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Why Investors Should Pay Attention to Decred

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Bitcoin has massive potential as an investment, there’s no denying it. Anything with the goal of becoming a global currency has the ability to be an option to replace “all the money” in the world and gain a similar market capitalization.

But at the same time, Bitcoin has its problems. Having been released in 2009, there has been plenty of time for some of its weaknesses to be exposed. One of the largest weaknesses is with how it is governed, but there are several more. This is why Decred was developed.

Free of Third Party Influence

As an autonomous coin, there have naturally been many questions with how Bitcoin is governed and what the best way to continue advancement in the area is. This is to be expected, but there are also many things about Bitcoin to be envied, such as the fixed supply, fungible coins, and diehard community that surrounds it.

The founders of Decred were Bitcion developers in teh beginning, but they saw issues with the protocol. In their analysis of the coin, they identified 3 main issues: governance, funding, and security.

The governance issue is to do with stakeholders. The way Bitcoin is designed, miners are decision makers. This doesn’t mean they will always act in accordance with what is best for token holders though.

Additionally, the method of funding development is uncertain, to say the least. Incentives need to be in place to get developers dedicated to teh long-term prosperity of the proejct, and right now, that just isn’t happening.

Finally, security is in question due to the vulnerability to 51% attacks from miners. All of these issues essentially come down to planning a way to align the incentives of miners with those of tokenholders.

New Solutions to Old Problems

Upon proposing their solutions, these developers were essentially excommunicated, which led them to start Decred in 2013.

One of the main innovations of Decred was the Proof of Work/Proof of Stake hybrid they invented in order to solve teh governance issues. Additionally, the algorithm was designed to pay 10% of block rewards to developers from the very beginning.

And as for security, with the new POW/POS protocol in place, potential attackers would need both the majority of hashpower and the majority of tokens. This makes it far too costly for any entity to ever attack Decred without ruining themselves in the process.

Governance Issues Create Opportunity

Governance has always been an issue in question with a protocol whose original reaosn for being designed was to move away from the centralized model of doing business that led us into so many financial crises. Decred is designed to start aligning the incentives of all stakeholders, and still holds true to many of the original promises of Bitcoin (its maximum supply is even the same at 21 million).

The DCR token is currently trading around 0.006 BTC and is ranked 25th in market capitalization ($312 million). This is a relative low for the coin and it may be worth picking up a small position as a minor hedge against Bitcoin.

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.

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4.2 stars on average, based on 53 rated posts




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Cryptocurrencies

The Crypto Market Cap is Sinking as Tether Climbs

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The cryptocurrency market cap risks falling below $100 billion for the first time time since August 2017, highlighting the rapid exodus from digital assets during the course of the year.

Market Update

Crypto valuations have experienced a meteoric fall over the past six weeks, highlighting a momentous shift in investor sentiment. The cryptocurrency market capitalization has declined a staggering $112 billion since Nov. 14, the eve of the bitcoin cash hard fork. On Saturday, the market cap reached a low of $100.4 billion, as bitcoin and its altcoin peers struggled to break free from the bearish grip.

Losses over the past month have pushed tokens like Zcash, VeChain and ICON toward 95-99% declines from their peak. Bitcoin is also experiencing one of its worst retracements in history, though the leading digital currency has an established precedent of major peaks and troughs that stretch all the way back to 2011.

EOS has emerged as a major loser in recent weeks, as block producers have seen their operational incentives wither away. As Hacked reported earlier this week, block producers were barely breaking even at a price-per-coin of $4.14. EOS plunged to $1.50 earlier this month and was last seen trading at $1.83.

The bear market has enabled Tether to reassert itself as the stablecoin of choice for traders, many of whom are sitting on the sidelines until a definitive bottom has been reached. USDT is currently valued at $1.01 for a total market cap of $1.9 billion. It now ranks fourth among active cryptocurrencies, overtaking Stellar, which has fallen to fifth.

Trends and Considerations

The meltdown of the past six weeks has shaken out weak hands from the market. It has also threatened the resolve of some of crypto’s most ardent supporters. As CCN reported last month, investors who bought bitcoin at $1,000 have liquidated their positions during the latest selloff – the nail on the proverbial head of crypto mania.

So-called ‘crypto winter’ has had a damning effect on blockchain startups and miners. Dozens of blockchain companies have announced significant cuts in their workforce, while other projects have seemingly disappeared entirely. As many as 1.3 million mining devices have been switched off during the latest leg of the downtrend even as bitcoin’s mining difficulty has fallen sharply.

The loss of bitcoin’s $6,000 price floor – i.e., the break-even rate for miners – has had a major impact on the market. The initial drop below this level seems to have been associated with the bitcoin cash hard fork, but it quickly turned into a technical selloff that entered full-blown capitulation shortly thereafter. All signs seem to show further pain ahead for crypto traders, with bitcoin poised to test the $3,000 psychological support.

Current market trends clearly don’t reflect bitcoin’s long-term potential nor do they account for growing rates of adoption among businesses and institutions. Over the next six months, a clearer picture around regulation and institutional participation will likely reveal itself as the U.S. Securities and Exchange Commission (SEC) rules on a highly touted bitcoin ETF and Intercontinental Exchange and Nasdaq enter the market for crypto futures.

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.

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4.6 stars on average, based on 700 rated postsSam Bourgi is Chief Editor to Hacked.com, where he leads content development for one of the world's foremost cryptocurrency resources. Over the past eight years Sam has authored more than 10,000 articles and over 40 whitepapers in the fields of labor market economics, emerging technologies, cryptocurrency and traditional finance. Sam's work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Contact: sam@hacked.com Twitter: @hsbourgi




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Cryptocurrencies

PayPal Follows Own Customers in Move to Crypto; U.S Coinbase Support Launched

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Freelancers, digital nomads and internet-based workers the world over will have something to smirk about this morning, when they wake up to the news that PayPal may be starting to see the lack of wisdom in their own business model.

PayPal recently initiated a cryptocurrency-based incentive system for its in-house staff, as covered earlier on CCN. This news was followed immediately by an announcement by prominent cryptocurrency exchange, Coinbase, that it would now facilitate fiat withdrawals to customers’ PayPal accounts.

After filing a patent for its own blockchain-based solutions earlier this year, it seems as though PayPal is dipping more than just its toe into crypto waters. The firm’s Google Play app was recently overtaken by the crypto-friendly Square Cash App, and the road to a crypto/blockchain conversion appears more likely by the day.

Coinbase – PayPal Withdrawals

As per the Coinbase blog announcement:

“Starting today, U.S. customers can instantly withdraw Coinbase balances to PayPal, providing even faster access to their funds through one of the world’s easiest and most widely-used payment platforms. These withdrawals are not only fast; they’re free and incur no fees.”

Coinbase had apparently been responding to demand from its customers regarding the introduction of a PayPal option. According to the post:

“Coinbase customers have been clear: you want to be a part of the open financial system. We believe that means more than just owning cryptocurrency — it means having the flexibility to use it how and when you want.”

No longer will U.S customers require an ACH or federal wire account to withdraw funds. Although, one presumes that PayPal will still have to be linked to existing bank accounts if any large amounts of money are to be transferred.

The new feature is already available for U.S-based customers, while global customers will have to wait until an unspecified date in 2019.

Escape PayPal? Or Absorbed By It?

Anyone who’s used PayPal for any length of time will have become familiar with its unreasonable, and dare I say, unethical fee structure.

According to a recent survey, 29% of freelancers would prefer to be paid in cryptocurrency, rather than via existing systems. Given the general ease-of-use of PayPal for even the non-technically minded, that’s quite the indictment.

Currently holding the same market cap as the entire crypto space, PayPal now has the option to edge closer towards becoming more crypto-like, with exchange compatibility, lower fees, and who knows – maybe future crypto wallets and instant exchange rates.

The other option is one where the corporate monster throws on some crypto-friendly clothes to attract people in the short term, but ultimately reverts to type with profit-maximizing practices in the long-term – not unlike a troubled French president at the moment.

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.

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4.5 stars on average, based on 105 rated postsGreg Thomson is a full-time crypto writer and digital nomad. He eats ICOs for breakfast and bleeds altcoins. Wherever he lays his public key is his home.




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XRP/USD Price Analysis: Israel’s Largest Financial Services Company GMT Partnering with Ripple

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  • Ripple has another large financial firm leveraging its technology, as the list keeps on growing.
  • XRP/USD will search for buyers within $0.3000-$0.2500 range initially, ahead of possible $0.2000 return.
  • XRP/BTC looks surprisingly encouraging, subject to a potential breakout to the upside.

XRP in line with the rest of its peers across the cryptocurrency market remains firmly on the back foot. XRP/USD is running at its third consecutive session of losses. At the time of writing, the pair has dropped 7% over this mentioned period. A renewed wave of selling pressure hit the market after the price was allowed some time to consolidate. The market was very much within range-bound mode, before the bears struck again. As a result, XRP has firmly given up the $0.3000 mark.

Israel’s GMT to Utilize Ripple Technology

The largest financial services organization in Israel, GMT, has announced a partnership with Ripple. They will be utilizing Ripple’s technology for their cross-boarder payments.

GMT said via their latest blog update: “GMT is joining companies like MoneyGram, AmericanExpress, CIBC, Earthport, AKBANK and many more, who are already authorized to use Ripple’s platform. This partnership is establishing GMT’s place in the forefront of the Israeli Fintech industry, also allowing us to work side by side with some of the leading companies in the world.”

GMT are the largest and leading financial services organization in Israel. They have an outreach of  250 branches spanning across the country. GMT specialize in local and international remittance services, among many other financial offerings.

In terms of which technology of Ripple’s they will exactly be leveraging, it does not appear to have been stated for now. Whether GMT will be using either xCurrent or xRapid is still subject to debate. Hacked will be sure to provide further details upon those being announced.

Technical Review – XRP/USD

XRP/USD 4-hour chart

Price behavior seems to be quite readable of late. XRP/USD is going through periods of hard selling, which is then followed by some range-bound trading. Once again, bears breakout from this consolidation mode to ignite more downside pressure. Between the 7th and 14th December, XRP/USD had formed a range-block. The sellers came piling in on the 14th December, and as a result the recent range was broken with $0.3000 giving way.

XRP/USD weekly chart

XRP/USD is now moving within a critical area. This is seen running from $0.3000 to $0.2500.  A very well-known area for big buyers coming in, as proven on occasions this year. Any failure of this initial range holding could see a free-fall down to $0.2000.

XRP/BTC daily chart

Finally, looking the daily chart of XRP/BTC, it remains somewhat encouraging. XRP is holding its ground again BTC, in comparison to many of its peers. The price is ranging for now, looking possible to see a chunky breakout to the upside. It remains trading around levels seen during the explosive run in December 2017.

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.

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4.5 stars on average, based on 86 rated postsKen has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.




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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.

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