Inside Cryptocurrency - August 22nd, 2019

Inside Cryptocurrency (Aug 22nd, 2019)

So-called Bitcoin creator / Chinese mudslides / Peter Schiff and Bitcoin reaching $50k

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Market Watch: The market is mostly in the green today as prices continue to change and settle. However, Bitcoin appears to have stalled at the $10,000 mark with figures beyond just out of reach.

  • Bitcoin: $10,134 (⬆️ 1.10%) // $181.3 billion market cap.
  • Ethereum: $189 (⬆️ 2.94%) // $20.3 billion market cap.
  • XRP: $0.271 (⬆️ 3.30%) // $11.6 billion market cap.
  • Bitcoin Cash: $304 (⬆️ 2.75%) // $5.4 billion market cap.
  • Top 100 Winner: Basic Attention Token: $0.195 (⬆️ 14.62%) // $250 million market cap.
  • Top 100 Loser: Egretia: $0.021 (⬇️ 14.27%) // $90 million market cap.

Prices are as of 10:05 a.m. EDT.

1. Another so-called creator of Bitcoin has come forward. This time it's a British man, with a background in IT, who works for the U.K.'s National Health Service (NHS) by the name of James Bilal Caan. According to Caan, he created the popular cryptocurrency, but "lost" the early coins - now worth $8.1 billion - after losing the original hard drive they were on. Caan explains that when he sent off his laptop for repair that's when his misfortune began. He said that he was "overly confident" that the repair people wouldn't have access to his HDD data, but that when his laptop was returned it contained a new HDD minus his Bitcoins. According to the report, Caan's claim doesn't ring true. For instance, it points out that someone with an IT background wouldn't send off their laptop for repair. In addition, the released photo of Caan is another red flag, the article states, as it looks as though it's been created using artificial intelligence (AI). Caan is one of many that claim to be the creator of Bitcoin. Australian academic Craig Wright is another. –THE SUN

2. Mudslides in China’s Sichuan province have forced Bitcoin miners to halt operations. Heavy rain has continued to fall since the start of the week with 17 counties reportedly affected in the area. At least seven people were killed in the Wenchuan county. Bitcoin mining facilities have also been covered in mud. The extent of the rainfall saw heightened levels of water in reservoirs, which were used by local hydropower plants. As a result, many stations ceased creating electricity. It's reported that Bitcoin's 24-hour average hash rate dropped from around 78 exahash per second on Monday and Tuesday to about 73 exahash on Wednesday. –COIN DESK

3. Throwback Thursday: Crypto Market Hits "Panic Mode"

Last August, the crypto industry saw prices plummeting amid a massive market selloff. At the time, Ethereum fell nearly 20 percent in value in 24 hours, dropping to around $262, whereas Bitcoin was down seven percent to just over $6,000. According to analysts, the industry had hit "panic mode."

Following the boom in initial coin offerings (ICOs) during 2017 and into 2018, as a way of raising funds for various projects, analysts linked the market decline to the liquidation of funds. As a result, companies were taking measures to sell the Ethereum raised, which saw it falling to its lowest price in a year.

One Twitter user posted a tweet that showed the net losses of various altcoins over a 30-day period. At the time, NEO was down the most at 54.43%, followed by XRP at 40.60%. One investor who had got into the market at the end of January following the December bull run, which saw Bitcoin rise to $20,000, posted their woes on Reddit. Their initial investment of $25,000 across a variety of coins soon dwindled to around $5,000.

4. American stockbroker Peter Schiff has said that Bitcoin will never reach $50,000. The proclamation was made on Twitter in response to Tom Lee, co-founder of Fundstrat Global Advisors. Lee was responding to a CNBC video interview of Schiff where he claimed that gold would reach $5,000 in two years. Lee replied: "hahaha. This is hysterical." Hitting back, Schiff pointed out Lee's previous $50,000 price target for Bitcoin by the end of 2018, which didn't come to fruition, adding that gold will eventually hit $5,000. "Bitcoin will never hit $50k," Schiff said. Earlier this month, the stock broker argued that CNBC was "devoting" more airtime to Bitcoin than gold. –DECRYPT

5. India's Supreme Court Justice Rohinton Fali Nariman has given the Reserve Bank of India (RBI) two weeks to justify its crypto ban. Last July, India's central bank banned banks for providing services to cryptocurrency platforms. Yet, while an injunction was filed against the RBI, the Supreme Court denied the request. Now, in the latest session hearings into the actions of the bank, the court ruled yesterday that it had not responded to concerns from the crypto industry regarding its actions. As a result, Nariman has given the RBI two weeks to respond, which it has agreed to. Earlier this month, it was reported that India faced losing nearly $13 billion worth of the crypto market if it went ahead with its proposed ban. –COINTELEGRAPH

6. Crypto exchange Gemini has launched in Australia. Founded by Tyler and Cameron Winklevoss, this is the platform's fifth international move. Australian users will now be able to buy and sell Bitcoin, Ethereum, Bitcoin Cash, Litecoin, and Zcash on the exchange. Other locations for Gemini include Canada, Hong Kong, Singapore, South Korea, and the U.K. The news follows the Winklevoss twins saying they are open to joining Facebook's Libra Association. –COIN DESK

7. Two thieves have been caught on tape after they allegedly stole a Bitcoin ATM in a mall in Washington DC. The two, reportedly, timed their actions so they could steal the machine when the shops were closed, but the mall remained open. Interestingly, no one is thought to have taken much notice of the two thieves as they took the ATM, carried it to a van, and drove away with it. The theft was not noticed until a week later. It's not known if the suspects have been found. –MSN

8. Yuzhnoukrainsk nuclear power plant operators in Ukraine have been arrested after using the facility to mine cryptocurrency. According to the Security Service of Ukraine (SBU), the miners compromised the plant's security by leaking classified information. Back in 2018, several engineers at the Russian Federal Nuclear Center were arrested after trying to use one of the world's largest supercomputers to mine Bitcoin. –UNIAN

9. Litecoin Foundation employees have voluntarily taken a pay cut as the organization sees a decrease in the number of donations received. In an interview, Xinxi Wang, a board director at the Litecoin Foundation, said that donations during Q1 2019 dropped due to "market stagnation," which impacted daily operations. As a result, employees decided to take a pay cut to help the foundation "weather the storm." –LITECOIN TALK

10. U.S. Secretary of State Michael Pompeo has said that cryptocurrencies such as Bitcoin should be regulated under the same framework as "other electronic financial transactions." In his opinion, the same requirements that apply when using SWIFT or through financial institutions should also apply to crypto transactions. He did add, however, that this would be difficult to do. –CNBC

This newsletter was written and curated by Rebecca Campbell. She has been writing and reporting on various industries for the past 10 years, more specifically tech in the last three. Connect with her on Twitter.

Editor: David Stegon (senior editor at Inside, whose reporting experience includes cryptocurrency and technology).

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