Five Reasons That Make August 2018 Great For Cryptocurrencies Market
The crisis of Bitcoin and cryptocurrencies continued since January 9, 2018, it was born the first month of the calendar year, it has been there for so long that many investors and traders have lost hope that this difficult period will end for the market.
But as I said earlier, the current crisis revolves about one thing: regulation and rationing in order to make trading and investment legal and recognized, but also to protect investors money from theft, fraud and to combat the painful hacking and trading of these assets.
Currently in July there are moves to regulate these assets more clearly, and there are several reasons that makes me expect the end of the crypto currency crisis in August.
• The European Parliament’s report advises regulators to engage rationally with cryptocurrencies:
Earlier this month, the European Parliament issued a report advising regulators to deal with Bitcoin and crypto currencies like any other financial instrument.
The 33-page report said: “Policy makers and regulators should not ignore virtual currencies, and should not try to ban them. Both extreme approaches are incorrect.”
Ignoring or blocking crypto currencies is not a solution to deal with a self-imposed sector with a good future and many traditional investors are planning to invest in it.
This report will be the cornerstone of the EU’s position on these digital assets.
• Meeting of G20 finance ministers in Argentina:
In the 21 and 22 of this month, G20 Finance Ministers will meet in Argentina on important economic topics, including the regulation of encrypted digital currencies.
During the previous meeting, July was identified as the month of regulation and that the finance ministers and central bank leaders of the world’s 20 economic powers, which include Saudi Arabia and the Arab world, would put laws in place to regulate the new trade.
The upcoming meeting will be crucial and will explain the direction of the 20 most important economies in the world, and how these systems will deal with digital currencies, particularly Bitcoin.
• Ripple trial on 8 August:
On June 27, chief executive Brad Garlinghouse and Ripple Labs Inc. received an invitation to appear before the California Supreme Court for alleged manipulation of the XRP Ripple prices for their benefit.
The suit against Ripple is for stock fraud. The plaintiff claims this time that Ripple Lab Inc. is manipulating the price of its own encrypted currency to take advantage of deceptive moves. And that they are cash and not real currency.
The plaintiff is named Vladi Zakinov. The first hearing on this case is scheduled for August 8, 2018.
The verdict is not expected to be heard from a single session, but this session will show us how much we can bet on this encoded digital currency that will be discounted this year.
• The US Securities and Exchange Commission is studying the Bitcoin ETF Index:
Another request was made for the ETF to be accredited to the Securities and Exchange Commission (SEC), this time by the CBOE of the Chicago Board.
These documents, submitted by CBOE Global Markets on June 20, offer investment in KFH and enable the circulation of the digital currency to the public as well as facilitate trading. The agency also seeks to partner with VanEck Investment and SolidX for the purpose of establishing this investment fund.
CBOE is demanding the listing and trading of the shares of VanEck SolidX Bitcoin Trust that results from a partnership between VanEck and SolidX, which applied for an ETF support file at the beginning of June.
According to the Securities and Exchange Commission’s notice, VanEck SolidX Bitcoin Trust shares are worth about 25 Bitcoin.
If CBOE receives an approval from the Securities and Exchange Commission on the ETF, then the expected investment opportunities will be available sometime in the first quarter of 2019.
The issue is expected to be settled on August 10 or August 16, 2018. The agreement is expected to open the door for traditional investors to invest in this fund therefore, the Bitcoin and digital currencies market will have more investment.
• August 2018 is a candidate on the basis of history:
June-July last year witnessed a sharp decline in digital currencies, from 2,900$ for one Bitcoin unit to 1965$ at the end of 17 July session, and then began to recover strongly in August, with the world’s biggest currency making good gains, rising along the eighth month to 4,700$ at 31 August session.
This scenario is unlikely to recur this year as the world’s largest currency, with the rest of the currencies, could begin to recover in the coming period.
It’s not strange for August month, the historic witness of Japan’s nuclear fall, the end of the Second World War of 1945, the crime of abandonment of the Golden System in 1971 and the birth of the 2008 crisis and China’s success over Japan economically, to witness also the end of the digital currencies suffering, the establishment of its era and the end of the cash currencies era!
This 19-year-old bitcoin millionaire offers 'crucial' advice for young people looking to invest
Teenage bitcoin millionaire Erik Finman, 19, has advice for young people looking to invest in the cryptocurrency: "Find what you're good at, and find a way to make money doing it."
"This is crucial for young people," he writes on Twitter. "Establishing an extra stream of income will allow you to start investing earlier."
Finman currently owns 401 bitcoins, which he confirmed with CNBC Make It, or over $4.4 million at the rate of $11,182 a coin. The teenager began investing in bitcoin in May 2011, after receiving a $1,000 gift from his grandmother at age 12.
Finman tells Forbes that his knack for politics is actually what got him interested in bitcoin initially. "[I] saw this as an incredible way to transcend the financial system including Wall Street," he tells the magazine.
However, notable financial experts like Warren Buffett have warned against investing in bitcoin.
"In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending," the billionaire investor told CNBC.
Other bitcoin millionaires have also warned against sinking money into bitcoin, nothing that it's not secure and has no real value. But Finman refutes that claim.
On his Twitter, he writes that people often say, "Bitcoin isn't real, it's just numbers on a computer screen!"
The millionaire argues that the dollars in your bank account are also just numbers on a screen. "Bitcoin is just as real as fiat money, except Bitcoin can't be printed endlessly," he writes.
The teenager remains optimistic about bitcoin's prospects and advises other young people to take part in the crypto-craze. "What I love about Bitcoin is that instead of some rich old guy on Wall Street. Young poor people are the ones getting rich," he writes on Twitter.
In fact, the 19-year-old believes that investing in cryptocurrency is one of the fastest ways for young people to attain wealth.
"Cryptocurrency represents the largest transfer of wealth our generation has ever seen," he writes. "Never before have young people been able to change economic classes so quickly." He's proof of that.
Finman had a 2.1 GPA in high school and says his teachers considered him a failure.
"One teacher told me to drop out and work at McDonald's because that was all I would amount to for the rest of my life," says the the teen. So he dropped out.
He also made a bet with his Stanford-educated parents that if he became a millionaire by 18, he wouldn't have to go to college. Investing in bitcoin helped him avoid that fate.
After selling his first bitcoin investments in 2013, Finman walked away with $100,000. At the time, each bitcoin was valued at $1,200.
With the money he earned, Finman launched an online education company in 2014 called Botangle, which he later sold for 300 bitcoins. Since then, he has been working with NASA to launch a rocket through the ELaNa project and managing his family's bitcoin investments.
He's also made personal smaller investments in other cryptocurrencies, including litecoin and ethereum.
The bitcoin millionaire says he strongly believes that this is just the beginning of cryptocurrency.
"Deep down, everybody knows cryptocurrencies are the future. Even the bankers and Wall Street know it," he writes on his Twitter. "The only debate is how long until it completely takes over."
First Bitcoin Futures Contract Expired at $10,900
Cryptocurrency enthusiasts took the decision by the Chicago Board Options Exchange (CBOE) to launch bitcoin futures contracts in mid-December of 2017 as a largely positive sign for the leading digital currency by market cap. Bitcoin had already clenched the dominant position among a growing field of cryptocurrencies, maintaining dominance even as newer and flashy alternatives hit the market.
In mid-December, the launch of futures related to bitcoin seemed to suggest that the cryptocurrency world was coming closer toward the mainstream investment world, too. Now, after the first bitcoin futures contract closed last week, it seems that the close may have been a victory for those who were bearish on the top-ranked cryptocurrency. (See also: Bitcoin Futures on CBOE vs. CME: What's the Difference?)
First Futures Closed at $10,900
According to Coin Telegraph, the first bitcoin futures contract closed on January 17 at $10,900. As of roughly a week before, there were just under 2,000 short position contracts for bitcoin futures active on CBOE. As of the time that the first batch of futures closed, bitcoin had fallen significantly.
CBOE chief executive Ed Tilly remarked on the outcome, indicating that "[the] market experienced a smooth operational close and the settlement process worked as designed."
Down From $17,000
On December 11, 2017, the day that CBOE launched the bitcoin futures contract, the price of a single coin hovered around $17,000. (See also: CBOE to Start Bitcoin Futures Trading on Dec. 10.) The flurry of activit on the CBOE site crashed the exchange temporarily.
CBOE's launch was followed just a week later by CME Group, which offered bitcoin futures trading on December 18, 2017. One distinction between the two is that CBOE's contracts represent a single bitcoin, while CME's are tied to five coins. The first batch of CME bitcoin futures contracts will expire on January 26.
While the launch of bitcoin-linked futures contracts may suggest that mainstream financial institutions are warming to the idea of cryptocurrencies more broadly, it remains to be seen exactly how the futures market will play out.
CFA Russell Rhoads wrote on the CBOE blog that "the question I am constantly hearing is, 'how will the futures prices relate to spot bitcoin pricing,' and the best...answer I can give is, 'I don't know.'" For the time being, it seems that the earliest futures contracts for the top cryptocurrency ended up favoring bearish investors.
Investing in cryptocurrencies and other Initial Coin Offerings ("ICOs") is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or other ICOs. Since each individual's situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein. As of the date this article was written, the author owns cryptocurrencies
South Africa’s Central Bank Launches Ethereum-Based Blockchain PoC
The central bank of South Africa has launched a new proof-of-concept (PoC) project to replicate interbank settlements on an Ethereum-based blockchain.
The South African Reserve Bank (SARB), the country’s central bank, has announced a new FinTech initiative that will include ‘Project Khokha’ – a blockchain PoC endeavor via a partnership with Ethereum coder collective ConsenSys, an official announcement revealed. As the central bank’s technology partner, the Brooklyn-based Ethereum blockchain developer will enable the ‘processing of wholesale payments using Quorum’, an Ethereum enterprise blockchain developed by JPMorgan and EthLab, an Ethereum developer startup.
An excerpt from the announcement read:
“The aim of this project is to gain a practical understanding of distributed ledger technologies (DLTs) through the development of a proof of concept (PoC) in collaboration with the banking industry. The objective of the PoC is to replicate interbank clearing and settlement on a DLT which will allow the SARB and industry to jointly assess the potential benefits and risks of DLTs.”
The development to explore blockchain technology comes despite statements to the contrary by the central bank’s deputy governor who claimed the issuance of a blockchain-enabled central bank cryptocurrency would be “too risky”, in August 2017.
The SARB also plans to issue its own digital token to power its interbank settlement PoC, similar to its counterpart in Singapore. The Asian nation’s own blockchain endeavor, Project Ubin, saw the central bank tokenize a Singaporean dollar as the digital token to fuel its interbank blockchain concept, also based on Ethereum.
The SARB insists the PoC project does not directly imply a major pivot to adopting a blockchain as the core technology powering the country’s national payments infrastructure. Instead, the practical experiment will help understand the implications of ‘using a tokenized asset’ on a blockchain to transfer value, the central bank added.
A public report in the aftermath of the PoC will be released in Q2 2018, the central bank adde
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Litecoin Price Cracks $235 as Rally Extends Another 16 Percent
The Litecoin price extended its rally on Thursday, rising 16 percent to briefly crack the $235 barrier and achieve its highest mark in a month.
Litecoin Price Rally Continues
Yesterday, the Litecoin price achieved the $200 mark and raised LTC/BTC to its highest value in nearly three years. Today, Litecoin’s bullish advance continued, and LTC rose as high as $236 on Bitfinex, notching its highest mark since Jan. 15.
At the time of writing, Litecoin was trading at $219 and boasted a market cap of $12.4 billion.
Litecoin’s trading volume remains relatively decentralized, with no single exchange accounting for more than 16 percent of global LTC trading volume. Notably, LTC volume has surged on South Korean exchange Upbit, from about $62 million on Wednesday to $237 million today. Fellow Seoul-based exchange Bithumb experienced a comparable increase, and the two exchanges — each of which currently prices Litecoin at a five percent premium — now account for a combined 16.5 percent of LTC’s daily trading volume.
Litecoin Community Builds Out Infrastructure
The continued rally appears to be predicated on the assumption that increased LTC payments infrastructure will enable Litecoin to become the de facto cryptocurrency of choice for everyday transactions
As CCN reported, LitePay — a payment processing firm modeled after industry giant BitPay — plans to launch on Feb. 26. LitePay claims that its products will provide both merchants and consumers with the ability to seamlessly send and receive LTC payments.
Additionally, Coinbase rolled out an upgraded merchant processing platform on Wednesday, which enables merchants to begin accepting cryptocurrency payments directly into a user-controlled wallet. The platform is compatible with the four cryptocurrencies currently supported by Coinbase, including Litecoin.
However, Litecoin creator Charlie Lee reminded the community on Twitter that these are not the only major developments he believes Litecoin is slated to achieve this year. Hinting at insider information, he has also suggested that Litecoin will be added to a popular web wallet, be accepted at a “goods trading platform,” and feature in “one huge unexpected surprise.”