Good morning and welcome to our rolling coverage of all things cryptocurrency, including price, regulation, innovation and financial crime.
Despite strong performances yesterday, bitcoin slipped back into making a loss as an uncertain market attempted to float the price.
Bitcoin fell 0.51 percent to trade at $6,322.46, having lost $200 on the day.
Ethereum is slightly up by 0.22 percent to trade for $284.43.
Ripple lost 0.81 percent to trade for $0.283647.
Litecoin lost 0.94 percent to trade for $54.99.
Traders are still uncertain on how the Securities and Exchange Commission will ultimately decide on the proposed Exchange-Traded Fund (ETF).
The longer the debate drags on for, the lower bitcoin prices are expected to slide.
Bitcoin price LIVE: BTC returns to negative returns after a strong day of gains
22.12pm UPDATE: Thai SEC Clears Seven Cryptocurrency Operators to Serve Clients
Thai regulators announced Thursday, August 16, that they have so far approved seven business entities to conduct cryptocurrency operations as part of the formalization of the country’s domestic market.
In a statement, Thailand’s Securities and Exchange Commission (Thai SEC) confirmed Bitcoin Co. Ltd. (BX), Bitkub Online Co. Ltd., Cash2coins Co. Ltd., Group Co. Ltd. (TDAX), and Coin Asset Co. Ltd. were able to operate as legal cryptocurrency exchanges.
In addition, the regulator approved two cryptocurrency dealers: Coins TH Co. Ltd. and Digital Coin Co. Ltd. (ThaiWM).
The move forms part of a package of “transitional” rules governing crypto businesses operating in Thailand prior to the first tranche of regulations that came into force May 14.
1pm UPDATE: Monero is the coin of choice for miners
Paolo Passeri, Global Solutions Architect, Netskope says: “New academic research from Aachen University has revealed that CoinHive, an embedded cryptocurrency miner, is generating $250,000 in Monero cryptocurrency every month. But this wasn’t the only finding, the research also revealed just ten individuals benefitted from the mining within the region of 80 percent of the generated currency going to them. The Monero currency is the coin of choice for miners for a string of reasons: it offers better privacy, and its CryptoNight algorithm design is conducive to running well on consumer-grade CPUs.”
“As mining schemes continue to be effective there is little standing in the way of those making major profits. The research highlights that public lists used to detect miners, NoCoin being an example, are actually highly ineffective, with 82% of the researchers’ test samples slipping by undetected. Oversights in these kinds of tech means that the most effective method of stopping miners is to block the execution of code with plugins. An example of which would be NoScript.”
11.07am UPDATE: Ripple wants to target China
Ripple wants to target the Chinese market with its distributed ledger technology designed to speed up cross-border payments, an executive at the firm told CNBC.
“China is definitely of interest, it is definitely a target,” Jeremy Light, vice president of European Union strategic accounts at Ripple, told CNBC in a phone interview. “China is definitely a country and region of interest.”
Earlier this year, the blockchain company struck a deal with Hong Kong-based financial services firm LianLian International, aimed at powering the latter’s cross-border transactions between China, the U.S. and Europe. It is not clear whether Ripple’s technology is being deployed by LianLian yet.
10.20am UPDATE: Blockchain company enters US gaming market
Online Blockchain PLC, a UK Blockchain company, has announced it will take a 35 percent stake in gaming team Encryptic Gaming Inc.
Online Blockchain will be investing up to US$100k in cash, over a period of time-based upon development milestones being reached by Encryptid Gaming Inc.
The investment will help Encryptic Gaming develop new crypto-gaming systems.
The first game is Cybernetika, a futuristic world with roving robot-like creatures that can be trained, upgraded and put into tournament-style battles.
Bitcoin slipped back into making a loss
9.15am UPDATE: Bitcoin still finding its feet
Kevin Murcko, CEO of crypto exchange CoinMetro believes cryptocurrencies are still trying to find their true value.
Mr Murcko said: “The market is experiencing a readjustment as it tries to find the ‘true or underlying value’ of each crypto asset. For instance, there have been a number of studies examining the cost to mine a single Bitcoin, with $6,000 being the mean.
“Large mining operations will not sell below their cost to produce, which over time creates a true value or ultimate low in the market. Until there are other proven values attached to a specific asset, the low resistance point will revolve around this cost of production. Current BTC price, which is floating around that $6,000 mark [currently $6,350], is a reflection of all of this.
“Besides the hard cost of mining, there are plenty of other market influencers. Use cases can drive adoption, which in turn increases demand, transactions, cost to mine, and ultimately leads to higher prices. You will also have outside circumstances, like the bull run of 2017, that propel prices outside of this market-induced range.
“This is common across all markets, such as when a stock price doesn’t accurately reflect earnings, or the dot-com bubble, when stocks with negative balance sheets traded at extreme valuation levels.”
7.40am UPDATE: Is bitcoin too unreliable to predict?
Web security company High-Tech Bridge’s CEO Ilia Kolochenko says BTC is beyond prediction.
He said: “I don’t think anyone can give a reliable forecast on bitcoin today. As seen in the past, immense fluctuations were suddenly caused by cybercriminals, governments, and alternative cryptocurrencies.
“Despite a current semblance of relative stability, bitcoin being a puppet of market speculators and cyber gangs means it can abruptly drop or skyrocket.
“You can make a lot of money speculating with bitcoin these days, but be prepared for the associated risk of losing all of your gains.”
Bitcoin is back in the red today, as the market drops in price
7am UPDATE: USA investors can now buy bitcoin exchange-traded notes
Starting today, investors in the USA can buy a bitcoin exchange-traded note (ETN) through their online broker, bank or advisor.
Although the CoinShares product is listed and regulated in Sweden, the note Bitcoin Tracker One (CXBTF) is now listed in US dollars.
The offering gives investors who may be concerned about a direct investment in bitcoin a way to get into the market.
“Everyone that’s investing in dollars can now get exposure to these products, whereas before, they were only available in euros or Swedish krona,” Ryan Radloff, CEO of CoinShares Holdings Ltd., told Bloomberg.
“Given the current climate on the regulatory front in the US, this is a big win for bitcoin.”