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What Is XBT and How Does It Relate To Bitcoin?

XBT and BTC – How Were these Acronyms Adopted?

XBT or Bitcoin was created by Satoshi Nakamoto in 2009. Satoshi Nakamoto did not specify any abbreviation for Bitcoin and BC was the acronym originally adopted. Exchanges specified Bitcoin as BTC, and it caught on. ISO 4217 standard is a non-governmental organization that specifies currency codes and non-governmental assets like gold (XAU) and silver (XAG). The organization is independent of any national agenda and mainly works as a voluntary group that approves three-character codes for countries and non-governmental units.

xbt bitcoin logo

ISO 4217 Standard

According to the ISO 4217 standard, there are a set of rules that define the nomenclatures of national currencies and non-governmental assets (like gold and silver). The first two letters of each acronym must specify the country code, and the last letter of the acronym must denote the first letter of the national currency of the country in question.

The country code for China is ‘CN’, and its currency is Yen, of which the first letter is ‘Y’. According to the ISO 4217 standard, the acronym for the Chinese currency is listed as CNY. Similarly, the country codes for Japan, USA, and India are JPY, USD, and INR respectively.

XBT blocks

Why Do We Use the Acronym ‘XBT’?

Bitcoin is decentralized in nature and there is no standard or authority that can force the use of the acronym XBT. The problem with the acronym ‘BTC’ is that it has already been listed under the ISO 4217 standard, and clashes with Bhutan’s currency, which is Bhutanese Ngultrum (BTN). This is why the alternative ticker name, ‘XBT’ is used.

Kraken became the first exchange to make the switch from BTC to XBT in 2013. Several other exchanges like BitMEX use the acronym XBT for Bitcoin as well. Credit and debit card payment networks like MasterCard, VISA, and American Express make use of these acronyms for currency conversions and international transactions. These payment networks will revert back to the ISO listing as soon as affiliated banks request settlement in the form of Bitcoin.

So that’s how XBT came about! Learn more about the history of Bitcoin 

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To HODL or not to HODL? That is the Question. – Crypto Currency News

HODL (Hold on for Dear Life) is the mantra of the crypto community because the prices of cryptocurrency fluctuate so wildly that a bad day can quickly turn into a good day. And a good month in Bitcoin can turn negative just as fast. The idea of HODL is to wait out the storm because the crypto markets have been trending upward for years and history teaches that all Bitcoin storms end up leaving bag holders with beachfront property. More specifically, HODL teaches that time is on your side if you are able to wait. But is this really true?

The History of Bitcoin

Bitcoin is often described as a bubble because of how fast the prices rose. Calling Bitcoin a bubble shows a lack of financial understanding as I described here, but the reason people do so is because sharp price rises are a classic indicator of a bubble. What is interesting is that Bitcoin has been called a bubble many times because it has in fact grown rapidly over the years. Bitcoin started at less than $1 and by the time it was $3 it would have been called a bubble by many. But then it rose to $12 and was once again called a bubble. People like to say that “what goes up must come down.” However, the law of gravity is a poor investment strategy and would have failed you at $12 Bitcoin which rose again to $20, and then $50 and all along people called it a bubble. Bitcoin’s price spikes have occurred hundreds of times and each time justifying a small part of the bubble definition. But in late 2018 the price of Bitcoin soared to almost $20,000 and many people who once feared the bubble were now buying into it.

The Bumpy Ride

Looking only at the highs of Bitcoin can be misleading, giving the impression Bitcoin only goes up…it does not. Rather Bitcoin is notorious for its wild swings of as much as 10% in a day, or even an hour. This is when HODL can prevent emotional investors from making the worst mistakes of buying high “look how fast it’s going up” and selling low “Bitcoin is dead, better get out now.” But when is HODL a mistake? When can refusal to sell create more risk than it prevents? That is too difficult to answer because the real answer is “it depends.”

There is a lesson in Psychology here. It is the trap of cognitive dissonance. Essentially, when we do something that makes us uncomfortable we have two choices, to change our behavior or change how we think about that behavior. With Bitcoin, if you refuse to sell and the price goes down, you will either sell (change your behavior) or rationalize and think ‘it will go back up’ (change the way you think about that behavior). Is HODL a good or bad strategy for you today? That is for you to decide. However, it has served me well as I first bought into Bitcoin when it was rising rapidly from $500 to $1,100 in late 2013 before the 2014 crash. Should I have used HODL when the price fell to $250 or should I have sold my coins? Clearly, HODL would have been the better strategy even as the price seemed to have no bottom.

No one can predict the future, but the only trend Bitcoin has so far followed 100% of the time is that Bitcoin breaks its all-time high. It has 8 years of breaking its all-time highs. With adoption rates still low for cryptocurrency, it would be very surprising if Bitcoin has actually hit a wall, a permanent crash, that it will never recover from. What is far more likely is that Bitcoin will do what it has always done and in time, break its previous high.

Continue the discussion on Twitter @BitcoinCensus

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Bitcoin Day Traders on the Rise

Bitcoin day traders appear to be on the rise. The Financial Times reports that there is as much Bitcoin (BTC) owned by short-term speculators as there is by HODLers, or long-term investors, now.

Bitcoin Day Traders Catching Up

Blockchain research company Chainalysis discovered the Bitcoin data. This data shows that the amount of BTC held by day traders has increased to 5.1 million Bitcoin since December 2017. Bitcoin HODLers, people who have held BTC for longer than a year, together hold around 6 million Bitcoin.

While these numbers aren’t quite on par yet, the chief economist at Chainalysis, Philip Gradwell, believes that this might be a “fundamental driver” behind the biggest crypto’s recent price decline.

Gradwell explained that the growing number of Bitcoin day traders is causing a rise in liquidity for the coin, which could be part of what’s causing the Bitcoin price to drop.

Whaling It Up

Other data discovered by Chainalysis should come as no surprise to most. Chainalysis also pointed out that a large amount of BTC is held by Bitcoin whales. Whales in crypto are typically large corporations or groups.

There is around 17 million Bitcoin available and circulating. Of that, almost a third is held by only a few Bitcoin wallets. The Chainalysis data revealed that approximately 1,600 Bitcoin wallets each held about 1,000 BTCs, which, all together, would amount to around 5 million Bitcoin.

This may also be affecting Bitcoin’s price. It’s very possible that the Bitcoin whales could be manipulating prices (for Bitcoin and other cryptocurrencies) to their advantage. If a whale sells some BTC, it’s enough to cause the price to drop, thus creating a chain reaction of FUD making others sell their BTC and making the Bitcoin price drop even further. Then, the whale(s) buy up even more BTC when the price is lower than they initially sold it for.

This may or may not be happening, but there are concerns circulating that this could be the case.

What do you think?

>> Crypto Bears vs. Crypto Bulls: The Who’s Who in Cryptocurrency

Bitcoin (BTC) Price

Bitcoin (BTC) is currently selling for $7,647.09, which puts the coin down 0.63% in the past 24 hours.

Bitcoin day traders
Source: CoinMarketCap

Where will BTC go from here?

>> The Next 51%: Litecoin Cash (LCC) Under Attack

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