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Ethereum (ETH) Developers Cut Block Rewards By 33% To Curb Inflation

From 3 ETH To 2 ETH Every 14 Seconds

As with the growth of any asset, product or service, development is key. And it seems that the team behind the Ethereum project has taken development to heart, recently holding an hour-long meeting to discuss the future of their brainchild.

Friday’s meeting, dubbed “Ethereum Core Devs Meeting Constantinople Session #1,” covered a variety of topics that include ASIC resistance, an updated consensus algorithm (ProgPoW), future hard forks and a so-called “difficulty bomb,” which are all topics that pertain to October 2018’s planned Constantinople hard fork.

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But the curiosity of many investors, traders, analysts, and miners piqued when the 15 meeting attendees started to discuss the rules surrounding this issuance of Ether, which has become a hot topic within cryptocurrency community.

After discussing Ether issuance for a good period of time, the attendees, which were mainly composed of core developers, decided to confirm a 33% block reward reduction, from 3 ETH to 2 ETH as per Ethereum-Improvement-protocol 1234.

While this announcement may seem mundane on the surface, some were over the moon about this decision. Eric Conner, an Ethereum proponent, highlighted the statistics of the current Ethereum Network and when the Constantinople upgrade occurs.

Conner revealed that as it stands, there is a 7.4% annual inflation rate of Ether, which amounts to a hefty 7,378,402 ETH ($2.065 Billion). This is evidently ludicrous, with many pointing out that a 7.4% inflation rate eclipses the declining purchasing power of ‘popular’ fiat currencies. But once EIP-1234 sees full implementation, the Ethereum network’s inflation rate will drop to a respectable 4.7%, or 4,918,935 ETH a year ($1.37 Billion).

It was added that this move will essentially put Ether’s inflation rate nearly on-par with Bitcoin’s, which will both hover around 4% annually by the start of 2019.

Alex Kruger, an Argentina-based cryptoanalyst, questioned why the market “isn’t reacting more bullishly to this.” But as seen by this week’s news cycle, the market has seemingly stopped reacting to news altogether, with bullish and bearish news alike not making any dents on the often irrational price action of crypto assets.

Eduardo Gomez, a Venezuelan cryptocurrency commentator, likened this move to a Bitcoin block reward halving event, adding that prices will first dump “then moon” in the months following the event.

Gomez is alluding to the theory that a smaller block reward will only bolster prices in the long-run, as miners will need to put in more ‘effort’ (funds, electricity etc.) to garner the crypto they are craving for. And as seen by the previous Bitcoin halving events, this seems to be more of a reality than a theory, as the price of the foremost crypto asset surged in the months/year following the move from 25 BTC to 12.5 BTC per block.

In related news, along with reducing block rewards, the Constantinople EIP-1234 move intends to delay Ethereum’s difficulty bomb, which will give developers more time to work on the Casper protocol, which would move the network from a PoW-centric system to a Proof of Stake (PoS) model.

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Firefox to Block Cryptojacking Malware in New Browser Releases

Firefox will block cryptojacking malware in future versions of its web browser, according to an announcement August 30.

The move comes as part of an anti-tracking initiative expected to be implemented over the next few months. In the announcement, Firefox cites a study by browser extension Ghostery, stating that 55.4 percent of the total time required to load an average website is spent loading third party trackers.

Future versions of Firefox will reportedly block such practices as cryptomining scripts that “silently mine cryptocurrencies” on users’ devices by default. By blocking tracking and offering a “clear set of controls,” Firefox is looking to provide its users more choice over what data they share with websites.

Back in 2016, Mozilla, the company behind Firefox browser, implemented practices encouraging users to take care of their online privacy and security in an ongoing shift towards data encryption. Firefox reportedly was going to block connections to HTTPS secure servers employing weak encryption and establish a minimum of 1023 bits for TLS handshakes using Diffie-Hellman keys.

Another major web browser, Opera, included anti-crypto mining in their integrated ad-blocker for desktop in December last year. Later in January, the company announced plans to add the feature to their mobile browser as well.

This month, Opera announced the launch of its desktop web browser with built-in crypto wallet functionality. As with the mobile app, the desktop client will support tokens as well as digital collectibles, with product lead of Opera Crypto Charles Hamel commenting that browser integration represents a further step in “making cryptocurrencies and Web 3.0. mainstream.”

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Bitfi Closes Wallet Bounty Program, Removes ‘Unhackable’ From Branding

Cryptocurrency hardware wallet manufacturer Bitfi has officially closed its bounty program, according to an August 30 tweet, in addition to removing the “unhackable” claim from the wallet’s marketing materials.

In its statement, the company admitted “vulnerabilities,” and yet avoided speaking about multiple alleged hacks of the device. Bitfi also confessed to hiring a “Security Manager who is confirming vulnerabilities that have been identified by researchers.”

The company expressed appreciation for “the work and effort of the researches,” stating that the bug bounty program was officially closed. Any further comments on remuneration and the project’s roadmap are postponed until early September. Bitfi officials remained silent about the $100,000 reward they announced in July.

The recent Bitfi post quickly prompted a response from the community. While some insist on recalling current vulnerable hardware using #RecallBitfi hashtag, others blame the wallet’s team for misleading promotions and harming the industry.

Bitfi’s executive chairman, cybersecurity pioneer and crypto evangelist John McAfee, had claimed that wallet was “the world’s first unhackable device.” He further challenged security experts to breach the device for a $100,000 bounty starting July 24.

Photos of Bitfi components surfaced online in late July, prompting some commentators to claim it was “a cheap Android phone,” which did not deserve the accolade of the “most sophisticated instrument in the world”.

Though several attempts to hack the Bitfi wallet have been made since then, the company has not paid out any bounties. Researchers claimed that they could track the device and extract the necessary information to qualify the device as “hacked.”

As Cointelegraph previously reported, the company responded to the hacking claims and subsequent criticism by calling them an “army of trolls” hired by hard wallet competitors Trezor and Ledger.

In August, an alleged 15 year old Twitter user Saleem Rasheed (@spudowiar) cracked the wallet and launched Doom on it. Hours before the recent statement withdrawing the “unhackable” definition from the wallet’s branding, Rasheed posted a video where he managed to extract a secret phrase from Bitfi using a cold boot attack.

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Tempo Money Transfer Chooses Stellar Over Ripple: Calls It a “Natural Fit”

In the world of cryptos and blockchain technologies, business options are as extensive as people’s needs.

Stellar: The blockchain chosen by Tempo to provide better quality services

In the case of businesses dedicated to facilitating payments between individuals, the choice of which blockchain to use and which fintech to hire is of vital importance for their growth. However, the symbolic relationship between crypto-based and fiat-based fintechs has resulted in greater public exposure to the world of crypto-currencies and blockchain technologies.

In the case of blockchains specialized in providing solutions to banks and payment providers to process cross-border transactions, 2 are the blockchains that currently dominate the sphere: Stellar and Ripple.

Stellar and Ripple are two developments that seek to offer solutions to the same problem but from 2 almost diametrically opposed perspectives. Stellar prefers decentralization while Ripple prefers more centralized protocols.

Tempo: Stellar is a Natural Fit

Tempo Logo

In an interview for the Blockchain Podcast #66 of Finance Magnates  Anthony Barker, Chief Technology Officer [CTO] of Paris-based international money transfer firm Tempo, commented on the benefits of using blockchains for the financial industry and the reasons why this company’s team chose Stellar over Ripple.

For Mr. Barker, Stellar’s philosophy seems to be more in line with the company’s standards. Its open design makes it a “natural fit” for the company.

“Stellar was sort of a natural fit for us … My gut reaction was that [Ripple] is not so good for community building … [It’s] much more like a Visa/Mastercard… I have a strong belief that open systems win in the long run.”

Cryptos: Fiat 2.0

He says that the possibility of developing a Token under the Stellar blockchain allowed Tempo to create a fast, reliable, but above all secure payment solution at the institutional level.

“We worked with Jed McCaleb and his developers, and we added compliance, so it’s integrated into Stellar as a standard 2nd-layer protocol … so we know how to send first name, last name, and date of birth across.

They added that really quickly simply because they’re really focused on this global remittance use case,”

For Mr. Barker, cryptos represent an advantage over traditional fiat-based systems as they allow payments to be made almost instantaneously regardless of the characteristics of the transaction. A $1 remittance can be reconciled as quickly and efficiently as a $1,000,000,000 remittance through the use of cryptocurrency.

“When you go to someone like a Western Union, they’ll have some money sitting in the other country, and they’ll do a payout from their account in that country to make it faster. So you have this problem of using money using the SWIFT settlement system, and it’s really expensive, cumbersome, and slow …

That’s why we migrated to blockchain … It’s really expensive, it’s a nightmare[with correspondent banks]; money gets locked up, and there’s no idea where it is or where it’s been blocked.”

Tempo is currently building an important base of strategic allies to expand operations throughout Europe.

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CZ Tweets About a Significant Bullish Run… And Deletes It To Not Over-excite Market

The bullish sentiment seems to be awakening in many investors, resulting in a very positive effect for the community as they see how big names in the cryptomarket are optimistic about the future price performance of their favorite tokens.

The cryptocurrency market is undoubtedly one of the most volatile in the financial world. Scientific studies have shown that this community tends to react more to comments and rumors than to technical indicators used in traditional markets.

However, after a correction as important as the one experienced during 2018, a possible recovery may be in sight, and several analysts have ventured to comment that perhaps the bears’ power stage has come to an end.

CZ: A Bullish Man With an Important Voice

One of the ones who couldn’t contain his excitement was CZ, CEO of Binance, who in his personal tweeter said that crypto prices could be at the gates of a new bullish run of great importance:

A man with the level of influence within the community as CZ has a loud voice in the markets. His actions generate a strong expectation in the investors since he represents the most important Exchange of cryptocurrencies in the world.

Was a Deleted Tweet The Best Decision?

However, after a short time, CZ decided to delete the tweet. This caused considerable controversy, prompting the public to speculate on the reasons why he did it, especially since the tweet came from someone who “knows his stuff.”

To avoid unfounded speculation, CZ himself commented on why he deleted the tweet mentioned above:

“It was spreading too quickly, and some over read into it as a sign/hint/speculation/etc. So I took it off. I am always bullish, and think we are in a bull market. I look at the week chart. And hodl, for years.”

“CZ”: CEO of Binance

In other words, he didn’t change his mind, he didn’t think he was wrong, let alone changed his view of the market. He was merely trying to prevent his comments from being used as a basis for exaggerated conclusions.

While in reddit, users commented on the possible causes, most of the reactions were positive. Most users understood this thanks to CZ’s quick clarification that even after deleting such a controversial tweet, he managed to maintain optimism within the community.

CZ tweets ‘this bull run will be a significant one’ then deletes tweet from CryptoCurrency

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Yahoo Finance Brings BTC, ETH, LTC Trading Support To Mobile Phones

As reported by Ethereum World News previously, Yahoo Finance, one of the world’s most popular finance-centric sites introduced support for a native crypto trading feature. On Wednesday, the website allowed its users to trade Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Bitcoin Cash (BCH) via Coinbase and Robinhood API integrations, without ever having to click off Yahoo Finance.

The crypto community erupted after hearing this news, with the likes of Litecoin founder Charlie Lee and Anthony “Pomp” Pompliano, Morgan Creek Digital Asset’s founder, expressing their excitement for the adoption this could bring.

While this feature was legitimately available for approximately 24 hours, Yahoo Finance has since suspiciously removed crypto trading support. Obviously, this threw many for a loop, with some wondering what had caused the California-based internet giant to abolish the feature.

After hours of confusion, Yahoo came out to give insight on its crypto-friendly move, alluding to a fact that on-site support might have been a premature maneuver. Opening its press release, the site, which has become popular for its coverage and provision of data for legacy markets, drew attention to its previous moves to accommodate crypto investors, such as adding “over 100 cryptocurrency quote pages across all platforms globally” and covering news that pertains to the crypto/blockchain industry.

Staying in line with its ostensible affection towards all things crypto, Yahoo Finance revealed that it will now “allow its users to act on that information, and trade cryptocurrency directly from its platform.” It seems that the technology firm has its eyes on offering IOS trading support before anything else, revealing that a partnership with Tradeit has allowed Yahoo to act on its plans. The release elaborated, noting:

The new feature, launched this week on the iOS app, allows users to buy and sell a variety of cryptocurrencies by linking their account – via an integration with our partners at TradeIt –  including Bitcoin, Ethereum, Litecoin and Dogecoin.

Oddly enough, this time around, users will now be able to trade Bitcoin, Ethereum, Litecoin, and Dogecoin too apparently. It is unclear whether Yahoo failed to mention Bitcoin Cash (BCH) this time around, or dropped support for the Bitcoin fork entirely. But support for Dogecoin (DOGE) adds up, considering the fact that this specific asset is a relatively simple coin in terms of its technological background, as it holds roots as a Litecoin-based cryptocurrency.

Yahoo Finance’s release also noted that Android, desktop, and mobile web integrations are coming soon. Expressing her excitement for this foray into crypto trading, Joanna Lambert, the General Manager of Finance & Tech at Oath (Yahoo’s Parent Company), stated:

As the leading provider of financial data, insights, and editorial content, we are constantly looking for ways to better serve audiences on the Yahoo Finance platform. We first launched our integration with Trade It one year ago, allowing people to trade on Yahoo Finance for the first time ever.  We’re excited to expand this offering to cryptocurrencies, further connecting our passionate community of investors with relevant utilities on our trusted platform.

It is unclear whether this move has had any discernable effect on the market, but many hope that this feature will only propel the adoption of crypto assets for years to come.

Photo by Sven on Unsplash
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Former Ripple CTO's Blockchain Project Coil Enters Closed Beta

“Coil, a new company founded by Ripple’s former chief technology officer Stefan Thomas, has launched a closed beta.

The project – which aims to allow web content creators to better monetize their work – was announced in May, when Thomas departed Ripple. In an interview, Thomas detailed the closed beta, describing the initiative as a way to level the playing field for content creators.

“If you’re big you can have a subscription service like Netflix or Spotify. If you’re big you can collect enough data about people to make a lot of money with ads like Facebook or Google,” he said, going on to add:

“If you’re small it’s actually very hard right now to make money on the web.”

Coil has not announced the beta publicly, Thomas said, though it has begun inviting certain select parties (those interested can sign up here).

Thus far, few websites have joined the platform, he continued, noting that “we did some passive integrations with some sites like Wikipedia, Youtube, Twitch.”

While at Ripple, Thomas co-created Interledger, an interoperability protocol that facilitates payments across different networks. This technology, which is open source, is now being used as the basis of Coil.

Thomas also helped to create Codius, a smart contract platform that Ripple developed- in-house but ultimately shelved in 2015 due to technological challenges and a lack of compelling use cases. In June, however, Thomas revealed that Codius would be incorporated into Coil.

Coil allows readers, watchers and listeners to compensate content creators through micropayments. It’s a model that has been tried multiple times in the industry, including the browser-focused startup Brave, which raised $35 million in an ICO last year. Thomas also cited Patreon and Flattr, but highlighted an important aspect that distinguishes Coil.

With Coil, he said, “you’re getting paid in real time,” allowing content creators to explore new business models.

“You can now make a service where maybe you need to rent a server for every user that comes by,” he explained, adding that other possibilities include downloading or uploading a file, sending an SMS, or streaming music that triggers a licensing fee.

“The website gets the money instantly as you’re on the website, so they can actually react to it and provide extra services,” Thomas said, concluding:

“That’s never been possible before, so we’re excited to see what people build with that.”

Coil image by Guillaume de Germain via Unsplash

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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Bitcoin SV Alpha Launched Claiming to Follow the Real Satoshi’s Vision about Bitcoin

Craig Wright stays determined to pursue his view of what Bitcoin Cash should be, promoting what he believes is Satoshi Nakamoto’s true vision. The BCH client known as Bitcoin SV has generated mixed opinions, however, its development does not stop and every day seems to gain more followers.

In a dark episode for the Bitcoin Cash community and after a series of verbal an written confrontations in which even Vitalik Buterin himself issued opinions on what he considers best for the BCH community, the alternative proposed by nChain to achieve a better blockchain seemed to emerge unscathed from the bad propaganda.

In an announcement made by Mr. Wright, the first pool with the capacity to mine the Bitcoin SV blocks was made public. This move seems to be a direct response to the predisposition of Bitmain and its pools to withdraw any support for Bitcoin Sv

Screenshot of the new Bitcoin SV Pool’s Website

An Inminent Chain Split

It is also important to note that the Bitcoin Cash community seems to be facing a split in the blockchain given the conflict between the configurations and philosophies of the Bitcoin ABC and Bitcoin SV groups.

While Bitcoin ABC follows the more traditional rules of the BCH community and is compatible with other proposals made by groups such as Bitcoin Unlimited, Bitcoin SV is not. And in case the Bitmain-dominated group of miners does not provide the necessary support, Bitcoin SV already has a prepared defense as Calvin Ayre, and CoinGeek have stated that they have a number of ASICs specially designed to mine Bitcoin SV which will be available to combat the Bitmain monopoly:

“CoinGeek also wants to announce that we have designed a super energy efficient, next generation ASIC chip design that will be released later this year. This Chip will be optimized for Enterprise level mining on Bitcoin using the original Satoshi Protocol. We will have a booth demonstrating this at the CoinGeek Week Conference last week of November in London and invite all miners to join us in planning for the future of this industry at this event.”

Welcome Bitcoin SV Alpha

The Bitcoin SV project had planned to launch a beta in September, however, due to the community’s insistence on evaluating the project, the development team decided to publish an Alpha release. It does not propose an immediate implementation but instead seeks to generate debate on its characteristics, errors, potential, etc.

“This is an Alpha release, the purpose of which is to provide a preview of the code in response to requests from miners and pool operators. This is not intended to be a release candidate. Work is still in progress targeting a beta release for 1st week of September in line with the initial Bitcoin SV announcement.”

So far, despite the controversy, Bitcoin SV seems to be on a roll, gaining support over time:

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BitAngels’ Michael Terpin: Negligence of Major Phone Companies Is Crypto’s Biggest Threat

This interview has been edited and condensed.

Michael Terpin is an American blockchain and crypto investor who has worked with over 100 projects running Initial Coin Offerings (ICOs) since entering the blockchain space in early 2013.

Terpin co-founded  BitAngels in 2013 and, more recently, founded blockchain PR firm Transform Group. The investor and entrepreneur recently hit mainstream and crypto media headlines following his high profile case against U.S. telecom giant AT&T. Terpin is suing AT&T for negligence that allegedly resulted in the theft of over $24 million of Terpin’s crypto holdings.

Cointelegraph sat down with Terpin at BlockShow Americas in Las Vegas to get into the details of the case, discuss the current ICO landscape, the difference between centralized and decentralized cryptocurrencies and where he sees Bitcoin’s price three to five years from now.

Crypto’s Biggest Threat

Olivia Capozzalo: The story that is going on right now with AT&T — can you tell our readers what happened?

Michael Terpin: Sure. So, the entire crypto community has been targeted by gangs — crypto gangs — for quite some time, and it accelerated as the price of Bitcoin and other crypto assets went up.

Right now, the biggest risk to anybody who’s high profile in the crypto industry, and really anybody who has identifiable involvement in the community, is that major phone companies promise you security and don’t deliver it.  

So, I’ve been hacked twice: The first time was last year — it’s all in my lawsuit. I did not lose that much the first time, I thought my crypto assets were already pretty secure because I have all my major assets in bank vaults and Trezors and Ledgers. But as an investor and marketer in this space, I have, you know, dozens of different cryptocurrencies that don’t neatly fit into any of those profiles.

The only reason that they did get in there is because AT&T allowed one of their reps in a store in Connecticut to give my six-digit code that they told me when I requested a higher level of authorization of security.

What they did not say is that any low-level, $10-an-hour store clerk can override that authorization. Normally, when you think that there’s a password that is supposed to be a high-level password to protect you, it would be like a PIN number in a bank.

So, only one of two things is possible: Either the person is a complete idiot and cooperating with the hackers unknowingly — which still shouldn’t have been allowed under the way that they promised it to me — or he’s part of the gang and just got bribed.

And there’s a lot of evidence that this is going on pretty widely right now.

OC: I want to walk through this step-by-step, because I think that helps people also understand how they can prevent this kind of thing, if that’s even possible.

So, what that looks like, you’re saying, is that a person goes into a physical AT&T store and says that they’re you?

MT: That’s correct. Or they pretended someone is in there, and they scanned, you know, a subway card and said it didn’t scan, and then did a manual override.

It’s quite possible the AT&T rep did it with nobody actually in the store at all. You know, case after case is coming out, and there’ve been several arrests in July that all have in common AT&T employees who were basically bribed.

You can watch the full interview here:

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OC: Okay. Say this person gets access to your identity, they’re getting access to your phone number on a different phone, right?

MT: When an AT&T rep turns over your digital identity, they turn over anything that would have access to your phone number.

OC: Basically what happens is that they now have access to change your passwords, because they just confirm with the phone number?

MT: They have access to anything that has the phone number attached to it as a form of verification, which is much broader than wallets.

OC: Right. So, it can be a two-factor thing, but it wouldn’t be Google 2FA…

MT: This was not an exchange. So, there are many other pieces of software that have your phone number as your identity.

OC: Okay, right. So, at the end of the day though, we’re talking about millions, like, $20 million, right?

MT: Correct.

OС: $24 million, I believe. Not to be offensive, but why was that much money in a place that was accessible by a phone number?

MT: It should not have been accessible other than being broken into and being handed over, and having the hackers be able to go and prowl around all sorts of things that were within my network of computers.

Because they were able to get access to that through this. So, it wasn’t as simple as — and it wasn’t, as has been misreported — “Oh, I had a Coinbase account, and they were able to reset that.” That was not an exchange, it was a native wallet.

OC: A native wallet. Because, what you’re saying is that you couldn’t store these currencies in a cold storage?

MT: Nope.

Most of the smaller tokens – anything that’s not Bitcoin, or Ethereum or ERC-20 tokens – are not storable on cold storage; they have to be stored in, you know, in a paper wallet or, in order to be able to stake new tokens, they have to be stored, essentially, in the native wallet.

OC: Okay so, now that you’re going through this nightmare with AT&T, can you give some advice to investors overall?

MT:

Sure. I would say, if you are a recognizable person in the crypto industry, you can’t use any of the major four phone companies, period.

If you for some reason need to use them, you have to make sure that any time that you use any piece of software that ever asks your phone number, do not give AT&T or any of the other ones.

So, the ways of getting around this — which is what I do now — is you have to have a Google Voice number.

But you have to have something that does not have a retail store where a $10-an-hour employee can be bribed to give up your information and your digital life.

OC: And you see this as an organized effort, you said, organized crime?

MT: Yes, clearly organized. There are hundreds of millions of people involved.

So, this is not an isolated incident — these are international gangs.

The FBI are very good at sort of following the trail and they’ll do what they do. And I’m certainly working with all of those law enforcement agencies. I have been doing that since the day this happened.

OC: Honestly, before this story came out, I hadn’t really heard of this as like a large-scale problem. The problem I do hear about is crypto-jacking, which you mentioned, via JavaScript malware.

But, just to clarify, do you see this issue with telecom companies as being bigger than crypto-jacking?

MT: Bigger. Much bigger.

It’s SIM-jacking, basically, that’s the biggest threat to individual assets right now.

And it’s something that is surprisingly simple for these telcomm companies to fix — simply: If you’re promising someone, you know, a higher security password, don’t let it be overruled by a $10-an-hour employee, make it mandatory.

Today’s ICO Landscape

OC: You’ve been an investor in the blockchain space for a while, and you have invested in a bunch of ICOs, you mentioned a hundred?

MT: Yes, between PR services and me being an advisor to companies, my firm and I have worked with 103 ICOs.

OC: Wow! A lot of people say the heyday of the ICOs was last year, the year before. Can you sketch out what is happening right now with ICOs that you’re seeing, and if you think it’s a good thing?

MT: You know, I think that when we’re talking about the death of the ICO and this and that, I think it’s too early to say that. I mean, if you take out the infrastructure tokens, I think security tokens will be much larger than utility tokens, because we just don’t have the formats in place right now.

Because there’s no reason why — other than the legacy systems — you can’t buy Google stock easily in France, or why you can’t buy Samsung stock on the New York Stock Exchange.

If you had a token, its global. So, that’s sort of the future that regulators just have to keep up, with how this applies cross-borders.  

But it’s still very early. You know, I like to give the analogy — even though it’s not exact — of the rise of the internet and the rise of blockchain. So, with the rise of the internet, there was a lot of skepticism in the early days, that the internet wasn’t viable.

So, all the stuff that was said about why the internet wasn’t gonna work, insert ‘crypto’ and a lot of things sound a lot the same.

And then, of course, there was a couple of early movements up and down, and then you had this wild ride from like ’98 to the first quarter of 2000, where the Nasdaq went from 1,000 to 5,000 — and, by the peak, when the dotcom bubble popped — you had $5 trillion dollars worth of companies, and that dropped by like 90 percent — a lot of them went out of business.

So, the rising tide lifts all boats, but then, when the water drops to the bottom, you can see all the junk at the bottom of the harbor — and it’s got to be cleared out before it starts going up again.

I think, if you look at the overall chart of Amazon, of eBay, of these other ones, the whole dotcom area now looks like a little tiny blip in the price compared to where it is today. So, I think, similarly, you may be looking at Ethereum, five years from now and seeing this you know 30 cents to $1200 and back down to $300 as a blip, if it’s say $15,000, you know, five years from now, 10 years from now.

I do pretty firmly believe that Bitcoin — it is my own personal belief — will hit a high of at least $50,000 sometime in the next three to five years.

And it seems to be the most predictable thing in terms of the way markets have behaved, that you have a big run-up about a year after the halving, when the supply and demand starts taking root.

Centralized vs. Decentralized

OC: Where do you stand on decentralized versus centralized cryptocurrencies?

MT: I think that when you’re looking at the overall revolution of the blockchain, decentralization is only one of many aspects that makes it revolutionary. Tokenization is just as important.

So, when you’re talking about, say, tokenizing a stock — it’s not decentralized. I think, that decentralization makes the most sense when you’re talking about cross-border payments.

But in terms of the actual technology, the decentralization of Bitcoin is less important than that of cryptocurrencies that base themselves on decentralized consensus, that’s important for the security of knowing that a smart contract cannot be stopped once it gets initiated.

Ideally, the proper way that I think most DApps should work is that you should have a nonprofit foundation that basically is just responsible for having that technology proliferate, and that there should be, then, a for-profit that uses it — that buys the tokens. And that way, you’re sort of keeping the incentives of those who are looking to build a stack separate from those who are keeping the blockchain.

But pure decentralization is tough when you incorporate even some security elements. But I think they’ll develop over time. And again, tokenization is just as important in broad, non-money transference instances.

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Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Stellar, Litecoin, Cardano, Monero, IOTA: Price Analysis, August 31

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.

The market data is provided by the HitBTC exchange.

A new study from the initial coin offering (ICO) advisory firm Satis Group has claimed that the price of Bitcoin (BTC) could soar to $98,000 within the next five years. However, the company forecasts a lower target for both Bitcoin Cash (BCH) and Ripple (XRP) in that period. According to the research team, Ethereum (ETH) will also lose about half of its share in the next ten years.

The job market in the blockchain and the cryptocurrency industries in Asia is growing and many are shifting from their traditional jobs to be a part of this budding technology.

Japanese messaging app LINE is planning to launch its own cryptocurrency in September. Rakuten, the Japanese e-commerce giant has purchased a domestic crypto exchange, Everybody’s Bitcoin. The government of a South Korean province Gyeongsangbuk-do plans to issue its own digital currency.

This shows that the fundamentals of the sector are improving. So, is this the right time to buy or can the cryptocurrencies fall further before bottoming out? Let’s find out.

BTC/USD

Bitcoin has been struggling to stay above the 50-day SMA for the past two days. This shows a lack of follow up buying at higher levels. The only positive is that the bulls have been able to defend the 20-day EMA and the digital currency has managed to close (UTC time frame) above the 50-day SMA on all the three days.

BTC/USD

The 20-day EMA has turned up, which shows that the bulls have a short-term advantage. If prices break out of $7,127, the BTC/USD pair can pick up momentum and scale above the 50 percent Fibonacci retracement level of $7,198.3.

The 61.8 percent Fibonacci retracement level of $7,504.68 might act as a minor resistance, above which the rally can extend to $7,940.89. Once the prices sustain above $7,200, the traders can raise their stops to break even. For now, the long positions can be maintained with the recommended stops.

Our bullish view will be invalidated if the bears sink prices below the 20-day EMA. In such a case, the digital currency will become range bound between $5,900.06 and $6,955.79. Bitcoin will turn negative only if the prices sustain below $5,900.

ETH/USD

Ethereum has recently been one of the weakest cryptocurrencies that we cover. It has not even touched the 20-day EMA in the past few days. This shows a lack of buying support at the current levels.

ETH/USD

It has formed a symmetrical triangle at the lower levels. If the bears sink the prices below the triangle, the ETH/USD pair can slide to $249.93 and further to $205.  

If the bulls break out of the triangle, a move to $358 is probable. However, the 20-day EMA and the downtrend line are formidable resistances on the upside, hence, we shall wait for a buy setup to form before proposing any trades on it.

XRP/USD

Ripple has failed to break out of the downtrend line 2 for the past three days. It has also slid below the 20-day EMA, which shows a lack of buyers at higher levels.

XRP/USD

A move above the 50-day SMA will indicate strength and can result in a rally to $0.5. The trend will change if the XRP/USD pair sustains above the downtrend line 1.

If the bears sink the virtual currency below $0.31, a retest of the August 14 lows is possible. We don’t find any reliable bullish patterns at the current levels, hence, we are not suggesting any trades on it.

BCH/USD

Bitcoin Cash hasn’t done much in the past few days as it remains stuck between $500 and the 20-day EMA.

BCH/USD

Both moving averages are sloping down, which shows that the bears are still in command. The BCH/USD pair is likely to gain strength above the 50-day SMA.

On the downside, the virtual currency will become negative if the $500–$473.906 support zone breaks down. We shall wait for the trend to change before suggesting any long positions on the pair.

EOS/USD

EOS has stayed above the 20-day EMA and $5.65 for the past three days, which is a positive sign.

EOS/USD

For the past two days, the EOS/USD pair has been facing resistance at the 50-day SMA. The bulls have not managed a close (UTC time frame) above this moving average since June 8. A close will indicate a probable change in trend. Therefore, we maintain the buy recommendation made in the previous analysis.

The rising 20-day EMA and the flattening 50-day SMA increase the possibility of a bullish crossover if the price sustains above $6.5. Our bullish view will be invalidated if the price turns down from the overhead resistance.

XLM/USD

Stellar continues to trade inside the range of $0.184–$0.24987525. The longer it stays in the range, the stronger will be the eventual breakout or breakdown from it.

XLM/USD

The XLM/USD pair will complete a bearish descending triangle pattern if it breaks below the $0.184 support level.

On the other hand, the bearish pattern will fail if the bulls break out of the downtrend line. As the bottom of the range at $0.184 has managed to hold on two previous occasions in 2018, we anticipate a strong up move once the bulls break out of the range. Therefore, we retain our buy recommendation made on August 27.

LTC/USD

After failing to break out of the range on August 28 and 29, Litecoin is currently trying to hold  the support at the 20-day EMA. Both moving averages are flattening out. This shows that the selling pressure has reduced and a change in trend is probable.

LTC/USD

The first sign of strength will be when the bulls break out and sustain above the overhead resistance at $62.319. The short-term traders can stay on the long side once the virtual currency scales above $64. Such a move might face resistance at the 50-day SMA, the downtrend line and at $74.

We shall turn bullish on the LTC/USD pair after it breaks out and sustains above $74 for three days. Positional traders should wait for additional confirmation before initiating any long positions.

ADA/USD

Cardano failed to break out of the overhead resistance on August 29 and has extended its stay inside the range of $0.083192–$0.111843.

ADA/USD

Currently, the prices have slipped below the 20-day EMA. The flattening moving averages point to a probable consolidation in the near-term.

A break out of the 20-day EMA will carry the ADA/USD pair to the 50-day SMA. We shall turn positive if the bulls succeed in sustaining above $0.13.

Our neutral stance will be invalidated if the bears break down of $0.083192. We shall wait for a new buy setup to form before proposing any trades.

IOTA/USD

IOTA has turned down from the resistance zone between the 50-day SMA and the downtrend line but found support close to the 20-day EMA. It could not reach $0.82 where we had suggested booking partial profits.

IOTA/USD

The IOTA/USD pair will continue to face selling between $0.815 and $0.9150. After this zone is crossed, the rally can extend to $1.24.

On the downside, the 20-day EMA and $0.5750 will act as strong supports. Both moving averages have flattened out, which shows that the selling has subsided and a change in trend is likely. Therefore, the traders can continue holding the existing long positions with the recommended stops.

XMR/USD

Monero has held above the 20-day EMA for the past four days. It is currently trying to break out of the horizontal resistance at $109.22.

XMR/USD

The zone between the current price and the downtrend line is likely to act as a stiff resistance.

The XMR/USD pair has not broken out of the downtrend line convincingly since topping out in December of last year. If the bulls succeed in closing (UTC time frame) above this resistance, it indicates a probable change in trend. The flattening moving averages indicate that the bears are losing their grip.

Therefore, we retain the buy recommendation provided in the previous analysis.   

The market data is provided by the HitBTC exchange. The charts for the analysis are provided by TradingView.