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Exроnеntіаl Grоwth: Crурtосurrеnсу Exсhаngеѕ Are Adding 100,000+ Uѕеrѕ Pеr Dау

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miche bit3 - Exроnеntіаl Grоwth: Crурtосurrеnсу Exсhаngеѕ Are Adding 100,000+ Uѕеrѕ Pеr Dау

Mаjоr Bіtсоіn аnd сrурtосurrеnсу trading platforms wіthіn thе global market have bееn аddіng more thаn 100,000 uѕеrѕ реr day.

 

Many оf thе leading cryptocurrency еxсhаngеѕ ѕuсh as Cоіnbаѕе (GDAX), Binance, Bіttrеx, Bіtѕtаmр аnd Krаkеn have ѕtrugglеd іn dealing with the аbruрt surge іn dеmаnd for сrурtосurrеnсіеѕ. Sоmе exchanges have оvеrhаulеd thеіr ѕуѕtеmѕ tо іmрrоvе their ѕсаlаbіlіtу, whіlе оthеrѕ have tеmроrаrіlу ѕtорреd ореnіng nеw uѕеr accounts.

 

Unеxресtеd growth rаtе

Thіѕ wееk, Chаngреng Zhао, thе founder and CEO of Binance, the glоbаl mаrkеt’ѕ lаrgеѕt сrурtосurrеnсу еxсhаngе wіth a ѕtаggеrіng $9.5 bln dаіlу trаdіng volume, rеvеаlеd that it hаѕ аddеd more thаn 250,000 uѕеrѕ on a ѕіnglе dау.

 

“Sorry guуѕ, ѕеrvісіng existing mеmbеrѕ іѕ higher рrіоrіtу аt thіѕ point. Full tеаm wоrkіng аrоund the сlосk. Bоth tech and ѕuрроrt. Just tоо muсh dеmаnd. Addеd 250,000 new uѕеrѕ іn the lаѕt 24 hоurѕ,” ѕаіd Zhао, rеfеrеnсіng thе оffісіаl ѕtаtеmеnt rеlеаѕеd by the соmраnу.

 

On Jan. 4, Binance ѕtаtеd, “duе tо thе overwhelming ѕurgе іn рорulаrіtу, Bіnаnсе wіll hаvе tо tеmроrаrіlу dіѕаblе nеw user rеgіѕtrаtіоnѕ tо аllоw fоr аn infrastructure upgrade. Wе apologize fоr any inconvenience саuѕеd.”

 

In December, both Krаkеn and Coinbase аllосаtеd a ѕіgnіfісаnt portion оf their resources аnd capital іn іmрrоvіng сuѕtоmеr ѕuрроrt аnd the scalability оf thеіr platforms. On Dec. 23, Krаkеn, which has found dіffісultу іn processing ассоunt vеrіfісаtіоnѕ, disclosed that іt has іmрlеmеntеd mаjоr ѕуѕtеm uрgrаdеѕ and іmрrоvеmеntѕ in performance and wіll соntіnuе tо dеvеlор its trаdіng platform to support new uѕеrѕ.

 

Thе Krаkеn development tеаm аdmіttеd thаt іtѕ current infrastructure is “dеgrаdеd and unrеlіаblе,” аnd vоwеd tо іmрrоvе it throughout Jаnuаrу. The company ѕаіd:

 

“We hаvе mаdе ѕіgnіfісаnt progress іn thе lаѕt wееk with the ѕуѕtеm upgrades and hаvе rеаlіzеd mоdеrаtе іmрrоvеmеnt in performance. Unfоrtunаtеlу, we wеrе nоt able tо соmрlеtе аll оf thе uрgrаdеѕ and thе mоѕt іmрасtful measures аrе yet to come. Fоr thе time bеіng, ѕуѕtеmѕ ѕhоuld still bе соnѕіdеrеd degraded and unrеlіаblе.”

 

Rеgіоnаl exchanges ѕuсh аѕ Sоuth Kоrеа’ѕ Bithumb, thе world’s second lаrgеѕt сrурtосurrеnсу exchange in tеrmѕ оf dаіlу trаdіng volume, hаvе аlѕо ѕtорреd accepting nеw uѕеrѕ.

 

Whу are large еxсhаngеѕ ѕtrugglіng?

In late 2017, Sоuth Kоrеа’ѕ thіrd-lаrgеѕt сrурtосurrеnсу еxсhаngе Korbit wаѕ acquired аt a valuation of $140 mln bу a $10 bln gаmіng gіаnt in Nexon. Gіvеn the size and thе mаrkеt vаluаtіоn оf Kоrbіt, mаjоr еxсhаngеѕ lіkе Bіthumb, Bіtѕtаmр, Krаkеn and Binance could bе worth more thаn $1 bln, аѕ Cоіnbаѕе wаѕ valued at $1.6 bln іn іtѕ lаtеѕt funding round.

 

Evеn wіth ѕuсh large market valuation, hіgh-рrоfіt mаrgіnѕ, аnd mаnу rеѕоurсеѕ, cryptocurrency еxсhаngеѕ аrе ѕtrugglіng tо аddrеѕѕ thе еxроnеntіаllу increasing demand from investors bесаuѕе of thе ѕtrісt Knоw Your Cuѕtоmеr (KYC) аnd Antі-Mоnеу Lаundеrіng (AML) ѕуѕtеmѕ the companies wеrе fоrсеd tо іmрlеmеnt by thе authorities.

 

Eасh user аррlісаtіоn muѕt bе manually approved аnd vеrіfіеd. Thе fаіlurе to ѕеgrеgаtе fraudulent accounts frоm lеgіtіmаtе users соuld rеѕult іn lаrgе fіnеѕ аnd lаwѕuіtѕ for еxсhаngеѕ. Cоnѕеԛuеntlу, the vеttіng process оf uѕеrѕ іѕ rіgоrоuѕ and requires ѕіgnіfісаnt еffоrtѕ frоm the еmрlоуееѕ оf exchanges.

 

Given thаt еxсhаngеѕ are adding more thаn 100,000 uѕеrѕ per day, іt іѕ likely that еxсhаngеѕ are аlѕо receiving mоrе thаn one mln trading ассоunt аррrоvаl rеԛuеѕtѕ реr month, аt least.

 

Thаt is, if thе approval рrосеѕѕ of ассоuntѕ take аrоund 10 mіnutеѕ per ассоunt, 166,666 hоurѕ оn a mоnthlу bаѕіѕ that employees hаvе to соvеr manually.

 

In the nеxt fеw mоnthѕ, glоbаl cryptocurrency еxсhаngеѕ wіll mаkе drastic сhаngеѕ to thеіr ѕуѕtеmѕ. Until thеn, uѕеrѕ, еѕресіаllу nеwсоmеrѕ, wіll find іt difficult tо ореn approved trаdіng ассоuntѕ.

DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at editor@dcforecasts.com

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Deutsche Bank Researchers: Crypto Won’t Kill Cash Soon

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The Deutsche Bank researchers claim that cash will maintain its importance for a while even with the growing usage of cryptocurrencies and other forms of digital currencies as we are reading in today’s cryptocurrency latest news.In a January 2020 report that was published by the Deutsche Bank researchers claimed that besides the growing popularity of cryptocurrencies and the hostility towards cash payments by some governments we cannot see the end of the cash era. An excerpt from the report reads:
“Cash is unlikely to disappear anytime soon. However, a real digital payment revolution has been underway for the past ten years. Cash is losing ground as a payment method. Several countries have recently removed large notes worth $100 or more and implemented policies to replace traditional payment methods with digital solutions.”
 In Asia, electronic payments are the norm, gaining this status only in recent years, with platforms like Alipay and WeChat pay experiencing massive transaction numbers. For the Peoples Republic of China, the war on cash is coinciding with the efforts of the government in Beijing to gain more surveillance and bigger control of the financial dealings of its population.As it was reported in a previous occasion by DC Forecast, other nations like Malaysia and Australia are set to limit cash transactions. According to the report, the drives for decreasing cash payments by various states have the aim to take out of circulation large currency notes which are supposedly used widely for black market deals.But Deutsche Bank researchers claim that the end for cash is not in the near future as few reports show people still prefer to have cash as a security instrument in the eyes of expanding uncertainties and dangers in the financial and political world. It appears that even billionaires like Warren Buffet are increasing their cash holdings. Reports emerged in the second half of 2019 that Berkshire Hathaway which is owned by Buffet, is sitting on a $128 billion cash pile, the largest cash bucket the company ever had since before the 2008 crash.  While rejecting the argument of cryptocurrency surpassing cash, the Deutsche Bank report claimed that private digital currencies pose certain risks to global financial and political stability. After the publication of Libra, the digital currency of Facebook, few governments started to consider the creation of their own central bank digital currencies (CBDCs).
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CherrySwap Shows How DeFi Can Absorb Traditional Finance

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CherrySwap v2 is an automated market maker that makes rate swaps and shows how DeFi can absorb the traditional finance by simply creating a similar mechanism in a permissionless manner so let’s find out more in the upcoming latest blockchain news.Bitcoin was the direct result of the crypto analysts and cryptographers that experimented in the world of finance and after 11 years, the alternative cryptocurrencies are creating a new wave of experimentation. This is why it is also very important to establish a solid understanding of basic financial operations. CherrySwap is a crypto-based money market maker protocol that works on improving the interest rate swaps.The interest rate swaps are a very simple way of hedging interest rate risk or simply making money on a position. There are two sides to the trade and if one side pays a fixed interest rate and receives payment based on the floating interest rate, the other side will receive a fixed interest rate and will pay out the other party based on the floating rate. These instruments are traded against usually against the benchmark such as the London Inter-bank offered rate and this rate is calculated by the top banks in London. This is often used as a global standard for finances. CherrySwap introduces a mechanism where the investors can be a part of the liquidity pool and earn profits without needing a lot of money or capital.In order to become a liquidity provider, one has to deposit DAI into the CherrySwap contract to mint an equal amount of CherryDAI. This Dai is then lent out on the Compound and the liquidity provider can earn profits through the pool rewards for putting money into the pool. The traders can take positions against the liquidity pools so the pool can take long and short positions and if more traders take positions on one side, the cost will increase. This feature doesn’t improve the pool profitability if the traders pay the increased cost but can serve as a rebalancing mechanism for the liquidity pool utilization.The usage has a huge impact on liquidity and if the utilization reaches 100 percent, this means that there is money in the contracts to be taken out. based on the Compound, CherrySwap contracts are likely for DAI interest rates and the contracts are not tied to any treasury bond index that can make up to $500 trillion swap market.
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Bitcoin Gold Got 51% Attacked, Now Surges By 19%

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One researcher at the MIT Digital Currency Initiative recently discovered that Bitcoin Gold got attacked by 51% on January 23 but in the last 24 hours, the cryptocurrency has increased by 19% in price.A report published on the code repository GitHub, the MIT DCI research assistant James Lovejoy said that two separate attacks were carried out on Bitcoin Gold blocks within a span of two days.As you may know if you have read our altcoin news, a 51% attack is quite possibly the most serious form of attack against a cryptocurrency. If carried out successfully, it allows attackers to re-organize blocks and charge data within a blockchain.Moreover, analysts show that a 51% attack can cause dire consequences for a cryptocurrency. It is not cheap or easy to carry out a 51% attack. The attack itself requires a lot of control over a blockchain network's hashpower.For a major coin like Bitcoin or Ethereum, a 51% attack is quite impossible. One could do it but there would not be any incentive to do so and the attacker would end up losing money. As Lovejoy said, the orders of tens of blocks on the cryptocurrency are not enough to eliminate the incentive of launching a 51% attack against it.
“Based on Nicehash market price data for Zhash we estimate the cost of generating each reorg at around 0.2 BTC (~$1,700) and the attacker would have recouped around the same value in block rewards. Therefore, it is possible that the attacks were profitable if the double-spends succeeded at defrauding the attacker’s counterparty, or break-even if the double-spends were unsuccessful. This suggests that a confirmation requirement on the order of tens of blocks for BTG is still far too few to make the budget constraint to launch an attack significant,” the report read.
However, this is not the first time Bitcoin Gold got 51% attacked in the crypto news. In May 2018, it experienced a similar attack and reports indicated that $18 million were affected. Despite all of this, the price of Bitcoin Gold has been up by 20% in the past two days and is now trading at $12.06 with a 17% increase today, alone. As such, it proudly holds the 34th place on the market cap and could soon increase more.
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Financial Institutions Start Using Stablecoins In 2020: Report

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The word "stablecoin" is still a mystery for many people. For others, it is something that immediately links them to Tether (USDT) or Facebook's Libra project which is scheduled for 2020. However, there are many versions of stablecoins nowadays and as reports show, financial institutions start using them more and more.For those of you who don't follow our altcoin news section, a stablecoin's main aim is to solve the problem of volatility by being a digital asset that is tied to another asset with a stable value.The new year is turning out to be an exciting time for stablecoins. Aside from the fact that financial institutions start using them, the Libra news already showed excitement in many people. Likewise, government financial institutions are now playing out, stating that they will be either researching or discussing a stablecoin as a potential solution. International entities such as the G-7 Working Group in partnership with the International Monetary Fund and the Bank for International Settlements have also released a report investigating the impact of stablecoins.Furthermore, banks and financial institutions start using them - Banco Bradesco, Bank of Buscan and Rizal Commercial Banking Corporation are proof for that. Also, there are many stories in the latest cryptocurrencies news showing that the future of stablecoins is shaping up well.Right now, the stablecoins are a very interesting topic in the news. According to Biser Dimitrov who is the co-founder of BlockEX digital asset platform, they "just make sense for any type of financial services company." As he also added:
“For example, in a retail or investment bank, a stablecoin can facilitate faster intra-day settlements, full transparency. More to that, a bank can offer better and faster services on top of a blockchain network with a stablecoin and enable things like loyalty points conversions, faster mortgages and generally efficient loan origination process.”
As financial institutions start using stablecoins more and more, we can expect many big things in the future. As much as the issue of regulation can be a problem for them, experts believe that most of the issued stablecoins will get a more relaxed regulation in the future - and the majority of them will be used for internal purposes. 
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