On April 8, the Bitcoin Association Switzerland (BAS) announced the launch of a new wrapped bitcoin project called Tzbtc. The token will be used on the Tezos network and each token will be backed 1:1 with BTC. The project is now the fourth tokenized project that leverages BTC on another blockchain.
There’s now a number of tokenized BTC projects that leverage tokens on an alternative network and claim to be backed by bitcoin held in reserves. For example, in January 2019, news.Bitcoin.com reported on the official launch of the Wrapped Bitcoin (WBTC) project led by the custodian Bitgo. WBTC uses the Ethereum blockchain and each token is claimed to be backed 1:1 with BTC that’s held by Bitgo. The WBTC project has become popular since the initial launch and there’s $7.6 million worth of BTC locked up in the system. The system has more funds locked in than the Lightning Network’s $6.9 million total value locked (TVL) and WBTC has been around for far less time.
The following summer, the team behind the crypto-swapping application Sideshift.ai launched a Simple Ledger Protocol (SLP) based token called BTC2 that’s backed 1:1 with BTC as well. This year on February 13, software developer Matt Luongo announced the first release of a project called Tbtc on Ethereum’s Ropsten testnet. Unlike the BTC2 and WBTC tokens, Tbtc aims to be a noncustodial decentralized finance (defi) platform. Luongo stressed that the testnet version was the first of a “few planned releases leading up to mainnet” and the team is still auditing the Tbtc project.
On Wednesday, the Bitcoin Association Switzerland (BAS) revealed a new type of wrapped BTC project that will be hosted on the Tezos chain. BAS also noted that the coin (TZBTC) will use the FA1.2 Tezos token standard and there’s a possibility it could be connected with the new Stakerdao platform.
“The multi-signature key management system of Tzbtc enables a strongly trust-reduced setup with no central issuer as a single point of failure, while being fully transparent,” explained the announcement written by BAS. “The Bitcoin Association Switzerland acts as an overseer and coordinates with the keyholders. Protected by Swiss law and cryptography, we’ve found a practical balance between decentralization and usability,” the organization added. The association continued:
TZBTC gives people more choice of how they can use bitcoin, and by that increase the utility and strengthen the position of bitcoin as the world’s leading digital currency. This belief in choice is why we are exploring to bring bitcoin to more open networks.
The BAS detailed that the Tzbtc project statistics can be viewed at the websites bitcoinassociation.ch/tzbtc and tzbtc.io. After the covid-19 pandemic ravaged the crypto economy, tezos (XTZ) lost 14.5% in the last 30 days. But with very minimal project updates and news, XTZ gained 55% in the last 90 days and 109% during the last 12-months. Tezos native currency XTZ can be staked and the cryptocurrency’s staking yield is an annualized yield of 6.9% according to current stats.
Tezos is not without controversy, and Harvard researcher Michael Neuder wrote a paper that claims the project is extremely vulnerable to “selfish mining” attacks. The paper called “Selfish Behavior in the Tezos Proof-of-Stake Protocol” notes that an alleged variant of selfish mining can lead to staking centralization and vulnerabilities. However, Neuder stressed the paper was not an overall security analysis of the entire Tezos network.
“By no means have we provided a complete security analysis of the Tezos protocol,” the author underlines. “Future work combining selfish endorsing with other deviating strategies, as was done in the [proof-of-work] PoW literature, is critical to assessing the total security of the system.”
With the new Tzbtc project, the creators think that it will bring BTC liquidity into the Tezos ecosystem just like WBTC did with Ethereum. “The governance mechanism of the Tzbtc contract allows for the compliant and secure issuance of BTC-backed tokens on the Tezos blockchain,” the Tzbtc briefing explains.
What do you think about a wrapped bitcoin project on the Tezos chain? Let us know in the comments below.
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Galaxy Digital chairman Michael Novogratz said that bitcoin is his pick under the current financial situation, describing it as an “amazing environment” to buy bitcoin. With “global money printing orgy,” a possible another trillion-dollar stimulus package, and “money growing on trees,” Novogratz said this is the year for bitcoin.
Mike Novogratz, the chairman and CEO of Galaxy Digital, revealed his investment picks in an interview with CNBC on Tuesday, April 7. The former hedge fund manager with investment firm Fortress Investment Group said, “I have a big bitcoin position that I continue to add to it partly because this is an amazing environment for both being long gold and long bitcoin.”
Citing that President Donald Trump is considering another trillion-dollar stimulus package, he said, “money is growing on trees right now.” However, he recalled what he learned as a kid that money really does not grow on trees, adding:
So we have a global money-printing orgy going on … at one point that comes home to roost … Hard assets are going to be a big buy, gold and bitcoin are my two favorites.
Novogratz is not putting a lot of money in the stock market right now. However, he did buy the Starbucks stock a few days ago because its price has come down significantly and people will go back to drinking coffee when everything returns to normal, the Galaxy Digital CEO explained. Nonetheless, he reiterated that the easiest route for him is gold and bitcoin. Prior to joining Fortress, Novogratz was a partner at Goldman Sachs. He was ranked a billionaire by Forbes in 2007 and 2008.
The former hedge fund manager has been favoring bitcoin as an investment option for quite some time, tweeting about the cryptocurrency often. “BTC will continue to be volatile over the next few months but the macro backdrop is why it was created,” he wrote on March 22, emphasizing that “This will be and needs to be BTC’s year.”
On April 2, Novogratz told CNBC in another interview that he had seen hedge fund and high net worth investors he never saw before going into bitcoin for the first time. He opined:
This is the year for bitcoin and if it doesn’t go up a lot by the end of the year, I might just hang my spurs.
Seeing that money grows on trees right now, he asserted, “we are going to debase the value of fiat.” Novogratz believes that the price of bitcoin should double within six months, or by the end of the year. “We really should … this is the time,” he concluded.
Recently, several other well-known investors also recommended bitcoin, including Rich Dad Poor Dad author Robert Kiyosaki and Virgin Galactic chairman Chamath Palihapitiya. The former said that people should take free government money and invest in bitcoin while the latter believes the cryptocurrency could be worth a million dollars.
What do you think about Novogratz’s outlook on bitcoin? Let us know in the comments section below.
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You’ve heard it first here, Bityard, the world’s leading digital contract trading platform, has officially launched. According to industry authoritative sources, Bityard has received a strategic investment from a US hedge fund worth 10 million dollars, creating a precedent in the industry for complex contracts and simple transactions. At Bityard, our ambition is to foster research and development of relevant forward-looking technology, overseas market expansion, and ecological construction of our brand name.
Bityard was founded in November 2019 and is headquartered in Singapore. It is the world’s leading digital currency contract trading platform, regulated by the American Money Services Businesses, Singaporean Accounting and Corporate Regulatory Authority (ACRA), and the MTR of Estonia for the European Union. In Southeast Asia, Bityard will strive to keep up with local digital asset market demand, especially with regards to government-driven blockchain trends. Not only has Bityard attracted attention with secure, simple, and fast digital contract transaction services, but we have also acquired a Thai boxing champion as a brand ambassador of Bityard. He will continue to set off waves of attention in his home country and beyond.
The more turbulent the years, the more volatile the cryptocurrency market. While everyone was still discussing the third halving of the market, the “black swan” event, coughed forth by the fears of the Coronavirus, ruthlessly cut the price of all cryptocurrencies in half, followed by a quick rebound from the lowest point by more than 60%. Contract purchases inevitably will become this year’s most competitive main battlefield on exchanges. As a new entrant, the founder of Bityard knows clearly that in order to gain a solid placement in the highly competitive contract market, innovation must be achieved.
Community of Hidden Potential: Those Who are Eager For “Simplified Transactions”
After much research, it has been found that in the increasingly mature digital currency market, a consumer group with high potential has solidified. They all agree on the concept of contract trading and expect to use leverage to magnify the benefits, but for this group of consumers, contract transactions are complicated. To avoid liquidation, they hesitate to participate in any such transactions. In view of the large number of potential users in the cryptocurrency community craving simple contract transactions and other derivatives, Bityard came in to existence.
Product Concept: Complex Contracts Simple Transactions
Bityard always adheres to the product concept of “complex contracts, simple transactions”, and aims to bring customers the ultimate simple operation experience. Reporters have learned through interviews with product management that the team has done a lot of work to get users up and running quickly.
Opening an account is simple: you only need to register with an email or mobile phone number, and you can become a Bityard user within 30 seconds.
Simplified topping-up: currently bityard supports the use of 6 mainstream digital currencies as a method of refilling a user’s account. Additionally, the Renminbi as well as the Vietnamese Dong are both supported, and there are plans to add more FIAT on-ramps in the future. There is also a system in place to allow transferring of funds between superiors and subordinates which is facilitated by agents.
Simple Trading: simplify the complex trading interface functions. Users can trade from as little as 5 USDT.
In order to provide a fulfilling customer experience, Bityard’s co-branded ambassador announced a fruitful launch of “daily mining” activities. Starting from today, after each user registration, you can get free Bitcoin, Ethereum, EOS, Tron, and more mainstream digital currencies for a value of up to 258 USDT. In addition, you can also get Bityard’s first platform currency BYD. After it has been listed its strengths will be well-established!
For more information consider registering an account at bityard today! Check out www.bityard.com and register an account for your experience and benefit.
Contact Email Address
This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.
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On April 8, 2020, the Bitcoin Cash network’s block reward halved as of block 630,000 and BCH miners hashing away at the network will now capture only 6.25 coins per block going forward, instead of 12.5. The BCH halving is the first major SHA256 branch to halve its block reward, as BSV and BTC will halve as well within the next 30 days. Now that the BCH halving has slashed the current block reward, BCH proponents will be focused on the cryptocurrency’s price, hashrate, and the network’s difficulty.
So far, roughly 87.6% of all 21 million BCH that will ever be produced has been mined into existence. There’s still 2.6 million BCH left to mine and since the halving after block 630,000 the issuance rate is halved. When Satoshi Nakamoto created Bitcoin, the inventor designed it so over time it would be harder to obtain bitcoins by mining, which ultimately bolsters the cryptocurrency’s scarcity and inflation rate. Currently, the BCH hashrate hasn’t changed much and it’s remained steady at 3.4-3.7 exahash per second (EH/s). BCH is trading for $266 per coin at the time of publication, while the inflation rate per annum has changed from 3.6% to 1.8%. The mining operation Antpool mined the official halving block #630,000 getting only 6.25 BCH when the pool found the block.
Coindance statistics show that it is currently 2.7% more profitable to mine the BCH chain compared to BTC. There are at least nine BCH miners hashing away at the BCH chain including Antpool, Btc.com, Btc.top, Viabtc, SBI Crypto, Huobi, Pool.Bitcoin.com, Poolin and P2p Pool. Another 7.6% of the hashrate is contributed by stealth miners. It is 302% more expensive to transact on the BTC chain today and the BTC blockchain is 124.5GB larger than the BCH chain. Before the halving, BCH miners obtained 1,800 BCH ($468K) per day (approx. 144 blocks), but now miners will only get 900 coins ($234K) per day plus fees. At the time of publication, the current BCH difficulty is hovering over the 531 billion mark.
Overall the Bitcoin Cash community has been waiting for the momentous halving day and many supporters have shown excitement during the last few weeks. Of course, the coronavirus outbreak has made it so halving parties are not as prominent as they were in 2016. Certainly there’s a number of BCH supporters celebrating online and through virtual communications. The Future of Bitcoin Cash is hosting a virtual meetup today from 10:30 to 16:30 UTC on Zoom in order to discuss the BCH halving. “Join Bitcoin Cash builders, businesses and evangelists as we discuss the future of BCH online during the block reward halving,” the official Twitter account tweeted.
Join us Wed Apr 8 from 10:30 AM UTC for a $BCH community livestream event!
Together, we'll discuss the future of #BitcoinCash
— The Future of Bitcoin Cash (@TheFutureofBCH) April 6, 2020
Cryptocurrency enthusiasts will be watching BCH closely and the three factors mentioned above (price, hashrate, and difficulty) extra carefully so. There still could be volatile price action and changes to the hashrate and difficulty in the next few months going forward.
Bitcoin Cash will have 63 more halvings as the years go by and the network continues to progress. Markets are far from perfect, and it’s anyone’s guess what will happen, but we do know the system is far superior compared to the likes of central banks and fractional banking practices.
What do you think about the Bitcoin Cash halving? Let us know in the comments section below.
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Since the covid-19 outbreak wreaked havoc across the world’s economies, the global multinational investment bank Deutsche Bank has been encouraging the use of digital currencies. The firm’s Twitter account and macro strategist Marion Laboure have been tweeting regularly about how coronavirus infection risks could “accelerate digital payment systems across the world.”
The coronavirus is surely changing the way we look at things and how we operate in our everyday lives. For years now, society has been aware that physical currencies can be dirty and the covid-19 outbreak has exemplified this fact. Researchers have reported that paper currency can carry a higher number of microorganisms than your toilet. It has been said that the seasonal flu virus can survive on a banknote for roughly 17 days. These statistics have caused governments across the world to store notes in separate locations and even scrub them. Last month, the U.S. Federal Reserve was storing repatriated USD from Asia in a different location. The month prior, when covid-19 was ravaging China, the People’s Bank of China (PBoC) explained that repatriated yuan notes were being disinfected.
— Marion Laboure (@MarionLaboure) March 21, 2020
Germany’s Deutsche Bank AG and the financial institution’s macro strategist Marion Laboure think trends like these will bring about a number of digital currency concepts. On April 3, the bank’s official Twitter account stated:
The covid-19 pandemic is accelerating the rise of central bank digital currencies as many governments see the handling of cash as a potential risk factor. This will likely add to calls to move towards digital cash according to our Deutsche Bank research colleague Marion Laboure.
The bank’s macro strategist Marion Laboure has been tweeting about the coronavirus accelerating the use of digital currencies and causing a “transformation.” “The recognition of the infection risk will likely accelerate the push towards digital payment systems across the world,” Laboure said. In a recent report called “The Covid-19 Cash Out,” authors Juergen Braunstein, Marion Laboure, and Sachin Silva wrote about a possible transformation.
“Because the hand-to-hand exchange of physical currency could transmit the coronavirus, countries around the world are being forced to reconsider the use of cash,” the researchers detailed. The report highlights that the authors can’t predict what will happen in a post covid-19 economy, but they can envision a new type of payment structure. “Digital versions of cash currency, such as Sweden’s recently announced e-krona, are promising examples of what could be in store,” the report concludes.
Various other tweets and reports by Laboure and the official Deutsche Bank Twitter account mention central bank digital currencies (CBDCs). The financial institution’s reports also talk about digital assets that exist today like bitcoin, e-wallets, stablecoins, the possibility of a digital yuan, and balancing the monetary system. Various quotes from the bank’s researchers stress things like “By 2025, e-wallets are expected to be the second-most preferred method of payment after cards – and the first among millennials” and how the “transition to digital payments could potentially rebalance global economic power.”
Of course, the bank is shilling CBDCs and stablecoin concepts that represent digital fiat reserves. These new digital systems would be no different than the digits citizens use today, except it would use a blockchain. It’s not very likely a CBDC will rebalance any power because it’s centralized. Society has already seen what modern central banks worldwide will do to the citizenry’s money over time. With cryptocurrencies like bitcoin, on the other hand, Satoshi created a financial system that is not controlled by a single entity, corporation, government, or central bank.
It might be small right now, but this is why the crypto economy is worth close to a quarter of a trillion U.S. dollars. People find value in cryptocurrencies that can give people financial privacy, censorship resistance, and allow them to transact in a peer-to-peer fashion. Deutsche Bank is right that physical banknotes are dirty but the financial incumbent’s digital transformation ideas are questionable, to say the least. Ever since the modern central bank was born and the many that followed after, the monetary system has been plagued with busts and booms.
What do you think about Deutsche Bank shilling digital currencies because of covid-19? Let us know in the comments section below.
The post Deutsche Bank Envisions Post Covid-19 Economy Accelerating Digital Payments appeared first on Bitcoin News.
Virgin Galactic Chairman Chamath Palihapitiya has shared his bitcoin investment strategy, predicting that bitcoin’s price could reach a million dollars. He further suggested that everybody should have 1% of their assets in bitcoin since it is “a fantastic hedge.”
Chamath Palihapitiya, the chairman of Virgin Galactic and founder of investment firm Social Capital, recently discussed bitcoin and how to invest during the current financial crisis. In a podcast interview published last week with Morgan Creek Digital co-founder Anthony Pompliano, Palihapitiya was asked about his bitcoin investment strategy. Responding to questions about whether he had bought, sold or changed the bitcoin allocation in his portfolio in any way, the venture capitalist revealed:
In 2013, I bought a lot and at one point I think I had almost 5% of all the bitcoins. My basis is about 80 bucks a coin. I’ve never bought more.
“Most of my bitcoin now sits with a company and they use it for trading purposes. They use it to run a bunch of other strategies,” he added. “I did that mostly for safety and security and peace of mind. I didn’t want to deal with it. I wanted to own equity in the business. That equity can be hedged. That equity can be tax structured advantageously, and then it allows them to run a big business which generates cash, and I can get a cash and dividend stream.” He proceeded to confirm, “so I have not bought since I initially basically wrote that article for Bloomberg in 2013.”
Bitcoin is “still a speculative instrument and it’s too speculative for it to be reliable,” Palihapitiya opined. “So if you are going to make the case that it should replace fiat currency, well one thing you have to look at is the volatility of the U.S. dollar and you can’t replace it with something that’s nine sigmas more volatile. It doesn’t work.”
He then shared his prediction of how high he thinks the price of bitcoin could be over the next 10 years. “It is a 10-year trajectory,” he began. “I’ve always thought of bitcoin as a very binary investment, whether it goes from 80 to 8,000 to 6,000 to 3,000 to 13,000, it doesn’t matter.” Noting that bitcoin’s price will be “either zero or it’s millions,” Palihapitiya asserted:
What it will do is it will create a quasi gold standard. It’ll create an index, except instead of having to own gold where gold is owned by central banks, it is an instrument that has value that’s determined in between its participants, and it’s owned by everybody.
Palihapitiya has founded six companies and currently serves on the board of nine others, including Syapse Inc. and Remind101. He also previously worked at Facebook, Mayfield Fund, AOL, and Winmap.
Palihapitiya also discussed bitcoin investing in an interview with CNBC last month. The Virgin Galactic chairman reiterated that his view on bitcoin remained unchanged since he authored the Bloomberg article on the subject in 2013, elaborating:
Everybody should probably have 1% of their assets in bitcoin specifically. I still believe that today and I think it [bitcoin] is just a fantastic hedge.
When asked about his thoughts on what Berkshire Hathaway CEO Warren Buffett said about bitcoin, Palihapitiya emphasized that the billionaire “is completely wrong and outdated on this point of view.” Buffett insists that he does not own any bitcoin and never will. Repeatedly saying that it has zero value, he once called the cryptocurrency “rat poison squared.”
Palihapitiya clarified to CNBC that investing in bitcoin should not be event-driven. “When you wake up and you see a coronavirus scare and the Dow down 2,000, you should not be going in and buying bitcoin — that is an idiotic strategy,” he opined. “I think a reasonable strategy is to say 1% of my net worth should be in something that is completely uncorrelated to the world and how the world works.” The Virgin Galactic chairman suggested going into bitcoin “quietly” and letting the investment accumulate. He concluded, “Then you just never look at it again and hope that that insurance under the mattress never has to come due,” adding:
But if it does, it will protect you because that thing will be hundreds of thousands or a million dollars a coin.
What do you think about Chamath Palihapitiya’s view on bitcoin? Let us know in the comments section below.
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Digital asset markets have been gathering some gains during the last few days and tokens like stablecoins have seen massive demand since the start of the market carnage. Alongside stablecoins, gold-backed digital assets like Tether Gold, Pax Gold, and Digix Gold have seen tremendous trade volumes as well. In fact, cryptocurrencies that claim to be backed by gold are selling for 1-5% above gold’s .999 per Troy ounce spot price.
Crypto assets are doing well on Tuesday following the rebound equity markets saw the day prior. In addition to digital currency markets, precious metals have been rising on April 7 as well. At the time of publication, the price of gold per Troy ounce is hovering around $1,654. Gold has been considered a safe-haven asset during these uncertain economic times that were sparked by the covid-19 outbreak. Similarly to crypto assets, gold prices took a hit on March 12 but gold values have regained those losses since then. There’s been a lot of demand for gold and reports have noted during the last two weeks that gold dealers have seen “big shortages of small bars and gold coins.”
“People want to buy, not to sell gold,” Mark O’Byrne, the founder of the firm Goldcore told the press on April 2. “We have a buyers’ waiting list and we emailed our clients seeing who wished to sell their gold. At this time there are roughly only one or two sellers for every 99 buyers,” O’Byrne added.
The demand for gold assets has found its way into the cryptocurrency industry as well. The number of projects that claim their tokens are backed by physical gold has seen increased buying and premiums in the last few weeks. Coins like Tether Gold (XAUT) and Digix Gold (DGX) are swapping for 1-5% above gold’s .999 per Troy ounce spot price. For instance, the XAUT token is selling for 1.5% more than spot prices on Tuesday. According to the firm Tether Limited, a full XAUT “represents one troy fine ounce of gold on a London Good Delivery bar.” With the current gold spot price trading for $1,654, a single XAUT is trading for $1,679 to $1,688 per token depending on the exchange used.
Then there’s the Ethereum-based gold project Digix with its DGX coin, a token that’s allegedly redeemable for 1 gram of gold per DGX. If one was to obtain a hair over 31 DGX on Tuesday, April 7, they would spend 4.47% more than gold’s spot price at $1,728 for the lot of 31.1 tokens. Pax Gold today is trading for a touch less than the spot price of gold as each PAXG is swapping for $1,651 per token. The company Pax Global claims that “every PAX Gold token is backed by an ounce of allocated gold.” Users who hold PAXG can utilize a tool that looks up the serial number and information about the physical gold’s source.
A number of other digital assets that allege to have physical gold backing are doing far better than the spot price of physical gold bars. Of course, obtaining real bars and coins made of gold are also carrying similar premiums. Local gold dealers are desperately contacting wholesalers to get their hands on smaller bars and coinage. While retail buyers are allegedly spending 10-15% more to get their hands on physical gold, it seems crypto tokens backed by gold are seeing similar premiums.
What do you think about the demand for tokens that claim to be backed by physical gold? Let us know in the comments below.
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Pundits globally are flabbergasted that Swedes still go to cafés, eat at restaurants and hang out in parks without face masks on. The coronavirus in Sweden has so far claimed 611 deaths, with 7,849 confirmed cases. Swedish people still send their kids to school and are not hoarding much of anything compared to countries like the U.S. However, just like in most of the world, many businesses are hit hard and the country’s central bank has fired up the printing presses.
The Swedish central bank, Riksbanken, the world’s oldest-running operation of its kind, has predictably responded to the crisis by starting the printing presses. They’ve promised banks a 500 billion SEK ($55 billion) credit line to “grease” the wheels, making sure there is enough liquidity in the system. Riksbanken chief Stefan Ingves has also stated that there are no limits to how much these presses can print, carefully avoiding the term QE (quantitative easing). Ingves also stated at a press conference:
The Riksbank stands ready to do more if and when necessary to help the Swedish economy get through this crisis as well.
Citing liquidity problems on the financial markets, the Swedish central bank is now planning to buy government, corporate and mortgage bonds. It is also auctioning USD-denominated loans for around $70 billion. Riksbanken has already increased its government bond-buying target by $30 billion, after leaving its most important interest rate — the overnight repurchase rate — at zero percent.
One of the explanations for the Swedish approach to lockdowns is its rather unique governance system. Swedes don’t let the recently elected political leader call all the shots. Here, the local authorities are actually in charge, or at least that is the design of the Swedish system, and the country’s unique response to the coronavirus pandemic may be viewed in this light. It’s a form of democracy comparable to the systems in Finland and Switzerland, where the state apparatus has also aimed for the decentralization of power for centuries. In contrast to the never-ending stream of decrees from “strong leaders,” like Trump or Erdogan, and their citizens’ (apparent) quick obedience, in Sweden the centuries-old authorities often have a larger say in how things should progress than the prime minister, and its people actually listen.
Consequently, the Swedish public has followed closely along with the Swedish health authorities’ daily TV-broadcasted explanations on which measures might be effective. For example, washing hands and physical distancing are, but wearing masks may not be so much. Protecting the high-risk groups is a priority, but schools, workplaces, and restaurants stay open for all else — albeit not crowded and with new safety routines to avoid spreading the virus. This approach may be summed up by the unique Swedish word “lagom,” which roughly means “just right,” “not too much,” or “not too little.” Lately though, reports of spreading covid-19 infections have been seeping out from many elderly homes in Sweden. A daily updated map on the number of cases and deaths in the country can be found here.
In the aftermath and analysis phase of the coronavirus pandemic, the Swedish responses to the virus and subsequent “lagom” actions taken will be analyzed in great detail. Still, many cafés, restaurants, and shops stay open today, April 7, even in the most afflicted areas of the capital city of Stockholm.
The nordic confidence in the established authorities culls Swedish elected politicians’ urge to decree “tough” measures like a “lock-down.” They are not afraid their popularity ratings will fall if they do not act “tough,” as few Swedes find the “tough” authoritarian leader attractive. The prime minister is temporary, but the central bank and the Swedish health authority are persistent organizations, the former in operation since the 15th century.
The country is also one of the world’s most secularized societies, with the least religious folks in the world, turning to science rather than faith when combating covid-19. The Swedish health authority, Folkhälsomyndigheten (FHM), reigns supreme. Swedish politicians can avoid some of the responsibilities of “knowing best,” and can defer decisions on rules for social distancing and public transport, among other things.
Swedish Prime Minister Stefan Löfven often refers to letting “the experts” steer, instead of having himself prognosticating the future and deciding on actions to counteract a never-before-seen virus.
In the meantime, while the coronavirus has infected at least one employee at the bank, the Swedish central bank is testing its own digital dollar, the “e-krona.” When asked about the project, its chief Stefan Ingves repeatedly told journalists that “Bitcoin is not money,” but that a digital dollar is needed to keep up with the times.
By introducing its own electronic currency and moving away from paper cash, the central bank could actually continue lowering the interest rate into negative territories. Sweden is already hailed as the world’s most cashless society. When few have access to actual cash, few can benefit from those negative interest rates by hoarding cash under the mattress. The beneficiaries of some loans will reverse; the lender will have to pay, while the beneficiary of the loan will receive extra interest from taking out a loan. In Germany, people are already paying to lock up cash in 30-year government bonds, and in Denmark negative interest rate mortgages have been introduced. Where these strange actions will take the economy is hard to say. Is this whole process, in the end, giving the central bank a new tool to “reverse-inflate” away loans?
The reactions to the covid-19 pandemic by politicians and central bankers may lead to disastrous, long-term effects on the economy, as politicians print way too much currency trying to fix the current slowdown. They inadvertently inflate away people’s savings and paychecks over the longer term. Printing paper cash or the equivalence in electronic cash (creating debt) is not the same as “creating money,” as currency isn’t money. Gold is money, however, as is bitcoin. Keynesian central bankers are now hoarding gold, while Austrian libertarians and anarchists are hoarding bitcoin. The future will tell who was right.
What do you think about the Swedish “lagom” approach to the pandemic? Let us know in the comments below.
Digital currency markets have been rising again as the entire market capitalization of all 5,000+ coins has jumped above the $200 billion mark. The increase in crypto trade volume and coin values has followed alongside the recovery traditional equity markets saw on Monday. On Tuesday, most of the digital assets in the top ten are up between 4-14% and crypto trade volumes have doubled in the last 24 hours.
During the last few weeks, digital currency proponents and crypto traders have been wondering what will happen to bitcoin and the slew of other coins in the crypto industry. For instance, the entire cryptocurrency market capitalization lost a whopping $44 billion on March 12, 2020, otherwise known as ‘Black Thursday.’ BTC prices dropped to a low of $3,870 on March 12. The following day, BTC regained some of the losses when it was hovering between $5,300-5,600 per coin on March 13.
Since then, BTC has gained 30% since the low and on April 7, prices are currently meandering between $7,300-$7,425 during Tuesday morning’s trading sessions. BTC has gained about 4% in the last 24 hours and the coin is up 15% for the week. Ethereum is priced around $174 per ETH and has gained 13.3% today. Behind ETH is XRP, which is swapping for $0.20 per coin as XRP markets are up by 6.8%.
Bitcoin cash (BCH) is trading for $259 per coin today and has gained 7.2% in the last 24 hours. BCH is up 18% for the week and has also gained 8.5% during the last 90 days. The top trading pair with BCH on Tuesday is tether (USDT), which is capturing around 63% of all BCH trades. This is followed by BTC (20.71%), USD (9.42%), KRW (2.19%), ETH (1.65%), EUR (0.91%), and JPY (0.82%).
Bitcoin cash has a liquid market cap that’s hovering around $4.8 billion on Tuesday, and BCH is the fifth most trade crypto below EOS and above LTC. BCH reported trade volume is around $4.8 billion, but messari.io’s “real volume” statistics note it’s around $35 million. In 22 hours, BCH will be the first major SHA256 branch to experience a halving. After April 8, BCH miners will go from receiving 12.5 coins per block to 6.25 BCH, plus transaction fees.
Market analyst from Etoro, Simon Peters, noted in a recent investors’ report that last week’s financial data was far more worrisome than this week’s changes. “Economic data released last week was worrying, to say the least,” Peters wrote. “Midweek figures revealing a drop in exports from big Asian economies, such as Japan and South Korea, hit equity markets globally, resulting in the S&P 500 and the FTSE 100 both dropping considerably.” Peters remarked that cryptocurrency markets, however, have managed to “buck the trend.”
“From a crypto asset point of view, however, both bitcoin and altcoins have performed well during this difficult period,” the Etoro analyst added. “Bitcoin has been in a consolidation phase, remaining steady in between $6,000 and $7,000. There has been the odd spike, both to the upside and the downside, but overall, I am happy with the solidity of the price at the moment. With the Fed carrying out its policy of unlimited quantitative easing, buying assets left right and center, I think bitcoin is going to be pushing towards $7,500 in the short term.
While BTC prices remain above the $7K region and a slew of other digital assets follow suit, many market strategists believe crypto investors are less worried. In just a week’s time, sentiment among crypto traders and investors has changed from bearish to bullish. “[Bitcoin and cryptocurrency] purchases follow the signs of improving sentiment in the stock markets,” noted Alex Kuptsikevich, Fxpro’s senior market analyst. “As soon as risk assets start to attract demand actively, institutional investors may also increase their positions in the cryptocurrency,” Kuptsikevich added on Monday.
Additionally, Naeem Aslam the chief market strategist from Avatrade remarked that crypto investors are far more optimistic now. “Investors are shrugging off the pessimism,” Aslam wrote. However, Aslam said that covid-19 might not be over so quickly and the virus could make it so “we could be in for a longer period of recession.”
Overall digital assets have outshined U.S. stock markets and precious metals as well. The price of BTC has surpassed the S&P 500’s gains and the rest of the top U.S. indexes. Since equity markets started showing signs of recovery, gold has moved very little and has only gained 2% since the start of the year. Despite social media and forums showing a lot more optimism among crypto investors, the multifactorial Crypto Fear & Greed Index (CFGI) shows “extreme fear” is still in the air.
Traders understand that digital currencies are doing very well but economic uncertainty, in general, is clouding most people’s predictions. As far as BTC prices are concerned and a few other digital asset values, key resistance has started to form. If crypto assets can’t break these regions, then another pullback could be in the cards. Despite the looming doubt, researchers believe that the response to covid-19 from governments and central banks will be a positive influence on crypto assets.
“We believe that the downstream impact of the government’s fiscal and monetary response to the crisis will be strongly positive for crypto,” Bitwise’s Global Head of Research Matt Hougan remarked in the firm’s April 2020 Investor Letter.
Where do you see the crypto markets heading from here? Let us know in the comments below.
The post Market Update: Traders ‘Buck the Trend’ Pushing Crypto Market Cap Above $200 Billion appeared first on Bitcoin News.
With the recent coronavirus spread and its overall effect on the global economy, some people believe the powers that be are preparing a financial reset. During these times, a number of bitcoiners think a bitcoin-induced form of fiat currency demonetization will take place, otherwise known as ‘hyperbitcoinization.’ However, a few speculators believe digital assets in the crypto economy are actually meant to further the underground shadow economy. In a world filled with overbearing politicians and malicious data-collecting corporations, the surveillance state could easily make cryptocurrencies far more valuable by fueling the world’s shadow markets.
A number of bitcoiners think that someday, bitcoin could grow so popular that it becomes the most used money in the world. These speculators believe that the protocol will be uncontrollable and eventually be adopted by everyone leading to hyperbitcoinization. But what if bitcoin covers only a fraction of the global economy, and more specifically the black and gray markets that operate beneath the legal system. Adoption of a crypto that fuels the shadow economy would still be a threat to the manipulated fiat system and it could remain uncontrollable. In fact, estimates show that the shadow economy is the second-largest economy in the world. When bitcoin was born in 2009, the Organisation for Economic Co-operation and Development (OECD) predicted that by this year in 2020: “more than two-thirds of the world’s workers will work in the shadow economy.”
The shadow economy or ‘System D’ isn’t just black market trades like drugs, weapons, and items the government has banned. System D participants include any paid workers who don’t report their financial transactions to the government and the funds remain untaxed. Traditionally, the general public has always assumed that the shadow economy exists in regions with fewer laws and in underdeveloped parts of the world. But that’s not the case at all, as underground financial systems exist in countries with a lot of wealth, high taxes, and significant amounts of regulation. The top countries in the world with the biggest shadow economies include places like the United States, Brazil, Italy, Russia, Germany, France, Japan, the United Kingdom, and Spain.
With the coronavirus plaguing the world and industry shutdowns squeezing the economy, some individuals think that governments and central bankers are planning a financial reset. Speculators assume that it’s the perfect time to usher in a “New Deal” similar to the way Wall Street and Franklin D. Roosevelt (FDR) restructured the American monetary system. Governments and central bankers are already pushing a few versions of digital cash and a cashless society, but the systems are centralized and meant to monitor people’s everyday transactions. Under the veil of crisis, nation states could easily reset the financial system right now by creating a cashless system that’s maintained by central bankers and bureaucrats.
Bitcoin and decentralized cryptocurrencies could still experience a smaller form of hyperbitcoinization by people who want to escape the “Green New Deal.” Cryptocurrencies could grow immensely valuable, even though they would only be used within the underground financial system. Digital money like bitcoin could easily be valued for far more than six-figures if entire the shadow economy adopted the decentralized asset.
The cypherpunks in the ‘90s discussed the rise of a private digital cash system that bolsters market anarchy and a new monetary system. In the 1994 Wired article “E-Money – That’s What I Want,” the editorial describes how the cypherpunks envisioned a brave new world that leverages a digital cash system. “The killer application for electronic networks isn’t video-on-demand,” explained Wired columnist Steven Levy. “It’s going to hit you where it really matters – in your wallet. It’s not only going to revolutionize the net, but it will also change the global economy,” Levy stressed. Back then, no one had heard of Satoshi Nakamoto and people’s concepts of digital cash stemmed from individuals like the renowned cryptographer David Chaum, the founder of Digicash. Other cypherpunks like Tim May and Wei Dai, however, envisioned a world with untraceable digital cash and the concepts of crypto anarchy.
These visionaries, who came well before Nakamoto, predicted systems that not only increased economic efficiency, but also the ability to transact across any border without censorship. Of course, individuals like Tim May forecasted that an underground electronic cash system could make big problems for the nation states. With an untraceable digital asset, it could destroy the benchmark rates of legal tender, increase tax evasion and money laundering, and disrupt the world’s money supply. If digital cash is just as convenient as today’s credit cards but also facilitates private financial transactions, it will likely continue to grow stronger. But unfortunately, it also will be attacked a lot more as well, as a true untraceable electronic cash system that’s not controlled by a single entity would be the nation states’ archnemesis.
The techno-thriller “Daemon” written by novelist Daniel Suarez describes a system that is similar to decentralized cryptocurrencies like bitcoin. In the novel, an individual publishes a new type of software that creates a cyber-space fueled shadow economy. Essentially, system users are rewarded for developing “decentralized hubs” and peer-to-peer networks by leveraging the Daemon. The very same thing could happen to bitcoin and the crypto economy to where the poor, middle class and even the rich can participate in hiding money from big brother’s watchful eyes. In the novel Daemon, Suarez tells the readers about online web markets that are hidden from the general public and operatives leveraging the financial system to exchange important data. 12 years before Daemon was published, the cypherpunk Eric Hughes also envisioned “anonymous systems.”
“We the Cypherpunks are dedicated to building anonymous systems,” Hughes wrote in 1993. “We are defending our privacy with cryptography, with anonymous mail forwarding systems, with digital signatures, and with electronic money,” he added. Hughe’s continued:
Cypherpunks write code. We know that someone has to write software to defend privacy, and since we can’t get privacy unless we all do, we’re going to write it. We publish our code so that our fellow Cypherpunks may practice and play with it. Our code is free for all to use, worldwide. We don’t much care if you don’t approve of the software we write. We know that software can’t be destroyed and that a widely dispersed system can’t be shut down.
Of course, a number of people begging governments to approve cryptocurrencies like bitcoin and who hope the status quo adopts a strong digital currency, really don’t want the shadow market associated with the technology. Despite what they think, crypto transactions are still being used to skip taxes today and pay for things on the darknet. For instance, a report published in 2018 finds that illegal activity stemming from BTC transactions accounted for 44% of all transactions. It’s quite possible that bitcoin and cryptocurrencies won’t serve the white markets and traditional bankers and a slew of bitcoiners will be fine with that type of result. In 2015, the founder of Defense Distributed (DD), Cody Wilson told me in an interview how he would probably celebrate bitcoin being driven underground.
“Without a big expression of intentionality to what is considered not the polite things to do with bitcoin — specifically money laundering, specifically private access to your coin, holding your own keys,” Cody stressed during our interview. “Without projects that express these principles, you have nothing of what you want with a revolution. This leaves me to proclaim that most people involved with bitcoin were not serious about that in the first place.”
What do you think about a shadow economy hyperbitcoinization event? Let us know in the comments section below.
The post Hyperbitcoinization: Visions of Bitcoin Fueling the Post Covid-19 Shadow Economy appeared first on Bitcoin News.
One of the most bullish charts for predicting the price of bitcoin is the infamous stock-to-flow (S2F) model. The S2F analysis shows the price of BTC could reach $55,000 in the near future. One advocate of the S2F model, the Twitter account known as ‘Plan B,’ wrote a report about the subject and the article was extremely popular and translated into multiple languages. However, skeptics believe the S2F model is faulty and it’s most prominent supporter has said S2F is not entirely accurate, but “an order of magnitude right.”
There have been hundreds of bitcoin price predictions over the last decade, but most of them stem from people pulling numbers out of thin air. Even when a myriad of analysts and crypto luminaries pick digital currency prices out of a hat and get it wrong, no one really cares. Although, there are a few models and charting techniques that many strategists and traders wholeheartedly believe in, like the signals from Bollinger Bands and Elliott Wave Theory. The analyst known as Plan B (@100trillionusd) has popularized the stock-to-flow (S2F) model, which measures the price of BTC using the number of coins in circulation and the flow or issuance rate. Plan B’s editorial called “Modeling Bitcoin’s Value with Scarcity” has gone viral and has been translated into a variety of different languages.
Essentially, S2F divides abundance with demand by treating BTC like commodities such as gold or platinum. So any analyst can use the model to evaluate the current BTC in circulation against the number of coins mined during a specific year. The bitcoin halvings, the period of time when the block rewards are cut in half, play a crucial role in the S2F model. Because the halvings make it harder for miners to stock crypto inventory the division of this rate by the value of measured abundance. Bitcoiners didn’t make the S2F model as it’s been used for quite some time with gold, the commodity with the most S2F ratio. In Plan B’s research article, he notes that bitcoin is the “first scarce digital object the world has ever seen [and] it is scarce like silver & gold, and can be sent over the internet, radio, satellite etc.”
“I calculated bitcoin’s monthly SF and value from Dec. 2009 to Feb. 2019 (111 data points in total),” Plan B wrote in his report. “Number of blocks per month can be directly queried from the bitcoin blockchain with Python/RPC/bitcoind. Actual number of blocks differs quite a bit from the theoretical number because blocks are not produced exactly every 10 minutes (e.g. in the first year 2009 there were significantly less blocks). With the number of blocks per month and known block subsidy, you can calculate flow and stock.” Plan B further states:
I corrected for lost coins by arbitrarily disregarding the first million coins (7 months) in the SF calculation. More accurate adjusting for lost coins will be a subject for future research.
Plan B’s report concludes that the “[S2F model predicts a bitcoin market value of $1 [trillion] after next halving in May 2020, which translates in a bitcoin price of $55,000.” However, not everyone thinks the S2F model is accurate and a number of skeptics have attempted to invalidate the S2F concept in relation to bitcoin’s price.
A recent report published on April 1, by the Seattle-based crypto hedge fund called “Lost in Space – Bitcoin and the Halving,” describes why SF2 econometric models are too simplistic. The firm Strix Leviathan details halving theories and stock-to-flow models could be false narratives as the report underlines that people should “not [exert] blind faith in one specific outcome.”
“Doing so leaves one’s investment subject to the whims and beliefs of the crowd while surrendering returns to the randomness of luck,” wrote Strix Leviathan portfolio manager Nico Cordeiro.
Despite the covid-19 effects on the global economy, BTC prices were initially affected on March 12 (the price dipped to $3,800 per coin) otherwise known as ‘Black Thursday,’ but prices have since risen back above the $7K zone. On April 5, Plan B tweeted a quote from the 19th-century British logician, Carveth Read, which admits predictions are not always correct all the time. The tweet said “‘It’s better to be approximately right than exactly wrong’ – Carveth Read. [The] S2F model is not dead accurate, but an order of magnitude right.” The analyst’s S2F model for bitcoin has been criticized on numerous occasions and especially after the coronavirus shocked the world’s financial system.
Still, numerous people believe the S2F model might not exactly accurate, but pretty damn close. Another report published on March 27 tries to invalidate the statistics behind the S2F model, but the report rejects the theories that S2F doesn’t have an important role. “Whilst many tests have been able to be shown to be incorrect or have series errors, we have been able to reject the hypothesis that stock-to-flow does not have an important non-spurious influence on the US dollar price of Bitcoin,” explains the analysis called “Stock-to-Flow Influences on Bitcoin Price.”
— Nick☣ (@btconometrics) April 3, 2020
“The bounds test for a level relationship in the ARDL model provides very robust evidence to reject the null hypothesis and conclude that stock-to-flow does have a significant influence on the U.S. dollar price of bitcoin,” the report concludes.
Despite some criticism from crypto Twitter and other researchers, Plan B still seems confident in his model. “So BTC has been oscillating around S2F value of $7,000 for 2.5 years now,” Plan B tweeted. “Just like before 2016 halving ($300) and before 2012 halving ($6). Excited to see if we are going to add another zero after the halving in May,” Plan B remarked. The researcher also stressed a few days earlier on April 1:
Both bitcoin S2F cross-asset model (based on gold, silver etc) and S2F time series model (historical price path) point to $1 [trillion]+ BTC market cap in 2020-2024 (red circle, where orange and blue line overlap). $1 [trillion]+ market cap translates into $55K+ BTC price.
What do you think about the controversial S2F model? Let us know in the comments below.
The post Blind Faith in S2F Models: Analysts Question Measuring Bitcoin’s Price With Stock-to-Flow appeared first on Bitcoin News.
Since the coronavirus started spreading in the U.S., two banks have failed and were shut down by state banking authorities. One was a bank in West Virginia and the other was in the state of Nebraska. The governor of West Virginia has already issued a stay-at-home order due to rising covid-19 cases.
The latest bank to fail in the U.S. was a small bank in West Virginia called “The First State Bank.” It was closed on Friday by the state’s Division of Financial Institutions, according to the Federal Deposit Insurance Corporation (FDIC), an independent agency of the U.S. government that aims to protect the funds depositors place in banks and savings associations. The agency explained:
The First State Bank has experienced longstanding capital and asset quality issues, operating with financial difficulties since 2015. The bank’s December 31, 2019 financial reports indicated capital levels were too low to allow continued operations under federal and state law.
The FDIC subsequently entered into a purchase and assumption agreement with another bank in the state, MVB Bank of Fairmont, to assume all of the deposits of the failed bank. Depositors of The First State Bank automatically became depositors of MVB Bank. As of Dec. 31, 2019, The First State Bank had approximately $152.4 million in total assets and $139.5 million in total deposits.
The four branches of The First State Bank have reopened as branches of MVB Bank. The agency emphasized that it “strongly encourages bank customers to follow Centers for Disease Control and Prevention guidance on social distancing and utilize online and electronic banking capabilities. In keeping with West Virginia Governor Jim Justice’s Stay-at-Home Order, customers should visit a bank branch only if an in-person visit is essential and only after making an appointment.”
Following the FDIC’s announcement, some people voiced their concerns on social media that more banks will fail due to the pandemic. However, the agency insisted that the failure of The First State Bank was not due to the coronavirus outbreak.
The first covid-19 case in the U.S. was confirmed on Jan. 21, and the first bank in the country to fail after that was Ericson State Bank in Nebraska. The bank, which had only one branch, was closed down by the state’s Department of Banking and Finance on Feb. 14.
The FDIC subsequently entered into a purchase and assumption agreement with Farmers and Merchants Bank in Milford, Nebraska, to assume all of the deposits of the failed bank. As of Dec. 31, 2019, Ericson State Bank had approximately $100.9 million in total assets and $95.2 million in total deposits.
Prior to The First State Bank and Ericson State Bank, four U.S. banks failed in 2019, none of which were in the first four months of the year. No banks failed in 2018, according to the FDIC.
Do you think more banks will fail this year? Let us know in the comments section below.
The post 2 American Banks Have Failed Since Coronavirus Started Spreading in the US appeared first on Bitcoin News.
The move follows a similar listing on the KuCoin exchange and will drive further usage of cryptocurrencies as the innovative Sensorium Galaxy platform is set to attract millions of users worldwide.
Los Angeles, 06 April, 2020: Sensorium Corporation has listed its digital currency Senso Token on HitBTC one of the oldest and most advanced cryptocurrency platforms operating today. The move follows a recent listing of Senso Token on the KuCoin cryptocurrency platform and signals Sensorium’s intention to expand its operations and enable users to engage deeply with Sensorium Galaxy, the unique and industry leading 3D social virtual reality platform.
HiBTC is one of the world’s top 10 and most popular cryptocurrency exchanges. Users can use the token to make Sensorium Galaxy gaming-related purchases and exchange content. Third party developers can use it to create unique in-location environments and customised events for the 3D virtual environment. Supported trading pair includes SENSO / USDT.
Brian Kean, Chief Communication Officer, Sensorium Corporation said: “This listing on HitBTC reflects our ambitious growth plans. We are in negotiations with world-leading artists and venues to create 3D social experiences unique to Sensorium Galaxy and as such as the platform develops we are anticipating millions of users worldwide. The HitBTC listing will provide these users with the means to buy and sell within the games. It also follows a recent listing on the KuCoin cryptocurrency exchange both of which reflect our strong commitment to and ardent belief in the significant future of cryptocurrencies.”
The Senso Token has been developed on the Ethereum network, the global decentralized platform for digital currencies and meets the ERC20 standard, the de facto technical standard for token implementation on the Ethereum blockchain.
Peter Swen, HitBTC, Marketing team said: “As a company fully committed to the advancement and growth of financial technology we are pleased to integrate the Senso Token into our platform. The inroads that the Sensorium Corporation is making into the digital gaming space are significant and as our industry expands we look forward to working with the Sensorium team.”
Sensorium Galaxy brings a new form of entertainment and social engagement to the world by providing multi-user access to 3D virtual entertainment worlds. For instance, users will be able to visit unique concerts and events with friends, attend in real-time, create their own avatars, buy content and interact with their friends and other attendees at the event, all within a 3D world.
HitBTC is a crypto exchange that has over 800 trading pairs. The platform was created in 2013, and provides exchange, custodial and other related services. The UI was developed to meet the needs of the most demanding and sophisticated traders. User security is reportedly secure via stringent security procedures, including cold storage and encryption technology. HitBTC also offers 2-factor authentication and various whitelists. The platform has an LD4 Data Center in London, which has reportedly decreased its data-access latency while expanding the platform’s technical capabilities.
About Sensorium Galaxy
Sensorium Corporation, together with Redpill VR, is currently developing the Sensorium Galaxy social virtual reality platform which enables the seamless broadcast of synchronized virtual reality content to users all around the globe. This platform signals a radical change in the way users can experience virtual reality, moving beyond its previously solitary nature. Sensorium Galaxy enables users to interact with each other as events are either live-streamed or accessed from a library. Sensorium Galaxy also signals an evolution of social networks, with users not confined to one-dimensional platforms, but able to engage and interact with friends and other users in a virtual environment. Sensorium Galaxy will be comprised of themed planets that present users with different options for social interaction.
About Sensorium Corporation
Sensorium Corporation is a technology company that creates digital simulations of real-world venues and virtual worlds in cooperation with its content partners – globally recognized concert venues, clubs and festivals. Investment in the project to date is approximately $70 million, and it has come from a group of EU companies in both the gaming and entertainment industries.
For more information, visit sensoriumxr.com
HitBTC is a crypto exchange that has over 800 trading pairs. The platform was created in 2013, and provides exchange, custodial and other related services. HitBTC offers a range of APIs such as REST, WebSocket, FIX API. The UI was developed to meet the needs of the most demanding and sophisticated traders. Users can take advantage of rebates and competitive trading fees via the Trading Fee Tier system.
Contact Email Address
This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.
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Robert Kiyosaki, the author of the popular book “Rich Dad Poor Dad,” talked about the death of the U.S. dollar and how one should take the government’s free money and buy bitcoin. The best-selling author also explained the cost of free money.
The author of Rich Dad Poor Dad has chimed in on the impact of the free money the U.S. government is giving to small business owners on the U.S. dollar. From his Twitter account with over 1.3 million followers, he wrote on Saturday: “Death of dollar. People desperate for money. Very sad. If [the] government gives you free money, take it yet spend it wisely. Do not save. Buy gold, silver, bitcoin. Dollar is dying.”
Rich Dad Poor Dad is a 1997 book co-authored by Kiyosaki and Sharon Lechter. Over 32 million copies of the book have been sold in over 51 languages across more than 109 countries. It has been on the New York Times Best Seller List for over six years. The book teaches the importance of financial literacy, financial independence and building wealth through various methods, such as investing in real estate and owning your own business.
This is not the first time Kiyosaki has advocated for bitcoin. In August 2018, he proclaimed that “The US dollar is a scam,” adding that “the dollar is toast because gold and silver and cybercurrency are going to take it out.” The best-selling author was also quoted as saying: “The US Dollar is gone … In the year 2000 there was one currency, the US Dollar. It was called the reserve currency of the world … and then came bitcoin or cybercurrency.”
Kiyosaki’s tweet advocating for bitcoin on Saturday was one in a series responding to the U.S. government’s Paycheck Protection Program (PPP), which promises $350 billion to small businesses affected by the coronavirus pandemic. “Small biz entrepreneurs offered payroll for employees for free,” he tweeted on Thursday, a day before the program was expected to go live. “Example. If company payroll for 8 weeks [totals] $1 million, banks will give [a] $1 million loan. Don’t have to pay back. Entrepreneurs win again. Socialism for rich.”
While emphasizing that most people want free money, even himself, Kiyosaki questioned, “What is the price of free money?” Assuming the role of a financial literacy teacher once again, Kiyosaki asked his Twitter followers how free money could destroy the U.S. dollar. He explained that by definition, “Money is an idea backed by confidence representing work truly done and is exchangeable.” The Rich Dad Poor Dad author concluded: “Paying people not to work destroys confidence in government $ and [the] exchange of $. Trust gold and silver-gods money [and] crypto-peoples money.”
What do you think of Kiyosaki’s advice to buy bitcoin? Let us know in the comments section below.
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Despite the coronavirus pandemic and the resulting financial crisis, at least 10 countries have made announcements regarding cryptocurrency regulation since our last regulatory roundup. They include Japan, Malaysia, Singapore, China, Spain, Germany, India, the Philippines, the U.S., and South Korea.
The world is going through a crisis with an escalating number of covid-19 cases causing economic turmoil in many countries. The International Monetary Fund (IMF) has declared a global recession, noting that at least 80 countries have asked for its assistance. Nonetheless, since our last regulatory roundup, a number of countries have made announcements relating to their cryptocurrency regulations.
During the past week, two countries approved new cryptocurrency exchanges. Japan approved its 23rd crypto exchange while Malaysia followed suit and fully approved a crypto exchange operator even as the country extended the nationwide lockdown.
The Monetary Authority of Singapore has granted a temporary exemption from holding a license to a number of cryptocurrency companies under the new Payment Services Act. Among the companies benefiting from this six-month grace period are Binance, Coinbase, Gemini, Bitstamp, Luno, Upbit, and Wirex.
In Spain, the tax authority has begun sending notices to 66,000 crypto owners. This number represents a massive increase from the 14,700 tax letters the agency sent to crypto owners last year. The letters will be sent until the end of June.
In Germany, the Federal Finacial Supervisory Authority (BaFin) published guidelines in English on March 30 regarding how companies can apply for its authorization to offer a crypto custody service. The new German crypto regulation went into effect in early January and companies had until March 31 to submit their intent to operate a crypto custody business. They now have until Nov. 30 to submit their complete application.
India is also working on cryptocurrency regulation despite the fact that there is a draft bill that seeks to categorically ban all cryptocurrencies except state-issued ones. The government is reportedly discussing the matter with the central bank. Furthermore, a state official has been discussing hosting educational events with the founders of India Crypto Bulls, the organizer of a crypto roadshow to take place in 15 major Indian cities.
A number of countries have warned about cryptocurrency investment schemes. In the Philippines, the Securities and Exchange Commission (SEC) has issued several warnings, including one on Bitcoin Revolution. The United States has also been involved in several crypto-related cases. For example, the U.S. SEC recently charged two individuals for allegedly defrauding hundreds of investors with an alkaline water-backed cryptocurrency. The commission is also involved in an ongoing battle with Telegram.
Another country that likes to issue warnings about cryptocurrencies is China. The National Internet Finance Association (NIFA), a self-regulatory organization initiated by the People’s Bank of China (PBOC), published a notice on Thursday regarding the risks associated with cryptocurrency. The association specifically warned of fake volumes at crypto exchanges. Meanwhile, the PBOC has reportedly completed the basic development of the nation’s central bank digital currency and is now drafting legislation for its circulation.
Last but not least, South Korea has also started a pilot program for its national digital currency. The country’s central bank, the Bank of Korea, announced the launch of this pilot program on Monday, April 6. The system will be set up and tested throughout the year. This announcement followed the approval of the bill by the Korean government to regulate cryptocurrencies.
What do you think about these countries pushing ahead with crypto regulations amid the crisis? Let us know in the comments section below.
The post Regulatory Roundup: 10 Countries Actively Regulating Cryptocurrency Despite Global Crisis appeared first on Bitcoin News.
Bitcoin.com’s Cashfusion Fund officially surpassed the fundraiser goal by 103.3% or $51K worth of bitcoin cash spread out between 623 donations. The funds will go toward Cashfusion developer expenses and a security audit from Kudelski Security. Bitcoin.com also matched the funds donated so Cashfusion can provide bitcoin cash users with the best privacy methods available today.
Cashfusion has been considered a powerful tool when it comes to obfuscating bitcoin cash transactions and ensuring privacy. The project made a lot of headway last year and into the new year as well as 3,139 Fusions have been processed since November 28, 2019. Furthermore, Cashfusion has also been complemented by well known privacy advocates like the creator of the Wasabi Wallet. On January 29, data analyst James Waugh sifted through a number of Cashfusion transaction inputs and outputs and realized that it’s “not possible to establish a concrete link” between them. The Cashfusion protocol is an extension of Cashshuffle, which adds a greater layer of privacy to BCH transactions. However, if a shuffling participant mixes their BCH and eventually consolidates the UTXOs, it’s possible the transaction can leave behind some clues for blockchain analysis.
Two months ago, Electron Cash developer Jonald Fyookball published a paper about the combinatoric math in Cashfusion. The paper has a quote from independent software developer Mark Lundeberg that explains how Cashfusion doesn’t use equal-amounts when fusing.
“In Cashfusion, we have opted to abandon the equal-amount concept altogether. While this is at first glance no different than the old naive schemes, mathematical analysis shows it in fact becomes highly private by simply increasing the numbers of inputs and outputs,” Lundeberg wrote. “For example, with hundreds of inputs and outputs, it is not just computationally impractical to iterate through all partitions, but even with infinite computing power, one would find a large number of valid partitions,” the developer added.
Since Cashfusion provides greater privacy to BCH participants, Bitcoin.com decided to raise funds for the tool’s creators for a security audit and developer expenses. Just like the Cashshuffle software, Cashfusion will get an audit from Kudelski Security in order to make sure the code is solid and doesn’t have vulnerabilities. At the end of February, privacy advocates from Bitcoin.com decided to launch the fundraiser for the Cashfusion team so they can further the project’s goals. As we stated in the initial announcement, Bitcoin.com knows the community is waiting for Cashfusion and our company wants to make the project’s official launch come to realization sooner. By March 6, the BCH community raised over 100 BCH in the midst of the looming economic effects of the covid-19 crisis.
Despite the coronavirus and its effects on the world’s financial system, the greater BCH community managed to surpass the Cashfusion Fundraiser’s goal. As of Sunday, April 5, the fundraiser has 103.3% raised from 623 transactions which add up to $51K. Bitcoin cash proponents sent 21.9 billion satoshis since the start of the fundraiser. Bitcoin.com wholeheartedly believes in the right to privacy and our team has always pushed for tools that further economic freedom. With privacy-enhancing protocols like Cashshuffle and Cashfusion, as well as the recently added Schnorr Signatures, BCH has set itself apart from the rest of the cryptocurrencies in existence.
“I think it’s great the Bitcoin Cash community appreciates privacy and economic freedom,” said Bitcoin.com executive chairman Roger Ver after the fund reached its goal. Ver added:
Raising funds for Cashfusion shows the BCH community cares about privacy a great deal and the security audit should forward that goal. Privacy is of utmost importance these days and it’s more apparent than ever during this current crisis.
The covid-19 crisis has highlighted the need for liberty and how everyone should have the right to do what they want with their own money. As banks around the world have been stopping people from withdrawing their own hard-earned cash, it’s pretty apparent fractional reserve banking has glaring issues. While governments and central bankers try to install a greater form of surveillance capitalism and monitor all of our financial transactions, tools like Cashfusion will be there to make sure privacy is protected. The Cashfusion Fundraiser reaching its goal is proof that the BCH community cares deeply about promoting privacy.
What do you think about the Cashfusion Fundraiser surpassing its goal? Let us know in the comments below.
The post Bitcoin.com’s Cashfusion Fund Exceeds Goal: $100K Raised for Bitcoin Cash Privacy appeared first on Bitcoin News.
A number of class-action lawsuits have been filed against various digital asset firms and exchanges on Friday. The U.S.-based “litigation boutique,” Roche Cyrulnik Freedman, filed the lawsuit for three plaintiffs in the Southern District of New York. All three lawsuits claim that organizations like the Tron Foundation, Bitmex, Binance, Bibox and Block.one allegedly sold unregistered securities to retail investors.
The New York law firm Roche Cyrulnik Freedman has been busy, as the attorneys have multiple high-profile lawsuits right now that stem from the crypto industry. The publication Bloomberg Law recently called the firm a “litigation boutique” that specializes in cryptocurrency cases. The firm Selendy & Gay PLLC is also co-lead on the crypto lawsuits as well. The two cases Roche Cyrulnik Freedman have been involved with before Friday’s filing include; the trillion-dollar lawsuit against Tether Limited and the Kleiman v. Wright court case. The case against the self-proclaimed Bitcoin inventor Craig Wright far exceeds $5.1 billion USD worth of BTC before punitive or treble damages.
The class-action lawsuit filings were initiated by the defendants’ Eric Lee, Chase Williams, and Alexander Clifford. Court filings were found by the offshore news and research outlet, Offshore Alert, a think-tank that distinguishes themselves as offshore financial center experts. Crypto operations being sued by the plaintiffs include KayDex, Quantstamp, KuCoin, HDR Global Trading, BitMEX, Bprotocol, Status, Block.one, Civic and Binance. Developers and executives like Dan Larimer, Changpeng Zhao (CZ), Vinny Lingham, Arthur Hayes, and Brendan Blumer are all mentioned in each court filing. The class-action lawsuits filed, mentions the allegation of “unlicensed activity” and the sale of unregistered securities through initial coin offerings (ICO) or initial exchange offerings (IEO).
For example, the plaintiff Chase Williams’ class-action complaint against Binance and founder Changpeng Zhao says the exchange sold unregistered securities as digital tokens. Tokens named in the lawsuit include EOS, BNT, SNT, QSP, KNC, TRX, FUN, ICX, OMG, LEND, ELF, and CVC. All of the lawsuits were filed with the Southern District of New York court on April 3. There’s a total of 42 defendants named in the class-action suits and the individuals stem from countries like South Africa, Switzerland, Taiwan, the U.S., China, Seychelles, Singapore, Japan, Hong Kong, British Virgin Islands, and the Cayman Islands.
The plaintiffs and the litigation firm Roche Cyrulnik Freedman will likely have a difficult time battling jurisdictions. Moreover, there really hasn’t been a government standard or conclusion toward the unregistered securities argument thus far and regulators still seem up in the air. This has been the case with the ongoing Ripple lawsuit, which also alleges that XRP was sold as an unregistered security. In every one of the filings submitted on April 3 by Roche Cyrulnik Freedman, the allegations claim these token sales were completely centralized. The accusation against the Tron Foundation notes:
The creation of TRX tokens thus occurred through a centralized process, in contrast to Bitcoin and Ethereum. This, however, would not have been apparent at issuance to a reasonable investor. Rather, it was only after the passage of time and disclosure of additional information about the issuer’s intent, the process of management, and success in allowing decentralization to arise that a reasonable purchaser could know that he or she had acquired a security. Purchasers were thereby misled into believing that TRX was something other than a security, when it was a security.
Nobody knows how these 11 cases will turn out, but the crypto community is discussing the subject with great fervor. The attorney Stephen Palley who specializes in cryptocurrencies and litigation explained that the defendants will likely try to get the cases dismissed.
“These lawsuits will be dismissed by the defendants in press releases as ambulance-chasing lawsuit trolling,” Palley said. “But it’s not quite that black and white upon closer inspection,” the lawyer added.
What do you think about the lawsuits against 11 crypto companies? Let us know in the comments below.
The post ICO Crackdown: 11 Class-Action Lawsuits Filed Against Cryptocurrency Companies appeared first on Bitcoin News.
Since the supreme court lifted the RBI ban, more people have been looking to buy bitcoin and other cryptocurrencies in India. Responding to community feedback, a number of cryptocurrency exchanges have lowered their fees as the Indian crypto sector continues to grow.
The Indian crypto sector has been growing ever since the Supreme Court of India lifted the banking ban imposed by the central bank, the Reserve Bank of India (RBI). More people are now interested in bitcoin and other cryptocurrencies, and local crypto exchanges are seeing increased trade volumes and signups, even during the nationwide lockdown.
One of the main factors why a user chooses one cryptocurrency exchange over another is the fee structure. Due to popular demand on social media, a number of crypto trading platforms have lowered their fees. Below are some popular bitcoin and cryptocurrency exchanges in India, as well as the fees they are charging.
Wazirx, a popular crypto exchange in the country, charges 0.1% when paid through WRX, CEO Nischal Shetty told news.Bitcoin.com. “We lowered our USDT fees to make it zero fees for transfer to Binance,” he detailed. “So effectively maximum users in India now enjoy 0 fee USDT transfer from Wazirx to Binance and for other withdrawals, the fee has been lowered to 1.5 USDT.” The CEO further shared, “We’re planning to lower withdrawal fees for other tokens as well over time.” Wazirx’s fees can be found here.
Zebpay, formerly one of the largest cryptocurrency exchanges in India, recently relaunched in the country. The exchange announced that starting Friday it is waiving “the normal 1.5% netbanking fee through April 10.” Furthermore, “users can trade BTC-USDT, ETH-USDT, XRP-USDT, ETH-BTC & TUSD-USDT with no trading fees this month.” The exchange currently charges a withdrawal fee of 0.00049 BTC. Zebpay’s fees can be found here.
Some cryptocurrency trading platforms have already been focusing on offering competitive fees to their users. Popular Indian crypto exchange Coindcx charges 0.0005 BTC for withdrawals. CEO Sumit Gupta shared with news.Bitcoin.com: “We have been competitive since [the] start as a policy as we believe in crypto adoption. As we have been maintaining the best price, compared to some competitors, we didn’t have to bring the fees down.” Coindcx’s fees can be found here.
Unocoin, one of the oldest cryptocurrency exchanges in India, charges a fee of 0.7% to buy or sell bitcoin. Users can upgrade to a gold membership and the fee will drop to 0.5%. Unocoin’s fees can be found here.
Other well known cryptocurrency exchanges in India include Cashaa, Pocketbits, Giottus, and Bitbns. London-based banking platform Cashaa launched its Indian operations in October last year; its fees can be found here. Pocketbits advertises 0% trading fees and a BTC withdrawal fee of 0.0003 BTC; its fees can be found here. Giottus offers a BTC withdrawal fee of 0.0001 BTC, and the platform’s fee schedule can be found here. Bitbns charges a BTC withdrawal fee of 0.0005 BTC; its fees can be found here.
Furthermore, Indians can also use peer-to-peer marketplaces such as Localbitcoins and Paxful to buy and sell bitcoins directly from sellers in INR. They can also use local.Bitcoin.com to buy and sell BCH. India currently has no direct cryptocurrency regulation but the government is reportedly discussing a regulatory framework for cryptocurrencies with the central bank.
Which Indian crypto exchange do you like the most? Let us know in the comments section below.
The post Where to Buy Bitcoin in India: Cryptocurrency Exchanges Lower Their Fees appeared first on Bitcoin News.
The owners of the website Freebitco.in have announced a coronavirus relief fund following the myriad of other crypto companies donating funds to help fight the covid-19 pandemic. Freebitco.in is an extremely popular gaming website that saw more than 40 million visitors last month in web traffic and the site ranks #2,379 globally according to Alexa ratings. The website is donating 20% of the house edge to an organization that will be coordinating with public health authorities in order to provide protective equipment.
The coronavirus outbreak has massively disrupted the world’s economy and a lot of people are in need of food and healthcare resources. This has caused a lot of firms in the private sector to start providing much-needed supplies and relief funds to those affected by the financial calamity. News.Bitcoin.com recently reported on a slew of crypto companies donating funds to coronavirus relief efforts during the last few weeks. For instance, the organization Binance Charity designated $5 million toward a covid-19 aid program.
Now the team behind the popular crypto gaming web portal Freebitco.in has initiated a fund to assist those in need during these times of stress. Freebitco.in is a well known gambling site that was launched in 2013 and the website gets around 40-46 million visitors per month. The gaming web portal’s fundraiser says the site will donate 20% of the house edge toward covid-19 relief efforts. Freebitco.in’s covid-19 fundraiser announcement states:
The proceeds from this fundraiser will be donated to Direct Relief, an organization that is coordinating with public health authorities, nonprofit organizations and businesses in the U.S. to provide personal protective equipment and other items to health workers responding to coronavirus (covid-19). Please join us to help the masked superheroes on the front lines that are risking their health to keep us safe.
So far, statistics on April 4 show there are 1.1 million coronavirus cases worldwide and 62,735 people have died from the pandemic. Freebitco.in has a lot of visitors playing games like “free bitcoins every hour,” “hi-lo game,” “the wagering contest,” “dice game,” and “peer-to-peer event prediction.” Freebitco.in recently added a “bitcoin cash price prediction” bet to the platform which allows players to wager on the future price of BCH. People wagering on the “multiply BTC game between 8 to 11 UTC on Sunday, April 5 will see 20% of house edge revenue contributed during the donation window to the coronavirus relief fund.”
Freebitco.in is very web prominent as Alexa ratings note the site ranks #2,379 worldwide and the web portal is also very well known in Russia. Russian traffic statistics show that Freebitco.in ranks #692 in the country. With 1.72 million page visits a day, the site could generate a notable amount of funds for coronavirus relief. There is a shortage of medical supplies, masks, and ventilators worldwide, and the private sector is dedicating lots of energy to sending much-needed supplies to hospitals and makeshift ICUs. The private sector and a slew of crypto companies dedicating time and efforts toward helping those in need clearly shows there’s still a lot of good moral fiber in the world of business and finance.
What do you think about Freebitco.in’s coronavirus relief effort? Let us know in the comments section below.
The post Freebitco.in Gaming Site Launches Covid-19 Relief Fund – Donating 20% House Edge to Healthcare Efforts appeared first on Bitcoin News.
The coronavirus outbreak has sent shockwaves through the world’s economy and this has caused politicians and central bankers to react in various ways. However, global market leaders, Wall Street CEOs and hedge fund managers had one of the best years in more than a decade since the 2008 financial crisis. In fact, evidence shows that the bureaucracy and the modern banking cartel knew a crash was on the horizon, as the covid-19 crisis was simply the pin that popped the balloon.
Toward the end of 2019 market players and Wall Street’s top CEOs discussed whether or not the U.S. was facing a recession in 2020. This was after the stock market, S&P 500, and Dow Jones Industrial Average broke records last year. A few months before the coronavirus started spreading wildly, central banks like the Federal Reserve were already slashing rates and funneling billions into the hands of private banks. It’s almost as if the elite knew the bubble would pop in 2020, as bonds were manipulated by banks and stocks were massively overvalued. In fact, a majority of bankers predicted that 2020 would suffer from a really bad recession that could be worse than the last economic fallout. Central banks started easing up on monetary policy and created vast amounts of stimulus throughout the months of August, September, and October of last year.
When 2020 started, the smoke signals were everywhere, as hedge fund managers and strategists warned that the stock market was extremely overvalued. On January 14, financial experts reported on how the stock market has never been this big relative to the economy. “Such elevated valuations in past periods have weighed on equity returns over the subsequent five years and lowered the odds of positive outcomes,” Goldman Sachs strategist Sharmin Mossavar-Rahmani noted in the company’s 2020 outlook. “That the bulk of last year’s returns came from higher valuations, and not growth in earnings, only compounds investors’ concerns,” Mossavar-Rahmani added. Despite, the warnings of a massive stock market bubble, a few Wall Street execs continued to shill company shares that many people had deemed “overpriced.”
Additionally, analysts also cautioned retail investors about how far apart Wall Street trading and the real world economy really is compared to the hyped up news headlines. Markets today are made up of algorithms, futures, options, high-frequency trading, and passive funds and there’s whopping $532 trillion in global derivatives markets. Most of the time stock market derivatives are not even traded by real people, as estimates note that 75% of all trades are computer-driven.
Moreover, derivatives like futures and options are usually not dealing with the physical goods themselves and they are simply trading pieces of paper that represent corn, oil, gold, and other commodities. The reason the derivatives markets could be frightening is due to the large separation from real-world goods. Megabanks and financial institutions did not learn from their prior mistakes and many of them are highly leveraged with derivatives products today. This means when real-world prices crash, highly leveraged institutions suffer major losses when spot prices are extremely turbulent like they were in 2008.
For centuries now, a number of people have been aware that the politicians and central banks have manipulated and ruined global economies. The U.S. is a perfect example of how the American bureaucracy and Wall Street moguls from the ‘House of Morgan’ destroyed the nation’s economy by introducing a fraudulent Ponzi system. History shows that the banker families in the early 1900s are the very same banking families who run the country’s finances today. The fraudulent banking cartel is likely the direct cause of all of the economic destruction modern Americans have seen in the last three decades.
The Wall Street crashes in 1907, 1929 and in the early ‘30s, all stemmed from the greed and fraudulent activities invoked by the House of Morgan, otherwise known as the ‘Money Trust.’ Members of the Money Trust included the families of JP Morgan, JD Rockefeller and a small group of finance moguls. Morgan’s empire consisted of U.S. Steel, General Electric, International Mercantile Marine, International Harvester, AT&T, and approximately 21 railroads. Interestingly, during the Great Depression years, a slew of politicians and financiers stepped down months before the crash and many large firms restructured.
The 2020 crash which started on March 12, otherwise known as ‘Black Thursday,’ was a surprise for most Americans watching the stock market that day. However, today’s Wall Streeters, hedge fund managers, politicians, and bankers didn’t seem surprised by the bubble bursting at all. In fact, one could assume that the banking cartel and the American bureaucracy knew exactly when the crash was coming. One of the biggest signs of the elite knowing the crisis was imminent was how Q4 2019 had the most CEOs step down in years as 1,300 top executives left in November 2019.
CEOs from mega-companies and financial institutions stepped down in record numbers again in December 2019. The public also witnessed the same trend in January and February, as January 2020 set a record for the most CEO departures in America recorded in a 30-day time span. 219 major chief execs unexpectedly left their positions with little to no warnings. Even though some of these CEOs ran these companies for decades, they stepped down abruptly. Disney’s CEO Bob Iger stepped down, Adam Bierman from Medmen suddenly up and left, and Mandy Ginsberg of Tinder and Match Group stepped away from her firm’s as well. The list of noteworthy CEOs who stepped down is quite exhaustive, but includes people like Hulu’s Randy Freer, Mastercard’s Ajay Banga, IBM’s Ginni Rometty, Tmobile’s John Legere, Harley Davidson’s Matt Levatich, Linkedin’s Jeff Weiner, Microsoft’s Bill Gates, Salesforce’s Keith Block, Lbrand’s (Victoria’s Secret, Bath & Body Works, Pink) Leslie Wexner, and many more well known chief executives.
The protectors of today’s corporatists and monopolies, otherwise known as U.S. politicians, were also scrutinized for knowing about the economic impact in advance. Senator Kelly Loeffler (R-GA) was accused of sharing insider information and she dumped millions in shares after the Senate’s coronavirus briefing took place.
Loeffler wasn’t the only bureaucrat accused of dumping on the stock markets before ‘Black Thursday,’ as U.S. representatives like North Carolina’s Richard Burr, California’s Dianne Feinstein, and Oklahoma’s James Inhofe all sold stocks before the Senate’s classified briefing on January 24. None of these politicians or corporatists warned the general public of a looming stock market crash.
Cryptocurrency advocates have been warning about the monetary manipulation for well over a decade and many bitcoiners predicted these events. The money system has been fraudulent for a very long time and digital currencies like bitcoin could transform the world’s monetary system for the better. Reading this article should tell you that there is no free market within the United States and the capitalism that exists is really cronyism mixed with manipulative profits.
Concepts like cryptocurrencies and free markets are becoming more enticing to people every single day. The reason for this trend is largely because central bankers and politicians are making it blatantly obvious that they are screwing society. The elite knowing about the mid-March stock market fallout well beforehand should be no surprise to those who understand the collusion between the state and central banks. More than ever, activists and free market advocates wholeheartedly believe that the desire to separate money from the state is a goal worth fighting for. Especially since we have solid proof of fraudulent behavior from our so-called representatives and banking institutions.
What do you think about politicians and the elite knowing about the crash well before covid-19? Let us know what you think in the comments below.
The post Evidence Shows Politicians and Wall Street CEOs Expected the Market Crash Well Before Covid-19 appeared first on Bitcoin News.
Malaysia’s Securities Commission has given full approval to a cryptocurrency exchange operator to legally operate in the country despite the nationwide lockdown due to the coronavirus pandemic. Recently, Japan also approved a new cryptocurrency exchange as the country continues to fight the covid-19 outbreak.
Suruhanjaya Sekuriti Malaysia, the Securities Commission Malaysia (SC), has approved a cryptocurrency exchange despite the current coronavirus pandemic crisis the country is facing. The nationwide lockdown has already been extended until at least April 14. By that time, the Malaysian government hopes that aggressive testing will have contained the pandemic.
During the lockdown, crypto exchange operator Tokenize Malaysia received full approval from the Securities Commission Malaysia to operate a digital asset exchange (DAX), several local media reported Friday. The platform can now accept clients.
Referring to the covid-19 pandemic, Tokenize Malaysia CEO Hong Qi Yu was quoted by Malaysian national news agency Bernama as saying:
The digital asset industry is by far one of the best equipped and it is business as usual for us as the industry is used to working and communicating effectively across time zones and managing teams remotely.
On Suruhanjaya Sekuriti Malaysia’s website, the regulator explained that it has registered three recognized market operators (RMOs) to establish and operate cryptocurrency exchanges in Malaysia. This followed the coming into force of “the Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019” on Jan. 15 last year, designed to regulate DAX operators.
The three conditionally-approved crypto exchange operators were Luno Malaysia, Sinegy Technologies, and Tokenize Technology. According to the national news agency, out of 23 crypto exchanges that applied, only the aforementioned three received any form of approval. Among them, Luno became the first to meet the regulatory requirements and received full approval. Suruhanjaya Sekuriti Malaysia also published digital asset guidelines in January this year outlining the requirements for digital token offerings. The regulator previously clarified:
Entities which have not been approved by the SC, including those which have previously been operating under the transitional period, are required to cease all activities immediately and return all monies and assets collected from investors.
Last week, Japan set an example by approving a new cryptocurrency exchange to operate in the country despite the coronavirus pandemic. The Land of the Rising Sun now has a total of 23 registered crypto exchanges.
What do you think about Malaysia approving a crypto exchange despite the lockdown? Let us know in the comments section below.
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Venezuela’s President Nicolas Maduro has announced that he is airdropping cryptocurrency to every doctor in his country as a token of appreciation for their work to combat the coronavirus outbreak. The national cryptocurrency, the petro, will be distributed via the Homeland card (Carnet de la Patria).
The president of Venezuela, Nicolas Maduro, is airdropping the country’s cryptocurrency, the petro (PTR), to all doctors in Venezuela as a special bonus for their work to combat the coronavirus pandemic. The Twitter account for the Homeland card (Carnet de la Patria) announced on Wednesday:
Thanks to President Nicolas Maduro, the delivery of the special bonus for all doctors of the country has begun in the amount of 1 petro through the Carnet de la Patria.
Carnet de la Patria is the Venezuelan identity document that includes a unique personalized QR code; it was created in 2016 by the Venezuelan government.
Venezolana de Televisión, a state-run TV station based in Caracas, noted that “through the Homeland platform, this benefit will be delivered to all those doctors as part of the recognition and thanks for the support to carry out the noble work of protecting the health of the Venezuelan people in the midst of the covid-19 pandemic that plagues humanity.”
This is not the first time Maduro airdrops the petro to Venezuelan citizens. Last year, he airdropped it to retirees and pensioners and claimed in January this year that almost 6 million families in the country had used the cryptocurrency as a payment method.
According to the Venezuelan government’s official exchange rate, at the time of this writing, one petro can be exchanged for 0.00874729 BTC, 58.92 U.S. dollars, 4,989,701 bolivars, 54.23 euros, or 417.23 yuan.
However, the petro can be purchased on the open market at a fraction of the price set by the Venezuelan government, as news.Bitcoin.com previously reported. Venezuelans can use the Petroapp, provided by the government, to manage their petros and other cryptocurrencies: BTC, LTC, and DASH. The app also lets them exchange, buy, or transfer the petro, as well as use it to pay for goods and services.
Maduro and a number of high-ranking Venezuelan officials have been charged by the U.S. government with “narco-terrorism, corruption, drug trafficking and other criminal charges,” the Department of Justice (DOJ) announced last week.
Several of the Venezuelan government officials charged allegedly partnered with the Fuerzas Armadas Revolucionarias de Colombia (FARC), Colombia’s largest rebel group, to “flood” the U.S. with cocaine, the DOJ claims.
Furthermore, the U.S. Department of State is offering rewards of up to $15 million for information leading to the arrest and/or conviction of Maduro. A $10 million bounty has also been placed on a few other high-ranking Venezuelan officials. Meanwhile, last month, Maduro ordered bank closures amid the coronavirus scare.
What do you think about Maduro airdropping one petro to all doctors in Venezuela? Let us know in the comments section below.
The post Pandemic Assistance: Maduro to Airdrop Cryptocurrency to All Doctors in Venezuela appeared first on Bitcoin News.
The Bitcoin Cash (BCH) network will face a halving on wednesday this week and many BCH proponents are getting ready for the big day. Unfortunately, the covid-19 outbreak has overshadowed the halving and BCH has dropped in value by roughly 30% since the end of February.
BCH supporters are getting ready for the big halving day, at least the best they can since most of the world has been stuck at home due to the coronavirus. So far, roughly 87.4% of the 21 million BCH available are in circulation and there’s around 18,366,500 BCH at the time of publication. Every four years, the BCH network sees a reward halving as the system’s rules are meant to make the issuance rate harder.
The Bitcoin Cash halving will take place in four days on or around Passover, April 8. Typically, there’s about 1,800 BCH mined per day, which gives the chain an inflation rate of 3.6%. Bitcoin cash miners finding a block on the BCH network today get approximately 12.5 BCH, but after the halving they will only get 6.25 coins.
The Bitcoin Cash network’s drop in issuance will change the inflation rate to an estimated 1.8% per annum. The mathematical and probable monetary system is a stark contrast to the unpredictable monetary system that the world’s central banks provide. Central banks, like the Federal Reserve, claim to keep the inflation rate at 2%, but reports from shadowstats.com note that the real U.S. rate could be as high as 10%. No one knows how bad the inflation rate will get now that central banks worldwide have started creating trillions in fiat currencies out of thin air.
The Fed’s schemes are completely different from the issuance rate Satoshi Nakamoto designed and the 1.8% per annum inflation rate for BCH will continue to get better. For instance, by the end of 2024, it is estimated that the BCH inflation rate will be around 1.1% and it will drop to 0.9% the very next year. By the end of 2028, around 20.5 million BCH should be mined by then and the inflation rate is expected to be about 0.5%.
Four days before the halving, there’s around 3.63 exahash per second (EH/s) mining the Bitcoin Cash chain. On Friday, there are 10 different mining pools hashing away at the BCH chain. This includes operations like Antpool, Viabtc, Bitcoin.com, Btc.top, P2pool, Huobi, Poolin, Mining-Dutch, Btc.com, and Prohashing. Antpool captures the most hashpower on April 3, with 32% of the overall hashrate, while 6.5% of the hashrate is mined by stealth miners.
Miners have about 8,500 coins left to mine and there are about 680 blocks left until the halving. BCH difficulty is around 486,638,039,618 and mining profitability between BTC and BCH has been less volatile lately. At the time of writing, it is 1.6% more profitable to mine the BTC blockchain and BTC miners face a halving in 39 days.
BCH fans are excited about the upcoming halving and a number of proponents discussed the subject two days ago, when there were six days left until the halving. Electron Cash developer Calin Culianu (Nilac the grim) said that he hopes things work out for the best. “Lord help us make it through these all-around crazy times better than we were entering into them,” Culianu wrote. “Interesting times ahead indeed,” Reddit user Jackandjill22 responded. The following day, Poolin executive Alejandro De La Torre tweeted:
Only five days to go for the bitcoin cash halving. This is an event to monitor, might be indicative of what’s to come with the bitcoin halving.
With the covid-19 outbreak, it’s likely that there won’t be any Bitcoin Cash halving parties come April 8. Most people will be monitoring the BCH reward reduction from home and they will surely be watching the price and the hashrate after the halving kicks in. If you are interested in reading about specific halving countdown websites for every Bitcoin branch reward reduction, then check out this article on the subject.
What do you think about the upcoming BCH halving? Let us know in the comments section below.
The post The Bitcoin Cash Halving Countdown – 50% Less Block Reward appeared first on Bitcoin News.
Despite what gold bug Peter Schiff says, economists are uncertain that gold will shine during the current coronavirus crisis. While gold and other precious metals have seen decent gains in the last few weeks, a few investors are terrified that central banks will use their flight-to-safety assets in order to save their economies. Data shows that the U.S. owns the biggest stockpile of gold reserves and the Federal Reserve could very well unload the bullion in times of extreme financial stress.
Just like digital assets like bitcoin, investors are curious about gold and whether or not the metal will rise much higher during the financial meltdown. For over a millennia, gold has been considered a safe-haven asset and the yellow metal is far more scarce than the unlimited fiat central banks create regularly. Despite the scarcity, economists understand that central banks are the largest holders of gold and there’s a great possibility they could dump on the market at any time. In 2019, central banks worldwide purchased the most tonnage of gold in more than 50 years.
Interestingly, in the midst of the coronavirus outbreak, Russia’s central bank surprisingly stopped buying gold and gave no official reason. Russia was not the only country to curb gold purchasing as Kazakhstan, and Uzbekistan brought gold purchases to a grinding halt. Speculators assume central banks are simply using gold for its flight-to-safety purpose and they will have to sell the bullion when economies get crushed.
Statistics show that the U.S. is the largest holder of gold reserves with 8,965 tons to-date. This is followed by Germany (3,709t), the International Monetary Fund (3,101t), Italy (2,702t), France (2,684t), Russia (2,504t), China (2,159t), Switzerland (1,146t), Japan (842t), India (686t), Netherlands (674t), and the European Union (556t).
Financial columnist David Fickling explains in a recent editorial that investors should not “expect a crisis to be good for gold.” “It might be argued that the current crisis is precisely the sort of emergency that proves the enduring value of gold for a central bank, as an asset with no counterparty risk that can be sold in an exchange for any currency if things get tight,” Fickling wrote on April 1. Fickling continued:
It’s worth reflecting that the surging price of gold is increasing the share of bullion in most central banks’ reserves right now, in some cases to the point where they need to think about selling.
Further, even though investors might want to get some gold to hold onto as a safe haven asset, financial news outlets are reporting on gold dealers explaining there are “big shortages of small bars and coins.” Small bars and coins are popular among retail consumers and people looking to grab some are paying “well above the per-ounce prices being quoted on financial markets.”
“People want to buy, not to sell gold,” detailed Mark O’Byrne, the founder of the firm Goldcore. “We have a buyers’ waiting list and we emailed our clients seeing who wished to sell their gold. At this time there are roughly only one or two sellers for every 99 buyers,” O’Byrne added.
In fact, retail premiums for gold “have exploded,” remarked Markus Krall, CEO of Degussa, a German-based precious metals dealer for retail investors. Krall said that the price of bullion at certain shops can be 10-15% above spot prices. Furthermore, Ronan Manly, an analyst at Singapore dealer Bullionstar told the press that Kilobars distributed by Argor-Heraeus SA are selling for 6% above spot. Even though there’s a shortage of small bars and coins, gold bugs like Peter Schiff still think that the yellow metal will surely skyrocket in the near future. Thanks to the stimulus plans across the world, gold proponents have always said that gold will be the best store of value. Many other gold proponents agree with Schiff and Bob Haberkorn, senior commodities broker with RJO Futures feels the same way.
“With all of the stimulus money, interest rates at zero, loss of jobs and multiple battles on the economic front, I can’t see how gold is not higher next week,” Haberkorn told Kitco on Thursday.
While analysts and wealth managers ponder if gold will be a safe haven asset during the current crisis many believe digital assets like bitcoin will be king. There are various reasons why bitcoiners think crypto is better than gold and one of the biggest is the fact that bitcoin is much harder to confiscate. Gold investors are often reminded of when the U.S. stole everyone’s gold in the 1930s, back when President Franklin D. Roosevelt (FDR) outlawed the yellow metal. Bitcoin is far more portable than gold, as traveling with the metal could weigh hundreds of pounds, which often leads to storing it with a third party.
Additionally, bitcoiners are more confident in the BTC supply and there’s no central banks to dump on the market. Moreover, BTC’s rate of issuance continues to outshine gold as 3,300 tons of new gold or $200 billion is mined every year. There’s a myriad of reasons why bitcoin and cryptocurrency assets are built for economic calamities such as the one we are experiencing today. If you are interested in learning more about bitcoin then check out our guides and educational resources today.
What do you think about gold during the economic crisis? Let us know in the comments below.
The post Gold Investors Are Terrified Central Banks Might Dump Bullion During the Economic Crisis appeared first on Bitcoin News.
The coronavirus has managed to seep into every facet of the global economy and it seems nothing will escape its financial wrath. During the last two weeks as unemployment levels have skyrocketed in the U.S.; analysts, economists, and wealth managers have been warning about another subprime mortgage crisis. Most of these observers believe there’s no doubt the real estate market will collapse again, as economists understand that the loss of jobs, wages, and severe reduction of business activity has devastated the American economy.
There are a number of individuals and organizations that predict the covid-19 economy will destroy the American housing market and it might be far worse than the 2008 subprime mortgage crisis. One of the biggest reasons people think that the real estate economy is about to be hit hard is because of the number of U.S. citizens that are unemployed right now. This has caused mortgage borrowers to stop paying loans due to not having funds. Debtors who are landlords are suffering too, as renters cannot come up with the money to pay monthly rent expenses because they are out of work. At the time of publication, estimates note that roughly 40% of New York tenants may not be able to pay their rent this month which in turn hurts the landlord paying the mortgage.
Estimates from Moody’s Analytics chief economist Mark Zandi note that 30% of Americans with mortgages might not be able to pay their loans. Zandi says that figure is around 15 million American households and it could grow worse if the economy is shut down through the summer months. Property owners and renters are concerned about the unpredictable economy and a great majority of earners are seeing a smaller paycheck thanks to fewer shifts, hours, and layoffs across the board.
The U.S. government’s safety nets are not working and the ones that are available only cover a fraction of homeowners. Many Americans are upset because government-backed home loans through the FHA, Freddie Mac, Fannie Mae, and the VA are allowing deferred payments for mortgages. In some instances, these lenders are allowing up to a year of deferred payments. But government-backed loans only cover 60% of the nation and the 40% leftover have traditional real estate loans with banks.
What's the break lease policy at the moment if they don't offer a rental reduction? If we can't afford rent anymore do we just say to our real estate agent like… 'here's my notice sorry?' I'm 5 months into a 1 year lease.
— Michael Beveridge (@mickyb273) April 3, 2020
Similarly, property owners who rent might not get monthly payments for a very long time. As individuals in the U.S. are finding themselves out of work, they can’t pay the rent to their landlords. Some renters and politicians in various states are calling for an emergency rent freeze and eviction moratorium until the covid-19 threat is behind us.
Landlords with mortgages could be crushed as the Rental Housing Finance Survey (RHFS) estimates there are more than 22.5 million rental properties nationwide. Some economists think that super hosts from Airbnb could cause the housing market to buckle as well, thanks to the unwinding Airbnb rental economy. Mega or ‘super hosts’ are Airbnb landlords who mortgaged multiple homes in order to profit on the platform’s rental market.
“Watch the real estate market, my neighbor is an Airbnb super host,” tweeted Spencer Noon. She is on forums with other hosts [and] many of them have 10+ mortgages. 0 guests are booking their properties [and] they are running out of cash.”
Even small banks and real estate lenders are being told by the government they have no idea how long the industry shut down will last. “Nobody has any sense of how long this might last,” explained Andrew Jakabovics, an executive from Enterprise Community Partners, a nonprofit affordable housing group. “The forbearance program allows everybody to press pause on their current circumstances and take a deep breath. Then we can look at what the world might look like in six or 12 months from now and plan for that.”
On March 21, news.Bitcoin.com reported on how Lendingtree’s chief economist Tendayi Kapfidze predicted a complete “shutdown in the housing market.” Today, Kapfidze says with the government in “bailout everyone mode,” they probably will try to stop mass foreclosures. “I expect policymakers to do whatever they can to hold the line on a financial crisis,” Kapfidze told the press. “And that means preventing foreclosures by any means necessary,” he added.
In addition to the looming subprime mortgage crisis; office, retail, industrial, and multi-family homeowners invested a lot of upfront funds expecting a good season in the spring. “If the pandemic has taught us anything, it’s how quickly everything can change. Just weeks ago, mortgage lenders were predicting the biggest spring in years for home sales and mortgage refinances,” Bloomberg’s recent real estate coverage explains. Meanwhile, on April 2nd, financial publications wrote: “Real estate spring buying season could be catastrophic.”
Throughout the covid-19 economy, wealth managers and economists are curious about which safe-haven asset will society be confident in during the financial meltdown. While many predict precious metals will be the avenue, history shows that during the 2007-2008 subprime mortgage crisis bullion markets were manipulated by central banks.
The current black swan event, covid-19 may call for a black swan asset like bitcoin because it’s not manipulated as easily as real estate property and precious metals. Traditionally, investing in real estate outperforms a myriad of other investment assets, but cryptocurrencies have outshined property investment by a longshot. In fact, in contrast to real estate investment which gained 70-100% in ten years, BTC gained 8.9 million percent over the last decade.
Moreover, analysts can clearly see that office, retail, industrial, and multi-family investors will take a big hit from the covid-19 economy. Even U.S. President Donald Trump is having issues coming up with funds to pay for his Florida properties and his administration asked Deutsche Bank and Palm Beach County to give him leniency.
What do you think about the real estate industry’s hardships in the near future? Let us know what you think in the comments below.
The post Homeowners Can’t Pay: US Lenders Prepare for Catastrophic Real Estate Market appeared first on Bitcoin News.
India is currently under a nationwide lockdown due to the coronavirus outbreak. News.Bitcoin.com talked to executives of local cryptocurrency exchanges to find out the impact of the lockdown on cryptocurrency trading. They revealed that more people are actually trading cryptocurrencies on their platforms since the lockdown began.
The Indian crypto community has been rebuilding ever since the supreme court lifted the RBI ban. Then, in response to the covid-19 pandemic, Prime Minister Narendra Modi announced on March 25 a 21-day nationwide lockdown — the period which ends on April 14.
Nischal Shetty, CEO of local crypto exchange Wazirx, shared with news.Bitcoin.com about the impact of the lockdown on cryptocurrency trading on his platform. He said, “we’ve seen a spike in the number of people trading on Wazirx ever since the lockdown,” adding:
Signups have increased greatly since the banking restriction was lifted but a further 25% increase in signups since the lockdown.
Another Indian crypto exchange, Coindcx, is seeing a similar trend. CEO Sumit Gupta shared with news.Bitcoin.com that his exchange witnessed 10 times growth in the first week after the supreme court lifted the RBI ban. As for the effect of the nationwide lockdown, he said: “Post the lockdown situation, we are witnessing the continuation of signup growth and the rate of growth is consistent on a daily basis.” Gupta continued to share that “the number of daily trading volumes and user activity (crypto and INR) deposits on the Coindcx platform are also consistent with respect to before lockdown,” asserting:
This shows that crypto is still largely uncorrelated compared to traditional asset classes which are significantly affected due to these crises.
During the supreme court hearing against the banking restriction imposed by the central bank, it was reiterated that cryptocurrency is not illegal in India. Moreover, the Indian government is said to be discussing a regulatory framework for cryptocurrencies in India with the central bank instead of an outright ban.
Since the supreme court ruled in favor of cryptocurrency against the central bank, the Reserve Bank of India (RBI), a growing number of Indians have become interested in cryptocurrency trading. Referring to the nationwide lockdown, Shetty opined:
Since people have more time on hand, they’re spending time researching online and coming across crypto-related articles. That leads them to finally on Wazirx in order to buy their first crypto.
Just before the nationwide lockdown announcement, Wazirx and global cryptocurrency exchange Binance launched a $50 million blockchain fund that aims to invest in startups and projects in the Indian crypto ecosystem. Binance acquired Wazirx in November last year and recently announced its acquisition of Coinmarketcap. Meanwhile, Coindcx scored funding from several major venture capitalists, including Bain Capital, Polychain Capital, and Bitmex owner HDR Global Trading.
What do you think of India’s increased crypto trade volume since the lockdown? Let us know in the comments section below.
The post Nationwide Lockdown: Indian Cryptocurrency Exchanges See Signups and Trade Volumes Increase appeared first on Bitcoin News.
The chairman of the Russian State Duma Committee on Financial Markets has confirmed that the bill which provides the regulatory framework for cryptocurrencies in Russia has been completed. The official explained key features of the bill, including how cryptocurrency exchanges and miners will be regulated. However, the bill’s adoption has been delayed due to the coronavirus pandemic.
Anatoly Aksakov, Chairman of the State Duma Committee on Financial Markets, has confirmed that work on the law “On Digital Financial Assets” has been completed, Russian media RBC reported this week. Aksakov, who is also the deputy of the State Duma of the Federal Assembly of the Russian Federation, has been overseeing the drafting of the bill.
The chairman explained that the bill provides the definition of cryptocurrencies and prohibits their use as a means of payment, elaborating:
We came to the conclusion that it is necessary to define these tools but to prohibit their use as a means of payment. The law will define digital financial assets, the procedure for their issue and circulation. It will also include the issue and circulation of digital assets secured by goods.
While noting that cryptocurrency mining is not mentioned in the bill, Aksakov stressed that it “is a type of business that produces value,” so it should be taxed. In addition, he clarified that the new law will not interfere with crypto exchanges if they do not violate any directives, but their activities will be regulated.
While work on the bill to regulate cryptocurrencies in Russia is done, Aksakov explained that its adoption has been delayed due to the coronavirus pandemic, “probably until the end of spring.” The official indicated that “Because of the coronavirus, all legislative processes have slowed down, the focus of attention has switched to priority measures to combat the pandemic,” the publication conveyed.
The bill “On Digital Financial Assets” was first submitted to the State Duma in March 2018. Aksakov said several times in the past that the bill was ready. However, he later explained that due to irreconcilable disagreements in the government regarding this new type of asset, the bill was repeatedly amended and its adoption subsequently delayed. The central bank, for example, has opposed its legalization.
What do you think of the Russian crypto bill? Let us know in the comments section below.
The post Russian Official: Cryptocurrency Bill Completed — Effects on Payments, Exchanges, Miners appeared first on Bitcoin News.
We currently live in a world with overreaching governments and the covid-19 crisis has exemplified the greed and manipulation. Agents of the state have been invading our privacy for years now and they have found ways to monitor people online and eavesdrop on our private activities. However, encryption has been a problem for governments, as it gives an individual or organization the ability to change data in a way that is completely unreadable and only certain people with special knowledge or a key can read the information. Encryption is important because it can protect someone’s data not only from spying governments but also from any malicious person attempting to monitor people’s private affairs.
I feel a sense of urgency to get these types of tools out there — This leverages the Bitcoin Files Protocol and library developed by James Cramer, so big shout out to him.
“So we can start to build an anonymous social network on Bitcoin Cash?” BCH fan Egon asked on the Reddit forum r/btc. BFP Encrypt’s specs also show examples of a “message send” and a “message receive,” which describe how someone can send text “from one address (sender WIF) to the P2PKH address associated with the recipient’s public key.” The last example shows how to download and decrypt the message that was sent to a recipient’s address.
What do you think about Vin Armani’s BFP Encrypt? Let us know in the comments below.
The post Cointext Cofounder Unveils BFP Encrypt – Send Encrypted Data to Bitcoin Cash Addresses appeared first on Bitcoin News.
A lot has changed since the coronavirus pandemic swept the globe as it has caused a wide range of negative effects on the world’s economy. On March 30, the blockchain surveillance firm Chainalysis published a report that shows how the cryptoconomy is faring from merchant acceptance to gambling, and darknet purchases as well. The researcher’s study highlights that the covid-19 environment has “brought about a significant change” by impacting crypto-based spending habits.
On Monday, the blockchain forensics company Chainalysis published a research report that shows the correlation between bitcoin’s price and spending BTC with merchant services, gambling sites, and darknet markets. Statistics from Chainalysis shows that all three spending types “dropped significantly since March 9.” Covid-19 has had an adverse effect on crypto spending and even though the spending habits declined it was in a way that Chainalysis researchers did not expect. The firm says that it is understandable that during an economic crisis, spending usually drops but the company has found that the price of bitcoin is “correlated with daily Bitcoin receiving activity for the services we’re analyzing.”
“Meaning, the amount of bitcoin customers send to those service types in a given day — both before and after covid-19 reached North America,” the Chainalysis report adds. “The level of correlation has changed for each of the service types we’re looking at. For darknet markets, revenue has become more correlated with bitcoin’s price, meaning darknet markets have seen unexpectedly steep revenue declines since bitcoin’s price began to drop.”
The Chainalysis report added:
This is especially interesting considering darknet markets’ revenue previously had a small but significant inverse correlation with Bitcoin’s price, meaning we would have expected darknet markets to have slightly higher sales after the price drop. Merchant services and gambling providers, on the other hand, have seen their revenue to Bitcoin price correlation drop, meaning they’ve proven more resilient and seen less of a revenue decrease than expected.
The Chainalysis researchers remark that even though merchant services purchasing dropped, the correlation between spending with merchants fell by 50%. Chainalysis also found that the downward trend in gambling activity appears unrelated to the bitcoin price drop.
“After all, wouldn’t regular users gamble more if they’re shut in their houses all day?” the company’s blog post asks. “That doesn’t appear to be the case thus far though.” The most interesting part of the Chainalysis report is the statistics concerning darknet market (DNM) sales. According to the blockchain surveillance company, DNMs reacted to the price of BTC like “never before.”
“The effects of the covid-19 price drop on darknet markets are especially interesting. Historically, darknet markets’ revenue has had a weak inverse correlation with Bitcoin’s price,” Chainalysis wrote. “Perhaps darknet market customers aren’t buying as many drugs given the public health crisis. It’s also possible that vendors slowed down sales during the price drop, out of fear that the Bitcoin they accept one day could be worthless the next,” the study further said.
Chainalysis concludes by saying that the usage patterns were not normal and it was definitely caused by a black swan event. “The question for cryptocurrency businesses is whether or not they’ll be able to return to their previous transaction levels and if their customers’ usage patterns will return to normal as both bitcoin and the economy itself recover,” the report concedes.
What do you think about how covid-19 has effected crypto spending? Let us know in the comments below.
The post Merchant Services, Gambling, and Darknets: Coronavirus Economy Stunts Cryptocurrency Spending appeared first on Bitcoin News.
Developers from the organization General Protocols have announced the launch of a synthetic derivatives platform built on Bitcoin Cash. The project Anyhedge aims to be the first decentralized finance (defi) protocol on any branch of Bitcoin and the platform will launch in cooperation with Cryptophyl’s new non-custodial exchange, Detoken.
Bitcoin Cash fans were recently introduced to a decentralized hedge solution against arbitrary assets on the BCH network. Similar to other defi concepts, Anyhedge aims to “mitigate volatility through trading of risk in a peer-to-peer, non-custodial, blockchain enforced, fully collateralized way.” The creators of Anyhedge include well known BCH developers such as John Nieri (emergent_reasons), Jonathan Silverblood, Eric Teng, and Imaginary_username.
“We believe that Bitcoin Cash and all crypto has a volatility problem that holds back adoption,” the Anyhedge devs wrote on the read.cash blog. “Anyhedge is a trustless (except for a price oracle), synthetic derivative that we created to mitigate the stability problem using the incentives of speculation.” The white paper states:
An Anyhedge contract involves at the minimum three parties: Hedge, Short, and Oracle. Only Hedge and Short have coins [BCH] involved while Oracle does not need to be aware of the contract at all. It operates much like a subset of traditional futures and forward contracts. […] In essence, Hedge gains a peg on the external asset for their coins, while Short amplifies the risk and reward for theirs.
Further, the Anyhedge programmers say that in addition to curbing volatility, the project can bring a lot of economic activity to the BCH chain. The engineer’s announcement post notes that it can allow people to leverage BCH without leaving the network and also increases the value proposition by adding counterparty positions. Onchain economic activity takes place because the platform uses onchain contracts for mitigation. “With trust reduced to a blind oracle, the futures contract offers a unique set of advantages and disadvantages over existing stability solutions,” the Anyhedge white paper details.
When the developers have the software polished, the platform will be released in an open source manner and with libraries. The information will be helpful to exchanges and over-the-counter (OTC) crypto desks who are interested in leveraging the derivative.
“General Protocols earns revenue by providing an easy API to all of those parties, especially exchanges and OTC desks,” the software devs underline. “The API handles all the complexity around creating, monitoring and upgrading contracts with no need for new infrastructure or knowledge. A small fee is trustlessly included in every contract made with the API.”
The Bitcoin Cash community welcomed the Anyhedge project on social media and forums like r/btc. “I’m really excited about this and can’t wait to see what other markets get introduced,” one person wrote in response to the Anyhedge announcement. “Going to read through the white paper now,” the individual added.
Anyhedge developers have also explained that the platform will be available for testing soon and there’s plenty of material available for people to read up on the subject until then. “Tools for everyone to play with will be released soon, probably after everything is released with Cryptophyl and Detoken,” the Anyhedge team concluded.
What do you think about the BCH project Anyhedge? Let us know in the comments below.
The post Anyhedge to Launch Blockchain-Enforced Synthetic Derivatives for Bitcoin Cash appeared first on Bitcoin News.
The number one show on Netflix in the U.S. right now is a television series called “Tiger King: Murder, Mayhem and Madness,” and American audiences are eating it up like candy. While the docuseries costar Joseph Maldonado, aka “Joe Exotic,” spends 22 years behind bars, costar Carole Baskin is still the owner of the Big Cat Rescue sanctuary. In fact, the controversial Baskin and her Tampa-based zoo, Big Cat Rescue, accept cryptocurrencies for donations. People can donate digital currencies like BTC, BCH, and ETH to help prevent the trend of big cats kept in captivity.
During the last few weeks, the Netflix docuseries “Tiger King” has been extremely popular in the U.S. and is the number one streaming television broadcast in the country. The story takes place in various states across the U.S. and covers a number of people who own, breed, and sell big cats like Bengal tigers, leopards, and lions. The show mainly features two people who have an extreme hatred for each other, the former GW Zoo owner Joe Exotic and the Big Cat Rescue owner Carole Baskin.
Throughout the myriad of episodes, the audience finds out that the owner of Big Cat Rescue was once a big cat breeder who allegedly changed her ways to stop the captivity and the sale of large cats. For years, her archnemesis was the eccentric Joe Exotic who owned 1,200 big cats at his ranch in Wynnewood, Oklahoma. Moreover, Baskin was accused of feeding her husband to the tigers and inheriting all of her missing husband’s assets. Baskin was able to use this money to battle Joe Exotic in court and managed to liquidate all of his assets. Of course, viewers find out that Exotic spent an enormous amount of time and energy trying to prove that Baskin had indeed inherited her husband’s assets in an evil manner.
Eventually, Exotic was arrested and charged with an alleged murder-for-hire plot against Baskin and was sentenced to 22 years in prison. Lots of people actually think Exotic was the individual in the right during the fiasco and that Baskin covered up some things about the story. Her late husband’s children told the press that she managed to get a majority of his assets while his offspring only got 10%. Even the Grammy-winning rapper Cardi B tweeted about starting a Gofundme account to get him out of jail.
Bout to start a gofundme account for Joe .He shall be free.
— iamcardib (@iamcardib) March 28, 2020
What’s interesting about Baskin and Exotic’s story is that they both leveraged donations from the internet and lots of traffic from social media to help fund their goals. Joe Exotic, aka Tiger King, is not funding his projects and reality show anymore due to his incarceration. Carole Baskin, on the other hand, is still relying on donations from the online community even though she has an estimated inheritance of $30-50 million in assets. In fact, Baskin and Big Cat Rescue have leveraged cryptocurrencies to help with funding for quite some time. Currently, the Tampa, Florida-based Big Cat Rescue accepts BTC, BCH, ETH and other digital assets via Bitpay.
Even though Big Cat Rescue accepts digital currencies people may not be inclined to donate to Baskin’s cause after watching Tiger King. Bitcoiners may find that the docuseries sheds light on Big Cat Rescue’s agenda and they might even inform other crypto advocates not to donate to their cause. Although, despite the film’s depictions, Baskin has denied the accuracy of the Netflix docuseries and wrote a 3,000-word blog post disputing the show’s alleged facts.
What do you think about the Big Cat Rescue facility accepting cryptocurrencies? Let us know in the comments below.
The post Tiger King’s Archnemesis Big Cat Rescue Accepts Bitcoin appeared first on Bitcoin News.
The Spanish tax authority has reportedly started sending notices to about 66,000 cryptocurrency owners in the country. This number represents a massive increase from the 14,700 tax letters the agency sent to crypto owners last year. The letters will continue to be sent until the end of June despite the coronavirus crisis Spain is facing.
Despite the coronavirus pandemic and rising death toll, the Spanish tax authority, the Agencia Estatal de Administración Tributaria (AEAT), has started a campaign to send out tax notices to remind residents of their tax obligations. According to Europa Press:
[The Spanish tax authority] plans to quadruple the notices to taxpayers with cryptocurrency … going from 14,700 notices last year to about 66,000 in the campaign that started this Wednesday.
The campaign started on Wednesday, April 1, and will continue through June 30 regardless of the coronavirus pandemic situation, the publication conveyed. The campaign will also see the number of tax letters sent to residents with real estate rental income increase from 700,000 to 1.5 million this year and from 2.17 million to 2.32 million for those with accounts abroad.
While cryptocurrencies are not legal tender in Spain, the country currently has no specific regulatory framework for them, explained Global Legal Insights, a publication that specializes in providing information on legal, economic and policy developments.
Sales of cryptocurrencies are subject to capital gains tax at a variable rate of between 19% and 23%, the publication detailed, noting that the higher rate applies to gains in excess of 50,000 euros ($54,594). Meanwhile, the exchange of cryptocurrencies into euros and vice versa is exempt from value-added tax (VAT).
What do you think about Spain sending tax letters to 66,000 crypto owners? Let us know in the comments section below.
The post Spain’s Tax Authority Sending Notices to 66,000 Cryptocurrency Owners appeared first on Bitcoin News.
Diamond Gems Jewelry, in Jonesboro, AR has launched a new E-Commerce website accepting multiple forms of Cryptocurrency including Bitcoin, Bitcoin Cash, Dai, Ethereum, Litecoin, USD Coin and you can even pay using your Coinbase account.
• *11% of the American population owns the major cryptocurrency bitcoin (BTC), according to a new survey.
• Traditional credit and debit payments will also be accepted.
• Over 300,000 pieces of fine jewelry will be available for purchase along with unique pre-loved pieces as well.
In 2013, Larry Payton, a cryptocurrency & gold enthusiast, purchased the business and has been investing in its growth ever since.
Diamond Gems Jewelry recognizes the importance of customers having online access to their business to shop at their convenience, so they’ve invested in an incredible new ecommerce site.
Since 11% of Americans own Bitcoin, Diamond Gems Jewelry also recognized the need to offer the option for their customers to pay with Bitcoin as well as other popular forms of cryptocurrency.
“Offering our customers the convenience of cryptocurrency payments for our gorgeous jewelry is going to be a game changer.” – Marketing Director, Vanna Headley said.
“Whether you’re looking for the perfect engagement ring for the love of your life, a gift for a friend, a luxurious watch or anything in between, Diamond Gems Jewelry has a beautiful selection to accommodate anyone’s wish list.”
Contact Email Address
This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.
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Mobile payment platform Mobikwik, which has about 107 million users in India, has partnered with Delhi-based cryptocurrency exchange Buyucoin. News.Bitcoin.com talked to the CEO of the crypto exchange to find out how Mobilkwik users can soon buy and sell cryptocurrencies within the Mobikwik app.
Delhi-based cryptocurrency exchange Buyucoin has partnered with Mobikwik, a leading digital financial services platform in India. Mobikwik claims to have a network of over 3 million direct merchants, over 140 billers, and over 107 million users — with over 1 million transactions recorded on its platform per day.
“There are two types of integration we will be doing with Mobikwik,” Buyucoin CEO Shivam Thakral shared with news.Bitcoin.com, adding that they will be done in two phases. Firstly, “We’re integrating the Mobikwik payment gateway service on our platform that will have Mobikwik Wallet as a payment option,” the CEO detailed. “Their 100 million users can directly buy cryptocurrency on Buyucoin platform using the Mobikwik Wallet money.”
Thakral elaborated that in the second phase:
We will be integrating our services directly on Mobikwik Wallet so their users would have [the] option to directly buy and sell cryptocurrency within the Mobikwik app.
The Buyucoin CEO confirmed that the first phase of integration has already begun and will be live next week. The second phase of integration “will start within 3-4 weeks after the first integration is done,” he noted, adding that it will be around mid-May. In addition, “Mobikwik will be promoting this new service to their users on a regular basis,” he emphasized.
Founded in 2016, Buyucoin currently supports over 30 cryptocurrencies on its platform. The exchange says it has over 350,000 registered users and has facilitated over $50 million in crypto transactions. Mobikwik described itself as the country’s “largest issuer-independent digital financial services platform,” second largest in the mobile wallet space, and claims to be in the top three for the payment gateway industry. Its wallet can be used to make various types of payment, such as mobile minute recharges, utility bill payments, cab bookings, ticket bookings, grocery payments, and payments to both online and physical retail stores.
The cryptocurrency exchange Buyucoin has recently been granted a license in Estonia. Sharing his company’s expansion plans, Thakral told news.Bitcoin.com:
We’re currently establishing the bank accounts in Estonia. Once we’re done with that, we will be opening [our] gates to users in Europe and parts of North America.
The CEO added, “we have started doing partnerships in these jurisdictions that will help us to expand there quickly.”
Furthermore, Buyucoin has announced an initiative to donate 15% of its trading fees for the next three months to the Indian government’s Covid-19 Relief Fund to help fight against the coronavirus outbreak.
What do you think about the integration between Mobikwik and Buyucoin? Let us know in the comments section below.
The post Mobikwik to Offer 100 Million Indian Users Direct Cryptocurrency Trading Via Buyucoin Integration appeared first on Bitcoin News.
While the coronavirus wreaks havoc on the economy across the U.S., a number of the 1,737 residents from Clatskanie, Oregon can’t obtain an internet service provider (ISP). The situation has motivated the town to adopt a decentralized meshnet ISP called Althea and the network’s users are paid in cryptocurrency for relaying.
The recent events unfolding worldwide has made people aware that the internet is a resourceful tool when it comes to sharing information during a pandemic. There are lots of areas worldwide with limited internet resources and internet service providers (ISPs) that can take care of people’s connectivity needs. In various rural regions in the U.S., ISPs are hard to come by and the ones that do offer services to remote areas often charge astronomical prices. Right now, as the covid-19 outbreak ravages the American economy, some residents from Clatskanie, Oregon can’t access the internet due to the lack of ISPs. The connectivity issues have caused some Clatskanie residents to start using a decentralized meshnet service. People in the town are leveraging a meshnet solution called Althea which lets routers pay each other for bandwidth.
Essentially, a mesh network (meshnet) is a local network topology that allows people to relay and share bandwidth and route data from/to other participants. If the network grows stronger, it can operate in a non-hierarchical fashion and the more cooperation the better the network will perform. Althea’s meshnet service provides people with the incentive to host decentralized ISPs in any community, rather than relying on the monopolized services provided by cable and fiber-optic providers.
Users leveraging the Althea network can earn money by collecting payments for expanding the network. Althea users can accept two cryptocurrencies at the moment, which includes DAI and ETH. The creators of the Althea network say in the future they will be adding support for other digital assets as well. In fact, digital currencies play an important role within the Althea framework as the white paper states:
Althea allows routers to pay each other for bandwidth using cryptocurrency. An important architectural detail is that nodes only pay neighbors for forwarding packets. On top of this pay-for-forward network, we build a system allowing consumers to pay for internet access. Althea is intended to be used in local mesh networks.
Clatskanie, Oregon residents are not the only ones using the Althea system in the U.S., as citizens from Tacoma, Washington also use the Althea network. For instance, the Tacoma Cooperative Network (TCN) had shown a resident named David how to set up Althea, as he was only getting an 8Mbps internet connection. With high-speed 600ghz antennas, Althea users can get up to 200-400 Mbps. David then signed up 6 of the 12 houses on his block, who now share bandwidth with him over Althea’s network. According to Althea, TCN is an Althea organizer that helps residents get connected to the decentralized meshnet system.
A registered nurse from Clatskanie, Shannon Garcia was forced to work at home recently due to the adverse effects of the coronavirus. However, the small cattle ranch town has always had issues with ISPs and she needed internet access to talk with her patients via video calls. Garcia got Althea to start setting up shop in Clatskanie and she and other residents in the town have been able to get online since then. In addition to Oregon and Washington, Althea is also located in Denver, Colorado, and Nigeria as well. The Althea team plans on expanding to other countries like Ghana and a few other states in the U.S.
The Althea network is not the only project that has attempted to fuse the concept of mesh networks and cryptocurrencies together. Projects like Bitcoinwifi, Bitmesh, and BEWP have all tried to leverage cryptocurrencies as an incentive to share bandwidth. The covid-19 economy has kick-started the Althea network into high gear in Clatskanie. This is because the town only has one fiber connection throughout the entire region, making things difficult for households to connect. Instead of paying centralized mobile networks $150 per month for internet services, the town set up a legal cooperative called the Clatskanie Co-op.
Moreover, the Althea network’s Clatskanie says that a few residents are investing thousands to set up tower equipment as a “side hustle.” The tower equipment will allow the individuals to make more money going forward by providing far more bandwidth than the average relayer.
What do you think about the Althea network? Let us know in the comments below.
The post Coronavirus Fuels P2P Connectivity: Crypto-Driven Meshnet Gives Rural Towns Internet appeared first on Bitcoin News.
Sweden’s Financial Supervisory Authority (FSA), ’Finansinspektionen’, has fined Swedbank a record sum of 4 billion Swedish krona ($386M) for breaching anti-money laundering regulations on a large scale. Around $5.8 billion had been funneled between suspected accounts in Swedbank and Danske Bank in the Baltics, the latter already fined large amounts for previous money-laundering activities.
After Swedish public service television SVT had looked closer at Swedbank’s operations in Estonia, the inspection revealed a large number of suspicious transactions. These discrepancies prompted the Swedish FSA to start investigations into the findings. Closer scrutiny found the bank had hidden identification details on bank account holders, going so far as to keeping separate books on clients – one official, and one ’under the table,’ to help facilitate money-laundering and tax evasion.
The bank also failed to act to prevent illicit transactions and money-laundering on a large scale, according to the investigations which caused the FSA’s motivation to sanction the bank 4 billion Swedish krona ($386m). The report on Swedbank’s misbehavior found more than 1,000 clients with Swedbank-accounts in the Baltics, but with addresses in high-risk jurisdictions such as The British Virgin Islands and Belize. When examined closer, the companies registered in such jurisdictions often lacked documentation or annual reports, or had published fake financial statements. Other names found in the client list belonged to well-known high-risk individuals.
The investigations have had other more far-reaching implications; it was found that a number of the transactions facilitated by the bank helped former Ukraine president Viktor Yanukovych, who was convicted for treason in 2019 and transferred millions in funds into his personal bank accounts. Other transactions were connected with Russian oligarch Iskander Makhdumov, who is associated with organized crime.
The findings also linked transactions from Swedbank to the most extensive tax fraud in Russian history, exposed by accountant Sergei Magnitsky, who paid for his revelations with the ultimate price; death. 50 accounts in Swedbank received a total of $26 million USD from the tax fraud. The money was transferred via companies suspected of money laundering in the highly publicized scandal in Danske Bank.
Swedbank is also under investigation in the U.S., as they operate an office in New York and deal in U.S. dollars. After being exposed, an investigation was conducted for Swedbank by the independent law firm Clifford Chance in London. It found that €36.7 billion in transactions, all carrying a high risk for money laundering, were processed through the bank’s branch network. The report also said Swedbank actively targeted high-risk customers from Russia and former Soviet states. The bank may face even larger fines than dealt with by the Swedish FSA when U.S. investigations are concluded. The bank’s stock price has tanked more than 30% since the money-laundering disclosures were published.
Money-laundering is generally helped by our current fiat money system’s opaque characteristics, which also affords most commercial banks the magical ability to create new money out of thin air, when lending, also inflating our base currency. If banks, and by association also governments, were forced to use a transparent blockchain and fixed supply money system they’d have a much harder time hiding illicit transactions and inflate our currency.
Do you agree with us that Bitcoin is better than banks? Let us know in the comment section below.
The post Major Swedish Bank Fined $386 Million for Hiding Money-Laundering Evidence appeared first on Bitcoin News.
The Microsoft subsidiary, Github recently revealed the “Archive Program,” an initiative that aims to preserve open source technologies for 1,000 years. The newly launched effort plans to store snapshots of open source technology 250 meters underground on the Norwegian island of Svalbard. The source code management and collaboration platform also plans to store the Bitcoin Core software. Archivists will etch the blockchain network’s code on film reels and encase the project in a steel capsule.
Github plans to store the Bitcoin Core codebase within the depths of a mountainous region located in Norway. The project is a time capsule concept and Github is calling it the Archive Program. The program’s main goal is to store a number of open source technologies underground for 1,000 years so humans can access them in the future. Github says the mission of the program is to “preserve open source software for future generations.” The announcement reads:
The company is also partnering with the Long Now Foundation, the Internet Archive, the Software Heritage Foundation, Arctic World Archive, Microsoft Research, the Bodleian Library, and Stanford Libraries to ensure the long-term preservation of the world’s open source software. We will protect this priceless knowledge by storing multiple copies, on an ongoing basis, across various data formats and locations, including a very-long-term archive designed to last at least 1,000 years.
The Bitcoin Core repository will not be the only cryptocurrency-based repo added to Github’s time capsule initiative. A slew of other blockchain projects will be stored as well including the Ethereum and Dogecoin codebase and the Lightning Network. The company’s collaborating with Github believe in archiving software across various forms of ephemeral media and hosting platforms. The scheme is called “LOCKSS,” which stands for “Lots Of Copies Keeps Stuff Safe.” In order to ensure the safety and longevity of codebases like Bitcoin Core, the program will include “much longer-term media to address the risk of data loss over time.”
There’s a significant history of events that show lost technologies and abandoned code can lead to catastrophe. The Archive Program aims to stop mistakes that society has seen in the past like the Saturn V blueprints, anti-malarial DFDT, and Roman concrete. “Like any backup, the GitHub Archive Program is also intended for currently unforeseeable futures as well,” the announcement highlights.
“Future historians will be able to learn about us from open source projects and metadata,” the Archive Program website reads. “They might regard our age of open source ubiquity, volunteer communities, and Moore’s Law as historically significant. We are already partnering with Stanford Libraries to help archive curated repositories along with the cultural and other context in which they are set, as key elements of wide-ranging historical and social research and analysis,” Github added.
After the announcement, software developers and cryptocurrency proponents discussed the topic on social media and forums. “[The Archive Program], and cockroaches, will be around long after the coronavirus kills us all,” one person jokingly tweeted. Seeing how the announcement was revealed on April 1, some people thought the news was an April Fool’s Day joke as well.
What do you think about Github storing the Bitcoin Core protocol for 1,000 years? Let us know in the comments below.
The post Film Reels and Steel: Github Plans to Archive Bitcoin Code for 1,000 Years appeared first on Bitcoin News.
Satoshi Nakamoto has been an enigma for well over a decade and there’s been a number of suspects and self-styled Bitcoin inventors. One particular suspect is the computer engineer Wei Dai, the creator of the b-money system and the Crypto++ cryptographic library. Since the Bitcoin network was launched in 2009, a number of people have had suspicions that Wei Dai could have played the role of Nakamoto.
We don’t know who is behind the real identity of the person or group of people that created Bitcoin. The anonymous creator(s) not only invented the concept of cryptocurrency, but also managed to keep the identity of Satoshi Nakamoto a secret for more than 11 years. In our fifth installment of the “Many Facts” series, we discussed how Dorian Nakamoto was mistaken for being the anonymous Bitcoin creator in 2014. The following is the sixth installment in the series, offering a comprehensive look at the circumstantial evidence that might point to Wei Dai being Satoshi. Dai is a well known cypherpunk and he is referenced in the citations section at the end of the Bitcoin white paper. Over the last decade, a number of speculators have assumed Dai might be the cryptocurrency’s creator and a few armchair sleuths have tried to tie the two together as one.
One reason people think that Dai played the Nakamoto part, is because the talented cryptographer has the smarts to pull it off. Moreover, Dai created a C++ library for cryptographic functions called Crypto++ and he’s still a member of the academic and cypherpunk community. Dai is also a staunch supporter of privacy and the New York Times described the cryptographer as an “intensely private computer engineer.” Dai’s theories about anonymous electronic cash infrastructure can also be found on the cypherpunks mailing list well before Bitcoin was released. The cryptographer also crafted an electronic money system called “b-money” and it is the reason he is referenced in the Bitcoin white paper. In addition to his white paper reference, Dai and Nakamoto also exchanged a few emails in 2008, according to documents hosted on gwern.net.
B-money is an interesting system and Dai explained in 1998 that Tim May’s crypto-anarchy “fascinated” him. “Unlike the communities traditionally associated with the word ‘anarchy,’ in a crypto-anarchy the government is not temporarily destroyed but permanently forbidden and permanently unnecessary,” Dai wrote in the first section of the b-money white paper. “It’s a community where the threat of violence is impotent because violence is impossible, and violence is impossible because its participants cannot be linked to their true names or physical locations,” the computer engineer added.
Dai was already a well-established character well before Satoshi allegedly emailed him in order to discuss peer-to-peer electronic cash concepts. In the 2008 emails, the two discuss Nick Szabo and Dai assumes that the conversations prove Szabo could not be Nakamoto. The emails between Nakamoto and Dai were originally published in March 2014’s Sunday Times editorial. “The more important reason for me thinking Nick isn’t Satoshi, is the parts of Satoshi’s emails to me that are quoted in the Sunday Times,” Dai wrote. On August 22, 2008, Satoshi Nakamoto wrote to Dai and said:
I was very interested to read your b-money page. I’m getting ready to release a paper that expands on your ideas into a complete working system.
Further, the entropy similarities between Wei Dai and Satoshi Nakamoto’s written text also adds to the list of supporting evidence that Dai could be the mysterious creator. The only person who scored higher than Dai was former Bitcoin Core developer Gavin Andresen. Craig Wright, the self-proclaimed Satoshi who has yet to prove himself, has 12 people above him after Dai.
Other than mere circumstances and coincidence, there’s really not a smoking gun pointing to Dai actually being Nakamoto and he’s never admitted it either. Theories of Dai being Nakamoto are also dismissed because Dai and Nakamoto engaged in email conversations and he’s referenced in the white paper, so he would have to be playing ‘double agent’ roles. But that hasn’t stopped speculators in the crypto community who believe people like James Donald and Hal Finney could have been Nakamoto too and played double roles.
Do you think Wei Dai could be Satoshi? Let us know in the comments below.
A cryptocurrency investment scheme called Bitcoin Revolution has recently garnered interest worldwide with its claim that investors could easily earn over $1,000 a day. They could even become millionaires within 61 days using the Bitcoin Revolution app. However, this is a scam and it recently ran into trouble with the Securities and Exchange Commission of the Philippines.
The Bitcoin Revolution investment scheme has been around for quite some time but it has recently gathered more interest as the coronavirus outbreak intensifies and people are struggling to find more income due to job losses and other economic factors.
The Bitcoin Revolution app claims to be “automated trading software that has been designed to trade the bitcoin and cryptocurrency markets,” its website states. For those looking to figure out if the Bitcoin Revolution app is a legit investment opportunity or a scam, there are several red flags to note. Firstly, the Bitcoin Revolution website is a cookie-cutter website that is shared by many other known scams — 10 of which are featured in our article on Bitcoin Superstar and Bitcoin Era.
Boasting that its app has “a very high success rate of over 99%,” the Bitcoin Revolution website claims: “This means that most of the trades it enters into end successfully. What this means is that you could be earning over $1,000 a day.”
To lure unsuspecting investors, Bitcoin Revolution and other scams using the same website format make themselves seem like they have been endorsed by celebrities. Their promo video features Virgin Group founder Richard Branson, Microsoft founder Bill Gates, Google’s Eric Schmidt, and Virgin Galactic chairman Chamath Palihapitiya.
People from various countries have been drawn to Bitcoin Revolution hoping that it would be a safe investment option during the coronavirus pandemic, including those in Australia, Europe, Singapore, the UAE, El Salvador, and South Africa.
Several similar scams have gotten into trouble with the government of various countries. On Tuesday, the Securities and Exchange Commission Philippines issued a warning about Bitcoin Revolution. In addition to stating that this investment scheme is not authorized to do business in the country, the Commission warned of several red flags, including asking for an upfront investment and promising outrageous returns that sound too good to be true.
The Philippine SEC wrote:
Bitcoin Revolution claims that for a minimum investment of two hundred fifty dollars ($250.00), investors can earn as much as one thousand dollars ($1,000.00) or three hundred percent (300%) per day or a total of nine thousand percent (9,000%) per month.
Furthermore, the Commission explained: “Bitcoin Revolution asserts that its software enables anyone to trade bitcoins and other cryptocurrencies easily with a success rate ranging between eighty-eight percent (88%) to ninety-five percent (95%) per transaction which makes the profit potential limitless making some of its investors millionaires in just sixty-one (61) days … Bitcoin Revolution added that its software is designed to eliminate the need to spend hours analyzing the markets as the program will do all the work for the investors. All they need to do is to sit back and watch their profits grow.”
However, as with all scams, anyone uploading money into their account at Bitcoin Revolution is unlikely to ever see that money again. When searching for investment opportunities online, take caution as there is an increasing number of scams during this global pandemic.
What do you think of Bitcoin Revolution? Let us know in the comments section below.
The post Bitcoin Revolution: Wanna Earn $1,000 a Day? Government Warns About This Scam appeared first on Bitcoin News.
An Indian state official recently met with the founders of the “India Crypto Bulls” initiative and discussed cryptocurrency development, investment, and innovation in India. News.Bitcoin.com talked to Kumar Gaurav, one of the founders, to find out more about the meeting.
Amin Pathan, chairman of the Dargah Committee in Ajmer, under the government of India’s Ministry of Minority Affairs, recently met with the founders of the India Crypto Bulls initiative — the team that is organizing a nationwide roadshow in 15 major Indian cities.
News.Bitcoin.com talked to one of the India Crypto Bulls founders, Cashaa CEO Kumar Gaurav, about the meeting. He explained that Pathan is “the president of the Dargah Committee, Ajmer, which is one of the biggest holy pilgrimages of Muslims all over the world. He is exploring blockchain solution to digitize various assets governed by his ministry to finish any corruption due to title unclarity.” Pathan is also chairman of the Rajasthan State Haj Committee (State Minister), former State President BJP Minority Morcha Rajasthan, and the vice president of the Rajasthan Cricket Association.
Pathan discussed his views regarding India’s crypto development, investment, and innovation. He told the India Crypto Bulls founders:
The state is looking to host a conference with participants including Indian administrative service officers who are concerned and relevant with the key affairs relating to bitcoin and other digital asset financial services.
“Moreover, the upcoming conference in the state by Rajasthan minister will also comprise of training sessions on compliance, how cryptocurrency investment can be matured, precautions that an investor has to follow before dealing or planning to invest in cryptocurrency and several other factors,” the team conveyed. “They believed India Crypto Bulls’ roadshow is closely aligned with their vision of hosting upcoming conferences.”
Gaurav Dubey, O1ex CEO and the other founder of India Crypto Bulls, was quoted as saying, “We are sure that India Crypto Bulls will be able to spread the right knowledge on Cryptocurrencies in Rajasthan with tremendous outreach, under his wise guidance.” Cashaa’s CEO further told news.Bitcoin.com:
He [Shri. Pathan] supported the nationwide Indian Crypto Bulls roadshow and will host the event in his city Jaipur, and Udaipur.
India Crypto Bulls is an initiative by Gaurav and Dubey. They had planned to launch a roadshow across about 15 cities in India in early April to prepare the country for the next crypto bull run and educate the public regarding cryptocurrencies. However, due to the current coronavirus pandemic and the directives from the Indian health ministry, the roadshow has been postponed and will be rescheduled for a later date.
The cryptocurrency ecosystem in India is rebuilding after the damage done by the April 2018 circular issued by the central bank, the Reserve Bank of India (RBI), which banned banks from providing services to crypto businesses. The ban forced several crypto businesses to shut down as a result.
After multiple delays, the Indian supreme court finally ruled that the circular was unconstitutional. The court lifted the ban on March 4. Since then, crypto exchanges have been busy bringing back INR banking support. Several global companies also plan to expand into India and invest in Indian crypto startups. Furthermore, the Indian government is reportedly planning to regulate the crypto space instead of imposing an outright ban as recommended by the interministerial committee (IMC) headed by former Finance Secretary Subhash Chandra Garg.
Commenting on his meeting with Shri. Pathan, Gaurav said: “I found Shri. Amin Pathan Ji an inspiration for youth in India and abroad who lost hope from Indian politicians. After meeting Aminji, I feel confident that under his leadership and with the backing of BJP, emerging technologies like blockchain will get the strong support of Indian govt.” Welcoming Pathan onboard the India crypto bulls roadshow, he indicated:
The meeting concluded with a futuristic talk on crypto adoption and development in India. In addition to this, the ministry invited India Crypto Bulls to Rajasthan as a way to emphasize on the crypto discussion.
What do you think of this meeting with Amin Pathan? Let us know in the comments section below.
The post Indian State Ministry Discusses Cryptocurrency Plans With Founders of Crypto Bulls Roadshow appeared first on Bitcoin News.
Bitcoin and cryptocurrencies may be the only free-market assets left not manipulated by central banks like the U.S. Federal Reserve. Since the covid-19 outbreak, the Fed has unleashed a massive arsenal of monetary weapons to combat the effects on the economy. After the significant rate cuts, quantitative easing (QE), and buying mortgage-backed securities, analysts believe the Fed could start purchasing stocks in order to quell the economy.
On Tuesday, the U.S. Federal Reserve threw another tool into the financial system by announcing an international repo option in order to curb investors from panic-selling Treasuries. Since the covid-19 outbreak started spreading rapidly throughout the nation, the economy has been hit hard by numerous industry shutdowns across the U.S. After closing borders and shutting down major U.S. industries, the Fed has tried to save the American economy by using a variety of monetary schemes. The Fed has introduced rate cuts, quantitative easing (QE), foreign currency swap lines, discount windows, a Commercial Paper Funding Facility (CPFF), a Term Asset-Backed Securities Loan Facility (TALF), and a Secondary Market Corporate Credit Facility (SMCCF). The aforementioned list just scratches the surface when it comes to the newly introduced schemes the Fed has initiated since the covid-19 outbreak.
The Fed also invoked a Money Market Mutual Fund Liquidity Facility (MMFLF) and bought $185 billion in mortgage-backed securities. However, all these moves have not helped stock and commodity markets and the mortgage-backed securities purchase threatened the U.S. real estate market. After the Fed bought the mortgage securities it caused a massive margin call and put hundreds of lenders at risk and without capital.
To those of you wondering what the US stock market will do on any given day, just remember, the Fed has unlimited purchasing power to buy it all up. They have 100 percent full control over stocks and they will do whatever they please with it. Goodbye price discovery. The end.
— Heidi (@blockchainchick) March 26, 2020
Despite the adverse effects on the housing market, the Fed is still attempting to insulate the American economy with the central bank’s parlor tricks. The Fed’s new international repo is an unprecedented move by the central bank, as it will provide foreign central banks with the ability to get USD in exchange for U.S. Treasuries. In addition to the international repo, the Fed also revealed it established a temporary FIMA Repo Facility (FRF) to “help support the smooth functioning of financial markets.”
Fed has printed trillion of $ to do what?
To purchase financial assets
-They already are largest holders of real estate in the world
-Have already pushed the short term yields into negative
-They will soon buy out stocks
Don't fall for dead cat bounce#Buyeroflastresort
— Vinay Jaiswal (@vinayjazzi) March 31, 2020
Now economists and investors think the Fed’s next move will see the central bank purchasing stocks. Because the American economy is in turmoil, market analysts say that the Fed will likely use this approach soon to bolster the financial system. “If there were any major dislocations, it is clear that they will go into whatever nook and cranny in the market that starts to choke,” chief market strategist at Prudential Financial, Quincy Krosby, told the media on Sunday. The Prudential executive further stated:
We know that when you have choking in one part of the market, you have choking in another part of the market that leads to dislocation. As soon as you cross that line, you are now facing something else that you could conceivably buy.
Members of the Federal Reserve and the Shadow Open Market Committee have already discussed the possibility of the Fed buying stocks to help the economy. Boston Fed President Eric Rosengren told the committee on March 6 that he thinks the U.S. should “allow the central bank to purchase a broader range of securities or assets.”
Cryptocurrency participants believe that the current economy is the “perfect storm” for censorship-resistant and a mathematically probable financial system. Bitcoin has a lot of benefits to a society that has been having significant problems doing what they want with their own money. In the last six months alone, news.Bitcoin.com has reported on governments and banks in countries like the U.S., Egypt, Lebanon, India, and Germany limiting cash withdrawals. Cryptocurrencies like bitcoin have better properties than gold during an economic crisis, as analysts have questioned gold’s alleged ‘safe-haven’ status since the 2007-2008 financial catastrophe. It’s a well known that central banks oversaturated bullion markets during those years by using bullion-bank repos just like they do with Treasuries today.
Cryptocurrency markets did decline with everything else under the sun on March 12th, otherwise known as ‘Black Thursday.’ The decline has made people assume that BTC and other digital assets have a strong correlation with stocks and equities right now. However, historical data shows digital asset markets have always been non-correlated with stocks, commodities, and equities. A higher correlation during a black swan event (covid-19) doesn’t equate to both markets being tethered together whenever economic environments change.
As the Fed and central banks worldwide pull out every tool they have in the monetary policy toolbox, bitcoiners understand that digital assets cannot be manipulated as easily as fiat currency, property investments, precious metals, and the stock markets. If you have never read or heard about the positive benefits and economic freedom bitcoin can provide, get started today with some of our educational resources.
What do you think about the Fed possibly buying stocks next? Let us know what you think in the comments below.
The post Financial Bazookas Revealed – Market Strategists Believe the Fed Will Purchase Stocks Soon appeared first on Bitcoin News.
As the bitcoin halving approaches, crypto-mining ‘death spirals’ and miner capitulation have become prominent topics among digital currency enthusiasts. Despite the trending discussions, Coinshares head of research Christopher Bendiksen published a study that says “[bitcoin] mining death spirals do not actually happen in real life” and the speculation is a “highly theoretical edge case.”
After approximately 210,000 blocks are mined on BTC’s blockchain, the network’s block subsidy halves and after May 13, BTC miners will get 6.25 coins instead of 12.5. The halving event happens roughly every four years and the upcoming one, in particular, has caused crypto enthusiasts to speculate on what will happen after the event. Moreover, the recent covid-19 outbreak has caused economic calamity worldwide, as cryptocurrency prices were largely affected by fears of a looming recession.
Because of these two factors combined, crypto speculators and haters think that miners will be “doomed” after the halving and there will be massive miner capitulation. A few individuals and headlines have called the theoretical event a crypto-mining ‘death spiral’ and people assume BTC miners will face catastrophe. However, a recent research study from the firm Coinshares disagrees with this argument and the company’s head of research called the fears “highly theoretical edge cases without any historical real-world precedent.”
In the report called “Why Bitcoin Miners Will Keep Mining,” Christopher Bendiksen talks about how current BTC prices are down more than 50% from the 2020 highs. The researcher details that this means miners have lost 50% of their income and a few “high-cost producers will now be unprofitable.” “When miners turn cashflow negative they will turn off their gear and hashrate will fall,” Bendiksen said. News.Bitcoin.com recently reported on how the hashrate had fallen from the 136 exahash per second (EH/s) high at the end of February, to 75EH/s after the market rout on March 12. The close to 45% hashrate reduction caused the network’s difficulty adjustment to drop to the second-lowest point in history. Bendiksen’s report discusses how the difficulty adjustment algorithm (DAA) is a key element within the BTC network.
In the death spiral scenario, Bendiksen stressed that some people believe that a big enough hashrate drop would slow down block times and eventually “grind the network to a halt since no new blocks are mined.” “This, in turn, will cause prices to drop further causing more miners to shut down until no one is left mining and the price hits zero,” Bendiksen wrote. The Coinshares head of research, however, doesn’t think this situation is plausible in the real world and thinks it only lives in people’s theoretical discussions. Coinshare’s report is also similar to the question answered by bitcoin researcher and evangelist, Andreas Antonopoulos, who discussed mining death spirals on Youtube. “Part of the reason that’s unlikely to happen is that miners have a much more long-term perspective,” Antonopoulos noted in the video.
The Coinshares researcher also explained how in a rare, edge-case scenario it would take an awful lot of factors like gaming the DAA with precision and dumping on market prices at the same time. “In real life though, markets don’t move like that,” Bendiksen’s report highlights.
“On top of that there are operational concerns on the part of miners that prevent shutdowns on such rapid timelines,” Bendiksen wrote. “Powering down a several hundred-megawatt mine is not a matter of pulling a socket plug — you would risk severely damaging the local grid. Moreover, many miners have offtake agreements that mandate that they continue their draw for as long as they are able to pay their contracted bills. The point is: even when bitcoin prices significantly fall (which happens pretty much every year) or the mining reward is halved (which happens at predetermined time intervals), the physical and operational realities of the mining network are such that drawdowns in hashrate take time,” the report states. Bendiksen’s research further notes:
In practice, hashrate reductions are therefore always smoothly caught by the dynamic difficulty adjustment and block frequencies never get anywhere near ‘crisis levels’ (whatever that even means).
Bendiksen and Coinshares believe that the network was designed to handle these exact situations and they are confident things will be fine going forward. “Because of the design choices we’ve explained above the mining network has never failed to produce blocks. The difficulty has reset downwards many times — sometimes dramatically as the result of a pullback in price (the November/December 2018 is an excellent example to study), but never has the network ground to a halt or even come anywhere close to it,” Bendiksen’s report concludes.
What do you think about the Coinshares mining report and death spirals? Let us know in the comments below.
The post Bitcoin Halving Capitulation: ‘Mining Death Spirals Don’t Happen in Real Life,’ Says Report appeared first on Bitcoin News.
The U.S. mortgage industry faces collapse once again, this time due to the economic consequences following the coronavirus outbreak and massive job losses. Up to 50% of borrowers could default on their mortgage payments, according to industry estimates. Since the stimulus bill signed by President Donald Trump provides relief for homeowners but does not provide relief for the mortgage industry, companies are worried they may go out of business.
The coronavirus outbreak and subsequent job losses could result in an unprecedented number of people left unable to make their mortgage payments. Facing a second mortgage industry crisis in recent history, many of the country’s largest mortgage lenders are warning they will soon be pushed to the brink of failure. The breadth of the coronavirus pandemic has sparked industry estimates of between 25% and 50% of borrowers being unable to pay their mortgage payments, according to the publication Politico.
Jay Bray, CEO of the mortgage servicing company Mr. Cooper, explained that if 25% of borrowers fail to make their mortgage payments, the industry would need $40 billion to survive for three months. Noting that his company has already seen a 50% increase in borrowers seeking assistance, “The magnitude of people who are going to take the plan is going to be like nothing we have ever seen,” he said. Mortgage Bankers Association CEO Bob Broeksmit added that the industry could need more than $100 billion depending on how long the situation lasts.
However, the Coronavirus Aid, Relief & Economic Security (CARES) Act, the $2.2 trillion stimulus package President Donald Trump signed into law on Friday, does not include relief for the mortgage industry, the publication noted, adding:
While the final bill allocates $454 billion for the Treasury Department to support the Federal Reserve’s emergency lending programs, including for large corporations, there is no overt requirement for lending to mortgage companies, despite a weeklong lobbying push by the industry.
Broeksmit noted, “We have been in constant contact with many parts of the administration to ensure that they understand the urgency of this liquidity facility being set up.”
Among companies most affected are mortgage servicers, which handle loans and process mortgage payments. About 60% of mortgages in the U.S. are secured through nonbank lenders such as Quicken Loans, the Washington Post explained. “One in three of the country’s $11.2 trillion in mortgages is overseen by nonbank servicers, which collect borrowers’ payments every month, and say the economic fallout from the pandemic represents an unprecedented challenge to their future.”
When people stop making payments, these companies are still legally obligated to keep sending money to insurers and investors in mortgage-backed securities using their own money. The publication described:
Mortgage lenders are preparing for an avalanche of distressed homeowners that could drive a housing crisis that rivals the one that left millions of Americans in foreclosure a decade ago.
“This time, rather than homeowners falling behind on their payments slowly over several years, mortgage delinquencies could spike suddenly as people find themselves without a job or have their salaries cut within the next few months,” the news outlet continued. Inside Mortgage Finance publisher Guy Cecala was quoted as saying: “This time the problems are going to be nondiscriminatory. It will apply to people with good credit, or someone who is well-off, and ran a restaurant. We haven’t had a crisis where everyone is impacted regardless of financial situation.”
Treasury Secretary Steven Mnuchin said on Thursday that the Financial Stability Oversight Council is “particularly focused on the liquidity issues that market may have.” He further revealed that he was establishing a task force to report back to the council on the matter.
“Concerns about liquidity in the mortgage finance system have been building for years, as the companies that service mortgage loans are increasingly nonbanks — which don’t have banks’ access to Fed loans or their strict capital requirements and deposits to fall back on,” the publication details.
Andrew Jakabovics, vice president for policy development at Enterprise Community Partners, an affordable housing nonprofit, believes that the mortgage system would break down if mortgage companies fail across the board. He opined:
The kinds of relief we did during the foreclosure crisis — all of that had to do with the fact that we wanted to ensure that investors from across the world would continue to treat U.S. mortgage-backed securities as an incredibly safe investment … That would have very serious ramifications for the availability and price of mortgage credit.
Michael Bright, CEO of the Structured Finance Association, which represents 370 financial institutions in the bond market, believes the Fed will eventually come through with an emergency lending program for the mortgage industry. “Even though that language wasn’t included,” Bright said of the stimulus bill, “I do think it’s likely that this could be part of [the Fed’s Term Asset-Backed Loan Facility Program] in the end.” He previously managed Ginnie Mae’s $2-trillion portfolio.
Do you think the mortgage industry will get its own bailout? Let us know in the comments section below.
The post US Mortgage Industry Could Collapse as Housing Crisis Looms, Experts Say appeared first on Bitcoin News.
The popular cryptocurrency exchange Binance is allegedly in talks with the owners of coinmarketcap.com in hopes of purchasing the website for $400 million. People familiar with the matter explained the acquisition will be announced this week and could be one of the largest procurements in the cryptocurrency and blockchain industry to-date.
Binance has grown quite large since launching in 2017 when the global cryptocurrency exchange was founded by Changpeng Zhao (CZ) and Yi He. The following year in 2018, the exchange was considered the largest in the world in terms of cryptocurrency trading volume. The firm has also acquired the Indian exchange Wazirx, the Beijing-based Dappreview, a derivatives exchange called JEX, Mars Finance, and a digital currency mobile wallet branch called Trust Wallet. Now according to people familiar with the matter, Binance is set to announce another acquisition and it might end up being the largest procurement in the crypto industry so far.
The official story floating around crypto-land is that Binance is close to completing a cash and stock deal with the owners of coinmarketcap.com. The website is one of the most popular cryptocurrency data sites and according to Alexa ratings, coinmarketcap.com is ranked 570 worldwide and 819 in the United States. Coinmarketcap (CMC) gets a lot of traffic from countries like the U.S., India, and Brazil as the site sees millions of users visiting the site regularly. The Binance acquisition of coinmarketcap.com is ostensibly a cash-and-stock deal that involves $400 million. Speculators assume that it will be the largest acquisition within the cryptocurrency and blockchain industry to date. For instance, the coinmarketcap.com transaction would be well over the capital injected into 21 Inc. ($121 million), otherwise known as earn.com.
Both Binance and coinmarketcap.com have not spoken to the media about the acquisition, but Binance CEO Changpeng Zhao did hint at some upcoming procurements that he was “very excited” about. Coinmarketcap has an interesting history as the owner Brandon Chez kept his identity unknown, up until he was doxxed by the Wall Street Journal on January 23, 2018. Chez also sat down for a fireside chat with the anonymous Sunny King last year during The Capital conference.
Coinmarketcap has had its share of controversy as well and a number of people do not trust the data that stems from the site. The crypto market cap aggregation website was criticized during the first week of January 2018 for delisting the exchange rates of South Korean crypto trading platforms. When cross-referencing coinmarketcap.com’s data with alternative crypto market valuation sites like messari.io, there’s some discrepancies when it comes to “reported” and “real” or onchain trade volumes.
After the Binance acquisition of coinmarketcap.com (CMC) stories hit social media and crypto forums, a great number of digital asset proponents discussed if it would be “good or bad” for CMC. “I don’t like it at all — I guess I’ll continue to use my favorite CMC alternatives,” one person tweeted after hearing the news.
“CMC has been bad for years — The amount of scams they’ve allowed to advertise on their site has been awful. Hopefully [Changpeng Zhao] changes that,” another crypto proponent added. A great number of the comments on Twitter were negative and many people talked about the relationship between Tron and Binance as well.
What do you think about the possibility of Binance acquiring coinmarketcap.com? Let us know in the comments below.
The post The Crypto Industry’s $400M Cash and Stock Deal – Binance to Acquire Coinmarketcap.com appeared first on Bitcoin News.
Despite the global coronavirus pandemic, Japan continues to approve more cryptocurrency exchanges to legally operate in the country. The latest one was approved on Monday, bringing the total number of legal crypto exchanges in Japan to 23.
Japan’s top financial regulator, the Financial Services Agency (FSA), registered another cryptocurrency exchange operator on Monday. Japan legalized cryptocurrencies as a means of payment under the amended Payment Services Act back in April 2017 and crypto exchange operators are required to register with the FSA. The agency started registering them in September 2017.
The latest one registered by the FSA was Okcoin Japan, the Japanese subsidiary of Ok Group. Founded in September 2017, the Tokyo-based exchange has been approved to trade BCH, BTC, ETH, ETC, and LTC, according to the FSA’s website. The exchange will soon launch; it is currently accepting pre-registrations for account opening.
Okcoin Japan is also a member of the Japan Virtual Currency Exchange Association (JVCEA), a self-regulatory organization approved by the FSA. The agency is closely cooperating and exchanging information with the association. The JVCEA has established some self-regulatory guidelines for crypto exchanges to follow.
All 23 FSA-registered crypto exchanges in Japan are “Class 1” members of the JVCEA. The organization also has “Class 2” members comprising companies that are not yet licensed by the FSA, such as Coinbase, Payward Asia, and Wirex Japan.
Besides Okcoin Japan, there are 22 other registered cryptocurrency exchange operators in the country. In September 2017, 11 of them were registered: Money Partners, Quoine, Bitflyer, Bitbank, SBI VC Trade, GMO Coin, Huobi Japan (formerly Bittrade), Btcbox, Bitpoint Japan, Fisco Cryptocurrency Exchange, and Tech Bureau. Tech Bureau was acquired by Fisco after it was hacked in September 2018. However, the two platforms continue to operate independently and are still listed on the FSA’s website as two separate entities.
On Dec. 1, 2017, DMM Bitcoin, Taotao (formerly Bitarg), Bitgate, and Xtheta were registered. Bitocean followed suit on Dec. 26. In 2018, no crypto exchange operator was registered due to the hack of Coincheck, one of the largest crypto trading platforms in the country. The FSA subsequently tightened its oversight of the industry, conducted on-site inspections of exchanges, and revised its method of approval. After the hack, Coincheck was acquired by Monex Group and was finally registered with the FSA on Jan. 11 last year.
In addition, the agency approved five more crypto exchange operators last year. Rakuten Wallet and Decurret were registered on March 25, LVC on Sept. 6, Lastroots on Nov. 27 and Fxcoin on Dec. 24. LVC is a subsidiary of Line Corp., owner of Japan’s most popular chat app, Line. Soon after it successfully registered with the FSA, the company launched a crypto exchange called Bitmax.
What do you think of the rate at which Japan approves crypto exchanges? Let us know in the comments section below.
The post 23 Approved Cryptocurrency Exchanges in Japan — Number Rises Despite Pandemic appeared first on Bitcoin News.
While most digital assets have been suffering, stablecoins have been surging since the market downturn in mid-March and tether (USDT) is capturing more than 70% of BTC trades today. Besides tether, a wide range of other dollar-pegged cryptocurrencies have also benefited this month, as the market valuation of eight different stablecoins combined is well over $7 billion.
Crypto assets have seen better days as far as market values are concerned and on March 30 the valuation of all 5,000+ digital currencies is around $182 billion. Today, more than $7 billion from that number represents eight stablecoins including USDT, USDC, PAX, TUSD, DAI, GUSD, BUSD, and HUSD. Most of that $7 billion derives from USDT’s market cap, as the firm Tether has reported it now has more than $6 billion in liabilities. Data shows that the total assets under the company’s control equal: $6,141,809,416. Moreover, there’s a slew of stablecoins with much smaller market caps, but still have seen greater demand since the start of the mid-March market rout.
On Monday, USDT is commanding more than 70% of trades, which is a lot but not very unusual these days either. As news.Bitcoin.com noted in our recent report about the influx of stablecoin demand, USDC and PAX have continued to remain in the top five BTC pairs globally. Both coins are gathering more than 5% of BTC’s global trades each and both of them combined have seen more trade volume than the U.S. dollar.
Over the past month, fiat-collateralized stablecoins built on Ethereum have seen substantial inflows.
Ethereum's stablecoin economy is growing at a staggering rate. pic.twitter.com/Mp5Yl2k2hE
— Cole Kennelly ⬙ 🦄 (@ColeGotTweets) March 29, 2020
According to sites like coinmarketcap.com, there’s an alleged $118 billion in global crypto trades on March 30. BTC captures $36 billion of those trades and tether (USDT) commands $44 billion. However, stats from messari.io indicate BTC is leading in “real volume” with $1.4 billion in worldwide trades and USDT capturing $1.1 billion. Messari’s data also shows USDT’s reported market cap is larger than XRPs now.
It’s uncertain whether tether is actually doing 22% more volume than BTC, but lots of USDT stats indicate the volume is at least on par with BTC trade volumes regularly. In addition to Pax and USDC, the stablecoins HUSD and BUSD have seen increased demand as well.
Competition has increased a great deal among all the stablecoins and Justin Sun revealed Tron is launching a ‘DAI-like’ stablecoin called “USDJ.” The coin will allegedly be pegged to the USD rate by using collateralized digital assets.
The recent stablecoin demand was noticed by the entire crypto community and Coin Metrics discussed the situation in the firm’s latest report. “Stablecoin transfer value hit an all-time high amidst the market turmoil,” Coin Metrics wrote. The researchers added:
The dual impact of Bitcoin’s USD value halving and massive issuance of stablecoins led to stablecoins’ market cap as a percentage of Bitcoin’s doubling in a matter of days.
What do you think about the demand for stablecoins? Let us know in the comments below.
The post Stablecoin Market Caps Swell Over $7 Billion – Volumes Surpass Most Trading Pairs appeared first on Bitcoin News.
Anyone venturing into the digital currency scene understands the significance of performing analyses to evaluate potential gains. Security breaches and hacking are a constant risk when it comes to the realm of cryptocurrencies.
Nevertheless, the level of security and protection offered by the trading platform chosen is often overlooked. Consequently, this oversight has so far resulted in a loss of approximately $4.26 billion. Whenever scammers or hackers are successful in their fraudulent practices, this results in an average loss of $43 million.
2 Notorious Cases where Security Failed
Reputability and popularity do not guarantee protection from malicious behaviour. To fully understand the gravity of fraudulent activity and security breaches, one must keep in mind some of the most infamous security failures in recent history.
Loss: 120,000BTC or $72 million in assets (2016)
Considered as one of the most prominent cryptocurrency exchanges globally with about two million users, Bitfinex sees billions of dollars’ worth of transactions daily. This successful exchange fell victim to a major hack back in 2016, having the amount of 120,000BTC stolen, which was equivalent to $72 million. In today’s prices, that would be a much higher figure. Bitfinex used to offer multi-signature wallets through BitGo, a feature created to enhance user security. However, 12 months after this component was introduced, the hack occurred.
The question was raised: what made Bitfinex susceptible to this fate? The way its accounts were structured was the first step towards security failure – to withdraw a large amount of funds, BitGo would likely have had to sign off transactions.
The hack caused Bitcoin’s market value to drop by a staggering 20%.
Loss: 7,000BTC or $40 million in assets (2019)
Binance is widely believed to be the world’s largest crypto exchange, based on trading volumes. Despite this, the exchange was not able to avoid a phishing scam or recognise the virus-type malware that was used to hack into it. The group of hackers got away with $40 million worth of Bitcoin.
In one of his blog posts, CEO Changpeng Zhao announced that Binance will make “significant changes to the API, 2FA, and withdrawal validation areas, which was an area exploited by hackers during this incident.” Zhao vowed to work on “more innovative ways” to prevent risks and improve KYC, whilst enhancing user and threat analysis,
Providing a Viable Solution
When looking into investing assets, finding a trusted source that provides detailed research and relevant information about cryptocurrencies and trading platforms is critical. Nowadays, there’s a smorgasbord of online resources – one never knows which to trust. Nevertheless, it is important to be selective when it comes to deciphering between a trustworthy source and one that gives little to no guidance.
Cryptimi.com provides information that examines aspects of payment methods, security, fees, and customer support. For the ultimate user experience, it even lists the latest reviewed and top-ranking cryptocurrency exchanges (with regular updates when positions shift), to make for a more reliable search. The user can customise the search by filtering results and specifying the preferred deposit method, jurisdiction, and the type of platform.
Doing the Legwork Before Taking the Plunge
Finding the best cryptocurrency exchange is imperative prior to venturing into any kind of financial investment. This holds true for both novice investors, and veteran traders. Both investors and traders should have a reliable point of reference when conducting their research.
A reputable reference site like Cryptimi equips the reader with all the right tools to take an informed step by constantly publishing trustworthy, unique, and relevant content.
Indubitably, cryptocurrency exchange platforms are an essential piece to the digital currency puzzle, because they are the link that allows individuals to buy, sell, and trade cryptocurrencies. Nevertheless, before investing or trading on a new broker or exchange, one needs to ensure that the funds being invested will be utilised to their full potential. Fortunately, you can put both your mind and assets at rest with Cryptimi.com – your only go-to reference that guides you to your financial growth.
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The post Safeguarding Investments: Cryptimi.com Offers the Solution appeared first on Bitcoin News.
On Sunday, the Central Bank of Egypt (CBE) announced it had instructed financial institutions in the country to put withdrawal limits in place for cash. Regional reports disclose that Egyptian residents can only withdraw 10,000 Egyptian pounds ($640) and businesses can only withdraw 50,000 pounds ($3,200). The CBE cited concerns over the covid-19 outbreak and also limited automated teller machine (ATM) withdrawals to 5,000 pounds per day.
The global economy has been suffering from the economic hardships tied to the covid-19 outbreak that has ravaged multiple countries. The coronavirus scare has caused people to question the use of cash due to the uncleanliness of bills. For instance, at the beginning of March, the U.S. central bank told the public it was holding U.S. dollars repatriated from Asian countries in a separate area. Further, the faltering economy has also caused banks in countries like the U.S. and Germany to place withdrawal limits on cash.
Now Egyptians are facing the same cash issues and the country’s central bank is imposing cash withdrawal limits across the board. In addition to the withdrawal limits imposed, the CBE’s Tarek Amer told reporters on Sunday via Sada al-Balad TV that “Egypt is facing a cash problem.” Amer disclosed that there’s roughly 26 billion pounds being transferred out of Egypt to international banks and Egyptian travelers are also taking lots of cash with them when they travel abroad. However, local media quickly pointed out that Egyptian expat remittances were well over 26 billion pounds and were actually closer to 34 billion pounds ($2 billion+ USD).
The monetary authority of the Arab Republic of Egypt explained on March 29 that it had told Egyptian banks to impose limits on cash withdrawals. The reason for the CBE’s move is to help curb the rising coronavirus spread in Egypt, Africa and other countries in the Middle East. The CBE’s new guideline says that the daily limit for individual withdrawals will be 10,000 Egyptian pounds ($640) and Egyptian companies can only withdraw 50,000 pounds. Further, the central bank told financial institutions to limit ATM withdrawals down to 5,000 pounds. The Egyptian pound’s inflation rate has been worse than most countries, as it was 13% in 2019 and 9.9% in 2020. Most central banks try to keep the inflation rate around 2%, but the Egyptian pound has suffered since the CBE floated the national currency in November 2016.
Egyptians have also been told by the CBE that they should “avoid paper currency” and the citizenry should adopt electronic transfers and e-payments so they can control the covid-19 outbreak. “All banks canceled fees on transfers and e-payment methods for the citizens’ convenience,” the CBE said on Sunday. The day prior, the central bank of Egypt started an electronic payments initiative to encourage citizens to stop using physical pounds. Before that initiative, the CBE told smaller banks they could not impose late payments on certain loans and asked banks to delay credit penalties against customers and organizations.
The covid-19 outbreak is not the first sign of governments worldwide limiting the use of cash within a nation. Lebanese citizens have been dealing with the economic hardship as well. The country’s central bank imposed customer withdrawal limits last October. The Reserve Bank of India (RBI) imposed strict restrictions at the end of September 2019, which caused a broad range of Indian citizens to grow angry and rush branches.
Following the coronavirus scare, a few U.S. banks imposed withdrawal restrictions as customers from the Hamptons in New York tried to empty large accounts. Bank customers from a few other U.S. states also complained of withdrawal limit issues from financial institutions like Bank of America, Chase, and JPMorgan. Last week, reports also disclosed that a number of German banks have imposed withdrawal limits and customers can only withdraw 1,000 euros per visit.
Meanwhile, throughout the madness of this crazy environment filled with financial calamity, bitcoin supporters believe the time is now for worldwide citizens to adopt a censorship-resistant peer-to-peer electronic cash system. Banks have continued to make it harder for people to do what they want with their own money and with the covid-19 crisis, the problem is far more apparent. Americans, Egyptians, Lebanese, Indians, Germans, and citizens across the globe are starting to realize the glaring issues tied to modern central banking the hard way.
What do you think about the CBE imposing Egyptian pound withdrawal limits? Let us know in the comments below.
The post Egypt Limits Bank and ATM Withdrawals Citing Rampant Cash Outflow and Coronavirus Fears appeared first on Bitcoin News.
In 44 days, BTC miners will face the third reward halving as the block subsidy will soon shrink from 12.5 to 6.25 coins per block. Following the market carnage in mid-March, BTC’s hashrate plummeted 44% to a 2020 low of 75 exahash per second (EH/s). Since then the hashrate has climbed back above 100EH/s, but profitability between SHA256 networks like BCH and BSV has been a lot more erratic than usual.
Three halvings are just around the corner and people monitoring these networks have been noticing a lot more action within the SHA256 mining ecosystem. The market downturn after March 12, stemming from the covid-19 scare, has caused a massive revenue shift for individuals and organizations mining bitcoins. News.Bitcoin.com recently reported on how bitcoin miners have been selling more coins than they have been generating. Moreover, at the same time, the BTC hashrate lost 44% of its processing power and the network saw the second-largest difficulty drop in history. Now there’s only 44 days left until BTC’s subsidy halving, as the chain will halve on or around May 13. Since news.Bitcoin.com’s report three days ago, BTC miners have managed to jump back above the 100EH/s mark.
At the time of publication, bitcoinsv (BSV) miners have 2.4EH/s of hashpower and the network is expected to halve in ten days. Bitcoin cash (BCH) has around 3.4EH/s hashing away at the network and BCH miners will face a halving in eight days. With the significant price drop and the BTC difficulty drop that followed, all three networks have been seeing much longer time frames when it comes to miners shifting between networks for profits on each network.
Miners who are mining 2-3 of the most valuable SHA256 chains are bouncing back and forth depending on each chain’s profitability. For instance, from March 13 through the 21st, the profitability between BTC and BCH was considerable and favoring BCH. Similarly, after March 21, the opposite was true for about a week and miners moved hashpower over to BTC for a while. With all three halvings expected to happen roughly around the same time frame, the events make speculators believe that the trend of miners bouncing back and forth will continue to increase.
The price drop that affected all three SHA256 networks (BTC, BCH, and BSV) has caused a number of mining operations to close up shop or make an acquisition. On March 18, DPW Holdings revealed that because of the adverse effects of the covid-19 outbreak, the firm’s subsidiary mining farm Digital Farms would be closing indefinitely. The company filed an update with the U.S. Securities and Exchange Commission (SEC) about the decision to shut down operations. The report notes that Digital Farms shut down 28 megawatts (MW) of power “due to the unprecedented market conditions domestically and internationally.”
Following the closure of Digital Farms, Hive Blockchain Technologies Ltd (TSX.V:HIVE) announced the acquisition of a mining operation with 30MW of power. The facility uses “low-cost green power” and resides in Lachute, Quebec. “The acquisition provides us with an advanced, operating Bitcoin mining facility ready to transition to next-generation mining hardware with access to some of the lowest-cost electricity on the planet,” Frank Holmes, interim executive chairman of Hive told the press on Monday. “The facility is powered entirely by renewable hydroelectricity, thereby maintaining our 100% green energy powered operations globally,” the Hive executive further remarked.
Just recently, Coinshares data and many other researchers have reported roughly 74% of bitcoin mining operations are leveraging some form of renewable energy. While mining bitcoins continues to grow popular, the state of Montana has seen a lot of miners setting up shop in the region.
On March 27, officials in Missoula County, Montana proposed extending a guideline that requires miners operating in the state to use renewable energy sources. The proposal passed unanimously among the Missoula County Board of Commissioners and it will last until April 3, 2021.
A recent research report by Securities Daily’s Xing Meng reveals that older mining units like Bimain’s S9 (14TH/s) may not survive with bitcoin prices so low and with the upcoming reward halving. The mining operation F2pool has already reported that an estimated 2.3 million Antminer S9s have been shut off to-date.
Securities Daily’s Xing Meng and F2pool’s data shows that 16nm-powered mining rigs that have been the standard since 2016 face extinction. Although, the recent adjustment in BTC’s difficulty has allowed 16nm powered units like the S9s to continue until the halving. According to data, right now an S9 with 14/THs and $0.04 per kWh, will lose $11 a day. This data indicates that electricity prices would have to be near free for S9s to continue going forward after the halving.
The current global economy fears mixed with the upcoming halvings on all three SHA256 networks, will surely make things in crypto-land more eventful. Signs of stress and large swings in mining profitability and hashrate, indicate that miners are likely simply trying to survive the best they can. For the last few years, bitcoin mining has been extremely competitive and the competition and stress will likely grow exponentially after these three halvings are said and done.
What do you think about the challenges miners face with the current price and upcoming halving? Let us know in the comments below.
The post Bitcoin Mining Roundup: BTC Regains 100 Exahash, Miners Close Shop, Pre-Halving Shake-Up appeared first on Bitcoin News.
The International Monetary Fund (IMF) has declared that we have entered a global recession — one that is as bad as or worse than the previous global financial crisis. 80 countries have already requested emergency assistance from the IMF. Meanwhile, the G20 has reported fiscal measures totaling some 5 trillion dollars or over 6% of global GDP.
Kristalina Georgieva, Managing Director of the International Monetary Fund, talked about the current economic situation during a press briefing on Friday. She also outlined measures taken by the IMF and the G20 countries in an effort to prevent a total economic meltdown due to the coronavirus pandemic. The press conference followed the G20 leaders meeting the day prior. “We have reassessed the prospect for growth for 2020 and 2021,” Georgieva said, elaborating:
It is now clear that we have entered a recession – as bad as or worse than in 2009.
She added that recovery will only happen this year if the coronavirus is contained globally and liquidity problems are prevented from becoming a solvency issue, emphasizing that a wave of bankruptcies and layoffs can undermine the recovery.
To avoid a total economic meltdown, many countries have taken extreme measures. “The G20 yesterday reported fiscal measures totaling some 5 trillion dollars or over 6 % of global GDP,” Georgieva detailed. “To support this, last night the IMF launched a policy action tracker for 186 countries to help us all to see who is doing what. We will be updating this information regularly and will provide country-specific analysis in line with our surveillance mandate.” The IMF chief added:
We have seen an extraordinary spike in requests for IMF emergency financing – some 80 countries have placed requests and more are likely to come. Normally, we never have more than a handful of requests at the same time.
Georgieva further revealed that the IMF Executive Board approved the first of these emergency requests for the Kyrgyz Republic (Kyrgyzstan) on Thursday. “We also see a wide range of problems building up in emerging markets – the spread of the virus, the shut-down of economies, capital outflows and – for commodity exporters – a price shock,” she continued, adding:
Our current estimate for the finance needs of emerging markets is $2.5 trillion – a lower-end estimate for which their own reserves and domestic resources would not be sufficient.
The IMF chief explained that her organization is taking a number of measures and collaborating with other entities such as the World Bank. Firstly, the IMF is proposing to double its emergency financing capacity, simplify its processes, and fill the gap in its concessional financing. Secondly, the Fund will review its lending instruments such as expanding the use of precautionary credit lines. The IMF has also approved changes in the application of the Catastrophe Containment and Relief Trust (CCRT) which it hopes to provide some debt relief to its poorest member countries. The U.K., Japan, and China have already pledged their support to increase the capacity of the CCRT.
What do you think of the IMF declaring that we are in a recession? Let us know in the comments section below.
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