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Bitcoin [BTC]: experts expect 20% of exchanges to be compromised to a hack by 2020, says report

Priya

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Bitcoin [BTC] experts expect 20% of exchanges to be compromised to a hack by 2020, says report
Source: Unsplash

Bitcoin [BTC], the largest cryptocurrency by market cap, saw a drastic price drop through-out 2018, with the coin even losing over 80 percent of its value since its all-time high. A report released by Adamant Capital listed a few major catalysts that could influence a price drop of the largest coin.

The first reason stated in the report was the hack of exchanges or its failures. The report stated that “experts” were concerned about Bitcoin exchanges as they expect around 20% of the exchanges being compromised to a hack before summer 2020. The report said,



“While cryptocurrency custodians were perceived to be the least risky, our experts still estimated that before the summer of 2020 an industry wide 10-15% of custodians would suffer from loss of funds due to a hack”

Source: Adamant Capital

Source: Adamant Capital

The second reason for the slump was stated to be a macro-economic downturn. The report stated that Bitcoin has “relatively” high liquidity, which could be used as a proxy for cash if equity or bond markets were to drop. It said,

“This could lead to a situation similar to the 2008 paradox of the gold price declining by over 30% coinciding with a record high demand for coins and bars […] we don’t see a financial crisis as a long term headwind for Bitcoin, on the contrary […] we believe that Bitcoin is of compelling value for investors looking to diversify their portfolios […]”

The report further listed Bitcoin miners and Mt.Gox to also be one of the main catalysts. Mt. Gox, a defunct Bitcoin exchange that controlled over 70% of Bitcoin transactions, was still undergoing its civil rehabilitation proceedings. The report stated that a significant amount of the Bitcoin that would be redistributed by Mt. Gox to creditors could be sold, thereby influencing the price of the coin. It added, “Finally, a regulatory crackdown should be considered a permanent risk factor, given the disruptive nature of Bitcoin.”





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Priya is a full-time member of the reporting team at AMBCrypto. She is a finance major with one year of writing experience. She has not held any value in Bitcoin or other currencies.

Bitcoin

TD Ameritrade invests in crypto-trading platform Eris-X, to offer spot exchanges and future contracts

Biraajmaan Tamuly

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TD Ameritrade invests in Eris-X; crypto trading platform to offer spot exchanges and future contracts
Source: Pixabay

TD Ameritrade, one of the biggest companies in the United States offering an electronic trading platform for trading financial assets, recently announced that it was going to launch cryptocurrency trading on its parent platform.

Now, according to an official announcement, the organization revealed that they had made an investment in ErisX, a company which is planning to offer both cryptocurrency spot contracts and future contracts in a single exchange.

The website stated,

“TD Ameritrade will be working with the team at ErisX as they develop and launch their cryptocurrency trading products. This strategic investment is yet another way to demonstrate our ongoing commitment to innovation—and bring our clients a best-in-class investing and trading experience.”

TD Ameritrade had announced the addition of cryptocurrencies to its portfolio last month after Charlie Lee, the CEO of Litecoin, tweeted about tests conducted on its platform.

Bitcoin Futures contract trading was initiated on the official platform earlier, but was only open to high-volume traders. On TD Ameritrade’s platform, the minimum deposit required for trading BTC future contracts was $25,000, at press time. The potential traders also needed two advisory notes from CFTC and NFA to keep in check the risk associated with virtual assets.



Eris-X, a CFTC-regulated derivatives exchange, will now be open to retail crypto-traders and according to the official statement, the firm has plans to offer both spot exchanges and futures contracts based on the digital currencies.

The official statement mentioned,

“This strategic investment is yet another way to demonstrate our ongoing commitment to innovation—and bring our clients a best-in-class investing and trading experience.”





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