- Bitcoin records a daily low of USD 7,176 as the final day of 2019 continues amid low trading volumes
- The BitMEX Insurance Fund has grown 61% in 2019 to record almost BTC 33,491 (USD 241.7 million) in total
- BitTorrent adds blockchain livestreaming platform DLive to its ecosystem
Bitcoin has not been able to hold on to the heights of 30 December, and today on New Year’s eve, it looks like it may not even hold on to USD 7,200 levels with a daily low so far of USD 7,176 (CoinDesk) and volumes and pressure that look to push it downwards before the start of the new year.
— coinOK (@coinok) December 31, 2019
Not everyone will be too unhappy, though, as more good news pours the way of BitMEX, one of the world’s largest platforms for Bitcoin trading, which also oversees some of the biggest daily volumes internationally.
The year so far has seen the BitMEX Insurance Fund adding close to BTC 13,000 to record a grand total of BTC 33,491 (approximately USD 241.7 million) as of today. Compared to the total supply of actual Bitcoin in circulation, this means that the insurance fund is 0.19% of all available Bitcoins, at least, according to metrics on Blockchair.
The fund was set up by the cryptocurrency exchange to guarantee that all its liquidation orders related to leveraged positions are filled. At the end of last year, it ended up with almost BTC 20,800, which means that the fund has grown by over 60% in the 364 days since.
As a platform for crypto derivatives, BitMEX is famous for allowing margin trading or leveraged trading, essentially allowing traders to make orders up to 100 times their actual capital. But because margin trading uses up a lot of leverage, the insurance fund is necessary to guarantee that margin traders will in fact receive their winnings if they close orders in profit.
Leveraged trading essentially means that traders bet for or against the price of bitcoin, based on the amount the deposit (their wager, basically). Profit potential (and conversely, losses) are amplified by the value of their leverage.
However, traders in a leveraged market have to pay for the losses that are incurred, and in flash crash events such as the one earlier in the year on Poloniex, resulted in a “socialized” loss for all traders. In a traditional trading activity involving large financial institutions, a default event would significantly jeopardize the entire system. An insurance fund typically protects the company from such an event.
So the fact that BitMEX is growing its insurance fund, despite the inherent risks associated with margin trading, implies that Bitcoin trading, at least in terms of derivatives, is only getting more popular.
Speaking of popular global platforms, peer-to-peer file-sharing platform BitTorrent has announced that it will include the DLive blockchain-based live streaming platform in its ecosystem. This new partnership hopes to bring P2P content sharing and livestreaming ability to 100 million monthly active users of BitTorrent.
BitTorrent CEO Justin Sun said that the recent crypto content ban on YouTube — although later retracted — reminds people that decentralized content platforms are the way forward. He said:
“It’s unfortunate to see content platforms such as YouTube taking down crypto-related content, this is the issue with centralized agencies. Decentralized content platforms such as TRON’s newest partner DLive are the platforms of the future.”
Launched in early 2018, DLive boasts some 5 million active users every month and hit the headlines when popular YouTuber PewDiePie embraced the platform in April this year. Sun, who also heads the TRON Foundation, claims that DLive is “one of the best real-world examples of what is possible when you combine blockchain and digital media”.
DLive CEO, Charles Wayn, himself welcomed the integration, noting:
“We are ecstatic to have the opportunity to be part of the BitTorrent ecosystem. I’ve watched them pioneer the digital peer-to-peer space. DLive’s goal of empowering creators and rewarding communities is one step closer with the amplification of this new venture.”
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