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Bitcoin’s Unbelievable 457% Two-Year Returns Leave the Dow in the Dust

Bitcoin’s Unbelievable 457% Two-Year Returns Leave the Dow in the Dust

Bitcoin’s Mesmerizing 457% Two-Year Returns Leave the Dow in the DustThere’s a new sheriff in town, even though stocks are in an historic bull run. | Source: ShutterstockBy CCN: Bitcoin’s year-to-date returns of nearly 50% aren’t too shabby. But if you’d have invested in bitcoin two years ago, you would be sitting on a return of more than 457%. Morgan Creek Digital Co-Founder Anthony Pompliano did the back-of-the-napkin math. He proved that there’s a new sheriff in town, even in the face of the stock market’s historic bull run.While the time period includes bitcoin’s 2017 peak, it also accounts for the crypto winter, which provides some balance. All told, the bitcoin price is up by a triple-digit percentage. Meanwhile, the Dow Jones Industrial Average has delivered, ahem, 26% returns in the same span. It’s not just the Dow. Bitcoin has outperformed the S&P 500 and oil, too, not to mention its chief rival as a store of value, gold. Even if bitcoin’s risk/reward ratio isn’t for everyone, it’s all about maintaining the right perspective.“The non-correlated, asymmetric nature of bitcoin makes it imperative that every portfolio include some exposure to the digital currency,” said Pompliano using the hashtag “GetOffZero.”Two year returns:S&P 500: 19.9%Gold: 1.3%Oil: 31%Bitcoin: 457%The non-correlated, asymmetric nature of Bitcoin makes it imperative that every portfolio include some exposure to the digital currency. #GetOffZero— Pomp 🌪 (@APompliano) April 23, 2019‘Volatility Is Required for Outsized Returns’The stock market has generated impressive returns over the last couple of years, too. But nobody ever said the Dow was going to zero as they did about bitcoin. So the fact that the leading cryptocurrency’s returns have usurped the Dow’s is all the evidence that crypto investors need to silence the critics.Bitcoin is a volatile asset, and its performance is erratic. As Fundstrat’s Tom Lee says, bitcoin’s annual gains tend to involve the 10 best trading days of the year. The Dow, which experienced its biggest one-day point gain (not percentage) ever of 1,086 points at year-end 2018, is boring by way of comparison. Bitcoin investors can stomach a much wilder ride. Just ask Softbank Group CEO, Masayoshi Son. The billionaire lost $130 million in a bitcoin bet gone wrong.Pompliano said:“Bitcoin’s volatility is what made it the best performing asset over the last decade. Volatility is a requirement for outsized returns.”The Dow vs. the Grayscale Bitcoin Trust. | Source: Yahoo FinanceGetting Off ZeroThe Morgan Creek Digital co-founder offers some anecdotal evidence that big investors are paying attention to bitcoin. Pompliano has observed a shift in sentiment among family offices. When asked by a follower in the Twitter thread if wealthy families are in fact “getting off zero,” he responded that “they’re getting there” and “plenty of folks are asking the right questions.”I just spent 40 minutes in front of some of the wealthiest families in the world to explain Bitcoin.They’re listening. Sentiment is changing.We’re early but each of these families will eventually #GetOffZero. pic.twitter.com/Pet8gMFFdx— Pomp 🌪 (@APompliano) April 25, 2019Bitcoin’s ascension to nearly a $10 billion market cap since its inception a decade ago has impressed even the most seasoned Wall Street veterans, including Morgan Creek CEO Mark Yusko.People ask me why would someone from traditional investment world cross over to #Blockchain & #Crypto world?Because never in my 30 yrs of managing capital have I seen an asset that delivers on promise of return enhancement & risk reduction through low correlation like #Bitcoin— Mark W. Yusko (@MarkYusko) April 25, 2019Click here for a real-time Dow Jones Industrial Average price chart. About The AuthorGerelyn TerzoGerelyn is a fintech and cryptocurrency journalist who started her career writing about traditional finance/Wall Street. She has been reporting on financial services for the past 15-plus years. In full disclosure, she holds bitcoin (BTC).
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Moonday Mornings: Binance to resume deposits and withdrawals after $40M Bitcoin hack

It’s time for Moonday Mornings, Hard Fork’s wrap-up of the weekend’s top cryptocurrency and blockchain headlines. Here’s what happened. 1. Binance says it will resume deposits and withdrawals on its platform on Tuesday. The cryptocurrency exchange had suspended the functions following an attack in which hackers stole over $40 million worth of Bitcoin. 2. The…

Moonday Mornings: Binance to resume deposits and withdrawals after $40M Bitcoin hack

It’s time for Moonday Mornings, Hard Fork’s wrap-up of the weekend’s top cryptocurrency and blockchain headlines.

Here’s what happened.

1. Binance says it will resume deposits and withdrawals on its platform on Tuesday. The cryptocurrency exchange had suspended the functions following an attack in which hackers stole over $40 million worth of Bitcoin.

2. The figureheads of the fake cryptocurrency scheme, OneCoin, are being sued. Brother and sister duo, Konstantin Ignatov and Ruja Ignatova are facing a class action law suit for their involvement in the scam which was “based completely on lies and deceit,” ZDNet reports.

3. A Bitcoin BTC fueled ransomware attack hit the Baltimore City government last week. Despite being cleaned of the ransomware, hackers are allegedly still accessing the infected computers, ZeroHedge reports. The Federal Bureau of Investigation is now investigating the attack.

4. The creator of the Bitcoin treasure hunt Satoshi’s Treasure is claiming nearly 60,000 people are following the global challenge, CoinDesk reports. One player has already claimed the first prize, and didn’t even have to go anywhere to claim it.

And finally.

5. William Shatner is putting William Shatners on the blockchain. The former Star Trek actor is joining Mattereum, a legaltech firm, to document the authenticity of science collectibles and memorabilia from a range of franchises on the blockchain.

That’s another weekend’s headlines for you. Live long and prosper.

Published May 13, 2019 — 07:58 UTC

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Amazon granted patent for Bitcoin-style system to fight DDoS attacks

Cryptocurrency rumor mongers are likely to be dancing today as Amazon has successfully filed a patent for a Bitcoin-styled Proof-of-Work system. But don’t get ahead of yourself, it doesn’t look like the Seattle-based ecommerce giant will be accepting Bitcoin for payments. Despite first being filed in December 2016, Amazon’s patent application was granted earlier this…

Amazon granted patent for Bitcoin-style system to fight DDoS attacks

Cryptocurrency rumor mongers are likely to be dancing today as Amazon has successfully filed a patent for a Bitcoin-styled Proof-of-Work system. But don’t get ahead of yourself, it doesn’t look like the Seattle-based ecommerce giant will be accepting Bitcoin for payments.

Despite first being filed in December 2016, Amazon’s patent application was granted earlier this week and appears to outline a system that uses Proof-of-Work to prevent distributed denial-of-service (DDoS) attacks.

“One way to mitigate against such attacks is to configure a service such that requests to the service incur some sort of expense, thereby providing a disincentive to participating in the attack,” the application reads.

Planting a Merkle Tree

Amazon proposes to use Merkle Trees to present a Proof-of-Work challenge and make it too costly for a series of computers to perform a DDoS attack.

But what’s a Merkle Tree? In short, Merkle Trees are cryptographic tools where blocks of data are manipulated to give them a unique identifier also known as a hash.

These hashes are then manipulated again to create a parent hash. Parent hashes are always a combination of two or more child hashes. It’s layers on layers of hashed data.

Since computing power is required to build a Merkle Tree, performing such hashes could get very costly in terms of time, electricity, and resources. In turn, this makes DDoS attacks economically unfeasible.

In the case of Amazon’s patent, imagine having to construct a Merkle Tree before you’re allowed to access a website hosted on one of its servers. To an individual the cost might be insignificant, but to an organization trying to carry out a DDoS attack – which might involve many hundreds of computers – it could become prohibitively expensive.

Amazon’s Merkle Tree

Merkle Trees are also used in Proof-of-Work blockchains like Bitcoin as part of its consensus mechanism. But for now that’s as close as Amazon will get to Bitcoin.

Indeed, with this news it seems Amazon is still of the “blockchain, not Bitcoin” mantra. Earlier this month, the web giant said that AT&T, Accenture, and Nestlé are all using its cloud-based blockchain tools.

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South African voters fear mobile political campaigns will steal their personal info

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