Top Crypto News – 01/08/2018

Markets Update: Cryptocurrency Price Trends Turn from Bullish to Bearish

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Digital Asset Prices Turn Bearish as the Entire Cryptocurrency Economy Loses $25 Billion USD

Markets Update: Cryptocurrency Price Trends Turn from Bullish to BearishBearish sentiment is starting to haunt cryptocurrency markets once again as many digital assets saw prices tumble today. Bitcoin Core (BTC)prices dropped to a low of $7,503 on July 31 as the currency’s trade volume had started to drift a bit lower after the price hovered around $8,125 the day prior. A large portion of other cryptocurrency markets followed suit with BTC as the top ten virtual currencies are seeing losses across the board of course except for tether (USDT).

Ethereum (ETH) continues to hold the second highest market valuation with a market capitalization that’s around $42.28Bn. One ETH is being traded for $418 and the market is down 7.6 percent today. ETH markets are followed by ripple (XRP) which is down 2.8 percent over the last 24-hours as one XRP is trading for $0.42 cents. Lastly, the fifth highest market capitalization held by EOS is also down 6.6 percent and the currency is trading at $7.13 per coin.

Markets Update: Cryptocurrency Price Trends Turn from Bullish to Bearish

Bitcoin Cash Market Action

This Tuesday bitcoin cash (BCH) markets are seeing losses as well as BCH is down 8 percent over the last 24-hours. Bitcoin cash markets are also down 13.2 percent for the last seven days. One BCH is trading for $741, and the decentralized cryptocurrency has a market valuation of around $12.8Bn. The last 24 hours show BCH trade volumes are around $432Mn at the time of publication. The top exchanges swapping the most BCH today include Coinex ($106.53Mn), Huobi Pro ($69.38Mn), Okex ($64.81Mn), Binance ($46.80Mn) and Hitbtc ($34.79Mn).

Markets Update: Cryptocurrency Price Trends Turn from Bullish to Bearish

The top currency traded with BCH on July 31 is tether (USDT) with 55.2 percent of swaps. This is followed by BTC (28.5%), USD (7.6%), QC (2.8), ETH (2.4%) and the KRW (1.2%). Bitcoin cash holds the fifth highest volume over the past 24-hours among all 1,600+ other cryptocurrencies.

Markets Update: Cryptocurrency Price Trends Turn from Bullish to Bearish

BCH/USD Technical Indicators

Looking at the daily and 4-hour charts on Bitfinex and Bitstamp shows bears have grabbed the reins and still have a good portion of control. RSI levels are screaming oversold conditions (33), while the MACd has swooped down to -85. The SMA 100 is far higher now above the longer-term 200 SMA trendline which means BCH bulls may lose a bit more grip over the short term. Many traders can see looking at charts that the price was rolling sideways for close to three days and many were convinced of a bull flag after the inverse head & shoulders. But just before the dip sell orders on popular exchanges worldwide began stacking up. Looking at order books from the current vantage point BCH bulls have some high walls up until $775 but if they can manage to break that resistance we could return to previous levels. On the back side there’s solid support between now and $710 but unfortunately, books are thinner until $650.

Markets Update: Cryptocurrency Price Trends Turn from Bullish to Bearish   The Verdict: Flat Volumes and Bearish Sentiment Brings Market Skepticism

Overall skeptics and bearish cheerleaders are hoping for some stronger dips and they just may get them. Volumes across the board for many cryptocurrencies has been getting flatter as each day passes. Traders and enthusiasts are now unsure the upcoming ETF decision will pull prices up until then for two reasons: One the Winklevoss Twins fund was denied again, putting a black cloud over positive vibes toward the Cboe ETF, and secondly everyone is unsure exactly when the Securities and Exchange Commission (SEC) will make their ultimate decision. This week the current market sentiment, and our price verdict, point to far more skepticism and shade towards bullish prices returning soon.

Written by Bitcoin.com

 

One Year Later, A Wave of Apps Is Emerging on Bitcoin Cash

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Happy birthday, bitcoin cash.

Tuesday marks the one year anniversary of the first block on the crypto protocol that split from the bitcoin network, now the fourth largest by total value, after a years-long disagreement about the course the cryptocurrency should take.

For supporters, the main goal for the competing protocol was increasing the block size to allow more transactions, and in turn more users, all in an effort to make cryptocurrency competitive with more traditional payment rails. But whether or not that plan would work was very unclear, if not highly criticized.

Yet, over the course of the last few months, around the same time developers raised its block size parameter from 8 MB to 32 MB (bitcoin’s limit is ~1 MB), bitcoin cash has seen an influx of new projects, including social media and tipping methods, taking advantage of its blockchain.

And since many of bitcoin’s most active developers were adamantly against the tweaks bitcoin cash stood for, the developers behind the alternative protocol see these apps as proof their offering is competitive.

Looking through the applications that have sprung up, it’s clear that those drawn to bitcoin cash are trying to carve out a unique role for the cryptocurrency – one that aligns with the initial value proposition touted.

Many of the applications target users with cheaper, faster payments, like Blockpress, a social media platform, and Centbee, a wallet that uniquely integrates a user’s phone list.

But there’s also some work being done to make bitcoin cash a more complex blockchain, able to handle smart contracts and token launches.

“The tremendous accomplishments that the bitcoin cash community has managed to garner in a year of existence with a new ticker, wallets and an all-around ecosystem has been phenomenal, and we hope to continue and increase on this trajectory,” Eli Afram, founder of Bitcoin Cash Australia, an advocacy group for the software, told CoinDesk.

He added:

“There’s a lot happening. We truly have an app explosion in full effect.”

Space and fees

For many app developers, the lure to bitcoin cash is all about the protocol’s unique selling proposition – basically, more space.

Take for instance Memo.cash, a social media platform resembling Twitter, where users can post short messages that get stored on the bitcoin cash blockchain never to be erased. Since bitcoin cash allows for more data to be stored in each transaction, supporters argue bitcoin isn’t capable of supporting an app like Memo.cash.

“Many of these apps cannot work on the bitcoin network, simply because of certain limiting changes that have been made to the codebase. For example, the OP_RETURN function on bitcoin cannot take the same size payload as bitcoin cash, meaning an app like Memo would have a restrictive message size limit,” Afram explained.

On top of that, more space within blocks also means reduced fees for users sending transactions.

For GitCash, which launched just last month, this is integral since it allows users to tip – no matter how small the amount – developers for their work on Github. The project emphasizes that bitcoin cash’s model allows fees to stay low even if usage increase dramatically.

And for developers that work on open-source projects generally on a volunteer basis, this app will likely be a welcome development.

Yet, the timing for these apps that focus on fees could be off.

Many of these developers compare the fees on bitcoin cash to those of bitcoin during the latter’s most popular time period, whereby fees eclipsed $20 per transaction. But right now, bitcoin fees are rather low – sometimes even lower than those on bitcoin cash today.

Still, supporters say it’s still worth it to build on bitcoin cash since it’s future-proofed, meaning ready for a day when usage of the protocols picks up again.

Alejandro de la Torre, vice president of business operations at BTC.com, a mining and wallet provider focusing on the cryptocurrency, told CoinDesk:

“We think these community-driven networks can be very effective at moving the needle in the adoption of bitcoin cash as a medium-of-exchange, which is the primary reason it was forked and developed.”

Scalability concerns

But even while all this innovation happens, there’s a big downside to increasing the amount of data kept on a blockchain – namely, it could make it much harder for users to run the underlying infrastructure that makes bitcoin cash tick.

That’s why in bitcoin, many developers are heads down working on the lightning network, an in-progress layer for pushing transactions off-chain.

Despite these alternatives, bitcoin cash supporters think raising the block size is a better and easier solution.

“[Bitcoin cash’s] last hard fork increased the block-size to 32 MB, virtually eliminating the risk for any network congestion due to scaling and paved the way for a low-cost transaction super-highway,” de la Torre said.

He believes that by making that one small change, bitcoin cash will avoid scaling problems other blockchains have faced.

Referring to the crypto cat app that went viral and caused high fees and transaction backlogs late last year, de la Torre said: “I don’t think we’ll see the bitcoin cash network get clogged by CryptoKitties anytime soon.”

And for de la Torre, the fact that there’s so much space within bitcoin cash means that plenty of other long-heralded use cases for cryptocurrency might finally see some pickup.

“In countries such as Venezuela where monetary inflation is estimated above 40,000 percent, the utility of this new block space to open up fast, low-cost transactions as an alternative payment system to local fiat has been more than salient,” de la Torre added.

Yet, that hasn’t necessarily happened in practice so far – not for bitcoin cash, which only sees a fraction of the transactions the main bitcoin network sees and is worth about a tenth of bitcoin by market cap, but also not for bitcoin either.

The ‘wormhole’

And not only are developers thinking about high-value payments use cases, but the use case that garnered incredible attention last year – the initial coin offering (ICO) – is also being considered for bitcoin cash as well.

Pointing to a long-standing upgrade proposed by Bitcoin Unlimited developer Andrew Stone, Afram told CoinDesk: “There are teams racing to produce a token protocol that will enable countless new use cases, which I’m very much looking forward to.”

And a couple weeks ago, cryptocurrency mining giant Bitmain released a proposal for adding a token mechanism to bitcoin cash, perhaps eerily dubbed “Wormhole.”

The idea with behind these proposals is to make it possible to spin up new tokens on bitcoin cash.

But just as ICOs broadly have taken vast amounts of criticism, the idea is sparking controversyamong bitcoin cash users and developers too. Some have argued that the birth of tokens on the network will poorly impact the protocol and even worse, could introduce vulnerabilities that could put users at risk.

Still, that isn’t stopping several developers from trying to implement the upgrade into bitcoin cash’s next hard fork, coming in the fall.

As such, crypto tokens could be the next step towards differentiating bitcoin cash from its rival, bitcoin, and adding features that allow it to compete with even more protocols.

Birthday candle image via Shutterstock

 

South Korea Plans to End Major Tax Benefits for Bitcoin Exchanges

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Stripping Away Tax Benefits

The South Korean government has announced its proposed Revised Tax Law 2018. In the official statement published Monday, the government wrote, “from next year, virtual currency handling businesses will be excluded from the industries eligible for the tax reduction for SMEs [small and medium-sized enterprises].”

South Korea Plans to End Major Tax Benefits for Bitcoin Exchanges
The South Korean government announcing 2018 tax amendments.

News1 explained that crypto exchanges “have been considered as venture companies or small and medium-sized businesses for tax purposes until now,” allowing them to benefit from considerable income tax deduction. Citing other favorable tax treatments such as depreciation of assets acquired during the first four years, the publication elaborated:

Under the current tax exemption rules, income tax and corporation tax are reduced by 50% to 100% for five years for business startups, SMEs and venture companies.

Crypto Exchanges to Pay Higher Taxes

South Korea Plans to End Major Tax Benefits for Bitcoin ExchangesAccording to the news outlet, the government has decided to exclude crypto exchanges from the list of entities eligible for SME tax deduction “because the cryptocurrency trading business lacks the effect of creating added value.” The revised tax law will be submitted to the National Assembly and, if passed, will go into effect next year.

Crypto exchanges are currently liable to pay corporation tax of up to 22%, Seoul Finance described, adding that “considering that virtual currency exchanges earned huge amounts of money in the last year and earlier this year, it is estimated that the amount of exemption would be considerably large.” The publication conveyed that under the current setup:

Bitsum exchange, which is estimated to have net profit of over 250 billion won [~US$223 million] last year, should pay 54.4 billion won [~$48.6 million] in corporate tax but it is expected to save 27.2 billion won [~$24.3 million] since it receives 50% reduction.

However, “taxation on the sale of cryptocurrency was not included in the amendment bill…based on the judgment that more research is needed,” the publication emphasized. “The government has been considering imposing capital gains tax virtual currency trading profits since early this year, but no specific taxation bill has come out.”

Written by Bitcoin.com

 

 

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