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How is Elon Musk’s Favorite Cryptocurrency, Dogecoin, Performing in 2019?

How is Elon Musk’s Favorite Cryptocurrency, Dogecoin, Performing in 2019?

Elon Musk, who earlier this year called Bitcoin “brilliant”, revealed his favorite currency earlier this month.He said in a tweet:Dogecoin might be my fav cryptocurrency. It’s pretty cool.Dogecoin might be my fav cryptocurrency. It’s pretty cool.— Elon Musk (@elonmusk) April 2, 2019He made the tweet after the official Dogecoin account asked who should become the cryptocurrency’s next CEO (it was a joke). Musk received 54 percent of the vote. CCN covered the tweet here.The official Dogecoin then anointed Musk the CEO. “Looks like you’re the CEO now @elonmusk, DM us where to email the access codes :-D”Musk tweeted several times about the cryptocurrency In one such tweet he wrote, “Dogecoin rulz.”Dogecoin rulz pic.twitter.com/flWWUgAgLU— Elon Musk (@elonmusk) April 2, 2019So, with April winding down, we thought we’d take a look at the Dogecoin chart year to date. Bulls are looking to break above the exponential moving averages (EMAs) on Dogecoin and should they find success, the crypto’s price will continue on a bullish trend that increases its chances of a powerful pump in May.A general uptrend began on April 1 before reaching a high of 84 Satoshis three days later. April 13 saw Dogecoin break out from a falling wedge and the coin has now found stability at around 54 Satoshis. The meme-inspired altcoin faces soft resistance first at 58 Satoshis with a more indicative resistance level of 69 Satoshis. Good reason for optimism exists: the 200 EMA level is at 55 Satoshis, at the time of writing, so this should be fairly routine for bulls to break.Dogecoin pumps every eight months:Source: TradingViewIt is staggeringly routine for Dogecoin to undergo a price spike every eight months and almost without fail – one month in 2016 bucked this trend – so bullish signs will perhaps carry more weight now than ever.A flurry of activity in early April may have been this pattern in play, although a spike to 84 Satoshis before a fall to similar price levels seen in 2019 so far does not closely match the previous pumps.If bullish indicators remain strong then a bounce to 80 Satoshis is likely and perhaps even further beyond; there will be those holding out for a return to the 2018 high of over 100 Satoshis. They might get it. Dogecoin has a history of pumping rapidly within the space of a few days.A ‘buying spree’ for Dogecoin?One Twitter user found transactions to the tune of millions that constituted more than 20% of all Dogecoin bought and sold that day, more curious for the fact that appearances suggest they represent the authentic buying and selling of the coin. The existence of large scale transactions does not on its own mean that Dogecoin will enjoy a sudden price hike. It remains a possibility among a host of reasons for why individuals make such high-profile coin movements, though it could not be taken as an early indicator until after a pump. Does Dogecoin have a future?Critics say Dogecoin is not serious crypto but a sort of extended joke, though it remains the 26th largest coin in the market with a 24h trading volume of $33,002,526 and a market cap of $335,233,515. Dogecoin also recently secured a listing on Singapore-based exchange Huobi with the three trading pairs of DOGE/USDT, DOGE/BTC and DOGE/ETH. Within 24 hours, Huobi Global was the third largest Dogecoin market with around $19 million in trading volume. Another pump could bring Dogecoin into the limelight again. While it still has no listing on Binance, the meme-in-a-coin has made impressive strides towards an air of legitimacy that convinces beyond its faithful community. If the market can continue to offer a balance of stability and reward to investors then its mid-term future might be all but secure.Not long after Musk proclaimed that Dogecoin was his favorite cryptocurrency, popular Chinese exchange, Huobi, listed it for trading.Musk has somewhat of a history tweeting about cryptocurrency. The tech billionaire seems to stay up on cryptocurrency news.“Cryptocurrency is my safe word,” he once proclaimed.On the Ark Invest podcast, Musk confirmed his confidence in cryptocurrency. “Paper money is going away and cryptocurrency is a far better way to transfer value than pieces of paper,” he said. While Dogecoin might be Musk’s favorite cryptocurrency publicly, he’s also had some favorable things to say about the original cryptocurrency.He said on a podcast:“I think the Bitcoin structure is quite brilliant. There seems like there is some merit to Ethereum as well, and obviously others. But I’m not sure if it’s a good use of Tesla resources to get involved in cryptos.”Tesla, however, has no plans of incorporating blockchain.“We’re really just trying to accelerate the advances of sustainable energy,” he said. “One downside of Bitcoin is in computationally; it’s quite energy intensive. There has to be some kind of constraint on the creation of crypto. It’s very energy intensive to create incremental bitcoin at this point.”He adds: “It bypasses currency controls. Paper money is going away, and crypto is a far better way to transfer value than pieces of paper. That’s for sure.”
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Traders are piling into bitcoin as a haven against volatile markets. This researcher warns they could get burned.

Dan Kitwood/Getty Images Bitcoin isn’t a ‘unique’ hedge as it’s vulnerable to the same market risks as conventional investments, according to a new study. It becomes more exposed to factors such as inflation expectations when its price is less volatile, the researcher found. The findings are a “cautionary note” for investors, writes author Dimitrios Koutmos,…

Traders are piling into bitcoin as a haven against volatile markets. This researcher warns they could get burned.

hedge mazeDan Kitwood/Getty Images

  • Bitcoin isn’t a ‘unique’ hedge as it’s vulnerable to the same market risks as conventional investments, according to a new study.
  • It becomes more exposed to factors such as inflation expectations when its price is less volatile, the researcher found.
  • The findings are a “cautionary note” for investors, writes author Dimitrios Koutmos, as they suggest bitcoin isn’t “a unique asset class whose price behavior is detached from economic fundamentals.”
  • Watch bitcoin trade live.

An escalating US-China trade war, the slowing Chinese economy, and a prolonged Brexit process have fueled anxiety in financial markets, boosting investors’ interest in bitcoin as a hedge against volatility.

However, new research suggests the cryptocurrency may have limited value as a hedge as it’s vulnerable to the same factors that move the prices of stocks and other mainstream investments. While it escapes some of those drivers when its price is especially volatile, the increased risk may outweigh the greater returns.

“Bitcoin prices, despite their seemingly attractive independent behavior relative to economic variables, may still be exposed to the same types of market risks which afflict the performance of conventional financial assets,” wrote Dimitrios Koutmos, an assistant professor of finance and technology at Worcester Polytechnic Institute in Massachusetts, in a study titled “Market risk and bitcoin returns” published online in the Annals of Operations Research this month. 

Koutmos used treasury bill rates, the VIX and Deutsche Bank FX volatility indexes, treasury yields, forward inflation swap rates, equity indexes, and the difference between corporate bond yields and treasury yields as proxies for short-term interest rates, market-volatility expectations, and other factors that affect traditional financial assets. He examined their influence on daily bitcoin prices between January 2013 and September 2017.

His key finding was that several of these factors were “important determinants of bitcoin returns.” Specifically, short-term interest rates and investors’ expectations of stock-market and foreign-exchange volatility were significant determinants of the price of bitcoin during periods when it rose or fell sharply. Those three factors, along with general economic conditions and inflation expectations, influenced the price of bitcoin when the cryptocurrency was less volatile, according to the study.

The findings serve as a “cautionary note” for investors, Koutmos wrote, as they suggest bitcoin isn’t “a unique asset class whose price behavior is detached from economic fundamentals.”

They also indicate “bitcoin’s usefulness as a diversification instrument is time-dependent,” given the cryptocurrency was more susceptible to factors such as inflation expectations during periods when its price was less volatile. 

If bitcoin truly is a better hedge when its price is moving around, investors who bought into bitcoin’s price surge this month as a hedge against the sharp downturn in stocks might be feeling pretty smug. However, Koutmos also found that bitcoin’s superior returns during periods of high volatility weren’t high enough to offset the increased risk, meaning its returns during low-volatility periods were higher on a risk-adjusted basis. 

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‘Bitcoin Will Disappear,’ Craig Wright Rants in Blistering ‘Satoshi’ Manifesto

‘Bitcoin Will Disappear,’ Craig Wright Rants in Blistering ‘Satoshi’ Manifesto

‘Bitcoin Will Disappear,’ Craig Wright Rants in Blistering ‘Satoshi’ ManifestoSelf-proclaimed “Satoshi Nakamoto” Craig Wright published a blistering manifesto that predicted Bitcoin would disappear in “moments.” | Source: Crypto Strategies/YouTube (i), Shutterstock (ii). Image Edited by CCN.By CCN: Australian entrepreneur Craig Wright published a blistering manifesto that argues bitcoin (BTC) will eventually disappear because it’s being used to facilitate criminal activity. And that perverts his original vision for the cryptocurrency.For reference, Wright has repeatedly claimed that he is Satoshi Nakamoto, the mysterious creator of bitcoin. He has yet to offer definitive proof.Civil War Erupts Between Warring Crypto FactionsWright is a proponent of Bitcoin SV (Satoshi’s Vision), which he insists is the “true bitcoin.”Wright and his ally Calvin Ayre claim BSV will supplant all other fake pretenders to the bitcoin throne and will crush rivals BTC and Bitcoin Cash (BCH) into the ground.Bitcoin Price Will Crash to Zero Says Bitcoin Cash Founder Calvin Ayre https://t.co/34ZrOZVJhu— CCN.com (@CCNMarkets) December 17, 2018‘Bitcoin Needs to Act Within the Rules’In a withering manifesto, Wright claims he created bitcoin to operate within the law and not to facilitate criminal activity like money-laundering.Wright then torched cryptocurrency evangelists who claim BTC is totally decentralized and therefore doesn’t need to play by any rules. However, Wright says they’re deluding themselves and need to be slapped awake.“I designed Bitcoin to be a system that worked within the rules.”“Bitcoin needs to act within the rules. If it does not, then the exchanges and systems that allow people to use Bitcoin act to stop it being widely used and disseminated and criminalise all of those in the system.”“If Bitcoin or any other monetary system seeks to act outside the rules, it becomes an outlaw system, and once it does, it is easy to stop.”“The majority of people want rules. They don’t want to fight in a world of uncertainty, and want to know that the contract that they have conducted will remain valid not just now, but throughout the term of the exchange — for which we need rules.”Craig Wright, the self-proclaimed inventor of bitcoin, says BSV will supplant BTC in due time.Craig Wright: Binance Facilitates CrimeMoreover, Wright insists that cryptocurrency exchanges are basically criminal enterprises that “facilitate money laundering.” Accordingly, he predicts that they will eventually go out of business “because crime will always fail.”Specifically, Wright accused Binance and Bitfinex of lying to their customers when they claim to be decentralized. He says they’re not. Wright also explained that the only reason why anyone wants a decentralized financial platform is so they can use it to hide or launder money.“Groups such as Binance who seek to facilitate money laundering and crime will always fail. They defraud you in telling you that they are decentralised and cannot be controlled.“Bitcoin is a system that was set in stone. If the protocol is changed, then it shows and demonstrates it is not Bitcoin. When those involved altered the rules, they impacted their entire ecosystem — it is a centralised power structure. They defraud you when they lie about decentralisation and tell you that they have no ability to change things but then alter the rules.”“When those in power are able to change the protocol, they can change the lives and the finances of those involved in the system at an arbitrary whim. It is why BTC is not Bitcoin.”Wright: Bitcoin ‘Will Disappear In Moments’Wright further claimed that because bitcoin has been manipulated, it will eventually disappear. And when that happens, he warned that it’ll vanish instantly.“Where a blockchain does not follow the rules…it is simple for government to stop. When the action happens, as it did with e-gold, everything invested in the system will vanish in a flash. When BTC disappears, it will not disappear slowly, it will disappear in moments.”Wright then concluded by promising that he’ll sign a Satoshi transaction after “I have definitively proven I created Bitcoin. Not before.” About The AuthorSamantha ChangSamantha Chang is a financial editor who writes about politics at BizPac Review, about business at CCN, and general news at HVY. She is a law school graduate and an alum of the University of Pennsylvania who enjoys finance, flowers, and fitness. You can find her on Twitter at Samantha_Chang.This article was edited by Josiah Wilmoth.
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