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Spanish cryptocurrency exchange 2gether has announced that it won’t compensate users for the full amount of bitcoin (BTC) and ether (ETH) stolen in August 2020. The exchange said that almost 5,000 of its customers will receive their cryptos under the compensation plan. Company Asks 9% of Its Users for More Time to Gather the Remaining Funds According to the announcement, 91% of the users will be fully compensated as part of the firm’s capital round to gather enough funds for the purpose. The crypto exchange argues that it cannot pay the full amount because of the higher prices seen in BTC and ETH. However, the company offered some solutions to the 9% of users affected by the measure: The company has offered these users the best solution it can reach with the funds raised in this round — a solution that involves replacing a maximum of 99% of the BTC and ETH stolen and not converted, and at a minimum, the value in euros that was lost at the cyberattack time. It excludes what was converted into capital or 2GT tokens, depending on the amount stolen in each case. Customers can choose to either accept or reject the proposal made by 2gether. If the users decide to reject the mentioned solution, the exchange asks them to give the company “more time to try recovering the total amount of funds as soon as possible.” Still, per a statement sent to news.Bitcoin.com, 2gether clarified that they’re “aiming to reimburse the full amount for everyone.” The Spanish crypto firm also said it will enable a feature in its app to allow users to proceed with the solution offered. However, the company didn’t provide a timeline to obtain the remaining funds for the full compensation. Per a newsletter sent via email to all 2gether customers, the capital round gathered over 1.5 million euros ($1.8 million). Controversy on Social Media After the Announcement However, the announcement sparked controversy among the crypto exchange’s customers on social media. On Twitter, a user expressed his disappointment on the matter: Total disappointment. When subtracting the funds, you take from us all equally (well, not those who had BTC and ETH). Now it’s time to return, and you decide to shut up, giving everything back to some, to others 60% and to others between 30% and the rest to be paid in 4 years. Was this the fair thing to do? On Aug. 1, 2020, 2gether suffered a cyberattack that affected several crypto trading accounts. At the time, the amount stolen by the hackers was over 1 million euros ($1.2 million as of press time). What are your thoughts on this announcement? Let us know in the comments section below. View the full article

As Iran experiences rolling electricity blackouts, the country’s authorities have responded to the crisis by targeting bitcoin mining farms. The sanctions-hit country’s campaign against miners has seen a total of 1,600 mining centers being shut down. This Iranian blitz on cryptocurrency miners, however, appears to contradict the country’s previous policies towards cryptocurrency mining. The Real Cost of Electricity in Iran According to a report, the Islamic Republic has previously “authorized 24 bitcoin processing centers that consume an estimated 300 megawatts of energy.” Furthermore, Iran’s “electricity cost of around 4 cents per kilowatt-hour,” as well as the tax-free zones in the south, helped to attract “tech-savvy Chinese entrepreneurs.” Still, the report explains that other elements inside the Iranian government are more concerned with “how much money is sent abroad and controlling money laundering.” Across the country, bitcoin is used by business people and individuals to bypass the United States’ “banking sanctions that have crippled the economy.” Although Iran’s electricity costs are more competitive relative to those of its peers, the report, however, suggests that the country’s bitcoin miners have a different view. As Mohammad Reza Sharafi, the head of the country’s Cryptocurrency Farms Association hints, Iran’s electricity costs are not viable. He suggests that they in fact could be “discouraging investment.” The report quotes Sharafi stating: Activities in the (bitcoin mining) field are not feasible because of electricity tariffs. In explaining this contention that Iran’s electricity tariffs are high, Sharafi reveals that from permits that were given to 1000 investors, “only a couple dozen server farms are active.” The rest of the miners seem to be put off by the fact that the power tariffs they face are five times more than those of “steel mills and other industries that consume far more power.” Decades of Mismanagement In the meantime, the same report also elicited comments from Kaveh Madani, the former deputy head of Iran’s Department of Environment. Madani is quoted disputing the narrative that bitcoin mining activities consume excessive power. According to him, while “bitcoin is an easy victim” the real cause of the shortages seems to be the “decades of mismanagement”, which led to the “growing gap between Iran’s energy supply and demand.” Also undercutting the Iranian government’s claim that bitcoin is consuming too much electricity is an estimate by its own telecommunications ministry. According to this ministry, bitcoin’s share of Iran’s total energy production is just 2%. Do you agree that bitcoin mining in Iran is the cause of electricity shortages? Tell us what you think in the comments section below. View the full article

A major Russian bank revealed an upcoming digital asset launch, which complements another of its latest crypto-related moves. Sberbank applied to register a platform to issue a token named “Sbercoin.” Bank Expects the Stablecoin Could Launch in the Spring of 2021 During an interview with 1prime, Anatoly Popov, Sberbank’s deputy chairman, said the bank made the correspondent filings with the Central Bank of Russia (CBR) “early in January.” The executive is hopeful that his bank’s application will be approved by the CBR, following the crypto law that came into effect in Russia on Jan. 1. Popov suggested the token would be a stablecoin pegged to the ruble: Under the law, digital financial assets can be issued on a registered platform, and among other things, one of the possible financial assets will be a fiat coin for a ruble, and, in fact, the bank is technologically ready to issue and work with this instrument. The bank already conducted internal tests with the token, Sberbank’s deputy chairman clarified. He added that they’re seeking “great opportunities” by adopting crypto-related technologies. As for the expected launch date, the executive believes that Sberbank could launch the stablecoin in the spring of 2021. But this is not the first time that Popov mentioned the possibility of launching a ruble-pegged stablecoin. In 2020, Popov and Herman Gref, Sberbank’s chairman, talked about the idea of launching a token that could become a “sentiment tool” for other digital assets. Sberbank’s Interest in the Crypto Industry Ahead of the crypto regulation taking effect in Russia, Sberbank unveiled its initial plans related to the crypto industry. As news.Bitcoin.com reported in December 2020, the Russian banking heavyweight was considering launching its stablecoin by teaming up with JPMorgan. However, during the interview with Popov, there was no mention of JPMorgan’s involvement in the project. Also, Sberbank revealed it wanted to build its own “blockchain platform, which provides services for the purchase of digital financial assets.” What do you think about this upcoming Russian stablecoin? Let us know in the comments section below. View the full article

Long term Wall Street bear and bitcoin holder, David Tice predicts that the stock market will crash fall by 30% in a retreat that will persist for two years. Although the veteran investor is not giving the specific commencement date for this downturn, he warns that when it breaks, “it’s likely to break hard and cause investors to suffer for a long time.” Biden Administration Policies In remarks made during an interview, Tice, who claims to be a “believer in the Austrian School of Economics”, points to the “business-unfriendly policies from Washington” as one of the key reasons for his pessimism. Specifically, the veteran investor attacks some of the Biden administration’s early decisions saying: We now have a Biden administration that has a Senate and a House. They’re likely to enact very much more anti-capitalist policies. They have already raised the minimum wage. That’s going to hurt earnings on the cost side. Tice also says that “easy monetary and fiscal policies that support money printing will also sting Wall Street.” He concludes that this is “not good for financial markets.” Meanwhile, the veteran investor, who is sometimes referred to as a “perma” bear, lays into the current enthusiasm surrounding the Covid-19 vaccine rollout. According to Tice, “the vaccine is not really a panacea” especially now when “there are new strains of the virus, and there is certainly risk going forward.” Nevertheless, Tice, the former manager of the Prudent Bear Fund, does admit that his timing has not always been on the mark. In addition, the perma bear’s current fund, which is also designed to profit from underperformance, is down 32% in the last three months. Bitcoin Foreshadows Gold On the other hand, Tice says he expects gold, which is up by “more than 25% since the March 23 stock market bottom”, to be the “top asset for investors.” Additionally, the veteran investor thinks that “gold is dramatically under-owned by individuals and portfolio managers.” Further to his belief that that “gold stocks are incredibly cheap”, Tice says bitcoin’s performances can be seen as an indicator of the precious metal’s future performances. Tice says: I don’t think that bitcoin can be ignored,” Tice said. “We have seen the price of bitcoin go from $10,000 to $40,000 which I think is foreshadowing potentially what might happen in gold. In 2008, Tice sold the Prudent Bear Fund and at the time the fund had increased in value at a 7.97% annualized rate, while the S&P 500 lost 1.38% annually. It remains to be seen if Tice, who claims to have been “early in 1998, 1999 and in 2006 to 2007”, can profit from his latest bearish prediction. Do you agree with Tice’s assertion that bitcoin is foreshadowing what might happen to gold? Tell us what you think in the comments section below. View the full article

Mining City’s growth throughout 2020 has been significant. With an easy-to-use website, thousands of community members active all over the world and regular promotions, now is a great time to begin reaping the possibilities that Mining City (www.miningcity.com) has to offer in 2021. What Is Mining City? Mining City is an initiative that unites people through mining cryptocurrency. Using a “mining plan” structure it gives its users the opportunity to obtain hash power needed for mining. This hash power entitles them to a portion of the total mining reward. Put simply, once users get their mining plan, they’ll start receiving cryptocurrency. Hash power provided by Mining City is generated by the highly reliable data centers. Minebest is one of the strategic partners of Mining City whose core business entails building data center facilities tailored for providing professional hosting services of mining equipment. These farms have mining machines running at optimal standards and efficiency 24/7 to ensure the supply of hash power. Why Is Crypto a Good Idea in 2021? Cryptocurrency is one of the fastest growing industries in the world and 2021 is set to see the further injection of cryptocurrency and blockchain into the mainstream. Big corporations such as PayPal, Facebook (Diem) and JP Morgan (JPM coin) are beginning to integrate cryptocurrency into their business models. People at the top of those organizations are not keen on losing money. So if they start to perceive crypto as a valid business resource, it’s time to take note. The new year may see an avalanche of large businesses racing to incorporate crypto into their structure. For those looking to enter the crypto industry, Mining City presents a great option. Two important cryptocurrencies, Bitcoin and Bitcoin Vault (BTVC), are available to mine through Mining City! How Does Crypto Mining Work? Mining is the process used to validate transactions on the blockchain. It involves thousands of computers worldwide competing to guess the correct answer to a complex mathematical formula and earn a reward. On the Bitcoin blockchain it takes miners approximately 10 minutes to get this answer. Then a new “block” is added to the blockchain and miners are presented with another problem to solve. The first computer to guess the answer for each block receives the mining reward. By mining a block, a miner adds all the information from previous transactions onto the blockchain. This is a vital process that makes it possible for people to send and receive cryptocurrency. If it were to stop, a blockchain would no longer be able to perform this primary function, potentially rendering it valueless. That’s why mining can be called the “beating heart” of the blockchain. For more information on how crypto mining works, visit the tab. Giving Everyday People an Opportunity to Mine The process of crypto mining has now reached institutional levels. Specialized machines (ASIC miners) do the bulk of the work. Without them it is almost impossible to participate in the mining process on your own. But alternative methods are available. Mining City gives people the opportunity to obtain hash power and mine cryptocurrency without having to purchase specialized equipment. Hash power, in the context of mining, is the computational power used to find solutions to mathematical formulas. Mining City users don’t mine on their own. They pool their hash power together. This gives them a realistic chance of being the first and receiving a portion of the mining reward. Mining City’s User-Friendly Platform Mining City’s website is easy to use and logical. It provides educational services and learning materials so even those not that familiar with cryptocurrencies can take part in the mining process. Mining City also offers an exclusive network marketing program based on a referral system. Its users earn rewards by recommending Mining City to their family and friends. If you are interested, check out the Mining City website and begin your crypto mining journey! Global Community CEO of Mining City, Greg Rogowski Anyone can log-on and join the Mining City community. With established communities throughout Asia, South America and a growing presence in Africa, North America and Europe, in 2021 Mining City is set to establish itself as a global powerhouse in the crypto mining world. Throughout 2020, Mining City’s social media presence grew significantly. Thousands of new community members have joined and are participating across all platforms. You can follow Mining City’s official social media portals on Facebook, Instagram, Telegram, YouTube and Twitter. Promotions In 2020 the Mining City team offered new promotions or opportunities to its community on a monthly basis. They included extra hash power, additional mining and the opportunity to get a smartphone (Smile S1 promotion). This trend is set to continue into 2021 with Mining City looking for bigger and better ways to benefit its community as cryptocurrency becomes increasingly mainstream. Ever Vigilant When planning development in 2021, it is necessary to keep track of the entire crypto market with all its nuances and trends. Mining City is continuously assessing the industry, the markets it operates in and continues to develop its competencies and abilities. Going into the new year, Mining City offers itself as a resource for navigating the world of crypto for those who are not able to do it on their own. There is a great community of enthusiasts and active participants in the cryptocurrency industry. The savvier the people involved, the more brains at work to make the most of every opportunity. They are one big think-tank. Take the opportunity in the new year to join them. Throughout 2020, Mining City has proven to be a meaningful player in the industry. In 2021, it is set to expand and grow even further, establishing itself as a major player in the crypto world. Do you want to know more about Mining City community? *The following is a thought (or opinion) piece from the experienced team within the Mining City. It is a speculative article meant to examine some possibilities and is not meant to be deemed as anything definitive nor should any actions such as investments be based off of it. This is a sponsored post. Learn how to reach our audience here. Read disclaimer below. View the full article

Middle Eastern crypto exchange Coinmena said this week that it had obtained a crypto assets services company license from the Central Bank of Bahrain (CBB) ahead of its planned launch. In receiving the license, the exchange, which has been certified by the Shariyah Review Bureau, said it had met several technical, operational, and security requirements from the CBB. Coinmena added that the license allows it to operate as a regulated and onshore platform, becoming one of only a few fully licensed and operating crypto exchanges in the Middle East and North Africa (Mena) region, At launch, Coinmena plans to offer spot trading in five major crypto assets – bitcoin (BTC), ethereum (ETH), ripple (XRP), bitcoin cash (BCH), and litecoin (LTC) to both retail and institutional investors. It will also host an over-the-counter (OTC) desk for larger transactions. The exchange did not provide a date for its planned launch. Its services will be available to investors in Bahrain, the United Arab Emirates, Saudi Arabia, Kuwait, and Oman, it said in a Jan. 24 statement. Dina Sam’an, co-founder and managing director of Coinmena, detailed: Obtaining the license from the Central Bank of Bahrain allows us to operate under one of the most robust and globally-renowned digital assets regulatory frameworks where governance, security, and customer protection are central to all our operations. Shariah compliance is a key customer need and regulatory requirement in most Muslim markets. As regards bitcoin, the technology has been viewed as “haram” – meaning that it is prohibited under Shariah laws on the basis that cryptocurrencies may be used for illegal activities such as money laundering and fraud, according to some experts. There is also concern over a lack of central authority and how that cryptocurrency strip governments and central banks of their power over national monetary systems. What do you think about Coinmena’s licensing by the Central Bank of Bahrain? Let us know in the comments section below. View the full article

The Philippines’ central bank, the Bangko Sentral ng Pilipinas (BSP), has expanded the country’s cryptocurrency regulation after seeing “accelerated growth” in the use of crypto exchanges. The new regulatory framework is in line with the guidelines recommended by the Financial Action Task Force (FATF), according to the central bank. Philippine Central Bank Introduces New Rules for Crypto Service Providers The Bangko Sentral ng Pilipinas (BSP), the Philippines’ central bank, announced Tuesday that it has established new guidelines on virtual asset service providers. “​The Monetary Board (MB) approved the guidelines on virtual asset service providers (VASP), or entities that facilitate financial services through the conduct of virtual asset (VA) activities, to cover new business models and activities,” the central bank explained. BSP Governor Benjamin E. Diokno commented: We have seen accelerated growth in the use VCEs in the past three (3) years and it is high time that we broaden the scope of existing regulations in recognition of the evolving nature of this financial innovation and set out commensurate risk management expectations. The new guidelines amend the existing regulations on cryptocurrency exchanges that were issued in 2017. The central bank says that the new regulatory framework “is aligned with fintech industry’s best practices and is consistent with risk management standards set by international standard-setting bodies such as the Financial Action Task Force (FATF)” on anti-money laundering (AML), combating the financing of terrorism (CFT), and proliferation financing (PF). “The MB-approved framework expanded the activities subject to the licensing regime of the Bangko Sentral from initially covering those involved in facilitating the exchange of fiat and VA,” the central bank described. The added activities are exchanging between one or more cryptocurrencies, transferring of cryptocurrencies, and the “safekeeping and/or administration of VAs or instruments enabling control over VAs.” Entities engaged in these activities will now be “subject to the BSP’s licensing requirements, regulatory expectations for money service businesses (MSB)” as well as AML, CFT, and PF obligations. Governor Diokno added: This will ensure that activities relating to VASP are executed within an unbroken chain of regulated entities. The new framework also emphasizes that all transactions involving the transfer of cryptocurrencies “shall be treated as cross-border wire transfer” and crypto service providers “are expected to comply with corresponding BSP rules governing wire transfer, particularly on the obligation to provide immediate and secure transmittal of originator and beneficiary information from one VASP to another for certain transactions.” Furthermore, BSP-approved virtual asset service providers must also comply with other existing rules for money service businesses, including rules on “outsourcing, liquidity risk management, operational risk management, information technology risk management, and financial consumer protection.” What do you think about the BSP expanding crypto regulation? Let us know in the comments section below. View the full article

The governor of the Bank of England, Andrew Bailey, believes that no existing cryptocurrencies will last. Talking about the design, governance, and arrangements of “a lasting digital currency,” the head of England’s central bank said, “I don’t think cryptocurrencies as originally formulated are it.” Bank of England Chief Andrew Bailey Doubts Any Existing Cryptocurrencies Will Last Bank of England (BOE) Governor Andrew Bailey talked about cryptocurrency at the World Economic Forum’s online Davos Agenda Monday. Speaking on a panel entitled “Resetting Digital Currencies,” he said that digital innovation in payments was “here to stay.” However, as for cryptocurrencies, the head of England’s central bank said: Have we landed on what I would call the design, governance and arrangements for what I might call a lasting digital currency? No, I don’t think we’re there yet, honestly. I don’t think cryptocurrencies as originally formulated are it. The Bank of England governor added: “The whole question of people having assurance that their payments will be made in something with stable value … ultimately links back to what we call fiat currency, which has a link to the state.” Bailey noted that this can be organized in several ways which is where innovation comes in, naming stablecoins and central bank digital currencies (CBDCs) as examples. Like other central banks, the British central bank has been looking into issuing its own central bank digital currency. Bailey also pointed out that the appropriate level of privacy for digital currencies was likely to be hotly debated. He was quoted as saying, “This is a big one that is coming on to the landscape, the whole question of a privacy standard for transactions made in any form of digital currency, and where the public interest lies.” Godfrey Bloom, a British politician who served as a member of the European Parliament from 2004 to 2014, commented on Bailey’s crypto remarks. He tweeted: Bitcoin strikes terror into the hearts of central bankers. Every time you buy bitcoin or gold coin they know it is another nail in their corrupt coffin. What do you think about Bailey’s view on cryptocurrencies? Let us know in the comments section below. View the full article

JP Morgan has outlined three key reasons why investors should add bitcoin to their investment portfolios. Small allocations to cryptocurrencies would “improve portfolio efficiency due to high returns and moderate correlations,” JPMorgan’s analyst explained. JP Morgan Sees Benefits of Hedging With Bitcoin JPMorgan released a report last week entitled “What cryptocurrencies have and haven’t done for multi-asset portfolios.” Published by the firm’s head of Cross-Asset Strategy division, John Normand, the report explores cryptocurrencies’ use for portfolio diversification. Firstly, the report acknowledges that “Bitcoin has already achieved the fastest-ever price appreciation of any must-have asset to which it is often compared,” such as gold in 1970s, Japanese equities in 1980s, U.S. tech stocks in 1990s, Chinese equities in 2000s, commodities in 2000s, and FANG stocks in 2010s. While noting that bitcoin is highly volatile, the analyst hypothetically asked: “Why bother considering an unconventional and high-volatility hedge?” He then answered his own question by giving three reasons. Firstly, “Equity and credit valuations look record-rich for a very young business cycle,” the report details. Secondly, “conventional hedges like DM bonds barely serve as insurance when US 10Y rates are near 1%.” The report elaborates that the collapse of DM bond yields to negative levels in Japan and Europe and to 1% in the U.S. has forced investors to focus on alternative investments. The third reason concerns “some as-yet unseen shocks (materially higher inflation, economically-debilitating cyber attacks or climate catastrophes),” which the JPMorgan analyst believes “could favor an asset that operates outside conventional financial channels.” For example, Normand cited extraordinary monetary and fiscal stimulus over the past year, which creates general concerns about portfolio vulnerability to a macro or policy shock. The JPM analyst further asserted that “the mainstreaming of crypto ownership is raising correlations with cyclical assets, potentially converting them from insurance to leverage.” Nonetheless, he noted that for long-term portfolio efficiency: Small (up to 2%) allocations to cryptocurrencies still improve portfolio efficiency due to high returns and moderate correlations. As for shorter-term diversification, Normand wrote: “Over shorter intra-month and intra-quarter horizons, crypto assets continue to rank as the poorest hedge for major drawdowns in global equities, particularly relative to the fiat currencies like the dollar which they seek to displace.” In addition, he was quoted as saying: Crypto continues to rank as the least reliable hedge during periods of acute market stress. Meanwhile, another JPMorgan analyst has forecasted that the price of bitcoin will reach $146K as competition between the cryptocurrency and gold heats up. Earlier this month, JP Morgan said that the approval of a bitcoin exchange-traded fund (ETF) this year could cause a price drop. Nonetheless, the firm sees $600 billion demand from global institutional investors for bitcoin. Do you agree with JPMorgan? Let us know in the comments section below. View the full article

On Monday, January 25, 2021, at roughly 2 a.m. (EST), the notorious old school miner from 2010 has spent another consecutive 21 decade-old block rewards with 1,050 bitcoin. This is possibly the same mining entity our newsdesk has been tracking for months. The bitcoin from 2010 moved today follows the exact same pattern as all the block reward strings our team has caught waking up during the last ten months. For quite some time now, news.Bitcoin.com has been monitoring so-called ‘sleeping bitcoins’ that are starting to wake up after ten years. In 2020, our newsdesk has noticed that a great number of old-school bitcoin spends from 2010 have been transferred in consecutive strings of 20 to 21 block rewards and all of them confirmed in a single block. On Monday at 2 a.m., which is roughly around the same time frame the other coinbase reward strings have been spent in the past, 21 block rewards were transferred. Our newsdesk caught the action with the help of Btcparser.com’s blockchain parser and visual perspectives from theholyroger.com web portal as well. All of these decade-old bitcoin block rewards held approximately 50 BTC per block and 999.99 BTC ($33.6M) was consolidated into a single address. As usual, the 999 BTC was again split into multiple fractions and followed the same movements as the previous string spends. The very last time news.Bitcoin.com reported on a large string of block reward spends from 2010, Russian blockchain researcher, Issak Shvarts, told our newsdesk that “these bitcoins are now owned by the crypto exchange Coinbase.” All of the coins worth over $35 million spent on January 25, 2021, were confirmed at block height 667,558. Moreover, the corresponding bitcoin cash (BCH) block rewards were moved as well on Monday. Similar to all the other past spends, besides the March 11, 2020 transfer, the corresponding bitcoinsv (BSV) has not been touched. Now interestingly, this pattern all stemmed from 2010 blocks mined in August, September, and October. This is identical to all the past strings of ‘Satoshi era’ bitcoin transfers from 2010 that have been caught in the past. However, as mentioned above, BTC block height 667,558 saw 21 block rewards spent from 2010, and the first spend did not follow the 999 BTC that was possibly transferred to an exchange. 49.49 BTC was transferred to one address and half of a bitcoin was sent to another address, which still sits idle. Moreover, just before the 21 decade-old blocks spent in block 667,558, two inconsistent 2010 blocks were spent at block height 667,534 and 667,538. The first spend was unique because the coinbase block reward was created on December 12, 2010. December 12, 2010, is special because it was the very last day Satoshi Nakamoto wrote openly to the entire Bitcoin community on the forum bitcointalk.org. The 2010 block spend from December did not see the corresponding BCH or BSV spent. 19.9 BTC and 30 BTC were sent to two addresses and then split into fractions and likely sent to an exchange. Presently, from our collective research, we believe that the person who has transferred the significant number of strings from 2010 is very likely the same entity. It is always roughly around the same number of 2010 coinbase rewards, all mined during the same months, and all spent ten years later at around the same timeframe during the early morning hours (EST). The entity always methodologically follows the exact same pattern and seems to care less about privacy. Another possible theory tied to this miner could indicate this individual or group of individuals mined a whole lot of bitcoins in 2010. For instance, if this person is the same entity, they have spent well over 7,000 BTC stemming from 2010 worth over $236 million using today’s exchange rates. Of course, if the entity spent these coins right away they would have received far less than $236 million for each transfer’s spot price on the day the block rewards were moved. Furthermore, following the recording of all the 2010 block rewards spent in blocks 667,534, 667,538, and 667,558, a single 50 BTC block reward ($1.5M) mined on November 5, 2010, was spent at block height 667,629. What do you think about today’s 1,000 bitcoin spend from the 2010 block rewards? Let us know what you think about this subject in the comments section below. View the full article

PRESS RELEASE. ZelaaPayAE, with a vision to build and improve the financial structure, introduces a Crypto Debit Card with the ability to be swiped not just in UAE but also globally. Partnering with Baanx, ZelaaPayAE is providing Mastercard enabled Debit Card featuring personalized cards with a low monthly fee and extreme accountability. What makes it stand out is the true ability to support a unique 5 multicurrency BIN which would enable you to spend in 8 currencies (USD, CNY, JPY, GBP, and others) with Mastercard Spot price i.e., Zero Forex mark up. The Fundamental utility is not in the FX or global transaction, it is its ability to support ZPAE, DGB, KLV, TRX, and BTC. Making transacting from Cryptocurrency to Fiat a breeze, there are many crypto to fiat debit cards out there but they eventually require you to preload them. Omnibus Account Framework for ZelaaPayAE Debit Card by Baanx allows you to just seamlessly spend without having to preload, through APIs for seamless spending thus promoting the transactional framework in a way how a transaction in its truest form should be. Swipe Wallet’s card functions in a similar way but SXP stakes are required and also most of the categories have FX markups. Catching up this trend Crypto.com and Binance are not too far behind, offering crypto debit cards but yet again lacking the proprietary tech and the omnibus Account framework and personalization ability. Swipe, Binance, and Crypto.com have VISA-enabled debit cards thus the usage gets restricted in some regions. ZelaaPayAE stacks above both of them in terms of global coverage (being partnered with Mastercard, Visa and China Union Pay through Baanx; thus, unrestricted global usage). Providing the flexibility of a virtual card and removing the need to preload the card, ZelaaPayAE have managed to make innovation as customer-centric as possible. Baanx has a successful track record of catering to a high potential fin-tech market and is also working with the project of the visionary Akon, Akoin. The real standing out feature is and will always be ZelaaPayAE’s vision to build the infrastructure for the future of transaction and money. The ability to bridge the gap between fiat and crypto on top of having it backed by technology, belief, and Vision, ZelaaPayAE x Baanx Debit cards have and will always manage to stay at the forefront of Innovation in Financial Services. Media contact: info@zelaapay.ae This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release. View the full article

Threat actors have been finding opportunities in bitcoin’s bullish trend to increase their extortion campaigns. Hackers are actively threatening companies with DDoS attacks unless they pay for bitcoin ransoms. Bull Run Prices Push Extortionists to Increase Bitcoin Ransom Demands According to an alert issued by security firm Radware, there have been several reports between December 2020 and the first week of January 2021 about DDoS extortionists. The firm claims the campaign is part of a global one that started in August last year. However, in the wake of the crypto bull-run seen over the last months, the wave of ransom letters had sharply increased, coming from the same actors. Radware noted that most of the companies didn’t report such incidents to the media in August and September 2020. One of the first bitcoin ransom letters sent by the hackers reads as follow: We asked for 10 bitcoin to be paid at to avoid getting your whole network DDoSed. It’s a long time overdue and we did not receive payment. Why? What is wrong? Do you think you can mitigate our attacks? Do you think that it was a prank or that we will just give up? In any case, you are wrong. At the time of the first batch of letters sent by the threat actors, bitcoin was worth approximately $10,000. However, the security firm noticed in the latest round of ransom letters that hackers are aware of the BTC prices surging: We will be kind and will not increase your fee. Actually, since the bitcoin price went up for over 100% since the last time, we will temporarily decrease the fee to 5 [bitcoin]! Temporarily. Yes, pay us 5 [bitcoin] and we are gone! DDoS Extortion Is an ‘Integral Part’ of the Cyber Threat Landscape On the level of concern this kind of threats should represent for the companies, Radware made the following comment: Ransom DDoS or DDoS extortion campaigns have traditionally been a seasonal event. They would run annually for a few weeks targeting specific industries/companies before the threat actor(s) would typically give up. The 2020/2021 global ransom DDoS campaign represents a strategic shift from these tactics. DDoS extortion has now become an integral part of the threat landscape for organizations across nearly every industry since the middle of 2020. The crypto industry has also been affected directly by the cybercriminal sphere in the last few months. As news.Bitcoin.com reported on January 7, 2021, a security firm spotted three malicious crypto apps targeting users to steal their funds. What are your thoughts on the security alert about DDoS threats? Let us know in the comments section below. View the full article

During the last two months, tether transactions have spiked considerably. More recently, however, USDT transactions on the Tron network have outpaced the number of tether transfers on the Ethereum blockchain. Despite a whole lot more ERC20-based tethers in the wild, the minted stablecoin using the TRC20 standard has seen a much larger transaction count all year long. Tether (USDT) is a dominant stablecoin and it is used on a great number of exchanges as the token is paired with nearly every digital asset that has a market value. USDT commands the third-largest market capitalization with a $24.9 billion valuation today. During the last 24 hours market data shows that tether (USDT) has seen $17 billion in global trade volume. In the early days, tether was minted on the Omni Layer network but for the last four years, USDT tokens have migrated to other blockchains. Every single day in 2021, TRC20-based tethers (USDT) have seen a higher transaction count than ERC20-based tether (USDT) tokens. In 2021, USDT is issued on a myriad of chains including Ethereum, Tron, Bitcoin Cash, EOS, Liquid, Solana, and Algorand. A great majority of tethers are minted using Ethereum’s ERC20 standard, and these tokens have seen significant transaction counts in recent years. However, this year has been a different story as the tether (USDT) transaction count stemming from the Tron network has been outperforming its ERC20 rival. Every single day in 2021, Tron-based tether (USDT) transaction counts (tx count) have been larger. Tron captures more transactions than both ETH and BTC combined. For instance, data from Coin Metrics shows the last count three days ago, TRC20 tethers saw 247,000 transactions while the ERC20 tethers saw 179,000 that day. Now even though TRC20 tethers have a larger tx count, the aggregated volume of ERC20 USDTs is still 2x more valuable in terms of settlement. Median network transaction fee on the Ethereum blockchain on January 25, 2021. TRC20-based tethers have beat Ethereum-based tether tx counts week after week for the entire year. Of course, cryptocurrency proponents suspect that the migration from Ethereum to Tron as far as accelerated transactions is likely due to rising ETH network fees. Fees on the Tron network are near non-existent and Coin Metrics data shows the chain processes 3.1 million transactions per day in comparison to BTC’s 254,000+ transactions per day on January 24, 2021. Ethereum transactions per day are currently over a million every 24 hours but the fees to transact with ether are much higher than the Tron network’s negligible transfer costs. At the time of publication, the median transaction fee on the Ethereum network according to data from bitinfocharts.com shows fees are currently around $4.80 per transaction. There’s been a number of days in 2021, where ETH transaction fees have jumped above the $5 range. What do you think about the number of transactions stemming from tether on the Tron network exceeding the tether transactions on Ethereum? Let us know what you think in the comments section below. View the full article

PRESS RELEASE. CashPay brings ecommerce a step closer to Blockchain Technology through an open distributed ledger that records transactions between two parties in a decentralized manner that involves trust, faster transactions, no hidden costs, etc. With its launch in 2021, the CashPay platform is going to start with the initial implementation of $CPZ (token), closely followed by CPZ Beta. The company is also going to launch country-specific ecommerce websites and smartphone apps. CashPay is basically a “marketplace for Direct Customers”, a king of payment gateway solutions, which uses Utility Token ($CPZ) or cryptocurrency to make transactions happen. Currently, the company is at a nascent stage but its products are futuristic—CashPay Shop, CashPay EZ (Payment Gateway) and CashPay Passport (Merchant Wallet). The company is betting on the multi-fold growth in the ecommerce market over the past few decades, which has shifted towards transactions done through cryptocurrency. In the company’s words, “CashPay is the bridge. We have developed a fully functional ecommerce marketplace that serves as a shop where buyers can purchase a variety of goods by paying with cryptocurrency. In addition to the marketplace, we are working on a Payment Gateway that can be integrated on partner and existing ecommerce websites, allowing the consumers the option to pay through cryptocurrency.” The company will encourage online transactions with the use of CashPay tokens ($CPZ). Additionally, CashPay will also streamline the whole process of the transaction by making use of a Merchant Wallet that will be used like the current electronic wallets, with cryptocurrency in it, instead of bills. The company is on a mission to “fix the inability of the existing ecommerce to benefit from the multi-faceted world of Blockchain Technology.” CashPay Shop The most awaited platform is here – a cryptocurrency-enabled marketplace where users can buy a wide range of products using the CashPay tokens. As of now, electronics, accessories, smart wearables, smartphones, video games, etc. are a part of the ecommerce platform that is powered by the $CPZ token. Strategic partnerships with top producers and brands are already underway that shall see a lot of big names become a part of this revolutionary Blockchain project. To incentivise the customers. All the products are priced at a discount with the company guaranteeing the lowest market rates on every product – pitting themselves against the likes of e-commerce retail giants like Amazon, Flipkart as well as AliExpress. Among the impressive set of future plans are CashPay ‘SuperStores’, a line of brick-and-mortar stores set up worldwide that would serve as retail megastores and outlets to facilitate off-line commerce through cryptocurrency, thus adding another dimension to the ambitious project. CashPay Token CashPay is powered by its native token $CPZ. CashPay Token is an erc-20 token that is built on the Ethereum blockchain network. You can learn more about the token and its applications on its website. With CashPay Token pre-sale going live by Wednesday, January 27, The CashPay Shop is scheduled to go live by Friday – January 29, 2021 with the platform ready to cater to the global market. The robust social media presence of CashPay is already creating the right buzz among potential consumers as well as merchants. Media Contact: contact@cashpaygroup.com This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release. View the full article

A new research note released by the Bank of Singapore (BOS) suggests that cryptocurrencies are more likely to replace gold as a store of value. However, the note says it is unlikely that such digital currencies can replace fiat currencies even as their appeal grows. Inefficient Unit of Exchange According to the research note, it is the volatility of cryptocurrencies that makes them “an inefficient unit of exchange.” This inefficiency, in turn, makes cryptocurrencies an unsuitable medium of exchange. Still, as one local outlet report explains, cryptocurrencies stand a better chance if they can overcome “key hurdles such as trust, volatility, regulatory acceptance and reputational risks.” When these hurdles are overcome then such “digital currencies can also be used in investor portfolios as a potential safe-haven assets and for asset diversification.” Meanwhile, the same media report quotes Mansoor Mohi-uddin, the chief economist at BOS, who explains that investors also “need trustworthy institutions to be able to hold digital currencies securely.” On top of that, the economist says “liquidity needs to improve significantly to reduce volatility to manageable levels.” Although the value of bitcoin has surged by more than 300% in the past year, the digital asset experienced wide price fluctuations throughout. At one point, the crypto asset crashed by more than 30% on a day that has become known as the Black Thursday. Using this price crash as an example, Mohi-uddin concludes that the crypto asset is in fact “correlated with stocks and other risk assets rather than trading as a counter-cyclical safe-haven.” According to the economist’s assessment, this means the crypto asset is “likely to be dumped by investors during a market meltdown, as occurred at the start of the pandemic in March 2020.” Institutional Investors and Liquidity Meanwhile, the BOS suggests that the increased participation in the cryptocurrency markets by bigger investors could be one way of solving the liquidity challenge. The BOS says: Increased participation by institutional investors such as asset managers with longer-term time horizons than retail buyers or hedge funds could help to increase liquidity, lower volatility and cause price action to be driven more by fundamentals than speculation. Concerning the potential function of digital currencies as alternatives to fiat money, the BOS research note finds their reputational risks an impediment. Furthermore, Mohi-uddin argues that governments have shown their unwillingness to embrace a technology that “could potentially displace national currencies.” In addition, he says governments may not tolerate technologies that curtail the “ability of policymakers to print money during economic crises.” Do you agree that cryptocurrencies won’t replace fiat currencies? Tell us what you think in the comments section. View the full article

According to a recent report, the San Francisco-based cryptocurrency exchange Coinbase is purportedly planning to sell stock on Nasdaq’s private market ahead of the initial public offering (IPO). Coinbase reportedly notified shareholders that they will receive information pertaining to the private sale this week. Reports Indicate That Coinbase May Sell Shares via the Nasdaq Private Market Ahead of the IPO Coinbase is the biggest digital currency exchange in the United States and one of the largest trading platforms worldwide. At the time of publication, between BTC and ETH deposits, Coinbase holds over $40 billion in digital assets under management (AUM) according to Bituniverse exchange balance ranks. As far as other digital assets under management the San Francisco exchange recently noted it holds $90 billion AUM in cryptocurrencies. In mid-December, Coinbase announced the confidential filing of an S-1 initial public offering with the U.S. Securities and Exchange Commission. On Friday, the financial columnist from The Block, Frank Chaparro, reported that Coinbase will sell shares privately ahead of the IPO. “On Monday, January 25 at noon PT you will receive an email from the Nasdaq Private Market with details, including how you can access the market, what shares are eligible for trading, and how the market will function,” a message allegedly sent to Coinbase shareholders detailed. Coinbase Pre-IPO Futures Sees Significant Demand, Estimates Show Crypto Company Could Reach a $20 to $70 Billion Valuation Rumor has it that Coinbase will leverage the financial institution Goldman Sachs to lead the IPO. Moreover, pre-IPO futures (CBSE) are also trading hands on the crypto exchange platform FTX. At the time of publication, CBSE/USD markets on FTX show the pre-IPO futures swapping for $272 per unit. CBSE is one of the largest tokenized stock markets on FTX outperforming the vaccine company’s token stocks on FTX called Moderna (MRNA). There have been some different predictions in regards to estimating Coinbase’s overall value after the IPO. An analysis from messari.io analyst Mira Christanto details Coinbase “could see the company valued at $28 billion.” Research compiled by The Block estimates the San Francisco firm could reach a $70 billion valuation. What do you think about Coinbase selling shares privately via Nasdaq’s private market? Let us know what you think about this subject in the comments section below. View the full article

Switzerland’s largest bank, UBS, has published guidance for clients about investing in bitcoin. The bank answers some important questions, such as whether one should buy bitcoin and other cryptocurrencies and whether bitcoin can be used to diversify portfolios. ‘Should I buy’ Bitcoin? UBS Answers UBS published a detailed report about bitcoin last week. It answers some questions that the bank is currently discussing with its clients, explained the report authors, including the firm’s chief investment officer of global emerging markets, Michael Bolliger. UBS Group is currently Switzerland’s largest bank by total assets, followed by Credit Suisse Group. The first question UBS answered in its report entitled “The rise of bitcoin” was “Should I buy?” The report explains that “Many clients are asking whether they should invest in bitcoin and other cryptocurrencies,” adding: Our general guidance is this: While we wouldn’t rule out further price increases, we’re somewhat skeptical of any essential real-world use cases, which makes it hard to estimate a fair value for bitcoin and other cryptocurrencies. “We are also cognizant of the real risk of one losing one’s entire investment. Investors in cryptocurrencies must therefore limit the size of their investments to an amount they can afford to lose. We also suggest thinking about an exit strategy,” the report authors elaborated. While admitting that “Indeed, prices [of cryptocurrencies] could continue to climb in the near term,” the authors warned that “There is little in our view to stop a cryptocurrency’s price from going to zero when a better designed version is launched or if regulatory changes stifle sentiment.” Can Bitcoin Be Used to Diversify Portfolios? Another important question UBS answered was whether bitcoin can be used to diversify portfolios. This subject “has become a key argument for investors,” the report emphasizes. Noting that “correlations spiked substantially in 2020 with the outbreak of the pandemic, but have normalized since,” UBS explained: While empirical evidence is mixed, bitcoin has had an overall low correlation to a wide range of other asset classes, including bonds, stocks, the Swiss franc, and gold. The bank also highlighted that both institutional and retail investors are buying bitcoin. The reasons for buying include bitcoin being an attractive investment opportunity, a hedge against depreciating fiat currency, and FOMO. What do you think about UBS’ advice on bitcoin investing? Let us know in the comments section below. View the full article

Mad Money host Jim Cramer has provided some investment advice aimed at the latest Powerball jackpot winner of $731.1 million. He recommends putting 5% of the jackpot in bitcoin alongside several other investments, such as gold and real estate. Jim Cramer Says Put 5% of Powerball Jackpot in Bitcoin Someone won a Powerball jackpot worth an estimated $731.1 million last week, which was one of the largest lottery prizes in U.S. history. The winning ticket was sold at Coney Market, a convenience store in Lonaconing, a town in Maryland. The store will get a $100,000 bonus for selling the ticket. Jim Cramer, the host of Mad Money on CNBC, offered some advice to the lucky winner on Friday. The former hedge fund manager also co-founded the financial website Thestreet.com. Cramer provided a list of investments he recommends for the jackpot winner. It consists of precious metals, real estate, art, bitcoin, municipal bonds, and dividend-paying stocks. List of Jim Cramer’s recommended investments if you’ve won the lottery, like the recent Powerball jackpot winner of $731.1 million. Source: CNBC For the Powerball jackpot winner, Cramer said: “When you are super rich like this, your main worry is not the taxman. You’ve got to be worried about inflation, specifically hyperinflation, that’s the only thing that can really threaten the nine-digit fortune.” He continued, “So what holds value during periods of hyperinflation?” Cramer revealed, “You may not know this but it’s precious metals, real estate, and great art.” The Mad Money host has long been a gold proponent. He advised, “As for gold, yes, 5% jackpot into bullion.” However, he also warned, “Don’t store the bullion at home, put it in safety deposit boxes.” Cramer added: If you won the lottery, go ahead, yes, I am going to say it, 5% in bitcoin. Cramer further suggested without going into any detail: “Don’t buy it all at once, crypto could be incredibly volatile. Don’t buy on the weekend. But it’s an important new storehold of value.” Besides recommending investments, Cramer also provided some general advice for Powerball jackpot winners, such as to watch out for scammers and to collect their winnings as a lump sum rather than annuities. “Always take the lump sum. You can stick it in treasury bonds and the interest you will accrue will make you more than if you took the annuity,” the Mad Money host said. Cramer himself began looking into investing in BTC due to concerns of massive inflation. In December, he revealed that he had bought some bitcoin but sold the cryptocurrency earlier this month. He said to treat BTC like a stock: “As I tell people … if you have a double, take a lot out … It’s just no different from a stock.” What do you think about Jim Cramer’s bitcoin advice? Let us know in the comments section below. View the full article

Harvard Professor of Economics and former Chief Economist at the International Monetary Fund (IMF) Kenneth Rogoff believes that governments will not allow bitcoin to flourish on a large scale. “The regulation will come in. The government will win,” he said. The professor also discussed the likelihood of a bitcoin bubble. Harvard Professor Warns of Strict Crypto Regulation Harvard University Professor Kenneth Rogoff shared some thoughts about bitcoin regulation during an interview on Bloomberg Surveillance last week. Rogoff is the Thomas D. Cabot Professor of Public Policy and a professor of economics at Harvard University. He also served as Chief Economist at the International Monetary Fund (IMF) from 2001–2003. “It’s speculative,” he began. “I’ve been a bitcoin skeptic and certainly the price has gone up.” However, Rogoff argued, “there’s sort of an ultimate question of what’s the use. Is it just valuable because people think it’s valuable? That is a bubble that would blow up.” He continued: “I can see bitcoin being used in failed states. It’s conceivable it could have some use in a dystopian future.” Nonetheless, he emphasized, “I think the governments are not going to allow pseudonymous transactions on a big scale. They’re just not going to allow it.” The Harvard economics professor elaborated: The regulation will come in. The government will win. It doesn’t matter what the technology is. “So, I think over the long run if there’s not a use, the bubble will burst. I hope there’s not such a valuable use but I suppose it’s a hedge against dystopia,” he further opined. Rogoff was then asked, “would you advise Secretary Yellen at Treasury that the U.S. should be proactive in instituting that regulation which could collapse the price of cryptocurrency?” He simply replied: “Yes, that’s just true across the board. It needs to be regulated … I think governments are on it. It’s not being used that widely and I suspect although the bitcoin lobbyists have been successful in getting it in some places, that won’t last.” Rogoff has long been a bitcoin skeptic. In 2018, he told CNBC that the cryptocurrency was more likely to be worth $100 than $100K a decade from then. “Basically, if you take away the possibility of money laundering and tax evasion, its actual uses as a transaction vehicle are very small,” the former IMF chief economist said. Last week, Joe Biden’s pick for the U.S. Treasury Secretary, Janet Yellen, stated that cryptocurrencies are mainly used for illicit financing. She later softened her stance slightly and promised to work with the Federal Reserve Board and other regulators to implement an “effective” crypto regulation. A week prior, the president of the European Central Bank (ECB), Christine Lagarde, called on countries to regulate bitcoin, claiming that the crypto has “conducted some funny business” and some “totally reprehensible money laundering activity.” Despite regulators’ belief, an industry report found that in 2020 crime accounted for only 0.34% of all crypto transactions. Meanwhile, several U.S. lawmakers have said that governments should not try to stop bitcoin. Rep. Patrick McHenry previously said: Due to the nature of the technology of Bitcoin, governments cannot kill it, nor should they. Furthermore, the U.S. now has a bitcoin-friendly lawmaker. Senator Cynthia Lummis has vowed to ensure Congress understands that bitcoin is a great store of value. She is a hodler, who believes that bitcoin “has shown great promise and may rise as a viable alternative store of value to the U.S. dollar both on the institutional level and the personal level.” What do you think of the Harvard professor’s view on bitcoin? Let us know in the comments section below. View the full article

2021 has been an explosive year for bitcoin as the crypto asset has touched new all-time price highs as cryptocurrencies have seen increased demand. Meanwhile, a number of crypto proponents expect the first exchange-traded fund (ETF) to be approved this year as a number of firms are racing to launch an ETF. On Friday, the Texas-based firm Valkyrie Digital Assets filed an ETF registration proposal called the Valkyrie Bitcoin Trust with hopes to list the fund on the New York Stock Exchange (NYSE). Crypto Proponents Expect a Bitcoin Exchange-Traded Fund Approval in the US This Year This year just might be the year when U.S. regulators approve a bitcoin (BTC)-based exchange-traded fund (ETF) that’s hosted on a major stock exchange. For instance, in December, news.Bitcoin.com reported on Vaneck’s bitcoin-based ETF filing with the U.S. Securities and Exchange Commission (SEC). This week, Vaneck also filed for another exchange-traded fund called the Digital Asset ETF, which aims to hold equity in companies that generate revenue from cryptocurrency services. Meanwhile, at the same time, Canadian investment fund manager Arxnovum Investments filed for a bitcoin-based ETF with Canada’s Ontario Securities Commission. Now another firm has joined the bitcoin ETF race as the Texas-based firm Valkyrie Digital Assets registered for a bitcoin fund on Friday, January 22. Valkyrie notes in the filing that the trust intends to list the shares on NYSE Arca. After the filing was public, crypto proponents discussed the new ETF entry on social media. For example, the crypto CFA James Seyffart, talked about Valkyrie’s ETF registration and he told his 3,800 Twitter followers he expects a bitcoin ETF approval this year. “And there’s another entrant into the Bitcoin ETF Race,” Seyffart said. Showing a list of all the companies filing for an exchange-traded fund Seyffart further wrote: The current state of the Bitcoin ETF race with a new late entrant. Important Note: No 19b-4’s have been filed as far as I can tell, which are the filings that start that 240-day clock for the SEC to make a decision.” Seyffart added: Sticking my neck out a bit – I think we’ll see a U.S. Bitcoin ETF in 2021 if Gensler is confirmed to run the SEC. The guy is extremely knowledgeable on Blockchain/crypto. He even teaches a class at MIT on the topic. That said, I think you can expect new regulations coming to the crypto space from the SEC. Don’t think we’ll see outright bans like some bitcoin bears like to claim. But we will definitely see increased scrutiny and regulation as Mike McGlone has also stated. Valkyrie Insists an ETF Is a Cost-Effective and Convenient Way to Invest in Bitcoin Valkyrie believes the ETF will give investors a more accessible method of investing in BTC. “The trust’s purpose is to hold bitcoins, which are a digital commodity based on the cryptographic protocols used by the decentralized, peer-to-peer bitcoin computer network,” the Valkyrie filing states. The Valkyrie ETF filing stresses that an investment in the trust involves significant risks. Valkyrie’s bitcoin fund registration further emphasizes that the fund may not be suitable for shareholders who cannot accept more risks. “The investment objective of the trust is for the shares to reflect the performance of the value of a bitcoin as represented by the index, less the trust’s liabilities and expenses. The shares are designed to provide investors with a cost-effective and convenient way to invest in bitcoin,” the investment firm’s registration adds. Do you think regulators will approve a bitcoin ETF in 2021? Let us know in the comments section below. View the full article

The ongoing global shortage of chips that are used in the production of bitcoin mining rigs is now causing manufacturing disruptions. According to one report, these disruptions are causing a shortage of rigs on the market and subsequent price increases. Already, the report suggests that the prices of new mining rigs have doubled while second-hand machines saw their prices go up by more than 50% in the past year. Chipmakers Shunning Bitcoin Rig Makers Fueled by the rising value of bitcoin, the demand for mining rigs has been rising as miners seek to maximize returns. However, as the report explains, chipmakers are making the situation worse as they now prioritize supplying other sectors. According to the report, chipmakers like Taiwan Semiconductor Manufacturing Co and Samsung Electronics Co are reportedly shunning bitcoin mining rig makers. Quoting Alex Ao vice-president of Innosilicon, the report says chipmakers are choosing to serve “sectors such as consumer electronics” because their demand is “seen as more stable.” In addition to their use in the manufacturing of consumer electronics, the chips are also used in the production of automobiles, laptops and mobile phones among other products. Meanwhile, as the report explains, the ongoing shortages could potentially reconfigure the bitcoin mining landscape. In fact, the report quotes Wayne Zhao, the COO at Tokeninsight suggesting that this is already happening. While many studies, including the latest Messari report which reaffirmed China’s dominance in the bitcoin mining space, Zhao says this has changed. China Losing the Hash Rate Battle According to Zhao, while “bitcoin mining in China used to account for as much as 80% of the world’s total, it now accounts for around 50%.” The COO explains: China used to have low electricity costs as one core advantage, but as the bitcoin price rises now, that has gone. Also, supporting Zhao’s assertion that Chinese miners are losing ground, is Lei Tong, the managing director of financial services at Babel Finance. According to Tong’s assessment, nearly “all major miners are scouring the market for rigs, and they are willing to pay high prices for second-hand machines.” Yet as he observes, it is “purchase volumes from North America (that) have been huge, (and are) squeezing supply in China.” However, as Danny Scott, CEO of CoinCorner explains in response to written questions from News.bitcoin.com, the bitcoin mining hash rate, which recently hit an all-time high (ATH), makes it highly unlikely for miners to leave China. Still, he adds: “So it doesn’t look like any are turning off, quite the opposite. Even if miners did leave China, this would potentially be beneficial as they may all move to different new locations, further decentralising mining around the world.” It remains to be seen therefore if the rallying bitcoin price and rig shortages can ultimately result in China losing its dominant position. Do you agree that China’s position as the number one bitcoin mining centre is under threat? You can share your views in the comments section below. View the full article

A class-action lawsuit has been filed against a Nasdaq-listed bitcoin mining company. The suit cites a report claiming that the business is “completely fraudulent,” with nonexistent bitcoin mining operations. Lawsuit Alleges Crypto Firm’s Bitcoin Mining Business Is ‘Completely Fraudulent’ A class-action lawsuit was filed on Wednesday in the Southern District Court of New York against Bit Digital Inc., its CEO Min Hu, and CFO Erke Huang. Bit Digital, a holding company listed on Nasdaq under the symbol BTBT, purports to engage in bitcoin mining business through its U.S. and Hong Kong subsidiaries. Its name was changed from Golden Bull Ltd. (ticker DNJR) in September 2020. The lawsuit cites a report by J Capital Research released on Jan. 11 alleging that Bit Digital operates “a fake cryptocurrency business,” which is “designed to steal funds from investors.” J Capital alleges that Bit Digital’s claim that “it was operating 22,869 bitcoin miners in China” is “simply not possible.” The research firm stated that it had “verified with local governments supposedly hosting the BTBT mining operation that there are no bitcoin miners there,” adding: We think the bitcoin business BTBT discloses is completely fraudulent. Plaintiff Anthony Pauwels, individually and on behalf of all others who purchased Bit Digital securities between Dec. 21, 2020, and Jan. 8, accuses the defendants of violating the federal securities laws. They said that the defendants “made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects.” Following the publication of J Capital’s report, “Bit Digital’s stock price fell $6.27 per share, or 25%, to close at $18.76 per share on January 11, 2021, on unusually heavy trading volume,” the lawsuit details. Local Chinese Authorities Never Heard of the Company Bit Digital had previously declared, “Our mining operations are in Wuhai, Zhundong, Xinlinhot and Sichuan, China.” J Capital explained that “In China, you have to register with the government to have a data center, and local governments have records of all data centers and bitcoin mining operations.” The research firm further noted that “without a Chinese-registered entity, that would not be legal.” Moreover, “Companies are required to show a registration document from a domestic legal entity before they can sign a lease or a hosting contract. Yet the company clearly claims that it both operates and leases mining facilities in China.” To verify Bit Digital’s claims, J Capital contacted the governments of these regions. “In telephone calls, local government officials of each locality told us they had no bitcoin mining operations and had not heard of Bit Digital,” J Capital described. An official of Zhundong told J Capital: “Big data, cryptocurrency, cloud computing parks or data centers — none of these have registered here.” An official of Xilinhot also confirmed, “There is no bitcoin center here.” Similarly, an official of Wuhai told J Capital: There’s no bitcoin center here. I’ve never heard of Bit Digital. Mining Rig Manufacturers Also ‘Drew a Blank’ To verify that Bit Digital had the bitcoin miners it claims, J Capital said it spoke with “all the major manufacturers in China of bitcoin mining equipment” but “None had heard of BTBT.” An employee of Microbt, a mining rig manufacturer from which BTBT said it bought 21,713 machines in 2020, told J Capital that BTBT had not purchased equipment from them. “I have never heard of Bit Digital,” he said. “We provided the name of the company’s former VIE with no better result,” J Capital clarified. Bit Digital also said that it bought 256 miners from Bitmain in the first nine months of 2020. However, J Capital said that Bitmain “drew a blank” when inquired about BTBT. Bit Digital Claims False Accusations Bit Digital Inc. responded to the accusations on Tuesday, claiming that they are false. “Since we never purchased any brand new miners from suppliers in 2020 they would not know of the company or of its subsidiaries,” the company claims. Bit Digital additionally affirmed that, as disclosed in its third-quarter financial results on Dec. 18, 2020, it owned 40,865 bitcoin miners. In addition, the company said: “We have not signed leases for bitcoin mining facilities. In order to achieve lower utility costs, the mining facilities are maintained by our third-party suppliers … The bitcoin mining facilities in China are maintained by Hong Kong suppliers.” Furthermore, Bit Digital explained that it acquired Xmax Hong Kong, and “All of the bitcoin mining operations in mainland China are conducted by Xmax Hong Kong.” The plaintiff and the class are seeking “compensatory damages,” “reasonable costs and expenses incurred in this action, including counsel fees and expert fees,” and “Such other and further relief as the court may deem just and proper.” What do you think about Bit Digital’s mining operations? Let us know in the comments section below. View the full article

Indian cryptocurrency exchange Buyucoin has reportedly been hacked and sensitive data of about 325,000 users has reportedly been leaked onto the dark web. According to reports, the leaked data includes personal information, encrypted passwords, user wallet details, order details, bank details, PAN numbers, passport numbers, and deposit histories. Indian Cryptocurrency Exchange Hacked Buyucoin, a Delhi NCR-based cryptocurrency exchange, has reportedly been hacked. The exchange has more than 350K registered users and has facilitated over $500 million in cryptocurrency trades, according to its website. Several local news outlets reported that sensitive data of about 325K customers has been dumped onto the dark web. IANS publication detailed on Friday: The data leaked include names, e-mails, mobile numbers, encrypted passwords, user wallet details, order details, bank details, KYC details (PAN number, passport numbers) and deposit history. Independent cybersecurity researcher Rajshekhar Rajaharia explained to the publication that the 6GB file on MongoDB database contains three backup files with Buyucoin data. The researcher also found his own information that he used to create an account on the platform last year among the leaked data. “This is a serious hack as key financial, banking and KYC details have been leaked on the dark web,” Rajaharia was quoted as saying. On Twitter, a number of users said that their information was leaked. Rajaharia tweeted: “Trading in cryptocurrency? 3.5 Lakh Users data including me leaked from Buyucoin. The leaked data contains name, email, mobile, bank account numbers, PAN number, wallets details etc. Again didn’t informed to affected users by company.” Buyucoin is the latest victim of the infamous hacker group Shinyhunters, which has been leaking databases for free on well-known English-speaking forums, according to the Economic Times. The group also leaked data of e-grocer Big Basket, educational technology platform Unacademy and payment aggregator Juspay. Israel-based darknet threat intelligence provider KELA confirmed the leak to the publication. The firm’s threat intelligence analyst Victoria Kivilevich explained that “These records are now circulating on the dark web and available for use by other cyber criminals.” She added that they can use the data for anything from “phishing scams to gaining admin privileges and access into corporate networks if corporate credentials have been leaked.” Buyucoin Is Investigating the Breach Since reports of the security breach emerged, Buyucoin has released two official statements on the matter. The first was written by its CEO, Shivam Thakral. He wrote: “In the mid of 2020, while conducting a routine testing exercise with dummy data, we faced a ‘low impact security incident’ in which non-sensitive, dummy data of only 200 entries were impacted. We would like to clarify that not even a single customer was affected during the incident.” Rajaharia responded to the exchange’s official statement in a tweet: “Such an irresponsible statement by Buyucoin. I am your registered and KYC verified user. You leaked my own data too. Please change your statement asap. What if someone used my account in any illegal activity. Please inform your users right now.” The Buyucoin CEO’s message was subsequently replaced with a different one by the exchange. “Regarding the media report,” Buyucoin wrote: We are thoroughly investigating each and every aspect of the report about malicious and unlawful cybercrime activities by foreign entities in mid-2020. There have been no further updates from the exchange at press time. What do you think about this Buyucoin hack? Let us know in the comments section below. View the full article

While the price of bitcoin and numerous cryptocurrencies have jumped in value, a great number of merchants have been willing to accept digital currencies for goods and services. These days a crypto proponent can buy literally anything with their crypto assets and some of these items are very unique and extraordinary. Crypto Spenders Can Build a Dream Home or Acquire Luxury Vehicles There’s an awful lot of things people can purchase in 2021 by using cryptocurrencies like bitcoin, ethereum, bitcoin cash, litecoin, and others for payment. Since prices have been bullish, there’s been even more cryptocurrency acceptance taking place and even Paypal supports crypto assets. The following post is a list of a great number of crypto accepting merchants and items you can purchase using digital currencies. Because there are thousands of items and services people can buy with crypto assets today. For instance, bitcoin cash (BCH) supporters can leverage BCH to purchase a dream home in Antigua, by leveraging the local real estate firm Remax Antigua. But that’s not all, according to current data from map.Bitcoin.com, there’s a whopping 60 bitcoin cash (BCH) accepting merchants located on the island of Antigua. Moreover, people can leverage the map on map.Bitcoin.com to find thousands of BCH accepting businesses all over the world. Cryptocurrency users can also find other areas in the world that are renting or selling apartments, villas, townhouses, flats, and more. Just in case the person wants to relocate to another area in the world, they can by using crypto assets for settlement. Thousands of Crypto Accepting Merchants Worldwide Crypto users can also purchase various forms of aircraft, trucks, and an assortment of luxury vehicles like a Bentley, Rolls-Royce, or a Bugatti. The Atlanta-based Bitpay also has an enormous list of digital currency accepting merchants that leverage the firm’s payment system. With Bitpay, users can spend stablecoins, bitcoin (BTC), bitcoin cash (BCH), and ethereum (ETH). The directory shows that people can spend crypto for gift cards at Amazon, Delta, Doordash, and Google Play. People can buy electronics from Newegg and jewelry and precious metals from Inverdiamond and Apmex. Moreover, Bitpay’s directory highlights things like entertainment and gaming that can be purchased from companies like Microsoft, Twitch, and Dish TV. Digital currency spenders can also buy clothes with crypto assets like hats, scarves, sweaters, jackets, and more. As of July 2020, over 2,500 Austrian merchants can accept cryptocurrency payments via the payment processor Salamantex. Digital currency supporters can further leverage Purse.io to get up to 20%+ discounts on Amazon by shopping with BTC or BCH. Hundreds of businesses worldwide accept crypto assets through the payment gateway gocrypto.com. Today, people can purchase a wristwatch crafted by luxury watchmaker Franck Muller with crypto. From dresses, scooters, earrings, coffee (espresso), wine, soda, beer, energy drinks, and alkaline water, you can buy literally anything with cryptocurrencies. It’s likely that as crypto-assets continue to grow in value, the acceptance of such assets will swell as well. What do you think about all the items you can purchase with crypto assets in 2021? Let us know what you think about this subject in the comments section below. View the full article

While the price of bitcoin has been consolidating just above the $30k handle, onchain data shows that when the price dropped to $28,800, bitcoin whales bought the dip. Statics from Glassnode’s web portal shows the number of addresses with more than 1,000 bitcoin has spiked after hitting the price bottom. The Number of Addresses Holding 1,000 Bitcoin Spikes According to onchain statistics, bitcoin whales with a balance of more than 1,000 bitcoin are growing and the recent BTC price drop helped bolster the metric. A few days before the drop to the $28k zone, BTC prices were coasting along between $35k to 38k in USD value. The drop to $28,800 per bitcoin on Thursday, was the lowest price drop so far this year. But the dip did not last very long and Glassnode stats show that the number of addresses with more than 1,000 bitcoin has increased significantly. #Bitcoin whales bought the dip. pic.twitter.com/sviiiQyNSV — Documenting Bitcoin 📄 (@DocumentBitcoin) January 16, 2021 A number of analysts on social media platforms spoke about the whales (1,000+ BTC holders) growing after the price drop allowed them to scoop as many units as they could. Glassnode data shared by the researcher Willy Woo, which shows bitcoins may be moving off the market to stronger hands. “Oh look,” the researcher Willy Woo tweeted. “Suddenly there’s a whole bunch of newly minted whales…. holders of 1000BTC / $32m of BTC. I’m seeing more whales coming in on this dip,” Woo added. The bitcoin proponent further wrote: Coins are moving off the market to very strong holders, the ones that keep accumulating without selling. Double-Dipping and the Bitcoin Rich List The metric of 1,000+ BTC whales dropped some at the end of 2020, but has been rising ever since the two most recent price drops. For instance, on January 10, 2021, crypto markets suffered heavy losses and the price of bitcoin dropped more than 25% in 24 hours’ time. Similar to the last price drop on Thursday, at that time, bitcoin whales with addresses with more than 1,000 bitcoin had jumped in number. Glassnode stats that show the number of addresses with a balance of 1k BTC or more. The most recent drop and whales scooping up bitcoins from weak hands also follows the BTC reserve purchase announced by Microstrategy. The company revealed this week it had bought the dip, by buying 314 more bitcoins for $10 million in cash. Stats from the ‘Bitcoin Rich List’ or bitinfocharts.com’s 100 richest addresses shows that there was some deep accumulation on Thursday. Data currently indicates that there are 13,780 addresses that hold anywhere between 100 to 1,000 BTC in a single address. Further, there are 2,345 unique bitcoin addresses holding 1,000 to 10,000 coins at the time of publication. There are only 100 colossal sized whales (10k to 1 million BTC) in the crypto economy and only one address with 100,000 – 1,000,000 BTC today. What do you think about bitcoin whales accumulating more coins during the last two price dips? Let us know what you think about this subject in the comments section below. View the full article