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September 22nd, 2017- In This Issue:

As we write today's market commentary the price of Bitcoin has fallen below $3,600 once again. 

We had expected this as mentioned in our last Round Up. For the most part we're seeing some more liquidation from China, although it should end pretty soon. 

We were expecting these levels due to both the technical trading aspects as well as the trickling of bitcoin sales from Chinese nationals moving out of exchanges, most of the trading has already been moved to Japan and Korea, so the effects are mostly behind us. We're expecting a rebound will happen by Monday- Tuesday. (we think.)

Our advice, as always, buy the dips, check the price once a year, start selling at 50k and enjoy a wonderful life. 

Happy New Year to our Jewish friends

Visit  BitvestIRA  for information on using your IRA to invest in bitcoin at 20% below spot price. Or call us directly with any questions at 1-844-BIT-VEST (1-844-248-8378)

Prominent Bitcoin Trader: Price is Heading Towards $100,000 in 2018

Earlier this week, prominent bitcoin trader and investor Tone Vays provided technical analysis on bitcoin's short-term trend, major price correction following the nationwide ban on Chinese bitcoin exchanges, bitcoin's swift recovery, and the long-term future of bitcoin.

The analysis of Vays demonstrated the potential of bitcoin price to surpass the $100,000 mark by the end of 2018, which would provide bitcoin a multi-trillion dollar market cap. For many years, financial analysts and researchers in both the cryptocurrency and banking sectors such as RT's Keiser Report host Max Keiser emphasized the possibility of bitcoin to surpass $1 trillion in market cap if and when it succeeds in evolving into an alternative financial network against existing banking systems and financial institutions.

Based on the exponential growth rate of bitcoin regarding userbase, adoption, developer activity, trading volumes and market cap, a long-term price target of $100,000 is possible to achieve, especially if leading institutional and retail investors continue to endorse, embrace and adopt bitcoin. In 2017 alone, $90 billion investment bank Goldman Sachs and Fidelity Investments with $2.13 trillion worth of assets under management expressed their optimism toward bitcoin.

Jamie Dimon's Bitcoin Comments Accused as Market Abuse in Sweden

Did  Jamie Dimon have an ulterior motive when he trashed bitcoin last week?

Florian Schweitzer, managing partner for a bitcoin market trading firm, has filed a complaint with a Swedish regulator against JPMorgan's chief executive for  calling bitcoin a "fraud" a week ago after learning that JPMorgan began buying into a bitcoin tracker fund shortly after Dimon made his comments, according to  Quartz.

Schweitzer's firm, London, U.K.-based Blockswater, trades around $25 million per month. Schweitzer has asked the Swedish regulator to investigate Dimon.

Dimon criticized bitcoin at a banking conference in New York, telling CNBC that bitcoin is "just not a real thing, (and) eventually it will be closed." He also claimed he would fire any JP Morgan trader engaging in bitcoin activity.

Coincidental Timing?

  Days after Dimon made his comments, JPMorgan became one of the most active buyers of Bitcoin XBT, a bitcoin tracker fund listed on the Nasdaq Nordic in Stockholm, Sweden. The fund allows buyers to hold bitcoin without having to worry about how to securely store it.

Blockchain Laying Foundations for Real Estate Market: Experts

Blockchain, including digital tokens, are revolutionizing many aspects of the  real estate market.

It was only a matter of time before two industries that have seen similar booms in many regions, would come together. Although the real estate industry is traditionally slow to adopt emerging technologies, it seems that even this sector can't resist the hypnotic pull from Blockchain and the wider cryptocurrency market.

Dmitry Faller, CEO of Primalbase, a shared office space Blockchain platform, tends to agree:

"Real Estate is a conservative and a traditional industry, and thus it is ready for disruption, and Blockchain needs real use-cases that are not just based on speculation."

Buying and selling

A couple of weeks ago it was  revealed that a partnership between The Knox Group, BitPay and a British baroness will offer up luxury Dubai apartments in exchange for Bitcoins in a deal worth $330 mln.

Small-scale Bitcoin-for-property transactions have been done before. A London property company is offering to  accept down payments in Bitcoin, and a Miami based investor has been  looking to sell his $6.5 mln mansion for Bitcoin, but not of this magnitude.

And just yesterday the first house purchase in Bitcoin was  reported in Texas.

All this means that mainstream developers have a high level of confidence in the disruptive potential of the technology.


Charlie Lee: China Bitcoin Mining Ban Rumors are False
Litecoin creator Charlie Lee says a trusted source has told him that China will not ban bitcoin mining operations or the bitcoin network. He says the rumors are being propagated by large-scale traders who are attempting to manipulate the bitcoin price.

Lee revealed this information Thursday night on Twitter, stating that he had not traded on the knowledge before making it public.

With this tweet, Lee joins MGT Capital's John McAfee in contradicting a series of rumors suggesting that China would widen its crackdown on cryptocurrency to extend to mining. Citing a conversation with Bitmain co-founder Jihan Wu, McAfee stated that regulators will not make mining illegal.

Market Reaction to China News Shows Bitcoin Too Big to Kill

After a double blow from China, with its  ban on ICOs, then  news of total exchange bans, not to mention  Jamie Dimon's vitriol against Bitcoin, the digital currency briefly crashed to $3,000 before rapidly soaring back to, and holding, the $4,000 mark.

Digital currency users are finding  ways around the Chinese bans, other countries, like  Japan and Hong Kong are profiting, and people are  exposing Dimon's ploy, all indicating that Bitcoin is now stronger than a few bumps in the market's road.

Still as bullish as ever
Peter Van Valkenburgh, director of research at Coin Center, a Washington-based nonprofit research firm focusing on cryptocurrencies, sees positives in China's knee jerk reaction.  Valkenburgh said:
"The efficacy of any bitcoin ban is pretty dubious. It's bullish because if a powerful government like China feels the need to ban major trading, then it's a good indicator that the technology works and that it does what it's supposed to. If it overcomes those controls, then it's further proof that it's independent from government controls, which is pretty radical."

Bitcoin is not a fraud - it's dotcom 3.0

Most investors don't know what to make of bitcoin. But the best brains see the potential and are flocking to this new asset class, argues Charlie Morris.

This year has seen a surge in the price of digital assets - my preferred term for cryptocurrencies. The original digital asset was bitcoin, created in January 2009 out of thin air. Now this new digital world is collectively valued at close to $200bn. There are many critics, such as JP Morgan's CEO Jamie Dimon, who has described bitcoin as a fraud for stupid people.

Allow me to disagree. Notwithstanding a sharp correction in price as China cracks down on fundraising, this movement is here to stay. A new asset class has been born.

Digital assets are a mania, not a fraud

Consider how rare it is to see a new asset class. Hedge funds were promoted as such, yet when the credit crisis came, most collapsed alongside risky assets. Infrastructure was another - but in reality, it is probably a sub-set of property, or just equity in disguise. Digital assets are different from everything that has come before. Dimon claimed that bitcoin is a fraud, such as a Ponzi or a pyramid scheme. Yet it can't be a Ponzi as the blockchain (the underlying technology) provides a high level of transparency.

It's true the cryptography associated with bitcoin doesn't tell you who owns what, but at least you know the bitcoins are there. And it isn't a pyramid scheme - the winners in such schemes sit atop large networks, while everyone else sits alone. If bitcoin were a pyramid, parts of the blockchain would be valuable, with the rest worthless - however, all bitcoins are equal, so it can't be a pyramid scheme.

Stealing Bitcoin with a Name and a Phone Number

Researchers from Positive Technologies recently showed  Forbes how, using only a name and a phone number, hackers are able to compromise someone's Google account, and use it to get to that person's bitcoins or bank account.

Hackers can do this using a flaw in the global telecoms network, that affects what's known as Signaling System No. 7 (SS7). In a demonstration video, researchers were able to take control of a Coinbase account and do whatever they wanted to with its funds, via an SS7 flaw. Taking into account that Coinbase has over 10.4 million users, a lot of bitcoiners are at risk.

Keeping Your Bitcoin Safe from SS7 Attacks
While this type of attack seems scary, there is a way to secure your bitcoins if they are in a Google account-linked wallet: stop using SMS for two-factor authentication. SS7 attacks, according to Forbes, don't work when the two-factor authentication system is based on one-time codes - like with Google's Authenticator app.

Apps like Google Authenticator are safer, so much so that Coinbase's vice president of operations, Daniel Romero, has been reaching out to customers about changing SMS-based two-factor authentication to apps like these

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