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Monday, April 22, 2019

Coinbase’s Political Action Committee Shuts Down Without Ever Raising a Cent

Coinbase has shut down its political action committee after 10 months without raising any funds or backing any candidates.

Think Your Altcoin Will Beat Bitcoin ROI? Then Don’t Look at This Chart

bitcoin investment eye

Bitcoin dwarfs every other altcoin when it comes to return on investment (ROI) since initial exchange listing, data shows. Had you threw in just $100 bucks into BTC in 2010, you would be a millionaire today.


Bitcoin ROI Shows Why They’re Called ‘Altcoins’

A new visual graph from DataLight perfectly illustrates just how impressive Bitcoin ROI (return on investment) has been over the past decade.

Buying just $100 USD worth of Bitcoin in mid-2010 would have netted you a cool $1.3 million today. That is, if you managed to ‘hodl’ instead of ‘sodl’ your precious bits until today.

By comparison, every other cryptocurrency has been dwarfed by BTC when it comes to ROI since being first listed on an exchange.

Granted, when it comes to trading on exchanges, Bitcoin has an almost 3 year head start even on Litecoin, one of the oldest ‘altcoins’ and the first to use the Scrypt hashing algorithm. But for those banking on the ‘silver to Bitcoin’s gold’ to beat Bitcoin’s returns anytime soon may be out of luck.

Certainly, Litcoin has seen some impressive rips in recent years. However, the price of Litecoin has had a much different trajectory while being at the mercy of BTC market cycles.

For example LTC/USD peaked at around $35 in November 2013. These same price levels then repeated in July 2017….and again in January 2019. This is more reflective of speculative, pump-n-dump behavior than a (secondary) store of value.

Bitcoin, on the other hand, stands out  as it continues to post higher highs after every bubble making it the perennial leader of cryptocurrencies today.

Ethereum (ETH) 00 has been the best performing altcoin since its exchange debut in 2015. One hundred bucks into Ethereum would have netted you roughly $68,000 today at around $170 per ETH. Though, undoubtedly, this figure would be much higher at Ethereum’s all-time high of nearly $1,400 in January 2018.

Bitcoin-branded forks like Bitcoin Cash, meanwhile, have fared even worse, actually depreciating in value since their inception.

Bitcoin Apples to Altcoin Oranges

More recently, Bitcoinist highlighted the stellar performance of Binance Coin (BNB) 00, which has skyrocketed in value since launching in mid-2017. In fact, it has become the first cryptocurrency to surpass the January 2018 all-time high.

At the same time, comparing in-house digital tokens like BNB (and pretty much every other ‘alt’ with a foundation or a company behind it) to Bitcoin is like comparing apples to oranges.

In fact, every single altcoin is paired against bitcoin by default for a reason. Admittedly, some altcoins have performaned marvelously against BTC since their inception, particularly on shorter timeframes.

But as the saying goes: the faster they rise, the faster they fall.

That’s because their low market caps on exchanges are both a weakess and a strength. In bull-markets, for example, a lower cap means a coin can be pumped much easier allowing it to outpace the gains of high cap cryptocurrencies like Bitcoin.

On longer timeframes, however, the story repeats over and over again as Bitcoin demonstrates who’s king.

#REKT? Not With Bitcoin! Yearly ROI On Largest Cryptocurrency Still Tops 150%

Think Your Favorite Altcoin Can Beat BTC? Good Luck.

Therefore, it is no surprise that Bitcoin, being a truly leaderless, decentralized and open-source cryptocurrency, has attracted the most network effect and hashing power to be the most secure blockchain today.

Subsequently, this give investor confidence more confidence in Bitcoin above all. It also means that it’s the de facto choice for trustlessly transferring value over any other cryptocurrency regardless of fees.

It’s also no coincidence that the SEC is considering approving a Bitcoin ETF only. It’s why Bitcoin trading instruments have been the first to hit traditional markets; and why investors are increasingly calling it ‘irresponsible’ not to have exposure to BTC in 2019.

In fact, data has shown that allocating only 1 percent of one’s portfolio to bitcoin historically outperforms the S&P 500, gold and US Treasury bonds.

But, more importantly, it also highlights the possibility of a Lindy effect, suggesting that the ‘internet of money’ could be a zero sum game. If so, then betting on ‘the next bitcoin’ looks more like gambling. Whereas bitcoin is increasingly becoming the safer play and one of the best investment opportunities in generations.

As InterchangeHQ cofounder, Dan Hedl says:

You think the altcoin you’re holding will beat Bitcoin’s return? Good luck.

Is investing in altcoins a good strategy compared to only bitcoin? Share your thoughts below!


Images via Shutterstock

The post Think Your Altcoin Will Beat Bitcoin ROI? Then Don’t Look at This Chart appeared first on Bitcoinist.com.



Mt. Gox Is Automatically Filing Unregistered Creditors for Reimbursement

Mt. Gox

If you’re a creditor in Mt. Gox’s civil rehabilitation case, the defunct exchange may have automatically filed and approved a reimbursement claim for you — provided that your Mt. Gox account was verified when it was still operating.

According to a Reddit post from user DerEwige on April 22, 2019, Nobuaki Kobayashi, a Japanese attorney and trustee of the ongoing case, has alerted former Mt. Gox users who didn’t voluntarily apply for reimbursement that they will also receive compensation for their lost bitcoin as rehabilitation takes effect. The exchange is using KYC information that was originally submitted to verify accounts to register users who haven’t directly applied for rehabilitation.

Handling more than half of all bitcoin transactions at the time of its closure, the Japanese exchange suspended trades and declared bankruptcy in 2014 following an alleged hack. Since then, legal battles have been ongoing in Tokyo courts.

In June 2018, legal proceedings shifted from bankruptcy to civil rehabilitation following the court’s approval of a creditors’ petition that was filed in November 2017. The legal move provided more leeway for how creditors could be reimbursed. Two months after the shift, private individuals were allowed to begin filing claims for reimbursement and this same filing system was opened up to corporate clients that September.

In Kobayashi’s latest email to those who had assets stored on Mt. Gox and provided KYC information, he claimed that “the creditors who objected to your self-approved rehabilitation claim withdrew their objections,” and “as a result the approval of your self-approved rehabilitation claim has become effective, and you no longer need to file an application for claim assessment.”

The email also included an English translation of some of the court’s most frequently asked questions regarding the civil rehabilitation process. As section Q1-5 states, the process will now generate “self-approved claims,” wherein users will be notified that they are eligible for reimbursement even if they did not file a claim personally. DerEwige claimed that he fell into this category, as his sum of bitcoin stored in Mt. Gox was so small that he did not consider an arduous claims process to be worth the effort.

It is unclear how difficult it will be for non-KYC clients to pursue civil rehabilitation, just as it is unclear what form of reimbursement this will take and on what timetable it will be carried out.

The FAQ added that “the submission deadline for a rehabilitation plan is April 26, 2019, but it may be extended depending on the progress of the proceedings,” claiming that users “will be informed through the appropriate channels, including this website, when a rehabilitation plan is submitted.” Besides this deadline to make a plan, no concrete objectives in the roadmap have been made public knowledge yet.

This article originally appeared on Bitcoin Magazine.



Bittrex: ‘North Korean’ Accounts Flagged by NYDFS Were Actually South Korean

Crypto exchange Bittrex says New York regulators erred in identifying two of its users as North Korean.

Moon Enables Lightning Network Payments on Amazon

News Bit Moon

Crypto payment startup Moon has announced an online web browser extension that allows crypto users to make purchases on e-commerce sites like Amazon.com with Lightning Network payments, CoinDesk reported.

Once the extension has been added to a user’s browser, they will be prompted to register and integrate it with a Lightning-enabled wallet.

It should be pointed out that Amazon itself doesn’t accept bitcoin. Rather, the process begins with the user paying with crypto assets followed by a payment processor converting the assets into fiat currency and settling with the merchant.

At checkout, the Moon extension provides a typical QR code with the invoice for payments. Once payment is completed, the user should be redirected to Amazon's Success Page. Moon is available in the Chrome Web Store but its Lightning Network feature is under review.

This article originally appeared on Bitcoin Magazine.



Nobody Shills Bitcoin Quite Like The International Monetary Fund (IMF)

The International Monetary Fund (IMF) may have accidentally delivered its biggest advertisement for Bitcoin yet as it argues for negative interest rates.


Bitcoin Proponents Thank IMF… Again

Retweeting a blog post from February this year, the financial organization reiterated its faith in central banks increasing negative interest rates – essentially taxes on using money.

“In a cashless world, there would be no lower bound on interest rates. A central bank could reduce the policy rate from, say, 2 percent to minus 4 percent to counter a severe recession,” the blog post read.

The interest rate cut would transmit to bank deposits, loans, and bonds. Without cash, depositors would have to pay the negative interest rate to keep their money with the bank, making consumption and investment more attractive. This would jolt lending, boost demand, and stimulate the economy.

IMF Bitcoin

This time round, the IMF’s advocacy caught the attention of the Bitcoin industry.

In demonizing storing cash for free, negative interest rate proponents unwittingly increase the appeal of the very alternatives to fiat which endanger its stability.

Bitcoin, as the IMF itself has noted on many occasions, is one of those alternatives.

“[Negative interest rates] won’t work, as savers will instead bid up prices of cash substitutes such as gold, bitcoin, vodka and toyotas,” Adamant Capital founding partner and Bitcoin bull Tuur Demeester responded on Twitter.

Others followed suit, wryly thanking the IMF for endorsing keeping wealth outside the fiat-based financial system.

How Bad Is Bitcoin Anyway?

As Bitcoinist reported, the organization has so far failed to offer a definitive perspective on Bitcoin.

In a blog post earlier this month, managing director Christine Lagarde called for a balanced reception of the industry, echoing previous statements in which she refused to dismiss the phenomenon.

The line runs in stark contrast to the much more damning verdicts from other global financial structures such as the Bank for International Settlements (BIS).

“Above all, we must keep an open mind about crypto assets and financial technology more broadly, not only because of the risks they pose, but also because of their potential to improve our lives,” she wrote.

At its annual Spring Meetings event in Washington last week meanwhile, the IMF, together with the World Bank, listened to no fewer than three countries express their determination to issue a Bitcoin bond.

This, argued representatives of Afghanistan, Tunisia and Uzbekistan, could shore up industry in the face of problematic borrowing access.

Facilitating its issuance would be Blockchain technologies such as Hyperledger, Afghanistan added.

What do you think about the IMF’s accidental Bitcoin shill? Let us know in the comments below!


Images via Shutterstock

The post Nobody Shills Bitcoin Quite Like The International Monetary Fund (IMF) appeared first on Bitcoinist.com.