Daily Archives: June 19, 2022

Cryptocurrency ‘Not Sufficiently Stable to Be a Good Means of Payment’ – Regulation Bitcoin News

Cryptocurrency ‘Not Sufficiently Stable to Be a Good Means of Payment’ – Regulation Bitcoin News

The governor of the Jamaican central bank has warned people using or who have plans to use cryptocurrencies to be mindful of the associated risks. The governor added that cryptocurrencies’ unpredictability means they cannot function as a medium of exchange.

Not Stable Enough to Be Good Means of Payment

The governor of the Bank of Jamaica, Richard Byles, has cautioned those using or planning to use cryptocurrencies to be mindful of the unpredictable nature of the assets. Byles also said he considers cryptocurrency an investment instrument rather than a medium of exchange because its value is “not sufficiently stable to be a good means of payment.”

In remarks published by Jamaica Information Service (JIS), Byles, who spoke at a digital and cryptocurrency conference, said the Jamaican central bank takes time to warn people about the volatility of privately issued digital currencies. He also said his institution does not see crypto as a good means of settling transactions. He added:

So, if you’re, hopefully, a sophisticated investor [who] can understand cryptocurrency, go ahead and use it. But we don’t see it as a currency that is good for transactions and for making payments.

Central Bank to Issue More Cautionary Statements

According to the governor, the Jamaican central bank only backs its central bank digital currency (CBDC). He also emphasized that, unlike cryptocurrencies whose value can either go up or down, “a dollar that you have in your pocket today is the dollar that you have in your pocket tomorrow.”

As previously reported by Bitcoin.com News, the Bank of Jamaica announced on December 31, 2021, that it completed testing of its CBDC. Following the completion of this phase, the bank is now spearheading the implementation of Jamaica’s CBDC, the JIS report said.

Meanwhile, Mario Griffiths, the bank’s director for payment systems and policy, is quoted in the same report stating that the Bank of Jamaica plans to continue issuing cautionary statements that warn people of the risks that are associated with cryptocurrencies.

What are your thoughts on this story? Let us know your thoughts in the comments section below.

Terence Zimwara

Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.

Image Credits: Shutterstock, Pixabay, Wiki Commons, Shutterstock / Craig F Scott

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

(function(d, s, id) {
var js, fjs = d.getElementsByTagName(s)[0];
if (d.getElementById(id)) return;
js = d.createElement(s); js.id = id;
js.src=”
fjs.parentNode.insertBefore(js, fjs);
}(document, ‘script’, ‘facebook-jssdk’));



Source link

5 indicators traders can use to know when a crypto bear market is ending

5 indicators traders can use to know when a crypto bear market is ending

The bull market is gone and the reality of a long crypto winter is surely giving traders a bad case of the shivers. Bitcoin’s (BTC) price has fallen to lows not even the bears expected, and some investors are likely scratching their heads and wondering how BTC will come back from this epic decline. 

Prices are dropping daily, and the current question on everyone’s mind is: “when will the market bottom and how long will the bear market last?”

While it’s impossible to predict when the bear market will end, studying previous downtrends provides some insight into when the phase is coming to a close.

Here’s a look at five indicators that traders use to help know when a crypto winter is coming to a close.

The crypto industry begins to recover

One of the classic signs that a crypto winter has set in is widespread layoffs across the crypto ecosystem as companies look to trim expenses to survive the lean times ahead.

News headlines throughout 2018 and 2019 were filled with layoff announcements from major industry players, including technology companies like ConsenSys and Bitmain, as well as crypto exchanges like Huobi and Coinfloor.

The recent rash of layoff announcements such as the 18% reduction in staff for Coinbase and a 10% cut at Gemini are concerning, and given that the current bear market just started, layoffs are likely to crescendo. This means that it’s probably too early to refer to this metric as proof that the bear market is in decline.

A good sign that a crypto spring is approaching is when companies begin to hire again and new projects launch with notable funding announcements. These are indications that funds are beginning to flow back into the ecosystem and the worst of the bear market is in the past.

Watch to see if Bitcoin’s 200 week SMA becomes resistance or support

A technical development that has signaled the end of a bearish period multiple times in Bitcoin’s history is when the price falls below the 200-week simple moving average (SMA) and then climbs back above it.

BTC/USD 1-week chart. Source: Twitter

As shown in the areas highlighted by purple arrows on the chart above, previous instances where the price of BTC dipped below the 200-week SMA, the light blue line, and then climbed back above the metric preceded uptrends in the market.

A solid BTC price recovery back above the realized price, which is the aggregate purchase price of all Bitcoin and is represented by the green line in the chart above, can also be used as an added confirmation that the market trend may be turning positive as well.

The RSI is king at calling bottoms

Another technical indicator that can offer insight into when the lows of a bear market may be in is the relative strength index (RSI).

More specifically, previous bear markets have seen the Bitcoin RSI drop into oversold territory and fall below a score of 16 around the time that BTC established a low.

BTC/USDT 1-day chart. Source: TradingView

Based on the two instances highlighted above with orange circles, the confirmation that the low is in doesn’t come until the RSI climbs back above 70 into overbought territory, signaling that an increase in demand has once again returned to the market.

Market value to realized value

The market value to realized value (MVRV) Z-score is a metric that is designed to “identify periods where Bitcoin is extremely over or undervalued relative to its ‘fair value.’”

MVRV Z-score. Source: LookIntoBitcoin

The blue line on the chart above represents the current market value of Bitcoin, the orange line represents the realized price and the red line represents the Z-score which is a “standard deviation test that pulls out the extremes in the data between market value and realized value.”

As seen on the chart, previous bear markets coincided with a Z-score below 0.1, which is highlighted by the green box at the bottom. The start of a new uptrend wasn’t confirmed until the metric climbed back above a score of 0.1.

Based on the historical performance, this metric suggests that there could still be more downside in the near future for Bitcoin, followed by an extended period of sideways price action.

Related: Three Arrows Capital weighs bailout as Kyle Davies breaks silence: Report

2-year moving average multiplier

A final metric that can offer a simplified way for Bitcoin investors to know when the bear market is over is the 2-year moving average multiplier. This metric tracks the 2-year moving average and a 5x multiplication of the 2-year moving average (MA) with Bitcoin’s price.

Bitcoin Investor Tool: 2-Year MA Multiplier. Source: LookIntoBitcoin

Anytime the price of BTC fell below the 2-year MA, the market entered bear market territory. Once the price climbed back above the 2-year MA, an uptrend would ensue.

On the flip side, the price climbing above the 2-year MA x5 line signaled a full-on bull market and presented an opportune time to take profits.

Traders can use this metric as a signal of when it might be a good time for accumulation, as highlighted by the green shaded areas, or they can wait until the price of BTC clears the 2-year as a signal that the bear market is over.

Whichever way a trader chooses to apply the indicators outlined above, it’s important to remember that no indicator is perfect and there is always a risk of more downside.

Want more information about trading and investing in crypto markets?

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.



Source link

Mad Money’s Jim Cramer Expects Bitcoin to Fall to $12,000 – Bitcoin News

Mad Money’s Jim Cramer Expects Bitcoin to Fall to $12,000 – Bitcoin News

The host of Mad Money, Jim Cramer, has predicted that bitcoin’s price will fall to $12,000. Nonetheless, he has recommended bitcoin and ether for people wanting to invest in crypto.

Jim Cramer’s Bitcoin Price Prediction

Jim Cramer, the host of Mad Money, talked about the future outlook for bitcoin on CNBC Friday. Cramer is a former hedge fund manager who co-founded Thestreet.com, a financial news and literacy website.

He was asked whether he thinks bitcoin is going to bounce from the current level, or whether BTC will go down another 50% or more.

Sharing his bitcoin price prediction, he replied:

I think it goes to $12,000, where it was before this whole fiasco began.

“I think the people involved with bitcoin have to take another stand,” the Mad Money host stressed. “We need some guys to just say, ‘Look this is the level.’ That’s typical of what happens when it’s about to really drop big.” He emphasized, “They can’t let it go down anymore.”

Cramer on Margin Calls and Microstrategy

Cramer proceeded to talk about Microstrategy, the Nasdaq-listed software company that has amassed 129,218 BTC on its balance sheet. Its CEO, Michael Saylor, is a bitcoin bull. He was recently on CNBC talking about bitcoin being the best investment for his company and it is a good time to buy BTC at the current level.

Microstrategy recently debunked the rumor that it is facing a margin call for a bitcoin-backed loan from Silvergate Bank and will need to liquidate some BTC. Saylor explained that the company has more bitcoin to pledge and other collateral to post for the loan.

However, Cramer said if the lender changed the margin rates on crypto, Saylor “would be out in a second.”

Bitcoin plummeted early Saturday morning, falling below $20K for the first time since 2020. At the time of writing, BTC is trading at $17,983, down 13% over the past 24 hours and almost 40% over the last seven days.

The Mad Money host tweeted Saturday:

Ten percent down for bitcoin and you get some nasty margin calls over the weekend … Amazing that there are no big institutions propping this up.

He added in a follow-up tweet: “I wonder what rabbit Michael Saylor can pull out of a hat with his Microstrategy gameplan. I wonder when he first raised money if he had this in mind.”

Earlier this month, Cramer gave some advice on cryptocurrency investing. He admitted that he owns ethereum, adding: “I would never discourage you from buying crypto.” However, he said: “I would prefer that you would do it in ethereum or bitcoin, which have the largest followings.”

In October last year, he said: “The whole investment case for crypto rests on the Greater Fool Theory.” Microsoft co-founder Bill Gates made a similar comment this week that crypto is 100% based on the Greater Fool Theory, emphasizing that he is not involved in it.

Cramer is not the only one predicting a massive fall in the price of bitcoin. Billionaire fund manager Jeff Gundlach said this week that he wouldn’t be surprised at all if BTC falls to $10K. Rich Dad Poor Dad author Robert Kiyosaki indicated that BTC could bottom out at $9K. Guggenheim Chief Investment Officer Scott Minerd said last month that BTC could fall to $8K.

What do you think about Jim Cramer’s prediction? Let us know in the comments section below.

Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

(function(d, s, id) {
var js, fjs = d.getElementsByTagName(s)[0];
if (d.getElementById(id)) return;
js = d.createElement(s); js.id = id;
js.src=”
fjs.parentNode.insertBefore(js, fjs);
}(document, ‘script’, ‘facebook-jssdk’));



Source link

Coinbase is facing class action suits over unstable stablecoins GYEN, TerraUSD

Coinbase is facing class action suits over unstable stablecoins GYEN, TerraUSD

A class-action suit was filed against Coinbase on Thursday claiming the trading platform was negligent in its listing of the TerraUSD stablecoin and alleging that it failed to disclose its financial relationship with Terraform Labs. This is the second class-action suit outstanding against Coinbase. A suit was filed last month in connection with the depegging of GYEN in November. 

Thursday’s suit alleges Coinbase was negligent for failing to conduct due diligence of Terraform Labs before it listed TerraUSD and misrepresenting TerraUSD’s risk as an algorithmic stablecoin. The suit compares the information on stablecoins provided by trading platforms Robinhood, Gemini and Kraken to that of Coinbase and concluded that “Rather than disclose the nature of TerraUSD as uncollateralized, controlled by an algorithm, and highly risky, Coinbase passed it off as just another stablecoin.”

The suit also claims Coinbase Ventures, the investment arm of the company, was one of the largest backers of Terraform Labs, and that was additional motivation for the company not to disclose TerraUSD’s volatility.

Related: Elon Musk gets hit with ‘ridiculous’ $258B Dogecoin lawsuit

The plaintiffs and classes in the case are being represented by law firms Milberg Coleman Bryson Phillips Grossman and Erickson Kramer Osborne. The latter firm is also representing the plaintiffs in a case filed against Coinbase and GMO-Z.com Trust on May 13 related to the depegging of the Japanese yen-pegged GYEN stablecoin in November.

The GYEN shot up in value then dropped precipitously a week after being listed on Coinbase, causing the platform to freeze some users’ accounts. Some users also lost money – “untold millions,” according to the suit – during the incident. The suit claims GMO-Z.com failed in its duties to the plaintiffs and the class in several ways, beginning with the design of the stablecoin.

Coinbase is claimed to have engaged in negligent misrepresentation and failure to use reasonable care in listing the GYEN despite a reasonably foreseeable risk of depegging.



Source link

Elon Musk Hints Twitter Will Integrate Crypto Payments if His Takeover Bid Is Successful – Featured Bitcoin News

Elon Musk Hints Twitter Will Integrate Crypto Payments if His Takeover Bid Is Successful – Featured Bitcoin News

Tesla CEO Elon Musk has suggested integrating crypto payments into Twitter. “My goal would be to maximize the usefulness of the service,” he told Twitter’s employees in his first all-hands meeting with them.

Twitter’s First All-Hands Meeting With Elon Musk, Integrating Crypto Payments

Tesla and Spacex CEO Elon Musk, who may become the new owner of Twitter Inc., had his first all-hands meeting with Twitter’s employees Thursday.

Musk answered many questions about how he plans to run the social media company if his bid to buy Twitter is successful. However, the $44 billion deal is currently on hold, and Musk has accused Twitter of a material breach of the merger agreement.

During the meeting, Musk mentioned crypto a few times, according to a leaked transcript of the meeting and a leaked video posted by Project Veritas.

Leslie Berland, Twitter’s chief marketing officer, asked Musk: “Can you talk a little bit about Twitter and payments?”

The Tesla boss began by stating that “money is essentially a form of information,” adding that it is “fundamentally digital.” He added:

I think it would make sense to integrate payments into Twitter so that it’s easy to send money back and forth, and fiat currency as well as crypto — essentially, whatever somebody would find useful.

“So my goal would be to maximize the usefulness of the service — the more useful it is, the better. And if one can use it to make convenient payments, that’s an increase in usefulness,” he clarified.

Crypto Scams and Spam Accounts

Berland also asked Musk about some problems he sees with Twitter. The Tesla CEO replied:

There’s definitely an ongoing challenge with Twitter with bot accounts and spam accounts. There’s quite a lot of crypto scams on Twitter.

“It’s gotten better, but there’s still a fair bit of that,” he continued. “There are also people where they’re not necessarily bots, but they might be operating. You know, one person’s operating hundreds of accounts and trying to make them look like individuals, but they’re not.”

Musk previously said that the spam bot is the single most annoying problem on Twitter and he vowed to defeat it “or die trying,” if his bid to buy the social media platform succeeds.

Transparency, Trust, and Free Speech

Musk further explained to Twitter’s employees: “I think it’s extremely important that there be transparency. So that’s why I’m an advocate of having the algorithm be open source so that people can critique it, improve it, identify bugs, potentially, or bias.”

Noting that “transparency obviously increases trust,” the Spacex boss emphasized:

I think that trust is extremely important, and then just the usefulness of the system — getting rid of sort of troll farms and bots and spam is incredibly important.

Regarding free speech, Musk said: “I think it’s essential to have free speech and to be able to communicate freely … It’s free speech within the context of the law. So I’m not talking about suggesting that we just flout the law, because we’ll just get shut down in that case.”

What do you think about how Elon Musk will run Twitter? Let us know in the comments section below.

Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

(function(d, s, id) {
var js, fjs = d.getElementsByTagName(s)[0];
if (d.getElementById(id)) return;
js = d.createElement(s); js.id = id;
js.src=”
fjs.parentNode.insertBefore(js, fjs);
}(document, ‘script’, ‘facebook-jssdk’));



Source link