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Hier — 25 janvier 2020Bitcoin News

Trump ‘Loves’ Negative Rates and ‘Could Get Used to’ Them, Criticizes Fed at World Economic Forum

Par Graham Smith
Trump 'Loves' Negative Rates and 'Could Get Used to' Them, Criticizes Fed at World Economic Forum, China Trade Deal

U.S. President Donald Trump spoke at the World Economic Forum in Davos, Switzerland Tuesday saying the U.S. and other nations are “forced to compete … with nations that are getting negative rates, something very new.” Trump took direct shots at the U.S. Federal Reserve, claiming they’ve not lowered rates quickly enough. The harsh words echo remarks made just last week during the “phase-one” China trade deal signing ceremony, where the president stated he doesn’t know “where the hell it leads” but that negative interest rates such as implemented in Germany and Japan are “incredible.”

Also Read: Maduro Opens International Crypto Casino

Trump Enamored by Minus Signs

During his speech at the World Economic Forum in Davos, Switzerland, President Trump lamented the U.S. being unable to keep up with countries like Germany and Japan which have negative interest rate policies (NIRP). “[Other nations are] forced to compete, and we compete, with nations that are getting negative rates, something very new,” the president remarked during a half-hour speech at the event. He went on:

Meaning they get paid to borrow money, something that I could get used to very quickly. Love that. Gotta pay back your loan? No. How much am I getting?

Trump 'Loves' Negative Rates and 'Could Get Used' to Them, Criticizes Fed at World Economic Forum, China Trade Deal
Trump speaking at the World Economic Forum in Davos, Switzerland on Tuesday.

Though Trump assured the audience that the “time for skepticism is over,” and cited flows of labor and industry back into the U.S. — going on for almost half an hour detailing the many ostensible achievements of his administration — the flowery language was tempered by talk of negative rates and the U.S. Federal Reserve. “The Fed has raised rates too fast, and lowered them too slowly,” Trump asserted.

Trump 'Loves' Negative Rates and 'Could Get Used' to Them, Criticizes Fed at World Economic Forum, China Trade Deal

More Verbal Jabs During China Trade Deal Signing Last Week

Trump made similar remarks during the signing ceremony for the phase-one trade deal with China on January 15. Admitting he doesn’t know “where the hell it leads,” but nonetheless advocating negative rates, he stated:

It bothers me when Germany and other countries are getting paid to borrow money … They get paid, I love this, this concept is incredible. Again, you don’t know where the hell it leads, but you borrow money and when you have to pay it back, they pay you. This is one that I like very much.

In the speech the president was noticeably unable to grok the NIRP system, musing aloud why anyone would give out loans at a loss, but nonetheless lent strong verbal credence to the practice, much like his pro-NIRP counterparts at the European Central Bank.

Non-Conservative Views on Monetary Policy

In one sense, the president’s lamentations about high rates in the U.S. are not surprising, given a growing global trend toward and beyond the zero bound. However, aiming for sub-zero sovereign bond yields such as those seen in Japan and Germany seems to some like a race to the bottom, where no bottom may be in sight.

Trump 'Loves' Negative Rates and 'Could Get Used' to Them, Criticizes Fed at World Economic Forum, China Trade Deal
https://www.wsj.com/articles/japans-legacy-of-low-bond-yields-holds-lessons-for-u-s-europe-11577710806

Trump’s views are mirrored by those of European Central Bank (ECB) president Christine Lagarde, who stated in October that “We should be happier to have a job than to have our savings protected.” Of course many strongly disagree with both Lagarde and Trump, and are looking to find safety in assets like gold and crypto, often perceived to be more economically sound than fiat money. In the context of stagnating and uncertain economic climates like those in Trump’s model nations of Germany and Japan, it seems everyday individuals are not as in love with the idea of NIRP as the world’s so-called leaders.

What are your thoughts on Trump’s position regarding the Fed and negative interest rate policy? Let us know in the comments section below.


Image credits: Shutterstock, Evan El-Amin, fair use.


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The post Trump ‘Loves’ Negative Rates and ‘Could Get Used to’ Them, Criticizes Fed at World Economic Forum appeared first on Bitcoin News.

À partir d’avant-hierBitcoin News

6 Bankers Accused of Earning €30M in Bonuses From German Fraud, Tax Lawyer Out on €4M Bail

Par Lubomir Tassev
6 Bankers Accused of Earning €30M in Bonuses From Fraud Scheme in Germany, Tax Lawyer Out on €4M Bail

Former bank employees have received bonuses worth millions of euros in an illegal trading scheme that also involved a tax lawyer, prosecutors in Frankfurt revealed this week. The case is part of multiple investigations carried out across Germany, the hardest hit country in a notorious tax fraud scandal known as the Cum-ex Files.

Also read: European Banks Struggle With Low Interest Rates and Strict Regulations

Frankfurt Fraud Costs Germany €389 Million

The six bankers got 29.5 million euros (close to $33 million) in bonuses from the alleged fraud, German prosecutors said this past Monday. The staggering numbers, mentioned in the charges filed earlier this month against the bankers and the lawyer, were made public in an announcement by the Frankfurt Prosecutor’s Office which was quoted by Reuters.

6 Bankers Accused of Earning €30M in Bonuses From German Fraud, Tax Lawyer Out on €4M Bail

The prosecutors did not reveal the entities that employed the accused but according to sources quoted in the report, the individuals worked for Maple Bank. The Frankfurt-based financial institution collapsed in 2016 as a result of its involvement in cum-ex trades which were conducted between 2006 and 2009 and cost the state €389 million in lost taxes (more than $421M).

Two of the bankers have been in custody since their detention in December 2019 following the investigation carried out by German authorities. The tax lawyer, Ulf Johannemann, who is a former partner at the law firm Freshfields, was arrested the previous month. He has been released on a 4 million euro bail, the news agency detailed.

The case in Frankfurt, the Eurozone’s financial capital, is just one of a series of investigations in the Federal Republic into the large-scale tax scam. Participants in the fraud generated multiple tax reclaims from phantom dividends from mostly German companies. Officials insist that the scheme required intensive cooperation between big financial institutions, investors and legal experts to achieve its goals.

The Cum-Ex Files

The tax fraud in Frankfurt and other similar cases involving cum-ex deals were discovered by news organizations and tax authorities a decade later, sparking a heated debate in German society that led to the launch of a parliamentary inquiry. The government in Berlin has estimated that its losses amount to 5 billion euros but the damage may be even bigger.

Although Germany is the hardest hit country, a number of other EU member states like France, Italy, Denmark, and Belgium have been affected by the massive fraud as well. It has been estimated that a network of bankers, brokers, asset managers, consultants, investors, and lawyers managed to extract public funds worth an estimated €55 billion (over $60 billion), exploiting a legal loophole in tax laws and in particular the German tax code.

6 Bankers Accused of Earning €30M in Bonuses From German Fraud, Tax Lawyer Out on €4M Bail

The cum-ex scheme involves the lending and trading of shares with (cum in Latin) and without (ex) dividend rights between multiple parties around the “record date,” an established quarterly date when companies determine who owns their stock and who is eligible to receive dividend. The numerous transactions make it hard for tax authorities to know who the current owner is. The rapid exchanging of shares, sold with-dividend just before record date but delivered without dividend right after, is aimed at allowing two parties to simultaneously claim ownership of the same stock, each of whom was entitled to a tax rebate and claimed refunds on taxes that had been paid only once.

It was possible to implement the scheme partially because of the way the German tax system functions. The capital gains tax is automatically deducted from all dividend payments but dividends are taxed differently depending on the status of the receiving party. While private individuals owe 25% capital gains tax on their dividends, dividend income for corporate entities such as investment companies is added to all other income and charged with 15% corporation tax on the total annual profit. Thus, institutional investors could reclaim the capital gains tax that has already been deducted.

What’s your opinion about the cum-ex fraudulent trading scheme in Europe? Share your thoughts on the scandal in the comments section below.

Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is 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 this article.


Images courtesy of Shutterstock.


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The post 6 Bankers Accused of Earning €30M in Bonuses From German Fraud, Tax Lawyer Out on €4M Bail appeared first on Bitcoin News.

New Guidelines Subject Canadian Crypto Exchanges to Securities Laws

Par Lubomir Tassev
New Regulatory Guidance Subjects Crypto Exchanges in Canada to Securities Laws

Canadian regulators have issued new guidance determining when current securities legislation applies to operations conducted by cryptocurrency exchanges. According to the clarifications in the document, many domestic and foreign entities serving Canadian users, for example those that provide custodial services, will have to abide by the country’s securities laws and act like securities dealers.

Also read: Canadian Company Commissions 3 Bitcoin Mining Units to Restart Oil Well

CSA Tries to Explain When Cryptos Are Securities

The Canadian Securities Administrators (CSA), a council of the regulatory bodies of Canada’s provinces and territories, published on Thursday Staff Notice 21-327 Guidance on the Application of Securities Legislation to Entities Facilitating the Trading of Crypto Assets. The legal interpretation, which comes after a consultation paper proposed a framework for crypto asset trading platforms in March, is supposed to help operators identify situations where Canadian securities laws may or may not apply to their activities.

New Guidelines Subject Canadian Crypto Exchanges to Securities Laws

The CSA explains that in certain cases crypto assets clearly represent securities. A tokenized security, for instance, carries rights that are traditionally attached to common shares such as voting rights and rights to receive dividends, the organization notes. A crypto asset can also be a derivative, the CSA remarks, like when a token provides an option to acquire an asset in the future. The regulator points out:

Securities legislation may apply to platforms that facilitate the buying and selling of crypto assets that are commodities, because the user’s contractual right to the crypto asset may itself constitute a derivative, a security or both.

The agency notes that the relevant determination will depend on the specifics, including “the obligations and intention to provide immediate delivery of the crypto asset.” Trading platforms would not be subject to securities legislation if “the underlying crypto asset itself is not a security or derivative,” or when the contract for the purchase, sale or delivery results in an obligation to make immediate delivery of the asset to the user.

In an attempt to define what constitutes ‘immediate delivery,’ however, the CSA admits there is no “bright-line test” to determine whether a contract or an instrument results in an obligation to make and take immediate delivery of a crypto asset. At the same time, a crypto transaction may be subject to securities laws if it does not clearly result in such an obligation.

The CSA staff will examine the terms of the contractual arrangements between crypto exchanges and their users as well as their typical commercial practices to establish if they create an obligation for immediate transfer of ownership, possession and control of crypto assets. The organization which coordinates the regulation of capital markets across Canada also details:

As part of this analysis, we will consider whether the platform and the user intend, at the time the contract or instrument is entered into, to make and take delivery of the crypto asset on which the contract or instrument is based.

Custodial Platforms to Operate as Securities Dealers

Then there’s the question of how to establish not only whether but also when exactly a crypto asset has been delivered. According to the guide, an immediate delivery occurs when ownership, possession and control is immediately transferred by the exchange and the user is afterwards free to deal with the asset without further participation of the platform. Also, the exchange must not retain any security interest or other legal right to the asset and the user should not be exposed to any risks related to the platform in the future.

New Guidelines Subject Canadian Crypto Exchanges to Securities Laws

Relations with exchanges, domestic and foreign, providing custodial services will be subject to securities regulations as there’s no obligation for immediate delivery of the assets to a user-controlled wallet. Clients remain reliant on the platform and exposed to insolvency, fraud, and other risks on its part. This means that following the new guidance, many of the hundreds of crypto exchanges operating globally will have to apply and be licensed as securities dealers to work in Canada, if they maintain their current business models, the Globe and Mail noted in an article.

The notice issued by the CSA contains many abstract statements such as “focus on substance over form,” “typical commercial practice,” and “intention to make and take immediate delivery.” This highlights how difficult it is to produce clear definitions and apply the traditional set of terms and rules to the trading and exchange of cryptocurrencies and other crypto-related activities. The regulator acknowledges that “new fintech businesses may not fit neatly into the existing framework” and invites such companies to join its regulatory sandbox. Participants in the initiative will enjoy a faster application process for exemptive relief from Canada’s securities law requirements, the CSA promises.

What do you think of Canada’s new regulatory guidance regarding the application of securities laws to crypto trading? Share your thoughts on the subject in the comments section below.


Images courtesy of Shutterstock.


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Fed Officials Ponder Funding Hedge Funds and Private Brokers Directly

Par Jamie Redman
Fed Officials Ponder Funding Hedge Funds and Private Brokers Directly

On January 13, the New York Federal Reserve gave $60.7 billion to eligible private financial institutions by leveraging U.S. Treasurys and agency securities. With all the stimulus given to financial institutions since September, it hasn’t relieved the stress of economic uncertainty. Now the Fed is pondering giving money directly to hedge funds and private brokers in order to ease the current pressure and lack of liquidity within U.S. repo markets. Moreover, two Federal Reserve branch presidents have voiced concerns in regards to the American economy in 2020.

Also Read: Money and Democracy: Why You Never Get to Vote on the Most Important Part of Society

The Fed Wants to Ease Pressure Within Repo Markets by Directly Funding Hedge Funds and Private Brokers

The U.S. Federal Reserve has slashed interest rates three times since September 2019 and has pumped massive amounts of fiat into the hands of financial institutions by leveraging overnight repos and other monetary easing tactics. On Monday, the New York Fed provided eligible banks with $60.7 billion, with $30.2 billion toward agency securities and $30.5 billion in U.S. Treasurys. A few times a week since September, the Fed has been stimulating private banks in this fashion, giving them trillions of dollars.

Fed Officials Ponder Funding Hedge Funds and Private Brokers Directly
The New York Fed reported that it gave $60.7 billion to eligible banks on Monday, January 13, 2020.

Now the Fed is talking about giving cash directly to eligible hedge funds in order to help ease the demand within U.S. repo markets. Last week, Fed officials discussed a similar idea by creating a “standing repo facility” so private banks can access fiat reserves any time they want. Officials on Tuesday brought up the idea of hedge funds, smaller banks, and securities brokers borrowing funds from the Fed through the repo clearinghouse by pledging securities like government bonds.

Fed Officials Ponder Funding Hedge Funds and Private Brokers Directly
The Federal Reserve is pondering giving funds directly to hedge funds and securities brokers. Analysts think it will create a “hedge fund bailout” situation. “The Fed protects gamblers at the expense of the economy,” said the chairperson of the Public Banking Institute Ellen Brown earlier this week.

According to market observers, the Fed wants to step away from repo-market operations. However, critics believe that lending funds directly to securities brokers and hedge funds could lead to a “hedge fund bailout.” After all the rate cuts and massive printing, numerous people believe “the Fed protects gamblers at the expense of the economy.” The chairperson of the Public Banking Institute Ellen Brown noted this week that the “repo market is little known to most people.” But the repo market is: “a $1-trillion-a-day credit machine, in which not just banks but hedge funds and other ‘shadow banks’ borrow to finance their trades,” Brown recently wrote. Brown’s scathing critique of the Fed’s monetary solutions further added:

The repo market is a fragile house of cards waiting for a strong wind to blow it down, propped up by misguided monetary policies that have forced central banks to underwrite its highly risky ventures.

Inflation and Asset Bubble Concerns Mount

The Public Banking Institute chairperson is not the only one worried, as two Federal Reserve Bank presidents have expressed “concerns,” seeing a surge in inflation and a growing asset bubble. Boston Fed President Eric Rosengren cited the real estate market as a potential area for a bubble.

Fed Officials Ponder Funding Hedge Funds and Private Brokers Directly
From left to right: Boston Fed President Eric Rosengren (L) and the Fed president of Atlanta Raphael Bostic (R). Both presidents have voiced concerns about runaway inflation and asset bubbles.

Additionally, Federal Reserve Bank of Atlanta President Raphael Bostic told the public: “There’s not a lot that we have left to do to stimulate.” Following the statements from two Fed branch presidents, former Federal Reserve chair Ben Bernanke said if the central bank takes “extraordinary steps,” it could save the economy. Bernanke also detailed that’s what he and the Fed did during the 2008 Great Recession. During a speech delivered in San Diego Bernanke stressed:

A moderate increase in the inflation target or significantly greater reliance on active fiscal policy for economic stabilization, might become necessary.

Fed Officials Ponder Funding Hedge Funds and Private Brokers Directly
Former Federal Reserve chair Ben Bernanke said if the central bank takes “extraordinary steps” it could save the American economy. Bernanke also detailed that’s what he and the Fed did during the 2008 Great Recession. U.S. residents witnessed the Fed’s ‘extraordinary measures’ (QE) that took place back in 2008-2009, which led to massive Occupy Movement protests in 2012 against the bankers and 1%.

In addition to the dreary outlook from former and present Fed employees, last week Rabobank executive Philip Marey said he believes the Fed will cut interest rates to zero. Despite Marey’s forecast, the central bank’s board seems reluctant to cut rates again. However, on January 14, the Swiss wealth giant UBS said the Fed will likely cut rates three times in 2020. “We think this tariff damage is going to push U.S. growth down … that’s actually going to trigger three Fed cuts, which is way off consensus, nobody believes that,” Arend Kapteyn, global head of economic research at UBS stated on Tuesday. At the time of writing, CME Group’s Fed Watch tool indicates that the probability of the Fed slashing rates again in 2020 is 50%.

What do you think about the Fed’s capital injections lately? What do you think about them giving funds directly to hedge funds, smaller banks, and securities brokers? Do you think the Fed will cut rates again in 2020? Let us know what you think about the central bank’s monetary schemes in the comments section below.


Image credits: Shutterstock, Wiki Commons, Fair Use, Wall Street Journal, Getty Images, and Pixabay.


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The post Fed Officials Ponder Funding Hedge Funds and Private Brokers Directly appeared first on Bitcoin News.

Online Bullion Marketplace Onegold Sees $50 Million in Crypto Payments

Par Jamie Redman
Online Bullion Marketplace Onegold Sees $50 Million in Crypto Payments

On January 13, the online bullion marketplace Onegold announced the launch of a new mobile application so customers can buy, sell or redeem precious metals at any time. Since 2018, Onegold has accepted cryptocurrencies like BCH and BTC and the firm currently gives customers a 2% discount for paying with cryptocurrencies. According to Bitpay, Onegold has seen $50 million worth of crypto payments since supporting digital assets, which represents 10% of the firm’s yearly revenue.

Also Read: Close to 11 Million BTC Haven’t Moved in Over a Year

Onegold Sees $50 Million in Crypto Payments Since December 2018

In December 2018, news.Bitcoin.com reported on the Apmex and Sprott owned online bullion marketplace Onegold accepting cryptocurrencies via Bitpay. At the time, Bitpay’s chief commercial officer Sonny Singh said that Bitpay and Apmex have worked together for years and when they launched Onegold, the Atlanta firm was “ready to help them accept bitcoin and bitcoin cash.” Since then, Bitpay claims cryptocurrencies have represented 10% of the firm’s online revenue and Onegold has processed $50 million in digital currency transactions.

Essentially, Onegold provides a service where users can fund their accounts to purchase gold and silver, as transactions are independently verified and the company uses top-tier vaulting partners. For instance, the company claims its digital silver and gold products are fully allocated and physical metals are kept safe at the Royal Canadian Mint. Onegold clients can redeem their digital silver and gold products at any time through Apmex. The gold or silver credits from Onegold can be exchanged for physical coins, bars or rounds.

Online Bullion Marketplace Onegold Sees $50 Million in Crypto Payments
At the time of writing, Onegold is offering 2% off orders for precious metals purchases via Bitpay.

At the time of publication, Onegold also offers 2% off orders if people pay with cryptocurrencies via Bitpay. Since it uses the payment processor, Onegold supports BCH, BTC, ETH, and the various stablecoins Bitpay accepts. Additionally, on January 13, Onegold announced the launch of a new application that will make it easier to buy, sell, and redeem precious metals. According to the announcement, the new platform is available for Android and iOS mobile devices and the marketplace is open 24/7. “This mobile app will further enable our mission to ensure wealth preservation is conveniently available to everyone at the lowest possible total cost of ownership available on the market today,” explained Ken Lewis, Chief Executive Officer at Onegold on Monday.

Dollar-Cost Average the Price of Gold and Silver Over Time

Precious metals markets have seen increased activity in 2019 and on January 8, 2020 gold prices surged past the $1,600 per ounce mark after Iran allegedly fired rockets at U.S. occupied Iraqi bases. One Troy ounce of .999 precious gold touched $1,605.80 on global spot markets that day. So far, precious metals and digital assets have seen significant gains after the domino effect of war games between American forces and Iranians.

Online Bullion Marketplace Onegold Sees $50 Million in Crypto Payments
Through Bitpay, Onegold accepts BCH, BTC, ETH, and three stablecoins.

Onegold isn’t the only online operation that sells precious metals (PMs) for cryptocurrencies as there’s a variety of crypto-accepting providers. News.Bitcoin.com’s Kai Sedgwick recently reported on how to use cryptocurrencies in order to invest in gold. For instance, the well known gold bug Peter Schiff often tweets about how much he dislikes bitcoin but Schiffgold.com accepts BCH and BTC for PM purchases.

Online Bullion Marketplace Onegold Sees $50 Million in Crypto Payments
Onegold launched its iOS and Android compatible mobile application on Monday, January 13, 2020.

The report also discusses platforms like Kinesis, Currency.com, and the digital currency Digix gold token (DGT). People can also leverage companies like Goldsilver, Suisse Gold, Silvergoldbull, Apmex, JM Bullion, Roberts & Roberts, Bitgild, Vaultoro, Goldmoney, SDBullion.com, and Money Metals to purchase PMs with cryptos. Onegold’s announcement claims the new application features transparent pricing “with no hidden fees.”

The Apmex owned subsidiary believes the mobile application will make it easier for PM investors to dollar-cost average their safe-haven assets. “Onegold is an ideal resource for people who would like to passively save weekly, monthly or quarterly and dollar-cost average the price of gold and silver over time,” the company’s announcement emphasizes. Onegold stresses that with the mobile app, customers can take possession of the physical bullion at any time as Apmex will deliver the products using priority mail.

What do you think about Onegold’s new application for iOS and Android smartphones? What do you think about the $50 million the company raked in from cryptocurrency payments? Let us know what you think about this topic in the comments section below.

Disclaimer: Bitcoin.com does not endorse or support claims made by any parties in this article. None of the information in this article is intended as investment advice, as an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any products, services, or companies. Neither Bitcoin.com nor the author is 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 this article.


Image credits via Shutterstock, Wiki Commons, Fair Use, Onegold.com, the Apple App Store, and Pixabay.


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The post Online Bullion Marketplace Onegold Sees $50 Million in Crypto Payments appeared first on Bitcoin News.

Germany’s Financial Crisis Invokes 5-Year Rent Freeze

Par Jamie Redman
Germany's Financial Crisis Invokes 5-Year Rent Freeze

All eyes are on the German economy which was once perceived as stable and strong. However, the financial state of affairs has been tumultuous and Berlin’s state cabinet recently agreed to a five-year rent freeze to help curb the rising housing costs in the country. Moreover, Bundesbank just published a monthly report that explains how Germany’s economic output is in a deep slump and the country’s monetary system has been beaten by Brexit fears and trade wars.

Also read: Liquidity Difficulties in China: Second Bank Bail-Out Now Reality

Bureaucrats from Berlin Agree to a Rent Freeze

Many European nations have been focused on the Federal Republic of Germany and its economy. Economists and bankers from the region have been warning that the outlook is looking dreary for the rest of the year and into 2020. According to Germany’s central bank, the German economy has already fallen into the start of a recession. Bundesbank’s monthly report said the “German economic output could have decreased slightly in the third quarter of 2019,” and emphasized that it deflated by 0.1%. The eroding nature of the decline was “mainly due to the fact that the export-oriented industry continued to weaken,” Bundesbank said. The news follows all the warning signs that the next big financial crisis begins in Germany after the greater European Union saw a massive reduction in production. Bundesbank’s recently published report highlights that auto industry revenue in Germany dropped 1.5% between Q2 and Q3.

Germany's Financial Crisis Invokes 5-Year Rent Freeze
Deutsche Bundesbank.

Now the leftist coalition within Berlin’s government has decided to agree to a five-year rent freeze. Reports claim that the three parties in Germany, the Greens, Social Democrats, and Die Linke, all believe a rent freeze is needed to battle housing costs that have spiked considerably in recent months. So much so that renters have called the rent inflation “rent madness” as rates have risen by 2.8% annually for close to two decades. The rent freeze plan was designed and promoted by the coalition of politicians including Katrin Lompscher of Die Linke. A rent freeze basically entails creating a price ceiling throughout the region and no increases in rent are allowed until the expiry date. Rent price controls are an extremely controversial practice and historically Keynesian economists have pushed the idea for decades. Germany has a long history of rent controls and started a system of “second-generation rent controls” in 1989 and again in 2015. The legislation known as the “Mietpreisbremse” or “rent brake” was supposed to stop rising rents.

Germany's Financial Crisis Invokes 5-Year Rent Freeze
Germany, April 6, 2019, a demonstration on the Berlin Alexanderplatz against “rent madness and repression.”

A Rebirth of Communist Ideals

A few weeks ago, Leonid Bershidsky said the new rent control plan floating around the coalition of German bureaucrats was a case of “communist amnesia.” Bershidsky asserts that Germany’s capital city regulations “would greatly empower bureaucrats and boost a black market in housing.” Germany’s new rent freeze will ban increases for a five-year period except on housing that is already receiving subsidization and new construction homes. In order to make sure landlords are following procedure, tenants must have the city sign any new rent contracts. Berlin landlords are not too pleased with the socialist government stepping in on rent control and German economists believe landlords will skip much-needed renovation plans. For instance, because landlords won’t be able to raise the rent, most will likely choose to skip improving the property until the rent freeze ends. Moreover, by the end of the expiry date, people think that the rental prices will spike considerably by reflecting actual supply and demand.

Germany's Financial Crisis Invokes 5-Year Rent Freeze
With central planners manipulating the economy, safe-haven assets like precious metals and digital currencies have risen in value. Are you looking for a secure way to buy bitcoin online? Start by downloading your free bitcoin wallet from us and then head over to our Purchase Bitcoin page where you can easily buy BTC and BCH.

Germany’s economy has been an integral part of the EU as a whole and the Eurozone. Watching the German economy can provide a telltale sign that something is wrong and signals from European central banks support this. In the U.S., the doom and gloom economic forecast is the same, where Trump’s trade war has been affecting markets and the Federal Reserve has been participating in overnight repos and slashing interest rates. Extreme economic concepts are now on the table as global financiers are discussing helicopter money, rent control, and basic income. A few analysts believe the warning signals this year have bolstered safe haven assets like precious metals and cryptocurrencies. The start of a slowing German economy a decade after the 2008 crash is a sure sign to some that a financial crisis is looming. Some even believe the days of rotten bureaucrats, filthy fiat, and ‘too big too fail’ central planners are numbered and a new era of financial freedom is upon us.

What do you think about Berlin’s government agreeing on a five-year rent freeze? Do you think cryptocurrency can help? Let us know what you think about this subject in the comments section below.


Image credits: Shutterstock, Juergen Nowak, Wiki, Fair Use, Bundesbank, and Pixabay.


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‘No-Deal Brexit Huge Positive for UK Cryptocurrency’ – How Brexit Could Affect the Industry

Par Kevin Helms
'No-Deal Brexit Huge Positive for UK Cryptocurrency' - How Brexit Could Affect the Industry

British lawmakers have voted to postpone a crucial Brexit vote and forced Prime Minister Boris Johnson to ask the EU for an extension. News.Bitcoin.com talked to the CEO of a local crypto exchange to find out the effects a no-deal Brexit could have on the crypto industry.

Also read: SEC Wants Second Look at Bitwise Bitcoin ETF Proposal

Effects of No-Deal Brexit on Cryptocurrencies

On Saturday, the British parliament voted to put off a decision on Prime Minister Boris Johnson’s deal, forcing him to ask the EU for another Brexit delay. William Thomas, CEO of peer-to-peer exchange Cryptomate, explained to news.Bitcoin.com that many people are calling this deal “‘Brexit in name only’ as it still ties us in with many EU institutions, including future regulatory alignment,” adding that a no-deal Brexit is becoming even more of a possibility.

'No-Deal Brexit Huge Positive for UK Cryptocurrency' - How Brexit Could Affect the Industry
Boris Johnson trying to convince Parliament of his Brexit deal.

In the event of no-deal being reached by Oct. 31, Thomas said, “there will be substantial uncertainty within British and EU financial institutions.” However, in terms of whether it will create demand for bitcoin and cryptocurrency in general, “I am not so certain,” he admitted, elaborating:

I would expect to see some upward movement on BTC/GBP markets shortly after the deadline, but since the British pound is a small portion of global crypto volume it may not have a large overall effect on price as some have predicted.

“It will, however, have a positive impact within the British market, but the degree of which this will affect the global cryptocurrency markets is speculative at this time,” he opined.

Cryptomate allows British users to purchase a wide range of cryptocurrencies via instant bank transfer. The platform claims to have served 11,250 customers, filled 44,853 orders worth approximately 14.43 million British pounds (~$18.74 million).

How the UK Crypto Industry Could Be Affected

Thomas further explained to news.Bitcoin.com how the U.K. cryptocurrency industry will likely be affected in the event of a no-deal Brexit. “For larger traditional financial service industries that operate out of London, there are safeguards that will see financial services ‘passporting’ to the EU market will continue until future agreements are made,” he remarked.

'No-Deal Brexit Huge Positive for UK Cryptocurrency' - How Brexit Could Affect the Industry

However, there is nothing in place and very little guidance from the British Financial Conduct Authority (FCA) about how this should affect the crypto industry and related services. “There is a huge lack of clarity in the area,” he emphasized. Nonetheless, he shared:

It’s my personal belief that a no-deal Brexit would be a huge positive for the U.K. cryptocurrency industry in the long term, as it enables us to create our own regulatory systems without interference from the EU – who are much less friendly to the industry as a whole compared to the U.K.

Other Expectations

For European Union customers who use British-based exchange/wallet services and vise-versa, Thomas said that a no-deal Brexit “will have very little impact” on them. “British and EU customers will still be able to use SEPA bank payments which account for most exchange deposits within Europe, so trading volume should remain unchanged,” the CEO continued, noting:

Britain will continue regulatory alignment with the EU the day after we leave (until December 2020) so there’s no reason to think there will be any major disruption to banking or money services on November 1st.

'No-Deal Brexit Huge Positive for UK Cryptocurrency' - How Brexit Could Affect the Industry

As for Cryptomate, Thomas confirmed: “We will continue to accept European Union customers who have access to UK banking and this policy will not change unless we’re told differently by the FCA.” He added that most sellers on his platform have indicated that they “will be keeping their trading funds in USDT, as opposed to GBP or EUR,” noting:

We would expect to see demand for bitcoin and others increase during November, as a no-deal is likely to see the pound weaken further against the euro (and the euro vs the dollar) as people look for safe havens outside of fiat.

How do you think Brexit will affect the crypto industry? Let us know in the comments section below.


Images courtesy of Shutterstock and the Financial Times.


Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here.

The post ‘No-Deal Brexit Huge Positive for UK Cryptocurrency’ – How Brexit Could Affect the Industry appeared first on Bitcoin News.

How Cryptocurrencies Can Mitigate Some of Brexit’s Negative Effects

Par Lubomir Tassev
How Cryptocurrencies Can Mitigate Some Negative Effects of Brexit

Brexit, the European divorce saga that has been going on for years, has created a lot of headaches for politicians and ordinary people on both sides of the Channel. The process of Britain leaving the European Union is now heading towards another one of its deadlines while London and Brussels are trying to separate with an agreement. U.K. Prime Minister Boris Johnson vowed there will be an exit on October 31, deal or no deal. Brits and their Euro neighbors are bracing for another jolt in the continent’s economic and financial system. Cryptocurrencies, independent of centralized political decisions, can provide some stability and utility in these uncertain times in the fiat world.

Also read: Here’s How Europeans Can Deal With Negative Interest Rates

Britain’s Exit From United Europe

Britain’s relationship with Europe has never been straightforward or unambiguous. “Fog in Channel, Continent Cut Off” is a newspaper headline that was probably never printed but it very well describes the British attitude towards the mainland. And it’s not like Europeans haven’t given as good as they’ve gotten. United Kingdom’s entry into the European Economic Community was vetoed twice by France, in 1963 and 1967, with General De Gaulle citing the British hostility towards European construction, lack of interest in the common market as well as the economic differences that in his view made Britain incompatible with the rest of Europe.

How Cryptocurrencies Can Mitigate Some of Brexit's Negative Effects

However, at the time the majority of the British people and their political representatives wanted to join what has since become the European Union. They achieved that at the third attempt, years after De Gaulle’s resignation and death, with the U.K. becoming a member of the European Communities (EC) on Jan. 1, 1973 and confirming its full membership in 1975, in the nation’s first referendum. Back then, all major political parties, the mainstream media, and most importantly the majority of Britons supported the continuation of membership – over 67% voted to stay in. Besides, London managed to negotiate a list of opt-ins and opt-outs of key European policies including the Schengen Agreement, the Economic and Monetary Union, the Area of Freedom, Security and Justice, the Charter of Fundamental Rights, and even win the U.K. rebate.

Another poll on Britain’s EU membership decades later produced a quite different outcome, though. Over half of the electorate that took part in the referendum on June 23, 2016 (51.9%) voted in favor of leaving the European Union. Despite the non-binding nature of the referendum, the British government kept its promise to implement the result. David Cameron, leader of the Conservative Party and British prime minister at the time, who campaigned for remaining in the EU, resigned and was succeeded by his home secretary Theresa May in the summer of 2016. She initiated the EU withdrawal process on March 29, 2017, which was expected to complete within the next two years. Britain triggered Article 50 of the Treaty on European Union.

Deal or No Deal, That Is the Question

Britain’s second female prime minister stepped down in July after the withdrawal agreement her cabinet reached with the EU was rejected three times in parliament earlier this year. She was then replaced by her former Foreign Secretary Boris Johnson whose government continued the negotiations with Brussels. Johnson, a leading figure in the Vote Leave campaign, stated that the United Kingdom would exit the European Union on Oct. 31, 2019, regardless of whether a deal has been reached by that date or not.

How Cryptocurrencies Can Mitigate Some of Brexit's Negative Effects

With British lawmakers blocking a no-deal Brexit, however, Johnson proposed a general election on October 15 but the motion failed. He also asked the Queen to prorogue parliament from September 10 in an effort to prevent parliamentarians from stopping the exit without agreement by narrowing the window in which they could do so. In the meantime, a string of court cases have challenged the prime minister’s actions. In the absence of a written British constitution, this could create legal confusion.

Brexit has sown discord in British society and posed questions about the future of the European Union in general. Euro skeptics and pro-Europeanists span the political spectrum in Britain. While the major political forces, the Labour Party and the Conservative Party, each have their claims regarding the terms of the agreement with the EU, the Liberal Democrats, the Scottish National Party and other factions directly seek a reversal of Brexit through a second referendum on the matter.

Brexit’s Economic Impact

There is a widespread consensus among economists that Britain’s decision to leave the European Union is already negatively affecting its economy. The costs associated with the vote result and the withdrawal process amount to between 2 and 2.5% of the U.K.’s gross domestic product, according to various studies conducted last year. Analysts have calculated that inflation rose by 1.7% in 2017. Other estimates suggest that the country could have lost another 1% of its national income during the same period, while some long-term analyses put the future annual losses at up to 9% of GDP.

At the same time, proponents of Brexit point out that the United Kingdom is the second-largest net contributor to the EU budget, after Germany, and after Brexit it should register serious savings that could translate into tax cuts for its residents or increased government spending on social programs, for example. Official figures show that in 2014, the country’s contribution was £14.4 billion (around €16 billion at the current exchange rate), after the rebate. Britain gave the EU €11.5 billion in 2015, or over two times the contribution of France.

How Cryptocurrencies Can Mitigate Some of Brexit's Negative Effects

How Cryptocurrencies Can Help Brits and Europeans

One of the biggest impacts Britain’s divorce with the EU is likely to make has important socio-economic and even humanitarian aspects. Aside from economic issues such as low income and unemployment, opposition to immigration and expectations that the U.K. will regain full control over its borders after the withdrawal were among the most motivating factors for voters in the Leave camp. Many of them are competing for low-paid, unqualified jobs with Eastern European guest workers.

Brexit, especially if it happens without a comprehensive deal with Brussels, will certainly limit immigration flows from countries in the European Economic Area, as it will curtail free movement between the Continent and the United Kingdom. However, according to an analysis conducted by the Migration Policy Institute, Great Britain will continue to accept around 500,000 immigrants annually and official statistical data indicates that immigration from outside the European Union has already increased. Net immigration is projected to be at least 200,000 people each year, despite the U.K.’s departure from the EU.

Newcomers and those EU immigrants who choose to stay in the United Kingdom, especially if a deal with Europe allows them to retain their employment rights, will continue to send money to family members in their home countries. Despite Britain being a member of the EU, it never adopted the common European currency, the euro, instead keeping its national fiat, the British pound. As a result, money transfers within the fiat system involve currency exchange and additional bank charges. The separation from the European Union is only going to complicate things further for anybody sending money abroad.

How Cryptocurrencies Can Mitigate Some of Brexit's Negative Effects

Cryptocurrencies offer the easiest and cheapest way to send remittances home. You don’t even need a third party to transact with digital money. All that the sender and receiver must have is a crypto wallet, such as the Bitcoin.com Wallet which supports both bitcoin cash and bitcoin core.

In the past few years, Britain, which is one of the world’s financial capitals, has become a hotspot for the growing fintech industry. Leading European companies dealing with digital assets are now based in the U.K. And although in the aftermath of the Brexit referendum some have taken steps to establish a presence elsewhere in the EU, like Revolut which announced plans to open offices in 19 European countries, the crypto sector is likely to maintain and expand its presence in the country which has a very well developed financial infrastructure.

Revolut, which develops online banking solutions, provides its clients with instant access to five cryptocurrencies, including BCH, and offers exchange services in its mobile app. Users can transfer digital coins between each other. Other Britain-based companies of note are Wirex and Cashaa. Wirex is the most popular crypto debit card issuer in Europe. Its platform lets you spend cryptocurrencies anywhere Visa is accepted through instant conversion to fiat and to withdraw cash at ATMs around the world. And Cashaa provides you with a U.K. current and euro bank accounts supporting both traditional and digital money operations.

Thanks to startups like these, crypto banking is becoming a viable alternative to traditional finance. And in the future, the troubles of the fiat system are likely to have a positive effect on cryptocurrencies, whose strengths stem from their decentralized nature. If you live in Britain, Europe or anywhere else, and you still haven’t entered the crypto space, you can do so safely and securely by acquiring your first coins at buy.Bitcoin.com. You can also freely trade your crypto assets on our noncustodial, peer-to-peer marketplace local.Bitcoin.com, with thousands of other users or try our recently launched trading platform, exchange.Bitcoin.com.

Do you expect the number of cryptocurrency users in the U.K. to increase after Brexit? Share your thoughts on the subject in the comments section below.


Images courtesy of Shutterstock.


Do you need a reliable bitcoin mobile wallet to send, receive, and store your coins? Download one for free from us and then head to our Purchase Bitcoin page where you can quickly buy bitcoin with a credit card.

The post How Cryptocurrencies Can Mitigate Some of Brexit’s Negative Effects appeared first on Bitcoin News.

Distrust of the Bolivar Prompts Venezuelans to Seek Sound Money

Par Jamie Redman
Venezuelans Don't Trust Their Currency - They Want Something Else, Says Activist

There’s a small team of committed researchers and activists called the Ryver Bitcoin Cash group surveying Venezuelans, and giving them educational resources about the benefits of bitcoin cash. The Venezuelan country has been suffering from rapid inflation and many people distrust the sovereign bolivar. Unfortunately, most Venezuelans are not getting any exposure to digital currency use cases, and according to Ryver’s community manager, Sofia Corona, some people spreading the crypto message are doing it all wrong.

Also Read: Developer Reveals Token Reward Platform Fueled by Bitcoin Cash

88% of Venezuelan Respondents Don’t Trust Their Currency

This week news.Bitcoin.com spoke with Sofia Corona, the community manager of a Ryver Bitcoin Cash group. Sofia lives in Bogata, Colombia and was attracted to the project because “South American countries have a lot of problems.” The Venezuelan people have been dealing with extreme hyperinflation and central planners have destroyed the economy. Sofia joined the group because of the “bad decisions made by governments” and the team’s work is a form of independence for her.

Distrust of the Bolivar Prompts Venezuelans to Seek Sound Money
Sofia and her team members. “Listen to people’s needs, and try to do things with simple terms — [Venezuelans] do not want to know how big BCH blocks are, they want something else besides bad government decisions and bank interest,” Sofia said.
The group has been surveying 100 or more Venezuelan citizens on a weekly basis and asking them all sorts of questions. “I studied in Venezuela and emigrated from there,” Sofia told our newsdesk. “We started the survey because it is the best research strategy and you can share information shoulder to shoulder with the people and face to face.” So far, news.Bitcoin.com has seen two weeks’ worth of survey responses from 100-150 people living in Venezuela and dealing with hyperinflation.

Distrust of the Bolivar Prompts Venezuelans to Seek Sound Money
Survey week one – 100 people. (Right chart) 68% said they do not know of any cryptocurrencies, while 32% felt that they did. (Left chart) 88% of the Venezuelan respondents do not trust the bolivar as a method of savings and investment.

The first week’s survey was comprised of 100 Venezuelan citizens, surveyed by Sofia and the other team leaders Mr. Tank, Jena, and Jorge. The group visited malls and stores with a lot of foot traffic, specifically in Puerto la Cruz, Maturin, Guayana and Venezuela’s gold mining zones. Survey one shows the “participants do not currently rely on the national circulation currency (bolivar) as a method of savings and investment.”

“This situation is caused by high levels of exposure inflation, which causes rapid loss of consumer purchasing power — In the face of this reality Bitcoin Cash emerges as a necessary alternative, at a time when the country opens the doors to the legalization of cryptocurrencies, an option that would allow supporting the wages and economic assets of the citizens of this country,” the report details. Additionally, out of the first 100 people surveyed, 68% did not know of the existence of cryptocurrencies, while 32% felt they did. A staggering 88% of respondents replied that they do not trust the bolivar.

Distrust of the Bolivar Prompts Venezuelans to Seek Sound Money
Sofia and members of the Ryver Bitcoin Cash group surveying Venezuelan residents from Puerto la Cruz, Maturin, and Guayana.

Inflation and Gold Dealers

Sofia remarked that when people explained they did not trust the bolivar, they smiled when asked about it. “Last year the government printed new cash money — This year nobody can use it or accept it because of inflation and low salaries,” she explained. Sofia also spoke about some pictures she shared of Venezuelans waiting as long as six hours to withdraw 20,000 bolivares cash ($0.94). “The banks have limited the people with restricted amounts by day and they do not have enough printed money to deliver to people, so the lines are huge and people waste a lot of time there,” Sofia, said, adding:

They want this money to pay for bus tickets or sell to miners or the mafia — The mafia will pay you 100% value of cash money — Cash money is scarce.

In Venezuela, gold dealers from the mines run rampant in congested areas like shopping centers. Sofia said there are a lot of gold dealers and they are “everywhere and they have the control of the authorities and cash money.” After hearing about the gold dealers, news.Bitcoin.com asked the Ryver group community manager why her team thinks most Venezuelans are not getting exposure to digital currencies.

Distrust of the Bolivar Prompts Venezuelans to Seek Sound Money
Venezuelans in line for hours to use an ATM to withdraw 20,000 bolivares cash ($0.94) on Sep. 12, 2019.

The Wrong Strategy

“The Ryver team thinks that the South American strategies to spread cryptocurrency have been wrong so far,” Sofia insisted. “Some spreaders here act like supreme people or want to share this technology like it’s the first world. We have contacted people and specialists to do some live talk forums or activities with people and they have very high costs to share the message. So we took it upon ourselves to go to the streets and talk with the people.” Sofia further stated:

Many of these specialists want to copy strategies used in first world events in this region and have another heritage. We need to resolve simple problems, not have amazing events or restrict some people because they think different, we need it so people can feel the power in their hands. Do not make people feel like you are the owner of the brand or the message.

Survey Results:#Venezuela

Do you trust in your currency?

Yes= 12%
NO= 88%#BitcoinCashRyver #BCH pic.twitter.com/L7n9A2Ohp1

— Sofia Corona BCH (@VainilaMarket) September 2, 2019

Sofia continued by explaining that people should educate before giving Venezuelans something they don’t know how to use. “Listen to people’s needs, and try to do things with simple terms — They do not want to know how big BCH blocks are, they want something else besides bad government decisions and bank interest.”

“Share the economic freedom and take the lead by providing them with the knowledge to make their own decisions about the money,” the community manager added. “You can share rocket science with people but it no makes sense if you do not teach them how to turn the power on.”

Distrust of the Bolivar Prompts Venezuelans to Seek Sound Money
Survey week two – 150 people. 69% of respondents have had canceled purchases with points of sale, followed by bank transfers canceled representing 16% of respondents. Points of sale are the most efficient option for the population, but the researchers say it is common for platforms to be faulty “due to electrical problems, or inconveniences with the chip.”

Petro Propaganda

Sofia also told our newsdesk about the usage of the Venezuelan government’s Petro network as we’ve heard reports from Sunacrip (the Petro’s regulator) that the state-issued crypto is popular. She says that the positive Petro headlines and stories are only for “promotional” purposes. “Nobody uses the petro and only people close with government use it to skip out on U.S. sanctions — Sunacrip is really only for miners — they have installed crypto point-of-sale (POS) systems around some stores, but the POS only accepts bitcoin, litecoin, and BNB, so if you have petros, you need to exchange that,” Sofia asserted.

Distrust of the Bolivar Prompts Venezuelans to Seek Sound Money
The cryptocurrency known as the petro is “promotional” and not used by the common Venezuelan Sofia opined. “Only people close with government use it to skip out on U.S. sanctions,” she said.

Genuine Ideas and Helping People Take Control of Their Destiny

Sofia has talked to a lot of people and living in Bogota she’s seen refugees from Venezuela crossing the Simon Bolivar International Bridge daily for goods and services. The community manager said the team is also aware of other projects in Venezuela like nonprofit food drive @eatbch_VE. “They [@eatbch] are a genuine idea and supporters of BCH and we like that we can share their actions, the people need food to think, and to be educated to make their own decisions,” Sofia said.

Following a long discussion with Sofia, she explained what drives her to do what she does. “I believe that we can do something to help the people that have their families far away,” Sofia concluded. “I believe that we can try to build a new way to do things, I believe that the people can take the lead of their destiny, and I will try to help them.”

What do you think about what the Ryver Bitcoin Cash group is doing and Sofia’s efforts? Let us know what you think about this subject in the comments section below.


Image credits: Sofia Corona, the Ryver Bitcoin Cash group, Twitter, and Pixabay.


Venezuela.bitcoin.com is also making strides in Caracas, Maracaibo, and throughout the rest of the Latin American country by bolstering Bitcoin Cash merchant adoption in Venezuela.

The post Distrust of the Bolivar Prompts Venezuelans to Seek Sound Money appeared first on Bitcoin News.

You Can Buy a Dream Car With Bitcoin Cash at Autocoincars.com

Par Lubomir Tassev
You Can Buy a Dream Car With Bitcoin Cash at Autocoincars.com

Buying a new car is always a thrill. Purchasing a luxury vehicle, a roadster or a classic even more so. But such an enjoyable acquisition is usually accompanied by time consuming formalities. When all you want is to sit behind the wheel as soon as possible, these additional steps can be a nuisance for most people. Finding a dream car you can buy with cryptocurrency will certainly save you some time and effort, especially when cross-border payments are involved. You can now do that with BCH on Autocoincars.com, a platform that works with leading supercar dealers.

Also read: Why Portugal’s Tax-Free Crypto Trading Matters for Bitcoin

Purchasing a Supercar With BCH Is Easy

Browsing through car ads can be a pleasure and a curse. It takes time to find the right model and make that suits your taste and needs. Multiple websites nowadays provide car buyers with a plethora of offers. However, if you are not only a petrolhead but also a crypto enthusiast, there aren’t too many platforms with a good choice of vehicles you can purchase with digital coins.

You Can Buy a Dream Car With Bitcoin Cash at Autocoincars.com

Autocoincars.com is a website where customers can find a rich choice of high-end models, from comfortable and practical SUVs, to fancy sports cars and even collectible classics with detailed service history. And the best part is that all of them can be bought with bitcoin cash (BCH). The company works together with Bitcoin.com to expand the use of peer-to-peer electronic cash.

The precious automobiles are sold by established U.K. dealers and can be delivered to buyers in other countries as well. One of the platform’s main partners, Redlinespecialistcars.co.uk, is the largest independent supercar dealer in Britain. They cooperate to promote crypto and have already made numerous sales to clients opting to pay with digital assets. David White, Auto Coin Cars chief operating officer, told news.Bitcoin.com:

We transacted a Lamborghini from the U.K. to Germany last month, a $300k car. One younger crypto user bought his mother a $70,000 Range Rover for her birthday surprise – all in crypto. And last week we had an enquiry from Sydney, Australia for a £2 million Aston Martin. Exciting times.

The portal bets on bitcoin cash, offering clients the opportunity to purchase Ferraris, Lamborghinis, Aston Martins, and many more quality brands with BCH. All of its ads have the asking price displayed in a range of fiat currencies such as U.S. dollar, British pound, euro, and UAE dirham. But Autocoincars.com specifically targets cryptocurrency users who want to buy a car with bitcoin and their pricelist starts with a price quote in bitcoin cash. Customers can also pay with the platform’s own token, autocoin.

Crypto users who want to buy cars do not search Autotrader, Pistonheads, Motors, or any other traditional portal, the website explains. “Why would they? They would struggle to find a car dealer that accepts bitcoin on there. Instead, they search Google for ‘buy car with bitcoin’ or one of the many hundreds of search terms for which Autocoincars.com is ranked number 1 and page 1. They select a car, contact the dealer and agree [to] a deal in the usual way. They then pay for the car with bitcoin or other crypto through our regulated exchange and we pay the dealer prior to the car being delivered.”

Auto Coin Cars’ team further notes that there are over 3 million cryptocurrency wallets in the U.K. alone, which illustrates the growth potential for this market in the future. A study conducted this year by Technavio projects that the global luxury vehicle market will grow at a compound annual growth rate (CAGR) of more than 12%, or approximately 8,000 units within five years.

You Can Buy a Dream Car With Bitcoin Cash at Autocoincars.com

Accepting crypto payments opens up a whole new area of business that was until recently unavailable to car dealers. Millions of people around the world now own cryptocurrency and many would readily use their coins to purchase a new car thanks to the speed and security crypto transactions bring to the table.

At the same time, car dealers can now easily accept cryptocurrency and convert it immediately into fiat money if they want to do that, safely and securely. They can use the website’s Sell Now section to register with the platform, providing more information about themselves and uploading their ads to reach millions of crypto users globally.

North London-based Auto Coin Cars employs experienced crypto professionals and automotive specialists who have provided a simple answer to a supply and demand issue. Car buyers want to spend their crypto, while car dealers are not set up to accept it yet. Many of them realize the benefits of cryptocurrency payments once they try them.

Bitcoin cash, for instance, offers immediate and secure transactions at a very low cost, often less than a U.S. cent per transfer. And the funds are available almost as soon as the payment is made with no chargebacks or card fraud. Auto Coin Cars’ clients are typically high net worth individuals who can also take advantage of the privacy that comes with crypto payments and rely on an instant crypto-fiat exchange eliminating price fluctuations.

Some of Auto Coin Cars’ sports and performance vehicles are offered only to crypto users in closed auctions. These automobiles are the highest quality models supplied by the U.K.’s top car specialists. According to the platform, all of them are carefully selected, come with full service history and are in immaculate condition confirmed by independent reports. The first such auction will be held in late 2019. Potential buyers can register now and receive details about each month’s offerings, along with the terms and conditions of participation.

Auto Sales With Crypto Payments Are a Promising Market

The niche Auto Coin Cars operates within is likely to grow in the future. So is the popularity of crypto payments in general, especially now when many expect to see a new crisis in the traditional financial system as early as next year. At this point in time, the platform doesn’t have too many competitors. Another website selling supercars and classics for cryptocurrency is Bitcars.eu. Most of the listed vehicles are in Europe, but the platform can deliver them to a specific location, arranging transportation and customs clearance. Bitcars accepts bitcoin cash (BCH) and bitcoin core (BTC) through the payment processor Bitpay as well as XMR, ETH, LTC, DOGE and DCR via Globee.

Buysellcarwithbitcoin.com is a platform allowing users to publish ads for vehicles on sale or pick a listed car that can be bought with bitcoin. The website connects buyers and sellers who want to finalize their deal in cryptocurrency. Just like Auto Coin Cars, Buysellcarwithbitcoin allows you to select a location near you, choose a brand, set a minimum and maximum price, and search by keywords. The portal also publishes ads for auto accessories such as car audio systems, view cameras, rims, and many more. Dealers selling high-end vehicles for crypto also include Post Oak Motor Cars, a Bentley, Bugatti and Rolls-Royce dealer in Houston, and Hollywood-based Jem Motor Corp.

You Can Buy a Dream Car With Bitcoin Cash at Autocoincars.com

If you buy a second hand car whose interior needs refreshing and detailing, you can always use the services of Cockpitdekor.com where you can order trim parts for you dashboard, center console and doors. The best thing is that you can buy them with bitcoin cash. Cockpitdekor promotes the benefits of paying with cryptocurrency. The company is based in the U.K. and Slovakia, but its customization kits are sold globally. And in Venezuela, a country where cryptocurrencies have been gaining ground on the backdrop of an unstable and highly inflated national fiat, auto insurance plans can now be purchased with bitcoin cash, as news.Bitcoin.com recently reported.

Payments using decentralized digital currencies are likely to spread further in this and other industries. If you want to purchase bitcoin cash and other major cryptocurrencies you can do that at buy.Bitcoin.com. To freely trade your crypto assets, visit our noncustodial, peer-to-peer marketplace local.Bitcoin.com, which already has thousands of users from around the world. Also, check out our newly launched premier trading platform exchange.Bitcoin.com. Registered users can access it right now and over 10,000 have already signed up.

Would you buy your next car using cryptocurrency? Tell us what you think about crypto payments in the auto sales industry in the comments section below.


Images courtesy of Shutterstock.


Do you need a reliable bitcoin mobile wallet to send, receive, and store your coins? Download one for free from us and then head to our Purchase Bitcoin page where you can quickly buy bitcoin with a credit card.

The post You Can Buy a Dream Car With Bitcoin Cash at Autocoincars.com appeared first on Bitcoin News.

Venezuelans Fighting Economic Hardship Discover Crypto’s True Potential

Par Jamie Redman
Venezuelans Fighting Economic Hardships Discover Crypto's True Potential

For quite some time now, Venezuela has been suffering from a political crisis and a collapsing economy. Venezuelans dealing with rampant inflation continue to see their purchasing power decline. After witnessing one of the worst economic disasters in modern history, 4 million citizens have emigrated to seek a better form of money, shelter, and to gather food and medicine. Throughout the monetary struggle, there have been uplifting stories of Venezuelans discovering sound money and finding financial shelter in cryptocurrencies.

Also Read: Simple Ledger Protocol Announces Virtual Hackathon Devoted to SLP Token Ecosystem

Droves of People Seek Refuge From Venezuela’s Financial Collapse

Central planners worldwide continue to wreak havoc on the world’s economy and a few South American countries like Argentina and Venezuela are seeing their financial systems decline at a rapid rate. In Venezuela, the inflation rate is expected to reach 10,000,000% by the end of 2019 and monthly figures for July were roughly 265,000%. Since the region has been suffering from hyperinflation, millions of Venezuelans have left to seek refuge elsewhere but many have also stayed behind. Fernel Ricardo, a resident of Maracaibo, recently explained what is happening to his city in an interview during the first week of September.

Venezuelans Fighting Economic Hardship Discover Crypto's True Potential
Streets of Maracaibo.

Maracaibo is the second-largest city in Venezuela and Ricardo detailed that many people living there were dealing with rotten food and sometimes water won’t come out of the taps. Despite the fact that Maracaibo is an extensive metropolitan city comprising two municipalities, telecommunications infrastructure is often dead, leaving the whole city with a single state-radio station. When the communications infrastructure recently went down, Ricardo said: “Nobody told us what was going on, the station just played music.” The economic situation is the same in rural areas and other cities like Caracas, Maracay, Valencia, and San Cristobal.

The First Auto Insurance Plan Purchased With Bitcoin Cash

In the midst of it all, some Venezuelans are seeking a hedge using international currencies like the U.S. dollar, and alternative options like gold and cryptocurrencies. Digital currency supporters have been promoting the use of cryptocurrencies for a while now, so Venezuelans can benefit from censorship resistant money. Venezuela.bitcoin.com was designed for this very reason and our team has been onboarding merchants in the country to help them get started. Last March, Venezuela.bitcoin.com’s lead manager Matt Aaron told the British Broadcasting Corporation (BBC) that team members in Caracas are paid in bitcoin cash. “Transactions are instant and cost less than a cent to make,” Aaron explained at the time. This week, Aaron told news.Bitcoin.com that the first auto insurance plan was purchased with bitcoin cash and took place at Sefired. Aaron explained that the ground team who initiated the onboarding process operate a website called Aprendebitcoin.org and the crew has been educating local business owners in Venezuela about bitcoin cash regularly.

First auto insurance plan purchased with Bitcoin Cash at SefiSeguros!

Pay with BCH at 12 locations across Venezuela.

Thanks to the ground team who educated Sefi!https://t.co/DLRJP1AGl0#bchvenezuela #venezuela pic.twitter.com/852YgnpXhc

— 𝕄𝕒𝕥𝕥 𝔸𝕒𝕣𝕠𝕟 (@mattaaron) September 3, 2019

“The owner of the business has 12 locations selling auto insurance and it’s a AAA type insurance which is really important if you need a tow in a dangerous spot,” Aaron remarked. He added that thanks to the crew behind the educational website, one of the business owners learned about the attributes of crypto and decided to accept BCH and BTC for insurance payments. With ground crews in the country, such as Venezuela.bitcoin.com and Aprendebitcoin.org spreading the information about cryptocurrencies, citizens learn first-hand about benefits of BCH. A few examples include:

  • Credit card processing machines are very expensive and hard to find.
  • Credit card processing fees are high – around 3-6%.
  • The Venezuelan bolivar is a decimated, hyper-inflationary currency.
  • No need for a bank account.
  • Transactions are instant and cost less than a U.S. penny.
Venezuelans Fighting Economic Hardship Discover Crypto's True Potential
Venezuela.bitcoin.com is also making strides in Caracas, Maracaibo, and throughout the rest of the Latin American country in bolstering Bitcoin Cash merchant adoption in Venezuela.

Peer-to-Peer Powered Food Drive Eatbch Shines in Venezuela

Another organization that has been very busy over the last few months in Venezuela is the nonprofit food drive powered by bitcoin cash, Eatbch. Last February the group celebrated its one-year anniversary and this June the nonprofit organizers traveled to Washington D.C. to speak about their humanitarian work in Venezuela using bitcoin cash at the Center for Strategic and International Studies (CSIS) headquarters.

We're grateful for what you do for all of us pic.twitter.com/Uwz67OWSxf

— eatBCH Venezuela (@eatBCH_VE) August 30, 2019

During the presentation, the Eatbch team explained what they had been doing in Venezuela by feeding people meals using donated BCH and how BCH offers a peer-to-peer, borderless, low-fee solution. From here the participants at the CSIS were very intrigued by the efforts and the attention was entirely focused on Eatbch.

“Suddenly, our presentation became the main point of the meeting, and a big part of the interventions thereafter were directed or were about us,” explained the organizers’ blog post. “Some were a bit skeptical, questioning our safety and KYC/AML procedures, but most were fascinated and impressed, since they never heard about it and were pleased to know that there was a group already functioning in the ground.” Eatbch added:

This whole trip proved to us that we made the right choice with Bitcoin Cash, not only for the coin but also the awesome community around it.

Throughout the month of July and August, @Eatbch_VE Twitter followers can see that the nonprofit has been diligently feeding children and families in need of food. There are always pictures of people being fed through BCH donations and the group details how individuals are able to share a meal together thanks to everyone who generously donated.

It's time for more pictures!

We'd like to thank you for your support once again ❤️ pic.twitter.com/VGgPjDb68B

— eatBCH Venezuela (@eatBCH_VE) August 5, 2019

After seeing the pictures Eatbch shares regularly on Twitter, one observer who said he rarely retweets anything decided to share the photographs because he believes “feeding hungry kids in suffering Venezuela may be the best use-case yet for cryptocurrency and bitcoin.” “You should support them any way you can, and especially with preferred bitcoin cash — Just look at the happy kids — Thanks Eatbch.” Alongside helping a large number of malnourished Venezuelan families, Eatbch organizers are also feeding people in South Sudan.

Precious Metals and Finding Hope With a Single Universal Asset

With merchant acceptance and charitable operations like Eatbch, cryptocurrencies have been helping people in Venezuela a great deal and many people living abroad are providing on-ramps for Venezuelans to join the cryptoconomy. In a recent Reason podcast, the Human Rights Foundation’s Alex Gladstein and Reason’s Nick Gillespie discussed how cryptocurrencies are revolutionizing human rights and civil liberties in Venezuela. In addition to cryptocurrencies, buying precious metals like gold has become popular in South Venezuela near Brazil. Reports say that Venezuelans have to resort to three options to maintain purchasing power: “Buy gold, buy anything to resell it later, or buy dollars” and the second solution is where cryptocurrencies come into play.

La maldición de la fiebre del oro, acaba con nuestra tierra y se mete en la ciudad, causando muerte y arrestos masivos, como hoy en el cc macrocentro de Pto Ordaz pic.twitter.com/rBYlJnHN4U

— Alicia Estaba (@aliestaba) March 25, 2019

“The curse of the gold fever destroys our land and gets into the city, causing death and mass arrests, as today in the Macrocentro Mall at Pto Ordaz city,” the above tweet reads.

It’s a common sight to see Venezuelan dealers trying to sell gold throughout the busy sections of South Venezuela. However, there are issues with people being deceived with fool’s gold and merchants won’t accept “contaminated” USD. “If you go to Venezuela, many locals will not accept $1 or $5 bills. Nor will they accept folded, marked, or merely old bills,” local reports detail. Because of the underlying issues with dirty fiat and shady precious metal dealers, more Venezuelan people are being pushed toward using bitcoin as a universal asset instead.

Promoting #BitcoinCash in #Maracaibo, Venezuela at Sambil Maracaibo 💚#BCHhttps://t.co/vYOOPowVpy pic.twitter.com/oVqkS9w5Be

— CryptoBay.cloud (@CryptobayC) September 5, 2019

The educational resource and analysis web portal Ledger Journal also highlighted the use of digital currencies in this manner throughout Venezuela in the journal’s 2019 volume 4. Ledger Journal author Jackie Johnson wrote that “Bitcoin, as a single universal asset, is substituted for the ‘basket of goods’ normally used in the purchasing power parity, allowing the estimation of the relationship between the Venezuelan bolivar and the United States dollar.” Johnson added:

In countries where residents are under pressure from economic mismanagement, bitcoin trading becomes critical. Two factors drive bitcoin trading: one, there is pressure to purchase bitcoin using local currency before it loses even more value; and two, there is a need to redeem for the local currency either past purchases or purchases made outside the country by friends/family, enabling residents to cope with rising prices. This results in an increase in bitcoin trading in the local currency.

Crypto proponents understand the need for people to maintain purchasing power and this is why groups like Venezuela.bitcoin.com, Aprendebitcoin.org, Panda Group, and many others are pushing for adoption in the country. One example is how Panda Group recently partnered with a 22-store pharmacy franchise in Venezuela called Farmarket. The partnership allows people traveling from great distances to buy products and medicine using cryptocurrencies like BCH, DASH, DAI, and BTC. The Panda team based in Colombia also installed a machine on the border of Venezuela in Cucuta city. The device is meant to help Venezuelan refugees who cross the Simon Bolivar International Bridge every day. Venezuelans are mainly using cryptocurrencies to facilitate daily exchanges and to keep their purchasing power safe from the devalued bolivar. Right now there’s plenty of individuals and organizations out there willing to show the way.

What do you think about the situation in Venezuela and the individuals and groups pushing cryptocurrency adoption in the area? Let us know what you think about this subject in the comments section below.


Image credits: Shutterstock, Venezuela.bitcoin.com, Twitter, and Pixabay.


Did you know you can buy and sell BCH in a private manner using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The Local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a Bitcoin wallet to securely store your coins, you can download one from us here.

The post Venezuelans Fighting Economic Hardship Discover Crypto’s True Potential appeared first on Bitcoin News.

IRS Revoking Passports Shows How Government Erodes Everything We Hold Dear

Par Graham Smith
Government Parasitism - Why Crypto, Geo-Mobility and Sustenance Are Critical

If you have outstanding tax debt, the IRS may now want to take your passport. For U.S. crypto holders still waiting on promised IRS guidelines for filing — especially those overseas who may have missed these warning memos — the over 400,000 agency notifications issued since February last year are troubling. This kind of behavior from government is nothing new, however, but an oft-repeating pattern of parasitism which sucks value from producers of goods, services and surplus, and punishes progress.

Also Read: Elon Musk Supports Yang – But Does Andrew Yang Really Support Bitcoin?

True Tyranny Is Vague

It has been said that the most cruel and insufferable forms of tyranny are not those with the most rules, but those with the rules that are the most unclear. Even under extremely unfair and unjust law, if one knows what is expected, one can often survive. It’s the proverbial drunken hand of the volatile, abusive caregiver, who one day is reserved about some small matter, and the next flies into a violent rage about the same, which is truly the crushing burden to bear. In the case of the caregiver, old, unaddressed emotional wounds are likely to blame. In the case of the state, the leveraging of ambiguity to produce fear is intentional.

In May, IRS commissioner Chuck Rettig wrote in a statement: “We have been considering these issues and intend to publish guidance addressing these [crypto issues] and other issues soon.” To date, no such guidance on filing crypto taxes has been issued. What has been issued, however, are vague threats and warnings to crypto holders and traders.

IRS Revoking Passports Shows How Government Erodes Everything We Hold Dear
IRS commissioner Chuck Rettig has announced that letters will be sent to crypto holders who may have misreported or neglected to file, even in the absence of promised guidelines.

Since February, 2018, notifications have been going out to over 400,000 taxpayers who owe more than $51,000 (recently adjusted to $52,000) in overdue taxes. Since June this year, letters specifically targeting crypto holders have been issued. These letters also clarified inexplicably that, contrary to Rettig and the IRS’s previous statements, crypto is not simply treated as a property under U.S. policy. Every transaction except for buying crypto with fiat is a taxable event.

Expats, who may not have gotten these letters due to residing overseas, could potentially have their passports revoked. Those attempting to visit the U.S. may find themselves trapped in an airport, now without a recognized nationality, unable to return home to their families overseas should they set off alarm bells at immigration. Such mobility-stifling measures are a key means to contain and control financial assets, as the value creators moving them are then unable to relocate to more favorable economic climes.

IRS Revoking Passports Shows How Government Erodes Everything We Hold Dear

The Attack on Sustenance

But, where there’s blood, there will be ticks. Where there’s self-sufficiency, surplus and charity, the government will be there to suck it dry. Attacking the geo-mobility of wealth holders through passport revocation is one desperate way to do this. But that’s not where the punishment of productivity ends, of course.

Much like the free exchange of bitcoin in the financial realm, being able to grow one’s own food is a major threat to the forced dependency of government. States worldwide have a long, continuing history of destroying food for price regulation, and shutting down private businesses serving their communities.

Just last month, for example, the U.K.’s sole organic hemp farming co-op was forced to destroy its crop worth an estimated £480,000 (~$583,000) due to licensing issues. The group, Hempen, states it had been completely forthright and transparent with officials, who had seen no problems for years until recently, suddenly deciding to revoke their license. The rationale for the revocation is of course, defined in tyrannically vague terms.

According to a BBC report, Hempen co-founder Patrick Gillen, lamenting the waste of potential tax revenue and benefits to the country from his products, stated:

Instead of capitalising on the booming CBD industry, the Home Office’s bureaucracy is leading British farmers to destroy their own crops, and millions of pounds’ worth of CBD flowers are being left to rot in the fields.

IRS Revoking Passports Shows How Government Erodes Everything We Hold Dear
U.S. price control regulations have repeatedly forced Michigan cherry farmers to destroy massive portions of their produce.

Historically, the New Deal legislation of the Great Depression (which also included the abandonment of the gold standard and a mandatory surrender of privately held gold) made these types of practices a norm in the U.S., when regulations were introduced in a bid to protect prices. John Steinbeck describes the travesty in sobering fashion, in his classic novel, “The Grapes of Wrath”:

And men with hoses squirt kerosene on the oranges … A million people hungry, needing the fruit- and kerosene sprayed over the golden mountains … And children dying of pellagra must die because a profit cannot be taken from an orange.

Though fiction, the novel describes actual events that took place during that tragic era. These wasteful practices continue in the U.S. today. After being ordered to dump 30 million pounds of cherries to rot on the ground in 2009, for example, Michigan cherry farmer Rob Manigold echoed Steinbeck’s words:

The food pantry shelves are bare, people going hungry, and here we are dumping millions of pounds of cherries on the ground.

Arguments for such massive waste based on “the greater good” or “necessary regulation” don’t hold up to economic principle or moral scrutiny, as stifling production where demand is present is irrational, unless justified by one class of individuals possessing a supposed right to determine what others may or may not do with their own bodies or property, which is slavery.

IRS Revoking Passports Shows How Government Erodes Everything We Hold Dear

Why Crypto Is the Final Target

So what in the hell do mountains of rotting fruit and revoked passports have to do with crypto? Quite a lot, it transpires. A money that cannot be centrally regulated provides the same essential power that a flourishing, productive private farm does, but on a whole new level. Self-sufficiency. A passport allows free movement, which is another necessity for self-sufficiency. Once the state is not needed for money, however, that’s the very end. At that point, centralized governance is not needed at all. The advent of bitcoin made the financial transcendence of central banks, geopolitical restrictions, and third party oversight possible.

With global devaluation of fiat currencies ever growing, and reckless low and negative interest rate policies being instituted to create more credit bubbles worldwide, the state is beginning to panic. That’s a good sign. The way to sense a debate has been won is often to simply observe one’s opponent beginning to react with fear or irrational outbursts. In the state’s case the reaction is actual violence, however, and that’s why no matter how hard anyone might try, it cannot be said that there is any freedom to be had without a very real risk. What price one is willing to pay for that freedom is entirely up to the individual.

What are your thoughts on government parasitism? Let us know in the comments section below.

OP-ed disclaimer: This is an Op-ed article. The opinions expressed in this article are the author’s own. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the Op-ed article. Readers should do their own due diligence before taking any actions related to the content. 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 information in this Op-ed article.


Images courtesy of Shutterstock.


Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The Local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here.

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Market Outlook: Trade Wars and Filthy Fiat Battles Fuel Crypto Prices

Par Jamie Redman

A slew of digital currencies have gathered decent gains over the last 48 hours and the entire market capitalization now stands at around $308 billion. Moreover, cryptocurrency trade volumes have kicked up a notch, capturing $66 billion in swaps over the last day. Overall, speculators think the recent spike in crypto prices is due to the overwhelming economic uncertainty worldwide.

Also Read: Tax Expert: IRS Letters Confirm That Trading Cryptos Is a Taxable Event

Despite Traditional Market Downturn, Crypto Markets See Steady Gains

Cryptocurrency prices have jumped northbound once again as a large number of digital assets have seen gains between 2-15% over the last 24 hours. At the time of publication, the price of bitcoin core (BTC) is hovering just below the $12K mark at $11,757 per coin. BTC is up over 8% in 24 hours and has a market valuation of around $209 billion. The cryptocurrency is up 23% over the last seven days and there’s $23 billion in global BTC trade volume on August 5. Right behind BTC is ETH which is hovering around $231 per coin and is up over 4.9% today.

Top 15 digital assets by market cap on Monday, August 5, 2019. If you are looking for a place to buy cryptocurrencies like bitcoin core (BTC), bitcoin cash (BCH), litecoin (LTC), ethereum (ETH), and others get access to these digital assets here.

Ripple (XRP) is up a hair over 2% this Monday and is trading for $0.32 per XRP. In fourth position and the biggest gainer over the last 24 hours is litecoin (LTC) as it jumped 15% after the cryptocurrency’s reward halving took place. LTC dipped a bit afterward but is still up 6% and each LTC is swapping for $99. Lastly, bitcoin cash (BCH) markets are up over 4.5% on Monday as each BCH is trading for $347. BCH is up more than 12.8% for the week and there’s $1.75 billion in global BCH trade volume today.

A Flight-to-Safety Asset

There’s been a whole lot of speculation and analysis with people trying to figure out why digital assets are pumping once again. Many people believe the rise is due to investors looking for a safe haven asset as economic turmoil strikes fear into global leaders. Charles Hayter, the founder of digital currency data website Cryptocompare, believes BTC is being used as a “flight-to-safety.” The crypto price spike started after global stock markets started tumbling when U.S. President Donald Trump told the media he would impose a 10% tariff on Chinese imports.

Some speculators believe capital flight out of China might be priming the current cryptocurrency bull run’s flames.

“Bitcoin has many use cases and one of the most important is as a form of digital gold,” Hayter explained on Monday. “We have seen bitcoin jump before on macro uncertainty as it becomes a conduit and flight-to-safety asset.” Etoro’s Simon Peters thinks tensions between the U.S. and China is a plausible theory as well. “Given that Chinese investors make up a large proportion of crypto investors, there’s a strong possibility some are backing bitcoin’s chances against the yuan,” Peters told investors on August 5.

A Looming No-Deal Brexit

It’s very possible that the world could witness a no-deal Brexit in the near future. A while back when people talked about Brexit it meant that the U.K. would leave the European Union (EU) but there were certain agreements tied to the action. This year, a no-deal Brexit means the two countries will divorce and there will be no deals or agreements made when the two go separate ways. Nicholas Gregory, the CEO of Commerceblock, which builds distributed financial infrastructure, believes a no-deal Brexit could push BTC prices past the $20K all-time high.

Commerceblock CEO Nicholas Gregory told news.Bitcoin.com that a no-deal Brexit could spark a BTC rally.

“Bitcoin has rediscovered its mojo this year with multiple mini-surges but a no-deal Brexit could see a massive and unprecedented breakout. Not only will a no-deal departure from the EU create turmoil and volatility across two major fiat currencies, but it will also trigger an identity crisis for the global system as the contingency and vulnerability of major global fiat currencies is laid bare,” Gregory wrote to news.Bitcoin.com on Monday. The Commerceblock founder added:

Come 2020, we expect an increasingly populist and politically unstable world to cement the safe-haven status of bitcoin and cryptocurrencies more generally. And if central banks revert to ramping up the money printing all over again, the case for cryptocurrencies like bitcoin whose supply is capped will be further reinforced. Each time a central bank increases the money supply, it’s another nail in the coffin of fiat.

‘Rally Could Have Real Legs’ Says Galaxy Digital Executive Mike Novogratz

After cryptocurrency markets spiked this weekend and into Monday, Galaxy Digital CEO Mike Novogratz tweeted that the 2019 BTC rally could be real. The comment follows Novogratz’s recent interview when he told the public that the digital currency could surpass all-time highs in 2019. He attributed the rise in prices on July 25 to the recent Facebook Libra announcement and mentioned Telegram’s coin launch. On Monday, however, Novogratz blamed the global economic uncertainty and capital flight. “With the yuan over 7.0, an FX war, instability in HKG and the beginnings of capital flight, the BTC rally could have real legs,” Novogratz tweeted.

Trade and Currency Wars

Financial analyst Naeem Aslam detailed on Monday that he also thinks economic uncertainty and Donald Trump’s trade wars are helping bolster the price of BTC. “There is no doubt in mind that the Bitcoin price is going to break this year’s high,” Aslam wrote. The FX, equities, and crypto analyst said that crypto bulls can thank Trump for the spike because “it is completely driven by geopolitical tensions.”

Donald Trump’s trade war with China has fueled speculation that people are moving money into digital currencies.

“Donald Trump introduced new tariffs on China last week and I talked about the retaliation action by Beijing. China has unleashed its nuclear weapon on the U.S. This retaliation has come in the form of China introducing the most fearful factor for the markets, a currency war,” Aslam opined. “The Chinese Yuan crossed the level of $7 for the first time and this is only because China clearly wants to devalue its currency.” Aslam further wrote:

We all know what this means for Bitcoin; it is going to explode and continue to move higher.

Bitcoin Cash and Litecoin Markets Spike

BCH has continued to follow the upward trend as the currency has broken a decent path of upward resistance and market analyst John Isige thinks it’s possible BCH could spike to $400 per BCH in the near future. “Glancing ahead, bitcoin cash (BCH) is approaching the rising wedge pattern breakout — Trading above the pattern resistance could boost Bitcoin Cash towards $400,” Isige suggested on Monday. “Moreover, Bitcoin Cash is strongly supported initially by the 50 Simple Moving Average (SMA) 1-hour chart currently at $333.62.”

John Isige notes a rising wedge pattern that could launch BCH towards $400.

Litecoin prices jumped during Monday’s early morning trading sessions due to the cryptocurrency’s reward halving. Before LTC’s block height at 1,680,000, miners got a reward of 25 LTC but now only get 12.5 LTC per block. The halving event gave LTC prices a boost and saw the digital asset rise higher than most coins on Monday. The Litecoin network cuts its mining rewards in half every 840,000 blocks. Since the LTC halving, the digital asset is hovering around the $90-110 range.

Litecoin’s price got a boost from the cryptocurrency’s recent halving at block height at 1,680,000.

Recent Federal Reserve Rate Cut Adds Fuel to the Crypto and Precious Metal Market Rallies

Overall, there’s no shortage of digital currency market speculators and pundits giving their two cents on the current crypto rally. A great majority of investors and enthusiasts believe cryptocurrencies are rising because of the world’s economic woes. Alongside cryptocurrencies, the price of gold has reached a six-year high and speculators believe the spike is due to the exact same reasons.

Gold spot prices per ounce on Monday, August 5, 2019 touch an all-time six-year high according to Goldprice.org.

Additionally, last week, digital currency markets witnessed the first Federal Reserve interest rate cut in ten years. The Fed told the public last Wednesday that the bank would cut rates by a quarter point. Many economists believe the rate cut is troubling for the U.S. economy and even two regional Federal Reserve presidents publicly spoke out against the interest rate cut. The financial columnist from Barron’s, Ben Walsh, recently explained the Fed’s rate cut could reinforce bitcoin gains.

“The Federal Reserve has added fuel to the rally as it has shifted from raising interest rates in 2018 to keeping borrowing costs steady to its current strong hints that a reduction is on the way,” the author penned last week. “Easier monetary policy could bring more gains for bitcoin.”

Where do you see the cryptocurrency markets heading from here? Let us know what you think about this subject in the comments section below.

Disclaimer: Price articles and markets updates are intended for informational purposes only and should not to be considered as trading advice. Neither Bitcoin.com nor the author is responsible for any losses or gains, as the ultimate decision to conduct a trade is made by the reader. Always remember that only those in possession of the private keys are in control of the “money.” Cryptocurrency and gold prices referenced in this article were recorded at 11:45 a.m. EST on Monday, August 5, 2019.


Images via Shutterstock, Trading View, Bitcoin.com Markets, Getty, Goldprice.org, Wiki Commons, and Pixabay.


Want to create your own secure cold storage paper wallet? Check our tools section. You can also enjoy the easiest way to buy Bitcoin online with us. Download your free Bitcoin wallet and head to our Purchase Bitcoin page where you can buy BCH and BTC securely.

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PR: CoinDeal Celebrates Premier League Sponsorship Renewal With Token Launch

Par Bitcoin.com PR
PR: CoinDeal Celebrates Premier League Sponsorship Renewal With Token Launch

This is a paid press release, which contains forward looking statements, and should be treated as advertising or promotional material. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the press release.

Coindeal’s popularity and number of new users are growing very fast. The exchange will soon be available in several states in the USA and has prepared their own CoinDeal token – CDL. This giveaway is addressed to its 300.000 current and 150.000 new users – internal exchange tokens are waiting to get them completely for free!

CDL Token

..is an amazing opportunity to start trading for free on one of the premier global exchanges with various benefits. The token will also allow for a higher liquidity within CoinDeal and for more pairings with cryptocurrencies and fiats. Only the first 450.000 users will receive CDL tokens. This giveaway is unique, since most token projects give only 5-7% of their token to the users via bounty programs and other mechanisms, however, CoinDeal has decided to give their users 90 % of all generated tokens. Something of this magnitude has been unprecedented and may very well create a totally new token distribution model.

The CDL token will be the backbone of CoinDeal and that’s why we want to give it to our users for free – these tokens are meant to be used. We didn’t want to create something that has no value and try to make money off of it, like you’ve seen with many ICOs. – Alex Strzesniewski – Business Development Director

If you already have a fully verified account on CoinDeal you just need to login and click the pop-up with information regarding CDL tokens.

Tokens will automatically appear in your wallet. CoinDeal claims that after the giveaway is completed and all tokens have been distributed to users, it will launch a variety of pairings with crypto and fiats. The total supply is 50,000,000 and the token itself has been created on the EOS blockchain and will boast much faster transaction times as well as drastically smaller network fees (as compared to most ERC20 tokens).

How to get free CDL tokens?

1. Register on CoinDeal
2. Go through the verification process (ID and Proof of Address)
3. Click “Get Free Tokens”
4. Check Your Wallet

All interested in the CDL token should act fast, as the number of tokens is capped and the necessary verification level to receive tokens via CoinDeal.com may take up to a few days.

By getting CDL you will receive
● Decreased trading fees
● Customer Support/ Fast Pass priority
● Multi tier token staking system can decrease fees to 0.000%
● Advanced trading features
● Social trading platform access (planned for 2020)

Staking over 150.000 CDL will give you a 0.0000% maker fee and a 0.0250% taker fee. After completed distribution CoinDeal will start buying back CDL tokens on a monthly basis.

You can gain more from this giveaway by sending your friends a referral link that you can copy from your account. You will receive 20% of their trading fees and they will automatically get free tokens after creating a Coindeal account.

Watch the video:
https://www.youtube.com/embed/vF7Rq-tk3lI

Taking care of Premier League friendship – 2nd season of the sponsorship of the Wolverhampton Wanderers F.C.

The last season 2018/2019 of cooperation was very successful for Wolves and Coindeal and they discovered many common features, so it’s obvious that they wanted to still work together. The CoinDeal team admits it was one of the biggest and most important marketing adventures in the development of the company.

The numbers speak for themselves. Thanks to the cooperation with Wolves, the media value in the period from the June 2018 to April 2019 amounted to over £50,000,000. Coindeal logo was visible on TV-screens worldwide more than 350,000,000 times and the official CoinDeal advertisement with Wolves players gained also over 1,000,000 of views on YouTube.

There’s nothing better than game day in Wolverhampton – we try to be there as often as we can, regardless, we always make sure to cheer on and follow all games even in the office. – Kajetan Mackowiak – one of the Founders

However, the crypto exchange shows that sponsoring is not just a way of advertising for the crypto business, but something more. Apart from the logo visible on the match shirts and the stadium, Coindeal team made friends with the Wolves team and cheered them on each match even for live. Their relation was also seen on the backstage video of the recording of the joint advertising. As they said at the end of cooperation Wolves were something more than partners – they were like family.

https://www.youtube.com/embed/6FvGS6FSGQo

USA market…

…is the next step in the development of the one of the largest crypto-fiat exchanges in Europe. The company is ready to enter the American market with 14 crypto to crypto markets for a start and the users from the States will have an opportunity to profit from the newest CoinDeal promotion with their free CDL Tokens.
Coindeal was founded over a year ago by three Poles. Rapid growth on the European and Asian markets was just the beginning. At the request of the users, CoinDeal decided to obtain all the necessary licenses and permits to open trading to American citizens.

The US is the land of opportunity, and this may very well be the defining moment in our company’s history. – Alex Strzesniewski – Business Development Director

Follow CoinDeal on Facebook and other social media channels:
https://www.facebook.com/CoinDealOfficial/
https://t.me/coindeal_comt
https://twitter.com/CoinDeal_
https://www.linkedin.com/company/coin…
https://medium.com/@CoinDeal

This is a paid 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.

The post PR: CoinDeal Celebrates Premier League Sponsorship Renewal With Token Launch appeared first on Bitcoin News.

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