Tim Draper Predicts Crypto Will Rule, Only Criminals Will Use Cash in Five Years

Tim Draper Predicts Crypto Will Rule, Only Criminals Will Use Cash in Five Years

Billionaire investor and known Bitcoin (BTC) bull Tim Draper argued that in five years, only criminals will use fiat as crypto becomes universally widespread. Draper made his claims in an interview with American financial news tv channel Fox Business released on Feb. 18. Reiterating his previous statements predicting that fiat money will become laughable and obsolete in five years, Draper has elaborated on his forecast, stating that nobody but criminals will keep using cash, since criminals who use crypto can be tracked via blockchain. He said: “The criminals will still want to operate with cash, because they catch everybody who is trying to use Bitcoin.” In August 2018, an agent of the United States Drug Enforcement Administration (DEA) noted that she prefers people to keep using cryptocurrencies, as the blockchain provides tool to identify criminals. In the interview, Draper also said that he believes his money in the bank to be less secure than his money in Bitcoin. “My bank is constantly under a hack attack,” Draper has stated, adding that to date, nobody has managed to hack Bitcoin’s blockchain. Claiming that his Bitcoin is more secure than a dollar is, the Bitcoin billionaire has compared cashing out from Bitcoin with exchanging gold into shells, arguing that there is no sense to go back in time as the future is about Bitcoin and other cryptocurrencies. When asked how much crypto he holds, Draper provided a short response: “a lot.” Draper’s recent statement has echoed the stance of young Bitcoin millionaire Jeremy Gardner, who said that the existing financial system is much more culpable for things like terrorism and crimes than blockchain technology perhaps will ever be. In November last year, Tim Draper reaffirmed his April 2018 Bitcoin prediction that the biggest cryptocurrency will trade as high as $250,000 per coin by 2022. Meanwhile, Bitcoin has seen significant growth recently, having jumped around 7.6 percent over the day and trading at $3,907 at press time, according to CoinMarketCap.

Bullish Sentiment for Bitcoin As Long Bets Near 11-Month Highs

Bullish Sentiment for Bitcoin As Long Bets Near 11-Month Highs

Bullish bets on bitcoin, the world’s largest cryptocurrency by value, reached 11-month highs on Monday, according to the data from the cryptocurrency exchange Bitfinex. The number of long positions on bitcoin’s US dollar-denominated exchange rate (BTC/USD) jumped to 38,237 BTC at 04:10 BTC – the highest level since March 30, 2018 – and were last seen at 36,176 BTC. While long positions have risen by 35 percent in the last three weeks, short positions have remained largely unchanged. As a result, the long-short ratio, a barometer of market sentiment, has improved to 1.5 from 1.18. The market mood has indeed turned bullish but hasn’t reached extremes, as long positions are still at least 8 percent short of the record high of 40,193 registered on March 26, 2018. That said, BTC’s rally to 5.5-week highs above $3,900 has likely opened the doors to a convincing move above $4,000. That would only attract buyers, pushing BTC/USD longs to fresh record highs. As of writing, BTC is changing hands at $3,912 on Bitfinex, the highest level since Jan. 10. The cryptocurrency would become vulnerable to “long squeeze” –  a sudden pullback in prices due to an unwinding of long positions – if and when the bullish sentiment reaches extremes. Disclosure: The author holds no cryptocurrency assets at the time of writing. Bitcoin image via Shutterstock; charts by Trading View

Will Crypto Torch Jamie Dimon?

Will Crypto Torch Jamie Dimon?

Michael J. Casey is the chairman of CoinDesk’s advisory board and a senior advisor for blockchain research at MIT’s Digital Currency Initiative. The following article originally appeared in CoinDesk Weekly, a custom-curated newsletter delivered every Sunday exclusively to our subscribers. ___________ Will the crypto community torch Jamie Dimon? Now, before I get “deep-stated” off social media, I need to clarify that I am most definitely speaking metaphorically here. Actual violence is never an option, kids. I am referring to twin occurrences in the world of blockchain technology that offer competing visions of how it will develop. The first was the widely reported news that that JPMorgan, whose CEO is the notoriously anti-bitcoin Dimon, will issue a JPM-branded digital currency, managed by its own permissioned distributed ledger, for use by its large-scale corporate and institutional clients operating within the bank’s $6 trillion daily wholesale payments operations. The second was the growing interest within the crypto community around the Lightning Torch, an experiment launched on January 19 that’s revealing aspects of both the technical and social functionality of the nascent Lightning network. As communicated over Twitter using the hashtag #LNTrustChain, users who receive the torch’s growing pool of bitcoin are asked to add 10,000 satoshis (0.0001 BTC, or approximately 35 cents) and pass it onto someone who they trust will send the torch to someone else. After 199 hops and only a few snafus, the torch on Friday afternoon was still alive in the hands of Meltem Demirors, Chief Strategy Officer at CoinShares, and it contained 3.35 million satoshis. Once the total reaches a hard limit of 4.39 million satoshis, or around $156, the community has resolved to donate the funds to a charity. A tale of two ‘crypto’ projects There you have it: One centrally managed, corporate initiative to improve global transfers for a business that moves the equivalent of almost a third of U.S. GDP every day, and a second, separate project that’s led by a decentralized community, and which, after almost a month, is yet to reach its top value of $156. Naturally, what JPMorgan is doing is getting more attention in the mainstream press, not just because of the sums involved but also because the apparent disjuncture between Dimon’s disdain for bitcoin and the…

Iota Foundation Partners With Incubator Nova to Fund Startups Using Blockchain

Iota Foundation Partners With Incubator Nova to Fund Startups Using Blockchain

The Iota Foundation, the company behind the cryptocurrency Iota (MIOTA), announced its partnership with startup incubator Nova through a press release shared with Cointelegraph on Feb. 18. According to the release, the partnership aims to fund new startups employing Iota’s platform through the “Iota Cofoundery” program on Nova’s website, which focuses on the early stages of startup development and seed funding. The program also grants the selected startups access to Nova’s mentoring program and tech startup team, reportedly consisting of over 20 startup consultants specialized in technology. Nova has reportedly co-founded over 80 technology startups to date, and more than half of those are still active after over three years. The press release claims that, on average, the three-year startup survival rate is 10 percent. As Cointelegraph reported in November last year, decentralized internet protocol Tron announced its plans to launch a blockchain fund. The fund, which is aimed at blockchain-enabled gaming, is dubbed Tron Arcade. In December 2018, Binance Labs, major crypto exchange Binance’s venture wing, released its first batch of blockchain projects from its Incubation Program. More recently, the incubator Ethereum Classic Labs has launched a new Ethereum Classic (ETC) development team, ETC Labs Core.

Most of 2017’s Leading Cryptocurrencies by Market Cap Have Crashed Out of the Top 15

Most of 2017’s Leading Cryptocurrencies by Market Cap Have Crashed Out of the Top 15

Many cryptocurrencies rose and fell during the 2017 bull market and subsequent year of bearish retracement. While the top four crypto assets by market cap have remained the same over the last two years, more than half of the leading markets as of Feb. 19, 2017 have since fallen from the top 15. Also Read: Markets Update: Cryptocurrencies Bullish Following Possible Higher Lows 2017’s Top 4 Markets Retain Their Ranking Today Despite the extreme volatility of the cryptocurrency markets over the last two years, the top four ranked by market cap has not changed. BTC has grown from a $16.5 billion market as of Feb. 19, 2017 to $65.29 billion today, with the price rising 252% from nearly $1,050 to $3,700 in 24 months. ETH recently reclaimed its rank as the second largest market by capitalization, with ethereum’s market cap rising from almost $1.14 billion to over $14.36 billion over the last two years. The price of a single ETH has risen 1,030% from $12.76 to roughly $144 on Feb. 18, 2019. XRP comprises the third largest crypto asset, with a market cap that has risen from nearly $218 million during Feb. 2017 to $12.69 billion today. Of the leading markets, ripple has generated the largest price gains, rising approximately 5,150% from $0.0059 to $0.31 in two years. A recent rally has seen LTC reclaim the fourth largest cryptocurrency capitalization, which has grown from roughly $187.6 million two years ago to $2.67 billion today. The price of litecoin has gained 1,100% from $3.76 to $45. Monero, Dash, and Ethereum Classic Fall From Top 10 As of Feb. 18, 2017, XMR comprised the fifth largest cryptocurrency with a market cap of $181.24 million, with a single monero trading for $12.99. Monero now comprises the 13th largest market with a capitalization of $818 million and has seen a two-year price gain of roughly 285%, with XMR currently trading for nearly $50 each. In two years, dash has fallen from sixth with a market cap of $160.34 million to rank 15th with a market cap of $697.44 million today. The price of dash has gained 266% from $22.55 on Feb. 19th, 2017, to $82.50 as of this writing. ETC was the seventh ranked cryptocurrency with a market cap of…

Indonesia’s Commodity Futures Regulator Releases Regulation for Crypto Futures Market

Indonesia’s Commodity Futures Regulator Releases Regulation for Crypto Futures Market

Indonesia’s commodity futures regulator has established a legal framework for operating crypto and digital assets futures markets, according to an official press release published on Feb. 18. The Indonesian Commodity Futures Trading Supervisory Agency (Bappebti), which operates under Indonesia’s Ministry of Trade, has officially required multiple entities involved in crypto futures trading to seek regulatory approval and apply for registration before legally operating in Indonesia. The news follows the recent release of legislation that officially recognizes Bitcoin (BTC) and other digital assets as trading commodities. The Bappebti first greenlighted crypto trading as a commodity on Indonesian stock exchanges back in June 2018. The new regulatory framework is based on a number of major rules for futures market operations, including regulation on the adoption of crypto as a tradable commodity on futures exchange markets, as well as technical provisions for placing crypto futures contracts on exchanges. The new rules require both futures exchanges and clearing houses that offer crypto futures trading to pay at least 1.5 trillion Indonesian rupiahs (IDR) or $106 million, as well as maintain a closing capital balance of at least 1.2 trillion IDR ($85 million), according to international law-focused media agency Lexology. The rules also affect crypto futures traders and storage service providers, requiring both to maintain at least 1 trillion IDR ($71 million) and a minimum closing balance of 800 billion IDR ($57 million) before they can become officially approved to trade crypto futures. The regulation demands crypto futures exchanges to ensure compliance with security policies, requiring at least three staff members to be acquire Certified Information System Security Professionals (CISSP) certification. The entities should undergo risk management procedures, including compliance with Anti-Money Laundering (AML) and combating terrorism financing policies. The new regulation was established in order to provide legal certainty around the crypto futures trading field, as well as to protect investors, as Head of Bappepti Indrasari Wisnu Wardhana stated, stressing that commodities futures trading intends to provide the ecosystem with support in the development of digital innovative business models. While the latest document confirms crypto as being an officially accepted tradable commodity on the futures market, Bitcoin still remains banned from being used as payment in Indonesia, following a ban imposed in 2017 by Indonesia’s central bank. According to…

You Can Now Send Bitcoin Tips Over Lightning on Twitter

You Can Now Send Bitcoin Tips Over Lightning on Twitter

When “liking” your favorite tweet isn’t enough, you can now send small bitcoin transactions. Announced Saturday, the beta app Tippin has released a new Chrome Extension available to Google browser users. Over Twitter, app users can send bitcoin payments via the Lightning Network, considered a way to make bitcoin transactions feasible at a large scale for the first time. With the extension enabled, a little lightning bolt symbol pops up inside every tweet next to the more familiar “like” and “retweet” buttons. Video from Tippin It builds off an old idea that small payments are one of bitcoin’s selling points. (Bitcoin app ChangeTip was once a popular way to send payments over social media, but it died out in 2016.) Tippin engineer Sergio Abril told CoinDesk: “In my opinion, tipping is going to be incredibly popular with lightning network; It’s the first time we can send small amounts almost at no cost, and we can do it incredibly fast.” All a user needs is a Twitter account and to install Tippin to receive tips. As such, Tippin hopes to capitalize on crypto Twitter power users to drive growth. “Tippin started as a personal side project a couple of months ago, so I could understand lightning network a bit more, and of course help push adoption, but it’s starting to get big,” Abril said. Abril has ideas for expanding the app into the future, including adding support on other social media platforms. Also, for now, the app is custodial, meaning users don’t have complete control over their funds, because, according to Abril, the app is much easier to use this way. But he has plans to look into non-custodial options as well. Abril added: “Of course, lightning network itself is still in beta, so we have time to make this happen until it’s fully ready.” Twitter image via Shutterstock

CFTC Commissioner Brian Quintenz Suggests Creation of Crypto Self-Regulatory Organization

CFTC Commissioner Brian Quintenz Suggests Creation of Crypto Self-Regulatory Organization

United States Commodity and Futures Trading Commission (CFTC) commissioner Brian Quintenz has suggested that participants in the cryptocurrency industry should create a self-regulatory structure. Quintenz made his remarks during a Bipartisan Policy Center panel held on Feb. 12. More precisely, Quintenz said that because of the CFTC’s lack of crypto statutory oversight capability, he suggested that crypto “platforms come together to form some type of self-regulatory structure where they can discuss, agree to, implement, and hopefully examine or audit.” According to Quintenz, such an organization could carry out audits concerning conflicts of interest, business conduct, insider trading, redemptions, custody and liquidity. Still, the CFTC commissioner also pointed out that “a self-regulatory organization is specifically chartered by Congress through the law,” while this would only be a mutual association of private companies participating in the industry. Securities and Exchange Commission (SEC) commissioner Hester Peirce, who was also a speaker at the panel, reiterated how confusing the current regulation of the crypto industry is. As well, Peirce pointed out that the lack of regulation of the Bitcoin (BTC) market is not a reason to disapprove an Bitcoin exchange-traded fund (ETF): “There are lots of markets that aren’t regulated, but we nevertheless build [derivative] products on top of them.” As Cointelegraph recently reported, Hester Peirce has recently said that the delay in establishing crypto regulation may allow more freedom for the industry to move on its own. Brian Quintenz, on the other hand, has recently argued against the SEC’s grounds for not approving a Bitcoin ETF.

Hodler’s Digest, Feb. 11–17: Top Stories, Price Movements, Quotes and FUD of the Week

Hodler’s Digest, Feb. 11–17: Top Stories, Price Movements, Quotes and FUD of the Week

Top Stories This Week Fundstrat Global Advisors Expects 2019 to Bring More Institutional Investors to Crypto According to a report on the 2019 crypto outlook released by New York-based research company Fundstrat Global Advisors, incremental improvements in the crypto space can provide support for higher prices for cryptocurrencies. The report notes that, as the United States dollar is expected to weaken and more institutional investors enter the space, a visible market recovery can be expected. Fundstrat states that the current year’s crypto hangover can be attributed to the waning interest in the initial coin offering (ICO) sector as well as adverse regulatory achievements. JPMorgan Chase Launches JPM Coin to Increase Settlement Efficiency in Three Operations U.S. banking giant JPMorgan Chase announced this week that it was planning to launch its own digital asset. After previous negative comments about cryptocurrency from the bank’s CEO, Jamie Dimon, the company has released information about its new JPM Coin, which is designed to increase settlement efficiency initially within three operations: international settlements by major corporations, treasury services and securities transactions. According to the head of JPM’s blockchain focus, only a small amount of the total funds involved will at first involve the JPM Coin at first. Crypto Miners and Investors Are Turning to Derivatives to Survive Crypto Winter A recent analysis by Bloomberg has found that crypto investors and miners are looking more and more toward derivatives like options as a way of surviving the recent market downturn. According to Bloomberg, the increasing popularity of complex traditional market trading instruments is a reflection of the difficulty of weathering the current bear market. Although official statistics are scare, Bloomberg notes that miners are now becoming one of the main sellers of a type of derivative similar to a covered call option. Coinbase Wallet Users Adds Support to Backup Encrypted Keys on Google Drive, iCloud Coinbase Wallet users will now be able to backup their private keys on Google Drive or iCloud. According to an official announcement, Coinbase Wallet users will be able to upload their keys to the cloud as a safeguard against lost keys, which then protects against losing funds in the case that keys are misplaced. The users can also store an encrypted copy of the recovery phrase on their cloud accounts, and…

Will the Crypto Community Torch Jamie Dimon?

Will the Crypto Community Torch Jamie Dimon?

Michael J. Casey is the chairman of CoinDesk’s advisory board and a senior advisor for blockchain research at MIT’s Digital Currency Initiative. The following article originally appeared in CoinDesk Weekly, a custom-curated newsletter delivered every Sunday exclusively to our subscribers. ___________ Will the crypto community torch Jamie Dimon? Now, before I get “deep-stated” off social media, I need to clarify that I am most definitely speaking metaphorically here. Actual violence is never an option, kids. I am referring to twin occurrences in the world of blockchain technology that offer competing visions of how it will develop. The first was the widely reported news that that JPMorgan, whose CEO is the notoriously anti-bitcoin Dimon, will issue a JPM-branded digital currency, managed by its own permissioned distributed ledger, for use by its large-scale corporate and institutional clients operating within the bank’s $6 trillion daily wholesale payments operations. The second was the growing interest within the crypto community around the Lightning Torch, an experiment launched on January 19 that’s revealing aspects of both the technical and social functionality of the nascent Lightning network. As communicated over Twitter using the hashtag #LNTrustChain, users who receive the torch’s growing pool of bitcoin are asked to add 10,000 satoshis (0.0001 BTC, or approximately 35 cents) and pass it onto someone who they trust will send the torch to someone else. After 199 hops and only a few snafus, the torch on Friday afternoon was still alive in the hands of Meltem Demirors, Chief Strategy Officer at CoinShares, and it contained 3.35 million satoshis. Once the total reaches a hard limit of 4.39 million satoshis, or around $156, the community has resolved to donate the funds to a charity. A tale of two ‘crypto’ projects There you have it: One centrally managed, corporate initiative to improve global transfers for a business that moves the equivalent of almost a third of U.S. GDP every day, and a second, separate project that’s led by a decentralized community, and which, after almost a month, is yet to reach its top value of $156. Naturally, what JPMorgan is doing is getting more attention in the mainstream press, not just because of the sums involved but also because the apparent disjuncture between Dimon’s disdain for bitcoin and the…