Tuesday, June 12, 2018

Daily Coin Update - Wednesday, June 13th 2018

Daily Coin Update

Wednesday, June 13th 2018

Coin Value 24h Change 24h Volume Mkt Cap
(BTC) Bitcoin $6,580.85 -4.31% $5b $112b
(ETH) Ethereum $499.86 -6.11% $2b $50b
(BCC) BitConnect $0.4988 -1.26% $662 $5m
(XMR) Monero $125.48 -7.41% $35m $2b
(DASH) Dash $260.39 -3.37% $74m $2b
(XRP) Ripple $0.5589 -5.76% $292m $22b
(NEO) NEO $41.48 -8.97% $73m $3b
Missing something? Comments? Suggestions? Email me at ohad@ohadron.com

Please update your Parity Nodes to 1.10.6 or 1.11.3. Other versions have security vulnerabilities.

Update your parity nodes if you are not running 1.10.6 or 1.11.3.

Hi ,

Parity released a fix last week for an issue where consensus was not maintained and created a security issue. If you are running parity nodes please update immediately to one of the below versions: https://github.com/paritytech/parity/releases/tag/v1.10.6
https://github.com/paritytech/parity/releases/tag/v1.11.3

Note: All parity-supported chains are affected. ETC, ETH, and all others. If you run nodes for multiple chains then you must update all of them.
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#62: The forces behind Bitcoin's decline; disappearing central bank-backed crypto-coins

Whale watching
MIT Technology Review
Chain
Letter
Blockchains, cryptocurrencies, and why they matter
06.12: Whale watching

Welcome to Chain Letter! Great to have you. Here’s what’s new in the world of blockchains and cryptocurrencies.

​Bitcoin’s “liquidity event.” The price of Bitcoin took a beating over the weekend, and some media outlets seemed to attribute the big selloff to yet another exchange hack—this time, intruders stole nearly $40 million worth of digital coins from the Korean trading platform Coinrail. Whatever the proximate cause, it’s only part of a larger decline: Bitcoin is off more than 30 percent since it hit $9,800 on May 5, and more than 60 percent percent since it’s mid-December high of over $19,000.

Philip Gradwell, chief economist for the blockchain analytics firm Chainalysis, thinks he knows one reason for the downturn: Bitcoin’s “liquidity event.” According to Chainalysis, long-term Bitcoin holders sold at least $30 billion worth to speculators between December and April. Gradwell told the Financial Times that the 60 percent increase in the number of bitcoins available for trading during that period has been a “fundamental driver” of the drop in price.

A whale of a market manipulation opportunity. Also according to Chainalysis, around 1,600 wallets hold roughly a third of all available bitcoins. That means trades from just a few people (like a handful of colluding “whales,” or individuals with large holdings) can heavily influence the price. Now the Wall Street Journal reports that government investigators have demanded that four cryptocurrency exchanges—Bitsamp, Coinbase, itBit, and Kraken—turn over “comprehensive trading data” to assist a probe into whether manipulation is distorting recently-launched Bitcoin futures markets, which rely on an index derived from the prices at the four exchanges. Whenever the government comes knocking in crypto world, you can bet someone’s going to put up a fight. This time it was Kraken’s CEO, Jesse Powell, who piped up first, telling the WSJ that the feds’ demands have exchanges like his “questioning the value and cost of their index participation.”

Why the Fed might mint disappearing coins: The US Federal Reserve ought to consider issuing its own digital currency. That’s according to a new op-ed by Sheila Blair, former chair of the Federal Deposit Insurance Corporation.  Such a currency, she says, could be as stable as fiat money and reduce the risk of financial crises. “Imagine we all held an interest-bearing FedCoin,” she writes. To combat inflation, the Fed could pay more interest to incentivize saving. During a recession, it could reduce the rates to spur people to spend their FedCoins. And if that didn’t fix things, the Fed could “issue special digital coins that would disappear, within a (certain time), if not spent on consumption,” writes Blair. That would be more effective than the tax and Social Security refunds given out during the Great Recession, she argues, since most people either saved that money or used it to pay debts. ​

Discover where tech, business, and culture converge.  

Join us at EmTech where you can gain access to the most innovative people and companies in the world. Purchase your tickets today. ​

Loose Change

Fill your pockets with these newsy tidbits.

Bitmain, the dominant maker of specialized Bitcoin mining chips, is considering an IPO. (Bloomberg)

Ethereum Classic spiked 25 percent on the news that it will be listed on Coinbase. (CoinDesk)

Vladimir Putin says Russia “cannot have its own cryptocurrency.” (ETHNews)

Wells Fargo will prohibit customers from using credit cards to buy cryptocurrency. (Bloomberg)

Bitcoin trading in Venezuela is skyrocketing in response to crippling inflation. (Quartz)

The transcript of a tense conference call involving 200 EOS developers reflects a chaotic scene as the network, which raised $4 billion via an ICO, struggles to launch. (WSJ $)

The Money Quote

It's a whales' election.”

—Steve Floyd of EOS Tribe, a candidate to be an EOS “block producer,” the equivalent of a miner. The new blockchain won’t go live until the network elects 21 block producers via a complicated voting process, and Floyd and others think one reason the election is taking longer than anticipated is that some of most influential token holders are waiting to see how others vote before deciding. (CoinDesk)

Mike Orcutt
We hope you enjoyed today's tour of what's new in the world of blockchains and cryptocurrencies. Send us some feedback, or follow me @mike_orcutt.
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Here are today's ten most important Bitcoin stories, efficiently ranked & summarized by smart humans, not algorithms:

$BTC (12:25 p.m. EST): $6,791.03 (0.53%) // 90-day high: $11,849.50 // 90-day low: $6,247.06/ / More

$BCH (12:25 p.m. EST): $917.69 (-0.71%) // 90-day high: $1,786.80// 90-day low: $608.37 // More

$ETH (12:26 p.m. EST): $526.42 (0.51%) // 90-day high: $831.65 // 90-day low: $365.43 // More

$LTC (12:26 p.m. EST): $105.68 (0.06%) // 90-day high: $251.03 // 90-day low: $111.31 // More

$XRP (12:26 p.m. EST): $0.57 (0.63%) // 90-day high: $1.20 // 90-day low: $0.47 // More

Here are the 10 most important stories about bitcoin and cryptocurrencies today

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1. Wells Fargo customers can no longer purchase bitcoin or other cryptocurrencies with one of the bank’s cards. A spokesperson for the bank confirmed the policy and added that Wells Fargo would “continue to evaluate the issue as the market evolves.” The bank said the ban is due to the volatility of cryptocurrencies, and is in line with the overall industry. Wells Fargo is a little behind competitors in banning bitcoin transactions. Bank of America, Citigroup, and JPMorgan Chase all banned cryptocurrency purchases on credit cards in February. –CBS NEWS

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2. Today’s investment was brought to you by the letter B. Sesame Ventures, the investment arm of Sesame Workshop (yes, the puppet people), has invested in a blockchain company. The venture firm does not look to turn a profit but instead promote innovative approaches to children’s education. For its latest project, the firm invested in Kano, makers of a simple do-it-yourself computer and coding kit for kids. Kano also has an educational platform that teaches users how to build games, websites, and even blockchain. -GIZMODO

Master of Puppets: Sesame invests in blockchain
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3. There is now more than 100 million ether in circulation. Ethereum has opted not to set an upper limit on its total coin supply, unlike bitcoin which is capped at 21 million. Ethereum co-founder Vitalik Buterin predicted in 2016 that the ether supply would not cross 100 million in the foreseeable future, but was obviously wrong in his predications. While some may cheer the milestone there is a fear in the ethereum community that if too many coins go into circulation the market could suffer massive inflation. –THE NEXT WEB

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4. Apple has instituted some stricter policies for cryptocurrency-related apps sold in its App Store. The tech giant has banned applications that use the iPhone’s chipset to mine digital currencies, and are only allowed on the phone if used when performing cloud-based mining. The App Store will also now prohibit any application that offers cryptocurrency as a reward for completing tasks, such as downloading other applications or posting to social networks. –BITCOIN.COM

Apple changes policy on crypto apps
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5. 94 of the top 100 blockchain projects have launched on top of the ethereum network, a researcher says. Kevin Rooke, a cryptocurrency researcher and YouTube personality said ethereum has more than 250,000 developers, a shockingly high number based on the relatively small cryptocurrency industry. That market dominance, though, may be beginning to change. In the past year, alternative blockchain protocols have emerged such as EOS, NEO, Cardano, and Qtum. -CCN

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6. There are two ways to invest in bitcoin. There is the old-fashioned way of purchasing coins on an exchange, and now the option to buy futures contracts. This article looks at the pros and cons of both. -CNBC

7. Noted cryptocurrency bull John McAfee told his more than 826,000 Twitter followers not to worry about bitcoin’s price drop. “It is an overreaction to the news that Bitstamp, Coinbase, itBit, and Kraken are being investigated for price manipulation. This will delay the bull market by no more than 30 days. Don’t buy into the fear. Buy the coins.” –GLOBAL COIN REPORT

8. Don’t be fooled by bitcoin’s resurgence after hitting two-month lows this past weekend. Any price gains will be short lived, believes one analyst. -COINDESK

9. Litecoin is in danger of falling below $100 per coin. Litecoin eclipsed $100 per coin last December during the peak of the cryptocurrency boom but has largely followed bitcoin’s decline this year. The numbers, at least in the immediate future, do not project a resurgence. -INVESTOPEDIA

10. Wikipedia founder Jimmy Wales talked blockchain at a recent summit. The big takeaway: “You can’t ban blockchain,” he said. “It’s math.” –COIN TELEGRAPH

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From the Forums

The crypto experience on Twitter is somehow getting worse.

Look at the median transaction fees of cryptocurrencies, not the average fee.

A Paris sandwich shop will take bitcoin but not credit cards.

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