ARE YOU A BITCOIN HODLER??? Check this out!!!
Today, we have picked four hottest pieces of news happening in the crypto markets. Let me give you a glance at what they are. First up, despite the fact that Bitcoin has refused to moon since 2017, it appears hodlers are not giving up just yet, as over 60% Bitcoin in circulation has not left their wallets since 2018! Second up, Bakkt Bitcoin futures open interest has surged significantly, indicating a very healthy market. Next we have this top African nation that has decided to formulate new regulations for its cryptospace, and finally, last but not least, these are sad times for Vertcoin and its supporters, as the altcoin has suffered another 51% attack within just one year.
The Market Today
It’s a red Wednesday for most cryptos on the market. Bitcoin is currently priced $7,157, decreasing 1.71% from Tuesday. Similarly, ETH and XRP are also down by 2.31% and 3.1% respectively.
Vertcoin has just been attacked up to 51% again
As reported by Coindesk, Vertcoin, a blockchain-based cryptocurrency project that claims to be focused on keeping mining power decentralized, has suffered a huge setback, as bad actors have orchestrated a 51% attack on the network. In other words, a double spend in the blockchain world is the same as spending fake banknotes in the real world. Also referred to as double-spending, a 51% attack occurs when a bad actor succeeds in gaining more than half of the hashing power of a blockchain network, making it possible for the entity to carry out fake transactions. The 51% attack which reportedly took place on December 1, 2019, allowed the attacker to double spend 125 vertcoin (VTC) worth roughly $29, as 603 genuine blocks on the Vertcoin blockchain were replaced by 563 blocks written by the fraudster. Commenting on the ugly incident, Vertcoin lead maintainer, James Lovejoy noted that:
“Each of the double-spent outputs is coinbase outputs owned by the attacker and it is unknown to whom the coins were originally sent before being swept to an attacker address after the reorg.”
Though this is not the first time a cryptocurrency is experiencing a 51% attack, Vertcoin’s case is, however, becoming a serious issue since the network was also attacked last year, allowing the hackers to spend $100,000 worth of fake vertcoins. According to the Vertcoin team, this year’s 51% attack may have been more severe had Bittrex not promptly disabled Vertcoin wallet when the attack was first noticed by a Vertcoin miner. Lovejoy said:
“On Nov 30th 2019, Vertcoin miner noticed a large upswing in hashrate rental prices for Lyra2REv3 on Nicehash. This was combined with workers connected to Nicehash’s stratum server being sent work for unknown (non-public) Vertcoin blocks. I contacted Bittrex, Vertcoin’s most prominent exchange, to recommend they disable the Vertcoin wallet on their platform once it became clear an attack was in progress, which they subsequently did.”
The South Africa Reserve Bank is going to deploy the new rules on cryptos
Per a report by Hard Fork, South African authorities are now looking to implement new guidelines for the nation’s cryptospace. Reportedly, the South Africa Reserve Bank (SARB) has hinted that from next year, new legislation will be implemented to make it harder for cryptos to be used evade currency controls, as limits will be placed on how much South African rand can be sent outside the country. While peer-to-peer (P2P) bitcoin trading has continued to gain traction in South Africa, some financial institutions in the region have exhibited a somewhat draconian stance towards cryptos, with First National Bank (FNB) shutting down the accounts of crypto-related businesses. With new rules already on the horizon, it remains to be seen whether the South African cryptospace will be boosted or crushed by this new legislation.
Bakkt’s BTC futures open interest hit a new all-time high
These are exciting times indeed for Intercontinental Exchange’s Bitcoin futures trading venue, Bakkt, as open interest on the platform has reached a new all-time high, barely weeks after trading volumes on the exchange achieved the same feat. For those who are unaware, in futures markets, open interest simply refers to the total number of open contracts in the market and it is more or less a yardstick used in judging the overall health of the futures market. In essence, large amounts of open interest indicate that new or additional money has been pumped into the markets. On Monday, Bakk’s open interest hit an all-time high of $6.5 million, which is a 42% increase from the previous day. Since going live earlier in September, Bitcoin futures trading volume on Bakkt has continued to hit new highs, with the figure rising to over $42.5 million at the end of November. Though the coming of Bakkt has not ushered in the bulls as expected, the launch of the platform goes a long way to show that the cryptospace is gradually maturing and it’s only a matter of time before Bitcoin goes entirely mainstream.
Rhythm: “Hodlers of last resort are insane”
While Bitcoin adoption has seen a steady increase in recent years, with a vast array of firms accepting the world’s flagship cryptocurrency as legal tender in exchange for their goods and services, it appears a majority of hodlers are not ready to give up their BTC for anything in his world just yet. According to a report by Cointelegraph, more than 60% of the total Bitcoin in circulation has remained in their owners’ wallets since 2018. Specifically, it has been reported that out of the roughly 18.08 million Bitcoins that have been mined so far, 11.58 million BTC has not been moved from their wallets since 2018. Now, what does this really mean? At a time when authorities have made it clear that the world’s debt will continue to rise, forward-thinking citizens of the world have started planning for their future already with Bitcoin, as the digital asset is a hard currency whose supply cannot be manipulated by central banks or the government. It’s worth noting that the price of BTC surged from its low of 3,100 during the crypto winter of 2018, to a high of 13,800 in 2019, before reaching this year’s low of $6,500. With 2020 just around the corner and the Bitcoin halving event scheduled to go live in May next year, it is expected that more hodlers will buy the current dip in order to take advantage of the impending bull run.
That’s everything you need to catch up today guys! Are you surprised by hodlers’ faith in Bitcoin even with the ongoing bloodbath? Do you think Bakkt Bitcoin futures will continue to gain traction? Will South Africa’s proposed crypto regulation stifle the growth of its cryptospace? And what do you think about Vertcoin’s latest 51% attack?
Please leave a comment right below to let me know what you guys are thinking.
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Disclaimer: Cryptopig content is written by a team of blockchain passionate people. We are not registered as investment advisors. Don’t take the information in this post as investment advice and make sure you do your own research before investing. Cryptocurrencies are a very risky investment, never invest more money than you can afford to lose.