Connect with us

Bitcoin

Expected Next In Line Fed President Claims Bitcoin Doesn’t Pass Test for a Currency

Published

on

The current head of the San Francisco Federal Reserve Bank has become the latest to speak out against bitcoin and cryptocurrencies, claiming that they don’t pass the test for a currency.

Cryptocurrencies Fail Test

Speaking during a speech on Friday, John Williams, named to take over from William Dudley as the New York Federal Reserve president in June, argued that ‘cryptocurrency doesn’t pass the basic test of what a currency should be.’ According to Williams, a currency should have ‘a store of value,’ and that they should be able to support different financial and economic conditions, reports CNBC.

Williams said:

The setup or institutional arrangement around bitcoin and other cryptocurrencies, first of all they have problems with fraud, problems with money laundering, terror financing. There’s a lot of problems there.

His comments come at a time when bitcoin has been experiencing a surge in value over the past few days. According to CoinMarketCap, the number one cryptocurrency is trading at over $8,500 – at the time of publishing – pushing its market cap back up to $144.4 billion. However, it remains a far cry from December highs when it was trading within touching distance of $20,000.

Yet, even though the market saw the worst first quarter for bitcoin’s value in its history in the first three months of 2018, with market conditions elsewhere showing significant declines, optimism remains. Just yesterday it was reported that now is a good time to purchase bitcoin, with the bear market seemingly over, according to one hedge fund manager. Not only that, but one researcher has projected that the price of bitcoin could likely soar to $25,000 by the end of 2018.

Despite, this, however, Williams doesn’t appear to have much faith in the market, conceding that his views are ‘very biased’ considering he’s spent most of his career in the central banking world. In his opinion, ‘the idea of the supply of currency and thinking about currency really belongs more in the sphere of government and central banks.’

Interestingly, while some bankers appear to be arguing against cryptocurrencies and their steady growth into the mainstream, they seem to be failing to deal with the $164 trillion global debt problem, a figure reported by the International Monetary Fund (IMF).

Yesterday, it was questioned whether bitcoin and other cryptocurrencies could be the answer that the banking world needs to solve the issue. It remains to be seen whether or not that is the case; however, it begs the question: if the banking world can’t do it, isn’t it time someone else tried?

Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Bitcoin

New York Gives SoFi Green Light on BitLicense

Published

on

shutterstock_58682437

New York State Department of Financial Services (NYDFS) has approved SoFi’s BitLicense application, allowing SoFi Invest customers in New York to trade cryptocurrencies on its platform through SoFi Digital Assets, LLC.

In response to requests from its members, SoFi launched the ability to trade cryptocurrencies in September of this year within the overall SoFi Invest platform. After a rigorous application process, SoFi can now provide its members in the state of New York a trusted, secure platform to trade crypto.

“Putting our members’ interests first is our top priority at SoFi,” said Anthony Noto, CEO of SoFi. “That includes both offering individuals the products they want, like cryptocurrency within SoFi Invest, as well as protecting them, through a solid regulatory framework like that created by the New York State Department of Financial Services. We’re thrilled to now be able to offer the trading of cryptocurrency, in addition to active and automated investing, as part of SoFi Invest in New York State, in addition to the full suite of SoFi products that help our members borrow, save, spend, invest, and protect their money.”

The state of New York uses a thorough, measured approach to review applicants for the BitLicense. The NYDFS ensures companies adhere to high standards of consumer protection, security, and fraud-prevention. “This approval is a testament to our ongoing commitment to earn the trust of regulators and stakeholders as we try to offer investors more choice for products and services across the country,” Noto said.

SoFi Invest, released to the public earlier this year, offers both automated (robo-advising) and active investing (trading) with no fees on stock trading or account minimums. The platform is the first of its kind to offer automated and active investing with stocks, ETFs and crypto through a single app.

Additional information about SoFi Invest can be found at https://www.sofi.com/invest/buy-cryptocurrency/.

Continue Reading

Bitcoin

BitMEX: Bitcoin’s Initial Block Download

Published

on

Bitcoin

Abstract: We test the performance of Bitcoin Core by successfully conducting 35 initial block downloads (IBDs) and recording the amount of time the node takes to synchronize with the network. We used software releases in the period spanning from 2012 to 2019. The results show a considerable and consistent improvement in the performance of the software, but also a high degree of variance. Even with the latest computer hardware, older versions of Bitcoin struggled to get past the pickup in transaction volume which occured in the 2015 to 2016 period. Therefore we conclude that without the software enhancements, an initial synchronization today could be almost impossible.

Figure 1 – Bitcoin Initial Block Download Time (Days) – Average Of 3 Attempts

(Source: BitMEX Research)
(Notes: Synchronization up to block 602,707. Further details in the notes below)

Overview

To test the performance of Bitcoin Core during the initial synchronization, we successfully conducted 35 initial block downloads (IBDs) and recorded the amount of time each attempt took. The results are shown in Figure 1 above and illustrate that there was a significant improvement in speed when Bitcoin Core 0.12.0 was released in February 2016, due to the upgrade from OpenSSL to libsecp256k1 for signature verification. Libsecp256k1 was built specifically for Bitcoin. Since then, the improvements in speed were much slower and due to the high variance in IBD times, the improvements are only clearly visible after multiple attempts. However, even after Bitcoin Core 0.12.0 was released in February 2016, a small gradual improvement in performance is still visible after each software release from Bitcoin Core 0.13.0 to Bitcoin Core 0.19.0.1.

Of course, IBD time is only one metric, and there are plenty of other angles and considerations that one can use to evaluate the performance and capabilities of Bitcoin Core. While the IBD time may not be the perfect or complete measure of overall software performance, it is highly resource-intensive and therefore potentially a good metric to benchmark.

This report follows on from two previous experiments:

  • In November 2018 Jameson Lopp conducted a similar exercise, however that analysis focused on independent implementations, while this analysis focuses on older versions of Bitcoin Core (or just “Bitcoin”, as some of the older software pre-dates the name “Bitcoin Core”).
  • Sjors Provoost also conducted this experiment in July 2017, although Sjors provided data for fewer synchronization attempts.

Full Results and Raw Data

Figure 2 – Bitcoin Initial Block Download Time (Days)

(Source: BitMEX Research)
(Notes: Synchronization up to block 602,707, further details in the notes below)

System Specification & Other Notes

MacBook Pro (64 bit)
Linux VPS (64 bit)
OS
macOS Mojave (10.14)
Ubuntu 18.04.3
Processor
6 Core Intel i9 2.9GHz
8 Core Intel Xeon
Memory
32GB
32GB
Storage
1 TB Flash Storage
640GB Flash Storage
Internet Downstream Bandwidth
62Mb/s
2,000Mb/s
Internet Upstream Bandwidth
20Mb/s
400Mb/s
IBD ended at height
602,707
602,707
Bitcoin.conf settings
assumevalid=0
dbcache=24000
maxmempool=500

Full Table of Results

Client Client release date
Sync Time (Hours)
Machine
Bitcoin Core 0.19.0.1
24/11/2019
11.4
MacBook Pro
Bitcoin Core 0.18.1
20/07/2019
10.4
MacBook Pro
Bitcoin Core 0.17.0
03/10/2018
17.7
MacBook Pro
Bitcoin Core 0.16.0
28/02/2018
18.5
MacBook Pro
Bitcoin Core 0.15.0
14/07/2017
21.1
MacBook Pro
Bitcoin Core 0.14.0
08/03/2017
16.4
MacBook Pro
Bitcoin Core 0.13.0
17/08/2016
24.7
MacBook Pro
Bitcoin Core 0.12.0
17/02/2016
15.8
MacBook Pro
Bitcoin Core 0.11.2
10/11/2015
53.3
MacBook Pro
Bitcoin Core 0.10.0
12/02/2015
81.2
MacBook Pro
Bitcoin Core 0.9.0
18/03/2014
85.1
MacBook Pro
Bitcoin Core 0.8.6
09/12/2013
Abandoned
MacBook Pro
Bitcoin Core 0.19.0.1
24/11/2019
13.6
Linux

Bitcoin Core 0.18.1

20/07/2019
15.9
Linux

Bitcoin Core 0.17.0

03/10/2018
13.3
Linux

Bitcoin Core 0.16.0

28/02/2018
18.8
Linux

Bitcoin Core 0.15.0

14/07/2017
17.9
Linux

Bitcoin Core 0.14.0

08/03/2017
25.1
Linux

Bitcoin Core 0.13.0

17/08/2016
15.8
Linux

Bitcoin Core 0.12.0

17/02/2016
14.8
Linux

Bitcoin Core 0.11.2

10/11/2015
46.0
Linux

Bitcoin Core 0.10.0

12/02/2015
77.2
Linux

Bitcoin Core 0.9.0

18/03/2014
78.9
Linux

Bitcoin Core 0.8.6

09/12/2013
98.5
Linux

Bitcoin Core 0.19.0.1

24/11/2019
14.0
Linux

Bitcoin Core 0.18.1

20/07/2019
13.7
Linux

Bitcoin Core 0.17.0

03/10/2018
16.0
Linux

Bitcoin Core 0.16.0

28/02/2018
18.2
Linux

Bitcoin Core 0.15.0

14/07/2017
17.9
Linux

Bitcoin Core 0.14.0

08/03/2017
17.0
Linux

Bitcoin Core 0.13.0

17/08/2016
21.9
Linux

Bitcoin Core 0.12.0

17/02/2016
17.1
Linux

Bitcoin Core 0.11.2

10/11/2015
44.1
Linux

Bitcoin Core 0.10.0

12/02/2015
82.2
Linux

Bitcoin Core 0.9.0

18/03/2014
82.1
Linux

Bitcoin Core 0.8.6

09/12/2013
72.6
Linux

(Source: BitMEX Research)

Analysis of the Results

As Figure 2 above illustrates, even when conducting the IBD with the same software and with a machine with the same specification, there is considerable variance in the reported times.

Figure 3 – IBD time vs Client Release Date (Days) – Average Time of 3 Attempts

(Source: BitMEX Research)
(Note: For the Bitcoin 0.8.6 client, the results above are an average of only 2 attempts)

Figure 3 above indicates that the performance of the software improved incrementally with each software release, with the exception of the strong performance of Bitcoin Core 0.12.0. However, despite the apparent clear trend in the above chart, the large variance and in IBD times on each attempt could indicate there is considerable uncertainty. One may need more sample data before drawing strong conclusions about improvements in performance since 2016. It is possible the variation is primarily caused by issues in the Bitcoin P2P network or the internet connection and therefore a good area of further study may be to compare the re-scan speed, the time taken to fully verify the blockchain once it has already been downloaded.

Bitcoin Core 0.12.0 performs well in the above analysis. This may be because Bitcoin Core 0.12.0 has libsecp256k enabled, but does not validate signatures for transaction inputs where the witness is segregated (Segregated Witness). Therefore Bitcoin Core 0.12.0 does not validate all the signatures in the blockchain post August 2017, giving the client somewhat of an “unfair advantage”. However this advantage may also apply to Bitcoin Core 0.13.0, despite this node not appearing to be an outlier. Of course all the versions prior to Bitcoin Core 0.12.0 have that same “unfair” advantage, but this is dwarfed by the disadvantages of using OpenSSL.

Syncing The Client Up To Its Release Date

The below chart (Figure 4) illustrates the time it takes to synchronize a client, up until the block height on the date the software was released.

Figure 4 – IBD Time Up To Client Release Date (Days)

(Source: BitMEX Research)
(Note: Data for the nodes running on Linux only. Bitcoin Core 0.19.0.1 only synced up to height 602,707)

The chart shows that the trend was reasonably flat from Bitcoin Core 0.8.6 to Bitcoin Core 0.14.0, at that point the scalability improvements could not match the impact of time progressing and the blockchain increasing in height, and the chart shows an upward trend. Unfortunately the rate of software improvement has been reduced in recent years, perhaps as the low-hanging fruit improvements have already been made. Higher transaction volume may have also contributed to this. Future scalability improvements may be a lot more challenging, and even if the 4 million unit blockweight limit is maintained, IBD times may continue to increase going forwards, despite further software upgrades and moderate increases in hardware performance.

The Failed IBD Attempts

We did successfully compile and run versions of Bitcoin prior to 0.8.6, however, the synchronization became slow when the node reached the 2015 to 2016 period. The pre-0.8.6 nodes, such as 0.7.0, did successfully get past the apparent hardfork in 2013, by manually changing the lock limit, however 2015 proved too challenging due to the increased transaction volume, and the node stopped processing blocks. We tried restarting the node, which did help push it forwards, but then it only got stuck again. We then even tried running Bitcoin Core 0.7.0 on our brand new local machine, with 64 GB of RAM and 8 Intel i9 processors, however the node was still unable to get past 2016. With many of the scaling parameters involved being non-linear, one cannot simply throw more hardware at the problem.

On occasions when the nodes got stuck on a block and we re-started, we abandoned the synchronization after 4 restart attempts. For Bitcoin Core 0.8.6 on the MacBook Pro, the synchronization was abandoned when the leading block was in 2016. Although this is slightly disappointing, no restarts were required for the remaining 35 successful synchronizations.

Conclusion

Other than the fact that the BitMEX IT department should be more cautious when issuing BitMEX Research with MacBook Pros, the data illustrates the significant scalability enhancements which have been delivered over the last seven years. The transition to libsecp256k being the most significant improvement. The large reductions in IBD times and the inability of old nodes to fully synchronize indicates that if it were not for these scalability enhancements, by now Bitcoin would be essentially dead, even if users had the highest specification hardware available. The data also shows that technological innovation is unlikely to keep up with the growing blockchain going forward and that IBD times will increase.

Continue Reading

Bitcoin

Most Profitable Option of ВTC Gambling

Published

on

real_1569851681

If you decide to make money on sports betting or on playing bitcoin poker, the website of the reliable company will easily provide you with the suitable opportunities.

The process of earning crypto currency is now greatly simplified thanks to the special feature of the presented bookmaker office, ВTC gambling 1xBit.com. Such type of entertainment allows the users to spend some quality time and earn digital assets at the same time and same place!

The reliable office offers its customers to take advantage of all the benefits available to them. If you decide to start your way in gambling here, you will certainly appreciate the following features:

 

  • Bonus offers. All new customers of the bookmaker can get a nice bonus during registration, which can be used right away.
  • Simplicity. Registration on the site takes only a couple of minutes, and the navigation here is very clear even for those who came here for the first time.
  • Wide opportunities. The company’s customers are able to not only try their hand at BTC gambling on 1xBit.com, but also bet on sports to increase their digital assets.

In any case, the cooperation with the reliable bookmaker office will bring users positive emotions, opportunity to put their knowledge into practice and use cryptocurrency without any additional costs.

Try your hand at bitcoin poker

Gambling can be a source of stable income for you even in the long run. We should also mention bitcoin poker https://www.1xbit.com, presented on the website of the trusted bookmaker. This version of the game will help you to not only convert your knowledge into profit, but also get cryptocurrency at no additional cost.

If we talk about sports betting, then the proven platform offers a wide selection of sports. According to user reviews, the most popular of them are:

  1. Football
  2. Basketball
  3. Tennis
  4. Hockey
  5. Volleyball
  6. Boxing
  7. Cybersports

In football, the sports season has already begun in most European national championships. The English Premier League is the most popular and strongest of them. Currently, the leader of the standings in Liverpool, which has not a single defeat. The previous year, the Reds became vice champions, losing the coveted title to Manchester City. The team of Josep Guardiola, who became the champion of the 2018/2019 season, now ranks second, but everything can change over the long tournament distance.

After all, the most important thing is that the customers are able to choose the most profitable options for them based on their own preferences.

 

Continue Reading

Bitcoin

CME Group to Launch Bitcoin Options in Q1 2020

Published

on

Bitcoin Charts

CME Group, the world’s leading and most diverse derivatives marketplace, today announced it will launch options on its Bitcoin futures contracts in Q1 2020, pending regulatory review.

“Based on increasing client demand and robust growth in our Bitcoin futures markets, we believe the launch of options will provide our clients with additional flexibility to trade and hedge their bitcoin price risk,” said Tim McCourt, CME Group Global Head of Equity Index and Alternative Investment Products. “These new products are designed to help institutions and professional traders to manage spot market bitcoin exposure, as well as hedge Bitcoin futures positions in a regulated exchange environment.”

Since their launch in December 2017, market users have rapidly adopted CME Bitcoin futures for their hedging and trading needs. There have been 20 successful futures expiration settlements and more than 3,300 individual accounts have traded the product since inception. Year to date, nearly 7,000 CME Bitcoin futures contracts (equivalent to about 35,000 bitcoin) have traded on average each day. At the same time, institutional interest continues to build with the number of large open interest holders reaching a record 56 in July.

CME Group is the only derivatives marketplace where customers can hedge or trade benchmark options on futures across every investable asset class, with average daily volume of 4.3 million in 2019 to date. By launching Bitcoin options, the company is providing clients with additional tools for precision hedging and trading.

Continue Reading

Bitcoin

FIN-FSA registers LocalBitcoins as a Virtual Currency Provider

Published

on

IMG_1218

The Finnish Financial Supervisory Authority, FIN-FSA, has registered LocalBitcoins as an official virtual currency provider. Starting from the beginning of November 2019, only registered virtual currency providers that fulfil the legal requirements are allowed to operate in Finland.

As part of the registration process, the FIN-FSA has determined that LocalBitcoins has suitable procedures in place to prevent money laundering and terrorist financing, that customer assets are adequately held and safeguarded, and that the company’s management and key personnel fulfil the fitness and propriety criteria.

Registering to be an official virtual currency provider is part of a longer evolution in which LocalBitcoins has invested in the transparency, reliability and accountability of its Bitcoin exchange service globally. “Finland is a well-functioning society, which holds trust and confidence at high levels. At the same time, the controls in the financial sector are of particularly high quality and the position of the clients is well protected. These themes are also at the heart of LocalBitcoins’ operations” says Sebastian Sonntag, CEO.

In the near future, LocalBitcoins intends to continue developing its operations, with a focus on customer service and on topics covered by the FIN-FSA, such as the prevention of money laundering. “Operating as an official virtual currency provider strengthens our position and enables us to continue to operate responsibly and reliably. At the same time, it opens up new business opportunities for us. Our goal is to create a truly global marketplace where everyone, regardless of their starting point, can participate in the virtual economy,” comments Sonntag.

Continue Reading

Bitcoin

Bitcoin is Not Real

Published

on

Bitcoin

Bitcoin is not real, and any purchase amounts to speculation, says ECB’s ex-chief as he pours cold water on cryptocurrency. The European Central Bank’s former president Jean-Claude Trichet said he is doubtful that cryptocurrencies can ever become the future of money, becoming the latest monetary authority to pour cold water on the simmering technology that seeks to disrupt and disintermediate global central banks from their control of currencies.

“I am strongly against bitcoin, and I think we are a little complacent,” Trichet said during a panel discussion at Caixin’s 10th annual conference on Sunday in Beijing. “The [crypto]currency itself is not real, with the characteristics that a currency must have.”

Buying a cryptocurrency is “in many respects pure speculation,” said Trichet, who led the ECB from 2003 to 2011, after a decade as governor of the Bank of France. “Even if [the cryptocurrency] is supposed to be based on underlying assets, I am observing a lot of speculation. It is not healthy.”

Trichet’s comment echoes the concern shared by global central banks about the threat posed by cryptocurrencies, for their decentralisation of traditional currencies, disruption of the global financial system and hindrance to monetary authorities in controlling the value of money. The ECB’s board member Benoit Soeure went as far in September as warning that cryptocurrencies could “challenge the supremacy of the US dollar,” in a report on CNBC.

Continue Reading

Altcoins

BitMEX platform now in Trade-mate.io

Published

on

BitMEX

Nowadays, the monitoring of all the statistics regarding exchange accounts and the management of all the potential forces that can lead to alterations, crucial data for all the traders, has become more accessible thanks to a well-known platform, called Trade-mate.io.

This platform constitutes the project of a very experienced team with significant contributions in the field of automated systems. In this platform, the traders can carry out exchanges either automatically or manually, and they can use Binance and Poloniex crypto exchanges as well. Other than that, the users can also benefit from the BitMEX trading platform via Trade-made.io, making their life easier.

Trading on BitMEX

BitMEX is a trading platform that provides to his users the ability to participate in the financial market worldwide by using the so-called bitcoins. This platform is the first one where investors are provided with crypto derivatives that give the possibility to execute transactions with a higher profit margin, with leverage up to X100.

Although, because of the emerging technical issues during the implementation of BitMEX via API have prevented many large exchange platforms of adopting it, that didn’t dissuade the Trade-mate.io of integrated it, widening its users’ potentials even more.

Minimizing the risk of loss

Even though the X100 leverage scenario is very attractive to all the traders, the risk of loss must not be overlooked. Even the most experienced traders are not fully protected from such a great risk ratio, as the price of the triggered order is too close to the elimination zone, which can lead to an X100 loss. On the grounds of that, Trade-mate.io has set an X20 limit at the trading leverage to protect its investors from a great loss of their deposits.

Cross-margin

Cross-leverage hides big risks, as it uses all the available funds in an account’s balance to cover an open position. If the price is moving in the right direction, the leverage will be reduced as well as the collateral due to the accumulated profit. Albeit, in the case, that the leverage will escalate, as a consequence, there will be a total loss of the initial funds. In other words, when the position is opened and the order is liquidated, the entire balance will be reset.

Because of its highly risky nature, the cross-leverage is not recommended for risk-averse investors. It may be advisable for risk-neutral users, as it offers the ability to calculate again the size of the leverage, which will vary within acceptable values.

Because of its high-risk nature, the Trade-mate.io does not support cross-leverage.

real_1572955193

Why use Trade-mate.io platform

One of the most important features of the Trade-mate.io platform is the fact that an order is placed with a take profit and stop loss simultaneously and, they can be altered either automatically or manually, providing to the investor with the opportunity to make Smart Trade functions.

A Smart Trading process consists of two types of orders, the limit order, and the market order. In the first case, an order is placed at the price of interest and when it riches the specified level, the order is activated. In this case, the order is pending. In the case of the market order, the purchase or the sale of an instant market asset is made at that moment.

Trailing mode

The trailing mode is a Smart Trade’s function that rearranges the orders based on the specified parameters, allowing the trader to minimize the risk and to increase his profits. Trailing mode consists of three orders:

1. Trailing take profit

In this case, the order parameters change the value of floating take profit and the default setting is 1%. As the price attains the level of the determined take profit, the take profit is being automatically moved to the set value until the price is no longer changing.

2. Trailing stop loss

The difference with taking profit is that, in this case, instead of taking profit, the taking loss is the one that is moved as the price increases and it remains stable when the price is decreased.

3. Trailing ladder

Here, as soon as an order is opened, the take profit and stop loss are triggered concurrently. In more detail, when the price approaches the first level of taking profit, the stop loss is moved to the break-even point. This will continue until the price crosses the stop loss line and the sell is activated.

It should be emphasized that this mode is not included in the BitMEX platform or any other crypto exchange.

real_1572955202

Edit a task

In the trade-mate.io platform, the traders are also able to edit the current task without canceling it, unlike with other crypto exchange users where the users are obliged to cancel the old task in order to create a new one.

In the Trade-mate platform, the task can be edited before the order is been activated. The traders are able to cancel the task, to change it in case they want to sell cryptocurrency when the price has reached desirable levels or to average it. By this can be benefit traders dealing with leverage, as once they have created an order, they are able to edit it in the meantime, making the whole process more simple.

Last but not least, in this platform, the traders possess the ability to change even the control panel and to make it comfortable for them to use it. They can move the elements in the control panel and adjust them at the most convenient for them positions by just dragging them around the screen.

Copy on BitMEX

BitMEX gives the opportunity to its traders to copy trades from other trades, the so-called auto trading. In addition, traders who execute successful trading on the crypto market, they receive incomes from the subscribers. That’s why Trate-mate.io selects only the traders with the highest ratings in order to guide others. Again, for the safety of its users, the leverage for auto trading will be no more than X5. In this way, liquidating balances are prevented.

Continue Reading

Bitcoin

Lone Bitcoin Whale Likely Fueled 2017 Price Surge, Study Says

Published

on

Binance

A Texas academic created a stir last year by alleging that Bitcoin’s astronomical surge in 2017 was probably triggered by manipulation. He’s now doubling down with a striking new claim: a single market whale was likely behind the misconduct, seemingly with the power to move prices at will.

One entity on the cryptocurrency exchange Bitfinex appears capable of sending the price of Bitcoin higher when it falls below certain thresholds, according to University of Texas Professor John Griffin and Ohio State University’s Amin Shams. Griffin and Shams, who have updated a paper they first published in 2018, say the transactions rely on Tether, a widely used digital token that is meant to hold its value at $1.

“Our results suggest instead of thousands of investors moving the price of Bitcoin, it’s just one large one,” Griffin said in an interview. “Years from now, people will be surprised to learn investors handed over billions to people they didn’t know and who faced little oversight.”

Tether rejected the claims, with General Counsel Stuart Hoegner arguing in a statement that the paper is “foundationally flawed” because it is based on an insufficient data set. The research was probably published to back a “parasitic lawsuit,” the general counsel added.

Bitfinex and Tether aren’t new to controversy. The exchange is owned and operated by the same executives who control Tether, and multiple traders have questioned a key assertion about the coins — that each one is backed by one U.S. dollar. The tangled web has attracted scrutiny from the U.S. Justice Department and New York’s attorney general, who accused Bitfinex in an April lawsuit of trying to hide the loss of hundreds of millions in customer funds.

Griffin and Shams’s hypothesis that Bitcoin was manipulated is based partly on the theory that new Tethers are created without the dollars to back them and then used to buy Bitcoin, leading to rising prices. The authors examined Tether and Bitcoin transactions from March 1, 2017 to March 31, 2018, concluding that Bitcoin purchases on Bitfinex increased whenever Bitcoin’s value fell by certain increments. Griffin and Shams didn’t name the entity on Bitfinex that they think was responsible. They shared their updated research with Bloomberg News.

“This pattern is only present in periods following printing of Tether, driven by a single large account holder, and not observed by other exchanges,” they wrote in their new peer-reviewed paper, set to be published in a forthcoming Journal of Finance. “Simulations show that these patterns are highly unlikely to be due to chance. This one large player or entity either exhibited clairvoyant market timing or exerted an extremely large price impact on Bitcoin that is not observed in aggregate flows from other smaller traders.”

Continue Reading

Bitcoin

A-share blockchain stocks rally on hopes of investment explosion

Published

on

Bitcoin Drop

Stocks of many Chinese blockchain technology-related A-share firms rose to the daily limit of 10 percent immediately after stock markets opened on Monday, amid expectations that more capital would be funneled into the sector following official endorsement.

Feitian Technologies Co, a Beijing-based supplier of smart-card-based security solutions and products, saw its stocks rise 10 percent to 14.85 yuan ($2.10). Previously, the company said it had released equipment for the safe storage of blockchain-based digital currency.

Shunya International Martech Beijing Co, a Beijing-based integrated communications firm, also saw its price rise 10 percent to 18.92 yuan.

In September, Shunya announced that one of its joint stock companies specialized in the application of blockchain technology in the real economy, including supply chain finance, smart ports and blockchain-based food traceability management.

Bitcoin’s price had reached $9,728.93 as of press time, up roughly 22 percent from Friday, data from Coindesk showed.

Chinese President Xi Jinping urged increased efforts to speed up development in this sector, underscoring the important role of blockchain technology in the new round of technological innovation and industrial transformation.

Following the news, Shenzhen Xunlei Networking Technologies Co soared 107.76 percent to $4.82, its highest daily rise since its listing on Nasdaq in 2014.

In October 2017, Xunlei announced it was transitioning from an online services provider into a blockchain company, and released a blockchain-based product named OneThing Cloud.

Other companies, including Beijing Certificate Authority Co, IT solutions provider Yusys Technologies Co and cryptography technology-based information security equipment provider Westone Information Industry Inc, soared to the daily limit on Monday.

The Chinese president’s endorsement of the technology is expected to enhance market appeal for blockchain shares and boost investment, said Yang Delong, chief economist at Shenzhen-based First Seafront Fund Management Co.

“But the application of the technology still has a long way to ago. We need to follow whether or not these public companies really implement the national policy and invest in research and applications,” Yang told the Global Times.

On October 24, Zhongguancun Science Park announced financial support for the research and development of 2,920 small technology companies, including dozens of blockchain-related firms such as innovative blockchain platform Beijing-based ASCH, one-stop blockchain technology service firm Chinaup and Oracle Chain. Details about the subsidies have not yet been made available.

Continue Reading

Bitcoin

Bitcoin Suisse Makes Strategic Investment in CoinRoutes

Published

on

Bitcoin

Bitcoin Suisse, the oldest and largest crypto-financial services company in Switzerland announces the purchase of a sizeable minority stake ($3 million) in CoinRoutes Inc., a leading US/Swiss-based trade automation and trade intelligence provider. Bitcoin Suisse has used the CoinRoutes software for over one year and fully integrated it into its own brokerage and trading platform.

As a crypto brokerage firm, the efficient handling of client orders is key and requires sophisticated trading systems which involve smart routing of orders and fast trade execution. For a full year, Bitcoin Suisse has tested the Smart Order Routing and patent-pending Consolidated Best Bid & Offer (CBBO) technology of CoinRoutes, integrating it into its platform and using it to deliver premium brokerage and trading services to its international crypto asset client base. Now Bitcoin Suisse has invested directly in CoinRoutes, acquiring a $3 million share of the company’s US entity.

Niklas Nikolajsen, the Chairman of the Bitcoin Suisse Group said: “CoinRoutes provides important infrastructure for our operations and we have been absolutely satisfied with their technology for the past year. We are glad to have acquired both a firm partner and a large shareholder position in the company and we look forward to working closely together with Coinroutes in the years to come and to help the company realize its full potential.”

As part of the investment, Nikolajsen will join the Board of Directors of both CoinRoutes’s US and Swiss entities.

David Weisberger the CEO of CoinRoutes Inc. added: “Bitcoin Suisse is an ideal partner and shareholder of CoinRoutes, being one of the world’s largest crypto brokers and crypto financial service providers. We welcome our new partner as we continue our quest together to bring Best Execution to crypto investors around the world.”

The crypto asset market continues to see volatility even as prices have settled over the past several months after a rapid rise from the beginning of the year. These and other trends continue to offer investors significant trading opportunities. The usage of CoinRoutes smart routing technology allows Bitcoin Suisse to execute trades at best prices across all major crypto asset exchanges, with whom Bitcoin Suisse maintains close relationships as part of its prime brokerage services.

Continue Reading

Trending