Category Archives: Cryptocurrency
If you’re still pondering whether or not to invest in cryptocurrency, this should help you make up your mind.
Almost every single cryptocurrency in the world is tanking right now. Bitcoin lost over 11% in the 24-hours before time of writing, Ethereum and Litecoin had plunged almost 20%, and Ripple nosedived 14%. Some, like EOS and Qtum, had lost almost 40%. Among the larger coins, only Tetherthe 19th largest cryptocurrency by market capwas holding out with a 3.2% gain.
Here’s how the top end of the cryptocurrency market looked as of 11:31 PM ET on Sept. 4:
So what’s behind the crash?
On Monday morning, China said cryptocurrencies had seriously disrupted the economic and financial order and outlawed Initial Coin Offerings (ICOs)also known as token salesthe means by which funds are raised for a new cryptocurrency venture.
China’s ban hit the market especially hard in the immediate wake of the U.S. Securities and Exchange Commission (SEC) warning against the legality of some ICOs, Tech Crunch reports.
The across-the-board tanking of cryptocurrencies also coincides with the latest provocative nuclear test by North Korea, suggesting traders are not betting on them as safe-haven assets in times of global turmoil.
Turns out it might be time to revert back to the old refrain: buy gold.
Read this article:
Almost Every Cryptocurrency Is Tanking Right Now | Time.com
Although the technology is relatively new, cryptocurrency is already making waves in multiple industries. In fact, there are some who argue that it will change the face of finance and marketing forever.
Related: From $100 Million to Broke to Betting It All on Cryptocurrencies
Despite its relative infancy, cryptocurrency has already impacted the marketing world pretty significantly, even as experts work to understand the risks and benefits involved. Here are some reasons you should be paying attention to cryptocurrency, as well as some explanations of this groundbreaking technology, to get you started on mastering it.
Before you dive into why cryptocurrency is important for marketing, you need to understand what it is in the first place.
Cryptocurrency is a form of blockchain technology, the technology that bitcoin and other distributed ledger systems are based on. Basically a gigantic ledger of transactions, blockchain is an open and shared database that operates in a decentralized network format. It allows users to transfer and add information to it anonymously, without security compromises.
In other words, cryptocurrency, like Bitcoin, is an anonymous financial system that employs blockchain technology to operate. Instead of using a credit card to pay for an item online, users can use Bitcoin or another form of cryptocurrency. And it’s getting pretty popular — in November 2016, the market capitalization of Bitcoin and other cryptocurrencies reached $13.8 billion.
Related: 5 Essential Podcasts for Entrepreneurs Serious About Cryptocurrency
It’s important to remember that many uses of cryptocurrency in advertising are still a few years away, as there isn’t much happening in this area yet. However, there’s no harm in being ahead of the trend.
The use of cryptocurrency might make it more difficult for marketers to collect the kind of data on consumers that often informs advertising strategies. In this regard, 86 percent of internet users have tried to remove or decrease their digital footprint online; and cryptocurrency will make this more possible than ever, because it will deplete the amount of consumer data available
Currently, it’s pretty easy to collect huge amounts of information on potential customers to attract leads. This is largely because the platform you use, like Facebook or Google, owns the data and sells it to you. Marketers can use this information to figure out audience segments, test which ads work better than others, predict customer behavior and more.
With cryptocurrency, however, many leads and buyer information will become anonymous, secure and encrypted — making it difficult for marketers to figure out who bought what, and how customers are responding to marketing tactics. Individuals will be in more control over their personal information, which could make it nearly impossible for marketers to gather it and design marketing strategies accordingly.
For these reasons, marketers need to start figuring out new ways to collect information to inform their strategies, if they want to keep up with consumer wants and needs.
One way marketers could navigate the potential lack of consumer data is by paying users directly for their personal information, to be allowed to market to them online, instead of paying the platforms they use.
Since the blockchain technology behind cryptocurrency means that no single entity can own or control networks, users will be in control. Cryptocurrency itself further complicates this picture, as businesses eventually will be unable to tell who bought what product or service. Companies may need to pay users directly for their information and for the opportunity to market to them, instead of platforms like Facebook or Instagram.
For instance, new social media platforms like 21.co and Steem (which has over 30,000 current user accounts and is growing) allows marketers to engage with users for the opportunity to get the purchasing and other personal information about them that would otherwise be unavailable due to cryptocurrency. Businesses have to do the legwork to reach out to users, and the users can then decide if they want to engage.
The tricky part here is that the average customer is going to want more compensation for his or her purchasing and other information than a platform might charge for that same information now. The plus side, however, is that if the customer allows you to access his or her information, that person is more likely to be interested in your brand.
We know that discussions on cryptocurrency involve a lot of hypotheticals, largely because we don’t yet completely understand what it’s going to do to marketing.
Related: 6 Cryptocurrencies You Should Know About (and None of Them Are Bitcoin)
However, although cryptocurrency may not affect your own business marketing model, it’s a strong representation for where digital trends are heading in the next few years. Even if the changes aren’t as dramatic as now believed, it’s a good idea to prepare and explore the potential of cryptocurrency so that you aren’t taken by surprise.
What are some other ways you think cryptocurrency might affect marketing in coming years?
Originally posted here:
Why Marketers Need to Pay Attention to Cryptocurrency — Now – Entrepreneur
Opinion: That Floyd Mayweather-backed cryptocurrency is another sign of a bursting bubble – MarketWatch
Members of a Russian political organization formed by President Vladimir Putin have announced plans to advocate for an eco-friendly cryptocurrency.
The All-Russia People’s Front, known as ONF and formed in 2011, recently organized a conference focused on the environment. It was there, according to the organization’s press service, that the plan for a cryptocurrency to be used to fund environmental causes was advanced.
Dmitry Mironov, one of the leaders of the ONF, said:
“We want the units of the cryptocurrency to be received by investors and enterprises that promote the development of environmental technologies. In our proposals, we will reflect our vision of the development of the green cryptocurrency in the country and we hope that the initiatives of the Popular Front will be included in the final version of the bill being drafted by the government.”
The proposal was put forward in the context of moves by the Russian government to prepare new regulations around the trade and exchange of cryptocurrencies. Last week, a senior member of the State Duma the national legislature suggested that work on the legislation could be completed by autumn, capping a multi-year process.
Whether the proposal actually advances in the government remains to be seen, however.
Russian officials, including those from the country’s central bank, have issued warnings on cryptocurrency investment in recent days. At the same time, one of Putin’s advisors is trying to raise as much as $100 million through an initial coin offering (ICO) to support a new crypto mining venture.
Putin image via Shutterstock
The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Have breaking news or a story tip to send to our journalists? Contact us at [emailprotected].
When cryptocurrency markets crashed 20% a few days ago, I wrote the next day or so will tell us if this was a temporary bump in the road or the start of the next major correction.
Well here we are, a day or so later. And the temporary crash seems to have just been a bump in the road. The entire market cap of cryptocurrencies is up 16% from a low of $135B yesterday to $162B today.
Bitcoin is back above $4,600, which is about 13% higher than yesterday. Ethereum is trading around $333, which is 16% higher than the low it hit earlier this week.
Checking the chart below shows that results are pretty similar across the board. Most currencies are up double digits over the last 24 hours, bringing them close to where they were before the weekends crash.
There is one exception NEO, the Chinese-based ICO/cryptocurrency never recovered and is down 39% over the last week but this makes sense, because the crash was likely caused by Chinas ICO ban, which particularly affects NEO.
Of course extreme volatility is common in the cryptocurrency world even double-digit swings in major currencies like Bitcoin and Ethereum. But a market-wide crash that affects every single digital currency, like we saw over the weekend, is almost always a sign of some outside influence and not day-to-day volatility. In this case the influence was Chinas ICO crackdown.
Todays recovery shows that the cryptocurrency market (and accompanying valuations) is more resilient that some have thought.
While cryptocurrency investors are reluctant to admit it publicly, many think the rapid appreciation in value over the last few months is the sign of a bubble about to pop.Some of those same investors are hoping that rising valuations will actually come down a bit, to give the industry time to catch its collective breath.
Essentially this recovery reveals a cryptocurrency market resilient enough to withstand the shocks of government regulation, meaning that the steady climb of value continues.
Get Trading Recommendations and Read Analysis on Hacked.com for just $39 per month.
Cryptocurrency mining has become an important source of income inVenezuela, a country ravaged by hyperinflation, but it has also become hazardous as police are cracking down on people they suspect of using too much electricity.
Venezuelans have turned to cryptocurrencies as inflation has ravaged the official bolivar, which has lost 99.4% of its value since 2012. As a result, mining has become more lucrative, and a way for people to earn money to pay for basic living expenses,according to CNBC.
One miner, who agreed to speak only anonymously, became a miner because his $43 monthly salary couldnt support his family. He began mining illegally by using government computers where he worked, and eventually quit his government job to mine at home.
Another miner who has since fled to the U.S. said mining kept him out of poverty in Venezuela. He said one mining rig will produce enough income to feed a family.
Another woman who works three jobs said mining produces 80% of her $120 monthly income. She said mining has allowed her to support herself and her daughter.
One man said the easiest way to acquire commodities in Venezuela is to use cryptocurrency to buy things on purse.io. He said he orders staples like soap and deodorant and has a courier deliver them to his office.
Miners often turn to online forums to learn how to mine.
Also read: Venezuelan authorities destroy bitcoin mining center as crackdown continues
While mining has become a necessity to many, it has also become dangerous since it is illegal and police arrest people they suspect of using too much electricity. Subsidized electricity in Venezuela keeps the cost of mining down, but the government monitors its use carefully.
In 2016, two men in Valencia were arrested on charges of energy theft and possessing contraband. Since then, arrests have increased. One police official said the offenders are exploiting resources without documentation. A Reddit post said miners in the country are being arrested and charged with terrorism, money laundering and other crimes.
One 23-year-old who said he earned $20 a day mining Ethereum when the currency was at its price peak said he lives in fear of being arrested. Another miner said he was approached by intelligence officials who asked him why he was consuming so much power from his home. He said he moved to another location.
Still another miner said he conceals his electrical footprint by splitting his mining equipment across three locations. He pays neighbors to use their electricity for his mining.
Joe Lubin, Ethereum co-founder, said cryptocurrencies, despite their volatility, are integral to survival in places where natural currencies are spiraling out of control.
Featured image from Shutterstock.
See the rest here:
Venezuela Cracks Down On Cryptocurrency Mining – CryptoCoinsNews
Digital currencies such as bitcoin and ethereum have blown traditional investments out of the water since the year began. Bitcoin, which is the largest cryptocurrency by market cap, is up 373% year to date through Aug. 30, while ethereum, the second largest digital currency by market cap, has surged an almost unimaginable 4,737% year to date. For comparison, it’s taken the S&P 500 more than four decades to return what ethereum has in a matter of eight months.
But the real story is just how much money has been poured into cryptocurrencies over the past eight months. Since the year began, the aggregate market cap of all cryptocurrencies has jumped from $17.7 billion to a record $161 billion as of Aug. 29 — that’s an 810% climb.Bitcoin, the kingpin of the group, and its recently spun-off bitcoin cash, are pretty much responsible for around half of those market-cap gains.
Image source: Getty Images.
What on Earth has the investment world going so crazy for digital currencies? Fundamentally, it has a lot do with the underlying blockchain technology that many of the largest market-cap cryptocurrencies use. Blockchain is a decentralized digital ledger that securely records transactions. Some pundits believe it could represent the future of peer-to-peer or business-to-business transactions. In fact, more than 150 organization, including some well-known businesses, are currently testing ethereum’s blockchain on a pilot or small-scale basis.Ethereum appears best suited to appeal to big business, but the SegWit2X upgrade at bitcoin (bitcoin recently split into two currencies, bitcoin and bitcoin cash) should allow for faster processing times, lowering transaction fees, and greater capacity, which should appeal to enterprises.
Some investors simply like the idea of cryptocurrencies as a means of getting around traditional central bank-backed currency. In effect, bitcoin and other digital currencies act as a dream currency for libertarians. Quite a few well-known businesses also currently accept bitcoin to some capacity, adding validity that digital currencies may be here to stay.
We also can’t overlook momentum. Since most financial institutions have been kept on the sidelines, this run higher in cryptocurrencies is almost entirely due to the expectations of retail investors. As long as someone is willing to pay more, emotions and lofty expectations could drive bitcoin, ethereum, and its peers, higher.
Image source: Getty Images.
Finally, look to the weakening U.S. dollar as a reason digital currencies are so strong. A weaker dollar is great for U.S. exports, but it’s not so good for the American consumer or investor. Investors looking to maintain or grow their wealth may opt to move their money out of dollars and into a safe-haven commodity. Traditionally, gold has been this safe haven, but bitcoin and other cryptocurrencies have filled this role more recently. Gold is truly a finite commodity, but bitcoin’s protocol also limits the number of coins that can be mined, giving it a “finite” feel as well.
Though these digital currencies have returned mouthwatering gains for investors, there’s also the genuine possibility that this is a bubble just waiting to burst.
While arbitrary, this writer has seen an overwhelming number of cryptocurrency advertisements both online and in print suggesting that people invest in bitcoin. Generally, when we see an influx of ads surrounding a rapidly appreciating investment, it’s often emblematic of a bubble. Some of the fastest appreciating investments, including marijuana stocks, have had their valuations crater not too long after the calls to “invest in marijuana stocks” ramped up over the past couple of years.
Second, there’s not much in the way of “fundamental” data for investors to dig into to determine a fair valuation for cryptocurrencies. Without any government backing, there’s virtually nothing to tether the movement of digital currencies to other than the short-term emotions of investors. Blockchain technology is still too new to really get a bead on its usefulness for enterprises, meaning today’s cryptocurrency valuations may make little sense.
Image source: Getty Images.
There’s also clear evidence of overvaluation apparent in bitcoin-based equities that stock market investors can buy. For example, the Bitcoin Investment Trust (NASDAQOTH:GBTC) owns 173,014 bitcoin, which are valued at $4,577 as of Aug. 30. On an aggregate basis, this means Bitcoin Investment Trust owns $791.9 million worth of bitcoin. However, the market cap of the ETF run by Grayscale was $1.55 billion by 3 p.m. ET on Aug 30. That’s a 96% premium to what’s actually owned within the ETF. This premium makes no sense whatsoever!
Just as maddening, First Bitcoin Capital Corp. (NASDAQOTH:BITCF), which recently had its stock temporarily halted by the Securities and Exchange Commission for two weeks, is up over 24,000% over the trailing-12-month period. The company, which describes itself as developing cryptocurrencies, blockchain technology, and operating cryptocurrency exchanges, has virtually no assets, other than a mineral deposit in Venezuela from when it focused on being a gold mining company, and it generated a meager $46,236 in revenue in all of fiscal 2016. Yet First Bitcoin Capital has a market cap of $540 million. Wrap your hands around that.
I would strongly encourage investors who are seeking safe-haven assets to consider buying gold or silver to protect against a further decline in the dollar. Gold has a long history of being used as a viable currency, and it has a variety industrial and commercial uses. The same cannot be said for bitcoin, ethereum, or any digital currency.
Here is the original post:
The Aggregate Cryptocurrency Market Cap Is Up 810% Year to Date – Motley Fool
Mark Mobius is sensing danger in the explosive growth of cryptocurrencies.
Governments will begin clamping down on digital currencies because of their use in illicit financing, with terrorist groups to drug dealers contributing to their rise, Mobius, executive chairman at Templeton Emerging Markets Group, said in an interview in Hong Kong Monday.
Cryptocurrencies are beginning to get out of control and its going to attract the attention of governments around the world, Mobius said. Youre going to get a reversion back to gold because people are going to wonder, can I really trust these currencies?
And the crackdown may have already started — at least in China, home to the majority of bitcoin miners.
The Peoples Bank of China said Monday that initial coin offerings are illegal and that all related fundraising activity should be halted immediately. The central bank said it has completed investigations into organizations and individuals who have conducted so-called ICOs, and have ruled that such activities disturb financial order and will be banned.
In the U.S., both banks and regulators are studying distributed ledger technology. Federal Reserve officials have made a couple of formal speeches on the topic in the past 12 months, but have voiced reservations about digital currencies themselves.
Mobius isnt the only one voicing concern. Bank of America Merrill Lynch was cautious around bitcoin in July, saying there were a lot of obstacles, such as theft and hacking risks, that make it unlikely it will gain the status of pledgeable collateral.
Read more: Some Investors See Bitcoin Better Than Gold, Morgan Stanley Says
Bitcoin fell more than 10 percent on Monday, after news of the PBOC curbs. While the cryptocurrency is still up more than 360 percent this year and is still within striking distance of its record, its also prone to wild swings. Bitcoin surpassed the price for an ounce of gold for the first time in March.
Investors have poured hundreds of millions of dollars into the digital currency market this year alone, with the dollar value of the 20 biggest cryptocurrencies around $150 billion, according to data from Coinmarketcap.com.
People need a means of exchange and they need to trust that, said Mobius, who was interviewed before Chinas announcement. Right now the trust is good — with bitcoin people are buying and selling it, they think its a reasonable market — but there will come a day when government crackdowns come in and you begin to see the currency come down.
With assistance by Shery Ahn, and Angie Lau
If youre as confused about Bitcoin and other cryptocurrencies youre not alone.
By Team CommerceMashable Shopping2017-09-02 12:00:00 UTC
In essence, cryptocurrencies are decentralized digital currencies that can be sent to anyone through the internet. They arent affiliated with any particular country so theres no central bank that verifies these transactions. Instead, cryptocurrency miners use special software that creates a public record of each transaction and gives the miner a payment in return.
If you know what youre doing, you can make a lot of money mining this digital currency. But how does it work and whats the best way to do it? You can learn all of this from the Beginners Guide to Cryptocurrency Mining.
This course gives you access to 13 lectures so you can hit the ground running and make real money fast. Youll learn a mining system that has low startup costs and requires no affiliate marketing or graphics card. Youll also learn all the technical details about blockchains, general ledgers, hashes, and nonces that make up each successful transaction.
By the time youve finished with this course, you could be earning up to $1,000 per month from the comforts of your own home. The Beginners Guide to Cryptocurrency Mining normally costs $180, but you can get it for just $15today. Plus, over Labor Day weekend you can save 15 percent by using the code BYESUMMER.