Mainstream Adoption: AT&T Now Accepts Bitcoin!

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Judging by recent news, the US telecom and media conglomerate AT&T now will be accepting Bitcoin! Customers will be able to pay for their phone bills online with Bitcoin! AT&T is the largest multichannel video service provider in the US. They have around a total of 22,3 million subscribers.

AT&T Expanding Services

While you cannot use Bitcoin to buy phones and other merchandise what AT&T offers to their clients, this is a very good head-up start for a company of such scale. Cryptocurrency enthusiasts now can pay with Bitcoin for their phone bills. This is done via a partnership with BitPay.

Kevin McDorman, vice president at AT&T, explained that AT&T has a lot of customers using cryptocurrencies. So the company decided to come forward to their clients and a rational step was to allow Bitcoin payments. He said:

“We’re always looking for ways to improve and expand our services. We have customers who use cryptocurrency, and we are happy we can offer them a way to pay their bills with the method they prefer.”

Kevin McDorman

Large companies start to acknowledge cryptocurrencies

This move from AT&T is just yet another step towards mass cryptocurrency adoption. This year, more than ever, there have been multiple companies that announce that they are working on ways how to use, develop or implement Bitcoin or cryptocurrencies as such on their services or platforms.

These companies include Facebook and JP Morgan with their stablecoin development, IBM and their blockchain implementations, Starbucks accepting crypto payments, Fidelity adding Bitcoin to their services, NYSE along with NASDAQ acknowledging Bitcoin, Harvard and Yale investing huge sums into Bitcoin, Microsoft using it in their Azure service, and many others at this point.

Today you can hear about Bitcoin in most of the traditional media platforms. CNBC now covers a daily segment about Bitcoin. They encourage investors to think about investing in BTC. The cryptocurrency lately is all around the news and each day brings new horizons development and implementation-wise. The bull is here to stay for quite a while. 

Source:

https://about.att.com/story/2019/att_bitpay.html
https://twitter.com/APompliano/status/1131270293689966593

Photo by Wojtek Witkowski on Unsplash

BREAKING: Binance HACKED!

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Yesterday, May 7, Binance, one of the largest cryptocurrency exchanges by trading volume, experienced a security breach. The exchange got hacked and the hackers got hold of approximately 7,070 BTC

Hackers Obtain User Data

Binance CEO Changpeng Zhao immediately did a report on Binance’s inside blog explaining that the hackers were able to obtain a large number of user API keys, 2FA codes, and other info. He stresses that hackers possibly used various techniques including phishing and virus attacks. Also, he claims that there might be several other techniques that hackers used in the hack. Moreover, there still might be additional user accounts that are affected.

It looks like the hackers used only one transaction in which they transferred the stolen 7,070 BTC. CZ says that the hackers only impacted their hot wallet storage which accounts for roughly 2% of the whole Binance BTC holdings. All other Binance’s wallets are safe and intact, says CZ.

Well-orchestrated actions and patience

CZ claims that the hackers had the patience to wait and execute “well-orchestrated actions through multiple independent accounts at the most opportune time”.

“The transaction is structured in a way that passed our existing security checks. It was unfortunate that we were not able to block this withdrawal before it was executed. Once executed, the withdrawal triggered various alarms in our system. We stopped all withdrawals immediately after that,” reads the report.

A few tweeters got hung up on the phrase “The transaction is structured in a way that passed our existing security checks…” speculating that this might be an inside job.

Binance will use the SAFU fund to cover losses

On July 3, 2018, Binance announced its Secure Asset Fund for Users (SAFU). Binance developed this in order to offer future protection of interests of all Binance users. Binance allocates 10% of all trading fees to this fund.

However, many industry professionals and projects which are related to Binance have shown support for Binance, by offering to pay the 7,070 BTC to Binance. For example, Justing Sun, the CEO of TRON, offered personally to deposit 7000 BTC on Binance to purchase BTC, BNB, TRX, and BTT. A few tweeters interpreted this as “openly admitting to market manipulation”.

Nevertheless, Binance will lock all deposits and withdrawals for a whole week. The reason being a thorough security review. CZ says that they have to go through their systems and data “which is large”. However, trading will still be live.

Suggestion to “rollback” Bitcoin

In the early hours of this incident, Jeremy Rubin (@JeremyRubin) suggested CZ to rollback Bitcoin, in order to recover the lost funds.

CZ did a livestream explaining everything what had happened and in this livestream he discussed the “rollback” option.

Udi Wertheimer in his Twitter profile conducted a thread where he explains why this is an outright nonsense.

He says that this would cost more than the actual hack and could potentially lead to more huge transactions at risk of being double-spent. Also, many other exchanges might be impacted and this could “hurt” the Bitcoin credibility. Wertheimer explains that a day of mining costs 1,800 BTC. Most importantly he said that “this is no Binance chain with CZ signing all the blocks”. By actually trying to rollback Bitcoin, many miners would be affected and the whole Bitcoin ecosystem in general. However, CZ from Binance dismissed this idea rather quickly.

BitMex Research Twitter profile posted a 2016 Reddit thread where a rollback was discussed when hackers stole around 120,000 BTC from Bitfinex. In this thread users comment on the potential negative consequences. 

Wertheimer also reminded that previously Binance had stated that holding assets on their exchange is as safe as being in possession of ones own keys. Now we see that this statement is ridiculous and you should never store your assets entirely on an exchange. Even “SAFU” won’t help. 

Source:

https://www.binance.com/en/support/articles/360028031711
https://www.binance.vision/glossary/secure-asset-fund-for-users

Photo by Flickr

Fidelity plans to offer crypto trading within “a few weeks”

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Judging by yesterday’s Bloomberg reports, Fidelity Investments is planning to offer the world’s most popular crypto asset to their institutional customers within a few weeks. 

What is Fidelity?

Fidelity Investments is a Boston-based American multinational financial service corporation. It is commonly referred to as one of the largest asset managers in the world with $2,46 trillion in assets under management. Also, their combined total customer asset value is around $6,7 trillion. Moreover, they operate a brokerage firm, provides fund distribution and investment advice, retirement services, wealth management, securities execution and clearance, and life insurance.

Plans to offer cryptocurrency trading to customers

In October 2018, Fidelity created “Fidelity Digital Assets” based on their belief that Wall Street will soon start trading and safeguarding digital assets. This has put them in front of their competitors as other firms hasn’t publicly shown any interest in digital currencies.

Now Fidelity would join brokerages like E*Trade Financial Corp. and Robinhood in order to offer crypto assets to their clients. However, Fidelity is targeting institutional customers not like Robinhood or E*Trade – retail investors. Fidelity backs their actions with their study which they released on May 2. It show that around 47% of institutional investors think that digital assets are worth investing in.

“We currently have a select set of clients we’re supporting on our platform. We will continue to roll out our services over the coming weeks and months based on our clients’ needs, jurisdictions, and other factors. Currently, our service offering is focused on Bitcoin,” says Fidelity spokeswoman Arlene Roberts.

Digital Gold – Bitcoin.

Bitcoin is up more than 50% this year, recovering from the 2017 bull run all-time-highs when it surged to around $20,000. Now the digital asset sits at $5,900 looking to touch one of the most important trend-lines at $6,300.

The question, that most Bitcoin investors after reading this news, would be – will this affect the price of Bitcoin? It is not quite clear whether Fidelity will open up a digital asset brokerage or sell these assets using the OTC (over the counter) method. One thing is for sure – institutional investors are eying cryptocurrencies, especially Bitcoin. Not long after, Fidelity’s competitors will also start looking into the crypto niche. This will drive user adoption and new money coming into crypto. Referring to Fidelity’s survey where they questioned 441 investors – 72% prefer to buy investment products that HOLD digital assets, while 57% prefer to buy them directly.

Source:

https://www.bloomberg.com/news/articles/2019-05-06/fidelity-said-to-offer-cryptocurrency-trading-within-a-few-weeks?srnd=cryptocurrencies
https://www.bloomberg.com/news/articles/2019-05-02/fidelity-survey-finds-institutional-investors-are-eyeing-crypto
https://en.wikipedia.org/wiki/Fidelity_Investments

Photo by Flickr.

Bitcoin Chart Analysis. UPTADE!

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An update on the Bitcoin chart analysis, since everyone is so bullish at the moment.BTC has currently formed a nice trading channel. As it might seem at first glance, price action upon resistance level seems to be weak due to low bounces. However, seeing the highlighted candle we see pretty aggressive wick which means that the selling power is still there.

The two most likely scenarios are as presented in the picture (insert might go up down or sideways meme here). To make a decent decision you must observe the volume and order book at current level upon reaching the resistance – possibly on lower timeframes. The most likely scenario for Bitcoin is the bearish one due to the fact that there is low volume. If Bitcoin price accumulates at the resistance that is a no go for short because that shows a weakening of the selling pressure. Otherwise, there is not a reason for being bullish. Bitcoin price made a lower low, and from a FA perspective, a new bull run is very unlikely.

BTC/USD hourly chart

It must be mentioned that trading these ranges can be very profitable. Combining S/R levels with RSI oversold/overbought areas are easy low-risk trades.

A new Lightning App developed an easy way how to receive Bitcoin!

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Yesterday, Pierre Rochard presented his new Lightning app. He developed an easier way for Lightning Network users to get inbound capacity in order to receive Bitcoin. The app will join other services which seek the same mission. Two of them are Bitrefill’s “Thor” and “Lightning Loop” from Lightning Labs. 

The problem

Nowadays the most common problem for LN transactions is that the receiver has to have sufficient funds in his LN channel in order to receive a payment. This makes it particularly difficult for new users to start receiving Bitcoin. Now with the new Lighting Power Users app, it will become easier for users to set up a short-lived channel. This is for users who want to accept a payment imminently for a smaller fee.

How to use it?

https://lightningpowerusers.com/home/

In his medium blog, Rochard elaborates on the few steps that a user has to go through in order to make his payment with the Lightning App. You have to go to the Lightning power users website and install Joule. Next, you need to enter your pubkey, if they are already connected with LN Power Users node, but if not, then you have to enter your pubkey@host:port. Then you have to select how much inbound capacity you would like to request. Again, if you are connected with their LN node, you will be granted an inbound capacity for three days for free, however, if you’re not connected, you want additional inbound capacity or you want it to last longer than three days, then they charge a “capacity fee”. Next, you select the chain fee rate.

“When blocks are full and the mempool (tx queue for entering blocks) is backed up, you can pay less and wait longer for the channel opening transaction,” says on the website. After that, just click on Pay with Joule and Confirm.

Decentralization is Rochard’s goal

Rochard refers to earlier days when users had to submit a Google Form which he would later use to manually set up a channel. Now with this new service, this automates the process.

“I think what I want to see is a large variety of ways to do this. If we rely on just LNBIG or other services, then bitcoin’s not as decentralized. So, that’s my goal. To provide a reliable service,”

says Rochard.

Additionally, Pierre thinks that in the future developers will figure out a way how to completely hide the inbound capacity step. He elaborates on one particular approach which would involve iterations on lightning’s autopilot feature, or just a newer computer science technique such as machine learning.

Source:

https://www.coindesk.com/this-new-lightning-app-aims-to-make-getting-paid-easier
https://lightningpowerusers.com/home/
https://medium.com/@pierre_rochard/how-to-request-inbound-capacity-from-lightning-power-users-605799214474

Photo by Philippe Donn from Pexels

Bitcoin Chart Technical Analysis. Thursday, April 4

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Today let’s analyze Bitcoin charts. Recently Bitcoin has gone +20% and there have been many speculations on why that happened. It remarkably grew by $1000 in a little more than an hour.
Bitcoin experienced yet the most significant rally this year. When Bitcoin went pass $5,200 we advised you all to be careful on our social media pages:

#Bitcoin goes past $5,200! We all know that those who were waiting for a bigger drop, now are biting their nails and…

Gepostet von bestcoininvestments.com am Mittwoch, 3. April 2019

But after a good run-up, now we are starting to have a minor correction. Higher timeframe still screams for a cooldown due to the fact that the RSI is still overbought. Lower timeframes are also oversold and just bounced off support on 1H charts which signals for a possible small upwards move for Bitcoin.

However, Bitcoin chart’s short timeframe trend seems to have reversed as shown by the H&S pattern. Although it is not perfectly symmetrical, it is an indication of a forming lower high which means – signals for a possible trend reversal!

What happened with Bitcoin? Is the bear market over?

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As we all have noticed by now, Bitcoin just had a break out from $4,1k to $4,8k in a matter of an hour. The crypto twitter is going crazy, everyone is asking for an explanation and almost everyone is super-bullish! At the moment, Bitcoin is +14% which is a view many of us haven’t seen for quite a while. Let’s look into this, what might’ve caused this, what to expect and what to do from this point on. 

Broke crucial resistance point at $4,200

As we reported earlier Bitcoin had only two possible scenarios left from that point on. Whether we plunge deeper in the bear market or have a bullish breakout of the $4,2k resistance point. As we can see, the second scenario has fulfilled. Some say that Bitcoin now will be testing $5,5k – $6k in the future. If we break that resistance we’re up for a bull market. If not, we’re plunging deeper into the bear. Possibilities of Bitcoin temporary testing new highs before diving back below $4k also are in the air. 

$500 million liquidated on BitMEX

As many call Bitcoin “very volatile” and some try to counter that accusation, today Bitcoin sure was volatile enough to liquidate $500 million on BitMEX alone. BitMEX is one of the most popular leveraging platforms for Bitcoin and many traders were shorting Bitcoin right and left in this bear market period. However, today’s price increase resulted in massive liquidation and BitMEX now sees almost $3 billion in volume which is 3x higher than yesterday. The price of Bitcoin even touched $5,129 at one point on BitMEX.

https://twitter.com/lawmaster/status/1112971889813741568

Fake News in the cover of April Fools

Another interesting assumption is that because of the many articles that were coming out on April Fools, trading bots algorithms started picking that up and started buying. For example, one of the news was a fake article about the SEC finally approving Bitcoin ETF. The other one was about Warren Buffet finally investing in Bitcoin. Of course, many say that such news cannot move the price of Bitcoin. Partly, I believe that statement, but when it comes to trading bots and algorithms, you can never know.

What to do now, and where is it heading?

Now is the time to find your own belief into what has happened. One thing is for sure, new money has come into crypto. Another thing is that we should see a small correction in Bitcoin’s price. The asset already has stabilized at $4,7k. If we see a correction, that could indicate a small alt-season, because people would want to take profits out of this Bitcoin rally, and that means putting them into alts. Some say that we could be testing out a new surge if $4,2 becomes the resistance.

Of course, the community is going nuts and everyone is super-bullish. People FOMO’ing left and right trying to squeeze that lemon as hard as they can. However, the feeling in the past weeks has been ever so optimistic and almost everyone is bullish. And as we know – it might as well be the opposite – once everyone is bullish on one thing – happens the other which no one anticipated. 

Send Bitcoin Using WhatsApp?

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Just recently Wuabit announced that soon WhatsApp users will be able to send Bitcoin via chatting. Wuabit is a cryptocurrency wallet and they have developed a new “software agent” which is powered by a specialized AI. 

Bringing Bitcoin to millions of users

It is a well-known fact that WhatsApp is one of the biggest messaging applications in the world. With the help of Wuabit’s claim to integrate their services within the messaging app, millions of users will have the ability to transact Bitcoin, just by using WhatsApp. That would be a huge push towards mainstream adoption for Bitcoin. The simple reason being that a lot of people really lack the technical side of cryptocurrencies. They would love to participate but are doubting their ability to understand the technology. With the help of this new feature, they won’t have to do a thing. Wuabit also says that other cryptocurrencies will be available for transacting, for example, Dash, Ethereum, Bitcoin Cash, Bitcoin SV, and Litecoin.

“We are near completing the wallet core service starting with BTC. By using WhatsApp/SMS/Telegram you can access that wallet easily. Crypto payments via WhatsApp can introduce greater numbers of new users who only know how to chat to this complicated space. Usability is key in user adoption and a great enabler.”

Send Bitcoin just by typing!

Wuabit claims that sending Bitcoin via WhatsApp will be as easy as chatting. All users will have to do is to type in a few command lines like “balance” and within the chat, it will show up your balance in the wallet in the form of a regular message. If you would want to send BTC to somebody, you would type in “Send 0.01 BTC to Kate”. Of course, that is if you actually have a contact named Kate in your application. Then a response message will pop up saying “Ready to send 0.01 BTC to Kate, ok?” to which you reply “Ok!” and the transaction!

Image taken from: https://wuabit.com

Similar projects

LiteIM provides a similar service. Zulu Republic, a Swiss Based crypto company, is the company behind LiteIM. Both companies share plans on delivering this service to all social media platforms, instead of creating their own. LiteIM has no control over users private keys. The user has full control over his assets. Currently, they support Telegram and Facebook Messenger apps and have announced that WhatsApp will be coming soon. With LiteIM, initially, you could send only Litecoin. But now after a few months, they have integrated Bitcoin, Ethereum and Zulu Republic Token ZTX.

Screenshot from Facebook Messenger

While LiteIM is already up and running, Wuabit claims that their services “are near completion” to present it for the public. That means that after a month or so, we will be able to try out the new service.

Mass-adoption incoming?

Will it trigger mass-adoption? That’s a tricky question as, first of all, not many people know about cryptocurrencies. And eventually, this job “to spread the word” would be up for the crypto supporters. We would have to send crypto to people who don’t know or don’t have any. And this is the problem with which we encountered. Respectively, if the other person, who you want to send crypto hasn’t registered on LiteIM, then before you can successfully transact between each other, he needs to register first. We believe that this puts a huge stop sign for the mass-adoption as many people stop using the app at that point. Especially, if you want to send crypto to a person who doesn’t know anything about this. The send function should come with an invitation link, where the receiver could easily sign up and claim the crypto that has been sent to his account! 

However, looking from the accessibility aspect of this issue – of course, this brings massive advantages. People who lack the technical side of crypto will be able to engage with crypto with ease. However, LiteIM also predicted a faster mass-adoption, Let’s see how this escalates. 

Source:

https://www.express.co.uk/finance/city/1104940/bitcoin-news-whatsapp-wallet-Wuabit-cryptocurrency-crv
https://wuabit.com

Photo by Pexels.com

How to Short Bitcoin? A Beginners Guide

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In this article, we will overlook how to short Bitcoin. Most beginner traders think that you can only profit from cryptocurrency price increasing. The basic belief is that if Coin A goes up in price – you profit, but if coin goes down – you lose money. However, this is a very common misconception between underdeveloped financial instrument traders such as altcoin pairs in small exchanges or just inexperienced traders. This brief guide will teach you what is shorting and how you can short Bitcoin.

What is shorting?

The definition of shorting is borrowing any asset or security and selling it with a belief to later sell it for a lower price and after giving back the security keeping the sell-buy price difference. In the essence one is shorting if he believes that the price is going to go down, however, shorting can be used as a tool for hedging. Usually for borrowing assets from a broker for shorting you need to pay some interest, however, some brokers offer a shorting interest free marking it up in trading fees.

Example of shorting

John is grocery shopping at his local market and sees that bag of apples costs 100 USD. John thinks that the price is far from the real value of the bag. He goes to his friend`s house and borrows a bag of apples. Then he goes back to the market and sells his bag. A week later, he comes back to the market and sees that apples now cost 80 USD per bag. He buys a bag for 80 USD brings it back to his friend’s house. The total outcome of this is that John has earned 20 USD due to the fact that he sold the bag for 100 USD and bought it back for 80 which leaves him with 20 USD difference.

You can short Bitcoin on following exchanges

How to short Bitcoin on BitMEX

Lets image that you want to short Bitcoin. The steps that you need to take are as following:

  • Log in or create your own BitMEX account
  • Select your order type: Limit order will let you set exact buying/selling price, market order will execute trade at current market price, Stop market will place a stop-loss at market price when price reaches your target,  Stop limit will do a limit order with stop-loss, Trailing stop will execute order with set price limit from a floating point, take profit-limit will set an opposite order of your current position at your chosen price and amount, Take profit-market will place an opposite order of your current position at certain point and amount within market price.
  • Place your order and you are good to go! Remember to always adjust your margin.

Disclaimer: Always trade with cautions. This guide is for educational purposes only and is not financial advice. Any content displayed is not encouragement for any specific financial decisions e.g. shorting Bitcoin.

Bitcoin Market Analysis, Tuesday, March 12, 2019.

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Today we look at the Bitcoin market analysis. Currently, Bitcoin is heading towards historical resistance level that caused some of the largest price drops during the current bear market. From the macro market perspective, there are two very likely scenarios and one not so much.

  1. Bullish scenario – We break the resistance and head towards the previous accumulation zone (Highlighted blue box with green arrow). To break this resistance we need high buying volume which in the current market state is highly unlikely. However, there are factors that might act as a catalysator for bullish move initiation (See further text). If the accumulation zone is broken, afterward the bull market is most likely to be ignited. This is a really unlikely event.
  2. Bearish scenario – Heading towards resistance will most likely trigger fast 1-2 candle drop to previous historical accumulation zone. We cannot know how the price will react to further levels. Because there is no historical data that supports any predictions in such market conditions regarding volume and exposure.
  3. Accumulation scenario –  This scenario is the most unlikely one because the resistance line historically has proven to cause rapid movements. Going sideways through resistance like this on such a high timeframe is the most unlikely event. The only viable option would be a small breakout that leads to a retest of the resistance and results in accumulation.

Overall market state: Bullish 30% / Bearish 60% / Sideways 10%

A catalyst for a bullish scenario is recently widely seen bitcoin halving. Halving basically means inflation decrease. Bitcoin block reward will decrease, meaning that less bitcoins are emitting every day which results in a price increase. Closer the halving gets, historically, the more market shifts to a bullish sentiment. Right now we are at the proportional historical point where time until halving/bitcoin price makes a reversal move.