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Explained: How Bitcoin Escrow Works? Why they are important?

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Escrow services are great especially in bitcoin space as they give sellers confidence in the sales process by showing them that the buyer has the money.

Bitcoin transactions are irreversible, so if you are dealing with an untrusted party, it is advisable to use an escrow service to handle Bitcoin payments. Many Bitcoin markets are equipped with an integrated escrow service for safe Bitcoin transactions such as localbitcoins. Escrow services are great because they give sellers confidence in the sales process by showing them that the buyer has the money.

 

Escrow:

Escrow is when the software source code or money is held by a third party- an escrow agent – – on behalf of the client and the provider. As with a traditional escrow, an online trust works by placing money under the control of an independent and licensed escrow to protect both buyers and sellers in a transaction. Real online trust companies will be listed in a government register and users should never use an online trust service without first checking whether it is genuine by browsing the state’s online registration.

When you use Bitcoin’s escrow services, you do not solve the original problem you have to deal with, which means that you do not send money to strangers.

Escrow is a place of trust in which funds or assets ( in which case, Bitcoin or Litecoin are held with a third party until the agreement is considered to be completed between two parties. Unlike traditional foreign exchange services such as credit cards, bank transfers, and even PayPal, as a buyer, once you have spent your Bitcoin, you cannot recover your money.

 

LocalBitcoins

On LocalBitcoins, you can exchange Bitcoins for traditional currency through personal transactions. People prefer to buy and sell bitcoin OTC because it allows for faster transactions and more different payment methods.
The centralized exchange of bitcoins is slow and cumbersome, trading directly with other people using the same payment provider makes the movement of money much faster. Hundreds of Bitcoin merchants from around the world are already making a living by trading on localbitcoins using more than 60 plus payment methods.

When you buy Bitcoins from localbitcoins, you are fully protected by escrow, provided that you have proof of payment. Fraudsters benefit from the fact that the Bitcoin transaction is irreversible or try to deceive you in releasing Bitcoin without paying. Escrow is an important concept that you need to understand before you buy something in Bitcoin. As you know, when you transfer money with Bitcoin, you can’t make a refund, the protocol is set.

 

Paxful

Paxful is such a trustworthy service and its value is that it allows you to finance a trust through any form of payment in the world such as PayPal, cash, gift cards and more. Paxful is a Bitcoin market, a place where people can meet and exchange Bitcoin safely for almost any kind of payment you can imagine.

 

Traditional Custody vs Bitcoin Escrow

Traditional custody services have been in existence for decades and are becoming increasingly popular over time.
Although there are ways to establish the owner of a bitcoin account ( in most cases ) by government agencies and police departments, it is actually a lot of hard work. Bitcoin’s escrow services offer the buyer an exceptional level of protection, but they also offer several advantages to sellers. While bitcoin’s escrow services are great for stopping fraud, they are also great for being an unbiased arbiter when a dispute arises around a transaction.

#Bitcoin

Cryptocurrency Price Analysis: Great Week for the top 10

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The current week has proved to be quite amazing for the cryptocurrency market as all major coins are holding green. The total cryptocurrency market rose by around $1.5 billion yesterday night with the price of bitcoin reaching $4100.

 

Bitcoin:

BTCUSD Price Chart

BTC/USD Weekly Price Chart

Bitcoin broke the $4000 resistance level on 17th March and has been over this range since then. Bitcoin has turned the previous resistance into strong support now and has moved upwards slowly currently trading around $4120 (according to Bitfinex chart) with around 1% increase in the last 24 hours. If bitcoin is able to maintain its position above $4100 range for long, it might soon move ahead towards the major long term resistances such as $4500 and $4600.

 

Altcoins:

ETHUSD Weekly Chart

ETH/USD Weekly Chart

Ethereum also saw a nice bullish momentum this week after reaching the highest point of $143. Currently, Ethereum is trading nicely around $140 and is experiencing a few dips while trying to move upwards.

Unlike other top 10 coins, Ripple market is experiencing volatility from the last week but the momentum is still quite bullish.

LTCUSD Weekly Chart

LTCUSD Weekly Chart

Litecoin has been following trends and is steadily trading around $60 from the start of the week. Litecoin has increased more than 1.67% in the last 24 hours which makes it the best performing crypto of the day (in comparison with the top 10 cryptos according to market capitalization). LTC is currently trading around $61 (according to Bitfinex chart).

 

The overall cryptocurrency market is in a bullish momentum with sings of further gains. After a long bearish trend, cryptocurrency analysts are now believing that the bull market might be coming soon.

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Tom Lee: Bitcoin Bull Market Coming Soon

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Tom Lee, the co-founder of Fundstrat Global has predicted that the price of bitcoin will likely experience a bullish run in the next 5 to 6 months.

Tom Lee, the co-founder of Fundstrat Global also known as the bitcoin bull has predicted that the price of bitcoin will likely experience a bullish run in the next 5 to 6 months. Lee predicted this during an interview with the CNBC. According to Lee, the 200 daily moving average is the number to keep in mind. If bitcoin is able to stay above $4000 till August this year, it will cross the 200 daily moving average and thus technically the overall chart would start to look bullish.

During the interview, he also mentioned that the future of bitcoin and other cryptocurrencies lies on the fact of whether it becomes an asset class and bitcoin is still in the early days of becoming one. Although Tom Lee has been quite bullish about the price of bitcoin, Fundstrat had recently posted a warning that the cryptocurrency market might crash to a new bottom before actually starting a bull run.

 

Tom Lee on JP Morgan Coin:

In the interview, Lee also expressed his concerns regarding the recently launched JP Morgan Coin which is a stablecoin launched by the banking giant JP Morgan Chase. He said that things such as the JP Morgan Coin and Facebook Coin create use cases for cryptocurrencies and according to him, the JPM Coin is surely not a competitor to bitcoin as it is a stablecoin in nature.

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Alert: Bitcoin Breaks Record, Highest Hash Rate Since November 2018.

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The hash rate of bitcoin which is the power that secures the bitcoin network has recorded the highest level yesterday (19th March) since last year November.  The Bitcoin hash rate passed over fifty-two quintillion hash per second in accordance with the data feed on Blockchain.com.

 

Bitcoin Hash Rate:

Bitcoin hash rate is the computation of the performance of bitcoin miners. In simpler terms, as the hash rate goes higher, the bitcoin network becomes more secure. It becomes more difficult to attack the bitcoin network as an attacker would need increased resources in order to attack the network. The increasing hash rate also depicts the increase in the number of bitcoin miners. As the BTC mining difficulty level is quite stable now, more and more miners are joining the bitcoin network. Although, the increasing hash rate would eventually result in an increase in the overall difficulty level.

bitcoin hash rate 19th march

Bitcoin hash rate 19th March 2019

 

The bitcoin network security is at its peak since November last year. The highest hash rate ever recorded has been around 62 quintillion hash per second in August last year. Looking at the current chart, it depicts that the hash rate might even cross this level in the coming time.

 

The increased hash rate also builds up confidence in the minds of the miners as it shows the overall security of the bitcoin network and thus predicting a secure future of the investment of the miners. Thus, overall, more and more miners are now joining the bitcoin mining network after a subsequent decrease last year which led to a lot of miners moving out of the mining business. Bitcoin price analysts believe that the hash rate of the network follows the price of bitcoin as it helps them in speculating the future price of BTC.

 

During last year’s bear market, the hash rate also fell drastically which led to a lot of miners shutting down and the mining equipment were being sold at waste prices. Now as the hash rate is rising, miners are again turning on their mining rigs and moving back to business. It is also worth examining that the current hash rate of the network is even more than the recorded hash rate in December 2017 when the price of BTC went up to $20,000.

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