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January 2008

Bitcoin Corrects 45% from Highs

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Bitcoin

Bitcoin

After having been in a slumber for most of 2018 and recording steady declines, Bitcoin returned with a bang in the first half of this year. Throughout the first six months of the year, BTC enjoyed an incredible rally that raised visions of unprecedented highs, but this all soon came to a halt.

Why the Sudden Fall?

Now, the biggest cryptocurrency in the world is in the middle of a major slump, and since its high of $14,000 earlier this year, it has slumped by more than 50%. That being said, it should be kept in mind that over the years, BTC has had bigger slumps and made strong comebacks.

Hence, it is not a surprise that most crypto analysts are still upbeat about the long-term prospects of Bitcoin. That being said, most analysts are not that optimistic when it comes to the short-term prospects of the token.

Many believe that BTC could drop further in the days and weeks to come, before making any kind of recovery. On November 24, BTC fell to $6,500 per coin, which proved to be its lowest level since May earlier this year. Analysts do not believe that $6,500 is the bottom for the token, and hence, investors can expect the token to drop further.

Managing director of Digital Capital Management, Tim Enneking, said, “We don’t see $6.5k as the bottom, although it’s the first strong candidate for that title.” The forecast should not come as pleasant news to many who might have bought the cryptocurrency when it was at its highest levels.

>> UPbit Loses $49 Million Worth of Crypto in Major Hack

That being said, he went on to add that if there is going to be a rebound, then it is going to happen after Bitcoin drops further from that particular level. It should be noted that after Bitcoin hit $6,500 on November 24, it recovered the very next day and hit $7,400.

Featured image: DepositPhotos © nils.ackermann.gmail.com

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Ethereum Plunges 10% in 48 hours

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Ethereum

Ethereum

The price of Ethereum (ETH) dropped to $123 from $142 in the last 48 hours, which is more than a 10% drop against the dollar. At the start of the year, the coin was trading at $130 across all cryptocurrency exchanges. The latest drop leaves the coin in the net negative this year, in contrast to Bitcoin’s 70% performance in 2019.

The worst part is that the coin is still 91% down from its record high of $1,450. The coin reached this peak during the initial coin offering (ICO) craze between 2017 and 2018. Since then, bears have hit Ethereum harder compared to Bitcoin.

Why ETH Has Been Declining

The main reason why ETH has suffered is because of the underperformance of altcoins as Bitcoin continues to dominate the market. So far this year, BTC accounts for 72% of the crypto market, up from 33%. Since ETH is the largest altcoin, it has been the most affected in this Bitcoin-centric market.

Equally, the coin also experienced significant selling pressure resulting from the PlusToken Wallet crypto scam. A report from blockchain analytics company Chainalysis indicates that scammers have been liquidating several millions worth of ETH and BTC in recent months. Although authorities have apprehended most of this, the issue has been pushing prices lower. The situation worsened because ETH is a more liquid market compared to BTC, and, therefore, the PlusToken liquidations contributed to the decline.

>> Bitcoin (BTC) Suddenly Tumbles Below $7K Mark: Time to Panic?

There is Still Hope for ETH

Even though the coin has experienced declining prices, some are of the opinion that its fundamental trend is still positive. According to reports, ReaIT, a real estate platform that works with blockchains and Ethereum, has sold its first-ever tokenized property on Ethereum. Also, decentralized finance has been growing rapidly and as a result, derivatives and the opportunity to get decentralized financial services are attracting more users.

Equally, Fidelity Investments recently indicated that it will add support for Ethereum services via its crypto branch, Fidelity Digital Assets. Tom Jessop, the president of Fidelity Digital Assets, stated that they are planning to add support for the asset sometime next year.

Featured image: DepositPhotos © Violka08

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Tech Mahindra Introduces Blockchain Solution for Finance and Insurance

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Tech Mahindra

Tech Mahindra

Indian conglomerate Mahindra Group’s IT subsidiary, Tech Mahindra, has partnered with American tech company Adjoint. The company is set to launch blockchain use in insurance services and finance management solution.

Blockchain Solution for Financial and Insurance Services

On Monday, CommMEA reported that the solution, which is the first of its kind, will be a game-changer. Using the service will save clients up to $4 million for every $1 billion of financial management and banking relationships. Using blockchain in the insurance and finance sector will ensure that clients receive a seamless and trustworthy experience.

The report indicates that users of the Uplink solution will be able to validate the business case with their own data in a secure environment. It will also help in eliminating double data and out-of-order entries. This will give auditors access to the absolute record of transactions and help to ease compliance and reporting. It will transform data quality and empower users with the responsibility of having accurate data.

The solution, which is an open-source distributed ledger technology platform, will enhance financial compliance. It has a dedicated consensus mechanism and messaging protocol that will let users of the solution determine data to input to the DLT. According to Tech Mahindra, the solution will offer the required efficiency in solving real-world problems in the insurance and financial management sector.

>> Binance Acquires Crypto Derivatives Platform JEX

Previous Mahindra Blockchain Initiatives

However, this is not the first time that Tech Mahindra has shown interest in being involved in blockchain technology. The subsidiary has been involved in several initiatives applying blockchain technology. For instance, at the beginning of May, the company announced its involvement in an anti-spam phone calls project. The project entailed relieving mobile phone customers of the nuisance calls by requiring providers to follow regulations set out by India’s Telecom Regulatory Authority.

Equally, back in April, the company announced its collaboration with Samsung. The company was seeking to enter the overseas blockchain space through the Samsung SDS blockchain platform called Nexledger. The companies expect to explore the customizable application of blockchain as per business needs.

Featured image: DepositPhotos © jamesteohart

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Understanding the Cybersecurity Risk of Bitcoin

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cybersecurity

cybersecurity

Are you interested in purchasing Bitcoin? If so, it’s essential to understand the potential security risks surrounding it. With cybercriminals ramping up their attacks, cryptocurrency will likely be a target.  Here’s what you need to know.

Wallets Carry Risks

Cryptocurrency enthusiasts use both hot and cold wallets to store their Bitcoin. A hot wallet has an internet connection, which makes it potentially hackable. You might wake up one morning to find your funds depleted by an infiltrator overnight.  A May 2019 cyberattack on a Binance hot wallet led to a theft of $41 million—more than 7,000 Bitcoin.

Storing your Bitcoin in a cold wallet—one without an internet connection—does not make you free and clear, however. Take the example of Gerald Cotten, a cryptocurrency exchange CEO who passed away while being the sole holder of passwords to his accounts. That situation restricted access to approximately $137 million in cryptocurrencies held in cold wallets and owned by about 115,000 customers.

When experts eventually took Cotten’s laptops, they found that someone emptied the wallets about eight months before the CEO died. That revelation caused some people to wonder if he faked his death and ran off with the funds.

Stolen Data May End Up Sold

Most tech-savvy people know that one of the consequences of being an internet breach victim is that their data may end up on the dark web, sold to any party willing to pay the price. That outcome can happen with cryptocurrency details, too.

Reporters said that the hacker allegedly behind the infiltration of Ethereum.org took information from customers associated with several leading cryptocurrency wallet brands. The cybercriminal has three databases collectively containing information from 80,000 people, including emails, home addresses, and phone numbers.

Although the hacker did not put cryptocurrency-related data up for sale, this example shows you must always be aware of your information’s value and work hard to protect it. Many people appreciate dealing with Bitcoin because of its decentralized nature, believing it’s safer than doing business with a bank. Regardless of whether that’s your mindset, any data you use to sign up for a cryptocurrency site or service could end up in the wrong hands.

Investment Advisers Must Take Cybersecurity Precautions

A recent report about investment advising and cryptocurrency revealed that clients who want to expand their portfolios are increasingly likely to inquire about the digital currency. For example, 76% of all advisers polled received crypto questions from their customers in 2019. Bitwise also expects 13% of advisers to allocate funds to cryptocurrencies this year—up from 6% in 2019.

>> Prevent Bitcoin Fraud by Securing Your Identity

Maintaining robust cybersecurity is a crucial part of operating as a responsible investment adviser. Statistics say 91% of businesses follow a risk-based cybersecurity framework. That approach only works well for investment advisers if they know which threats exist. Scheduling evaluations such as penetration tests can help them understand the existing weaknesses, but these professionals should also stay abreast of crypto-related cyber threats as they arise.

Customers trust investment experts to manage and grow their wealth. Relationship building is a crucial part of the job, but unaddressed cyber risks could erode any trust accumulated through interactions over months or years.

Social Media Scams Could Fool Bitcoin Owners

Bitcoin is a hot topic these days, and it’s natural to follow social media profiles of thought leaders in the crypto and tech industries. Doing so could give you a head start on knowing about significant developments before others.

However, another cybersecurity threat associated with Bitcoin and other cryptocurrencies concerns scams spreading through social media. Criminals trick followers by impersonating famous people, then posting messages about “giveaways.” The premise is that if you send a small amount of cryptocurrency to a provided address, you’ll get double, triple, or more in return.

The parties offering such free money never take action to part with their funds. They merely sit back and watch the crypto transfers arrive. People familiar with this kind of wrongdoing also raise concerns because they assert that social media sites don’t do enough to police this fraudulent activity and ban those responsible for it.

This approach is similar to emails that many people receive claiming they won the lottery or received an inheritance from a long-lost relative, and need to provide their bank account details to get the money. No funds show up, of course. Always exercise critical thinking and ponder the details carefully before taking action you may regret.

Potentially Worthwhile, but Not Without Risks

After reading this coverage and doing your own research, you may conclude that investing in Bitcoin still interests you. An ideal way to protect yourself as a cryptocurrency owner is to thoroughly understand the pros and cons of any move before making it. Then, you’re more likely to be well-educated before making your decision. Bitcoin is not a risk-free investment. Educating yourself about cybersecurity risks is an ideal way to avoid them.

This article was curated through CryptoCurrencyNews’ Contributor Program. If you would like to write for us, send us your submission!

Featured image: DepositPhotos © AlphaBaby

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