‘People Have Panicked’ – BTC Price Rout Business as Usual for John McAfee

Bitcoin’s big names came together to reassure “panicked” investors November 20 after the BTC price today slid beyond recent lows to hit $4500.


Resistance Eyed At $4K

The continuing result of Bitcoin Cash’s instability after it hard forked last week, BTC/USD 00 hit its lowest in over a year, finding support only around $4480.

At press time, the pair was circling $4600, while analysts warned that although major barriers such as $4000 would not be broken “without a fight,” it was likely current levels were “not a bottom.”

“$4800 was not a bottom by any means – my arbitrary line in the sand was the wrong arbitrary line,” the Twitter account known as Crypto Dog laments Tuesday.

…Judging by volume, we are still quite far from a bottom. So far this sell off has been relatively weak (volume wise).

Altcoin markets had seen decidedly more determined sell-offs. Unsurprisingly, Bitcoin Cash 00 led the rout, losing almost half its value in just 24 hours as the consequences of two rival chains’ infighting suddenly showed.

Ethereum (ETH) 00, formerly the largest altcoin by market cap, also dipped to new lows, sparking fears it could soon lose its place in the top three assets as Stellar limits its losses.

Hastening ‘Capitulation’ To $3K

For John McAfee meanwhile, the latest bloodbath constituted nothing more than another “winter.”

“People have panicked. But there’s no fucking need. We’re in a bear market. They suck, yes, and not like a hooker with no teeth,” he urged.

bitcoin price bear market

“But I’m 73 and have seen this dozens of times in many markets. Bear markets are like Winter. It’s always followed by a glorious Spring.”

His optimism mirrored that of BTCC co-founder Bobby Lee, who on Monday called for a “capitulation” of short-term traders in order to produce a definitive BTC/USD low.

At current rates, the pair is around halfway to the ‘bottom’ as predicted multiple times by celebrated trading guru Tone Vays, who has forecast $3000 as a target to hit before markets reversed.

Bitcoinist reminds readers of the pledge McAfee made regarding a $1 million Bitcoin price by 2020 – or 772 days’ time.

What do you think about Bitcoin’s current price performance? Let us know in the comments below!


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OKEx Forces Early Settlement Of BCH Futures Contracts

Major cryptocurrency exchange, OKEx, faces a backlash from traders, after changing the terms on $135 million of Bitcoin Cash (BCH) futures contracts. The exchange says it forced early settlement of the contracts to protect investors from volatility following the Bitcoin Cash split.


A Little Notice…

Hong Kong-based OKEx, made the unusual decision to settle the Bitcoin Cash 00 futures contracts early, as prices were tanking. The exchange refrained from notifying clients prior to the move in order to reduce risk of market manipulation.

okex

Following the move, OKEx apologized for “the inconvenience it may cause,” but asserted that “an early settlement was the most fair and rational decision to maintain an orderly market.”

According to crypto-traders, no other exchange felt the need to take similar steps.

Well That Sucks

The move caught traders unaware, including one who lost $700,000 because of the sudden closing level on his hedging position didn’t reflect market rates. He and several other traders vowed to cut back or stop using the exchange entirely.

OKEx’s decision harmed not only its own credibility but also highlighted the risks of using an unregulated exchange. Many believe this lack of confidence in trading operations, is one thing which has kept institutional investors away from the market.

Previously, on OKEx

Just prior to the early contract termination, OKEx replaced one of its price sources. This caused a notable repricing of the contracts during live trading. And a day after the futures contracts settled, a technical malfunction hit the exchange. This left anxious traders unable to execute orders for two hours.

OKEx also caused controversy in August, when a huge bet from one user, left it unable to cover the shortfall. The exchange imposed these losses on its other clients, in line with its “socialized clawback” policy, but raised large question marks over its ability to manage risk in doing so.

What do you think of OKEx’s move? Share your thoughts below!


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Report: Censorship-Prone EOS ‘Needs to Re-Architect Its Infrastructure’

Report: Censorship-Prone EOS ‘Needs to Re-Architect Its Infrastructure’

Altcoins

EOS, the $4 billion blockchain project developed by Dan Larimer, has been savaged in an exhaustive new review. The 17,000-word report, based on extensive laboratory testing, concludes that EOS’s real-world throughput isn’t much better than Ethereum’s and that its consensus algorithm doesn’t function properly. “In order to succeed as a base layer protocol, EOS needs to re-architect its infrastructure,” is the damning verdict.

Also read: Cryptocurrency Memes: The Only Assets That Can Survive a Bear Market

EOS Faces Its Sternest Test Yet

Report: Censorship-Prone EOS ‘Needs to Re-Architect Its Infrastructure’The EOS team are accustomed to receiving criticism from haters and skeptics, but in Bitmex Research they’ve met their toughest critic yet. A sprawling report — authored by four experts with the assistance of Whiteblock Labs, which ran benchmarks using an EOS testnet — has delivered a string of indictments on the Delegated Proof of Stake (DPoS) blockchain. Every facet of the blockchain has been examined, tested and found to be wanting in several key areas. The report adds weight to the notion that in design, EOS more closely resembles a traditional cluster of servers such as Amazon Web Services than it does a decentralized blockchain, explaining:

EOS is fundamentally similar to a centralized cloud computing architecture without the fundamental components of a blockchain or peer-to-peer network. EOS block producers are highly centralized and users can only access the network using block producers as intermediaries. Block producers are a single point of failure for the entire system.

Things don’t get any better from there, as the comprehensive report details everything its authors found to be wrong with EOS. The blockchain’s DPoS consensus algorithm, based on a design Dan Larimer pioneered for previous projects Bitshares and Steemit, is meant to utilize Byzantine Fault Tolerance (BFT). But as the report chastens, “it is impossible for EOS to implement Byzantine Fault Tolerance. A true BFT system would not be susceptible to cartels forming in the system … BFT consensus is theoretically impossible in EOS and the network should not be characterized as having any form of BFT.”

Report: Censorship-Prone EOS ‘Needs to Re-Architect Its Infrastructure’The price of EOS dropped sharply when Bitmex Research published its report, then dropped again when the price of BTC fell to $5,300, dragging all crypto assets down with it.

Block Producers Are the Gods of EOS

Report: Censorship-Prone EOS ‘Needs to Re-Architect Its Infrastructure’Dan Larimer

A lot of the criticism leveled against EOS to date has revolved around the extraordinary power held by its 21 block producers tasked with confirming transactions — or even reversing them in some cases. They’re also able to blacklist accounts, excluding them from the network. The Bitmex Research report does nothing to dispel these notions, writing: “There is no proper protocol that is setup to prevent block producers from colluding to maintain their role as block producers. This further proves the high level of centralization that exists in the EOS network and the tremendous power these block producers possess.”

During testing, the authors also found at least one “severe vulnerability” due to the fact that block producers aren’t obliged to reveal the code they’re running, which serves to reinforce the belief that “the overall network does not have a viable consensus algorithm as the underlying infrastructure of the network is not configured as a blockchain, rather a network of non transparent data centers.”

No Faster Than Ethereum

Report: Censorship-Prone EOS ‘Needs to Re-Architect Its Infrastructure’EOS: Ethereum killer or smoke and mirrors?

In addition to having its consensus algorithm and cartel-like hierarchy critiqued, one of EOS’s greatest claims — to be faster than other blockchains — is also shot down. “During tests with real world conditions … performance dropped below 50 TPS putting the system in close proximity to the performance that exists in Ethereum,” noted the report. It also asserted that “it is clear that the EOS network is censorable,” before summarizing that “for EOS to be able to successfully act as a foundational base layer protocol, it needs to re-architect a significant portion of its infrastructure.”

To date, no Proof-of-Stake blockchain has come close to offering the level of security provided by Proof-of-Work chains such as Bitcoin. Short of a complete redesign, EOS looks unlikely to buck that trend. The report’s authors believe they may have found one use case for Dan Larimer’s project however: “EOS can potentially act as a side chain appended to other more foundationally secure networks, though the system would need to be rebuilt.”

What are your thoughts on Bitmex Research’s EOS report? Let us know in the comments section below.


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