Bitcoin’s Dominance Wanes: BTCManager’s Week in Review March 27
The Bitcoin Dominance Index touched fresh lows during the week beginning March 20, with most altcoins surging and BTC-USD bears tried to subdue the cryptocurrency below the $1000 level. Since March 10, the Bitcoin Dominance Index has been in freefall, recovering slightly to 68 percent on March 27, shown below.
Altcoins have made strong gains but there is debate within the community whether these cryptocurrencies are experiencing a bubble. Ether has held strong near $50 but DASH’s bubble seems to have burst, as we anticipated in our previous weekly cryptocurency outlook, with the altcoin trading near $85 at the time of writing.
The combined altcoin market capitalization is approaching $8 billion and the chart displays the phenomenal rise begun on March 8. It is also interesting to note that the sharp jump in the value of altcoins and drastic fall in the Bitcoin Dominance Index coincided with AntPool mining the first Bitcoin Unlimited block.
Although over the weekend, bitcoin reached a fresh low, sentiment has improved somewhat. Progress is being at coming to a resolution which could settle the fight between miners and Bitcoin Core, with various exchanges and other players in the ecosystem stating their support for SegWit. Also, nodes in the network are beginning to show their disdain of Bitcoin Unlimited, with less than 3 percent of nodes signalling their support for the alternative client and an attempt to push through a User-Activated Soft Fork to force the miners hands.
This week’s review is compiled from contributions from Alexander Lielacher, Christoph Bergmann, Evan Sixtin, Jamie Holmes, Joseph Young, and Michael Scott.
One chain or two chains? The Bitcoin community fears that the Bitcoin blockchain will split into two persisting chains when Bitcoin Unlimited miners initiate a hard fork, even if it is done with a majority of the hash rate. But is this true? How can the majority chain attack – and how can the minority chain resist?
The majority of the Bitcoin community believes a hard fork execution will not occur anytime soon. Experts and developers including Andreas Antonopoulos, BitGo engineer Jameson Lopp and Charlie Shrem have noted that Bitcoin Unlimited is not ready for production and its policies toward closed development are not being supported by the market.
Bears seized control of BTC-USD over the weekend, plunging the digital currency below $900 from around $975, but the market respected the fractal support at $910.45. This invalidates the long-term move toward $750 and the market has since returned to equilibrium, moving above the $1000 handle. Nevertheless, with the daily Ichimoku cloud breakout to the downside, sellers still remain in control unless BTC-USD can overcome $1100.
In an exclusive interview with BTCManager before his one-year sojourn where he will live in 12 different cities around the world, we asked Ashe Oro, the first private banker and former head of business development at Euro Pacific Bank, for his “no holds barred” thoughts on the future of cryptocurrencies, offshore banking and the future of global business.
If Blockchain Technology is the new Superman in the Information Technology field, then petty bickering and immaturity amongst developers and entrepreneurs are the kryptonite that has defiled this budding industry. Still, there remain a few sanctums of civility where affable and civil people are attempting to do good work. BloqLabs was launched in March to offer sponsorship and support to open-source projects in the blockchain ecosystem while bridging open source methods of software development with enterprises.
The consensus mechanism is a vital feature of a blockchain as it ensures that all participants of a distributed ledger are on the same page and enables the network to keep functioning even if some of its members are failing. The most commonly used consensus mechanism is the Proof-Of-Work protocol used by the first-ever cryptocurrency, bitcoin. And then there is the environmentally-friendly Proof-of-Stake, used by NXT, Proof-Of-Importance, illustrated by XEM, as well as hybrid models.
The Australian Securities and Investment Commission (ASIC) has published an information sheet outlining regulatory considerations for startups and existing licensees who intend to make use of distributed ledger technology to develop new solutions for their businesses. The sheet contains six questions that need to be addressed to assess whether a startup or financial institution’s use of blockchain technology can meet its regulatory obligations.