| August 14, 2018 | Read in Browser |
 QUOTE OF THE DAY  |
| "Your present circumstances don't determine where you can go; they merely determine where you start." - Nido Qubein |
Happy Tuesday! Bitcoin dominance is at a 2018 high right now around 54%. Do you think Bitcoin dominance will continue to go up? Answer below!
Yes, Bitcoin dominance will continue increasing
No, Bitcoin dominance will settle back down
Cheers,
Blockchain Brew Team
| MARKET |
| COIN | PRICE | 24H |
| | ||
| BTC | $6,167.927635 | -4.29% |
| | ||
| ETH | $268.17977 | -16.37% |
| | ||
| XRP | $0.266509 | -12.74% |
| | ||
| BCH | $500.309988 | -14.15% |
| | ||
| XLM | $0.216898 | -8.9% |
| | ||
*Information as of 9:30 AM EST
| MARKET |
Five Factors Providing Sell Pressure in the 2018 Crypto Market
It is no secret crypto prices have declined sharply since the end of 2017. Now, Jonathan Cheesman, a partner at Distributed Global, expresses his perspective on what is providing downward pressure on the crypto market.
1. MINING
- According to Cheesman, for a proof of work ecosystem, this is the most persistent downward pressure
- With miners reaping rewards daily across a multitude of coins, they have to sell well over 50% to cover costs in fiat
- In addition, mining adds new supply to the network thus causing controlled inflation and lowering the value of the tokens in the process
2. TAXES
- Cheesman expects that some tax payments made this spring were raised by crypto sales
- In addition, Cheesman believes the complication of crypto taxes could be a future deterrent for retail investors as well
3. EXCHANGES AND FEES
- As centralized exchanges like Binance reap in profits, it is reasonable that the exchange would be selling crypto profits made from fees to cover expenses first
- In addition, since exchange revenue and crypto prices are positively correlated, it is risky for an exchange to HODL all crypto so they likely sell a portion for fiat to hedge
4. ICOS
- When ICOs boomed in 2017 it caused a high demand for Ethereum and shot the price sky high
- Now, as many ICOs sell Ethereum for funding, it is causing sell pressure on the market
5. ALTCOINS
- The altcoin boom of 2017 caused tokens with no product or use case to have multibillion-dollar valuations
- In 2018, however, Cheesman believes investors are realizing these coins are worthless and have been providing massive sell pressure to liquidate their positions
Though Cheesman's list doesn't cover every factor and some are only assumptions, these sell pressures are important to think about.
| NEWS |
'Unhackable' Wallet Has Been Allegedly Breached by Researchers Who Meet Bounty Conditions
BITFI BOUNTY
- John McAfee has been promoting his new cryptocurrency hardware wallet, BitFi, as "unhackable"
- To prove it, BitFi has put out a bug bounty reward of $100,000 if hackers can penetrate the device and connect to BitFi's servers
- Earlier this month, a fifteen-year-old hacker announced on Twitter that he had hacked the device but BitFi had dismissed the claim after he didn't prove it and didn't want to accept the bounty
BitFi's CEO told CoinTelegraph about dismissing the alleged hack:
"The person claiming to have cracked the bounty has not come forward to prove it and has tweeted 5 min ago that he will not be pursuing the bounty because it’s not worth his time. [...] Yet he tweeted to the whole world this morning that he hacked into our wallet. I think it’s a disgrace for any human being to do such a thing but I will leave to you to judge."
NEW HACK
- According to The Next Web, a new set of hackers has now stepped forward to claim the BitFi bug bounty
- In this case, the hackers have allegedly satisfied all three conditions by modifying the device, connecting to BitFi servers, and sending sensitive data using the device
@cybergibbons, a hacker that was part of the research group, announced the proof of the hack on Twitter:
AWAITING RESPONSE
- McAfee and BitFi have yet to respond to the newly announced hack but it is likely they are investigating the case
| ADOPTION |
China's Communist Party Authors: Blockchain – A Guide for Officials
A GUIDE FOR OFFICIALS
- China's Communist Party has published a book titled "Blockchain – A Guide for Officials" in hopes of educating government officials on blockchain technology
- The book covers the rise of blockchain and cryptocurrencies, along with current and potential use cases and challenges facing the technology
- This publication hints at the party's willingness to adopt blockchain technology
An excerpt from the book reads:
"The biggest impact of blockchain lies in its operation mechanism ... which seeks to achieve consensus as a way to govern a community. It offers us a brand new angle to think about and resolve different problems."
CHINA & CRYPTO
- China has had a very contentious relationship with crypto and currently has a blanket ban on all initial coin offerings and trading
- Although the government has a blanket ban in place, the country has been actively researching potential uses for blockchain
- A couple of months ago, China's president, acknowledged that blockchain is a breakthrough technology
| EDUCATION |
The Periodic Table of Cryptocurrencies
The cryptocurrency environment can be a confusing place because it is difficult to research, understand, and categorize all the different coins.
Now, thanks to investinblockchain.com, we have an easy overview of 118 different cryptocurrencies.
TABLE BREAKDOWN
The table is categorized into 9 different categories by color coding:
- Currencies
- Protocols, Exchanges, and Interoperability
- Computing, Data Management, and Cloud Services
- Platforms
- Gaming, Media, and Social Networking Platforms
- Privacy Coins
- FinTech
- Business/Enterprise
- Others
With many coins overlapping categories, Invest in Blockchain chose the category they saw most fit. In the case of a miscategorization, Invest in Blockchain mentioned they are willing to take feedback.
| MORE BREWING |
- US Federal Court Denies Motion to Remand Against Ripple
- Hong Kong University Receives $20 Mln Research Grant for Payment Systems, Blockchain
- Jamaica Stock Exchange to Trade Crypto Assets in 2018
| TODAY IN CRYPTO |
Today in Crypto is powered by coinmarketcal.com
| COIN OF THE DAY |
 |
| Jibrel Network (JNT) |
|---|
| The Jibrel Network provides currencies, equities, commodities and other financial assets and instruments as standard ERC-20 tokens on the Ethereum blockchain. |
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