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Despite the Indian supreme court quashing the central bank’s ban on crypto, some major banks, including HDFC and Indusind Bank, are still arbitrarily declining to process crypto transactions. Banks say they are waiting for instructions to lift the ban from the Reserve Bank of India (RBI). Also read: Bitcoin Legal in India — Exchanges Resume INR Banking Service After Supreme Court Verdict Allows Cryptocurrency Some Major Banks Still Decline Crypto Transactions The Indian cryptocurrency community’s dispute with the central bank, the Reserve Bank of India (RBI), over the banking ban continues. Even though on March 4, the Indian Supreme Court squashed the RBI’s circular, some banks are still refusing to reopen accounts for crypto businesses. In an attempt to rectify the situation, Mohammed Danish of Indian law firm Fintech Lawyers sent a letter to Finance Secretary Ajay Bhushan Pandey and two RBI officers regarding this “arbitrary denial of banking services by certain banks for sale/purchase of crypto assets.” Emphasizing the supreme court order, he wrote: Few instances have come light which clearly suggest that bank(s), including HDFC and Indusind Bank, are still arbitrarily declining to process the transactions for sale/purchase of crypto assets. The Supreme Court of India ruled on March 4 that the RBI circular which banned banks from providing services to crypto businesses was unconstitutional. “In most of the cases, the banks have not given any written communication but verbally informed their customers that they are waiting for RBI notification in this regard,” the lawyer continued. HDFC is India’s largest bank by market capitalization as of March and is the country’s largest private sector lender by assets. Indusind Bank was formally inaugurated in April 1994 by Dr. Manmohan Singh, the then finance minister of India. The RBI issued a circular in April 2018 banning regulated financial institutions from providing services to crypto businesses. The ban went into effect three months later and several crypto stakeholders immediately filed writ petitions challenging the ban. After about two years, the supreme court finally ruled that the circular was unconstitutional. Lawyer Says Banks’ Refusal Is Illegal and Unjust “Now when the said circular doesn’t exist anymore, the banks (RBI regulated entities) must comply with the order of the supreme court and start providing banking services for sale/purchase of crypto assets impartially as they provide services for all other legitimate transactions,” Danish wrote. “It is pertinent to mention that the order of the Hon’ble Supreme Court has given no specific direction to RBI for issuing a separate notification to the banks for compliance of the said order.” He asserted: Banks’ refusal to provide services for sale/purchase of crypto assets is absolutely illegal, unjust and arbitrary in the eyes of law and the same amounts to wilful disobedience to the order of the Hon’ble Supreme Court. “In view of the above, we request you to issue official communication to all the banks as soon as possible with regard to the matter under discussion,” he concluded. The RBI’s April 2018 circular has been quashed but the central bank has not conveyed the supreme court verdict to the banks it regulates. Banks Waiting for RBI’s Instructions The Economic Times interviewed some bankers on the crypto banking ban issue. Some told the publication that “Lenders would open their channels for cryptocurrency trade only on explicit regulatory orders from either the central bank or the parliament, as the legality of such trades is yet not clearly defined in India.” An unnamed senior banker was quoted as saying: We will be guided by RBI’s directions on the matter and once we get clarity we will act appropriately. As banks, some of the concerns we had on cryptocurrencies were around security, use of money and traceability. Sathvik Vishwanath, CEO of local crypto exchange Unocoin, explained: “I don’t think RBI is instructing the banks to support the crypto industry. They are not obligated to do so as per the supreme court verdict.” Another bank executive noted that “The banking system including the regulators are yet to come up with a sound supervisory mechanism to govern cryptocurrencies.” The Indian government has been deliberating on the “Banning of Cryptocurrency and Regulation of Official Digital Currency Bill 2019” since February last year. The bill seeks to ban all cryptocurrencies except state-issued ones. It was drafted by an interministerial committee (IMC) headed by former Finance Secretary Subhash Chandra Garg who has since resigned from his position in government. This bill was supposed to be introduced in parliament in the winter session of last year but it was not. The central bank is not happy with the supreme court verdict quashing its circular on cryptocurrency and is reportedly planning to file a review petition on the grounds that the anonymous nature of crypto transactions poses a systemic risk to India’s banking system. The RBI has 30 days to file this petition. Meanwhile, it was reiterated in court that cryptocurrencies, such as bitcoin, are not banned in India. Do you think banks should wait for the RBI to instruct them to lift the ban or start servicing crypto businesses based on the supreme court verdict? Let us know in the comments section below. Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Images courtesy of Shutterstock. Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here. The post Some Indian Banks Ignore Supreme Court Verdict on Cryptocurrency, RBI Urged to Rectify appeared first on Bitcoin News. View the full article

Prior to the market carnage on March 12, the Grayscale Bitcoin Trust (GBTC) had acquired over 300,000 BTC. Grayscale’s trust has been one of the longest-running FINRA approved investment vehicles with bitcoin assets under management. On Feb. 5, GBTC shares climbed more than 10% that week and investors were also paying a 20-30% premium. Since then and after the market downturn on Thursday, GBTC shares are down 45% from $11.52 to $6.32 per share. Also read: Market Update: Cryptocurrency Market Cap Sheds $90B, Margin Calls Spike, Futures Slide The Grayscale Bitcoin Trust Holds More Than 300,000 BTC When people check the price ticker usually they are gauging the price from one of the multitudes of crypto spot exchanges worldwide. They notice that the price has slid considerably, but what they often don’t see is the adverse effects on other parts of the industry. The market carnage on Thursday saw massive derivatives liquidations, margin calls from lenders, and exchange-traded crypto products felt the wrath. The Grayscale Bitcoin Trust (OTCMKTS: GBTC) was one investment vehicle hit hard by the storm. News.Bitcoin.com reported on GBTC on Feb. 5, 2020, when shares were trading for $11.52 per share. A few weeks later, it was reported that GBTC held more than 300,000 BTC under management ($1.5 billion). Three days ago on Reddit, one person discovered the trust recently crossed the 300K BTC mark and stated: By March 10, GBTC issued 311,309,400 shares which is equivalent to 300,619 BTC. This means GBTC investors added 39,570 BTC to their holdings. ‘A Solidified Role as a Store of Value’ and Grayscale’s Drop Gold Campaign March 10 was just before the onslaught on crypto markets that took place on Thursday and GBTC was trading for $9.26 a share. Today, after Thursday’s market havoc, GBTC is down 31.7% since March 10 and 45% down since our report in February. Moreover, on March 2 the managing director of Grayscale Investments, Michael Sonnenschein, told The Compound that BTC is a “flight to safety.” “Bitcoin itself has solidified its role as a store of value or as a digital gold,” Sonnenschein told the reporter. “So I talk to an institution, they now look at bitcoin as part of the same flight to safety as they might look at bonds or gold or other things that have served in that capacity for them, and that wasn’t a widely-held narrative probably until about the last 12 or 18 months.” During the course of 2019, the crypto industry was filled with talk of institutional interest joining the BTC economy. Last May, Grayscale started a multi-million dollar marketing campaign called “Drop Gold.” The campaign included a year-long run of aired commercials on national television in the U.S. and the commercial shows gold investors being tied down by the clunky old metal. GBTC shares have lost 31.7% since March 10 and 45% since Feb. 5, 2020. Ever since the stock markets crashed on March 12, gold prices have dipped in value after touching all-time highs alongside various precious metals markets. In fact, on Friday gold prices lost 4.5% and the metal faces the biggest weekly loss since 1983. Financial reporters Myra Saefong and Mark DeCambre detailed on March 13, that “gold futures [saw the] largest weekly loss in more than 8 years.” Gold did see massive trade volume and the U.S. Mint recently sold out of American Silver Eagle coins. Even though gold has taken a major hit during the last few days, percentage-wise it’s done better than BTC during the current economic meltdown. Gold prices took a hit from ‘Black Thursday’s’ market bloodbath but not nearly as bad as BTC. Have Institutional Investors Left the Crypto Building? BTC spot prices today show consolidation and a few slight gains during the late afternoon trading sessions on March 14. If BTC prices continue to rise throughout Sunday’s trading sessions, then GBTC shares will likely see a lift in value on Monday. Despite the market downturn, people think that institutional investors have stuck around while others believe they have left crypto markets. “The rumors are institutional investors triggered the bitcoin cascade,” one crypto proponent tweeted on Saturday. “Today proves that institutions buying Bitcoin has a flip side,” tweeted Jimmy Song two days prior. During his interview Grayscale’s managing director Sonnenschein said that BTC as an asset class won’t be going away any time soon. “There is ever-growing evidence that this asset class is not going away — investors want access to it, and if the legacy institutions want to remain competitive, they’re going to have to open the door to this asset class for their clients,” Sonnenschein said. What do you think about Grayscale keeping 300K BTC under management? Do you think institutional investors are still interested in bitcoin after the market carnage on Thursday? Let us know what you think about this subject in the comments section below. Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Price articles and market updates are intended for informational purposes only and should not be considered as trading advice. Neither Bitcoin.com nor the author is responsible for any losses or gains, as the ultimate decision to conduct a trade is made by the reader. Cryptocurrency and OTCMKTS: GBTC prices referenced in this article were recorded on Saturday, March 14, 2020, at 4 p.m. EST. Image credits: Shutterstock, Grayscale.co, Google Stocks, Goldprice.org, Youtube, Fair Use, Wiki Commons, and Pixabay. Want to create your own secure cold storage paper wallet? Check our tools section. You can also enjoy the easiest way to buy Bitcoin online with us. Download your free Bitcoin wallet and head to our Purchase Bitcoin page where you can buy BCH and BTC securely. The post With $1.5 Billion Under Management Grayscale Bitcoin Trust Slides 30% appeared first on Bitcoin News. View the full article

Crypto valuations haven’t been the only casualties of this week’s market crash; crypto networks have also felt the strain. As onchain activity has ramped up in response to the market slump, fees have soared and the mempool filled on the BTC and ETH chains. Other crypto networks have operated smoothly, however, despite the pandemonium. Also read: Market Update: Cryptocurrency Market Cap Sheds $90B, Margin Calls Spike, Futures Slide Mempool Fills on Bitcoin’s Most Volatile Day in a Year As bitcoin lost 50% of its value on Black Thursday, traders rushed to move coins out of cold storage and swap them for stablecoins on crypto exchanges. The increased network activity fueled a surge in BTC and ETH fees, which were significantly higher than usual on March 12-13. On Thursday, March 12, the BTC network saw heavy congestion. Data from mempool.space. On Thursday, gas prices passed $3.70 on Ethereum, while Bitcoin’s mempool was backed up with enough transactions to fill over 30 blocks. The congestion on both networks has since abated, with ETH gas prices back to just over 2 cents and the mempool down from 120,000 unconfirmed transactions on its March 12 peak to the daily average of 70,000 at press time. BTC fees, meanwhile, which rose to 75 sats/byte for 1-2 block inclusion on March 13, are down to ~60sats/byte, which is still more than double their weekly average. On March 12 and 13, Ethereum gas prices spiked. Data from etherscan.io. Bitcoin Cash and Dogecoin Networks Keep Ticking Over Fees on Bitcoin Cash have remained low all week, despite the increase in exchange inflows and outflows. At press time, the BCH network is 1,420x cheaper than BTC when transaction fees are compared in USD. Over 18,000 BCH transactions were sent on March 12, rising to 20K the following day as the markets began to heat up. On March 13, BTC fees increased sharply relative to BCH fees. Data from cash.coin.dance. Dogecoin has had a good week, holding up well as most other cryptos were shedding 50%. Dogecoin’s increased trade volume appears to have been in response to rising BTC and ETH fees, prompting traders to use DOGE to transfer value between exchanges, as was the case in 2017 when the crypto market was making violent moves in the opposite direction. On March 10, DOGE peaked at 33K onchain transactions, and has recorded 29K transactions in the last 24 hours, with a median fee of just $0.00168. Number of unconfirmed transactions in the BTC mempool for the past week according to transactionfee.info. The total peaked on March 13. When the median fee for transacting on all measurable crypto networks is compared, BTC is the most expensive, at $0.117, followed by Lisk ($0.0836) and then Ethereum ($0.0409). Bitcoin Cash ($0.000831) and Dogecoin ($0.00169) are two of the cheapest according to Messari. The cheapest networks of all to transact on are the relatively centralized chains that do not utilize Proof of Work: Stellar ($0.000000385) and Ripple ($0.00000183). Panic selling was not the sort of mass adoption that crypto proponents had in mind. It has nevertheless proven a good test of how crypto networks hold up when the going gets tough. BTC average network fees according to txstats.com. Fees peaked on March 14. Where do you see the markets going from here? Do you think traders have been using dogecoin to transfer value between exchanges? Let us know in the comments section below. Disclaimer: Price articles and market updates are intended for informational purposes only and should not be considered as trading advice. Neither Bitcoin.com nor the author is responsible for any losses or gains, as the ultimate decision to conduct a trade is made by the reader. Always remember that only those in possession of the private keys are in control of the “money.” Images courtesy of Shutterstock. Did you know you can verify any unconfirmed Bitcoin transaction with our Bitcoin Block Explorer tool? Simply complete a Bitcoin address search to view it on the blockchain. Plus, visit our Bitcoin Charts to see what’s happening in the industry. The post Crypto Networks Stress Tested During Bitcoin’s Wild Week appeared first on Bitcoin News. View the full article

Digital currency markets have been consolidating since Thursday’s massive price drop after more than $90 billion was erased from the cryptoconomy. Crypto markets saw some brief gains on Friday but prices have been meandering just above current support levels. At the moment, traders and crypto proponents face uncertainty amidst the ongoing coronavirus scare and economic fallout. Also read: The 35 Most Influential Bitcoiners Dominating Crypto Twitter by Follower Count Crypto Markets Consolidate at Support Levels Cryptocurrency prices have seen better days as BTC was over $9,100 per coin seven days ago. On March 12, otherwise known as ‘Black Thursday,’ BTC dropped from the day’s $7,648 high to a low of $3,870 per coin. The swift downfall shook investors to the core, but soon after BTC jumped back above the $5K region and it’s been hovering above this price zone ever since. The cryptoconomy was just over $245 billion on March 1, 2020. All 5,000+ coins in existence have lost roughly $90 billion since then. At the time of publication on March 14, BTC is trading at $5,354 but prices have been between the $5,000 to $5,700 range during the last 24 hours. BTC is down 5.7% in the last 24 hours and 41% for the last seven days. Reported trade volume for BTC today is $10 billion, but Messari.io’s “real volume” stats show $2.4 billion. Lots of BTC traders are hedging with stablecoins like tether (USDT) which captures 75% of today’s BTC trades. The USDC stablecoin commands 1.56% of BTC trades and PAX has around 1% as well. This is probably the first time ever that USDC and PAX have been a top-five trading pair with BTC. Top 10 cryptocurrency market caps on March 14, 2020. Following BTC is ethereum (ETH) which is trading for $127. The price per ETH is down 4.4% today and down 47.9% for the week. Reported volume for ETH is around $3.1 billion but “real trade” volume on Saturday is about $659 million according to Messari.io. XRP captures the third-largest market cap today and each XRP is swapping for $0.15 per coin. XRP lost 6% in the last 24 hours and 36% for the last seven days of trading. The stablecoin tether (USDT) holds fourth position on March 14 and the coin is swapping with more than two-thirds of the entire cryptoconomy. BTC/USD market on March 14, 2020. Bitcoin Cash (BCH/USD) Market Action Bitcoin cash (BCH) holds the fifth position today after being knocked out of fourth spot by tether (USDT). BCH is down 4.7% on Saturday and the coin lost over 50% during the course of the last week. The top trading pair with bitcoin cash on March 14 is tether (USDT) which commands more than 65% of BCH trades. This is followed by BCH trading pairs like BTC (19%), USD (10%), KRW (2.3%), and ETH (1.3%). At the time of publication, bitcoin cash (BCH) is swapping for $171 per coin. BCH/USD market on March 14, 2020. Charts show BCH is holding the consolidation period after support was broken on March 12. BCH is still up 16.3% for the last 12 months, but most of the yearly gains are gone. During the last 90 days against the USD, BCH is down 17% and against BTC the price is down 14%. Over $100 Million in Margin Calls While crypto markets lost more than $80 billion, news.Bitcoin.com reported that more than $2.2 billion was liquidated from traders on Bitmex, Okex, Huobi, Binance, and FTX. Additionally, according to a report written by Nathan DiCamillo, the firm Genesis Capital called for $100 million in collateral from about 40 different customers. During the last two years, cryptocurrency lending solutions have been extremely popular. Blockfi had to make some margin calls and reports say Genesis Capital called for $100 million in collateral from about 40 different customers The recent market carnage has caused other margin calls from firms like Blockfi as well. “With downward price movement, portions of our USD loan book experience margin calls (and liquidations, in some cases),” Blockfi’s CEO Zac Prince wrote on Thursday. “Issuing a margin call or selling a client’s assets is never something that we want to do and our system is designed with both our clients’ interests and Blockfi’s risk management top of mind.” Miner Dumps Coin from 2010 Just Before Market Slide Crypto observers have noticed 1,000 BTC that was mined on August 24, 2010 was recently sent to a Coinbase wallet on March 10. Earlier in the day, a user named ‘whoamisoon’ posted a thread to bitcointalk.org claiming to be the owner of the coins. The individual said he used to mine BTC for a hobby and found out he had 1,000 coins sitting on an old USB drive. He asked the forum visitors about how he could sell the BTC and obtain his BCH from the address as well. “I mined some bitcoin for a little bit, a long time ago; back when it was still possible to mine with GPU — I haven’t been active here for a long time,” the person wrote. The crypto community has been discussing the alleged sale on forums and social media and they believe he obtained at least $7-8K for the coins or roughly $8 million. Derivatives Market Open Interest Dives On March 13, crypto derivatives analytics provider Skew.com reported on the market carnage that took place on Thursday. “Bitcoin finally caught up with Wall Street crashing 39% yesterday during one of the most memorable and hectic trading session in its young history,” Skew tweeted. “Nearly $50 billion bitcoin futures were traded across crypto exchanges with two exchanges – OKEx & BitMEX – > $10 billion and eight > $1 billion. Total open interest – the number of outstanding futures positions opened at the close – collapsed nearly 50% to $2 billion,” the analyst added. Data stemming from the Bakkt Volume Bot shows that open interest declined significantly as well. An announcement from CME Group made a few people believe that the derivatives giant ceased trading BTC futures but this was not the case. CME simply closed the old school “Chicago trading floor” due to the spread of the coronavirus. Bitcoin futures and options continued but open interest in these products dropped significantly. All Eyes on the Hashrate and Halvings Crypto proponents and traders haven’t seen prices this low since March 2019 and a good number of individuals thought the cryptoconomy was about to see another bull run. Now supporters are focused on the hashrate and thinking about the halvings coming up. SHA256 miner profits with an electricity cost of $0.12 per kWh recorded on March 14, 2020, at 11 a.m. EST. Block rewards will be slashed in half for BTC, BCH, and BSV miners during each network’s halving. If crypto prices drop lower or even remain where they are today then big mining operations might have a hard time holding onto profits. BTC’s hashrate has dipped a hair but remains above 100 exahash (EH/s). Where do you see the cryptocurrency markets heading from here? Let us know what you think about this subject in the comments section below. Disclaimer: Price articles and market updates are intended for informational purposes only and should not be considered as trading advice. Neither Bitcoin.com nor the author is responsible for any losses or gains, as the ultimate decision to conduct a trade is made by the reader. Always remember that only those in possession of the private keys are in control of the “money.” Cryptocurrency prices referenced in this article were recorded on Saturday, March 14, 2020, at 11:30 a.m. EST. Images via Shutterstock, Trading View, Bitcoin.com Markets, Twitter, Skew analytics, Fair Use, Pixabay, Bakkt Volume Bot, and Wiki Commons. Want to create your own secure cold storage paper wallet? Check our tools section. You can also enjoy the easiest way to buy Bitcoin online with us. Download your free Bitcoin wallet and head to our Purchase Bitcoin page where you can buy BCH and BTC securely. The post Market Update: Cryptocurrency Market Cap Sheds $90B, Margin Calls Spike, Futures Slide appeared first on Bitcoin News. View the full article

Once set up with a bitcoin or bitcoin cash wallet and some coins, using and sending them is pretty easy. Part of this process involves paying a transaction fee, which is a small amount of coin included in a transaction incentivizing miners to work the tx into a block. Both BTC and BCH transactions have fees, with BCH fees being much lower. This post will detail some ways to find and track the best possible fees, set tx fees in your wallet, and make the most of this aspect of using peer-to-peer electronic cash. Also read: How To Start Using Bitcoin: Buying, Storing, and Spending Crypto How Transaction Fees Work A transaction (tx) fee is a small amount of bitcoin included in a transaction that rewards miners for validating a payment, which results in confirmation on the blockchain. Higher fees generally will result in a tx being processed more quickly. Depending on the nature of your transaction, you may not be in a hurry to have it confirmed, and can set a lower fee in your wallet which might result in the tx being confirmed in a later block. In a more urgent situation, a higher fee will get your tx processed more quickly. This post will look at both BTC and BCH tx fees, and how to make the most of them. Tracking BCH and BTC Fees bitinfocharts.com For starters, the highly customizable chart above from bitinfocharts.com, shows average BTC fees (blue) as compared to average BCH fees (red) over the past three months in USD. BCH fees are generally much cheaper thanks to a larger block size limit, meaning more transactions can fit into each block and the network is less subject to congestion. When a network is congested, users set higher and higher fees to outbid each other so their transaction will be processed first. Another site that displays fees in a readily digestible, comparative format is bitcoinfees.cash, which shows the median Bitcoin Cash and Bitcoin Core network fees. “Typically, most people using Bitcoin as a currency don’t want to wait many blocks for their transactions to be confirmed,” the site maintains,” so they pay next block fees to get their transaction confirmed within 10 minute block times. Median fees are just the middle range of all the fees to give users a better idea of the average amount being paid by everyone, discarding high and low fees.” Median fees for the BCH and BTC networks as displayed on bitcoinfees.cash. Bitcoin Cash fees are typically fractions of a penny in USD, making the network attractive to users seeking fast and cheap validations. Transaction Size as a Factor One thing that the average user or crypto newcomer might not be aware of is that calculating an appropriate tx fee can be much more involved than just looking at averages and medians. Transaction size (measured in bytes) also affects miner incentive to take your tx out of the mempool waiting room and process it. Miners are looking for value, so even if a high fee is paid, if the tx size is huge, there is no guarantee it will be processed as quickly as others paying the same amount. This is why some wallets offer highly customizable fee adjustment options and detailed tx info which can be used in conjunction with real-time network data to customize a fee. Luckily for most users, however, built-in fee estimators are fairly reliable for general purposes, taking tx size and fee rate into account automatically. For those wanting to see current tx size info on both the BTC and BCH networks, charts.Bitcoin.com provides this resource. Average tx sizes for both the BCH and BTC networks are displayed at charts.Bitcoin.com. Adjusting Fees in Your Bitcoin Wallet Fees (often measured in satoshis per byte) can typically be adjusted in bitcoin wallets depending on the user’s individual needs. For users of the Bitcoin.com wallet — both desktop and mobile — there is a section entitled “Network fee policy” in the settings menu. Once tapped or clicked, a new menu is displayed which allows users to select their level of urgency, with options like “priority,” “normal,” and “economy.” This takes some of the guesswork out of setting fees where manual adjustment might be challenging for beginners, or inconvenient for everyday users. Network fee policy information and settings in the Bitcoin.com Wallet. Some wallets, such as the Electrum BTC wallet and the Electron Cash wallet for BCH, feature a slider by which the tx fee can be adjusted manually. In the Electron Cash wallet the satoshi/byte fee rate is set as an integer from 1 to 10. In the Electrum wallet for Bitcoin Core, the fee rate is set according to a block target estimated time of arrival (ETA) as seen in the image below. The Electrum BTC wallet also provides further options for customizing fee settings such as the choice to estimate by mempool status, or to simply set a fixed fee rate. Fees can also be edited manually, and unconfirmed Replace-By-Fee (RBF) transactions “batched” (grouped together into a single transaction) to save on prices. The Electrum BTC wallet allows fees to be manually adjusted focusing on a block ETA, among other options. This likely sounds complicated for newcomers to crypto and everyday users, which is a large part of the reason Bitcoin Cash features a larger block size limit than Bitcoin Core. The greater capacity allows for less congestion and negligible fees, making many of the complications found in adjusting fees on the BTC network often seem unnecessary. BCH’s Electron Cash wallet also allows for a custom fee rate to be set, beyond the default slider options, but as RBF is not part of the Bitcoin Cash codebase for security reasons, RBF batches aren’t available in this wallet. Timing Your Transaction for the Best Fees As with traveling, sending a bitcoin tx is most easily and efficiently done when the roads are clear and traffic is light. If the side streets are clogged and you have to take a toll road, your trip is going to cost more. Also, depending on the time of day there may be traffic jams or rush hour congestion. Txstreet.com provides an excellent resource for viewing tx and mempool data, so bitcoiners can see the best time to send a transaction and a reasonable fee to pay. Txstreet.com When it comes to the best time to send a tx, that depends on a variety of factors. Price spikes can see network activity increase dramatically, and with it, fees. For example, just days after BTC’s historic all time high in December 2017, the average tx fee in USD was over $37 per transaction. This resulted in legions of everyday bitcoiners having to wait days for their txs to be validated. While this was certainly a special event, network congestion nonetheless plays a role in determining daily fees. Johoe’s Bitcoin Mempool Statistics shows that early a.m., March 14, found the BTC mempool with significantly more unconfirmed transactions than at other times of the day. A highly detailed resource for analyzing both the BTC and BCH mempool and tx fee activity, and getting familiar with daily, weekly, and market-correlated patterns across time can be found at Johoe’s Bitcoin Mempool Statistics. As the image directly above shows, the early a.m. hours of March 14 saw more unconfirmed transactions in the mempool as compared to other times of the day. The correlating “Pending Transaction Fee in BTC” chart on the site shows generally higher fees during the same interval. The site notes: “The data is separated into different fee levels given in satoshi per bytes. The lowest colored stripe is for transactions that pay the lowest fee. Higher fee transactions are stacked on top of it. Since miners prefer high fee transactions, a new block usually only removes the top 1 MB from the queue. If a colored stripe persists over several hours without getting smaller, this means that transactions paying this amount of fee are not confirmed during this time, because there are higher paying transactions that take precedence.” Sites like this and others can help bitcoiners, regardless of wallet or preferred network, be sure they’re setting a good tx fee that will help them save money and get their transaction validated in a timely manner. How do you find the best fees when sending bitcoin or bitcoin cash? Let us know in the comments section below. Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Images courtesy of Shutterstock, fair use. Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The Local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here. The post How to Track, Get and Set the Best Transaction Fees with Bitcoin and Bitcoin Cash appeared first on Bitcoin News. View the full article

The price of ethereum dropping double digits on March 12 sent shockwaves through the decentralized finance (defi) community. Makerdao’s single collateral DAI has been struggling and the low price of ETH has left millions worth of DAI undercollateralized. The defi project’s undercollateralizition was also blamed on price oracle discrepancies. Also read: The 35 Most Influential Bitcoiners Dominating Crypto Twitter by Follower Count Makerdao Community Deals With Black Swan Event The Makerdao project and the stablecoin DAI have been extremely popular over the last 12 months. The total value locked (TVL) in Maker touched an all-time high (ATH) on February 14, 2020. Following the ATH on Valentine’s Day, Maker’s TVL started to drop and has been sliding downward for three weeks straight. Things got a lot worse when cryptocurrency markets faced coronavirus fears and started dropping in value three days ago. Then on March 12, the cryptoconomy lost more than $44 billion rapidly and the price of ethereum (ETH) dropped below the $100 range. @MakerDAO situation explainer thread ELI10 : – 4.5M$ underwater due to auction fail – Surplus Buffer of 500k eaten Minting MKR is a seriously considered option. Maker jargon in (), will try to use human words as much as possible — Marc 'aDai is Money' Zeller (@lemiscate) March 12, 2020 Because the Makerdao project leverages ETH for overcollaterization, the falling price of ether put significant pressure on the DAI stablecoin and collateral loans. Not only was the price of ether hurting DAI, but Makerdao’s oracles had issues with exchange prices being different. While the entire crypto cap shed billions on Thursday, exchange rates for every coin were all over the place, depending on which source was used. Estimates say that around $4 to 4.5 million worth of DAI was undercollateralized due to the event. Big problems with DAI. Liquidators are acquiring undercollateralized vaults at zero cost. Check on your vaults and avoid liquidation at all costs. https://t.co/yKXQDtCUHN — Chris Blec (@ChrisBlec) March 12, 2020 Liquidations and Circuit Breakers This caused serious disruption for DAI holders and the team behind the Makerdao project. According to one person’s testimony, DAI’s issues caused him to lose 1,713 ETH from a Collateralized Debt Position (CDP) that was liquidated. The team of developers behind Maker contemplated an emergency shutdown in the midst of the sell-off as well. The proposal, however, was extremely controversial and not favored by everyone. Moreover, some defi proponents said that cryptocurrency exchanges need “circuit breakers” or “shut off” switches similar to traditional markets. “Today’s price moves in crypto are a strong argument for industry-wide circuit breakers,” Multicoin Capital’s managing partner Tushar Jain tweeted. “Crypto markets structurally broke today and leading exchanges need to work together to prevent a repeat.” “Crypto needs circuit breakers,” professor Emin Gün Sirer tweeted on March 12. “Every market needs circuit breakers to get the negative bot interactions to slow down. Exchanges going down under load is crypto’s version of circuit breakers.” Makerdao Struggles Predicted Two Years Prior Makerdao and the stablecoin DAI have dealt with issues before when the asset struggled to hold the dollar peg in April 2019. Nothing has been as severe as the March 12th crypto carnage but Makedao’s ‘black swan’ event was predicted in June 2018. Bennett Tomlin’s blog post called “A Deep Look at Maker DAO and Dai and MKR” pretty much sums up the March 12th Makerdao issues two years before it happened. “[DAI] cannot always be collateralized in excess, because if there is a black swan event that destroys the value of ethereum that is no longer true,” Tomlin’s research highlighted. Tomlin added: My biggest fear here is in the case of a serious, say 40% 1-hour movement in the value of Ethereum. You are going to have people selling their Ether, possibly into Dai if it is trading in a pair, creating a strong demand driving the price of us, at this same time it is now easier to collateralize and create more DAIs, but the value of the collateral is rapidly depreciating, thus leading to a greater likelihood of Dai becoming undercollateralized. ‘Keepers and Maker Buyers Should Prepare’ Defi Pulse shows that Maker’s TVL right now has around $347 million USD on March 13 following Thursday’s crypto market sell-off. The defi action yesterday spurred a number of anomalies with collateral and observers noticed all kinds of discrepancies across multiple defi platforms. The Twitter profile ‘Crypto Curious’ believes that Polychain and Dydx “tried to help Makerdao in stopping more 0$ bid in auctions for under-collateralized CDPs.” “Around the time DAI was going up sharply to 1.05-1.09, there were many small DAI amounts coming from the Polychain address that were sent to DyDx,” Crypto Curious tweeted. “I believe they were lending DAI on the exchange in order to provide more liquidity to the system once they realized there was only one keeper bidding for the auction. By adding more DAI to the pool, they tried to reactivate the liquidation bots that had stopped working from lack of DAI liquidity.” The Makerdao team has published a blog post called “Recent Market Activity and the Next Steps” which addresses the ‘black swan’ event. The developers are discussing re-collateralizing the system. “The MakerDAO community will hold an executive vote on Friday, March 13, to adjust parameters to help ensure a similar situation doesn’t happen again. Details of the proposed adjustments are below, with a focus on auction parameters and restoring the Dai peg closer to 1 USD,” the team said on Thursday. Defi proponent Ryan Berckmans explained during the Makerdao emergency announcement that the “social contract of MakerDAO is that MKR tokens take a haircut in the event of system failure.” “Keepers and MKR buyers should prepare for sustained high gas prices, and downward pressure on ETH and MKR — The Dow Jones hit sell-off circuit breakers three times in the past week and a half. It’s a historic week,” Berckmans conceded. The defi project Makerdao now has plans to initiate a MKR governance token auction on March 15, 2020. The plan is to offset the $4 million that’s currently undercollateralized from the wrath of Thursday’s market carnage. What do you think about the recent problems with Makerdao dealing with the ETH sell-off? Let us know what you think about this subject in the comments section below. Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Image credits: Shutterstock, Iamnomad, Twitter, Defi Pulse, Fair Use, Wiki Commons, Makerdao logo, Coinmarketcap.com, and Pixabay. Want to create your own secure cold storage paper wallet? Check our tools section. You can also enjoy the easiest way to buy Bitcoin online with us. Download your free Bitcoin wallet and head to our Purchase Bitcoin page where you can buy BCH and BTC securely. The post ETH Price Strains Defi Collateral Loans as ‘Black Swan’ Event Strikes Makerdao appeared first on Bitcoin News. View the full article

Bitcoin Group SE, a prominent member of the European crypto industry, has been preparing to apply for permission to conduct crypto custody activities in its home country, Germany. The providers of such services in the Federal Republic are now recognized as financial institutions. Bitcoin Group, which has been in the business for some time, welcomes the changes that introduced licensing to the sector. Starting from Jan. 1, 2020, banks and other institutions are allowed to store and manage clients’ crypto assets. Also read: Bitcoin Is Financial Instrument, Clarifies Germany, Crypto Custodians Qualify as Financial Institutions Bitcoin Group Confirms Plan to Obtain Crypto Custody Permit As the organization behind one of the largest crypto trading platforms in Europe, Bitcoin Group SE has already established itself as a major custodian of digital assets in Germany. Its fully owned subsidiary, Bitcoin Deutschland AG, operates Germany’s leading regulated marketplace for cryptocurrencies such as BTC, BCH and ETH. The investment group is also owner of Futurum Bank AG and holds 50% of the shares of Sineus Financial Services GmbH, an entity supervised by the German financial watchdog, Bafin. The Federal Financial Supervisory Authority of Germany approved the acquisition of Futurum Bank in July 2019. In December, Bitcoin Group announced it plans to apply for crypto custody permission for its companies from the Federal Financial Supervisory Authority. It hopes to expand its positions in the market for these types of services and the acquisition of Futurum Bank AG, which was approved by Bafin, creates new opportunities to attract institutional clients. Securing a license became necessary following last year’s adoption of legislation transposing EU’s Fourth Anti-Money Laundering Directive into national law. The new regulations entered into force on Jan. 1, 2020. The German Banking Act now defines crypto custody business as the safekeeping and managing of crypto assets ​​or private cryptographic keys that serve to hold and store crypto assets that can be transferred to others. In recently published guidance, Bafin clarified that these activities represent financial services. Financial institutions had until the end of March to declare intent to obtain a license and the deadline for filing an application is Nov. 30. Speaking to news.Bitcoin.com, Bitcoin Group Managing Director Marco Bodewein confirmed that the holding company is going to apply for a crypto custody license and explained: Due to the current requirements of the authorities, the final application needs to be filed by November 2020 but we will apply officially much earlier. As of now we do not see any challenges for Bitcoin.de at all as we are already in the custody business for several years. German Banks Are yet to Enter Cryptocurrency Market Bodewein added that Bitcoin Group welcomes the current development of the regulatory regime in Germany which will open the market for more players including banks entering the crypto space. Competition is usually good for the business, he emphasized, although his crypto company has not yet experienced any stiff competition from traditional financial institutions. The executive said that Bitcoin Group would also appreciate the adoption of regulations at EU level. “Certainly, the German approach is the first within Europe so it might be possible that Germany created a blue print for the rest of Europe,” Marco Bodewein commented. The European Commission is gathering feedback from EU citizens, businesses, and regulators to establish a common regulatory framework for crypto assets and markets. According to the latest corporate results published in September, Bitcoin Group’s earnings before interest and taxes amounted to €4.228 million in the first half of 2019. During the same period, Bitcoin.de reported an increase in its customer numbers to 808,000 registered users, up from 753,000 at the end of H1, 2018. Bitcoin Group believes the growth is largely due to the expansion of the range of services provided by the exchange including the launch of a mobile app. The acquisition of Futurum Bank, formerly investment bank Tremmel Wertpapierhandelsbank GmbH, will mow allow the holding to offer new products related to cryptocurrencies, carry out proprietary trading and operate a network of Bitcoin ATMs. How do you think Germany’s new regulations will affect the crypto industry in Europe? Share your thoughts on the subject in the comments section below. Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Images courtesy of Shutterstock. You can now purchase bitcoin without visiting a cryptocurrency exchange. Buy BTC and BCH directly from our trusted seller and, if you need a bitcoin wallet to securely store it, you can download one from us here. The post Germany’s Bitcoin Group Welcomes Licensing for Crypto Custodians, Expects Competition From Banks appeared first on Bitcoin News. View the full article

Following three consecutive days of losses shedding $50 billion off the cryptoconomy, digital currency markets lost another $44 billion in a matter of hours on March 12. Not only did ‘Black Thursday’ wreck traditional markets, but gold and bitcoin felt the brunt as well. Amidst the sell-off, the whistleblower Edward Snowden said that he “felt like buying bitcoin” as he believes the price drop was invoked by “panic” rather than fundamentals. Also read: The 35 Most Influential Bitcoiners Dominating Crypto Twitter by Follower Count Whistleblower Edward Snowden ‘Felt Like Buying Bitcoin’ on Black Thursday Calling the Sell-Off ‘Too Panicky’ The cryptoconomy was punched directly in the gut on March 12, as BTC prices slid from $7,648 per coin to a low of $3,870 on Thursday afternoon. The drop was the biggest in 2020 and the lowest dip BTC markets have seen since March 2019. Crypto prices have rebounded a hair since the market rout on Thursday and BTC is currently hovering between $5,300-5,600 per coin. During the course of ‘Black Thursday,’ many investors who got into crypto early said that even they were shaken by the swift downfall. BTC prices are meandering between $5,300-5,600 per coin on March 13, 2020. The day prior on ‘Black Thursday,’ BTC prices dropped to $3,870 per BTC. “Doesn’t matter that I’ve been around bitcoin for a long time, and that my bullish case is still intact – seeing this brutal 1-day move gives me anxiety. Sitting tight can be the hardest thing,” Tuur Demeester tweeted on Thursday. “I’ve been doing this a while, since 2014 professionally and before that personally,” said Alistair Milne. “Let me just say that this is right up there with the most OMG, adrenalin-pumping moments I’ve ever experienced in Bitcoin/crypto. Sincerely hope everyone is OK.” Meanwhile, as the price of BTC and most other digital assets dropped like a falling knife, the notorious whistleblower Edward Snowden said that it was the first time in a while he felt like purchasing bitcoin. Snowden’s Thursday evening tweet said: This is the first time in a while I’ve felt like buying bitcoin. That drop was too much panic and too little reason. It’s not the first time Snowden has talked about cryptocurrencies, as he’s mentioned bitcoin in the past on various occasions. In September 2019, the U.S. Department of Justice (DoJ) announced a lawsuit against Snowden and decided to take all the proceeds from his book sales. A few hours after the DoJ lawsuit went viral on the web, Snowden tweeted: “In conclusion, this is good for bitcoin.” Edward Snowden has been a cryptocurrency proponent for quite some time. When Snowden said it was “the first time in a while I’ve felt like buying bitcoin” crypto enthusiasts were elated to hear his optimism. People can also donate to Snowden’s cause using cryptocurrency via the Freedom of the Press Foundation. Freedom of the Press Foundation supports donations in BTC, BCH, ETH, LTC, ZEC and XLM. Snowden also did an interview with the American Civil Liberties Union in 2018 where called the technology the “first free money” system in the world. “Bitcoin may not yet really be private money, but it is the first ‘free’ money,” Snowden stated during the discussion. In 2016, the whistleblower also once said that “new technologies raise the possibility of unstoppable tax protests.” ‘A Serious Monetary Alternative’ Snowden’s latest bitcoin tweet was welcomed by the crypto community and the tweet has been retweeted 2.6K times and has over 12,000 likes at the time of publication. “In times of systemic disruptions Bitcoin should be seen as a serious monetary alternative,” Bisq’s Manfred Karrer said in response to Snowden’s tweet. “Printing money like hell will have now a moral justification in contrast to events before like the bank bailout 2009, thus leading to a total overshoot and an extreme stress test.” A number of crypto enthusiasts shared the same sentiment on Thursday, even though many people were liquidated and lost a considerable amount of their portfolio’s value. “I’m buying. This is why bitcoin was invented,” tweeted Digital Currency Group founder Barry Silbert on Thursday. Francis Pouliot the founder of Bull Bitcoin said that he noticed a lot more buying than usual during the market rout. Pouliot wrote: If it’s any consolation, Bull Bitcoin is having its busiest day of the year. Inbox and new sign-ups exploding. Had to cancel my plans to hit the beach. People are most definitely FOMO buying the bitcoin dip at the OTC level. Twice more transactions from buyers than sellers. After BTC dropped to $3,870 per BTC, crypto traders and proponents wondered if the “bottom is in.” So far, after the climb back up to the $5,400 to $5,800 range, BTC prices have still lost over 40% during the last seven days. Bitcoin Proponents and Crypto Traders Debate the Elusive Price ‘Bottom’ Snowden’s tweet has consoled traders and crypto proponents who now believe the bitcoin bottom is in. “Just got paid in bitcoin at the absolute bottom,” one bitcoiner tweeted. “In all seriousness, if this isn’t the bottom then we’re in for a horrible few months/year,” a trader wrote after the dust settled. “Bitcoin is carving short term bottom near $4K after a massive 50% decline,” tweeted Cryptoveins. “Bitcoin is down more than 50% and broke many key supports such as $5,000 against the U.S. dollar. BTC price seems to be forming a short term bottom near $4,000 and it could recover,” the analyst added. I doubt the low is in. Maybe a pause/bounce for now before the next drop lower to 3100. I’m on sidelines for now #btc — TraderSZ (@trader1sz) March 13, 2020 Meanwhile, despite Snowden’s tweet and other ‘bottom’ feeders like Barry Silbert, a few skeptics don’t believe the absolute bottom is in. “No way it’s in,” crypto proponent Savage BTC explained. “Now that we know bitcoin is correlated to every financial asset in the world, the first question should be, is the market bottoms in? Which is highly unlikely considering we haven’t seen any earning for companies post [coronavirus].” The popular cryptocurrency trader Peter Brandt who called the BTC top in 2017 seems to have a bearish outlook as well. “If I interpret the chart without bias, I would say sub $1,000,” Brandt tweeted. What do you think about Snowden tweeting that ‘Black Thursday’ was the first time in a while he felt like buying bitcoin? What do you think about the debate about whether the BTC bottom is in? Do you think the bottom is in? Let us know what you think about this subject in the comments section below. Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Price articles and market updates are intended for informational purposes only and should not be considered as trading advice. Neither Bitcoin.com nor the author is responsible for any losses or gains, as the ultimate decision to conduct a trade is made by the reader. Cryptocurrency prices referenced in this article were recorded on Friday, March 13, 2020, at 11 a.m. EST. Images via Shutterstock, Trading View, Bitcoin.com Markets, Twitter, Wiki Commons, Archive.org, Fair Use, Pixabay, and Wiki Commons. Want to create your own secure cold storage paper wallet? Check our tools section. You can also enjoy the easiest way to buy Bitcoin online with us. Download your free Bitcoin wallet and head to our Purchase Bitcoin page where you can buy BCH and BTC securely. The post Edward Snowden ‘Felt Like Buying Bitcoin’ While Traders Hunt for the Market Bottom appeared first on Bitcoin News. View the full article

‘What in the world is going on’ has now become a question of real pertinence, instead of just a cliché for common bewilderment. As COVID-19 panic grips the world, ripple effects are crashing markets and effectively canceling economies across the globe, scrawling the writing on the wall for something big. Even the beloved Walt Disney World has announced it will close its doors for the time being. It stands to examine then, whether there is substance to the idea that the ‘world grinding to a halt’ could be used to implement a new financial paradigm. One that is digital, surveillance-based, and most importantly, covers the economic sins of unsustainable times past. Also read: Gold and Bitcoin Markets Tested, While Central Banks Try to Quell Stock Market Rout Corona: The Favored Virus of ‘the Crown’? Recent news of Disney shutting down brings attention to another ‘magic kingdom’ — the whimsical endless credit monarchy of Keynesian recklessness. It too appears to be reaching a terminal impasse. There is speculation the COVID-19 pandemic could be the perfect opportunity for the world’s financial planners to cover their past sins of mega bubbles, unsustainable inflation and debt creation, wiping the slate clean — this time with a decided focus on digital surveillance, control, and unmitigated printing powers, using the disease outbreak as a convenient scapegoat. But is there any substance to such conspiracy talk? In the interest of avoiding tinfoil hat, baseless assertions when looking to the future here, it’s best to understand what has already been established on the world economic scene prior to the outbreak of COVID-19. A few major facts to bear in mind: The global economy was running out of options for dealing with recession, as major economies headed closer and closer to, or further beyond, the zero bound, engaged in massive stimulus, and continued to create artificial credit bubbles. Central Bank Digital Currencies (CBDCs) were actively being developed and researched, and China’s version — the digital Yuan — is already complete and in testing phases. Financial policymakers around the globe have been noting the utility these could have for forcing monetary policy on individuals, where physical cash enables them to evade such things as negative interest rates in banks. Fewer and fewer people were expressing confidence in state authorities and their respective central banks. Political unrest — much of which was concerned with economic policy — was manifested in unprecedented fashion via demonstrations worldwide. Decentralized cryptocurrencies like bitcoin were increasingly viewed favorably by a significant segment in the context of centralized corruption, worldwide bailouts, and distrust of leaders, even on mainstream media outlets. Popular crypto influencer and Youtuber Ivan on Tech speculates about coronavirus being a scapegoat for the irresponsible behaviors of regulators, who will remain in power, regardless. With the above in mind, it is interesting that the outbreak of this novel coronavirus has resulted in a worldwide panic drowning out these factors, prompting even the doubtful to once again encourage their peers to trust the state for leadership. This is not to assert that the virus isn’t a threat, or that regulators “planned” its release. It is simply to note that politicians and financial planners have historically leveraged such situations to implement new — and often highly intrusive and unethical — policy, and openly admit to doing so. At times, even desiring disaster. With this knowledge at the forefront, it becomes understandable some are connecting the dots. Leveraging Catastrophe: Nothing New Under the Sun At the outset of the last major financial downturn in 2008, then Chief of Staff for President Elect Barack Obama, Rahm Emanuel, stated at the Wall Street Journal CEO Council in Washington, D.C.: You never want a serious crisis to go to waste. And what I mean by that, it’s an opportunity to do things that you think you could not do before. Emanuel went on to note that in virtually every area of governance, major crisis provides opportunity. Opportunity for regulators to make bold moves in implementing otherwise controversial policy. “This is an opportunity, what used to be long-term problems, be they in the health area, energy area, education area, fiscal area, tax area, regulatory reform area — things that we had postponed too long that were long-term are now immediate and must be dealt with. This crisis provides the opportunity for us … to do things that you could not do before. Much like the panicked speculations of today, Emanuel’s prescription was not merely for one area of reform, but a system-wide overhaul. And much like today, the choice as to what policies are implemented does not involve the common individual. The “opportunity for us” to do things is just that. The “us” does not include you. Central bankers and financial planners concur, and have been wanting to take various economic measures for decades. Now could be their newest and biggest chance to date. A paper published by the European Central Bank in January notes the potential benefits, perceived by some, of government-approved CBDCs: By allowing to overcome the zero-lower bound (‘ZLB’) and therefore freeing negative interest rate policies (‘NIRP’) of its current constraints, a world with only digital central bank money would allow for – according to this view – strong monetary stimulus in a sharp recession and/or financial crisis. “This could not only avoid recession, unemployment, and/or deflation but also the need to take recourse to non-standard monetary policy measures which have more negative side effects than NIRP.” The publication also details there is an existing argument for CBDCs to make drops of “helicopter money” to the populace much easier. Further, “A number of authors have argued that CBDC widens the range of options for monetary policy, essentially since variable interest rates on CBDC would provide for a new, non-redundant monetary policy instrument that would allow improving the overall effectiveness of monetary policy.” In other words, no more hiding from negative interest rates by taking your money out of banks. When the cash is digital, and centrally controlled, interest rates can be applied directly to the supply. Some examples of recent quotes, prior to the COVID-19 crisis, from policy makers and economists may present the picture more clearly: At the current stage, the central bank’s major goal of issuing digital currency is to replace the physical cash. If everyone is holding cash, negative interest rates become useless. -former People’s Bank of China (PBOC) governor, Zhou Xiaochuan Let’s tax cash holdings, simple as that: we’re back to monetary policy as usual; people are disincentivised to be holding large lumps of physical cash; they are having to think harder about putting money to work. -New Zealand Reserve Bank Governor, Adrian Orr My personal conviction is that given the developments we are seeing, not so much in the bitcoin segment, but in the stablecoins projects … we had better be ahead of the curve if that happens. Because there is clearly a demand out there that we have to respond to. -European Central Bank (ECB) President, Christine Lagarde Since the 2008 crisis, we did not solve a single problem. We lowered the interest rates to a record low level and we flooded the world with cheap money. The central banks created one financial bubble after the other and now we have the biggest bubble in history. Trillions of dollars spent to solve the problem just created a new mess, a bigger bubble and when this one bursts, 2008 will look like a kindergarten. This one will be epic. … central banks will issue CBDCs and they will control us all, seize our freedom and wealth. They need negative interest rates and they can only achieve that when the fiat money moves into the digital world and they abolish paper money. -German-based author and finance strategy consultant, Marc Friedrich Even so-called conservative U.S. President Donald Trump has been clamoring for negative rates as the Federal Reserve injects new money and credit into the American economy recklessly. Trump said in January: “Meaning they [people in negative rate countries] get paid to borrow money, something that I could get used to very quickly. Love that. Gotta pay back your loan? No. How much am I getting?” This is the level of fiscal insanity that now qualifies as leadership. The Bubble Is Bursting Right Now, Worldwide — Why Isn’t Bitcoin Being Adopted? There is a lot to take in. A deluge, really. The world populace is overwhelmed with understandable fear and panic, and a tsunami of conflicting information from governments and media. The virus is the new plague, but tests are not being made available in many places. Trust the official stats and follow political leaders, but these stats are incomplete without tests, and some political leaders, like Donald Trump in the U.S., don’t even get tested. China’s censored medical media is of course not to be trusted, either. Flights, public schools and large gatherings are banned, cancelled or closed. No NBA, no SXSW, no Disney, overwhelmed hospitals. Global markets are in sharp and rapid decline, plunging past historic lows, with the ripple effect from so many major industries grinding to a halt sure to be felt much more painfully in months to come. Italy is suspending mortgage payments. Ireland offering pay for those out of work sick. To compound the disaster, martial law — as being experienced in China — appears to be on the horizon, even for Western countries. https://www.seattletimes.com/seattle-news/health/seattle-area-official-outlines-potential-next-steps-in-coronavirus-response-including-cancellation-of-events Crypto is also suffering, not looking currently to be the store of value its proponents had claimed. This is not to say bitcoin isn’t a more sound money than government fiat, though. There is a reason policymakers are not promoting bitcoin and crypto as sound means to salvage the world economy now. That would make them pay, and they’d have to feel the very real pain from the death of the monstrous bubble they’ve created, via endless printing and debt creation for centuries. As the International Monetary Fund blog maintained in February: Severe recessions have historically required 3–6 percentage points cut in policy rates. If another crisis happens, few countries would have that kind of room for monetary policy to respond. In short, the only way to beat this thing is to erase the debt record. Down the memory hole. But they still depend on you and I to support them, as these “leaders” are generally not producers, but parasitic in nature. Bitcoin makes this difficult for them. When you own the private keys to some bitcoin, you don’t have to pay anybody. This is why the stuff has been smeared as criminal over and over again, and CBDCs will likely be ushered in. For the rulers of the world, when the game isn’t going their way, they don’t try to improve — they just push reset. Do you think the pandemic signals a global financial reset? Why or why not? Let us know in the comments section below. Op-ed disclaimer: This is an Op-ed article. The opinions expressed in this article are the author’s own. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the Op-ed article. Readers should do their own due diligence before taking any actions related to the content. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any information in this Op-ed article. Images courtesy of Shutterstock, Adriana Iacob, fair use. Want to create your own secure cold storage paper wallet? Check our tools section. You can also enjoy the easiest way to buy Bitcoin online with us. Download your free Bitcoin wallet and head to our Purchase Bitcoin page where you can buy BCH and BTC securely. The post Disney World Economics: How Coronavirus Could Be Used to Justify a Global Financial Reset appeared first on Bitcoin News. View the full article

Some members of the Libra Association are now backing a rival project called Celo, which has its own blockchain and cryptocurrency. Over 50 major companies have pledged their support, each pursuing a diverse set of use cases. The project claims that the combined reach of all members exceeds 400 million people. Also read: Bitcoin Legal in India – Exchanges Resume INR Banking Service After Supreme Court Verdict Allows Cryptocurrency 50 Founding Members The Celo Foundation announced on Wednesday 50 founding members of the Celo Alliance for Prosperity. “Celo is an open platform that makes financial tools accessible to anyone with a mobile phone,” its website describes. The project offers a way for developers to build mobile apps based on Celo’s Ethereum-based blockchain with a stablecoin. “The effort is designed to deliver humanitarian aid, facilitate payments and enable microlending through a cryptocurrency called the Celo Dollar, which is scheduled to launch in April,” Bloomberg reported. Chuck Kimble, who heads the Alliance for Prosperity, said in a phone interview with the publication: The value of the Celo Dollar will be pegged to the U.S. dollar and backed by a reserve of other cryptocurrencies … It will be available in the U.S., but the alliance’s focus is on Latin America, Africa, and Southeast Asia. Citing that “Today less than .5% of global citizens benefit from the speed, transparency, utility, and low cost of using blockchain technology,” the foundation detailed, “The Alliance members have a plan to change that and are committed to leveraging the power of Celo’s innovative blockchain technology to create solutions that work across devices, carriers, and countries.” More than 50 members of the Celo Alliance for Prosperity. Some members also support Facebook’s Libra project, such as cryptocurrency exchange Coinbase and venture capital company Andreessen Horowitz. “Alliance members are pursuing a diverse set of use cases, including powering mobile and online work, enabling faster and affordable remittances, reducing the operational complexities of delivering humanitarian aid, facilitating payments, and enabling microlending,” the foundation’s announcement explains. “Their combined reach is over 400 million people.” Competing With Facebook’s Libra The project is dubbed by some as a rival to Facebook’s Libra project, which has been scrutinized by regulators worldwide since it was first announced. The Libra project is currently considering redesigning as several key members have left the project, including Paypal, Visa, Mastercard, Stripe, Mercado Pago, Ebay, and Vodafone. Kimble claims that “There are some similarities [with Libra] in terms of mission, which is why there are some people who have joined both alliances.” Some Celo Alliance for Prosperity members that are also Libra supporters include Anchorage, Bison Trails Co., Coinbase Ventures, Andreessen Horowitz and Mercy Corps. However, the Celo project does not have the massive userbase that Facebook has. Some compare the Celo project to Facebook’s Libra. According to Anchorage, a member of both projects, “Celo and Libra each have unique focuses and approaches, but they share a goal that Anchorage strongly believes in: banking the unbanked.” Payments in the Celo Dollar stablecoin can be sent to people’s phone numbers rather than complicated addresses, Tech Crunch noted, asserting that “The goal is to make delivering utility via blockchain easier by building a flexible network of applications that doesn’t scare regulators like Libra has.” Kimble claims, “We have met with governments around the globe as well as central banks, we are continually engaging with governments in the many countries which we hope to serve.” Diogo Monica, president of Anchorage, which is a part of both the Libra project and the Celo Alliance for Prosperity, said in a statement: Celo and Libra each have unique focuses and approaches, but they share a goal that Anchorage strongly believes in: banking the unbanked. What do you think of the Celo project? Do you think regulators worldwide will have a problem with it like they do Facebook’s cryptocurrency? Let us know in the comments section below. Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Images courtesy of Shutterstock and the Celo Foundation. Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here. The post 50 Companies Back New Cryptocurrency Project Competing With Facebook’s Libra appeared first on Bitcoin News. View the full article

These are strange times for crypto. While it’s blood in the markets, it’s business as usual on the darknet, where marketplaces are seeing a steady inflow of cryptocurrency. They’re also seeing an inflow of new users as the repercussions of the coronavirus pandemic make online commerce the safest way to shop. Also read: Darknet Markets Flourish as White House and Empire Toast Milestones Retail Downturn Leaves the High Street Reeling The economic effects of the coronavirus outbreak are creating major winners and losers. The fate of airlines, cruise ships, and travel agents requires no explanation, while the retail sector is succumbing to the pressure the virus is exerting on everything. All non-essential shops in Italy have been closed, while a broader retail downturn has threatened the closure of one of the U.K.’s largest shopping center owners. On the web, however, it’s business as usual, save for a few supply chain hiccups. With large parts of the world in lockdown, consumers are staying at home more and ordering more goods and services to their door – darknet wares included. On darknet markets (DNMs), the coronavirus is being treated as both a threat and an opportunity to profit. Vendors Discuss Coronavirus Impact on Shipping On darknet forum Dread, a thread titled “How does the coronavirus outbreak have an impact on market transactions?” prompted one vendor to respond: “Online purchases are going to increase a lot because people will want to be in their home in quarantine. Therefore postal services will collapse and delivery times will increase a lot like Christmas.” Several DNM users have reported deliveries taking longer than usual to arrive; shoppers on the clearnet have also experienced delays as retailers battle to meet higher demand from a housebound populace. To stimulate trade, one DNM vendor has been running a “buy one get one free” offer on digital goods. “Makes sense,” replied the admin of Monopoly market. “Run a coronavirus special that’ll get you some clout.” People are buying surgical masks on the darknet. Take the pricing with skepticism, a common seller tactic is to sharply raise prices when an item is out of stock to halt sales. source: Empire Market #coronavirus pic.twitter.com/JV1a5I1Fnp — dark.fail (@DarkDotFail) March 12, 2020 Dubious Claims About Corona-Fighting Wares While the majority of darknet vendors are dutifully shipping orders, a handful have sought to capitalize on the coronavirus panic in less scrupulous ways. On White House Market, one seller is listing TCH capsules with the strapline “Protect yourself from the coronavirus” and the insistence that daily dosage will “help your immune system.” On the clearnet, Google has been working to clear coronavirus misinformation, but on the darknet, users must keep their wits about them and exercise their own judgement. No change there. On Dread, user “covid19mask” is hawking coronavirus masks for $20 apiece, payable in bitcoin on Empire Market, but with “free sanitizer.” There appear to be few takers. Other vendors are more concerned with leveraging the supply problems caused by the coronavirus. “Currently all the superlabs are shut down not able to get the precursor liquid from China necessary to cook the meth,” explains one crystal meth seller. “I don’t see this changing until the coronavirus subsides and China is able to ship freight normally again. The price has already quintupled on me to purchase here locally in Mexico.” Are Darknet Markets Safer Than the Streets? Proponents of darknet markets are prone to emphasizing the harm reduction benefits of using DNMs over street dealers. As all forms of physical contact fall out of favor, and people self-isolate, the greatest harm reduction the darknet may offer is in helping to contain the coronavirus spread. Nevertheless, DNMs remain susceptible to greater macro trends. Darknet users: This is not the time to be shipping contraband across borders. Do not assume that sellers disinfect or follow safe handling procedures. Be careful, don't help this thing spread just because you need a fix or an easy profit. #coronavirus — dark.fail (@DarkDotFail) March 12, 2020 With all non-essential travel between the U.S. and Europe effectively halted, and entire regions on lockdown, international darknet deliveries have taken a hit. So too have the profits of vendors with crypto locked into escrow from when BTC was trading 25% higher. For the most part, the economic effects of the coronavirus have been positive on darknet markets, but the global logistics industry is highly vulnerable to further quarantine measures. A rising infection rate coupled with exceptional strain on the postal service could see ecommerce crippled – the darknet included. Do you think darknet markets will see more business over the next few weeks? Let us know in the comments section below. Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Images courtesy of Shutterstock. Did you know you can verify any unconfirmed Bitcoin transaction with our Bitcoin Block Explorer tool? Simply complete a Bitcoin address search to view it on the blockchain. Plus, visit our Bitcoin Charts to see what’s happening in the industry. The post Darknet Markets Keep Shipping as Shoppers Shun the Streets appeared first on Bitcoin News. View the full article

Central banks worldwide have been bracing for the worst, as the global economy has shuddered over the last seven days. On March 11, the Bank of England slashed rates by 50 bps bringing the base rate down to 0.25%. Meanwhile, Wall Street bankers and U.S. President Donald Trump want the Federal Reserve to slash rates even more and a few speculators expect a 100 bps rate drop by next week. As central banks are being accused of depleting their monetary policy tools prematurely, on March 12, European Central Bank President Christine Lagarde decided not to cut rates. Gold and crypto prices have also been under intense pressure for four consecutive days. Also read: The 35 Most Influential Bitcoiners Dominating Crypto Twitter by Follower Count Stocks Plunge, Bank of England Slashes Rates, ECB’s Lagarde Holds Back It’s been a bad week for global markets, as the coronavirus outbreak has created a lot of fear and panic selling. On Thursday, March 12 the top three stock indexes in the U.S. have lost considerable value and British, European and Asian markets have felt the brunt of the economic storm. The Dow Jones Industrial Average is down over 2,300 points at press time suffering the worst decline since 1987. The day prior, on Wednesday, the Bank of England (BoE) decided to follow the Federal Reserve’s move and cut the base interest rate by 50 bps. The bank now has a rate of 0.25% and immediately after the rate cut, the British pound took a hit against the U.S. dollar. Bank of England (BoE) governor Mark Carney slashed the bank’s base interest rate by 50 bps on March 11, citing concerns over the coronavirus threat. BoE now has a rate of 0.25%. The market reaction was similar to the effect the Fed rate cut had on U.S. markets the week prior. The next day on Thursday, the European Central Bank decided to address the public and detailed that the bank would offer cheap loans to banks as a form of stimulus. However, unlike the Fed and BoE, European Central Bank (ECB) President Christine Lagarde decided not to cut rates. It’s possible the ECB held back because of the adverse effects the rate cuts had in the U.S. and the U.K. Various economists also believe central banks are simply running out of monetary policy. Wall Street economist Henry Kaufman, who earned the name “Dr. Doom,” told the press he believes central banks are running out of ammunition to confront a deep recession. The 92-year old former Salomon Brothers economist is well known for predicting economic events throughout the ‘70s and ‘80s. Kaufman disclosed that the recent rate cuts executed by the Fed and the BoE “won’t address a crisis.” How long until The Fed is literally printing toilet paper to help alleviate the crisis? — Erik Voorhees (@ErikVoorhees) March 12, 2020 Meanwhile, at the same time, U.S. President Trump called the Fed’s recent move “pathetic” and further tweeted that the central bank could do better. “Our pathetic, slow moving Federal Reserve, headed by Jay Powell, who raised rates too fast and lowered too late, should get our Fed Rate down to the levels of our competitor nations,” Trump tweeted. “They now have as much as a two-point advantage, with even bigger currency help. Also, stimulate.” While U.S. President Donald Trump pressures the Federal Reserve, Christine Lagarde has chosen not to have the ECB cut the interest rate right now. For now, the ECB will offer loan stimulus packages for private banks in need. Goldman Sachs Predicts the Fed Will Cut Rates by 100 bps and the End of S&P’s Bull Market, PBoC Rate Cuts, Italian Mortgage Industry Suspended Further, mega bank Goldman Sachs sees the Fed cutting rates back by 100 basis points soon. Goldman also recently noted that they expect the “S&P bull market to end soon” after 11 years. In Italy, where the coronavirus outbreak has locked down the entire country, deputy economy minister Laura Castelli told BBC reporters that mortgage payments will be suspended across Italy. China’s central bank plans to cut rates soon as well, Ting Lu chief China economist at Nomura told investors on Thursday. “Without exception, these calls by the Premier will be implemented by the (People’s Bank of China) almost immediately, so we expect the PBoC to announce a targeted RRR cut in the next few days, possibly before or over the coming weekend,” the Nomura economist noted. An investor’s note from Goldman Sachs. Japanese and Russian Stocks Feel the Wrath The Japanese economy has been feeling the pressure of inflation and the economic effects of the virus spread as well. Reports note that Japanese bureaucrats are pushing the Bank of Japan (BoJ) to cut rates more and increase stimulus but policy options have become limited. Just like a number of central banks during the second half of 2019, the BoJ board members introduced a significant number of monetary easing policies. Tokyo’s financial markets saw considerable losses all week, as Japan deals with escalating coronavirus fears. On Monday, the Nikkei index ended at a 14-month low with numbers not seen since 2016. Following Trump’s travel ban between the U.S. and Europe, the Russian stock market and the ruble also dropped exponentially. The ruble was shaved 4% against the U.S. dollar and the Moex Index fell by 6%. Russia’s RTS Index slipped by 1,000 points, to the lowest levels in two years. Boeing is probably going to be one of the first "too big to fail" corporations that will require us to embrace corporate socialism with a bailout. It will be presented as an "emergency" and it will be 100% bipartisan. The bailouts are coming again. They won't come for you. — Andreas ☮ 🌈 ⚛ ⚖ 🌐 📡 📖 📹 🔑 🛩 (@aantonop) March 12, 2020 Is Bitcoin a Risk Asset or Store of Value During Economic Uncertainty? Throughout all the madness, the overall cryptocurrency market cap of over 5,000+ coins lost $50 billion in three days. BTC prices plunged over 20% in a 24 hour period and went below the $6K mark on March 12. The fall from the $9,100 range to under $6K in just a few days time has called into question the reliability of those who believe BTC is a store of value (SoV). The SoV debate has been trending on social media and crypto-related forums over the last few days and SoV evangelists have been quieter. “So much for bitcoin being a safe store of value,” tweeted David Pinski. “Looks like fiat denominated hard currencies are still king. Even with the crypto set. Scratch that hypothesis,” Pinski added. “Cash looks like the safe haven today,” the Twitter account Moneypages wrote. “Gold down ~5%, Bitcoin down ~22%. This will be a test for cryptos and their claim to be a store of value.” I'm buying. This is why bitcoin was invented — Barry Silbert (@barrysilbert) March 12, 2020 Surely enough, a good number of people believe that the current economic storm will be a true test for bitcoin. “Want to know what the stock market would look like without down limits and circuit breakers and closing bells? Go look at bitcoin right now,” tweeted the Wall Street Journal author Paul Vigna on Thursday. One person asked Vigna if he thought it was of “any interest that crypto markets are aligning with traditional markets is interesting, even if exaggerated?” Vigna responded: If bitcoin was really aligned [with] traditional markets, it would have sold off like this much sooner. As the riskiest asset, bitcoin would’ve been the first to go. Just my opinion. Other people sincerely believe BTC is the best store of value and despite the price setback, it is still doing remarkably well. “If you had bought bitcoin exactly 1 year ago at a price of $3.779 you would be up 96% in dollars,” Crypto Mad Max tweeted. “Bitcoin is a store of value, with huge ups and downs from time to time look at the bigger picture,” Max added. Former Mega Upload CEO, Kim Dotcom explained that he believes cryptocurrencies need more users as opposed to a slew of speculators. “Institutional investors are dropping out of Bitcoin. That’s good. Crypto needs more users, not more speculators. Mass utilization is accelerated by the economic crash. But Crypto needs more easy-to-use & secure apps allowing users to pay for real things in real-time at low fees,” Dotcom said on Thursday. It’s proven beyond doubt now that Bitcoin is not a gold-like hedge, but a high risk asset class that’s first in line to be sold even before normal stocks. The “store of value” side is now completely debunked in addition to the “everyone needs to run a non-mining full node” side. — Olivier Janssens🎗 (@olivierjanss) March 12, 2020 Gold Doesn’t Hold – Prices Slide Below $1,600 Range Meanwhile, gold saw a quick rise during the early morning hours on March 12, but prices dropped $50 at 2:30 EST. One ounce of fine gold dropped below the $1,600 per ounce region to $1,589 but jumped back above the psychological $1,600 zone shortly after. At 4 p.m. EST, gold dipped again and touched a low of $1,570 per ounce and has been hovering around that region for roughly an hour at time of writing. Even gold prices were tested today as the price per ounce slid $80 during the late afternoon (EST) on Thursday. During the last few weeks, the whole world has been on edge from the coronavirus outbreak and the economic calamity that has followed. Throughout all of the mess, it is clear that crypto markets are facing the unknown as the economy was doing well since the 2008 crash. Bitcoin itself was born from the flames of the economic meltdown in 2008, but it has never experienced a full-blown recession. Right now the world’s central banks in the EU, U.K., Asia, U.S., the Middle East, and Latin America are trying to ease the situation with monetary policy and stimulus. The Federal Reserve told the public it will inject $1.5 trillion into the hands of private banks on Thursday. Using the stimulus, the Fed plans to purchase Treasury Inflation-Protected Securities, notes, and bills “across a range of maturities.” It’s pretty clear what the central banks will do to try and circumvent an economic disaster, but people now wonder how cryptocurrencies will react to the possibility of financial collapse. What do you think about the central banks and how they have been reacting with stimulus and rate cuts to battle the coronavirus’s effect on the global economy? What do you think of the ECB holding back on cutting rates for now? Do you think that cryptocurrencies like bitcoin will act as a store of value through these uncertain times? Let us know what you think about this subject in the comments section below. Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Image credits: Shutterstock, Twitter, Trading View, Google Stocks, Twitter, Goldman Sachs, Market Watch, Fair Use, and Pixabay. Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here. The post Gold and Bitcoin Markets Tested, While Central Banks Try to Quell Stock Market Rout appeared first on Bitcoin News. View the full article

Binance chief Changpeng Zhao referred to it as “Bloodbath day,” and many in the cryptosphere will echo those sentiments, as fallout from the COVID-19 pandemic reverberates through global markets. As crypto exchanges were thronged by frantic traders looking to capitalize on – or seek refuge from – the unprecedented market dump, several platforms buckled under the pressure. Also read: Market Update: Global Economy Jolts Bitcoin, Overall Crypto Cap Loses $50B Exchanges Struggle as Traders Get Busy A panic-stricken sell-off of bitcoin and other risk-on digital assets has led to a number of crypto exchanges experiencing outages. On Thursday, March 12, Binance’s CZ noted that the platform’s load was 5x greater than all previous peaks. The exchange was handling 146,500 messages per second, with a 30GB/s market data push from a lone source. Aside from the occasional glitch, Zhao says systems appear to be holding up for now. Kraken was also briefly down earlier today. Ethereum network fees at press time. Over on Bitmex, the Seychelles-based exchange experienced the most liquidations in 16 months: $702 million worth, $698 million of which were longs. The Ethereum network, meanwhile, has been toiling under heavy network congestion, with gas prices spiking to as high as $3.70 today, and transactions waiting hours to be processed. Binance has temporarily increased withdrawal fees for ETH and ERC20 tokens. Network activity has been driven up by traders seeking to sell their holdings and under-collateralized defi positions being forcibly liquidated. ETH also nosedived by 35%, its most significant one-day decline since 2018. The price of BTC, meanwhile, fell below $6,000 for the first time since May while altcoins also plummeted. Against this wild backdrop, we have a halving on the horizon. Bitcoin’s Safe Haven Status in Question The theory that bitcoin might be a safe haven as oil, stocks, equities and bond yields plunge has been disproved: but even gold, widely viewed as the ultimate safe haven asset, dropped by more than 1% on Changpeng Zhao’s aptly-titled Bloodbath Day. Most crypto traders are seeking refuge by switching into stablecoins while knife-catchers have been buying up cheap coins in anticipation of the next rally. Volatility remains a trader’s best friend. As Bitmex’s Arthur Hayes put it, “I know all you HODLers say you love “cheap coins”, but will you really back up the truck if the S&P is flirting with 2,000? We shall see.” He added: The time to back up the truck is when the futures basis goes flat or negative. That will signal an evaporation of optimism. Then you must surf the tidal wave of free money, and begin buying crypto with both hands. First fill your Bitcoin handbags, then acquire all the other dog shit … even CRipple might pop. Long live volatility, and stay healthy. To say the economy has experienced turbulence in the wake of coronavirus would be a gross understatement. Assets are in virtual freefall across traditional and crypto markets, with pledges by the Fed and the Bank of England to cut interest rates seeming to have little effect. Cruise liner and airline stocks have been some of the worst hit, with Boeing’s stock dropping 50% from last year. Numerous flights have been cancelled, and President Trump has announced a travel ban on 26 European countries in an attempt to contain the virus. Italy, one of the worst-hit countries, has come to an eerie standstill, all shops and restaurants except pharmacies and food outlets closed to the public. Many believe their own nations will soon follow suit, as infection spreads at a frightening pace. Although the short-term outlook for bitcoin remains bearish, and sentiments like “keep calm and HODL” have been doing the rounds on Crypto Twitter, the sense of frenzy is impossible to ignore. As Messari’s Ryan Selkis urged, “It’s ugly today, but this too shall pass. Stay safe. Keep building.” Where do you see the crypto markets heading from here? Let us know in the comments section below. Images courtesy of Shutterstock. Did you know you can verify any unconfirmed Bitcoin transaction with our Bitcoin Block Explorer tool? Simply complete a Bitcoin address search to view it on the blockchain. Plus, visit our Bitcoin Charts to see what’s happening in the industry. The post Crypto Exchanges Overwhelmed on Bitcoin’s Most Volatile Day of the Year appeared first on Bitcoin News. View the full article

Cryptocurrency markets are feeling a lot of pressure on Thursday, March 12, as the entire cryptoconomy has lost over $50 billion during the last three days. Digital asset prices dropped to the lowest levels since May 2019. Moreover, on five derivatives exchanges, more than $2.2 billion leveraged positions were liquidated in the last 24 hours. Also read: The 35 Most Influential Bitcoiners Dominating Crypto Twitter by Follower Count Cryptoconomy Sees $50 Billion Shaved – Derivatives Traders Watch $2.2 Billion Liquidated Global markets are feeling a lot of weight from investors panic-selling due to lack of liquidity. Cryptocurrency markets have felt the pressure too as most digital assets have been acting more like risk assets than a potential safe haven. Crypto prices have dropped to the lowest levels traders have seen since the spring months of last year. Since news.Bitcoin.com’s last market update three days ago, the entire cryptoconomy of 5,000+ coins has lost $52 billion so far. On Wednesday and Thursday morning, more than $2.2 billion was liquidated from traders on Bitmex, Okex, Huobi, Binance, and FTX. Analysts assume that Bitmex saw between $650 to $750 million in liquidations. In addition to the derivatives market liquidations, a number of exchanges had outages on Thursday. At the time of writing, the largest cryptocurrency by market capitalization, BTC, is down 22% in the last 24 hours and 32% for the last seven days. Reported BTC trade volume shows $42 billion worth of BTC swaps on Thursday but Messari.io’s “real volume” is $1.8 billion. Every coin in the top 10 is down at least 20-30% except for tether (USDT) which is carrying a lot of pressure at the moment too. Tether commands more than 68% of BTC trades today and the stablecoin is capturing more than two thirds of the entire cryptoconomy’s trading pairs. Top 10 coin market cap on Thursday, March 12, 2020. ETH is swapping for $140 per coin as the second-largest cryptocurrency by market cap is down 28% today. ETH lost 39% of its value during the course of the week and there’s $18.3 billion in reported trades ($872M real volume). XRP is trading for $0.16 per token and the coin has suffered a loss of 19% today and 30% for the week. Tether issued another $60 million USDT on March 11, 2020, and it’s issued $180 million ($120M on March 5th) throughout this month alone. Bitcoin Cash (BCH/USD) Market Action Bitcoin cash (BCH) has dropped to the fifth coin cap position as it’s currently trading for $182 per coin. BCH markets have lost 30% in a single day and 45% for the week. This has managed to wipe out the 90-day gains BCH held and BCH is now down 9% for the last 90 days. Yearly percentages show that BCH is still up 47% for the last 12 months but down 8% against BTC. 65% of BCH swaps today are paired with USDT and the stablecoin is followed by BTC, capturing 16% of BCH trades on Thursday. BCH like most of the top cryptocurrencies is now trading well below the daily 200 moving average and the recent falling wedge pattern never came to fruition. A Possible Global Recession and Coronavirus Fear Touches Crypto Prices Global stock markets, equity market indices, and futures worldwide have plummeted into bearish regions. On Wednesday, Nasdaq Composite lost 392 points, NYSE Composite lost 615 points, and the Dow Jones Industrial Average dropped by 1,465 points by the end of the trading day. The S&P 500 shaved 4.5% and after 9 p.m. EST, Asian stock and equity market indices dipped significantly. Asian markets continued to slide after U.S. President Trump placed a 30-day travel ban between the U.S. and Europe over coronavirus fears. On Wednesday evening, BTC was hovering around $7,995 per coin but after 8 p.m. EST, the price saw a continuous slide. Marcus Swanepoel, CEO of the crypto company Luno, detailed in a note on Thursday that the market downturn is no surprise. “There is no surprise that as coronavirus has been classified as a global pandemic, and for the first time the US has acknowledged the seriousness of the situation, that all markets are coming under pressure,” Swanepoel explained. The coronavirus fears coupled with the crypto market downturn have led people to dismiss bitcoin’s safe haven narrative. “Bitcoin is down 8% in the last day, much more than global equities,” explained bitcoin critic and economist Nouriel Roubini. The Nobel prize-winner further stated: Another proof that bitcoin is not a good hedge versus risky assets in risk-off episodes. It actually falls more than risky assets during risk-off. Gold Bug Peter Schiff Slams Bitcoin Following our last market update, gold prices slumped for three consecutive days until after Trump’s travel ban. However, on March 12 gold started seeing some gains again as economic fears have deepened globally. Meanwhile, despite a number of BTC maxis claiming BTC is a store of value (SoV), it’s really performed like a risk asset during the last two weeks. On Thursday morning, spot gold and gold futures started to pick up. Economist and gold bug Peter Schiff used this opportunity to mock BTC supporters and those who believe in BTC’s SoV narrative. Gold bug and famed economist Peter Schiff. “As bitcoin crashes below $6K, down almost 20% this year, hodlers can take comfort in bitcoin not being the worst performing asset of the decade,” Schiff tweeted during the crypto sell-off. “For now, that distinction belongs to oil, which is down by 50%. But at the rate bitcoin is falling this comfort may not last long.” The economist even bashed the news outlet CNBC for allegedly “pumping the price” of bitcoin. Schiff’s tweet storm continued: CNBC pumped the price of bitcoin with non-stop daily coverage on the way up, allowing the whales to dump their holdings onto CNBC’s audience. Now as bitcoin crashes, CNBC has maintained radio silence on bitcoin all week. What gives? Did their lawyers finally impose a gag order? New Bitcoin Prediction Model Predicts Price Bottoms While lots of bitcoiners are talking about the stock-to-flow (S2F) theories and bitcoin’s parabolic curve predictions, author Data Dater has published a new model. Data Dater’s blog post called “Bitcoin’s Cost of Production — A Model for Bitcoin Valuation” examines existing models like S2F for their limitations. Data Dater’s cost of production (CoP model). While Data Dater is impressed by S2F he noted that “it’s not the best tool for a swing trader looking at time horizons of a quarter or less.” The researcher’s study highlights that the cost of production (CoP model) is more “reliable for obtaining an intrinsic floor price of Bitcoin.” Data Dater concluded: This is the price that a bitcoin tends to move towards and serves as an over/ undervaluation metric. The model expects the price of a bitcoin to rise, given the rising trend of the effective cost of ASIC miners and network hashrate. It can be used to analyze the effect of other markets on that of Bitcoin. Wading Through a Trough of Disillusionment Overall, most crypto enthusiasts and traders are very uncertain of the short term future ahead. Coinbase CEO Brian Armstrong wrote that he was astonished to see bitcoin prices drop alongside global stock and commodity markets. “Surprised we’re seeing the bitcoin price fall in this environment, would have expected the opposite,” Armstrong tweeted. “I’m not surprised, bitcoin is in an endogenous process of monetization,” Pierre Rochard responded. “Trying to connect MSM ‘news’ with the bitcoin price is a fool’s errand.” Meanwhile, other hardcore bitcoiners wholeheartedly believe the downturn is a scare tactic crafted by bitcoin whales. “Bitcoin is not naturally going down,” the popular crypto Twitter commentator XC tweeted. “It is being pushed down via whales placing spoofy sell orders on exchanges to make noobs and risk managers sell to ‘buy back lower.’ They are stealing your bags and will make you buy back at a higher price.” Where do you see the cryptocurrency markets heading from here? Let us know what you think about this subject in the comments section below. Disclaimer: Price articles and market updates are intended for informational purposes only and should not be considered as trading advice. Neither Bitcoin.com nor the author is responsible for any losses or gains, as the ultimate decision to conduct a trade is made by the reader. Always remember that only those in possession of the private keys are in control of the “money.” Cryptocurrency prices referenced in this article were recorded on Monday, March 12, 2020, at 11:15 am EST. Images via Shutterstock, Trading View, Bitcoin.com Markets, Twitter, goldprice.org, Fair Use, Pixabay, and Wiki Commons. Want to create your own secure cold storage paper wallet? Check our tools section. You can also enjoy the easiest way to buy Bitcoin online with us. Download your free Bitcoin wallet and head to our Purchase Bitcoin page where you can buy BCH and BTC securely. The post Market Update: Global Economy Jolts Bitcoin, Overall Crypto Cap Loses $50B appeared first on Bitcoin News. View the full article

Remote bitcoin events have been boosted by the postponement or cancellation of real world crypto conferences due to the coronavirus outbreak. With many employees now working from home where possible, firms have begun switching to virtual meetings, prompting renewed interest in VR equipment and hinting at the decentralized future of crypto meetings and events. Also read: Judge Gives Craig Wright New Deadline – Citing Forgery, Perjured Testimony in Court No Office, No Problem: Business as Usual in Crypto While companies grapple with the consequences of the ongoing pandemic, the crypto industry is in pretty good shape. For a start, several major platforms – including exchanges such as Kraken – have employed dispersed workforces since day one. Others, like Messari and Coinbase, have gone remote-first indefinitely and canceled all business travel. Generally speaking, crypto is extremely mobile with a disproportionately high percentage of freelance and remote workers, from developers, designers and programmers to content managers, analysts and consultants. Indeed, many crypto projects don’t have a physical headquarters and for all intents and purposes exist in the digital realm. Physical headquarters create a single point of failure. @CasaHODL is a remote-only company. — Jameson Lopp (@lopp) March 10, 2020 So while centralized tech giants like Apple, Google, and Amazon may see productivity fall as offices fall dark, that shouldn’t be the case for the Messaris and Coinbases of the world. At least not to the same extent. A Clutch of Canceled Crypto Events Of course, meatspace events, conferences, hackathons and meetings are a staple of the cryptosphere, drawing thousands of delegates from all over the world. But with physical gatherings being strongly discouraged by governments, a pivot towards virtual conferences is inevitable. The world’s largest blockchain expo, scheduled for March 17 in London, was delayed indefinitely due to the pandemic and so too was Bitcoin 2020 in San Francisco. The Paris Blockchain Week Summit was another major crypto gathering pushed back until the end of the year. Expect more dominos to fall in the weeks and months ahead as event organizers pull the plug. But do such industry events really have to be canceled, or can they happen online? Remote Meetings Draw Near Remote events, albeit on a smaller scale than grand conferences in lush locales, have been quick to fill the void. Bitcoin meet-ups on the horizon include March 14’s Lightning Loop, a virtual conference featuring Lightning Lab’s Alex Bosworth, and March 17’s Socratic Seminar featuring Michael Folkson, organizer of the London Bitcoin Devs meet-up group. Those keen to dial in can find more details on the Bitcoin VR Degenerates Telegram. Tech conference Collision, meanwhile, has announced that its June event will go ahead – only it won’t happen in Toronto but online, with the conference rechristened Collision from Home. In a blog post, the firm said previous attendees had already availed themselves of web and mobile to virtually engage with fellow delegates, watch presentations, and participate in workshops from the comfort of their homes. Companies such as Hopin, an all-in-one live events platform for distributed online communities, seem like the most likely profiteers of a scenario where networking events occur online rather than in-person. Actually, we are spoiled for choice when it comes to telepresence video solutions. Our team did all of our 1:1s in VR today, had a team-wide happy hour last night, and some of us have migrated to full VR work settings. We are working remote for an unknown amount of time and I am SUPER bullish on VR https://t.co/svba2q2D9J — Eric Turner (@ericturnr) March 10, 2020 One annual gathering that won’t have to postpone or cancel is Remote Crypto Con, scheduled for June 24-26. It’s already tabbed the likes of Coinshares’ Meltem Demirors and The Block’s Mike Dudas as speakers. Could this become the norm? In the short term, yes. Messari chief Ryan Selkis has urged “anyone in crypto to spend $200 on a VR headset before there are shortages. The tech isn’t perfect, but it’s very good. Get familiar with the platforms, and keep community strong during what will likely be a prolonged shutdown of live events.” While a move towards more mobile workforces might occur after the pandemic has passed, it could – Selkis suggests – manifest in remote employees using VR headsets to create the impression of working side-by-side with colleagues in the same physical space. Immersive AR/VR hardware and software can create a more engaging experience than can be provided from simply dialing into a conference. The coronavirus might cause the streets to empty, but crypto communities needn’t disappear. Do you think virtual conferences can replace real world events, or is the technology still too new? Let us know in the comments section below. Images courtesy of Shutterstock. Did you know you can verify any unconfirmed Bitcoin transaction with our Bitcoin Block Explorer tool? Simply complete a Bitcoin address search to view it on the blockchain. Plus, visit our Bitcoin Charts to see what’s happening in the industry. The post Crypto Embraces VR as Virtual Conferences Replace Physical Events appeared first on Bitcoin News. View the full article

Australian tax agents have set out to close a gap they say costs the state several billion dollars. Taxpayers who file various work-related claims and investment property deductions or declare income from sharing economy platforms such as Uber and Airbnb may be asked for explanations and receipts. Investors and traders earning income from cryptocurrencies are also among the targeted. Also read: Australia Crypto Merchant Trade Sets $74K Monthly Record With BCH Capturing 97% Crypto Investors Advised to Keep Detailed Records of All Transactions The revenue service has started contacting hundreds of thousands of Australians via mail and email to remind them of the tax obligations that come with cryptocurrency trading. A spokesman for the Australian Taxation Office (ATO) told News.com.au that people who sold cryptocurrency during the 2017/18 financial year may be asked to review their tax returns. Those who fail to correct any established discrepancies can be audited and risk penalties. The official stated: Over the next two months we expect to contact as many as 350,000 individuals who have traded in cryptocurrency in the last few years. Taxpayers who only held crypto but didn’t trade will be updated about the information they are required to gather. Investors should keep detailed records including receipts of purchase or transfer of cryptocurrency, exchange and digital wallet records, the date and the value of each transaction in Australian dollars at the time it took place. They should also be able to explain the purpose of each transaction and identify other involved parties. Financial gains from trading and exchanging crypto as well as from converting it into local or foreign fiat is subject to capital gains tax in Australia, where cryptocurrency is considered a property-like asset for tax purposes. The country has advanced in its efforts to regulate the crypto space further than other nations. It has over 300 registered digital asset exchanges, as news.Bitcoin.com reported last month. A recent court ruling added another layer of legitimacy describing cryptocurrencies as “a recognized form of investment.” ATO Gets Its Information From Cryptocurrency Exchanges The Australian Taxation Office has a dedicated page on its website that details the tax treatment of cryptocurrencies in the country. Last year, the administration published its Cryptocurrency Data Matching Protocol covering the financial years between 2014/15 and 2019/20. The program was introduced to obtain transaction data from exchanges on taxpayers who have bought and sold cryptocurrency, the ATO representative pointed out and further commented: Our campaign is designed to help raise awareness and give people the opportunity to fix any mistakes. The tax service has estimated that up to a million people in Australia have bought and sold cryptocurrency. Many of them might not have realized the tax implications and simply failed to report the profits on their tax returns. Others may have thought that the ATO does not have the means to track these transactions which are conducted online and often involve foreign currency. As the agency now gets its information directly from cryptocurrency exchanges, however, this assumption does not hold up. What’s your opinion about the tax campaign targeting crypto investors in Australia? Share your thoughts on the subject in the comments section below. Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Images courtesy of Shutterstock. Do you need to track down a Bitcoin transaction? With our Bitcoin Explorer tool, you can search by transaction ID, address, or block hash to find specific details, and for a look at the broader crypto space explore our Bitcoin Charts tool. The post Tax Office to Contact 350,000 Australians and Remind Them to Report All Crypto Profits appeared first on Bitcoin News. View the full article

Tokyo police arrested two individuals on Wednesday for acquiring stolen NEM from the 2018 Coincheck hack. On Jan. 26, 2018, the Japanese trading platform Coincheck noticed an “illicit transfer” of 523,000,000 NEM and it was the largest cryptocurrency exchange hack since Mt Gox. According to Tokyo investigators, the two men who obtained the purloined stash of NEM knew they collected coins derived from a crime. Also read: Judge Gives Craig Wright New Deadline – Citing Forgery, Perjured Testimony in Court Two Men Arrested in Japan for Purchasing Coincheck’s Stolen NEM Tokyo officials have arrested two men for buying stolen NEM (XEM) from the Coincheck hack two years ago. During the last week of January 2018, the Japan-based trading platform was hacked losing more than 523 million NEM (XEM). The exchange compromise ($530 million using 2018 exchange rates) was the largest crypto trading platform failure to date since the Mt Gox breach in 2013. Following the Coincheck hack, the firm notified 260,000 affected users it would repay them at a rate of 88.549 JPY per XEM. Additionally, not too long after the Coincheck attack, armchair crypto sleuths and blockchain analysis teams noticed the stolen XEM on the move. Two Japanese residents, Takayoshi Doi and Masaki Kitamoto have been arrested in Tokyo for purchasing NEM from the Coincheck hack. The publication U.today reports “Kitamoto, who has already admitted his guilt, pocketed nearly $19 million worth of ill-gotten tokens. By the first week of March 2018, it was noted that more than 40% of the stolen Coincheck funds were laundered. By the end of the same month, a Nikkei report detailed that nearly all of the XEM taken were laundered through deep web channels. At the time, the XEM vendors on the invisible web sold the currency at a mere fraction of what XEM was selling for on spot markets. Tokyo-based security firm L Plus confirmed that the sellers on the deep web sold all of the coins and the vendor’s XEM wallet was emptied. Shortly after the January 2018 Coincheck hack, the firm held a press conference in Japan similar to when Mt Gox went bankrupt in 2013. On Feb. 27, 132 Coincheck customers banded together leveraging a class-action lawsuit asking for a refund of 228 million yen ($2 million). The Two Men Are Charged With Accepting Criminal Proceeds and Participating in Organized Crime On Wednesday, March 11, Tokyo police revealed that two men have been arrested for purchasing stolen XEM. A doctor and a company executive, both in their mid-30s, were taken into custody after it was found they had traded a variety of cryptos including BTC to acquire the stolen coins. Allegedly, the two men obtained the XEM throughout the months of February and March 2018. Further, Tokyo police accuse the men of knowingly accepting cryptocurrency that was involved in a crime. The individuals are suspected of accepting crime proceeds and violating a law against participating in organized crime. Although another report claims the two Japanese residents, Takayoshi Doi and Masaki Kitamoto, may have admitted to being directly connected with the 523 million XEM heist. Kitamoto ostensibly admitted guilt, raking in $19 million from the incident. According to prosecutors, over 100 investigators were involved with the Coincheck hack. The case of the missing 523 million XEM has baffled Japan’s investigators and the NEM Foundation for years. At first, the NEM Foundation claimed that all the coins were traceable via the NEM mosaic tracker protocol. However, the organization decided to disable the mosaic tagging on March 21, 2018, and it seems the ability to track the lost XEM was futile. The two men arrested on Wednesday in Tokyo are the first two people taken into custody for their alleged involvement with the Coincheck compromise. The case follows the recent topical discussions revolving in the crypto community about the relevance of ‘tainted’ bitcoins and ‘virgin’ bitcoins. Following the Coincheck hack, the NEM Foundation promised it would be able to track the coins via the mosaic tracker protocol. But the stolen funds were sent to the deep web immediately and reports detailed that the hackers selling the coins built a largely automated system that sold XEM for 15-20% lower than spot prices. The stolen NEM vendors even created a ticket system for people who had issues with their transfers and they only accepted BTC and LTC. Because the hackers sold the coins in this fashion and exchanged them for BTC, and LTC, the NEM Foundation’s mosaic tracker protocol was deemed a failure. On March 21, 2018, the foundation disabled the tracker and stopped tagging the stolen XEM. The two men arrested on Wednesday in Tokyo are the first two individuals taken into custody for their connection with the Coincheck compromise. As of now, reports of the story in Japan are somewhat conflicting and the two individuals could very well be, the hack’s primary suspects. What do you think about the Tokyo police arresting two individuals who purchased stolen NEM? Do you think that we will see more arrests of people who purchased stolen crypto from certain hacks over the years? Let us know what you think about this topic in the comments section below. Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Image credits: Shutterstock, Tokyo Police, Coincheck and NEM logos, Fair Use, Wiki Commons, and Pixabay. Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here. The post Tokyo Police Arrest 2 Men for Buying Cryptocurrency Tied to $530M Coincheck Hack appeared first on Bitcoin News. View the full article

The Bitcoin.com Wallet app has reached almost 10.5 million wallets created across several million app downloads. This milestone follows last month’s release of the new app, which most notably included a redesigned, user-friendly interface along with the lightning-fast Instant Pay feature for bitcoin cash payments and support for SLP tokens. Also Read: Bitcoin.Com Releases Fastest Ever Wallet App, With Built-In Support for Bitcoin Cash-Powered Tokens From 5 to 10 Million Wallets in Less Than Half a Year The Bitcoin.com Wallet app has been one of the most popular wallets for bitcoin cash (BCH) and bitcoin core (BTC) users for several years. After the recent launch of the overhauled app, new and existing users have created a record number of wallets in-app to try out features like Instant Pay. “Users rushed to try our new wallet app,” highlights Bitcoin.com CEO Stefan Rust. “Last November we surpassed five million wallets created. Now—less than half a year on—we’ve surpassed ten million.” Instant Pay is an exclusive new feature that lets users auto-pay instantly with bitcoin cash. The user presets a spending threshold and then scans their app to make a payment, which will complete in microseconds. This contrasts with other wallet apps which require users to manually swipe to approve bitcoin cash payments, with these transactions also completing more slowly. Instant Pay, which gives the Bitcoin.com Wallet app its title of “the fastest Bitcoin wallet,” completes transactions faster than traditional payment methods like Visa and Mastercard. Combined with the redesigned user-friendly interface which aims to make bitcoin management easy for cryptocurrency newcomers and more advanced users alike, the new app provides users with a seamless payment experience similar to the likes of Venmo and Cash App. Built to Be Easy, Simple and Fast Users have also been trying out the app’s SLP token protocol support, a feature which is currently only available in a limited number of wallet apps on the market. This means the Bitcoin.com Wallet now lets users send and receive tokens that can represent real or virtual goods, with the app providing a safe place to store tokens alongside bitcoin cash. The goal behind the new Bitcoin.com Wallet was to create an app that maintains the key features legacy cryptocurrency users expect while also being accessible to new users. “For many crypto newcomers, complex wallet apps are the stumbling block. That’s because these apps are typically built for techies: not for the everyday user,” Stefan explains. “The new Bitcoin.com Wallet app was built to be easy: it’s simple to use and, thanks to Instant Pay, it’s the fastest wallet on the market.” Users can download the new Bitcoin.com Wallet for free today. The app is available for iOS and Android. What do you think about the new Bitcoin.com Wallet app reaching 10 million wallets? Share your thoughts in the comments section below. Images courtesy of Shutterstock. Verify and track bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. Also, keep up with your holdings, BCH and other coins, on our market charts at Bitcoin.com Markets, another original and free service from Bitcoin.com. The post Lightning-Fast New Bitcoin.com Wallet Proves Popular With Over 10 Million Wallets Created appeared first on Bitcoin News. View the full article

Cryptocurrency markets lost more than $30 billion in the last 24 hours as digital asset prices have been slashed alongside traditional stock and commodity markets. Further, crypto proponents have spied Plustoken bitcoins on the move again and speculators assume that 13,000 BTC ($102M) might have invoked the weekend’s massive sell-off. Additionally, global markets have been distraught from coronavirus fears as U.S. 10-year bonds and oil prices tanked on Sunday evening. Also read: Market Update: Coronavirus Fears, Stock Market Crash, and Bitcoin Price Predictions Stocks Markets Plunge, and Crypto Markets Shed $30 Billion During Sell-Off Investors are scrambling to find a safe haven while global markets have been faltering to the lowest levels in years. On Monday morning, after the NYSE bell rang, futures on the three main U.S. indexes dropped significantly more than 4% for each index. On Sunday evening (EST), while traditional stocks and commodities started being traded in Asia, U.S. 10-year Treasury yield dropped to a new all-time low of 0.318%. Oil markets tanked as well as prices fell to levels not seen since 1991. On Monday, oil rebounded a touch trading at $32.17 a barrel but overall it took a 22% cut during the weekend. Global markets have suffered a great deal on Monday morning (March 9, 2020) and everything is in the red. At press time, all three major stock indexes have lost considerable value. Digital currency markets started dropping on Saturday after BTC touched a March high of $9,125 per coin. BTC is down more than 10% on Monday and prices are hovering around $7,600-7,750 at press time. BTC still has around 63% market dominance among the 5,000+ cryptos in existence with the cryptoconomy valued at $226 billion today. According to Messari.io, BTC has around $2 billion in “real” global trade volume but reported volume is around $48 billion. BTC/USD prices on March 9, 2020. Ethereum (ETH) is also down more than 9.3% in the last 24 hours and each ETH is trading for $200 per coin. ETH has lost 12.4% for the week as most of the losses stem from the weekend’s crypto market downturn. XRP has lost 9.5% in the last day and more than 13% for the last week of trading. Each XRP is swapping for $0.20 per token and reported trade volume on Monday is around $3 billion (“real volume 24H” is $215M). The top 10 crypto markets on March 9, 2020. Most digital assets on Monday are down more than 9% in value except for the stablecoin tether (USDT). Reported tether (USDT) trade today is around $67.8 billion but Messari.io shows “real volume” is around $2.2 billion on Monday. Bitcoin Cash (BCH/USD) Market Action Bitcoin Cash (BCH) market action like most coins has been following the downward path. BCH is trading for $265 per coin today and prices are down 14% in the last 24 hours. The weekly percentage is lower as BCH has lost 18.6% in the last seven days. With all things considered, BCH is still up in the last 90 days by 32% and 105% for the last 12 months. The top three pairs traded with bitcoin cash on Monday includes USDT (69.4%), BTC (14.9%), and USD (9.6%). BCH/USD prices on March 9, 2020. Fxstreet John Isige has noticed a “falling wedge” pattern which might give a hopeful outlook to bitcoin cash traders. “[BCH] buyers defend $260 support, resulting in a shallow recovery above $270,” Isige wrote on Monday. “A forming falling wedge pattern is BCH/USD blessing in disguise, likely to support recovery to $350,” the analyst added. Plustoken Scammers May Have Prompted the Dump It seems the Plustoken scammers may be up to no good again and they seem to be selling bitcoins acquired from their billion-dollar scheme. Market observers witnessed 13,000 BTC sent to bitcoin mixers and crypto speculators assume the scammers are selling. ~13k in new PlusToken mixer deposits in last 24 hrs. Almost all previous mixer deposit change has entered mixing, confirming my theory. Distributions still on/off. Much slower than September and November. New report and full sit rep imminent. pic.twitter.com/vwrBuVk272 — Ergo ∴TxIDs Or It Didn't Happen∴ (@ErgoBTC) March 6, 2020 Signalprofits.com executive Jacob Canfield said there are three “bearish narratives” right now that “could be impacting bitcoin.” “Coronavirus (all markets selling off), miner hoarding (typically strong bearish indication), and the Plustoken scam dumping on the market again. (They moved 19k bitcoin yesterday),” Canfield tweeted. “Never long when Plustoken moves bitcoin,” the investor also added. The Plustoken sell-off theory is definitely making the rounds within crypto publication headlines, forums, and social media. “The sudden drop in prices seems to arise out of the selling of BTC by Plustoken,” Ashish Singhal, CEO of the cryptocurrency exchange Coinswitch.co told the reporter Omkar Godbole on Monday. Coronavirus and Crypto In addition to the Plustoken news, the coronavirus outbreak and the effect on cryptocurrency markets has been a widely discussed subject as well. Market maniac Holger Zschäpitz tweeted about the overall situation on Monday morning. “Global markets in panic mode,” Zschäpitz wrote. “Oil prices crashed, equities plunged, currencies and bonds saw wild moves as a full-blown price war in crude add to coronavirus worries. Nikkei down almost 6%. U.S. 10y yields [negative] 0.5%. Brent Oil at $32/bbl. Gold $1,673. Bitcoin in turmoil as well, plunged [below] $8k.” Many cryptocurrency proponents are wondering how digital assets will hold up as the coronavirus outbreak wrecks global markets. On Monday, March 9, 2020, there’s 111,753 confirmed coronavirus cases and 3,888 deaths worldwide. In a note to investors on Monday morning, Etoro market analyst Simon Peters discussed crypto assets and the Covid-19 pandemic as well. Peters noted that the pandemic is a black swan event and the unexpected occurrence has had a major impact on stock markets. Peters stressed that during times of crisis, investors often “look for hedges outside of the traditional markets, with gold usually being the first choice.” “During recent scares, such as the threat of war in the Middle East earlier in the year, we have seen a flight to crypto-assets like bitcoin,” Peters’s note disclosed. “This suggests investors are starting to see crypto assets as a hedge because they are decentralised and free from government intervention. It could be that the general downward sentiment of the markets and other commodities, such as oil, has also become a drag on crypto asset values this time around. However, I remain bullish about bitcoin, with a variety of models, such as Stock-to-Flow, pointing to a solid run over the next 24 months,” the analyst added. Peters concluded by stating: In my view, bitcoin will break $20,000 over the next six months. Store of Value and Stock-to-Flow Pundits Criticized Crypto Twitter on Monday was filled with memes and jokes about the “store of value” gang and believers in the stock-to-flow (S2F) scenario. After BTC prices dropped like a rock this weekend and gold prices touched the $1,702 range, Gold bug Peter Schiff mocked bitcoiners who believe BTC is a store of value. Gold prices on March 9, 2020. The devastated stock and commodity markets worldwide have not affected gold prices and in fact, the price of gold has risen significantly. “Bitcoin was created after the 2008 financial crisis and hodlers always assumed that it would be the safe-haven of choice during the next,” Schiff tweeted. “Looks like they assumed wrong. If bitcoin is not a currency, not a store of value, and not a safe haven, then what is it and why own it?” Schiff further asked. U.S Government Bonds 10 YR yield down 51% in one day….not even Bitcoin has seen a percentage drop like this in a single day, ever. Yet #bitcoin is “too volatile to be a store of value” 🙄 pic.twitter.com/bRh96b2YbM — 🏔DenverBitcoin🏔 (@denverbitcoin) March 9, 2020 However, BTC believers totally disagree and on Sunday the well known S2F expert Planb said BTC prices are still following the S2F track. “S2F chart adjusted for today’s “crash” … nothing really happened, BTC still spot on S2F track,” Planb tweeted. Cointext CTO Vin Armani noted on Twitter that BTC buyers two years ago are now down. Armani tweeted: If you took USD and bought BTC two years ago and held it until today, you have less wealth, in USD value than if you had stuffed that USD under your mattress. To so many of you out there these days pic.twitter.com/7zY4WJMNnt — Eric Wall IS RIGHT (@ercwl) March 7, 2020 Overall, a great majority of crypto participants on social media and forums are discussing the crypto market downturn and many are guessing what will happen next. So far, digital currency markets are not following the hedge trend Etoro’s Simon Peters has seen in the past. Schiff and gold bugs have been reveling in the fact that gold prices have been following the safe-haven trend. On Monday, gold prices are hovering around $1675 per ounce and the current global market crisis has bolstered its value even more so. Where do you see the cryptocurrency markets heading from here? Let us know what you think about this subject in the comments section below. Disclaimer: Price articles and market updates are intended for informational purposes only and should not be considered as trading advice. Neither Bitcoin.com nor the author is responsible for any losses or gains, as the ultimate decision to conduct a trade is made by the reader. Always remember that only those in possession of the private keys are in control of the “money.” Cryptocurrency prices referenced in this article were recorded on Monday, March 9, 2020, at 11:55 am EST. Images via Shutterstock, Trading View, Bitcoin.com Markets, Twitter, goldprice.org, Fair Use, Pixabay, and Wiki Commons. Want to create your own secure cold storage paper wallet? Check our tools section. You can also enjoy the easiest way to buy Bitcoin online with us. Download your free Bitcoin wallet and head to our Purchase Bitcoin page where you can buy BCH and BTC securely. The post Market Update: Plustoken BTC Moves, Crypto Prices Dive, Coronavirus Cripples Global Markets appeared first on Bitcoin News. View the full article

Cashback is a popular ecommerce system that administers rewards and rebates for shopping. Every time you shop online, and in some cases in-store, you’ll earn up to 1% of the transaction value back. Traditionally administered in cash or rewards points, certain cashback schemes now dispense rewards in the form of cryptocurrency – or “cryptoback.” These provide a passive way to stack sats while you shop. Also read: 13 Crypto Debit Cards You Can Use Right Now Earn Bitcoin for Buying Online With Stormshop Stormshop is a mobile app integration from microtask and earning platform Stormx. It enables shoppers to receive crypto rewards for shopping online and is available in over 187 countries including the U.S. More than 400 merchants are onboard such as Samsung, Microsoft, Groupon, Macy’s, New Balance and Gamestop. The Stormshop plugin, available for web browsers such as Chrome, Opera, and Brave, and now for iOS and Android on mobile, administers rewards known as Bolts. Up to 40% is available in crypto cashback, paid in BTC, ETH, LTC, DAI or STORM. Shoppers can swap Bolt rewards points for cryptocurrency, paid to their ERC20 wallet or Coinbase account. Stormx claims to have more than 2.5 million users, having grown to become the best-known and most popular multi-currency cryptoback service. Stack Sats for Spending With Lolli Lolli is a BTC-only cashback plugin. Like Stormshop, it operates as a browser extension and disburses rewards in BTC for shopping with qualified retailers. The Lolli browser plugin will notify you whenever you’re shopping at one of its partner stores, which include hundreds of brands such as Expedia, Hotels.com, GAP, Macy’s, and Hilton. Up to 30% in cryptoback is promised, delivered to your Lolli wallet. From there you can send it to your personal BTC wallet or exchange it to USD and have it sent to a bank account. The Lolli extension works for Chrome and Firefox, but unlike Stormshop is not available for mobile. Get Paid for Using Your Credit Card With Pei Pei is a cashback system that rewards you in BTC or fiat currency. Unlike Lolli and Stormshop, Pei works with your existing credit and debit card and can thus be used for in-store purchases as well as online. After linking your card to the Pei app and then using it as you would normally, you’ll receive cashback in your choice of BTC or fiat. There’s no membership fee for using Pei, and special offers with selected retailers provide an opportunity to claim additional cashback. Earn Cryptoback for Shopping With Your Wirex or Crypto.com Card The other way to earn crypto rewards when shopping in-store is by using a crypto debit card. Two of those recently featured in news.Bitcoin.com’s round-up of crypto cards provide this feature: Wirex and Crypto.com. The former pays out 0.5% in cryptoback, paid in BTC, for in-store purchases, rising to 1.5% if you hold 500,000 WRX tokens. Crypto.com’s MCO Visa card, meanwhile, awards 1-5% in cryptoback for purchases. Crypto cashback provides a simple yet effective way to passively increase your cryptocurrency balance while going about your daily business. Naturally, there’s a privacy trade-off to consider in linking your crypto proclivities with your consumer spending habits. Given the modest sums of cryptocurrency to be acquired in such a manner, however, you may decide that your penchant for stacking sats in the form of cryptoback is unlikely to draw much heat. Cryptocurrencies give ordinary people a way and a reason to save and crypto cashback provides a tangible use case for digital assets, adding sats to your wallet as you shop. Do you use crypto cashback services? If so, which ones do you recommend? Let us know in the comments section below. Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Images courtesy of Shutterstock. Did you know you can verify any unconfirmed Bitcoin transaction with our Bitcoin Block Explorer tool? Simply complete a Bitcoin address search to view it on the blockchain. Plus, visit our Bitcoin Charts to see what’s happening in the industry. The post 5 Crypto Cashback Solutions That Award You Satoshis to Shop appeared first on Bitcoin News. View the full article

In what seems to be another episode in a long-running campaign, the Russian telecom regulator has restricted access to at least six websites posting content related to cryptocurrencies. Тhe forum section of Bits.media, a leading crypto news outlet, is among the internet pages that have been blacklisted this month. Also read: Russians Can Use Qiwi, Sberbank, Yandex Money and Now Binance P2P Exchange to Buy Bitcoin With Rubles Roskomnadzor Restricts Access to Crypto Forum The latest offensive was launched on March 5, when the Federal Service for Supervision of Communications, Information Technology and Mass Media (Roskomnadzor) added five crypto websites to its register of banned internet sources. Access to btcphone.ru, alfatop.me, nicechange.org, bitokk.com, and prostocoin.com was restricted following a ruling by the Nyandomsky District Court in Arkhangelsk Oblast issued a day earlier. The sites offer different services, from crypto exchange to mobile top-ups with bitcoin, and one of them is an information portal. Roskomnadzor blacklists websites publishing crypto content and offering related services. Around the time these websites were blocked, readers complained that the Bits.media forum became inaccessible too. Eventually the outlet was able to establish that this section of its website was blacklisted on a 2017 request from the Federal Tax Service (FTS) citing a ban on the dissemination of prohibited information in Russia. At the time, the tax agency was unhappy with a forum thread about an online casino. The thread was created and closed in 2016. It was eventually deleted. Bits.media founder Ivan Tikhonov commented on Facebook: RKN blocks the site again. Stock up on proxies and VPNs. Tikhonov’s team is currently negotiating with Roskomnadzor. The problem is that some internet providers have actually blocked the whole domain, not just the website’s forum. Those that are not diligent enough to immediately implement the regulator’s restrictions are threatened by sanctions. A reversal of the ban, however, could take several months and no one will be held accountable for any delays in this case. Tikhonov also posted a screenshot of the official reference to the blocking of Bits.media from Roskomnadzor’s website and said that the agency had acted without prior notice. Bits.media blocked on request from the Federal Tax Service dating back to 2017. Regulator Accused of Targeting Websites Arbitrarily Roskomnadzor started blocking crypto websites in 2015. Since then, multiple platforms have been affected, including Coinspot and Cointelegraph a few months ago. Authorities find grounds for these decisions and actions in a statement by the Central Bank of Russia (CBR) on “virtual currencies” published in 2014. Besides issuing the usual warnings to the public, the bank stated that the law prohibits the issuance and circulation of “money surrogates” on the territory of the Russian Federation. Central Bank of Russia Bits.media points to many similarities between the different cases. For example, they are often filed by prosecutors in various Russian regions but the restrictive measures are imposed on a national level. The district courts refer to the CBR’s position and the absence of a regulatory framework but fail to recognize that no current Russian law bans decentralized cryptocurrencies or the publication of information about them. Furthermore, blocked websites are often totally unrelated, which leaves the impression that they are being targeted arbitrarily. As a result, operators of such platforms successfully challenge the rulings in higher courts. In March 2018, the Saint Petersburg City Court struck down a ban on 40 websites with information and services related to cryptocurrencies. In April, the Supreme Court overturned a decision to block the Bitcoininfo.ru portal. In May 2019, Roskomnadzor was forced to remove Bestchange.ru from its blacklist, after prosecutors gave up efforts to block the website citing the lack of regulations. According to recent statements by officials, the Russian parliament may finally adopt the Law on Digital Financial Assets by the end of March. What’s your opinion about Roskomnadzor’s actions against crypto websites in Russia? Share your thoughts on the subject in the comments section below. Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Images courtesy of Shutterstock, Roskomnadzor. Do you want to dig deeper into Bitcoin? Explore past and present cryptocurrency prices through our Bitcoin Markets tool and head to our Blockchain Explorer to view specific transactions, addresses, and blocks. The post 6 Crypto Websites Blocked by Russia’s Media Watchdog, Including News Outlet appeared first on Bitcoin News. View the full article

According to the Bitcoin Obituary Page, Bitcoin died 379 times between 2010-2019 of an astonishing array of causes. The number is undoubtedly understated since it is based on a limited sample of obituaries. Despite the glee with which the corpses of Bitcoin are contemplated, however, cryptocurrency thrives because it continues to fill the human need for privacy and financial control. Also read: A Sea Change to Crypto Hits America, Again The Antifragile Bitcoin The structure of crypto is robust. The economist Nassim Taleb developed the concept of “antifragility” in his book “Antifragile: Things That Gain from Disorder.” Taleb distinguished the concept from resiliency. Antifragile things “benefit from shocks; they thrive and grow when exposed to volatility, randomness, disorder, and stressors and love adventure, risk, and uncertainty … Antifragility is beyond resilience or robustness. The resilient resists shocks and stays the same; the antifragile gets better.” Crypto on a blockchain is viewed as antifragile. In a 2018 blog post on Medium, Taleb explained why. Central banks that are “a perfect monoculture” that all operate under the same centralized model, whereas Bitcoin works in a “distributed” or decentralized manner. Taleb cited Friedrich Hayek’s defense of decentralization, which rested on the superiority of distributed knowledge. Taleb commented, “Well, it looks like we do not even need that thing called knowledge for things to work well. Nor do we need individual rationality. All we need is structure.” The blockchain structure has no owner, no centralized authority, no need to deal with a trusted third party. The freedom from third parties gives Bitcoin a marked advantage over other private currencies, like gold. “Banks control the custodian game and governments control banks … So Bitcoin has a huge advantage over gold in transactions: clearance does not require a specific custodian. No government can control what code you have in your head.” The distributed control of “the crowd” not only sidesteps centralized authority, it also offers the diverse innovation by which Bitcoin improves by being tested. Decentralization is its antifragility. Overconfidence would be a mistake, however. Powerful and highly motivated enemies want to destroy free-market crypto, and they should not be underestimated. How to Kill Crypto The state and a tech attack by bad actors are the two greatest threats to free-market crypto. The latter is the least worrisome, however. The Bitcoin blockchain is close to unhackable, and innovative development can address other technical problems that arise. By contrast, the state knows where you live, and there is sometimes no escape. An April 24, 2018 paper by Morgen Peck in the MIT Technology Review is entitled “Let’s Destroy Bitcoin.” Option one in doing so is labeled “Government takeover” and refers to creating a national digital currency. Peck envisions a dystopian future in which taxes are paid through “an algorithm” that “automatically makes a withdrawal from your electronic wallet, in a currency called Fedcoin.” Fedcoin is a digital currency that is issued by central banks with the blockchain administered by the state or institutions under its authority. Peck sketches the Fedcoin system. “Each bank is responsible for a chunk of addresses on the blockchain. When new transactions come through, the bank validates them in a new block and sends it to the Fed. The Fed then acts as the final arbiter, checking the entries and unifying the blocks into a master version of the blockchain that it makes public.” To access the system, a person needs to prove their identity and establish a wallet with the Federal Reserve or an approved financial institution. At first, Fedcoins could be purchased for cash; when people become comfortable with the new currency, however, the coins can replace cash entirely. The cashless society would allow the state to tax and impose monetary policy more efficiently. New coins could be minted at will, for example. Blacklists could exclude objectionable people and organizations from participating in the only authorized financial system. Fedcoin would kill Satoshi Nakamoto’s vision of a private, decentralized currency through which individuals become self-bankers. Or would it? Can the State Destroy Bitcoin? Probably not. For one thing, an effective ban on free-market crypto would require a worldwide effort that would be very difficult to coordinate. National responses to crypto vary widely. Several nations ban crypto, while others rush to embrace it as a money-making proposition. Users tend to shift their money over to the friendly venues. Global attempts to control crypto would resemble a whack-a-mole game. For another thing, although the state can hunt down miners or users, it cannot destroy an idea. And this is what lies at Bitcoin’s core — an idea, a protocol — a well-known idea and an easily duplicated protocol. Even if Satoshi’s whitepaper had been censored in 2008, the technology could not have been suppressed. At most, it could have been delayed. When crypto inevitably did emerge, it would have an immediate advantage because coding is faster and more adaptive than legislation. Perversely, a common consequence of censorship or bans has been to strengthen the target, not to eliminate it. There are several reasons. Outlawing things and activities often lends them a cachet or a thrill. Meanwhile, illegality usually hikes the price of an item — drugs, for example — but the item continues to be readily available. Some contraband — drugs, for example — can become more available because they are so profitable that merchants flood into the market. Saifedean Ammous, author of “The Bitcoin Standard: The Decentralized Alternative to Central Banking,” is among those who believe attempts at suppression encourage free-market crypto. “People think that if a government were to pass a law that bans Bitcoin,” Ammous explained, “then Bitcoin goes away and they get to laugh at us and that’s the end of the story. I think it’s actually the other way around.” A ban would increase public awareness of two realities: if users are willing to risk imprisonment, then crypto must be valuable and useful; and the state is at war with financial freedom. Both insights favor crypto. Even the severe and showcased punishment of crypto users does not necessarily discourage whatever illegal activity the state presents as justification. Ross Ulbricht —creator of the darknet marketplace, the Silk Road — is a case in point. Arrested in 2013, Ulbricht was eventually sentenced to a double life term in prison with no possibility of parole. And yet, darknets persist. The attempt at suppression of targeted offenders can backlash by making the freedom of crypto more attractive and accelerating the conversion of wealth from physical assets into digital ones. A state’s best chance to monopolize digital currencies is a three-pronged attack. 1) Issue its own digital currency that competes vigorously by offering legal advantages to users while retaining some practical advantages of the free-market ones, such as speed of transfer. 2) Constantly demonize private cryptos as high-risk vehicles of crime and immorality. Instead of blatant censorship, the state runs a propaganda campaign. 3) Then ban or strictly regulate private crypto. Free-market crypto would become black market and so justify an ever-tightening grip by the state. “The way for them to kill Bitcoin is for them … to offer a technology that is better than Bitcoin — that can obviate the need for Bitcoin,” according to Ammous. “Or, at least, they need to try.” Actually, the state only needs to convince people that free-market crypto is dangerous and state-issue is a safe replacement, whether or not it is true. In short, a money monopoly = safety and morality; freedom=risk and turpitude. The state needs to convince people fast because the economy is running out of time. The “everything-bubble” — a large and simultaneous bubble in a variety of asset categories — is stretched to breaking, and the center cannot hold. A new currency and payment system could give the banks an air of efficiency and progress, while buying time for the state. Ammous is correct. The state needs “to try” to recreate crypto as a vehicle of state power. The attempt may succeed temporarily and to some degree, but state-issued crypto will ultimately fail because it no longer benefits the users. If it did, state crypto would not require the force of law. As merely one example: the Bitcoin blockchain is designed to distribute power across a peer-to-peer system that does not allow an authority to rewrite the rules arbitrarily. This is an essential check on the system’s integrity. If a centralized authority controls the blockchain, however, it becomes a database that serves the interests of the state. The blockchain loses its free-market “use value,” which is the private and convenient transfer of money over distance. Instead, the blockchain and its coins acquire a “use disvalue,” which is their cost in terms of surveillance and taxes, including inflation. Rumors of Bitcoin’s death are exaggerated, but they should not be ignored. Knowing how to sidestep a danger means knowing what and where it is. Op-ed disclaimer: This is an Op-ed article. The opinions expressed in this article are the author’s own. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the Op-ed article. Readers should do their own due diligence before taking any actions related to the content. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any information in this Op-ed article. Images courtesy of Shutterstock, fair use. Did you know you can verify any unconfirmed Bitcoin transaction with our Bitcoin Block Explorer tool? Simply complete a Bitcoin address search to view it on the blockchain. Plus, visit our Bitcoin Charts to see what’s happening in the industry. The post Rumors of Bitcoin’s Death Are Greatly Exaggerated appeared first on Bitcoin News. View the full article

A few blockchain surveillance companies like Cyphertrace have recently published reports on criminal activities tied to bitcoin usage and the studies mentioned the topic of “virgin bitcoins.” According to industry executives, freshly minted bitcoins with no transaction history can sell for a 10-20% premium compared to coins sold on the open market. Even though the subject of ‘clean’ and ‘tainted’ bitcoins is debatable, the following editorial is a look at why virgin bitcoins might be sought after and why institutional investors and even criminals want to acquire bitcoins with no onchain history. Also read: There’s No Such Thing as Tainted Bitcoins What Are ‘Virgin Bitcoins?’ Bitcoin transactions are not anonymous and the blockchain provides the world with a record of every transaction that takes place when people send or receive the digital asset. It doesn’t mean that people cannot obfuscate their transaction data by using Tor, VPNs, and mixers like Cashfusion. But most people are unaware of such tools and their transactions can be traced all the way back to the coin’s creation. Freshly minted bitcoins are captured by miners hashing away at the network in hopes they acquire a new block. When a miner finds a block, the mining operation or pool is rewarded 12.5 coins per block. The coinbase reward of 12.5 bitcoins is comprised of coins that have never been transacted, as they are brand new and untouched. Cryptocurrency enthusiasts have called these new coins “virgin bitcoins” and there are claims that institutional investors will pay a 10-20% premium to get their hands on untouched crypto. When a miner finds a block, the mining entity is rewarded 12.5 bitcoins today. In less than two months, the top three SHA256 consensus-based networks BTC, BCH, and BSV will see the block subsidy rewards halved from 12.5 coins to 6.25. The freshly issued bitcoins that miners acquire from mining are considered ‘virgin bitcoins’ as they have never transacted beyond the first issuance. In June 2019, the CEO of Babel Finance, Flex Yang, discussed the subject of virgin bitcoins with reporter Shiraz Jagati. Yang explained during the interview that virgin bitcoins were essentially tokens with no transaction history and this can be quite valuable to certain entities. Yang noted that virgin bitcoin buyers stem from the U.S. and other regions with stricter regulations. The sellers, of course, derive from mostly Chinese miners mining bitcoins on the mainland in areas like Sichuan. “Buyers may be pursuing these coins because of their novelty as well as the perceived ease-of-compliance in regulatory uncertainty. In truth, virgin bitcoin might not benefit family funds or intuitions/individuals making the purchase,” Yang stressed. The Babel Finance founder highlighted: There is clearly more confidence in virgin (or white) coins and they continue to fetch high premiums as a result. The CEO of Babel Finance, Flex Yang, believes that ‘virgin bitcoins’ or ‘clean’ coins sell for a premium. The Babel Finance founder also wrote a comprehensive opinion editorial on the subject of virgin bitcoins. Jagati not only spoke with Yang but also conversed with Dave Jevans, the CEO of the blockchain surveillance firm Ciphertrace about the subject of virgin bitcoins. Jevans explained that coins that have traversed the darknet (dark tx) can render a coin unclean. Not only are institutions searching for virgin bitcoins, but criminal entities find untouched coins valuable because they mask assets acquired illegally. “Dark tx histories also impede the fungibility of the btc if these tokens have a lower value,” Jevans said in July. “This a big concern for hedge funds that are concerned that their entire fund could be tainted by a few bad tokens. While this is less likely to affect those holding small amounts, larger traders could potentially, and unwittingly, hold larger amounts of stolen assets, lowering the value of their investment pool through association.” The Babel Finance founder Flex Yang also wrote a comprehensive opinion editorial on the subject of virgin bitcoins. Yang noted that stricter regulations might create even more demand for so-called ‘clean’ bitcoins. TIL: Virgin Bitcoin 👉Bitcoin that is freshly mined 👉Institutional investors and large buyers prefer Virgin Bitcoins as they do not have any risk of shady past. I think it'll be seen as a status symbol in the future if you're a hodler of Virgin Bitcoins #btc #bitcoin — Nischal (WazirX) ⚡️ (@NischalShetty) July 20, 2019 Black, Gray, White, Virgin, and Sanitized Bitcoins Four months ago on the Reddit forum r/btc, one user explained that he feels the same way as Yang and he expects all types of subjective valuations will be applied to certain bitcoins. The Redditor believes that at first, the concept of virgin bitcoins might sound like “snake oil,” but in the future, blockchain forensics companies will probably classify UTXOs into several categories. The Redditor u/rattie_ok also wrote a draft of what the classifications might look like to firms like Ciphertrace and Chainalysis. He said: 2% of all bitcoins: Black – located on, or several hops away from, a known darknet/blacklisted address. These could be spent in black markets only. Exchanges and banks would immediately freeze these coins at deposit, and open an investigation with authorities. 40% of all bitcoins: Gray – coins of untraceable origin, assumed to be mixed. Extreme KYC/KCOYC/AML vetting will be required to trade or sell these coins in the “normal” world. Legally operating merchants in some countries would need to ID you before accepting payment. 55% of all Bitcoins: White – coins with a fully traceable origin, right from the moment they were mined or bought from a KYC/AML exchange. In the distant future, owning whitelisted coins would allow nation-states to practice “legal ownership” laws by forcing miners to accept only transactions signed by a trusted (central) bank. You’d be able to reverse an illegal tx, same way you can now reverse a Visa or Paypal transaction. 3% of all bitcoins: Virgin – coins with zero transactions. These would be used as collectibles or as monetary reserves in case bitcoin replaces physical gold. In 2014, Vaurum and venture capitalist Tim Draper purchased 30,000 BTC from the Silk Road auction held by the United States Marshals Service. Blockchain forensics experts would consider the 30,000 seized coins ‘sanitized’ because they have been sold on the market by a government agency. After understanding why institutions and even criminal entities would want virgin bitcoins, people might wonder why an investor like Tim Draper would purchase 30,000 Silk Road BTC when they were used in many darknet transactions. However, those coins acquired in the United States Marshals’ auction are now considered “sanitized” by government agents. They can be considered sanitized because the once ‘tainted’ coins passed through the hands of the government and therefore the history of that event is 100% evident on the BTC blockchain. However, the concept of tainted coins might only derive from blockchain forensic firms and law enforcement, as news.Bitcoin.com’s Kai Sedgwick points out in his recent oped “There’s No Such Thing as Tainted Bitcoins.” “The reality, however, is far different, for ‘taint’ is solely in the eyes of the beholder – and most beholders aren’t Chainalysis,” Sedgwick stressed. Is the Concept of Virgin Bitcoins a Myth? On December 2, 2019, Coin Metrics founder Nic Carter tweeted about a recently published “On the Brink” podcast with the cofounder of CMS Holdings, Dan Matuszewski. Before he started CMS, Matuszewski was the head at Circle Financial’s over-the-counter (OTC) desk Circle Trade. During the episode, Matuszewski discussed the virgin coin market and he said while he worked at Circle Trade he never saw such trends. The cofounder of CMS Holdings, Dan Matuszewski, told the hosts of the podcast “On the Brink” that he never saw demand for virgin bitcoins while he worked with Circle Trade, the over-the-counter subsidiary run by Circle Financial. The podcast host asked Matuszewski if he ever saw virgin coins sold for a premium. “No, if that happens I’ve never seen it,” Matuszewski said. “People have pitched it to us and I’m like ‘absolutely not’ and I’ve never seen anyone come to us trying to buy them,” he added. “I’ve never seen a demand-side — people who don’t know what they are talking about sometimes asked about [virgin coins] — but it was never pitched in a frame as in ‘I only want to buy these and I’m willing to pay more.” For a while now, people have debated the existence of the virgin bitcoin market and whether people actually pay a premium for coins that haven’t transacted. If there is a market for virgin bitcoins someone might wonder where they could obtain coins with no history behind them. Tainted coins are not the only types of crypto that might carry numismatic value, as there’s all types of nostalgia that make some bitcoins worth more than others in the eyes of the beholder. Some coins like Casascius physical bitcoins from 2011-2013 do carry more value than the bitcoins that can be bought on an exchange. It’s also worth noting that Casascius physical bitcoins come with coins that stem directly from miners. In Order to Obtain Virgin Bitcoins, You’ll Need a Direct Connection With a Miner In order to acquire freshly issued coinbase rewards, a person or organization would need to be partnered with a mining operation that collects these rewards directly. The connection between the buyer and the miner has to be more direct than simply signing up for a pool that distributes fractions of digital currency to all its participating members. Get ready by smart regulators considering only virgin Bitcoins mined in US/Canada and EU be accepted into ETF to comply with AML laws and stop China and or Russian minted coins to not be sold to American investors https://t.co/PqE9ZYt6RI — Frank Holmes (@bulldogholmes) August 24, 2018 Miners also get the fees associated with transactions in addition to the 12.5 bitcoin reward and they are often used for distribution. Just because you are a cloud mining participant or a member of a pool, the pool owner probably won’t give you or other participants the freshly minted coin. In fact, data from the analytical website bytetree.com shows that months before the upcoming BTC and BCH halvings, rewards have been hoarded. This trend can be seen on a chart that shows generated coins and the first time they are spent onchain. Six months before the great Bitcoin Halvings data from bytetree.com and other stats indicate that bitcoin miners mining both BTC and BCH are hoarding. However, when the price of BTC drops like it did on Sunday, March 8, 2020, then freshly generated coins and the first-spend onchain trendlines meet more frequently, which means miners are selling immediately at these specific times. This type of trend can be seen in the chart above. When the price is doing much better, the generation and onchain first-spend lines will be spread further apart more frequently. Despite the fact that Matuszewski never witnessed the virgin bitcoin trend during his tenure at Circle Trade, it doesn’t mean the demand for untouched coins doesn’t exist. Ciphertrace and Babel Finance CEOs and a few other members of the crypto industry believe that virgin coins have greater numismatic value. There are even trading platforms like Vertex.market that claim that they can obtain virgin bitcoins for customers if they desire. Some people also believe that a regulated exchange-traded fund (ETF) in the U.S. will need virgin bitcoins to comply with AML laws. What do you think about the subject of virgin bitcoins? Do you think that there’s a significant demand for coins that haven’t transacted or do you think it’s a myth? Let us know what you think about this subject in the comments section below. Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Image credits: Shutterstock, Coindesk, Fair Use, Wiki Commons, Bitcoin.com, bytetree.com, Twitter, Reddit, and Pixabay. Want to create your own secure cold storage paper wallet? Check our tools section. You can also enjoy the easiest way to buy Bitcoin online with us. Download your free Bitcoin wallet and head to our Purchase Bitcoin page where you can buy BCH and BTC securely. Did you also know you can earn BTC and BCH through Bitcoin Mining? If you already own hardware, connect it to our powerful Bitcoin mining pool. If not, you can easily get started through one of our flexible Bitcoin cloud mining contracts. The post Industry Execs Claim Freshly Minted ‘Virgin Bitcoins’ Fetch 20% Premium appeared first on Bitcoin News. View the full article

The true identity of the creator of Bitcoin is one of the biggest mysteries in the modern world. Over the years many theories have popped up about who Satoshi Nakamoto really is, including a time traveler, a space alien, a rogue artificial intelligence or a front for groups such as the NSA, CIA and Yakuza. This article will present only the known facts about him and the more likely candidates who people suspect may be be the elusive figure. Also Read: 10 People Who Might Be Satoshi Nakamoto Who Is the Mysterious Founder of Bitcoin? The name Satoshi Nakamoto is an alias used by the person or entity who created Bitcoin to hide their true identity. He claims to be Japanese, born on April 5, 1975 and reside in Japan but people doubt this due to his native-level command of the English language as well as his preference of working hours more consistent with the U.K. time zone than Asia. Satoshi is a Japanese boy’s name that means “one with wise ancestry” and he is presumed to be male. Nakamoto was the first to solve the double-spending problem for a decentralized digital currency, creating a new asset, the likes of which the world had never seen before: Bitcoin. In October 2008, Satoshi published the original whitepaper, describing his blueprint for a “A Peer-to-Peer Electronic Cash System.” In January 2009 he released version 0.1 of the source code and launched the cryptocurrency by mining the genesis block. The founder continued to work on the software project for about another year and a half before disengaging from active development. Nobody knows why Satoshi Nakamoto really decided to disappear without ever revealing himself or even cashing out some of the billions of dollars his early minted coins are now worth. This has provided fertile ground for speculation, educated guesses and outright conspiracy theories. Researchers have pored over the few data points left by the mysterious figure, trying to analyze his vocabulary, his way of writing and other clues to find some hints to his true identity. Let’s have a look at some of the names that have been put forward as possible Satoshis. Will the Real Satoshi Nakamoto Please Stand Up Dorian Nakamoto is the man with the friendly face most people now associate with the creator of Bitcoin. He was outed as Satoshi in March 2014 by Newsweek Magazine, which created a media frenzy around him and greatly disrupted his life. Dorian has denied having any connection to the development of cryptocurrency but eventually embraced a role of a mascot of sorts for the community. The evidence cited by the magazine includes the fact that Dorian was actually born with the name Satoshi. He was trained as a physicist at Cal Poly University and worked as a systems engineer on classified defense projects and a computer engineer for technology and financial information services companies. Nakamoto also has libertarian tendencies and encouraged his daughter to have a business “not under the government’s thumb.” And when he was first asked about Bitcoin, Nakamoto mistakenly thought it was a question about one of the classified projects he did for U.S. military contractors and said: “I am no longer involved in that and I cannot discuss it. It’s been turned over to other people. They are in charge of it now. I no longer have any connection.” For a more detailed look at Dorian as Satoshi Nakamoto see here. Dorian (Not Satoshi?) Nakamoto at a Bitcoin Conference in San Fransisco Hal Finney was a cryptographic pioneer, cypherpunk activist and the first person ever to receive a bitcoin transaction. Coincidentally or not, he also was a neighbor of Dorian Nakamoto. A Caltech engineering graduate and a developer for the PGP Corporation, he had the required skills to create a cryptocurrency from scratch and was the first person to improve the Bitcoin source code after Satoshi. Finney died in August 2014 and was cryopreserved by the Alcor Life Extension Foundation. Hopefully one day the technology to revive him will be invented and he can provide more clarity on the issue if it has not been resolved by then. For now you can see all the many facts pointing to Hal being Satoshi here. Nice Szabo, self-described “Blockchain, cryptocurrency, and smart contracts pioneer,” was in contact with like Hal Finney and his name often comes up as a possible Satoshi despite his claims otherwise. People who think he may be the creator of Bitcoin point out his proposal for a decentralized currency called bit gold from 2005 which uses similar concepts to those eventually perfected by Bitcoin. For a breakdown of the facts pointing to Nick Szabo being Satoshi see here. Craig Wright is mostly thought of as a conman these days but there was once a time when some of the most prominent names in the crypto community thought he was Satoshi. This abrasive character is an Australian academic and businessman who first emerged in December 2015 with reports in Wired and Gizmodo. Since then he tried to force people to accept him as the creator of Bitcoin in various unconvincing ways, such as lawsuits against his critics. For the latest developments in the Craig Wright claiming to be Satoshi Nakamoto saga see here. Paul Le Roux is a much scarier Satoshi candidate who came to light from the legal cases around Wright. Le Roux is a former encryption software programmer and vicious cartel boss turned informant to the U.S. Drug Enforcement Administration. After he was arrested in September 2012 for conspiracy to import narcotics, the criminal mastermind admitted to participating in seven murders. See this link for more on why Satoshi Nakamoto could be Paul Le Roux. Other less discussed possible Satoshi candidates include cypherpunk pioneer Ian Grigg, Japanese mathematician Shinichi Mochizuki and tech mogul Elon Musk. Bitcoin is *not* my safe word — Elon Musk (@elonmusk) January 10, 2020 Elon Musk is mainly involved in the cryptocurrency sphere as a meme lord and casual troll, but he too had to deny being the creator of Bitcoin. As the founder of Paypal, Tesla, Spacex and a multitude of other companies in different fields, Musk probably has the ability to learn whatever skills he needs to create a cryptocurrency from scratch. In November 2017 a former intern at Musk’s rocket company by the name of Sahil Gupta presented the case that his old boss was really the founder of Bitcoin. A Yale University computer science student at the time, he claimed that Musk had both a preference and an excellent grasp of the C++ programming language like Satoshi did. Gupta also pointed out that the stability of the financial system was a major global concern in 2008, and Musk is someone who “identifies the most urgent problems of our time and dedicates his time to solving them,” suggesting he had the drive “to solve the lack of trust in banks by creating a currency that doesn’t need them.” He also claimed the tech mogul had a deep understanding of economics and cryptography needed to write the Bitcoin whitepaper. Musk, who is already a billionaire many times over thanks to Paypal and Tesla, also wouldn’t be tempted to cash out his old coins in a hurry. But the massive stash of BTC and BCH could be used to kickstart the Martian economy once he is out of reach of the IRS on the surface of the red plant. So perhaps he is Satoshi after all and is just using humor to misdirect? Well, now that Satoshi Nakamoto has been discovered, I guess it is case closed … — Elon Musk (@elonmusk) March 14, 2014 What do you think about the possible identity of the creator of Bitcoin? Share your thoughts in the comments section below. Images courtesy of Shutterstock. Verify and track bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. Also, keep up with your holdings, BCH and other coins, on our market charts at Bitcoin.com Markets, another original and free service from Bitcoin.com. The post Who Is Satoshi Nakamoto? An Introduction to Bitcoin’s Mysterious Founder appeared first on Bitcoin News. View the full article

A site as hugely influential as Twitter should ideally take a balanced and responsible approach when suggesting blue check accounts and other popular influencers to follow in the crypto space. Fact is, this couldn’t be further from the reality: Twitter seems to constantly promote the same narrow selection of accounts to follow, some of whom are arguably massive scammers trying desperately to pump their own bags. This begs the question: is Twitter actively helping favored accounts while stifling the reach of others? Also read: Bitcoin History: When DDoS Attacks Made BTC’s Price Drop The Same, Tired Selection One might imagine that figures as controversial as Tron founder Justin Sun — who is recently under fire for what many view as the hostile takeover of crypto blogging platform Steemit — might be handled with care by social media platforms like Twitter. Especially after numerous allegations of scamming, false claims, buying followers, and shameless promo after shameless promo. According to one Redditor who claims to be Chinese and compiled links on Sun, the entrepreneur started a company in China with a name strikingly similar to Ripple, misleading many. Whether it be suspiciously claiming to be CEO of a Chinese language homophone of “ripple” when Ripple company officials themselves deny connection, big talk of partnerships that don’t materialize, or riding the back of tragedy and sickness to promote the copy-pasta-whitepapered clone coin TRX, Sun is no stranger to suspicious cringe shilling and criticism. Why, after all this, does Twitter continue to promote Sun like the second coming of Satoshi in its follow suggestions? For that matter, it stands to ask why other questionable influencers are made so prominent on the site as well, when they seem to be doing little more than advertising for their own crypto products, many of which have yet to be tested or vetted fully for viability. Twitter’s restrictive official stance on business ads for crypto can be found here. Not that there is anything wrong with pushing one’s product, but when other accounts can be easily shadowbanned and suspended for seeming lesser allegations, eyebrows do begin to raise. Kobe, was great to have met you in niTROn 2019. Mtg you was one of my life's greatest honor & privilege, I'll forever remember us on stage discussing the future of blockchain. We'll have a moment of silence in your honor during niTROn 2020. R.I.P. pic.twitter.com/oMqU9ZpkKh — Justin Sun (@justinsuntron) January 26, 2020 Many on crypto Twitter criticized Sun for his apparent use of NBA star Kobe Bryant’s death to shill his Tron crypto summit. Twitter’s Algorithms and Follow Suggestions Twitter has come under scrutiny for its algorithms previously, with CEO Jack Dorsey stating before U.S. lawmakers in 2018 that they had been used by the company “unfairly,” but that the issue had been rectified. A BBC report detailed that users of the platform began to notice relevant tweets were no longer appearing in searches. Dorsey stated that myriad signals were used to choose “what to show, down-rank and filter” and that although the company doesn’t shadowban accounts based on politics, some mistakes were made and accounts had been treated in an unfair manner. Twitter CEO Jack Dorsey addresses lawmakers in Washington D.C. in 2018. Source: Reuters As for follow suggestions, Twitter lists multiple factors that supposedly go in to determining what a given user sees, including contact uploads, user location, Twitter activity and interactions, and info from third-party websites. This all sounds well and good, but why are some accounts suspended or ejected from the platform, while others who seem guilty of mis-informational and spammy abuses, continue to thrive? Even though crypto ads are strictly regulated on the site, influencers like Sun, CZ of Binance, and others seem to be able to weave through this net, shilling their own crypto products to millions of followers with impunity. While many crypto users of libertarian bent might wish to make Twitter much more deregulated, decentralized and “Wild West,” if you will (author included), the seeming lack of consistency is strange. Sitting at the Popular Kids’ Table With Jack Certain influencers favored by the platform’s suggestion feature, and who have real financial clout, make no mistake on where they stand in regard to the current CEO. It’s a bit presumptive on its face to say that all of this is happening because of money and unofficial alliances, but let’s be honest: this is probably happening because of money and unofficial alliances. A site becoming huge does not make it exempt from the natural consequences of human nature; if anything, the problem is exacerbated. Even employees of a small town gas station, for example, will conspire to stiff a new guy out of the best shift when he’s not there. One can only imagine how things get at the major-leagues level of multi-billion dollar empires. To assume conspiracy doesn’t happen at this tier would be naive, to say the least. This is social media. More engagement translates into more revenue, and more “extreme” and enticing posts related to arguments about politics and getting rich quick with crypto stimulate engagement. Former Twitter software engineer Abhinav Vadrevu on shadow banning: "they just think that no one is engaging with their content, when in reality, no one is seeing it" #ShadowBan — WATCH THE FULL VIDEO: https://t.co/ev3bmCVGMQ pic.twitter.com/CxytLgRGsD — Project Veritas (@Project_Veritas) January 11, 2018 Besides, former Twitter employees have admitted such conspiracy goes on, even if it has been somewhat heavily spun by so-called conservative media. Controversial activist James O’Keefe presented video in 2018 of a former Twitter engineer saying: One strategy is to shadow ban so that you have ultimate control. The idea of a shadow ban is that you ban someone but they don’t know they’ve been banned, because they keep posting, but no one sees their content … I don’t know if Twitter does this anymore. While left-leaning media tried to downplay O’Keefe’s hidden video, it nonetheless is troubling. Nobody’s Business but Twitter’s Principled bitcoiners don’t want the government to leverage legislative force on ol’ Jack or Justin, and shape Twitter into a perfectly boring and “fair” Communistic platform where there can be no bias. After all, it’s a business, at the end of the day, and the business can do as it pleases. Besides, whether someone is a scammer or not is often debatable. It’s no secret there are alliances and bitter divisions in the crypto world with each camp calling the other shitcoin peddlers. In fact, such divisions are obvious to the point of Dorsey himself helping to perpetuate them: It’s really no surprise then that some in the Bitcoin Cash community suspect targeted censorship as well. When a BTC maximalist is CEO, of a company whose former employees say shadowbanning was practiced, and accounts seem to be deleted, shadowed, or axed at random, it’s awful hard not to start connecting dots. The controversy surrounding reports of the @Bitcoin handle being sold last year to a BTC maximalist also fueled this fire, as the sale of accounts is prohibited by Twitter’s Terms of Service. I finally reached out to Jack on Twitter to ask why Sun and others seem so universally pushed on his platform’s users, but at the time of writing haven’t gotten a response. Until there is more clarity, it looks like the garish glare of Sun and his ilk will go on trying to blindside folks, but it’s doubtful Twitter denizens will go elsewhere to interact. After all, no one can deny it’s entertaining, and that means sure success for any social media platform. What are your thoughts on Twitter and prominent crypto influencers like Justin Sun? Are some given preferential treatment? Let us know in the comments section below. Op-ed disclaimer: This is an Op-ed article. The opinions expressed in this article are the author’s own. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the Op-ed article. Readers should do their own due diligence before taking any actions related to the content. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any information in this Op-ed article. Images courtesy of Shutterstock, Reuters, fair use. Want to create your own secure cold storage paper wallet? Check our tools section. You can also enjoy the easiest way to buy Bitcoin online with us. Download your free Bitcoin wallet and head to our Purchase Bitcoin page where you can buy BCH and BTC securely. The post Is Twitter Helping Justin Sun and Other Cryptocurrency Celebrities Defraud? appeared first on Bitcoin News. View the full article