Daniel Larimer, the creator of cryptocurrency and decentralized application (Dapp) platform EOS, has confidently declared that he could easily “take down” the decentralized blockchain networks of Bitcoin and Ethereum.
Larimer had first asked on Twitter: “How many people would you have to hold hostage to censor all transactions on your “decentralized” blockchain? How long would it take to recover?” The first response, “21”, was an immediate dig at EOS’s 21 elected nodes or block producers, securing the EOS network.
In what is being viewed as an attack on decentralization, he then responded by saying he would only need to control 3 pools to control Bitcoin and Ethereum:
What is your chain? I could take down btc and eth for quite a while with just 3 pool operators.
— Daniel Larimer (@bytemaster7) March 28, 2019
The resulting Twitterstorm centered mainly around people inviting the EOS founder to do exactly as he threatened, with a few pointing out that there was a stark difference in having nodes and pools secure the network. With the latter, if participants in a pool notice that a pool operator has started behaving maliciously, they would disconnect and contribute their hashpower to a different, neutral pool.
Larimer himself eventually backed down from his stance, though only by reluctantly admitting that carrying out his threat “would be illegal”.
The EOS platform is routinely criticized for its seemingly centralized architecture, with only a limited number of elite large entities known as block producers determining valid transactions and building blocks. Nevertheless, its token value has been steadily improving since its migration to its own native blockchain.
EOS was ranked in top spot in a recent cryptocurrency ratings index released earlier this week by the state-backed China Electronic Information Industry Department (CCID). It was also rated favorably in this week’s Weiss Crypto Ratings Report, which predicts EOS as one of the top runners for 2019.
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After testing the bottom line of the triangle, the sellers unexpectedly stopped their pressure on the price and then after a small consolidation, which more resembled a stop before continuation of the fall, the price began to increase sharply. The first obstacle on the way of buyers was the price of $3,988. Later, buyers coped with this level and the price went up to $4,100 without problems. However, there is one fact that alarms us and makes us think that buyers will not be able to break through the upper trend line of the triangle and the price will continue its movement within the triangle. Pay attention to the volumes at where the attempt of growth is :
These volumes do not differ from the average volumes until the price is in the triangle. Therefore, we do not believe that the situation in the market has changed dramatically. We think that because of the reluctance of sellers to break through the lower trend line of the triangle, such an indefinite situation can continue until 10 April. At the moment, the critical point for sellers is $4,140. However, above this price is a priced zone of $4,200–4,300, from which the price has already been reflected 3 times in the daily timeframe:
Therefore, buyers need to show true character and strength in order to break the trend. Though, despite the fact that sellers have not broke the triangle down, we do not see signals to change the trend.
Marginal positions of buyers begin to close while approaching to the upper trend line:
Sellers did not expect such a development of events. It is noticeable on their marginal positions:
Take into account, that the price has increased by only 3%, but we see a massive closing of marginal positions of sellers.
If we analyze the latest wave of the fall, then we can see that the current growth attempt, which lasted from 5 March, corrected the fall wave by 61.8% (precisely at this level of Fibonacci the battle continues):
Therefore, locally, we expect to see the test of the upper trend line of the triangle, after which the new attempt of sellers to continue their stable trend movement will begin. Globally, we believe that after breaking through the bottom trend line, the triangle will expand and consolidation will continue, only in the larger percentage range:
However, for this scenario, sellers should show their strength and keep the upper trend line of the triangle and the price range of $4,200–4,300. We will be happy to talk about global forecasts at the end of the week at the weekly price analysis.
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About the Author: Peter Oleshchuk is a trader and technical analyst. He has spent two years studying and analyzing the crypto market. Image Courtesy: Bitcoin News
The post BitcoinNews.com Bitcoin Market Analysis 28th March 2019 appeared first on BitcoinNews.com.
Self-proclaimed market analyst Alex Krüger has drawn the attention of the crypto community to a rather bizarre comparison between cryptocurrency exchanges and traditional stock markets, claiming “maker fee + taker fee” for crypto exchanges could be far more expensive at higher volume tier trading.
1/ Are crypto exchanges overcharging customers?
The average "Maker Fee + Taker Fee" in crypto SPOT exchanges (excluding Gemini) for the lowest volume tier (where most users fall into) stands at 0.33%. pic.twitter.com/tZOmGSsAzO
— Alex Krüger (@krugermacro) March 28, 2019
Krüger queried the fees levied on crypto traders as he explains in a series of Tweets how legacy financial institutions often have a flat rate cut per trade, while a typical fee cut by cryptocurrency exchanges only remains fair for lowest volume tier, and according to him, this is where most users fall into. He illustrated how brokers like Fidelity charge a flat rate of USD 4.95 flat per trade, putting the sum maker and taker fee at 0.02% for a USD 50,000 trade, and at 0.33% for a USD 2,900 trade, which can further be reduced should a trader consider brokers who charge per share rather than per trade.
According to the data he shared, Gemini exchange stands out with a sum maker and taker fee set at an exorbitant 2.00%, followed by Bittrex and Bitstamp with 0.5%, whereas Bitmex being a derivative market only charges 0.05%. Meanwhile, major US cryptocurrency exchange Coinbase Pro takes 0.40%.
In a comparison with foreign exchange markets, Krüger further cited how “an FX trader at Oanda would pay 0.008% for a round trip (in and out of a position)”, concluding that:
“Trading on Coinbase is 48x more expensive, while trading on Bitmex is 6x more expensive.”
Moreover, Krüger opined: “A cross-asset trading costs analysis should also account for spreads and relative volatility,” which invariably should impact fees levied, however, “crypto fees are generally high even after adjusting by relative volatility”.
In recent times, institutional investors have been targeted with offshoot market solutions to further attract this class of investors to the burgeoning digital asset industry. However, considering Krüger’s analyses, crypto exchanges second to huge volatility index of cryptocurrency markets may indeed be a huge deterrent for currency traders from the traditional market.
In February, Marketing consultancy Edelman published a report noting an unwavering millennials’ support for cryptocurrency exchanges, further corroborating eToro’s findings of a generational shift in trust suggesting a concrete trust in cryptocurrency market exchanges as well as a fading faith in the traditional stock market exchanges. However, while cryptocurrency trading appears to be more rewarding due to high volatility, the practical aspects of trading come with hidden fees that make it a trying first-experience for newcomers into the industry.
Blockchain technology may appear to solve certain constraints in legacy financial institutions and reduce the cost of transactions between clients, however, cryptocurrency exchanges may end up constituting a clog to the furtherance of the decentralized ecosystem as it reinvents the centralized systems obtainable in the traditional markets.
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