This Chart Shows You the Perfect Moment to Buy Bitcoin

It’s easy to get scared away by the daily volatile movements of bitcoin. Over the weekend, bitcoin jumped 20 percent in a matter of days. Since then …
Bitcoin priceBitcoin price

A key technical indictor acurrately predicts the best moments to accumulate bitcoin. Source: Shutterstock

It’s easy to get scared away by the daily volatile movements of bitcoin. Over the weekend, bitcoin jumped 20 percent in a matter of days. Since then, BTC shed over $1,000 before recovering slightly again. It’s a volatile market.

But zoom out for a moment and you’ll see the bigger picture. This chart, shared by on-chain analyst Willy Woo, pinpoints the best windows of opportunity to buy bitcoin for the long term.

Using what’s called the ‘ribbon difficulty’ indicator laid across the long-term logarithmic bitcoin chart, it has historically predicted the best moments to get exposure to bitcoin over the last ten years.

Introducing the Bitcoin Difficulty Ribbon. When the ribbon compresses, or flips negative, these are the best time to buy in and get exposure to Bitcoin. The ribbon consists of simple moving averages on mining difficulty so we can easily see the rate of change in difficulty. pic.twitter.com/6kBz4sLG1d

— Willy Woo (@woonomic) August 1, 2019

So next time you’re about to FOMO into the market, zoom out and take note of this chart.

The best time to buy bitcoin?

According to Willy Woo’s analysis, the perfect moment to accumulate bitcoin is when the difficulty ribbon compresses (gets very thin) or flips negative (when the strong, dark line crosses above the weaker lines), shown below.

Bitcoin ribbon indicatorBitcoin ribbon indicator
The bitcoin difficulty ribbon accurately predicted the best moment to start accumulating bitcoin in early 2019, before a 200% runup. Source: Willy Woo / Twitter

The indicator accurately predicted the bottom of the market in late 2018, early 2019. Smart investors should have started accumulating at this point (many hedge funds were).

It’s a data-driven confirmation of a decades-old investment strategy: buy when there’s blood in the streets. In other words, you buy assets when others are fearful, and sell when they’re greedy.

What exactly is the difficulty ribbon?

The ribbon charts moving averages on mining activity, allowing us to visualize the change in bitcoin mining difficulty. It also depicts how bitcoin mining affects the BTC price. As Willy Woo explains:

“As new coins are mined into existence, miners sell some of their mined coins to pay for production costs. This produces bearish price pressure. The weakest miners sell more of their coins to remain operational. When it becomes unsustainable, they capitulate, hashing power and network difficulty reduces (ribbon compression), leaving only the strong, who sell less leaving more room for more bullish price action.”

Miners capitulate in bears, but also during block reward halvening events when suddenly only half the coins are mined for the same costs and the market price has yet to catch up to pay for it. See the compression after each halvening (marked as vertical lines) as miners die off. pic.twitter.com/IwRdpJ4DFt

— Willy Woo (@woonomic) August 1, 2019

Bitcoin remains under $12,000

The ribbon difficulty pattern accurately predicted the recent 200 percent bitcoin price runup. After hitting a high of $13,880, BTC fell back below $10k before mounting another run.

At the time of writing, bitcoin is battling the $12,000 mark in what most analysts see as a healthy pullback. Trader Josh Rager explains:

“Bitcoin is doing okay, needed a pullback day, I’m not remotely bearish as it just needs to [close above] $11k at this time. Right now we’re on our way to closing the highest price weekly candle of 2019 if $11,469 holds.”

Mining Incentives Reduced as Litecoin Officially Halves

The halving for Litecoin, which is the fourth largest virtual currency by market capitalisation, has just taken place, consequently reducing the amount of …

The halving for Litecoin, which is the fourth largest virtual currency by market capitalisation, has just taken place, consequently reducing the amount of block rewards its miners receive, by half. The block height of 1,680,000 where the halving was occurred, was reached at 10:16 UTC on Monday the 5th of July.

A halving, as the name suggests, is an event where the block rewards paid to miners is reduced by exactly half. Bitcoin’s halving is expected to take place in May 2020 and will see block rewards drop to 6.25 BTC from the 12.5 BTC where it currently is. For Litecoin, a halving takes place after every 840,000 blocks – which takes about four years – and this one has reduced block rewards from 25 LTC to 12.5 LTC.

The maximum number of Litecoins to ever be mined will be 84 million and the moment, about 63 million have already been produced, representing about 75% of the entire possible number. This means that only about 21 million additional Litecoins will ever be mined. According to the Litecoin Foundation, it is estimated that the maximum number will be reached sometime in 2142. In anticipation of the halving, Litecoin jumped to $120 in June, about four times its $30 price in January. At this time, Litecoin is trading at $98.80 according to data from CoinMarketCap.

There’s a good chance this halving would reduce the population of Litecoin miners because it could very well become difficult for miners to cover the huge electricity costs with reduced rewards. F2pool, one of the biggest mining pools by hashrate, has said that the three most cost-effective miners for Litecoin are produced by InnoSilicon and FusionSilicon X6. According to Shixing Mao, the f2pool co-founder, electricity costs could make any other older models “pretty much just shut down.”

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Corporate Digital Banking Market Nemours Growth with leading Players Urban FT, Kony …

Corporate Digital Banking Market Nemours Growth with leading Players Urban FT, Kony, Backbase, Technisys, Infosys, Digiliti Money, Innofis, …

Global Corporate Digital Banking Market from the in depth perspective of all the ongoing trends that are affecting the market and are important to be understood are studied. These trends are geographical, economic, socioeconomic, political, cultural, political, and many other are studied. The overall effect on the consumer preferences will have a major say on the market working in the years to come. The dynamics which affect the market have been studied meticulously.

Digital banking is a piece of the more extensive setting for the move to web based banking, where banking administrations are conveyed over the web. The move from customary to advanced banking has been continuous and stays progressing, and is comprised by varying degrees of banking administration digitization

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The worldwide Corporate Digital Bankings market is divided territorially into the United States, Africa, Asia Pacific, Latin America, the Middle East, and Europe. Inferable from the developing populace, Asia Pacific is foreseen to indicate extraordinary potential to develop in future. The United States and Europe are the main market players because of expanded attention to wellness, the endeavors from government and private associations to make country sound, and current and occupied way of life.

This report covers Corporate Digital Bankings market from the main concern, beginning from its definition. Afterward, it fragments the market on different criteria to give a profundity of comprehension on the different item types and evaluating structures and applications. Every single portion is analyzed cautiously by considering in deals, income and market estimate so as to comprehend the capability of development and extension.

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Corporate Digital Banking Market Research Report 2019-2025

Chapter 1: Industry Overview

Chapter 2: Corporate Digital Banking Market International and Market Analysis

Chapter 3: Environment Analysis of Corporate Digital Banking

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Chapter 5: Analysis of Revenue by Regions and Applications

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Trends: Banks and big tech firms can co-exist in e-money era, says IMF

… offer special purpose licences that allow non-bank financial technology (fintech) firms to hold reserve balances, subject to an approval process.

The rapid adoption of e-money has led to concerns that it will eventually replace traditional methods of payment and displace banks altogether in the future. However, this is an unlikely scenario as banks and big tech firms can leverage their respective strengths, according to the International Monetary Fund (IMF).

In its July 15 paper, titled “The rise of digital money”, the IMF explores the various forms of digital money in today’s global landscape. It defines b-money as currencies that cover commercial bank deposits and are associated with debt-like instruments, which are denominated in a unit of account that is redeemable upon demand at face value. E-money, on the other hand, is emerging as a prominent player in the payment landscape.

E-money’s most important innovation vis-à-vis cryptocurrencies is the ability to issue claims that can be redeemed in currency at face value upon demand, says the paper. “Borrowing from our earlier analogy, it is a debt-like instrument. It is like b-money except that redemption guarantees are not backstopped by governments. They merely rest on prudent management and legal protection of assets available for redemption.”

Tobias Adrian and Tommaso Mancini-Griffoli, the authors of the paper, say banks — which are often in a position of strength — have captive users and strong distribution networks. However, they have much smaller user bases than big tech firms. This means they can cross-sell financial services to customers, such as offering overdraft protection or credit lines to overcome cash constraints. “Moreover, e-money providers may recycle many of their client funds back to banks as certificates of deposit or other forms of short-term funding.”

Nevertheless, the authors note that from the banks’ standpoint, the outcome of these efforts is not optimal. “First, they would swap cheap and stable retail funding for expensive and runnable wholesale funding. Second, they could be cut off from client relationships and third, they could lose access to valuable data on customer transactions.

“In addition, funding from e-money providers may be concentrated in a few large banks (though it would eventually trickle down to other banks). So, smaller banks may feel greater funding strains, or at least experience greater volatility in funding.”

According to the paper, there are three ways banks can respond to this — offer higher interest rates, improve services to retain deposits (including acquiring promising start-ups) and search for other funding sources. “Since banks make a profit from maturity transformation (holding assets of longer term than deposit liabilities), they may be able to offer higher interest than e-money providers … [which] must hold very liquid assets. Thus, e-money providers could offer approximately overnight money market rates. Higher rates on deposits could be met with greater operational efficiency, lower profits and potentially slightly higher lending rates.”

The authors say b-money has grown increasingly convenient due to innovations in payment methods such as mobile applications and touchless cards that facilitate payments by debit card such as Venmo and Apple Pay Cash in the US. Meanwhile, “fast payment” systems rolled out by central banks in many countries allow banks “to settle retail transactions nearly in real time at negligible cost”.

“A related example, though developed by a consortium of banks, is Swish in Sweden. Even JPM Coin is a prominent example of how banks are fighting back by entering the e-money space,” says the paper.

Swish is a mobile payment system launched by six large Swedish banks in cooperation with the Central Bank of Sweden in 2012 while JPM Coin is a digital coin designed to make instantaneous payments with the help of blockchain technology.

However, the authors question the ability of banks to adapt fast enough in this environment. Can banks be passionate about online customer satisfaction, user-centred design and integration with social media the way big tech firms are? Are they agile enough to shift business models?

“Some will be left behind no doubt. Others will evolve, but must do so quickly. In the transition, central banks can help. They can provide temporary liquidity if banks lose deposits rapidly,” says the paper.

“But central banks will be reluctant to offer this crutch for too long as their balance sheets may grow and they could be embroiled in difficult lending decisions. Short of this, banks can also find alternative forms of funding by issuing longer-term debt or equity.”

In an alternate scenario, the paper notes that e-money providers could complement commercial banks, which can already be seen in some low-income and emerging-market economies. “E-money can draw poorer households and small businesses into the formal economy, familiarise them with new technologies and encourage them to migrate from making payments to seeking credit, more complex saving instruments, accounting services and financial advice provided by commercial banks,” it adds.

Regardless, the authors of the report argue that a partnership could be envisioned even in advanced economies, where e-money providers could leverage their data to estimate customers’ creditworthiness and sell their findings to banks or intermediate bank funding for a more efficient credit allocation. “Moreover, it is perfectly possible that some of the larger e-money providers will eventually migrate to the banking business, bolstered by the data they have accumulated and their scale and attracted by the margins from maturity transformation. Thus, while today’s brands could disappear, the banking model is unlikely to be forgotten,” they say.

What if e-money providers could access central bank reserves?

In terms of providing a level playing field, the paper discusses the possibility of e-money firms holding central bank reserves like the large banks do, to the extent that they meet certain criteria and agree to be monitored. It points out that this would allow the providers to overcome market and liquidity risk and transform them into narrow banks.

“Narrow — as opposed to fractional — banks are financial institutions that cover 100% of their liabilities with central bank reserves and do not lend to the private sector. They merely facilitate payments,” says the paper.

Fractional banks would then feel greater pressure as they would no longer benefit from wholesale funding from e-money providers, it adds.

Fractional banks take deposits but only hold a fraction of these in liquid assets such as central bank reserves and government bonds. The rest is lent to households and firms, thus helping the economy grow.

The suggestion of allowing e-money firms to hold central bank reserves is not new. The paper says some central banks — such as the Reserve Bank of India, the Hong Kong Monetary Authority and the Swiss National Bank — already offer special purpose licences that allow non-bank financial technology (fintech) firms to hold reserve balances, subject to an approval process.

“The Bank of England is discussing such prospects. Meanwhile, China has gone even further. Its central bank requires the country’s large payment providers — Alipay and WeChat Pay — to hold client funds at the central bank in the form of reserves,” it adds.

If this is accepted in a big way, banks should be able to deal with it by offering attractive service offerings, says the paper. But would banks be able to hold their ground in times of crisis? Would there be massive runs from bank deposits into e-money in such times? Bank runs occur when many customers withdraw deposits at the same time from a financial institution over concerns about its solvency in the future.

The authors argue that if client funds that back e-money were held as wholesale funding for banks, the run could be the other way round as clients seek the protection of banks’ deposit insurance. They point out that uninsured deposits may migrate from banks to e-money providers, but attenuating this threat is the fact that systemic bank runs are associated with runs to foreign currencies and would happen regardless of e-money.

Additionally, there are already safe and liquid assets in many countries, such as treasury-only funds that did not see massive inflows during the 2008 global financial crisis. “While bank runs can be destabilising, they can be countered by central bank lending as long as the effects are temporary. In this case, lending to banks would balance inflows to central bank reserves. In any case, the risk of rapid disintermediation of the banking sector should be taken seriously,” says the paper.

Offering providers this access could also facilitate oversight of issuance related to the scenario of client funds being dispersed across many banks, it adds. Assuming the elimination of default risk, e-money would then be “credibly redeemable at par for domestic currency”.

“Central banks could ensure interoperability of payments and thus protect consumers from the growth of e-money monopolies offering payments among a large network of users. A payment from one to another in e-money must be shadowed by a shift of funds from one e-money provider’s trust account to another. Only then would the newly held e-money be fully backed and redeemable. Such contemporaneous transfers of client funds would be seamless if carried out on the central bank’s books,” says the paper.

In addition, central banks could require e-money providers with access to their accounts to adopt technological standards that allow e-wallets to communicate with each other, enhancing interoperability and competition. Banks and regulators may be unable to contain the growth of large e-money monopolies, say the authors.

“These could be large international firms operating as nearly natural monopolies, given the importance of network effects, rents from access to data and the sunk costs required for entry. In that case, central banks may want to give preference to domestic e-money providers operating under their direct supervision by offering them the means to issue money that is perfectly safe and liquid, and thus potentially more attractive than the foreign offering,” they add.

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Crypto Forecasts – Bitcoin, Ethereum, XRP, Litecoin, Bitcoin Cash, Tezos, Chainlink, Monero

Bitcoin is flirting with $11,000 as the overall crypto market remains a mix of green and red. An overview from COIN360 shows BTC up 1.47% at …

Bitcoin is flirting with $11,000 as the overall crypto market remains a mix of green and red.

An overview from COIN360 shows BTC up 1.47% at $10,931.

Ethereum is down 0.09% at $220.66, XRP is up 2.04% at $0.3181 and Litecoin is down 1.74% at $92.71.

Source: COIN360

According to new analysis from NewsBTC’s Aayush Jindal, if BTC can break through $11,000, the leading cryptocurrency could shoot to $11,650 in the short term.

“If there is an upside break above the $11,000 level, there are chances of more gains. If there is a successful close above the $11,000 resistance, the next stop for the bulls could be near the $11,200 level.

Overall, any further upsides will most likely push the price towards the $11,500 and $11,650 levels.”

Here’s a look at the latest forecasts from across the cryptosphere.

Bitcoin

NewsBTCBitcoin price gaining momentum above $10,500 against the US Dollar

CryptoPotatoCould BTC’s recent rally lead to a false breakout?

Ethereum

Bitcoinist ETH could surpass $300 this week

Crypto DailySupport for ETH expected around $209, with resistance at $229

XRP, Litecoin, Bitcoin Cash, Tezos, Chainlink, Monero

FX EmpireXRP, LTC and BCH leaving major support and resistance levels untested

CointelegraphXTZ, LINK, BCH, and XMR top weekly performers, but will winning streak continue?

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