Category: BitCoin News

100x Group Announces $40,000 Grant to Bitcoin Developer Calvin Kim100x Group Announces $40,000 Grant to Bitcoin Developer Calvin Kim

100x Group the parent company of cryptocurrency exchange BitMEX has today announced a $40,000 one-year grant to Bitcoin developer Calvin Kim.

Kims area of expertise and development was in the area of Utreexo. Within the blog post 100x describe Kim as being instrumental in the development of the first demonstration release of Utreexo.

What is Utreexo?

On the Bitcoin network user balances in wallets are stored as a collection of ‘unspent transaction outputs’ or an acronym you might be familiar with ‘UTXOs’. In terms of size the full Bitcoin blockchain is around 300GB with the UTXO set being 4GB.

Nodes on the network can shed some of the blockchain data. However, with the UTXO’s nodes are required to keep the full set on hand to validate transactions and spend coins. This could be a major bottleneck for Bitcoin in the future.

Utreexo will allow these UTXO sets to be compressed into much smaller sizes with no loss of security. It works with some presumably complex cryptography but the gist of it is that instead of the network being responsible for keeping track of UTXO’s the burden is put on the wallet owner instead.

With Utreexo the holder of funds maintains a proof that the funds exist, and when they wish to spend those funds they provide said proof. This can drastically reduce the size of unspent transactions.

In response to the grant, Tadge Dryja from MIT’s Digitical Currency Initiative, credited with inventing Utreexo, said the following to 100x:

It’s great that 100x is not only funding Bitcoin research and development, but also providing support for newcomers to the Bitcoin open source ecosystem. We at the DCI are looking forward to working with Calvin on improving Bitcoin’s scalability & security, and making Bitcoin the best digital currency we can

Cryptocurrency Options Trading on Deribit Make New All Time HighCryptocurrency Options Trading on Deribit Make New All Time High

Founded in 2015, Deribit is a cryptocurrency derivatives exchange which offers perpetual swaps, futures contracts, and most notably cryptocurrency options. Today it has announced a record day in terms of options trading volume.

On the 27th of July Deribit announced that it had traded over 50000 Bitcoin options contracts with a dollar value exceeding $527 million. What is also noteworthy is that open interest (the amount of outstanding contracts) also reached a new all time high with a notational value of $1.5 billion.

Deribit – BTC Options Volume

Not only did Bitcoin options trading break records but so did Ethereum trading. With a new open interest record of 885,000 contracts equivalent to $281 million.

These new records in trading volume come off the back of an increase in market volatility as it appears that the stagnant market volatility that characterized the market in previous month has dissipated as both Ethereum and Bitcoin push towards new local highs.

BTC/USD

This new options record can give us insight into two things: Deribits dominance of the options market, and the continuing demand for more advanced cryptocurrency derivatives like those found on Deribit.

When we look at the share of total options trading volume we can see that Deribit is miles ahead of the competition.

Bitcoin Options Volume Among top Exchanges

As you can see from the chart above Deribit made up more than 88% of the trading volume. Beating out every other exchange significantly. Including traditional financial giants such as CME.

This new trading record also shows the increase in demand for more complex trading instruments. Your trading product does not do over $527 million in volume by accident it shows true demand. And it seems at the moment that Deribit is the platform to meet said demand.

Google Searches for both Gold and Bitcoin Increase but Gold Takes the ReignsGoogle Searches for both Gold and Bitcoin Increase but Gold Takes the Reigns

As we experience some of the greatest financial turmoil of the last 50 years the global financial system seems to be one tremor away from complete collapse. The largest jump in US unemployment in history, GDP is tanking, the federal reserve is printing funny money, and we are seeing some of the largest fiscal packages ever.

Money Printer go Brrr

Certain subsets of people are beginning to recognize the fragility of the system and are looking for hedges against it. A Bitcoin holder will obviously tell you to buy Bitcoin. While a Gold holder will tell you to buy Gold and then silently suggest you bury the bars in the garden.

But where are people looking in actuality? By looking at Google Trends data we can get some insight.

Over the past 12 months search trends for both ‘Buy Gold’ and ‘Buy Bitcoin’ have remained relatively stable. That is up until the latest financial calamity unfolded. Pictured in red is ‘Buy Gold’. Pictured in blue is ‘Buy Bitcoin’.

Google Search Trends Over 12 Months

When we look over the past 30 days we get a more accurate perception of what is going on in the minds of the masses.

Google Search Trends Over 30 Days

At the start of the month both remained relatively stable. While as Coronavirus gradually infected the financial system both rose. Bitcoin spiked hugely on the 13th of March. Doubling in a day. The 13th of March you may remember as the day Bitcoin fell over 50% in value. It seems that large number of people were interesting in scooping up cheap Bitcoin. Briefly overtaking search interest in Gold.

However as prices Bitcoin prices stabilized while the S&P500 continued to crumble Gold took the reigns and has continued to increase in interest since while Bitcoin interest fell.

Month on month search interest in Bitcoin has increased by 27% while interest in Gold has increased by 50% and current search interests put its 127% higher than Bitcoin.

But what does this tell us? Both assets are being seen as hedges against the system. (Although the Bitcoin price chart does not give that impression) However Gold still remains better at permeating into the mind as the better hedge against the status quo.

To end the article on a more dull note for both gold and Bitcoin fanatics. ‘Buy Stocks’ (Pictured in yellow) still remains the top dog by far.

Bitcoin Hits 15,000$ and 6500$ All Within 5 Minutes as Pricing Errors Hit a Number of Top ExchangesBitcoin Hits 15,000$ and 6500$ All Within 5 Minutes as Pricing Errors Hit a Number of Top Exchanges

Traders are up in arms on Halloween night after a rather ‘spooky’ pricing error hit a number of top cryptocurrency exchanges and trading platforms.

The error is believed to have been caused by Coinbase going offline which put the index pricing of certain derivatives exchange out of line with the actual price. Index pricing is needed on derivatives exchanges such as FTX to ensure that the price of the derivative corresponds to the actual price of the underlying physical Bitcoin.

Perhaps the biggest exchange by volume that was effected is Deribit. Which does close to 500,000,000$ in buying and selling on average a day. The pricing error caused their popular Bitcoin perpetual swap contract to fall 2000$ to 7750$ a Bitcoin.

Deribit in the past few minutes has released a statement saying that trader equity will be brought back to normal levels of 9160$. However trades will not be rolled back. This effectively means traders who used stop losses and/or were liquidated will be refunded.

One slightly smaller derivatives exchanges was also effected by a similar pricing error. That exchange being BTSE which sharply increased in price to 15000$ before whipsawing back to 6500$. Support teams in BTSE’s telegram chat have said all issues are working on being resolved and traders will be compensated. Their market has remained down for 5 hours at the time of writing.