Bitcoin entrepreneur Erik Finman, who became a millionaire by age 18, wants to bring crypto to the masses through a new investing platform called CoinBits.
In fact, Finman is so confident in his concept that he projects he’ll be able to onboard one million customers within the next 12 months.
FINMAN: COINBITS IS BETTER THAN COINBASE
“The goal of the application is to make cryptocurrency not just more accessible, but to make cryptos and blockchain technology tangible and more tactile. I really think a million users within a year is realistic.”
time investments. Users can set up their accounts to match their financial risk profiles.
“Some 98% of the bitcoin are in cold storage, or not kept on online, making them less vulnerable to data breaches, in theory.”
The approach is similar to those used by investment apps like Acorns and Stash, which let you automatically invest spare change from your debit and credit card purchases.
Finman says he wants CoinBits to become “the Acorns of bitcoin,” and in so doing make crypto more accessible to the average person.
“I think so many people have attempted to make bitcoin simple, but I don’t feel like anyone has fully achieved that yet.”
ERIK’S STORY HAS BECOME CRYPTO LEGEND
Erik Finman’s unlikely story of becoming an overnight bitcoin millionaire has become the stuff of crypto legend.
The teen phenom used $1,000 that his grandmother gave him when he was 12 to buy his first bitcoin. At the time, the obscure virtual currency was trading at a mere $12 a token. Six years later — by age 18 — Finman became a millionaire, thanks to bitcoin’s meteoric price spikes.
Not surprisingly, Finman is a bitcoin perma-bull who believes it’s the wave of the future. However, for every bitcoin success story, there are numerous cautionary tales. One example is crypto podcaster Peter McCormack.
As CCN reported, McCormack lost $1 million during the crypto bear market. McCormack started investing in bitcoin in 2016, after the London advertising agency he managed shuttered. He says he started with an initial investment of £5,000 (US$6,400).
As prices rose, he bought up even more BTC. When the value of his holdings spiked to $300,000 in the spring of 2017, McCormack was hooked. Looking back, he admits that he got caught up in the hype and wishes he had taken everything out before the bubble burst.
CRAIG WRIGHT IS SUING PODCASTER PETER MCCORMACK
By December 2017 — when the bitcoin price soared to almost $20,000 — McCormack’s portfolio had ballooned to $1.2 million.
McCormack says media hype of the then-budding crypto market fueled bitcoin mania. Its erratic price swings commanded countless headlines. Like other newbie investors who get rich quick but lack money-management skills, McCormack admits he spent money carelessly.
Fast-forward to today, and Peter McCormack is still a crypto bull. But he has downsized his lifestyle and gets by as a podcaster.
If McCormack sounds familiar within crypto circles today, it’s because he’s being sued by self-proclaimed Satoshi Nakamoto, Craig Wright.
As CCN reported, Wright accused McCormack of defaming him when he called him “a fraud.” In April, Wright filed a libel lawsuit against McCormack, seeking damages of £100,000 (or roughly $130,000).
ErisX goes all hands on deck to launch a Bitcoin Futures market
ErisX’s CSO, Matt Trudeau, detailed the company’s four important plans for the future, which includes launching a spot market, to secure a Bit License, DCO, and to launch a futures market.
ErisX currently has a DCM contract, which is a Derivative Contract Market that allows ErisX to run a CFTC-regulated futures exchange. However, ErisX aims to get a DCO [Derivatives Organization], which will effectively allow it to run a CFTC-regulated clearinghouse. A clearinghouse would mean that ErisX can take control of the custody of the assets and clear and settled trades.
The CSO explained the benefit of this, stating,
“There is some efficiency for firms like producers [like mining companies]; if they need to hedge their inventory or need liquidity on a spot market, they could do that conveniently on a single platform. “
Trudeau added that from the “post-trade standpoint” and “the collateral management standpoint,” ErisX would have cash, crypto, and the futures, all stored in their clearinghouse. This would boost efficiency since it would be available for all customers under a single platform. The CSO added,
“… so there is some efficiency in terms of managing collateral, if you don’t have assets on multiple platforms, it can all be in our clearinghouse.”
Apart from the aforementioned plans, Trudeau added that the crypto-industry needs to mature more and that ErisX plans to make a significant contribution to that. He added,
“The market is professionalizing and we think that in terms of what institutions are expecting from a trading/custody experience, we will bring some of the solutions to the market and that’s really the foundational pieces that they are looking in order to build their businesses on top of us.”
Apart from ErisX, LedgerX has also received a go-sign from the CFTC to settle Bitcoin Futures in Bitcoins. Other exchanges include Intercontinental Exchange’s Bakkt and Seed CX.
Bitcoin’s fantastic run contributes to a new milestone for BitMEX
The cryptocurrency market has been rife with news about Bitcoin, the world’s largest cryptocurrency, and its massive bullish movement. In a matter of just 3 months, Bitcoin has recovered from the bearish zone near the $4000 market, to currently trade near the $12,000 zone.
This price rise has prompted popular figures in the cryptocurrency industry to voice their opinions about the king coin and where it could go from its current market situation. Alex Kruger, a popular economist and analyst, is one of them and he tweeted,
“The hourly bar that marked tonight’s bitcoin $12,972 top had the highest hourly volume in Bitmex’s history. When such high volume prints come after an extended run, they often mark a local top. One could appreciate an intra-day blow-off top on the 5 minute as well.”
Kruger’s tweet comes in the wake of information that suggests that Bitcoin’s trading volume on the popular cryptocurrency exchange had skyrocketed over the course of the past few months. It was spotted in January of this year, when the trading volume found it difficult to breach the $1 billion mark. However, the present price hike has contributed to the volume spiking by a factor of 9 to amass a trading volume of more than $9 billion.
Kruger’s tweet also had comments from other Bitcoin enthusiasts, with @rufus666, saying,
“Gonna wait for Friday when these CME shorters gonna dump the corns they had to buy on spot after weekend rallies to hedge their positions.”
BitMEX had touched another milestone recently after the exchange clocked in a trading volume of a whopping $10 billion. This feat was also marked with requests from the community, asking BitMEX to include margin trading to its fold like the Changpeng Zhao-led Binance.
At press time, Bitcoin was trading at $12,595, on the back of a significant 11.19 percent growth over 24 hours. The cryptocurrency held a market cap of $223.96 billion, and a 24 hour trading volume of 32.23 billion.
Bitcoin’s on-chain/off-chain valuation indicators the key point of focus as coin heads to $13,000
With the rise in Bitcoin’s price, the rest of the cryptocurrency market has followed suit by displaying a green trend across the board. In a recent series of tweets by popular cryptocurrency analyst Adam Tache, users were informed about the top Bitcoin on-chain and off-chain valuation indicators, derived from on-chain valuation models.
The analysis touched on the Mayer Multiple created by dividing the price by the all-important – 200 day moving average. The current average Mayer Multiple stands at a figure of 1.39, which may climb higher. Looking at previous figures, the normal Mayer Multiple figures stated that if the value shoots up to 2.4, then Bitcoin eventually retraces back to a comfortable 1.5. The Mayer Multiple is usually considered as the original indicator used to clock the valuation of Bitcoin.
Another major indicator discussed in the thread was the NVT Ratio invented by Willy Woo, Partner at Adaptive Fund. The indicator is used to calculate Bitcoin’s prominence or value in the cryptocurrency space by evaluating the amount transacted on the blockchain as a “proxy for investment flow and bear and bull market cycles.”
At the moment, the NVT ratio for Bitcoin is in an abnormal region compared to the start of previous bullish patterns. The NVT ratio was above the “bear market” separator, which meant that the cryptocurrency was overbought. When Bitcoin is overbought, it usually means that the buying pressure is much higher than the selling pressure. Adam Tache opined,
“NVT signaling overbought is likely due to a number of factors — namely the proliferation of exchange-based, purely off-chain txs driving short-term price action.”
The analysis also pointed out the liveliness of the Bitcoin indicator created by Tamas Blummer. The indicator showed the inverse count of lost or ‘HODLed’ Bitcoin, while stating that when the ratio increases, long-terms holders of the cryptocurrency decrease their positions. The indicator conveyed accumulation of Bitcoin when the ratio decreased.