Sath Vichet

Mark Zuckerberg Announces To Study Cryptocurrency as A Hint to Decentralize Facebook

Almost the entire world is swept by the digital currency wave and now the mogul of the social networking world – Mark Zuckerberg has set his eyes on the world of cryptocurrencies. In his latest Facebook post, Zuckerberg has set a personal challenge for 2018 to fix issues and improve services on his social networking platform as well as study the “positive and negative aspects” of cryptocurrency and encryption.C

Zuckerberg writes: “My personal challenge for 2018 is to focus on fixing these important issues. We won’t prevent all mistakes or abuse, but we currently make too many errors enforcing our policies and preventing misuse of our tools. If we’re successful this year then we’ll end 2018 on a much better trajectory.

One of the major challenges which Facebook currently faces is fighting against fake news being spreader through the use of its platform. He says that the problem with the Internet these days is that it is controlled by a few big companies which include Facebook as well. He believes that this is somehow against the actual vision of web which gives everyone equal power and share.

In his long post, Zuckerberg writes “A lot of us got into technology because we believe it can be a decentralizing force that puts more power in people’s hands. (The first four words of Facebook’s mission have always been “give people the power”.) Back in the 1990s and 2000s, most people believed technology would be a decentralizing force.

He further states that “… today, many people have lost faith in that promise. With the rise of a small number of big tech companies — and governments using technology to watch their citizens — many people now believe technology only centralizes power rather than decentralizes it.

Zuckerberg wishes to turn these things around and said that he would look forward to studying cryptocurrency and its underlying technology. We all know that around the globe investors are divided about their opinion on cryptocurrency but many of them come together and are positive about the blockchain technology and its future potential in a wide range of applications.

We have also seen that several banks and other financial institutions who have denounced the idea of digital currency but have supported the blockchain technology.

Zuckerberg writes: “There are important counter-trends to this – like encryption and cryptocurrency – that take power from centralized systems and put it back into people’s hands. But they come with the risk of being harder to control. I’m interested to go deeper and study the positive and negative aspects of these technologies, and how best to use them in our services.

2018 would be an interesting year to see how Facebook other players take up the blockchain technology to improve their digital products and services.

Sath Vichet

Fork Confusion Propels Litecoin to 1-Month High Above $200

Fork Confusion Propels Litecoin to 1-Month High Above $200

Litecoin (LTC) is putting on a show today amid news a group of developers may seek to fork its blockchain, the fifth-largest by total value.

The cryptocurrency was last seen changing hands at $216, a one-month high, according to data service CoinMarketCap. Overall, LTC has appreciated by 33 percent in the last 24 hours, up over 100 percent from the Feb. 6 low of $106.94. Further, with the move, litecoin’s market capitalization has jumped above $10 billion for the first time since Jan. 29.

Still, the reasons for the move may give investors pause.

LTC appears to be edging higher due to news of an upcoming fork called “Litecoin Cash,” which is promising new tokens to existing holders at block 1,371,111. For every 1 LTC held at block 1,371,111, holders will receive 10 “LCC,” according to the official website.

However, there is a notable contingent that is warning about the new cryptocurrency.

Litecoin founder creator Charlie Lee and the litecoin community have dismissed the project, calling it a “scam” meant to confuse litecoin owners. Bitcoin similarly boomed on the release of a rival blockchain called bitcoin cash last year, though there were perhaps more stark differences between the two technologies, both propelled by competing ideologies.

Closer analysis shows the LTC price increase has been bolstered by strong volumes from Coinbase’s GDAX exchange, a sign less-savvy consumers may be active in the market.

However, questions about the fork aside, technical charts indicate the news may be enough to extend a rally in the flagging market.

Litecoin chart

The above chart (prices as per Coinbase) shows:
  • LTC has breached the falling trendline resistance on the back of a sharp rise in volumes. A high volume breakout indicates the rally is here to stay.
  • Short-term momentum studies indicate bullish setup: 5-day MA and 10-day MA are curled up in favor of the bulls.
  • The relative strength index (RSI) is above 50.00 (in the bullish territory) and on the rise, indicating scope for further gains in LTC.
  • Meanwhile, the 50-day MA is sloping downwards in favor of the bears.

View

  • A close today (as per UTC) above the trendline hurdle would signal a bearish-to-bullish trend change and allow for a stronger rally towards $300.
  • The RSI on the 1-hour and 4-hour chart shows overbought conditions, hence a minor pullback could be seen. That said, the dip would be short-lived as short-term momentum studies are biased bullish.
  • Only a daily close (as per UTC) below $142.26 (Feb. 11 low) would signal a bullish invalidation.

 

Sath Vichet

Bitcoin Regulation: South Korea’s Largest Bitcoin Exchanges Ready For Strict Regulations

South Korea’s largest Bitcoin and cryptocurrency exchanges Bithumb, Coinone, and Korbit are ready for the imposition of strict regulatory frameworks by the local government and financial authorities.

Bithumb ready to adopt new regulations

Yesterday, Dec. 13, the South Korean government revealed the details of the emergency cryptocurrency meeting it had held on Dec. 12. South Korean financial authorities stated that in the coming weeks underaged investors and foreigners will not be allowed to invest in Bitcoin and other cryptocurrencies in the market.

By next week the South Korean government is expected to roll out a few regulatory frameworks focused on investor protection and taxation. One of the policies currently being discussed is the possibility of equally distributing the daily trading volumes of cryptocurrency exchanges across the market and implementing stricter Know Your Customer (KYC) and Anti-Money Laundering(AML) policies.

Bithumb, South Korea’s largest cryptocurrency exchange with a larger daily trading volume than the country’s main stock exchange KOSDAQ, said that it welcomes regulations from the local government, as it would further legitimize, stabilize, and validate the South Korean cryptocurrency exchange market. Bithumb said:

”A good set of regulations will nurture the (virtual currency) market, and we would welcome that.”

For many years the South Korean government was hesitant towards regulating the local cryptocurrency market and industry, as it believed that any form of regulation would lead general consumers to consider it as an endorsement and validation of the space.

However, the South Korean government has admitted that the market has become far too big for it to dismiss and has revealed its plans to follow the regulations of other leading markets such as Japan and the US in the long-term. A spokesperson said of a cryptocurrency task force formed by the government:

“The South Korean government has no other choice but to follow the regulatory frameworks and trends established by other leading governments. While there certainly exists a negative reputation attached to cryptocurrencies, the government’s stance is to allow what has to be allowed, for the benefit of the South Korean market.”

Why are regulations in South Korea necessary?

The South Korean government and the country’s central bank are concerned over two main trends in the local market: underaged investors engaging in cryptocurrency trading and the emergence of multi-million dollar ponzi schemes.

Last week, Cointelegraph reported that everyone in the traditional finance sector in South Korea is rushing to invest in Bitcoin and other cryptocurrencies. Tens of thousands of middle to high school students and college students are said to be trading cryptocurrencies on a daily basis, frequently creating trades, orders and checking the price trend of the market during classes.

The South Korean government and its prime minister Lee Nak-Yeon expressed their concerns over such trends and ultimately enforced a ban on trading for underaged investors.

Another issue with the South Korean market is the growing size of ponzi schemes. Last month, a $200 mln cryptocurrency-related ponzi scheme was discovered; its operators coaxed investors with a hefty monthly return and stole the funds of the investors.

Due to the lack of regulations and policies in South Korea, the state of the local cryptocurrency market remains premature. The aim of the South Korean government is to lead potential investors into the strictly regulated cryptocurrency exchange market, rather than unregulated over-the-counter (OTC) markets which are prone and vulnerable to ponzi schemes.

Source Cointelegraph