Bitcoin Will Hit $50,000 by End of 2018, Says BitMex CEO Arthur Hayes

Omar Faridi
  • Experienced equity trader and BitMEX CEO Arthur Hayes predicted Bitcoin will hit $50,000 by the end of this year.
  • He reavled his company is prepared to serve institutional investors once they enter the cryptocurrency market.

BitMEX co-founder and CEO Arthur Hayes recently stated he believes Bitcoin’s price will reach $50,000 by the end of 2018. Hayes’ bullish statement came during an interview with CNBC where he explained that his company works mostly with retail traders.

Notably, the former Citigroup and Deutsche Bank equity trader revealed he chose to base BitMEX’s operations in Hong Kong because he thinks that Asians are more comfortable trading digital assets. He also believes cryptocurrency trading is a more “established” business in North Asia. He noted:

“Asia dominates cryptos because they’re very used to trading digital assets. South Korea has been trading digital goods related to gaming for two decades. When you move to a purely money based digital currency they understand that culturally, so they get on board quickly.”

Arthur Hayes

The Wharton School of Business graduate added that BitMEX aims to serve crypto retail investors throughout the world by making his company’s products easily accessible to them. Hayes pointed out that his cryptocurrency exchange focuses primarily on Bitcoin-related trades and offers “highly leveraged” derivatives.

BitMex lets traders leverage their trades up to 100x in various products, and also offers 25x leveraged Monero contracts. Additionally, it offers futures contracts for Bitcoin Cash, Litecoin, and Ripple.

Institutional Investors Not Yet Into Crypto

While discussing his company’s future plans, Hayes mentioned that currently there isn’t “much institutional presence in crypto.” Were this to change, he noted that his trading platform is already prepared to serve institutional investors. Presumably, software upgrades that incorporate new crypto trading options, along with other measures that Hayes’ company is taking, should help accommodate institutional traders when they enter the crypto space.

The tech-savvy trader noted that BitMEX takes security and consumer safety very seriously. He revealed the company holds “a large amount of Bitcoin” and has certain “processes” in place and a “certain way” of doing things that ensure users’ funds remain safe

Despite implementing robust security features on BitMEX, Hayes admits that “you still have to take that risk”. The risk can be in the form of choosing to invest in a highly volatile asset class or simply using online exchanges, which are still vulnerable to hackers.

'Big Spender' Bitcoin Wallet Exploit Is an 'Issue With BTC Itself', Says BCH Supporter

Michael LaVere
  • Crypto security firm ZenGo has identified a double-spend exploit dubbed "BigSpender" which affected popular bitcoin wallets.
  • Exploit allows an attacker to cancel a bitcoin transaction without the receiving user knowing. 

A crypto security firm has identified a double-spend exploit targeting popular bitcoin wallet providers. 

According to a report by ZenGo, the security firm has discovered a double and multiple spend wallet exploit for bitcoin dubbed “BigSpender.” The report claims the exploit allows an attacker to cancel a bitcoin transaction but still have it appear in a victim’s vulnerable wallet. 

The report reads, 

The core issue at the heart of the BigSpender vulnerability is that vulnerable wallets are not prepared for the option that a transaction might be canceled and implicitly assume it will get confirmed eventually.

As CryptoGlobe reported, ZenGo found that a user’s balance would be increased following an unconfirmed incoming transaction, without a subsequent decrease in the event the transaction being double-spent. The firm outlined how an attacker could use the exploit to cancel transactions of sent bitcoin while still receiving goods and services in return. 

The security firm tested nine popular cryptocurrency wallets and found BRD, Ledger Live and Edge to be vulnerable to the exploit. All three companies were notified by ZenGo of the threat and subsequently updated their products. However, the firm noted that “millions” of crypto users may have been exposed to the attack prior to the update. 

Bitcoin Cash supporter Hayden Otto told Cointelegraph the exploit is particularly concerning for bitcoin-accepting merchants. 

He said, 

The technique is facilitated by RBF (replace by fee), a so-called ‘feature’ added at the protocol level by the Bitcoin Core developers.The issue exists if you use BTC. Wallet software can only make some trade off, which results in a worse BTC user experience, in order to try to protect BTC users.

Otto claimed the exploit was derived from “an issue with BTC itself” and had little to do with wallet software. 

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