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Things Small Businesses Should Do to Succeed with Inbound Marketing

Things Small Businesses Should Do to Succeed with Inbound Marketing

Small business marketing has turned a corner, and traditional outbound marketing efforts such as direct mail, TV ads, and telemarketing are becoming less and less effective. In fact, 86 percent of people skip TV ads, more than 200 million Americans are on the do-not-call list, and 90 percent of execs ignore cold calls. Consumers are in control. They can tune out your marketing efforts and search online for products and services. To capture their attention, small businesses need a more effective permission marketing-based strategy to attract, engage, and convert more visitors into lifelong customers.

Inbound marketing utilizes that permission-based approach, reaching people organically through SEO, blogs, and social media. Instead of interrupting consumers with cold calling and ads, inbound marketing leverages captivating content that solves a real problem for your target market, ultimately guiding potential customers directly to your website where you can pull them into your sales process. And it really works. Inbound marketing delivers

54 percent more leads than traditional marketing at much lower costs.

           

So how can your small business tap into inbound marketing

to capture and convert more customers without spending more money? Here are a few things you should do to make inbound marketing work for you:

Develop your content strategy

The first step to an inbound marketing strategy is to provide valuable content to your audience. Think about who your ideal customer is and understand their needs, wants, and interests to create the content that drives inbound marketing for your small business.For example, Marcus Sheridan, owner of River Pools and Spas, stopped investing in ads and direct mail and instead started blogging and distributing content that answered his audience’s burning questions about inground pools. By positioning his business as a thought leader in the inground swimming pool industry, Sheridan was able to cut costs associated with outbound marketing and drive more traffic to his website than any other pool website in the world.

Build your social media following

Once the content is created, it needs to be released in engaging and entertaining ways that encourage sharing. Creating a quality social media following is one of the most impactful ways to spread content. Through market research, you’ll find that your audience gravitates towards certain platforms and tends to engage with social media at different times of the day. Once you’ve settled on the two or three main social media channels you’re going to use to distribute content and interact with your audience, social media tools can help you organize and intelligently time distribution.

Much like the shift from outbound to inbound marketing, the way we post has changed. Research has shown that visually stimulating posts are drastically increasing. Short videos, pictures, and infographics are much more likely to be viewed and shared. In fact, photos and videos will soon account for almost

70 percent of content published on Facebook.

The variety of visual options

also, means that content can be reformatted and recycled. For instance, a popular infographic can be transformed into a whiteboard animation video without having to start from square one.

Capture prospects with form submissions

Attracting and engaging interest from prospects is only the first step in converting customers and fueling sales. When content is trusted and is viewed consistently, it becomes easier to create leads by using resources and form submissions. When prospects view the website is an excellent opportunity to get their information by offering additional content or an email subscription to be updated with content. To acquire this information, send prospects to a landing page where they will enter their personal details (such as name and email) to access a stream of quality content they’ll find useful or engaging.

There are numerous programs and companies that offer automated email response systems to streamline this process. These systems can also collect information, tracking clicks as well as the types of emails each prospect has been most responsive to. Using this information, targeted emails can be sent to the most engaged prospects converting them into customers.

Nurture prospects into customers

Whether your inbound efforts generate leads from social media, organic search, or your blog, lead nurturing can help you get a higher return on investment (ROI) from your inbound marketing efforts by turning more leads into customers.

Not everyone is ready to become a customer after interacting with your content, but email marketing can help you continue to educate prospects and keep your business top-of-mind when the time does come for them to buy.

Small business marketing automation and customer relationship managed software provider, Hatchbuck, advises that small businesses nurture new leads with a series of touchpoints. As contacts are nurtured, the actions they take can indicate their level of interest and readiness to buy. Actions such as visiting a link, watching a video, or filling out a form can impact lead score so that marketers can systematically determine when

A lead is ready to be sent to the sales team.

  

With lead nurturing,

instead of burning through every lead right away only to have few convert, your business can nurture them over time, increasing your conversion rate. If your company hasn’t invested in inbound marketing, it’s time. It’s been shown that adopting inbound marketing strategies doubles website conversions rates from 6 percent to 12 percent. The future of marketing will rely heavily on creating trust and relationships with customers through content and getting found through inbound channels such as SEO, blogs, and social media.

Chuck Reynolds
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Alan Zibluk Market Hive Founding Member

Inbound Marketing

Inbound Marketing

Inbound marketing creates a platform for companies to emerge as trusted solutions.

Our POV

Inbound marketing is holistic, data-driven, and customer-focused. Marketing is more than promotion. A well crafted inbound marketing execution enhances every online touchpoint of the customer experience. It approaches a visitor with information that is helpful, not intrusive. A holistic, data-driven, and customer-focused marketing strategy attracts visitors with engaging content. It converts visitors into qualified leads. It closes leads into customers. It delights customers with remarkable experiences.

Marketing Services

  • Marketing Plan Development
  • Persona Development
  • Social Media Strategy & Management
  • Email Marketing
  • Content Planning & Development
  • Lead Generation
  • Automated Lead Nurturing
  • Search Engine Optimization (SEO)
  • Social Listening
  • Lead Segmentation
  • Google AdWords Strategy & Management
  • Infographics
  • Survey Development & Analysis
  • Long-Form Copywriting
  • Social Advertising
  • Website Analytics
  • Conversion Rate Optimization
  • Graphic Design
  • Campaign Creation
  • Goal Setting & Benchmarking
  • Sales Playbook & Development
  • Social Analytics
  • ROI Modeling
  • Customer Lifetime Value Analysis
  • Copy Editing

Holistic

Inbound marketing is multi-channel by nature. It approaches customers through the channels that they want to be found on. Every company will play on a different online field. We make it our goal to translate a consistent message on every platform. In return, our clients emerge as thought leaders in their industries. Our holistic marketing process optimizes every online channel and creates a hole-proof platform for companies to stand out online.

Data Driven

Strategic marketing decisions arise from consistent analysis of data. All inbound marketing tactics are quantifiable. We use data to help us make decisions for our clients from the very beginning of working with them. Data determines what, where, and how we will publish content. It justifies marketing campaigns and motivates us to continuously optimize the channels our clients are competing on.

Customer Focused

The customer is at the center of every strategic marketing decision. Customers want to be heard. The digital space creates a platform to hear their voices and cater content to what they are looking for. A successful marketing strategy nurtures customers through every stage of the buyer’s journey. Our inbound marketing strategic process develops robust buyer personas for each of our clients. We believe in continuously learning about the audiences we are speaking to.

Chuck Reynolds
Contributor
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Inbound Marketing.

Alan Zibluk Market Hive Founding Member

Movers & Shakers: Anna Braun, JT Mega, director of business development

Movers & Shakers:
Anna Braun, JT Mega, director of business development

             

ANNA BRAUN – Director of business development

Anna Braun is helping to build a course for future growth as director of business development at Minneapolis-based food advertising agency JT Mega. Braun said the agency has been interested in adding leadership to build on its strong organic growth, which led to the creation of the new role that she has taken. "The thing that's exciting about JT Mega is there is so much opportunity for continued smart growth," Braun said. "To work with a great foundation and start carving out what some of the next business opportunities look like is really exciting to me."

Braun's responsibilities also include developing new business strategy, leading business acquisition efforts and establishing industry relationships. She previously led brand business initiatives as a marketing manager at Polaris and worked as an account supervisor at Periscope. "I really love the combination of business management and agency creativity and agency strategic work," Braun said. "For me, this role is a perfect mix of that."

JT Mega, founded in 1976, is an independent agency whose clients include Hormel Foods, Land O'Lakes, and the Schwan Food Co.

Q: What's driving the agency's focus on business development?

A: It's been on the forefront of the owners' and the leaders' minds here. They realized that as organic growth opportunities were coming there's a big opportunity for someone to come in and be able to focus specifically on this (new business) effort and help lead that. This industry is changing so rapidly and there's a lot of growth in different areas within the business. You see where the industry is going and now it's: "How do we proactively start carving out space where the industry is growing?"

Q: What are some possible growth areas?

A: The two areas of focus are absolutely expanding our foundation in food service and building on the retail space. We work a lot with clients selling into K-12, into the commercial space. A handful of clients sell directly into retail and direct to consumers. We're looking at where some opportunities in the retail space that would make sense for us.

Q: Why should a company work with JT Mega?

A: We work as an extension of the client's team, bringing a different point of view to the table. We understand the nuances of what it means to be in the [food and beverage] industry. The other thing is our scalability. We work with small, medium and big companies both in the B2B and B2C space. That's something that we really enjoy especially with how quickly this industry is evolving.

Chuck Reynolds
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Inbound Marketing.

Alan Zibluk Market Hive Founding Member

The technology and economic determinants of cryptocurrency exchange rates: The case of Bitcoin

The technology and economic determinants of cryptocurrency exchange rates: The case of Bitcoin

  

We theoretically discuss the technology

and economic determinants of the Bitcoin exchange rate We use the ARDL model with bounds test to address co-integration of a mix of stationary and non-stationary time series We find Bitcoin exchange rate relates more with economic fundamentals and less with technology factors as Bitcoin evolves We find the impact of computational capacities on Bitcoin is decreasing as technology progresses

Abstract

Cryptocurrencies, such as Bitcoin, have ignited intense discussions. Despite receiving extensive public attention, theoretical understanding is limited regarding the value of blockchain-based cryptocurrencies, as expressed in their exchange rates against traditional currencies. In this paper, we conduct a theory-driven empirical study of the Bitcoin exchange rate (against USD) determination, taking into consideration both technology and economic factors. To address co-integration in a mix of stationary and non-stationary time series, we use the autoregressive distributed lag (ARDL) model with a bounds test approach in the estimation. Meanwhile, to detect potential structural changes, we estimate our empirical model on two periods separated by the closure of Mt. Gox (one of the largest Bitcoin exchange markets). According to our analysis, in the short term, the Bitcoin exchange rate adjusts to changes in economic fundamentals and market conditions. The long-term Bitcoin exchange rate is more sensitive to economic fundamentals and less sensitive to technological factors after Mt. Gox closed. We also identify a significant impact of mining technology and a decreasing significance of mining difficulty in the Bitcoin exchange price determination.

Xin Li

is an associate professor in the Department of Information Systems at the City University of Hong Kong. He received his Ph.D. in Management Information Systems from the University of Arizona. He received his Bachelor's and Master's degrees from the Department of Automation at Tsinghua University, China. His research interests include business intelligence & knowledge discovery, social network analysis, social media, and applied econometrics. His work has appeared in the MIS Quarterly, INFORMS Journal on Computing, Journal of Management Information Systems, Decision Support Systems, Journal of the American Society for Information Science and Technology, ACM Transactions on Management Information Systems, IEEE Intelligent Systems, among others, and in various conference proceedings.

Chong Wang

is an assistant professor in the Department of Information Systems at the City University of Hong Kong. He received his Ph.D. in Information Systems from the Hong Kong University of Science and Technology. He received his Master's degrees from the Department of Finance at Tsinghua University, China, and his Bachelor's degree from the Department of Applied Mathematics at Peking University, China. His research focuses on understanding the social and economic impacts of information technology. His research projects cover topics in the areas of online social networks, crowdsourcing platforms, and financial information technologies. His work has appeared in the Information Systems Research, Journal of Management Information Systems, Decision Support Systems, and in various conference proceedings.

Chuck Reynolds
Contributor
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Alan Zibluk Market Hive Founding Member

After WannaCrypt, world faces massive cryptocurrency attack

After WannaCrypt, world faces massive cryptocurrency attack

"Adylkuzz attack" for cryptocurrency began on or before May 2, more than a week before "WannaCry" that hit 150 countries, including India

  An alternative to Bitcoin, cryptocurrency is being used for trading in drugs,

stolen credit cards and counterfeit goods. After facing a massive “WannaCrypt” ransomware attack that exploited a vulnerability in a Microsoft software and hit 150 countries, the same Windows vulnerability (MS17-010) has also been exploited to spread another type of malware that is quietly but fast generating digital cash from machines it has infected.

According to a report in The Registrar on Wednesday, tens of thousands of computers globally have been affected by the “Adylkuzz attack” that target machines, let them operate and only slows those down to generate digital cash or “Monero” cryptocurrency in the background. “Monero” — being popularized by North Korea-linked hackers — is an open-source cryptocurrency created in April 2014 that focuses on privacy, decentralisation, and scalability.

It is an alternative to Bitcoin and is being used for trading in drugs, stolen credit cards and counterfeit goods. “Initial statistics suggest that this attack may be larger in scale than WannaCry[pt], because this attack shuts down SMB networking to prevent further infections with other malware (including the WannaCry[pt] worm) via that same vulnerability,” US-based cyber security firm Proofpoint researchers were quoted as saying in the report.

How a cryptocurrency attack works?

The hackers need to mine cryptocurrency using computers/computing devices (IoT included). “Mining of cryptocurrency simply means solving complex cryptography problems designed within the algorithm of a cyber-currency that requires a lot of computing,” Saket Modi, CEO and Co-founder of Delhi-based IT risk assessments provider Lucideus, told IANS. To draw a parallel, there can only be 21 million Bitcoins that can be mined out of which 16 million have already been mined, informed Modi. “Monero”, on the other side, is slightly different than Bitcoin but for simplification’s sake, it can be assumed that it follows a similar architecture and similar mining process.

“Hence, there is a new wave of cyber attacks where the hacker is least interested in the personal information of the victim and instead his only motivation is to gain access to the CPU of the victim’s computer/mobile/IoT device so that they can use it to mine more currencies (and correspondingly make more money),” Modi told IANS. This looks like something more dangerous than “WannaCrypt” as the victim doesn’t come to know that they have been hacked, but, on the other side, “the good part is that the hacker here is not interested in the victim’s personal data,” Modi told IANS.

To achieve this, the hackers find a vulnerability in one of the servers in the targeted organization or they would infect a website which employees of a targeted organization often visit. “They would then infect the IT infrastructure of the target with malware and would identify where a server running SWIFT software is installed. They would download additional malware to interact with SWIFT software and would try to drain the organization’s accounts,” Altaf Halde, Managing Director of Kaspersky Lab (South Asia), told IANS. According to Proofpoint, the “Adylkuzz” attack is still growing.

“Once infected through use of the ‘EternalBlue’ exploit, the cryptocurrency miner ‘Adylkuzz’ is installed and used to generate cybercash for the attackers,” Robert Holmes, Vice President of products at Proofpoint, was quoted as saying. According to experts, the “Adylkuzz” began its attack on or before May 2, more than a week before “WannaCrypt” arrived and hit 150 countries, including India. “Indications are that the crooks behind ‘Adylkuzz’ have generated a lot more money than the ‘WannaCrypt’ ransomware fiends,” The Registrar report noted. According to cyberscoop.com, “Monero” doubled in price over the last month to around $23 while other digital currencies, including bitcoin, saw a mixed month. “Cybercriminals intrigued by the currency’s promises of greater anonymity are using it more often on black markets,” it said.

How to save your organizations from cryptocurrency attacks?

“If your organisation has software tools for conducting money transactions like SWIFT software, invest into additional protection and regular security assessment in addition to standard protection measures implemented in all other parts of the organization’s network,” Halde informed. Protect backup servers as they contain information that can be of use for attackers: passwords, logins, and authentication tokens. “When deploying specialized software for money processing follow recommendations and best security practices from your software vendor and security professionals,” Halde added. In a case of suspicion of intrusion, request for professional assistance with incident response.

Chuck Reynolds
Contributor
Please click either Link to Learn more about TCC-Bitcoin.

Alan Zibluk Market Hive Founding Member

Top Reasons Why Bitcoin’s Price is Rising Right Now

Top Reasons Why Bitcoin’s Price is Rising Right Now

While Bitcoin’s market has been uncertain in the past week,

there is no doubt that the price is holding support surprisingly well. Even though there are quite a few issues that are hindering Bitcoin’s growth, there are also other events which are contributing to the cryptocurrency’s global adoption. This article will discuss the top 3 reasons why Bitcoin’s price is currently rising.

 Wanna Cry Ransomware

I am sure you have heard of the recent world’s largest ransomware attack by the name of Wanna Cry, aka Wana Decryptor. The aggressive ransomware has infected over 200,000 machines and so far has collected over $80,000, according to @actual_ransom – a twitter bot set up to track the ransomware. While it is unfortunate that Wana Decryptor has plagued cyberspace, its coverage in the media has brought attention to Bitcoin, the only payment method accepted by the malware. Furthermore, the fact that the ransomware attack began amid Bitcoin’s price rally only contributed to the positive momentum, which is probably why the current support at $1700 is holding so strong.

Even though using a ransomware to spread awareness about Bitcoin might not be beneficial to the cryptocurrency’s reputation, the idea that Bitcoin is used by criminals is not a new revelation by any means. Most people who know about Bitcoin already know that it is used on dark net markets for illicit purposes, so any more news about it being used by criminals most likely won’t have much of an affect on the market.

The Flippening

Altcoins existed ever since Bitcoin’s creation. Up until this year, they have been considered second-rate projects as they were perceived to be simply clones of Bitcoin. However, as Bitcoin’s scaling debate intensified and users sought a solution, alternative cryptocurrencies started to flourish. The Flippening is a paradigm shift where investors are starting to look at altcoins as having value in different ways compared to Bitcoin. While at first that may seem like bad news for Bitcoin, the whole ecosystem shares the benefits.

While Bitcoin’s dominance among altcoins is dropping, according to cornmarket cap, cryptocurrencies’ overall market cap has been rising exponentially, it benefits Bitcoin as well. Just like altcoins benefited from new money flowing into Bitcoin, BTC benefits from the curious investors interested in the cryptocurrency niche as a whole.

Japan’s Adoption

Last but not least, one of the biggest driving forces behind Bitcoin’s meteoric price rise is Japan’s adoption and legislation of crypto. After passing official KYC / AML laws regulating exchanges in Japan, the government essentially green-lighted the legal operation of cryptocurrency exchanges.

The new legislation increased Bitcoin’s popularity in the country and also invited Chinese investors who were looking to escape the country’s tight grip on the sector. In fact, withdrawals for Chinese exchanges have been suspended for a few months now. There is a light in the tunnel as the PBoC released a statement which hints that withdrawals may resume soon. While there is no definitive date, rumors have it that things may settle in June. Chinese news resource cnLedger had the inside scoop.

Chuck Reynolds
Contributor
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Alan Zibluk Market Hive Founding Member

Bitcoin to rocket to $4000 as blockchain infrastructure sets agenda for cryptocurrencies

Bitcoin to rocket to $4000 as blockchain infrastructure sets agenda for cryptocurrencies

ANALYSTS say the cryptocurrency Bitcoin could hit values of $4000 within the year after a new player entered the market.

  

The introduction of Litecoin,

another electronic online currency is adding to investor appetite as the rolling out of blockchain infrastructure gets set to revolutionize the future of the financial sector. Bitcoin has been making gains since April and is rallying in London has risen over 33 percent days, according to the Coindesk bitcoin price index. It comes after Price Waterhouse Coopers (PWC) and the World Economic Forum looked at how cryptocurrencies can be aided by distributed ledger technologies.

Bitcoin is leading the cryptocurrency market

It is better than currency because you don't have to be in the same place and of course for large transactions currency can be inconvenient

Bill gates

Global regulatory challenges continue to affect the market with a test case before The US Securities and Exchange Commission (SEC) throwing up some new challenges. A bitcoin exchange-traded fund (ETF) proposed by Cameron and Tyler Winklevoss was declined by the US sector watchdog as Donald Trump looks at deregulating markets. However, the sector is gaining appeal, particularly in Japan, which legalized cryptocurrency as a payment method recently and is

Helping to get the yen involved.

  

France invented a cryptocurrency dispenser

Aurelien Menant, founder, and CEO of Gatecoin, a regulated blockchain assets exchange based in Hong Kong says confidence is strong in Asia. Meanwhile, Microsoft founder and philanthropist Bill Gates is keen on distributed ledger technology. He said: "Bitcoin is exciting because it shows how cheap it can be, it is better than currency because you don't have to be in the same place and of course for large transactions currency can be inconvenient.” bitcoin was created in 2009 and has a current Market Capitalization of $29,753,633,028.

Chuck Reynolds
Contributor
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Alan Zibluk Market Hive Founding Member

Hackers mint crypto-currency with technique in global ‘ransomware’ attack

A computer virus that exploits the same vulnerability as the global "ransomware" attack has latched on to more than 200,000 computers and begun manufacturing digital currency, experts said Tuesday. The development adds to the dangers exposed by the WannaCry ransomware and provides another piece of evidence that a North Korea-linked hacking group may be behind the attacks.

WannaCry, developed in part with hacking techniques that were either stolen or leaked from the U.S. National Security Agency, has infected more than 300,000 computers since Friday, locking up their data and demanding a ransom payment to release it. Researchers at security firm Proofpoint said the related attack, which installs a currency “miner” that generates digital cash, began infecting machines in late April or early May but had not been previously discovered because it allows computers to operate while creating the digital cash in the background.

Proofpoint executive Ryan Kalember said the authors may have earned more than $1 million, far more than has been generated by the WannaCry attack. Like WannaCry, the program attacks via a flaw in Microsoft Corp's (MSFT.O) Windows software. That hole has been patched in newer versions of Windows, though not all companies and individuals have installed the patches.

Digital currencies based on a technology known as blockchain operate by enabling the creation of new currency in exchange for solving complex math problems. Digital "miners" run specially configured computers to solve the problems and generate currency, whose value ultimately fluctuates according to market demand. Bitcoin is by far the largest such currency, but the new mining program is not aimed at Bitcoin. Rather it targeted a newer digital currency, called Monero, that experts say has been pursued recently by North Korean-linked hackers.

North Korea has attracted attention in the WannaCry case for a number of reasons, including the fact that early versions of the WannaCry code used some programming lines that had previously been spotted in attacks by Lazarus Group, a hacking group associated with North Korea. Security researchers and U.S. intelligence officials have cautioned that such evidence is not conclusive, and the investigation is in its early stages.In early April, security firm Kaspersky Lab said that a wing of Lazarus devoted to financial gain had installed software to mine Monero on a server in Europe.

A new campaign to mine the same currency, using the same Windows weakness as WannaCry, could be coincidence, or it could suggest that North Korea was responsible for both the ransomware and the currency mining. Kalember said he believes the similarities in the European case, WannaCry and the miner were "more than coincidence." "It's a really strong overlap," he said. "It's not like you see Monero miners all over the world." The North Korean mission to the United Nations could not be reached for comment, while the FBI declined to comment. (Fixes spelling of digital currency in paragraphs 11 and 14 to Monero not Moreno.)

Chuck Reynolds
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Alan Zibluk Market Hive Founding Member

$1,700? Bitcoin’s Price is Up Even as its Tech Progress Stalls

  

Referred to as the 'honey badger of money'

(after a famous viral video), bitcoin enthusiasts may find this comparison particularly apt of late. Since the beginning of the year, the network's value has nearly doubled – even while the community continues to be mired in debate. Market observers so far have offered a wide range of reasons for this uptick, though not all of them are good, with increasing prices causing concerns that the industry as a whole is entering a speculative bubble.

Supply and demand

Still, not everyone believes the boost is due to speculation. Redwood City Ventures founder Sean Walsh, for example, sent CoinDesk a bullet-pointed email summarizing the various global developments that could be contributing to the bitcoin price surge. He believes developments in South Korea, Japan, Russia, and China have all contributed. The price surge, according to Walsh, is simply supply and demand.

"Bitcoin is dramatically more scarce than most people realize, especially in the context of its total addressable market of nearly 3 billion internet-connected adults," he continued. Walsh framed the situation simply as one where the cryptocurrency is seeing increased demand, which looks to only increase in the future: "Once the global race to own bitcoin commences, the tiny supply of new bitcoins (just 54,000 new coins per month) will be completely overrun by demand,"

he said, adding:

“There just aren't anywhere near enough coins to go around, and pre-existing holders will grasp ever more tightly into this surging market, as perennially dictated by human nature.”

Tensions subsiding

Still, to those following day-to-day technical developments, it might seem odd that the digital currency's price has seen such an upswing amid its scaling debate and a stalled upgrade known as SegWit. Kristov Atlas, a security engineer at wallet and data firm Blockchain, for example, wasn't able to find technical reasons for the uptick in demand.

He told CoinDesk

"I don't see how the price increase could relate to tech changes; no big changes in long term projects like Lightning lately, and the block size stalemate is still status quo."

"It must be something outside bitcoin that investors have changed their minds about," he suggested. While developers, admittedly, might not be experts on economic market conditions, those that have been in the industry for a while are perhaps more aware of how technical developments could contribute to bitcoin’s price. When asked, some argued the state of the technology could have something to do with the recent increase, though, perhaps in surprising way.

For example, bitcoin’s block size debate took a weird turn a couple of months ago, when discussions about the possibility of forking bitcoin into two networks reappeared. This time around, some miners and developers suggested the idea of destroying the chain that didn't follow along with the majority of hashing power.

This has yet to happen, though, and worries about such an event happening have since died down. Some wonder if this could have given the price boost. "I think part of the rally is due to increased confidence that the risk of a contentious hard fork has all but evaporated," Reddit moderator BashCo said. Yet some expect to see a 'correction', where the price dips to a more reasonable place.

The emotion factor

The idea that raised tensions contribute to price swings fits with bitcoin developer and Nakamoto Institute director of research, Daniel Krawisz's view that the price has more to do with emotions. "The price of bitcoin never makes sense and it doesn’t have very much to do with the tech," he said. "It’s about emotion. It’s about greed." Krawisz also sees the price more aligned with bitcoin's original value proposition of giving users more control, rather than more granular tech additions or debates. “It’s not the new features of bitcoin that matter. What matters are the old features? People keep moving into bitcoin because it's a better alternative than their own national currency,”

he said, adding:

"Bitcoin doesn't really need new features, because it's already better."

Though, perhaps echoing other developer's sentiments about a reduction in fear, Krawisz went on to argue that the increase in demand probably has to do with bitcoin's apparent stability, since it’s been around for a long time compared with many cryptocurrencies. "It's the same reason that people always get into bitcoin now as ever," he concluded.

Chuck Reynolds
Contributor
Please click either Link to Learn more about TCC-Bitcoin.

Alan Zibluk Market Hive Founding Member

Bitcoin plunges $200 after cyber attackers demand ransom using the digital currency

Bitcoin plunges $200 after cyber attackers demand ransom using the digital currency

  • Bitcoin fell from a record high after Friday's WannaCry cyberattack.
  • The digital currency hit an all-time high of $1,848.75 Thursday and on Monday traded near $1,676.42.
  • Analysts also pointed to increased Chinese selling.

A man talks on a mobile phone in a shop displaying a bitcoin sign in Hong Kong.

Bitcoin plunged from a record high hit last week to below $1,700 after cyber attackers locked up data in 200,000 computers Friday and demanded ransom in the digital currency. "It's a big hit to sentiment," said Brian Kelly, CEO of BKCM. "This is some negative publicity for bitcoin." Bitcoin fell more than $200 from an all-time high of $1,848.75 reached Thursday to a low of $1,644.64 Friday. The cryptocurrency steadied over the weekend and on Monday traded more than 5 percent lower on the day near $1,676.42.

One-month bitcoin performance

  

 

A virus called WannaCry hit 200,000 computers in at least 150 countries on Friday, according to the head of the EU police agency. The hackers demanded, for each computer, $300 in bitcoin within three days to unlock the files and threatened to double the fine after that, before permanently preventing access after seven days. Cybersecurity firm Check Point warned in a blog post Sunday, not to send any funds as no one who had paid had yet reported receiving their files back. Relatively few have paid the ransom. CoinDesk Research Analyst Alex Sunnarborg said Monday that $51,300 in 193 transactions were sent to the three bitcoin addresses connected to the malware.

Pickup in Chinese trading volume

In addition to profit-taking on the hacking, Kelly attributed bitcoin's decline on Monday to a drop in prices on the Hong Kong-based Bitfinex exchange, where prices had been artificially elevated due to withdrawal restrictions. Expectations that those restrictions will soon be lifted brought Bitfinex prices for bitcoin closer to the lower price of other exchanges. "A little bit of a price support has been removed," Kelly said. Chinese trading volume more than doubled its share, from 8.2 percent on May 1 to 22.8 percent Monday, according to analysis from Sunnarborg.

Even with the decline of the last few days, the volatile cryptocurrency has nearly doubled in value since the end of March.

Chuck Reynolds
Contributor
Please click either Link to Learn more about TCC-Bitcoin.

Alan Zibluk Market Hive Founding Member