Are cheap coins really that cheap?

In addition, it should be considered how cheap cheap coins actually are.

About 11,000 Euros is worth a bit coin according to the news spy

With this Bitcoin you own 59 ppb (parts per billion) of all existing Bitcoins. So you own 59 billionths of the total Bitcoin supply says the news spy: https://www.onlinebetrug.net/en/the-news-spy/. That doesn’t sound much, but the same calculation applied to Ripple means that with one Ripple you own just 10 trillionths of the current Ripple supply.

In order to compare the prices of all crypto currencies, it is therefore a good idea to ask yourself how expensive it would be to buy a corresponding share of 59ppb of the total number of coins. One possibility is the so-called Bitcoin Price Equivalence or BPE for short. The formula applies here:

BPE = supply of currency / supply of Bitcoin * price of a coin of the currency

After calculating the BPE it is still visible that Bitcoin is more expensive than all other crypto currencies.

But the BPE of Ripple does not differ dramatically from Bitcoin:

Name Rate in US dollars Market capitalisation in billions of US dollars Weekly rate change in percent Rate estimation Support in US dollars Resistance in US dollars
Bitcoin 4.021,74 70,00 1 rather bullish 3.727,34 4.555,03
XRP 0,36 14,56 -3 rather bearish 0,34 0,42
Ethereum 113,14 11,72 -1 rather bullish 92,81 127,72
Stellar 0,16 2,98 1 neutral 0,13 0,18
Bitcoin Cash 166.16 2.91 -12 neutral 146.00 208.57
EOS 2.83 2.57 -15 rather bearish 1.99 3.87
Litecoin 32,11 1,91 3 rather bullish 27,73 38,72
Tether 0,99 1,84 1 — — — —
Bitcoin SV 95.28 1.67 -10 — — — —
Cardano 0,04 1,05 7 rather bullish 0,03 0,05

As the table shows, the ten currencies with the BPE are all over 1,000 euros. In order to buy 59 ppb of the total supply of a crypto currency, an investment of at least 1,000 euros is required for the currencies shown.

When investing in a cheap coin, it is therefore always necessary to ask what share the investor buys in the currency and whether the project behind it can grow at all as hoped. Cheap therefore does not always have to mean more!

Preparation of a Bitcoin loophole Hard-Fork

The implementation of a hard fork in the Bitcoin network would be possible and the core developers are already thinking about it.

Even if a hard fork is not imminent at the moment, the Bitcoin core developers are investigating how such a scenario could look like.

The proactive step taken by the developers shows how responsible the team, which initially consisted only of volunteer developers, is towards its sponsors and stakeholders.

Bitcoin is probably the best-known digital currency today. Founded by an unknown “developer” known as Satoshi Nakamoto, today many people believe that Bitcoin can fundamentally change the behaviour and habits of today’s society.

The Bitcoin Core development team is aware of their responsibility for such a project and therefore approaches it with great care and respect.

This is the first time that the core developers are approaching the idea of a Hard Fork. Previously, this idea caused a lot of excitement within the Blocksize debate. Not least because such an undertaking would divide the network and involve great risks.

Bitcoin loophole long-term developer Matt Corallo said in an interview with CoinDesk:

“So far nobody has managed to successfully implement a Bitcoin loophole Hard-Fork. A certain number of Bitcoin loophole developers believe that we should at least be prepared for a possible hard fork”.

How important the preparations are we were able to experience very closely with the recent example of the Ethereum Blockchain. Unfortunately, the implementation of a Hard-Fork went very wrong here.

After one of the largest Ethereum projects was the victim of a gigantic theft, the developers rescued the stolen Ether assets of thousands of investors by resorting to Hard-Fork. This was the only way to undo the DAO theft and split the network.

With Hard-Fork, all miners, dealers and users were encouraged to update their nodes. Those who did an update were now users of the new blockchain. All those who decided not to update stayed on the old blockchain.

Two Ethereum blockchains remained: Ethereum Classc and Ethereum. Both blockchains claim the title of the “original” until today.

The scaling of Bitcoin

In the past, the issue of Bitcoin scaling has been the subject of much discussion. The implementation of a hard fork in the Bitcoin protocol was not the only solution.

Unlike hard forks, soft forks are backwards compatible and they correct themselves. Here only a small part of the miners have to carry out an update. Old nodes then also see the new nodes as valid and recognize their validity in the network. But also on this topic there are many different opinions.

One of the best known Soft Fork methods is Segregated Wittness – a solution originally developed to prevent transaction falsifications.

Since the first announcement of SegWit in December last year, the blocksize debate has subsided a little. Not least because great progress has already been made in the further development of the network.

“Six months ago the network was still in a raw state and the network was very slow. We’ve made improvements almost everywhere and that makes a big difference to many people back then,” Corallo says.

A hard fork is not necessary at the moment to cope with scaling. The Bitcoin Core developers have managed to optimize the network through the Fast Internet Bitcoin Relay Network (FIBRE) and Mempool size limitation.

Bitcoin rate takes the 4,000 U.S. dollars, cryptosoft rises by 5 percent

The Bitcoin exchange rate was able to overcome the 4,000 US dollar hurdle again on 20 December. This raises the question: Has the correction been overcome or are we in a bull trap? The situation on the crypto market.

The cryptosoft side: Resistance maintained

The Bitcoin rate breaks the $4,000 barrier. What led to hair scuffles and panic selling last time is currently giving rise to hope. With a good seven percent plus in the last 24 hours, the Bitcoin cryptosoft exchange rate was able to recover somewhat. Here is the cryptosoft review.

IOTA is also looking a little better again. The token for the Internet of Things has gained a good five percent in the last 24 hours. The rate for a token is currently 0.30 US dollars.

The Stratis project was able to make the biggest profits in the last 24 hours. With a total profit of 45 percent, the Strat rate is currently 1.50 US dollars.

Bitcoin rate: Are the cops taking a run for the trap?

Now the question arises as to whether the current rebellion is just a twitch or whether the bottom has been reached for Bitcoin & Co. On the fundamental technological side at least, things are looking good. Binance and other stock exchanges are still preparing for institutional investors. Meanwhile, the entire ecosystem also seems to be maturing – the developments in the Lightning Network segment speak for themselves.

The Bitcoin course also offers hope from a technical point of view. The support area held between 3,132 and 3,303 US dollars. The low for the year of 3,159 US dollars heralded an upswing and also offered an entry point for all those who are going long. The resistance of 3,655 US dollars also appears to have been outbid. If the current hurdle of 3,929 US dollars is maintained for longer, we will have some room for improvement. The price analysis in detail can be found here.

5 areas that can revolutionize the blockchain

Blockchain enthusiasts attribute a revolutionary potential to the technology, which can change all areas of life. However, as we saw during the ICO hype last year, the use of technology is not always meaningful. After all, mapping processes via a blockchain may create trust, but at the same time it makes processes sluggish. Therefore, it turned out in many cases that a classic database would have been the better solution. Five areas that the blockchain can revolutionize.

The implementation of blockchain technology is always a compromise between efficiency and trust. The integration of a blockchain makes sense if there is a sufficient need for automated, forgery-proof processes that justify the renunciation of the speed of data processing. However, the areas of application are diverse and the potential is great.

The Financial Sector and the Bitcoin formula

Apart from crypto currencies, Bitcoin formula technology has the potential to revolutionize finance according to onlinebetrug. In particular, the so-called Token Economy could ensure that the trading of assets is increasingly digitized. Examples are Security Token Offerings (STOs). In contrast to ICOs, which have fallen into disrepute, STOs are regulated financial products, i.e. “securities” as defined by stock exchange regulators.

The advantage over traditional securities is obvious: the use of a blockchain significantly reduces transaction costs. Trading becomes easier and contracts can theoretically be concluded within seconds.

If you would like to learn more about the token economy and have 45 minutes, this talk by Shermin Voshmgir is recommended.

Politics

Elections, health, anti-corruption. The list of applications of Distributed Ledger Technology (DLT) in the political field can be continued. Finally, the blockchain narrative of data forgery protection can come into its own when used in politics.

Election forgery is simply no longer possible with blockchain-based voting systems – if implemented correctly. Conversely, this also has a positive effect on the political legitimacy claims of democratically elected governments.

Ashton Kutcher: Bitcoin is the best protection against a trump nomination

In times of economic unrest, the demand for Bitcoins has always increased. After all, Bitcoin benefits when the national currency is devalued and the government starts working with its central bank. The aim is then to impose strict capital controls in order to restore financial stability.

Ashton Kutcher: Bitcoin is the best crypto trader protection against a trump nomination

As an independent currency, Bitcoin has become a popular asset class among conventional crypto trader investors in recent months. As the legendary Swiss investor Marc Faber explains, Bitcoin is the only currency among all asset classes, reserve currencies and commodities in the world that has recorded positive growth in 2015.

Control of Trump and Sanders
The United States presidential candidates, Donald Trump and Bernie Sanders, have already begun considering various financial reforms and proposing stricter rules for remittances to discourage foreign workers from sending US dollars to their home countries.

In 2015, Donald Trump announced that, as president, he would implement important financial reforms to stop the remittances of “illegal wages” from Mexican migrant workers to their home countries.

“Mexico must pay for the border and until it does, the United States will do the following: Seize all payments from illegal wages,” said Donald Trump.

Interestingly, the Bitcoin price rise correlates with the economic turmoil as described above

The introduction of such an aggressive proposal as Trump’s payment guidelines could seriously affect the Mexican economy and the value of its national currency. According to a publication by the Mexican central bank, in 2014 Mexican migrant workers in the US transferred over 23.6 billion US dollars to Mexico. Even though these remittances account for only 2% of economic output, the poorer areas of Mexico receive 10.5% of their income from these remittances.

“In 2010, Mexicans working in the US remitted over 22 billion to their families, or 2.1% of Mexican GDP. Although these remittances represent only a small portion of the Mexican economy, they are the third largest source of foreign exchange, after oil and exports, exceeding revenues from international tourism and foreign direct investment. In addition, these remittances account for 19.5% of income in the poorest rural regions of Mexico. The percentage is thus higher than that of state poverty reduction programs, such as funds from the Oportunidades program (10.2%) and the Procampo program (3.8%) for agricultural support,” says this study.

“I wouldn’t call Bitcoin digital gold” – Interview with Vaultoro founder

Bitcoin is now more and more often referred to as digital gold and serves many investors as an investment alternative to precious metals. Both goods are limited and, in contrast to fiat currencies, which can be “printed” at will, promise inflation protection and risk hedging. The siblings Joshua and Philip Scigala have taken this as an opportunity to create an intersection between the two assets with their company Vaultoro. Since 2011, Vaultoro has served as a stock exchange specialising in trading gold and Bitcoin. We met the siblings in their Berlin office to discuss the relationship between Gold and Bitcoin.

Explain your Bitcoin news and why you founded Vaultoro?

We developed Vaultoro because we were looking for a solution to convert Bitcoin news into a bank-independent, stable value: https://www.onlinebetrug.net/en/bitcoin-news-trader/. When Mt. Gox collapsed, not only did many people lose their Bitcoin, but millions of Euros were simply frozen. We wanted to develop a solution where the customer is simply safe.

Through our partner Pro Aurum Switzerland you can now trade real physical gold on our platform, which is completely owned by the customer after purchase.

In your opinion, does it make any sense to compare Bitcoin and gold with each other, or even to call Bitcoin digital gold?

I wouldn’t call Bitcoin digital gold, the crypto currency is much too volatile for that. The only thing that connects gold and Bitcoin is scarcity. It remains to be seen whether Bitcoin will become an investment in the long run. I believe that Bitcoin will, once a few scaling problems have been solved, assert itself as a payment network and not as an investment, with other crypto currencies leading the way and quickly asserting themselves as competitors.

How do you rate the correlation between the Bitcoin and the gold price?

Is there even one or is the correlation just a misunderstanding? The price of gold is based on several economic factors and usually runs parallel to the economic situation in the world. However, many people buy gold when things don’t run so smoothly on the stock markets. Gold is still seen as a hedge against loss of value. In the event of a crash, anyone who owns gold is well served when the economy recovers. Bitcoin has similar buying spurts, but the market is still too small for that. The Bitcoin price usually reacts at short notice to news from Korea or China.

Many crypto exchanges have become victims of hacker attacks in the past. How do you ensure that the deposits are kept safe?

We store the Bitcoin of our customers with various multi-signature Bitcoin Wallets and so-called “Cold-Wallets”, which are very securely stored. The gold stocks of our customers, on the other hand, are securely stored in the bonded warehouse in Switzerland and insured against theft and fire. Access to Bitcoin and gold is always based on the six-eyes principle. One person alone must never make a difference.

BTC course analysis – breath after Bitcoin secret

After reaching the previous annual high of EUR 735.04 (USD 780.08), the share price fell to EUR 702.61 (USD 745.66), but recovered again.

Summary of the Bitcoin secret

On December 5, the price fell to 702.61 EUR (745.66 USD) and broke through the Bitcoin secret. However, the price was able to rally again and currently stands at 728.75 EUR (773.40 USD).
Wow – the price has risen even further! With 735.04 EUR there is a new maximum for the year, which is of course very nice. Although the price fell – by 33 EUR to 702.61 EUR (745.66 USD), but this fall was of short duration: Already on December 6, the price tested the Bitcoin secret again and wanted to break through it. Although it took another day (and two bounces on the EMA200), the price broke through the resistance described by the EMA100 again on December 7th and has shown a stable upward trend since then. The Yuan’s continued economic situation appears to be taking its toll.

Since noon today, the MACD line (blue) is also above the signal (orange) again, which is also a bullish sign. Previously the MACD line was much below the signal, which also led to a test of the EMA100, but with a bounce at this support the MACD was clearly bullish again.

This bullish signal is confirmed by the RSI (third panel from above): With 67 it is not only bullish, but almost overbought.

The MACD is positive

The Chaikin Oscillator (lower panel) can hold itself since the 6th of December over the zero. Of course it stands and falls – but that’s normal. It remains to be seen how far the Chaikin Oscillator falls now – but the bullish signals of the other indicators are positive.

And again a new maximum value reached, course lies over the trend, all indicators are positive – slowly it becomes boring to write 😉 Anyway everything works so far positively. This positive impression does not become worse also by a view on larger time scales:

The positive picture is also supported by the view on the 240 min chart. Here, too, all indicators are positive. The EMA is a stable support; it has been tested a few times, but has always held up well so far.

Finally, we come to the 1D chart. I have taken a look at the whole year – after all, we are slowly approaching the end of the year:

All in all, almost everything is in the completely green range – although not as grandios green as in the other charts: the MACD is positive, but the MACD line is below the signal. The Chaikin oscillator is positive, but just above zero. In addition, it is noticeable that the trading volume has been declining somewhat since mid-November – this should be kept in mind.

Well – from a technical point of view everything is positive. The

Isle of Man to Regulate Bitcoin Company in the Future

Companies active in the digital currency industry on the Isle of Man will have to comply with the laws on anti-money laundering (AML) in the future and will probably fall within the remit of the Financial Service Commission (FSC) this summer.

The government of the Isle of Man has adapted the Crime Act 2008 in such a way that the Bitcoin exchanges located on the Isle of Man, for example, will now also be affected by the law.

The changes to the laws have already been approved and the following companies will have to comply with AML from 01.04.2015:

“Companies that issue, transfer, store, administer, manage, lend, sell, exchange or accept from persons as a means of payment for products or services the transferable virtual currencies (including crypto currencies or comparable currencies) will be affected by the new regulation.

These companies will have to report to the authorities as soon as they suspect that a user is engaged in illegal money laundering. As a result, companies are encouraged to use “Know Your Customer” or KYC (know your customers) practices and request personal information for verification.

Registration

The amendment also includes an obligation to notify the companies concerned so that they can be supervised by the Financial Service Commission (FSC) of the Isle of Man.

The bill will be approved by Parliament on Tuesday. As soon as the law receives the royal approval, which is expected in summer 2015, the FSC will become the competent supervisory authority for anti-money laundering matters.

Phil Braidwood, a member of the Ministry of Finance, pointed out that companies must register within six months of the law coming into force.

Positive news?

“In summary, the news can have a positive impact on businesses as they struggle for the legitimacy and trustworthiness of customers and banks,” said Sian Jones, co-founder of the European Digital Currency & Blockchain Technology Forum.

However, Andrian Forbes, co-founder of Bitcoin company TGBEX, is not so pleased with the news:

“The new legislation sends a positive signal to the Bitcoin companies located on the Isle of Man, but the extra costs involved seem too high for the startups.

Until now, the Forbes company only had to apply the Know-Your-Customer procedure to customers who wanted to buy Bitcoin worth over 12,000 euros. Under the new law, however, the company would already have to collect this data from customers who buy BTC worth 1,000 euros.

Forbes sees the law as a positive development for Bitcoin companies in terms of customer confidence. However, he does not believe that the banks will be influenced by it and will provide Bitcoin companies with an account with immediate effect.