Crypto market is under the pressure: fees are speeding up and Finland has a personal vendetta against crypto

Crypto market is under the pressure: fees are speeding up and Finland has a personal vendetta against crypto

The Bank of Finland explains why the concept of a digital currency is a 'fallacy', Ethereum faces another network overload, affecting exchange withdrawals and Syscoin hack disrupts Binance prompting temporary shutdown

Bank of Finland bashes crypto, calling it 'an accounting system for non-existent assets'

In the report blockchain is described as the centralized ledger with multiple copies that are scattered across the network. The author of the report also expresses the opinion that the only reason for buying crypto is for criminal activities, and it’s useless for a bank to issue a cryptocurrency as it would be a centralized database.

A very interesting opinion, however sadly it doesn't have any grain of logic. We don't get why it looks like the Bank of Finland has a personal vendetta against crypto, but it's a sure bet that Aleksi Grim, who wrote this report, isn't as excited about cryptocurrencies as the rest of the world. But let's see what are his arguments. He writes that blockchain is a record keeping system. That's true. But there's a slight and important nuance. It's decentralized and it has strict rules on how the blocks can be created. And that's very important, considering that we talk about money. Aleksi points out that crypto doesn’t have the properties that real currencies have. We suggest that that properties are related somehow to the governmental ability to print it out of thin air. That’s the only difference now.

Crypto can be mined, fiat money can be printed. Someone could argue, what about governments backing currencies with their funds, with economy? We should remind that gold standard was abandoned in 20th century by many countries, for example, it was abandoned in US to cover the losses from the Wall Street Crash of 1929, and the printed money helped to overcome the Great Depression. Now the money is being printed endlessly, there is no rule regulating the printing rate. Of course, the Central Bank can set a certain target for inflation. But there’s no backing for any of these currencies. It’s just a common trust. How is it different from cryptocurrencies? Now the trust is lost, because you can’t just be trusted forever, you should earn it, or lose it. This printed money doesn’t create any additional value, it just reduces the value of already circulating currencies. Now society thinks that this magic internet money has some real value, it can be used as a unit of exchange or as a store of value (although it’s very volatile, we must admit), even when bankers tell the society not to use it.

Can fiat money be considered real when an incompetent government prints it endlessly, just because it can, creating hyperinflation? Can Bitcoin be regarded as a fallacy? If you answered positively twice, then you should know that people of Venezuela won’t agree with you. They use Bitcoin in daily life instead of bolivar.

All things have value because it’s a common agreement, and the fact that some banker told you to believe that his money should be highly valued only because he printed it doesn’t mean you should, if you don’t trust him. It’s strange that such an educated man as Aleksi Grim should be doesn’t understand that. Or maybe he does?
In the end, let’s think about how should we call a centralized database with identical entries stored on multiple independent nodes with equal permissions, where the exclusion of any node doesn’t influence the integrity of the network? Oh yes, we call it DEcentralized, that’s right.

Ethereum Network was congested again due to high fees

The fees skyrocketed because of a new exchange FCoin that decided to implement a new voting system. To vote for a new token to be listed, users must send these tokens to an exchange, which resulted in enormous rise of a GAS price. Many small projects tried to win in this competition, thus heavily clogging the network in the process.

It's widely known that Ethereum network doesn't require much to be completely clogged up. A pair of cute kitties, one little poll, or just a bunch of transactions during a hyped ICO is enough to create big problems for everyone in the whole network.

How can Ethereum become a foundation for decentralized economy if it can't handle even the standard amount of transactions during its daily use? It's not being used for commerce nor it has any working popular DAPPs, but that's the question of priorities. You can't have many users before you build a fast network, and that's what the people like Vitalik Buterin and Vlad Zamfir are working on.

Is it bad that Ethereum is so slow? Sometimes it can be hard to make a transaction, but in the end that's the thing that shows the popularity of the project. Sure, Ethereum could have implemented a dPoS system to scale like many other blockchains, sacrificing decentralization of the network, like EOS, Lisk or NEO. But the development team chose not to do it, and we see that dPoS systems aren't that good as it was assumed before.

Eventually, scaling solutions will be developed and Ethereum will be upgraded, with PoS, sharding and Plasma. It doesn't really matter for the end user, as he shouldn't care if his application is decentralized or not, he cares only about its functionality. But for those companies who could be interested in using blockchain, it makes a big deal. There's little to no incentive to use centralized blockchains, like EOS, where a few selected entities can control everything.

If you want to depend on someone, it would be better to use Amazon Cloud Database, it's really fast, it's even faster than the fastest blockchains and it's pretty secure. But those who seek decentralization, will look for truly uncontrollable blockchains, and then Ethereum could outperform all these fast dPoS networks, being as fast as they are now, but also much more secure.

Binance was forced to halt all trading activities due to a hack of Syscoin’s total supply

The amount of 1 billion new Syscoins was generated out of thin air and sent to Binance, where it was sold. The price of SYS climbed to 96 BTC per one coin. Then all BTC were withdrawn, thus making it necessary to shut down all operations and to reset all API keys. Now the exchange has resumed its activities.

Not a first time when Binance messed up with API keys and stopped the trading. Since January we have a non-stopping sequence of hacks and security breaches on exchanges. Binance, Kraken, Bitfinex, Bithumb. The problem is that unlike any stock exchange, crypto exchange is an open system. Once a token or a coin was added, it can be traded, deposited or withdrawn without any restrictions. If a coin's total supply is hacked, all new generated coins can be sold on any exchange.

That trick doesn't apply to stocks exchanges, as the stocks can't be generated out of nothing, all free float that is being traded can't be deposited or withdrawn without broker, who checks everything beforehand, as any broker can't risk with his license by trying to cheat. The problem with crypto exchanges has two solutions. First one, is the path of Coinbase. Regulate everything, impose strict rules, choose a few reliable cryptocurrencies to be traded, double check everything, and it could help you evade these problems, attracting big institutional investors at the same time. The other way is to use decentralized exchanges. It can reduce the risk of hacking or a downtime/halting, but still doesn't solve the problem of messing with total supply. But the solution in this case could be simple. Maybe we should not trade shady coins?

ETH

272.72 USD
-8.76%

SYS

0.06872 USD
-6.17%

Related news

Stellar, EOS and Binance Coin Price Prediction and Analysis for July 17th; XLM, EOS, BNB

Stellar Price Analysis (XLM/USD) On an hourly chart, XML/USD pair continues the downwards pressure.  The downtrend was buttressed by the 21 day MA that gravitated above the 7 day MA that signaled a bearish outlook.  XLM has down surged by 4.6%, having begun trading at $0.08982 and is currently at $0.08572 over the last 24hrs.  The pair’s price experienced sideways price movements after a price fall that placed new resistance level at $0.08986 and support level at $0.08572.  Presence of a four-price Doji was also seen repeatedly. This showed that the market dealt with a small number of transactions. The Relative Strength Index was also touching below level 30 at several instances that indicated an oversold market condition.  This also showed that the bears had dominated the market momentum in the last 24hrs. The market is at the moment recovering as reflected by the RSI indicator that has upped from level 29 to level 42.  This also indicated the reluctance of traders to go short in anticipation of better prices. Stellar Price Prediction The 21 day MA is still trading above the 7 day MA that indicated a strong bearish signal.  This shows incoming bearish momentum in the next few hours. New targets should be set at $0.08200.  The support level is imminent to be broken. EOS Price Analysis (EOS/USD) Like XLM, EOS/USD pair has also undergone a bearish outlook over the last 24hrs.  EOS is down by 3.7% with a circulating supply of 923,253,298 coins. It started the sell-off at $4.4622 and is currently at $4.3032.  The pair’s price faced a slight dip yesterday. The RSI X indicator that was seen trading below level 30, the oversold territory reflected this. A sideways momentum that placed resistance level at $0.31635 and support level at $0.29914 followed the bearish momentum.  Notably, both levels were tested severally. The RSI indicator was later seen heading upwards as it had moved from a low of 20.13 to a high of 49.75 that reflected an increase in buyouts. Like XLM, the pair’s price RSI indicator is currently heading north which shows the unwillingness of traders to go short hoping for better prices. EOS Price Prediction At the press time, the 7 day has crossed over the 21 day MA.  This indicates incoming bullish momentum. The resistance level is likely to be breached while the new target should be set at $4.5000. Binance Coin Price Analysis (BNB/USD) BNB, on the other hand, is down by 5.7% over the last 24hrs.  It began trading yesterday at $29.36 and is currently at $27.70, which showed a significant fall.  The bearish pressure was supported by the 21 day MA that was seen gravitating above the 7 day MA.   BNB/USD pair saw a short-term period of consolidation below $28.73 level that was later dropped below $27.35 that confirmed the downtrend.  The RSI indicator was also seen at 15:00 and at 0000h below level 30 that indicated the oversold market condition.  The dip in BNB price has affected investors sentiments negatively that led to lack of confidence in the coin as reflected by the RSI indicator that is currently trading flat.  This also showed a lack of momentum in the market. Additionally, neither the bulls nor the bears have currently the upper hand. Binance Coin Price Prediction The 21 day MA is still above the 7 day MA that indicates a bearish signal.  A further downtrend is to be expected. New targets should be set at $26.1860. Cryptocurrency Charts By Tradingview Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency or digital currency. Image(s): Shutterstock.com The post Stellar, EOS and Binance Coin Price Prediction and Analysis for July 17th; XLM, EOS, BNB appeared first on NullTX.
NullTX

Ethereum Price (ETH) Dives Below $200 & BTC Down 15%

ETH price declined heavily and broke the $220 and $210 support levels against the US Dollar. The price is down around 15% and it even broke the $200 support area to move into a bearish zone. There is a key bearish trend line forming with resistance near $210 on the hourly chart of ETH/USD (data feed via Kraken). The pair is likely to slide further below the $192 and $190 support levels in the near term. Ethereum price is declining heavily and is already down more than 15% versus the US Dollar, similar to bitcoin. ETH price could continue to slide if it breaks the $190 support area. Ethereum Price Analysis After a short term upside correction, Ethereum price failed to gain traction above $235 against the US Dollar. ETH/USD started a fresh decline and broke a couple of important supports near the $225 and $220 levels. More importantly, bitcoin price failed near $11,000 and recently declined more than $1,000. The current price action is very bearish and it seems like ETH could continue to dive below the $200 support level. During the recent slide, there was a break below a major ascending channel with support near $230 on the hourly chart of ETH/USD. It opened the doors for a fresh decline below the $220 and $210 levels. Moreover, there was a break below the $200 support and the price settled well below the 100 hourly simple moving average. A new monthly low was formed near the $190 level and the price is still trading with a bearish angle. An immediate resistance is near the $200 level plus the 23.6% Fib retracement level of the recent drop from the $235 high to $190 low. Moreover, there is a key bearish trend line forming with resistance near $210 on the same chart. The 50% Fib retracement level of the recent drop from the $235 high to $190 low is also near the $213 level to act as a strong resistance in the near term. On the downside, an immediate support is near the $192 and $190 levels. If there is a downside break below the $190 support, the price may test the $185 support. The main support for the bulls is near the $180 level. Looking at the chart, Ethereum price is under a lot of pressure below $200, while bitcoin price dived below $9,500. Therefore, there could be more downsides below the $190 level in the near term. ETH Technical Indicators Hourly MACD – The MACD for ETH/USD is currently showing negative signs in the bearish zone. Hourly RSI – The RSI for ETH/USD declined heavily and it is now well below the 40 level. Major Support Level – $190 Major Resistance Level – $213 Ethereum Price (ETH) Dives Below $200 & BTC Down 15% was last modified: July 17th, 2019 by Aayush JindalThe post Ethereum Price (ETH) Dives Below $200 & BTC Down 15% appeared first on NewsBTC.
NewsBTC/analysis

Vitalik Buterin proposes Ethereum Classic blockchain as criticism over considering BCH grows

Ethereum ran into scalability difficulties, processing only 15 transactions per second [TPS]. Despite the much-hyped 2.0 version, which was all set to roll out next year, Vitalik Buterin had planned on abandoning its native blockchain for a short period and instead, deploy other blockchains. The Co-founder’s latest proposition of leveraging Bitcoin Cash [BCH] blockchain as […] The post Vitalik Buterin proposes Ethereum Classic blockchain as criticism over considering BCH grows appeared first on AMBCrypto.
AMBCrypto

Hot news

By continuing to browse, you agree to the use of cookies. Read Privacy Policy to know more or withdraw your consent.