Bitcoin Price Moves To $9,000 With Strong Momentum

The bitcoin price has surpassed $8,800 after rising more than 6 percent over the past 24 hours. Volumes across major cryptocurrency exchanges remain strong and the daily trading volume of the market has increased past $26 billion for the first time over the past month.

$9,200

On March 21, the bitcoin price tested the $9,200 support level but failed to sustain momentum for mid-term growth and fell below the $6,500 mark within two weeks after struggling to bounce off $8,200.

At this juncture, it is likely that the bitcoin price tests the $9,200 level it had touched in late March, and a movement past that level would lead the bitcoin price to the $10,000 region by the end of April.

In November 2017, investors described the $10,000 mark as a psychological threshold and a key milestone. At the time, traders predicted the price of bitcoin to surge substantially subsequent to surpassing $10,000. Almost immediately after breaking into the $10,000 region, the bitcoin price surged to $14,000 and eventually to $20,000.

Since the initial correction of bitcoin in February, the market has not been able to demonstrate any sign of stability. The price of most alternative cryptocurrencies (altcoins) and tokens followed the short-term trend of bitcoin and the volume of regional exchanges in Japan and South Korea significantly decreased.

Fundamentally, bitcoin is in an ideal position to initiate a new rally in both the short and mid-term, given that the adoption of cryptocurrency in general has started to increase. Moveover, in late 2017, the majority of speculators who bought into the cryptocurrency market did so out of FOMO, or fear of missing out, without solid knowledge in the structure and fundamentals of cryptocurrencies.

Over the past five months, the awareness of cryptocurrency has increased drastically and a substantially large number of individuals have started to understand the basics of decentralized financial networks and cryptocurrencies.

As such, fintech company Smart Valor CEO Olga Feldmeier stated that in the next two years, the bitcoin price will reach a value of $100,000, and within 2018, the bitcoin price will surpass its previous high at $20,000.

“I believe that we will see a comeback to the height achieved at the end of 2017 this year. Over the next two years I still predict we could see it reach a value of $100,000,” Olga told The Independent.

Rise of Altcoins

Throughout this week, CCN reported that the altcoin season may have started with strong consistent performances of small cryptocurrencies and tokens. Today, several tokens like STORM have recorded a gain of above 30 percent against bitcoin and about 40 percent against the US dollar.

Investors have gained more confidence in the cryptocurrency market and are now willing to take more risks by investing in cryptocurrencies with higher volatility and lower liquidity.

Still, in an interview with FT, Ethereum creator Vitalik Buterin stated that the valuation of most altcoins or tokens cannot be justified and are overblown. “There’s projects that never had a soul, that are just like, ra-ra, price go up. Lambo, vrromm, buybuybuy now!” Buterin said.

Bitcoin: The Return of The King

Most of you have seen this little, tiny, minuscule, almost invisible jump in volume that happen on the 12th April 2018. So far, it has been the singular highest jump in volume ever seen as market cap went from ~ $270 Billion to ~ $300 Billion. It means around $30 Billion were added to the market in less than 3 hours.

Bitcoin’s dominance remains over 40% and I suspect it will continue to rise as most money that just entered the market should be institutional. There are some strong contenders, like Ripple, due to the nature of the backers (mainly banks and financial institutions).

Nevertheless, there are two ways of looking at this, in my own personal opinion:

  • Either the money that just entered the market stays with the King, or
  • It’s distributed among preferential projects (top-10 I would bet on).

Because there is currently a huge time gap between technological developments and price, meaning price moves due to pure speculation rather than technological advancements or issues that arise. If you think differently look at the examples of IOTA or Verge which have been hacked, however prices of both coins kept rising afterwards. Heck, think about bitcoin: when did the price hit its maximum valuation? At the same time fees were the highest ever.

Price is dictated by volume and what happened was a grand spike in smart-money coming into the market. Maybe some of the money that left at the end of January is coming back.

 

Should we expect the price to continue rising?

Some technical analysts believe price will continue to rise. Then again, the opposite might happen depending on many factors:

  1. Geopolitical tensions between Russia and the U.S. will most definitely shake-up traditional markets. This will no doubt influence the amount of money available to invest in the cryptocurrency market. I’m just not sure how this will affect all markets as at the end, there might be a surprising shift; people could begin to trust more in bitcoin due to its security, resilience and the fact it’s independent from governments and economies.
  2. Investors going short on bitcoin got destroyed and likely lost a lot of money. What can counter this is the CME Bitcoin contracts futures price, as I expect the futures’ volume to rise exponentially. Why? That’s easy: because it’s profitable for those investing in both markets.

  1. News sources. When many positive news start to arrive we usually see a growing euphoria and hype (check google trends) from dumb-money entering the market leading to massive price runs. I see no reason for this to be different this time. If history taught us something is that it “repeats” itself, going around and around in circles.
  2. Small technological hops (pun intended) will play a massive role in the long-term future, as bitcoin and other cryptocurrencies are being given time to prepare for adoption worldwide. Hopefully exchanges won’t need to block new hordes of users signing up, bitcoin’s lightning network will be fully operational and segwit adopted by most mining agents and trading platforms.

We cannot forget price is crucial to bring new people into the market, but to keep those users technology must answer today’s problems. People do not care if money is centralized, decentralized, distributed, digital, or physical; People care about:

  • How can I get that money?
  • How much do I pay to store and transfer that money?

For truly massive adoption either the bitcoin team thinks of a way to easily distribute it among where is needed, this is, in countries where banking is limited for example, or a benign group of people develops a way to distribute the currency directly to people in exchange for something, other than money (time, attention, services, etc). I understand those who think until this currency is used by business worldwide it’s a joke. I get it, I truly do, however if the purpose of this cryptocurrency is to bank the un-banked and to be successful in connecting communities worldwide by allowing anyone to transfer and store value over the internet, then maybe the right way to do this would be to simply find ways to trade bitcoin for time and services in those places.

–note: i did not mention the question “how long does that money take to get to another account?”as the current banking system needs 3-5 business days for international transfers to take place. When the bitcoin network is clogged, i have personally waited around 24h for a bitcoin transfer to get approved. It still beats the banking system for personal transactions, which is the final aim of this cryptocurrency (in my opinion)–

Easier said than done

The reality, of course, is that acceptance dictates the rules of the game; businesses  have to start pushing cryptocurrencies by accepting them. At the end of the day for cryptocurrency to be used, all intervening agents must participate.

We must not forget there will always be two sides to the same coin:

  • Should we focus solely on price and volume, to master our gains? Or
  • Should we focus in improving technology scalability and marketing, to achieve worldwide adoption?

Doing one alone would be unwise as balancing both seems to be the right way for the market to grow. My only hope is that the entire community keeps improving the consensus in bitcoin (and other cryptocurrencies), never forgetting its true purpose

Ethereum , Ripple and other cryptocurrecies values riseas Bitcoin price spikes

The price of bitcoin rose by $1,000 in less than an hour, sparking massive gains across cryptocurrency markets

Bitcoin’s sudden price rise has resulted in gains across cryptocurrency markets, with ethereum, ripple and litecoin all surging in value.

Within the space of an hour on Thursday, 12 April, bitcoin rose by more than $1,000 – breaking above $8,000 for the first time since March.

The movement’s of the world’s most valuable cryptocurrency is usually reflected across other virtual currencies, and this unprecedented spike was no exception.

Ethereum, which boasts a market cap of around $45 billion, shot up in price by 10 per cent, taking it close to $500. At its peak in January, one ether was worth more than $1,300.

Similar percentage gains were experienced by ripple, which has the third highest market cap behind bitcoin and ethereum.

The altcoin EOS saw the largest gains out of all the top five most-valuable cryptocurrencies, rising by over 30 per cent to take its market cap above $7 billion.

The market-wide shift follows several months of steadily sliding prices for bitcoin, which peaked at nearly $20,000 in December 2017.

Dramatic market movements are not unusual for the notoriously volatile cryptocurrency, which can often be triggered by positive or negative news surrounding regulation and laws.

The latest surge does not appear to be related to any significant news within the cryptocurrency space, however, with some analysts suggesting the gains come from a change in sentiment amongst investors.

“In this scenario traders with short positions will start to lose money and liquidate their positions by buying bitcoin,” Ed Cooper, head of mobile at fintech startup Revolut, told The Independent.

“This causes the price to rise further and as more people start to notice the rise they buy in for a quick gain. This continues the cycle.”

Despite the gains, Cooper advised investors to be cautious about betting on a positive direction of the market beyond the short term.

“We’d need to see a sustained rise over a number of weeks to signal the end of the bear market,” Cooper said. “We’re definitely not there yet.”

UK Watchdog to Publish its Review on Cryptocurrencies Later this Year

Britain’s financial regulator and markets watchdog outline its policy thinking on cryptocurrencies with a review to be published later this year.

In revealing its business plan for the coming financial year, the Financial Conduct Authority (FCA) underlined cryptocurrencies as ‘an area of increasing interest for markets and regulators globally’. While admitting that cryptocurrencies do not directly fall under its regulatory scope, the FCA stressed that certain models of their usage bring them under its purview in a ‘complex’ landscape.

Pointedly, the FCA confirmed it would reveal its own take on cryptocurrencies, policy-wise, later this year. The regulator said:

We will work with the Bank of England and the Treasury as part of a taskforce to develop thinking and publish a Discussion Paper later this year outlining our policy thinking on cryptocurrencies.

The FCA is notably a member of the ‘Cryptoassets Task Force’ established by the British government in March 2018, consisting of the regulator, Her Majesty’s Treasury and the Bank of England (the central bank). The working group will explore and study the benefits and risks of cryptocurrencies, UK Chancellor of the Exchequer Philip Hammond said last month, helping the UK’s fintech sector to ‘grow and flourish’ in a regulatory climate that has broadly been supportive of blockchain technology and cryptocurrencies over the years.

On Friday, the FCA mandated firms offering cryptocurrency derivatives to comply with all applicable rules to be authorized, stating it would be a ‘criminal offence’ otherwise.

Earlier in February, the UK’s Treasury Select Committee, an influential group of cross-party members of parliament (MPs), launched an inquiry into cryptocurrencies in an effort to better understand them.

While the Treasury Committee confirmed it would look at risks and threats posed by cryptocurrencies to ‘consumers, businesses and governments’, committee chair Nicky Morgan stressed the group would “also examine the potential the potential benefits of cryptocurrencies and the technology underpinning them, how they can create innovative opportunities, and to what extent they could disrupt the economy and replace traditional means of payment.”

Committee member Alison McGovern added that the inquiry would help UK lawmakers and politicians to better educate themselves on cryptocurrencies before enforcing policies. “It is time that Whitehall and Westminster understood cryptocurrency better and thought more clearly about the policy environment for blockchain technology,” she stated.

Bitcoin 7% Increase as Cryptocurrency Market Rebounds From Yesterday’s Losses

After dipping below $6,500, the price of bitcoin has increased 7 percent to $7,100, as the rest of the cryptocurrency market recovered over the past 24 hours.

Since March 30, the valuation of the cryptocurrency market rose from $250 billion to $268 billion, by around 8 percent.

Correlated Movements

On March 29, Cornell professor Emin Gun Sirer stated that a mature market should have assets that are performing independently from each other.

“Indeed, a mature market should be decentralized, with independent coin prices decoupled from each other, each moving in concert with the future prospects of the specific coin,” said Sirer.

For many weeks throughout February and March, the entire cryptocurrency market has demonstrated correlated movements, as the vast majority of both major and minor cryptocurrencies recorded similar gain and loss patterns with extreme volatility.

Today for instance, as the bitcoin price increased by 6 percent, Ethereum, Ripple and Litecoin all increased by the same 6 percent. With the exception of a handful of cryptocurrencies, which have been likely affected by pump and dumps, most of the cryptocurrencies in the global market have all moved in a similar pattern since the major correction occurred in February.

As such, given the extreme volatility in the market and its correlated price movements, it is evident that the market has not stabilized from its recent correction, and thus may need more time to recover from its losses.

The market demonstrated a necessary rebound from the $250 billion mark, and major cryptocurrencies like bitcoin have been able to sustain their resistance levels, even though volumes still remain relatively low across all cryptocurrency exchanges.

History

Bitcoin’s latest correction has been brutal, and it led to millions of dollars in losses for many individuals and institutional investors holding the cryptocurrency on behalf of organizations. But, it is important to acknowledge that identical patterns have occurred in the past, throughout 2013 to 2018.

2018’s bitcoin correction is the third worst correction the cryptocurrency has ever experienced, after two 80 percent corrections it suffered in 2013 and 2014. Both corrections took nearly 12 months for bitcoin to recover from.

The market moves up and down, and volatility is stronger in markets like the cryptocurrency market that have lower liquidity and volume than other regulated markets. The cryptocurrency market was not largely affected by the prohibition of cryptocurrency ads or other news relating to regulation, contrary to the narrative the media has tried to portray. Rather, it was the market simply acknowledging that the price of most cryptocurrencies have increased to a point in which they were difficult to justify based on tangibles and sustainable models.

 

Tron for example, was worth $16 billion, and neared the valuation of SpaceX. While it is entirely possible for Tron to achieve that market cap again in the future, Tron has only released its testnet this week.

 

The valuation of most cryptocurrencies were not proportional to the impact they had on the respective industries they were targeting, and the cryptocurrency market experienced a correction because investors could no longer support the prices of them.

Bittrex Will Remove 82 Tokens Due to Lack of Liquidity in Small Cryptocurrencies

Bittrex, one of the largest cryptocurrency exchanges which also powers UpBit, South Korea’s second biggest exchange operated by Kakao subsidiary Dunamoo, has stated that it will remove 82 tokens from its trading platform.

Token Removal

“Occasionally, there are circumstances that lead Bittrex to remove a coin’s wallet or market from the Bittrex Exchange,” said the Bittrex team. “We will be removing the wallets included in the list below on March 30, 2018. Once these wallets are removed, we will no longer be able to recover these coins. Users must withdrawal their coins before March 30, 2018, in order to keep them.”

The Bittrex team also stated that several cryptocurrencies have broken blockchains that have disabled users from withdrawing their balances.

“The coins marked with an asterisk (*) have broken blockchains or wallets that will not allow withdrawals,” said Bittrex, referring to cryptocurrencies like CRYPT.

On leading trading platforms, it is difficult for exchanges to sustain a stable order book if a cryptocurrencies does not have enough liquidity and demand from users of the platform. Lack of liquidity leads to price manipulation, which can be initiated with funds as little as $50,000, as shown in the recent study done by cryptocurrency trader Sylvain Ribes.

By using a method called slippage–a process of selling $50,000 worth of a particular cryptocurrency on a trading platform to measure its impact on the price–, Ribes evaluated the liquidity of digital assets on major exchanges like OKEx and GDAX. While GDAX had a slippage of less than 1 percent, on OKEx and other cryptocurrency-only exchanges with low market cap or volume cryptocurrencies, each sale of $50,000 led to a 2 to 10 percent drop in the market value of cryptocurrencies.

“A bit of wash trading and artificial volume inflation is to be expected in a thoroughly unregulated market. What I did not expect was the magnitude of the fraud,” said Ribes. “Many pairs, albeit boasting up to $5 million volumes, would cost you more than 10% in slippage, should you want to liquidate a mere $50k in assets,” he added.

Wash trading and price manipulation is common on major trading platforms with small cryptocurrencies or low-volume cryptocurrency pairs. The US Securities and Exchange Commission (SEC) recently warned investors against pump and dump schemes that are often seen in the cryptocurrency market.

“Fraudsters often try to use the lure of new and emerging technologies to convince potential victims to invest their money in scams. These frauds include ‘pump-and-dump’ and market manipulation schemes involving publicly traded companies that claim to provide exposure to these new technologies,” SEC’s statement read.

SEC’s Involvement

Earlier this month, the SEC requested cryptocurrency exchanges to either de-list ICO tokens or register with the agency in order to continue providing support for tokens. For US-based cryptocurrency exchanges like Bittrex, it is mandatory to register with the SEC before processing trades involving tokens.

Throughout next few months, many major exchanges will likely de-list or remove small cryptocurrencies that are prone to pump and dump schemes, and market manipulation.

Ripple Could Be The Next Bitcoin

Bitcoin has made some investors very rich. Those who purchased the digital currency back in the old days when it was trading for a few dollars. And it could make more investors rich provided that it continues to rise to new highs.

But that’s unlikely, as large percentage gains are hard to come by at these price levels—north of $10,000.

Coin Price* Market Cap
Bitcoin (BTC) $10,751.90 $181,767,449,663
Ethereum (ETH) $788.19 77,266,069,902
Ripple (XRP) $0.91 35,513,987,185
*As of Wednesday, 11 a.m.

Still, there’s Ripple, trading below a $1. And there are experts who believe that it could be the next Bitcoin, one day.

Craig Cole of CryptoMaps is one of those experts.”Ripple just might be the catalyst in making cryptocurrency more mainstream,” says Cole.

Its faster transaction speeds and lower fees make it easier for financial systems to embrace the virtual currency, which is partly why Ripple’s value has increased dramatically just this year. Ripple is helping financial institutions save money and it is only expected to become even more prevalent in payment flows. The virtual currency is certainly on the rise and has the potential to be the first token to truly disrupt an industry, and if it does, expect XRP to reach Bitcoin-like levels of ubiquity in the near future.

John-Paul McCaffrey, Associate Director ITRC, Long Island University, agrees. “Although currently there isn’t a platform to exchange fiat currency for Ripple (XRP) this may change sooner than you think,” says McCaffrey. “There is speculation that Coinbase will be adding this to their list of cryptocurrencies they have available for fiat exchange. Providing easy liquidity through Coinbase alone will attract new interest in XRP.”

That will take some time says Roman Guelfi-GibbsCEO, Lead Systems Designer for Pinnacle Brilliance Systems Inc.

Ripple certainly has the potential to move up a notch in 2018, but I think it will be more likely in 2019. As the market observes more projects being coded in other algorithms such as XRP, ETH will likely take a backseat to the next big coin/token. It will take some time for the markets to digest this, so I am projecting 2019 to be the likely time for it to take place. Of course, with crypto, anything can happen, so watch closely.

Not everyone is that enthusiastic about the prospects of Ripple catching up with Bitcoin. Like Shidan Gouran, president of Global Block Chain Technologies.

Ripple is unlikely to go up by one or two notches in the cryptocurrency world in 2018, and this is the case for three reasons. The first reason is the sheer dollar volume that separates each of the three currencies in the top positions, in terms of their market cap. Bitcoin is at over $191 billion, Ethereum is at over $84 billion, and Ripple is at over $35 billion. To displace Ethereum would require a deficit of about $49 billion to be closed (which is more than double Iceland’s entire national GDP). The second reason is that the use cases for Ripple are mostly for the trade of assets, not for day-to-day spending. As consumer awareness of cryptocurrencies will rise significantly in 2018 and beyond, the interest of the masses will be on cryptocurrencies that can be used as currencies, not just for investment transactions. Finally, the third reason is that because Ripple cannot be bought with fiat currencies, one must purchase existing cryptocurrencies such as Bitcoin and Ethereum to purchase XRP. This goes on to feed demand for Bitcoin and Ethereum, and will only solidify their positions as the top two cryptocurrencies on the market.

Actually, the last point is no longer true. Recently, the French exchange bitit.io added Ripple and Litecoin to its coin offerings. This means that Ripple can now be purchased directly. At least that’s what the site claims, though I couldn’t verify how easy the process is and what are the relevant fees.

Still, Ripple investors have to wait for quite some time before they replicate the success of early Bitcoin investors, provided that it gains traction by users—and that big governments, big banks or hackers do not crush cryptocurrencies across the board.

[Ed. note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment. Disclosure: I don’t own any Bitcoin.]

CRYPTOCURRENCY : From Centralization to Decentralization

CRYPTOCURRENCY

From Centralization to Decentralization

The major drawback of the traditional fiat currency payment system is high transaction fees with a long settlement period, which has led people to alternative currencies that allow for shorter peer-to-peer (P2P) processing time without intermediaries, resulting in a thriving market for digital currencies that have lower settlement risk. Prior to the creation of cryptocurrencies, there were many other types of digital currencies. The most common example is a digital currency created by an institution and transacted on a platform. Such currencies can be loyalty points created by companies or digital coins created by Internet-based platforms. The institutions or legal entities control the creation, transaction, bookkeeping, and verification of the digital currencies. In other words, these platform-based digital currencies are centralized. A notable example is the loyalty points of e-commerce companies like Rakuten and iHerb, which function like cash on the platform. Q-coin, introduced by the Chinese social platform Tencent, can be bought using the Renminbi and can be used to buy services at Tencent. World of Warcraft Gold is a game token that can only be earned through completing in-game activities and cannot be bought or exchanged into fiat currencies .

These centralized digital currencies are transacted within a specific platform and are designed to support the business of the issuing institutions. It is difficult to use them as a substitute for fiat money because these centralized digital currencies are not legal tender. Therefore, decentralized digital currencies seem a potential replacement for fiat money as no central authority is needed to verify the transactions. However, there are still many obstacles to overcome without the use of an intermediary or central authority. One main obstacle is the double-spending problem: It is possible to spend the same digital coin more than once. This problem has remained unsolved for a long time, discouraging the prevalence of decentralized coins. To ensure every transaction is accurately reflected in the account balance for digital currencies to prevent double spending, there is a need for a trusted ledger without a central authority.

The first cryptocurrency, eCash, was a centralized system owned by DigiCash, Inc. and later eCash Technologies. Although it was phased out in the late 1990s, the cryptographic protocols it employed avoided double spending. A blind signature was used to protect the privacy of users and served as a good inspiration for subsequent development. Shortly after the discovery of cryptography protocols, digital gold currency became popular, among which the most used was e-Gold. It was the first successful online micropayment system and led to many innovations, making transactions more accessible and more secure. However, the failure to address compliance issues finally resulted in its liquidation in 2008, despite an annual transaction volume of over US$2 billion .

The global financial crisis in 2008, coupled with a lack of confidence in the financial system, provoked considerable interest in cryptocurrency. A ground-breaking white paper by Satoshi Nakamoto was circulated online in 2008. In the paper, this pseudonymous person, or persons, introduced a digital currency that is now widely known as bitcoin. Bitcoin uses blockchain as the public ledger for all transactions and a scheme called PoW to avoid the need for a trusted authority or central server to timestamp transactions . Because blockchain is an open and distributed ledger that records all transactions in a verifiable and permanent way, it solves the double-spending problem.

Bitcoin and “bitcoin”

The cryptocurrency, denoted by bitcoin or BTC, can be accepted as a payment for goods and services or bought either from other people or directly from exchanges/vending machines. These bitcoins can be transacted via software, apps, or various online platforms that provide wallets. Another way to obtain bitcoin is through mining.

The Bitcoin system runs on a P2P network, and transactions happen directly between users with no intermediary. Bitcoin decentralizes the responsibilities of verifying the validity of transactions to the entire network. Transactions are recorded in the public ledger called blockchain and are verified by network nodes, which could be any individual using a computer system with Bitcoin software installed. Once users have made a transfer, the transaction will be broadcast between users and confirmed by the network. Upon verification, it will be recorded in the blockchain, and then the transfer is completed. This record-keeping process is referred to as mining, and people offering the computing power to do so are called miners. Bitcoins are created as an incentive for solving the cryptography puzzle using transaction data; thus, successful miners are rewarded with the newly created bitcoins, on top of transaction fees.

Each transaction contains inputs and outputs. An input has the reference to the output from the previous transaction, and the output of a transaction holds the receiving address and the corresponding amount . In general, in a transaction, a certain number of bitcoins is sent from a bitcoin wallet to a specific address, if there is a sufficient bitcoin balance in the wallet from previous transactions. Transactions are not encrypted and can be viewed in the blockchain with corresponding bitcoin addresses, but the identity of the sender or receiver remains anonymous. Typically, bitcoin wallets have a private key or seed that is used to sign transactions. This secured piece of data provides a mathematical proof that the coins in the transaction come from the owner of the wallet. With the private key and the signature, the account can only be accessed by the owner, and transactions cannot be altered by someone else.

Mining is also the process of adding newly verified transaction records to Bitcoin’s public ledger. The records are grouped and stored in blocks. Each block contains a timestamp and a link to a previous block so that the blocks are chained together, thus the name blockchain. The blocks are mined in sequence, and once recorded, the data cannot be altered retroactively. A complete record of transactions can be found on the main chain. Each block on the chain is linked to the previous one and can be traced all the way back to the very first block, which is called the genesis block. However, there are also blocks that are not part of the main chain, called detached or orphanedblocks. They can occur when more than one miner produces blocks at similar times, or they can be caused by attackers’ attempt to reverse transactions. When separate blocks are validated concurrently, the algorithm will help maintain the main chain by selecting the block with the highest value.

There are several systems by which miners can earn rewards through the mining process. Bitcoin uses the Hashcash PoW system and the SHA-256 hashing algorithm. Under the PoW system, rewards are given according to the number of blocks that are mined successfully. Therefore, mining is quite competitive; the miner who first solves a given puzzle or gets the highest value will take all the newly created bitcoins, and the other miners will receive nothing. Rewards thus encourage miners to take an active part in mining data blocks. In addition, mining usually involves a large amount of computation and can be quite energy consuming.

Another commonly seen system is proof-of-stake (PoS). Unlike PoW, no additional work is required under the PoS scheme because investors are rewarded based on the number of coins they hold. For example, a user holding 1% of the currency has a probability of mining 1% of that currency’s PoS blocks . In general, this system does not require a large amount of work for the computation. It provides for higher currency security and is usually used in combination with other systems, as in the case of Peercoin, the first cryptocurrency launched using PoS.

Because the supply of bitcoins is limited to 21 million, the bitcoins awarded to a miner for successfully adding a block will be halved every 210,000 blocks (approximately every four years), according to the Bitcoin protocol. When Bitcoin was first run in 2009, the reward amounted to 50 newly created bitcoins per block added to the blockchain, but the reward has been halved twice to 12.5 as of July 9, 2016. The supply of bitcoins on the network is 16.907 million as of March 6, 2018, with a total circulating supply market capitalization of US$ 159.1 billion.3

Features of Bitcoin

Decentralized. Similar to conventional currencies that are traded digitally, bitcoin can also be used to buy things electronically. Unlike any fiat money or platform-based digital currencies, however, bitcoin is decentralized. In other words, there is no single group or institution that controls the Bitcoin network. Its supply is governed by an algorithm, and anyone can have access to it via the Internet.

Flexible. Bitcoin wallets or addresses can be easily set up online without any fees or regulations. Furthermore, transactions are not location specific, so bitcoins can be transferred among different countries seamlessly.

Transparent. Every transaction will be broadcast to the entire network. Mining nodes or miners will validate the transactions, record them in the block they are creating, and broadcast the completed block to other nodes. Records of all transactions are stored in the blockchain, which is open and distributed, so every miner has a copy and can verify them.

Fast. Transactions are broadcast within a few seconds, and it takes about 10 minutes for the transaction to be verified by miners. Thus, one can transfer bitcoins anywhere in the world, and the transactions will usually be completed minutes later.

Low transaction fees. No transaction fee is required to make a transfer historically, but the owner can opt to pay extra to facilitate a faster transaction. Currently, low priority for mining transactions (a function of input age and size) is mostly used as an indicator for spam transactions, and almost all miners expect every transaction to include a fee. Miners historically have been incentivized mainly by newly created coins, but that is changing. As the number of bitcoins in circulation nears its limit, transaction fees will eventually be the incentive for miners to carry out the costly verification process.

Altcoin Market

Bitcoin is open source and the source code is available on GitHub.4 Therefore, coders around the world have been enlightened by the invention of Bitcoin and have created hundreds of cryptocurrencies, which are referred to as alternative cryptocurrencies, or altcoins. Bitcoin is not perfect. Every new purpose or pain point is an incentive to invent new coins. Coins are invented to address specific issues such as high computation cost of PoW, to increase the number of transactions per second, to increase the block size, to ensure that the ledger is not as transparent, to accommodate more efficient use of smart contracts, and so on. Moreover, to pay for development and launch expenses, developers can raise funds for the project even before the cryptocurrency is launched. In particular, initial coin offerings (ICOs), initial crypto-token offerings, and initial token sales are similar approaches to raising funding to develop new crypto-tokens and cryptocurrencies. ICOs allow people to invest in a project by buying part of its cryptocurrency tokens or prelaunched ERC20-compliant tokens residing on the Ethereum network in advance, typically based on a white paper or other documents on the project for investors to evaluate.

As of October 6, 2017, 869 cryptocurrencies and 269 crypto-tokens were launched and traded,5with a total market capitalization of over US$148.4 billion. Different from fiat money, cryptocurrencies have a circulating supply, total supply, and maximum supply. Maximum supply refers to the best approximation of the maximum amount of coins that will ever be created in the lifetime of the cryptocurrency, and total supply is the total number of coins existing at the present moment. However, some coins will have been burned, locked, or reserved or cannot be traded on the public market, so the circulating supply is computed by deducting those coins from the total supply. When determining the market capitalization, circulating supply is used because it denotes the amount of coins circulating in the market and accessible to the public.

Based on cryptocurrency market value as of June 27, 2017, Bitcoin dominated the market with more than half of the total market value and the highest price. Ethereum, Ripple, and Litecoin also have large market capitalizations of more than US$1 billion. In addition, the supply of different coins varies substantially due to the unique characteristics of each coin, and some coins are not mined, suggesting a fixed amount of supply. The price of the coins ranges from US$0.002 to well over US$1,000.

In general, some altcoins are very similar to bitcoins, whereas others are created by adopting very different methods or ideas. Market capitalization, different categories of altcoins, .

Appcoins, such as MaidSafeCoin, function like digital shares in a decentralized autonomous organization and are sold in token sales for a portion of future profits. Most altcoins are direct copies of Bitcoin, with some minor changes in parameters such as block-generating time and the maximum limit of coin supply. However, many altcoins have adopted other innovative changes. Among the widely accepted altcoins, Ethereum is the one with the most innovative ideas and widely followed besides Bitcoin. The value token of the Ethereum blockchain is called ether and denoted by XRP. It provides a decentralized Turing-complete virtual machine that features smart contract functionality, as do four other altcoins that have launched based on Ethereum: Ethereum Classic, Golem, Augur, and Gnosis. NEM falls under the third category in  (i.e., coins coded in a different programing language): It is operated using JAVA programming, as is Nxt. Stellar Lumens and Factom are excluded because they are based on Ripple and Bitcoin protocols, respectively.

To conclude, many cryptocurrencies other than bitcoin are traded actively with a wide assortment of features for investors to invest in. The complet coins list with over 1300 cryptocurrency , tokens and altcoins on https://cryptocoinhubs.com

INTRODUCTION OF CRYPTOCURRENCIES WORLD

Bitcoin (BTC)

Bitcoin was created in 2009 by an anonymous person,  under the name of Satoshi Nakamoto. It has a maximum limit of 21 million, and  16,955,337   bitcoins are in circulation as of April 2018. It is widely accepted as the most popular cryptocurrency and has the largest market capitalization.

Ethereum (XRP)

Ethereum is an open-source, blockchain-based platform that runs Turing-complete smart contracts. The value token of the Ethereum blockchain is called ether. It was invented by Vitalik Buterin in 2013 and later developed using a fund, US$18 million worth of bitcoins, raised via an online public crowd sale of ether in 2014.

Litecoin (LTC)

Litecoin was released in October 2011 by Charles Lee, using a technology similar to Bitcoin. Compared to Bitcoin, the main differences are a block generation time that is decreased from 10 minutes to 2.5 minutes per block; a maximum limit of 84 million for Litecoin, which is four times as high as that of Bitcoin; and the adoption of a different hashing algorithm.

Dash (DASH)

Dash (formerly known as XCoin and Darkcoin) was initially proposed in January 2014 by Evan Duffield, who is also the lead developer. Dash has released the decentralized governance by blockchain system, and it is the first decentralized autonomous organization. It is a privacy-centric cryptocurrency. It uses a coin-mixing service called PrivateSend to anonymize transactions and InstantSend to allow for instant transactions.

Dogecoin (DOGE)

The two creators of Dogecoin, Billy Markus and Jackson Palmer, hoped to create a fun cryptocurrency that would appeal to more people. Hence, they used the Shiba Inu dog from the “Doge” Internet meme as the logo and created Dogecoin in 2013. There is no limit to the number of Dogecoins to be produced. Transactions of Dogecoins are made in online communities such as Reddit and Twitter.

Monero (XMR)

Monero (originally named BitMonero) is another open-source, privacy-centric altcoin created in 2014. It is a 100% PoW cryptocurrency. The privacy of transactions is protected by ring signatures (that hide the sending address), RingCT (that hides the amount of transactions), and stealth addresses (that hide the receiving address).

BitShares (BTS)

BitShares is an open-source public cryptocurrency platform that offers a variety of features and was invented by Daniel Larimer. It allows users to issue and trade stocks or debts on the distributed ledger.

MaidSafeCoin (MAID)

MaidSafeCoin is designed for the secure-access-for-everyone network. The data of users and transactions are safe and secure. The network encourages users to provide their resources, such as storage space, central processing unit power, and bandwidth, by giving them the coins as a digital token. The maximum number of MaidSafeCoins in circulation is 4.3 billion.

Nxt (NXT)

Nxt was released in 2013 by an anonymous software developer, BCNext. It is the first cryptocoin that uses purely PoS for consensus, thus making the money supply static—1 billion in the case of Nxt. The block generation rate is 1 minute per block. Despite the additional risks, the complex core infrastructure of Nxt makes it a flexible platform because it is easier to build external services on top. For example, it allows for currency creation and has a messaging system and marketplace.

Bytecoin (BCN)

Bytecoin is the first cryptocurrency invented with the CryptoNote protocol. It secures transactions because the identities of the sender and the receiver and the amount of transaction are all concealed. The number of Bytecoins is capped at 184.47 billion, and the block generation time is 120 seconds per block.

Other Cryptocurrencies

In addition to the aforementioned 10 cryptocurrencies, the following altcoins have also been drawing investor attention.

Ethereum Classic (ETC). Ethereum Classic is a continuation of Ethereum’s original blockchain, so it is also an open-source, blockchain-based platform that supports Turing-complete smart contract. It was created after the hard-fork debate in 2016 and is designed to allow smart contracts to run exactly as programmed without any possibility of third-party interference.

Factom (FCT). Launched in 2014, Factom is an open-source, distributed, and decentralized protocol built on top of Bitcoin. Instead of storing only financial transactions, Factom blockchain technology can record any type of data, making it an ideal platform for real-world business record-keeping systems.

NEM (XEM). NEM is a P2P platform that provides services like payment and messaging system. It uses a proof of importance algorithm, so it does not require much computing power and energy to mine. Together with Mijin, which is a licensed version of NEM, it is the first public/private blockchain combination.

Ripple (XRP). Ripple was created by Chris Larsen and Jed McCaleb. It is one of the first cryptocurrencies not developed based on Bitcoin’s protocol. It is an open-source, distributed P2P payment network, but it is centralized—managed by the company. Any currencies, including the ripple digital currency and ad hoc currencies that have been created by users, can be transferred on the payment system. The maximum number of ripple is 100 billion.

Zcash (ZEC). Launched in 2016, Zcash provides privacy and selective transparency of transactions. Although the transactions are recorded in the public blockchain, Zcash allows for completely transparent transactions using t-addresses, and it can also offer a greater level of privacy to its users using z-addresses. It adopts zero-knowledge cryptography to protect the sender, amount, and recipient of a transaction using a z-address. As with bitcoin, the total amount of Zcash is capped at 21 million

For the complet crypto coins list with over 1300 cryptocurrencies and tokens listed ,   visit cryptocoinhubs.com

Bitcoin Ethereum Price analysis

Bitcoin exchanging volume is moping at about portion of the normal seen amid its December crest. While a couple of trust this is an indication of a moving toward bear showcase in Cryptocurrency  list , we don’t concur with that perspective.

Amid the free for all, as found in December of a year ago, it is normal to have a surge in volume since dealers toss alert out of the window and contribute utilizing influence. Moreover, amid a thundering positively trending market, numerous amateurs enter the business sectors to make a brisk buck. A blend of these prompts a spike in volume.

At the point when costs fall, most beginners are screwed over thanks to their positions since they infrequently utilize a stop misfortune. Numerous among them would have additionally bought in a falling business sector, depleting their buying power. The main choice they see now is to hold until the point that the market recuperates. This segment of the volume won’t return until the point when a cost achieves the December highs.

Wary dealers likewise don’t wander out in a falling business sector since it is constantly better to exchange a market that is in an unmistakable uptrend. Both these reasons joined have prompted a fall in volume.

In spite of the fact that we do watch out for the volume, we ought not get stressed over this reality, since we investigate the value activity and utilize it for our exchanging choices.

BTC/USD

In our past investigation, we had suggested booking benefits on half positions around the $10,700 check and trailing the rest on the grounds that a breakout of the $11,400 to $12,200 protection zone will finish a rearranged head and shoulders design, which will be bullish for Bitcoin.

BTC

Presently, the bulls are endeavoring to break out of the slipping channel and move towards the neck area of the transformed H&S design. The moving midpoints are nearly a bullish hybrid.

The greater part of this demonstrates the bulls have a high ground at the present time. Henceforth, odds are that the cost will keep on rising in the climbing channel. The BTC/USD match will pick up energy above $12,200.

Nonetheless, as brokers, we must be prepared for any unforeseen development. On the off chance that costs neglect to break out of $12,200, odds are the digital money will progress toward becoming extent bound amongst $9,500 and $12,200 for the following couple of days.

Along these lines, brokers should watch the value activity at the $12,200 stamp painstakingly and book benefits on the off chance that they find that Bitcoin can’t break out of it.

ETH/USD

Ethereum is failing to meet expectations. For as long as five days, it has been attempting to break out of the 20-day EMA. In our past examination, we had requested that dealers raise their stops to breakeven on half position and hold the rest with a stop at $780.

ETH

On the off chance that the ETH/USD combine breaks and maintains underneath the trendline of the rising triangle design, it will be a bearish improvement, which can sink it to $780 levels. Along these lines, merchants can raise the stops on the entire position to breakeven, which ought to be around the $830 stamp.

The principal indication of a positive move will be the point at which the cryptographic money breaks out of the 20-day EMA. Be that as it may, it will pick up force simply after it breaks out and supports above $980.

BCH/USD

Bitcoin Cash keeps on exchanging inside the range amongst $1,150 and $1,355. The more it exchanges inside this range, more grounded will be the breakout. Hence, we should hope to purchase the breakout of the range.

BCH

Dealers can purchase the breakout and close (UTC) over the $1,355 levels with a $1,125 stop misfortune. In spite of the fact that the example focus of the breakout of the range is just $1,560, we trust that the BCH/USD combine will rally to $1,600 and after that to $1,800 levels.

Our bullish view will be refuted if the value separates of the range.

XRP/USD

The purchasers appear to have relinquished Ripple on the grounds that, for as far back as eight days, it has been exchanging inside the scope of $0.85 to $0.98669.

XPR

In the event that the XRP/USD combine breaks out of the range, it is probably going to rally to $1.12 levels where it will confront protection from the 50-day SMA. Once over this level, a move to $1.23 is likely.

Then again, a breakdown of the $0.85 levels can push the cryptographic money down to the $0.72 levels. We are uncertain of the course of the following move, subsequently, have said the outcome for the two potential outcomes.

XLM/USD

The bears keep on dominating the exchanging activity in Stellar. It is as of now at the $0.32 basic help. On the off chance that this level breaks, it may fall towards the help line of the plunging channel two. We suspect it’ll confront solid help between $0.20 to $0.22 levels.

XLM

In actuality, if the bulls prevail with regards to shielding the $0.32 levels, the 20-day EMA and the 50-day SMA are probably going to offer a solid protection on any pullback.

We might change our view to bullish if the XLM/USD combine maintains over the $0.48 levels.

LTC/USD

Litecoin is one of only a handful couple of coins that is exchanging above both the moving midpoints. This made us extremely bullish on it. Be that as it may, we were demonstrated wrong since this did not bring about any up move. We had prescribed merchants to purchase nearer to $200 on Feb. 23 and in our past examination, we had recommended raising the stop to breakeven.

LTC

We did as such on the grounds that the 20-day EMA has been offering help for as long as two days. In the event that this level breaks, a tumble to the 50-day SMA is likely. Additionally, both moving midpoints have straightened out, which focuses to a range bound activity for the time being.

The bulls now have a tough undertaking as they will confront protection at the $220 levels from the downtrend line and $240. We should turn insignificantly positive after the LTC/USD match maintains above $220.

ADA/BTC

Cardano has declined near our objective target of 0.00002460. The value keeps on exchanging underneath both the moving normal and the downtrend line; this is a bearish sign.

ADA

We expect a little bob from the 0.0000246 levels, yet the ricochet is probably going to confront hardened protection at the 20-day EMA and the downtrend line.

We may turn positive on the ADA/BTC match simply after it breaks out of the 0.00004070 levels.

NEO/USD

We have been bullish on NEO on the grounds that it broke out of the bearish plunging triangle design on Feb. 26. Along these lines, we had prescribed to get it at $126 levels with the stop at $105. Be that as it may, the cost has not moved by our desire.

NEO

The NEO/USD combine has diverted down strongly from the overhead protection at $140. In the event that the value neglects to discover bolster at $120 levels, it is probably going to tumble to the following quick help of $110. We trust this zone to offer solid help. In this manner, we have held the stop misfortune at $105.

Both the moving midpoints are smoothing out, which recommends a range headed activity for a couple of days.

On the upside, the cryptographic money will pick up energy just above $140.

EOS/USD

EOS keeps on exchanging inside the symmetrical triangle. On the off chance that it separates from the triangle, a retest of the Feb. 06 lows is likely.

EOS

Then again, a breakout of the triangle will convey it towards the upper end of the range at $10.119.

Inside the triangle, the value development is probably going to stay unstable. We might sit tight at the costs to break out of the 50-day SMA before prescribing any long positions in the EOS/USD match.