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RSK Sidechain Is Now Secured by 45% of BTC’s Hashrate

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On Feb. 14, the cryptocurrency infrastructure organization led by RSK Labs announced the one-year anniversary of the RSK network and highlighted several notable achievements. Over the last 12 months, the project’s merge mining has managed to gather 45 percent of the Bitcoin Core (BTC) network hashrate, making the RSK smart contract system more secure than most blockchains.

Also Read: Bitcoin’s Social Contract Must Be Resilient to the Whims of Future Generations

Smart Contract Infrastructure Backed by More Than 20 Exahash of PoW

At approximately 1:41 a.m. CST on January 4, 2018, RSK Labs mined the sidechain’s genesis block. Since then, the blockchain network has increased its merge mining hashrate from 4 percent of the BTC network to 45 percent today. Following this milestone, the RSK team announced that the company’s RSK sidechain has become “the most secure smart contract platform in the world.” RSK’s recent blog post explains that to 51 percent attack the BTC chain would cost $244,853 per hour. “By surpassing 45% of the hashing power of the Bitcoin network, an attack on the RSK smart contract network would cost approximately US$ 112,000 per hour,” the RSK announcement detailed. “This makes RSK one of the most secure and reliable platforms for developers to build their decentralized apps (dapps), and proves that merge-mining can succeed in securing Bitcoin sidechains.”

RSK Sidechain Is Now Secured by 45% of BTC's Hashrate
The merge mined sidechain RSK has been tethered to the BTC blockchain for more than a year, gathering 45% of the overall hashrate.

During the announcement, Diego Gutierrez Zaldivar, chief executive of RSK Labs, explained that because BTC miners are able to secure its own chain alongside sidechains at no added cost, this gives people the ability to build layer 2 solutions confidently. Moreover, the RSK executive details that this type of system also facilitates layer 3 solutions.

“The development of layer 3 services — such as RIF OS — will be vital to scale Bitcoin and RSK to service tens of millions of users while providing peer-to-peer financial services, secure messaging, data storage, and other forms of decentralized services powered by Bitcoin,” Zaldivar emphasized.

Root Infrastructure Framework and the Internet of Value

The RIF system stands for Root Infrastructure Framework Open Standard (RIF OS) and the system is a purpose-driven organization that provides developers with peer-to-peer infrastructure services and software libraries to support easier and scalable dapp development. Over the last year, RSK Labs has partnered with more than 50 crypto-related organizations in order to expand the RSK sidechain network. Initially, the project started with its original 21 million smart bitcoins (SBTC) which circulate within the RSK network. But with the RIF OS, the company has created the RIF token which is intended to enable compatibility with RIF OS protocols and dapps.

RSK Sidechain Is Now Secured by 45% of BTC's Hashrate
The founders of RSK Labs have created a supply of RIF tokens for the firm’s new Root Infrastructure Framework Open Standard (RIF OS) system. Initially, there are only 320 million RIF tokens and the rest of the units are locked in the smart contract and dispersed over the course of five years.

People interested in how the RIF OS infrastructure works and its associated token can read the whitepaper written by the founding members of RSK Labs. The RIF token smart contract was officially deployed on the RSK blockchain on November 9, 2018, at approximately 8:12 p.m. UTC. At the moment, the RIF token smart contract has minted 1 billion coins, but only 320 million have been made available to be redeemed by the early contributors to the project, the RIF token whitepaper explains. The rest of the tokens are locked into the contract and will unlock themselves autonomously over a period of five years.

“Bitcoin set the foundation for the construction of a new internet for the transfer of value,” Zaldivar detailed. “Both the RSK smart contract network and RIF OS were created as a means to move this vision further with the hopes that this new internet of value will foster prosperity and equality around the world.”

Cryptocurrency community members haven’t seen a merge mining project like RSK since the Namecoin project which works in a similar fashion. Many other blockchains can be merge mined with the same proof-of-work (PoW) consensus algorithm that allows various networks to be mined simultaneously. Essentially the RSK blockchain works in the same manner and the smart contract system is bolstered by being secured by more than 20,000,000 trillion hashes per second at the time of writing.

What do you think about RSK’s smart contract system? Let us know what you think about this subject in the comments section below.


Image credits: Shutterstock, RIF OS, and Rsk Labs. 


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The post RSK Sidechain Is Now Secured by 45% of BTC’s Hashrate appeared first on Bitcoin News.

Bitcoin’s Social Contract Must Be Resilient to the Whims of Future Generations

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Over the last few years, infighting and different visions has led to significant divides within the Bitcoin community, weakening the network effects no matter which chain you support. With all the arguments about scaling, privacy, consensus changes and the various forks, it is amazing that these public networks are still thriving. Nevertheless, the people who maintain the various software protocols that communicate with Bitcoin and the network’s many participants have lives that are finite — which means we don’t know if future generations will change the social contract Satoshi Nakamoto created years ago.

Also Read: Core Developer’s 300kb Block Proposal Bolstered in Bid to Push Lightning Adoption

Understanding the Social Layer of Bitcoin

The technology we all know and love called Bitcoin has changed the lives of many individuals over the last 10 years. However, during the latter half of that decade, the humans who have maintained the protocol have relentlessly argued over how it should operate. This has led to a large community divide, endless fighting, and many different forks. The protocol itself, however, has been able to continuously perpetuate the social contract we call “Bitcoin” during this period. However, the arguments have led to wavering opinions and whimsical ideas that threaten the Bitcoin network’s social contract.

Bitcoin's Social Contract Must Be Resilient to the Whims of Future Generations
“Money presents an important lesson: The larger and more valuable a social institution gets, the more it attracts others to seek control over it,” Hasu Fly Dec. 3, 2018. 

The independent cryptocurrency researcher Hasu Fly details the social contract very well in his memorable essay “Unpacking Bitcoin’s Social Contract.” Within the editorial Hasu details that fiat money is a social contract or an agreement between the citizens and the state. Many individuals reject this social contract though and believe the state fails to gain true consensus because it uses force as a means to manage each country’s economy. With Bitcoin, things are quite different and the protocol is used by individuals and organizations in a completely voluntary manner.

“Many don’t realize that Bitcoin works through a social contract as well,” explains Hasu’s essay. “The social layer and its rules are the heart of Bitcoin.”

After describing in great detail on how fiat money and Bitcoin are both social contracts, Hasu then reveals the rules of the network’s underlying social contract. The researcher details that Satoshi Nakamoto settled on four distinct rules: confiscation resistance, censorship resistance, inflation resistance, and counterfeit resistance. Essentially this means the owner of the coins can hold keys to the currency without it being taken away, and the owner can also transact on the network without permission. An owner of any amount of bitcoin knows that the protocol has a limited supply, and last but not least anyone can verify the first three rules at any time using the transparent and public blockchain.

Bitcoin's Social Contract Must Be Resilient to the Whims of Future Generations
The four rules of Bitcoin according to Hasu Fly’s essay “Unpacking Bitcoin’s Social Contract.”

Future Generations Could Drastically Change Bitcoin

So far the technology has stayed true to the social contract and one could easily say this applies to each network whether it be BTC or BCH. Hasu’s essay also details that most of the time social contracts do not fork, but the BCH fork was a rare case scenario and what was left over was “two weaker social contracts — each agreed to by fewer people than the old one.” However, we have yet to cross past one generation with the social contract in the decade since the genesis block. When people recently discussed changing the 21 million capped supply the community went ballistic, but in 10 more years we don’t know if future generations will be more willing. The average human generation is between 25-30 years and bitcoin could be changed drastically in 40 years if the social contract is not upheld today. Let’s face it, over time generations change things and some of those revisions are good and sometimes they are awful — like changing from the gold standard to fiat and trusting central banks.

Bitcoin's Social Contract Must Be Resilient to the Whims of Future Generations
Satoshi Nakamoto suggested in the genesis block back in Jan. 2009 that society had put too much trust in the central banking system. Future generations have continued to bolster centrally planned economics and Keynesianism.

For now, some of the lead developers of reference implementations are kings of the hill – or at least that’s how they act. But over time, younger generations who are smarter and can code better will challenge these open source developers, and at some point their skills will be useless. Ultimately when money is used as a social contract, participants vote by either using the tender or seeking alternatives. Furthermore, money not only applies to its own social contract theory in a general sense, but also weaves within other social contracts within our society. Like it or not, any one of the two dominant Bitcoin chains may be chosen by the masses by coexisting in an entirely different way and one chain may not survive over the next decade.

Bitcoin's Social Contract Must Be Resilient to the Whims of Future Generations
“Bitcoin at its most fundamental level is a breakthrough in computer science – one that builds on 20 years of research into cryptographic currency, and 40 years of research in cryptography, by thousands of researchers around the world,” – Marc Andreessen Jan. 21, 2014.

Bitcoin’s 4 Fundamentals Must Be Passed On

Still, if the first generation of users decides to stick to the rules of Bitcoin’s social contract they must continue to strengthen the agreement. After 10 years, many well-known bitcoiners are willing to dismiss the global understanding and want to discuss changing the rules. Some supporters want to instill censorship by only giving affluent individuals the ability to transact onchain and store value in Bitcoin, by bolstering a barrier to entry with expensive network fees.

Bitcoin's Social Contract Must Be Resilient to the Whims of Future Generations
All Bitcoin supporters can do is pass on Bitcoin’s social contract and rules to future generations and hope they won’t change the fundamentals.

The ultimate goal has always been “hyperbitcoinztion,” but if we waver on the very foundations of Bitcoin’s social convention then nothing will be socially, morally, and rationally justified. Over the last few years, some people have dismissed Satoshi’s genius and the fact he created a near perfect system that has been Byzantine fault tolerant for 10 years with 99.98332 percent uptime. Many people to this day, whichever camp they are in (BCH or BTC), still believe in Bitcoin’s rules wholeheartedly. However, with all the infighting and shifting opinions on the true meaning of rules 1-4 these issues may challenge future generations. The Bitcoin network we know of today may not be the same when our sons and daughters begin to truly participate unless we keep some consistency on the social layer. It is quite obvious that those who do not want Bitcoin’s technology to succeed are attacking the root of the social layer today, and will not relent until they have achieved their aims.

What do you think about future generations changing the social contract called Bitcoin? Let us know what you think about this subject in the comments section below.

OP-ed disclaimer: This is an Op-ed article. The opinions expressed in this article are the author’s own. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the Op-ed article. Readers should do their own due diligence before taking any actions related to the content. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any information in this Op-ed article.


Image credits: Shutterstock, Pixabay, Vacate Wall Street, and Hasu Fly’s 2018 essay.


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Stablecoins Dominate Currency Pairings for Leading Crypto Assets

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Amidst the ongoing cryptocurrency bear market, stablecoins have continued to gain prominence, with USDT currently comprising the dominant pairing for three of the four largest cryptocurrencies by market cap. 

Also Read: Localbitcoins Trade Surges in Latin America and East Asia

USDT Comprises Dominant Pairing for 3 of Top 4 Cryptocurrencies by Market Cap

According to Cryptocompare, USDT currently comprises the largest currency pairing by volume for three of the four largest crypto assets by capitalization.

In the last 30 days, USDT pairings have comprised more than 67% of total BTC trade, nearly 46% of total ETH trade, and 48% of LTC trade.

While BTC is the dominant pairing for XRP, with almost 49% of monthly volume, USDT is the second-most traded pairing with 22.60%.

Stablecoins Dominate Currency Pairings for Leading Crypto Assets

Stablecoins Dominate Currency Pairing Rankings for Leading Crypto Assets

Aside from the dominance of USDT pairings, other stablecoins are increasingly populating the rankings for top currency pairings of the leading crypto assets.

Four of the top 10 BTC pairings by volume are currently stablecoins, with QC ranking fifth with 2.7% of monthly volume, PAX ranking eighth with 0.55%, and USDC ranking 10th with 0.41%, in addition to USDT holding the top ranking.

Half of the top 10 currency pairings for ETH by volume are stablecoins, with USDT joined by fourth-ranked QC with 3.13% of monthly trade, sixth-ranked BITCNY with 1.41% of trade, eighth-ranked PAX with 0.28%, and 10th-ranked DAI with 0.23%.

Stablecoins Dominate Currency Pairings for Leading Crypto Assets

Stablecoins comprise four of the 10 most-traded pairings for ripple. Aside from USDT, XRP’s dominant stablecoin pairings are sixth-ranked QC with 4.02% of trade during the previous 30 days, ninth-ranked OKB with 0.23% of trade, and 10th-ranked PAX with 0.22%.

Four of the top 10 LTC pairings are also stablecoins, with QC ranking fourth with 1.05%, TUSD ranking seventh with 0.27%, OKB ranking ninth with 0.22%, and USDT ranking as the dominant trading pair.

What is your response to the increasing presence of stablecoins among the top currency pairings for the leading crypto assets? Share your thoughts in the comments section below!


Images courtesy of Shutterstock


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Chinese Miners Flock to Sichuan for Cheap Electricity During the Wet Season

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Over the last two months, the hashrate between the Bitcoin Cash (BCH) and Bitcoin Core (BTC) networks has increased significantly since hitting a low on December 15, 2018. Numerous reports detail that many Chinese miners who control a large portion of SHA-256 hashrate have been recently setting up shop in Sichuan. During the wet season here, miners can get an astounding 0.08 yuan per kWh or $0.01 per kWh.

Also Read: Self-Proclaimed ‘Satoshi’ Responds to Billion-Dollar Bitcoin Lawsuit

Chinese Mining Operations Return to Sichuan in Order to Snatch Cheap Hydro Power

Several reports detail that during the last three weeks, Chinese miners have been flocking back to the Sichuan region in order to obtain cheap hydroelectric energy. The migration follows the significant hashrate decline in December when the SHA-256 hashrate between BTC and BCH declined by about 30 percent from its all-time high. During the dry season in Sichuan, Chinese miners positioned themselves in other locations throughout China and other countries when the fiat value of cryptocurrencies, in general, was much higher. Back in 2015-2016, it was estimated that more than 70 percent of the SHA-256 hashrate stemmed from China and 70 percent of the hashpower from these Chinese facilities derived from Sichuan. But when the price of BTC and many other coins skyrocketed, large Chinese mining operations trekked to other areas and sought out electric subsidies from local governments.

Chinese Miners Flock to Sichuan for Cheap Electricity During the Wet Season
Sichuan, China, situated at more than 3,000m elevation is famous for its rivers and colorful pools formed by calcite deposits. Many of the rivers and waterways supply hydroelectricity plants with energy and bitcoin mining facilities have operated in the mountainous region for years.

For instance, Chinese journalist Eva Xiao reported in August 2017 how large bitcoin mines were partnering with local Chinese governments for cheaper electricity from the State Grid. The reason for the strategic move was because unlike the dry and wet seasons in Sichuan, government partnerships provide static electrical rates that remain fairly steady. Bitmain did this with the company’s mine in Ordos in Inner Mongolia when it acquired electricity from the State Grid for $0.04 per kWh. Xiao details that in exchange, Bitmain allowed the Ordos mine to be taxed. However, regional reports published on Jan. 21, 2019 state that an influx of Chinese miners has been returning to Sichuan for the wet season. The China-based publication recently explained that during the dry season in Sichuan, hydroelectric costs are three times higher than the wet season.

“This tragedy will seemingly come to an end as soon as the rainy season is expected to come in April,” local reporter Lylian noted. “The 1,419 rivers in the region will soon wake up to propel the roar of 3,267 hydro plants — Numerous bitcoin mines will revive as they will have cheaper and sufficient power supplies.”

The report continued:

In the period of high water, the cost of electricity in Sichuan can be as low as 0.08 yuan ($0.01), while the electricity cost of thermal power in the dry season is 0.28 yuan ($0.04).

Chinese Miners Flock to Sichuan for Cheap Electricity During the Wet Season
Reports also detail that second-hand Antminer S9s are selling for $119 per unit. 

Bitcoin Prices Still Have to Appreciate Before the Halving

Mining operations are also enticed by the cheap hardware costs these days, as lots of mining rig prices have been slashed. Local columnist Chloe Jiang reveals that a second-hand Antminer S9 will set someone back about 800 yuan ($119) per unit. According to the top mining rig manufacturer websites like Bitmain, Ebang, and Canaan, older units are very inexpensive right now. Jiang remarks that cheap mining rigs and $0.01 per kWh electric prices in Sichuan may help miners survive the ‘crypto winter.’

Chinese Miners Flock to Sichuan for Cheap Electricity During the Wet Season
Bitcoin Core (BTC) hashrate increase since Dec. 15, 2018.

The overall hashrate between both of the most dominant SHA-256 networks shows miners seem to be returning in greater number with many of them joining unknown pools. Analysts believe that at current electric prices worldwide and the upcoming reward halving for both networks, the price of BTC and BCH needs to rise to at least double current spot prices in order to maintain profitability.

What do you think about miners returning to Sichuan for cheap electricity? Let us know what you think about this story in the comments section below.


Image credits: Shutterstock, Blockchain.com, and Pixabay. 


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The post Chinese Miners Flock to Sichuan for Cheap Electricity During the Wet Season appeared first on Bitcoin News.

Core Developer’s 300kb Block Proposal Bolstered in Bid to Push Lightning Adoption

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Bitcoin Core (BTC) developer Luke Dash Jr has once again sparked controversy with his idea to shrink the BTC chain’s block size down to 300kb. It’s not the first time the concept was proposed by the developer, but this time around there’s more support for the idea in order to drive Lightning Network adoption.

Also read: Indian Supreme Court Moves Crypto Hearing, Community Calls for Positive Regulations

Luke Dash Jr Proposes Temporary 300kb Block Soft Fork

Back in January 2017, cryptocurrency developer Luke Dash Jr proposed a Bitcoin Improvement Proposal (BIP) requesting the block size to be decreased down to 300kb per block. The proposal was submitted months before network fees skyrocketed to $30-50 per transaction, but at the time the mempool (transaction queue) had already started to fill up. Back then the BIP was brushed off pretty quickly, since the scaling debate was starting to peak and people were already upset about the rising fee market.

Fast forward to today and Dash Jr is again proposing to shrink the block size down to less than one third of the 1mb limit. “This patch would enforce a very simple soft fork, reducing Bitcoin block sizes to ~300kb between Aug 1 and Dec 31 — It demonstrates how one can make a truly temporary soft fork,” the developer explained to on Twitter. “Do not run this in production even if you support UASF.”

Core Developer's 300kb Block Proposal Bolstered in Bid to Push Lightning Adoption

‘Increase Fees and Move Transactions to Lightning’

Three days later Bitrefill’s John Carvalho told his followers Dash Jr’s plan was something he could get behind. “I agree with Luke Dash Jr that the block size should be smaller. I feel more confident to say it now that we have Lightning Network making strides — I’ll run the soft fork,” Carvalho explained. When he was asked what financial incentives smaller blocks offered, Carvalho replied by bolstering higher network fees.

“I could imagine a few,” Carvalho stated. “To increase fees (doesn’t even have to be malicious, could be for survival). To move transactions to Lightning Network (maybe miners realize they can make easier money by increasing fees on L2, under the right conditions). To reduce costs (new network/web conditions).”

Core Developer's 300kb Block Proposal Bolstered in Bid to Push Lightning Adoption

In response to Carvalho’s tweet, the cryptocurrency entrepreneur Vinny Lingham replied to the discussion by saying that he totally agrees with Dash Jr’s plan and has been saying it for a while. “1mb is an arbitrary number and if Bitcoin is going to rely on L2 to scale, then it makes no sense to keep it at 1mb. — Reducing it to 350k as per the research from Luke Dash Jr is practical and can help move transactions to layer 2,” Lingham emphasized. A slew of people on Twitter believed that Lingham’s statement was said in jest, however, and was basically poking fun at the idea. Core Developer's 300kb Block Proposal Bolstered in Bid to Push Lightning Adoption

‘Stop the Madness’

However, not everyone agreed with Dash Jr’s concept and Carvalho’s statements about higher fees to push more Lightning Network adoption. One observer on Twitter commented: “Smaller blocks simply means less transactions on the chain, purposefully hard-coding a lower limit — It doesn’t make any logical sense.” However, Carvalho, Dash Jr, and Bitcoin Core developer Jorge Timón simply dismissed the individual’s statements after he said Lightning Network was “centralized, bloated, and overcomplicated”.

Core Developer's 300kb Block Proposal Bolstered in Bid to Push Lightning Adoption

Whatever the case may be, this time around Dash Jr’s concept to decrease the block size to 300kb has been more fruitful, especially for those pushing for adoption of the Lightning Network. However, Cobra the anonymous owner of Bitcoin.org, wants this discussion to end and has asked the community to “stop the madness.”

“A soft fork to ‘reduce the block size’ is a hard fork in all but name and this will split off from the established consensus, cause massive drama, and damage trust in Bitcoin,” Cobra stated. Once again it seems certain cryptocurrency proponents are all about high onchain fees due to their distrust for miners and the hope that the Lightning Network will work as well as Nakamoto consensus.

What do you think about Luke Dash Jr’s idea to temporarily soft fork bitcoin to decrease the block size to 300kb? Let us know what you think about this subject in the comments section below.


Image credits: Shutterstock, and Twitter. 


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Markets Update: Cryptocurrencies Test Key Levels From 2017 Bull Trend

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The cryptocurrency markets are trading at significant long-term price areas, with BTC currently channeling between key levels from the 2017 bull run. In other market action, BCH and ETH have continued to consolidate above the $100 area.

Also Read: ETF Filed With SEC to Invest in Bitcoin Futures, Bonds, and Mutual Funds

BTC Trades Between Major Long-Term Price Zones

For the last two months, BTC has established a price range corresponding to areas of long-term significance.

Markets Update: Cryptocurrencies Test Key Levels From 2017 Bull Trend
BTC/USD – Bitfinex – 1D

As of this writing, bulls are attempting to establish support at roughly $3,600 after bouncing off what may comprise a higher low at the $3,400 area. During 2019 so far, BTC is yet to re-test last year’s low of roughly $3,100, nor has price action broken above resistance at $4,400.

Markets Update: Cryptocurrencies Test Key Levels From 2017 Bull Trend
BTC/USD – Bitfinex – 4HR

When looking back to mid-2017, the price levels correspond to key areas from BTC’s first run up to $5,000, in addition to the subsequent retrace and rally to five digits.

During the initial run to $5,000, BTC stair-stepped its way from $3,200 to $3,400 before jumping to establish a then-record high at roughly $4,400. BTC then established local support at $3,600 and then rallied to set a new record at $5,000.

Markets Update: Cryptocurrencies Test Key Levels From 2017 Bull Trend
BTC/USD – Bitfinex – 1D

After tagging $5,000, the $4,400 area comprised the shoulder line of the lopsided head and shoulders pattern that preceded the violent retracement down to $3,000. BTC currently has a market cap of $63.55 billion and a dominance of 52.9%.

BCH Consolidates Above 2018 Low

Bitcoin Cash is consolidating at a possible higher-low, with BCH currently trading for $119 after bouncing off support at $100. Despite the sideways price action, BCH has broken outside of multiple major descending trendlines in recent weeks.

Markets Update: Cryptocurrencies Test Key Levels From 2017 Bull Trend
BCH/USD – Kraken – 1D

When measured against BTC, BCH is also consolidating above 2018’s low, with bitcoin cash currently trading for 0.0335 BTC. Bitcoin cash is currently the sixth largest cryptocurrency with a market cap of $2.14 billion and a dominance of 1.78%.

Markets Update: Cryptocurrencies Test Key Levels From 2017 Bull Trend
BCH/BTC – Bittrex – 1D

Ethereum Reclaims Second Largest Market Cap

Ethereum has also spent recent months trading between key price levels from ETH’s first break into triple figures during mid-2017.

Markets Update: Cryptocurrencies Test Key Levels From 2017 Bull Trend
ETH/USD – Poloniex – 1D (Calculated by Tradingview)

After reaching a low of $80 in December, ETH rallied to test resistance at approximately $175 at the start of 2019, with the markets having since retraced to establish local support at $100.

When measured against BTC, ETH has again oscillated between significant long-term price zones, with ETH currently attempting to establish support at the 0.0333 BTC area, the market’s former record high that was established during March 2016 before being broken one year later.

Markets Update: Cryptocurrencies Test Key Levels From 2017 Bull Trend
ETH/BTC – Poloniex – 1D

ETH currently comprises the second largest crypto asset with a market cap of nearly $12.73 billion and a dominance of 10.50%.

What do you make of current market structure? Are predicting 2019 to be bull or bear? Share your thoughts in the comments section below!


Images courtesy of Shutterstock, Tradingview


Disclaimer: Price articles and markets updates are intended for informational purposes only and should not to be considered as trading advice. Neither Bitcoin.com nor the author is responsible for any losses or gains, as the ultimate decision to conduct a trade is made by the reader. Always remember that only those in possession of the private keys are in control of the “money.”

The post Markets Update: Cryptocurrencies Test Key Levels From 2017 Bull Trend appeared first on Bitcoin News.

Bitcoin Friendly Micronation Acknowledged by European Commission President

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In 2019 the sovereign state of Liberland continues to gather headway by getting recognized by key leaders in the European Union and members of parliament. On Jan. 31, the micronation claiming the parcel of land between Croatia and Serbia was validated by Jean-Claude Juncker, President of the European Commission.

Also read: These Video Sharing Sites Pay Content Creators in Bitcoin Cash

Liberland Continues to Strive for Recognition

Key members of the European Commission have recently been discussing the micronation known as the Free Republic of Liberland. The seven square kilometer territory on the banks of the Danube was claimed in 2015 by a group of individuals who believe in libertarian ideologies. The President of Liberland, Vít Jedlička, and citizens of the small country profess that no nation claims the land as its own. Since then the group has been fighting to get acknowledged by the rest of the world’s leaders by following the protocol of terra nullius. Seven months ago, Liberland presented its case to members of the EU Parliament in order to get recognized as a sovereign nation state. So far the region has garnered over 550,000 applicants who want to be citizens of Liberland.

Bitcoin Friendly Micronation Liberland Acknowledged by European Commission President
The Free Republic of Liberland is a seven square kilometer territory on the banks of the Danube river between Croatia and Serbia and was claimed in April 2015.

Now the micronation has been acknowledged in a recent parliamentary question asked on Jan. 31 about the parcel of land between Croatia and Serbia. Jean-Claude Juncker, president of the European Commission (EC), stated that Liberland, also known as Gornja Siga, “requires further clarification.” President Juncker’s comments were in response to a question from a member of the European Parliament from the West Midlands region, Bill Etheridge. The question asked about whether the Liberland territory is part of the European Union. Etheridge is also well known for his staunch libertarian beliefs. In the eyes of Liberland citizens, Juncker’s statement seemed to accredit the negotiation between Croatia and Serbia. The micronation believes the EC president’s remark is a step in the right direction towards “global recognition” of a voluntary based government.

“This is an extremely important development and represent real progress for us,” Vit Jedlička, President of the Free Republic of Liberland explained after the EC president’s commentary.

Jedlička continued:

We are a step closer to knowing that it may not be EU territory and that it can become an independent sovereign state.

Bitcoin Friendly Micronation Liberland Acknowledged by European Commission President
The Liberland Embassy (left) and Miss. Liberland, Kristýna Dolníčková. (right).

Cryptocurrency, DAOs and an Open Source Linear TV

Liberland is also still very much involved with spreading decentralized and innovative new technologies like cryptocurrencies. The Free Republic of Liberland’s official website states that in a world filled with over-taxation and over-regulation, the citizens of the land believe in bolstering forward-looking technologies such as cryptocurrencies and DAO (Decentralized Autonomous Organization) incorporated systems.

Bitcoin Friendly Micronation Liberland Acknowledged by European Commission President
Liberland’s “Bitcoin Freedom” boat.

The region has also been accepting digital currencies for funding for years and the mini-state utilizes currencies like bitcoin cash (BCH), ethereum (ETH), and bitcoin core (BTC). On Feb. 10, Bitcoin entrepreneur Roger Ver explained on social media that Liberland “has been funded with bitcoin cash more than any other cryptocurrency.” Lead Bitcoin ABC developer Amaury Séchet responded: “They also accepted it from day one — Vít is a great guy.”

Moreover, the region is currently in the midst of setting up the first Liberland private linear broadcasting service (online TV) called “Liber TV.” The platform was created by one of the founders of Liberland, Jiří Kreibich, and the application is open source and running in its early phases. Overall, the world’s third smallest nation state continues to make strides towards being acknowledged by global leaders.

What do you think about what’s happening with Liberland? Do you think that the micronation will finally get recognized by the larger nation states? Let us know what you think about this subject in the comments section below.


Image credits: Shutterstock, Bitcoin.com, Pixabay, Liberland, and Creative Commons. 


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BTC Futures Volume Plummets Relative to Spot Trade Heading Into 2019

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Research carried out by Tradeblock has found the combined trade volume across the futures contracts offered by Chicago Mercantile Exchange (CME) and Chicago Board Options Exchange (CBOE) plummet relative to spot market volume during the second half of 2018.

Also Read: Mt. Gox Creditors Neither Need nor Deserve This Kind of ‘Hero’

BTC Futures Volume Rivals Combined Trade Activity Across Leading Spot Exchanges During Q3 2018

Despite the hype surrounding the launch of CME and CBOE’s BTC futures contracts at the end of 2017, said markets comprised a small fraction of combined trade activity taking place on Coinbase, Itbit, Kraken, Bitstamp, and Gemini.

With the burst of the 2018 bubble, however, spot volume fell by more than 70 percent when comparing January’s trade activity with average monthly volume posted during the second half of 2018.

BTC Futures Volume Plummets Relative to Spot Trade Heading Into 2019

Mixed with a more than doubling in CME futures trade activity, trade volume for CBOE and CME’s BTC futures came to rival that of Coinbase, Itbit, Kraken, BItstamp, and Gemini’s combined spot volume during the third quarter of 2018 – with CME’s volume dwarfing that of each individual exchange.

Futures See Volume Drop-Off During Final Quarter of 2018

While the volume of both the BTC spot and futures markets saw decline during September and October, November saw the combined spot markets post their strongest monthly volume since May, while the futures markets posted their second weakest month of the year.

BTC Futures Volume Plummets Relative to Spot Trade Heading Into 2019

While December saw the spot market post a healthy retracement, trade activity in the futures markets fell by more than half to post its worst performing month since launch, suggesting a shift away from the cryptocurrency derivatives offered by CME and CBOE in favor of the traditional cryptocurrency markets.

On Feb. 1, CME published a report stating that the average daily trade volume for its BTC contracts was $80 million during the previous 283 days, which, combined with CBOE’s approximately $10.65 million in daily trade, shows that the futures markets are currently falling roughly 4.5 percent short of rivaling the 24-hour trade volume between BTC and USDT on Binance.

Do you think that we will continue to see a decline in trade activity across the futures markets this year? Share your thoughts in the comments section below!


Images courtesy of Shutterstock, Tradeblock


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