Connect with us

Market News

Bitcoin Rally Lifts Crypto Proxy Stocks

Published

on

Stocks tied to cryptocurrencies rose sharply on Tuesday, as investors tracked a large rally in bitcoin that took prices back above $15,000.

// -- Discuss and ask questions in our community on Workplace.

Crypto Stocks Rally

Riot Blockchain Inc. (RIOT) surged more 20% on Tuesday, while LongFin Corp (LFIN) added more than 38%.

Both companies offer exposure to the cryptocurrency market, with Riot investing heavily in blockchain technology. LongFin’s stock has quadrupled over its short history thanks to a strategic acquisition of Ziddu.com, a blockchain technology provider. LongFin only began trading on the Nasdaq a few weeks ago.

At present values, Riot Blockchain has a market cap of $284 million. LongFin is worth nearly $2.2 billion.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

Nvidia Corp (NVDA), another company tied to the blockchain revolution, was also up on Tuesday.

Meanwhile, HIVE Blockchain Technologies (HIVE) was down more than 10%.

Bitcoin Rebounds

Crypto stocks followed bitcoin’s lead on Tuesday, as the world’s largest digital asset rose more than 17% in midday trade to reach $16,035.  At the time of writing, bitcoin was up 13% at $15,768 for a total market cap of roughly $269 billion, according to CoinMarketCap. That gives bitcoin a roughly 44% share of the cryptocurrency market.

Bitcoin has added more than 1,500% this year, prompting investors to seek out both direct and indirect exposure to the digital asset. One such way has been to buy shares of companies that are part of the blockchain industry. For many on Wall Street, this is seen as a safer alternative to investing directly in the volatile digital asset.

The value of bitcoin has fluctuated wildly all year long, but perhaps none more than the last two weeks. The BTC/USD exchange rate approached $20,000 Dec. 17 before shedding more than $8,000 over the next five days. Prices would later recover to $15,000 before another brisk selloff drove the cryptocurrency to $13,000.

The surge in crypto-related investments has drawn the attention of the Securities and Exchange Commission (SEC), which only last week put the clamp down on The Crypto Co (CRCW) stock over possible price manipulation. The California-based cryptocurrency consultancy has seen trading of its shares suspended temporarily as regulators investigate its multi-billion-dollar price surge.

In a statement, the SEC said, “Questions have also arisen concerning potentially manipulative transactions in the company’s stock in November 2017.”

At the time trading was suspended, Crypto Co’s share price was $575 for a total market capitalization of $11 billion.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock. 

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is concidered a failure either way.
0 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 5 (0 votes, average: 0.00 out of 5)
You need to be a registered member to rate this.
Loading...



Feedback or Requests?

Market News

With 80% of Bitcoin Mined, Investors Brace for Digital Scarcity

Published

on

As of Saturday, the amount of bitcoin in circulation crossed 16.8 million, a figure that represents 80% of the algorithm’s total supply. With fewer bitcoin left to be minted, investors are anticipating a steady increase in prices as digital scarcity makes the coin more valuable over time.

// -- Discuss and ask questions in our community on Workplace.

An Important Milestone

The supply of the world’s most active cryptocurrency has increased by an additional 4,787 since Saturday, bringing the total to around 16,804,787, according to data provider CoinMarketCap.

Bitcoin mining is designed to become harder and possibly less profitable over time, although the latter hasn’t been true because the cryptocurrency’s value has skyrocketed since its inception. Currently, miners are awarded 12.5 BTC every time they mine a block. That’s half the amount they received over 18 months ago when the amount was 25 BTC per block.

Mining rewards are cut in half at pre-defined block intervals, with the next ‘halving’ event scheduled to take place more than two years from now, based on the current hashrate. That would bring the total rewards down to 6.25 BTC per block.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

The bitcoin protocol specifies a halving event every 210,000 blocks.

By reducing the reward for mining, bitcoin founder Satoshi Nakamoto wanted to ensure that the supply of coins wouldn’t rise too quickly. Theoretically, this would preserve its value and make the digital asset more attractive over time. Current mining trends suggest the final bitcoin will be minted on or around year 2140.

Scarcity and Bitcoin Prices

Bitcoin has been likened to a commodity for its finite supply, security against counterfeiting and durability. It is also viewed as highly divisible and transferable globally. Some investors even consider bitcoin to be a hedge against uncertainty since its underlying price moves independently of outside forces.

With only 20% of bitcoin left to be mined, the idea of digital scarcity could also play into the hands of the virtual currency.  In addition to its finite supply, bitcoin’s transaction fees have increased significantly since the coin surged in value. Data from blockchain.info revealed that miners earned nearly $23 million in transaction fees on Dec. 21, 2017, the day bitcoin approached $20,000.

Supply constraints and higher processing fees could mean more expensive bitcoin prices for the foreseeable future. Strengthening the case for bitcoin’s scarcity is the fact that coins cannot be copied (although they can still be lost).

It’s important to note that not all cryptocurrencies are mined like bitcoin. The supply of others, such as Ripple XRP, NEM and Lisk, are released all at once.

While many analysts content that bitcoin’s trajectory is still upward, the path forward will be rocky at best. The coin has struggled to regain momentum since hitting record highs nearly one month ago. It’s also clear that investors are more than just dabbing their toes into altcoins. At the time of writing, altcoins represent roughly two-thirds of the cryptocurrency market. That’s way up from 12 months ago, when altcoins represented about a tent of the total market.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is concidered a failure either way.
3 votes, average: 4.67 out of 53 votes, average: 4.67 out of 53 votes, average: 4.67 out of 53 votes, average: 4.67 out of 53 votes, average: 4.67 out of 5 (3 votes, average: 4.67 out of 5)
You need to be a registered member to rate this.
Loading...



Feedback or Requests?

Continue Reading

Market News

Kraken Cryptocurrency Exchange Back Online After System Upgrade

Published

on

Cryptocurrency exchange Kraken was back online Sunday after a series of troublesome upgrades disabled trading, withdrawals and other account features. The news comes amid widespread concern over the reliability of online cryptocurrency exchanges.

// -- Discuss and ask questions in our community on Workplace.

Back Online

Kraken was back online Sunday following a lengthy upgrade to system infrastructure, according to a blog that was posted on the company’s website. The firm has guaranteed that all funds were kept secure during the downtime. All orders that were open prior to trade resuming have been canceled, with funds in open position returned to account holders’ balance.

The company also said new account verification will be delayed to give priority to tier upgrades. Like other crypto exchanges, Kraken operates a tiered verification system that unlocks new account features when the user submits more personal information.

Kraken apologized for the downtime and said it was needed to upgrade the platform’s trading engine. Based on the most recent blog posts, traders can probably expect more downtime in the future.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

“The scheduled downtime was to replace our old trading engine with a brand new trading engine – an improvement that customers have long asked for and that we have long been working hard on. We still have some more work to do before the new trading engine is as good as we want it to be, but this week’s replacement was an important first step to having a better trading experience,” Kraken said.

The brokerage, which is now the crypto world’s fifth largest, first announced the system upgrade on Jan. 10. At the time, the platform was scheduled to be offline for roughly two hours or “possibly longer.” The company also said withdrawals in all currencies will be on hold for “an additional 2-3 hours…”

Kraken said the delays were caused by “an elusive bug,” which was holding up the launch of its new trading engine.

Are Online Brokers Really Reliable?

Kraken isn’t the first cryptocurrency exchange to experience technical difficulties or go offline. Several major online exchanges have either halted trading temporarily or prevented new users from signing up due to the unprecedented surge in buying interest. High demand recently caused Bitfinex and Bitstamp to suspend new account registrations. Just three days ago, Bitfinex re-opened account signups, but limited registration to accounts with a minimum equity of $10,000 USD or its equivalent.

The list of exchanges that have been hacked is also growing, with Bitfinex and Bitstamp among those subjected to multi-million-dollar security breaches. South Korean exchange Youbit closed its doors and filed for bankruptcy last month after being hacked for a second time in a year. The latest security breach was worth 17% of the assets on the exchange, with the company’s court proceedings set to recoup only three-quarters of funds held on the platform.

Many brokers are beefing up their cyber defenses to mitigate against the growing threat of attack. However, this doesn’t change their attractiveness as a target. As cryptocurrency prices continue to rise, crypto exchanges will become an even bigger target for cyber criminals.

Security breaches, slow transactions and delayed withdrawals have made more investors weary about working with online exchanges. This growing discomfort reflects a similar trend in online forex trading – a market that has seen significant churn in service providers over the past decade. It’s exceedingly rare to find a forex exchange that has operated successfully for at least ten years. While the more established crypto exchanges appear more promising, they still have a long way to go in proving themselves.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock. 

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is concidered a failure either way.
5 votes, average: 5.00 out of 55 votes, average: 5.00 out of 55 votes, average: 5.00 out of 55 votes, average: 5.00 out of 55 votes, average: 5.00 out of 5 (5 votes, average: 5.00 out of 5)
You need to be a registered member to rate this.
Loading...



Feedback or Requests?

Continue Reading

Market News

Nearly One-Fifth of Investors Used a Credit Card to Buy Bitcoin, LendEDU Survey Finds

Published

on

Investors desperate to get a piece of the bitcoin craze are using credit cards to fund their purchases, signaling that the the fear of missing out is possibly bigger than going into debt.

// -- Discuss and ask questions in our community on Workplace.

Credit for Bitcoin

Nearly one-in-five (18%) investors used their credit card to buy bitcoin, according to a survey conducted by LendEDU. Of those, 22% indicated they could not pay off their balance after purchasing the cryptocurrency.

A total of 672 active investors participated in the survey, which was administered in December.

Investors who used credit cards to fund their crypto accounts were likely tantalized by bitcoin’s unprecedented growth over the last 12 months. The coin finished 2017 with gains of around 1,400%. Although it will be difficult to repeat those numbers, 2018 is shaping up to be another positive year for the world’s most actively traded cryptocurrency. That being said, LendEDU research analyst Mike Brown cautioned against going into debt to buy cryptos. This is “not a wise decision no matter which way it is spun,” he said in the report.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

He added: “There is no guarantee that bitcoin investment returns will be profitable in the long run, but one can guarantee that the credit card company will need to be paid back.”

The data showed that about 90% of those who hadn’t paid off their credit card said they plan on using the proceeds of their bitcoin purchase to do so.

Brown’s warning is even more relevant when we consider LendEDU’s audience of young people seeking information about student loan and financial aid news. The website recently ran an article dissecting a new report by the Consumer Financial Protection Bureau (CFPB) on credit. The report, which compiles two years’ worth of data on the consumer credit markets, found that Americans are spending more money on credit even though they held less credit cards than they did before the financial crisis. Over the past two years, credit card debt grew by 9%, the report showed.

The cost of financing credit card debt is expected to rise gradually as the Federal Reserve continues to raise interest rates. Interest rates on credit cards are more sensitive to the federal funds rate than other types of loans, such as mortgages.

The Fed will hold its next policy meeting at the end of January. Although no change is expected, policymakers said last month they expect three upward rate adjustments this year.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock. 

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is concidered a failure either way.
2 votes, average: 5.00 out of 52 votes, average: 5.00 out of 52 votes, average: 5.00 out of 52 votes, average: 5.00 out of 52 votes, average: 5.00 out of 5 (2 votes, average: 5.00 out of 5)
You need to be a registered member to rate this.
Loading...



Feedback or Requests?

Continue Reading

Recent Comments

Recent Posts

A part of CCN

Hacked.com is Neutral and Unbiased

Hacked.com and its team members have pledged to reject any form of advertisement or sponsorships from 3rd parties. We will always be neutral and we strive towards a fully unbiased view on all topics. Whenever an author has a conflicting interest, that should be clearly stated in the post itself with a disclaimer. If you suspect that one of our team members are biased, please notify me immediately at jonas.borchgrevink(at)hacked.com.

Trending