Though just a couple of days ago bitcoin price was very close to reach the mark of $10,000, by now the token has dropped to $9,317 as informed by which means a 2.72 percent value decline over the recent 24-hour time period. The crypto market reacted to these changes in bitcoin price with more than $20 billion drop overnight.
The day before yesterday, on May 5, the average bitcoin price was very close to reaching $10,000, lacking only $100 to achieve this mark. In some regions like Hong Kong, Japan, and South Korea, where the cryptocurrencies are traditionally traded at premium rates, the price of bitcoin even exceeded $10,000. Nevertheless, the price didn’t manage to be fixed at the $10,000 level, as it almost immediately fell down losing nearly 3 percent becoming $9,600. Since that time, bitcoin has lost another 3 percent.
However, such indicators as the Relative Strength Index (RSI) and Williams’ Percent Range (WPR), that reflect the technical aspect of bitcoin life cycle, show a neutral zone, which means that within the last 48 hours it has not been overbought or oversold.
But if this negative short-term price trend for the dominant cryptocurrency continues and if bitcoin proves to be not able to strengthen its position while its price is close to the mark of $9,300, there is a huge possibility that we will observe another 2 to 4 percent decline just in the nearest days.
The second largest cryptocurrency by market capitalization – Ethereum – is also losing its value. At the press time, according to , it is traded at $722, which means that it has lost over 7 percent of its value within 24 hours.
Nevertheless, crypto traders and investors are looking forward to finding out the results of the May 7th Securities and Exchange Commission hearing in the USA. If the Commission takes a decision that Ethereum is not a security as it is stated by its founders, the entire market will have a chance to recover.
The Securities and Exchange Commission have already stated that bitcoin is not a security, and now Ethereum founders are trying to prove that, as, according to their preliminary work and analysis before Ether’s launch, this crypto should be not categorized as a security staying compliant with existing regulations.
If done so and all the positive expectations are met, we will observe an increasing demand from investors for such cryptocurrencies as bitcoin and Ethereum. Speaking about Ethereum, we should mention that some experts are extremely positive about its future. For example, Alexis Ohanian, the co-founder of Reddit believes that Ethereum will be traded at as much as at the end of 2018.
This year there are a lot of talks about the status of another cryptocurrency – – that is now traded at $0.82. While the company that this token can’t be classified as a security, some experts that Ripple as well as Ethereum should be viewed as unregistered securities.
The post appeared first on .
Today’s edition of bitcoin in Brief focuses on a clash between the old guard of the global economy, fearing new innovations they can’t understand, and the young entrepreneurs using them to change the world. We will also show how sometimes well-meaning regulations can backfire and hurt the lawmakers’ own goals.
Also Read:
Dinosaur Attack
They say that “if you’re not catching flak you’re not over the target,” so bitcoin must be getting closer to hitting Wall Street because it has gotten a lot of flak recently. Leading the charge was 87-year-old billionaire and legendary investor, Warren Buffett. After previously saying that investing in bitcoin is , Buffett has again came out strongly against cryptocurrency at Berkshire Hathaway’s annual meeting on Saturday, May 5th.
“They’re non-productive assets. It essentially will not deliver anything other than supposed scarcity. What does it produce itself? Anytime you buy non-productive assets, you are counting on someone later on buying a non-productive asset. It does come to a bad ending; cryptocurrencies will come to a bad ending. If I could buy a five-year put on every one of the cryptocurrencies, I’d be glad to do it but I would never short a dime’s worth,” he said, concluding that bitcoin is “probably rat poison squared.” And Buffett’s long-time right-hand-man, Charlie Munger, added that trading in cryptocurrencies is “just dementia”.
Musk Strikes Back
Besides bashing bitcoin, Buffett has also taken a swipe at fellow billionaire Elon Musk.
During the latest quarterly earnings call, Musk explained he doesn’t believe in “moats,” a term often espoused by the Oracle of Omaha. He said: “I think moats are lame. They are like nice in a sort of quaint, vestigial way. If your only defense against invading armies is a moat, you will not last long. What matters is the pace of innovation, that is the fundamental determinant of competitiveness.”
Buffett didn’t like that statement and on Saturday responded by warning that Musk should stay away from his moated ventures. “I don’t think he’d want to take us on in candy,” he said, referring to Berkshire-owned See’s Candies – Buffett’s often cited example of a business with a deep moat around it. The real-life inspiration for Iron Man saw Buffett’s warning as a challenge and soon announced on Twitter he is starting a new candy company to take on Berkshire’s moat, and just to spike the ball he is going to call it “Cryptocandy”.
Cryptocandy
— Elon Musk (@elonmusk)
Memo Goes Open Source
The creator of , an on-chain social network built on bitcoin Cash, has announced it is getting open sourced. The developer explained the move by stating that: “Most people think that because memo is on the blockchain, it’s inherently uncensorable. Being on the blockchain does not make memo uncensorable. What will make memo uncensorable is when there are many different implementations…What really makes a social network uncensorable is for it to be decentralized. This makes the power over the network distributed between the service providers, meaning they’d have to collude to censor information…To encourage others to head in the right direction, I’ve decided to open source the entire Memo.cash codebase. My hope is that people will fork and create their own implementations, giving it the decentralization it needs to be uncensorable.”
Huobi Labs’ $1 Billion Industry Fund
Huobi Labs has recently announced they signed a strategic cooperation agreement with Tianya Community to jointly build a “Global Cultural and Creative Blockchain Lab” in Hainan, China. Huobi China headquarters will be moved to the island, where it promises to collaborate with global industry companies and the world’s top universities to build a 40,000 square meters blockchain incubator and initiate a billion-dollar global blockchain industry fund.
The development of the Hainan Special Economic Zone is a national-level strategy set by the Chinese President, Xi Jiping, and the company painted the move as part of that effort. “As a patriotic Chinese company, Huobi China will actively follow-up with the national-level strategy. In the future, Huobi will use Huobi Group’s technology, resources, talents, and capital advantages in the global blockchain industry to contribute to the development of Hainan Special Economic Zone and explore the construction of an international free trade port.”
EU Regulations Kill Cointouch P2P Exchange
Cointouch was a website that helped users find friends of friends that trade cryptocurrency using their social network connections loaded from Facebook and Google, allowing exchange-like functionality with peer-to-peer trading. It was recently shut down after four years in operation due to a new EU dictate called the General Data Protection Regulation (GDPR), which is meant to bring a new set of “digital rights” for EU citizens and guard them from predatory data companies like .
Developer Chris Beach explained: “GDPR threatens website owners with fines of 4% of turnover or €20 million (whichever is higher) if they do not jump through a number of ambiguously-defined hoops…I concluded that I cannot justify running a free service while taking on a legal risk. So, perversely, this new EU law hurts small website like mine, but helps reinforce the dominance of Facebook, Google and Twitter, who are able to prepare and defend themselves using established legal teams and cash reserves, and who now face less competition from startups. The EU Cookie Law, EU VAT regulation, and now the EU GDPR are all examples of poorly-implemented laws that add complexity and unintended side-effects for businesses within the EU.”
Who will be proven right in the long term, Musk or Buffett? Share your thoughts in the comments section below.
Images courtesy of Shutterstock.
Do you agree with us that bitcoin is the best invention since sliced bread? Thought so. That’s why we are building this online universe revolving around anything and everything bitcoin. We have a. And a. And a, a and real-time.
The post appeared first on .
