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Bitcoin’s Offensive Continues as Prices Breach $3,400

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Bitcoin’s value jumped to a new record on Tuesday, a clear indication that the bull market was back in vogue following a month of turmoil.

$3,000 & Beyond

The virtual currency (BTC/USD) rose 2.4% to $3,468.00 in overnight trading, according to Bitstamp. Before the weekend, the BTC/USD had crossed the $3,000 mark only once.

At current prices, the market value for all bitcoins is more than $57 billion – the highest on record.

While post-fork exuberance shows no signs of fading, traders are reminded that bitcoin’s recent leg up has been accompanied by decreasing volume. In fact, a similar trend has been observed during every leg up from $1,800.

Zooming out to the 1-day Bollinger Band, the market appears to be overbought. A historical analysis reveals that, more often than not, a puncturing of the Bollinger Band in either direction leads to a broad pullback in the market.

The daily RSI also adds credence to the view that the market is approaching overbought territory.

Bitcoin Cash Trading Well Below Its Peak

Bitcoin’s surge followed the creation of a spin-off digital currency – Bitcoin Cash (BCH) – last week. The newly minted coin spiked above $700.00 on Aug. 2 before a series of volatile moves dragged prices back toward $200.00.

BCH was back above $300 on Tuesday, having gained more than 27%. Its total market is valued at more than $5 billion.

Coinbase Caves to Investor Demand

U.S. cryptocurrency exchange Coinbase has announced that it plans to support BCH as of January 2018. Initially, the exchange said it would not support the new coin, triggering outrage among users and a surge in withdrawals.

A contingency of Coinbase customers also threatened to sue the exchange for not supporting BCH, equating the decision to a brokerage withholding new shares from its investors.

“We are planning to have support for Bitcoin Cash by 1 January 2018, assuming no additional risks emerge during that time,” the leading exchange said on its blog.

Short-Term Money or Faith in Crypto? Why VCs Invest in ICOs

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Panos Mourdoukoutas, Professor at LIU Post in New York and Columbia University, recently wrote that venture capital firms and investors are eyeing several leading digital currencies. He placed particular emphasis on the participation of venture capital in several Ethereum-based ICOs.

On July 7, Cointelegraph reported that some Bitcoin and Blockchain startups had begun to appeal to traditional VC firms.  In fact, some of the largest companies in the world, such as the Hangzhou-based Holley Group, have recently begun investing in ICO and Blockchain projects.

Do ICOs need VCs?

Analysts such as Mourdoukoutas fail to consider that the purpose of ICOs is to eliminate the necessity of venture capital investors entirely.

ICOs are intended to decentralize funding; they were never meant to become a vehicle for venture capital investment. Some Blockchain projects and ICOs appear to be deliberately taking advantage of the current speculative frenzy, using it to woo VCs.

Not all venture capital in the cryptocurrency and Blockchain sector are looking to buy ICOs and quickly flip them for short-term maximum profits. A number of venture capitalists have taken up the role of “patient capital” in an effort to maximize profits over the long term.

Not all venture capital firms and institutional investors within the cryptocurrency sector are looking to amass massive fortune within a short period of time.

Some dedicated venture capital firms that have genuinely tried to improve the cryptocurrency industry by financing early-stage startups and supporting their visions have created large-scale companies that actually have consistent revenue streams and millions of active users.

Infrastructure and the growth of the sector

For instance, Coinbase became the first billion dollar company within the Bitcoin industry earlier this year and is set to raise another hundred million dollar funding round to expand its services and operations internationally.

Exchanges and wallet platforms like Coinbase have not always been profitable. Blockchain, the world’s second largest Bitcoin wallet platform, has also raised$40 mln in a new funding round established in June, regardless of its services that have low-profit margins and small revenue streams.

Hence, the vast majority of venture capital firms within the Bitcoin sector have actually contributed to the formation of necessary infrastructure for exchanges, trading platforms and wallets.

While it is possible that venture capital firms that have newly entered the sector are attempting to amass large amounts of capital in a short period of time, most venture capital firms within the cryptocurrency sector have played a key role in allowing the market to grow to a $115 bln market.

Some VC firms may see a short-term money making project in cryptocurrencies while many VC firms and angel investors truly believe in the technologies offered by Bitcoin, Ethereum and other cryptocurrencies.

India Close to Finishing Work on Cryptocurrency Rule Proposals

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India’s government has reportedly completed work on a proposal that outlines possible steps for regulating cryptocurrencies.

According to local media source Business Line, the report, submitted by an intergovernmental body put together in April, has been delivered to the Indian Ministry of Finance.

It’s contents are currently unknown, though media reports in recent weeks suggest that at least some of the panel’s participants want to adopt a more restrictive stance. Other sources have indicated that India may ultimately move to establish some kind of tax policy for cryptocurrencies.

As previously reported by CoinDesk, the committee was established in order to examine the current framework in for cryptocurrencies in the country. Startups in India that work with bitcoin or blockchain have called for an inclusive stance from the government, particularly in light of confusion among consumers about the tech’s exact legal status.

It’s not clear when the Indian Ministry of Finance will publish the report or in what form that release will take.

Meanwhile, efforts to examine the regulatory environment for the tech continue to expand.

CoinDesk reported earlier this week that the Securities and Exchange Board of India (SEBI) has unveiled a broad advisory committee that will research blockchain and other technologies. The goal, according to SEBI, is to see whether the tech could be applied to its own regulatory processes.

Hackers Blackmail HBO for Bitcoin as They Threaten to Release Hit Series Game of Thrones

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On July 31, news broke of a major cyber incident affecting HBO. According to reports, the network experienced a major cyberattack. The hackers behind it are currently demanding the equivalent of about $6 million in bitcoin, and claim that if they don’t get paid they will release 1.5 terabytes of data they stole from the network.

Reportedly, this includes scripts and other content from the hit series Game of Thrones, as well as sensitive information stored on folders dubbed “Budget,” “Legal”, “Licensing & Retail”, and more.

To prove they really did hack HBO, the hackers released about 3-4 gigabytes of data, that included a list of network administrator passwords, as well as a month’s worth of emails taken from the account of the network’s vice president for film programming, Leslie Cohen.

The hacker(s), dubbed “Mr. Smith” made their demands through a five-minute video that was included in the data dump. With white text scrolling over a black background, they delivered their message that told HBO to pay up, or see 1.5 terabytes of sensitive data – including entire series – get dumped online.

The hackers demanded “6 months worth of salary in bitcoin” which, according to them, means about $6 million. They claim to make between $12 million to $15 million per year blackmailing organizations whose networks they manage to compromise. The hackers claimed they will only deal directly with HBO CEO Richard Plepler, and that they will only send payment details once.

HBO has already recognized that “proprietary information” has been stolen, and stated that it is currently investigating the attack along with cybersecurity experts and police. However, the network doesn’t believe its email system has been compromised.

Hackers Claim to Use Zero-Day Exploits

According to the AP, the text in the video was written in often flawed, fluent English that used a lot of pop culture references. In it, the hackers claimed that it took them six months to breach HBO’s network. Their biggest threat is to superimpose “HBO is Failing” on stolen shows they dump online, effectively disrupting the network’s business.

In the 3-4 gigabytes of dumped data, alleged confidential documents were leaked, including a spreadsheet of legal claims against the network and job offer letters to top HBO executives.

The video further adds that the hackers spend half a million dollars per year on “zero-day” exploits that allow them to break into networks by taking advantage of flaws Microsoft and other companies haven’t fixed yet. It claims HBO is the 17th victim, and that only three targets refused to pay so far.

According to Variety, Internet security company IP Echelon has been hired to hide the leaked files from Internet search results so that the damage is minimized. The company has reportedly sent a DMCA takedown notice to Google, as according to reports the leak included “thousands of Home Box Office (HBO) internal company documents.”

IOTA Blockchain to Help Trace Families of Refugees During and After Conflicts

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IOTA, the public permissionless distributed ledger, has forged a partnership with REFUNITE, the world’s largest missing persons database, to use the former’s Blockchain to reunite families during and after conflicts.

The non-profit deal will provide REFUNITE expertise in Decentralized Ledger Technology (DLT) and hands on participation.

On a daily basis, 28,300 people are forced to flee their homes as a result of oppression and conflicts globally. UNHCR figures indicate that an anomalous 65.6 mln people around the world have been forced from their home.

Briefing Cointelegraph about the deal, David Sonstebo, Co-founder of IOTA, says he considers it as a very important advancement for IOTA, as it represents the beginning of a long and fruitful journey exploring how DLT can help refugees and refugee camps.

Sonstebo explains:

“When dealing with the sheer size of refugee camps and refugees, you need a scalable solution. And IOTA is the only scalable distributed ledger with no fees at the moment. In addition to this, the IOTA Foundation is currently engaged in utilizing technology for the improvement of the condition of refugees and people in impoverished nations. For example, we took part in “Hack4Farming” in Kenya last year to explore who to use distributed ledger for farming optimization.”

Partnership with REFUNITE

Currently, REFUNITE is operating across 25+ countries helping refugees who have become separated from loved ones to reunite.

“Typically, families become separated in the wake of conflict, often never to find each other again. We currently help more than 700,000 refugees with finding their family,” Christopher Mikkelsen, Co-founder of REFUNITE tells Cointelegraph.

He reveals that REFUNITE was founded in 2009 after helping a young Afghan refugee named Mansour who had lost track of his entire family during their escape from the Taliban.

Mikkelsen notes:

“In the process of helping Mansour, my brother and co-founder, David and I realized that none of the large international organizations had created any kind of interlinked data infrastructure that could collect, curate and distribute information about missing loved ones across borders, refugee camps, and indeed the refugee populations themselves. Think of it as them missing a distributed ledger to record, verify and connect information on parents looking for their kids.”

Christopher maintains that the partnership with IOTA represents an opportunity to think through their separate but joint philosophies about helping people and the world through tech, and by empowering users, be they people or companies, through distributed ledgers and decentralized access to the knowledge economy.

“This will help build a more inclusive and exciting future,” he said. “IOTA, being the first public distributed ledger that enables scaling and getting rid of fees, is a great match with REFUNITE.”

The REFUNITE boss is convinced working exclusively with private companies and foundations, who understand the startup-like approach to philanthropy, where multiple iterations through a product, with many trials falling flat, is the only way to find an approach to help people and scale at diminishing costs.

“We believe the many challenges our world faces can only be solved through win-win partnerships instead of pure charity,” he inferred.

Ether Tops $300 as Price Rises to 30-Day High

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The price ether, the cryptocurrency that powers the ethereum blockchain, hit a high above $300 today, rising to a press-time total of just over $307.

With the move, the price climbed to its highest total since June 30, according to data from Coinmarketcap, a time when it was descending from all-time highs set in early June amid a wave of initial coin offerings (ICOs) on the platform.

Still, ether appears to be bucking its recent downtrend, rising more than 35% over the last week, up from the $227 total observed at the start of trading on August 2.

The price increase further comes at a time when the price of bitcoin is at or near all-time highs. Bitcoin set a new record earlier today, climbing above $3,500 for the first time in history.

At press time, the appreciation of both assets appears to pushing overall investment in cryptocurrencies higher, with the total value of all publicly traded cryptographic assets reaching an all-time high just above $124 billion.

Fidelity Brings Bitcoin Tracking to Traditional Investor Portfolios

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Fidelity users can now track their bitcoin and cryptocurrency investments alongside more traditional assets.

Announced today, the company’s R&D and innovation unit, Fidelity Labs, is formally partnering with cryptocurrency startup Coinbase to make the feature available. Fidelity customers must already have a Coinbase account to take advantage of the service, which will be rolled out to users starting tomorrow.

The move effectively formalizes work Fidelity CEO Abby Johnson first teased months ago at CoinDesk’s Consensus 2017 conference.

As such, Fidelity’s Hadley Stern, a senior vice president and managing director, built on the narrative put forth by Johnson in her speech, framing the move as part of the company’s inquisitive outlook on the new tech.

Stern told CoinDesk:

“We’ve made bitcoin available for use in our cafeteria. We’ve enabled people to donate bitcoin to their Fidelity Charitable Donor Advised Fund. The partnership with Coinbase is another point along that path of bitcoin development.”

He continued: “With each of these different experiments we’re learning along the way.”

Cautious inroads

The announcement comes at a time when large, traditional financial services firms are beginning to take small steps to engage with the cryptocurrency ecosystem, spurred by the rapid increase in value of the nascent asset class.

Last month, for example, American Express partnered with portfolio firm Abra, effectively allowing cardholders to purchase bitcoin for the first time on the peer-to-peer payments app.

In a sense, Fidelity has upped the ante by allowing investment customers to view their entire integrated portfolio of assets, cryptocurrencies included, on a single platform. At this point, however, the functionality is read-only – meaning clients aren’t able to execute trades on the Fidelity platform.

However, it could be read as the first step toward potentially expanded services.

Hadley hinted at this possible interpretation, though he stopped short of saying so, framing the announcement as part of Fidelity’s “continuing commitment” to developing products and services using new technology.

Australian Senators Call On the Reserve Bank to Back Bitcoin

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Senators in Australia are putting their political differences aside and are banding together to urge the Reserve Bank to back bitcoin as an official currency.

According to Labor senator Sam Dastyari and Liberal senator Jane Hume if the Reserve Bank of Australia doesn’t embrace the digital currency it could risk Australia’s future competitiveness, according to The Sydney Morning Herald.

As part of their efforts to get the central bank on board Dastyari and Hume have formed a group called the Parliamentary Friends of Blockchain.

The efforts from the lawmakers comes at a time when bitcoin broached the $3,400 mark for the first time in its history, with $3,500 easily within sight. With the digital currency gaining prominence in value and increased adoption it has suddenly become a contender in the financial sector.

So much so, that Australia’s lawmakers want the central bank to create its own digital currency and blockchain to use on the market.

Already this year, the government of the Australian state of Victoria announced that it had become a member of the Australian Digital Currency and Commerce Association (ADCCA) in its bid to explore commercial blockchain applications.

Philip Dalidakis, Victoria’s minister for small business, innovation and trade, said that it gives the government a better understanding of the technology.

He added:

This [membership] will give our FinTech startups and entrepreneurs the best possible chance of succeeding.

Ronald Tucker, the chairman of the ADCCA, said that a digital currency in Australia that was backed by the government would cut settlement times.

He said:

It would be an auditor’s dream because you’ll be able to see any transaction that moves on it.

In April, it was reported that the Reserve Bank was studying the blockchain for the financial system. According to the report, the central bank underlined blockchain technology as an aspect of FinTech that “has been examined closely.”

Litecoin Sustains Price Rise, Posts More Than $1 Bln of Trading Volume in Early July 2017

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The cryptocurrency Litecoin continues to register a phenomenal price increase as of early August 2017 leading some market analysts to proclaim it as investment-ready.

The digital currency some call “digital silver” posted a trading volume of more than $1 bln on July 5, 2017, allowing it to briefly surpass even Bitcoin’s daily volume.

Litecoin Coinbase

Source: Coin Market Cap

Litecoin is considered as the “younger sibling” of Bitcoin since it was originally created as a fork of the leading virtual currency. The two cryptocurrencies’ networks are also based on the same Blockchain principle in which every next block contains the hash function of the previous one.

Brief Litecoin background

Litecoin was conceptualized by developer Charlie Lee as an alternative to Bitcoin. Litecoin was based almost entirely on Bitcoin’s code, with only two small changes: faster blocks (2.5 minutes) and a slightly different mining algorithm (Scrypt).

Litecoin’s market capitalization reached $2.6 bln earlier in 2017 and has maintained that value, trading at $45 today.

Future prediction for Litecoin

Due to its continuous solid growth and performance, I believe Litecoin will become one of the leading cryptocurrencies in the near future. This forecast is due to some developments on the digital currency that made it a growth leader in the market. Among these developments are Litecoin’s integration by the digital wallet Jaxx, its addition to the Apple App Store and the implementation of the SegWit on the Litecoin network.

Another positive development for Litecoin was the resignation of its founder Charlie Lee from Coinbase. Lee can now devote himself full-time to promoting the digital currency, his main project.

It’s Official: Segregated Witness Will Activate on Bitcoin

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Segregated Witness (SegWit) has reached its lock-in threshold.

The long-debated scaling upgrade reached the necessary threshold to “lock in” today at block 479,707 with 100% of bitcoin mining pools signaling support for the proposal. According to network data, the block was mined by BitClub.

But the change won’t officially lock-in until tomorrow, once the signaling period has ended.

Further, the change will be unusable, as CoinDesk described in more depth, for a couple more weeks.

The network will move into a roughly two-week “grace period,” to give users and mining pools a chance to upgrade their software. After that, which looks to end August 21, SegWit will activate and miners will start rejecting blocks that do not support the change.

First proposed by bitcoin developer Pieter Wuille in December 2015, the expectation for SegWit is that it will open up several ways to scale bitcoin to support more users. While this doesn’t seem particularly contentious, it has been the subject of tireless debate within the bitcoin community.

Other communities such as litecoin managed to activate it last spring.

But today, the SegWit loop has been closed for bitcoin.