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YouTube fails to clarify whether reduced streaming quality will impact live events – Cloud Pro

YouTube is yet to say whether the imposed low streaming quality across Europe will also carry over to its Live service, something which many businesses may come to rely on during increased demand for virtual conferencing.

The company announced today that it will lower the standard of its streaming quality in the UK and EU in order to prevent a much-feared internet-speed bottleneck, as thousands are confined to their homes due to the coronavirus outbreak.

However, when we asked whether the decision also applies to YouTube Live, parent company Google failed to provide an answer.

While we have seen only a few usage peaks, we have measures in place to automatically adjust our system to use less network capacity, said a spokesperson for the Google. Following the meeting between Googles CEO, Sundar Pichai, YouTube's CEO, Susan Wojcicki, and Commissioner Breton we are making a commitment to temporarily default all traffic in the EU to Standard Definition. We will continue working with member state governments and network operators to minimize stress on the system, while also delivering a good user experience.

YouTube Live seemed like a viable option for many companies looking to stream conferences and events that otherwise face cancellation or postponement, given that governments across the globe continue to advise against mass public gatherings.

The company added that the reduced quality of streaming in the EU and UK would last for around a month and was an action taken in cooperation with governments.

Europen commissioner for internal market and services Thierry Breton praised Pichai and Wojcicki for the move:

Millions of Europeans are adapting to social distancing measures thanks to digital platforms, helping them to telework, e-learn and entertain themselves, he said. I warmly welcome the initiative that Google has taken to preserve the smooth functioning of the Internet during the COVID19 crisis by having YouTube switch all EU traffic to Standard Definition by default.

"I appreciate the strong responsibility that Mr Pichai and Mrs Wojcicki have demonstrated. We will closely follow the evolution of the situation together.

YouTube is the second streaming service to announce that they are reducing their streaming quality due to the coronavirus outbreak, following Netflixs decision on Thursday.

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Are two clouds better than one? – ITWeb

Rupert Brazier, Pure Storage.

The last few years have seen an increasing interest among enterprises of all types and sizes towards a multicloud strategy. In every industry, businesses are considering and implementing such strategies, virtualising their infrastructure, and selecting a range of cloud providers, instead of depending on a single vendor. However, multicloud isnt for every business, and isnt without its challenges that need to be overcome in order to reap the benefits.

Before embarking on a multicloud journey, take a step back and identify the desired business outcomes. Cloud isnt a panacea to all IT problems. Teams should be making strategic decisions about the appropriate cloud environment to leverage based on the type of data in play, and the applications making use of that data, says Rupert Brazier, country manager, Pure Storage Businesses need to build a holistic, well-integrated data architecture that aligns data storage, VMs and applications encompassing multiple clouds and on-premises to succeed.

Thomas Lee, CEO of Wingu, says there are several foundational elements that need to be considered before adopting multicloud environments.

Connectivity is a major consideration. Others include security, single pane of glass management of costs and resources, the skills for your people, and even more, depending on your specific environment. One of the primary considerations is the workload that currently exists that you want to shift to or create new in the cloud. This helps you choose which cloud is right for you and when is the right time to move.

You also have to understand how to shift workloads between your environment and the cloud environment you select. Can you use tools? Must you rebuild from scratch? Can you shift the data seamlessly? Do you need to make backups and restore from them? Does the cloud environment support multicloud?

You need to consider the full spectrum of costs and not get sucked into the myopia of the price of one virtual machine versus another.

Thomas Lee, Wingu

Another major consideration, says Lee, is understanding the fiscal aspects of your datacentre versus the cloud. You need to consider the full spectrum of costs and not get sucked into the myopia of the price of one virtual machine versus another. It helps you understand the economics of when it makes sense to shift workloads to the cloud, when to shift them from one cloud to another, and when to shift them back on-premise. Financial modelling is crucial to the success or failure of cloud use.

Once you have your plan in place, you implement it in parts so that you can dynamically rework it according to the evolving scenario. A big part of that is going for the low-hanging fruit. That helps show returns on the project, demonstrates how effective it can be, and gets the business behind it. This leads to another important lesson adopting multicloud isnt a project that starts, gets implemented, then youre done; its an ongoing process that can take some time to shift all the way through. Most medium to large enterprises are going to invest a year or two, at least. And in that time, theyre going to change the scope of what theyre looking for and how they want it. The business isnt static, its evolving, and the cloud programme needs to keep pace with whats happening on the ground.

According to Avsharn Bachoo, CTO at PPS, the first and most crucial step is to define what multicloud means to you and to your organisation. The hype, buzz and fads often muddy an organisations cloud strategy, and CIOs jump straight into implementation. This is a critical first step as multicloud means many things. In my opinion, a multicloud environment is one in which you use two or more public cloud services from two or more cloud vendors.

Adding new technologies is also relatively easy; its getting them all to work together that can be challenging.

Mikey Molfessis, Mimecast

Based on Bachoos definition, three multicloud architectures exist: Architecture one is the simplest multicloud architecture, with a clean separation of your organisation's workloads between different cloud vendors. For instance, your tier 1 workloads run on Google Cloud Platform (GCP), while your tier 2 workloads run on Microsoft Azure, with no relationship across the cloud platforms. With architecture two, your primary workload is hosted with a specific cloud vendor, however, you consume specialist services from another cloud provider. For instance, your tier 1 application runs on GCP, but uses APIs from Azure. The third architecture enables your workloads to dynamically and automatically move between different cloud vendors, based on pricing or performance, which is called cloud bursting.

For businesses thinking about adopting a multicloud environment, even those that may not feel ready yet, it's a great idea to start exploring with a minimum of two cloud vendors, says Bachoo. As a CIO, this will help you get a feel of the interface and services, which will lead to an understanding of how a multicloud environment can serve their organisational needs and which direction to go in. As a CIO today, I dont believe youre in a position to leverage a single cloud for all your needs. Even as cloud vendors add multiple services like analytics and bespoke applications to try to keep people in the ecosystem, businesses need a multicloud strategy. The goal of a multicloud strategy is to provide the most value to the business for the money being spent.

The benefits of multicloud are many, says Brazier, including a greater degree of data centricity, with access to data across clouds. Enterprises need this data centricity to be more competitive in the market it enables a much more simplistic way of deploying overall services for IT and provides the real-time access to data required to gain more intelligence and make faster decisions through analytics. Also, multicloud can deliver increased agility, and the capability to scale workloads up and down very quickly, in line with business needs.

Business users need a variety of applications and they need them to play nice with enterprise systems, adds Lee. They need specific functionality, often quickly, and the cloud model is great for achieving that. But it also helps them stay within the framework of the business systems architecture so theres no need for dirty little shadow IT secrets that expose the business to unnecessary risk. The number one benefit they get in the digital economy is the ability to fail quickly, often, then move on to another opportunity until they find the right fit. Rapid and cost-effective failure is increasingly important. Cloud and multicloud help people get the functionality they need for their processes, for new products, for ways to enhance their services, while engineering in the control of data, governance, security risks and more. It helps them develop and adopt microservices in ways that make sense for the customer experience improvements they want to make. Interoperability through extensive and rigorous APIs is an enormous benefit to modern businesses, Lee adds.

It helps change the way they work so that they can change the way customers consume their services or products. Airlines, for example, are exposing events in their processes through APIs and integrating third-party microservices that help them offer passengers highly customised and dynamic benefits at almost any point on their journey. In a highly competitive and arguably cut-throat industry that sees almost disproportional failure rates, thats welcome competitive advantage.

No single cloud vendor has the best tools for everything, says Bachoo, and every cloud is built differently. These differences not only cover physical infrastructure components, but encompass a diverse range of characteristics, functionality and pricing models among other aspects. By using multiple cloud vendors, you can cherry-pick the best services from each. With the multicloud environment, you can spin up whatever cloud resources are on offer without having to compromise your choices. Multicloud offers a rich set of cloud options to solve various business needs across a diverse range of computing and business functions, thereby optimising returns on cloud investments. For example, if you build your core business application on GCP, and need a SQL database from Azure, then you would use both GCP and Azure.

Another benefit, says Bachoo, is peace of mind that your organisation isnt at the mercy of a single vendor. Not only might that vendor suffer an outage, but their service levels could decline or their prices could go up. By using two or more vendors, your infrastructure becomes more resilient and you could keep clones of your applications in two separate clouds so that, if one cloud vendor goes down, your business keeps running.

The other benefit that Ive experienced is better negotiation power, he says. Having the ability to autonomously run your workloads on different cloud providers gives a CIO much more negotiation room. As a CIO, if you feel that the best deal hasnt been reached for your organisation, theres an option to change cloud providers far more easily, as you already know that some of your workloads are running on another cloud vendor. Distributing your business between vendors can give you ample leverage in your negotiations.

Beware the pitfalls

So what are the points of failure to avoid when adopting multicloud in the business? Avoid lock-in, says Brazier. The public cloud is changing at an incredible rate with new and differentiated services. That means flexibility is key when looking at which cloud is the best fit for your workload. The framework needs to be able to accommodate this. Ensure the framework aligns with your technical goals in terms of application hosting, be that hosting VMs, running scalable container platforms or exploiting public cloud PaaS offerings. Finally, carefully consider how your on-prem cloud integrates into the multicloud architecture. Trying to integrate a traditional IT environment with the public cloud to create a multicloud risks dumbing down the whole environment to the lowest common denominator. The benefits of cloud are predicated on flexibility and agility; full automation is key to delivering this and that automation needs to be applied to all components within the multicloud. Ensure the on-premises and public cloud environments are fully automated through the underlying APIs across the environment. If youre not able to balance multiple solutions from multiple vendors, this can lead to issues around solution compatibility, and overlapping technologies, which result in unnecessary costs for businesses.

When organisations test products on different cloud providers, they often find it easier to keep multiple solutions running on different platforms, adds Mikey Molfessis, sales engineer at Mimecast. Each cloud provider has its own security principles and solutions on offer, which can cause a bit of an admin nightmare on the customers side, especially when they run on multiple cloud platforms.

To reduce this complexity, some organisations look to consolidate to a single cloud, but it can be difficult due to the solutions they may have developed and their role within the business. What organisations are striving for instead, is a standard security platform across their cloud deployments with effective monitoring capabilities. Many organisations are investing in SIEMs and SOARs, but that doesnt solve the issue of what they need to monitor and what to do with the data. Adding new technologies is also relatively easy; its getting them all to work together that can be challenging. However, its essential that they do, as its the key to keeping the organisation as safe as possible and optimising the investments made into cloud and associated security solutions, adds Molfessis.

What organisations should look for is a security provider that has built its solutions from the ground up with cloud in mind as this will result in reduced complexity, lower risk and greater returns on investment into security and cloud solutions, he continues.

For Bachoo, the biggest potential failure is not clearly understanding all the vendors pricing models. Cloud vendors typically offer a dynamic usage or volume-based pricing model. The pricing models are almost always linked to large discounts based on usage or volume. In South Africa, the discount can be as high as 40% for high usage or volume or no discount for low volumes. As a CIO, these discounts can make or break your total IT opex budget for the year. Certainly, by diluting your cloud deployments, you will also be diluting these discounts. Adding to this complexity, even if youre using a single cloud vendor, understanding the pricing model can be difficult; imagine how difficult it is with two or three cloud vendors.

Its also important to understand the global architecture of different cloud providers and design your multicloud to leverage their multiple availability zones and multiple regions, says Bachoo. Its important to understand this geography and location of your cloud vendors, as this affects latency. You must take into account each of your cloud providers content distribution network, as when you switch cloud providers, latency issues will result. Its difficult to move large amounts of data and their accompanying applications across cloud vendors. Its not just the obvious costs such as bandwidth and cloud egress charges, but also the cost of maintaining a second environment. Simply put, moving data around is hard.0

Another issue is understanding the different permutations of the various cloud platforms, says Lee. Theyre almost impossible to compare like for like. That means you need deeper skills to be able to understand how the different platforms will impact your business and what youre trying to achieve from the platforms. It means you need people with the training, skills, and knowledge to determine if its possible to use the platforms to achieve your aims and which solutions are on which platforms. Its another level of complexity and adds time to the process of determining which cloud platform to use, how to get the best advantage for your business, and how to go about moving into the cloud. How you get there, how you lift and shift your systems, or how you get the benefits of promotional and other offers from the cloud service providers, which can make huge potential savings every year, is a paramount consideration.

All clouds say its easy to move, but the reality is more often that, once youre in the ecosphere, its very difficult to move. Its the complexity that locks people into one environment or another, says Lee.

So how should businesses go about managing that complexity? Brazier says the importance of software cant be overstated. According to Gartner, in 2019, worldwide spending on enterprise software was expected to reach $439bn, thats an increase of 8.3% from 2018. When it comes to managing a multicloud environment, organisations should aim to invest in a single, consolidated, cloud-based management interface for their infrastructure and data storage. A solution that allows companies to access their data from anywhere, with 24/7 predictive support that can autonomously find and fix issues. Additionally, this kind of software should be able to look at how an infrastructure is performing, what its capacity is, whether it needs to be upgraded or repaired, as well as sending data back to a central hub for analysis and more informed decision-making, he says.

You need the right resources, says Lee. A cloud architect, for example, is enormously helpful to highly complex environments. Small businesses, though, rely on the service provider to supply that capability, which you can see in the partner ecosystems that proliferate the SOA-based cloud services. Qualified personnel will help you determine the finer details to successful cloud operations. Just because a cloud-based system has the same specs as your current on-premise kit doesnt necessarily mean it will deliver the same performance. It could be throttled at any point in the delivery. Or it could be optimised differently. Some systems are optimised for compute capabilities, others for I/O and storage, and so on. Knowing which do that will help you determine the correct mixture of multi-cloud platforms to use.

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Will coronavirus change the way we view tech? – BusinessCloud

There arent many good things to come out of the coronavirus outbreak but the pandemic might (inadvertently) change the way we view tech forever.

From remote working to people seeing their GP online, the world is turning to technology to try and slow down the number of new cases of the virus.

There have already been dire warnings of an economic meltdown in the travel, sporting and hospitality sectors but could technology mitigate the impact and reduce the spread of the coronavirus in the process?

Tobias Alpsten is the CEO at iPLATO Healthcare and the creator of myGP app and has seen a big spike in requests from patients wanting to see the doctor via a video link.

Some clinicians use our tech to work from home, he said. It's a huge push now but it's too early to say that it has structurally changed the way that healthcare works.

Just like the rest of the health service, we're challenged to meet demand. There has never been a better time for patients and healthcare professionals to NOT visit the practice so remote consultation on myGP is, not unexpectedly, flying.

Outbound messaging to guide patients has doubled compared to a 'normal' month to over 1/2 million per day and the Covid-19 signpost that sits within the myGP appointment booking process has 80,000 views per day.

But with thousands of practices on the platform we also see the other end of the spectrum. We see some practices shutting down digital tools to go back to their old ways of working (phone during open hours to access services) in a desperate attempt to regain control of the situation. This usually results in a jammed switchboard and further confusion among patients.

Marc Schmid is the founder of Lancashire-based Redmoor Health, which specialises in applying tech digital solutions on the frontline of health and social care, and believes the coronavirus has changed primary healthcare forever.

Its unprecedented, he said. "Its changing the way organisations work, not just in the health sector but also in business. Do people need to have that face-to-face meeting? Were using Microsoft Team a lot. Ive said to our team that we dont need to be sitting in the same room. A lot of business can be done remotely.

The current situation has highlighted a lot of gaps around some peoples access to technology, especially the elderly. If you havent got access to iPads how to you stop people getting socially isolated?

Even before the coronavirus outbreak Schmid championed the case for more GP video consultations to cope with rising demand.

He said: Theres been a huge push in the use of video from GP practices - not just to prevent patients having to mix but also to protect the staff as some people with obvious symptoms still find it acceptable to ignore advice and turn up at GP practices, putting the health of staff and patients at risk. It is a terrible situation but I suspect primary care and how it is delivered will have changed forever.

Were supporting practices on the frontline to use technologies they have at their disposal. Were not visiting GPs because they dont want staff being put at undue risk. We have a number of practices in the Midlands and the North West who are doing everything online. Theyre keeping as many people out of the surgeries as possible.

The last thing we want is people going into practices and passing the virus onto GPs and reception staff.

Were connecting them with other GPs because they can learn off each other. This week were also going to do some digital drop-in sessions for GP practices and answering any questions that they may have.

Coronavirus has seen a huge increase in the number of people remote-working.

Companies big and small have been encouraging staff to work from home where possible.

Twitter told its employees to work from home to help stop the spread of the coronavirus and a lot of other smaller companies have been buying extra laptops and uploading a remote-access VPN connection to allow staff to connect to a private network from a remote location.

Cloud hosting firm UKFast offers a remote desktop service called FASTdesk that gives its customers access to their entire office desktop. It uses enterprise-grade technology from Citrix and is hosted on the cloud to enable employees to access their remote desktop in an instant.

Damian Hanson is a co-founder of Lancashire-based cloud-based phone system CircleLoop that is used by more than 4,000 UK businesses. Its completely application-based, which means that businesses can access their business phone numbers in the cloud-based system and use them on their existing devices.

Hanson told BusinessCloud: Due to coronavirus businesses are now implementing remote-working policies and CircleLoop just works anywhere on any device. Sign-ups for CircleLoop in the past week are 100 per cent higher than normal.

Sandbach-based Three Little Birds PR are specialists in travel, tourism and leisure, all sectors that have been badly hit by coronavirus.

MD and founder Sheila Manzano said their use of Office 365 had made a big difference. She said: As a small operation we are set up this way already. Perhaps similar sized companies to us that aren't using such platforms will implement them going forward. My team can remote work instantly without disruption to our services... although as a tourism PR agency we are naturally in a challenging period.

Award-winning entrepreneur Helen Tonks is the co-founder of Cheshire-based Hydraulics Online and said human contact wasnt a prerequisite of running a successful business.

I have said for a while that COVID-19 will change the way we behave and interact forever, she said. As it is, we already give remote, bespoke service to customers worldwide. We probably meet less than 2 per cent of our customers. But if the knowledge and service is there relationships can still flourish.

Many analysts are predicting that the coronavirus will be the catalyst for growth in the FinTech sector as people avoid high street banks.

Fast-growing Manchester-based instant messaging platform Nivo is designed to prevent people from ever having to phone service providers such as banks, lenders, insurance firms, utilities, telecoms and healthcare providers.

Polly Taylor-Pullen heads up business development at Nivo, tech start-up of the year and said: Our clients are telling us that they are able to carry on business as usual because of Nivo.

In fact, some (mainly commercial SME lenders) are saying they are receiving more digital applications through Nivo than ever before as people are turning to online journeys to apply for loans.

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The Puell Multiple Is Turning Bullish on Bitcoin – CoinDesk – Coindesk

Bitcoins (BTC) recent sell-off has pushed prices on the top cryptocurrency by market capitalization into a historically attractive zone, according to one indicator.

Prices fell from $10,200 in mid-February to 12-month lows below $4,000 last week, dashing many hopes for a strong rally ahead of the May 2020 mining reward halving.

However, with the price slide, a key indicator called the Puell Multiple has declined to levels suggesting the value of newly issued bitcoins on a daily basis is quite low compared to historical standards.

Put simply, this signals appears to show the cryptocurrency is now undervalued.

The Puell Multiple is calculated by dividing the daily issuance value of bitcoins in U.S. dollar terms by the 365-day moving average of the daily issuance value.

Daily issuance refers to new coins added to the ecosystem by miners, who receive coins as rewards for validating blocks on the blockchain. Miners usually cover mining costs by selling coins into the market.

The Puell Multiple slipped to 0.41 on March 16, the lowest level since Jan. 17, 2019 and was last seen at 0.47, according to data provided by the blockchain intelligence firm Glassnode.

The metric is now hovering in the green zone or the range of 0.3 to 0.5, which has marked bear market bottoms in the past.

Historical data also shows the indicator enters the green zone in the last leg of the bear market following which the bearish momentum weakens.

2018 bear market

Bitcoins bear market from the record high of $20,000 reached in December 2017 ended at lows near $3,200 in mid-December 2018, with the Puell Multiple hitting a low of 0.30.

The indicator entered the green zone during the last leg of the bear market, which began on Nov. 14, 2018, when prices fell below the long-held support of $6,000 and slipped to $4,000 by Nov. 20.

On that day, the Puell Multiple fell below 0.5, signaling undervaluation. The selling pressure ebbed in the following days, allowing a recovery from $3,400 to $4,400 in the last week of November.

While the bounce was short-lived, the sellers could not do much damage, as evidenced by prices bottoming out just $200 below November's low of $3,400 on Dec. 15. Thats when the Puell Multiple was hovering near 0.30.

Going back more than half a decade, bitcoins downward move from the November 2013 high of $1,100 came to an end near $150 in January 2015. The Puell Multiple also bottomed out near 0.30 in mid-January. Similarly, the preceding bear market had ended in November 2011 with the indicators drop to 0.30.

Is the bear market over?

The latest under-0.50 reading on the indicator suggests the worst is behind us. Other metrics like the market value to realized value (MVRV) Z-score are also indicating undervaluation.

However, the cryptocurrency might not be out of the woods yet, as the Puell Multiple hasnt dropped to 0.30 the level which has marked bear market lows in the past.

If history is a guide, we may see one more bout of selling, which could likely push prices back to the $5,000-$4,000 range and the Puell Multiple down to 0.30.

"We can certainly retest recent lows once or twice," Mike Alfred, CEO of Digital Assets Data, told CoinDesk, while adding that dips below $5,000 will be short-lived, courtesy of strong demand from long-term holders investors who bought bitcoins before the massive rally from $6,000 to $20,000 seen in the fourth quarter of 2017 and during the last five weeks of 2018.

Bitcoin is currently trading near $6,550, representing a 69 percent from recent lows under $4,000. Prices hit a high of $6,907 early Friday, according to CoinDesks Bitcoin Price Index.

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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Bitcoin Is Fast Approaching $7,000Heres Why – Forbes

Bitcoin, which surprised markets with a sudden surge yesterday, has continued to climb today.

The bitcoin price is fast approaching $7,000 per bitcoin, reaching $6,749 on the Luxembourg-based Bitstamp exchange earlier today after starting the week at under $5,000.

Bitcoin is up around 20% over the last 24-hour trading period, while other major tokens, including ethereum, Ripple's XRP, litecoin and bitcoin cash, are up between 15% and 22%.

The bitcoin price fell sharply earlier this month as part of the wider coronavirus-induced economic ... [+] chaos which wiped trillions of dollars from global markets.

The bitcoin rally appears to be driven by large amounts of so-called stablecoin tether flooding the market.

Stablecoins, the largest of which is tether with a total value of $4.6 billion, are designed to mirror the value of the traditional currency they're tied to with the creators of such coins generally claiming to hold the fiat equivalent of their tokens.

Over the last 48-hours some $120 million worth of tether has been minted, though the company behind tether said this was just an "inventory replenish" that had not yet been issued onto the market.

"Its likely that speculators are already starting to jump in [to bitcoin] because they feel a big buy order may be coming," said Simon Peters, bitcoin and crypto analyst at brokerage eToro.

The top ten bitcoin and crypto exchanges around the world have around $350 million of liquidity on their books, according to the Coinmarketcap liquidity index and Peters thinks that if the entire $120 million of new tether went into the crypto markets, it "could move prices significantly."

"It will be interesting to see if demand continues to increase over the days to come and whether we start seeing some more prominent higher highs and higher lows in price action. This would give me more confidence that a recovery is on the cards," Peters said, adding "were not out of the woods yet."

Meanwhile, a Twitter bot that tracks major bitcoin and cryptocurrency trades, Whale Alert, has shown a number of large bitcoin transactions moving off exchanges to unknown wallets in the last 24-hours, suggesting some big investors have already taken advantage of the low bitcoin prices to buy more.

The bitcoin price has rallied hard over the last two days, adding a whopping 26% and nearing $7,000 ... [+] per bitcoin.

Bitcoin's rebound yesterday came ahead of a broader recovery in traditional markets after a global sell-off last week due to the spreading coronavirus.

Global stocks and the price of oil have climbed today, suggesting a growing raft of central bank-led stimulus has finally satisfied investors and restored some semblance of market confidence.

However, countries and major cities around the world are increasingly going into shut down as governments desperately try to minimize the impact of COVID-19.

Some analysts have warned this market rebound could be what's known as a "dead cat bounce" and markets, possibly including bitcoin and crypto, could soon fall back again.

"We've had a massive asset bubble that is now crashing," said economic analyst Jesse Colombo via Twitter.

"Right now, most people are shell-shockedtheyre still in the denial phase. I believe we are primed for a powerful bull trap very soon [especially] with all these stimulus announcements. The market will probably bounce hard, which will suck in all the dumb money ... Once investors get complacent and cocky again after a sharp market rebound, that sets the stage for the rug to be pulled out from under them, which will lead to an even more powerful crash than the first one."

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Contrary To Popular Belief, Bitcoin Isn’t Consistently Correlated To Anything – Forbes

Sometimes bitcoin's price moves with the stock market, and sometimes it doesn't. (Photo by Bryan R. ... [+] Smith / AFP) (Photo by BRYAN R. SMITH/AFP via Getty Images)

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

As a borderless digital asset not controlled by governments or centralized companies, bitcoins price should, in theory, travel its own path, independent of other currencies and markets. Cryptos pioneer asset, however, has seen varied views suggesting correlations to traditional markets, such as stocks, safe-haven investments such as gold, or even arguments that bitcoin is not correlated to anything. Available data shows no firm answer, as bitcoins correlation seems to change with the wind, while a number of experts have varying thoughts on the matter.

I believe that bitcoin does have a correlation with traditional stock markets because they are both private assets, analyst and trader Tone Vays told me in a March 18 comment. Bitcoin benefitted a lot from the ten year bull market because people got generally wealthier, and they were more willing to speculate on something like bitcoin, Vays added, mentioning the thriving market seen over the last decade.

Vays expects a positive reaction from bitcoin during relatively uncertain economic times, such as a countrys withdrawal from the eurozone for example. People will be scared, but they still have their jobs and theyre looking for a place exit, he said, referencing people prospecting for investment opportunities.

The analyst, however, said the current situation differs. When it comes to a major situation like we have now with the markets crashing, and people worrying about their jobs, theyre not going to speculate on bitcoin, Vays said. As an asset that has only been in existence for roughly 11 years, the analyst explained bitcoin is not yet primed to take the place of cash across the globe.

Amid global coronavirus fears and oil trade wars, recent days have seen traditional markets plummet. The Dow Jones Industrial Average (DJI), a common barometer for market health, fell more than 20% from its 2020 highs by March 11, and faced continued decline in the days following. Bitcoin suffered similar carnage around the same time frame, diving from $10,500 on February 12, down to $3,870 by March 13.

Between March 12 and 13, BTC fell from $8,000 down to $3,870, while the Dow fell from 22,840 to 21,150, according to TradingView.com price charts. The Dows March 12 drop totaled over 7% which is less damage comparative to bitcoins dump, but still a severe market loss by traditional market standards.

Bitcoin Sometimes Travels Its Own Path

Bitcoins price has not always travelled in line with traditional markets, however. Based on bitcoins chart, compared to the S&P 500 index, another popular mainstream benchmark, cryptos pioneer asset has acted oppositely at times.

An article from Cointelegraph compared historical price data between 2018 and 2019 from the S&P 500 and bitcoin, showing inconclusive data for any firm trend. At times, bitcoin did not react, or acted oppositely when the S&P 500 moved sharply. During other periods, the two seemingly moved in sync.

According to Vays, bitcoins price does not follow traditional markets during times of decreased price swings, also known as low volatility, sometimes seen when markets are level or marginally trending upward. If the volatility of the stock market isnt huge, bitcoin is not correlated at all, he said. When the market is going up very quickly, or when the market is crashing, I believe there is a correlation to bitcoin because theyre both private assets.

In recent days, amid the mentioned traditional market fears and falling prices, bitcoin has held rather steady. Specifically, on March 16, the Dow suffered another red day, while bitcoin traded largely sideways, ranging between $4,450 and $5,370, rather than posting new 2020 price lows like the Dow. The asset has held strong since March 16, regardless of traditional markets, sitting at a press time price of $6,648.

Cryptos Largest Coin Stated As A Non-Correlated Asset

Morgan Creek Digital cofounder and crypto aficionado Anthony Pompliano noted bitcoins comparative action in a March 16 tweet. Bitcoin is basically flat today and the stock market is down double digits, he said.

Don't hear many people yelling about BITCOIN IS CORRELATED! today, Pompliano added. Truth is correlation doesn't matter over short periods of time. Over months and years, bitcoin remains a non-correlated asset.

Over the years, Pompliano has piped up many times, defending his stance of bitcoin as a non-correlated asset. Bitcoin is definitely a non-correlated asset, Pompliano told CNBC in a December 2018 interview. If you look at the correlation between the digital asset and the S&P 500 over the last 180 days, its at zero, he noted. If you look at it compared to the dollar index, its near zero, he added.

As of a January 2020 interview with Cointelegraph, Pompliano said his position on the matter had not changed. The most important part of bitcoin, when it comes to the global hedge, is the fact that its a non-correlated asset meaning that, as stocks go up or down, bitcoin doesnt have correlation to that, he told the media outlet.

Centralized Investor Population

Emmanuel Goh, CEO of crypto analytics company Skew, explained bitcoins price action relative to stock market investors. The top 10% wealthiest households own 84% of available U.S. stocks according to a 2016 report from the National Bureau of Economic Research (NBER). Goh told me Baby Boomers comprise most of these numbers while holding almost no bitcoin. Millennials who own bitcoin also have a small allocation to stocks, he added.

That should make, in theory, bitcoin more immune to liquidations and margin calls during a global sell-off, Goh explained. Bitcoin was still down 10% in sympathy today - a muted reaction in our view given the context for global markets and bitcoin high volatility, he said on March 9, noting a relatively small move for bitcoin given its regular tendencies.

As bitcoin continues to age, gaining further recognition with time, the asset may develop a more predictable correlation or lack of correlation to traditional markets or world events. At this point, however, cryptos pioneer asset appears to be finding its way one step at a time, changing its correlation at times.

Disclaimer: I actively trade cryptocurrencies, as well as hold a small amount of BTC, ETH, LTC, XMR, NEO, ZEC, BEAM, BCH, DASH, LINK, XTZ andvarious insignificant other altcoin positions.

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Contrary To Popular Belief, Bitcoin Isn't Consistently Correlated To Anything - Forbes

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Bitcoins Magic Is Fading, And Thats A Good Thing – Forbes

As bitcoin's price appears to be correlating with traditional markets, it's undergoing an identity ... [+] crisis that could kill it, or see it evolve.

Bitcoin is no longer the magic internet money that its long been branded. There are no dark forces causing it to behave the opposite of traditional markets. There is no algorithm that forces it to zig when the rest of the world zags. In large-part, there are just a lot of freaks and weirdos, disenfranchised idealists, citizens of countries with untrustworthy central banks, doing things that traditional investors think are crazy.

From the outside, all these seemingly irrational early bitcoin owners doing unorthodox things with an asset that doesnt rely on any central bank or securities depository, gave the appearance that bitcoin wasnt correlated to traditional markets, or even safe-havens like gold. After all, when the S&P 500 dropped, bitcoin shot up. When banks in Cyprus collapsed, bitcoin was bolstered. And it was a narrative bitcoin puristsperhaps foolishlypropagated. If normal people, the enfranchised, the folks in countries with stable currencies, started buying, it could only drive the price of the scarce asset higher, or so was the thinking.

Then came the coronavirus, wreaking havoc on global finance, and everything changed. Or to be more accurate, people started to see what bitcoin really was. Starting around March 11, as concerns about the coronavirus escalated closures of everything from some of the largest companies in the world, including Apple and Tesla, to local bars and restaurants, the price of the S&P 500 and other global markets collapsed by 10%, taking bitcoin with it. Bitcoin, the digital asset that had come to be identified with its non-correlation, was broken, many warned, and if it was correlated with traditional markets its use and value were gone.

Theres a couple problems with that narrative though. If bitcoins value was being driven by it being a non-correlated asset, then the moment it did correlate, its value should have gone down towards zero. Nevertheless, bitcoins price has already started to recover, right along with traditional markets, increasing by 16% over the most recent 24-hour period. If non-correlation was core to bitcoins value, why was it increasing right along with traditional markets? Second, people were buying, and more importantly, using bitcoin long before traditional investors started talking about bitcoin being non-correlated at all.

Early bitcoin users bought bitcoin for largely ideological reasons. In loosely chronological order, they used it because: it was fun and weird; it let them buy things online without needing to use a bank, much less a central bank; it let them buy things online, like drugs, that they couldnt use a credit card for; it couldnt be seized if their government found them unsavory for any reason; it couldnt be manipulated by printing more. And thats just to name a few.

There was no talk of hedging in those early days. There was no talk of diversifying a portfolio, and what percent one should have on hand. Back then, they werent even really called investors at all. They were holders. To be sure, fortunes were made, and lost, due to lack of those considerations. Accidental millionaires were created, as was complete financial devastation.

Then, over the counter trading became a thing. Grayscale paved the way in 2015 by securitizing bitcoin and other cryptocurrencies, letting accredited and institutional investors who might not otherwise be legally allowed to touch the asset gain exposure. Then traditional financial institutions like Fidelity and CME Group got involved, not only making it easier for traditional investors to participate in the nascent economy, but expanding the kinds of behaviors exhibited by the people who own bitcoin. These were the hedgers, the portfolio makers, the day-traders. The frenzy caused by such vaunted interest in part helped drive the price of bitcoin to nearly $20,000 at the end of 2017, before it collapsed to $4,000. By June 2019 the price had recovered to $13,000.

Then, in the Fall of 2019, something happened. Were still not sure what it was, but it appears a bunch of new investors started buying bitcoin, according to data created by cryptocurrency data firm, CoinMetrics and others. Very little is known about this spending spree, but from September to December, those investors filled up their coffers with crypto. The price rather benignly moved from $10,000 to $7,100 over the same time. A relatively small movement, especially for seasoned bitcoin traders who were used to seeing that kind of action in a single day.

However, we wouldnt learn about this new breed of investor until March 11, that fateful day when fears over coronavirus started to reach a frenzied note. That day, 281,000 bitcoin that its owners had held for a mere thirty days were sold, according to CoinMetrics, while only 4,131 bitcoin that had laid dormant for a year or more moved, indicating that the vast majority of the volatility was almost certainly from new buyers.

The following day, those actions had aligned bitcoins movements with the S&P 500 more than it had ever been before, based on CoinMetrics calculation of what is called the Pearson correlation, which shows the similarity between two sets, and has stayed at about that level for the past five days, according to the firm. A separate analysis by financial services firm Unchained Capital found that over a longer time period, from March 11 to March 15, a majority of the volatility, or about 458,000 bitcoins, came from accounts that were between one month and one year old.

To be clear, we dont know anything about the investors who triggered the sell-off, or what were their motives. All we know is their accounts were new, they all started selling at about the same time, either corresponding with, or triggering the tightest market correlation with the S&P 500 bitcoin has ever experienced. Even as they were making their trades though, whispers of buy the dip could already be heard among the old-school bitcoin holders.Cryptocurrency exchange Kraken has actually seen an 83% increase in the amount of account signups over the week of the collapse, compared to the week beforepeople looking to capitalize on the low price.

In the fall-out surrounding coronavirus, banks once again started printing money to create the liquidity thats crucial to keeping the global financial gears lubricated. Could bitcoins limited supply still prove to be an antidote? Some asked. Might bitcoin evolve into something else entirely? For an open-source currency, constantly being recreated by the very people who own it, anything is possible. Until then though, dont be surprised when bitcoin behaves exactly the way its owners do.

So, if bitcoin isnt magic, what is it? At its core, its underlying blockchain technology is just the ability to prove that a digital item is only in one place at a time. That ability laid the foundation for it to possibly, someday, acquire value, which it has. But unlike other assets, its also a payment rails, a way to move that value. How much is an asset with its own native payment rails worth? Right now its worth $6,200 per bitcoin for a total market value of $113 billion, not counting the vast infrastructure in place to support it.For some comparison though, Visa and Mastercard together are worth about $500 billion dollars.

Really though, what makes bitcoin different, is it was the first financial innovation ever adopted by cooky retail investors first. And when traditional investors, used to seeing their own image reflected in innovation, saw something else, they assumed it was magic. When all it really was, is a payment system, and dare I say, a store of value, that lets people own the asset and the infrastructure. Everything else is up in the air.

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Bitcoins Magic Is Fading, And Thats A Good Thing - Forbes

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Bitcoin Rally Leaves Stocks In The Dust – Forbes

Bitcoin rose sharply today, while major stock indices languished.

Bitcoin prices surged today, climbing roughly 20% as the major stock indices experienced substantially weaker gains.

The worlds most prominent digital currency rose to $6,393.76 around 1:45 p.m. EST, according to CoinDesk data.

At this point, the cryptocurrency was up 19.8% for the day, and had climbed more than 60% from its recent low of less than $3,900 reached on March 13th, additional CoinDesk figures show.

In contrast, major U.S. stock indices have not shown compelling gains today, with the S&P 500 Index and the Dow Jones Industrial Average up less than 1% since opening, Google Finance data shows.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

A combination of factors are driving the market higher today, said analyst Denis Vinokourov, head of research for London-based digital asset firmBequant.

Specifically, he pointed to profit taking flow in the options market as well as some degree of stabilisation of the liquidity conditions, with the cost of liquidity continuing to come off the extreme levels observed over the recent sessions.

He also spoke to the vastly different performance of bitcoin and stocks, which had been falling together recently.

While Bitcoin may have been trading in lockstep with risk assets and in particular S&P500, it is not the first that the the digital asset has established some degree of correlation to traditional assets, said Vinokourov.

Everytime, this correlation proved to be short lived, he noted.

This deviation is another win for an asset that prides itself on its non-correlated and asymmetric performance, Vinokourov stated.

Catherine Coley, CEO of Binance.US, also weighed on the recent changes in the global asset markets.

Last weeks nosedive in crypto markets was part of a universal rush to cash among investors in response to unprecedented panic and uncertainty, but Bitcoins appeal as a safe haven and deflationary asset is once more apparent amid the raft of fiscal and monetary stimulus from governments and central banks around the world, reminding investors just how precarious the existing financial system really is, she said.

Paolo Ardoino, CTO of Bitfinex and Tether, took a different tack, describing recent events as providing validation for the entire space.

"The blockchain industry can and will survive through tremulous current events, he stated.

The current situation shows that the global economy needs transparency and blockchain, noted Ardoino.

You can not keep printing money out of thin air leaving our children to pick up the debt. Bitcoin is the answer, he stated.

Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether and EOS.

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Bitcoin Rally Leaves Stocks In The Dust - Forbes

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Coronavirus is forcing fans of Bitcoin to realize its not a safe haven after all – MIT Technology Review

All hell seems to be breaking loose in the financial markets in light of the coronavirus pandemic. But if youve spent any time talking with a Bitcoin enthusiast, youve probably been told (perhaps many times) that moments like this are what the cryptocurrency was made for. Some of its most ardent fans have contended that since the digital asset is uncorrelated with traditional assets like stocks, it is a safe haven against market crashes like those we are seeing right now.

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Sign up for the Chain Letter blockchains, cryptocurrencies, and why they matter

Much to the disappointment of true believers, however, Bitcoinin fact, the whole cryptocurrency markethas cratered right along with the stock market. Though the price has jumped today, at publication time it was still down roughly 40% from a month ago. So is Bitcoin not actually a safe haven after all? Though it appears to have failed the biggest test of the idea yet, the debate will probably rage on, serving as a reminder that we are still figuring out exactly what Bitcoin is and is not.

Its also not clear that Bitcoin is supposed to be anything in particular. But Satoshi Nakamoto, its pseudonymous, still-unknown creator, did leave some clues. The title of Nakamotos Bitcoin white paper, which introduced the concept to the world, refers to peer-to-peer electronic cash. In the introduction, Nakamoto called for an alternative to the traditional system of online commerce, which relies too heavily on trusted third parties.

Then there is the mysterious message Bitcoins creator left in the very first record of transactions in the blockchain, known as the genesis block: The Times 03/Jan/2009 Chancellor on the brink of a second bailout for banks. Nakamoto never explained what this message meant. Still, its hard not to see Bitcoin as a reaction to the last global financial meltdown, which began in September of 2008. The Bitcoin white paper hit a popular cryptography email list on Halloween of that year, and the system was running by January.

In practice, Bitcoin is too slow and inefficient to act like electronic cash. Instead, many enthusiasts today view it as a form of digital gold. Real gold has long been considered a reliable store of value, and investors tend to see it as a form of insurance against an economic downturn.

Gold is also famously seen as a safe haven asset, which Investopedia defines as an investment that is expected to retain or increase in value during times of market turbulence. Other commodities like silver, corn, and livestock can also be safe havens. So are US Treasury bonds and cash. Many Bitcoin advocates have claimed that the digital asset belongs in this league too. Then last week happened.

Surprised were seeing the Bitcoin price fall in this environment, would have expected the opposite, Brian Armstrong, CEO of the popular US exchange Coinbase, tweeted on March 9, likely expressing what many Bitcoin fans were feeling. And that was before the carnage of March 12, when Bitcoin lost more than 40% of its value.

So what happened? One part of the explanation is somewhat ironic. In its earlier days, most of the people who invested in Bitcoin were committed to building an alternative financial system. They saw it as a long-term investment. Bitcoin used to be the asset of the future, writes Noelle Acheson, director of research at CoinDesk. It really was separate from the traditional financial system.

But as an industry has emerged around the currency in more recent years, it has made a major effort to foster adoption by institutional investors like hedge funds and other professional trading desks. The recent selloff is evidence that the effort has worked. Professional traders have been desperate to raise cash, writes Acheson: Bitcoin was just another financial asset getting trampled as investors headed for the exit.

So in its short life, Bitcoin has gone from an extremely obscure asset held mostly by true believers to just another financial asset. In light of the latest global financial crisis, it looks nothing like a safe haven. But in other contextssuch as in countries with high inflation, like Venezuelait has become a safe haven of sorts, at least compared with the national currency. And though it did crash alongside the stock market this time, Bitcoin can still be considered an alternative asset, in that like gold it doesnt depend on the cash flows of other institutions for its value, writes Acheson: The greater range of alternative assets, the better for investors, especially in troubling times like these.

A decade from now, how different will Bitcoin look as an asset? Will it still look more like digital gold than digital cash? Who will be investing in it, and why? What Bitcoin is is bound to keep changing along with those factors. So are ideas about the role it can play for investors and in society, safe haven or not.

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Coronavirus is forcing fans of Bitcoin to realize its not a safe haven after all - MIT Technology Review

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Top Analyst Explains Why Bitcoin Price is Up 78% amid Coronavirus Outbreak – newsBTC

Bitcoin resumed its roller-coaster rally even as the worsening Coronovirus pandemic discouraged investors from holding risky assets.

The benchmark cryptocurrency jumped 29.11 percent in the last 24 hours, hitting a new weekly high of $6,900 on Coinbase. The move uphill came after last weeks erratic sell-off that crashed bitcoin from $7,969 to as low as $3,858. Nevertheless, a renewed buying interest near the session lows helped the price rebound, eventually taking it up by 78 percent by this Friday.

BTC/USD jumps buy up to 78 percent | Source: TradingView.com

But the scale of bitcoins jump remained incalculable to many. The cryptocurrency last week threatened to move further down below the local bottom as investors appetite for cash boomed. Its rise, therefore, came as a surprise given the poor health of the global economy.

Dan Tapiero, the co-founder of US-based investment management firm, DCAP Holdings, attempted to explain the price rally. The macro investor credited negative interest rates for pumping bitcoin, explaining that people now need to pay the US government for keeping their money with them.

Central banks have intervened lately to control the economic slowdown caused by the spread of Coronavirus. The US Federal Reserve, European Central Bank, and Bank of England introduced stimulus packages, varying from swap lines to purchasing hundreds of billions of dollars in treasuries and lending rate cuts.

Negative interest rates have arrived in the US 6-month T-bill at -2bps, Mr. Tapiero noted. [It] means you need to PAY US govt for 6mo cash deposit. Rates to go much more negative to weaken the dollar. This is confiscation and it is bad but it needed for now to stabilize the system.

[It is] mega-bullish for Bitcoin, he added.

Bitcoins jump closely followed similar upside moves in the financial market. The latest central banks action helped global stocks, oil, bonds, and gold recover, but thinktanks feared that these markets have not bottomed-out yet.

Chris Turner, global head of markets at ING, told FT that market outlook remains uncertain with a clear bias to the downside, taking cues from the unknown extent to which Coronavirus pandemic can spread. The virus has infected more than 200,000 people across the world and has killed about 10,000 others.

The uncertainty has left bitcoin in a similar situation. Teddy Cleps, a prominent crypto trader and analyst, said Friday that buying cryptocurrencies is not peoples priority during a pandemic, adding that bitcoin could fall despite logging attractive gains.

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Top Analyst Explains Why Bitcoin Price is Up 78% amid Coronavirus Outbreak - newsBTC

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