The main events of the week in the bitcoin and blockchain-industry (time loan-to 03.09.2018 — 09.09.2018)
Traditional Sunday digest ForkLog — sudden collapse of the market of cryptocurrencies and a free peak of Ethereum, Bitcoin Gold delisting on Bittrex and the scandal surrounding Eric Vorhees exchange ShapeShift.
Bitcoin in the red zone, and Ethereum even further
If last week we witnessed the market recovery of digital currencies, this bitcoin and other coins returned to the already familiar to 2018 downside movement amid fake news, and uncontrolled panic.
So, in the beginning of the week the price of the first cryptocurrency was kept at $7300-$7400. The asset volatility reached the lowest annual values (8,88%). Then, on 5 September, the exchange rate has suddenly fallen by $500 in just two hours, dropping below the psychological mark of $7000.
At this peak of the asset is not ended, and the morning of 9 September on some commercial sites the course “digital gold” fell below $6200, almost came close to the level of $6000, which bears stormed for the whole year.
As of 12:00 UTC the market is experiencing a bounce from a level accumulation of buy orders, and the price of bitcoin almost instantly returned to the neighborhood of $6400.
Bitcoin just went from $6,190 to $6,450 in seconds pic.twitter.com/oaLUq0YwK0
— Joseph Young (@iamjosephyoung) September 9, 2018
In retrospect, it can be assumed that the main negative factor this week that influenced such a sharp correction was disseminated by the publication Business Insider information that Goldman Sachs will not in the foreseeable future to create specialized cryptocurrency trading division.
The news was fake: chief financial officer of conglomerate of the Martin Chavez said that the plans of Goldman Sachs for the last time, nothing has changed. Nevertheless, the market did not react to the denial.
It should be noted that the second capitalization of the Ethereum cryptocurrency week was much worse than the market flagship. The price of the asset on a seven-day interval has fallen by more than 35% and even touched the level of $190. It is noteworthy that this price level was overcome in July 2017.
The market capitalization of the ETH for the past seven days declined by more than $10 billion and at the time of writing was about $20.5 billion.
At the same time, the Bitfinex team was recorded the absolute historical maximum in the number of short positions on the Ethereum — 211 000.
This week the Creator of Ethereum, Vitalik Buterin also entered into debate with the Bitcoin Core developer Jeremy Rubin, who criticized the “world computer” criticism due to the “economic abstraction”, which assumes that payment of the fee for the execution of smart contracts, or transactions may be performed using token standard ERC-20 or asset that is not associated with cryptocurrency Ethereum.
Jeremy Rubin said that if all the owners of smart contracts could pay for gas in their native treaties tokens, this would lead to an overabundance of Ethereum cryptocurrency on the market and, consequently, its price collapse.
To solve the problem, the Creator of Ethereum proposed two options: modification of the market remuneration and a fee for the storage of data in the network.
Amid such an adverse situation in the market of cryptocurrencies is the co-founder of the sixth largest pool F2Pool Xing Yu posted a table of breakeven for different mining devices subject to the electricity tariff of 0.45 yuan per kWh ($0,06).
It turned out that the miner Terminator 2 (T2) from the Chinese holding company Innosilicon at the moment is the most efficient for mining bitcoin.
Meanwhile, the companies controlled by Bitmain the second largest mining pool AntPool techniques involved in the extraction AsicBoost block bitcoin #540032.
Eric Vorhes, ShapeShift and scandal surrounding the program membership
Known platform for instant exchange of bitcoin and other cryptocurrencies ShapeShift has launched a membership program involving the collection of personal data of users.
The loyalty program offers a number of advantages, including more favorable terms of exchange, awards for the transaction with the token FOX, depending on the volume of transactions, and increased transaction limits.
Nevertheless, in the future the exchange will require all users to register and provide personal data.
This decision management platform has caused a flurry of criticism from the bitcoin community, since ShapeShift was one of the few industry veterans whose business model still provided the privacy of customers.
ShapeShift CEO Eric Vorhes stressed that the company was forced to make this decision including the reason for the unclear position of the regulators with respect to cryptocurrency exchanges and exchange platforms.
In more detail the situation can be found in a special review ForkLog.
Bitcoin Gold leaves Bittrex
Bitcoin exchange Bittrex has decided to withdraw Bitcoin Gold after the developers of this cryptocurrency refused to pay compensation in the amount of 12 372 BTG after the may “attack 51%”.
Our community asked us to comment on Bittrex”s action regarding BTG. You can read our full response here: //t.co/UZWaIFRwHb
— Bitcoin Gold [BTG] (@bitcoingold) 3 Sep 2018
Delisting will be held on September 14.
Rendered another decision on extradition of Alexander winnik in Russia
On 4 September the Supreme court of Greece decided to extradite the alleged co-owner of a cryptocurrency exchange BTC-e of Alexander Vinnik of Russia. The decision shall enter into force on September 14.
Meanwhile, Analytics firm Elliptic believe that winnick can help law enforcement agencies of the United States to understand the case of alleged GRU officers, accused of meddling in the American presidential campaign of 2016.
At Elliptic believe that the staff of the Russian military intelligence, allegedly associated with the hacking group Fancy Bear, bought servers, domains, and the work of hackers with bitcoin via BTC-e and also laundered money.
Coinbase can apply to launch a bitcoin ETF
Business Insider has published information about what Coinbase is considering launching a bitcoin ETF and conducts appropriate consultations with investment giant BlackRock. It is not excluded that one bitcoin Coinbase will not be limited and will make the investment basket is bound to multiple cryptocurrencies.
Source Business Insider also added that representatives of the working group BlackRock Coinbase has not yet yielded specific recommendations. In addition, according to him, BlackRock itself is not interested in launching a bitcoin ETF.
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