Thursday, November 15, 2018

Bears are Back 🐻

November 15, 2018

Breaking $6,000: A Look Back at Bitcoin Meltdowns

Yesterday, after months of stability, Bitcoin lost its $6,000 floor as it plunged to the lowest levels seen in the past year.

Despite a handful of theories, the majority of speculators were confused by the drop as there didn't seem to be any 'market moving' news.

The drop means Bitcoin has now lost over 70% of its value since its all-time high late last year.

Not the first time

For those that have been in crypto since its early days, a large Bitcoin slump is nothing new. Actually, the world's oldest cryptocurrency has seen a handful of comparable drops throughout its lifetime.

April 2013 Meltdown
In the spring of 2013, Bitcoin began receiving media coverage for the first time. As investors jumped on the train, the price drove up from $30 to over $260. However, the surprise bull run ended shortly in April when the price dropped 72% overnight. Following the crash, Bitcoin's price took more than 7 months to recover.

The 2013 Bubble
Towards the very end of 2013, Bitcoin went on a massive bull run. Dubbed the 2013 Bubble, Bitcoin reached all-time highs as the cryptocurrency breached $1,000. However, it didn't take long to retreat back to previous price levels and to make matters worse, Bitcoin didn't recover for another four years.

2017 Summer Selloff
Finally, when Bitcoin did blast above $1,000 in the summer of 2017, it jumped all the way to $3,000. However, mass hysteria about the Bitcoin Cash fork left investors worried and caused a 36% drop in less than a month. But, the rest of 2017 proved to be sweet for Bitcoin as it hit unprecedented levels.

Where to next?

Who knows. But if it means anything, we do know that Bitcoin has seen bear markets like 2018 before and has consistently proved to the world that it can continue to thrive.

The question then is, given Bitcoin's past, will this bear market end any different?

OPINION

IMF Chief Suggests Central Banks Should Issue Digital Currency

Central banks should play a role

Christine Lagarde, the Managing Director and Chairperson of the International Monetary Fund (IMF), recently delivered a speech in Singapore where she suggested that central banks should at least consider issuing a digital currency.

Lagarde's stance on cryptocurrencies represents a reversal of the IMF's previous view of the asset class. Earlier this year, the entity called cryptocurrencies a threat to the traditional financial system.

Crypto has its benefits

The IMF chief praises digital currency for some of its benefits in comparison to traditional paper currency. Some benefits that Lagarde sees are greater security and cheaper transactions.

Lagarde explains her thesis on the advantage of digital currencies:

"The advantage is clear. Your payment would be immediate, safe, cheap and potentially semi-anonymous… And central banks would retain a sure footing in payments."

Countries already going digital

In her speech, Lagarde referred to some countries that are already making progress in issuing a digital currency. The most notable examples include Sweden and Canada.

Lagarde emphasized that the IMF supports these countries in their implementation of a central digital currency and would recommend that other countries consider similar action.

SCAM

Official Google Account Used in Latest Twitter Crypto Scam

Can't trust the checkmark

On Tuesday, some Twitter users saw a promoted tweet from @gsuite, an official Google Twitter account that is verified. A hacker gained control of the Twitter account and attempted to use the account's prestige to conduct a cryptocurrency scam.

Google confirmed that the account was indeed hacked and a spokesperson said, "This morning an unauthorized promoted tweet was shared from the G Suite account. We removed the tweet and are investigating with Twitter now."

Twitter scams still around

Twitter has been long plagued by scammers offering free cryptocurrency giveaways. The company has recognized the problem and taken initiatives to solve it.

However, fraudsters are still finding ways to post their scams. They must be working if they are still trying to put them out there. Remember if it sounds too good to be true, it is.

BITS

But wait, there's more...

Binance adds new support for stablecoins as it announces listing of USDC.
Bitmain denies reports that CEO Jihan Wu has left the company's board.
A new report shows four fake cryptocurrency wallet apps are found on the Google Play store.

MEME