Bitcoin vs S&P 500: why is the first cryptocurrency is inversely correlated to the traditional market

Given the steady growth of bitcoin prices and the better performance of many other assets, hardly anyone now doubts that the notorious «Kriptonika» behind. Analysts explain the different reasons for such a sharp recovery in prices in recent months, starting from purely technical factors to the institutionalization of an emerging market of new assets.

It is widely believed that the mass adoption of the cryptocurrency and growth of their prices contributes to escalating trade war the United States and China, as well as the passion of the Central banks loose monetary policy to encourage exports and business activity. These factors accelerate the global crisis, the occurrence of which, given the cyclical nature of economic development and trends, is just a matter of time.

The appearance of the first cryptocurrency in January 2009 was a kind of response to the global crisis, which was then in full swing, and on the causes of the global recession, including due to the actions of Central banks that create financial bubbles.

In recent months, amid global uncertainty, there has been an interesting trend, which is resulting in a pronounced inverse correlation between bitcoin and stocks from S&P 500 index, a kind of barometer of the us economy.

In this article ForkLog magazine invites readers to analyze the correlation of bitcoin with traditional financial tools of the market and some Althingi, to consider why digital gold is rising in spite of negative news, and that can affect the rate of BTC in the near future.

Why the S&P 500 is called the barometer of the US economy?

Analysts SFOX showed multidirectional dynamics of prices of bitcoin, relative to the S&P 500 index, which is all the more evident in recent times. However, before finding out the reasons for what is happening, consider what this index is and why he draws the attention of analysts around the world.

S&P 500 — stock index, which includes 500 most highly capitalized American companies. It is published since 1957, is it the rating Agency Standard & Poor’s.

Shares of companies listed in the S&P 500 are traded on the largest stock exchanges NYSE and NASDAQ. In its popular S&P 500 competes with the Industrial index Dow Jones. Because when compiling the list of companies in the Standard & Poor’s is trying to present the most complete variety in the industry, the index is often called the barometer of the us economy.

In addition, S&P 500 included in the Composite index of leading indicators used by investors to forecast trends in the economy.
The index consists of 10 components, changes which usually precede economic changes in General.

Lots of investment, stock exchange, pension and other funds seeking to replicate the portfolio composition and yield of this widely tracked index. Thus, it is not surprising that the slightest fluctuation in business activity in the U.S. immediately reflected on the dynamics of the S&P 500. Given the global nature of world economy, changes in prices of this popular index materials react and other markets.

Is the stock market! What is bitcoin?

As already mentioned, bitcoin appeared in early 2009, when the deepest since the great depression crisis was in full swing. As seen in the chart below, the emergence of cryptocurrencies almost coincided with the bottom of the previous crisis:

The monthly chart of the stock index S&P 500 from TradingView

Shortly after the advent of digital gold began a heated quantitative easing the strong recovery of the us economy. In the developed countries has reached a ten-year period of growth, low inflation and high prices of many assets.

Now, however, many experts believe that the world is on the verge of another global crisis. So, the graph below shows the ratio of the value index, commodities by the S&P 500 index:

This indicator is now at 50-year low. In the past, when this ratio was low, followed by the long period of stagnation of the stock market.

For example, after the previous low was a collapse of the index high-tech companies NASDAQ Composite. It is remarkable that the ratio of the value index, commodities by the S&P 500 is still lower than in the eve of the collapse of the dot-com — at about 1972. Then, half a century ago, formed the so-called bubble, the Nifty Fifty — the fifty most popular in the 60-70-ies of the stocks of U.S. companies that had fast growth and the ratio of prices to income.

In 1973-74 the shares of such companies plummeted bear market lasted nearly 10 years — until 1982. Since then, the term Nifty Fifty is sometimes used in financial circles as an example of the unrealistic expectations of investors regarding the growth of assets.

As analysts CoinMetrics, with the exception of the first year of life, bitcoin did not exist in the periods of global recessions. This fact leads many market participants to think about how the first cryptocurrency to behave in a new environment — against the backdrop of uncertainty and panic related to price fluctuations of traditional financial assets.

Experts believe that despite the lack of historical data, given recent events on the traditional market and in the response of bitcoin, it is already possible to draw conclusions about the susceptibility of BTC to the processes in a much broader macro environment.

The correlation of bitcoin with S&P 500, gold and other cryptocurrencies

Comparing the dynamics of traditional and cryptocurrency markets, analysts SFOX concluded that investors are increasingly considering BTC as a hedge instrument with fluctuations in the S&P 500 and other indices in order to strengthen the trade confrontation between the two countries-giants.

«Due to the ongoing aggravation of trade relations between the US and China may become one of the most turbulent months for global markets in recent history», — analysts say.

According to them, after the PRC announced may 13 on raising import tariffs on us goods worth $60 billion, S&P 500 fell 1.7%. The Chinese yuan reached a four-month low. However, against this background, the BTC increased by 7% from $7158 to $7679.

«From this point during the month, a negative correlation of bitcoin with S&P 500 was almost perfect. The correlation BTC with leading Althingi was almost perfectly positive.»

The correlation of bitcoin with other cryptocurrencies (ETH, BCH, LTC), the S&P 500 index and gold

In SFOX also believe that investors can consider bitcoin as a «unique hybrid inherent in the gold stores of value and risk asset like the S&P 500».

Thus, it is possible that the demand for first cryptocurrency fuels growing global uncertainty and the crisis in a few countries, including Venezuela, Argentina, Turkey, which is peculiar to inflation, currency restrictions and political instability.

So, according to the portal Statista survey, every fifth inhabitant of Turkey used or owns currently the cryptocurrency. Note that in this country there are significant exchange controls, rampant inflation, unemployment and weak GDP growth.

Bitcoin is the most popular in developing economies

Apparently, more and more investors view BTC not only as a defensive asset, but also as a tool of portfolio diversification, which are characteristic for higher returns than traditional assets.

So, according to analysts of the company of new York Pension Partners Charlie Bilello, ROI in the first game with the beginning of the year amounted to 111%.

For comparison, during the same period, the growth in oil prices was only 16%, the S&P 500 index also increased by 16%, gold 4%.

As for the noble metal, between these traditional asset and bitcoin observed strong negative correlation, which, according to the analyst CoinDesk Omkara of Godbole can serve as a kind of indicator for traders.

For example, on November 13, the price of the precious metal was $1200, and by December, the gold price got close to the psychological resistance level of $1300. At this time, the bitcoin fell with elevations of above $6,000 to $3122 on the exchange Bitstamp.

Graphics of bitcoin and gold, as well as an indicator of the correlation at the turn of the 2018-19 years.

Thus over time the reliability of the indicator only rises. So, if in January the 90-day correlation coefficient between the two assets was -0.593, by may, this figure had reached -0.71. In simple words — in recent times increasingly noticeable as the price of bitcoin and gold are moving in opposite directions.

Why bitcoin is growing in spite of the negative news?

One possible reason is that the prices are usually more sensitive to react to positive news during a bullish phase of the market and thus are reluctant to fall under the pressure of a clearly negative event.

For example, when the Commission on securities and exchange Commission (SEC) postponed the decision on the ETF company Bitwise, the price of bitcoin fell, but, on the contrary, within about a day grew from $8010 to $8069 (+0.7%). According to the observations SFOX, in a similar way the first cryptocurrency has reacted to a similar decision of the SEC in respect of the ETF from VanEck, and SolidX — BTC grew by 0.3%, from $7910 to $7936.

«This may indicate that, despite the serious hype around the approval of bitcoin ETF, the market doesn’t care about it as much as, for example, about the possibilities of BTC to play the role of the hedging instrument in the context of global markets», — shared his thoughts SFOX analysts, noting that the low probability of approval of ETFs are likely to have been pre-digested by the market.

To the surprise of many investors, the price of bitcoin has not had a significant impact even hacking Binance, in which the largest crypto currency exchange lost 7000 BTC ($40.5 million at the exchange rate at the time).

«The fact that the hacking Binance has not led to a fall in the price of BTC reflects a much greater degree of maturity of infrastructure market, compared with the times Mt Gox», — noted in SFOX.

Thus, with the growth of capitalization and the mass adoption of the cryptocurrency market is becoming more liquid and not as volatile, and therefore less influenced by the seemingly very negative news.

What are the important future events can affect the exchange rate of bitcoin?

Grayscale Investments, the experts are confident that the long-term impact on the growth of bitcoin prices will continue to provide global uncertainty, one important factor which is escalating the trade war the US and China.

Analysts drew a parallel with the year 2016, when global markets reacted negatively to the referendum on the UK exit from the European Union and the Greek crisis 2015. On the background of these events, the first cryptocurrency has significantly strengthened its positions:

It should be noted that currently, many Central banks almost exhausted monetary tools to revive stagnant economies. For example, in many States and even negative interest rates:

Analyst Omkar Godbole cited a number of other factors that could have a significant impact on the digital gold in the short and medium term. The first of them — cryptocurrency project from Facebook, which has supported a number of well-known companies.

Partner of Blockchain Capital Spencer Bogart convinced that the launch of the biggest social network of its own stablon significantly contributed to the mass adoption of bitcoin and cryptocurrency infrastructure development.

Similar is the opinion of the Vice-President of the Blockchain Association of Ukraine Vitaliy Bulychev, considering the launch of Libra is good news for all kriptonyte.

That digital currency from Facebook will affect the prices of many of scriptaction, no doubt many other members of the crypto community.

The following factor of growth of demand for digital gold can become an overflow of capital from BNB in BTC, due to the restrictions for us investors to participate on the platform Binance.com.

In particular, such a scenario does not exclude the cryptanalyst Alex Kruger. In his opinion, may occur an effect comparable to «the April panic because of the Tether».

In addition, the price of bitcoin reflects the influence of the approaching halving Litecoin, which, given historical data and cyclical price patterns can serve as a trigger phase of active growth of bitcoin and the market in General.

So I am sure Godbole, over the next several weeks possible test round at $10 000.

Among other important fundamental factors that can affect long-term growth of the BTC include:

  • anticipated in may 2020, halving bitcoin, which will make BTC even more scarce asset;
  • closely correlated with the price of strong growth Hasrat network of the first cryptocurrency;
  • start trading deliverable bitcoin-futures-oriented whales platform Bakkt;
  • the full-fledged cryptocurrency platform from Fidelity Investments and platforms from other large players;
  • the development of infrastructure in General (decentralized exchange, neoscopelidae wallets, network, Lightning Network and promoting solutions such as Submarine Swaps, etc.);
  • the growing popularity of cryptocurrency among retailers;
  • the growing interest in new assets from institutional investors and other major participants in the traditional market, is indirectly evidenced by strong growth in trading volumes, bitcoin futures exchange, CME;
  • start secured digital gold tokens, which increases the demand for the underlying asset;
  • the introduction in the medium term in the bitcoin Protocol solutions that improve network performance and the degree of privacy of the transaction, etc.

***

Thus, mass adoption is coming, and the fundamental prerequisites plenty to be optimistic about the future and be confident in the long-term prospects of bitcoin and other cryptocurrencies.

Once bitcoin was created as a response to the shortcomings of traditional financial system, it is likely that he will fully manifest themselves in the course of the coming global economic crisis. Given the current global economic trends, the occurrence of this event is just a matter of time.

But do not forget about the high risk nature of new assets, and that invest in them wisely. The portfolio of a rational investor does not have to dominate the cryptocurrency because bitcoin can be used as a unique hedging tool, combining the properties of digital gold and something risky and profitable, reminiscent of stocks of technology companies.

Alexander Kondratyuk


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Published white paper from Facebook of cryptocurrency, and presented a purse Calibra

Stable global cryptocurrency Libra. Exactly as stated on the official website of the new payment network on the basis of «secure, scalable and reliable blockchain». The cost of Libra is linked to the provision of various assets and network management will carry out a non-profit organization Libra Association.

So, each unit of Libra will be provided a basket of currencies and other assets, which together will form the Libra Reserve. Refers to Bank deposits and government securities from most trusted banks, that will provide low volatility. However, the cost of the token will not be tied to any Fiat currency.

At the initial stage, the operators of the node-validator the members-founders of the Libra Association, but then supposedly there will be a transition to decentralization. It is the intention of are able to evaluate the representatives of the community.

According to the documentation, the technical requirements for operators of nod very simply: server SSD for 16 terabytes, as well as the Internet speed 40 Mbps to ensure 1000 Tps.

Among the founding members of the Association are Mastercard, PayPal, Visa, Booking Holdings, eBay, Facebook, Uber, Spotify, Vodafone, Coinbase, Xapo, and others famous company. However, no one in the organization can’t own more than 1% of the vote (and this applies to Facebook).

Libra Association will also hold the location of the security tokens called Token Libra Investment that will allow to raise funds from accredited investors who earn dividends from reserves.

However, it remains unclear at what price each member of the Association receives tokens Libra Investment Token, and what their part will be to own Facebook.

Who will join the Association needs to invest $10 million, however, this rule does not apply to other non-profit organizations. The estimated annual cost of managing Noda will be $280 thousand.

It is noteworthy that the very Libra Association will not collect personal data of users and transactions in the network will pseudoanonymity [will be public addresses, timestamps, and amount]. While custodial wallets may be required to attend KYC-procedures.

Also on the site Libra a hosted implementation of the Protocol open-source Libra Core on the basis of the framework HotStuff from VMware in accordance with the Apache 2.0 license. The test network will be launched in the coming weeks, and a full-scale launch of cryptocurrency scheduled for 2020. We would add that the Protocol provides limited functionality in the context of smart contracts, and written in a new programming language Move.

The Libra Blockchain by ForkLog on Scribd

Simultaneously, Facebook introduced a mobile wallet Calibra, which will allow you to send tokens Libra via Facebook Messenger and WhatsApp. In case of loss of coins due to fraud, Calibra is going to compensate the users losses.

Calibra is a division of Facebook and a separate legal entity registered with FinCEN as a provider of financial services. The company has a permit to conduct activities throughout the United States, and her head was a former member of the Board of Directors Coinbase and Vice-President of Facebook David Marcus.

Marcus stressed that the Calibra will take care of the privacy of its users.

«We have very well heard. You don’t want your social data mixed with financial. We understand that we have to earn your trust».

The developers can create alternative wallets. This means that the Calibra is just the first such service.

LibraWhitePaper en-US by ForkLog on Scribd

Some users have already started to make fun of the project.


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To CoinMarketCap Alliance joined 70% of bitcoin exchanges. They will deal with fake data

Analytical service CoinMarketCap presented the results of the first phase of the initiative «the Alliance of accountability and transparency of the data» (DATA), aimed at collecting reliable information about cryptocurrency trading.

So, more than 70% of the bitcoin exchanges joined DATA in a timely manner providing CoinMarketCap information about the auction, and the book market orders in real time through the API.

The platform did not comply with the requirement of the resource will now appear in the list below exchanges that have complied with the conditions.

In addition, CoinMarketCap intends to expand the list of requirements for listing, which had previously been «neat». Thus, the resource to add several new metrics, including an assessment of trading volume, popularity, information about the team, the appropriateness of the product and others.

In addition, for projects that do not meet all the requirements for traceability, created a separate category of so-called «untraceable listing».

It should be noted, CoinMarketCap is also the first time announced the principles of domestic policy exceptions from the listing. Among such reasons: low liquidity, suspicious trading activity, termination of activity, misleading statements or illegal activity.

Now CoinMarketCap is preparing for the first round table with the partners in the Alliance, which is scheduled for mid-July.

Recall that the resource has created an Alliance with leading exchanges to combat fake data in the beginning of may after he accused the publication of questionable information.

Then in CoinMarketCap problem acknowledged and promised to introduce new metrics to address it.

More with the theme fake trades on the unregulated cryptomeria can be found at the link.

Download the app ForkLog for Android!

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The EU urged regulators to pay attention to the cryptocurrency Facebook

The EU has already responded to the Facebook of cryptocurrency initiative called Libra and called on regulators to carefully study the project. In particular, the French Finance Minister Bruno Le Mayor stated that the token Libra should not and cannot become a sovereign currency, according to Bloomberg.

«It is not discussed», — he concluded.

Le the Mayor also urged the Central banks of the group of seven (G7) to examine the project and report to the meeting, which will take place in July this year.

At the same time, member of European Parliament from Germany Markus Ferber suggested that Facebook can be a «shadow Bank.» Regulators, in his view, has very carefully look at the activities of the social network.

«These transnational corporations like Facebook should not be in regulatory Nirvana when launching virtual currency», — he stressed.

Note that the candidate in presidents of the United States Andrew young praised the potential of a new cryptocurrency for hundreds of millions of people who lack access to financial services.

Today, 18 June, Facebook revealed details of project Libra.



Источник

70% of the exchanges have supported the initiative CoinMarketCap to fight with fake data

Analytical service CoinMarketCap presented the results of the first phase of the initiative «the Alliance of accountability and transparency of the data» (DATA), aimed at collecting reliable information about cryptocurrency trading.

So, more than 70% of the bitcoin exchanges joined DATA in a timely manner providing CoinMarketCap information about the auction, and the book market orders in real time through the API.

The platform did not comply with the requirement of the resource will now appear in the list below exchanges that have complied with the conditions.

In addition, CoinMarketCap intends to expand the list of requirements for listing, which had previously been «neat». Thus, the resource to add several new metrics, including an assessment of trading volume, popularity, information about the team, the appropriateness of the product and others.

In addition, for projects that do not meet all the requirements for traceability, created a separate category of so-called «untraceable listing».

It should be noted, CoinMarketCap is also the first time announced the principles of domestic policy exceptions from the listing. Among such reasons: low liquidity, suspicious trading activity, termination of activity, misleading statements or illegal activity.

Now CoinMarketCap is preparing for the first round table with the partners in the Alliance, which is scheduled for mid-July.

Recall that the resource has created an Alliance with leading exchanges to combat fake data in the beginning of may after he was accused of publishing questionable information.

Then in CoinMarketCap the problem acknowledged and promised to introduce new metrics to address it.



Источник

French Finance Minister: Libra will not be a sovereign currency, it is not discussed

The EU has already responded to the Facebook of cryptocurrency initiative called Libra and called on regulators to carefully study the project. In particular, the French Finance Minister Bruno Le Mayor stated that the token Libra should not and cannot become a sovereign currency, according to Bloomberg.

«It is not discussed», — he concluded.

Le the Mayor also urged the Central banks of the group of seven (G7) to examine the project and report to the meeting, which will take place in July this year.

At the same time, member of European Parliament from Germany Markus Ferber suggested that Facebook can be a «shadow Bank.» Regulators, in his view, has very carefully look at the activities of the social network.

«These transnational corporations like Facebook should not be in regulatory Nirvana when launching virtual currency», — he stressed.

Note that the candidate in presidents of the United States Andrew young praised the potential of a new cryptocurrency for hundreds of millions of people who lack access to financial services.

Today, 18 June, Facebook revealed details of project Libra. All the most important thing at the moment ForkLog have gathered for you the material the link:

Published white paper from Facebook of cryptocurrency, and presented a purse Calibra

With an extensive background can be found in the special topic.


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The state Duma is preparing to consider two bills: on digital of financial assets and on the regulation of ICO

The draft law «On digital of financial assets» may be adopted by the state Duma in the second reading within the next two weeks, said Deputy Finance Minister Alexei Moiseev. About it reports TASS.

«We had at last week’s meeting… generally agreed, is now the final text, look its all There…all the decisions were made, now look at the text, and in two weeks, I hope, will come to the adoption in the second reading», — said Moiseev.

In addition, he reported that separately passed the bill regulating the ICO, called «About alternative ways of attracting investment (crowdfunding)».

«There will be two laws: the law on crowdfunding, including ICO and the law on digital of financial assets that will be in the form approximately as it is now prepared for the second reading», — said Moiseev.

He also said that the taxation of cryptocurrency activities at the meeting were not discussed. He Moiseev noted that this is «normal human activity, it should be regulated like everything else.»

We will remind, the second reading of the draft law «On digital of financial assets» was held in April, but it had to be postponed because of the requirements of FATF.


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Platform for the purchase and sale of cryptocurrencies in two clicks

Article

Mercuryo service that allows you to quickly and safely buy and sell bitcoin with a minimum Commission using your Bank card. The service also provides various services for business and individuals. With Mercuryo you can trade, buy, sell and securely store cryptocurrencies or, for example, to allow your customers to pay with bitcoin on your website.

At the moment the service works with BTC, but this year plans to add a ETH, BCH, LTC and DASH. Mercuryo interacts with Visa and MasterCard. To enter or withdraw funds to a Bank card, you need to go through a simple identification procedure in the app or on the website. Mercuryo successfully passed the certification of PCI DSS and the standards we work with giants such as VISA, MasterCard,AmEX — it shows that user’s personal data is reliably protected.

To use the wallet Mercuryo you need to register an account on the official website or download the app for iOS or Android. To buy cryptocurrency in the amount of up to €300 are simplified KYC procedure: surname, name, patronymic, date of birth and country of residence, after completing a full authentication procedure, which includes sharing a selfie with your passport and scan the document your limit will be increased to €15,000 per month.

The fee is 3.95% of the input cards and 2.95% for withdrawal of the card.

Mercuryo — Russia’s first service that offers customers a simple and fast function buy bitcoins without going through the full KYC procedure : this can be done by reference. In this case, the limit is €300 and can not be increased.

For registered users who have completed the simplified KYC procedure for input and output, the following conditions apply:

Enter:

Maximum transaction amount: €300;

The overall limit on the account: €300;

The number of card transactions per day: 3.

Conclusion:

Maximum transaction amount: €300;

The overall limit on the account: €300;

The number of card transactions per day: 5;

The number of card transactions per month: 30.

For users who are completely passed KYC at the input and output of the following conditions apply:

Enter:

Maximum transaction amount: €2000;

The daily limit for account: €5000;

Weekly limit for account: €15,000;

Monthly limit per account: €15,000;

The number of card transactions per day: 10;

Operations limit 1 card per month: €10,000.

Conclusion:

Maximum transaction amount: €1300;

Daily limit: €4000 on card, €10,000 to the account;

Weekly limit: €10,000 per card, €15,000 to the account;

Monthly limit: €17,500 on the card, €15,000 to the account;

The number of card transactions per day: 5;

The number of card transactions per month: 50.

Through integration with Mercuryo,any site can start to accept payment in cryptocurrency, and all risks associated with the fluctuation of and directly work with cryptocurrency, the platform will take over. Once on the website the payment will be made in BTC, platform Mercuryo exchange cryptocurrency for Fiat money and transfer them to the owner of the website.

The development team of the project has not conducted Mercuryo ICO, the whole product was developed on own funds.

More details about the project can be found on the official website.

Comparison of the three services, providing services for buying and selling cryptocurrencies

Mercuryo

Mercuryo — service, allowing you to quickly, simply and safely buy and sell crypto-currency using Bank cards VISA and MasterCard.

According to the exchanger monitoring service Best Change, Mercuryo most often appears in first place in the ranking of offices with the most favorable conditions, as the fee is minimal: for buying and selling with Visa and MasterCard.

Registration for the service is quick and simple. Select country, enter phone number, receive code, enter the mailbox name, surname and date of birth.

To assess the performance of the service and comparisons to other similar venues we’ve bought BTC on the minimum allowable amount of 800 rubles, requesting 0.00205016 BTC.

The main advantages when working with a service that stands out:

Micro-operation (the ability to make a purchase for 800 rubles at the time of writing);

The minimum fee;

Completely legal activities (Mercuryo is licensed by the government of Estonia);

Security (level 1 PCI DSS certification);

Convenient mobile app available in Google Play and App Store.

Instant attachment of the card through SMS;

Fast transactions (within one minute BTC credited wallet)

The minimum fee;

To work with small amounts and no verification processes, in addition to the confirmation email and a mobile phone is not required;

User-friendly interface;

Support on the website works fine, the answer came within 10 minutes.

Of the minuses:

At the moment are available for purchase only BTC.

LocalBitcoins

Bitcoin exchange registered in Finland in 2012.

The registration requires to enter a user name (will be displayed on the website), mailbox and password.

The functionality for the buying and selling BTC is displayed on the home screen where you can click on the button «Quick buying» or «Quick sales» and select the required parameters.

Of the main and most convenient options are the following:

Select the currency for the operation;

A wide range of options for buying and selling BTC.

LocalBitcoins is a marketplace that brings buyers and sellers. When you search the seller should rely not only on best price, but also on its reliability. Each seller next to its name is the indicator, which indicates its reliability:

Green — respond within a few minutes;

Yellow — meets for half an hour;

Red — is taking longer.

Main advantages:

The service works for a long time, since 2012;

Support for a large number of payment systems;

Great features when buying;

Lots of offers on selling and buying;

A large community worldwide;

Large trading volumes;

The company is registered in Finland and has headquarters in Helsinki.

Of the downsides of the service include:

Risk, since LocalBitcoins is driving sellers and buyers, possible fraud or deception, but the team is trying to protect their users to the maximum by the Deposit system;

Each seller has different policies on payment, and if the buyer breaks them, transferring money is not as stated in the description, it is unlikely to get their BTC;

Each seller has a certain transfer limit on your card.;

The seller may request proof of identity (due to the different legislations);

LocalBitcoins only supports bitcoin;

For larger amounts you need a high personal rating (all work is built on trust and user rating).

100 coins

A service that provides users with service of currency exchange, to register for which you want to enter email, password and the source from which you learned about the platform (optional).

On the main screen is a panel that displays the sharing options and the reserves, the main of which is the sale of bitcoin for Fiat listed on a map. ETH, LTC and a few core cryptocurrencies can also be sold on the platform, and it is definitely a plus. The interface is intuitive, but it will take some time to get used to it.

On the panel with the functionality located currencies and tabs with information about the service, rules, FAQ, information for partners, articles about cryptocurrency and contacts. The minimum amount that can be spent from the card — 5000 rubles are available for purchase BTC, ETH, LTC, USDT.

One of the major drawbacks that immediately catches the eye — the absence of the purse for storage of the purchased assets and is not very modern interface. After entering the address it creates the purchase requisition, in our case, the BTC, the operation occurs within 5 minutes and the funds are received at the specified address. The Board is 5,000 rubles will be 300 rubles (2 times more than the Commission on Mercuryo). Support works quickly.

Judging by the reviews, the impression of the service as a whole is positive, the operations are successful, the transaction quickly, but there are problems due to the large demand. There are negative reviews that are associated with the card user when working with small amounts to 20,000 rubles.

Conclusion

LocalBitcoins is very popular in the crypto community, an experienced team and a well-functioning platform long been present on the market on LocalBitcoins conducted a considerable number of operations related to the buying and selling BTC, but this service, like many others, has its disadvantages. LocalBitcoins is a marketplace that brings sellers and buyers, so you can meet scammers, but the area by all means trying to protect their users.

100 coins has been working for about 5 years reviews there are both positive and negative, of a fee when the transaction is small, it is possible to both purchase, and sale of cryptocurrency. If you believe the numbers that appear on the website, the service has a good reserve.

Mercuryo is a recently started service with a very nice interface, responsive support and a narrow but useful functionality. Of the main advantages when testing, you can highlight the attachment card and high speed transaction confirmation, which ultimately took less than one minute, as well as the lowest Commission and the opportunity to work with small amounts of money without a long and complicated registration.

LocalBitcoins is in the market for a long time, and the community formed a mostly positive impression of the work with this exchange, but thanks to such services as Mercuryo, buying cryptocurrency becomes much easier and faster, because it is not necessary to search for the seller or buyer, is simply to register and purchase the required amount of cryptocurrencies (there are different limits set out above), and most importantly — no need to worry about the money and bitcoins, requested or sent to the service.

On many platforms with similar functionality can be many disadvantages and inconveniences, for example:

A complex verification process;

Large Commission;

The long wait of the transaction;

Possible blocking of cards (depending on the region in which issued the card);

Long waiting feedback from support;

Other challenges I would not want to face when working.

Compare wallets Axemetria and Mercuryo

Aximetria

Aximetria financial service that combines traditional and digital currency.

Aximetria enables users worldwide to remotely access digital accounts, make international payments and operations with digital assets. This service is cryptocurrency wallet and own a debit card linked to the wallet.

Aximetria provides its users with easy access to cryptocurrencies, like BTC and ETH. The system also works with national currencies: EUR, USD, RUB and CHF.

After downloading the wallet Aximetria in the AppStore to use it you need to verify the host country and accommodation, passport, photo passport, SNILS/was. The verification is within 24 hours of application.

Login to the application is via a four digit password or Face ID, after verification we get to the page that lists the assets (and wallet card).

In the section «Transfers» represented a fairly wide range of functions for operations with assets: recharge cards, transfer to card transfers between own accounts, customer Aximetria to another wallet and send a request for replenishment.

In the «Courses» you can see a graph with the price of BTC and ETH for Vietnam currencies represented in the wallet (RUB, EUR, USD).

In profile the available functionality to configure notifications, security, application information and support, as well as the option to remove the application.

To purchase cryptocurrency established the Commission of 2.85%, on the sale of 1.75% to transfer between wallets — 0% and on the conversion or transfer with conversion — 0.77%.

One of the main advantages of purse — debit card linked to a digital account, which you can use to pay for any purchases online and offline, withdraw cash at ATMs, it can also add in Apple Pay and Google Pay. Map in Russia, you can order delivery.

Mercuryo

Purse Mercuryo you can download in the App Store and Google Play. After downloading the wallet included in the profile created on the website, and get access to the functionality of a wallet from Mercuryo. Design similar to the design of the site. To use the wallet to manage a small amount, it is possible with the passage of the partial verification (name, surname, date of birth and country of residence).

When you log into the app on the home page displays the balance in the selected currency and the last transaction. You can select EUR, RUB, USD.

In the tab «Cards» you can attach a card (number of cards is not limited to) to do this, enter her number, the owner name, the expiry date and code on the reverse side.

In the next section the available functionality for sending BTC to a wallet or on your card (automatic conversion to Fiat).

In «Other» you can view information about yourself and if you need to contact customer support to change data there you can change the settings of displaying the balance in Fiat currency, change the password and set login by Face ID.

Conclusion

Both wallets allow you to buy cash with plastic cards, but the wallet from Mercuryo to work with small amounts do not require verification, which is a plus. Sorry, we were not able to use the wallet from Axemetria, at the time of writing the company was also certified according to the requirements of FINMA (Swiss financial regulator), verification of the users was stopped.

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The former developers of JPMorgan has raised $2.25 million for a new project

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Two leading developer will Martino and Stewart Popjoy left the blockchain-draft JPMorgan, Juno in June 2016 and he began developing his own platform of smart contracts Kadena. White paper of the project promises that users will be able to carry out private transactions in private so that competitors will not receive information about the actions in the network.

During the private placement of common agreement on future tokens (SAFT) Kadena startup raised $2.25 million for the development of a new project Chainweb. The investment round participated Metastable, Kilowatt Capital, and Coinfund Multicoin Capital.

Stuart Popjoy, is the co-founder of the project, said that Chainweb aimed at addressing scalability and improving security, using transaction processing a combination of several blockchains instead of a single decentralized blockchain type Bitcoin: «Apps like crypto-kittens can work on their own 5-6 circuits, and more voluminous events such as ICO, — will be held on a different circuit, while not slowing each other». Chain intertwined roots of the hash tree and thus interact, being in the same blockchain system.

Using the model of parallel blockchains Kadena plans to increase the transaction rate up to 10,000 per second, while maintaining low fees. In addition, the use of parallel blockchains, not Saidjanov allows to achieve an extremely high level of security.

Many chains also prevent the user from traditional risks of the blockchain that are related to issues of privacy. Popjoy said that the tests demonstrated a very high level of anonymity, thanks to the division approximately 1,000 different circuits.

Each chain will produce tokens Kadena, but the mechanisms that determine the scope and timing of the issue need to be improved. The Protocol Chainweb will ensure that identical coin exists in two circuits: «It is the single currency, and the translation of tokens from one circuit to another SPV (Simple Payment Verification) confirms that the token was deleted on the primary circuit before they were on the desired chain,» — said Popjoy.

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Why Ethereum fell below $300 and what this says about the acne Buterin

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13 August 2018 for the ether (ETH) is the second cryptocurrency in the world in terms of market capitalization — has become one of the most adverse for the last 9 months, because the rate of coin fell to $260. Two days later, the co-founder of Ethereum Vitalik Buterin at a private event in San Francisco did not respond to the fall in the value of cryptocurrencies and spoke about their current developments and future plans.

Is sold and falls

Monday at 16:50 at the time (minus three hours from Moscow) during the trading session, the air has dropped in price to below $ 300 dollars. This was the first time since November of last year, while ETH was trading around $290 — $10−$30 more than now. Market capitalization fell more than $10 billion loss for the first seven days already amounted to more than 28%.

Recall that the largest value of ETH was in January 2018 — more than $1300, then the drop was approximately 75%. Source.

Probably, this collapse occurred because of the sale many tokens ETH blockchain startups. ICO projects have started to get rid of the Ethereum cryptocurrency amounting to about $40 million, which accounted for around 100,000 coins. Scaled back they can trace for a perfect transaction. First sold their coins the team representatives EOS in may 2018. After that, the market once again thinking about the serious impact of the public collection of coins at ETH — coin is too volatile and amenable to the General sentiment on the grounds of the ICO. Then their shares of the ETN began to sell other crypto commands. For example, the project Atonomy, which has attracted money through ICO, to withdraw from her account 12,000 ETH, 9000 of which were sent on July 26. The second largest selling happened in the I — ETH 8400 in one day. Other projects (an unknown number) transferred amount from 5000 ETH and below. The boom in sales happened because of the falling exchange rate of the cryptocurrency, says cryptotriton, founder Onchain Capital Wounds Neuner.

«Spent the morning with one ICO (won’t name what), they raised $30 million in a time when ETH was for $1200. Now the team panicked and sold their remaining part last night — the project has left $4 million,» says Neuner. What is the project, hard to understand, but one thing is clear: many ICO live exchange to another currency for fear of losing investments.

The cost of ETH’s most likely caused by the July spam-attack on the blockchain, when due to increased prices for gas to $1, the number of transactions in the network was reduced to 500,000 from the usual 1.4 million units. High Commission as suggested by many experts, will lead the network in a useless and unprofitable state. To reflect this spam attack Ethereum raised $15 million, which, according to estimates and Vitalik Buterin could buy «5 million packages of green tea, 75 cars Lamborghini, 25 rounds of raising the initial funding Coinbase or 0.9% ICO Telegram».

Predicting the collapse

Predictions of the course of the ETN does not inspire confidence and peace of mind to users and project sponsors on the Ethereum blockchain. Executive Director cryptocurrency exchange BitMex, Arthur Hayes emotionally criticized the coin and said that her disappearance is inevitable, because it is a «shitkino» — a coin that is of no value and of no benefit, and not a true cryptocurrency. In addition, according to the expert, the price of the ETN to drop to $100 and below, to stamp the spring of 2017, because ICO boom has long passed, and that means a new flow of investment can be expected.

«A lot of venture investors decides to sell the air at the same time. This causes panic, because if not regularly sell in a falling market, you will be left with nothing. Therefore, all selling at the same time, but unless someone buys this shit? Ordinary investors simply do not have enough money, because their funds are not comparable with the money of institutional investors. So the market will continue to fall: first lower the price of the tokens of the projects, and then for ETH», — categorically said the Hayes.

He Vitalik Buterin does not deny that ICO-projects on Ethereum «have become very boring and uninteresting», it is not surprising that the demand for them disappears and the area becomes less in demand than in 2017.

What does Buterin?

Acne Buterin, co-founder of the Ethereum platform, the token of which is the ETH, last week at a private event talked about their plans and current job.

«Lately I have been doing test protocols for Proof-of-Stake and the improvement of sharding. All Ethereum research community has paid much attention to these technologies. We believe that the PoS algorithm and scalability is really important over the last few months there has been significant progress in improving algorithms and the development of numerous restrictions,» said Buterin and added that it also considers the economic analysis of transaction fees and algorithms for transactional commissions and how they can be improved by reducing fees and increasing efficiency. «This is important, what I’m working on. Really wish that soon all of bitcoin has gone from a PoW Protocol», — said Vitaly.

Will soon begin to implement the technology Casper from the development of a network-level 2.0, which will make the transition from Ethereum blockchain consensus algorithm Proof-of-Work to Proof-of-Stake. «Casper is in the final stage and waiting for the academic analysis,» said Buterin. However, this has already been said in June, another co-founder of a platform Joseph Lubina at a conference in Hong Kong.

For a detailed description of the entire system and upcoming innovations in network acne on his Twitter page launched a «tweet-storm», which is similar to the widespread trade network «1 like — 1 fact». Read more with 75 reports of Ethereum can be found here. Note that each message contains additional reference materials from the developers, which further explain the future operation of the blockchain.

«Tweet storm» has garnered over 2000 likes, the facts are, of course, much smaller. Source.

Buterin also raised issues of trust in the blockchain system and its confidentiality. The Creator of Ethereum, believes that the technology is still not used in full measure, and the hype around new features and functionality does not give network to develop further. In addition, the preservation and confidentiality of data is far from ideal. «Currently, there are no good ways to use lock while maintaining privacy. There have been significant efforts to solve this problem, for example, using zcash for, and conducted research Ethereum. However, there is a way to declassify sensitive data on the blockchain», — said Vitaly.

During the discussion, questions were raised about the regulation of cryptocurrencies. According to Buterin required regulatory openness, which will focus on ways to facilitate the use of small amounts of amount of cryptocoins in everyday life. «I just want to go to the store and using the card to start using Bitcoin Cash. Providing a small amount of coins for users will begin to develop the crypto industry and the blockchain, which goes beyond cryptography. Because now even non-financial uses of the blockchain still require transaction fees. If we can reduce this defect thanks to one purchase in the supermarket, the cryptocurrency will be easier to use,» said Buterin and added that governments first need to understand the importance of the blockchain and its use, and only then introduce it into the system.

The Ethereum blockchain Mature large-scale changes that will dramatically change the operation of the network. Perhaps the falling rate of ETH is a marker of instability, and the next innovations, which should improve the situation in the blockchain and to stabilize the value of the cryptocurrency at the proper level.

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