bitcoin

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• Another bitcoin bull market is coming in 2019, says Fundstrat's Tom Lee - CNBC
• Data Showed Bitcoin Could Be Going Higher. Why Is The Price Flat? - Forbes
• Bitcoin (BTC) Set For $4,500 With Tether (USDT) Reserve Doubts - newsBTC
• Bitcoin Trades Flat While Altcoins Tease Bull Breakout - CoinDesk
• Bitcoin Could Drastically Reduce Its Energy Consumption With This Fix - Inverse

Another bitcoin bull market is coming in 2019, says Fundstrat's Tom Lee - CNBC Posted: 14 Mar 2019 12:26 PM PDT 2019 could mark the return of bitcoin, according to one bitcoin bull. The digital currency has had a difficult run since hitting its all-time high, sinking from its peak near $20,000 per coin in late 2017 to its current trading price of less than $4,000. The CME bitcoin futures curve is up nearly 6 percent year to date but has also fallen significantly from the 2017 peak. But Fundstrat Global Advisors strategist and known bitcoin bull Tom Lee — who in December valued bitcoin between $13,800 and $14,800 — says this year could bring about a comeback for the cryptocurrency, thanks to favorable macroeconomic trends. "I think 2019's a year about repair," Lee said Thursday on CNBC's "Futures Now." "We have a risk-on rally in global markets that's positive for bitcoin; it was a headwind last year. And the dollar isn't surging like it was last year. That's a headwind that's gone away." And while Lee also noticed that bitcoin's technical indicators are stabilizing, with the digital currency managing to hold above its 200-week moving average, his thesis centered on the bigger picture. "The real story is the fundamental one, that bitcoin's becoming quite useful," he said. "We've seen the launch of digital currencies by not only J.P. Morgan and Mizuho Bank, but also Facebook and some social media companies gearing up. And, of course, in places like Venezuela, where bitcoin's become very large and widely used, turmoil is causing adoption growth. So I think these are really setting up for a strong ... year." Increased awareness around cryptocurrencies may also bring them closer to becoming an official asset class, a shift that is already starting to take shape, Lee said. "Fidelity's launching digital custody. Bakkt is going to launch an exchange. We've already seen some high-profile endowments, and pension funds actually invest new money this year," he said. "So I think, as an asset class, it's still the earliest days, but I think it's too glib to dismiss the macro." For the near term, Lee told prospective buyers to keep an eye on the 200-day moving average. If bitcoin maintains its current trading price around $4,000, "it'll cross above its 200-day by August," which could help it regain the ground it lost during its price collapse in late 2018, Lee said. "I think the damage that needs to really be repaired is that collapse from $6,000 to $3,100, which came after the fork wars with Bitcoin Cash," he said. "I think it really undermined investor confidence in sort of the dynamics around the market, so I think that bitcoin's going to spend a lot of time below $6,000 sort of fixing itself." But that might not take too long, Lee said: "I think the outside window is five or six months before bitcoin starts to look technically like it's back in a bull market." Disclosure: There is a possibility that Tom Lee and/or Fundstrat will from time to time have long or short positions in, and buy or sell, the securities or derivatives referred to in his research.

Data Showed Bitcoin Could Be Going Higher. Why Is The Price Flat? - Forbes Posted: 14 Mar 2019 12:31 AM PDT Bitcoin has been trying hard to break the psychological $4,000 mark over recent months, repeatedly moving above the line only to fall back. The bitcoin price, down some 80% from its all-time high set almost a year and a half ago, has been stuck in a long-running bear market despite a raft of positive news and data that suggests bitcoin, along with the wider cryptocurrency market, could be about to make a major move. Now it appears the brief rally that saw bitcoin climb from around $3,100 in mid-December to almost $4,000 could be over. The bitcoin price has moved higher lately, although many investors and traders had been hoping for a stronger, longer rally.Getty The bitcoin bulls have been out in force over the last few weeks, making bold predictions about how high the bitcoin price could eventually go and jumping on news that the bitter crypto winter could be coming to an end. The bitcoin price, which began February at a little over $3,400 per bitcoin, added some 11% over the month, breaking its six-month losing streak. But the latest technical data now shows the long-term buying demand for bitcoin has deteriorated, which could mean selling pressure could increase—bitcoin's Moving Average Convergence Divergence indicator has been steadily falling since mid-February, Bloomberg first reported. "The entire industry is ripe to resume a path to lower prices," Bloomberg Intelligence analyst Mike McGlone wrote in a recent report. "Conditions are akin to November, just prior to the collapse. Prices are consolidating within narrowing ranges, with a few sharp bear-market rallies that appear fleeting." The bitcoin price could be set to resume its downward trend.CoinDesk The last bitcoin bull run, which saw the bitcoin price explode from under $1,000 per bitcoin at the beginning of the year to almost $20,000 by December 2017, resulted in a hangover that's seen bitcoin lost some 80% of its value. Some $400 billion in value has been wiped from the cryptocurrency market over the past 12 months as adoption stalls and banks put closely-watched plans to wade into bitcoin and cryptocurrencies on hold. "The question of mass adoption of cryptocurrencies is one that has been pondered by many industry advocates and certainly is not without its hurdles," said Mati Greenspan, senior market analyst at brokerage eToro in a note to clints. "Starbucks is planning to accept bitcoin through Bakkt by the end of the year. Birks Group in Canada has already started accepting bitcoin for Jewelry in some stores. Rakuten in Japan is also reportedly setting up an option for crypto payments that could go online soon."

Bitcoin (BTC) Set For $4,500 With Tether (USDT) Reserve Doubts - newsBTC Posted: 14 Mar 2019 11:00 AM PDT Bitcoin prices stable and bullishSuspicion around Tether reserves will likely benefit BitcoinParticipation levels low but could increase as demand picks upTether is making headlines thanks to their latest update touching on their reserves. While Bitcoin prices are unresponsive, it is likely that BTC will react as investors get edgy liquidating their USDT. Bitcoin Price AnalysisFundamentalsBy rolling a service with the express purpose of sheltering crypto traders during times of uncertainty, investors as well as traders expect better from Tether. On many occasions, the state of its liquidity has been questioned because it states that it is a stable coin pegged to fiat. However, what is worrisome is the latest beguiling update where the firm, while acting as a crypto haven, appears to be diversifying its reserves and acting like a trusted third party or a bank.In reality, the stable coin operates in a fragile ecosystem and drawing its value as an IOU or a debt. The assurance is just because every USDT holder can redeem each currency for a dollar or Euro.  Questions are now directed at Tether's ability as an issuing firm to redeem every coin in circulation for fiat. The situation has been made worse given the firm's association with banks with dubious and patch track records, the lack of bank audit and their association with BitFinex subpoenaed by the DoJ that they USDT to fraudulently drive crypto asset up during the last bull leg of late 2017.Candlestick ArrangementsWhenever there are concerns about Tether's operation and hard questions asked about USDT pegging, Bitcoin tends to benefit. Back in Oct 15 2018, prices spiked when it emerged that Tether had bank related troubles.At the time of press, Bitcoin (BTC) is dangling and ready to slide. It is immune to buyer's stimulation, and even with optimism around the future, liquidation is on. We are yet to record sharp drops that reflect losses of Feb 24 neither have seen spikes confirming bulls of Feb 18 and Mar 5.However, what is visible is a consolidation inside Mar 5 high low as prices trend above $3,500. From an effort versus results point of view, buyers have the upper hand.Even with this calmness, every dip is a buying opportunity for risk-off traders aiming at $4,500. On the other hand, liquidation below $3,500 cancels this projection as bears aim at $3,000 and $1,800.Technical IndicatorsOur analysis anchors on Mar 5 double bar bull reversal pattern. Complete with average volumes—7.6k– but holding recent high lows, any sharp gain or loss driving prices above $4,000 or $3,700 with high trade volumes above 10k of Mar 5 or 36k of Feb 24 confirms gains of Feb 18 or sell off of mid-Nov 2018.

Bitcoin Trades Flat While Altcoins Tease Bull Breakout - CoinDesk Posted: 14 Mar 2019 04:10 AM PDT View Bitcoin is lacking clear directional bias for a ninth straight day, neutralizing the bullish view put forward by a long-tailed doji candle created on Feb. 27. As a result, a return to levels below $3,700 cannot be ruled out. A UTC close above the March 9 high of $3,950 would revive the short-term bullish outlook and possibly yield a rally toward the recent high of $4,190. While a few alternative cryptocurrencies (altcoins) have recently witnessed a longer-term bull reversal, the altcoin market as a whole is yet to exit the bear market. That could be about to change, though, as there are growing signs of seller exhaustion. A bull breakout in the altcoin market would be confirmed if and when the overall altcoin market capitalization beats the long-term falling trendline resistance, currently at $64.28 billion. Bitcoin's struggle for direction continues amid growing signs of a bull reversal in alternative cryptocurrencies. The leading cryptocurrency by market value is trapped in the range of $3,800 to $3,900 for a ninth straight day, contradicting the quick move toward the recent high of $4,190 suggested by the long-tailed doji candle created on Feb. 27. The immediate outlook, therefore, is neutral. As of writing, the cryptocurrency is flatlined at $3,847 on Bitstamp, representing a 0.10 percent gain on a 24-hour basis. Further, BTC is reporting a meager 4 percent gain on a year-to-date (YTD) basis, as opposed to stellar gains in few altcoins. For instance, litecoin, the fourth largest cryptocurrency by market capitalization, is currently up 83.9 percent on a YTD basis. Binance coin (BNB) and holochain (HOT) are up at least 140 percent each, while EOS (EOS) and ontology (ONT) have gained 40 percent and 69 percent, respectively, according to OnChainFX. Meanwhile, both the BTC and USD pairs of LTC, BNB, Tron (TRX) and Maker (MKR) have found acceptance above their respective 200-day moving average (MA) – a widely followed barometer of bull/bear markets. As a result, speculation that the altcoin market has entered the bull market is gathering steam. However, while few alternative cryptocurrencies seem to have witnessed a bull reversal, the altcoin market as a whole is yet to violate the bearish trend, as seen in the chart below. Altcoin market cap On the weekly chart, the altcoin market capitalization (market cap) printed a higher low near $45 billion in early February, signaling bearish exhaustion. However, the trendline connecting January 2018 and April 2018 highs is still intact. A weekly close (Sunday, UTC) above $64.28 billion (trendline resistance) could be considered an early sign of longer-term bullish reversal. A bearish-to-bullish trend change, however, would be confirmed, if and when, the market cap jumps above $68.61 billion – a bearish lower high created on Dec. 24. Bitcoin's daily chart The week-long price consolidation in the range of $3,800-$3,900 seen in the above chart has weakened the bullish case put forward by the long-tailed doji candle created on Feb. 27. As a result, the 100-day MA support at $3,670 could again come into play. On the higher side, a UTC close above $3,950 is needed to revive the short-term bullish outlook. Disclosure: The author holds no cryptocurrency assets at the time of writing. Bitcoin image via Shutterstock; charts by Trading View

Bitcoin Could Drastically Reduce Its Energy Consumption With This Fix - Inverse Posted: 14 Mar 2019 08:11 AM PDT The bitcoin researcher behind a controversial study asserting that the cryptocurrency is killing the planet is back with a new paper. But this time, the researcher Alex de Vries tells Inverse, he's elaborating on his potential fix: By restructuring the way blockchain maintenance is incentivized, de Vries says the network that runs bitcoin can drastically reduce its energy consumption. In the new piece of commentary published Thursday in the journal Joule the researcher still criticized the world's largest cryptocurrency for using up renewable energy resources for processing transactions, potentially consuming nearly 62.3 terawatt-hours over the course of 2018 — more energy than used by the entire country of Switzerland. "Its energy consumption and electronic waste generation are certainly not negligible at the moment, and they will likely escalate quickly to even more extreme amounts if bitcoin manages to become widely used," de Vries, a blockchain specialist for PricewaterhouseCoopers, said in a statement. It's important to note that De Vries is not an uncontroversial figure in the bitcoin community. His methodology has been questioned before — one HackerNoon story dismissed reports of bitcoin destroying the environment as "garbage" partially due to its economic assumptions — but his proposed alternative for incentivizing blockchain management could almost certainly reduce bitcoin's energy consumption. With bitcoin miners turning to large-scale renewables to power their operations, and even Ethereum slowly making moves toward a more efficient alternative, bitcoin could benefit from de Vries' suggestion. "What I didn't do in my previous paper was [make] a proper comparison to the full traditional system, explore what this means in carbon output," de Vries tells Inverse. The paper claims that as the bitcoin network processed 81.4 million transactions last year, it consumes roughly 491 to 765 kilowatt-hours per transaction. The global banking industry, estimated to use 650 terawatt-hours per year, processed 482.6 billion non-cash transactions per year, meaning it only uses 0.4 kilowatt-hours per transaction. The problem stems from the underlying structure of bitcoin. It has no central servers and instead incentivizes people to pledge computer resources to help process transactions. Bitcoin "miners" set their machines to solve a computational problem to show "proof of work." If their block is accepted on the decentralized "blockchain," the miners get some bitcoin (currently 12.5 bitcoins) as a reward. De Vries claims that this system creates a race, as the network adjusts the difficulty to ensure a new block is still generated around every 10 minutes but miners keep adding more computing power to the network to increase their share of the total power and reap more rewards. It also means a constant drain on renewable energy resources, like the hydroelectricity in Sichuan that's home to 48 percent of bitcoin's mining capacity. The seasonal variations in hydro need to be balanced out by alternative sources, creating a demand for dirty energy. It gets worse. Assuming a best-case scenario that every miner is using the Antminer S9, which has the lowest weight per unit of computational power, the entire mining network weighs 16,442 tons. Following Koomey's law that says energy efficiency doubles every 1.5 years, de Vries claims this results in electronic waste of 10,948 tons per year as old miners grow obsolete. This means bitcoin creates 134.5 grams of e-waste per transaction, compared to Visa that produces around 0.0045 grams. Bitcoin's energy consumption, according to the Energy Consumption Index. Cryptocurrency fans may remember de Vries from a December 2017 analysis that went viral. As bitcoin was shooting in value to reach its record high of nearly $20,000, de Vries showed that its annual electricity consumption may outrank Serbia. The analysis, shared on Digiconomist and regularly updated, starts from the basis that nobody knows for sure which mining machines are active and how much energy they use. The index creates two estimates using different methods: looking at the total computational power on the network, and looking at the total mining reward available. De Vries derived the figure quoted in Thursday's paper from the latter methodology. "What I didn't do in my previous paper was [make] a proper comparison to the full traditional system, explore what this means in carbon output," de Vries tells Inverse. However, Digiconomist's methodology received strong criticism at the time. Jonathan Koomey, a Stanford University lecturer with experience in debunking energy consumption studies — and the creator of Koomey's law — told CNBC that bitcoin is a "tiny, tiny part of all data center electricity use," adding that using miner revenue to estimate energy consumption is "a completely unreliable way to do the analysis, and no credible energy analyst would ever do that." ASIC Bitcoin Miner at ATechRes in 2013. De Vries argues that his analysis looks at factors from a bottom-up approach to understand how many miners may go to waste, for example. He also argues that an economics-based model can still help predict future trends, and his previous analysis helped to show that energy consumption would continue to rise. "I'd say economics have therefore confirmed their value in this context," de Vries says. "The same economic model would now indicate that we shouldn't expect much growth for the next year unless the price shoots up again." As for where bitcoin goes from here? One solution could be the Lightning Network that processes transactions away from the blockchain. De Vries argues for a move away from "proof of work" to "proof of stake," which would involve miners instead proving that they hold a stake in the network, a system used by Dash and expected to be adopted by Ethereum. Its proponents argue that people that hold a stake in the network have an interest in maintaining its security, but others argue that centralizing control in the largest stakeholders could cause more issues. "I think [proof-of-work] is somewhat overrated in terms of what it pretends to offer," de Vries says, noting that proof-of-work-based Bitcoin Gold suffered a serious attack when a majority of the coin's processing power holders committed fraud, something proof of stake would discourage. Moving to a new method would require consensus from the bitcoin network. With the difficulties in convincing the network to adopt SegWit in August 2017, it could prove a major challenge. Read the paper's introduction below: In this paper, we find that the Bitcoin network, with an electrical energy footprint of 491.4 to 765.4kWh per transaction on average, is relatively much more energy-hungry than the traditional financial system. Even though it has been argued that renewable energy may help mitigate the environmental impact of this, we find that there exist fundamental challenges in uniting variable renewable energy production with the consistent demand of Bitcoin mining machines. Moreover, we find that the environmental impact of Bitcoin mining reaches beyond its energy use. Continuous increasing energy (cost) efficiency of newer iterations of mining devices ensures that older ones will inevitably be disposed on a regular basis. The resulting electronic waste generation could equal that of a small country like Luxembourg, with a staggering average footprint of four light bulbs worth of electronic waste per processed Bitcoin transaction. Bitcoin will therefore have to address its sustainability problem in another way. This may consist of replacing its mining mechanism with a greener alternative like Proof-of-Stake. The author of this story has a stake in bitcoin and Ethereum. Why Roger Ver Doesn't Care About the Crypto Price Slump

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