CFTC explains cryptocurrency to general public through their new website

CFTC unveils a new informational portal for educating the public about digital commodities
19 December 2017   677

Just as the bitcoin futures become a thing, US Commodity Futures Trading Commission (CFTC) fires up a website in hopes of educating general public about cryptocurrencies and digital assets in general. The site features a variety of materials and links, such as CBOE and CME Group futures launch dates and CFTC own releases, like an October primer about CTFC siding with US SEC on the matter of ICO tokens being commodities.

The press release about the website states that financial technologies have the potential for significant, if not transformational impact on markets regulated by the Commission, and even the agency itself. One of the recent marketplace developments, which proved this point, is the rise in the prominence of virtual currencies, especially Bitcoin.

The release probably represents the trend of normalization and acceptance of Bitcoin in the eyes of the agency. In 2015 CFTC classified Bitcoin as a commodity, and now, the CFTC's chief commented, that even up to this day Bitcoin is still an unusual kind of commodity by any old standard. And today, when the same challenge is presented to SEC, the CFTC aims to support its fellow government branch.

Bear Market to Hit Mining Hard

BitMEX research division presented an analysis of the impact of market decline on the mining industry
11 December 2018   75

The cryptocurrency market has experienced a marked decline over the past weeks. The BitMEX research division presented an analysis of the impact of these events on the mining industry. Bitcoin hash rate has fallen by 31% since the beginning of November, which is equivalent to the capacity of 1.3 million Bitmain S9 devices. From this, BitMEX concludes that miners as a class are in a difficult situation, however, they may have different conditions, and those who pay more for electricity, are forced to turn off their equipment first, while others may still be quite viable.

The decrease in the price of Bitcoin by 45% since the beginning of November has already caused two recalculations of the complexity of mining to the lower side - by 7.4% and 15.1% on November 16 and December 3, respectively. The first recalculation turned out to be the largest since January 2013, the second - since October 2011.

Bitcoin mining revenue fell from $ 13 million per day in early November to $ 6 million per day in early December. The fall in the size of the miner's encouragement turned out to be even more rapid than the fall in the price of cryptocurrency. This is due to the delay in recalculating the complexity of mining. For the six-day period ending December 3, 21.8% fewer blocks were mined than expected, since the miners left the network before recalculating the difficulty. As a result, in addition to reducing the size of the miners' encouragement in dollar terms, due to lower asset prices, they received 21.8% less bitcoin awards.

One of the popular reasons for the recent decline in the cryptocurrency market is that miners sold bitcoins to cover their costs of hash warsin the Bitcoin Cash network. The monitoring platform Boltzmann recorded an unusually large sale of Bitcoin by the miner on November 12, that is, 3 days before the hard fork of Bitcoin Cash.

BitMEX assumes that the actions of miners over the past weeks could have played a significant role in reducing the market, however, recommends not overestimating their value and reminds that in a bearish trend, prices continue to fall regardless of asset movements and news.