An overview of the latest cryptocurrency news from the leading crypto news sites.
Cryptocurrency exchanges are seemingly convinced BCHABC will remain the predominant chain of Bitcoin Cash following the network split. Although things look to be in favor of this implementation, both Bittrex and Coinex are taking a very controversial stance. They let users trade BCHABC tokens as “BCH”, even though nothing has been permanently decided in this regard as of yet.
The Bitcoin Cash hard fork and subsequent network split have caused quite a stir. Two viable networks have emerged, as Bitcoin Unlimited (Status Quo) has fallen off the radar altogether due to a lack of miner and node support. As such, the focus now lies on both BCHABC and BCHSV. Both chains are still neck-in-neck for market dominance, and it would appear SV has been catching up to BCHABC over the past day.
With nothing decided in an official capacity, most exchanges maintain their wait-and-see approach first and foremost. The top platforms have stopped using the “BCH” ticker altogether, as that currency no longer exists under the previous network rules. It is now up to BCHABC and BCHSV to duke it out for the top position and become the new Bitcoin Cash. Another option is how exchanges will continue to trade both tokens under their current tickers, which would only make things a lot more confusing.
For some trading platforms, the decision has already been made. When looking at both Bittrex and Coinex, an interesting yet worrisome trend has emerged. Both exchanges still allow for BCH trading, even though that ticker should not be used at this time. Nor is this an indication users can still convert their old BCH tokens to the new versions through Bittrex or Coinex either. Instead, these exchanges trade BCHABC as “BCH”.
Update: Bitcoin Cash (BCH) deposits and withdrawals are now open. Confirmations have been temporarily increased to 20 for deposits. Bitcoin SV (BSV) balances are in accounts. https://t.co/EIcqG4pu6N
— Bittrex (@BittrexExchange) November 17, 2018
While one can justify that decision somewhat, the current network split situation makes it look like an unfavorable and somewhat dubious decision. If BCHABC were to lose its lead in terms of blocks generated and accumulated PoW, these exchanges would be in a fair bit of trouble. In that case, the “minority chain” would become Bitcoin Cash, whereas traders and investors would expect the ticker to belong to BCHSV. It is a premature decision which can backfire relatively easily.
There is also the question as to why both companies decided to take this particular course of action at such an early stage. More specifically, the network split has been completed less than 48 hours ago. A lot of things regarding the future of either blockchain remain unclear at this time, thus it would seem pertinent to effectively maintain the current separate price tickers first and foremost. Until one dominant chain emerges, that situation can be revised.
On Reddit, an interesting heated debate is breaking out for this decision by Bittrex and Coinex. Some people even go as far as claiming how there is “zero market demand for ABC.” A bit of an odd sentiment, primarily because it remains unclear if there will be a market demand for BCHSV. There are also a lot of concerns over how ABC mining pools manipulate the hashpower and “steal” it form miners without their knowledge. These are all very bold and unproven claims, for the time being. Even so, exchanges jumping the gun may find themselves in a pickle if their gamble doesn’t pay off.
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Forks can be beneficial to the cryptocurrency space. This is specifically true when they add desired attributes to underlying cryptocurrencies. In many instances, forks do not bring any benefit but are the result of infighting.
Cryptocurrencies dealing with infighting and hash wars should be avoided while coins reaching milestones with tiny market caps should be accumulated. Following this logic, both Bitcoin Cash forks should be sold, while the project YOYO deserves major recognition. YOYO is a HODL, while BCHSV and BCHABC are both immediate FODLs.
“BTC is the new stable coin,” was the resounding statement the prior month. Right as the entire cryptocurrency market expected stability from the market leader it lost more than 10 percent in under 48 hours. Many speculated about the reasoning but it seems fairly clear to those who did a little investigating.
Let’s start with the lovely ticker symbols: BCHSV and BCHABC.
How can anyone take someone seriously when they claim “BCHABC is the original BTC.” The sentence is almost laughable. When the parties that tore BTC apart were working in tandem to try to be the ‘original BTC’ they had a chance. Albeit a small chance, one that existed. Now having forked their fork, neither Bitcoin maximalist nor novice cryptocurrency trader will believe BCHSV or BCHABC is the “original bitcoin.”
Could either be a possible winner regarding a short-term trade? Sure, however, regarding long-term utility, neither solves a problem BTC 00 has not already resolved, and neither have communities like the original BTC.
With discussions raging regarding a hash war between the two new BCH chains, it seems like neither is the ‘right’ choice in the short term.
To capitalize on the market rebound that is likely to occur from this week’s overcorrection small caps on the largest exchanges should be targeted.
A cryptocurrency that clearly meets most investors guidelines with a tiny market cap on major exchanges is YOYO.
YOYO, is a clever acronym for “You Own Your Own Words.” YOYOW trades under the ticker symbol YOYO 00. The concept behind YOYO is very simple; you own what you create. The content a user creates deserves to be rewarded.
What makes YOYO a unique acquisition target, especially during this week’s correction are multiple things:
There are almost 10 reasons that make YOYO a short-term acquisition target as they roll out their content rewards at the beginning of next quarter. Confirmation speeds of just seconds mean your cryptocurrency can be sent anywhere and received before a sentence can be completed. Being able to process 3,000 transactions per second means as a payment for content provider they will be well ahead of the curve.
YOYO intends to be the first blockchain with authorization login. This feature will separate YOYO from the majority of other similar content platforms. Those who hold tokens of any cryptocurrency appreciate being able to help govern the platform, this attribute will be implemented for YOYO imminently.
The market cap of YOYO being under $7.5 million makes it a ripe target for rapid growth as any substantial news or meeting of deadlines will push the market cap exponentially higher.
Despite the bear market, YOYO continued to integrate Dapps while building out their reward and incentive platforms. This quarter has the implementation of many of YOYO’s coin features. This includes their Authorization Feature, Lockup Feature, Dividend, and Governance.
It does not appear that either BCH fork added any value to the cryptocurrency space but instead created a 48-hour correction. Due to their lack of adding real value or utility both BCH forks should be avoided.
YOYO is a project that deserves the attention being diverted to unnecessary forks and market corrections.
Look for YOYO to outperform during any rebound the next few days and through the possible upcoming bull run.
[Disclaimer: This views expressed in this article do not reflect the views of Bitcoinist and should not be taken as financial advice. Also, this is the first time the word FODL has been used (opposite of HODL)**]
The post One Cryptocurrency to HODL, Two to FODL (YOYO, BCHABC, BCHSV) appeared first on Bitcoinist.com....Read more
On Saturday, Nov. 17, the Bitcoin Cash (BCH) community entered the third day of its hash war, with many supporters growing confident that a resolution may be in sight. Close to 300 blocks have been mined on the Bitcoin ABC side of the chain using the new consensus ruleset, which has also given the network the most accumulated proof of work. In addition to the hash battles of the last few days, the first major cryptocurrency exchange, Bittrex, has re-opened bitcoin cash deposits and given the ABC chain the BCH ticker.
It’s been a long few days for Bitcoin Cash supporters, but the war seems to be nearing an end in the eyes of many. After the split, the ABC side of the chain remained vigilant throughout the entire process, mining more blocks but more importantly capturing more proof of work. The SV side is still moving along, but is behind the ABC chain and SV has also performed less work.
On Nov. 17, the BCH community got ready to watch the Stress Test team send large batches of transactions, but according to a few Telegram chat rooms, the Stress Test, or “Satoshi’s Shotgun,” has not been firing so well. Observers have stated that Satoshi’s Shotgun was no longer able to reach the ABC network. People assumed the stress test developers were not prepared to adapt to two different networks. During the start of the test, Bitcoin Unlimited’s Peter Rizun commented on the Stress Test matter.
“The difference in network effect stark: BSV has few users, no OSX or Windows clients, no block explorer, perhaps one mobile wallet, and a shotgun that doesn’t shoot so straight,” Rizun explained to his Twitter followers.
Many bitcoin cash users have been discussing the ABC network’s safety and reliability, with a number of them opining that exchanges should re-open markets. For instance, according to one of the most popular posts today on the Reddit forum r/btc, the release of Bitcoin ABC version 0.18.4 with a checkpoint and re-org protection cements the split.
This means that miners will continue securing the ABC side and Nchain, Coingeek, and the rest of the SV miners left on that chain. “This means that exchanges can resume deposits, and we should urge them to, so everything can get back to normal,” the Reddit post explains. One Reddit user explained that he is confident the ABC chain is now Bitcoin Cash (BCH) due to the most accumulated proof of work (PoW).
“ABC has won decisively. I wish the exchanges would realize this,” explains the Redditor’s comment. “Before the fork, everyone said that the most proof of work chain would continue as BCH, and ABC is the chain with the most proof of work.” Moreover, the analytical website Coin Dance cash confirms that the ABC chain has the most PoW and leads by 53.4%.
Lastly, one of the first major exchanges has chosen to list the ABC side of the chain as Bitcoin Cash (BCH). The Seattle based trading platform Bittrex has decided to list the ABC side of the chain as “BCH” and the SV side as “BSV.” According to Bittrex the exchange is opening up deposits, withdrawals, and trading for BCH but with longer confirmation (20) times for deposits.
“The “BCH” ticker will remain the Bitcoin ABC chain before the hard fork block — Bittrex will observe the Bitcoin Cash network for a period of 24 to 48 hours to determine if a chain split has occurred and the outcome,” Bittrex Zendesk support explained on Nov. 17.
Update: Bitcoin Cash (BCH) deposits and withdrawals are now open. Confirmations have been temporarily increased to 20 for deposits. Bitcoin SV (BSV) balances are in accounts. https://t.co/EIcqG4pu6N
— Bittrex (@BittrexExchange) November 17, 2018
Many BCH supporters seem to be confident that the war is close to ending and believe exchanges will continue to list ABC as Bitcoin Cash (BCH) and SV as BSV. However, some SV supporters are still in disbelief over the outcome and think the hash war will favor their side in “weeks” or maybe even “months.” ABC proponents don’t seem to be fazed by the continued threats of re-orgs and 51% attacks, and have sought to shun instigators of war. Even today’s stress test has been regarded as a fluke, and nothing more than an SV marketing ploy, according to members of the r/btc forum.
What did you think of the past three days? Do you think the hash war is over? Let us know in the comments section below.
Images via Shutterstock, Pixabay, Coin Dance cash, Twitter, and the Bittrex logo.
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One of the main points of concern following the recent Bitcoin Cash hard fork and subsequent network split is the lack of replay protection. In theory, the SV team would be able to reorganize the ABC chain if they ever intended to do something nefarious. That is no longer a possibility, as the ABC developers introduced a checkpointing system. While that is a solid decision, it has also received a lot of flack over the past few days.
When two “versions” of the same blockchain exist, an interesting situation is created. Miners and developers on each chain can exert full control over a competing chain. This is very unlikely to ever happen, but one can never dismiss such a possibility in the slightest. This uneasy situation can be quite problematic for wallet providers and exchanges, as they risk falling victim to “fraud” in the cryptocurrency world.
To address this problem, two possible solutions exist. Either ABC or SV becomes the longest chain, or a code-based solution is introduced. Considering how both chains are still quite similar in terms of block height and hashing power, it seems unlikely either one of them will become the “outspoken” dominant chain. As long as there is no insurmountable block gap between the two, the situation remains subject to change at all times.
As a current measure, the Bitcoin ABC developers decided to begin introducing a checkpointing system. To put that into perspective, all nodes running the new 0.18.4 client will confirm the network cannot be rolled back in a major fashion. This is an important step toward ensuring both chains can survive as long as no clear winner has emerged. This checkpointing system is a bit limited in nature, for the time being.
With ABC releasing 0.18.4, the exchanges can feel safe to resume deposits ane withdrawals as long as they have split their wallets. There is no longer a risk for big re-orgs och someone rolling back the chain to a pre-fork state.
— Emil Oldenburg (@emilolden) November 17, 2018
More specifically, the system ensures no major reorganizations of blocks can occur. For short-term reorganizations however, it does not provide much support. This raises a lot of questions as to whether or not such checkpoints need to be introduced every X amount of blocks found. While that is an intriguing idea, it is this approach which also appears to infuriate a fair few supporters.
At the same time, this checkpointing system is relatively centralized in nature. This is an unappealing trait for a network that is supposed to be as decentralized as possible. Some users even go as far as claiming these checkpoints can undermine the consensus rules of the network, which would be in stark contrast to how Satoshi Nakamoto wanted Bitcoin to turn out.
As is always the case in the cryptocurrency world, protecting a cryptocurrency network from major harm will need to be done in many different ways. While this particular approach to potential block reorganization is problematic first and foremost, this solution seems to check a lot of boxes in terms of security. The centralized nature of such an implementation seems to indicate it was a rushed decision though, and how it will remain a topic of debate for some time to come.
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The New York Digital Investment Group (NYDIG) has obtained regulatory approval for running cryptocurrency custody and trading operations in New York.
A BitLicense is a mandatory business license required by any firm which intends to deal in virtual currencies in the state of New York. The permit is issued by the New York State Department of Financial Services (NYSDFS).
The license needs to be obtained by any firm which is based in or is providing services to the residents of the state.
NYDIG Execution, a subsidiary of the New York Digital Investment Group LLC (NYDIG), became the 14th firm to obtain BitLicense from the regulator. The regulator has approved a virtual currency and a money transmission license.
Also, NYDIG Trust Company LLC, a subsidiary of NYDIG LLC, has been authorized to operate as a limited purpose trust company.
The development was announced by DFS earlier this week on its website.
The regulatory permission would enable NYDIG Execution to offer custody and trading services to its customers for a limited number of digital currencies, including Bitcoin, Bitcoin Cash, Ether, XRP and Litecoin.
DFS Superintendent Maria T. Vullo said:
As the financial services marketplace continues to expand and evolve in New York, the implementation of strong regulatory safeguards that encourage the responsible growth of the industry, while first and foremost protecting consumers remains critical.
Today’s approval further demonstrates that operating within New York’s robust state regulatory system leads to a stronger fintech marketplace and promotes innovation and necessary compliance with effective risk-based controls.
Robert Gutmann, CEO of New York Digital Investment Group, offered his thoughts on the matter:
NYDIG is pleased to receive these regulatory approvals, and we look forward to providing secure and transparent liquidity, custodial and asset management services to the institutional market. We want to express our gratitude to the NYDFS for providing a clear and comprehensive regulatory framework for investors, providers and users alike to engage with the burgeoning digital asset ecosystem.
Earlier in October, Coinbase was granted a license from DFS to provide custody services to residents of New York. Coinbase Custody has been permitted to offer services for Bitcoin, Bitcoin Cash, Ethereum, Ether Classic, Litecoin, and XRP.
Last month, Live Bitcoin News reported about IDEX, a decentralized cryptocurrency exchange, announcing that it would block all trades from New York IP addresses as the firm did not have the BitLicense to offer services in New York.
Do you think stringent regulations are good for investor protection? Let us know in the comments below.
Images courtesy of Shutterstock
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It has been a while since the cryptocurrency world saw a good stress test. Doing so on either Bitcoin’s or Ethereum’s blockchain would undoubtedly cripple both networks in quick succession. For supporters of BCHABC and BCHSV, a stress test will occur later today. Both networks will be pushed to the limit, assuming neither chain decides to refuse these spam transactions.
One has to commend the supporters of the original Bitcoin Cash for willing to put the network through its paces on a regular basis. Over the past few weeks, there have been a few different stress tests to keep the network on its toes. Both of these tests have been completed successfully, further confirming the flexibility of Bitcoin Cash.
To put this into perspective, the “warm-up” test took place on November 10th. At that time, a total of 1 million transactions were generated on the Bitcoin Cash network, which is always a great solution. It allowed the network to deal with this growing demand if there ever would be a need for processing so many transactions moving forward.
This initial test will be followed up by the “main event test” later today. It is expected over 300 transactions per second will begin flooding the Bitcoin Cash network for a period of 24 hours. That in itself is interesting for many different reasons. First of all, it will show how resilient the network still is after the fork. Moreover, it will affect both ABC and SV chains. The BCH Stress Test website explains the upcoming event as follows:
“This stress test will play across both networks, with funds provided in advance being able to be used once on each chain. We do not believe that there will be 2 networks on the day, but if there are we will not make any concessions in the testing strategy to accommodate for rules or limitations put in place by either chain. BCH is a permissionless network and our test will use real money to send valid transactions with valid fees.”
It is this particular aspect which raises a fair few questions at this point. With both chains now doing their own thing, the stress test can cause a shift in how their individual hashrates are perceived. As BCHABC appears to have more hashrate than BCHSV, it should be capable of taking care of these transactions easier. However, BHCSV has a much larger maximum block size, which should highlight the potential of 32MB blocks. A lot of valuable information can be obtained from this stress test once everything is said and done.
One interesting comment regarding this stress test can be found on Reddit. Market-neutral seems to hint at how the BCHABC mempool may decide to reject the stress test transactions to maintain its block lead over BCHSV. If that were indeed the case, the BCHABC team would shoot itself in the foot by purposefully not participating in the stress test everyone agreed on. Whether or not things will play out along those lines, is very difficult to predict at this time.
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In Saturday’s edition of The Daily, we examine Q3’s figures for initial coin offerings, and ponder where they go from here in the wake of fresh SEC scrutiny. We also take a look at how exchanges are reacting to the Bitcoin Cash fork. Some platforms have already enabled deposits and withdrawals, while others are waiting till the dust has settled.
Also read: SEC Settles Charges With Two ICO Issuers
In the build-up to the Bitcoin Cash (BCH) hard fork on Nov. 15, cryptocurrency exchanges outlined their plans for dealing with the event. Bitfinex and Poloniex permitted trading of the ABC and SV coins in advance of the split. Others, such as Bittrex, permitted BCH trading throughout the event, but most paused trading for a few hours, before reopening with two BCH markets active, to represent each side of the divide. All cryptocurrency exchanges, however, paused BCH deposits and withdrawals while the fork took place.At the time of publication, ABC is 16 blocks and 53.3% ahead by PoW, compared to SV.
Bittrex is one of the first major exchanges to have resumed BCH deposits and withdrawals, having assigned the BCH ticker to the ABC implementation. “Confirmations have been temporarily increased to 20 for deposits,” tweeted the exchange. “Bitcoin SV (BSV) balances are in accounts.” Most exchanges have been more circumspect, however. Binance has yet to re-enable bitcoin cash deposits and withdrawals, and is adamant that the BCHABC and BCHSV tickers are staying for good. So far, 50% of all exchanges have deemed the ABC implementation to be BCH, including Cobinhood, Bibox, and Bitmax.
ICOrating.com has published its quarterly report into the health of the token market. It notes that $1.8 billion was raised by initial coin offerings (ICOs) in Q3 of 2018, which pales in comparison to the $8.3 billion raised in the previous quarter. 57 percent of all ICOs in Q4 failed to reach $100,000 and just 4 percent of projects secured an exchange listing. Other noteworthy statistics to emerge from ICOrating’s report include the fact that in Q3:
This latter statistic can be expected to decline further in the months to come, as enforcement by the U.S. Securities and Exchange Commission (SEC) dampens enthusiasm for utility token ICOs.
The cryptocurrency community has been reacting to yesterday’s news that the SEC has issued its first penalties to ICOs for securities violations. These landmark cases confirm that ICOs cannot simply claim their coin is a utility token in the hope this will exempt them from securities law. “The SEC is working their way up the ICO totem pole, starting with the most obvious and easiest targets until they have the accumulated weight of caselaw to tackle the big ones,” opined Nic Carter. This sentiment was echoed by other figures, including legal experts Preston Byrne and Stephen Palley.
What happens next you ask? we're *at* the start of ICO Act III.
Act IV is where the shinola hits the fan. So the action is still coming.
— Palley (@stephendpalley) November 16, 2018
The SEC has instructed the ICOs it penalized to compensate investors in fiat currency for their losses. This includes any claimants who sold their tokens at a loss. As a result, there has been speculation that the SEC’s ruling may result in selling pressure from ICOs forced to liquidate their cryptocurrency holdings.
What are your thoughts on today’s news tidbits as featured in The Daily? Let us know in the comments section below.
Images courtesy of Shutterstock and ICOrating.com.
Need to calculate your bitcoin holdings? Check our tools section.
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Tech company Nvdia has entered a nosedive after Q3 results reveal an underwhelming performance. Nvidia experienced a 19 drop in its stock price.
On Thursday, tech company and chip maker Nvidia experienced a 19 drop in its stock price. The drop comes amid an unfavorable and underwhelming progress over Q3. Despite this NBC reports on Nidia’s earnings report, which indicates that company revenue rose by 21 percent in Q3 “year over year.”
NBC‘s Jordan Novet breaks down the company’s earnings over the quarter:
During Q2, Nvidia also failed to meet the bar set by analysts. In terms of guidance, Nvidia itself
“[…] said it’s expecting $2.70 billion in revenue in the fiscal fourth quarter, plus or minus 2 percent, excluding certain items. That’s below the Refinitiv consensus estimate of $3.40 billion.
Following up on Q4 predictions, Nvidia CFO Colette Cress said, “Our Q4 outlook for gaming reflects very little shipment in the midrange Pascal segment to allow channel inventory to normalize.”
NBC reports that:
It has become less profitable to use graphics processing units, or GPUs, for mining, according to a recent analysis by Susquehanna. To mine cryptocurrency, computers compete to solve complex math problems in exchange for a specific amount of bitcoin or ethereum.
CEO Jensen Huang chimed in on the matter, noting that:
Our near-term results reflect excess channel inventory post the crypto-currency boom, which will be corrected […]
This is according to the Nvidia whos press release be seen via the official website here:
NBC noted that Nvidia, “[…] like most other tech stocks, was hit hard in October, which was the worst month for the Nasdaq Composite Index since 2008.
While Q3 revenue has increased overall, Nvidia stock price drops. Perhaps in the near future, a rebound will occur. Until then, time will tell.
What are your thoughts on Nvidia’s drop after Q3? Let us know in the comments below.
Images courtesy of Shutterstock.
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As the Bitcoin Cash struggle for control rages on, a lot of eyes are on the individual prices of BCHSV and BCHABC. Depending on which exchange one uses, BCHABC may even be labeled as BCH these days, which makes things even more confusing. One notable trend is how the BCHABC price is effectively decreasing as of late, which puts a different spin on this ongoing debacle.
A very interesting battle between BCHABC and BCHSV is going on. Not just in terms of hashpower, which seems to fluctuate across both networks. In the price department, BCHABC is shaping up to face a very rough weekend, as there is a net 15% decline in value over the past few hours. This does not bode well for short-term trades, although this trend should not come as a major surprise either in this day and age.
As most people would come to expect, the majority of trading for BCHABC occurs in the Bitcoin market. Several other pairs exist across different platforms, as trading for USD and USDT is also possible. That is not entirely abnormal, although trading against anything other than Bitcoin may be an extra risk most traders shouldn’t take right now. This ongoing network split is far from over, and prices will fluctuate a lot more in USD value compared to BTC value, by the look of things.
Interestingly enough, Binance is the largest exchange for BCHABC volume. It has a notable lead over Bitfinex and Poloniex in this regard. Some platforms refer to BCHABC as “BAB’ all of a sudden, which makes things even more interesting. Even so, the net decline in BCHABC’s value is visible across all exchanges and pairs regardless of how one wants to look at it.
New metrics are being discovered for all cryptocurrencies these days. At The Tie, users can gauge the sentiment of BitcoinABC in its current shape. So far, it seems there is still a lot of miner momentum, although that ‘lead” tends to shrink every now and then. It is an interesting addition to gain a different look at this network split, albeit nothing is ever set in stone where cryptocurrencies are concerned.
— The TIE (@TheTIEIO) November 15, 2018
The recent Bitcoin ABC client release also triggers a lot of negative sentiment. While it makes sense to protect a blockchain from being reorganized by a third party, this centralized approach to securing the network doesn’t sit well with a lot of people. In fact, it appears this may trigger some further backlash for Bitcoin ABC as a whole, albeit a few disgruntled members do not represent the entire community by any means.
I’ve just lost all respect for @rogerkver the way he has carried himself over the last few days. The way he manipulated rented hash has put a hole in his ideology & goes against the principles he’s been advocating. #Bitcoin #BitcoinCash #BCH #BCHABC #BCHSV #HashWar pic.twitter.com/dOgygshH7Z
— jeff (@that_bch_guy) November 17, 2018
It is evident no one is “winning’ as long as this contest between BCHABC and BCHSV is going on. Both networks are losing a lot of money and causing both miners and supporters to lose a fair bit of money as well. If one of the two emerges as successful, it is only normal that coin’s value should reach a higher value. That is, assuming people don’t get so fed up they will simply try to dump either chain into the ground shortly afterward.
Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency.
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Coinmine, a start-up backed by Coinbase has launched a trendy and power-friendly device for home mining of cryptocurrency at a price tag of $799.
As Bitcoin and cryptocurrency prices shot up last year, so did the public interest in mining them. An entire industry of hardware manufacturers, cloud mining companies and masternode hosting services have come up.
A few years back one could mine Bitcoin using desktops and laptops. As the competition and mining difficulty increased, specialized chips called ASIC (Application Specific Integrated Circuits) chips were designed making mining impossible by CPU (Central Processing Unit) or GPU (Graphical Processing Unit) based devices.
Coinmine, a start-up firm has launched “Coinmine One”, a compact and trendy looking mining device, which as per company claims, is easy to use and can be controlled with an app.
The development was reported earlier by Fortune. According to the article, the device costs $799. While interested customers can place their orders on the company’s website, shipping is scheduled to start in December.
The firm was founded by Farb Nivi, an entrepreneur and Justin Lambert, an industrial designer. The company has raised $2 million in funding from Coinbase Ventures, Arrington Ventures and Balaji Srinivasan, chief technology officer at Coinbase.
Nivi wants to target crypto-enthusiasts and believes that it will help them participate in new blockchain projects. Balaji thinks that the device provides an opportunity to make money.
It’s a pretty cool idea to be able to plug a device into the wall that makes money for you while you sleep. As a purely economic proposition, you’d have to balance the cost of power and the hardware device itself with the cost of the coin or token that you’d be mining. There are so many assets now that there is probably always an arbitrage somewhere.
Nivi also believes that more blockchains will follow Monero, which recently updated its protocol to disallow mining using ASIC based devices. That would allow more participation in the mining process and keep the cryptocurrency decentralized.
The Coinmine One uses GPU chips and is not powerful enough to mine Bitcoin. However, the cryptocurrencies that can currently be mined using the device include Ethereum, Ethereum Classic, Monero, and Zcash.
The mining device runs its own operating system that will enable the users to add more cryptocurrencies in the future. According to Nivi, the device is power-efficient and very quiet. It also has a trendy design.
Using Coinmine One will allow the users to earn the currently supported cryptocurrencies and switch to mining new currencies in the future rather than having to buy them.
The device stores the mined assets in wallets on its corporate servers and deducts a 5% cut for providing the service.
“With automatic updates, MineOS also gives access to new crypto networks like Bitcoin Lightning, Grin, Dfinity, and Filecoin. This feature ensures users do not miss out on powering the next important crypto network,” said the company in a press release.
As cryptocurrency adoption increases and they gradually go mainstream, more firms like Coinmine will mushroom giving users alternate options to mine and earn digital assets.
Would you like to buy the Coinmine One? Let us know in the comments below.
Images courtesy of ShutterStock
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Even though Ether was witnessing bullish movement through the first week of November (with the currency even scaling up to a relative high of around $225), the current 12 and 26 day EMA’s for the premier asset are ‘horizontally flat’. If that wasn’t enough, Ether also fell to a fresh annual low of $174.64 yesterday afternoon (thereby putting the currency in the oversold region of the market).
Also, for buyers looking to initiate ETH-based trades (in hopes of a bull run triggering in the near future), it is expected that Ether will once again start to rise once the currency reaches its “oversold territory”. With that being said, the current state of Ethereum is really poor— with the currency currently sitting below its 12-day EMA (thus indicating that a bearish trend is going to persist for the foreseeable future).
As many of our readers may already know, Ether mining has been a lucrative business prospect for many independent miners over the course of the past 2-3 years. However, thanks to the state of the crypto market right now (as well as rising electricity costs), ETH mining is no longer a viable/profitable economic venture.
In this regard, a recently released study study by CNBC claims that as of November 2018, the profit yield in relation to ETH mining has now reduced from $150 per block (as per August 2017) to almost nothing today.
The current state of the altcoin sector right now is quite delicate, with no-one really knowing what the future has in store for this burgeoning market. However, one thing is for sure that the coming few days and weeks will definitely not be without their fair share of drama.
The post Ethereum Price Watch: Ongoing Market Slump Sees Currency Slide Down to the $175 Mark appeared first on NullTX....Read more
Following October’s news that Samourai Wallet was preparing to enable internet free bitcoin transactions, somebody only went and tried it. A Twitter user from New Zealand documented his off-line experiments online.
The ability to send bitcoin (BTC) 00 without internet or data connection relies on the goTenna mesh network. First, Samourai wallet creates a signed transaction and passes it to the TxTenna app. This then broadcasts the transaction to nearby mesh nodes via a paired goTenna mesh device.
The mesh nodes relay the transaction data until they find a node running TxTenna with an internet connection, which forwards it to the bitcoin network.
— ℭoinsure (@Coinsurenz) October 16, 2018
Twitter-user Coinsure decided he would try to use his four goTennas to send a bitcoin transaction 19.2km. goTenna lists the maximum range in open environments as 6.4km, so this is the theoretical limit achievable.
First, he needed to plot suitable high ground points around 6.4km apart, where he could place his camouflaged goTenna nodes. Range drops dramatically in built-up areas, requiring more nodes to cover the area with a mesh network.
His girlfriend got to stay at home with another goTenna and receive the transactions, thus acting as a relay from the radio mesh network to the internet — and a recipient of the bitcoin being transferred. The phone sending the transactions had no connection other than a paired goTenna.
The first attempt was directly from the source device to the receiving device, at a distance of 5.61km. After confirming this was a success, Coinsure left a goTenna in the location and moved to the next, 7.06km away. He again managed to successfully broadcast a bitcoin transaction, this time a total of 12.67km.
Sadly, the third attempt, at an additional 7.15km distance was not successful, but this may have been down to an app crash on his girlfriend’s phone rather than a failure of the mesh network.
Coinsure did note that there was no confirmation or acknowledgment of the transaction until the wallet reconnected to the internet. Because of this and the risk of spending coins more than once, you are limited to just one transaction whilst offline. But yeah, that’s still pretty cool.
He also estimated that just 37 well-placed goTenna nodes could cover 1120 sq. km of Auckland and the surrounding area — which is also pretty cool.
This is the -very- rough diagram I drew up. Not exact but you get the idea. Correction to earlier numbers- 37 units and 1120square km covered pic.twitter.com/oiCahTFoBG
— ℭoinsure (@Coinsurenz) October 16, 2018
What are your thoughts on offline transactions and a node-surrounded Auckland? Don’t hesitate to let us know in the comments below!
Images and media courtesy of Shutterstock, Twitter (@Coinsurenz, @Nic__Carter)
A lot of confusing action is taking place where the Bitcoin Cash price is concerned. Although its actual decline in value is quite obvious for everyone to see, the real price of BCH is not necessarily what people can see on Coinmarketcap. This is primarily because numerous exchanges treat BCHABC as Bitcoin Cash already despite nothing being decided in terms of which chain will be the longest.
Depending on where traders look at, the price of Bitcoin Cash will be either close to the $400 level or down to $250-ish. That is quite a large gap between prices, yet one that is also very easy to explain. Bitcoin Cash, as people knew it before the fork, no longer exists. Most professional exchanges have also retired this price ticker, for the time being. As the hash war rages on, there are still a lot of unknown factors waiting to be addressed.
Despite this ongoing kerfuffle, there is a net 5.76% decrease in the Bitcoin Cash price, and a 5.4% decline over Bitcoin. More specifically, that is what CoinMarketCap reports at this time, although this is not necessarily the case whatsoever. In fact, some exchanges are clearly jumping the gun by labeling BCHABC as BCH and thus dragging the Bitcoin Cash price down a bit more.
Exchanges currently engaging in this activity include Bittrex and Coinex, neither of which plays a big role of importance when it comes to trading. However, based on the current value of BCH on Bitfinex and Gate.io, it seems a similar incident is taking place. One also has to keep in mind Bitcoin Cash was getting battered ahead of the network split as well.
Most exchanges have halted trading of BCH indefinitely, primarily because the currency no longer exists. It is evident either BCHABC or BCHSV will take over that name in the future, but nothing has been decided at this point. As such, any trading referring to just “Bitcoin Cash” or “BCH” should be avoided, as most users can never be sure which currency is effectively being traded under this name.
All of this skews the picture pertaining to Bitcoin Cash altogether. Coinmarketcap reports there is still $392m in trading volume for BCH, even though that is virtually impossible right now. With so many exchanges freezing deposits and withdrawals, it is evident actual BCH trading is no longer possible whatsoever. Virtually all platforms have deposits of BCHSV and BCHABC frozen as well, which only makes this market trend more confusing.
It is safe to say the entire network split has been a bit of a mess first and foremost. In the case of Bitcoin Cash itself, that name will – under the current circumstances- not be used across exchanges for much longer. Instead, the two separate camps need to be treated as such first and foremost. Until things settle down – with might not necessarily happen anytime soon – the Bitcoin Cash price itself is pretty much irrelevant for most traders and speculators.
Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency.
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In less than a year since Estonia introduced licensing for companies operating in the cryptocurrency industry, the number of licenses issued has surpassed 900. Authorities in the Baltic country have adopted a rather progressive approach to regulating the crypto space but startups have complained that local banks are still reluctant to offer them regular services.
Estonia, which is among the first jurisdictions in the European Union to legalize crypto-related activities, grants two types of license. So far, around 500 licenses have been issued to entities operating digital asset exchange platforms. Over 400 cryptocurrency wallet providers have been licensed as well, Russian news outlet Bitnovosti reported, quoting Nikolay Demchuk from the law firm Njord which works in the sector.
Njord has recently published an overview of the situation around Estonian cryptocurrency licenses, quoting data from the country’s Register of Economic Activities. According to the report, obtaining a license is a relatively straightforward and simple process.
The Estonian Financial Intelligence Unit (FIU), the regulator issuing the licenses, has 30 days to review each application but in most cases an approval is granted within only one or two weeks. However, a license can be revoked if the company has not started operations within six months of receiving it.
The main requirements businesses have to meet stem from various know-your-customer and anti-money laundering regulations. Crypto entities registered in Estonia are legally operating in the EU, of which the country is a member state, and licensees are obliged to comply with relevant local and European laws.
Much like other countries where authorities have been trying to create a crypto-friendly environment, Switzerland for example, traditional financial institutions in Estonia have been slow to catch up with regulators and hesitant to respond to the needs of the nascent industry. Restricted access to regular banking services remains a major hurdle for Estonian fintech businesses, many of which are now working with foreign banks and payment providers. Nikolay Demchuk commented:
Opening a bank account is the biggest problem facing crypto companies. Estonian banks are not yet ready to serve clients operating with cryptocurrency.
Nevertheless, many investors have been attracted by the generally favorable conditions offered by Estonia. The country has already issued licenses to a number of crypto startups. In early June, regulators granted licenses for wallet and exchange services to trading platform Coinmetro. Later that month, a company that develops trading software and white label solutions, Ibinex, obtained a license to operate from Estonia. In September and this week FIU approved the applications filed by two new cryptocurrency exchanges – Ironx and B2bx.
The new Estonian Money Laundering and Terrorist Financing Prevention Act came into force almost a year ago. According to Demchuk, the legislation has allowed Estonia to become the first country in the European Union to regulate the circulation of cryptocurrencies and implement the licensing regime for companies operating in the sector.
At some point, the tiny European nation even planned to issue its own cryptocurrency, Estcoin. However, Tallinn was forced to abandon the idea under pressure from EU institutions. The strongest criticism came from the European Central Bank. In September of last year, its President Mario Draghi stated that “No member state can introduce its own currency” in the Eurozone.
This past summer, it was reported that the government intends to proceed with a limited-scale project to issue an Estonian digital token. The crypto may be used for transactions between participants in the country’s e-residency program. Tens of thousands of foreign nationals have already been issued the special digital ID cards that allow them to take advantage of many benefits offered by Estonia, from simplified procedures for establishing a company to preferential taxation.
What do you think about Estonian policies regarding the cryptocurrency industry? Let us know in the comments section below.
Images courtesy of Shutterstock, Bitsane, Covesting, Swissone.
At Bitcoin.com there’s a bunch of free helpful services. For instance, have you seen our Tools page? You can even lookup the exchange rate for a transaction in the past. Or calculate the value of your current holdings. Or create a paper wallet. And much more.
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Under the current market circumstances, no real uptrend can be expected among major cryptocurrencies. As the total market cap continues to decline every single day, it is evident this latest slump may not be overcome that easily. For Electroneum on the other hand, things are not looking all that bad. Its value is in the green, and a re-entry into the market cap top 50 is very likely.
Considering how nearly all currencies in the top 50 are either in the red or barely in the green, there is not much to be excited about at this time. That situation will come to change moving forward, as the Electroneum price is making some big moves. As all of the coins surrounding ETN are down in the dirt, there is a good chance this altcoin will effectively rise up again and reclaim its position among the first 50.
Over the past 24 hours, there has been a notable increase where the ETN price is concerned. Thanks to a 4% gain in USD value and a 4.5% increase over Bitcoin, things suddenly look a bit differently from just a few days ago. At the same time, this pushes the Electroneum value to $0.0127 again. A very interesting development, albeit one has to keep in mind there may not necessarily be too many further gains over the weekend.
There is some good news which warrants an ETN price spike. Using this altcoin to pay for goods and services is becoming a lot easier, by the look of things. Paying for a pizza is a significant milestone for Electroneum as a similar payment kicked off Bitcoin;’s rise to dominance. While it may not mean much for ETN in the short-term, it is pretty interesting regardless.
#ETN #Electroneum #instantpayment @electroneum #cryptocurrency #blockchain
Paid my Pizza with crypto #ETN! Really fast and Easy! Looking forward for a Daily usecase! Stop watching prices & Start to use your #crypto. Value will not increase if we don't use it! Be smart pic.twitter.com/HTAazbGNwu
— CryptoAltcoinStars (@DreamsPaxi) November 17, 2018
My Crypto Advocate is one of those traders who can’t see a lengthy Electroneum price trend forming at this stage. Instead, he expects the ETN downtrend to continue throughout 2018 and early 2019. This is not necessarily the best time to invest in cryptocurrency, as no currency has found a stable floor whatsoever. As such, this latest ETN uptrend may not last all that long.
#ETN $ETN Just checking in. I'm anticipating a continuance of this downtrend towards the beginning of 2019. A lot of seasoned & new investors will / should be cautious about committing new money into crypto at this time and wait for the market to settle. pic.twitter.com/UYI587eWGz
— My Crypto Advocate (@tomr_crypto) November 17, 2018
Other signs seem to confirm a similar outlook, which is not necessarily all that promising. Ed confirms the ETN price on KuCoin is seemingly subject to a bit of manipulation. Someone – or a bot – is keeping the price down – allegedly – every time a small uptrend is noted. This is not entirely uncommon behavior among exchanges, and it is certainly not unique to Electroneum either.
— Ed (@Sk8Monkey420) November 16, 2018
As is always the case during the weekends, things can get very interesting in quick succession. For Electroneum, its incredibly low trading volume will be a hindrance first and foremost. Just $570,000 worth of volume will not make this market move by much in either direction. As such, one has to wonder if a dip to $0.0125 will materialize fairly soon.
Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency.
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The accused in the REcoin ICO scam admitted to committing the fraud and is likely to be sentenced under violation of securities laws.
Maksim Zaslavskiy charged with running two Initial Coin offering (ICO) frauds has pleaded guilty, on Thursday afternoon at a court in the New York borough of Brooklyn. He admitted cheating about 1000 investors.
The story was reported earlier by MSN. Zaslavskiy, aged 39, confessed to lying and defrauding investors by marketing two ICO scams under the names REcoin Group Foundation, LLC (REcoin) and DRC World, Inc, also known as Diamond Reserve Club (Diamond).
“I, along with others, made these false statements to obtain money from investors,” said Zaslavskiy.
ICOs are a mechanism used by blockchain start-ups to raise funds for their projects. The ICOs raise funds in Bitcoin, Ethereum or other crypto-assets and issue their native tokens in return to the investors.
Regulators and law enforcement authorities like the Department of Justice have in the recent past increased their surveillance of past and current ICOs. SEC (The US Securities and Exchange Commission) has repeatedly said that most tokens fall under the category of securities and need to comply with federal laws.
The regulators and agencies are cracking down upon firms that are found to be in violation of the norms.
It is reported that the accused marketed REcoin as a token backed by real estate in developed countries. He even lied to investors about 2.8 Million tokens being already sold.
There were no properties that were purchased to back the cryptocurrency and Zaslavskiy, it is reported, did not even use a blockchain to issue the fake securitized certificates.
“We had not yet purchased any real estate,” admitted Zaslavskiy.
Diamond cryptocurrency which was supposed to be backed by diamonds was also being marketed using similar false claims. The accused had not purchased any assets to support the coin.
Zaslavskiy also lied to the investors of REcoin about having a team of lawyers, brokers, and accountants who would invest the funds raised into real estate.
Zaslavskiy could face up to five years in prison when he is sentenced later for committing securities fraud. His is also likely to be fined by SEC who has slapped him with civil charges.
“This is a case where he had a good-faith belief in his cryptocurrency products, but he marketed it as further along than what had been actually developed,” said his lawyer after the court session.
According to the article, U.S. District Judge Raymond Dearie earlier in September had ruled that federal securities fraud laws could be applied to cryptocurrencies. He has further stated that it would be up to a jury to decide whether the ICO tokens in each case were securities.
What are your thoughts on this ICO fraud prosecution? Let us know in the comments below.
Images courtesy of ShutterStock
A county in the U.S. state of Washington is seeking to impose higher electricity rates for cryptocurrency miners.
Cryptocurrency mining is a touchy subject, especially for authorities in the cities or municipalities where the operations are happening. This is mainly due to the amount of power used, which, in some cases, far exceeds the average power consumption of the area.
Some of these authorities currently have moratoriums in place, effectively halting applications of prospective miners. Others are charging these miners for the extra power that needs to be purchased, which otherwise would have come out of residents’ pockets. Plattsburgh in New York is even looking to have mining regulated in the city.
According to KPQ, Chelan County in the U.S. state of Washington seems to be following suit and have proposed an increase rate structure for crypto mining, which has resulted in some unhappy miners.
Chelan County Public Utility District (PUD) recently introduced their proposal for a rate structure aimed at cryptocurrency miners. Chelan County’s Customer Utilities Rate Adviser, Lindsey Mohns, explained what miners can expect:
This rate structure is built the same way as the existing rate structure that cryptocurrency miners are paying right now, which is referred to as Schedule 35. What this new rate structure does is brings into it a market consideration on the energy price because we will have to purchase power on the market to serve the variable load associated with cryptocurrency.
Our upfront capital charges are intended to recover the accelerated cost of infrastructure investment in our system, mainly in our substations, which is kind of the main component of the distribution system. So the upfront charges take into account the capacity that’s used by cryptocurrency miners.
These miners were actually in attendance at the unveiling of PUD’s new structure, and Denton Meier didn’t mince any words when providing feedback. Meier is a co-owner of Firefly Technologies and Silicon Orchard. He said:
I think it’s nice to be able to make comment but it seems like they’ve already made up their mind. What’s been missing is actually a round-table discussion and more of a brain storming session. How can we really affect the local economy, how can we work together? Let’s create a business-case scenario and include the PUD in that.
If the structure is approved, Meier added that Chelan could see an exodus of cryptocurrency miners as well as any type of job creation:
Looking at it in a bigger picture it’s not just mining but services that can happen around that. Like jobs creation in programming, finance, and other things that will happen over time with the cryptocurrency market. We have the opportunity to become a hub for that. With rates that price us out of that ballgame, it’s not that root that we need to then grow those other businesses, so that will happen elsewhere.
Mohns doesn’t believe that any kind of mass departure is imminent though and thinks that this would have happened already as PUD has had many other meetings of a similar nature.
However, crypto experts have a history of migrating to more welcoming shores if it benefits them. We’ve seen this with major exchanges that have left certain countries with unclear regulations in favor of locations with more positive and clearer guidelines.
We’ll just have to wait and see if this will happen to the crypto miners in Chelan County.
Do you think that Chelan County will push through with this new rate structure? Will it result in the end of crypto mining in the county? Let us know in the comments below!
Images courtesy of ShutterStock.
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The blockchain space appeals to freethinkers, entrepreneurs, and visionaries. Many of these iconoclasts practice voluntaryism, although a philosophy which new entrants may have not heard about. This is because they entered into the ecosystem from the financial realm, and their sole focus has been on accumulating more wealth. This is a shame. The impetus for cypherpunks to build encrypted technologies arose from a spirit of sovereignty – not just moneymaking schemes.
Sovereignty denotes a yearning for absolute individual independence. It means many people involved in crypto prefer to live freely, without having to genuflect before someone who claims to rule them; before some king, politician, or governing apparatus. This is the crux of voluntaryism.
Voluntaryists believe all human relationships and interactions should be as consensual as far as possible. They place the notion of “consent” as the North Star of reasoning within the conduit of ethical thinking.
Consent means no human has the moral right to coerce or force another human being into acting against their volition. If someone uses force to sate their whims, that action would be considered immoral and unjust.
In some ways, this philosophy marches in perfect lockstep with the golden rule to treat others the way you wish to be treated. No one wants to be forced into behaving a certain way. No one wants to be harmed or mistreated. Everyone wants to act on their own will, without having to capitulate to others while under duress.
By virtue of their philosophy, voluntaryists do not believe government is a moral institution. The organization is at odds with voluntaryist philosophy. Government is non-consensual by nature. Every law, edict, and regulation is effectively a threat of violence against peaceful people. No one automatically consents to government laws. A law is an enforced mandate.
For instance, if someone disobeys a law, a costumed officer will attempt to issue them a ticket or arrest them. If that person moves to defend themselves from that act of aggression, the officer will murder them if necessary.
All government officials disregard consent. They issue or enforce laws regardless if everyone agrees. Therefore, coercive government is the barbarian’s paradigm for social order; it is uncivilized, violent, hysterical, and revels in cultism. It’s sadistic to the extent people are indoctrinated from birth to believe this paradigm of violence is synonymous with “civilization.” In reality, it is uncivilized barbarism writ large on the soul of men.
Without doubt, this means the voluntaryist is an anarchist. Since governments operate without consent, they can never be an acceptable organization within the context of voluntaryist philosophy. Anarchism is thus the logical conclusion of voluntaryism.
However, most people hear the word “anarchy” and they lose their cool. Images of picturesque horror scenes rife with explosions, corpses and gore galore erupt in colorful crescendo via their mind’s eye.
They panic and reject the term ‘anarchy’ as a synonym of disorder. They view anarchy as a form of Lovecraftian madness palatable only to fringe academics, disillusioned teenagers, and bohemian punk rockers with cockney accents.
In reality, anarchy just means “without rulers.” It means no person or group has the right to rule over the rest of humanity. It does not imply bloodshed, bazookas, and bombs.
Edward Abbey said, “Anarchism is not a romantic fable but the hardheaded realization, based on five thousand years of experience, that we cannot entrust the management of our lives to kings, priests, politicians, generals, and county commissioners.”
It is no surprise the first technologists to think about using ciphers to ensure privacy and anonymity were voluntaryists. They were anarchists: crypto-anarchists. They built the architecture of technological anarchism, and they were heavily influenced by voluntaryist philosophy. From day one, they sought to use computational tools to generate more freedom.
Timothy May, the godfather of decentralized-encrypted technology, wrote his Crypto-Anarchist Manifesto while under the influence of Rothbardian thinking. May genuinely believed the ethics of voluntaryism. He set the tone for all future developments, including the creation of Bitcoin and all its anarchic features.
To this day, charlatans with dollar signs in their eyes have eroded the voluntaryist vision of the crypto-anarchists. Instead of seeking to erase the barbarian’s paradigm, they focus on the sexual magnetism of “moon” and “Lambo.”
This is why internalizing the voluntaryist-anarchist roots of the crypto ecosystem is essential. Understanding this history will pave a path to a beautiful new world, and encourage people to embrace the purpose of the technology. It will help abolish government and put an end to the insanity of this uncivilized world. The voluntaryist mindset will act as a compass toward mass adoption and inspire true love of blockchain. In the process, it will rekindle the flame of freedom.
Are you familiar with voluntaryism? Do you still believe voluntaryism is important for the creation of novel technologies?
Images courtesy of Twitter and Shutterstock
OP-ed disclaimer: This is an Op-ed article. The opinions expressed in this article are the author’s own. Bitcoin.com does not endorse nor support views, opinions or conclusions drawn in this post. 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.
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Now that the Bitcoin Cash hard fork is complete, will Bitcoin bounce back from a $1,200 loss?
Yesterday’s 8% move from $5,188 to $5,700 was nice but does the King of Cryptocurrencies have any other cards up its sleeve? At the moment bull volume is nearly non-existent and as the weekend approaches it could taper even further so barring some positive breaking news, bitcoin (BTC) 00 seems set to trade in the current range at least until the start of next week
Bitcoin does not appear to have found a bottom yet and at the moment there is an inside bar forming on the daily chart. Depending on one’s vision, there is the possibility of an inverse head and shoulders formation in the works on the 4-hour chart. Bitcoin needs to break above the closest resistance at $5,712 then $5,760 in order to trade above the 5 and 10-MA. There was a soft support at 5,590 but this appeared to be giving way at the time of publishing.
In the event of an inverse head and shoulders pattern becoming clearer, cautious traders might wait before popping in for a presumed bull break as the 4-hr resistances have not been tested since the big drop. So waiting to observe sustained follow-through above the most immediate resistances might be wise. There also appears to be divergence within the Stoch and RSI when compared to Bitcoin price action 00 on the 4-hour chart but the absence of bull volume means traders shouldn’t get too excited.
Where do you think Bitcoin will go over the weekend? Share your thoughts in the comments below!
Images courtesy of Shutterstock, Trading View. Market data sourced from Bitfinex.
The U.K. needs to take the lead in “fostering innovation” in the crypto space, according to the chair of CryptoUK, who suggested Bitcoin has the potential to change global institutions.
That’s according to Iqbal V. Gandham, managing director of eToro. He’s also chair of the UK Cryptocurrency Association (CryptoUK).
In a report from the Express, Gandham said:
If the U.K. is going to have any say in blockchain and crypto innovation and is going to lead the world, it needs to act in 2019. Otherwise, like the internet, even though Tim Berners-Lee invented it, other countries will take ownership. So if the U.K. wants to be the home of capital markets and money it needs to take leadership in this space.
He added that he saw “absolutely no reason” why the U.K. couldn’t be a leader in the crypto space. The government of the British Isles has been somewhat reluctant to promote the industry, with MP Nicky Morgan saying that Bitcoin operates in a “wild west” space.
In June, though, Gandham assured MPs that investors’ crypto assets are secure. Answering questions raised by the U.K.’s Treasury Select Committee, he said that “security is improving.” However, the issue of regulation remains a barrier. This is something that many jurisdictions are turning their attention to in order to give investors better protection.
According to Gandham, regulation could and should be on the table within a year. He added:
It is really important to get ahead of the curve on this one. When it comes to money, you have got to get ahead of the curve.
France is also considering regulations. Last month, it was reported that the Paris-based Financial Action Task Force (FATF) had said it will launch guidelines by June 2019. It’s hoped that they will eliminate the threat of fraud, which seems to be the driving force behind them.
However, while some may think this is a negative on the space, it can also be seen as a positive. The simple fact that discussions are taking place around crypto is certainly a good thing.
Albania is another region thinking about crypto regulations. By implementing them it hopes to attract investment to what is one of the poorest countries in Europe.
It remains to be seen what impact, if any, regulation will have on the space. Yet, this may be the only way forward to see the industry flourish.
How do you think regulation will impact crypto? Do you think it’s good or bad? Let us know in the comments below.
Images courtesy of ShutterStock.
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Keene, New Hampshire is well known city for libertarian philosophies and more recently as a hotbed for cryptocurrencies. On Monday, Nov. 12, crypto advocates from the region have announced the launch of a new educational center called the Bitcoin Embassy New Hampshire.
Cryptocurrency and libertarian activists from Keene New Hampshire have been steadily pushing digital currency adoption for a while now. This past Monday the group of advocates from the region, who also run the city’s active cryptocurrency Meetup group, revealed the launch of the Bitcoin Embassy New Hampshire. The embassy will be an educational center dedicated to teaching people all about digital assets, explained the creators. Further, the organization now joins the other state embassies located in the U.S. like the Atlanta Bitcoin Embassy operated by the Austrian economist Jeffrey Tucker.
Additionally, the group from Keene have explained the new embassy will offer free “Bitcoin 101” classes for visitors. “With the goals of education, networking, and inspiration, head ambassador and instructor Chris Rietmann opened the doors to the Bitcoin Embassy NH in October and has already created a “Bitcoin 101” class that is free to take,” explained the Free Keene blog. “Donations are certainly welcomed if you find the class valuable and classes are also available for those looking to learn how to accept crypto at their businesses.”Chris Rietmann Gives “Bitcoin 101” Class at Bitcoin Embassy NH.
The crew from the Free Keene blog and members of the community have been spreading cryptocurrency adoption relentlessly lately on all fronts. Recently, the group got a number of merchants to accept digital assets in the city such as a dentist, Indian restaurant, hair salon, and vape shop. Then, this past August, news.Bitcoin.com reported on the group creating Cryptotip.org, a platform that allows users to create simple paper tips funded with bitcoin cash.
The Bitcoin Embassy New Hampshire has received positive media coverage within the region as well. The embassy’s members have explained that the story has been covered by NH Public Radio, the Keene Sentinel, and a front-page story in the Monadnock Shopper News. Additionally, the embassy had a discussion and presentation concerning Bitcoin’s first hash war that started on Nov. 15.
The creators of the embassy state that the organization has more development plans for the future and people can discuss the embassy using Telegram. For people who want to visit the new Bitcoin Embassy New Hampshire, the center is open Tuesday through Sunday and is located inside Route 101 Local Goods in Keene, NH. Check out the video below at the Bitcoin Embassy NH in which members discuss the recent BCH hash war.
What do you think about the Bitcoin Embassy New Hampshire? Let us know what you think about this subject in the comments section below.
Images via Shutterstock, Pixabay, and the Free Keene blog.
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Three international financial institutions are looking into the benefits of using distributed ledger technology (DLT) to improve cross-border payment processes.
Traditional cross-border payments can be expensive. While financial institutions may stand to benefit by charging fees and commissions, it tends to be the consumers, who are forced to pay these fees, that suffer. In some cases, there is also a waiting period which can be delayed if the proper documentation isn’t provided.
Disruptive technology hopes to change the status quo by making these payments peer-to-peer based and by drastically cutting fees and most of all, time. Now, it seems as if some of these institutions are hoping for the same, delivered through blockchain technology.
According to BankingTech, the Bank of Canada (BoC), the Bank of England (BoE) and the Monetary Authority of Singapore (MAS) are investigating using blockchain technology as a potential alternative to traditional cross-border payment services. Their views are expressed in a promisingly titled report, ‘Cross-border interbank payments and settlements: Emerging opportunities for digital transformation’.
Victoria Cleland, who is the BoE’s executive director for banking, payments and financial resilience, touched on the importance of ensuring the improvement of this essential component of the financial industry:
It is important that cross-border payments, which totalled 1.8 times global GDP in 2016, are enhanced too. They are at the centre of the international financial system; enabling trade, investment and money transfers.
In addition to two more traditional payment models, the report also discusses the possibility of using distributed ledger technology (DLT) through a central bank-issued virtual currency. The latter seems to be gaining interest as seen through Venezuela’s introduction of its Petro as well as Iran and the Marshall Islands’ plans to develop their own digital currency. The aim of this model, of course, would be to improve “access, speed, and transparency of cross-border payments”.
This seems to be a tentative step for the trio as the report states that more research needs to be done.
There are a few examples of DLT being used for cross-border payments. August saw French-based remittance service, Tempo, collaborate with Stellar to cut down on the expense and admin that is commonplace with this type of payment. Major investment company, JPMorgan Chase, is also using DLT for their remittance service and have garnered the support thereof of over 70 banks all around the world.
Just recently, Live Bitcoin News reported on how Ripple’s CEO, Brad Garlinghouse, believes that his company is already taking over SWIFT payments as more and more banks are turning to Ripple technology to give their remittance clients a better user experience.
Do you believe that more banks will be using DLT for cross-border payments come 2019? Let us know in the comments below!
Images courtesy of Pixabay and Shutterstock.
Muslim countries around the world are planning to push back against the U.S. dollar’s long global dominance by creating a common digital currency for use in Islamic states. The dollar has evolved into a “sanctioning tool,” charged Erol Yarar, chairman of the Muslim-focused business lobby group International Business Forum (IBF). It has lost its purpose as an international trading currency, he said.
Speaking to Turkish news agency Anadolu on Nov. 16, Yarar said a single cryptocurrency for Muslim nations will be designed primarily to undermine and challenge America’s established hegemony in the global financial system.
“The U.S. dollar is beyond a common currency, it has become a sanctioning tool,” Yarar stated. “In IBF this year we will discuss the term ‘monetary pluralism’ to create a fairer and healthier trade environment. We will make a cryptocurrency system, that will be used for international trade among Islamic countries, a current issue,” he added.
The strength of the dollar, in use as an international trading currency since the end of World War II, gives America immense financial and political leverage among perceived weaker states. It has often been used as part of an arsenal of economic tools deployed to punish nations that refuse to toe Uncle Sam’s line.
It is, perhaps, President Trump’s renewal of economic sanctions against Iran this month – even at the risk of alienating allies in the European Union – that Muslim business leaders under the IBF have been prompted to look for ways of neutralizing the dollar’s dominance in global trade.
A number of E.U. member countries are desperate to protect the Iran nuclear deal to help keep trade alive. They are currently in the process of creating a special purpose vehicle that would undermine the sanctions by redirecting payments away from the dollar and therefore away from the prying U.S. financial system. Again, America has reacted by issuing threats of dire repercussions.
But Iran is moving to protect itself against the crippling economic measures. It has announced the completion of the development of a state-backed digital currency, created specifically to circumvent the sanctions, which target the country’s oil, gas and shipping industries as well as the financial system. The system has already been hit after Swift, at the U.S.’s behest, cut off the Central Bank of Iran from the global banking ecosystem.
Yarar, the IBF chairman, told Anadolu Agency that it is prudent for Islamic nations to emulate Iran’s example by developing a common cryptocurrency system for use within like-minded religious countries. He detailed:
The U.S. keeps down money transfers, imposes sanctions on the international market, and causes crises in countries by using the dollar.
The planned Muslim-compliant digital currency will be used for pricing of goods by businesspeople, exchange markets and countries, he said, adding that Islamic nations should also consider setting up a fund emulating the International Monetary Fund business model.
“The fund, based on non-interest finance principles, will help countries facing an economic crisis. The fund’s name can be ‘International Islamic Cooperation Fund’,” Yara proposed.
His plans have triggered debate on whether countries currently under full, partial or covert U.S. sanctions such as Cuba, Venezuela, North Korea, Iran, Zimbabwe, Syria, Russia and Yemen could adopt virtual currency to bypass the stringent economic measures.
Venezuela recently launched its national cryptocurrency, the petro, while Russia and China are investing in blockchain technologies that will act as alternatives to the dollar in terms of global commerce.
U.S. sanctions work by placing bans on dealings and transactions with individuals, nations and companies. These restrictions are often enforced with the help of mainstream financial institutions. As such, the use of cryptocurrencies, which operate outside the established financial system, are regarded as key to helping economies under sanctions to continue transacting with other countries.
That means if a dependable cryptocurrency system to support financial transactions can be established, the power of sanctions will be diminished as the U.S. is incapable of blocking such transactions.
In Iran, meanwhile, global cryptocurrency exchange Binance has reportedly told its remaining users in the Islamic Republic to pull out their funds from the platform in measures aimed at aligning with the American trade and economic embargo. “Iranians are not really able to trust cryptocurrency exchanges. That isn’t really something new,” Nima Dehqan, a researcher at the Tehran-based blockchain project Areatak, complained. Several exchanges, including Bittrex and Bitmex, have stopped providing services to Iranian investors on account of the sanctions.
Do you think the IBF will succeed in its plan for a common cryptocurrency for Muslim countries? Let us know in the comments section below.
Images courtesy of Shutterstock.
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The post Islamic Countries Challenge USD ‘Sanctioning Tool’ With Planned Common Cryptocurrency appeared first on Bitcoin News....Read more
It has become apparent a lot of projects are not too happy with Etheruem’s infrastructure right now. More specifically, a lot of developers are either pursuing a multi-chain approach or simply move their project to a completely different ecosystem in the process. Kik is the latest to do so, as the project will go with Stellar for its product launch.
For the Kik team, their venture into blockchain and cryptocurrency has been a pretty interesting one. Although they are intent on building the most-used cryptocurrency ecosystem, their approach to doing so has raised a few questions. First of all, the Kin cryptocurrency was designed to be issued on Ethereum. Given the network’s ease of access for ICO projects, that decision made a lot of sense.
Not too long afterward, the team started noticing Ethereum alone will not suit their specific needs. The ongoing Ethereum scaling issues – which are still in place in 2018 – have caused the company to rethink its strategy outlined in mid-2017. Raising nearly $100m with an ICO does not make Ethereum’s inherent problems go away, as the team found out shortly afterward.
A new plan was devised, which would see Kik develop a two-chain strategy. Rather than relying on one infrastructure, the team was trying to spread the load accordingly. Ethereum would still provide the security aspect of Kin, whereas Stellar’s ledger would be used for speed and scaling. That decision was met with some initial resistance, although it makes perfect sense from a business point of view.
To make matters worse, Kik has revised its initial plans once again. Stellar’s low transaction fees were still too expensive for such a large-scale project, which lead to a forked version of Stellar being created for this specific network alone. While that does not cause any major problems in the cryptocurrency world, it was only a sign of bigger things yet to come.
Kik is now officially moving away from Ethereum in every single way possible. The migration of ERC tokens will be completed in the coming weeks, as an intuitive solution needs to be devised for this specific purpose first and foremost. It is also not the first time a company moves away from Ethereum over scaling concerns, nor will it be the last.
For Kin holders, there is nothing to be worried about right now, as their Ethereum tokens will not lose value all of a sudden. The transition still needs to be announced, as no timeline has been put in place at this time. By purposefully siding with the forked version of Stellar, Kik is still taking somewhat of a risk, albeit a manageable one.
The post Kik Severs all Ties With Ethereum as Scaling Problems Persist appeared first on NullTX....Read more
Bitcoin Cash, the “big block” project that forked away from the Bitcoin blockchain in August 2017, “hard forked” (split) into two different coins: “Bitcoin Cash ABC” (BCH ABC) and “Bitcoin Cash SV” (BCH SV).
At the time of writing, the Bitcoin Cash ABC chain has more accumulated proof of work, and its native currency, BCH ABC, is trading higher on (futures) exchanges. Most Bitcoin Cash ABC proponents, therefore, feel victorious — though many Bitcoin Cash SV proponents have not yet conceded defeat.
Well over a day since the split, here are the main takeaways and latest developments.
It turns out that the Bitcoin ABC development team had a trick up its sleeve — and not everyone is happy with that. The developers included an unannounced checkpoint in their latest software release, which was distributed several hours after the fork.
The checkpoint enforces inclusion of the first Bitcoin Cash ABC block as a new protocol rule. Any chain without this block would be considered invalid by this Bitcoin ABC software client. This has the effect that adversarial miners are unable to override (“re-org”) the entire Bitcoin Cash ABC chain — which was one of the potential threats posed by a “hash war.”
The checkpoint is controversial, however, as it implies central control from the Bitcoin ABC development team over the Bitcoin Cash ABC chain. Where nodes usually follow the longest valid proof-of-work chain, a checkpoint is perceived to override this proof-of-work consensus mechanism.
Of course, users ultimately decide which software they run and can opt to reject the checkpointed version of Bitcoin ABC. But this opens up the risk of the checkpoint causing another split — this time, on the Bitcoin Cash ABC chain, creating “Bitcoin Cash ABC Checkpoint” and “Bitcoin Cash ABC Classic.” (These names are just hypothetical, made up for the purpose of this article.)
That said, such a split seems unlikely at the moment. According to forkmonitor.info, it would cost around $1 million to pull off at the time of writing this article.
While Bitcoin Cash ABC proponents generally seem confident of their “victory,” many Bitcoin Cash SV proponents are not conceding defeat.
For example, nChain chief scientist and the main man behind Bitcoin SV, Craig Steven Wright, tweeted that the “hash war” is a marathon, not a sprint: implying attacks are still coming. Coingeek and its owner, Calvin Ayre, similarly claim the hash war has only just started. Other Bitcoin Cash SV proponents also anticipate other types of attacks (like a type of spam attack dubbed “Satoshi’s Shotgun”). All this will eventually obliterate the Bitcoin Cash ABC chain, they say.
There is no evidence of these types of attacks coming, perhaps with the exception of Satoshi’s Shotgun. The Bitcoin Cash network did experience a big spam-type of attack last week, and there was also much spam on the Bitcoin Cash network around the time of the hard fork. This may have been a precursor.
It is also true that the status of the Bitcoin Cash ABC network was unusual for the past day, as an excessive amount of hash power was securing it (excessive relative to its respective profitability, which suggests miners were mining at a loss). This was in part because the bitcoin.com pool temporarily diverted its hash power from mining Bitcoin to mining Bitcoin Cash ABC.
Over time, it is to be expected that the amount of hash power securing the Bitcoin Cash ABC chain will decrease to normal levels (normal relative to the expected profitability). The Bitcoin Cash ABC network would then also be more susceptible to 51-percent attacks.
With Bitcoin Cash split into two different coins, there is some contention about the names of both.
What is clear, however, is that the two main software implementations are called “Bitcoin ABC” and “Bitcoin SV.”
So far, Bitcoin Magazine has for the purpose of this article referred to the protocol and blockchain based on the Bitcoin ABC implementation as “Bitcoin Cash ABC,” while the protocol and blockchain based on Bitcoin SV has been called “Bitcoin Cash SV.” The respective currency tickers used have been “BCH ABC” and “BCH SV.” But not everyone uses these names and tickers.
Many Bitcoin Cash ABC supporters in particular instead consider their protocol and blockchain to be “Bitcoin Cash,” and some probably even prefer “Bitcoin.” They also claim the ticker “BCH.”
Many Bitcoin Cash SV proponents feel it’s too soon to rename anything, as they still think there will be only one chain left standing in the end: Bitcoin Cash SV, to be named “Bitcoin Cash” (or “Bitcoin”) with the ticker “BCH.”
Others have come up with different names and (especially) ticker symbols altogether. These most notably include “BAB” for BCH ABC and “BSV” for BCH SV. And some exchanges don’t list BCH SV at all.
For a more complete overview of the different names and tickers, see this article.
For more information about yesterday’s hard fork, see this article.
Thanks to Sjors Provoost for feedback and additional sources.
This article originally appeared on Bitcoin Magazine....Read more
Stablecoins continue to play a role of importance in the cryptocurrency industry. Binance, the world’s leading altcoin exchange, confirms that the USDC asset will be listed on the exchange and paired against Bitcoin and BNB.
No one can deny stablecoins are making their mark. Over half a dozen such currencies are in existence. All of them are pegged to the U.S. dollar. According to Stablecoin Index, they all struggle to maintain this peg on a regular basis. Even so, these assets make it more straightforward for consumers to purchase cryptocurrency.
Binance, the leading altcoin exchange, cannot remain behind in this regard. Starting this week, its users can deposit the USDC stablecoin. Trading against Bitcoin and BNB will commence at 10 PM EST. This will bring more liquidity to the platform. It also improves the appeal stablecoins have in this industry. When major platforms support such assets, they receive a bit more legitimacy.
The decision to support USDC is relatively simple. Binance acknowledges it is one of the more widespread stablecoins on the market. Its market valuation is higher than the Gemini Dollar and nUSD, for example. Several dozen exchanges and wallets now support USDC; thus, major platforms cannot remain behind. A growing competition among stablecoins can be beneficial to services who support them.
The stablecoin created by Circle continues to gain more attention. Circle and Binance are also “partners” as they co-founded the CENTRE Consortium. This project’s main goal is to standardize fiat on the internet. Stablecoins will have a big role to play in this regard. These digital dollars can be transferred globally without any drawbacks.
Binance is not the first major exchange to support USDC. Coinbase was among the first to enable support for Circle’s USD peg. As such, users can convert this stablecoin to U.S. dollars through both Coinbase and Circle itself. As Coinbase remains a key gateway to cryptocurrency, Binance can indirectly benefit from that popularity.
For Binance, this is the second major stablecoin to come to its platform. Similar to other exchanges, they allow users to trade Tether’s USDT against many top cryptocurrencies. The addition of USDC, while limited to Bitcoin and BNB, may be expanded upon in the future. Other platforms let users trade between stablecoins intermittently. Binance has, for now, no plans to engage in such activity.
What do you think about Binance pairing USDC against BNB and Bitcoin? Let us know in the comments below.
Images courtesy of Shutterstock.
The post Binance Now Supports Two Stablecoins Following USDC Addition appeared first on Live Bitcoin News....Read more
Gabor Gurbacs is confident that the approval of a bitcoin exchange traded fund (ETF) is inevitable. And he’s optimistic that the VanEck SolidX Bitcoin Strategy will be the first to deliver one to the world.
The director of Digital Asset Strategy at VanEck/MVIS, Gurbacs, as of late, has become a leading voice on the space’s ETF pursuit at a time when industry chatter on the topic has never been louder. If you haven’t found him extolling the benefits of a bitcoin ETF on Twitter, you may have come across his interviews on Anthony Pompliano’s podcast and Ran Neu-Ner’s Crypto Trader show for CNBC Africa.
“America wants a bitcoin ETF,” he told Ran Neu-Ner, “We’re close. It really depends on the SEC whether or when they’re going to approve it.”
To find out more about what an ETF is, what it would look like for bitcoin and who alongside VanEck is vying for one, check out our November cover story.
As confident as Gurbacs may appear, some might say the director is too confident in his surefire predictions. Historical precedent isn’t exactly in his favor, after all. The VanEck SolidX Bitcoin Strategy is one of only two proposals, the other being the Bitwise HOLD 10 Cryptocurrency Index Fund, that hasn’t seen a decision. As for the other filings, the SEC has rejected nearly every proposal that has come across its desk, although its last nine rejections, which were made at the staff level, are still pending review by the Commission.
Even against these odds, Gurbacs believes VanEck and SolidX is poised to buck the trend, especially since the asset management firm has set its own precedent that Gurbacs thinks will swing odds in VanEck’s favor: a history of bringing institutional products to market.
“VanEck has a history of building international stock and gold investing, in the U.S. and abroad,” Gurbacs said in an interview with Bitcoin Magazine.
VanEck introduced the first gold equity mutual fund back in 1968 (the VanEck International Investors Gold Fund, which is still around), at a time when the global gold market accounted for a little over $200 million and gold was fixed at $35 per ounce. Half a century later — and with the gold standard for currency backing now obsolete in the U.S. — gold is at $1,200/ounce with a $7.4 trillion market cap and is considered “a global safe haven asset,” as Gurbacs put it. He attributes this growth and the store-of-value status gold has enjoyed since the ’60s to the institutionalization that high-grade investment assets like an equity fund or an ETF provide to the market.
As his favoritism toward gold might betray, VanEck’s founder, John van Eck, was actually a direct student of Austrian-American economist Ludwig von Mises, “one of the earliest gold bugs in the U.S.” In the 21st century, VanEck’s pursuit of a finite, globally recognized asset is proving to be generational. VanEck’s current CEO, Jan F. van Eck, John van Eck’s son, has been a pioneer of sorts, as well, leading the company to introduce what Gurbacs called “some of the first non-traditional ETFs” to the U.S. market. Under his direction in 2006, for instance, VanEck launched the VanEck Vectors Gold Miners ETF, a “comprehensive portfolio of global gold miners,” according to VanEck’s website.
These gold-focused products were the successors both of the work John van Eck built with the world’s first gold equity mutual fund and of the philosophy his open attitude toward fringe assets instilled in his firm’s investment vision. Now, following in his father’s footsteps, Jan F. van Eck has taken to bitcoin with a similar forward-looking interest, just as his father did with gold decades earlier.
Jan F. van Eck, among others in the wider investment community, sees bitcoin as “somewhat of a digital gold,” Gurbacs said, so it makes sense that VanEck is going for gold again in its efforts to win the SEC’s approval for the world’s first bitcoin ETF.
VanEck’s interest in bitcoin also makes sense when you consider the market parallels between it and its old world predecessor. Much like its cryptographic counterpart, gold’s first investment vehicles were originally scrutinized as highly volatile, speculative assets, suffering from a stigma similar to the one that bitcoin has faced in its brief, nearly 10-year history.
“Back then, gold wasn’t sexy. It was like bitcoin a few years ago,” Gurbacs quipped.
The Bitcoin community and the crypto market as a whole seems to be clamoring for an ETF. But so far, the SEC has been holding off on giving its approval.
Gurbacs finds that the agency’s rejections stem from the same set of problems that applicants time and again have failed to address, namely “pricing, custody, liquidity and manipulation of the underlying asset.”
The sourcing data for these past filings comes from markets and exchanges that are too loosely structured for the SEC to take them seriously, as the underlying spot market is still unregulated on a federal level.
“Regulators were very keen on the fact that spot platforms like Coinbase, Gemini and the like are technically regulated entities but not really meant to be brokers for commodities,” said Gurbacs. “In some regulators’ eyes, these entities aren’t regulated,” even though platforms like Gemini and Coinbase are regulated on the state level in New York.
The cryptocurrency industry’s spot exchanges lack many of the investor protections that traditional markets feature by regulatory default, such as the surveillance-sharing strategies that the SEC has said are key prerequisites for getting an exchange trading product approved.
Gurbacs explained that, in the U.S., equities, commodities, futures and the ETF market make it so that “all of the market data is accessible to regulators should they subpoena or flag any suspicious activity.”
In an attempt to appease the SEC, applicants began to pivot toward the futures market in an attempt to give the regulator what it had been asking for: a market that is fully regulated under federal law.
VanEck actually started this trend, applying for the first bitcoin futures ETF at the tail-end of last year before the CME and Cboe began trading futures (this is why the SEC promptly asked the firm to withdraw its application twice).
The nine applications that were rejected at the staff level and then called up for revival by the Commission in September 2018 took a cue from VanEck, pricing their bitcoin futures ETFs from the now-live CME and Cboe futures contracts.
But these futures draw their own prices from the underlying spot markets of popular exchanges, something that played into the SEC staff’s initial rejection rationale. “CME Bitcoin futures are based on the CME CF Bitcoin Reference Rate (BRR), which aggregates bitcoin trading activity across major bitcoin spot exchanges,” the CME website states. For its part, the Cboe sources pricing data from the Gemini exchange, which Gurbacs points out only accounts for “a small percent of daily bitcoin trading volume on a good day.”
So, not only do these ETFs’ pricing sources lack a regulated market structure, but their transaction volume is too slim to guard against manipulation, the SEC’s thinking goes. And while they’re pending review by the Commission, Gurbacs thinks that, ultimately, there’s nothing novel enough about the filings to convince the SEC to change its mind.
“I don’t expect the SEC to walk back on its decision over those 9 ETFs because none of the providers solved any problems related to market structure issues that the SEC clearly outlined. I’m glad they’re reviewing and doing their jobs, but I don’t see any change.”
To avoid stumbling into the pitfalls of its competitors, VanEck has been careful to follow all of the SEC’s directions. In sum, this involved creating a market structure with more structural integrity than the one pitched to the SEC in other filings.
“We’ve met with regulators a few times and made sure we understand their questions, spending years — literally years — to answer those questions and build the proper market structure: what’s the right pricing, should surveillance be in place, how do you trade institutionally, how do hedge against market manipulation,” Gurbacs said.
These steps involve guaranteeing institutional-grade insurance for the fund, setting up proprietary custody arrangements with an undisclosed bank and settling the ETF’s shares in cash, rather than in-kind with bitcoin because, as Gurbacs put it, “unfortunately, the U.S. prime brokerage system and custody system is not set up to handle physical redemption in bitcoin right now.”
Proving its worth to the SEC also means that VanEck has to show that its pricing sources differ from competing applicants. To clear this hurdle, VanEck has built its own pricing source from the ground up, based on feedback from the SEC.
According to Gurbacs, the source draws from three established over-the-counter (OTC) pricing feeds from regulated broker dealers or affiliates of regulated broker dealers, though he couldn’t disclose further information as its currently not public. However, it is similar to an index that one of VanEck’s subsidiaries, MVIS, created in league with CryptoCompare. MVIS also features indices for many mainstream investment products, and Gurbacs believes that its bitcoin pricing feed subjects the fund to the same “rigorous practices, regulatory-driven disclosures and client protection rules” that the SEC wants to see in a bitcoin ETF.
The biggest underappreciated scaling platform for Bitcoin is the financial system.
Given VanEck’s commitment to fully addressing the SEC’s feedback, Gurbacs is hopeful that the VanEck and SolidX’s filing will be the first to win over the regulatory agency, and he attributes this optimism toVanEck’s “over a half of a century of history with U.S. regulators” in working to bring products to market.
Toward the end of our conversation, Gurbacs reiterated the company’s history of crafting first-of-their-kind products, returning to VanEck’s work with sponsoring the first gold equity fund in a nod to the commodities’ similarities to bitcoin. He hit on the meteoric growth gold enjoyed as a result of its institutionalization, and he stressed that bitcoin could experience a similar trend.
But when asked to clarify if he thinks that a bitcoin ETF would catapult the asset to new heights, Gurbacs hesitated. Instead, he insisted that it’s not about the price effect an ETF would have, but rather, what it will mean for legitimizing bitcoin and freeing up avenues for adoption.
“That’s tough for me. I’ll be up front: I do not like price prediction. I don’t think that’s the important part. Providing access to the assets in a regulated and globally accepted way is the important aspect of our efforts. I’m hoping that the impact is that people who previously couldn’t get involved with buying bitcoin will also get into the market; it’ll also help adoption.
“Bitcoin does not need an ETF, but it would benefit from having an ETF. An ETF would help bitcoin survive for at least 100 years. And I’m not kidding with this. There was gold trading before a gold fund or a gold ETF, but when the first product came out, the gold market grew tremendously, practically from $200 million to $7.4 trillion, and toward the end of the spectrum (5-10 years), volatility dampened and gold established itself as a global store of value — a government hedge, a hedge against global markets. Bitcoin is just like gold. It needs financialization in order to get more liquidity and achieve the status of a true store of value. Financialization is good for bitcoin. It helps liquidity, it helps adoption, it helps with scaling. The biggest underappreciated scaling platform for Bitcoin is the financial system.”
Bitcoin maximalists and the crypto community faithful might take issue with Gurbacs’ final statement. Some have made the argument that an ETF is fundamentally incompatible with bitcoin’s ethos. They have argued that instead of helping Bitcoin, an ETF would actually be a stain on the industry.
It seems that this is one area where bitcoiners and the SEC can find common ground, seeing as they’re both likely to argue that bitcoin should not be subsumed by the traditional financial sector. But Gurbacs, who holds that the “ETF is, in some ways the most trust-minimized of all trading vehicles,” believes that there’s common ground still that both sides are ignoring.
“We built our ETF so that it stays closer the core values of Bitcoin: holding physical bitcoin, providing verifiable, issued supply so there are no reserves that are unaccounted for.”
He added: “Bitcoin maximalists don’t talk about the middle ground where Bitcoin does fit into the U.S. capital market — and on the regulatory side, arguments also always go that it can’t fit in it.”
Rounding out our talk, Gurbacs echoed Hester Peirce’s own interview with Bitcoin Magazine, insisting that the demand for an ETF is too high to ignore. He also thinks that the SEC would be doing more harm than good by restricting free-market access to a sounder investment vehicle than is currently available on the market.
“The SEC’s job is to keep a fair and orderly market and protect investors. Regulators shouldn't say that ‘bitcoin is not a good asset and therefore we’re not going to let an ETF happen.’ They should evaluate whether the disclosures are right or not and let the market decide whether the asset has merit. I think regulators have made merit based decisions before, and regulators might have implied bitcoin has no merit. Given that this is a new asset class, they’re a little afraid.
“Right now the regulatory environment not approving an ETF fosters this grey-area activity. Lightly regulated trading platforms, which often operate without investors having any regulatory recourse, force investors into a grey area, versus giving them something like an ETF, a fund structure that has decades of history and fits into a proper regulatory regime and has customer protections. My biggest frustration is: how is it possible that a well-constructed, insured, liquid ETF is not ok — but it’s ok for random technology companies, with often no license, to sell bitcoin in the U.S.? It’s kind of weird. So, by not making a decision and not letting an ETF set a higher standard, this gray area of activity is fostered and the whole U.S. principle of free market competition is also violated, and the SEC’s principles of protecting investors and ensuring fair and orderly markets is violated.”
With VanEck’s current filing slated for a decision by December 29, 2018 — or February 28, 2019 at the latest, if there is a delay — Gurbacs might get his wish. Even if he doesn’t, the director insinuated that the firm will continue to wrestle for an institution-grade product, however long that may take.
“We’ll continue to engage and fight this fight to do our part as an asset manager to help the digital asset space mature. So it may not be a short fight — I don’t know. But we have done this with gold in the ’60s, and hopefully now, we’re building the right basis that will stay true to bitcoin as well as integrate it into the U.S. capital markets.”
This article originally appeared on Bitcoin Magazine....Read more
The Lightning Network continues to post steady growth.
According to data from 1ML, the network is now supported by roughly 4,069 nodes, which house just over 12,500 payment channels, an average of 10.91 channels per node (at time of publication). Most of this growth has come in the later half of 2018, as the average age of each node is just 137 days old.
With infrastructural growth, the network is also seeing an uptick in liquidity. The network’s collective capacity now stands at 198.32 BTC, which, at bitcoin’s current price, means the Lightning Network holds over $1 million worth of bitcoin for the first time in its less-than-one-year history. The average capacity for each node and payment channel comes in at 0.114 BTC ($633) and 0.019 BTC ($107) respectively, and with transaction fees at 1 sat (roughly $0.000056), the network’s promise to deliver low-cost microtransactions is holding up.
A long-awaited development in the cryptocurrency space, the progress of the Lightning Network has been watched with great interest by the community. Heralded as a potential solution to Bitcoin’s the scalability problem, the Lightning Network operates as a secondary layer on top of Bitcoin’s base network. After its launch in early 2018, the Lightning Network saw immediate interest from developers, who began building various Lightning applications on the network.
Alongside its use as a secondary layer for micropayments, many developers have taken notice of the Lightning Network’s potential impact on the world of smart contracts as well.
This article originally appeared on Bitcoin Magazine....Read more
With BTC price trading at its lowest since October 2017, ardent nocoiner Nouriel Roubini has taken another shot at Bitcoin.
Nouriel Roubini, currently a professor at the New York University Stern School of Business, takes every chance he gets to bash cryptocurrencies and their “bubbly” and “scammy” nature.
Naturally, as the cryptocurrency market plunged this week and as Bitcoin price 00 lost over 13 percent of its price overnight, the NYU professor showed no remorse.
“I could gloat about Bitcoin collapsing 10% in a day to $5700. But that is still some way to ZERO where Bitcoin belongs. Actually since Bitcoin is The Mother of All Toxic Pollutions & Environmental Disasters its true fair value is highly NEGATIVE with the right externality tax.”
I could gloat about Bitcoin collapsing 10% in a day to $5700. But that is still some way to ZERO where Bitcoin belongs. Actually since Bitcoin is The Mother of All Toxic Pollutions & Environmental Disasters its true fair value is highly NEGATIVE with the right externality tax
— Nouriel Roubini (@Nouriel) November 14, 2018
Roubini has definitely been a colorful critic of both cryptocurrencies and blockchain technology. While he was reportedly one of the few economists who accurately predicted the financial crisis of 2008, the professor does seem to have a strange thing going on for the word “mother.”
Speaking at a hearing in front of the Senate Committee on Banking, Housing and Community Affairs, he called cryptocurrency “the mother of all scams and bubbles.”
While it’s true that bitcoin collapsed 10 percent this week, it’s the only verifiable fact in the professor’s statement. Meanwhile, Bitcoin has been growing with 0.347 percent per day on average since January 1st, 2011 – something which the professor conveniently ignores.
Another glaring omission is the Bitcoin network having an uptime of 99.98%. In other words, confidence in this nascent, neutral, global monetary network is only expected to increase with expanding hash rate, particularly in the wake of the 2008 financial crisis.
Roubini also hits Bitcoin with the “save the planet” angle referring to Bitcoin as a “The Mother of Environmental Disasters” in reference to what he sees as wasteful energy consumption.
Recent studies, however, such as by a clean energy technology researcher at the University of Pittsburg conclude that Banks use three times more energy than Bitcoin.
What is more, the scientist also outlined that as the mining industry grows, its electricity usage will likely decline over time as it moves towards more efficient and renewable sources of energy.
What do you think of Nouriel Roubini’s latest Bitcoin outburst? Don’t hesitate to let us know in the comments below!
Images courtesy of Shutterstock
The post ‘I Could Gloat’ – BTC Price On Its Way to Zero, Nouriel Roubini Says appeared first on Bitcoinist.com....Read more
As is usually the case in the cryptocurrency industry, arbitrage opportunities are not exactly difficult to come by. Today is no different in this regard, primarily because the spreads of certain altcoins across different exchanges are shaping up rather nicely. There’s a lot of good money to be made in this regard, albeit some trades may involve less liquidity compared to others.
It is not entirely surprising to see a new QTUM arbitrage gap appear all of a sudden. More specifically, there has been an opportunity involving QTUM nearly every other day this week, as the price on Kraken remains significantly lower compared to Poloniex, KuCoin, and Gate. A very easy flip for up to 2% profit, as all of these platforms should provide sufficient liquidity to make something exciting happen.
A similar arbitrage opportunity still exists for Monero. Buying XMR on Kraken will let users sell on Livecoin, Gate, HitBTC, or Poloniex for up to 2.75% profit. It is not the first time XMR prices on Kraken remain very low for some time, and it seems things may not necessarily change as the week progresses. As such, arbitrage opportunities will remain visible where XMR is concerned.
Over the past few weeks, there have been quite a few arbitrage opportunities involving Bitcoin Gold. Why that is the case, remains anybody’s guess. Even today, there is a good chance to net a quick 12% profit by simply flipping BTG between exchanges. Buying on HitBTC, Sistemkoin, Koineks, CEX, and Bitfinex to sell on Gate will always yield double-digit percentile profits.
For those who are looking to buy and sell Stellar Lumens for a quick profit, buying on Kraken seems to be a good idea first and foremost. By selling the funds on KuCoin, Bitexen, HitBTC, or Gate, one can next easy profits. Buying on Koineks and selling on these exchanges is also profitable. Arbitrage traders can easily pocket 1% profit for doing virtually nothing.
When it comes to flipping Bitcoin Cash for a profit, numerous gaps have opened up. This is primarily due to deposits and withdrawals being frozen, although these gaps may persist once market activity resumes. For now, Buying on Gate, Kraken, HitBTC, or CEX seems like a good idea, assuming prices don’t change much. OKEx and Livecoin have a very high price for BCH right now. If this gap persists, traders can pocket a healthy 17% profit in quick succession.
Even though Ethereum price discussions have taken a backseat for some time no, there are still plenty of arbitrage options to explore. Buying on HitBTC, Gate, OKEx, Kraken, KuCoin, or Binance will allow for quick and profitable flips on Livecoin. Buying on Kraken and selling on OKEx, Poloniex, KuCoin, or HitBTC can also yield similar profits of roughly 2%. Very appealing opportunities, especially when considering how few people actively look at Ethereum trading right now.
Information provided by Arbing Tool.
The post Crypto Arbitrage Today: Easy Profits With QTUM, XMR, BTG, and ETH appeared first on NullTX....Read more
The U.S. Securities and Exchange Commission (SEC) has settled charges with two initial coin offering issuers. These cases are the commission’s first to impose civil penalties “solely for ICO securities offering registration violations.” Both companies have agreed to refund investors, pay penalties, and register their tokens as securities.
On Friday, Nov. 16, the SEC announced “settled charges against two companies that sold digital tokens in initial coin offerings (ICOs).” The agency explained that Carriereq Inc. (aka Airfox) and Paragon Coin Inc. both “consented to the orders without admitting or denying the findings,” elaborating:
These are the commission’s first cases imposing civil penalties solely for ICO securities offering registration violations. Both companies have agreed to return funds to harmed investors, register the tokens as securities, file periodic reports with the commission, and pay penalties.
The two companies’ tokens are neither registered with the SEC nor qualified for an exemption to the registration requirements.
Stephanie Avakian, co-director of the SEC’s Enforcement Division, emphasized that “companies that issue securities through ICOs are required to comply with existing statutes and rules governing the registration of securities.”
The SEC further detailed:
The orders impose $250,000 penalties against each company and include undertakings to compensate harmed investors who purchased tokens in the illegal offerings.
These two cases follow the agency’s first non-fraudulent ICO registration case of Munchee Inc. The SEC did not impose a penalty in that case because the company stopped its offerings before delivering any tokens and promptly refunded investors.
Both Airfox and Paragon conducted token sales last year after the SEC warned that ICOs can be considered security offerings in its DAO report, a landmark paper that serves as the defining document for ICOs to avoid being categorized as securities in the U.S.
Boston-based Airfox raised approximately $15 million by selling 1.06 billion of its tokens to more than 2,500 investors globally through various websites that it controls. The company claims that the funds would be used “to finance its development of a token-denominated ‘ecosystem’,” the SEC described.
Established in July last year, Paragon sold its tokens to approximately 8,323 investors, including those in the U.S. The company “raised approximately $12 million worth of digital assets to develop and implement its business plan to add blockchain technology to the cannabis industry and work toward legalization of cannabis,” the commission noted.
Paragon issued a statement on Friday confirming the settlement. CEO Jessica Versteeg said that this settlement “will effectively put an end to the uncertainties of the legal status” of her company’s token.
What do you think of the SEC settling charges with the two ICO companies? Let us know in the comments section below.
Images courtesy of Shutterstock and the SEC.
Need to calculate your bitcoin holdings? Check our tools section.
Now that the Bitcoin Cash hard fork has successfully completed 24 hours ago, the battle lines have been drawn. While the total picture still remains a mess, it seems safe to assume the Bitcoin Cash as people know it is pretty much dead. BCHSV and BCHABC are still vying for control, albeit the outcome still remains rather unclear. On the price front, interesting changes have become apparent as well.
No one will be surprised to learn the value of BCHABC has taken a bit of a backseat. It went through a major price run yesterday, and a correction of roughly 8% appears more than fair. It still remains the more valuable of the two forked currencies, although it has lost a bit of its edge in the past few hours. As this trend continues, the future BCHABC price remains rather unclear.
For the BCHSV price, things are looking up a bit. After hitting a 24-hour low of 0.0131 BTC, the price has rebounded to 0.0194 at the time of writing. It is still 50% lower compared to its all-time high recorded prior to the fork, but that is only to be expected. Even so, the net gain in the past 24 hours seems to indicate this battle for control is far from over at this point.
Users on social media are not too pleased with the way things are going. Ghostwalker is one of those individuals who would rather see exchange remove both BCHABC and BCHSV altogether. It is a bit of a maximalist attitude, as one of them has to emerge as the new Bitcoin Cash. There is still a genuine grudge over that forked currency among Bitcoin supporters, by the look of things.
— ghostwalker (@ghostwa93207904) November 16, 2018
Others see this ongoing spat as a great time to create innovative memes. For Obysth, the meme where both Roger Ver and Craig Wright are supposed to “kiss and make up” is quite entertaining. It seems unlikely both sides will ever see eye-to-eye again, although nothing is impossible in the cryptocurrency industry these days.
— Obysth (@AltLoading) November 16, 2018
One aspect about this “hash war‘ is how things evolve on the mining front. While Bitcoin ABC – and Bitcoin Unlimited – still control the majority of the hashrate, the chain barely remains ahead of Bitcoin SV. This is primarily because Bitcoin.com’s mining power decreased after forcing miners to support ABC for 24 hours. There is still a 21-block gap between both chains, but that was over 50 blocks earlier today. Both chains seem to note a decrease in hashpower throughout the day, though, which is interesting to keep an eye on.
For now, it is still unclear what will come next. The prices indicate BCHABC is in the lead, the hashpower is there to confirm it. Unlike the Bitcoin and Bitcoin Cash fork split, however, these two chains effectively go toe-to-toe in every regard. One has to wonder where this will all end, and what it will mean for the future of Bitcoin Cash as a brand. A lot of questions remain unanswered, which is not necessarily a good thing.
The post 24 Hours After the BCH Fork: Hashrate Dips and Price Changes as BCHABC Can’t Break Free appeared first on NullTX....Read more
The U.S. Securities and Exchange Commission (SEC) has agreed to settle charges with two startups that sold tokens through Initial Coin Offerings (ICOs) in 2017. The companies were charged by the SEC for running their ICOs after the regulator clearly defined such offerings as unlicensed securities in its DAO Report of Investigation. The startups indicted by the SEC are Boston-based Airfox, which sold $15 million worth of tokens, and Paragon Coin, which raised $12 million selling tokens.
“We have made it clear that companies that issue securities through ICOs are required to comply with existing statutes and rules governing the registration of securities,” Stephanie Avakian, co-director of the SEC’s Enforcement Division, explained in a release. “These cases tell those who are considering taking similar actions that we continue to be on the lookout for violations of the federal securities laws with respect to digital assets.”
The two cases happen to be a first for the commission where civil penalties were imposed for "ICO securities offering registration violations," and they follow the commission's first non-fraud case against Munchee Inc. in 2017, when it stopped the startup's token offerings and instructed the company to return proceeds to investors.
The companies involved have, however, agreed to settle the case without admitting to or denying the findings from the regulator. Each company will pay a $250,000 fine to the SEC and compensate investors who purchased the tokens. Both startups are also required to register their tokens as securities and to file periodic reports to the SEC.
Steven Peikin, co-director of the SEC’s Enforcement Division, believes the new model affords investors the ability to be compensated for purchasing unregistered securities.
“By providing investors who purchased securities in these ICOs with the opportunity to be reimbursed and having the issuers register their tokens with the SEC, these orders provide a model for companies that have issued tokens in ICOs and seek to comply with the federal securities laws.”
This is the SEC's second settlement in less than 30 days. Just last week, it reached an agreement to settle charges leveled against the founder of decentralized exchange EtherDelta, Zachary Coburn. Coburn, who had been accused of running an “unregistered national securities exchange,” agreed to pay more than $300,000 in penalties. As detailed in its end-of-the-year report, 2018 has been a busy year of enforcement for the regulatory agency as it continues to crack down on unregistered cryptocurrency companies.
This article originally appeared on Bitcoin Magazine....Read more
Regulating the cryptocurrency industry requires a multi-pronged approach. Japanese officials have shown an open mind toward introducing new guidelines. Their current plan is to regulate specific wallet service providers. This will help bring more legitimacy to the cryptocurrency industry and the associated companies.
Bitcoin regulation in Japan has taken on an interesting aspect. Self-regulation seems to be the primary approach. Exchanges have put together their own regulatory body to introduce new guidelines. That approach is working well, although an open dialog with the government is maintained. For the Japanese FSA, now is the time to look beyond just the exchanges.
Officials are now probing the various cryptocurrency wallet providers. A new regulatory framework will be put together over the coming months. Interestingly enough, not all service providers will be subject to these new rules. The first order of business is to tackle those providers focusing on custodial services. That includes any crypto wallet service maintained and controlled by a third party.
Cryptocurrency users across Japan have numerous options to store funds safely. Companies developing mobile applications where user control funds are not subject to this new framework. Hardware wallet manufacturers are also exempt from any future rules. Custodial services are often provided by exchange and online asset storage providers. Devising new rules for those companies is, in the eyes of the FSA, direly needed.
Every regulatory effort pertaining to cryptocurrency has to do with money laundering concerns. The global nature of Bitcoin and altcoins makes them appealing to all kinds of users. Criminals tend to favor Bitcoin and other similar currencies over the years. That money has to be stored somewhere. Custodial wallet solutions will, at least in Japan, no longer be an option once this new framework is put in place.
For now, there is no official timeline regarding these new rules. The FSA is still in the process of reviewing how they plan to tackle this aspect. Bringing more legitimacy to the Bitcoin industry remains the number one priority. Wallet service providers play an integral role in this ecosystem. Those who refuse to comply with the new rules will be forced to shut down in Japan.
It is the first time regulators go after custodial service providers. Exchanges face a lot of regulatory scrutiny on a global level. For wallets, things are a bit different. Given the growing number of solutions storing funds on behalf of the asset owners, additional regulatory guidelines seem to be the next logical step. Depending on how Japan handles this aspect, other countries may follow suit in the coming years.
What are your thoughts on regulating crypto wallet providers? Will it harm or help the crypto market? Let us know in the comments below.
Images courtesy of Shutterstock
The post Japan’s FSA Aims to Regulate Custodial Cryptocurrency Wallet Providers appeared first on Live Bitcoin News....Read more
DiceLand technology, developed by WestLand Storage, was first used on the whole region, and more precisely on an island in the Caribbean. This was the first time in the history of Blockchain, when the development was applied in full on such a significant scale. And taking into the fact that the technology is aimed at increasing the liquidity of real estate and simplifying the process of investment and profit, it can be argued without a doubt that this has a positive effect on the profits of the company’s investors.
This is evidenced by the fact that the company has provided its customers with access to investing in real estate on this island. The daily income of investors amounted to 2% or more, which is twice the income from objects not located on this island. This fact can be regarded as another confirmation of the efficiency of the technology and its development.
Considering the progress demonstrated by the company, it can be concluded that the technology is almost at the final stage of implementation and can be applied in real conditions now. In preparation for this, the company has already established subsidiaries in the USA, China, and Australia, because these countries will become the starting points for the globalization of this technology.
And even though the island has become a kind of experiment in demonstrating the work of the DiceLand technology, we can safely say that WestLand Storage does not slow down and continues its development along with investors, which are becoming more and more every day. This is a promising company with technology that one day will change the real estate market forever.
Author: Jared Smith, Blockchain Expert
The post Diceland Technology’s Success — the First Island on the Blockchain appeared first on Live Bitcoin News....Read more
The smoke is still clearing from Bitcoin Cash’s hard fork, but exchanges have already moved in to add support for the products of the skirmish.
On November 16, 2018, what was intended to be a routine hard fork upgrade of the Bitcoin Cash blockchain became a struggle for hashing power and chain dominance as Bitcoin Satoshi’s Vision (SV), led by Craig S. Wright, attempted to wrestle control over the Bitcoin Cash blockchain from its original client, Bitcoin ABC.
Bitcoin ABC (thus far) has strong-armed Bitcoin SV with its mining power and held onto its position as the dominant chain, but yesterday's showdown still culminated in a coin split that left the network with two rival coins, which, for the purpose of this article, we’ll refer to as BCHABC and BCHSV.
And this split has left a mess of potential markets for exchanges to manage. In the aftermath, they’re stuck with either choosing to support both coins, default to the ABC chain as the real BCH or sit tight until they feel comfortable making a decision either way. Not every exchange is on the same page for what each coin’s ticker should be either, and some seem content to ignore the forks’ janus-faced by-products and carry on with their usual bitcoin cash trading.
A handful of exchanges have announced that they will be supporting both coins for the time being.
Some, like Poloniex, HitBTC and Bittrex got ahead of the game by offering futures trading between the two coins before the hard fork even took place. Announced on November 7, Poloniex first featured futures in the run up to the fork and, since the coin split, it has integrated support for coins under the tickers BCHABC and BCHSV in the form of BTC and USDC trading pairs.
We’ve finished converting all BCH balances to BCHABC and BCHSV. The BCH market is now disabled. BCHABC/BTC, BCHSV/BTC, BCHABC/USDC, and BCHSV/USDC markets are open. Deposits and withdrawals of BCHABC and BCHSV are still paused, and will remain paused until the networks stabilize.— Poloniex Exchange (@Poloniex)
HitBTC revealed in a blog post on November 9 that it would open pre-fork trading for both BCHABC and BCHSV. On November 13, top-5 exchange Bitfinex also followed the trend, noting that it would roll out pre-fork trading for ABC and SV in the form of chain-split tokens (CST). These before-the-fact trading vehicles could be created by or redeemed for bitcoin cash at any point and, since the fork, they have been replaced with the actual forked coins under the tickers BAB (for ABC) and BSV (for SV) on Bitfinex and BCHABC and BCHSV on HitBTC.
Other top exchanges, like Binance and Bittrex, played the fork patiently, waiting to see if the Bitcoin Cash network would split before restructuring its bitcoin cash trading. Binance, for instance, waited for the conflict to die down before blogging that it would open markets for BCHABC and BCHSV against BTC and USDT.
Unlike its peers, Bittrex is waiting a bit longer before it treats SV with the same gravity as its BCH predecessor. On November 7, the exchange published a blog post that said it would default to ABC’s implementation as the main chain leading up to the fork, while also assuring customers that their accounts would be credited with the split BCHSV coins following the fork. So far, BCH remains as the only coin with trading support on the exchange, as it is waiting for further clarity before it decides to restructure its markets.
“The ‘BCH’ ticker will remain the Bitcoin ABC chain before the hard fork block. Bittrex will observe the Bitcoin Cash network for a period of 24 to 48 hours to determine if a chain split has occurred and the outcome,” the post reads.
Kraken took Bittrex’s (tentative) support of ABC as the main chain a bit further. Announcing in a November 10 blog post that, “[initially, it] will only support Bitcoin ABC.” Kraken went on to reveal that it would not automatically accommodate chain-split coins. Instead, users would have to claim these manually by moving their coins off the exchange.
“We will not support any alternative chains for funding or trading on the day of the fork. We will then monitor the situation in the weeks and months after the fork and evaluate whether or not any changes to our stance are warranted, including the possibility of supporting an alternative chain. However, we make no promise or guarantee that any alternative chain will be supported … If you want the option to preserve/claim tokens on alternative chains, you must withdraw your BCH from Kraken prior to funding being disabled on November 15th. By leaving your coins on Kraken through the upgrade, you are potentially forfeiting any coins on alternative chains that might otherwise be available to you,” the post reads.
In the same post, Kraken signaled that, above all else, it would err on the side of caution, writing, “After the fork we will not enable BCH funding until we think it is safe to do so, and we do not know in advance how long this may take.”
As Binance, Bitfinex and Poloniex’s actions suggest, in the comedown of the forking euphoria, some exchanges have surrendered to the reality of Bitcoin Cash’s network now housing two competing coins. Others, like Bittrex and Kraken, are biding their time to see how this continues to unfold — after all, the fork isn’t even 24-hours old yet.
Still other exchanges have also opted to wait to see how they should proceed, many of which have suspended deposits, withdrawals and trading for BCH until the dust settles. Coinbase announced that it will “ensure that customers have access to their funds on each chain” if they’ve left their BCH on Coinbase platforms.
This article will be updated periodically to include other exchange support news as the story develops.
This article originally appeared on Bitcoin Magazine....Read more
It’s been 10 years since the birth of bitcoin. At its peak last year, the crypto currency had a total market capitalization of $823.8 billion and had become an independent economy that shouldn’t be ignored. This rapidly emerging financial market has already had global spot and futures trading. However, there is still a lack of a low-risk fixed income financial product to meet the needs of risk-averse investors, or for investors who would like to diversify their assets allocation.
Recently, Vocean, a blockchain project led by Wall street executives, has entered into the public sight with a goal of the trillion-dollar blue ocean market – crypto bonds.
In the traditional financial market, the global equity assets are $80 trillion, while the low-risk fixed income credit assets are $100 trillion. In parallel, a number of companies that are of comparable scale to Binance in the crypto bond market are emerging. Vocean is founded with such ambition. The infrastructural development is getting close to completion, and Vocean is about to make its crypto bond debut in November.
Vocean is a decentralized financial contract ecosystem. By building a complete crypto currency financial contract infrastructure and supporting facilities, it allows users to initiate a variety of standardized or customized financial contracts, including bonds, options, swaps and other financial products and derivatives easily and affordably. It also provides liquidity management and quick asset allocation management services with risk control for financial contracts based on Vocean’s smart contract issuance.
Any blockchain project can issue their crypto bond via Vocean platform. In order to build up good business foundation, Vocean is only considering Crypto exchanges and mining pools with stable cash flow, as well as top-50 premium blockchain projects as the early bond issuers, which have relatively stronger bond payability, and attract large number of users in a short time.
The process of issuing crypto bonds on Vocean platform could be greatly simplified compared to the traditional bonds, and the risk control measures such as information disclosure and credit rating could be improved. The specific process of bond issuance is as follows:
As a very important financial product, bond has always been in huge demand from both the project side and the investors’ side, so as in the crypto field.
First of all, bond issuer has to disclose more project details to the public. Although the blockchain technology advocates the spirit of openness, justice and autonomy, it has not yet established a more efficient information communicating mechanism, thus most users and investors are not informatively in sync with the project. By issuing bonds through Vocean, it has to go through a set of open, transparent and comprehensive credit rating analyses and evaluation initiated by the community participants and be required to publicly disclose critical information on a regular basis. Under this rating mechanism, the better the project, the more willingly the project like to increase its transparency and strengthen its branding and reputation by issuing bonds.
Secondly, institutional investors shall be more willing to enter the crypto market, supported by the rigorous rating mechanism. If the project wants to attract the support of institutional investors, issuing bonds is one of the ideal approaches.
At the same time, benefit from the characteristics of the crypto currency, projects can issue bonds with their own tokens to effectively reduce circulation in the public market. Especially in the current bear market, the project side can easily manage its market value by reducing the circulation in the short term.
With increased reliability of credit rating mechanism, combined with performance evaluation, it will be easier for institutional investors to make investment decisions. Especially in the current bear market, institutional investors have to spend more effort on managing asset allocation. By investing in high-quality bonds, financial institutions could have better cash flow and higher returns.
By reinventing the crypto bond market, Vocean is dedicated to transform the traditional bond market using blockchain technology.
In the traditional financial market, the circulation of bonds relies on the credit endorsement from regulators and intermediaries. In addition to regulatory approval, the bond issuance shall involve underwriters, auditors, legals, third party credit rating agencies, custodians, registrars, and settlement agencies with large cost involved. The intermediaries involved can always lead to information asymmetry and insider tradings, and financial systems isolation. It increases difficulties to manage cross-system risks, which has been identified as the major cause of financial crisis.
On August 13, the world bank announced the issuance of the first crypto bond, Bond-i, using blockchain technology. Since then, Thailand, China and some other countries have started to experimenting bonds issuance. In no time, Vocean will reach traditional bond market by leveraging its advanced technology and business model.
The core team members of Vocean come from higher management of top Wall Street financial institutions. The founder, Jerry Zhong, graduated from Tsinghua university, holds an MBA degree from UC Berkeley and was previously Vice President of Morgan Stanley. He was responsible for issuing derivatives and developing of large-scale applications at Morgan Stanley. He led the development team at public-listed technology company NextLink Communications and also founded UC Gateway and Wisetel Consulting. Daniel Xue is from GE Capital and led several billion-dollar project financing and management. Jason Yu was used to act as senior project manager at Cisco and Oracle.
In addition, the Vocean team has further established good cooperative relationships with other excellent teams, including Cosmos, the world’s top cross-chain technology research and development team. The inter-chain management protocol developed by Vocean team is able to resolve the difficulties of coordination and management of transactions on different chains.
Vocean has become the first project co-incubated by BiboxLab, an incubator owned by the world’s leading crypto exchange Bibox, and Node Capital, a world leading crypto fund, with investments from South Korea’s top token fund Blockwater and Alpview Capital, Lockwood Group and Alignment Group.
This is a sponsored press release and does not necessarily reflect the opinions or views held by any employees of NullTX. This is not investment, trading, or gambling advice. Always conduct your own independent research.
There has been a massive influx of stablecoins in the cryptocurrency industry. The purpose of these currencies is very simple: maintain their peg to the US Dollars at all times. Surprisingly, that is a very difficult task for nearly all stablecoins, especially during these volatile times. None of the current stablecoins on the market can effectively do so without interruptions.
It is quite interesting to see how volatile stablecoins can get despite their “guaranteed” backing by $1 at all times. Every Tether, USD Coin, Paxos, Dai, BittUSD, nUSD, TrueUSD, and Gemini Dollar needs to maintain a value of $1 at all times. After all, these currencies are only worth that amount, and never more or less.
In the real world, however, that situation is a bit different. Right now, none of these stablecoins is worth exactly $1, although some of them are relatively close. As such, one has to wonder if the concept of a stablecoin even exists in this day and age. As these currencies cannot hold their value whatsoever, they are anything but stable coins in that regard.
Over the past week, all stablecoins have had some significant deviations in quick succession. That alone is pretty worrisome in its own right, although some coins are off far worse than others. At the lowest point, bitUSD dropped to $0.9 for a little while, despite it being pegged to one US Dollar. Gemini Dollar also had a peak of $1.18 at one point, something that should not be possible under any circumstances.
The story doesn’t end there, as bitUSD appears to be the more volatile stablecoin at this time. Its value surpassed $1 earlier today, hitting $1.0629. This is in stark contrast to Dai, which hit as low as $0.9848 at nearly the same time. All of this seems to indicate the volatility is quite visible in the stablecoin department, rather than just for Bitcoin and top altcoins. Not necessarily an awe-inspiring trend by any means, albeit that is only to be expected.
Another interesting aspect is how most of the stablecoins that are not Tether’s USDT have a pretty similar market cap. TrueUSD sits at $160.9m, whereas Paxos has $131.48m and USD Coin sits at nearly $144m. BitUSD and Gemini are only $4.5m apart, whereas nUSD is not getting too much attention as of yet. A very interesting trend regardless of how one wants to look at things. Surpassing USDT will be incredibly challenging for all of these stablecoins.
All of this creates more market volatility first and foremost. After all, these coins have one simple task, and none of them does an exceptional job in this department. It raises some questions regarding the ‘stable’ nature of these assets, albeit one can easily see why these currencies are so popular among cryptocurrency traders and enthusiasts.
The post None of the Stablecoins Maintain Their Peg Against the US Dollar appeared first on NullTX....Read more