Bitcoin is down to $9,300, but news from India might not be as bad as it seems

Your ads will be inserted here by

Easy Plugin for AdSense.

Please go to the plugin admin page to
Paste your ad code OR
Suppress this ad slot.

Image: slavkoSereda/gettyimages

After several short-lived drops under $10,000, it looks like the price of Bitcoin finally yielded under pressure. The largest cryptocurrency by market cap is currently trading at $8,947, down 11 percent in the last 24 hours according to CoinMarketCap

The trigger for the price drop is likely the news from India, where finance minister Arun Jaitley expressed a largely negative view towards cryptocurrencies in his 2018 budget speech. 

“The Government does not consider cryptocurrencies legal tender or coin and will take all measures to eliminate use of these crypto-assets in financing illegitimate activities or as part of the payment system,” Jaitley said according to Fortune

The price of Bitcoin fell significantly from its December heights of around $20,000.

Image: coinmarketcap

Several outlets, including Fortune and Quartz, interpreted this as a country-wide ban on Bitcoin and other cryptocurrencies. However, that’s impossible to deduct from this single quote, which merely states that the government is against two things: crypto-assets financing illegal activities, and crypto assets being used as part of the payment system. 

Your ads will be inserted here by

Easy Plugin for AdSense.

Please go to the plugin admin page to
Paste your ad code OR
Suppress this ad slot.

In other words, Bitcoin won’t soon become legal tender in India, but there’s nothing here about an outright ban. 

In fact, according to several outlets, Jaitley actually uttered a couple of positive words about cryptocurrencies in that same speech. According to Hindustan Times, he said the government “will explore the use of blockchain,” and Unocoin, a crypto exchange based in India, has an expanded version of that quote, in which Jaitley says the government will look into blockchain tech “proactively for ushering in digital economy.” 

The South Korean government recently introduced more stringent cryptocurrency trading rules, but stopped short of any sort of cryptocurrency ban. Like most governments, the Indian government does not appear to be happy with illegal use of cryptocurrencies, but we’ll have to wait for an official policy to draw any finial conclusions.  

Nevertheless, the markets reacted strongly. Top ten cryptocurrencies by market cap have all dropped double digits in the last 24 hours, with one notable exception: Ethereum. The cryptocurrency that’s also a platform for decentralized apps is currently trading at $1,133 and is actually up by 1.78 percent in the last 24 hours. 

Disclosure: The author of this text owns, or has recently owned, a number of cryptocurrencies, including BTC and ETH. 

Read more:

Lloyds Bank bans Bitcoin purchases

Your ads will be inserted here by

Easy Plugin for AdSense.

Please go to the plugin admin page to
Paste your ad code OR
Suppress this ad slot.

Image copyright Getty Images

Lloyds Banking Group has banned its customers from buying Bitcoin and other crypto-currencies on their credit cards.

The ban, starting on Monday, applies to Lloyds Bank, Bank of Scotland, Halifax and MBNA customers.

It will not apply to debit cards, only to the banking group’s eight million credit card customers.

The move follows a sharp fall in the value of digital currencies, prompting fears about people running up debts.

Lloyds is concerned it could end up footing the bill for unpaid debts should the price continue to fall.

Explaining the ban, a Lloyds spokeswoman said: “We continually review our products and procedures and this is part of that.”

Bitcoin ended last week down 30% at $8,291.87 – its worst week since April 2013 and far below the $19,000 it reached last November.

However, the cryptocurrency is still ahead of the $1,000 it was trading at this time last year.

Police have warned that digital currencies remain popular among criminals as they can use them to evade traditional money laundering checks and other regulations.

Prime Minister Theresa May recently said that action against digital currencies may be required “precisely because of the way they are used, particularly by criminals”.

She told Bloomberg: “In areas like cryptocurrencies, like Bitcoin, we should be looking at these very seriously.”

The Treasury said that it intends to update regulation to bring virtual currency platforms into anti-money laundering and counter-terrorist financing regulation.

Facebook recently announced it would block any advertising that promotes cryptocurrency products and services.

Related Topics

Read more:

Bitcoin Ban Expands Across Credit Cards as Big U.S. Banks Recoil

A growing number of big U.S. credit-card issuers are deciding they don’t want to finance a falling knife.

JPMorgan Chase & Co., Bank of America Corp. and Citigroup Inc. said they’re halting purchases of Bitcoin and other cryptocurrencies on their credit cards. JPMorgan, enacting the ban Saturday, doesn’t want the credit risk associated with the transactions, company spokeswoman Mary Jane Rogers said.

Bank of America started declining credit card transactions with known crypto exchanges on Friday. The policy applies to all personal and business credit cards, according to a memo. It doesn’t affect debit cards, said company spokeswoman Betty Riess.

And late Friday, Citigroup said it too will halt purchases of cryptocurrencies on its credit cards. “We will continue to review our policy as this market evolves,” company spokeswoman Jennifer Bombardier said.

For more on cryptocurrencies, check out the podcast:

Allowing purchases of cryptocurrencies can create big headaches for lenders, which can be left on the hook if a borrower bets wrong and can’t repay. There’s also the risk that thieves will abuse cards that were purloined or based on stolen identities, turning them into crypto hoards. Banks also are required by regulators to monitor customer transactions for signs of money laundering — which isn’t as easy once dollars are converted into digital coins.

Bitcoin has lost more than half its value since Dec. 18, falling below $8,000 on Friday for the first time since November. The drop occurred amid escalating regulatory threats around the world, fear of price manipulation and Facebook Inc.’s ban on ads for cryptocurrencies and initial coin offerings.

Now, cutting off card purchases could exacerbate those pressures by making it more difficult for enthusiasts to buy into the market. Capital One Financial Corp. and Discover Financial Services previously said they aren’t supporting the transactions.

Mastercard Inc. said this week that cross-border volumes on its network — a measure of customer spending abroad — have risen 22 percent this year, fueled partly by clients using their cards to buy digital currencies. The firm warned that the trend already was beginning to slow as cryptocurrency prices fell.

Discover Chief Executive Officer David Nelms was dismissive of financing cryptocurrency transactions during an interview last month, noting that could change depending on customer demand. For now, “it’s crooks that are trying to get money out of China or wherever,” he said of those trying to use the currencies.

    Read more:

    Get educated and avoid common mistakes in Bitcoin investment

    Although it seems like Bitcoin’s value is on an unrelenting rollercoaster, it’s still the best time to get in on the currency of the future. And this Bitcoin and Cryptocurrency Mastery Bundle will educate you on everything you should know before investing.

    Just in case you’ve been underground for the past few years, cryptocurrency is digital cash that banks or the government can’t touch. At the top of the crypto pack, despite its rises and falls, is Bitcoin (according to CoinMarketCap). If you want to get ahead of this revolution and start trading your own Bitcoin, you need to know what you’re doing. Because trust me, it’s easy to make mistakes.

    The Bitcoin and Cryptocurrency Mastery Bundle features six courses covering the ins and outs of joining the Bitcoin revolution. Here’s what you’ll learn:

    1) How Bitcoin works as a global currency

    You’ll kick off your training by getting your first taste of Bitcoin. By the end, you’ll have a full theoretical and practical understanding of this cryptocurrency and even get .0001 BTC in your wallet just for taking the course.

    2) How businesses can adopt Bitcoin

    In this course, you’ll gain an understanding of what role Bitcoin plays in business and how you can implement it within your own.

    3) How to invest in cryptocurrency

    This course will cover how to buy crypto, how to secure it, and how to protect yourself from online attacks. You’ll walk away with the beginnings of your very own crypto collection.

    4) The ins and outs of Initial Coin Offerings

    What is an Initial Coin Offering? What are the advantages of them? How do you purchase an ICO? These are the questions that will be answered in this course.

    5) How to trade your cryptocurrency

    In this course, you’ll learn by doing. You’ll witness live crypto trades and even open your own trades confidently by the end.

    6) How to become a certified Bitcoin professional

    Finally, you’ll take all the information you’ve learned and use it to enhance your professional standing in the Bitcoin world. This course will prepare you to pass the Bitcoin Professional exam, which can give you a leg up in your career.

    Join the revolution. Get The Bitcoin and Cryptocurrency Mastery Bundle for $29 from the Daily Dot store — that’s 70% off the original price of $99.95.

    Buy it here


     The Daily Dot may receive a payment in connection with purchases of products or services featured in this article. Click here to learn more.

    Read more:

    Bitcoin… Buy Bitcoin… It Was A Great Idea To..

    Read more:

    The WIRED Guide to Bitcoin

    Bitcoin is a digital currency. Like other currencies, you can use it to buy things from merchants that accept it, such as, or, as is more often the case, hold on to it in hopes that it will increase in value. Unlike traditional currencies, which rely on governments and central banks, no single entity controls bitcoin. Rather, it is supervised by a worldwide network of volunteers who maintain computers running specialized software. As long as people run bitcoin software, the currency will keep working, because everything needed to keep it working is stored in a distributed ledger called the blockchain. And even though it's all digital, bitcoin is scarce.

    Its most wild-eyed proponents believe bitcoin's decentralized, cryptographic approach to currency can yield a host of benefits: limiting central bankers’ ability to damage economies by printing too much money; eliminating credit-card fraud; bringing the unbanked masses into the modern economy; giving people in unstable economies a safe place to park their money; and making it cheap and easy to transfer funds. But bitcoin has yet to realize these goals, and critics argue it may never live up to the hype.

    When you send or receive bitcoin, your bitcoin software, referred to as a “wallet,” records the transaction in the blockchain. The blockchain is maintained by, and distributed across, the roughly 200,000 computers running bitcoin software. If someone tries to alter the ledger to make it look like they have more bitcoin than they’re supposed to, the tampering will be apparent because it won't match the other copies of the blockchain.

    People who commit the computing resources to processing bitcoin transactions are paid in bitcoin, but only if the computers they operate are first to complete complex cryptographic puzzles in a process called "mining.” New bitcoins are created automatically by the software and awarded to the winners of the race to solve these puzzles. As of February 2018, that award is 12.5 bitcoins. By design, only 21 million bitcoins will ever be created. Those who process transactions can also collect fees; the fees are optional and set by the person who initiates a transaction. The larger the fee, the faster the transaction will likely be completed. This system keeps bitcoin scarce while rewarding people for investing in the infrastructure required to keep a global payment-processing system running. But the mining process comes with a big catch: It uses an enormous amount of electricity.

    Adoption of the cryptocurrency has been hobbled by a series of scandals, high-tech heists, and disputes over the software's design, all of which illustrate why financial regulations were created in the first place. The bitcoin community has solved some mind-boggling technological problems. But making bitcoin a true replacement for, or even adjunct to, the global financial system requires more than just great tech.

    The History of Bitcoin

    On Halloween 2008, someone using the name Satoshi Nakamoto sent an email to a crytography mailing list with a link to an academic paper about peer-to-peer currency. It didn't make much of a splash. Nakamoto was unknown in cryptography circles, and other cryptographers had proposed similar schemes before. Two months later, however, Nakamoto announced the first release of bitcoin software, proving it was more than just an idea. Anyone could download the software and start using it. And people did.

    In the early days, bitcoin was used almost exclusively by cryptography geeks. A bitcoin sold for less than a penny. But the idea slowly caught on. Bitcoin emerged in the aftermath of the 2008 financial crisis when some people—especially free-market libertarians—worried the Federal Reserve's attempts to increase the money supply would lead to runaway inflation.

    Nakamoto disappeared from the internet before bitcoin attracted much mainstream attention. He handed control of the project to an early contributor named Gavin Andresen in December 2010 and quit posting to the public bitcoin forum. To this day, Nakamoto’s identity remains a mystery.

    No one knows who the creator of bitcoin really is. These are a few of the suspects.

    The value of a bitcoin first hit $1 shortly after this transition, in February 2011. Then the price jumped to $29.60 in June 2011 after a Gawker story about the now-defunct black-market site Silk Road, where users could use bitcoin to pay for illegal drugs. But the price fell again after Mt. Gox, the most popular site at the time for buying bitcoin with traditional currency and storing them online, was hacked and temporarily went offline.

    The price fluctuated over the next few years, soaring after a financial crisis in Cyprus in 2013, and sinking after Mt. Gox went bankrupt in 2014. But the overall trajectory was up. By January 2017, bitcoin was trading at nearly $1,000. The price soared in 2017, reaching an all-time high of nearly $20,000 in December. The reasons for this rally are unclear, but it seems to have been driven by a mixture of wild speculation and regulatory changes (the US approved trading bitcoin futures on major exchanges in December).

    Bitcoin’s price surged despite discord among its adherents over the currency's future. Many prominent members of the bitcoin community, including Andresen, who handed control of the software to Dutch coder Wladimir van der Laan in 2014, believe bitcoin transactions are too slow and too expensive. Although transaction fees are optional, failing to include a high enough fee could mean your transaction won’t be processed for hours or days. In December 2017, transaction fees averaged $20 to $30, according to the site BitInfoCharts. That makes bitcoin impractical for many daily transactions, such as buying lunch.

    Developers have proposed technical solutions for this problem. But the plan favored by Andresen and company would require bitcoin users to switch to a new version of the software, and so far miners have been reluctant to do so. That's led to the creation of several alternate versions of the bitcoin software, known as "hard forks," each competing to lure both miners and users away from official version. Some, like Bitcoin Cash, have attracted miners and investors, but none is close to displacing the original. Meanwhile, many other "cryptocurrencies" have emerged, borrowing heavily from the core ideas behind bitcoin but with many differences (see The WIRED Guide to Blockchain).

    What's Next for Bitcoin

    The future of bitcoin depends on three major questions. First, whether any of the hard forks or the hundreds of competing cryptocurrencies will supplant it, and, if so, when. Second, whether the sky-high valuations can last. And third, whether bitcoins will ever be used as currency for day-to-day transactions. The answer to the third question hinges in large part on the first two.

    One thing holding bitcoin back as a currency is the expense and time lag involved in processing transactions. Emin Gun Sirer, a professor and cryptography researcher at Cornell University, estimates that the bitcoin network typically processes a little more than three transactions per second. By comparison, the Visa credit-card network processes around 3,674 transactions per second. Worse, bitcoin transaction confirmations can take hours or even days.

    The First Real-World Bitcoin Transaction

    There were few places to spend bitcoin during its early years, before the black markets that made the currency famous emerged. The first time someone actually used bitcoin to buy something is widely considered to have been May 22, 2010. Programmer Laszlo Hanyecz paid 10,000 bitcoin (worth around $41 at the time) to have two pizzas delivered to his house. Those 10,000 bitcoin are worth millions now. “I don’t feel bad about it,” Hanyecz told WIRED in 2011, when the coins would have sold for $272,329. “The pizza was really good.”

    In addition to the hard forks of bitcoin, there are now countless alternative cryptocurrencies, sometimes called “alt-coins,” that aim to solve some of bitcoin’s shortcomings. Litecoin, for example, is designed to process transactions more quickly than bitcoin, while Monero focuses on creating a more private alternative. None trade for as much as bitcoin, but several sell for hundreds of dollars.

    If one of the bitcoin variants or alternatives can solve its main problems, and win over users and miners, that currency would become much more suitable for day-to-day use. It's also possible that the developers behind the official version of bitcoin will find a way to make the network cheaper and faster while maintaining compatibility with old versions of the software. The maintainers of the original bitcoin software platform are working on a solution called the “Lightning Network” that would shift many transactions to “private channels,” to boost speed and reduce costs.

    And then there's the environmental impact. Critics argue that mining bitcoin is an enormous waste of electricity because they don't have any intrinsic value.

    Even if the technical issues of cost and performance are solved, there's still the question of volatility. Businesses and consumers can exchange dollars for goods and services with the confidence that those dollars will be worth the same amount in three weeks when the rent is due. But bitcoin has proven far more volatile than most other assets, according to a study conducted by the bitcoin wallet company Coinbase. For example, On November 29, bitcoin surged from just under $10,000 to well over $11,000 before sinking back to about where it started the day.

    The founders of Coinbase have argued that derivative markets could help users cope with the volatility by allowing participants to essentially buy insurance that pays out if the price of bitcoin drops. That might not reduce the volatility, but it might reduce the risk of accepting bitcoin as payment. In 2017, US regulators cleared the Chicago Mercantile Exchange and the Chicago Board Options Futures Exchange, the world’s largest derivatives exchanges, to offer bitcoin futures. But it's too early to tell if it will make bitcoin more acceptable to retailers.

    Bitcoin has come an enormous way since its origins as a paper by a pseudonymous author. But it still has a long way to go to fulfill its creator’s dream.

    Learn More

    This guide was last updated on January 31, 2018.

    Enjoyed this deep dive? Check out more WIRED Guides.

    Read more:

    Homeowners now accepting bitcoin in latest cryptocurrency trend

    Bitcoin for homes.
    Image: bob al-greene/mashable

    The bitcoin craze has officially jumped to real estate. 

    Despite the risky, volatile nature of cryptocurrency, homes and property across the U.S., Australia, Canada, and beyond are for sale for the unpredictable coin. Even after one bitcoin dropped from $14,000 to $11,000 in value in a matter of days, homeowners are still putting up their homes for some of that flashy money.

    It’s not just a few listings here and there. According to Bitcoin Real Estate,  a site that has been tracking the business for several years, the trend is growing more and more and not slowing down.

    At the end of 2017 a Miami condo reportedly sold for 17.7 bitcoin and actual cryptocurrency was exchanged between the buyer and seller. Not just bitcoin converted into cash, which is the more popular way to use the coin.

    Trulia spokeswoman Andrea McDonald found 80 listings on the site that reference cryptocurrency in some way. Many just note “bitcoin accepted,” but others really get into it.

    A property near Joshua Tree National Park in Southern California makes that case for paying with cryptocurrency, insisting that the property “can be a nice investment for future at a very reasonable $5,250 per acre for a total of $2.1 million or 124 bitcoins.”

    Another home in West Palm Beach, Florida, is open to buyers with bitcoin and ethereum and litecoin, but with the caveat that cryptocurrencies are constantly changing. “Owner financing possible $149,900 USD, 13 bitcoin 375 ethereum, 950 litecoin (crypto price subject to change. Inquire crypto price at time of interest),” the listing says.

    So far Trulia hasn’t officially seen a sale go down with the coin, McDonald said, but it’s probably just a matter of time.

    Redfin, another online real estate database, has also seen a crypto trend in its listings, especially in hubs like the Bay Area and Miami. The number of listings that accepted cryptocurrency jumped from 75 in December to 134 in mid-January. Some of those 134 listings have sold, but as a Redfin spokesman explained it’s unclear if cryptocurrency was used for all or a portion of the sale price.

    Some of the listings are trying so hard to initiate a cryptosale. A Florida home used all caps and asterisks to lure in investors, screaming, “**BITCOIN SALE PREFERRED! Unique opportunity to be one of the first transactions using Bitcoin.**”. Another listing for a property in Washington state, meanwhile, was generous with exclamation points: “Seller willing to accept BITCOIN!!! The new rate of cryptocurrency that [sic] taking the world by storm!” 

    Aaron Drucker, a Redfin agent in Miami, said in a phone call that including cryptocurrency in a listing gives a property more exposure. He’s also noticed that bitcoin listings tend to be luxury condos. “Earlier investors in bitcoin have made a lot of money,” he said. “They may want to convert some of that into a tangible asset.”

    “I wouldn’t recommend this for first-time home buyers.”

    But bitcoin sales aren’t for everyone. “I wouldn’t recommend this for first-time home buyers,” he added. “But if you want to buy a second home, this might be something to consider.” No matter how you look it at, Drucker said, it’s “definitely risky.”

    Others are using bitcoin and other coins for their lucrative value. A Redfin agent in San Diego helped a buyer cash out two bitcoin valued then at nearly $7,500 each to cover closing costs for a home in Carlsbad, California. 

    Carina Isentaeva, a Redfin agent in San Francisco, is in the center of the crypto-mania. In a call she said it’s all about “crypto homes” now. She had a deal that fell through because the buyer’s ICO flopped. But more surprising to Isentaeva was that the seller was willing to work with a cryptocurrency contingent sale. “You couldn’t imagine this a few years ago,” she said. “Everyone would want to see a bank statement,” not ICO filing paperwork.

    Another big issue holding up more sales with actual cryptocurrency is regulation. Just finding an escrow service that will handle a crypto sale instead of traditional cash is difficult. As Isentaeva noted, the technology is moving much faster than government and laws. So the workaround is to convert bitcoin into cash and then buy property. But eventually the tech should catch up and the transaction will be more streamlined — at least that’s what Isentaeva hopes.

    But no matter the difficulties, the crypto listings keep coming. Welcome to the neighborhood, bitcoiners.

    Read more:

    Bitcoin Whipsaws Investors as Bubble Shows Signs of Bursting

    Bitcoin whipsawed investors, falling below $8,000 for the first time since November before recovering most of Friday’s losses, as a miserable 2018 continued for cryptocurrencies.

    Since reaching a record high of $19,511 on Dec. 18 shortly after the introduction of regulated futures contracts in the U.S., Bitcoin has wiped out more than half its value amid waves of negative news. Setbacks included escalating regulatory threats from authorities around the world including India, South Korea, China and the U.S., a record $500 million heist at Japanese exchange Coincheck Inc., fears of price manipulation and Facebook’s ban on cryptocurrency ads.

    PMorgan Chase & Co. and Bank of America Corp., the nation’s two largest banks, said Friday they’re halting purchases of Bitcoin and other cryptocurrencies on their credit cards. Japanese authorities raided Coincheck’s offices Friday morning, a week after the robbery, hauling out documents and computers as evidence. The inspection was conducted to ensure security for users, Finance Minister Taro Aso said.

    “Bitcoin is in trouble,” Lukman Otunuga, a research analyst at foreign exchange broker Forextime Ltd, wrote in a note Friday. “Price action suggests that bears are clearly in control, with further losses on the cards as jitters over regulation erode investor appetite further.”

    The largest digital currency dropped as much as 16 percent to $7,643, before trading at $8,646 at 4:47 p.m. in New York, according to consolidated Bloomberg pricing. Bitcoin tumbled 21 percent during the week, the biggest five-day decline since Jan. 16. Rival coins Ripple, Ether and Litecoin tumbled at least 28 percent as losses continued to spread across cryptocurrencies.

    Nouriel Roubini of Roubini Macro Associates said Bitcoin is the “mother of all bubbles,” and its bubble is now bursting, speaking in an interview on Bloomberg Television. He said “virtually every” Group of 20 country is talking about cracking down on the phenomenon as policymaker worries grow.

    For more on cryptocurrencies, check out the podcast:

    Related news and information:
    Bitcoin’s Huge Arbitrage Play Just Vanished as Korea Bubble Pops
    Roubini Says Bitcoin Is the ‘Biggest Bubble in Human History’

    To see Bloomberg’s cryptocurrency monitor, type VCCY

      Read more:

      Meet CoinDaddy, the Bitcoin rapper living that ‘crypto life’

      Arya Bahmanyar, 28, searched for “cheap Halloween costumes,” purchased an awful pimp getup, and his transformation into CoinDaddy was complete.

      “I wore it and we started making songs,” the rapper tells the Daily Dot. “I literally have 40 songs.”

      His anthems about blockchain technology and Bitcoin are self-aware, ridiculous, and actually kind of good despite the transparently borrowed ‘90s hip-hop ideas. He says he’s about that “crypto life,” and in some ways, his own rise to internet fame mirrors the ascent of cryptocurrencies: He used an old 13-inch MacBook Pro with Ableton Live to mine his career.

      CoinDaddy makes all of his beats, writes the lyrics, and sings into a $20 microphone he bought from Amazon. Songs like “Blood vs. Crypto” are viral hits, and he dispenses them via Twitter, YouTube, and Patreon accounts. He describes his music as “Eminem meets Weird Al Yankovic,” something for everyone. 

      “If you don’t like the rapping, you’ll like the character,” CoinDaddy says. “If you don’t like the character, you’ll like the funny videos.”

      The outlandishness of CoinDaddy stands in stark contrast to the decentralized nature of Bitcoin and anonymity of its creator and some of its biggest benefactors. That’s helped turn him into something of a poster child for the cryptocurrency scene. A New York Times trend feature this month shined a light on CoinDaddy among the quirky revolutionary types getting rich on internet money, organizing in Slack chatrooms, and disrupting global markets with digital money.

      CoinDaddy says he became a millionaire because he invested in Bitcoin in 2013 and then rode the bubble from there. Today, he’s a trader who spends most of his free time working on CoinDaddy. Mark Wahlberg’s production team and MTV have reached out about reality TV, he says.

      CoinDaddy is, as he puts it, more of “an entertainer figure that came out of this random, bizarre subculture that nobody had really heard about until the Bitcoin price started going crazy.”

      This week the price of a Bitcoin is more than $11,400. Like the hook in his best song goes, CoinDaddy is indeed “the player who got the blockchain tight.”

      CoinDaddy says his parents are happy for his success, though they don’t really understand how he created value out of thin air.

      “The internet is almost like this new shared continent that we all live on together, and this continent happened to create its own interesting form of money and then Wall Street and speculators came in,” he says.

      CoinDaddy grew up in the Bay Area and studied international business at George Washington University. After college, he worked in real estate and moved to New York City, which is where a random Bitcoin meetup piqued his interest.

      “I couldn’t believe that a bunch of nerds were literally trying to create their own money,” he adds.

      He likes to riff on the notion that the cryptocurrency scene is populated primarily with awkward, Reddit-commenting introverts, but he’s serious about the technology’s potential—and about being front and center, versus some of the reclusive, libertarian tech bros he runs with.

      “They’re trying to hide their money and I’m not trying to hide my money, I pay my taxes,” CoinDaddy says. “I think that living in fear is not a proper way of living life and it’s a self-defense mechanism because they just came into money.”

      CoinDaddy loves the inclusive possibilities of the Bitcoin utopia. He says it’s hindered by speculative greed that keeps people out of the game with high transaction fees, but he adds that the upcoming lightning network will be a great equalizer. He doesn’t worry about Chinese and South Korean sanctions on the technology, either, comparing cryptocurrency to decentralized services like Napster and BitTorrent.

      “It’s like a hydra, there’s nothing they can even do,” CoinDaddy says, defiantly. “We’re believers in the coin and we’re holding.”

      For now, CoinDaddy will continue to be the bombastic hype man of the crypto scene. He’s planning shows in San Francisco, Paris, and Geneva this year at developer conferences and tech events, and he stresses that CoinDaddy is an exaggerated version of himself, “dialed up to 11.” 

      “Let’s create the most braggadocious, like, awful human being of a character that we could possibly create,” he says.

      But CoinDaddy doesn’t seem like a bad guy. He wants you to get rich on crypto. He’s happy to tell you all about it with the exuberance of someone who’s drawing out a big idea on a whiteboard. Like Kanye West once wrote: Maybe you could be his intern, and in turn, he’ll show you how he cooked up summer in the winter.

      Read more:

      Why is Bitcoins price down to two-month lows?

      Crypto investors are seeing red this week. Bitcoin plunged to two-month lows on Thursday, dipping below $9,000 for the first time since November. At the time of writing, Bitcoin had bounced back up to the $9,200 level, down from weekly highs just above $12,000. This week has seen coins across the board in the red — a sign that investors are jumping ship to fiat currencies this time instead of swapping into altcoins as we’ve seen in the recent past.

      At the time of writing, the total cryptocurrency market cap weighed in at $459 billion, down from January highs around $830 billion. It’s a contraction to be sure, but not a low for the last 30 days (that low came on January 18).

      Is this the bitter end for Bitcoin? For cryptos? Well, no, probably not. Get your head screwed on right and you’ll see that (for better or worse) many coins have seen unprecedented growth in the last six months to a year, even with Bitcoin’s price halved from holiday highs closer to $20,000. On this day last year, Bitcoin was sitting pretty at $982. At the height of December’s craze, most reasonable crypto-watchers could agree that the price was overheated and there was only one way for it to go in the short term. Still, in the thick of the current correction, Bitcoin’s longer-term growth is anyone’s guess.

      Cryptocurrency die-hards expecting the price to bounce back, even partially, will see these tanking numbers as the perfect entry point for getting in low and maximizing gains. Late speculators who got in during the mass crypto hysteria of the holiday season aren’t likely to have such steady hands, a factor that’s likely contributing to the slide.

      So what’s causing the slide to begin with? As usual, no one thing can be blamed for Bitcoin’s current downturn, but recent skittishness around a subpoena for Bitfinex and concerns around Tether — a kind of cryptocurrency counterpart to USD that matches the dollar one to one — probably factor in. Recent news that Facebook would ban ads for ICOs probably didn’t help either. And it seems like every day a new Ponzi scheme gets busted, throwing yet more doubt on the credibility of plenty of less than legit ICOs.

      Even beyond news cycle highs and lows, Bitcoin has seen a few mid-January dips before, though 2017’s Bitcoin behavior certainly broke from any seasonal patterns of the past.

      Still, these growing pains are far from surprising. As cryptocurrencies mature — assuming they continue to do so — regulatory “bad” news will become more common. Countries across the globe will continue to struggle to accommodate their citizens’ sudden interest in digital currencies — or not, in the case of India, which just decided to ban them outright. Unsurprisingly, headlines like these inspire a sense of foreboding among cryptocurrency enthusiasts wondering which country will be next to come down hard. Fear, perhaps justified fear for many speculators with plenty to lose, amplifies each new regulatory revelation. But for cryptocurrencies to grow out of the current scam-laden chaotic era, a thorough house cleaning is healthy.

      Bitcoin and other cryptocurrencies have also looked less responsive to positive news in the latter half of January compared to their relative buoyancy during December’s dizzying highs. Then, every little positive news blip seemed to push the prices higher.

      Bitcoin aside, some altcoins might just be adjusting from overheated, overhyped December highs. Ripple is a good example of this, hovering around $1 Thursday, a price that’s five times its November value and only looks bad after XRP flew a bit too close to the sun with sudden early January highs above $3. Ethereum is also faring pretty well, all things considered, down from all-time highs above $1,400 but holding most of its newly built value after doubling in price from December prices around $500.

      It’ll be interesting to see what happens as we move into next week’s Senate Banking Committee hearings on cryptocurrency. Titled “Virtual Currencies: The Oversight Role of the U.S. Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission,” the open hearings will air on February 6 at 10:00 Eastern time. It’s possible that the upcoming discussion in Congress has traders nervous, but ultimately variables from all over the globe combine to affect the market every day.

      For anyone considering riding out the current correction, a little historical perspective — in this case, even a few months’ worth — could go a long way.

      Disclosure: The author holds a small position in some cryptocurrencies. Regrettably, it is not enough for a Lambo.

      Read more: