Is the Legacy of Mt. Gox Still Impacting the Price of Bitcoin?

Nobuaki Kobayashi, a Japanese attorney and trustee in the bankruptcy case of Mt. Gox, has stated today that he has sold over $400 million worth of BTC and BCH. Apparently, the sales have been ongoing since September. According to a statement, Kobayashi is selling the digital assets to raise money for creditors who lost out thanks to the early crypto exchange’s insolvency in 2014. The document released earlier also states that he has more BTC and BCH to sell.

Does That Explain Today’s Dip?

According to reports in Bloomberg, Kobayashi has an additional $1.9 billion in tokens left to sell. It is believed that he will consider exchanging them for fiat currency to pay back Mt. Gox creditors in the future.

The case of Mt. Gox caused massive disruption to the cryptocurrency market back in early 2014. According to the official company line, around 850,000 Bitcoins were appropriated from the first major exchange at the hands of hackers. The BTC was worth around $500 million back then. Of course, today they’re worth considerably more.

Following the supposed hack, Mt. Gox filed for bankruptcy protection. They later claimed that they were able to recover around 200,000 BTC but the rest were lost.

The document issued today does not outline how Kobayashi intends to sell the Bitcoin and its derivative, Bitcoin Cash, which did not exist when the funds went missing in the first place. However, he did state that he was trying to get “as high a price as possible”, suggesting that he does not intend to simply dump them on the market.

The news has coincided with a dip in the price of Bitcoin. The most popular digital currency shed around $1,000 off its price in just an hour and a half earlier today. However, based on the length of time that Kobayashi claims to have been selling Mt. Gox’s remaining Bitcoin, it seems unlikely that the abrupt downwards price pressure has been caused by his statement or actions.

A more likely explanation of the drop is the SEC announcement from today. They declared that all cryptocurrency exchanges must be registered with them. A statement from the agency read:

“If a platform offers trading of digital assets that are securities and operates as an ‘exchange’… then the platform must register with the SEC as a national securities exchange or be exempt from registration.”

At the time of writing, the price has returned back above the $10,000 level. Such knee-jerk selloffs in response to any news are common in the space. With so much uncertainty surrounding the future of the emerging asset, the slightest story can panic investors. Similar downwards price pressure occurred after South Korea was simply rumoured to be “cracking down” on cryptocurrency earlier this year. The commotion turned out to be misplaced. The government there were seeking to tackle illegal activities associated with cryptocurrency – which seems much more reasonable.

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Cryptocurrency is the new favourite word for investors and geeks.

It’s one of the most exciting commodities to invest with its high volatile nature belonging to one of the most developing software .i.e. Blockchain.

Over the past 6-8 months, we have seen cryptocurrencies reach to the best of their prices and to the least of their prices as well.

Bitcoin touched $19,000 mark in December 2017, Ripple touched $3.84 mark in January 2018 when Japanese government put their stamp of trust over it.

Other cryptocurrencies like Litecoin, Bitcoin Cash, Ethereum experienced the same heights in 2017.

But after these skyrocketing numbers, cryptocurrency market had a quick fall.

They maintained their momentum at the beginning of 2018 but their prices fell fast and hard after that.

Bitcoin leapt from whopping $19,000 to $7000 and Ripple leapt from $3.84 to $0.76.

In brief, they have had their share of ups and downs in 2017 but what holds in the market for cryptocurrencies in 2018?

Will they soar to their old as well as new heights? Or Will they come crashing down harder and faster this time?

I am sure you have had the same question in the past or whenever you hear Bitcoin, Ripple or Cryptocurrency word in the news it makes you question their existence and their future as well.

We study the cryptocurrency market and here’s our prediction for cryptocurrencies in 2018.

Present Momentum of Cryptocurrencies:

Before we go and discuss what’s in the future of for cryptocurrency, let’s take a look at what’s happening these days in the cryptocurrency market.

After hitting the lowest point of $7,000 over January, Bitcoin is back on a good pace with the current price of $10,209.

On 19th Feb, Bitcoin almost soared to $11,000 when the investors started putting their money and faith back in Bitcoin after the correction of a small technical error.

At this moment, the market capitalization of Bitcoin is fluctuating between $160 Billion to $170 Billion.

Whereas Bitcoin is catching up on its pace, Ripple is a bit behind currently valued at $0.96/ Per XRP.

Other Present Day Prices of Cryptocurrencies:

Currencies Highest Fell to (Lowest) Present Day
Ethereum $1,396 $697 $844
Litecoin $366 $143 $221
Bitcoin Cash $3,831 $784 $1,248

Cryptocurrencies went on to become one of the most expensive commodities of recent times before falling back to normalcy.

But the story doesn’t end here.

They are back on track to become the most expensive trading commodity there is!

And future predictions may have some concerns that you won’t like but the future for Cryptocurrencies seem to be brighter than ever.

Let’s discuss the future and the factors that will affect this new road for Cryptocurrencies.

Future Predictions and Affecting Factors:

Presently, the cryptocurrencies are not at their best or worst.

They are just picking up the momentum but the major hurdle they are facing is the government.

The governments aren’t legalizing the buying and selling of cryptocurrency and they are avoiding these volatile currencies at any cost. They are not ready to accept this unauthorized money exchange where they don’t have any idea about the transactions taking place.

Traditionally all the money you have is either in the bank or invested somewhere and banks are involved in these transactions where they can monitor your movements and your liquidity. They have all the information of one’s fortune.

This is known as the centralized system. Governed by a central authority.

Whereas Cryptocurrencies are decentralized currencies without any entity to govern the transactions. But that doesn’t make it unsafe for investing. A person has to complete a proper verification carried out by the network and are charged with standard transaction fees as well.

Limitations of Cryptocurrencies:

Cryptocurrencies being decentralized currencies where there is no government to manipulate and interfere with your monetary decisions and transactions are prone to many uncertainties as well.

Other limitations that cryptocurrencies presently face – such as the fact that one’s digital fortune can be erased by a computer crash, or that a virtual vault may be ransacked by a hacker.

Even though there are risks in buying cryptocurrencies as of now but in the future, they might not be so volatile.

All the above-mentioned limitations can be overcome in time through technological advances.

The irony of the cryptocurrency market is that they want to keep it decentralized but with the increasing traction worldwide it is possible that they will attract more regulation and government speculation.

Besides this, the merchants accepting cryptocurrencies as a payment option have increased but they are still in the minority part.

For cryptocurrencies to become globally accepted, they have to first gain universal faith and acceptance among consumers. However, their relative complex structure compared to regular currencies can become the reason for its unacceptance.

For cryptocurrencies to be a part of mainstream financial system, they have a long road ahead for them with such different criteria to satisfy.

First of all, It would be a huge challenge mathematically to elude the chances of hacking attacks and fraud and at the same time making it easier to understand and use for consumers.

Other issues they might face are: maintaining decentralized feature but at the same time having proper consumer safeguards and protection. Protecting consumers identification and providing total anonymity can encourage illegal activities like tax evasion, money laundering and steering clear from these can be the biggest challenge.

In regards to the future of Cryptocurrencies, Thomas Glucksmann of GateCoin told CNBC: “Increasing regulatory recognition of cryptocurrency exchanges, the entrance of institutional capital and major technology developments will contribute to the market’s rebound and push cryptocurrency prices to all new highs this year.”

He also added Bitcoin, the biggest cryptocurrency, could be “pushing $50,000 by December 2018.“


While the possibility of Cryptocurrencies skyrocketing again seems higher, there are slight chances that the decentralization feature of cryptocurrencies could cause trouble to the cryptocurrency market in 2018.

But despite these shortcomings, cryptocurrencies have taken the world by storm after 2013 and they have progressed a lot since its conception in 2009.

Recently, BlackRock, an investment giant, mentioned Bitcoin and its chance of being more acceptable globally in their weekly report.

They said, “Our bottom line: We see cryptocurrencies potentially becoming more widely used in the future as the markets mature.”

But at the same time advised keeping away from them if you can stomach complete losses.

These were our predictions for cryptocurrency market in 2018.

What are your thoughts regarding the prices and future of cryptocurrencies?

Do you think that the governments will be able to keep its hands off of cryptocurrency and let it bloom in the future?

Comment below and let us know what you think about the future of cryptocurrencies.

Author Bio:

Sam Makad is a business consultant at BigAI. He helps small & medium enterprises to grow their businesses and overall ROI. He loves to write about topics on customer service, the blockchain, new technology, and marketing.  You can follow Sam on Twitter, Facebook, and Linkedin.


U.S. District Judge Jack Weinstein in Brooklyn ruled that the Commodity Futures Trading Commission (CFTC) has standing to regulate cryptocurrencies as commodities. The financial watchdog first determined that virtual currencies are commodities in 2015.

Cryptocurrencies are commodities

The ruling gives the CFTC the needed authority to bring a fraud lawsuit against Patrick McDonnell, a New York resident charged with cryptocurrency fraud scheme along with his company Coin Drop Markets (CDM).
The CFTC complaint was filed in January, but the defendant tried to use the unregulated nature of cryptocurrencies to have the case dismissed. The federal judge’s ruling will allow the case to go forward.

Moreover, Weinstein entered a preliminary injunction barring McDonnell and Coin Drop Markets from engaging in commodity transactions. The CFTC had found “a reasonable likelihood that without an injunction the defendants will continue to violate the CEA [Commodity Exchange Act].” The ruling stated that;

“The court finds the plaintiff has made a preliminary prima facie showing that the defendants committed fraud by misappropriation of investors’ funds and misrepresentation through false trading advice and promised future profits.”
The judge argued that the CFTC had broad leeway to interpret the federal law regulating commodities, which is enough to legally define cryptocurrencies as commodities.
The CFTC alleges that McDonnell and CDM engaged in a deceptive and fraudulent virtual currency scheme to induce customers to send money and virtual currencies to CDM, purportedly in exchange for real-time virtual currency trading advice and for virtual currency purchasing and trading on behalf of the customers under McDonnell’s direction.
In its continuing civil litigation, the CFTC seeks restitution to defrauded customers, civil monetary penalties, trading bans, and a permanent injunction against future violations of federal commodities laws.
James McDonald, the CFTC’s Director of Enforcement, said:
“This action is among the latest examples of the CFTC’s continuing commitment to act aggressively and assertively to root out fraud and bad actors involved in virtual currencies. As alleged, the Defendants here preyed on customers interested in Bitcoin and Litecoin, promising them the opportunity to get the inside scoop on the next new thing and to benefit from the trading acumen of a supposed expert. In reality, as alleged, customers only bought into the Defendants’ fraudulent scheme. We will continue to work hard to identify and remove bad actors from these markets.”
 There is still lack of consensus regarding the nature of cryptocurrencies and whether they are currencies or commodities, but there is an inclination towards the latter. Late last year, the Central Bank of South Korea announced that they would not consider Bitcoin a currency but rather as a commodity.

Index Funds have always been pretty popular in the financial sector. They offer a lot of advantages, especially for unaccredited investors. Coinbase, one of the world’s biggest cryptocurrency exchanges, is looking to launch such an Index Fund soon. This is a positive development for the cryptocurrency industry as a whole.

Why Index Funds Are a Good Thing

For those unaware, Index Funds have been around for quite some time now. Their main benefit is how they offer investment opportunities for less wealthy investors around the world. This does mean such a vehicle will be accessible to more people than just the traditional wealthy individuals. In the case of cryptocurrency, allowing more people to be exposed to these markets is only a good thing.

Another benefit of Index Funds is how they offer lower transactions costs, which is always a good thing. Regardless of which amount you are investing, lower costs are always a benefit. Especially when venturing into multiple assets or markets, any way of lowering costs is a positive thing. One needs to keep in mind there is always a commission cut to contend with as well. Higher costs mean you need to make more profit before actually increasing your portfolio’s net wealth.

Moreover, most Index Funds use a minimal turnover structure. This means it is a great tool to benefit long-term investors. In the world of cryptocurrencies, going the long-term route is always the best course of action. It will be interesting to see how Coinbase decides to tackle this business model exactly.

Coinbase Has Big Plans

It became evident Coinbase wants to get involved in the Index Funds market very soon. As such, the company may bring a lot more positive interest to the cryptocurrency space. Opening up this market to a lot of smaller investors will undoubtedly result in positive market traction. Right now, all cryptocurrencies are stuck in the dirt a bit as not enough fresh capital is entering the market.

Making the cryptocurrency ecosystem more appealing to investors has been a challenge. The launch of Bitcoin futures has not generated the buzz most people expected. Things are still heading in the right direction in this regard, though. Overall, the uptake of this new investment vehicle has been a lot slower than people would like it to be. With these volatile markets, it is only normal bigger investors will remain wary first and foremost.

These new Coinbase Index Funds can mean positive things for the industry as a whole. Exposing more people to this innovative form of digital money is always a double-edged sword. More investors will undoubtedly lead to more speculation as well. For now, we have to wait and see how Coinbase will move forward in this regard. The company has yet to unveil the specific details of their new venture.

Ripple makes the news almost every couple of days however the price of its cryptocurrency, XRP, just cannot gain traction at the moment. Partnerships keep coming and the San Francisco company’s network keeps expanding. This week’s announcement is a new smartphone application to enable on-demand payments for Japanese banks and their customers.

The announcement was made yesterday on the company blog. It stated that the Japan Bank Consortium, already RippleNet partners, will be releasing an app called ‘MoneyTap’ later this year. The app is a first of its kind operating with multiple banks; it will allow bank customers to make transactions instantly, 24 hours a day, seven days a week.

Bank Transfers Revolutionized

SBI Ripple Asia heads the 61 member bank consortium which accounts for 80% of all banking assets in Japan. The Ripple blockchain powered app will revolutionize domestic payments within the country which are currently limited to office and banking hours on weekdays only.

MoneyTap will work with a bank account, phone number, or QR code and will offer high speed, low cost transactions, eliminating much of the time and expense with existing transfer protocols.

Takashi Okita, CEO of SBI Ripple Asia said;

“We are proud to leverage Ripple’s blockchain technology through our new mobile app, MoneyTap, to improve the payments infrastructure in Japan. Together with the trust, reliability and reach of the bank consortium, we can remove friction from payments and create a faster, safer, and more efficient domestic payments experience for our customers.”

RippleNet has over 100 partners already utilizing the xCurrent transfer system and several others using or testing the XRP powered xRapid system. Director of joint venture partnerships at Ripple, Emi Yoshikawa, said;

“The release of the MoneyTap mobile app shows Ripple’s continued commitment to provide its partners across Asia and the world with blockchain-powered solutions that dramatically improve the customer payments journey. We’re proud to provide this production-ready technology that not only improves the international payments experience, but also have applications for domestic payments infrastructure.”

As with previous partnership announcements and company developments XRP’s price has not reacted and is still in decline with all of its crypto siblings. The altcoin enjoyed a fomo induced spike back to $1.05 a couple of days ago when the Coinbase listing rumors appeared again but has since tumbled back to its previous level at just over $0.90. Investors have been left wondering why Ripple’s cryptocurrency is not performing as well as the company is.

Tim Draper who has been investing in future technology since the earliest days of the web said that in five years no one will be trading with fiat currency. The legendary investor and prognosticator of where technology is taking us sat down with CNBC’s Fast Money to talk about the future of Bitcoin and blockchain technology.

Greatest Technological Change

Draper said the shift that is happening in technology today is bigger than the iron or bronze age. When asked how he compared the opportunities now to when he was investing in web 1.0 and 2.0 he talked about how the web transformed information. But now blockchain technology has the potential to change almost every industry including the way government works.

He sees individual governments breaking down in the future to become a group of international entities that will compete by supplying their services to citizens.

When asked to compare where blockchain development is now as compared to the way the internet was developed, he put the timeline at the early eighties for investor potential, saying “it is all just getting started.” “This is the most excited I’ve ever been as an investor, and I was right there at the beginning of the internet,” he added.

Talking about the future of currency Draper stated that in five years fiat currency will be a thing of the past. There will be no more currencies linked to specific countries.

“In five years you’re going to walk in and try to pay fiat [a government-backed currency like the U.S. dollar] for a Starbucks coffee, and the barista is going to laugh at you, because they’re going to say, ‘What is this? Are you counting out pennies? Give me shells?’

Whether Draper knows this or not, Starbucks has indicated that it may use blockchain technology for an application that will process consumer payments in cryptocurrency.

The End of Fiat Currency

When asked what he would do with a fresh dollar for investment, whether that would be for an ICO or existing currency, Draper directly talked about the dominance of Bitcoin in the future. That he saw other cryptocurrencies falling away leaving Bitcoin as the standard.

He ended by talking about the Bootcamp he is launching in April at his Draper university to encourage learning and investing in Bitcoin and cryptocurrencies. “Because all of this engineering effort, all that excitement, this focus is really on bitcoin and all of the cryptos around it,”

Draper, who is known to have predicted when Bitcoin would hit the $10,000 mark almost to the day, was an early investor in Skype and Tesla. He bought and is still holding 30,000 Bitcoins from the 2014 US Marshals Service auction of assets seized from the Silk Road.

The world of cryptocurrency has seen many intriguing changes. Currencies are created out of thin air, whereas some of them are effective “forks” of others. In the case of Bitcoin Private, it is safe to say this is a fork of a forked currency that was also forked from Bitcoin. Not necessarily something that makes a lot of sense to people.

Too Much Forking Action

On paper, there is nothing wrong with forking existing cryptocurrencies. In most cases, this is done due to technical disagreements or a completely different vision. Bitcoin has seen its fair share of forks, although only one of them has effectively succeeded so far. Bitcoin Cash is, by far, the most stable forked off Bitcoin on the market. However, this trend of forking Bitcoin goes back for quite some time.

People who keep a close eye on privacy-oriented currencies will know about ZCash. This privacy-oriented coin has made some great headlines over the past 18 months. It is not an anonymous currency, though, as it lacks all necessary traits to achieve that goal. Few people are aware of how ZCash was effectively created. It is a Bitcoin fork at its core, with different features added on top of it. As such, it derives from the original Bitcoin “path” right away.

ZCash has seen its own forked currency, known as ZClassic. It removes some aspects of ZCash and replaces them with other solutions. As such, ZClassic is – in theory – based on Bitcoin, but it is even further removed from the original currency than its own predecessor ZCash. Hence, a fork of a fork is created, which is already confusing to most novice cryptocurrency enthusiasts.

What About Bitcoin Private?

Here is where things get really interesting. Bitcoin Private is a so-called Bitcoin fork, yet it does not derive from that code base directly. Instead, it is a fork of ZClassic. This means we are now dealing with a fork of a forked currency, which also forked from Bitcoin. It is quite confusing, as it seems Bitcoin Private has even less to do with Bitcoin than either ZCash or ZClassic do right now. Even so, the developers choose to use the term “Bitcoin” as part of their brand.

Moreover, it seems Bitcoin Private caused some big market spikes for ZClassic. Its value has skyrocketed and then crashed once Bitcoin Private went live. The free airdropped tokens to ZCL holders are probably the main reason for this development. Once people got the currency they actually wanted, they sold ZCL back on the open market to crash its price altogether.  As such, ZCL is now back to its pre-fork prices.

The main question is whether or not Bitcoin Private is a threat to BTC itself. Right now, that does not appear to be the case, but things can change quickly. It also means we have another currency with “Bitcoin” in the name to deal with. For novice users, Bitcoin Private will only add more confusion and unnecessary friction. For now, we will have to wait and see how things play out in this regard. A fork of a fork of a fork is not necessarily a positive development.