contracts on BitMEX.

Bitcoin has since demonstrated strong momentum, with signs of “fear of missing out” (FOMO) among investors, creating a vertical rally to the upside.

Cred told Cointelegraph in an interview that, as long as the $8,200 support level is defended, a rise to $9,600 remains a realistic target and a high time frame resistance level.


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Cryptocurrencies are finally going mainstream – the battle is on to bring them under global control

 

Cryptocurrencies are finally going mainstream – the battle is on to bring them under global control

File 20190514 60557 38cbgs.jpg?ixlib=rb 1.1

The high seas are getting lower. dianemeise

Courtesy of Iwa Salami, University of East London

The 21st-century revolutionaries who have dominated cryptocurrencies are having to move over. Mainstream financial institutions are adopting these assets and the blockchain technology that enables them, in what is perhaps the most profound development since the birth of cryptocurrencies through the launch of bitcoin a decade ago.

JP Morgan Chase has been leading the way, having announced JPM Coin earlier this year, the first cryptocurrency issued by a big international bank. When trials begin in the coming months, each JPM Coin will be redeemable for one US dollar, protecting this cryptocurrency from the volatility characteristic of the likes of bitcoin.

One of the main reasons for JP Morgan launching these coins is to offer large corporate clients a way of making international payments in real time. This could gradually replace the current global interbank funds transfer network known as SWIFT, whose wire transfer payments can sometimes take a whole business day to settle.

A few weeks later, the IMF and World Bank jointly announced the launch of Learning Coin, a private blockchain and quasi-cryptocurrency designed to help them better understand the technology. Facebook, too, was reported to be interested in launching a cryptocurrency.

Meanwhile, financial firm 20|30 became the first company to float on a mainstream regulated trading platform using blockchains, when it issued shares in the form of “equity tokens” similar to a cryptocurrency on the London Stock Exchange.

It is all a far cry from the rationale for creating bitcoins and blockchains in the first place: to decentralise finance away from the dollar-dominated system of fiat currencies and to gradually render financial institutions obsolete.

Good, bad and ugly

Yet this space remains attractive to those seeking to undermine US financial hegemony. Iran and Russia are both looking at launching state-backed cryptocurrencies, in response to US threats to disconnect them from the SWIFT payments system. This would enable these countries to join other blockchain-based payment networks, with the…
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Why Bitcoin Just Doubled

 

Why Bitcoin Just Doubled

Courtesy of 

Today on the mini pod I asked my friend, fellow advisor and crypto currency expert Tyrone Ross. We talked about what’s happening, who is buying and what the next catalyst might be.

You can listen below…

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Here. 

 





Dr. Stablecoin (Or How I Learned To Stop Worrying And Love Tether)

Courtesy of ZeroHedge. View original post here.

Authored by Omid Malekan via Medium.com,

I’ve been a vocal advocate of stablecoins for a while, and have written about my belief that they’ll be the first killer application for blockchain. In my talks, I often refer to Tether as “the worst implementation of a great idea,” on account of the persistent lack of transparency, bank hoping and poor communication.

That shadiness, combined with its popularity, has made USDT an industry liability for years. Although I never subscribed to the crazy conspiracy theories, I have always worried that a stablecoin-related scandal would tank prices and make me look bad. When you are passionate about a new idea, the biggest danger is a poor implementation early in the life cycle ruining it in the eyes of others. So imagine my excitement last year when a handful of better designed, more transparent and willingly regulated alternatives showed up. Surely, I thought, all the people who used Tether would now switch to something safer.

Except that they didn’t, and Tether continued to dominate in market cap, even after news of withdrawal issues at parent exchange Bitfinex temporarily collapsed the peg last fall. This should have been the first sign that the world of stablecoins was not as I thought it was, but I wrote it off to a temporary lack of availability of the other coins at major exchanges.

Then came the recent filing from the attorney general of New York, and the worst case scenario was realized. There was now solid proof from an important authority that there were more tokens outstanding than dollars backing them by a wide margin. Surely the UDST peg would now collapse by at least the amount of the missing funds?—?if not more, and the industry would swiftly move to a better stablecoin. Upon hearing the news, I put several cross-stablecoin markets on my quote screen and waited for the fireworks to start, relieved that the albatross would soon be lifted.

But that didn’t happen, either. Confirmation of Tether not being fully backed had more of an impact on the price of Bitcoin than USDT itself. The peg never fell by more than a few percent, despite Bitfinex effectively admitting…
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Game Of Crypto-Thrones

Courtesy of ZeroHedge

Authored by Alena Nariniani via HackerNoon.com,

Specially for Game of Thrones fans I’ve decided to imagine the crypto market in the GoT universe.

Here is what came out of it.

State governments and other regulatory agencies?—?House Lannister

Would eagerly take control of absolutely everything, but so far it’s not quite working out. Not the type to back down either. Stubbornly trying to regulate more and more areas, they claim people user security is the key motivation behind their actions, saying that crypto regulation lays far outside of their interests since they have plenty of other matters to be taking care of (the Lannisters also frequently claim they neither need or care for King’s Landing and they are content with Casterly Rock, and all they are doing is for the benefit of the people)…

The people users believe. Or pretend to be doing so. They gather into small and large groups to air their grievances, but ultimately, having discussed them, disperse. However, since the Lannisters have such valuable assets as Qyburn, a necromancer, and the Mountain, a towering brutal warrior, such gatherings are not a concern to anyone.

Authorities and regulators are in a constant power struggle between each other, trying to make their way into the very top of their hierarchy, however, when faced with a common enemy (think industry that is not yet regulated to the grown) they quickly rally up. Most of House Lannister members are there illegitimately in some way, but it’s almost impossible to drive them away from the Iron Throne.

SEC (Securities and Exchange Commission)?—?House Stark

The SEC representatives would surely prefer to be Daenerys Targaryen, but they are frequently reminded that they are not directly relevant in the crypto industry, so they sigh and take on the role of House Stark.

They dream of controlling the crypto market the same way they control the US securities market?—?with an iron fist. Their motto, “Winter is coming”, is said with the intention to hurry the regulation of the market… They almost never scheme, but from time to time they try to speak to Lannisters as equals (bringing suggestions, expressing opinions). This gives…
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5 Cryptocurrency Tax Questions To Ask On April 15th

Courtesy of ZeroHedge. View original post here.

Authored by David Kemmerer via CoinTelegraph.com,

Depending on what country you live in, your cryptocurrency will be subject to different tax rules. The questions below address implications within the United States, but similar issues arise around the world. As always, check with a local tax professional to assess your own particular tax situation.

image courtesy of CoinTelegraph

1. Do I need to report my cryptocurrency trades to the IRS?

You need to report your cryptocurrency activity if you incurred a taxable event during the year. A taxable event is a specific scenario that triggers a tax liability. The below are a list of the taxable events as specified by the IRS 2014 guidance:

  • Trading cryptocurrency to fiat currency like the U.S. dollar is a taxable event.

  • Trading cryptocurrency to cryptocurrency is a taxable event (you have to calculate the fair market value in USD at the time of the trade).

  • Using cryptocurrency for goods and services is a taxable event (again, you have to calculate the fair market value in USD at the time of the trade; you may also end up owing sales tax).

The most common tax event from the above is trading one cryptocurrency for another — for example, trading your Bitcoin (BTC) for Ethereum (ETH).

On the other hand, there are other actions that cryptocurrency enthusiasts also commonly take that are not taxable events and do not trigger a tax reporting requirement. Listed below are scenarios in which traders do not trigger a tax event:

  • Giving cryptocurrency as a gift is not a taxable event (the recipient inherits the cost basis; the gift tax still applies, if you exceed the gift tax exemption amount).

  • A wallet-to-wallet transfer is not a taxable event (you can transfer between exchanges or wallets without realizing capital gains and losses, so make sure to check your records against the records of your exchanges, because they may count transfers as taxable events, like they are a safe harbor).


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China Moves To Ban Bitcoin Mining As Crypto Crackdown Continues

Courtesy of ZeroHedge. View original post here.

For bitcoin traders, 2019 is starting to look like a repeat of 2017 in more ways than one.

While that might be a slight exaggeration (though bitcoin's sudden surge over $5,000 last week  was certainly a welcome relief from more than a year of market doldrums, even sending the moribund bitcoin futures market higher), a headline that hit the tape this morning is bound to provoke comparisons to bitcoin's heyday, when Chinese authorities briefly provoked a panic in the market by abruptly cracking down on crypto exchanges operating in the country, part of a campaign to bring the cryptocurrencies trade under state control.

Bitcoin

Late Monday, China's National Development Reform Commission listed crypto-mining among industries it intends to eliminate because of its environmental impact. The agency will allow public comment on the guidelines until May 7, but warned that they could take effect as soon as they are issued. As Bloomberg reports, China was once home to more than 90% of bitcoin trading and 70% of mining, thanks to notoriously cheap subsidized energy, particularly in the countryside. But after a crackdown began in 2017, most of the big mining pools in the country – including Bitmain – decamped for abroad, setting up mining pools in Canada and elsewhere. Back in 2018, Beijing reportedly asked local authorities to try and push crypto miners out.

Still, according to a consultant who spoke with Reuters, roughly half the bitcoin network is probably still located in China. And Chinese companies remain the largest manufacturers of bitcoin mining rigs.

Nearly half of bitcoin mining pools – groups of miners that team up for economies of scale – are located in the Asia-Pacific, a Cambridge University study said in December.

"Half of the network is probably located in China," said Alex de Vries, a consultant with PwC in Amsterdam who specializes on blockchain and researches cryptocurrency mining. He added that the number of mining facilities in the world is still limited to several hundred.

One blockchain investor said China's decision to finally ban crypto mining outright was probably part of a push to "reboot" the crypto industry to bring it under state control.…
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Bitcoin Cash Explodes 50% As Asian Algos Continue Crypto Buying-Spree

Courtesy of ZeroHedge. View original post here.

Update (1950ET): The third leg of today’s massive surge in cryptocurrencies has lifted Bitcoin Cash up over 50% on the day, Bitcoin and Ethereum up around 20% and Litecoin up 30%.

Bloomberg reports that the surge at the start of Asian trading on Tuesday was likely triggered by automated software set up to execute a $100 million trade across three exchanges, according to Oliver von Landsberg-Sadie, chief executive officer of London-based crypto firm BCB Group.

“Some people are in the camp where algorithmic trading is a manipulative device, and others are of the view that they are a way to make markets more efficient,” von Landsberg-Sadie said. “I am definitely of the second view.” BCB Group helps clients place large algorithmic trades to minimize market impact.

The number of algorithmic crypto traders has jumped in the last seven months, with 17 algo or quantitative funds started since September, according to Crypto Fund Research. They account for more than 40 percent of crypto hedge funds launched during the period, the firm said.

Bitcoin and Ethereum both broke above their 200DMAs and extended gains and Bitcoin Cash has now reached up to its 200DMA

It is clear that this is anything but an ‘April Fools’ joke as so many mainstream media types tried to shrug off the action. The big moves have occurred as European markets opened, as US markets opened, and now as Asian markets opened.

While there remains no specific headline catalyst for the moves, Jim Grant offers one potential clue, noting the nearly identical level of activity in tether, the purportedly dollar-backed crypto.

While bitcoin (with an aggregate market value of $86.3 billion) has logged $21.5 billion of trading volume in the past 24 hours, the much-smaller tether (market value: $2.1 billion) has registered $21.9 billion over the same period, according to data from CoinMarketCap.com. By comparison, ethereum, which sports a market cap of $17.4 billion, has seen 24 hour trading volume of $9.8 billion.

Bitcoin only has to go up $995,000 in the next 640 days or McAfee eats his dick pic.twitter.com/sTPxUtRYOM

— Hipster (@Hipster_Trader) April 3, 2019

* * *

Update (0930ET): Cryptos have legged higher once again…

With Bitcoin breaking…
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Phil's Favorites

Voices from an age of uncertain work - Americans miss stability and a shared sense of purpose in their jobs

 

Voices from an age of uncertain work – Americans miss stability and a shared sense of purpose in their jobs

Work isn’t as stable as it once was. fizkes/Shutterstock.com

Courtesy of David L. Blustein, Boston College

On the surface, the well-being of the American worker seems rosy.
Unemployment in the U.S. hovers near a 50-year low, and employers describe growing shortages of workers in a wide array of fields.

But looking beyond the numbers tells a different story. My new book, “...



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Zero Hedge

Camouflaged Israeli Ex-PM Pictured Entering Epstein's Mansion The Same Day As Hotties Show Up

Courtesy of ZeroHedge. View original post here.

Former Israeli Prime Minister Ehud Barak was photographed entering Jeffrey Epstein's Manhattan mansion in January, 2016 wearing a camouflage scarf around his face - the same day that a bunch of young women showed up, according to the Daily Mail.

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Kimble Charting Solutions

Silver ETF (SLV) Testing Dual Breakout Resistance

Courtesy of Chris Kimble.

Silver (NYSEARCA: SLV) has been in a bit of a slumber when compared to the price action for Gold (NYSEARCA: GLD).

Precious metals bulls hope that this about to change, as bullish action from Silver is necessary to confirm any bull market / move in metals.

Today’s chart takes a closer look at the Silver ETF (SLV) on a weekly basis. As you can see, Silver is up 5 percent this week alone.

This is good news for metals bulls. But this rally isn’t confirming a breakout just yet.

As you can see in the chart below, SLV has been trading between support (1) ...



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Insider Scoop

Analysts Weigh In On Netflix's Rocky Quarter

Courtesy of Benzinga.

Netflix, Inc. (NASDAQ: NFLX) reported second-quarter results highlighted by an uncharacteristic decline in U.S. subscribers while international subscriber adds missed expectations. Here is a summary of how some of the Street's top analysts reacted to the print.

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Digital Currencies

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...



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Biotech

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/Shutterstock.com

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



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ValueWalk

Professor Shubha Ghosh On The Current State Of Gene Editing

 

Professor Shubha Ghosh On The Current State Of Gene Editing

Courtesy of Jacob Wolinsky, ValueWalk

ValueWalk’s Q&A session with Professor Shubha Ghosh, a professor of law and the director of the Syracuse Intellectual Property Law Institute. In this interview, Professor Ghosh discusses his background, the Human Genome Project, the current state of gene editing, 3D printing for organ operations, and gene editing regulation.

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Chart School

Gold Gann Angle Update

Courtesy of Read the Ticker.

Charts show us the golden brick road to high prices.

GLD Gann Angle has been working since 2016. Higher prices are expected. Who would say anything different, and why and how?

Click for popup. Clear your browser cache if image is not showing.



The GLD very wide channel shows us the way.
- Conservative: Tag the 10 year rally starting in 2001 to 2019 and it forecasts $750 GLD (or $7500 USD Gold Futures) in 10 years.
- Aggressive: Tag the 5 year rally starting in 1976 to 2019  and it forecasts $750 GLD (or $7500 USD Gold Futures) in 5 years.

Click for popup. Clear your browser cache if ima...



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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.

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It's Not Capitalism, it's Crony Capitalism

A good start from :

It's Not Capitalism, it's Crony Capitalism

Excerpt:

The threat to America is this: we have abandoned our core philosophy. Our first principle of this nation as a meritocracy, a free-market economy, where competition drives economic decision-making. In its place, we have allowed a malignancy to fester, a virulent pus-filled bastardized form of economics so corrosive in nature, so dangerously pestilent, that it presents an extinction-level threat to America – both the actual nation and the “idea” of America.

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OpTrader

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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Promotions

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:

 

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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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