bitcoin

XRP, NEO, Monero, IOTA: Can One of the New Kids on the Block Dislodge Bitcoin? – The Market Mogul

It is instinctive to associate the rapidly surging market of cryptocurrencies with Bitcoin – the most valuable currency in the cryptosphere and one that has been in the spotlight of financial media over the last 12 months.

Indeed, despite Bitcoin’s meteoric price rise, other cryptocurrencies have also skyrocketed – at rates faster than Bitcoin. Facing trading restrictions and bans from other countries – as well as having frustratingly high transaction fees and low processing times – there is a chance that another newer cryptocurrency may seriously rival Bitcoin this year.



Cryptocurrency This Week: As Reliance Jio Plans To Launch JioCoin , KFC Announces Bitcoin Bucket And More

As we have stepped into 2018, despite a dream run in 2017, everyone appears to be sceptical about the future of Bitcoin and other cryptocurrencies in 2018. From the dark web of the cryptocurrency sources, mining, money laundering and investments to the glorious future of its benchmark technology i.e. blockchain that every organisation and government authorities are looking forward to, Bitcoin is caught in dichotomies at several levels.

As India and China have cracked down on cryptocurrencies, ‘Virtual Currency girls’ have raised the Bitcoin curiosity with their latest song “The Moon and Virtual Currencies and Me” humming with the lyrics that says, “It’s hell if you buy at a high price!…Don’t underestimate the market!”


Website Glitch Let Me Overstock My Coinbase — Krebs on Security

Coinbase and Overstock.com just fixed a serious glitch that allowed Overstock customers to buy any item at a tiny fraction of the listed price. Potentially more punishing, the flaw let anyone paying with bitcoin reap many times the authorized bitcoin refund amount on any canceled Overstock orders.

In January 2014, Overstock.com partnered with Coinbase to let customers pay for merchandise using bitcoin, making it among the first of the largest e-commerce vendors to accept the virtual currency.

On December 19, 2017, as the price of bitcoin soared to more than $17,000 per coin, Coinbase added support for Bitcoin Cash — an offshoot (or “fork”) from bitcoin designed to address the cryptocurrency’s scalability challenges.

As a result of the change, Coinbase customers with balances of bitcoin at the time of the fork were given an equal amount of bitcoin cash stored by Coinbase. However, there is a significant price difference between the two currencies: A single bitcoin is worth almost $15,000 right now, whereas a unit of bitcoin cash is valued at around $2,400.


‘The fees are too damn high’

MICROSOFT has resumed accepting bitcoin as payment after temporarily halting transactions in the “unstable” cryptocurrency earlier this week.


How Likely Is It That Bitcoin Will Hit $500k In Three Years? – TECHAED

Do you believe John McAfee is right about Bitcoin hitting $500,000 in 3 years? originally appeared on Quora: the place to gain and share knowledge, empowering people to learn from others and better understand the world.

Answer by Vladimir Novakovski, 8.5 years in hedge funds, on Quora:

It’s interesting that almost all existing analysis of cryptoassets are from the point of view of fundamentals (or lack thereof). It’s often useful to look at things quantitatively instead.

So here, what we really want to understand is the probability of bitcoin reaching $500,000. There are a few ways to do that.
First, we can assume a completely random process and take a “gambler’s ruin” perspective. What is the probability that a random process will hit $500,000 before it hits $0? Given that the price as of Dec 2017 is about $15,000, we’d get $15,000/$500,000 = 3%.

Another approach is to model price as a lognormal process, which is a reasonable assumption to make for a broad set of assets. See Why do prices and income follow a log-normal distribution?

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Is Bitcoin Really in a Bubble?

Despite bitcoin’s growing credibility among individual and institutional investors, the cryptocurrency’s skyrocketing price is causing some concern.

Investors and speculators are biting into bitcoin — in a big way. The price of the cryptocurrency surged by nearly 1,900% in 2017, to an average high of $19,499 on December 15 across major bitcoin exchanges, before plunging down to just over $13,000 a week later, according to blockchain.info. The ascent is striking especially since bitcoin emerged just eight years ago, the creation of a mysterious person or group of people named Satoshi Nakamoto. In 2009, bitcoin was worth zero.

Bitcoin’s popularity persists even though it has no intrinsic value per se. It is not backed by gold or physical assets, nor does it pay interest or dividends. Bitcoin cannot be used as money in most places. That’s why its skyrocketing price is causing concern. Fed Chair Janet Yellen called bitcoin a “highly speculative asset”; JPMorgan Chase CEO Jamie Dimon said it was a “fraud”; billionaire Warren Buffett called it a “mirage,” while Vanguard founder, Jack Bogle, told investors to “avoid bitcoin like the plague.”

“There has been a lot of hype and excitement, and that clearly has driven the price possibly away from the real utility value of the network and much more into the speculative realm,” said Christian Catalini, a professor of technological innovation, entrepreneurship and strategic management at MIT, on the [email protected] show on SiriusXM channel 111. “The floor value of bitcoin is zero. Bitcoin only has value because people believe and agree it has value.”

Much of bitcoin’s stratospheric rise was achieved last year. For years, bitcoin traded in a much lower range due to its novelty, a spate of negative news such as the 2014 hacking of the now-defunct Mt. Gox bitcoin exchange, and early link to criminal activities (Silk Road). Those same concerns are still around — a South Korean digital currency exchange recently closed down after suffering its second cyberattack. However, bitcoin’s adoption by major institutions gives it a sheen of market credibility.



Merrill Lynch Bans Clients From Bitcoin Investment Trust | NewsBTC

One of the Bank of America’s wealth management divisions, Merrill Lynch, has forbidden clients to invest in Barry Silbert’s Bitcoin Investment Trust. The news comes via a memo from the financial advisory firm last December which was seen by Reuters.

The note was sent to around 17,000 brokers at both Merrill Lynch and their subdivision of independent trade managers, Merrill Edge. According to the memo dated December 8, 2017, the wealth management firm will no longer approve new orders for Silbert’s trust. This was due to uncertainty over the “suitability and eligibility standards” of the Bitcoin fund.