Number of active bitcoin addresses hits new high

The number of addresses on the network making daily transactions has increased to a new high since the start of January 2021, amid a rapid rise in the value of bitcoin.

A report from the LongHash team (using data from CoinMetrics) says that after the VTC surpassed $37,000, network activity became record-breaking.

For example, 1.34 million wallets made transactions on January 6 alone. This broke the record of 14 December 2017, when the number of active addresses was around 1.29 million, the researchers stressed.

Bitcoin is currently trading just below $38,000. The coin has failed to hold above $42,000, although it still stands a chance of reaching the $50,000 mark. This is according to a January investor note from Bloomberg.

More investors are showing interest in the cryptocurrency. According to Glassnode, BTC accumulation has continued over the past few months.

Large investors, often referred to as „whales“, are showing the most activity. The number of bitcoin addresses containing at least a thousand coins reached a new high of 2,401 on 10 January 2021, analysts said.

eToro stops Bitcoin margin trading with only four hours‘ notice

eToro informed users of the need to increase margin collateral by 100%; just four hours later, all non-compliant contracts were automatically shut down

A Wall Street Journal article reveals that eToro’s European customers were given just four hours‘ notice before the platform’s margin trading services were shut down.

On Jan. 8, in an email sent at 4:46 p.m., eToro users were informed that they needed to increase their margin collateral by 100 percent. The platform then closed the contracts of the European traders who did not increase this collateral at 21:00 on the same day.

In addition, when the platform closed margin trades, users‘ crypto funds were automatically converted to U.S. dollars. Amy Butler, a spokesperson for eToro, commented that „most traders were in profit“ at the close of the contracts, as Bitcoin’s price was around $42,000 at the time.

However, Jurij Toplak, a law professor at Fordham University, said that the platform’s decision could cause large losses for users:

„There is a big potential loss for users. We’re talking about future losses: if Bitcoin were to grow to $70,000, the user would have no way to get this money.“

Some traders have also pointed out the potential ramifications of eToro’s decision, and in particular the very short notice provided to users. On Twitter, user Phill Gallagher claims to have received the notification email at 2:30 a.m. local time:

„This creates a big tax problem, which with a little notice wouldn’t have been hard to handle. Very unprofessional. I will rely on another trading platform from now on.“

On the same day, eToro temporarily quadrupled its minimum deposit requirements, citing „unprecedented demand“ for its services from new users. In the first week of January, 200,000 new accounts joined the platform, sending daily volumes soaring to ten times the 2020 average:

„eToro has experienced unprecedented demand for our services from new users. To manage the demand and ensure that our community of 17 million registered users can continue to access our services without interruption, we have temporarily increased the minimum deposit for new users to $1,000.“

.@eToro has seen an unprecedented demand for our services from new users. To manage demand & ensure our existing community of 17M registered users can continue to access our services uninterrupted, we have temporarily increased the minimum deposit amount for new users to $1,000.
– eToroService (@eToroService) January 8, 2021

The community reacted negatively to the increase in the minimum deposit, pointing out that this decision will have a negative impact especially on novice traders. „I’m not sure this is a good idea,“ user evertmulder85 wrote on Twitter. „It’s a platform for beginners, its appeal is that it allows you to start with small amounts. $1,000 is not a small amount.“

According to some rumors, it seems that eToro is preparing to launch an Initial Public Offering in the second quarter of 2021: last year, the platform gained 5 million new users and „doubled its revenue to $500 million.“

Bitcoin inventor Satoshi Nakamoto exposed by spelling weakness?

Bitcoin inventor Satoshi Nakamoto exposed by misspelling?

The guessing game about Satoshi Nakamoto goes into the next round in 2021. New impetus is provided by an analysis of the Bitcoin inventor’s writing habits.

More than 12 years after the Bitcoin white paper was published, the identity of its author remains a mystery. Now the team at Ungeared.com has joined in the speculation about Satoshi Nakamoto. On 31 December, they published a statistical study on Satoshi’s spelling.

The article responds to a line of argument that claims to have identified Great Britain as the home of the Bitcoin inventor. Since some of the arguments in favour of this Bitcoin Supersplit were based on Satoshi’s spelling, the authors decided to subject it to a statistical test. They took advantage of the fact that a number of words are spelled differently in American English than in British English. In addition to the Bitcoin white paper, Satoshi’s well-known emails and blog posts were also the subject of the analysis.

Satoshi’s spelling: no pattern to be seen

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The authors of the study were able to highlight a total of 108 cases that are relevant to their concerns. In terms of spelling, the breakdown is as follows: „American – 52, British – 35 and misspelled – 21.“ Satoshi thus makes use of both American and British spellings.

What’s more, there is no discernible pattern to Satoshi switching between the two styles of writing. Even the same word sometimes appears in British spelling and then again in American spelling. Even within the same email, the Bitcoin inventor varies his spelling habits. Only when it comes to coding does he remain largely faithful to American.

Where does the Bitcoin inventor come from?

The inconsistencies just mentioned seem to require explanation. As one hypothesis, the authors suggest, for example, that the Bitcoin inventor is Canadian. This is because Canadian English mixes the spelling of British and American in some points. Since Satoshi mainly uses American for coding, it is also conceivable that he is actually British, but programs in American English.

However, this does not explain Satoshi’s spelling mistakes. It is conceivable that English is simply not the Bitcoin inventor’s mother tongue. (The authors do not consider this possibility.) The seemingly arbitrary switch between different spelling styles could also be explained in this way.

In the end, the results of the study leave more questions unanswered than answered. Could Satoshi Nakomoto be more of a collective than a loner, as is often assumed? The possibility that the inconsistent spelling was a deliberately chosen strategy by the Bitcoin inventor to make the traces as unrecognisable as possible cannot be ruled out. If this is the case, Nakamoto is still beating all Bitcoin archaeologists to the punch years after the white paper publication.