Category Archives: Bitcoin
Bitcoin Rallies 10% Ahead of CME April Futures Expiration – CoinDesk
Bitcoin prices spiked to a new monthly high of over $7,725, according to the CoinDesk Bitcoin Price Index. The rally comes on the day before the expiry for CME April bitcoin futures.
According to comments shared with CoinDesk, bitcoin traders view Friday's expiry as a primary catalyst for Thursday's rally. Theres a general expectation for a pickup in volatility around CME expiry, said Kevin Kelly, former equities strategist at Bloomberg and co-founder of Delphi Digital. But bitcoin was primed for a move given the recent consolidation, said Kelly.
Over $68 million worth of contracts were liquidated on BitMEX Thursday morning, according to data from Skew, as futures open interest is still recovering from a 50 percent plunge at the end of Q1 2020.
Bitcoins performance during a period of macroeconomic instability may be underwhelming for some investors. But Thursdays price action marks an over-100-percent recovery from bitcoins plunge at the end of Q1 2020.
Thanks to bitcoins strong macro fundamentals, were "seeing buying interest coming back, Kyle Davies, co-founder of Three Arrows Capital, told CoinDesk in a private message.
Traditional markets also rallied Thursday morning, with the S&P 500 up almost 2 percent at the time of publication.
As traders have been closely monitoring stocks, the push higher in U.S. equities today may share some responsibility for the jump in bitcoin's price, Joseph Todaro, managing partner at Blocktown Capital, told CoinDesk.
Stocks look really strong, another trader who expects bitcoin and equities to continue rallying together told CoinDesk in a private message.
Despite the highly volatile and tumultuous macro environment brought on by COVID-19, support for the popular bullish halving narrative may be resurfacing as traders become more comfortable within the current market, said Todaro.
The price of ether also spiked Thursday morning from $178 to $194, according to Bitstamp.
The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.
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Bitcoin Rallies 10% Ahead of CME April Futures Expiration - CoinDesk
Cardano, Cosmos and Tezos Beat Bitcoin and Ether in Latest Weiss Crypto Ratings – Cointelegraph
In the latest figures released by financial rating agency Weiss Crypto Ratings this week, Cardano (ADA), Tezos (XTZ), Cosmos (ATOM) and Fantom (FTM) are the top coins by in the technology category, ranking above Bitcoin (BTC) and Ether (ETH).
Released weekly, the rating compares cryptocurrency coins in a number of categories including adoption, risk/reward and technology.
The list currently rates 123 coins and tokens with the highest overall rank only hitting a B+. The risk/reward column does not give any coin a rank above D.
The Weiss Crypto Ratings model is built with five basic layers that take data from the projects technology, adoption, risk and momentum. These layers then filter the information through in-house software models identifying each component in relation to the potential success or failure of the overall company.
In part, their success is claimed by their ability to remain impartial and objective through the fact that they receive no incentive or compensation from any of the cryptocurrencies.
XTZ, ADA, and ATOM are currently ranked 10th, 13th, and 23rd respectively by market capitalization.
Tezos has shown strong gains in 2020 with the current price of $2.68 almost double the price coming into this year. Previously the team was in the headlines due to legal battles and internal fighting.
Cardano just released its V1.0.0 Daedelus update with other milestones expected to be hit throughout the year. The protocols founder Charles Hoskinson recently told Cointelegraph why he believes the project could reach a trillion-dollar market cap.
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Cardano, Cosmos and Tezos Beat Bitcoin and Ether in Latest Weiss Crypto Ratings - Cointelegraph
Bitcoin Trades at $15k in Lebanon Amidst Economic Turmoil, Showing Its Real Potential – newsBTC
Bitcoin is trading almost twice its current rate in an economically-hit Lebanon.
Peer-to-peer bitcoin marketplace LocalBitcoins.com shows people selling the cryptocurrency for as high as22,678,227.03 LBP per token, which roughly equals $15,000. Meanwhile, people who are looking to liquidate bitcoin for local currency are demanding as much as $11,000 per token.
BTCUSD in Lebanon P2P markets jumps above $15,000 | Source: LocalBitcoins, Google
Exchange rates coming out of Lebonan crypto marketplaces are strikingly higher than their global counterparts. Data aggregator Messari shows the bitcoin price a little above $7,500 almost half than what is the Lebanese traders are asking.
Bitcoin hits its premium price levels in Lebanon as the country grapples with its most severe economic crisis in decades. The Lebanese Pound has crashed by almost 50 percent from its dollar-pegged value since October 2019, sparkinginflation, fueling social unrest, and locking Lebanese people out of their US dollar-enabled bank savings.
The central bank issued an order that allowed dollar account holders to withdraw money in local currency but before April 23. The ruling was meant to ease dollar demand but left people in a more panicked state. The country has one of the largest diasporas that send and receive funds in foreign currency.
Bitcoin peaked in Lebanon amidst the said chaos, validating the Al Jazeera coveragefrom late February that showed Lebanese opting for cryptocurrencies as a measure to protect themselves from inflation.
If you want to go around the banking system, bitcoin is a solution, a local crypto trader had told the news service.
The cryptocurrency operates outside the control of centralized authorities. A distributed group of miners offer their computing power to verify, validate, and add transactions to its open ledger called the blockchain. No single entity takes control over the Bitcoin network, making it an independent financial system.
Lebanons central bank discourages people from trading bitcoin, a reason why traders opt for peer-to-peer alternatives to buy and sell the cryptocurrency.
Bitcoins premium rates in Lebanon proves that locally there is more demand for the cryptocurrency than the available supply. People are purchasing it en masse to move out of their struggling fiat system, creating a parallel economy outside the scope of their government and central banks.
All and all, bitcoin has once again shown its real potential in a struggling national economy. Moreover, with the global one going into chaos as well, the cryptocurrency could emerge as a financial savior for an average saver.
Photo by Andr Franois McKenzie on Unsplash
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Bitcoin Trades at $15k in Lebanon Amidst Economic Turmoil, Showing Its Real Potential - newsBTC
XRP Price May Be Headed for $0.30 With Bitcoin Making Higher Highs – Cointelegraph
Recently, altcoins have been showing strength as Bitcoin (BTC) has just broken a key resistance level. Notably, ChainLink (LINK) and Tezos (XTZ) have been moving up more than 150% in the past month.
However, in the recent week, Stellar Lumens (XLM) have been surging upwards, while XRP price is also starting to look stronger on the charts. Can we expect substantial altcoin movements in the coming weeks? Lets take a look at the charts.
Crypto market daily performance. Source: Coin360
XRP USDT 12-hour chart. Source: TradingView
The 12-hour chart is showing a promising support/resistance flip of the $0.1775 area. The crash on Black Thursday was also devastating for holders of XRP as the price dropped below the $0.12 level for a few hours.
However, since then, the price of XRP has been rallying upwards through substantial support/resistance flips. The recent movements are showing that the crucial area of $0.1775 is holding as support and setting up for more upside for XRP.
The main resistance level to break for the XRP price would be the red zone between $0.2025-0.2125. A break of this level would likely push the price towards $0.2475 and possibly higher at $0.2775.
XRP USD 2-day chart. Source: TradingView
The 2-day chart is showing a significant support level of around $0.145, which had to hold to sustain the positive momentum. However, the chart is also showing that the trend is still substantially downwards based given the lower lows and lower highs.
However, by holding the support level at $0.145, a possible test of the range high can occur, which is found at the $0.328-0.33 area.
Remarkably, in the past cycle of 2015-2017, a similar move occurred where XRP price made a full retrace to the support levels before a massive surge. This support area held, after which accumulation started, resulting in a massive breakout to $3 in January 2018.
The current price action is also starting to look similar, though it took longer to retrace. But thats normal as markets mature and, therefore, need more time to bottom out and start a new cycle.
A test of the $0.33 area would confirm an accumulation and sideways range as the signs are indeed starting to improve.
XRP BTC 1-day chart. Source: TradingView
The daily chart of XRP lost an essential level earlier at 0.00002500-0.00002525 satoshis. Within a few days, the price of XRP reclaimed the level and is currently testing it as support.
Confirming this level as support (heavily depending on any substantial volatile movements of Bitcoin (BTC) suggests that further upwards momentum can be expected for XRP price. At the same time, the price of XRP needs to make a higher high to sustain momentum.
For that, support at 0.00002500-0.00002525 satoshis needs to hold for support, after which the resistance levels will be tested. The first resistance levels to watch for are 0.00002890-0.00002925 satoshis and 0.00003300-0.00003350 satoshis.
The main bullish signal would be a clear breakout of this range above 0.00003800 satoshis, but that is still far away from the current price of XRP.
XLM BTC 1-day chart. Source: TradingView
The Stellar Lumens (XLM) chart is showing a clear range between 0.00000560-0.00000590 satoshis and 0.00000840-0.00000950 satoshis. This range has been providing resistance and support for ten months already when the price moved into these zones in July 2019.
However, recently, XLM has been showing strength as the price of XLM surged 28% in the past four days. Not only that, but the price of XLM is also attempting to break the range resistance, which is a crucial signal for bull/bear momentum similar to XRP.
An apparent breakthrough of the 0.00000850-0.00000935 satoshis level would create further upwards momentum, targeting the next resistance zone at 0.00001400 satoshis. Aside from that, breaking the 0.00000835 satoshis level would result in the first higher high in more than eighteen months.
But if the price of XLM cant break through the resistance in one go, the retests will be crucial to see whether buyers are stepping in.
XLM BTC 1-day chart. Source: TradingView
The chart is providing clear levels to watch if the price of XLM cant break through the resistance area upon the first attempt, which seems likely.
As theres been such a massive pump, support levels can be found substantially lower in the chart. The primary levels to watch for support are 0.00000718-0.00000722 satoshis and 0.00000680-0.00000685 satoshis.
If either of these levels provides support, then buyers will likely step in. Such a move should warrant further upwards momentum.
XLM USDT 1-day chart. Source: TradingView
Meanwhile, the USDT chart for Stellar Lumens is showing a clear breakout of the resistance level at $0.054. This breakout led to a significant surge in price as the price of XLM rallied towards $0.065.
This move grants a 155% surge since the low of March 12, also known as Black Thursday. However, is the rally over for now? No, because after such a breakout and surge, the dips will likely be bought up given the current uptrend.
An apparent retest of the previous resistance level at $0.054 would provide the most likely entry for traders to step in. Resistance levels are found significantly higher, with the first level lying at $0.074 and the second one at $0.08.
However, if this push fails to hold the $0.054 level for support, further tests to the downside are likely to occur. The primary level to watch for will then be the $0.04-0.043 zone.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
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XRP Price May Be Headed for $0.30 With Bitcoin Making Higher Highs - Cointelegraph
Bitcoin halving explained: What is cryptocurrency event and will it boost price? – The Independent
For the first time in nearly four years, and for only the third time in its 11-year history, bitcoin is about to undergo a seismic shift to its technologicalfoundations. The halving event will not only affect how bitcoin is created, it will likely also have a significant impact on the entire cryptocurrency market.
Scheduled to take place next month, the event all stems from bitcoin's unique digital design. Unlike traditional currencies, the number of bitcoins that will ever exist is fixed. The mathematical code underpinning the cryptocurrency means that only 21 million bitcoins can ever be produced and no amount of quantitative easing can artificially inflate this.
More than 18 million bitcoins have already been produced through a process called mining, whereby new units of the cryptocurrency are generated by networks of computers programmed to solve complex mathematical puzzles.
Sharing the full story, not just the headlines
The imminent halving of bitcoin, however, is about to make this processconsiderably more difficult.
The halving event, sometimes referred to as thehalvening, is essentially the opposite of quantitative easing so much so that some crypto enthusiasts refer to it as quantitative hardening.
As the name indicates, the halving cuts the production of bitcoin in half in such a way that mining the cryptocurrency only generates 50 per cent of the yield it used to.
It takes place roughly once every four years whenever 210,000 blocks have been mined, and is predicted to take place on 12 May. This halving will see mining rewards fall from 12.5 bitcoins per block, to 6.25 bitcoins.
On 3 January, 2009, the genesis block of bitcoin appeared. It came less than a year after the pseudonymous creator Satoshi Nakamoto detailed the cryptocurrency in a paper titled 'Bitcoin: A peer-to-Peer Electronic Cash System'
Reuters
On 22 May, 2010, the first ever real-world bitcoin transaction took place. Lazlo Hanyecz bought two pizzas for 10,000 bitcoins the equivalent of $90 million at today's prices
Lazlo Hanyecz
Bitcoin soon gained notoriety for its use on the dark web. The Silk Road marketplace, established in 2011, was the first of hundreds of sites to offer illegal drugs and services in exchange for bitcoin
On 29 October, 2013, the first ever bitcoin ATM was installed in a coffee shop in Vancouver, Canada. The machine allowed people to exchange bitcoins for cash
REUTERS/Dimitris Michalakis
The world's biggest bitcoin exchange, MtGox, filed for bankruptcy in February 2014 after losing almost 750,000 of its customers bitcoins. At the time, this was around 7 per cent of all bitcoins and the market inevitably crashed
Getty Images
In 2015, Australian police raided the home of Craig Wright after the entrepreneur claimed he was Satoshi Nakamoto. He later rescinded the claim
Getty Images
On 1 August, 2017, an unresolvable dispute within the bitcoin community saw the network split. The fork of bitcoin's underlying blockchain technology spawned a new cryptocurrency: Bitcoin cash
REUTERS
Towards the end of 2017, the price of bitcoin surged to almost $20,000. This represented a 1,300 per cent increase from its price at the start of the year
Reuters
On 3 January, 2009, the genesis block of bitcoin appeared. It came less than a year after the pseudonymous creator Satoshi Nakamoto detailed the cryptocurrency in a paper titled 'Bitcoin: A peer-to-Peer Electronic Cash System'
Reuters
On 22 May, 2010, the first ever real-world bitcoin transaction took place. Lazlo Hanyecz bought two pizzas for 10,000 bitcoins the equivalent of $90 million at today's prices
Lazlo Hanyecz
Bitcoin soon gained notoriety for its use on the dark web. The Silk Road marketplace, established in 2011, was the first of hundreds of sites to offer illegal drugs and services in exchange for bitcoin
On 29 October, 2013, the first ever bitcoin ATM was installed in a coffee shop in Vancouver, Canada. The machine allowed people to exchange bitcoins for cash
REUTERS/Dimitris Michalakis
The world's biggest bitcoin exchange, MtGox, filed for bankruptcy in February 2014 after losing almost 750,000 of its customers bitcoins. At the time, this was around 7 per cent of all bitcoins and the market inevitably crashed
Getty Images
In 2015, Australian police raided the home of Craig Wright after the entrepreneur claimed he was Satoshi Nakamoto. He later rescinded the claim
Getty Images
On 1 August, 2017, an unresolvable dispute within the bitcoin community saw the network split. The fork of bitcoin's underlying blockchain technology spawned a new cryptocurrency: Bitcoin cash
REUTERS
Towards the end of 2017, the price of bitcoin surged to almost $20,000. This represented a 1,300 per cent increase from its price at the start of the year
Reuters
The event is not determined or governed by a centralised body.Instead,it is hard-coded into bitcoins underlying blockchain that was created in 2008 by its pseudonymous creator Satoshi Nakamoto.
Bitcoin was developed as an antidote to the perceived flaws in the established financial system, which had contributed to the global crisis of 2007-2008. By cutting the supply, the halving event is designed to ensure the scarcity of bitcoin while preventing extreme price inflation.
Previous halvings have resulted in sharp price increases and severe market volatility for bitcoin and other cryptocurrencies, as traders and miners adjust to the new production limitationsof the worlds most valuable virtual currency.
The halving in 2012 saw bitcoins value shoot up by 80 times, while the 2016 halving preceded a 300 per cent rise in bitcoins value. The simplest explanation for these price increases is the basic economic principle ofsupply and demand: if the supply suddenly drops but demand stays the same, the price will inevitably rise. But the decentralised and semi-anonymous nature of bitcoin means it is difficult to attribute specific gains or losses to a specific event.
Mays bitcoin halving comes in the middle of a global economic meltdown, though it is not yet clear whether collapsing markets is driving money away from traditional assets into cryptocurrency. Some analysts claim that bitcoin is becoming a safe-haven asset similar to gold, and early evidence suggests that investors may already belooking towards it as an alternative store-of-value.
The CEO of one of the worlds largest cryptocurrency exchanges recently revealed data showing a spike in deposits of $1,200 the exact same size as the US governments stimulus cheque.
Bitcoin is yet to be tested by global economic disruption on this scale, and it may well go the same way as stocks or other assets as investors rush to liquidate holdings into cash. Some analysts are hopeful, however, that the halving event combined with traditional market chaos could see the cryptocurrency reach above the record highs of $20,000 that it saw in 2017.
"Many eyes have been on bitcoin since the bull run of 2017, with people eagerly awaiting its next big moment. We believe that moment is coming and we can expect to see an explosive year for bitcoin," Danny Scott, CEO of British-based cryptocurrency exchange CoinCorner, toldThe Independent.
"With both the current unexpected global crisis and the halving event, we can only expect the price of bitcoin to continue in the direction that everything is currently pointing: towards that $20,000 figure and beyond."
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Bitcoin halving explained: What is cryptocurrency event and will it boost price? - The Independent
Bitcoin Price Hangs on to Key Support Level as Stocks and Oil Tip Over – Cointelegraph
The shockwaves from yesterdays explosion in the oil markets continued to damage oil prices and shrapnel from the blast caused damage to equities today as U.S. markets closed in the red after a nearly 3-week rebound.
West Texas Intermediate crude closed down 9.49% at $9.06, and June 2020 futures dropped from $22.58 to $13.12. What is clear is that investors remain fearful about the future of the entire industry as the coronavirus pandemic continues to dampen demand for oil.
Before the start of this week the S&P 500 and Dow had recovered approximately 30% of the losses from the Feb. 20 correction which quickly brought markets to historic lows. As shown on the 3-day chart below, the S&P 500 had rallied within a hair of the 61.8% Fibonacci retracement level, a point which many analysts forecast would be challenging to overcome.
Rejection at this level is likely to crush the narrative of a V-shaped recovery like the one witnessed in late December 2018.
SPX (S&P 500) 3-day chart. Source: TradingView
Traders who swear by the TD Sequential indicator will have also noticed that last Friday (April. 17) the market flashed a sell signal when a 9 appeared over the daily candle.
SPX (S&P 500) daily chart with 9 on TD Sequential. Source: TradingView
The Dow is in a similar position having met resistance at the 50% Fibonacci retracement which is slightly below the VPVR point of control at 246.22, a pivot point for the Dow. At todays close both indexes were down 5.07% and 5.30% respectively.
DOW (DIA) 3-day chart. Source: TradingView
For the past few weeks analysts from traditional markets have debated whether or not a strong recovery was in the making. Recently Goldman Sachs forecast that the current recession would be nearly 4 times worse than the 2008 housing crisis.
Meanwhile, pro business proponents from the Trump Administration have said that the current economic downturn is unsubstantiated as the markets will snap back to profitability once economic activity recommences.
Volatility indexes like the VIX, TVIX, and UVXY tell a different story as each gained 3.6%, 15.98%, and 12.06% for the day.
TVIX daily chart. Source: TradingView
In fact, all three have just finished their bottoming process after coming down from incredibly strong rallies that kicked off right as the coronavirus pandemic began to accelerate its rate of infections in late February. Take the above TVIX chart as an example.
Meanwhile, amidst the chaos in traditional markets, Bitcoin (BTC) price has remained relatively stable, ony pulling back 4.24% to what is so far proving to be a strong support at $6,850.
BTC USDT daily chart. Source: TradingView
At the time of writing the digital asset is attempting to re-enter the $6,900-$7,260 zone where the price spent the last 18 days trading. Re-entering this zone would be a positive step forward as the daily chart shows below the VPVR high volume node from $6,850-$6,600 Bitcoin is vulnerable to a drop to the $6,485 support and below this $6,200.
BTC USDT 4-hour chart. Source: TradingView
Another positive development is the pattern of higher lows and increasing buy volume on the 4-hour timeframe. If Bitcoin can reclaim the $6,900 level as support then the price can push above the Bollinger Band moving average at $7,055 and possibly exploit the small VPVR volume gap between $6,930-$7,050.
As discussed thoroughly in previous analysis, a push through the resistance cluster (pink) to flip $7,300 to support would open up the path for Bitcoin price to reach $8,000.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
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Bitcoin Price Hangs on to Key Support Level as Stocks and Oil Tip Over - Cointelegraph
Bitcoin Price Analysis: The bitcoin bulls have 8K in thier sights – FXStreet
Bitcoin is still looking positive on Friday despite the bulls not pushing above the high seen yesterday. The price looks like its heading toward some more serious resistance zones including the 200 daily simple moving average, which incidentally is placed close to the 8K psychological level.
Looking at some of the other technical levels now, the relative strength index indicator is also trading above the 50 mid-line positive territory. There is also space for the indicator to move higher as it has not reached the overbought zone yet. The volume is still looking a little bit light so if there is to be a break higher it would be good to see an increase. Lastly, if there is to be a move up, the black trendline could act as a resistance zone as it has halted one other move in the past.
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Bitcoin Price Analysis: The bitcoin bulls have 8K in thier sights - FXStreet
New Research Says Bitcoin Price Jumps in Response to News of Clear Regulation – Cointelegraph
Researchers from the Bank for International Settlements are finding that cryptocurrency markets actually react positively to news of clear regulations.
Per a working paper released by the Dallas Federal Reserve Banks Globalization Institute on April 18, crypto prices are more responsive to regulation than their reputation suggests. While news reports of government bans on cryptocurrencies resulted in price dips, markets jumped when the regulation was clear.
The paper suggests, at the current juncture, authorities around the globe do have some scope to make regulation effective. Categorizing different news and their effect on Bitcoins price, the researchers found.
Source: Auer and Claessens
In analyzing why cryptocurrencies that operate on borderless blockchains would see price action in response to governmental actions, the authors of the paper suggest that fiat on- and off-ramps, as well as traditional institutions remain important to crypto users:
Why do news events about national regulations have such a substantial impact oncryptoassets that have no formal legal homes and are traded internationally? Part ofour interpretation is that cryptocurrencies rely on regulated institutions to convertregular currency into cryptocurrencies.
The authors of the paper, Raphael Auer and Stijn Claessens, are both researchers within the Bank for International Settlements monetary and economic department. Auer is the principal economist in the innovation and the digital economy unit while Claessens is the head of financial stability policy.
Earlier in April, the BIS called for countries to work on issuing central bank digital currencies in response to a number of payment issues that have come into focus during the COVID-19 pandemic. In February, the Bank appointed new leadership at two of its hubs for fintech research.
Cointelegraph reached out to the authors of the paper for further clarification but had received no answer as of press time. This article will be updated with those responses if they come in.
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New Research Says Bitcoin Price Jumps in Response to News of Clear Regulation - Cointelegraph
Bitcoin Email Scams 2020: Threatening Blackmail Tactics Used to Demand BTC | Featured – Bitcoin News
The number of bitcoin email scams has been growing in 2020 and the authorities in several countries have warned of new blackmail tactics used in threatening email scams asking for bitcoin. As the world scrambles to cope with the coronavirus pandemic and economic crisis, email scams are taking advantage of peoples fear to extort bitcoin.
The coronavirus crisis has caused a lot of panic and scammers are taking advantage of peoples fear. Those looking to blackmail victims for bitcoin know no borders as bitcoin blackmail email scams have been reported in a growing number of countries.
Fraudsters are leveraging increased fear and uncertainty during the covid-19 pandemic to steal your money and launder it through the complex cryptocurrency ecosystem, the U.S. Federal Bureau of Investigation (FBI) recently warned. The federal agency has seen a rising number of email scams asking for bitcoin payments. Noting that these email scams attempt to blackmail victims using various alarming tactics, the FBI described:
With the advent of covid-19, there is a new twist on this scam. The correspondence claims that the writer will both release your information and infect you and/or your family with coronavirus unless payment is sent to a bitcoin wallet.
Besides the emergence of coronavirus-focused email scams, sextortion email scams asking for bitcoin have also been on the rise in 2020, even though they are not a new tactic. People have shared their stories on social media of receiving bitcoin sextortion emails, such as on Facebook, Twitter, and Reddit. The U.K. and Canada are among the latest countries to see a rising number of sextortion email scam complaints asking for bitcoin.
With sextortion, scammers threaten to release steamy videos of the victim online. They may claim to have placed malware on a porn website visited by the victim, allowing them to record the targets screen with a webcam. The blackmail email then requests bitcoin or the steamy videos of the victim would be posted on social media. The Canadian Anti-Fraud Center recently explained:
A common sextortion email claims to have proof of you visiting a pornographic site and requests a bitcoin payment within 24-48 hrs or the content will be shared with your contact list.
In Canada, Halton regional police recently warned of fraudulent emails circulating in Southern Ontario attempting to extort bitcoin from residents. Investigators said that they have received more than 30 complaints about the same email, which reveals the recipients current or previous passwords and demands bitcoin. The email threatens to post an explicit video of the recipient online if a bitcoin payment is not made.
Besides sextortion, a bitcoin blackmail email scam can also threaten to spill the victims dirty secrets. The U.S. Federal Trade Commission (FTC) previously described this email scam tactic: Someone says they know about an alleged affair, or something else embarrassing to you, and demands payments with bitcoin or another cryptocurrency in exchange for keeping quiet. According to the FBI:
Threatening emails or letters in which scammers claim to have access to your personal information or knowledge of your dirty secrets and demand payment in bitcoin to prevent release of this information have been circulating for years.
There are several other threatening tactics that email scammers often use to extort bitcoin from victims. Ransomware scam emails used to be more prevalent but research has shown that its popularity has dwindled lately. Some scammers attempt to blackmail victims into handing over a bitcoin password to give them access to the coins.
Scammers will try to intimidate the victim, using threats and high-pressure tactics, to acquire immediate payment. The FTC said this action is not only a scam, but it is also a criminal extortion attempt. The agency urges anyone coming across such a scheme to report it to the authorities, such as local police, the FBI, the FTC, or their counterparts in other countries.
What do you think about all the bitcoin email scams in 2020? Let us know in the comments section below.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is 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 content, goods or services mentioned in this article.
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Bitcoin Email Scams 2020: Threatening Blackmail Tactics Used to Demand BTC | Featured - Bitcoin News
Bitcoin Smart Contract Solution RSK Sees New Stablecoin and Leveraged Token – Crypto Monitor News
A startup has launched a leveraged token and a decentralized stablecoin on Rootstock (RIF), a smart contract solution based on Bitcoin (BTC)s blockchain.
According to an announcement shared with Cointelegraph on April 21, Bitcoin-based decentralized finance (DeFi) protocol MoneyOnChain launched the new products on RSKs sidechain.
The new DeFi platform, dubbed RIF on Chain will feature RIF Dollar (RDOC), RIFX and RIFpro (RPRO). RPRO is a token that mirrors the price of RIF but also grants passive income by collecting a share of the fees generated by platform transactions.
RDOC is pegged to the United States dollar and backed by RIF tokens. Unlike competing Ether (ETH)-backed decentralized stablecoin DAI, RID Dollars can be acquired directly by spending RIF without creating a collateralized debt position.
The RDOC stablecoin is minted every time there is a certain amount of RIFpro staked on the platform. Lastly, RIFX is a token that gives exposure to RIFs price fluctuations with leverage. Diego Gutierrez Zaldivar, CEO of IOV Labs the firm behind Rootstock explained:
RIFX is a RIF leveraged decentralized long position. Based on an automated smart contract that renews every 30 days, the product has a leverage factor of 2X at the very beginning of its lifespan and a variable leverage afterwards based upon certain variables such as the price of RIF token and the amount of RDOC stablecoins in the ROC platform. Users must be aware of the risks. [] The ROC platform, in this current version, does not have a Margin Call notification.
Zaldivar pointed out that RIF is merge-mined with BTC and leverages Bitcoins blockchain for security. He also explained that Bitcoin as an asset is integrated into the system and its role will be expanded in the future:
Bitcoins are locked on-chain and RBTC tokens are minted on the RSK network accordingly. RBTC (and thereby BTC) will serve as collateral for loans, as a pegging mechanism for RIF Dollar and more.
As Cointelegraph reported in March, lead developer at blockchain firm Kava Labs Ruaridh ODonnell pointed out that there is great anticipation for the development of Bitcoins DeFi ecosystem. When it comes to the broader DeFi space, it is seeing great developments at an astonishingly fast rate.
As Cointelegraph reported earlier today, Ethereum-based DeFi protocol Synthetix recently enabled tokenized real-world assets like Brent oil and the Nikkei stock index. The CEO of blockchain firm Trustology recently said that he believes DeFi protocols could soon emerge as the worlds dominant liquidity pool if scaled effectively.
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Bitcoin Smart Contract Solution RSK Sees New Stablecoin and Leveraged Token - Crypto Monitor News