ByteCoinByteCoin BCN news

Private cryptocurrency with untraceable transactions
Price, 24h
0.000596 USD / 0.00000017
0.00% / 0.00%
Volume, 24h
153,661 USD
10.06%
Marketcap
109,242,209 / 0.10%
Emission
100%
Chart price/vol/NIS 7d
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What Is Bytecoin (BCN)? | The Complete Guide to the Monero Predecessor

What Is Bytecoin? Bytecoin is an untraceable cryptocurrency that uses CryptoNote ring signatures to provide anonymous transactions. As a primarily peer-to-peer (p2p) payment system, Bytecoin has many of the same use-cases as Bitcoin.   Created in 2012, Bytecoin is one of the earliest developed cryptocurrencies. Until recently, the team behind the coin has kept themselves anonymous. Now, though, they’ve opened up multiple communication channels, removed some layers of anonymity, and even built several local communities. The coin has a deep history with Monero, another popular privacy coin and fork of Bytecoin. In this Bytecoin beginner’s guide, we’ll be discussing: How Does Bytecoin Work? Bytecoin Team & Progress Trading Where to Buy BCN Where to Store BCN Conclusion Additional Bytecoin Resources How Does Bytecoin Work? With a similar functioning coin, the Bytecoin team is working to improve on many of the issues that have surfaced within Bitcoin – specifically the one’s surrounding privacy. Beyond that, the team is hoping to make the coin more scalable and flexible to the ever-changing financial atmosphere. Traceability Bitcoin transactions are on a public ledger giving you the ability to easily track transfers between wallets. The only way to keep your transaction anonymous is by using a trusted third-party tumbler to mix transactions. Although there are plans to improve Bitcoin’s privacy functionality, they seem to still be a ways away. Bytecoin in based on CryptoNote to keep your transactions untraceable and unlinkable. Each transaction uses a one-time public key even if there are multiple transactions with the same recipient. Inherently, this eliminates the problem of address re-use and decreases the traceability of transactions. Cryptonote Key Diagram To eliminate the linkability between transactions and transaction participants, Bytecoin utilizes one-time ring signatures. In a ring signature, your signature to send funds mixes with other possible accounts on the network. You’re in control of your ring signature’s level of anonymity. As you include more inputs, your transaction becomes more obscure, but you also have to pay higher transaction fees. Proof-of-Work (PoW) Bitcoin’s PoW consensus algorithm heavily favors miners that use powerful GPU and ASIC machines over those trying to mine with CPUs. This causes the network to centralize around the more powerful miners. Bytecoin attempts to close the gap between these two classes of miners with a new algorithm, Egalitarian Proof-of-Work (PoW). Egalitarian PoW uses a version of skrypt, a proof of work function similar to the hashcash function used by Bitcoin. The difference between the two is that skrypt isn’t memory bound. Because of this, you can cheaply produce highly efficient CPU mining rigs. GPUs will always be about 10 times more effective, though. The skrypt function helps to balance the power dynamic because expensive GPUs can only be linearly better than their CPU counterparts – not exponentially as they previously have been.   Coin Emission Bitcoin’s mining rewards are halved about every 4 years. In the past, this has caused a sharp decline in the network hashrate immediately after it occurred. With a lower hashrate, the network is more susceptible to malicious activity like double-spending attacks. Bytecoin decreases the block reward with each block. This allows for a smoother decrease in block rewards than the piecewise function that Bitcoin uses. The reward follows the equation: BaseReward = (MSupply – A) / 218 MSupply is equal to (2^64) – 1 atomic units, the smallest divisible unit of BCN. A is the number of coins that were previously generated. Unfortunately, because Bytecoin has existed for so long, it may not be as worthwhile to mine as other PoW coins. Over 99% of the coins are already in circulation. Parameters Bitcoin has several hard-coded constants in its source code that you can’t easily change. In a constantly changing world where it’s nearly impossible to predict the future needs of the system, this poses a problem. We’ve already seen an example of this in the great block size debate. The Bytecoin team has specified three parameters that they’ve added flexibility to: Difficulty Size limits Excess size penalty The mining difficulty changes with each Bytecoin block as the network hashrate increases and decreases. This keeps a constant block rate even when the system traffic spikes or has a sharp drop in the number of miners. Every Bytecoin user is able to vote for the size of the blockchain, and each miner sets his/her own soft-limit for the size of the blocks that they mine. The hard limit of block sizes is set at twice the median of all previous blocks. These limits leave room for the blocks to grow, if necessary, as the network grows. Transaction sizes aren’t limited as long as you’re willing to pay the fee associated with them. To prevent miners from creating block sizes that are too large and bloat the blockchain, Bytecoin introduces an excess size penalty. The penalty decreases the block reward of large blocks with the following equation: NewReward = BaseReward * ( ( Block size / MN ) – 1 ) ^ 2 Where MN is the median block size of the previous blocks. Not the simplest equation, but it does the job. Bytecoin Team & Progress The Bytecoin project has been fairly fractured since its inception in July 2012. Previously, several isolated teams worked on the project without seemingly communicating with each other. This led to numerous forks and versions of the coin. In July 2017, the team decided to change their image and provide more transparency to the community. The team still remains pseudo-anonymous by only providing names and headshots on their webpage – no bios or social media links. But, it’s tough to expect more from a project that’s focused on privacy. UPDATE: The website no longer lists any team members. However, it does include a contact page with several means of communication including the email and name of the community manager. At the beginning of 2018, the team was busy at work refactoring their code and released a new public API in March 2018. Continuing to hit their project milestones, the team also entered the Asian market in Q1 of 2018. It appears as if entrance into the Middle East and African markets have been slightly delayed. Bytecoin’s 2018 Roadmap The 2018 roadmap coincided with a significant bump in marketing and business development. They’ve accomplished new partnerships with businesses, local communities set-ups, and more active communication channels. At the end of August 2018, the development team performed a hardfork on the network to provide dynamic fees. The roadmap for the remainder of 2018 and start of 2019 includes the Amethyst update, which brings HD wallets, unlinkable addresses, and auditable wallets among other features. Bytecoin Roadmap Competition With a focus on privacy, Bytecoin competes with other privacy coins like Monero, Zcash, and Dash. Monero is actually a fork from the original Bytecoin code. Monero supporters argue that the original Bytecoins (>80%) may have been pre-mined for 2 years before the public release, but this is still being debated by both parties. Trading There’s a little over 184 billion BCN coins in circulation right now. As the mining rewards decrease, there will only ever be a maximum of 184.47 billion BCN in the market. So, as you can probably tell, most of them have already been mined. The BCN price remained relatively stagnant between $0.00002 and $0.00005 until May 2017. At this point, the price skyrocketed to ~$0.0043 and an all-time Bitcoin high of 0.00000198 BTC. This rise in price coincided with an overall market interest in privacy coins as well as an announcement that Bytecoin would be implementing untraceable tokens – something the market had never seen before. baseUrl = "https://widgets.cryptocompare.com/"; var scripts = document.getElementsByTagName("script"); var embedder = scripts[ scripts.length - 1 ]; (function (){ var appName = encodeURIComponent(window.location.hostname); if(appName==""){appName="local";} var s = document.createElement("script"); s.type = "text/javascript"; s.async = true; var theUrl = baseUrl+'serve/v3/coin/chart?fsym=BCN&tsyms=USD,EUR,CNY,GBP'; s.src = theUrl + ( theUrl.indexOf("?") >= 0 ? "&" : "?") + "app=" + appName; embedder.parentNode.appendChild(s); })(); After this spike, the price steadily fell with a short-lived rise when the team announced a fresh focus on development transparency and communication. Like most other altcoins, the BCN price had a great bull run in December 2017. Shockingly, the BCN price moved against the falling bear market in May 2018 to reach another high of about $0.0126 (~0.00000146 BTC). The rise in price coincided with a Binance listing and was a source of controversy in the crypto community. Opponents allege that the coin was the center of a pump-and-dump once available on the platform while the team argues that the volatility was due to a network consensus bug. Binance has since delisted BCN. Privacy coins all seem to trend upward in price around the same time. Therefore, it wouldn’t be surprising to see another increase in BCN price coinciding with a price increase of Monero or Zcash. You should note, though, that BCN now sits flat at a price of around $0.000764 (0.0000002 BTC). Where to Buy BCN Even though the roadmap stated that BCN would be available on more exchanges in Q3 2018, you still have relatively few options to purchase some now. You can exchange Bitcoin for BCN on HitBTC and Poloniex. Before trading on those platforms, you’ll first need to buy Bitcoin on another exchange like GDAX. Where to Store BCN You have three choices to store your BCN: Desktop wallet Web wallet Mobile wallet The desktop wallet is available on Mac, Windows, and Linux, and you can access the web wallet from any web browser. Right now, only Android users can use the mobile wallet. The team has not announced a release date for the iOS wallet. When using these wallets, you should also set-up encrypted passwords and two-factor authentication. These additional measures will secure your wallet to a greater extent than the default set-up. Conclusion Bytecoin is one of the oldest blockchain projects and one of the first to focus on privacy for the end-user. Even with the goal of improving on Bitcoin, the team clearly states in their whitepaper that they don’t consider Bytecoin as a Bitcoin replacement. Instead, they feel that having multiple strong currencies is beneficial to everyone involved. The recent resurgence of team communication and transparency bring trust to a project that has a history considered by some to be questionable. That being said, the project continues to receive criticism from the community for issues like the alleged Binance pump-and-dump. As governments continue to be more involved with the crypto space, the interest in privacy coins will most likely continue to increase. It’s unclear whether Bytecoin will be the privacy coin of choice, though. Editor’s Note: This article was updated by Steven Buchko on 11.27.2018 to reflect the recent changes of the project. Additional Bytecoin Resources Website Github Reddit Twitter Telegram Youtube The post What Is Bytecoin (BCN)? | The Complete Guide to the Monero Predecessor appeared first on CoinCentral.
Coin Central

Privacy-Oriented Bytecoin Releases A New Roadmap

CoinSpeaker Privacy-Oriented Bytecoin Releases A New Roadmap The mysterious Bytecoin team has consistently focused their efforts on the development sector and continue to do so, in order to reinforce the technological foundation and move forward with the cryptographical aspects. Because of this, BCN will soon undergo a series of significant improvements. For the roadmap, The Bytecoin team has set six milestones including a hardfork, a web wallet update, early support of hardware wallets, and two essential releases. The team is planning to implement a HD wallet, unlinkable addresses, and improve P2P protocol and signature scheme. The new Beta builds (v.3.4.0 Amethyst) are scheduled for release on December 12th, and the stable Amethyst version is going live on February 7th, 2019. The mainnet hardfork is scheduled for March 6th, 2019. The alterations planned for Bytecoin’s codebase are poised to change the point of view on the CryptoNote technology completely, as the most provocative update is the introduction of auditable wallets, a feature that doesn’t coincide with the traditional logic of any CryptoNote-based coins. While the development team anticipates a lot of uses for this feature, they haven’t mentioned the utility of this feature. Another innovation that should be interesting for project followers is early support of hardware wallets. The planned software improvements, as mentioned in Bytecoin’s blog, display the logical progression of work the team has shown in the past months, and these improvements probably represent the most diverse and innovation-rich roadmap so far. Privacy-Oriented Bytecoin Releases A New Roadmap
Coinspeaker

Privacy Coin Runner-Ups: Bytecoin, PIVX, Verge, and Dash

Previously we evaluated the privacy of Monero and Zcash. Today, we’re going to look at some other coins that are frequently recommended for their privacy preserving capabilities. Bytecoin, PIVX, Verge, and Dash are usually all classed as privacy coins. Although, as we shall see, there are huge discrepancies between their levels of anonymity. Here, we’re focusing purely on privacy capabilities, breaking down the blockchain and network privacy features, followed by an examination of any centralization that undermines their supposed anonymity. Blockchain Privacy Blockchain privacy refers to features that obfuscate data on the blockchain such as addresses and transaction amounts. This is the most important level to secure privacy, without which, you can be identified relatively easily.  Bytecoin Bytecoin has a strong set of privacy features at the blockchain level. It leverages the CryptoNote protocol that provides it with ring signatures and one-time keys. Monero is actually a fork of Bytecoin, so you can be confident in the reliability of this well-tested technology. Unfortunately, the development team has proposed few privacy upgrades since then. The gap between Monero and Bytecoin’s blockchain privacy continues to grow and in this regard, and Bytecoin offers little unique value when comparing the two. PIVX PIVX has developed its own custom-made code, based on the Zerocoin protocol. It uses a blockchain-level mixing feature that is done through zero-knowledge proofs, the same technology that drives Zcash’s zk-snarks. Zero-knowledge proofs are relatively old, originating in 1985, so PIVX’s privacy backbone is well tested. This means that your private zPiv balance is dissociated from any particular address and the transaction record of all your spent coins is hidden. Verge January 2018 saw the advent of Verge’s Wraith Protocol, which enabled optional stealth addresses on the network. This is the first, and to date only, blockchain-level privacy feature for Verge. Unfortunately, given the several false claims and repeat major technical failures by the project, you should take this claim with a pinch of salt. Dash Dash’s single privacy feature is PrivateSend. This is a modified version of the CoinJoin proposal for Bitcoin, whereby transactions are mixed together in the hope of muddling the transaction pool sufficiently to achieve anonymity. Mixing like this is probably the weakest form of blockchain level privacy as nothing happens at a cryptographic level to anonymize users. Furthermore, as we shall see, this feature’s operation makes it far less secure. Network Privacy Network privacy refers to features like the Tor and I2P networks that seek to anonymize users activity on the network such as the hiding of IP addresses. They can either be built-in or optional. Bytecoin Currently, Bytecoin has no network level privacy built-in. This is unfortunate as it leaves your IP addresses and geolocations subject to scrutiny. PIVX PIVX offers reasonable privacy at the network level with the optional use of the Tor network. The development team is also working on the Dandelion Protocol and I2P integration, both of which should vastly improve network anonymity. We do not yet know release dates for these upgrades, though. Verge Verge’s privacy claims mainly attest to its network anonymity. Tor and I2P are both supported for transactions, aiming to obfuscate IP addresses. Unfortunately, again these claims have been subject to harsh scrutinies, such as reports that IP addresses were not being protected at all despite these supposed features. Dash Dash currently offers no network privacy features. Similar to Bytecoin, this leaves your network activity vulnerable to examination. Centralization Threats to Privacy Masternodes and Rewards Regardless of what any particular privacy features a coin offers, people often overlook how and who delivers these features. Even though, they can completely undermine the desired anonymity. Such is the case with Dash. Its PrivateSend mixing service can only be performed by masternodes. Unlike with other privacy coins, privacy depends on the goodwill and trust of another party. There is little to no way that any user of the Dash network can verify whether a masternode has effectively mixed their coins. Malicious Actors Dash’s PrivateSend problem is potentially made worse because of its susceptibility to malicious actors. There is nothing to stop a government, or any other entity operating masternodes from being able to identify addresses attempting to obfuscate their transactions. If the feature was instead built into the Dash protocol and trustless, as with CoinJoin, then it would be far superior for private uses. As it is, you should be cautious using Dash for purposes that require high-level or even moderate anonymity. Trusted vs. Trustless Fortunately, neither Bytecoin, Verge, or PIVX have this problem. The CryptoNote protocol that Bytecoin uses doesn’t require trust other than in the open-source code itself. The protocol has been around for several years and is well-reviewed and researched. Verge, likewise, has no direct reliance on trust. Although, the gap between its promises and what it delivers is debatable. PIVX’s setup is more nuanced. zPiv accumulators, which are responsible for ensuring privacy, are encrypted through RSA-2048 challenge keys. Technically this is not trustless. Although, according to the team, the hard drive that stored the generated factors was destroyed 25 years ago, and the PIVX team does not know them. This, though, is as a much an assumption as a fact. So, as it stands, you cannot have total confidence in the setup. Fortunately, if the keys were compromised this would undermine coin creation rather than privacy. What is more, the developer team is planning on migrating to a fully trustless setup through the integration of Bulletproofs, which are currently in their testing phase. Conclusion Of all these coins, PIVX seemingly offers the highest level of privacy for users right now. This is on account of its high-level of blockchain and network-level anonymity. It also has an active development team and promising roadmap, both of which place privacy as the number one concern. The same cannot be said for either Verge or Dash. Verge’s privacy claims are both contentious and difficult to corroborate with very little obfuscation at the blockchain level. Whereas, Dash’s single privacy feature is potentially undermined by its dependence on masternode trust. Bytecoin is a worthy runner-up to PIVX, with its adherence to the well-tested CryptoNote protocol. Although, little development is scheduled in the way of privacy. All things considered, you would be wise to stay hesitant of both Dash and Verge for any privacy demanding purposes. The post Privacy Coin Runner-Ups: Bytecoin, PIVX, Verge, and Dash appeared first on CoinCentral.
Coin Central

Poloniex Requires 2,000 Confirmations for Bytecoin Transactions

If you want to trade Bytecoin on Poloniex, you’re going to have to wait a significant amount of time, CCN has learned. This reporter decided to enter the BCH pre-fork trading at the exchange and wanted to use his Bytecoin holdings as part of that process. He withdrew them from where they were held and The post Poloniex Requires 2,000 Confirmations for Bytecoin Transactions appeared first on CCN
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Bytecoin (BCN) Developers Allegedly Pulled Off a Phantom Crypto Theft in Exit Scam

There have been a number of times when we, and other organizations that have covered some of the misery involved with Bytecoin. After being ousted from the likes of Binance and a number of other major coin exchanges, there are a number of team members (probably some coming from its community management team) still emerging occasionally to promise a ‘new roadmap' before disappearing into the opaque mist of the Bytecoin landscape. One of the long suffering BCN users came forward with a relatively plausible explanation of what happened with Bytecoin, and where the developers and core of the team have run off to. “The devs left the ship, did not you notice? the last move they made was, list in binance, send their bcn there, disable all bytecoin portfolios with a DDOS (the Bytecoin wallet allows a DDOS attack that leaves the network dead, if almost no hashpower) and while everyone was trying resuscitate the portfolios they culminated one of the biggest scams of cyptomundo, they sold all their coins and now they do not need to say anything, they have achieved their goal, do not you see?” As some would likely recall, the top exchanges listing caused the price of the coin to spike, sending its market cap to exceed $3 billion, which results in an individual coin jumping to $0.018, all before the mishaps and misery were to begin. The otherwise allegedly ‘private and untraceable' Bytecoin apparently wasn't equipped to handle this much in the way of investor interested, culminating a crash of its network, with no explanation being immediately available for the community or its investors after the spike happened. In this time, no one was able to withdraw or transfer their BCN tokens, and from there: panic snuck in and kicked off. During this period of time, Bytecoin's official Twitter page sported the following message: “The network is experiencing unusual high load. Transaction can be delayed, node synchronization can lag far behind. The team is working hard to solve this issue. It’s strongly recommended to avoid any transferring of BCN until the situation is resolved.” Shortly thereafter, the price began to undergo a significant drop, with people starting to speculatively panic. A number of accusations began to fly that the Bytecoin team is performing a classic pump and dump scheme, and these only flew in a number of directions. The price was indeed stuck around 50 sats before the Binance listing, and then it skyrocketed to 200 sats before the funds got frozen, which is a typical pattern that a PnD coin tends to follow. So, it's because of this network issue, it was later confirmed by Binance and CoinMarketCap, the initial fears that BCN developers actually performed a pump and dump on its investors aren'y baseless after all. Currently, as the lay of the land is right now, the coin never recovered from that initial panic. Since then, the price plummed to around 40 Satoshi, and has pretty much been in a state of flatline there before the recent market movements which allegedly moved it into the green again. The underlying fears of manipulation still ring true as the coin has plummeted quite considerably even after its latest run. So, for the moment, the few holders of Bytecoin still blindly believe that it's still “the father of Monero” do not and probably will not, in the future, have much reason to be happy about being investors in this coin. Bytecoin – Wolf in Sheeps Skin, A Scam all Along Monero's lead developer, Riccardo Spagni had some comments to make over this week: “The reality is that 82% of the coins were already mined before its ’public’ release. Even if the premined coins weren’t done so maliciously, it still means 82% of the coins in the hands of persons unknown and invisible. It basically centralizes a decentralized currency.” Out of the cryptocurrency world, 82% is a vast amount of coins to have been pre-mined, and it gives the respective developers and stakeholders the potential to influence the price of BCN solely with what they hold. Along with this, this means the possibility of a ‘pump and dump', meaning that the premined Bytecoins can easily be dumped on . the market, which, as a result, can cause the price to drop significantly. “Even if you take the fact that Monero is clearly leading the innovation race, I would think it dangerous to touch a coin where 82% of it is held by unknown actors who were not publicly observed during the period where they supposedly mined the coin. Having a shady history does not set a good precedent.”  –Spagni also says. It makes for a further concerning fact regarding Bytecoin that it has been on the market for so long and yet, there's very little information about the development team and its individual members. Even in the official website of the currency, you can only find a series of pictures and first names, but apart from them, there's nothing in the way of concrete information TL;DR – If you are stuck with a large amount of this new type of shit-coin, sorry to hear about your misfortune. your best bet right now is to sell it as soon as you can and take it as a valuable lesson in making wiser investment decisions.
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The Beginner’s Guide to Monero

Monero is an anonymous digital currency that enables untraceable and unlinkable transactions by obfuscating a public ledger. It combines ring signatures, stealth addresses, Kovri and RingCT in a way that hides senders, recipients, their IP addresses and transacted amounts

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US CFTC Plans to Seek Public Feedback to Better Understand Ethereum Blockchain

The latest report on Ethereum future contract unveiled that the Commodity Futures Trading Commission (CFTC) is looking for an in-depth analysis of Etherum blockchain. In order to improve the commission’s understanding of Ethereum and its underlying technology, the CFTC has announced its intention to publish a respective Request for Information (RFI) with the Federal Register. According to the statement: “The Commodity Futures Trading Commission (CFTC) is seeking public comment and feedback in order to better inform the Commission’s understanding of the technology, mechanics, and markets for virtual currencies beyond Bitcoin, namely Ether and its use on the Ethereum Network.” The Commission has put up a total of 25 questions which include topics such as the impetus for developing Ether and the Ethereum Network, especially relative to Bitcoin; the use of the Ethereum network by the developer community; scalability challenges, if any, of the Ethereum network; proof of work and proof of stake; similarities and differences in the governance of Ethereum and bitcoin networks; introduction of derivative contracts on Ether; and security issues, among others. Notably, one question asks: “How would the introduction of derivative contracts on ether potentially change or modify the incentive structures that underlie a proof-of-stake model?” A number of questions following this go further into detail about how the ether market might impact a derivatives market built on top of it – or vice versa. The CFTC said the comments received will benefit LabCFTC, the CFTC’s Fintech initiative, and help to inform the Commission’s understanding of these emerging technologies.
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Unbreakable: Mike Novogratz Remains a Bitcoin Bull in a Bleeding Market

Currently, when crypto believers generalize every Wall Street banker to be a Bitcoin critic, a celebrated hedge fund manager and former Goldman Sachs executive changed his perception. Mike Novogratz is a now a name beyond the mainstream finance, and perhaps among the only consistent voices speaking in favor of bitcoin even after its 80 percent-plus drop this year. The 54-year old financial veteran sat before Bloomberg’s Erik Schatzker recently to discuss how the crypto market crash impacted their ventures and how he remains confident about crypto’s long-term potential. Novogratz admitted being on the losing side, stating that his cryptocurrency merchant bank, dubbed Galaxy Digital Holdings Ltd, brought $136 million in losses to its investors when he was raising funds for it. Nevertheless, the crypto crash couldn’t put Galaxy beneath the grounds, and the project was still on its way to – at least – break-even in 2019, he explained. “We’re not nervous; we’re frustrated that our investors have lost money. We’ve got plenty of cash to run the business for a long time. I keep telling my guys we’re a surfer getting ourselves in shape for when the next wave comes, and when the wave comes we’d better be the Laird Hamilton of crypto.” Digital Gold in Making Analysts have continuously argued whether or not bitcoin has a use-case in the mainstream. A majority of them believes that the digital asset’s lower adoption make it an overvalued bubble similar to the infamous Tulipmania from the Dutch Golden age. Investors have entered bitcoin markets on a promise of getting rich quickly, and it is no more stable than a pyramid scheme, i.e., it is all horns but no product. Novogratz, on the other hand, interpreted bitcoin as a digital gold in the making, counterarguing that it is one of the only crypto assets that “gets to be a legal pyramid scheme.” Because, to him, it is the belief that denotes value to a store of value- nothing more, nothing less. “All the gold ever mined in the history of the world fits in an Olympic-size swimming pool,” reasoned Novogratz. “You’re out of your mind to think that pool’s worth $8 trillion. But it is because we say it is.” As a metal, a store of value asset like gold does have plenty of use cases. Most notably, it is a good reflector of electromagnetic radiation such as radio and infrared rays, as well as visible light. Therefore, gold makes an ideal metal when it comes to protecting artificial satellites, astronauts’ helmets and in electronic warfare planes. But, in reality, only about 17% of the mined gold gets used in industrial applications – minus jewelry – while the rest gets stored inside vaults. That being said, the value of gold bullion itself is 83% speculation and 17% use case. Bitcoin, according to Novogratz, strictly possesses such characteristics. “The fact that David Swensen [Yale University’s chief investment officer] put an investment into Bitcoin, with his reputation on the line, his endowment on the line, tells you something. Some of the smartest people in the investing world think it’s a store of value,” Novogratz asserted. Unbreakable: Mike Novogratz Remains a Bitcoin Bull in a Bleeding Market was last modified: December 12th, 2018 by Davit BabayanThe post Unbreakable: Mike Novogratz Remains a Bitcoin Bull in a Bleeding Market appeared first on NewsBTC.
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Mike Novogratz: Bitcoin Was a Drug and We’re at the Methadone Clinic Now

CoinSpeaker Mike Novogratz: Bitcoin Was a Drug and We’re at the Methadone Clinic Now A former partner at Goldman Sachs who is popularly called the “pretty face of cryptocurrency” Mike Novogratz, said that he is now the ugly face of the bust. Talking to Bloomberg, he pointed at SEC sanctions on certain ICOs and the uncertainty surrounding Bitcoin Cash’s hard fork as the reasons behind Bitcoin’s drastic fall from $6,200 to $3,400. However, Novogratz remains confident that Bitcoin will make a comeback. “I do believe Bitcoin is going to be digital gold. We have a business that we think can break even next year, if not make money. We’ve got plenty of cash to run the business for a long time. I keep telling my guys we’re a surfer getting ourselves in shape for when the next wave comes, and when the wave comes we’d better be the Laird Hamilton of crypto.” First, says Novogratz, they thought of crypto as of a bear market. “I went into it thinking in the long run crypto is going to be a real structural shift in the world and I can just hedge my portfolio. And to be fair, we did a really great job not losing money the first 60 percent down. What you forget is that a market like Bitcoin that’s down 84 percent has dropped 60 percent—and then another 60 percent. That’s where the pain happens. You start buying Ether again, because it’s only $400 after being at $1,300. But then it drops to $100, and you’ve lost 75 percent of your money. We haven’t done horribly in that context, but we’re still down.” He then explains what he thinks it’s next for crypto-world. He invested in a company called High Fidelity, which is a virtual world. “Me and you, we’ll sit down, and we’ll have virtual beers. People think I’m crazy when I say that, but Second Life does $500 million a year of GDP, real money traded back and forth in a virtual world with old technology. That’ll be the first use case where blockchain really works.” One of Novogratz ventures in the field of digital currency is the cryptocurrency bank Galaxy Digital LP which began trading back on August 1st, 2018. The bank was off to a very slippery start, losing 20 percent per share in a single day, which added to the company’s overall estimated losses of about $134 million in Q1 of 2018. At the time, the former Goldman Sachs partner once again said that he thinks “we’ve pretty much bottomed.” However, the market has plummeted since, as Bitcoin lost roughly another 60 percent of its value. Yet, Novogratz says that the situation is “not as dramatically as one would think.” Bitcoin Price Rise was Like a Drug High Addressing the fears surrounding Bitcoin he explains the price rise as a drug, “an instance of testosterone boiling over and its fall led to pessimism and rampant fear.” He said: “That was a drug, and I don’t say that lightly…there’s the pessimism, and the fear, and the “Oh my God, it’s going to zero.” But it’s not going to zero. We’re at the methadone clinic.” Novogratz had already been saying that the Bitcoin could hold its position till the end of the year and maybe rise, but then disaster struck. He thought Bitcoin, “was going to hold at $6,200…. but then Bitcoin Cash decided to fork again.” He also mentioned that ICO legislation by the SEC increased investor panic: “The SEC came out and sanctioned a few ICOs and said- oh, by the way, your investors can sue for damages. That scared the heck out of a lot of people.” Novogratz further added that “the ICO market is pretty much dead right now,” however, the regulatory body, “doesn’t want to kill this innovation.” Many crypto proponents of Bitcoin have equated the top crypto to digital gold, Novogratz is one among them, he said: “That means Bitcoin is the only one of the coins out there that gets to be a legal pyramid scheme. Just like gold is. All the gold ever mined in the history of the world fits in an Olympic-size swimming pool. You’re out of your mind to think that pool’s worth $8 trillion. But it is because we say it is. While I believe in the underlying technology and believe in the crypto movement, when prices get stupid, I sell. A lot of my friends in crypto just couldn’t let go. They were saying that this is going to change the world. Revolutions don’t happen overnight. I’d be walking down the street, and people would come up to me wanting to take selfies. That’s when I started to think, OK, this is weird.” Always Cautious About Bitcoin as a Currency It’s more than obvious that he is still being cautious. A year ago, he was known as one of the biggest pro-bitcoin advocates but always saying that bitcoin will be difficult for governments to shut down. “I’ve got concern that if price movements go higher we’re going to get more regulation, but I think it’s hard to shut down. I don’t think that’s a probability. Banks will be slow to move into the industry,” Novogratz then said, adding that he “doesn’t see quick adoption of bitcoin as a currency.“ He also said that one of the big risks out there right now is that prices are moving so fast that regulators are going to get nervous. “I could legitimately see bitcoin go $13,000, $14,000, $20,000, $25,000 and see somebody balk.” He also warned on the fact that right now most regulators, including those in the U.S., are working with the digital currency system and are “intrigued” by it. Today, one thing where Novogratz remains firm is that he reiterates his view saying institutional entry is key for the Bitcoin price surge. Unless that happens, a sustainable price surge in Bitcoin seems a distant dream. Novogratz says that perhaps we can see a significant institutional money flow in the first half of next year, 2019. Steady Growth or Nuclear Winter for Crytocurrency? Despite a huge cryptocurrency market crash, VC billionaire Tim Draper believes, the value of Bitcoin will keep going higher in the upcoming years. Speaking to Thiel Macro’s Mike Green earlier this month, the billionaire said he believes virtual currencies will eventually overtake fiat currency, making up two-thirds of the world’s currency value. “Down the road, when we can easily spend, or invest, or do whatever we want with cryptocurrencies—they’re frictionless, they cost you less,” Draper told On the other hand, the billionaire investor and venture capitalist Jim Breyer believes that the promise offered by the technology is too great for it to be permanently buried by short-term market movements. Breyer kept saying that the technology is too big to be dismissed just because of a temporary bear market. He warned that “we’re close to a nuclear winter right now with cryptocurrency.” Mike Novogratz: Bitcoin Was a Drug and We’re at the Methadone Clinic Now
Coinspeaker

Cubits is Bankrupt and Withholding User Funds As OneCoin Ties Exposed

Anger continues to engulf cryptocurrency trading platform Cubits after executives suddenly announced the company was bankrupt, blocking all user funds. Cubits Owner: Funds Recovery ‘Unsuccessful’ In a press release dated December 11, Dooga Ltd., the UK-based entity trading as Cubits, claimed “collusion” which resulted in a “criminal act” involving the loss of €29 million ($33 million) in February 2018 had forced it to shut down. “Since February, Dooga has made every possible effort to recover these funds,” the release reads. Unfortunately – contrary to expectations – these efforts have been unsuccessful up until now. As Bitcoinist reported December 11, officials had told users on Twitter that Cubits was undergoing “maintenance” and would “be right back.” An identical message had appeared on the company’s website, but on Tuesday this changed to a 500 error message and the website went offline. A fresh tweet then confirmed Dooga had entered administration, leaving already frustrated users bewildered at the conflicting official information. Cubits had begun delaying withdrawals by weeks, some said, while another told Bitcoinist he was looking to involve law enforcement as a result of the company withholding his money. Payments Coordinator Endorses OneCoin At the same time, curious activity among senior management revealed the company’s payments coordinator Eloise Debono to be an advocate of OneCoin, a defunct Ponzi scheme, which has attracted warnings from multiple countries’ authorities over illicit practices. “Bitcoin can be bought and sold on many different exchanges, meaning you could be paying or receiving more or less than you should be,” she wrote in a bizarre article in 2016. OneCoin uses one centralised exchange called OneExchange, where there is a fixed rate for buying and selling. I personally think this is more secure and less volatile. COO Max Krupyshev, listed on LinkedIn as Cubits’ “head of crypto business,” left in November, weeks before users began to complain about withdrawal and funds access problems. Liquidator: Cubits Operator ‘Secure’ According to the company’s administrators, users will receive official correspondence about the debacle in the coming days. “Our goal is to achieve the best outcome for creditors generally at the earliest possible date,” Steve Parker from insolvency firm Opus Business Services Group commented. “Dooga’s current position is secure, investigations are proceeding and we will be writing to creditors, formally, this week.” What do you think about the ongoing Cubits debacle? Let us know in the comments below! Images courtesy of Shutterstock The post Cubits is Bankrupt and Withholding User Funds As OneCoin Ties Exposed appeared first on Bitcoinist.com.
Bitcoinist

Tezos [XTZ] up by 13%; boost comes after Huobi Global teases listing

Tezos [XTZ], the token which ranks on the 20th position on CoinMarketCap’s list, has been going through a rough patch, owing to the strong bear market. However, the time appears to have been changing for XTZ as it has been seen siding the bull. Source: CoinMarketCap According to CoinMarketCap, the coin was valued at $0.41 with a market cap of $252 million, at the time of press. The coin reported a 24-hour trade volume of $2 million and grew by 1.80% in an hour. The maximum trade volume of the coin was registered by Gate.io, with a market cap of $510,404 with XTZ/USDT pair. It was followed by UEX on the second and third position. UEX on the second position registered a trading volume of $398,341 with XTZ/USDT pair and on the fourth position, the market cap was noted to be $394,993 with XTZ/BTC pair. Source: CoinMarketCap This comes after the coin was valued at its lowest at $0.31 recently, with a low market cap of $192 million. The trading volume of XTZ was reported to be $3 million. The rise in the coin’s prices is speculated due to getting listed on Huobi Global. Huobi released a statement informing the crypto world about this. It read: “Tezos (XTZ) will be launched on Huobi Global on December 12, 2018 (GMT+8). Deposits will be available from 14:30, December 12, 2018 (GMT+8). XTZ/BTC and XTZ/ETH trading will be available from 18:00, December 13, 2018 (GMT+8). Withdrawals will be available from 14:30, December 16, 2018 (GMT+8).” Even though the coin is struggling to make over $2 million in trading volume, it has reported an uptrend by 13% over 24 hours. Meanwhile, there have been constant talks about Tezos being listed on Coinbase over the past couple of months and many holders are hopeful about the same. On December 7, Coinbase released a list of potential cryptocurrency list, which may be a part of the new listing. This listing included tokens like Cardano [ADA], EOS [EOS], Stellar [XLM], XRP [XRP], and also Tezos [XTZ]. An update is awaited on Coinbase’s end about the final listing. Tezos seem to be upping its game and fighting the bear head-on. The post Tezos [XTZ] up by 13%; boost comes after Huobi Global teases listing appeared first on AMBCrypto.
AMBCrypto
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