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Bitcoin Mining Difficulty Estimated to Drop Again + More Crypto News 101
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Crypto Briefs is your daily bite-sized digest of cryptocurrency and blockchain-related news – keeping you up-to-date with under the radar crypto news from around the world.

Mining news

  • After seven increases in a row, the Bitcoin mining difficulty dropped by 7.1% on November 8 and is estimated to decrease by another 5% in 10 days when the next adjustment is set to happen, according to estimations by major Bitcoin mining pool The difficulty dropped more only in December last year (15% and 9.6%) after dropping 7% in November. While some speculate that some miners are shutting their machines down due to unfavorable bitcoin prices, others claim that this might be related to higher electricity prices in some parts of China due to dry season. Overall, the difficulty more than doubled this year. If there are many miners competing among themselves and propagating blocks in less than ten minutes, the difficulty of the next puzzle will be increased; if there are few miners and it takes them much longer to find a solution, the difficulty is decreased – both times just enough to keep block times at around 10 minutes. (Learn more: Halving and Beyond: What the Future Holds for Bitcoin Miners)

Digital fiat news

  • The Central bank of Tunisia has launched its local digital fiat project by demonstrating their first transaction with e-Dinar last week, Russian news outlet reported. The digital Dinar is issued on a platform of a Russian company, Universa Blockchain. Morocco, Algeria and Mauritania might also join the digital fiat project, according to a separate report by TASS.
  • The Board of Directors of the Bank for International Settlements (BIS) appointed Benoît Cœuré, a board member of the European Central Bank (ECB), as Head of the new BIS Innovation Hub, where he’ll be tasked with co-operating with the Swiss National Bank on creating a central bank digital currency for wholesale use between banks, safeguarded by so-called distributed ledger technology, reports the Financial Times. The BIS Innovation Hub was “set up to foster international collaboration among central banks on innovative financial technology,” the press release states.
  • Ethereum co-founder Joe Lubin has offered “to help China get expertise in Ethereum technology.” In an interview with Forbes, Lubin stated that he hoped the digital yuan would “also be open” and that other cryptocurrencies “can interoperate with it.” However, he added a note of caution, stating, “I assume [the digital yuan] is going to be exactly what the Chinese leadership thinks is most beneficial to the Chinese leadership.”

Adoption news

  • Chinese tech conglomerate Tencent will open up a Hong Kong-based blockchain banking arm after it obtained an operating license from a Hong Kong regulator. Per Sina, Tencent’s blockchain business chief has confirmed that the company is assembling a blockchain banking unit and has won the approval of the Hong Kong Securities and Futures Commission, making it only one of a dozen or so companies to win official operating permits from the regulator.
  • China’s state outlet Xinhua published an article on Monday about Bitcoin, titled: “Bitcoin: The First Successful Application of Blockchain Technology,” bringing its explanation of what the world’s largest cryptocurrency is to millions of readers. And while it points out BTC’s issues with volatility, calling it (roughly translated) “just a bunch of data […] not linked to real money and physical goods, [so] it is difficult to ensure the stability of its price,” it also mentions its increased privacy (though it’s viewed as a negative point too), security and transparency. It is estimated that just the fact that the article calls it “the first successful application of blockchain technology” may inspire more people and businesses alike to look into it.
  • The former president of the ECB, Jean-Claude Trichet, denied cryptocurrency as real money and said that buying cryptocurrency is “pure speculation.” The South China Morning post quoted Trichet as saying: “I am strongly against Bitcoin, and I think we are a little complacent. […] The [crypto]currency itself is not real, with the characteristics that a currency must have.” He also said that there is a lot of speculations, even if cypto is supposed to be based on underlying assets, and that “it’s not healthy,” adding that he is against Facebook’s Libra too.
  • South Korean telecoms giant KT says its local stablecoin projects are turning a profit and says more projects are in the pipelines. Per media outlet Business Post, KT stated, “We can’t reveal exact details, but we have recently agreed to launch more local [stablecoin] services with new region government authorities.” The company described some of its existing local stablecoin projects as “success stories.” KT is currently working on major stablecoin projects with affluent, populous cities including Gimpo and Ulsan.
  • Paxful says it plans to install 100 cryptocurrency ATMs in Columbia, Venezuela and elsewhere in Latin America, in conjunction with its partner CoinLogiq. Per news outlet Criptomonedas, the company’s CEO also spoke about the changing regulatory and political landscape in the region, stating that there were now “significantly more barriers” for companies wishing to do business in Venezuela due to American sanctions, but stated that the country “remained a growing [crypto] market.”
  • The Central University of Venezuela in Caracas will provide Crypto and Blockchain 101 workshop-type courses to entrepreneurs from a range of business backgrounds, per a press release published by El Universal. The university last year held a number of events aimed at informing students and members of the public about cryptocurrencies and blockchain technology.
  • Bitcoin derivatives provider Bakkt “set a new daily record of 1,756 Bakkt Bitcoin Futures contracts traded” on November 8.
Bitcoin Mining Difficulty Estimated to Drop Again + More Crypto News 102
  • Chairman and CEO of the major U.S.-based money transfer company MoneyGram, Alex Holmes, said that the company is currently moving 10% of its transaction volume through Ripple’s On-Demand Liquidity (ODL) between the United States and Mexican borders. Additionally, the company will be expanding into four more corridors by the end of this year.
  • British multinational banking and financial services company Standard Chartered announced that it has joined the Enterprise Ethereum Alliance (EEA) in order to collaborate with industry leaders in pursuit of Ethereum-based enterprise technology best practices, open standards, and open-source reference architectures, said their press release. “The Bank views blockchain as central to banking and commerce in the digital era, so transactions can be verified, secure and processed in real time,” it added.

Tim Alper , 2019-11-11 13:01:55 ,

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.

While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock

Nick Chong , 2019-11-10 12:00:38

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