40 Million Troy Ounces: Russia’s Gold Find Reaffirms Bitcoin as the More Scarce Asset

40 Million Troy Ounces: Russia’s Gold Find Reaffirms Bitcoin as the More Scarce Asset

News of the discovery of approximately 40 million troy ounces of gold in Russia’s Siberian region is likely to boost the profitability of the country’s biggest gold producer, while adding to the supply of the “scarce” resource. Reports say the Polyus owned the Sukhoi Log contains 540 million tonnes of ore, which translates to an average of 2.3 grams per ton. The reserves, which will account for a quarter of Russia’s gold stocks, are likely to generate $76 billion in revenues for Polyus when using current prices.

How Bitcoin Compares to Gold

Although the Sukhoi Log announcement adds to the proven reserves and stocks of gold, it is unclear how this will affect the metal’s price in the immediate to short term. However, gold which has traditionally been used as a hedge against inflation is likely to grow in value as the money supply increases. The precious metal behavior contrasts with that of bitcoin, an asset that appears to exhibit an inverse relationship between its circulating supply (or stock) and its price.

With about 18.5 million coins–out of the total fixed supply of 21 million–already mined and circulating, institutional investors hold nearly 4% of that, according to bitcointreasuries.org. However, as more institutional investors join the bandwagon of corporations buying bitcoin, the resulting supply shrinkage will help the price of the digital asset to surge even further.

To illustrate, right before Square Inc acquired 4,709 bitcoins for about $50 million, the digital asset was trading at around $10,500. However, between Square’s bitcoin purchase and the period following Paypal’s big announcement on October 22, the value of the coin surged to a fresh high of $13,300. At the time of writing, bitcoin is oscillating around $13,000. For Square Inc, this means in less than one month, its bitcoin reserves have grown in value from $50 million to more than $61 million. Grayscale and Microstrategy, which have also acquired significant quantities of the bitcoin, have similarly seen their reserves grow in value.

Meanwhile, the increasing regulatory clarity on digital assets means more large corporations will likely acquire bitcoin thus making it even more scarce. For bitcoiners, this endorsement of bitcoin by larger investors as well as its subsequent surge in value vindicates their long-standing argument that this new asset outperforms gold when it comes to preservation of value. Furthermore, this narrative is getting support from a growing list of studies that say or rank bitcoin as a better store of value and inflation-proof asset than gold.

Documentary Support for the Alternate Store of Value Narrative

News.Bitcoin.com has previously reported on a Bistamp study which concludes that bitcoin trumps gold because it performs well even in times of rising real interest rates. Gold seems to perform better during inflationary periods. Similarly, Fidelity Digital Assets has written a two-part bitcoin investment thesis wherein it discusses key attributes of the digital asset that are alluring to institutional investors. These studies (as well as many others) acknowledge the importance of bitcoin’s fixed supply in charting the trajectory of this digital asset.

Therefore when Polyus made its surprise announcement, bitcoiners expressed delight at this latest validation of bitcoin position as the best investment asset. For instance, on Twitter, users took turns to express their sentiments. One Twitter user named Crypto Clint writes:

“Lol… Who said gold is scarce. The ocean is full of it. There are a lot of unexplored areas on earth. Bitcoin on the other hand.”

40 Million Troy Ounces: Russian Gold Find Reaffirms Bitcoin as the More Scarce Asset

Many other users agree that Polyus announcement is good news for bitcoin. Given its properties and the underlying technology, the digital asset is looking more scarce than gold and thus more valuable.

What are your thoughts about Polysus’ new gold find? Tell us what you think in the comments section below.

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TA: Ethereum Stuck Below $410, Why It Could Correct Sharply Below $400

Ethereum is struggling to gain momentum above $410 and $420 against the US Dollar. ETH price might start a strong downside correction if it clears the $400 support.

  • Ethereum is facing a couple of major hurdles near the $410 and $412 resistance levels.
  • The price is currently holding the $400 support and the 100 hourly simple moving average.
  • There was a break below a key contracting triangle with support near $412 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could start a sharp downside correction below $400 if it stays below $412 for too long.

Ethereum Price is Facing Hurdles

Ethereum failed to set a new monthly high above $420 unlike bitcoin against the US Dollar. ETH price seems to be facing a couple of major hurdles near the $410 and $412 resistance levels.

The last swing high was near $418 before the price declined below the $410 support. There was a break below a key contracting triangle with support near $412 on the hourly chart of ETH/USD. However, ether price remained well bid above the $400 support and the 100 hourly simple moving average.

A low is formed near $403 and the price is currently consolidating in a range. There was a break above the $405 level, but the price is facing a strong resistance near the $410 level. It is also close to the 50% Fib retracement level of the recent decline from the $418 high to $403 low.

Ethereum Price

Source: ETHUSD on TradingView.com

The next key resistance is near the $412 level or the 61.8% Fib retracement level of the recent decline from the $418 high to $403 low. If ether clears the $410 and $412 resistance levels, there are chances of a strong increase.

The next major resistance is near the $418 swing high and $420. A successful close above the $420 level might open the doors for a sharp increase in the coming sessions. The next stop on the upside could be near the $432 level, followed by $435.

Downside Break in ETH

If Ethereum fails to clear the $410 and $412 resistance levels, there is a risk of a fresh drop. The first major support is near the 100 hourly simple moving average and $405.

The main support seems to be forming near the $400 level. A continuous failure to gain traction above $410 might even result in a sharp decline below the $400 level (the last key breakout zone).

Technical Indicators

Hourly MACDThe MACD for ETH/USD is slowly moving in the bullish zone.

Hourly RSIThe RSI for ETH/USD is just below the 50 level.

Major Support Level – $400

Major Resistance Level – $412

Bitcoin Weekly Outlook: All Eyes on US Election, Stimulus, Tech Earnings

Bitcoin

Bitcoin Weekly Outlook: All Eyes on US Election, Stimulus, Tech Earnings


Bitcoin market sentiment fared an extremely bullish setting last week as traders/investors assessed the foray of big firms into the digital currency sector, including PayPal.

The BTC/USD exchange rate began the 7-day timeframe with a decent jump – and it spent the rest of the time trading upward. That was despite the uncertainty surrounding the next US fiscal stimulus and the presidential election on November 3. Bitcoin remained the best-performing safe-haven asset after closing the week about 13 percent higher.

Another Good Start for Bitcoin

Opening Monday, BTC/USD rose 0.5 percent to trade further above $13,000, a psychological support level that traders believe will provide a firm footing for the next bull run.

The fundamentals are so far supporting the rosy technical picture. This week is looking to be a busy one, with the US election and fiscal stimulus talks promising to influence the global market outlook, including that of Bitcoin.

Analysts expect the Democratic nominee Joe Biden to beat the sitting President Donald Trump, a Republican. They add that a Democratic majority in both the Senate and House of Representatives would pave the way for a bigger coronavirus relief package – of more than $2 trillion.

A section of economists also sees the stimulus as inevitable. So no matter who wins the election, the market should expect at least an aid worth $2 trillion.

Both the scenarios intend to leave the US dollar weaker, thereby raising demand for other safe-havens in both the local and foreign markets. Bitcoin serves as one of the hedging alternatives to investors. Therefore, the cryptocurrency’s connoisseurs see it trading upward post the US election.

Tech Earnings Season

Meanwhile, Bitcoin would at least hold its gains above $13,000 as significant tech players release their third-quarter earnings.

The sector has outperformed its peers largely in 2020, helped by demand for online technologies during the coronavirus-led lockdown. It now covers more than 80 percent of the total gains logged by the S&P 500 index, somewhat becoming a flagbearer of Wall Street’s impeccable performance in a recession year.

This week, the likes of Facebook, Alphabet (Google), and Apple would unveil whether or not their recent stock rallies have strong revenues as a base. Strategists note that investors would even ignore a poor financial report, given the firms’ strong growth prospects in the next 12 months.

A sustainable rally in the US stocks would reduce investors’ appetite for cash. In turn, it would mean lower selling pressure across other safe-havens, including Bitcoin.

Other takeaways:

  • The European Central Bank will release its forward guidance on Thursday. With a resurgence in the coronavirus infections in Germany, France, and other parts of the eurozone, the market expects more financial aid from the bank. Should it come, Bitcoin expects to grow higher against the euro.
  • The US dollar is likely to post seesaw price moves that may influence Bitcoin price movements on an intraday basis. Long-term weakness in the greenback is anticipated.

Harvest Finance Token Plummets 65% After Attack Saps DeFi Site of TVL

A possible exploit in decentralized finance (DeFi) protocol Harvest Finance has sent the platform’s native token (FARM) tumbling by 65% in less than an hour, according to CoinGecko.

According to reports surfacing early Monday, upwards of $25 million in value has been drained from Harvest Finance pools and swapped for renBTC (rBTC). Other funds have been mixed through Tornado Cash, an Ethereum obfuscation software. Following the attack, investors appear to have pulled $350 million from the site.

“We are working actively on the issue of mitigating the economic attack on the Stablecoin and BTC pools, and will update in this thread in realtime as soon as additional details are available,” the anonymous team behind Harvest Finance said in a tweet.

The team further said the “economic attack” was made possible by manipulating stablecoin prices on Curve Finance, another DeFi protocol that Harvest Finance contracts interact with. 

The project’s admins claim to have withdrawn “100% of stablecoin and BTC curve strategy funds” to the vault and “are moving to block deposits to the Stablecoin and BTC vault,” the Harvest Team said in the project’s Discord at 4:45 UTC.

Harvest Finance did not return questions by press time.

The attack comes after DeFi analyst Chris Blec claimed Harvest Finance’s administrators held an “admin key that can drain funds” locked in the protocol’s contracts. It’s unclear at this stage in the exploit what role the admin key or the anonymous team behind the protocol have to do with the sudden drain in assets. Blec did not return a request for comment by press time.

Harvest Finance had over $1 billion in total value locked (TVL) just prior to the possible exploit being unveiled. TVL has dropped by $60 million as of 4:00 UTC, according to DeFi Pulse

This is a developing story and will be updated when more is known.

TA: Bitcoin Hesitates Above $13.2K, But 100 SMA Could Trigger Another Increase

Bitcoin price traded to a new monthly high at $13,352 before correcting lower against the US Dollar. BTC is currently trading nicely above the 100 hourly SMA and it could attempt another increase.

  • Bitcoin is trading nicely above the $12,800 and $13,000 support levels.
  • The price is holding gains above the 100 hourly simple moving average, with a positive angle above towards $13,300.
  • There is a crucial bullish trend line forming with support near $12,900 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair is likely to continue higher as long as it is above the 100 hourly SMA and $12,800.

Bitcoin Price Is Showing Positive Signs

Bitcoin price remained well bid above the 13,000 resistance and extended its rise. BTC even broke the last high at $13,250 and traded to a new monthly high at $13,352.

Recently, there was a downside correction and the price broke the $13,000 support. The decline found support near the $12,800 zone and the 100 hourly simple moving average. There is also a crucial bullish trend line forming with support near $12,900 on the hourly chart of the BTC/USD pair.

Bitcoin Price

Source: BTCUSD on TradingView.com

Bitcoin is currently rising and trading above the $13,000 level. There was a break above the 50% Fib retracement level of the recent decline from the $13,352 high to $12,834 low.

An immediate resistance is near the $13,150 level. It is close to the 61.8% Fib retracement level of the recent decline from the $13,352 high to $12,834 low. To continue higher, BTC must gain momentum above the $13,200 level.

If there is a daily close above the $13,200 level, the price is likely to accelerate higher above $13,350. The next major resistance on the upside is near the $13,500 level.

Downside Break in BTC?

If bitcoin fails to climb above the $13,150 and $13,200 resistance levels, there could be a fresh decline. The first major support is near the 100 hourly SMA at $13,000.

The main support is near the trend line at $12,900, below which the bulls might even struggle to protect the $12,800 support level in the coming sessions.

Technical indicators:

Hourly MACD – The MACD is slowly gaining momentum in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 50 level, with a positive angle.

Major Support Levels – $13,000, followed by $12,900.

Major Resistance Levels – $13,150, $13,200 and $13,500.

Can Github Remove the Bitcoin Codebase? Recent Repository Takedown Has Proponents Worried

Can Github Remove the Bitcoin Codebase? Recent Repository Takedown Has Proponents Worried

On October 23, the Microsoft-owned Github leveraged an ostensible DMCA takedown in order to remove 18 projects from the code-hosting portal. According to sources, the takedown stemmed from a request filed by the Recording Industry Association of America (RIAA). Github’s recent move has made the crypto community quite leery of the platform and some proponents are scared that cryptocurrency codebases like Bitcoin’s can be taken down by government forces.

This week the RIAA got the Microsoft-owned Github to remove a number of projects from the code-hosting portal. The code repositories removed stem from a project called the Youtube-dl protocol. The software is a Python library that allows people to download source files from the video-streaming platform Youtube.

Prior to the removal, the Python-library Youtube-dl had over 72,000 stars on the repository platform. Github published the reasons behind the DMCA takedown but some people contested whether or not it was real. For instance, the legal director, John Bergmayer, claimed it “isn’t really a DMCA request.”

“I don’t see an assertion that Youtube-dl is an infringing work. Rather the claim is that it’s illegal per se,” Bergmayer wrote on Twitter. In addition to Bergmayer’s statements, the Electronic Frontier Foundation (EFF) also tweeted about Github complying with the RIAA.

“Youtube-dl is a legitimate tool with a world of lawful uses,” the EFF detailed. “Demanding its removal from Github is a disappointing and counterproductive move by the RIAA.”

Github’s move has caused concern among many cryptocurrency advocates as a number of bitcoin proponents have been discussing the situation. On October 24, Sideshift.ai founder Andreas Brekken tweeted: “The threat is real,” after sharing a tweet Pierre Rochard wrote to his followers on September 9, 2020.

“I would not be surprised if central banks pressure Github into delisting the bitcoin/bitcoin repository,” Rochard exclaimed well over a month and a half ago. “Development work would go on, but it would be far slower and more decentralized,” he added.

Of course, after Github removed Youtube-dl, a number of other crypto advocates discussed the possibilities of crypto repositories being removed and what types of alternatives are available. Software developer Chris Troutner replied to Brekken’s threat tweet and explained how he backs up his code.

“This is why I mirror my GitHub repositories on IPFS. This is why I back up my YouTube videos on LBRY and IPFS.” Others discussed using alternatives like Gitlab as the Youtube-dl project already has a back-up on the code-hosting portal.

“Shame an open-source tool that does not use proprietary code get’s a DMCA notice,” tweeted another individual. “Code is not free if it’s on Github.” A few other crypto users suggested that Filecoin devs should “should focus on building a decentralized github.” “Open source code is crucial and text is easy to compress and doesn’t consume storage,” he added.

The Youtube-dl DMCA takedown, however, does not concern everyone and it follows the recent Arctic permafrost project Github participated in recently. According to Github, the Bitcoin codebase will be stored for 1,000 years as Archivists etched the blockchain network’s code on film reels and encased the codebase in a steel capsule.

It’s also important to note that Git is a form of distribution and not a centralized protocol. Github is a centralized protocol and owned by Microsoft but the bitcoin/bitcoin repository can be mirrored at any time.

What do you think about bitcoiners concerns about Github’s centralization? Let us know what you think in the comments section below.

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Patrick Byrne

Patrick Byrne was the CEO of Overstock.com, one of the earliest online retailers to accept bitcoin as payment. Overstock.com is the parent company of blockchain investment firm Medici Ventures and capital markets platform tZERO.

Byrne bought Deals.com in 1999 and rebranded the international retailer to Overstock.com. In its early years, Overstock.com gained a reputation for bargain prices and “steals,” which led to early success earning $25.5 million in year two and $80 million in year three. In 2002, Overstock.com went public and earned nearly $100 million in gross revenues.

In 2014, Overstock began offering their products in exchange for bitcoin. While missing their sales mark in the first few years, this exposed the retailer to a new customer base, 50% of bitcoin sales were completed by customers who had previously not shopped at Overstock.com. In 2014, Byrne launched Overstock.com’s subsidiary investment firm Medici Ventures. Byrne had become an outspoken advocate of bitcoin, even installing a Bitcoin ATM at Overstock’s headquarters in 2015. That year, Byrne directly invested $8 million in different blockchain projects.

Medici Ventures has become a notable venture firm in the cryptocurrency and blockchain industries, having funded voting solution Voatz, asset manager Chainstone Labs, data authenticator Factom and banking platform Bankorus. Additionally, Byrne’s often promoted subsidiary, tZERO, aims to be a blockchain-based securities market that disrupts traditional Wall Street practices. As of February 2019, the platform had struggled in its initial phases regarding volume expectation and price of their initial coin offering (ICO) token, TZROP. The platform remains restricted to certain users and tradeable tokens.

In 2018, the state of Ohio announced it would accept bitcoin as payment for taxes, and in 2019, Byrne’s Overstock.com became one of the first major companies to pay its taxes in bitcoin. This act brought praise from Ohio state treasurer John Mandel, stating the company’s “embrace of blockchain technology was ahead of its time.”

Ethereum Dev Virgil Griffith’s Attorney Files Motion to Dismiss Charges of Aiding North Korea

Virgil Griffith’s lawyer has filed a motion to dismiss the U.S. government’s charges that the Ethereum developer violated sanctions law by speaking at a North Korean cryptocurrency conference.

The motion, filed by attorney Brian Klein, claims the government’s late-2019 indictment of Griffith doesn’t “specify any alleged overt facts,” and contains no actual allegation of fact.

Griffith was arrested last November on charges he violated the International Emergency Economic Powers Act (IEEPA) and executive orders by going to North Korea and speaking during a crypto conference, where he allegedly taught government officials how to use the techology to bypass economic sanctions.

It’s the first sanctions case in a U.S. court involving cryptocurrency, and as such is likely to be closely watched. The results could hold a precedent for other cases the government might bring under the law, as the U.S. continues adding individuals and entities to its sanctions lists.

Klein’s motion to dismiss claims that the President of the United States does not have the authority to prohibit the transmission of information, and that the Office of Foreign Assets Control (OFAC), the Treasury Department division overseeing sanctions enforcement, has “issued no regulations and published no guidance to clarify the definition of ‘services’” that are otherwise prohibited under executive orders.

“It appears that the government’s theory is that, by attending and speaking at a blockchain conference in Pyongyang, Mr. Griffith provided ‘services’ because he ‘provided the DPRK with valuable information on blockchain and cryptocurrency technologies, and participated in discussions regarding using cryptocurrency technologies to evade sanctions and launder money,’” the motion said.

According to Klein, Griffith only provided information that was already in the public domain.

The next step in the case is likely a government response to Klein’s motion.

Here’s Why Analysts Think That Ethereum’s Uptrend Remains on Track

Ethereum

Here’s Why Analysts Think That Ethereum’s Uptrend Remains on Track


Ethereum has stalled after hitting the pivotal highs of $420 earlier this week. The coin now trades for $408, failing to break higher even as Bitcoin flirts with yet another breakout ahead of the weekly close.

Despite the mixed price action, analysts think ETH remains in bullish standing.

Ethereum Analysts Thinks the Uptrend Is Intact

One crypto-asset analyst shared the chart below on October 25th. It shows that Ethereum remains in a consolidation below a pivot level. Even still, the uptrend still seems to be intact as ETH holds the $400 support region:

“We got the move everyone wanted. Now price meets resistance of Sine upper band. Today’s candle shows already a small lower shadow. Some retest around 396/400 might be necessary to break above the band like end of July, but uptrend on track!”

Image

Chart of ETH's price action over the past few weeks with an analysis by crypto trader Trading Cyclist (@FullGasTrader on Twitter). 
Source: ETHUSD from TradingView.com

This was echoed by another analyst just recently as Bitcoinist reported previously. This other commentator noted that the coin is currently about to print another leg higher as it consolidates between $405 and $420.

Image

Chart of ETH's price action over the past few weeks with an analysis by crypto trader Steve (@Thetradingtramp on Twitter). 
Source: ETHUSD from TradingView.com

ETH2 Blow Dealt

One of Ethereum’s crucial bullish fundamental catalysts may be put on hold for now, though.

As first reported by CoinDesk, Ethereum Foundation researcher Danny Ryan commented that the ETH2 deposit contract may be pushed back due to audits.

The deposit contract is the contract that will link the original Ethereum chain to the 2.0 chain, which will have staking enabled.

Commenting on the Bankless podcast, hosted by Ryan Sean Adams and David Hoffman, Ryan commented on the matter:

“This library is critical to creating keys, signing messages. Critical, in early phases, [means] that if you use this library, they need to be secure; if you use it to generate your wallets, it needs to have good randomness; and if you are signing your deposits which have a signature associated, it needs to be correct,” Ryan said. “Given that how critical this library is, and given that, if there is a fundamental error in this library we could f*ck some sh*t up in terms of genesis deposits, that is the blocker,” he said.

Other Ethereum researchers and developers think there will be a delay between the publishing of the deposit contract and the actual launch of the chain.

Featured Image from Shutterstock
Price tags: ethusd, ethbtc
Charts from TradingView.com
Here's Why Analysts Think That Ethereum's Uptrend Remains on Track