Crypto Arbitrage in Asia Has Fallen, But is Still Profitable

Crypto arbitrage in China used to be a thriving business due to China’s infamous ban on almost everything related to digital currencies. However, the demand for so-called Bitcoin “mules” and peer-to-peer (P2P) platforms has fallen, Reuters reported.
Arbitrage is the simultaneous purchase and sale of an asset to profit from a difference in the price. It is a trade that profits by exploiting the price differences of identical or similar financial instruments on different markets or in different forms.

After China closed their crypto exchanges for good, an underground system of “mules” and P2P networks sprung up to fill in the void left by the strict measures against them. An underground trader would buy cryptocurrencies in other markets and sell them at a premium to investors in China, who are ready to pay more since they have no other choice.
When January saw the height of demand after the sky-high prices of December, underground traders were able to sell Bitcoin for 30% to 40% percent more than its price elsewhere. But this premium has fallen to around 7% percent since the business became swamped with Bitcoin mules, who physically carry cash across borders for the trades. Cryptocurrency funds and individual computer-assisted traders have also piled into the market.

Li, a Canada-based Chinese banker in his 20s, is one of these underground traders, told Reuters that his arbitrage activity nets him about USD 18,000 a month on a trading volume of about half a million dollars.

One form of crypto arbitrage belonged to geographical differences, where traders would buy coins in crypto-friendly countries and sell them in banned markets. Another used crypto exchanges, where some platforms would offer better prices, so they could sell those for a profit on more other platforms.
Although such profits are not very significant when trading among large platforms, it is not unheard of to try. A helpful tool would be a price tracker, developed by Cryptonews.com, where traders can see which platforms are the friendliest for both buying low and selling at a profit.

For example, at press time, one can buy bitcoin at Bitstamp for USD 7,368 and sell at HitBTC for USD 7,595.

Source: http://www.cryptonews.com

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Why Cardano Could Beat Ethereum and Bitcoin

For many cryptocurrency investors, once you get past the big names at the top of the list of currencies by market cap, the next contenders are essentially interchangeable. For supporters of Cardano (ADA), however, there are many reasons to set the number 7 cryptocurrency by market cap apart from its competitors. Others find the ecosystem behind ADA to be overly complicated, preferring to pass it by in favor of simpler projects. Nonetheless, Cardano could potentially overshadow major players like bitcoin and ethereum in the future.

Cardano is unique in comparison with other digital currency projects for several reasons. First, it defines itself as a third generation blockchain, meaning that it attempts to solve problems which have plagued its predecessor coins and which have yet to be resolved more broadly across the industry. Second, and perhaps more importantly, Cardano is not fully implemented at this stage. It is a project in development, with a network that is not completely deployed. Supporters of ADA follow the progress made by the coin’s developers on their website, which includes detailed updates about advancements to the coin and the network. These supporters also tend to believe that, once the network is fully deployed, Cardano could topple some of the most prominent digital currencies of today.
Cardano, Ripple, and Ethereum

One of the targets that Cardano developers have in mind is Ripple (XRP). XRP has made a name for itself through its development of payment solutions which involve centralized agents like banks. XRP transactions are incredibly fast, meaning that it has wide appeal for everyday business uses at this stage.
Where Cardano could beat XRP would be in scalability. According to Zycrypto.com, Cardano in implementation has recorded 20-second periods with a processing capacity of 257 transactions per second. Although Ripple itself is built with scalability in mind, Cardano offers another approach to layer-based architecture that could give XRP a run for its money.

Another contender is ethereum. Ethereum dominates the smart contracts space; however, Cardano also aims to offer smart contracts which could prove to be more efficient than those of ethereum. Ripple is reportedly also considering a smart contracts component as well, so ethereum’s period at the top of the list may be short-lived.
Investing in cryptocurrencies and Initial Coin Offerings (“ICOs”) is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or ICOs. Since each individual’s situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein. As of the date this article was written, the author owns bitcoin and ripple.

Source: http://www.investopedia.com

Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

 

John McAfee Charges USD 105,000 for Promotional ICO Tweet

Self proclaimed “crypto visionary” and software tycoon John McAfee revealed recently that he charges USD 105,000 for each tweet he sends out promoting Initial Coin Offerings (ICOs). Last week, he tweeted that his team had published a guide to his promotional tweets and posted it to McAfee Crypto Team, an organization McAfee and his team put together to promote ICOs.

Apparently, “nothing can match the power of the McAfee effect,” according to their website.
This bold statement is not out of character for McAfee and he knows it. He writes, “It’s self-aggrandizing and ego-stroking for us. However, if you’re planning an ICO, trying to boost a coin, or want to shine a light on your latest project, you should overlook our swollen egos and see.”

It would seem that although each tweet costs USD 105,000, the cost per ‘investor’ is USD 0.13 when divided between his 810,000 followers. They also used a poll made by McAfee on Twitter, claiming that 259,000 of McAfee’s Twitter followers “have more than 50% of their total assets in cryptocurrencies,” and that 224,000 of his followers represent, “at a minimum, USD 4.48 billion in crypto investment.” The site claims that the numbers are arrived at through “statistically valid percentages.”

It would seem that his faith in the power of his tweets is not misplaced either. Recently, over the course of three weeks, Motherboard tracked McAfee’s tweets about altcoins, and found that their market value did shoot up. Burstcoin’s value, for example, jumped 350%.

Source: http://www.cryptonews.com

Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

BITCOIN Price Will Be 30,000$ By End Of The Year

Bitcoin could be set for a dramatic rise in value by the end of 2018, founder and chairman of investment firm LDJ Capital, David Drake has predicted.
Speaking on the future of the cryptocurrency after the First G20 Meeting of Finance Ministers and Central Bank Governors of 2018, he told Bloomberg that it had been “a cold winter.” By year end, however, he said bitcoin’s price could reach $30,000.

Cryptocurrencies were high on the G20 agenda, but ministers did not agree on what Bloomberg called “a uniform clampdown on the currency.”
“I’d say this year is a cryptocurrency Wall Street time and … we think cryptocurrency on the bitcoin will be worth $30,000 at the year end—it is limited,” Drake said.
It has been a tumultuous year for the cryptocurrency, whose value shot up from some $950 in March 2017 to record highs of nearly $20,000 in December 2017, as tracked by CoinDesk.

Reports of bitcoin millionaires flooded in as cryptocurrency newbies rushed to get in on the action. Some governments, skeptical of the decentralized digital currency, have put legal restrictions on bitcoin.
As well as the G20 meeting, Drake reacted to recent comments made by Twitter and Square CEO Jack Dorsey to U.K. publication The Times. Dorsey predicted bitcoin would overcome problems like scaling and eventually become more important than even the dollar.

“The world ultimately will have a single currency, the internet will have a single currency. I personally believe that it will be bitcoin,” he said. “This would happen over the next decade, but it could go faster.”

Drake told Bloomberg he thought Dorsey might have meant bitcoin would become an “acceptable currency on a global basis,” because it was the first of its kind. Of digital currencies, he said, “There will be hundreds. Today you’ve got 1,500.”
Some of the cryptocurrencies on the market are “fraudulent,” “weird” and “strange,” he added. Bitcoin, he predicted, would keep its place as king of the digital currencies.

Source: http://www.newsweek.com
Image Source: Investopedia

 

TRON (TRX): Zero Chance Of Coming Back?

Hello TRON (TRX), it’s a bad day!
TRX is sliding pretty fast as its price drops double digits  after successful testnet launch.

One thing is indisputable here: The TRON Foundation and the TRX team have delivered yet another milestone as they inch ever closer to their mainnet.
It is one step that should help bring a new era to the revolutionary ideas behind the project. And as the team presented what they called “the future of TRON” expectations were moon high for TRX and its fervent community.
However, what looked like the beginning of a new dawn has quickly been followed by a cloud of despair for enthusiastic TRX investors. The falling price goes against what mostly happens when positive events like this one take place.
Beginning of new era, but on a very low note!

At the live launch presentation, TRON founder Justin Sun emphasized that what he really cared about is the future of the project and not the price of its native coin, at least not in the short-term. He talked about the how this important event marked the completion of the necessary infrastructure needed for TRON to finally deliver on its blockchain ideas.
At the event, it appeared all was set and a celebration was on the cards. On his Twitter page, Justin promised that the future had just begun and TRON would keep going.
But in a matter of hours, TRX has plummeted at a market-high -20.19% over the 24 hour period. This comes after the cryptocurrency had surged in value to rise to the top 10 in the market. But hardly had the microphones been disconnected than prices began dropping and now TRON is down to 13th position.

At the time of writing, TRX is the worst performing coin in the market’s top 50 as can be seen on the 24h charts by CoinMarketCap.om. The coin opened at $0.0425 on Saturday morning and briefly rose to trade at $0.0428, but has shed ground so quickly to leave some investors cursing the losses they have incurred. It is now trading at $0.0355.
Many hoped that the price would appreciate after the launch. It still may, but the events immediately are confounding, to say the least. The launch of the test net was perhaps over-hyped by the TRON team and its community. Bagholders believed the price would surge, but could now be panic-selling to avoid getting into even more murky waters. They are the ones calling for sell-offs. However, others believe the long-term value of TRX is not debatable with such a step as the test net launch. For such a group, hodling is the best thing.

Coin burn?

The 65+ billion TRX in circulation is one aspect that plays against the value of the token. There was a great deal of hype concerning a coin burn that would have a big impact on the price value. It was expected that TRON would undertake a coin burn to help give the value of TRX a boost. An announcement that the community had been holding out for did not come. And that seems to have hurt sentiment for some, prompting a rush to sell. Nevertheless, a mere coin burn can’t guarantee that this token will rise overnight.
Even though this test net represents a definite step in the right direction, other factors could come into play and distort everything. And to echo TRON founder Justin Sun, the belief in the future of the project should supersede short-term price values. The coin burn represents one way in which the team could ensure a balance in supply-demand, and therefore, value.

Source: http://www.stocksgazette.com

Ethereum Drama, More Bans and Lawsuits: This Week in Crypto

 

Price Watch:

Bitcoin is down 20% this week completely retracing the past week’s gains. Despite periodic gains this week, the market still finished down significantly from last week posting another double-digit loss. This has been attributed to everything from child porn to market manipulation but the most compelling reason suggested so far has been the futures markets. In any case the bulls are still recommending everyone HODL on. Bitcoin cash is also down 30% this week despite BitPay’s adoption of the technology.

Ethereum is down 27% this week in yet another of a long series of price drops from it’s high of almost $1,500. This follows the trend we’ve seen over the past few weeks of correlated movements between the two currencies. Some have pointed to this correlation as a sign of an immature market.

The entire crypto market is down 20% this week completely retracing the 10% increase seen last week. These numbers are similar to the 20% price drop we saw 2 weeks ago. Despite all this, to some a huge recovery is imminent.

Bans & Warnings:

Kazakhstan’s National Bank may ban cryptocurrencies. This follows a trend of countries opposing decentralized cryptocurrencies for fear of money laundering. Leading the charge was the Russians when Putin announced earlier this month that regulation would be coming in March and plans to launch its own currency.

Another warning by Nigeria was issued this week on the use of cryptocurrencies. Nigeria took a hard stance yet again warned against cryptocurrencies. Their points are not entirely unfounded with a history of Ponzi schemes involving crypto in the region.

Denmark blocked trading this week citing different concerns than those of Nigeria. The concerns of Denmark were focused on a lack of transparency around money laundering. They appear to have echoed the sentiments of the G20 summit last week and their concern is not unfounded.

Lawsuits over bans were filed this week by The Russian Association of Crypto-Currency and Block-Finish (RACIB) and other industry associations after cryptocurrency advertising bans by several prominent companies. The group claims collusion amongst advertisers and calls the moves a “special indignation at the crypto community”. The lawsuit was filed against Google, Twitter, and Facebook. The move appears to be aimed more at deterrence to stop other companies like MailChimp from continuing to follow suit.

Official Currencies:

The Bank of England is testing a blockchain system this week for real-time gross settlement (bank to bank transfers). The bank, which is a centralized and government-owned bank, is part of the bank’s strategic plan for 2020. While just a proof of concept, its aim is to become “mature enough” for use with other banks.

China declared cryptocurrencies a top priority for 2018. The central bank has created a science and technology team aimed at tackling the new technology which has already applied for 22 new patents. In an interview discussing the developments, a Chinese official talked about an official cryptocurrency while simultaneously bashing existing currencies Bitcoin and Ethereum.

Other news:

Money Laundering Arrests: In the U.S. a drug dealer has been arrested again for money laundering via digital currencies. This goes to show that the concerns repeatedly brought up at the G20 summit were not unfounded. While money laundering charges are not uncommon this is one of the first cases to be charged under Arizona’s new HB2417 law.

Reddit Disabled Bitcoin Payments this week among concerns around Coinbases ability to process payments. Coinbase has struggled recently and revamped its commerce platform. While not likely to have a large material impact on either company, Reddit was an early customer of Coinbase reporting processing $1 million in transactions a month in 2013!

More Cryptojacking has been reported using a vulnerability disclosed way back in 2013. While not the first, or biggest crypto jacking campaign, the miners have gotten away with nearly 320 Monero ($63,000) so far.

The U.S.Treasury further legitimized crypto this week when it published a post offering advice to Government agencies looking to use cryptocurrencies. The post recommends including sceptics on teams investigating blockchain saying that a team with “only pro-blockchain people can be blinded by the hype and force a square peg into a round hole”. The note comes among criticism aimed at the CTFC chairman for discussing blockchain, as critics say that in doing so he might legitimize it.

Ethereum Infighting was apparent this week as the community prepares to face off against ASIC miners. ASIC mining has been a touchy subject in the community, but this week a developer has opened an Ethereum Improvement Proposal to discuss measures aimed at stopping the controversial practice. With support from users, the community is expected to take action in the coming weeks.


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Author Jake Sylvestre

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