Tag Archives: cryptocurrency

The Cannabis Industry, the Blockchain, and Dennis Rodman Gives PotCoin a New High

The Cannabis Industry, the Blockchain, and Dennis Rodman Gives PotCoin
a New High

Cannabis has been legalized in numerous states

across the United States. However, the cannabis industry is still plagued with limited access to banking services as traditional banks want to avoid dealing with businesses that engage in business activities that are still largely illegal under federal law. That is where cryptocurrencies could offer a solution.

Due to the loosening of anti-cannabis laws across America, the legal weed retail industry has grown quickly over the years and is expected to keep growing rapidly as more states debate and decide on its legality. Both the medicinal and recreational use of cannabis has been legalized in Alaska, California, Colorado, Oregon, Washington, Nevada, Massachusetts, Maine, and the District of Columbia, while the medical use of cannabis has also been legalized in an additional 20 states across the US. In late 2016, leading investment bank Cowen and Company published a report on the Cannabis industry titled, “The Cannabis Compendium: Cross-Sector Views on a Budding Industry” which postulates that the industry would grow to $50 billion by the year 2026.

However, because cannabis is still illegal under federal law, most legal dispensaries are having to conduct purely cash-based business, given most banks and other financial institutions will not allow them access to financial services as a result of regulatory constrictions. This leaves weed retailers vulnerable to theft, which criminals have exploited, as evidenced by statistics on dispensary robberies. The blockchain industry is looking to remedy this. Due to the decentralized nature and inherent security of the blockchain, it offers a unique selling proposition as a payments solution for the cannabis industry.

Dennis Rodman Gives PotCoin a New High

PotCoin was created in 2014 to cater to the needs of the unbanked cannabis industry. The coin works on a proof of stake system with an Annual Percentage Interest (APR) of five percent. The coin also boasts fast processing time with relatively low fees. Though the coin has exhibited steady growth in its three years of existence, there has been a substantial spike in its price this week due to its sponsorship of retired Basketball star and Hall-of-Famer Dennis Rodman’s trip to North Korea.

According to PotCoin spokesperson Shawn Perez, the main reason for the sponsorship of Rodman’s trip was to support “Dennis Rodman's mission to bring peace to the world." Though the visit does not seem to have any visible ties to the cannabis industry, PotCoin has benefitted from the media attention that has surrounded Rodman’s journey to North Korea. According to Coin Market Cap, the coin has shown over 70 percent growth, from just below $0.10 to $0.17 since the sponsorship was announced.

POSaBIT

Washington-based bitcoin startup POSaBIT has created a financial platform that allows customers at weed retailers to make purchases using their regular credit cards. The platform uses bitcoin as an intermediate payment system. Jon Baugher, co-founder of POSaBIT explained: “There’s no industry – whether it’s the production and sale of cannabis or the production and sale of a cup of coffee – that can operate safely, transparently or effectively without access to banks or other financial institutions and traditional services. That’s where we thought we could leverage the use of digital currency.” The technology facilitates customers’ quick and easy access to bitcoin at the point of sale who can then use the digital currency anywhere that it is accepted. The platform is already in use by 30 dispensaries in the state of Washington.

The platform is attractive to cash-only merchants who want to accept another form of payment, retailers that want to be seen as more technologically savvy so as to differentiate themselves from the competition, and for small businesses that want to maximize profits by capitalizing on digital currencies’ low transaction fees. The technology is compliant with Know Your Customer (KYC), Anti-Money Laundering (AML), and Office of Foreign Assets Control (OFAC) regulations while complying with laws regulating the cannabis trade. Since the platform reduces the reliance on cash as a medium of exchange, it is making dispensaries safer working environments for employees as there is less of an incentive for theft.

SinglePoint and First Bitcoin Capital

Holding company SinglePoint and blockchain technology provider First Bitcoin Capital announced a partnership on June 6. The joint venture agreement aims to create an efficient and workable payments solution for cannabis retailers using blockchain technology. Greg Lambrecht, SinglePoint CEO, explained: "In January 2014 SinglePoint announced and started working on a bitcoin payment solution, shortly after we recognized the issue of minimal user adoption of digital currency. The payments industry has rapidly changed since that time. There is now tremendous momentum and demand for bitcoin acceptance as an alternative form of payment.

This Joint Venture with First Bitcoin Capital is perfect timing. Bitcoin payments are catching on, and cannabis dispensaries need a solution fast." SinglePoint has previously worked with leading companies such as AT&T, T-Mobile, Sprint and Verizon on technology integration systems that have allowed for a more robust use of communication technology as a payment solution. The company now hopes to use this experience to create a workable solution for weed retailers.

Greg Rubin of First Bitcoin Capital stated: "We are optimistic that our partnership with SinglePoint will produce positive cash flow to our bottom line. Between the two of our companies, we will have the ability to develop a best in class solution, and SinglePoint will be able to help in distribution. We look forward to providing cutting-edge products and services to all states through the establishment of this new venture." “As with the massive and widespread adoption of Bitcoin worldwide, the two companies will pursue opportunities to leverage their payment technology background and develop a proprietary solution specifically for high-risk payment verticals including the cannabis industry.” the press release adds.

The two companies believe they have found a way for a smooth customer experience at the point of sale at weed dispensaries. Using SinglePoints’ technology integration experience and First Bitcoin Capital’s tech background, the company will create an “all-encompassing payment solution” for the retail cannabis industry. The platform will be easy to integrate into the existing point of sale machinery through a simple download. With the retail cannabis industry set to grow quickly in the coming years and the continuing lack of regulatory support at the federal level, it seems like the industry will have to rely on blockchain technology and digital currencies to facilitate easy trade and to securely store its profits.

Chuck Reynolds


Marketing Dept
Contributor

Please click either Link to Learn more about -Bitcoin.

Alan Zibluk Market Hive Founding Member

Jet-coin conference call tonight

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Alan Zibluk Market Hive Founding Member

Bitcoin Break $3,000 Do Not Miss This

The price of bitcoin topped $3,000 for the first time in history today, according to the CoinDesk Bitcoin Price Index (BPI).

If you want to double your bitcoin every 40-50 days then we have a platform for you that you do not want to miss. [Ckick Here] or copy and paste in your browser http://hivepush.com/ekjxanbwtw/1096

After spending much of the last week seeking direction in the $2,700 to $2,900-range, the average price of bitcoin across major international exchanges edged up over this threshold finally at roughly 17:00 UTC.

The new record comes at a time when alternative digital assets are seeing robust inflows, with ethereum's ether token setting a new all-time high of more than $300 today as well.

Indeed, analysts spoke to the ongoing broadening of the cryptocurrency market as a tide that is benefitting bitcoin.

"The inflows into 'alts' are greater than those into bitcoin. In other words, bitcoin is growing at a very nice pace, but non-bitcoin cryptocurrencies are growing even faster," cryptocurrency hedge fund manager Tim Enneking told CoinDesk.

Jehan Chu, managing partner at cryptocurrency fund Jen Advisors, agreed, noting that bitcoin is likely benefitting from new investor interest and the surging interest of "cryptos like ether".

Still, Arthur Hayes, founder of Hong Kong-based digital currency exchange BitMEX, stated that bitcoin is still the "most talked-about cryptocurrency", even as returns become more substantial in other areas of the market.

Hayes told CoinDesk:

"As investors marvel at bitcoin's historical returns and the returns of altcoins, their natural first purchase is bitcoin. Bitcoin has under performed other coins this year, it is now playing catchup."

Investor Sean Walsh largely agreed, pointing to bitcoin's growing price as a sign of its place in the market as the first stop on a road to other assets.

"Bitcoin still seems like the dominant gateway to [alternative digital assets]. So, many first purchase bitcoin in order to then trade their bitcoin for altcoins," he noted.

The development coincides with signs that the cryptocurrency market is maturing to support new inflows and increasing interest.

As noted by CoinDesk research analyst Alex Sunnarborg today, the cryptocurrency exchange market has never been more globally diverse or buoyed by such an array of possible inflows.

Such tailwinds have combined in recent weeks to bring new investor attention to bitcoin, with expectations for bitcoin's growth becoming more and more exuberant. Danish investment firm Saxo Bank went so far as to publish a forecasting report in which it placed the possible value of bitcoin at $100,000 in the next 10 years.

Chris Corey 

CMO Markethive Inc

Charts on mobile device via Shutterstock

Alan Zibluk Market Hive Founding Member

Nevada Becomes First US State to Block Blockchain Taxes

On June 5, the Nevada State Legislature became the first US state to approve a bill which will block local government entities from taxing Blockchain transactions.

This is great news because Thomas Prendergast and I have a trading platform to double your Bitcoin every 40-50 days without recruiting anyone. CLICK HERE We are recruiting top industry leaders right now. Find out how we grew by 110 people in the first day.

Nevada is often recognized as the “silver state” due to its significant silver resources. It is also famous for being the home to Las Vegas, the city of entertainment. A big chunk of its revenue comes from casinos, and money is valuable in this location. For the first time, the state of Nevadahas taken a significant step in paving the way for the continued progress of Bitcoin.

On March 30, Republican Senator Ben Kieckhefer introduced Senate Bill 398 intended to protect Blockchain transactions under the state’s Uniform Electronic Transactions Act.

The bill provides an accurate definition of the Blockchain, stating that it is:

“An electronic record of transactions or other data which is:

  1. Uniformly ordered;
  2. redundantly maintained or processed by one or more computers or machines to guarantee the consistency or non-repudiation of the recorded transactions or other data;
  3. Validated by using cryptography.”

Bitcoin transactions are tax-free

Senate Bill 398, the Blockchain-friendly bill, was introduced by Kieckhefer last March and was approved unanimously by the Senate in April. The move was made right before the moving of the Nevada Assembly in May, whereby it was amended, approved and then turned back to the Senate who confirmed the amendments.

It was then sent to Governor Brian Sandoval whereby it was approved. In regards to the approval, Kieckhefer states:

“The potential uses of Blockchain are limitless, and I’m confident Nevada’s entrepreneurs will find ways to use this technology to innovate and drive our economy forward.”

He added: “I can’t wait to see what comes next.”

Following in the steps of Arizona

This is the second Blockchain-friendly bill that has been enacted into law within the past few days. On May 29, Arizona Governor Doug Ducey signed a bill which recognized the legality of Blockchain’s signatures and smart contracts.

Domino effect

Bitcoin influences and has a domino effect upon every state and company, and this law aims to promote both Nevada and the Blockchain community.

Let us hope that Nevada continues to become a decentralized Blockchain-friendly stateso that the amendments may focus on promoting honesty, integrity, validity and immutability – all of which Blockchain is known for.

One by one, US states are gearing towards the direction of Bitcoin. The digital currency that started small is now instructing the world and providing a path for how the future will grow financially.

The world is adjusting to Bitcoin, something never experienced before in history, and a world centered around cryptocurrencies is the future that we should look forward to.

Transparency and a better economy await with this law validating the legality of Bitcoin.

Chris Corey

CMO 

Markethive Inc

Contributor: Joshua Althauser

https://cointelegraph.com/news/nevada-becomes-first-us-state-to-block-blockchain-taxes#

Alan Zibluk Market Hive Founding Member

Cryptocurrency Investment Manager Seeks $400 Million for New Fund

Cryptocurrency investment manager Tim Enneking is seeking to raise as much as $400m for a new fund.

cryptocurrency new fund for investment

New filings from the US Securities and Exchange Commission reveal that Enneking is launching the "Crypto Asset Fund", registered in the state of Delaware. CNBC first reported the news. According to that filing, no equity sales in the fund have been made. The minimum amount required by outside investors to gain a stake is $5,000, the filing notes.

Enneking told CNBC that the fund will be aimed at investing in a broader subset of digital currencies and blockchain assets. He also said that, as it stands, he has been fielding interest from institutional investors looking to gain a stake in the market.

If you believe that my message is worth spreading, please use the share buttons if they show on this page.

Stephen Hodgkiss
Chief Engineer at MarketHive

markethive.com


Alan Zibluk Market Hive Founding Member

Bitpay Gearing up to Test Extension Blocks

Bitpay Gearing up to Test Extension Blocks

Recently, the Bcoin team released the specifications and particulars for launching extension blocks for a blockchain protocol upgrade. They have now nearly completed implementing these extension blocks. Bitpay’s CEO Stephen Pair responded with an article on April 24 saying that Bitpay would be willing to test these “secondary blocks” on a testnet.  

Also read: Bcoin Developers Plan to Test Scaling Concept ‘Extension Blocks’

Bitpay Gearing up to Test Extension Blocks

Pair said, “The bcoin team has released specifications and working code for the developer community to critique. At Bitpay, we think this idea of extension blocks holds a lot of promise, and we intend to participate in its technical evaluation”.

This news of testing extension blocks comes at a time of great divide within the Bitcoin community over whether Segwit should be activated. Pair suggests that extension blocks could solve the problem because these “secondary blocks” act as a non-contentious hardfork. In a previous article, Pair said that the communities need to avoid initiating a contentious hardfork at all costs. He said:

“One very important challenge we must resolve is how to successfully upgrade Bitcoin in a safe, deliberate and non-contentious manner. And we must be able to upgrade Bitcoin because no organism can live in its own waste products.”

How Secondary Blocks are Non-Contentious; Pair’s Three Step Formulation

This “secondary block” or “extension block” upgrade is non-contentious and will disallow Bitcoin to wallow in its own excrement, because of the manner in which it solves the problem of filled block sizes. In Pair’s previous article, he outlines a three step outline on how extension blocks could be implemented. He said the nodes will acknowledge new rules for these secondary blocks, and thus they will start accepting data.

“In this step, nodes begin upgrading to support the new rules. Nodes will validate and relay valid data that can be included in the secondary block (imagine some new form of transaction, but it could really be any kind of data). These nodes will not relay data considered invalid according to the new rules.”

In phase two, Pair suggests that a second soft fork is performed. However, he mentions instead of adding new rules to the protocol, old blocks will be “deprecated.” This means that transactions will no longer be allowed in the old block.

Finally, in phase three, the protocol will start to shed its old skin and stop rolling around in its own filth. Pair clarified this step, “After the soft fork that deprecates use of the original block has activated, all transactions and data will be in the new secondary block. At this point we can schedule a hard fork that simply drops the old block and adopts the secondary block as the primary block structure.”

Pair seems confident that the “secondary block” or “extension block” plan is the way to go for a non-contentious fork and upgrade of the bitcoin protocol. Of course, others disagree.

Do you think a “secondary block” upgrade is the solution to the scaling dilemma? Let us know in the comments below.


Images via Shutterstock and fintech.nl


At Bitcoin.com there’s a bunch of free helpful services. For instance, have you seen our Tools page? You can even look up the exchange rate for a transaction in the past. Or calculate the value of your current holdings. Or create a paper wallet. And much more.

Chris Corey CMO MarketHive.com

By Sterlin Lujan

April 25, 2017

Alan Zibluk Market Hive Founding Member

Breaking: SEC Will Review Decision of Winklevoss Bitcoin ETF Rejection

Breaking: SEC Will Review Decision of Winklevoss Bitcoin ETF Rejection

The securities and exchange commission has granted a request by the Bats BZX Exchange, Inc. to review its decision of disapproving the bitcoin ETF back in March this year. According to a document signed by Eduardo A. Aleman, Assistant Secretary at the SEC:

“The petition of BZX for review of the Division’s action to disapprove the proposed rule change by delegated authority be GRANTED; and It is further ORDERED that any party or other people may file a statement in support of or in opposition to the action made pursuant to delegated authority on or before May 15, 2017.”

Aleman is the person who, through delegated authority, made the decision on March the 10th which some in the bitcoin community saw as an intentional slap. In a fairly angry article back then, I wrote

“How can one man have so much power? We were told there will be a vote, but apparently, the SEC commissioners didn’t think this decision was important, delegating it to Aleman. Then, what’s the point of the commissioners?… Delegating this decision to a faceless bureaucrat is an insult. For them to hide behind an Assistant Secretary, not even a Secretary, is an intentional slap.

The decision document mentions a specific date, data analyzed by the 28th of February. That’s almost two weeks ago. Could he have not released the decision then? Did he have to allow so much speculation? Was it an intentional insult to the entire bitcoin community for this clearly already long ago made decision to be released at the very last hour? Who knew of the decision before it was released? Did any of them trade the market?”

Aleman’s reasons for rejecting the ETF was because he wanted a surveillance sharing agreement between exchanges and because he said much of the trading was carried out in unregulated Chinese bitcoin exchanges.

The latter part was out of date even at the time of the decision. PBoC has moved in, laying out some red lines for Chinese exchanges. Aleman further said Gemini lacks liquidity, but that’s mainly because traders naturally go to exchanges with futures and margins, two necessary facilities that CFTC continues to deny to regulated American exchanges such as Gemini and Coinbase.

It is surprising, however, that the decision is now to be reviewed. Even more so because the person who rejected the ETF, Aleman, has approved the review of his own decision. It is still too early to say how this review will be carried out, but one thing I hope we can say for sure is that Aleman will have no further part in any of it.

That’s for obvious reasons which do not even need to be stated. One can’t review their own decision in an institutional context. It’s like carrying a judicial appeal in front of the same judge who clearly has already reached a decision against you.

This review should be carried out at the commissioners’ level. To them, I say what I said just a day before Aleman’s decision, a day when I thought it was the commissioners who were to decide, specifically the acting chairman of the SEC:

“Dr. Piwowar, open the doors for business. Welcome innovation. And not by default approval. Stand in front of the world and show that America has two parties, show that this administration means free market capitalism, hail the geniuses who bring new things to this world, lift the spirits of this great nation.”

Chris Corey CMO MarketHive Inc

Andrew Quentson on 25/04/2017

 

Alan Zibluk Market Hive Founding Member

Arbitrage – What it is and how it works

Arbitrage refers to the process of instantly trading one or more pairs of currencies or odds for a nigh risk-free profit.

Usually, this involves two exchanges (this is then called a two-legged arbitrage); although more are, of course, possible.

crypto currency arbitrage

There are several steps when executing an arbitrage:

Find a suitable opportunity
Execute trades
Rebalance accounts

Step 1: Find a suitable opportunity

This step is relatively easy. Simply check the order books of as many exchanges as you like, compare bids vs asks, and check if you can find a negative spread.

A small discourse into what a spread is

I will assume you're familiar with bids, asks and what an order book is – if not, you should definitely look up those first. As for the negative spread, I'll elaborate a bit more on that. The spread is what is used to refer to the difference between bids and asks – lowest ask – highest bid = spread. This should be (and typically is) a positive value, since the best bid at an exchange must be lower than the lowest ask of an exchange – otherwise the matching engine of the exchange would settle these orders automatically.

In a perfect world, all markets and all market participants would have the same information, hence all top bids and all top asks of all exchanges would be the exact same, after fees were applied.

If you've seen the recent US elections, however, you're probably aware that the world isn't perfect, though. Hence, not all participants of a market know the same thing as the others, resulting in bids at exchanges which are higher than the asks at other exchanges – and this is what is called a negative spread.

Step 2: Execute trades

Let's assume you've found an amazing opportunity at exchange A and exchange B – a negative spread of 100$!

Exchange A: Ask 1BTC@450$
Exchange B: Bid 1BTC@550$

Luckily, you have proper funding at both to match these instantly – but how do you go about doing that? Easy! Just place an order on the opposite side at each exchange with the quote's prices!

Exchange A: Place Bid of 1BTC@450$
Exchange B: Place Ask of 1BTC@550$

Since your placed order match an order on the opposite side of the book, the trading engine matches them and the trade is settled, leaving you with a theoretical profit of a smooth 100$! Why theoretically, you ask? I'll get to that point further below.

Step 3: Rebalance Accounts

Unfortunately, you were only able to trade once today, but hey! Tomorrow's another day – but in order to be able to properly trade, you need to even out your balances. Right now, your accounts look like this:

Exchange A: 2 BTC | 50$
Exchange B: 0 BTC | 1050$

Hence, you go about and send 1 BTC from Exchange A to Exchange B, and 550$ dollars to Exchange A from Exchange B. No magic here – all accounts are re-balanced and you're ready to make a fortune again, tomorrow.

Exchange A: 1 BTC | 550$
Exchange B: 1 BTC | 550$ 

Arbitrage – Why everyone's not doing it

This all sounded wonderful? That's exactly what I thought when I first set out with my own arbitrage bot. However, there a some technical aspects that can really turn a sunny day into a poopy rain on your parade.

Caveats and risks

1. It needs to be as close to real-time as possible

This is possibly one of the hardest things to get right, and also the most underestimated aspect of arbitrage in crypto currency. The markets, compared to ForEx trading, are ridiculously slow – at busy exchanges, there may be a couple of dozen trades executed. Which gives the illusion, that polling data for bots via the most common API type, RESTful, is enough to trade risk-free. This is a misconception. Maybe for today this may appear to be enough – but what if markets picked up the pace? just 1 trade (or simply a placed order) within one second can change your opportunity from profit to loss.

2. Always trade limits, never market orders

Under the aspect of being the fastest, it might seem like a good idea to use market orders in order to be settled asap – you'd be terribly wrong. As discussed above, your data could be as old as 1 second (with above mentioned one order messing up your opportunity) – perhaps someone cleared the entire top level and all you're left with is a bid for twice the price you intended. Yikes.

3. REST API call rates make your life hard

Many exchanges employ a API call rate limit – that is, you're allowed to query data at the exchange X times every Y seconds. The differences are wide and nearly every exchange does its own little thing when it comes to limits. The problem with them is, they severely limit your actions. If you don't constantly keep an eye on how often you send a request, you might run into the limit when it seriously counts – for example when you have to cancel an order, because you couldn't place its counter part at another exchange. Unfortunately, websocket APIs are still rare and their brother on steroids, FIX sockets, even rarer – leaving you stuck with the turtle of programmable interfaces.

4. Integration with APIs can be a nightmare

There is no unified, standard definition for what an exchange API can do, or what data it returns. Which technically wouldn't be a problem, if they were documented properly. Incidentally, the exchanges with seemingly many opportunities also have the worst documentation (take btc-e.com's Documentation for example – heresy!). Of course, also the opposite is true – GDAX, Kraken, Bitfinex all have excellent documentation. But nonetheless you have to dig through them to understand how they work, what their rates are, how they handle data types, authentication and so forth. That is, if they even mention anything about that.

5. Fees will minimize, if not eliminate your profits

In my above step-by-step guide, I purposely omitted fees of all kind. But of course, they're essential to successfully arbitraging. The most commonly known fees, are trade commission fees – these range anywhere from 0.1% to 0.6% and need to be considered in Step 1: Find a suitable Opportunity. On top come fees for deposits and withdrawals during Step 3: Rebalancing Accounts. Depending on your preferred pair, these may range from feasible (transferring crypto currencies usually is cheap enough) to quite steep. For example, a deposit / withdrawal at Bitfinex entails the following fees:

Bank wire withdrawal & Deposit: 0.1% of amount deposited/withdrawn, 20$ minimum
And this does not include processing fees of your house bank – for me, for example, that's an additional 10€ for deposits, plus a 1% conversion fee. If you do the math you'll quickly realize that you don't even have to bother starting to trade at Bitfinex, unless you have a really big stack to trade with.

But this does not just apply to BTC-Fiat pairs. Alt-coins suffer a similar fate. In order to make arbitraging worthwhile, you will have to have enough funds at as many exchanges to make trades AND re-balancing worthwhile. And this quickly gets to a point where you realize your last month's savings aren't equipped to get the job done.

To give you a further example on how fees affect your profits, let's take a look back at the example from step 2, this time factoring in all fees. I'll walk you through it. For the argument's sake, we'll pretend to be a european trading BTCUSD at Bitfinex (Exchange A) and Kraken (Exchange B).

Bitfinex: Ask 1BTC@450$
Kraken: Bid 1BTC@550$ These prices are raw- they do not include trade commission fees, not transaction fees. Let's add those….

We'll define a taker fee of 0.25% at both exchange – the taker fee applies whenever you remove liquidity from the order book. Next, let's add deposit & withdrawal fees to the mix. At Bitfinex, we pay a minimum of 20$ for each fiat withdrawal & deposit, or 0.1% of the moved amount (if its more than 500$). At Kraken, we pay 0.09€ per fiat withdrawal, deposits are free. In addition, btc withdrawals cost 0.0005 BTC at kraken, while Bitfinex charges no fees for this. Deposits cost nothing at both exchanges. Furthermore, we can't transfer fiat directly from exchange to exchange – an additional 10€ fee per sent out transaction needs to be facotred in, as well as 1% conversion fee whenever we receive or send fiat from our bank account (2 times total).

Let's list these fees to try and maintain an overview

  1. Profit from arbitrage (bid – fee – ask + fee )
  2. Withdrawal Fee Bitfinex (20$)
  3. Deposit Fee Kraken (0.0$)
  4. Miner Fee for withdrawal at Kraken (0.0005BTC)
  5. Transaction Cost of our house bank (10€) (Bank to Bitfinex)
  6. Conversion Fee of our house Bank (1% of transfer amount x 2)

Let's put some numbers to these:

  1. (550 – 550*0.0025) – (450 + 450 * 0.0025) = 97.5$
  2. Move ~497$ to House bank = 20$
  3. 0.0$
  4. 0.0005BTC * 500$ = 0.25$ # Assuming this is the end of day price of the coin
  5. 10€ * 1.05 = 10.05$
  6. (497 * 0.02) = 9.94$

Which brings us to net profit of: 57.26$ This translates to 42.74% reduction of your originally seen profit.

This is neither a worst, nor a best case scenario – it's merely designed to show you how many hidden fees are involved in an arbitrage. Also, keep in mind that a 22% arbitrage opportunity is practically non-existant.

As a matter of fact, had the spread been anything less than 40$, the fixed fees of our house bank and Bitfinex alone would have made our supposed arbirtrage opportunity a loss.

6. Volatility of coins is your enemy

"No matter where the market goes, arbitrage makes a profit anyway!"

This is true – if your currencies don't tend to drop or rise by 50% within 24 hours. Ideally, both currencies you trade in should be relatively stable, while still showing a certain volatility – no volatility would mean the chart is a flat line, resulting in no opportunities for you.

The problem with pure crypto currency arbitrage (LTCBTC), however, is that Alt-coins can go completely fubar – as opposed to a fiat-based crypto arbitrage (i.e. BTCUSD). A personal anecdote:

When ZEC launched, I was instantly fascinated at the terrible market efficiency and arbitrage opportunities of almost 5% regularly. Hence, I bought in at 1ZEC@1.2BTC, thinking this is probably where market will stay at (at least it's not as bad as the guy who bought a ZEC for 3k BTC). I started arbitraging and immediately increased the amount of ZEC I was holding – completely oblivious to the fact that since I started trading, the price had fallen to 1ZEC@0.1BTC. My ZEC was worth 90% less, and I lost almost half a bitcoin worth of money.

Some volatility is great for arbitrage – too much volatility isn't.

7. Exchanges aren't as technically robust as they ought to be

Most of the time, you will find that smaller exchanges offer opportunities more often than big exchanges. This is in part due to the previously mentioned slow movement of information, but also their (often significantly lower) trading volume. Initially, this may appear like a steal – but there's usually a reason that particular exchange only has the low volume it currently does.

In a time where any one in the world can open up an exchange running on his raspberrypi and Ethereum, trading on the more alternative exchanges can be a serious risk to your investment.

From things like DDOS attacks and overloaded matching engines not matching your orders, to more serious issues like stuck withdrawals due to too low miner fees, or even theft – and the latter is a very omnipresent issue not exclusively affecting small exchanges, as the Bitfinex Heist has shown this summer; the list of potential technical failures is long and you should be aware of these at all times.

Conclusion

I'm aware this answer is overtly negative – this was intentional. Arbitrage, as well as crypto currency in general, is not the quick buck everyone on forums and dubious sites advertising trading bots make you believe. While its inner mechanisms and workings are still quite cryptic* to even the most professional traders (sorry for the pun), even the fabled cryptographic adheres to some basic principles, afterall. The 'quick way to wealth' usually will just end up quickly making you wealthless.

Start by opening up some of the well known exchanges … do not use ones such as localbitcoins .. far too risky. A good one is OKCoin.com as they have a good verification system.

(*) Another great myth is that the chinese dictate the BTCUSD market. There is no empirical proven correlation between chinese and american markets. The only defacto correlation that has been found was that of google searches for bitcoin to btc trading volume – but whether this was positive or negative was inclusive.

If you believe that my message is worth spreading, please use the share buttons if they show on this page.

Stephen Hodgkiss
Chief Engineer at MarketHive

markethive.com


Alan Zibluk Market Hive Founding Member

Trade Coin Club Reviews – Is It A Scam Or A Legitimate Opportunity?

Trade Coin Club Reviews – Is It A Scam Or A Legitimate Opportunity?

 

Trade Coin Club

I found out about this company called Trade Coin Club as I was surfing the web. This company is a fresh new company and as always, I have decided to have a detailed look at their business.

I am sure if you are like me, many of you would also like to know more about this new venture. Even more so, those of you, who are looking to invest in this web MLM business.

To help you guys, I have spent some time researching and prepared this Trade Coin Club Review. I have divided this into company profile, products, compensation plan and finally my thoughts.

Let’s check what I dug up about them!

What Is Trade Coin Club? 

Trade Coin Club may very well be the newest of the online bitCoin based MLM business. As for the domain registration, this company just started its operation in November 2016. I am not scared of being involved in a company in its infancy because if it is a good company I can get a head start. 

Like most of the online businesses similar to this one, this company does not have any information about the company owners, stakeholders or management teams., however, they are licensed as a legitimate trading platform. Another point to note they offer all trades to be logged and viewed in the back office. 

They have registered their domain name for 10 years. 

Products Trade Coin Club Offers

Trade Coin Club does not have any physical or digital products to sell or rent.

After becoming an affiliate member, members can sell or promote memberships of Trade Coin Club. Each member is set up with a trading platform that allows them to have their cryptocurrency ie "Bitcoin" traded against the top ten cryptocurrencies. I like this because of the aligator tooth (the up and down price of Bitcoin) this allows members to not really be concerned about the lack of knowledge of trading because it trades on auto-pilot and they choose the level of risk. High, medium, low. More on this later in the study.

The Trade Coin Club Compensation Plan

You can join Trade Coin Club by signing on for one of 3 available investment plans.

  • Apprentice – Invest 0.25 to 0.99 BTC and receive a 0.35% daily ROI for 8 months
  • Trader – Invest 1 to 4.99 BTC and receive a 0.4% daily ROI for 12 months
  • Senior Trader – Invest 5 BTC or more and receive a 0.45% daily ROI for 12 months

However, you have to pay a 25% fee on your earned ROI every four months. So basically, you are actually earning 75% of their promised ROI.

Affiliate members can also earn referral commission on unilevel structure up to level eight. Your unilevel positions can be filled by both your directly sponsored members and their own sponsored members.

  • Apprentice – 10% on level 1, 3% on level 2, 2% on level 3 and 1% on level 4
  • Trader – 10% on level 1, 3% on level 2, 2% on level 3 and 1% on levels 4 to 6
  • Senior Trader – 10% on level 1, 3% on level 2, 2% on level 3 and 1% on levels 4 to 8

When you advance in affiliate ranks you receive rank advancement bonus.

  • Trader Level 3 – Earn 10 BTC or more in monthly binary commissions and receive a Montblanc pen
  • Trader Level 4 – Earn 50 BTC or more in monthly binary commissions and receive a cruise
  • Trader Level 5 – Earn 100 BTC or more in monthly binary commissions and receive an “international Caribbean travel” cruise
  • Trader Level 6 – Earn 200 BTC or more in monthly binary commissions and receive a Rolex watch
  • Trader Level 7 – Earn 500 BTC or more in monthly binary commissions and receive a Toyota Corolla car
  • Trader Level 8 – Earn 750 BTC or more in monthly binary commissions and receive a BMW 320 car
  • Trader Level 9 – Earn 1500 BTC or more in monthly binary commissions and receive a BMW Z4 car
  • Trader Level 10 – Earn 5000 BTC or more in monthly binary commissions and receive a BMW 18 car
  • Trader Level 11 – Earn 10,000 BTC or more in monthly binary commissions and receive a Lamborghini Huracan car

They also provide residual commissions on binary compensation structure.

Your downline investment volume will be counted every day on both sides of the binary team and you will be paid commissions on the weaker side of your leg. The amount will be dependent on your rank.

  • Apprentice – 8% (capped at 2 BTC a day)
  • Trader – 9% (capped at 10 BTC a day)
  • Senior Trader – 10% (capped at 15 BTC a day)

Additionally, members can earn recruitment commissions through a 3×12 matrix. When an affiliate fills a matrix position they are paid 0.003 BTC a month, as long as each member continues to pay their monthly fee.

So I have researched results from other existing members. A member that I had talked with has earned a documented 174 Bitcoin since December 24, 2016. They were nice enough to show me in their back office and that they have received full withdrawal after the trade period was over. So I do know at this point this is a real trading platform.

To see the company presentation and to make your own decision Click Here

Chris Corey CMO MarketHive Inc

 

Alan Zibluk Market Hive Founding Member

This Is Worth Watching.

The following is a link to April 13, 2017 ( Thursdays ) Bitqyck Webinar. 
Webinars start at about frame 8:03 min.  http://hive.pe/uf  or the link that follows:

https://www.facebook.com/mybitqyck/videos/vb.1234335153282829/1283779645005046/?type=2&theater

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Remember there is no cost to join as an affiliate. There are no monthly fees, no autoship requirements and there is no cost to any merchant that join. 
 

But, the company does have a Firstmover/founder opportunity that will end May 1, 2017. 

This gives an affiliate the opportunity to own a nice amount of Bitqy Coins and company Stock.

BITQYCK Optional -The FirstMover/Founder Option Is As Follows: 
Pkg# 1 $199 = 10,000 Bitqy Coins
Pkg# 2 $349 = 20,000 Bitqy Coins
Pkg# 3 $499 = 30,000 Bitqy Coins
Pkg# 4 $1000 = 66,700 Bitqy Coins With Revenue Sharing From Partner Companies.
** Bitqyck $1000 Founding Packages are Running out **
All FirstMover / Founder Packages end May 1, 2017 

The $1000 Pkg are no longer available. 

Again it is Free to join. Email or Call me if you have any questions. 

You can take action now at my link that follows: http://hive.pe/ua

Ven Dance
worldcommere@gmail.com

626-277-8424

Alan Zibluk Market Hive Founding Member