Would Bitcoin suffer if the lead maintainers were kidnapped by aliens?
Published
4 Monaten ago
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It is a question that many in the crypto community must have asked themselves at least once. The news of Wladimir van der Laan taking a temporary hiatus, prompted us to explore what some might consider to be an improbable, yet highly impactful situation.
A Bitcoin Core developer that is also a maintainer of the project’s GitHub account (i.e., someone who can “merge code into the master branch”) is a rare commodity. To put this in perspective, if a Bitcoin Core developer is a black belt, then someone like van der Laan is a third-degree black belt.
To set the record straight we interviewed the well-known sensei and master of the Blockstream dojo, Adam Back. He said that neither Laan’s departure, nor the disappearance of all the maintainers in the event of a potential catastrophe, would present a challenge to Bitcoin (BTC):
“It’s no problem either way technically because even if all maintainers had a plane crash or very unlucky IT failure. A new Github can be created.”
Back also opined that most in the crypto community do not truly understand the role of Core developers in the ecosystem and tend to overestimate their importance. In his view, the changes that Bitcoin Core developers can introduce are bound by being backward compatible and should not change the key properties of the protocol like finality, censorship resistance, or rate of inflation. He also noted that changes should preserve or improve privacy. Back believes if the developers tried to introduce ideals outside of this paradigm, they would be rejected by the ecosystem:
“So I do not think a given implementation of bitcoin’s developers can change things outside of that area, as the economic ecosystem would reject it, use a different implementation.”
Back is also against any sort of on-chain governance as he believes that this would lead to the “centralized lobbying groups” taking control of Bitcoin, noting that this is a problem inherent to proof-of-stake protocols. We parried that with the current system, some believe that organizations like Back’s Blockstream, Lightning Labs, Chaincode Labs and others that support Bitcoin Core developers, have a disproportional amount of influence in the ecosystem. Back replied that Blockstream purposefully does not take a position on Bitcoin proposals. At the same time, Core developers under the company’s employ can quit Blockstream if they believe they are being pressured to do something bad for Bitcoin and the company would have to pay their salary for another year.
We asked the Hashcash inventor why, if the decision-making process within the Bitcoin ecosystem is so harmonious, do debates sometimes become so heated? It is well known that some have even lead to schisms, like in the case of the block size debate. In his view, this happened because some participants were trying to force their way to a change:
“I consider that to largely be because some companies and mining pools tried to forcibly change the change process to benefit their businesses financially.”
Dormant Bitcoin on the move as price volatility rises
Published
51 Minuten ago
on
Dezember 29, 2020
By
In a period filled with holidays, the cryptocurrency industry refused to take a day off. Strong market performances from Bitcoin (BTC) and some other high profile alt-coins like Ether (ETH,) was offset by the legal action against Ripple by the United States Securities and Exchange Commission. In response, a number of prominent trading platforms, including Coinbase, Crypto.com, and FalconX responded by halting trading or deposits of the XRP token.
The latest findings by Santiment, published in Cointelegraph Consulting’s biweekly newsletter, indicate that the balance of wallets holding dormant BTC over a 365-day period has become more active. Between December 13 and 20, more than 146,620 BTC (~$3.9 billion at the time of writing) that fit this description moved on the blockchain, marking its highest weekly volume since July 2019.
These long-term investors tend to trade based on extensive analysis or intimate market knowledge, which is why intense spikes in dormant Bitcoin tend to be more indicative of larger shifts in market conditions and interim price volatility.
Still, with Coinbase’s high-profile IPO right around the corner, and institutional buying is high, so it’s not unreasonable to expect conditions to remain positive going into 2021. Many investors were considering the possibility of a “Christmas Dump” as $2.3 billion in Bitcoin options contracts were set to expire, the largest ever in a single day. With that event in the rear-view mirror, many investors are now optimistic that the momentum of 2020 will continue into the new year.
Read the full newsletter edition here for more news and signals, complete with detailed charts and images.
Cointelegraph’s Market Insights Newsletter shares our knowledge on the fundamentals that move the digital asset market. With market intelligence from one of the industry’s leading analytics providers,Santiment, the newsletter dives into the latest data on social media sentiment, on-chain metrics, and derivatives.
We also review the industry’s most important news, including mergers and acquisitions, changes in the regulatory landscape, and enterprise blockchain integrations. Sign up now to be the first to receive these insights. All past editions of Market Insights are also available on Cointelegraph.com.
If History Rhymes, This Indicator Suggests Bitcoin May See a Parabolic Explosion
Published
1 Stunde ago
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Dezember 29, 2020
By
Bitcoin has seen some mixed price action as of late, with bulls being unable to take control of its trend in the time following its rally up to $28,500
The rejection here was quite intense, and it has yet to show any signs of strength in the time following this occurrence
The fact that bulls have guarded against any deeper drawback is positive because it invalidates the possibility that this recent high is a blow-off top
One trader is now noting that there is an incredibly bullish indicator that is flashing for Bitcoin
He points to the cryptocurrency’s monthly RSI, noting that a monthly close above a specific level that it is nearing is historically followed by parabolic moves higher
In the past, these movements have had an average return of 1,010%, but their size and length seem to diminish with time
Bitcoin and the entire crypto market have declined over the past 12 hours, which appears to be the direct result of the pressure that XRP is placing on the market due to its latest selloff.
Where the market trends in the mid-term likely won’t depend on XRP, which means that this latest round of selling pressure may mark a knee-jerk reaction from investors.
One analyst is noting that Bitcoin’s monthly RSI is flashing an incredibly bullish sign for where BTC trends next.
Bitcoin Struggles to Gain Momentum Following $28,500 Rejection
At the time of writing, Bitcoin is trading down just over 1% at its current price of $26,700.
The crypto has been trading between the upper-$26,000 region and the lower-$27,000 region throughout the past few days.
It has yet to garner enough buy-side support to break above the heavy resistance laced throughout the lower-$28,000 region. For now, this peak could mark a blow-off top.
Indicator Suggests BTC is About to Go Parabolic
One trader explained in a recent tweet that Bitcoin could be on the cusp of seeing a parabolic move higher in the days and weeks ahead.
He points to the cryptocurrency’s monthly RSI as an indicator for this possibility.
“BTC – Monthly RSI. Monthly candle is about to close above 80. When this happens, bullish trend continues, with an avg. return of 1010.87%. Each cycle is shorter.”
Image Courtesy of il Capo of Crypto. Source: BTCUSD on TradingView.
The coming few days should shed light on Bitcoin’s trend, as continued weakness could confirm $28,500 as a local high and lead to a deeper retrace.
Featured image from Unsplash.
Charts from TradingView.
‘Bullish year ahead’ — Bitcoin primed for Q1 2021 gains, strength index suggests
Published
2 Stunden ago
on
Dezember 29, 2020
By
The monthly relative strength index (RSI) of Bitcoin (BTC) shows the dominant cryptocurrency is primed for another rally.
Is 2021 an ideal time for a Bitcoin rally?
The RSI is a momentum indicator that measures whether an asset is overbought or oversold. When the RSI surpasses 75, it signals the asset is overbought, and when it drops below 30, it means the asset is oversold.
A pseudonymous trader known as “Crypto Capo” noted that the monthly RSI of Bitcoin is set to close above 80. Historically, when this has happened, BTC has saw a strong rally afterward.
Although the monthly RSI of Bitcoin is above 80, which is technically oversold, BTC’s RSI tends to become oversold for prolonged periods during a bull cycle.
The monthly RSI of Bitcoin. Source: Crypto Capo
Hence, traders often refer to an oversold RSI on a high time frame chart, like the monthly candle chart, to forecast an extended rally in the short term to medium term. The trader said:
“Monthly candle is about to close above 80. When this happens, bullish trend continues, with an avg. return of 1010.87%. Each cycle is shorter.”
However, the trader emphasized that one indicator cannot accurately predict the price cycle of Bitcoin. Crypto Capo explained that the combination of a few indicators could serve as guidance for the future. He wrote:
“You cannot base a prediction on an indicator. What we do is combining several methods to have a guideline for the future, to see what is more likely. But in the end, we adapt to what the price does in the present.”
“Bullish year ahead”
Traders have differing perspectives on where Bitcoin is headed in 2021, but most traders remain overwhelmingly bullish.
Cointelegraph Markets analyst Michael van de Poppe said he anticipates Bitcoin to reach $65,000 to $85,000 by next year’s end. He stated:
“I’ve got to revise my view on the potential level of $BTC at the end of 2021. Through this recent surge, I’m expecting it to be between $65,000-85,000 at the end of 2021. Bullish year ahead.”
Meanwhile, the options market is pricing in a 22% chance of Bitcoin achieving $120,000 by next year, which could also serve as a potential guideline on where BTC is heading in 2021.
In the short-term, however, some traders are cautious in entering leveraged positions. A pseudonymous trader known as “TheBoot” said the ideal scenario is to wait for Bitcoin to consolidate at $25,000 or enter after the next price upsurge. The trader explained:
“No rush to enter leveraged trades on $btc right here imo. Best would be to wait and long low 25k or even mid 24k. Alternatively, wait for the next leg up and then a dip from there.”
Cointelegraph previously reported that whales have been buying Bitcoin more aggressively since Christmas, which could buoy the mid-term bull case for BTC entering into 2021.