Era violas or the last screeching hamsters? Meme-the week in review

This week, the bitcoin began to take the position, but the altcoins market is sharply «turned green». How to react then? We have a couple of options.

First, Yes, not all were ready to drop bitcoin that did something like that…

Many did not expect.

But we should not fall into depression.

We passed and such.

Even learned how to respond.

If you do not know what to do, it is better to ask advice from experts.

But the holders of altcoins believed, hoped, and still waited!

Laughed at them, humiliated them…

…but they stayed together! In sorrow and in joy, in red and in green.

However, one should not forget that things can change…

When it finally gets to you… #KeanuReeves from r/cryptomemes

After all, anything can happen.

Good luck, love and patience. Well all the while.

You can still follow us on Twitter. Not suggesting anything, but we love dogs)


Price Beam increased by 11% after the announcement of the listing on Binance

Cryptocurrency exchange Binance announced the addition of the listing of the privacy-oriented cryptocurrency Beam.

After the announcement at 10:25 (Moscow time) on the listing on the stock exchange price of the token increased by 11.5% from $1.43 to $1,59 (according to CoinMarketCap). At the time of writing, the coin was trading at $1.52 m.

Data CoinMarketCap

Blog exchange reported that trading token will open on 20 September at 15:00 (GMT) in pairs with bitcoin, BNB and USDT. Users have already had the opportunity to make deposits in a Beam to prepare for the trade.

However, an hour before the start of trading Binance suddenly announced the postponement of the start of the day.

According to Binance, there was «some problems with the wallet and the nodes of the network» when making a Deposit.

We will remind, last month the network Beam was the first hardwork.


In Ripple refuse to recognize the token XRP securities

Ripple filed a motion for the dismissal of the SEC lawsuit against the company by a court without consideration, saying that XRP are not valuable paper.

Last month a group of investors filed a lawsuit demanding to recognize the tokens XRP securities that are not registered in the Commission on securities and exchange Commission (SEC). In response to this Ripple filed a petition for abandonment of the claim by the court without consideration. The document says:

«Buying XRP is not an «investment» in Ripple, there is no common enterprise between customers, Ripple and XRP; there were no promises that Ripple will help to generate profit for holders of XRP and the XRP decentralized registry».

The firm also said that XRP is the currency. Ripple noted that the court «should not challenge» whether the securities laws to XRP. In the petition the company claimed that the lawsuit was filed too late.

«According to the claims of the plaintiff, the Defendants offered the XRP to the public during 2013-2015. Accordingly, the period on the filing of claims expired in 2016 and the claim could not be filed later than may 2018. Thus, the claims in respect of the application of the securities Act, filed the claim late and shall be cancelled by the rule of limitation,» reads the statement.

Another argument Ripple is that the company did not sell XRP tokens directly to the plaintiffs.

«Countless other XRP holders in addition to the Defendants (including the plaintiff) sell XRP on stock exchanges, making it impossible for making a reliable conclusion that the plaintiff originally bought XRP from the Defendants,» reads the statement.

Recently, a user of the social network Twitter with the nickname Crypto Bitlord has issued a petition on the website in which he called the Ripple to stop «dumping» on the market owned by XRP tokens.


Why the price of bitcoin is irrelevant

Bitcoin is a very new technology, even though the concept underlying it, has been around for several decades. The issue of double spending is solved, and this means that you can use to control cash account electronic certificate and be sure that while you’re controlling him, no one else can spend that certificate. This is an unprecedented paradigm shift, the consequences of which are still not fully understood and for which you have not yet created the tools that allow you to fully use all the advantages of this new idea.

When it comes to business development, architecture, it turns out that the solution to this problem requires some new thinking. The first email providers misunderstood they sell the service for many years. So it is with Bitcoin: in order to fully realize its potential, we need to develop a new and correct way of thinking about it.

Original Hotmail interface

Hotmail used familiar technologies (the browser and email) to create the best way to access e-mail and deliver it; the idea of using a mail client such as Outlook Express has been replaced by web interfaces and messages «in the cloud» that gives a lot of advantages in comparison with the individual customer, keeping the mail locally on your hard drive.

Bitcoin, which will change the way you wire the money, should be perceived as an independent phenomenon and not just another form of electronic money. To accept Bitcoin as money in the same way is absurd, and to perceive email as another way to send letters by regular mail; email not only replaces the old mail, but also completely changes the way people send and receive any messages. It’s not just a one-dimensional replacement, or improvement has long been an existing idea or service.

As I said, Bitcoin is not money, it’s Protocol. Treating him this way based on the right prerequisites, you can begin to gradually enter the Bitcoin in the correct context that will allow you to make more rational assumptions about what services based on it can benefit.

Each element of Bitcoin is the text. It’s always text and never ceases to be. It is a fact. And as the text, he is protected by the provisions on freedom of expression the constitutions of civilized countries and has a guaranteed and irrevocable rights.

If Bitcoin is a Protocol, not money, the creation of trade cryptocurrency exchanges that mimic Forex brokers, stock and commodity exchanges, is not the only method of determining its price. You would not have to organize commercial exchange of emails to determine the cost of email services. So it is with Bitcoin.

Continuing this analogy, when you open in your Gmail account window and type in it the text that you write «letter». Then you hit «send» and the data is sent through your ISP, through the Internet, the ISP of the recipient, and then displays on the monitor the final destination. The same is true for Bitcoin: you introduce money via a service from one end and send bitcoins to the recipient, without an intermediary handling the transfer. Once Bitcoin will do its work by moving mortgaged your value for the email address of the recipient located anywhere in the world, it is necessary to «read», that is, bring back the money – about the same as when your letter is displayed on the monitor of the recipient.

In the event the e-mail after you have read this letter and the transfer of information has taken place, it remains for you nothing more than record the fact of transmission of information, and you archive the entry. Bitcoin leads for you this archival record in the blockchain, and good service will keep you extended information about committed transactions and locally, but what you need as the recipient is services or services, not bitcoins themselves.

The true nature of Bitcoin is to serve as an instant payment method (though not being a money) available anywhere in the world. This is not an investment, and storing bitcoins in the hope that they will rise in price is all the same what to store old e-mails or PDF in the hope that in the future they will have some additional value. This makes no sense. Of course, you can hold the bitcoins and watch them grow in value (and they will), but then you need to have strong enough nerves to safely treat episodes of sharp depreciation, which on the way to the adoption of Bitcoin will be many more. Companies that need to store bitcoins, may also disturb the value of BTC, if their business models are open and are exposed to the market. Company with a closed model, you have full control, and they do not need to worry about exchange rates. They can build the process to move unlimited amounts of Fiat with a very small amount of bitcoins.

Even with the impossibility of double spending and the uniqueness of each bitcoin, they have no intrinsic value, unlike a book or any physical object. They can’t become more valuable. Misguided approach to spread Bitcoin, because Bitcoin behaves like money because it can’t be spent twice. For misperceptions about the true nature of Bitcoin has already become hard to see his double nature is both digital and avoid double spending of tool.

The Candy Razzles. If they are chewed, they turn into chewing gum. Before you started to chew than they are: candy or gum?

Bitcoin is a digital product, possessing all the qualities of information that make it not scarce. He occupies a special place somewhere between the goods and services of the physical world and infinitely rich digital world of information that belongs exclusively to the digital world, but it has characteristics of both worlds. That is why Bitcoin has been misunderstood by a wide range of people and why a new approach is needed to design a business around it.

All this partly explains why the price of BTC on the exchanges has actually value for the consumer. Even if the price of BTC will fall to 1 ¢, this circumstance does not affect the amount of money that introduces the sender or the recipient displays. If immediately after the transfer you exchange bitcoins for goods or Fiat currency, then get on the other end the same amount that was sent, regardless of how many at that time BTC was worth.

Think about it this way: suppose you want to send someone a large text file. You can either send it in its original form, or compress it to zip. The size of the compressed text file can be on 87% smaller than the original. Transponer this idea in Bitcoin, the compression ratio is the exchange rate of BTC. If BTC is worth $ 100 and you want to buy something from someone in India for $ 100, to send this amount to India, you need to buy 1 BTC. If BTC is worth 1 ¢, then send 100 $ you will need a 10 000 BTC. This corresponds to compression ratios of 1:1 and 10,000:1 respectively.

You send the same 100 $, no matter whether you are using for that is 10 000 or 1 BTC. Bitcoin price has nothing to do with the transmitted value, as well as zip file «no case» to what information is contained within them. And Bitcoin, and zip just the protocols do their job. As long as the price of BTC are not equal to zero, it will be used as well and will be useful to the same extent as if they were very «expensive».

With this in mind it becomes clear that in order for Bitcoin functioned in accordance with its true nature, we need a new services for faster and easy conversion of money to Bitcoin and back.

The business model of existing exchanges do not correspond to the true nature of Bitcoin. They use the model stock, currency and commodity exchanges of the twentieth century, just transferring it to Bitcoin. Interact with these exchanges and non-trivial for the average user may present a frightening prospect. In some cases, to wait for the transfer to Fiat currency when withdrawing them from your bitcoin-wallet account for up to seven days. Though in that is no fault of the exchanges, this is a very real impediment to Bitcoin could be used according to its nature and unleash its potential.

Imagine this situation: you receive email from other side of the world and see in your browser a notification in the form of a line with the subject. Then you send your ISP a request to deliver this letter, then have to wait seven days until it is physically delivered to your Inbox.

A letter for you, baby!

It is a perfect absurdity, and yet, that is what is happening with bitcoin, and without any technical reasons.

It is clear that we need to rethink created around Bitcoin services, and how we understand its very nature. Rethinking services is normally part of the business, and we should expect that business models will fail, and the first members of the new markets to be pushed to the sidelines as the market development and the continual appearance of new iterations.

With this in mind, focus on the exchange rate of bitcoin, using unsuitable for this new software product business model is how to place the detector of breathing methane Canary in a mine full of people (breathable oxygen). Bird dies while in the air there is nothing wrong, the miners quickly evacuated, throwing gold veins, thinking that all it’s going to explode, when in fact no problem.

The activity of day traders, speculating on the bitcoin exchange rate causes price fluctuations. It is an artificial signal that has nothing to do with real demand for bitcoin and its turnover as a tool to facilitate trade.

Bitcoin and the underlying his ideas has come to stay. With the growing number of people who will install and use the program clients – as in the case of Hotmail – Bitcoin eventually reaches a critical mass, and then exponentially spread across the Internet. When this happens, the right business models will arise spontaneously, they just become obvious, as well as Hotmail, Gmail, Facebook, cell phones and instant messaging have long been made to seem completely natural.

But it will happen in the future. I think now quite a few people are willing to speculate on the value of bitcoin because, although it may be even advantageous, much more money can be earned by providing excellent services using all the advantages of Bitcoin.

One thing is certain: the speed will be crucial for any future business models based on Bitcoin. Successful startups will be the ones that will be able to provide instant satisfaction to all participants of the transaction. Even though the price volatility of bitcoin will inevitably stabilize, because in itself it does not make sense, an instant convert in money or goods will remain in demand in any business, built around Bitcoin.

The needs of bitcoin businesses create a lot of new challenges from the point of view of performance, security and new thinking. In the process of overcoming these challenges would result in new practices and software on the topic which now we can dream up.

Finally, when the Fiat currency will be no more, and the chaotic transition zone between Fiat and Bitcoin will be eliminated, then all prices will be already nominated in bitcoins and the volatility is simply no space because the buying and selling of something will be used only bitcoins. If you know chemistry, it will be like to achieve the balance reagents: you can shake them to mix after completion of the reaction will remain inert product. Now, against the amount of Fiat currency in the world, a relatively small capitalization of Bitcoin can expand and contract very quickly and in a large range. It can grow to unimaginable for many, and then again to decrease. As it will become more and accumulate mass (the price Vietnam terms), these fluctuations will become less and less. Bitcoin will remain the same – that its users post some numbers as signals and react to them.


Stabilin — among strangers, a stranger among us?


5 Sep Binance, the largest crypto currency exchange market, announced the launch of its own stablon tied to the U.S. dollar. Binance USD (BUSD) will be released in conjunction with CryptoStream Paxos, Paxos operator stablon Standard Token (PAX), which will be engaged in the provision BUSD. In anticipation of the announcement of the new stablein, the experts of the crypto currency exchange OKEx published a report on current trends in the market tablconv. Proceeding from it, as well as from a number of other studies, DeCenter understand what is happening in this segment of the cryptocurrency sector, as well as what you can see on the horizon the end of the year and the beginning of 2020.

Stablon is a cryptocurrency, which should be «stable». And almost always we are talking about stability in terms of price. Indeed, when there is a significant decline in the market, then the analyst studying the top 10 cryptocurrencies by market capitalization, would definitely stay in the sixth spot, where is stablein Tether whose price is $1. Yes, you can see how sometimes this asset fluctuates a few cents up and down, but in General it behaves like the Saudi Riyal, which prikreplen US dollar: thus, from January until the beginning of August, the average volatility of the Tether is 10%, while in bitcoin the same figure is 69%.

100% redundancy does not guarantee stability

But even in the face of such «stability» at tablconv there is no guarantee: the more such coins as Dai and NuBits, demonstrated considerable volatility — 27% and 37%, respectively. The fact is that, as in the case with Saudi Rial, and in the case of, for example, with a Tether, much discussion has developed around the question of how enough reserves to maintain parity with the U.S. dollar. According to the latest information about Tether, whose market capitalization is $4.037 billion, the project has only partial support at 83.75%.

Reported is a shareholder of crypto currency exchange Bitfinex (Tether is one of the projects of the company iFinex, which in turn controls Bitfinex) Zhao Dong believes that 83.75% — a very significant figure. Although this can be questioned: if we talk about redundancy, it is likely that investors can satisfy only the presence of absolute security. Otherwise it becomes unimportant a factor as there are Tether «under the pillow» of dollars. Meanwhile, the adoption of the Dong also leads to the question of whether there is an independent audit statement proving that the funds of the project really is? In the past Tether tried twice to negotiate the audit of their finances — in the first case, the case does not come, and the second received the conclusion of the audit was not, as was provided by conventional law firm.

Regulatory risks — the recipe for «funeral» tablconv

In fact, even in the presence of absolute security tablconv, be it Fiat, gold or even collateral in the form of a computational scheme that allows to regulate the supply and demand in the market to prevent strong price fluctuations stablon — all this does not guarantee that the digital asset will not collapse or even drop to zero. One of the main factors of such a scenario for any stablon is regulatory risk.

That’s exactly what it says in the report OKEx. Indeed, almost all the projects tablconv (except some that can be called conditionally decentralized) centralized and are «under the sword of Damocles» of the regulator. If the assets of the companies that run stabilini, will be frozen, and in relation to their founders suddenly there are complaints by enforcement authorities, so it can be «buried» any similar project.

Why regulators don’t like stabilini?

Analysis of the legal relationship to stabilium in different countries leads to the conclusion that from the illusions that such crypto-currencies «can do more to please the regulators,» is to get rid of.

Stabilini are irritating marker of a new financial technology, which indicates that the financial system could eventually do without banks: stabilini more convenient to transfer than cash and non-cash money, they can obtain a percentage, and to borrow — the options gives the development of the institutions of the cryptocurrency ecosystem. However, no Central Bank in the world, as well as the financial regulator not to applaud the development of something, which creates risks for the existence of the modern banking system.

You long to prove that with the help of modern tablconv banks will work better, but the truth is that with the advent of cryptocurrency banks have to go back in time: the cryptocurrency ecosystem more companies enables financial and investment transactions without going to Fiat, and therefore not having any relationship with is that classical (and more correct to say — the dying) structures of the global financial market.

Talking about it in the IMF, whose experts believe that stabilini able to nullify the demand for Bank deposits, and without deposits of credit organizations simply can not exist: the share of funds that are transferred and the Central banks as funding, are unable in most cases to exceed 15% so as not to create risks of instability in the financial system.

Algorithmic stabilini will lead to the creation of a new type of Central Bank in Europe

In the August report of the European Central Bank (ECB) noted that without the blockchain stabilini turn into just another version of a digital money with the software. However, the use of technology distributed registry makes stabilini fundamentally different asset that plays the role of a «Bank in your pocket». Researchers believe that most «independent» stablename in the future will be algorithmic, that is, those that support the price of the asset in automatic mode and is not tied to Fiat money or any assets.

Currently, such projects are just beginning to develop, and the total capitalization of issued algorithmic amount of cryptocoins for the period from January to August this year amounted to €9.7 million In the ECB see in the future that the development of such projects will lead to the emergence of «algorithmic Central Bank», that is a direct competitor to the existing controller for the monetary system, 19 countries of the Eurozone.

The new leaders of the stock market

Noteworthy is the fact that the ECB has put into second place by the number of initiatives to launch tablconv after USA and China. This confirms once again that China not only intends to abandon the cryptocurrency, despite the restrictions, but decided to use the mechanism stablon in order to run digital yuan. Although the people’s Bank of China hastened to declare that it is not necessary to hurry with the announcement of a specific launch date, other sources confirm that this project is not just designed and suited to the final stage before implementation. It remains an open question whether applied the blockchain in their work: if it is not, then Beijing’s plans to run the asset in the U.S. as a competitor of the US dollar will collapse. However, the use of public blockchain will make this project «unmanaged» from the point of view of Beijing.

In any case, it is clear that the cohort of entrepreneurs working in the sphere of creation and development of tablconv, begins an active interest in the yuan. Thus, the Tether intends to «spin-off» from his project new stablon that will privezak yuan.

Another important act is the crypto currency exchange Binance, the largest in the world according to the claimed speed. She runs her own stablon Binance USD (BUSD) in collaboration with Paxos. This move is a kind of signal that Binance does not intend to trade cryptocurrency «crush» the U.S. dollar. And this is an important moment for American regulators who know about the coming launch US Binance — platform focused on traders with American residency. If all goes well, this stabilin may be the first stage of the project Venus from Binance, which is focused on launching localized to the local Fiat tablconv where it is the consent of the regulators.

Competition among market tablconv growing

On the market tablconv really getting hot. This leads to the fact that many of them have fallen by the wayside, and some may not even be realized, what will happen to the project cryptocurrency Libra from Facebook.

Gábor Gurbax, head direction for digital assets new York investment company VanEck, which manages assets in the amount of $49 billion, puzzled about Libra. But there is an assumption that the American regulators will not like if Facebook would do something focused on a really big mass of customers. And it found evidence that the ECB is ready to make a run of certain types tablconv, which in turn will lead to the emergence of algorithmic Central banks. And while these «toxic» for controller projects have a very limited distribution. In the US, when I heard that Libra will be to navigate, even for those users, which reaches us jurisdiction, he realized that his side there is a «cryptocurrency Frankenstein», which absorbs the fed.

How many tablconv have good prospects for successful development?

How many projects tablconv was started is an interesting question. According to the company Blockdata, they are 220, of which only 30% (66) are currently «alive» and functioning. The ECB counted even less — 54, and really working — just 24. The rest either died or are still under development or testing, such as Libra. The total capitalization of functioning tablconv in the world rose to $4.8 billion, and the volume of transactions that were committed with them in the past 12 months has reached on the assessment of the ECB’s €13.5 billion.

67% of failed projects trying to consolidate your stablon with gold. The ECB believe that this type of security carries greater risks of failure of the project. The authors of another study, Crypto Research Report, published September 3, counted 50 tablconv, backed by gold, and I believe that most of them will cease to exist. Analysts attribute this to the fact that the choice of gold as security failure, as it does not have great liquidity and its storage as inventory for the release of tablconv very costly.

According Blockdata, in tablconv can be used 15 different blockchains, and almost every other stablein in the world working on Ethereum, and the second and third place in popularity — Bitshares and Stellar, respectively. 95% of the projects used as collateral a specific asset, and only 5% are based on some mechanism. In Blockdata also believe that in the current year it is planned to launch a total of 119 projects tablconv. This will mean a big surge of activity in this area until the end of the year, as January was running only 37 of these projects.

While the projects are small — they can «stew in their own juice». However, when it comes to large scale, you can expect a positive reaction of regulators is not necessary. Therefore, the project is localized to the local Fiats tablconv Venus from crypto currency exchange Binance will also encounter squally hurricane of criticism from regulators, which, for example, trump statements about Libra, may require the organizers of such projects to obtain full banking licenses. The same trouble expect and Gram, cryptocurrency network TON from Telegram.

Virtual currency from Facebook will have low stability and reliability. If Facebook or other companies want to be banks, they must obtain the appropriate licenses and comply with all banking rules, as do national and international banks.

In General, stablein will never be «his» for classic banks. Its existence is a clear allusion to the disappearance in the near future, cash and non-cash Fiat, and financial institutions who work with him. On the other hand, stablon is «black sheep» and cryptosphere, where you can see crypto-currencies not as an addition to Fiat money, and as a more effective technological replacement.


Hong Kong is preparing to regulate the stock market


Hong Kong plans to introduce regulation of the stock market. Such a measure is necessary to protect the interests of investors. Information about this appeared in the Hong Kong newspaper «South China Morning Post» October 15. A statement was made by the Chairman of the Hong Kong securities and futures (SFC) leaves his post on 19 October. Tong Ka Shing noted that the Commission does not focus on a complete ban, as happened in mainland China since «restrictive measures are not always right and fair».

«It doesn’t work in contemporary society, closely associated with the Internet. Online trade easily erases national boundaries. Even if a ban on cryptocurrencies, the transactions are made very simple through foreign platform». Tong Ka Shing considers it necessary to resolve the question of regulation of the market of crypto-exchange, and the SFC will be very carefully to take the appropriate measures, since the exchange platforms are innovative technologies and cannot be unambiguously interpreted as securities.

At the moment the crypto exchange and the stock exchange are outside the influence of the SFC. But Tong offers equate them to traditional platforms for trading.

«SFC is obliged to ascertain whether to regulate a new platform with standards that apply to licensed exchanges, and in parallel to consider the interests of investors».

Still the regulator of Hong Kong at least twice expressed concern and warned the public about the high risk of investing in cryptocurrency and ICO. SFC urged the investors to objectively assess the potential risks and due diligence. And the ICO — to consider the quality of the securities.

In July of this year, in his annual report to the Commission on securities and futures said that «closely watching the stock market and ICOS and ready to intervene at any time when the need arises».

Company that operates the Hong Kong stock market, spoke about the initiatives of the SFC approval.

Angelina Kwan, chief operating officer of BitMEX, one of the world’s biggest cryptocurrency platform, announced that it expects the proposed circumstances for mutually beneficial cooperation with the SFC. «We hope that the actions of the regulator will correspond to the dynamics of the market,» she said in a phone interview «South China Morning Post».

Jeremy Allair, founder and CEO of the American Circle, stressed that his office in Hong Kong currently offers off-exchange trade in valuable digital assets such as BTC and ETH. The company realizes that it operates in unregulated legal field.

«We will treat the new rules, regulators, and look forward to working closely with the government in the proposed legal borders,» he said. «We are aware of the existence of real risk for investors and advocate for rules that minimize them. Therefore, we work hard to develop a constructive attitude towards regulators of all jurisdictions in the zone of influence where we’re at.»

Circle is largely financed by Chinese investors, including Bitmain, Baidu, Ease Credit and investment Bank Goldman Sachs.

«From the very beginning of our activity we took the responsibility to work with governments and regulators,» added Avenues. «We want to provide industry-leading digital assets long term.»

Hong Kong regulators are consistent policies and develop measures in order to keep growing the market. And a new Commission Chairman Tim Louis Tim lane is unlikely to deviate from the intended path.


CME Group will launch a bitcoin options in early 2020

Chicago Mercantile exchange (CME Group) announced that it will launch options on existing bitcoin futures in the first quarter of 2020.

«Based on the growing demand of customers and sustainable growth of our futures markets of bitcoin, we believe that the launch options will give our customers more flexibility in trading and hedging price risk», — said managing Director of CME Group Tim McCourt.

The new software will help traders manage risk in the spot market of cryptocurrency, and also to hedge positions in BTC-futures, he added.

Media reports about a possible appearance at the CME Group options on bitcoin appeared earlier this month. As the proposed futures bitcoin options will be settled in Fiat and not in bitcoin.

Futures contracts on the first cryptocurrency CME Group launched in December 2017. In July, the exchange recorded the highest daily trading volume — 12878 contracts. Earlier it became known that the exchange is studying the possibility of launching futures products in the second capitalization cryptocurrency Ethereum.


Ripple vs investors: the company has asked to dismiss the lawsuit on the recognition of XRP securities

The company Ripple sent a motion to dismiss the complaint on the alleged violation of US legislation on securities in the process of selling XRP tokens.

The lawsuit alleges that the plaintiff Sostak Bradley (Bradley Sostack) has no right to file a complaint against Ripple, like they did at the end of three years from the date the initial offer tokens in 2013.

The lawyers also note that Sostac not confirmed the purchase of coins in the course of this proposal and failed to submit evidence that the XRP he sold it to the defendants.

In Ripple claim that the plaintiff was part of the «General public» that bought XRP in January 2018 on the secondary market.

In addition, the petition emphasized that the Federal agencies believe XRP convertible virtual currency, so the coin is not a security.

«This is consistent with the CFTC’s position, according to which a virtual currency is a commodity», — the document says.

The main argument of the Ripple is that XRP is not a security «because it is not an investment contract.»

«Buying XRP is not an investment in Ripple, between buyers Ripple and XRP is not a common enterprise, Ripple XRP is not promised profit, and the registry XRP decentralized».

For this reason, buyers are not subject to consumer protection rules and the claim should be withdrawn without the right of resubmission, stated in the petition.

Recall, the lawsuit against Ripple with the prosecution of the company in violation of the securities legislation added new arguments in August.

It is noteworthy that this is not the first accusation Ripple in the sale of unregistered securities in the form of XRP tokens and the manipulation of the price of the asset.


The new step. Chicago Mercantile exchange announced the launch of bitain options

Group Chicago Mercantile exchange (CME Group) announced the launch of the options on bitcoin in the first quarter of next year.

CME launched cash-settled futures contracts on bitcoin in December of 2017, at the same time by Chicago Board options exchange (CBOE), the CBOE however, in March abandoned a bitcoin futures, explaining its decision by the need for a revised approach to the digital asset.

In his statement on Friday, the CME stated that the launch options on bitcoin aims to provide customers with «additional tools for accurate hedging and trading». The launch awaits regulatory approval. Tim McCourt, head of index equities and alternative investment products at CME Group, said:

Based on increasing customer demand and sustained growth in our market, bitcoin futures, we believe that the launch options will give our customers more flexibility in trading and hedging in bitcoin.

Options and futures are in many ways similar financial instruments, but have some fundamental differences. If the transaction with a futures contract the buyer is obliged to buy (or sell) an asset at expiry of the contract, the buyer of the option gets the right but not the obligation, to purchase or sell the asset at a predetermined price at an agreed point in the future. Thus the option seller has an obligation to sell an asset or to buy it from the option buyer in accordance with its terms.

Monday, September 23, the CME will have a new competitor company, Intercontinental Exchange and its subsidiary Bakkt, which will launch its new futures contracts. However, unlike cash-settled futures contracts, CME, Bakkt will offer commodity futures, and this means that customers will receive their bitcoins instead of dollar value.


When will the volatility of bitcoin?

MINSK, BELARUS — NOVEMBER 22, 2017 : Golden Bitcoins.

Bitcoin is one of the most volatile assets, in connection with than 99% of the holders of the first cryptocurrencies firmly believe, that correctly interpret the concept of «volatility». What if it actually doesn’t work that way, as is commonly thought? Director of Department of Analytics Coindesk Noelle Acheson shared his authoritative opinion about what the volatility of the cryptocurrency is actually and what it depends on. Interpretation is not what you probably expect. So how does the volatility when she are declining, and why the delusion of traders and investors significantly affect their profits? The answer to all questions will be material based on the opinion of Noelle Acheson.

What is the error

In fact, the volatility is found everywhere, not only in commercial markets. The current political situation (or even our relations in the family) she is also exposed. This abrupt and unpredictable change anything, and in most cases they are negative. Agree, good enough, when stable relationships with their parents suddenly marred by a scandal, and the political situation in the country deteriorated.

Volatility is the enemy of stability, which we usually love. However, in contrast to everyday life on the trading markets, the variability appreciated by the players. Investors hate volatility only as long as a sharp jump in the value of the asset does not make them 10 times richer and the traders happy up to the moment while behind the risks don’t have to pay too high a price. Nevertheless, it is especially common jump scare. When it comes to promotions or tokens, we are subconsciously scared to buy the asset, sorghastrum susceptible to fluctuations in value. This, incidentally, is one of the reasons why, after crypto-winter 2018 dominance of bitcoin began to rise is that the coin Satoshi Nakamoto less exposed to fluctuations.

But, in General, volatility in financial markets doesn’t work that way, as most people think. Almost everyone thinks that the low liquidity leads to high volatility. This is logical, since a relatively small trading volumes to a couple of large orders, the whales can easily penetrate the lows and highs. However, empirical studies have shown that in fact, the high volatility leads to low liquidity and not Vice versa. Players try to compensate for the risk of vibrations, hold down the unstable the asset at. In the case of cryptocurrencies this is a classic strategy HODL — we do not sell coins under any circumstances in the hope that the overall situation is equalized, and the rate will increase.

The confusion affects the crypto-market. Because of the volatility of authoritative experts call bitcoin a high-risk asset, which cannot be considered as a secure investment or to use as means of payment. However, most holders of crypto believe that over time the market will get stronger, it comes more big investors, trading volume will rise, will rise… liquidity and volatility will decrease. But a similar vision — a trap, because in fact price volatility does not, and in fact, based on this faith people build investment strategies and evaluate its portfolio, which invariably affects their profits.

But bitcoin is a special phenomenon with unique characteristics, and to better understand the cryptocurrency market and not to be trapped, it is necessary to consider several interesting hypotheses.

How to determine true volatility

The volatility divided into several types, one of which is the model of hopping diffusion. That’s what we implied in most cases when talking about financial volatility. Price jumps — the standard indicator for analyzing market crypto-assets.

When you think that over time the market will come in huge volumes and there is a high liquidity you expect that liquidity will restrain price hikes of bitcoin. You think the asset will become stable. However, the diffusive volatility is the internal features.

To predict and collect statistics on fluctuations is most often used the standard deviation calculation. Conventionally, the study of the volatility of bitcoin in particular, the company notes that the rate of the first cryptocurrency was between $9000 and $11 000. In the analysis of the captured absolutely all of the value from $9,000 to $11,000, including the most extreme point.

However, this method of calculation exaggerates the role too sharp UPS and downs that happen not so often. For example, within 5 minutes the market went to Keith and worked high order, as a result, the cost of bitcoin has increased by 20%, and then returned to the fluctuations of ±5%. This case will invariably affect the volatility analysis, although the course lasted so just a couple of minutes, because in addition to the kit at this price no longer purchase.

Indeed, with the growing popularity and liquidity of bitcoin, the likelihood of single jumps is reduced, as the market appears more and more «walls» that warrants a large amount, and punching them alone is much more difficult. This is particularly noticeable in comparison with altline: they are less popular and more vulnerable to one-time jumps. Therefore, it is market practice alcaino scheme Panov and dumps the remaining current due to the lower liquidity.

So, with the growth of liquidity of bitcoin reduced the likelihood of one-time shocks, but because of the method of calculation of the standard deviation really, it seems that the volatility is reduced. Whether so it actually? Let’s look at an alternative analysis, which was made by JP Koning. It is not used as the basis of standard deviation and did not rely on mean value and the median, in fact, ignoring the role of the one-time price spikes.

Bitcoin chart volatility for the standard (blue) and median (green) deviation. Source.

From the graph, we see that the volatility of bitcoin over the last 7 years virtually unchanged, though the market came millions of players and the value of the coins and the liquidity increased by ten thousand percent. Really decreased only the number of one-time jumps. But why is this happening? The secret lies in what we mean by the fundamental value of bitcoin.

What is the value of bitcoin

Markets little «real assets» which would not depend on value of some other. Bitcoin is just one of those. This is not the action and not the bond. He’s like real estate, land or natural resources. In addition, it is impossible to estimate the revenue stream from bitcoin, as reports of incoming and outgoing money is not received, and to calculate at least the approximate profitability is impossible.

Therefore, it is difficult to determine its fair value. Do the same for any asset, which has the transparency of financial investments or specific yield, can even novice analysts. But bitcoin has neither one nor the other.

So what, then, determines the value of BTC? Oddly enough — people. We are with you. Rather, our mood. Bitcoin is worth exactly as much as we are willing to pay for it. This is easy to explain the anomalous increase in the cost at the end of 2017, when the wave of hype even Housewives that do not have a credit card, have to buy the coins like the shares of MMM in 1994.

The closest to bitcoin a real asset — gold. No wonder it is called «digital gold». This precious metal is also impossible to calculate the income stream and its price, primarily due to the mood of the players. And he also experienced an abnormal jump in the cost in 1980, when the and expensive the asset has risen almost three times. That’s just the volatility of bitcoin is still much higher. Just look at this chart:

The volatility of bitcoin (blue) and gold (red) for the last 7 years. Source.

Depends on what volatility really is

Why is this happening? The case of radical uncertainty. Despite the fact that the Bitcoin network was launched 10 years ago, it’s still new technology, not yet widely adopted. Most people still don’t know what it is. Cryptocurrency and blockchain technology are only beginning to establish itself in the field of education, and then only in the top universities.

Who knows what will happen with all this next. Will cryptocurrencies be used as the main means of payment? What eventually will happen to bitcoin? Whether the world needs smart contracts? Not whether to ban all coins except the state? Too many questions.

Gold has existed for millennia. It is studied far and wide, we know where and how it is used. And if scientists discover some revolutionary way to use gold, of course, it will soar in price. If you have any Magnevist, the market will react accordingly. But all this is unlikely, and therefore the volatility of gold is less significant.

But with bitcoin it’s different. About it daily have written hundreds of news and make dozens of hypotheses. Any background information affects the mood of the market, respectively, and the price of BTC, as well as mood is a determining factor in the value of bitcoin, the uncertainty will continue to affect the price of the first digital coin, until it becomes clear its final potential and scope. This is definitely not happening today and is unlikely to happen tomorrow, so the volatility of bitcoin will remain high even if the market will come millions of new players and liquidity will increase tenfold.

What will happen to the volatility of bitcoin in the future

What is the result? Bitcoin will remain volatile forever? No, he will be until then until the answers to the questions posed above. Once the barrier of uncertainty is broken and the role of bitcoin is finally formed. It was then that the coin will cease to be so unstable because of its fair price will be much easier to calculate.

But until then, the course will continue to depend on sentiment and background information. Bullish trend will change to bearish several times a month or even a week, regardless of liquidity and trading volume. Cryptologist just have to accept it: for many years we are accustomed to a similar pattern. In any case, if we want this community to stay, we have no other choice.

The issue of high volatility, highlight two major benefits:

1. Noel Acheson notes that the development of crypto-industry is more and more research and new tools for the assessment of cryptocurrency attitudes and more qualitative predictions. These same tools can be used on other financial markets, to provide more accurate market analysis enabling investors to make more money and take less risk.

2. As frightening nor was volatility, it is the most important component of the huge revenue from the cryptocurrency. If not volatility, it would not be bilinovich millionaires, no one would do anything x2 or X10, did not earn even on daily flath, because even BTC jumps to ±500$ (5%) daily mean flat and calm in the cryptocurrency market. At the same time, it is absurd for other markets, including stock, where such movement would be considered high volatility.

Perhaps the combination of these two components will bring the cryptocurrency trading to a new level, and then we love bitcoin even more. In any case, volatility can not escape. But if the «enemy» cannot be destroyed, it is wiser to become his friend. Agree?