Martin Shkreli, known for his previous securities fraud conviction, has reportedly claimed to co-create the DJT token, a new crypto asset themed after Donald Trump. The revelation comes as the token’s association with the Trump campaign remains unverified, stirring significant speculation and controversy. ‘Pharma Bro’ Martin Shkreli Allegedly Co-Creates Trump Crypto Token In a recent […]
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Report Says Ethereum Is Trading Well Below Fair Value, What’s The Correct Figure?
Ethereum’s price may have been dealt a massive blow as a research report on the Ethereum valuation has revealed that the cryptocurrency giant has been trading below its fair price.
Ethereum Trading Value Slips
A new on-chain research report has delved deep into the fair value of the Ethereum cryptocurrency since its inception, segregating the cryptocurrency’s value into sections and utilizing its trading activities and active addresses to evaluate the network’s worth over the past years.
Lewis Harland, an RxR analyst, revealed in the research report that Ethereum has been trading below fair value by a 27% discount. The analyst arrived at this conclusion after employing the Metcalfe law-centric valuation model which involves comparing active user base on Ethereum’s robust scaling networks and active user adoption to measure the network’s fair value.
Harland explained that Ethereum’s network valuation can be measured and tracked slightly more accurately when the active user base of the blockchain’s scaling networks is integrated into the model. He stated that if the model excludes active user bases, then Ether’s (ETH) valuation would be trading significantly below its fair value of 5 billion.
“Ethereum’s network valuation tracks the updated ML index better when the active user base of Ethereum’s scaling networks is factored into the model than when omitted,” Harland, stated in the research report.
He added that “the updated model, which does factor in these networks, puts ETH’s valuation at 5 billion (current MCAP trading at a 27% discount), assuming no further user growth in perpetuity.”
Going by Harland’s research, Ethereum should be trading at around ,300 with a market cap of 5 billion. However, Ethereum’s price is currently sitting at ,637 with a market capitalization of 7.62 billion.
Ethereum’s Worth Revealed Through Value Layers
While exploring the decline in Ethereum’s trading value, RxR disclosed its analysis of Ethereum’s supposed value using value layers. The research firm explained that Ethereum’s commodity value layer can be analyzed through the amount of ETH millions of users utilize to facilitate their crypto transactions daily.
It further stated that the annual run rate of the transaction fees is well over .6 billion presently. It also described Ethereum’s equity value, stating that “the value of ETH is the present-day value of the sum of all of its future cash flows. To date, over 3.5m ETH (.8B) has been burned by EIP-1559.”
Lastly, the research firm represented Ethereum’s network value layer, and the analysis utilized Metcalfe’s law approach to conclude the recent data that revealed that the Ethereum blockchain network was trading below fair value.
Ethereum’s price has been dealing with a series of strong declines that may push the growth of the ecosystem back a few years. The tenacity of the cryptocurrency’s native token Ether (ETH) was tested when it fell to a critical support level of ,530 earlier in September. However, the cryptocurrency later made a slight recovery which pushed it back to a more stable position.
Economist Jim Rickards: ‘Biden Is Now a World Historic Figure — He Has Destroyed the Dollar’
Jim Rickards, economist and best-selling author, has accused the Biden administration of destroying the U.S. dollar as a reserve currency. Rickards stated that Biden is to blame for the upcoming marginalization of the U.S. dollar at the hands of a BRICS bloc common currency to be proposed on August 22.
Jim Rickards States Biden ‘Destroyed the Dollar’
Best-selling author and economist Jim Rickards has given his opinion about the Biden administration’s handling of U.S. monetary policy. Rickards, an investment expert with 35 years of experience, accused President Joe Biden of taking down the U.S. dollar as a global reserve currency.
On social media, Rickards stated:
Biden is now a world historic figure. He has destroyed the dollar, not an easy task.
The currency expert noted that one of the biggest rivals for the dollar is the birth of a BRICS bloc-wide currency that could potentially link the economic transactions of Brazil, Russia, India, China, and South Africa (the BRICS bloc). Rickards stated that a gold-backed BRICS common currency will be previewed on August 22 and that it will be implemented in stages.
Reports coming from the Russian embassy in Kenya support this allegation. In contrast, Leslie Maasdorp, vice president and chief financial officer of the New Development Bank, also known as the BRICS bank, recently stated that there was no immediate push to create a common currency, explaining that any alternatives in this area would be part of “a medium to long-term ambition.”
SCO and BRICS Merge
According to Rickards, BRICS and the Shanghai Cooperation Organization (SCO), two of the most significant economic blocs in the world, will merge into an unnamed cooperation group. Rickards believes the size of this new organization will inspire other countries to unite, consolidating an economic unity that will hurt the status of the U.S. dollar as a reserve and transactional currency.
However, Rickards maintains that the dollar will continue to be used as a second-hand currency, being “marginalized.” This is one of the scenarios that Rickards predicted in his 2011 best-seller Currency Wars: The Making of the Next Global Crisis, where he describes the rise of a multicurrency world as dollar dominance continues to fade.
Others have also warned about the destruction of the dollar and its value. Jim Rogers, an investor who predicted the 2008 financial crisis in 2002, recently warned about the effects of the demise of the U.S. dollar, stating that the country is “going to suffer” due to inflation and debt problems.
What do you think about Jim Rickard’s predictions on the dollar’s future? Tell us in the comments section below.
Point & Figure: The Chart That Makes Bitcoin Support Cut And Dry
Is Bitcoin in trouble, potentially on the brink of collapsing to unexpected new lows? That’s the question on all crypto inventor’s minds, as the leading cryptocurrency by market cap tends to lead the bullish charge.
However, a somewhat forgotten style of technical analysis could provide the most cut and dry look at the current support levels – “important” support levels that are fully in tact despite the bloodbath to start December.
Let’s Get Technical: The Origins Of Point & Figure Charting
Before there was TradingView and other computer software-based charting tools, technical analysis was entirely drawn by hand. Traders would wait for the bell to ring on the day before adding the daily close to their charts.
More than a hundred years before Bitcoin was created, an anonymous writer by the name of “Hoyle” first wrote about a different type of hand-drawn chart in 1898, called the Point & Figure chart. His writings were featured in the book The Game in Wall Street and How to Successfully Play It.
Related Reading | Finding Fibonacci: Is Bitcoin Beginning A “Golden” Recovery?
Point & Figure charts are a series of columns of Xs and Os. Unlike the the book’s title and the comparison to Tic-Tac-Toe, this type of chart is no “game.” It is designed to filter out time and noise from price charts, and make levels of support and resistance significantly easier to identify.
It also puts the focus on “important” price movements only. Which is why the chart might make the confusing situation in Bitcoin a lot more cut and dry.
Xs and Os make up a Point & Figure chart | Source: BTCUSD on TradingView.com
Bitcoin Drops To Undeniable Support Level That Bulls Must Hold
The chart above might look unusual compared to the Japanese candlesticks and bar charts most traders share. Support can be drawn either at 90 degrees or at 45 degrees for an uptrend. Resistance also works similarly at 90 and 45 degrees.
The current column of red bars represents the downward price action, which first touched the blue horizontal support line, pierced the 45 degree uptrend line, but has since bounced and is currently holding above above it.
Related Reading | Bitcoin “Speculative Chart” Suggests Cryptocurrency To Soon Blast off
Price is also now holding at the red line, which could be a retest of resistance turned support. An active buy signal still exists stemming from the most recent higher high of Xs, and a new sell signal won’t generate until two full circles below the blue line, creating a lower low.
The same chart, but with candlesticks instead | Source: BTCUSD on TradingView.com
According to a Wikipedia entry, “45 degree lines may be used to define up trends and down trends from important highs and lows on the chart allowing objective analysis of trends.”
Switching back to the traditional candlestick chart that is normally shared here on NewsBTC, the same horizontal support levels and 45-degree uptrend line remain. Using the Point & Figure version is instantly more “objective,” eliminating any possible personal bias from the picture.
Related Reading | Bitcoin Falls Flat: Examining A Rare Bull Market Corrective Pattern
Zoomed in further below, the Point & Figure chart has potentially filtered out the wick to the low Ks, highlighted an “important” retest of the 45-degree uptrend line – which is currently holding – and could demonstrate a resistance to support flip in action.
Objectively, a decisive close of red circles below the red line and below the uptrend line would make it very clear that the bull phase is over, and more extended downside is coming.
Losing the 45-degree uptrend would be telling | Source: BTCUSD on TradingView.com
Follow @TonySpilotroBTC on Twitter or join the TonyTradesBTC Telegram for exclusive daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice.
Featured image from iStockPhoto, Charts from TradingView.com
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Bitcoin At $100,000: Estimating The Chance Of Six Figure BTC In 2021
Bitcoin price (BTC) reached a new all-time high this week, soaring to almost ,000 on Wednesday the 14th of April. With Bitcoin’s price now in “blue sky territory” and its market cap sitting comfortably around the .17 trillion level, the big question is – just how high will the current bull market push the BTC price this year?
Rounding Up The Most Famous Bitcoin Price Predictions
Here are some of the most famous individuals and institutions in crypto that have gone on record with bullish Bitcoin price calls:
JP Morgan
In March, analysts at major US investment bank, JPMorgan, were reported to be eyeing a Bitcoin price of 0,000 – although no timeframe was provided for their prediction. JPM’s CEO, Jamie Dimon, was vocal in his criticism of Bitcoin in the past. However, the firm’s increasing involvement in crypto projects reflects the growing integration of cryptocurrency within the traditional financial sector.
Related Reading | The Bearish Bitcoin Chart Bulls Definitely Don’t Want To See
MicroStrategy
MicroStrategy’s CEO, Michael Saylor, is renowned for converting his firm’s cash reserves to Bitcoin and encouraging other corporate leaders to follow suit. At last count, MicroStrategy held over 90,000 BTC, worth approximately .5 billion at the time of writing. Unsurprisingly, Saylor is extremely bullish on the BTC price, saying in a March interview that he “can see Bitcoin going to a million… [or] five million.”
Pantera Capital
Pantera Capital, launched in mid-2013 as the original American crypto investment fund, has projected a Bitcoin price of 5,000 before September of 2021. Pantera’s call is based on the Stock to Flow (S2F) model of Bitcoin’s price, which has thus far shown a high degree of predictive power. Given the time-specificity of Pantera’s call as well as their transparency regarding its rational basis, we would consider this the most considered prediction.
Daily Bitcoin chart showing the bull run since late 2020 until present | Source: BTCUSD on TradingView.com
A Rally-Supportive Economic Environment
Predictions alone, no matter who makes them, aren’t enough to elevate Bitcoin to a six-digit price level. What’s needed are enthusiastic buyers and hodlers, whether they be individual investors or large institutions.
As to the latter, we’ve already alluded to MicroStrategy’s crypto corporate coffers. Perhaps following Saylor’s advice as presented to thousands of corporate representative, Time Magazine recently announced their own acquisition of Bitcoin.
Furthermore, with financial titans like BlackRock and MasterCard recently announcing their involvement in Bitcoin, there can be no doubt of the institutional appetite for Satoshi’s invention.
The stock-to-flow model projects much higher prices for BTC | Source: Digitalik.net
Perhaps the most compelling reason driving investors, big and small alike, into Bitcoin is the expectation – and indeed the observation – of high inflation. With central banks around the world printing billions if not trillions of fresh fiat units as a response to COVID 19, the scene has been set for declining fiat value and rising costs for goods and services.
Related Reading | Coinbase COIN Debuts To A Bloody Bitcoin, But Bullish Structure Remains
With high inflation everywhere except government statistics – steel prices up 3x on the year, for example – it’s no wonder that demand for hard, deflationary money has never been higher.
Featured image from Deposit Photos, Charts from TradingView.com
Harrowing Figure Highlights How There Isn’t Enough Bitcoin To Go Around
Bitcoin is a financial revolution in the making, for numerous reasons. But one of the attributes that give it the most value, is its digital, hard-coded scarcity. With just a 21 million BTC supply to ever exist, it is the hardest form of money on the planet.
However, according to one expert in the field, Willy Woo, the supply is actually a lot closer to 17 million. Because of this, the amount of BTC spread across the rapidly growing population evenly is minuscule, highlighting just how rare the cryptocurrency really is.
Honey, I Shrunk The BTC Supply: Why There’s Really Only 17 Million Left
Bitcoin is often compared to gold, earning it the “digital gold” moniker. Both are hard assets with extremely limited supplies that help tip the scales of supply and demand favorably toward demand.
This relative rarity, especially during a time when dollars are being printed, ballooning the fiat balance sheet by 20% this year alone, has caused the two hard assets to shine post-pandemic.
Related Reading | Bitcoin RSI Moves Into Bull Market Territory, Here’s What Happens Next
With uncertainty in the air, and a dollar on the brink of demise, investors are increasingly turning to gold and Bitcoin. Both assets beat out the stock market’s returns this year, but even Bitcoin has outperformed gold by more than three times, due to just how scarce the supply of the cryptocurrency is.
The blockchain network was coded to over time unlock only 21 million BTC – nothing more. But Bitcoin expert Willy Woo warns, there are actually far less.
Total supply of Bitcoin will not be 21m, it’ll be around 17m as many coins died in the fight for being acknowledged as something valuable in the early days.
This means 0.002 BTC per person on the planet.
— Willy Woo (@woonomic) October 28, 2020
Woo says that as many as 4 million BTC were lost in the “fight for being acknowledged as something valuable in the early days.”
What Woo means by this, is that the earliest holders of Bitcoin had no idea what it would ultimately become in terms of value. Would you have taken perfect care of something that was virtually worthless? The answer is no, and potentially millions of BTC are lost forever due to misplaced private keys, death, or by sending coins to the wrong address.
Every decimal point Bitcoin became a little more worth remembering | Source: BLX on TradingView.com
Bitcoin Whales Absorbing Supply Leaves Even Less For Small Fish
If there ever fewer BTC than expected, the asset’s rarity is even more pronounced and important to its valuation. As capital comes in, it will be spread across even fewer coins, with less coins overall ever able to be sold into the market lowering prices.
Data shows that the number of whale wallets with 1000 BTC or more has spiked to the highest levels ever, so any remaining supply is dwindling rapidly. That’s not to say that these whales won’t end up selling, but with Bitcoin’s bull market just starting, it could be a while before those hands stop holding strong.
Related Reading | Bitcoin Whale Wallets With 1000+ BTC Or More Spike To Highest Levels In History
Recently, due to the sudden surge in businesses adding BTC to corporate treasure reserves, it is said that as few as 24 companies alone own as much as 3.6% of the BTC supply.
If that is the case, and these whales and businesses continue to absorb the supply, there won’t be any left for the little fish.
According to Woo, at the 17 million figure he cites, there will only ever be enough Bitcoin for the global population to have 0.002 BTC if spread out evenly.
But as wealth distribution in the past has shown, and even a decentralized asset cannot escape, businesses and the wealthy will end up buying up the lion’s share of what’s left out there for BTC, leaving even less to go around for the always growing global population.
The math alone makes Bitcoin potentially the most powerful asset in human history, and one that will continue to prove it can command the value is trades at is it continues to rise.
Featured image from Deposit Photos, Charts from TradingView.com
Tron CEO Justin Sun Touts Partnership With a Legendary Figure Once Again. This Time, It’s Wozniak
Tron founder and CEO, Justin Sun, teases the crypto community yet again with talk of another big name partnership. This time, it’s Apple supremo, Steve Wozniak, who takes the honors.
Justin Sun’s Style Continues To Divide Opinion in Crypto Commuity
Master marketer, Justin Sun is seldom far from the limelight. Many have praised his skill in stirring debate on the key issues regarding Tron.
But others take a more pragmatic approach to his style. Pointing out the numerous instances of disappointment when it comes to his often extravagant announcements.
Sun himself admits to this personality flaw, and following the canceled Warren Buffett lunch, he expressed remorse for overhyping the event.
“I deeply regret my excessive marketing and overhyping behaviour, and I would like to express my sincere apology to the public, the media, and the leaders and regulators who care about me.”
Whichever stance you take, there’s no denying that Sun is good at what he does. And that can be summarised as bringing attention to the crypto space.
Indeed, few out there can match Sun when it comes to provoking tongues to wag. And in the often technical world of crypto and blockchain, we need more like him to reach the masses.
Are Big Things on the Horizon for Tron?
That brings us on to the latest tweet from Sun, who let it slip today that he’s teaming up with Apple co-founder, Steve Wozniak.
Little needs to be said about Wozniak. But there’s no doubting his ability to forge a technology empire, and more importantly, his competence in making things that people want.
It was an honor meeting the legendary Woz, @Apple co-founder! Looking forward to our partnership! https://t.co/Y1faA9UCcy
— Justin Sun (@justinsuntron) January 22, 2020
The pair sat down to lunch at Mandarin Gourmet, a modest Chinese restaurant in Cupertino, California. But what they discussed remains something of a mystery.
Naturally, the rumor mill is in overdrive, as the possibilities of a Wozniak tie-up could be big news for Tron.
While no details have been forthcoming, a recent tweet from Sun, that mentions a “secret project” to dethrone Twitch, Periscope, Netflix, and YouTube is of interest. But what that means exactly is anyone’s guess.
Regardless of that, as expected, Sun is aiming high and estimates that this “secret project” will net the Tron ecosystem an additional 100 million users.
“Based on conservative forecast, this project will create at least multibillion benefits for $BTT & $TRX ecosystem and attract at least 100 million new users.“
The project is aiming to disrupt @Twitch, @PeriscopeCo, @netflix & @YouTube. Purely based on #TRON & #BitTorrent. No new token. Using $BTT & $TRX. https://t.co/3dyVV0xa9Z
— Justin Sun (@justinsuntron) January 12, 2020
Indeed, recent goings-on within Tron demonstrates some lofty ambitions. At the end of last year, DLive began its migration on to the Tron blockchain. This move signified a merger between DLive and BitTorrent.
“BLive, the live streaming platform introduced by BitTorrent in early 2019, will be merged into the DLive platform, and their team will join the DLive team. DLive will begin utilizing the BitTorrent File-Sharing System (BTFS).”
Starting today, @OfficialDLive will begin the migration to the #TRON blockchain! #BLive, the live streaming platform introduced by @BitTorrent in early 2019, will be merged into the DLive platform!
We are excited about the great future that lies ahead for #TRON Ecosystem! https://t.co/ORsIl4KR2m
— Justin Sun (@justinsuntron) December 30, 2019
But what’s interesting is that the overall aim of this move is “to bring blockchain-based peer-to-peer content sharing, including live streaming, to everyone.”
That statement in itself should have execs at Twitch, Periscope, Netflix, and YouTube squirming in their seats.
Image from Shutterstock The post appeared first on NewsBTC.
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Blockchain Firm Figure Technologies Secures $58M, Aims for $103M
n San Francisco-based fintech firm Figure Technologies has secured million in a funding round that aims to raise 3 millionn
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Plenty Of Buyers For Four Figure Bitcoin But Where Will BTC Go Next?
The market chop has continued all week as Bitcoin has oscillated between k and the high k price ranges. It has not remained in four figures for long but analysts are tending towards bearishness in the short term.
Bitcoin Buyers Still Below k
From its low of ,750 yesterday, BTC recovered to reclaim the k level pretty quickly and has remained there for the best part of the past 24 hours. It posted an intraday peak of ,250 a couple of hours ago during early trading on Friday and appears to be settling at this level. The choppy consolidation has continued and it is likely to carry on into the weekend.
It is clear that there are still a lot of buyers snapping up four figure Bitcoin as it does not remain there for very long. Analysts have been eyeing the next move for BTC and some see an ascending triangle forming in the hourly time frame which could lead to further gains.
“We have been forming an ascending bullish triangle, and also and inverse HS Pattern, which very soon will make $BTC go up. The purpose with this move is to kill some shorts, before we go down again. Remember that we are in a huge descending triangle.”
Lets zom in on $BTC. We have been formin an ascending bullish triangle, ans also and inverse HS Pattern, which very soon will make $BTC go up.
The purpose with this move is to kill some shorts, before we go down again. Remember that we are in a huge descending triangle. pic.twitter.com/FINBiqRNBJ
— D4rkEnergY
(@D4rkEnergYYY) August 23, 2019
The highs are creeping up however so a move to the next resistance level around ,400 would not be out of the question. On the downside there is clear support at around ,800 and more in the mid-k region, this has been hard to crack in recent weeks. Either way, the fear and panic over the past couple of days has been totally unwarranted.
Nobody Panic
The fear and greed index fell to 5 yesterday, which was even lower than during the 2018 bottom in mid-December when Bitcoin capitulated to ,200. The index appears to be linked to the psychological k barrier as it drops whenever BTC falls below it.
Crypto pundit and web security mogul, John McAfee remains resolute agreeing that the current level of fear is totally unnecessary.
“Bitcoin jitters? Just stop it! Short term fluctuations are meaningless. Bitcoin is still up almost 300% from 6 month’s ago. Everytime there’s a dip I have to calm people in replies, DMs, etc. GET A GRIP! You know in your heart Bitcoin cannot lose. Relax!”
For the past two months BTC has bounced around in a range bound channel so these movements are pretty meaningless in the short term. The longer term outlook, however, is a completely different picture and one dominated by the bulls.
Image from Shutterstock
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Bitcoin Back Up as Buyers Snap Up Four Figure BTC
Crypto markets are back up today following another foray into four figures for Bitcoin. The king of crypto did not stay there long and has bounced back over k again during today’s Asian trading session.
Bitcoin Back Over k
There appears to be a lot of buyers lurking in the mid-00 range as Bitcoin does not hang around there for long. From an intraday and weekly low of ,500 BTC shot back into five figures a few hours ago as buying pressure escalated. According to Tradingview Bitcoin topped out at ,180 where the 200 moving average lies on the one hour chart.
The 7 percent surge has added over billion to total market capitalization and Bitcoin’s dominance remains above 65 percent. BTC market capitalization is back to 0 billion again. Trader and analyst, Josh Rager, commented on the buying frenzy whenever BTC drops back into four figures:
“If interested in accumulating more Bitcoin at sub k prices. Remember that majority won’t catch the bottom. It may be wise to consider scaling in slowly but it’s totally up to you. But it’s likely the bottom will bounce hard and most will be frontrun by big players”
If interested in accumulating more Bitcoin at sub k prices
Remember that majority won't catch the bottom
It may be wise to consider scaling in slowly but it's totally up to you
But it's likely the bottom will bounce hard and most will be frontrun by big players
— Josh Rager
(@Josh_Rager) July 24, 2019
The general consensus from the twittersphere is that in the long run it doesn’t really matter but anything below k is more of a psychological gain. As the consolidation continues the likelihood of a larger move becomes greater.
The last three times Bitcoin has dropped below k it has bounced back within a couple of hours which has kept the bears at bay.
Echo Bubble?
There has been talk of an ‘echo bubble’ theory that says the last rally was a mirror of the 2017 one and that BTC will come crashing down again in another prolonged bear market.
Analyst Alex Krüger has refuted this however stating that there is more real demand for Bitcoin this time around.
“I’ve been asked if I see bitcoin as a bubble, following the “Echo Bubble” tweet below. I do not. Fundamentals come first. There’s real demand for $BTC from HNWI, Family Offices, traders, libertarians, market makers, leveraged funds, and others.”
I've been asked if I see bitcoin as a bubble, following the "Echo Bubble" tweet below. I do not. Fundamentals come first. There's real demand for $BTC from HNWI, Family Offices, traders, libertarians, market makerts, leveraged funds, and others. https://t.co/53WWfYlnXM
— Alex Krüger (@krugermacro) July 24, 2019
It does appear that Bitcoin price has found a floor around the k level at the moment and yesterday’s low was higher than the previous so a pennant could be forming. This may well lead to a breakout later this week but analysts are still conflicted over its direction.
Elsewhere on crypto markets there is a lot of green as some of the altcoins are outpacing Bitcoin’s gains at the moment. Ethereum has cranked 8 percent as it approaches 5 again and EOS has surged 10 percent to recover some of its heavy losses.
Image from Shutterstock
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