roadrunner

A November 15 blog post by Libra project developers detailing testnet developments has apparently failed to impress government regulators and influential voices in the space alike. CEO of blockchain company R3, David Rutter, commented at a London conference last week that “what they did was ridiculously stupid,” going on to call the announcement and approach of the project “naive.” The U.S. Congress is concerned as well, with members proposing a new bi-partisan bill Thursday, which seeks to classify the asset as a managed stablecoin security. Also Read: Paypal CEO Admits He Owns Bitcoin Libra Testnet Developments The most recent Libra developers update notes that the testnet “has logged more than 51,000 transactions since we reset the testnet on September 17, 2019.” The blog post further details that the dev community has launched 10 wallets, 11 blockchain explorers, 2 IDEs, 1 API and 11 clients. “Until we launch mainnet, the best and fastest way we have to demonstrate Libra network functionality and provide early access is through our pre-mainnet. Pre-mainnet, a version of testnet available to Libra Association members, makes it easier and faster to test, troubleshoot, diagnose, and resolve software edge cases,” the update elaborates. Pre-mainnet currently has 7 deployed nodes and 14 in-process nodes, with a goal “to deploy 100 nodes on the mainnet, representing a mix of on-premises and cloud-hosted infrastructure.” R3 CEO and founder David Rutter R3 CEO Criticizes Libra’s Actions For all the developments that seem to be taking place in the Libra camp, some voices remain critical of the project’s bold announcement and entrance onto the scene last summer. Financial News London quotes R3 CEO and founder David Rutter as saying: I think what they did was ridiculously stupid. The way they rolled it out… Yeah, you know it was just so… It was just so in your face. There’s a lack of understanding. Rutter goes on to remark “When we saw [Facebook] talking about doing a basket of currencies with weighting, in reality when we want to translate that back to real-world currencies it’s not simple.” The ongoing saga of Facebook’s struggle against regulatory bodies, especially in the U.S., seems to underscore Rutter’s concerns with a series of congressional letters, hours-long hearings, and criticism from top government officials. This trend continued Thursday with a proposal from lawmakers to classify libra as a security, which could undercut the stated aims of the project. Proposal for Classification of Managed Stablecoins as Regulated Securities While the head of the Libra project for Facebook, David Marcus, has toyed with the idea of possibly utilizing stablecoins in the past, the newly proposed “Managed Stablecoins are Securities Act of 2019” probably is not what the group had in mind. Sylvia Garcia (D-Tex) and Lance Gooden (R-Tex) introduced the bill on Thursday, which would “establish the treatment of managed stablecoins under the securities laws.” Garcia reportedly named libra in a statement about the bill, affirming that libra and managed stablecoins “are clearly securities under existing law.” With many highly prominent members of the Libra Association having already dropped out of the project, the proposal presents even more potential difficulty. Marcus has spoken against the notion that Libra should be regulated as a security previously, comparing it loosely to a platform like Paypal, and increased regulatory scrutiny from the SEC would likely make the project’s aim for large scale financial inclusion much more complicated. What are your thoughts on Rutter’s remarks and the newly proposed legislation? Let us know in the comments section below. Image credits: Shutterstock, Mark Van Scyoc, 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 Libra Testnet Fails to Impress as New Legislation Looms appeared first on Bitcoin News. View the full article

Just before the internet became a massive display of human ingenuity and networking, a few individuals anticipated the emergence of tools that would help progress the end of politics and the nation states. 22 years ago, much like Nostradamus, Isaac Newton, Gerald Celente, and Carl Jung’s forecasts, a book called “The Sovereign Individual” predicted the growing autonomy of the individual but also noted the development of the world’s largest economy flourishing in cyberspace. Also read: Bitcoin Is a Viable Way to Remove the State From Your Life Cryptologic Methods Will Fundamentally Alter the Nature of Interference in Economic Transactions Since the inception of Satoshi Nakamoto’s Bitcoin, many people have come to believe that cryptographic technology is meant to progress freedom and liberty by separating money from the state. The concept is similar to when the church was separated from the state but when the power of the church dissipated, the nation states quickly took its place. Cryptocurrencies now provide the means to transact financially without a middleman and this removes the great wealth of power from the state’s arsenal. More than two decades ago, the cypherpunks started spreading the seeds of crypto-anarchy after envisioning that the internet would help remove the parasites that stem from governments. What’s the Sovereign Individual VC thesis? – Cryptocurrency (decoupling of money & state) – Defense companies (unbundling state monopoly on violence) – Charter cities (markets for governance) – Influencer economy (trust shifting from institutions to individuals) What else? — Erik Torenberg (@eriktorenberg) November 19, 2019 “Just as the technology of printing altered and reduced the power of medieval guilds and the social power structure, so too will cryptologic methods fundamentally alter the nature of corporations and of government interference in economic transactions,” cypherpunk Timothy May wrote in 1988. Humans have always tried to predict the future and forecasting trends has been popular since medieval times. People predicted the world wars decades beforehand, global economies collapsing, and monumental events that have changed society a great deal years before they happened. Most people know about the cypherpunks from Silicon Valley and the great crypto-anarchist manifestos that were published at this time. In addition to these new philosophers, in 1997 two well-known investment advisors and authors, James Dale Davidson and Lord William Rees-Mogg, published a book that also predicted a huge change coming to society over the next century. Within the book of forecasts, the two authors of “The Sovereign Individual” predicted the coming of cryptocurrencies and economic realignment. Rees-Mogg and Davidson’s book does not specifically mention Bitcoin, because it was published 12 years prior to the cryptocurrency’s inception. However, the predictions do note the coming existence of an uncontrollable “cybercash” and that with technology “we will see the growing autonomy of the individual and taxing capacity will plunge by 50-70 percent.” “[Society will] develop what promises to be the world’s largest economy by the second decade of the new millennium,” The Sovereign Individual states. If we were to look at the invention of Bitcoin as being part of the Sovereign Individual’s timeline, we can see that things are just getting started. The cryptoconomy, for instance, is a $200 billion dollar economy that is not backed by a sole individual or endorsed by a corporate entity. Governments do not support the electronic borderless money, and ever since it was created the nation states have met the technology with adversity. How the Information Age and Bitcoin Resets the Odds The open web has allowed online economies to flourish and financial epicenters like New York and technological regions like Silicon Valley have no hierarchy over the internet’s borderless and faceless power. Governments feel threatened by these technologies and The Sovereign Individual’s predictions suggest that the nation states will push back just like the church did. At the time, during “its predominant institution, the church, saw its monopoly challenged and shattered — authority that had been unquestioned for centuries was suddenly in dispute,” Rees-Mogg and Davidson’s book highlights. The Sovereign Individual’s timeline predicts the next millennium will be very similar. With economic tools like cryptocurrencies and other forms of technological advances like autonomous software, drones, defense groups, meshnet technology, Tor, VPNs, and influencer/gig economies, society can begin to remove the bureaucracy from their everyday lives. Davidson and Rees-Mogg’s novel states: We believe that change as dramatic as that of five hundred years ago will happen again. The Information Revolution will destroy the monopoly of power of the nation-state as surely as the Gunpowder Revolution destroyed the church’s monopoly — Like the late-medieval church, the nation state at the end of the twentieth century is a deeply indebted institution that can no longer pay its way. Its operations are ever more irrelevant and even counterproductive to the prosperity of those who not long ago might have been its staunchest supporters. The Future Is Now Right now, many people believe we are entering the initial phase of change that books like The Sovereign Individual predicted decades ago. On page 160 of the book, the two authors stress that as commerce takes hold on the internet “it will lead inevitably to cybermoney.” This new form of money Rees-Mogg and Davidson explain will “reset the odds, reducing the capacity of the world’s nation-states.” “Unique, anonymous, and verifiable, this money will accommodate the largest transactions. It will also be divisible into the tiniest fraction of value. It will be tradable at a keystroke in a multi-trillion-dollar wholesale market without borders.” It is interesting to watch the forecasts written years ago come to fruition and especially ones that are changing society for the better. The advent of Bitcoin and the economy behind the thousands of digital assets out there shows that a massive transformation is indeed happening right now. Past predictions from the cypherpunks and books like The Sovereign Individual may help us understand why. Moreover, failing economies and protests worldwide clearly indicate the demand for freedom is just getting started. What do you think about how Bitcoin and other tools apply to the Sovereign Individual thesis? Let us know what you think about this subject 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. Image credits: Wiki Commons, Shutterstock, Pixabay, Fair Use, and Twitter. 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 Bitcoin Applies to The Sovereign Individual Thesis appeared first on Bitcoin News. View the full article

When Blockstack announced the first Reg A+ token sale, many believed it would open the floodgates for a spate of similar offerings. Reg A+ has long been the Holy Grail of token offerings in the U.S., with a host of companies pursuing the only SEC exemption that allows the inclusion of unaccredited investors. Despite Blockstack winning significant praise and plaudits for securing the exemption where so many had failed, and despite the hope that others would follow where Blockstack has led, the predicted stampede of new Reg A+ offerings has simply failed to materialize. Also read: Grayscale Commences Diversified Large Cap Fund Trading The Blockstack Problem Just two months after the completion of a $23M Reg A+ offering, Blockstack investors are feeling the pinch from owning a token which is now trading at 50% of its public sale price. As The Block’s Larry Cermack opined, anyone who has witnessed the tribulations of Blockstack will have serious pause for thought before pursuing their own regulated security offering. It’s worth considering that a contributing factor as to why Blockstack succeeded in securing its Reg A+ exemption is because it threw serious amounts of money at the problem: a cool $3.5 million dollars to be exact. After all the time, effort and capital expended on what looks like a rapidly diminishing prospect, it’s little wonder that Reg A+ has begun to look less appealing. Charting Another Path Although Reg A+ has been the headline-grabbing STO funding mechanism, there are other, less sexy paths to winning an SEC exemption. A number of companies have taken the Reg D route to securing their token sale, and while this method excludes non-accredited investors from participating, it is also less onerous both in terms of expenditure and compliance. Perhaps the best comparison of Reg D versus Reg A+ is Startengine, the crowdfunding site that successfully won approval for a Reg D offering in 2017, just three months after filing. Following its success in securing a Reg D exemption, Startengine filed to conduct a Reg A+ offering which has yet to win approval despite being lodged with the SEC in November 2018. Reg A+ and Reg D are not the only paths available to U.S. firms, however, if they are willing to look a little further afield for their investors. Preflogic, which is supported by Prime Trust, is currently pursuing a Reg S ‘safe harbor’ exemption that will allow investors outside of the U.S. to invest in its Software-as-a-Service platform. Perhaps the most interesting aspect of the Preflogic project is that the finished service is designed to open asset inventories to underserved SMEs and individuals. Its founder Todd Wier told news.Bitcoin.com: “The current regulatory landscape serves the U.S. well and is the primary reason the U.S. markets are so highly respected: checks, balances and regulatory oversight with an emphasis on corporate transparency. The downside is that it’s dated and needs to be upgraded technologically to serve world market demand.” Wier sees onerous compliance costs as a primary reason why many aspiring token projects have been dissuaded from pursuing a Reg A+ offering. He remains optimistic, however, that these costs may be reduced in future, saying: From a regulatory standpoint, the possibility exists for the market to evolve such that SEC oversight is focused more on inspection and regulation of the token/system/smart contracts employed by the issuer, rather than the player. A Challenging Market In terms of the ease with which ordinary investors can participate, the American market remains one of the toughest nuts to crack. Even Blockstack, whose Reg A+ exemption seemed set to precipitate a new era of inclusive token offerings, has struggled to sustain a successful token price post-raise. For those seeking to raise funds in the STO market, Reg D or Reg S seems the more sensible path. Alternatively, they could play it safe and avoid the U.S. market altogether. Do you think more token projects will pursue Reg A+ offerings? Let us know in the comments section below. Images courtesy of Shutterstock and Coincodex. 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 After Blockstack’s Regulated Offering, Where Now For US Token Sales? appeared first on Bitcoin News. View the full article

Technical analysis of price trends is a topic ever electrifying the world of crypto investment with, dynamic debate on social media and beyond. While there are no guarantees, there are fundamental methods for looking at data which can provide valuable insights, such as analysis of price support lines and resistance, as well as proposed approaches for making the most of bear markets such as the Mayer multiple. Also Read: Bakkt’s Bitcoin Futures Shatters Records Amid Spot Market Turmoil Support and Resistance “The voyage of the best ship is a zigzag line of a hundred tacks. See the line from a sufficient distance, and it straightens itself to the average tendency.” So wrote the American essayist and transcendentalist philosopher Ralph Waldo Emerson in 1841 in his seminal essay Self Reliance. While Emerson had no way of knowing about a future full of heated crypto Twitter debates, his point here nonetheless bears relevance not only for one’s personal life journey, but in the context of support lines for bitcoin as well. What are known as “support” lines in technical analysis of price trends are levels at which dips in price are said to test a low level and return upward, not wanting to sink back below said level. While there’s endless debate and speculation on what are thought to be new supports or resistance (a level that prices tend to hit and then recede from), a broader, macro look at historical data can be enlightening. Bitcoin's parabolic uptrend which started in January 2015 is still intact. Now nearly touching support again, for the first time since March 2019. #buythedip pic.twitter.com/ohMOPEEjiR — Tuur Demeester (@TuurDemeester) November 22, 2019 Examining BTC’s historical trend since January 2015 as depicted above by Founding Partner of Adamant Capital, Tuur Demeester, a general uptrend on the logarithmic chart can be seen which appears to be testing a basic line of support; another area of which could be tested soon should BTC fall to ~$6,400. It is important to note, however, that even from a macro perspective, there are no guarantees. As Demeester himself points out: As Bitcoin slowly approaches maturity/saturation, its price uptrend will gradually slow down, which causes parabolic trendlines to fail. In other words, a violation of the trendline above won’t be proof that the secular bull market in bitcoin is dead. Source: https://twitter.com/TuurDemeester/status/1197975763762450434 Some view the foregoing analysis as too optimistic, as even more long-term, secular trends are themselves subject to unpredictable market changes and variables. Demeester’s conclusion that the parabolic uptrend is still intact is qualified by his claim that even if the trend is broken, it doesn’t really matter (over an even longer period of time). This leads to a kind of speculative infinite regress where, no matter what the situation, it can merely be viewed as a correction leading to even greater, if more gradual, growth and gains in the future. Still, even in the current situation, with cryptos hemorrhaging billions over the past week, bitcoin achieving a $7,000+ valuation at all was merely a wild dream for many just years ago. The Mayer Multiple and Other Factors What is known as the Mayer Multiple in bitcoin is a historical price analysis system developed by self-described philosopher, entrepreneur, and investor Trace Mayer. The multiple is found by dividing the current bitcoin price by the moving price average of the previous 200 days, and its indications are used by some as a rough guide for understanding buy signals in the BTC market. At press time the multiple sits at 0.77. According to mayermultiple.info, Mayer ran simulations and “determined that in the past, the best long-term results were achieved by accumulating Bitcoin whenever the Mayer Multiple was below 2.4.” The site goes on to warn, however: “Since the simulations were based on historical data, they are purely educational and should not be the basis of any financial decision.” A look at the Mayer multiple’s 2.4 mark against the historic price of BTC. Beyond the Mayer multiple and technical analysis of charts, other factors related to price and value potential such as community, use cases, and government regulations can have effects on assets that are hardly predictable. Even painstaking and genuine efforts at technical analysis have been jokingly said to have all the reliability of a daily horoscope reading. Such analysis is nevertheless an attempt to make sense of a vast confluence of interrelated factors relevant to price movements, and the insights gained thereby are often based on logically conceived, rational methods which are used by traders as they navigate the stormy sea of crypto. Where do you think the bitcoin market is heading? 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. Image credits: Shutterstock, 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 Despite Market Turbulence, Bitcoin’s Support Lines Remain Intact appeared first on Bitcoin News. View the full article

Germany’s central bank, the Deutsche Bundesbank, has conducted a survey of banks charging negative interest rates on customer deposits. Some are charging retail customers as well as corporate clients. An independent price comparison portal shows which banks are currently charging for deposits and how much they are charging. Also read: 23 Central Banks Divulge Their Digital Currency Requirements Central Bank Survey A growing number of German banks are passing on the burden of negative interest rates to their customers as the European Central Bank (ECB) continues to maintain a negative interest rate policy (NIRP). The current ECB deposit rate is -0.5%, the lowest on record. “Many banks in Germany have introduced negative rates on deposits,” the Deutsche Bundesbank wrote in its November monthly report after conducting a survey of 220 banks at the end of September regarding their negative interest rate policies. The central bank believes that the surveyed banks constitute a representative sample of the overall sector, thereby allowing it to make qualified statements concerning the spread of negative interest rates on customer deposits in the German banking sector. The Financial Times summarized: 58% of the banks said they were levying negative rates on some corporate deposits and 23% said they were doing the same for retail depositors. Even the country’s largest banks have started charging their customers for deposits. Deutsche Bank CFO James von Moltke told analysts last month that his bank had stepped up its attempts to pass on the negative rate burden to corporate clients. “This is more difficult in the private bank business than in corporate or institutional deposits and we don’t see an ability to adjust legal terms and conditions of our accounts on a broad-based basis,” the CFO was quoted as saying. He added that his bank had also approached some retail clients with large deposits on the matter. Similarly, Commerzbank CFO Stephan Engels revealed earlier this month that his bank had already been approaching wealthy retail customers holding deposits of more than 1 million euros ($1.11 million). Which Banks Charge Negative Interest Rates While the central bank did not provide a list of banks that are charging negative interest rates, German consumer price comparison platform Verivox has published several lists of banks that fall into this category. The platform claims to have examined the policies of over 800 German banks. According to its current database, at least 21 banks have published their negative rate policies online and seven others are charging fees for money market accounts which are usually free. Further, the platform lists 20 other banks that the media have reported as charging for deposits but they have not published the information on their websites. Verivox’s list of 21 banks currently charging negative interest rates on customer deposits. News.Bitcoin.com was able to verify that a number of banks on the Verivox list do charge negative interest rates including Berliner Volksbank, Ethikbank, Skatbank, Sparda-Bank Berlin, Sparkasse Harburg-Buxtehude, Volksbank Eisenberg, and Volksbank Fürstenfeldbruck. Berliner Volksbank, one of the largest German cooperative banks, started charging -0.5% on accounts with at least 100,000 euros on Oct. 1, as news.Bitcoin.com previously reported. Following the move by the ECB to lower the key interest rate to -0.5% in September, Skatbank announced its negative interest rate policy, emphasizing: We can no longer economically accept responsibility for maintaining the ECB negative interest rate in full. So far, negative interest rates were only incurred for large-scale depositors. As a result of its actions, the ECB leaves us no other choice than to further restrict our deposit business. Another German price comparison website, Biallo, claims to have found more than 150 German financial institutions that are charging negative interest rates. Founder Horst Biallo wrote, “A biallo.de survey of just over 1,300 banks and savings banks shows that a good 150 financial institutions are now charging negative interest, 52 of which are private sector institutions.” However, his list is not publicly available. First Bank to Charge Small Savers Negative Rate Among the 21 banks on Verivox’s list is Volksbank Fürstenfeldbruck, a cooperative bank located west of Munich. The bank has recently been in the news for being the first German bank to pass on the cost of negative interest rates to even small savers. The bank explained that it will collect a custody fee of -0.5% on instant access savings accounts, the Financial Times detailed. “New clients who also do other business with the bank, such as real estate financing or pension planning, will be exempt from the charges.” The bank’s website shows that accounts opened on Oct. 1 or later with deposits of 0.01 euro or more will be charged the fee. Inundated with inquiries about its new policy following media reports, the bank put up an explanation on its website, emphasizing that only new clients are affected. Verivox CEO Oliver Maier was quoted by the Financial Times on Tuesday as saying: Negative interest rates have now reached the average saver. What do you think of a growing number of German banks passing on the burden of negative interest rates to their customers? 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, Verivox, and Volksbank Fürstenfeldbruck. 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 Survey: 58% of German Banks Charge Negative Interest Rates appeared first on Bitcoin News. View the full article

In February 2018, Grayscale Investments, the sponsor of the Bitcoin Trust (OTCQX: GBTC) announced the Grayscale Digital Large Cap Fund, an investment vehicle that captures a basket of the top digital assets within the cryptoconomy. A year later on November 22, the firm revealed the diversified crypto investment product is now available to the public as trading commences with publicly-quoted shares under the symbol: GDLCF. Also Read: Bakkt’s Bitcoin Futures Shatters Records Amid Spot Market Turmoil Grayscale Reveals Diversified Crypto Investment Product Available for Public Trading Last year, Grayscale Investments announced the launch of the diversified GDLCF and four single-asset cryptocurrency trusts for XRP, BCH, LTC, and ETH. Grayscale is well known for launching the first publicly traded BTC investment vehicle (OTC:GBTC) in the U.S. in 2013. Now according to a recent blog post, Grayscale says that GDLCF will be available to trade using over-the-counter (OTC) platform OTCQX Best Market. “GDLCF is the first publicly traded security in the U.S. deriving value from a diverse selection of digital currencies,” Grayscale said on Friday. This will give investors the ability to purchase and sell GDLCF using their investments accounts similarly to traditional unregistered securities. “You can soon gain exposure to a basket of large-cap digital currencies without the challenges of buying, storing, and safekeeping digital currencies directly,” the firm stressed. Grayscale’s Director of Investments and Research, Matthew Beck, emphasized during the announcement that “digital assets represent a new and important alternative source of return for investors.” “[Cryptocurrencies’] unique market opportunities, use cases, and risk exposures can also enhance diversification,” Beck further suggested. “A well-constructed, diversified investment product like Grayscale Digital Large Cap Fund is an important tool for investors seeking to build more balanced portfolios with higher risk-adjusted returns.” Grayscale Digital Large Cap Fund Receives FINRA Approval for Public Quotation The GDLCF launch on OTCQX Best Market follows Grayscale registering GBTC using a Form 10 Registration Statement with the U.S. Securities and Exchange Commission (SEC). The filing would designate the GBTC trust as an SEC-approved reporting company and register its shares. If approved by the SEC, then Grayscale’s Bitcoin Trust could be the first digital currency vehicle to be greenlighted by the SEC with a legal reporting status. The latest Grayscale blog post also noted that GDLCF received FINRA approval for public quotation alongside DTC eligibility. DTC issuance grants can take up to four weeks and it’s possible Grayscale’s GDLCF will be able to be deposited through DTC, the largest securities depository in the world. Grayscale highlights that as of October 31, 2019, the components of the large-cap fund consist of a basket of 80.6% BTC, 9.2% ETH, 6% XRP, 2.5% BCH, and 1.7% LTC. “[GDLCF is an] open-ended fund that provides market-cap-weighted exposure to the upper 70% of the digital currency asset class,” Grayscale explains. The basket fund will be the company’s fourth publicly quoted investment product following GBTC, the Ethereum Trust (OTCQX: ETHE), and the Ethereum Classic Trust (OTCQX: ETCG). Investors will still have to wait for the public quotation approval for the Bitcoin Cash Investment Trust, Litecoin Investment Trust, and XRP Investment Trust. “A well constructed, diversified investment product like Grayscale Digital Large Cap Fund is an important tool for investors seeking to build more balanced portfolios with higher risk-adjusted returns,” Grayscale’s Beck concluded on Friday. What do you think about Grayscale’s Digital Large Cap Fund (GDLCF)? Let us know what you think in the comments below. Image credits: Shutterstock, Grayscale Investments, 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 Grayscale Commences Diversified Large Cap Fund Trading appeared first on Bitcoin News. View the full article

If you are considering entering the crypto universe or if you’ve only recently made your first investment, you might still be exploring the benefits of bitcoin as opposed to your credit card, online bank account or digital wallet you are used to. In an abstract sense, cryptocurrencies represent financial evolution which manifests itself in unique and tangible ways compared to fiat money. Also read: Here Are Some Fun Things to Do With Bitcoin Cash Fast and Easy Payments If there’s one thing cryptocurrency deserves credit for, besides that it makes you a true owner of your money, it’s the ease it brings to electronic payments and transfers. Bitcoin has been around for over a decade now and it is not a tool only for the tech savvy anymore. A myriad of crypto platforms have made it simple to keep and send digital coins. It takes just a few steps to purchase your first cryptos and start spending. All you need to have initially is a bitcoin wallet and plenty of free options are available. For beginners, a software wallet is probably the best choice and you can download and install a number of mobile applications or desktop programs. If you don’t plan to spend coins on a daily basis and in case you need a higher level of security for your crypto holdings, you’ll be better off with a hardware wallet – getting one is easy too. With cryptocurrencies, sending money is quick, easy and inexpensive. You just need to have the recipient’s address, which you can either copy and paste in your wallet, making sure the first and the last few digits are the same, or obtain it through a simple QR scan as most wallet apps allow you to do so. After entering an amount, hitting the ‘Send’ button initiates an irreversible transaction; it’s a good idea to set up a spending PIN on your wallet as well. Low Cost Transactions Generally, crypto transactions are fast and cheap but the speed and the cost depend on various factors such as the number of transactions a network has to process at a given time and the fee you are willing to pay to the miners. Bear in mind that not all cryptocurrencies are made equal, so to speak. In the case with coins such as bitcoin cash (BCH), transfers are almost instant and often cost less than a penny. That’s regardless of the amount sent or distance covered. With crypto, payments, transactions, and international transfers are faster, easier and safer and you don’t have to worry about progressive fees or bank holidays. People sending remittances home and companies working with remote contractors abroad often take advantage of that. Besides, bitcoin has another useful feature – you can always check if and when the money has arrived. You can do so with a block explorer. Small businesses should also appreciate the lack of chargebacks with crypto transactions, in contrast with traditional payment methods. Profitable Saving, Accessible Credit If you join the crypto space in search of a better store of value than what the fiat system offers for your money, it’s worth noting that by design cryptocurrencies don’t suffer from significant inflation. Digital assets based on the original principles of Bitcoin have a limited supply, setting them apart from fiat currencies, which can be constantly inflated when governments create more money through quantitative easing or by manipulating benchmark interest rates. Historically, long term investments in many major cryptos have appreciated. Using peer-to-peer digital cash does not require involvement of third parties, which is another strong point. Everyone is free to transact directly with anybody else. But if you need specialized financial services, a thriving ecosystem growing around cryptocurrencies can provide you with such. Platforms like Cred, for instance, let you earn up to 10% interest on your BTC and BCH holdings, much more than any regular savings account these days, or get a sub-10% APR crypto-backed loan without the credit checks and hidden fees employed by banks and credit card companies. What other advantages of cryptocurrencies would you add to this list? Let us know in the comments section below. 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 A Few Benefits for Bitcoin Beginners to Appreciate appeared first on Bitcoin News. View the full article

P2P trading site Localethereum has rebranded to Localcryptos, allowing users to buy and sell both ETH and BTC without KYC. The platform has been providing peer to peer trading services for ethereum since 2017, but in a surprise announcement this week, the website revealed its new home, localcryptos.com and rolled out its P2P trading service and fiat onramp to bitcoin users. Visitors to Localethereum will now find themselves redirected to the new multi-currency site, in a move which will give rival P2P exchange Localbitcoins (LBC) pause for thought. Also read: Traders Bemoan New Localbitcoins Identity Requirements Bitcoin Traders Can Avoid KYC On Former Ethereum-Only Market Localcryptos is painting a target on the back of Localbitcoins, placing itself in direct competition not only by offering BTC trades, but by making it possible for users to import their reputation score from one site to the other. The platform announced: “When you join LocalCryptos, you can bring your profile reputation from LocalBitcoins. That way, you can keep your hard-earned reputation — you don’t need to start over.” By making it as simple as possible for LBC users to carry over their positive reputation, Localcryptos has fired the first shots in a new battlefront for the P2P exchange marketplace. Localcryptos also elaborated on what it considers to be a number of issues with the long running BTC onramp, of which security was at the top of the list. Localcryptos did not hold back on its criticisms of the longstanding exchange, writing: “LocalBitcoins looks the same today as it did in 2012, and there’s plenty wrong with it. Platforms like LocalBitcoins are centralized, custodial, and a far cry from private.” By comparison, Localcryptos is a non-custodial service where users retain their private keys, an advantage which will be welcomed by traders who are well aware of the fairly regular hacks and security breaches that centralized services fall foul of. The system in place on Localcryptos is similar to P2P bitcoin cash marketplace local.Bitcoin.com which launched earlier this year. The escrow feature on Localcryptos is noncustodial, using ethereum smart contracts for ETH trades and P2WSH for bitcoin, so whatever crypto you’re trading, the funds are never held on a centralized server at any point. For anyone interested in exactly how the decentralized bitcoin escrow service is achieved, Localcryptos goes into the nuts and bolts here. Bitcoin and Beyond As well as rolling out its service to bitcoiners, Localcryptos intends to extend its P2P trading service to other ERC20 tokens over time, and eventually plans to tackle non-fungible ERC721 tokens as well. P2P exchanges have often labored with low trade volumes and liquidity, an issue which news.Bitcoin.com recently covered in a report on decentralized exchange Bisq. If Localcryptos spreads itself too thin across too many tokens, there’s the potential for liquidity issues to surface. At present, however, with 100,000 users worldwide and 1,000 active users on any given day completing 200 trades, Localcryptos looks set to create another valuable decentralized gateway for BTC with minimal or no KYC. Coupled with the BCH marketplace available at local.Bitcoin.com, and bitcoiners bemoaning the loss of LBC have new platforms to turn to at last. Local.Bitcoin.com What are your thoughts on Localcryptos.com? Let us know in the comments section below. Disclaimer: This article is for informational purposes only. It is not an offer, solicitation or a recommendation, endorsement, or sponsorship of any products, websites, software, services, or companies mentioned. 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 Localethereum Becomes Localcryptos and Adds BTC Trading appeared first on Bitcoin News. View the full article

Bakkt’s bitcoin core (BTC) futures product saw another all-time high as the spot market price of BTC plummeted under $7,000 on Friday morning, Nov. 22. Bakkt saw 2,728 contracts traded ($20 million) and $1.75 million in open interest outpacing the record of 1,179 contracts on Oct. 25. Also Read: Market Update: Cryptos Shed Billions in Rapid Sell-Off After BTC Spot Market Prices Shed Billions, Bakkt’s BTC Futures Volumes Reach Another All-Time High Ever since Bakkt’s physically-settled bitcoin futures contracts launched on Sept. 22, 2019, the product has been slowly gathering steady interest. Bakkt’s BTC futures started off slow and paled in comparison to top exchanges with leverage like Bitmex. Then on Oct. 10, BTC slid from $8,600 to a low of $8,200 across international spot markets. Coincidentally, Bakkt’s futures saw a sudden spike and volumes jumped 796% during the 24-hour period. After the exchanges’ all-time high (ATH), Bakkt’s market seemed calm until Oct. 23, when BTC spot prices dropped from the $8,200 foundational support to $7,365 across global exchanges. Again, Bakkt’s trade volumes lifted significantly after the spot market downturn and Bakkt volumes saw another ATH with 1,179 contracts. On Oct. 25, following the ATH, Bakkt CEO Kelly Loeffler revealed the firm will offer options on bitcoin futures in December. It's only 2:05PM ET and we’ve already traded 2,367 contracts today, beating our previous record of 1,756 — Bakkt (@Bakkt) November 22, 2019 After the last ATH, Bakkt BTC futures volumes have been steadily gaining stronger interest. On Nov. 19, BTC spot prices were hovering around $8,300 but the next day the price per coin dropped to $8,000. Since then BTC has plummeted below the $7k zone and the BTC spot price is currently $7,200. After the Oct. 25 ATH, Bakkt averaged just above 1,000 contracts daily but after the BTC price dump, Bakkt touched an all-time high again with 2,728 contracts traded ($20 million). On Nov. 22, Bakkt’s BTC futures also saw $1.75 million in open interest and increased by 29%. Prior to all the action on Bakkt’s exchange and global spot markets, BTC short contracts saw a spike in volume as well on exchanges that offer leverage. Because Bakkt is seeing a lot more interest, speculators believe it is adding a whole new type of price discovery to crypto markets. Physically-Settled BTC Futures: A Critical Element to New Price Discovery With Bakkt, the buying and selling of BTC is fully collateralized, which could add a much bigger element to the market’s fluctuations. In contrast to the Chicago exchange CME Group’s cash-settled BTC contracts, Bakkt buyers obtain real BTC after a contract expires. With CME’s contracts, market participants pay or receive the difference in U.S. dollars after an expiry. Cash-settled BTC futures contracts have been around since December 2017 and have had little influence on the spot price of BTC. However, with Bakkt’s physically-settled BTC futures, BTC must be delivered on the second business day after the contract’s expiry. This means that the Bakkt warehouse creates actual demand for real BTC on exchanges and it will be required to have enough collateralization to meet the rising demand at all times. In the midst of fresh demand for Bakkt’s physically-settled BTC product, the exchange also announced a cash-settled bitcoin futures product slated to launch next month. Bakkt’s new cash-settled BTC offering will be available on the Intercontinental Exchange (ICE) Singapore. The President and COO of ICE Futures and Clear Singapore, Lucas Schmeddes, believes the new crypto product will give Asian investors “exposure in bitcoin markets.” BTC/USD shorts on Bitfinex, Nov. 23, 2019. Bakkt will have to compete with Asian exchanges that see the highest bitcoin derivatives volumes worldwide by offering deep leverage and perpetual contracts. Exchanges like Bitmex, Bitflyer, Bitfinex, and Okex eclipse Bakkt’s regulated futures products by a long shot. For instance, in a mere 24-hour period on June 26, Bitmex’s daily volume surged to over $11 billion with $1 billion in open interest. What do you think about Bakkt’s BTC futures volumes breaking records again? Do you think the physically-settled aspect of Bakkt’s product influences the price more? Let us know what you think about this subject in the comments section below. Image credits: Shutterstock, Bakkt, Bakkt Volume Bot, Wiki Commons, 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 Bakkt’s Bitcoin Futures Shatters Records Amid Spot Market Turmoil appeared first on Bitcoin News. View the full article

With the Supreme Court of India postponing the crypto hearing, the Indian crypto community is calling for better protection when trading on P2P platforms. Several top crypto exchanges in the country have shared their processes and policies they have implemented to protect their P2P platform users. Also read: Indian Supreme Court Wraps up Crypto Hearing for the Year A Standard KYC Protocol With the Indian supreme court postponing hearing the arguments against the banking restriction by the central bank, crypto traders in India will have to continue using peer-to-peer (P2P) trading platforms to buy and sell cryptocurrencies for INR. In addition, the government has decided not to introduce the bill to ban cryptocurrencies in the Winter session of parliament. Since the Reserve Bank of India (RBI) banned financial institutions from providing services to anyone dealing in cryptocurrencies, a number of local crypto exchanges began offering P2P trading to their users. However, according to Indian news analysis platform Crypto Kanoon, there are problems some people are facing when using these platforms. “Many users of P2P exchanges are facing bank account seizure & FIRs,” Crypto Kanoon explained last week. “Money they received for selling crypto was sent from hacked bank accounts … Enquiry reveals that the culprits often use fake KYC docs.” “Hackers are easily able to create accounts on your exchanges either with fake ID’s or through identity theft,” Crypto Kanoon alleged, directing questions at local crypto exchanges concerning their anti-money laundering (AML), anti-terrorism funding (ATF) and know your customer (KYC) policies. Crypto Kanoon further wrote: Do you think that the time has arrived when all the virtual assets services providers in India need to join hands together and design a standard protocol for KYC, AML & ATF? Especially when the draft bill will take time to get introduced in Loksabha. “Don’t you think video KYC will help in controlling this growing menace?” the exchanges were also asked. Crypto Kanoon also set up a poll on Twitter asking the community whether they think P2P exchanges need to adopt stricter KYC process. In total, 788 votes were gathered and 84% said yes. Crypto Exchanges Respond A number of cryptocurrency exchanges responded to Crypto Kanoon’s questions. The CEO of local crypto exchange Pocketbits, Sohail Merchant, explained that his exchange has “already deployed a customized video KYC solution since May for P2P trades.” He added, “You can be certain that the user you will be transacting with is thoroughly verified and not a scammer.” Noting that video KYC is mandatory for all INR-based transactions, he further clarified, “We do have certain other comprehensive checks to verify authenticity too.” “For us, user safety is always number 1 priority,” Wazirx CEO Nischal Shetty emphasized, adding that his exchange has “stringent KYC processes.” Regarding the aforementioned problems, he shared: Our data does not show this to be a large problem. Isolated cases may be. Nevertheless, we’re working on solving these isolated issues and will announce measures at the right time. Responding to the question of establishing a standard protocol for all exchanges, Shetty agreed that it is “Definitely a good idea if everyone agrees to get together and do it,” but raised the issue of enforceability of such standards. His exchange was recently acquired by Binance. Bitbns CEO Gaurav Dahake said his exchange would consider video KYC but for now users have to submit proof of identity, address, and a “Selfie with today’s date, Bitbns written, and signature.” He added, “we run it through a couple of checks on the images and post that a team manually verifies it.” Coindcx CEO Sumit Gupta was adamant that his team takes security very seriously. “For KYC verification, we already have a system in place, where a user has to upload a selfie with PAN card and a list containing text (Coindcx, current date, and signature),” he explained. “At support, we verify the photo, user details, etc.” ‘Remarks’ Function Helps Avoid Bank Account Closure Indian crypto traders are also facing the problem of banks closing their accounts if they are found to engage in any crypto activities, as news.Bitcoin.com previously reported. Banks look for clues including in the payment “remarks” box for any crypto-related keywords such as the name of crypto exchanges. To combat this problem, Wazirx changed its payment remarks function on Sept. 25 after receiving multiple requests from its users. “This is the most wanted feature for Wazirx P2P,” the exchange wrote, adding that payment remarks are important for two key reasons. Firstly, it helps sellers confirm transactions faster, especially if they are dealing with multiple buyers. Secondly, it ensures that buyers do not enter keywords relating to cryptocurrency and get into trouble with their banks. What more do you think Indian crypto exchanges should do to help protect P2P users? 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. 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 What Indian Crypto Exchanges Are Doing to Protect P2P Users appeared first on Bitcoin News. View the full article

As digital assets have grown valuable over the last decade, hardware wallets have become a mainstay and there’s now a variety of choices on the market. However, people still worry about their devices being tampered with during the shipping process and the firm Shift Cryptosecurity AG wants to erase the anxiety tied to these types of attacks. In order to curb vulnerabilities in shipping hardware wallets, Shift created a tamper-evident packaging product called Bitboxtep. Also Read: A Review of the Swiss-Made Digital Bitbox Hardware Wallet Bitboxtep: High-Level Tamper-Evident Packaging Cryptocurrency hardware wallets have been very popular during the last few years and many digital currency proponents use them to secure their assets. Although when buying a hardware wallet, some people worry about the delivery process and attacks like a postal employee opening the device. Since the introduction of hardware wallets, the industry has seen different tamper-evident methods like tamper-resistant holographic tape and other schemes used to protect the device from being accessed before reaching the owner. Now Shift Cryptosecurity AG has designed a new method called Bitboxtep which aims to eliminate attacks during the shipping process. Shift is the creator of Digital Bitbox, a minimalist hardware wallet. News.Bitcoin.com reviewed the first Bitbox product in February 2018. Digital Bitbox has a few privacy features other wallets don’t have like “plausible identity” using hidden wallets. Now the company has initiated the alpha testing of Bitboxtep or Tep so people can experiment with the firm’s next-generation tamper-evident packaging product. Shift has published a demonstration video of the new Tep packaging as well as specifications of how the product works. “Bitboxtep is a security packaging that significantly raises the cost of tampering during shipping or storage — Our solution proposes a temporarily locked fingerprint consisting of spherical particles,” Shift Cryptosecurity AG’s documentation states. “The negative pressure achieved by vacuum sealing creates an elaborate design in a transparent vacuum bag. When the vacuum bag is opened, the spherical particles mix.” The product specifications further explain: This makes it extremely difficult to rearrange into the original design. You compare the reference image fingerprint taken prior to shipment with the received packaging. Currently, you use your eye to verify that the pattern is unchanged. Eventually, a mobile phone supported computer vision app will verify the images to further enhance accuracy. Tamper Deterrent Shift has started accepting applications for alpha Tep testers and people interested in this new tamper-evident packaging can apply. Essentially when a user gets the unit, they need to scan the QR code to access the reference image or visit the company’s serial code portal to enter the 8-digit serial code in the text mask. Then the user needs to shake the package to make sure the particles are locked. Shift noted that a few of the particles within clusters may move freely in a small range. However, after comparing the temporarily locked fingerprints of the reference image and the packaging, the two should match. If everything checks out, then the user can cut the vacuum bag open and remove the particle pouch. From here, the product’s packaging particles should be in a loose state, but if they don’t Shift says to contact them as soon as possible. “To verify if there is a difference between your fingerprint and the reference image, we recommend to go from high level to details,” Shift’s Bitboxtep document suggests. Shift’s specifications also note that the company has prototyped a variety of different designs and they wanted to make sure the particles would lock and ensure they become loose when the seal is broken. “We use industrial-grade vacuum sealing equipment to make reproducible test sets — We’ve tested our prototypes to work in a temperature range between +40°C and -20°C,” Shift claims. “We aim for both more intense sub -20°C tests soon and upper-temperature limitations by using high temperature resistant plastic casings.” The company stressed: We are currently able to lock over 95% of the particles. A handful of particles in tight cluster situations tend to move within a small area, which we consider acceptable. We’re constantly improving our physical prototypes to get as close to 100% as possible. Eventually, a mix of particles with different colors (RGB) will enable even higher entropy. The current methods used today don’t really compare to the amount of high-level security being used for Bitboxtep. In comparison, the traditional tamper-evident tape is used by most hardware wallets. Some people might find the Bitboxtep security a bit extreme, but if a person has $50,000, $100,000 or more in BTC or another crypto, then they might feel a lot more comfortable knowing their device hasn’t been tampered with during the shipping process. On social media and crypto forums, digital currency proponents welcomed the new concept from the Switzerland-based firm. “That’s really cool, I like it — As bitcoin becomes worth more, it will be worth it for thieves to invest the money to manufacture their own tamper-proof materials and boxes, so after they break into a shipment they can replace it,” a crypto user wrote on Reddit about the alpha Bitboxtep packaging. “This is a pretty good deterrent to that,” he added. What do you think about Shift Cryptosecurity AG’s new tamper-evident packaging product called Bitboxtep? 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, solicitation or a recommendation, endorsement, or sponsorship of any products, websites, software, services, or companies mentioned. 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, and Shift Cryptosecurity AG. 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 Shift Cryptosecurity Reveals New Tamper-Evident Packaging appeared first on Bitcoin News. View the full article

National tax agencies have recently made it clear that the long arms of the law will be wielded to ensure bitcoiners pay the appropriate tax on their earnings. Motivated by surging interest in crypto, authorities are cracking the whip and instilling fear in those who have, until now, dismissed the notion that they might be pursued for tax on their trading. Also read: IRS Dispels Crypto Tax Confusion A Taxonomy of Crypto Tax Requirements Quantifying gains and losses on cryptocurrency purchases, and determining which transactions are liable to tax (and which kind of tax), has long been a challenge for individuals operating in this space. Compounded their dilemma was a complete lack of direction from authorities, which have been slow to develop an understanding of the cryptosphere and tighten their regulations accordingly. In light of recently published guidance, and the spate of ensuing news coverage, however, anyone found to be willfully dodging tax cannot reasonably claim ignorance of their obligations. Which isn’t to say that managing your crypto tax affairs is now a walk in the park – far from it. The complexities of hard forks, token sales, airdrops, mining and the heterogeneous nature of exchanges (property for crypto, BTC for ETH etc) throw up no end of questions, and every country has its own rules. Figuring out the tax due on your crypto transactions over the course of a year, particularly if you are a busy investor, can be a bit like trying to solve a riddle wrapped inside an enigma, concealed within a conundrum. Maintain Accurate Transaction Records To summarize: if you have bought, sold, sent or received digital currency in recent years, you should have been maintaining comprehensive records of your activity. It’s impossible to know just what percentage of cryptocurrency holders have dotted their i’s and crossed their t’s, but given that the IRS recently mailed over 10,000 letters warning of stiff penalties for those who fail to pay tax on their transactions, the suspicion is: not all. Not even close. And blatant evasion isn’t the only reason for that. Another is that, historically speaking, many accountants have been unwilling to familiarize themselves with crypto-accounting directives. That’s why, in the last few years, an entirely new subset of accountancy firms have entered the market, targeting the crypto niche. Specialist software such as cryptocurrency tax calculators and automated accounting programs have also appeared, promising to help you report gains and losses more accurately. While working out tax due on crypto investments is tricky, record-keeping itself isn’t. It’s mainly laborious and punishingly dull – a matter of faithfully recording the date and time each crypto asset is acquired, its market value at the time, the date and time each asset is sold, exchanged or otherwise disposed of, the market value of each unit when it is sold, exchanged or disposed of, and the value received for each unit. Better start populating a spreadsheet. As with any transactional enterprise, consistent, accurate record-keeping will stand you in good stead when it’s time to file your tax return. Don’t leave it until the last minute. How Crypto Tax Software Can Simplify the Process Traditional accounting systems simply aren’t equipped to deal with virtual currencies, which are famously volatile and differ in key ways from fiat money. Maintaining accurate accounts, therefore, requires a lot of legwork if you assume the burden yourself. As mentioned, hiring a specialist senior tax accountant or utilizing crypto tax software can help you navigate the daunting landscape and satisfy the circling wolves. Most tracking programs allow you to import CSV files of your trades direct from exchanges, and review real-time dashboards so you can track your obligations from month to month. Accountants, meanwhile, can negotiate with tax agencies on your behalf to resolve any queries or disputes, and their experience may prove invaluable if your obligations encompass hundreds of trades across multiple platforms, involving disparate tokens. Even contemplating such reporting liabilities is enough to induce a headache. With tax authorities now looking to work with exchanges to identify those who have bought and sold crypto, it’s time to start paying the piper if you haven’t already. Every single trade you make in the cryptosphere is likely to impact tax calculations in some way. Speak to a tax professional, invest in tracking and management software, or – providing your trading history is relatively straightforward – do it yourself. Godspeed. What crypto tax tools do you recommend? 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 How to Navigate the Minefield of Cryptocurrency Taxation appeared first on Bitcoin News. View the full article

Luke Vanna and the Bitcoin.com car are competing for top honors in the Australian Toyota 86 Racing Series. Sports partnerships like this can introduce cryptocurrency to new audiences as well as attract more businesses to join the ranks of the many merchants already accepting bitcoin cash across the country. Also Read: Bitcoin.com to Launch $200 Million BCH Ecosystem Investment Fund Bitcoin.com in Australian Toyota 86 Racing Series This weekend, Luke Vanna will be competing in a car exclusively branded with Bitcoin.com’s logo and colors in the final round of the Australian Toyota 86 Racing Series at Newport. The Australian racer currently sits fifth in the championship rankings, and could potentially move into the top three this weekend with 300 points up for grabs. He continually places high in Australian racing ranks, and maintains a steady social media following. These factors present him as a great ambassador for Bitcoin.com’s effort to advertise to new markets. Over the course of 2019, Luke has been helping build the Bitcoin.com brand across Australia at various race events on the Gold Coast and in Melbourne. He has participated in on the ground promotions where he meets people at public events, and promotes Bitcoin.com through his 16,000+ Instagram fanbase. Additionally, the racer has recently secured the services of the Norwell motorplex to offer attendees the chance to win a prize of a day’s training session at the world class motorway, with Luke being the trainer for the session. “What a privilege it is to be partnered with a global brand like Bitcoin.com. I am looking forward to helping reach the brand across the millions of motorsport race fans here in Australia and throughout Asia,” said Luke Vanna. The Australian racer has organized events where he interacts with racing fans and introduces them to the world of crypto. At these events, Luke helps fans install the Bitcoin.com Wallet app, and shows them how to add bitcoin cash and begin using it. He has also worked with Bitcoin.com marketing officials to promote BCH to the vendors at the track, encouraging them to accept the cryptocurrency as payment. He’s helped introduce the company to hundreds of thousands of television viewers who watched him during the races with his Bitcoin.com branded car. Bitcoin Cash Is Skyrocketing in the Land Down Under Australia is one of the top global hotspots in terms of bitcoin cash adoption. A recent report showed that the number of BCH Australian retail transactions throughout the months of September and October 2019 outpaced every other digital asset by a wide margin. One reason for that is the high concentration of businesses accepting bitcoin cash payments compared to most places around the world. Another cause for the successful BCH adoption rate is the strong and active local community, as evident by hosting what was probably the world’s biggest Bitcoin Cash conference yet in Townsville, North Queensland in September. “Bitcoin.com is excited to expand our marketing in Australia in this partnership with Luke Vanna. Seeing the interest among new customers we are looking to innovative means to reach them, and meeting them wherever they are,” explained Bitcoin.com CEO Stefan Rust. “Bitcoin cash adoption is skyrocketing in Australia, with 92% of all cryptocurrency retail transactions. Bitcoin.com is committed to expanding the vendor reach for bitcoin cash, and partnerships like this one with athletes and racers in non-traditional locations will only attract new merchants to join the existing 200 BCH accepting merchants across Australia, not to mention users looking to spend their BCH with those merchants seeing value in this trustworthy, reputable payment source.” What do do you think about Bitcoin.com’s endorsement of an Australian racing car driver? Share your thoughts in the comments section below. Images courtesy of Rhys Vandersyde – Insyde Media. 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 Bitcoin.com Accelerates Cryptocurrency Adoption With Racer Endorsement appeared first on Bitcoin News. View the full article

For months on end, Hong Kong has been the scene of intensive confrontation between pro-democracy activists and its Beijing-supported government. It now seems the financial establishment has taken a side in this conflict. Banking giant HSBC has decided to close an account used to support the protest movement in the special administrative region of China. Also read: Economic Turmoil in Hong Kong Escalates as Colonial-Era Law Is Imposed Account Collecting Donations for Demonstrators Suspended The corporate account was closed earlier this week after HSBC found that the actual activities it was being used for did not match the business purposes stated by the client, The Prime Management Service Ltd. According to local press, the suspension comes after the bank asked the account holder last month to withdraw the balance within 30 days. The account has been collecting donations for a non-profit organization called Spark Alliance HK. It spent the money to cover legal and medical expenses and provide other aid to anti-government protesters, the South China Morning Post reported. Quoting a banking source, the Alibaba Group-owned newspaper detailed that fundraising was not declared as part of the bank account’s intended use. “This client only stated that the account was for a commercial purpose. But in reality it is being used as a platform for raising funds. This doesn’t match the account’s stated purpose,” the anonymous source explained. Large amounts of money have been passing through it on a daily basis and the bank may have had money-laundering concerns, the source said. Declining to comment on the specific case, an HSBC spokesperson nevertheless noted that the bank regularly reviews its customers’ accounts and added that “If we spot activity differing from the stated purpose of the account, or missing information, we will proactively review all activity, which can also result in account closure.” The Hong Kong Monetary Authority, the region’s de facto central bank, gave its take on the closure too. Complying with international standards, the institution stressed, commercial banks are required to assess risk and take appropriate action regarding account activity. That, according to the HKMA, should ensure the consistency of their stated purpose and source of funding. Protests Leader Calls on Banking Giant to Reopen Account Joshua Wong, leader of the pro-democracy demonstrations in Hong Kong, called on HSBC to reopen the bank account. He took to social media to criticize the financial institution based in Hong Kong’s former colonial power, Britain, for closing the account that was used to support the protest movement against the region’s government backed by the communist regime of the People’s Republic. On Wednesday Wong tweeted: It is only until recently that HSBC decided to investigate & close the account, especially following Xi ’s threats of “crushing bodies and shattering bones” of protesters in the city last month. I hope HSBC can reconsider as it is now effectively putting freedom fighters at risk. — Joshua Wong 黃之鋒 😷 (@joshuawongcf) November 20, 2019 In another comment, Joshua Wong noted that “It is only until recently that HSBC decided to investigate & close the account, especially following Xi’s threats of ‘crushing bodies and shattering bones’ of protesters in the city last month.” The activist, who has so far been arrested twice for his role in the demonstrations, expressed hope that the bank could reconsider its decision “as it is now effectively putting freedom fighters at risk.” HSBC’s action comes after the General Secretary of the Communist Party and President of China, Xi Jinping, warned in October that efforts to divide his country “will end in crushed bodies and shattered bones.” His statement sparked new fears of an imminent crackdown on the protests by Hong Kong authorities with support from the government in Beijing. The Hong Kong protests were triggered earlier this year by the introduction of a draft law that would allow the local government to detain and extradite people wanted in territories with which Hong Kong does not have extradition agreements. It became clear that these jurisdictions would include Taiwan and also mainland China. The Fugitive Offenders amendment bill has since been withdrawn but the demonstrations have continued, escalating into violent clashes with the Hong Kong police. The offices of banks, businesses and other institutions with perceived links to the People’s Republic have been attacked. Measures taken against the citizens’ protest movement, including the recent bank account closure, have highlighted the importance of decentralized cryptocurrencies. What’s your opinion about HSBC closing a bank account associated with the Honk Kong pro-democracy protests? Share your thoughts on the subject in the comments section below. 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 HSBC Closes Account Used to Support Hong Kong Protesters appeared first on Bitcoin News. View the full article

Digital currency prices have been dropping in value this week and on November 21 the entire cryptoconomy fell below $200 billion. At the moment, most cryptocurrencies are down between 4-12% in the last 24 hours and 10-25% over the last seven days. Traders are currently pondering what will happen next as prices haven’t been this low since May. Also Read: The Bank of Google Wants Your Spending Data Crypto Markets Swim in a Sea of Red Crypto market prices have dropped substantially this week with much of the losses occuring in the last 48 hours. At the time of writing, the entire cryptoconomy is hovering around $195 billion after dropping below the $200 billion mark this morning. Global trade volume is flat with only $23.4 billion in crypto swaps in a 24-hour period. Right now BTC is swapping for $7,075 per coin with an overall market valuation of around $127 billion or 66% dominance. Most of the BTC trades today are with tether (USDT) which captures 75% of all action. This is followed by USD (9.53%), JPY (6.97%), EUR (2.39%), and KRW (1.34%) pairs against BTC. Over the course of the last 24 hours, BTC is down 10.2% and for the week it’s lost 18.2%. Behind BTC is ETH, which has lost 13% today and 20% for the week, trading at $146 per coin. XRP has seen little damage this week as each coin is trading for $0.23 and XRP markets are down 5% today. Lastly, tether (USDT) has bumped BCH out of fourth position because it commands more than two thirds of the cryptoconomy’s trades. Tether has a $4 billion dollar market valuation and $7.9 billion worth of trades today. Bitcoin Cash (BCH) Market Action Bitcoin Cash (BCH) markets have seen significant losses in the last 48 hours as well, as the crypto holds the fifth largest market share. At $203 per coin, BCH is down 13% today and 25% for the last seven days. BCH has a market valuation of $3.69 billion and $1 billion in global trade volume. The top trading pair with BCH today is tether (USDT) with more than 69% of all trades. This is followed by BTC (14.99%), USD (10.82%), KRW (2.25%), ETH (0.66%), EUR (0.58%), and JPY (0.43%). BCH has lost all of the gains it gathered during the last week of September and prices haven’t been this low in six months. At press time, BCH is the sixth most traded coin below EOS and above XRP. All Eyes on China On November 21, The Block published a story that said “sources” told the news outlet that Binance’s Shanghai office was raided by the police. According to the report, roughly 50-100 employees worked at the Shanghai office. Many people attributed this news to cryptocurrency prices sliding southbound on Thursday. You can argue about the semantics of an office, who leased it, for how long, if it is empty, etc. But you can't argue about the semantics of a "police raid" that did NOT happen. Without the fake "police raid", there is no article. Pure FUD! https://t.co/o6xXwrU5WK — CZ Binance (@cz_binance) November 22, 2019 However, not too long after the report, the Malta-based exchange Binance denied the police raid and claimed they never had an office in Shanghai. Now Twitter is seeing an argument between Binance CEO Changpeng Zhao (CZ) and team members of the crypto publication over the legitimacy of the article. Following the report, the finance bureau of Shenzhen municipality published findings on 39 unidentified crypto exchanges that will be inspected for illegal activities. BTC Shaves Off Months of Gains This week, Fxpro senior financial analyst Alex Kuptsikevich explained in a note to investors that “[BTC] has almost entirely offset the growth.” BTC managed to capture some fresh FOMO from China, Kuptsikevich said, but that fever is now gone. “Bitcoin has lost more than 5% in the last 24 hours and trades around $7,500 and the decline below the 200-day moving average opens the way to $5K, where the previous consolidation area is located,” Kuptsikevich emphasized. “The crypto community suggests that the fall may be due to the capitulation of the miners, which is considered an extremely bearish signal for the benchmark coin. It means that miners have to sell their assets to continue working or even have to exit the market. The last time Hash Ribbons indicator was inverted Bitcoin started the process of declining from $6K to $3K.” Kuptsikevich’s note to investors further stressed: The good news is that at least for a while the sale has stopped. If there are no new selling impulses for some time, buyers may start looking at the asset. It is worth mentioning that the benchmark cryptocurrency is in a tight ‘institutional ring.’ These investors are not interested in the technical prospects of the asset, just in price fluctuations, whose triggers will differ. Still, they will have one thing in common: to make the majority move in one direction while opening the positions in the opposite. So it won’t be boring. Optimism and Hopium Still Thrive Despite the strong price downturn, cryptocurrency influencers and heavyweights believe digital asset prices will climb higher. Binance CEO Changpeng Zhao recently explained: “If you look at the fundamental technology and a longer-term view, across a five year or ten year horizon, we’re very confident the industry will get bigger and when the industry gets bigger the prices will go higher — If you look at the short term view, bitcoin and cryptocurrency is a smaller market cap instrument so there will be higher volatility.” Binance CEO Changpeng Zhao and venture capitalist Tim Draper. Bitcoin investor and venture capitalist Tim Draper believes that his prediction of $250k per BTC will still come to fruition. Discussing the subject at the Malta AI & Blockchain Summit, Draper said: “I think bitcoin payment processors are really going to open the floodgates.” Back to the Norm? After two days of crypto prices sliding, no one is entirely sure what is going to happen next. At the time of publication, the multifactorial crypto market sentiment analysis index called the Crypto Fear & Greed Index (CFGI) points to “extreme fear.” Many investors believe the price is just normalizing after a false spike invoked by China’s blockchain push. “This price drop is a technical move; this is where the price was before the news of China’s support of blockchain, which is not crypto,” Joe DiPasquale, chief executive officer of Bitbull Capital said on Thursday. “So, the price of [BTC] is simply returning to normal. However, more downside cannot be ruled out, since the recent drop has turned sentiments to negative.” 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 at 9.00 a.m. EST. Images via Shutterstock, Trading View, Bitcoin.com Markets, Getty, Coinlib.io, 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 Market Update: Cryptos Shed Billions in Rapid Sell-Off appeared first on Bitcoin News. View the full article

For those long involved in the crypto space, it’s easy to forget just how overwhelming and mystifying the world of bitcoin was when first encountered as a fresh-faced neophyte, unable to tell the difference between a bitcoin and a blockchain, or even what a private key was. In that interest, it stands to examine 7 common myths surrounding the permissionless digital asset, to help disperse some of the troublesome fog that can obscure the true nature of crypto for beginners. Also Read: Here Are Some Fun Things to Do With Bitcoin Cash The Nature of Myths Myths and works of fiction aren’t powerful unless they contain some element of truth in them, or point to some deeper reality. In much the same way, myths and common misconceptions surrounding bitcoin and crypto often find their basis in real life situations or partial truths, leading to confusion down the road for those who don’t have the informational tools to sort out the difference. This post seeks to provide some of these tools. Common Bitcoin Myths and Misconceptions 1. Bitcoin Is Anonymous Whether one is talking about bitcoin core (BTC), or bitcoin cash (BCH), which was forked from BTC in 2017 to preserve the original vision of Bitcoin creator Satoshi Nakamoto, bitcoin is not anonymous. Using a simple tool called a block explorer or other analysis software, any and all bitcoin transactions can be viewed publicly. Indeed, part of the strength of bitcoin is its virtually immutable transparency which can prevent fraud, theft and third party tampering. A bitcoin transaction is very different from a traditional bank or credit card transaction. The sender and receiver’s names are not used, but a random string of characters called a bitcoin address. In this sense, bitcoin is pseudonymous. Anonymizing protocols which shuffle coins or reroute and encrypt web traffic can also be used to further obscure transaction details. In short, bitcoin can be pretty private and nearly anonymous, but it takes some work. 2. Bitcoin and Blockchain Are the Same Blockchain is just a buzzword for a digital ledger or record of information. Bitcoin transactions are recorded and secured on the bitcoin blockchain by miners. These miners are individuals or groups who use specialized computing power to solve complex mathematical puzzles which serve to create blocks of verified transactions. Miners receive built-in bitcoin rewards for doing this work. While the bitcoin network is decentralized and permissionless, meaning anyone can use it freely, running their own node and verifying the blockchain for themselves, other networks such as those of businesses, governments and banks feature centralized blockchains, whose records or digital currencies are stored at central servers, and are only viewable and usable by approved parties. Bitcoin points to a specific network and currency utilizing blockchain technology. Bitcoin in and of itself is not synonymous with this technology. 3. Nothing ‘Backs’ It U.S. President Donald Trump famously quipped back in July that bitcoin is “based on thin air,” but he overlooked a critical economic reality: so is everything. Because value is ultimately subjective in nature, markets are free to value what they will, how they will, and when they will. This is how the cowry shells of ancient times came to be money, and gold as well. A currency which has great market utility eases the problems inherent to barter and is viewed as as a highly saleable good in an economy. Bitcoin’s fast speeds, low fees and lack of centralized oversight give it a cutting edge which causes people to ascribe value to it “out of thin air.” The paper dollar bills filling our wallets have value simply because everyone is forced to use them, and thus “agrees” to do so, while the government continues to print them out of the same thin air, devaluing the currency. At least in bitcoin’s case, the supply is limited to 21 million. 4. Bitcoin Is Money for Criminals Statistically, the overwhelming majority of crime is facilitated by the U.S. dollar and fiat currencies, not bitcoin. 5. Bitcoin Is a ‘Get Rich Quick’ Scheme As noted at the outset of this article, there’s a little bit of truth to every lie, and there’s no use pretending the world of cryptocurrency isn’t rife with snake oil scams and pyramid schemes. Especially as very real and significant amounts of value can be made by traders and holders of the currency. That said, there’s nothing about bitcoin itself that could be conceived as a “scam” because it’s only a decentralized network of users, developers, nodes and miners, and not an organization. Scammy groups and companies may try to leverage the network and currency to their advantage, just as con artists leverage credit card numbers and bank account information for their own, but bitcoin itself is just a tool that has nothing to do with these bad actors. 6. Only Tech-Savvy People Can Use It With all the specialized jargon, alien-looking public and private keys, crypto Twitter drama and talk of hash rates and halvenings, it’s easy to see why entering the world of cryptocurrency might be daunting for a newcomer. That said, getting started can be simple as downloading an easy-to-use wallet such as Bitcoin.com’s own wallet app, and visiting a faucet to receive some free bitcoin cash (BCH). Sending and receiving bitcoin is as easy as copying and pasting an address, or scanning a QR code. Even business owners are finding that adoption is easy, and they don’t have to know anything about Satoshi, Schnorr Signatures or cryptoanarchy to enjoy the benefits of quick, low-fee, permissionless cash. 7. Bitcoin Is an Organization or Centralized Group As stated above, bitcoin isn’t a company like Visa or Paypal. It’s not an investment firm, MLM group or a broker. Bitcoin is a network and a cryptocurrency. The network is decentralized, enabled and secured by independent actors worldwide who run nodes — keeping a record of the entire blockchain themselves — mine blocks, develop software and make transactions, creating the market. In this sense, it’s really quite a wonder of modern technology, comparable, according to some, to the advent of the internet. Anyone who doubts the protocol’s structure is free to audit the open source code directly, as nothing is hidden. Further, nothing can be centrally altered. Peer-to-Peer Electronic Cash Hopefully, this short venture into the world of bitcoin has cleared a few things up for the crypto curious. If you’re of the spirit of Satoshi Nakamoto, looking for “an electronic payment system based on cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for a trusted third party,” bitcoin may be for you. What are some other common myths and misconceptions about bitcoin? 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 credits: Shutterstock, Evan El-Amin. 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 Tackling 7 Myths About Bitcoin for Beginners appeared first on Bitcoin News. View the full article

The Cypherpunk Bitstream podcast hosted by cryptoanarchists @thefrankbraun and @TheRealSmuggler has just released its second episode. The show compassionately reaches out to those listeners tired of the coercive “statist-quo” and explores how anyone can use cryptographic technology and philosophy to reclaim the vital and precious privacy hijacked by an ever-expanding surveillance state. Also Read: The Many Facts Pointing to Hal Being Satoshi Cypherpunk Bitstream 0x01: Cryptoanarchy The second episode of the new Cypherpunk Bitstream podcast, Cypherpunk Bitstream 0x01: Cryptoanarchy, is where the hosts get down to brass tacks and begin discussing the nitty gritty of the cryptoanarchist philosophy, its technological background, and its uses in fighting invasions of privacy and avoiding the coercion of the state. Broadcasting from a self-made temporary autonomous zone in Berlin, the pair introduce the philosophy and movement with @TheRealSmuggler stating: Anarchy is the absence of coercive rule for me. So it’s not the absence of rules and it’s not the absence of hierarchies or whatever. But it’s the absence of hierarchies and rules that you didn’t agree to. Anarchy is really about having a system of consent where every participant has agreed on how things should be going, and is at any time more or less able to leave and change his affiliations. Contrasting what his grandmother’s view of anarchy likely would be, which is “everybody kills each other and there’s violence in the streets and blood running,” Smuggler points out that he is simply talking about non-coercion. He argues that while coercion and violence can never be totally eliminated from society, there are better systems for addressing these issues than governments’ current method of employing the exact same tactics of violence to force people to agree with them. We just released the first two episodes of the Cypherpunk Bitstream podcast with @TheRealSmuggler and @thefrankbraun. Episode 0x00 Introduction (3:06) Episode 0x01 Cryptoanarchy (3:54:09) Download here: https://t.co/s7TkKvK3le pic.twitter.com/KmIlwxgXCR — Frank Braun (@thefrankbraun) November 19, 2019 “You can disagree, but you shouldn’t act on the disagreement,” Smuggler notes, “and if you break the rules that the other people made for you … they will fine you, take your property or put you into jail or worse, and that is the fundamental thing that is simply not right.” He clarifies that real violence should be stopped, but that “people tell you what to do without you being able to opt out,” and that: They make this basic assumption that they are more moral, wiser, enlightened whatever, than you are. And anybody who has listened to any politician on this planet speak so far should know that politicians are in general, as dumb as [expletive], as everybody else. Creating ‘Hidden Anarchy’ With Cryptography From the Greek root “kruptos,” meaning “hidden,” cryptography and cryptoanarchy go hand in hand. Braun and Smuggler discuss these linguistic origins and then point to the early cypherpunk movement as the seed crystal from which phenomena like modern encrypted communications and cryptocurrencies emerged. The early anonymous remailers and discussions about creating censorship-resistant digital cash paved the way for the privacy protocols and decentralized, permissionless assets of today. When Braun asks Smuggler “What does crypto mean to you, in that context [anarchy],” he replies: The word ‘cryptoanarchy’ I think was coined on the cypherpunk mailing list in the 90’s and it’s actually a little bit of a play of words … crypto anarchy is basically the ‘hidden anarchy.’ That is one of the meanings. And the other meaning could be using cryptography for implementing anarchy. Smuggler notes that the system or movement itself isn’t hidden, but its individual participants can be. “If you have an issue with coercive rule then, at least for me, that’s not just an individual thing. If I’m able to hide from the oppressors, that’s nice, but in the end you kinda have this urge to help your fellow man hide himself as well.” Into the Future Braun and Smuggler eventually make their way to current tech and social conditions, discussing the implications of privacy-enhancing protocols and software becoming more real-time in nature and function, for better and for worse (instant encrypted chat apps being used, for example, instead of generally higher-info-quality, but slower, email via remailer), and the need for action in cryptoanarchy before it’s too late. In the latter half of the episode Braun points out that if nothing is done to halt the mass surveillance being implemented now worldwide via biometrics, cryptocurrency exchange KYC/AML regulations, and more, there may come a point where it is too late for much of anything to be done. Smuggler affirms this and points to the ever-increasing necessity of risk, and greater potential for unavoidable bloodshed if individuals refuse to peacefully disobey violent mandates as soon as they can. Smuggler further points out that anonymity is often associated with dark or evil deeds in modern culture, but that the ostensibly pro-safety hyper-regulation of government makes doing good impossible as well. If, for example, one sends crypto to a friend in need, this can be monitored and met with threats of taxation and coercion in a surveillance state. Sliding an envelope of cash under a struggling single mother’s door can get them kicked off of welfare support. Smuggler notes that dropping out of current systems does not have to mean creating more victims: You can decide to say, okay, 30% of my taxes go into welfare. I’m changing the system so I don’t pay taxes anymore, but I don’t want people to starve. Then you can still say, I take my 30% … and give it to homeless people and do something good … All the money lost by bureaucracy, etc., will not be lost. Speaking of forced reform or revolution he maintains that “you are almost unable to prevent victims in reform and revolution … but in a parallel system approach with individuals switching sides, individuals can make the decision to, number one not be victims themselves anymore, and number two, not create victims on the other side.” The hosts of the show emphasize the importance of varying degrees of privacy and anonymity via cryptographic methods for protection against coercion, citing the military OODA loop (Observe, Orient, Decide, Act) strategy as a means by which to view the world. Instead of a reactionary fight against the state, nip things in the bud. Stop them at the first “O” and don’t even give the coercers in government any behavior to observe and react to in the first place. Smuggler amusingly points out that the simple bathroom stall is really one of the last bastions of cryptoanarchy. There are no cameras, and nobody knows what you’re doing, and that’s exactly how it should be. What are your thoughts on cryptoanarchy? Let us know in the comments section below. Images credits: Shutterstock, 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 New Cypherpunk Podcast Debuts Discussing Cryptoanarchy appeared first on Bitcoin News. View the full article

On Thursday, software developer Alex Winter announced the launch of Satoshiwall.cash, a noncustodial bitcoin cash-powered paywall service. The new platform allows anyone to create a customized paywall that uses BCH for payments so people can monetize their work online. Also read: Crypto Swapping App Sideshift AI Drops Access Code Requirement Satoshiwall.cash If you are an avid news reader there’s a good chance you’ve run into a paywall that restricts you from accessing content unless you pay or sign up for a subscription. Paywalls have been used on the internet for quite some time, but it wasn’t until 2010 that a large number of popular online newspapers started using the paywall system. On November 21, programmer Alex Winter introduced a new platform that lets anyone create a paywall that pays out in bitcoin cash (BCH). “I’m thrilled to finally release Satoshiwall.cash, the first fully non-custodial bitcoin paywall — Monetize anything,” Winter tweeted. He showed a small demonstration video of the first BCH paywall Winter created for the announcement called “Hello world.” In order to access Winter’s paywall, you need to pay 0.00500000 BCH, or 500,000 satoshis, to unlock the content. Software engineer Alex Winter’s paywall called “Hello world.” Satoshiwall.cash is also account-less, which means there are no registrations, no logins, no deplatforming, and no KYC. The application works with any BCH wallet but the website recommends using Electron Cash or Badger wallet. A wallet is needed so you can generate an address for receiving payments with Satoshiwall.cash. If you want to use the platform, simply press the “Create a paywall now” button to get started. In order to show our readers how to use Satoshiwall.cash, I created a new paywall called “News.Bitcoin.com Test Paywall.” I then copied and pasted a sentence from Satoshi’s Bitcoin whitepaper and also left a hyperlink to the document in the body of my message. After submitting all of my customizations, the website said: Nice — You just created a paywall. Only you can see the content, as long as you don’t close the browser tab — You can now share the link with others. Creating a paywall using Satoshiwall.cash is fairly intuitive and only takes a few minutes depending on content size. Monetizing Content With a Paywall Coupled With a Peer-to-Peer Electronic Cash System The process only took a couple of minutes and the website immediately provides you with the paywall’s link so it can be shared on the web. I set my test paywall for 2,000 satoshis; the lowest that can be set is 1,000 satoshis. According to Satoshiwall.cash, the service also takes “10% of the price or at least 1,000 satoshis.” Press “Copy link” at the bottom left corner of the screen and the BCH-powered paywall link will be copied to your device’s clipboard. Satoshiwall.cash visitors can also browse the recently created paywalls. If you are a bit more technical and want to use Satoshiwall.cash’s application programming interface (API) you can access the Satoshiwall API. This way, instead of just sharing a link on Reddit or Twitter, you can add the paywall to an existing website. Anyone can also browse the list of Satoshiwall paywalls recently created by the platform’s users. On Reddit, Winter’s new BCH paywall platform was well received by avid BCH supporters who frequent the forum. “Please let me know about any issues you’re having,” Winter told members of the community on the r/btc subreddit. On Twitter, members of the BCH community gave Winter feedback as well and the software developer responded to the initial assessments of the Satoshiwall platform. What do you think about the new BCH-powered paywall platform Satoshiwall.cash? Let us know what you think about this application in the comments section below. Disclaimer: This article is for informational purposes only. It is not an offer, solicitation or a recommendation, endorsement, or sponsorship of any products, websites, software, services, or companies mentioned. 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 and Satoshiwall.cash. 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 Developer Launches BCH-Powered Paywall Service appeared first on Bitcoin News. View the full article

With exchanges controlling so much of the industry inflows, and accounting for more than 40% of the jobs, any review of the year has to start and end there. An analysis of the dominant trends driving trading platforms serves as a proxy for measuring the cryptosphere’s overall health. From initial exchange offerings to staking as a service, 2019 was the year that crypto exchanges expanded and diversified. Also read: Bitcoin Emits Less Carbon Than Previously Claimed, New Study Finds Exchanges Double Down on Partnerships and Referrals Forging partnerships with existing businesses and ramping up referral programs are two ways in which exchanges have refined their service this year in a bid to capture more of the market. In the case of partnerships, it’s an opportunity to tap into the user base of crypto companies that have a strong presence in the space, while referral schemes are useful for incentivizing users to leverage their reputation to onboard friends and associates. Referral schemes have seen a revival, with exchanges rolling out solutions that promise more lucrative commission than previously. This week, Kraken revamped its referral scheme, promising a 20% kickback, up to a maximum of $1,000 per client. Elsewhere, Nominex has seen success with a referral scheme that is not limited in terms of levels, giving an incentive for early adopters to spread the word and reap the rewards – a binary affiliate is the technical term for it. It’s combined this with a native token, NMX, that is awarded to early adopters, to further multiply adoption and build loyalty. As for the trend towards partnerships, the past month alone has seen Indian exchange Wazirx acquired by Binance, and Poland’s OAAM Consulting form a strategic partnership with IDAX. As a result of the arrangement, any European teams and blockchain projects that intend to be listed on IDAX or launch an IEO on the platform will work with OAAM. Arrangements such as these are evidence of how exchanges are expanding their reach into territories where they lack a presence. Through combining their existing brand and user base with localized knowledge from specialist companies, exchanges have been able to grow their global user base. Initial Exchange Offerings Intensify It would be impossible to assess the evolution of exchanges this year without considering initial exchange offerings. The public’s appetite for exchange-hosted token sales is showing no signs of abating, with tier one exchanges still seeing retail investor FOMO for their carefully curated token sales. The number of exchanges providing token launchpads has proliferated in 2019, with Binance, Bittrex International, Kucoin, Okex, Huobi and a host of smaller exchanges laying on IEOs. In terms of returns on the projects listed, results have been mixed. Matic is currently sitting at a healthy ROI of 5.2x and Wirex at 3x, along with a handful of other winners that have sustained their price on the secondary market. Wirex CEO Pavel Matveev told news.Bitcoin.com that “the development of the IEO offering gave us the opportunity to break into new markets in Asia, introducing there the benefits of our newly issued WXT utility token together with the Wirex app’s payment and exchange functionalities.” 2019’s Key Exchange Trends Three other trends that have dominated the exchange landscape this year are staking as a service, lending, and increased fiat gateways. As with so many of the events that have defined the industry, the shadow of Binance has loomed large over proceedings. Its lending platform, which is currently oversubscribed for BNB and BTC, also allows lenders to lock up USDT in exchange for a 3% return. Its staking platform, meanwhile, is one of several such exchange products to have gained traction in 2019 alongside the likes of Huobi and Coinbase, and Binance is on a mission to add fiat pairings for every major global currency. Reflecting on the evolution of cryptocurrency exchanges over the past 10 months, Wirex CEO Pavel Matveev told news.Bitcoin.com: “Crypto exchanges are now extremely sophisticated. They’ve integrated a rich profusion of markets, from cash, margin products (CFDs, futures), lending, staking, IEOs… everything has been consolidated within the same venues.” Paul Doron Rosenblum is the Managing Director of Etorox, a wallet and exchange version of Etoro for advanced traders which holds a wider range of assets. “This diversification reflects the maturing of the crypto sector,” Rosenblum told news.Bitcoin.com. “The price volatility of 2017 and 2018 led to more people talking about crypto assets, which in turn led to growing interest from retail investors for this new asset class. “But as price volatility has subdued this year, the industry has entered a period of consolidation. It has had time to focus on things like appropriate regulation for the industry rather than this being a knee-jerk reaction during a sustained period of price action. We’ve also seen a greater number of institutional investors coming into the crypto space and developing their own use-cases for blockchain technology.” He added: Discussions around crypto assets have really entered the mainstream through Facebook’s Libra project. It has helped authorities, regulators and the public at large to take notice and begin to better understand the sector. Where Next for Crypto Exchanges? 2020 will see the dominant exchanges aim to cement their grip on the market while endeavoring to keep innovating. One trend that can be counted on is the growth of exchange blockchains. This year was all about Binance Chain; next year there will be Huobi and Bithumb’s chains to contend with too. Like it or not, exchange chains, just like exchange tokens, are here to stay. Bitcoin.com Exchange Finally, expect to see plenty more exchanges and crypto swapping platforms competing on price. In September, Bitcoin.com Exchange launched with negative fees, essentially giving users a rakeback for the first three months. Then, on November 20, Shapeshift announced it was offering zero-fee trading for users of its platform who hold its native token. It also shared a price comparison of how Shapeshift compares to the competition. Exchanges can add as many new bells and whistles as they like, but at the end of the day, price will trump everything else. Crypto trading platforms that can slash their fees while remaining solvent are the likeliest to survive 2020. What other exchange trends have surfaced this year? Let us know in the comments section below. Images courtesy of Shutterstock and ICO Analytics. 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 In 2019, Cryptocurrency Exchanges Diversified appeared first on Bitcoin News. View the full article

Since launching in January, Sideshift.ai has become a well known cryptocurrency application that allows people to swap 20+ cryptocurrencies in an automated manner. When Sideshift first launched, users needed an access code to use the service, but on November 20 the team removed access codes and the platform’s affiliate program has fully activated. Also read: Maduro Plans to Give Venezuelan Pensioners Petro as Christmas Bonus Sideshift AI Removes Access Code Requirement For almost a year now, Sideshift.ai has offered an automated cryptocurrency swapping service that allows people to trade specific digital assets at a rapid pace. Users leveraging the Sideshift platform can swap coins like BCH, BTC, BNB, DASH, DOGE, SAI, SPICE, USDT, USDH, XMR, L-BCH, L-BTC, and LTC. The platform was launched by software engineer Andreas Brekken when he was helping develop Drivechain extension applications with Paul Sztorc. Brekken is also the chief executive officer of the review site Shitcoin.com and the infamous coder who once held the most BTC ($220,000) on the Lightning Network last year. Since then, Sideshift has grown mature and offers a variety of decentralized assets and stablecoins. When Sideshift first launched, an access code was required to use the service and could be acquired in a number of ways. But now anyone can use Sideshift without needing an access code and the platform’s affiliate program is now open to the public. “The Sideshift AI Affiliate Program is fully activated. Earn a cut of fees when a user visits your referral link — Access granted,” Sideshift tweeted on Wednesday. Developer Andreas Brekken (right) designed the Sideshift.ai application. Brekken is also known for his review website Shitcoin.com. Unfortunately, not everyone can use Sideshift as the platform is restricted in the U.S., North Korea (DPRK), Iran, Belarus, Iraq, Yemen, Zimbabwe, and 12 more countries. In order to bolster the Sideshift AI Affiliate Program, the team has created a token called SAI which helps pay for affiliate rewards. Essentially there are 210 million SAI and Sideshift explains that no more coins will be minted. An interesting fact about SAI is the token is stored using Ethereum’s ERC20 standard, the Simple Ledger Protocol, and Blockstream’s Liquid sidechain at the same time. SAI can be traded on the Sideshift network but the tokens are also listed on the cryptocurrency exchange Coinex. “The goal of Sideshift AI is to increase the usefulness of SAI token when interacting with Sideshift AI services as well as external vendors,” the Sideshift website details. The Sideshift.ai platform. Automated Rapid Swaps and Memes Besides paying rewards in SAI, the organization wants to incentivize Sideshift traders as well with SAI. The team will also use the tokens for rebates and paying Sideshift employees, contractors, service providers, and partners. Sideshift’s shift history shows a list of all the swaps that take place on the platform. However, with privacy coins like monero (XMR), users “will not be able to view shifts on any block explorer with privacy coins,” the website highlights. Sideshift’s platform also works with the Lightning Network (LN), and with BTC and LN support on Sideshift, users “can shift to any coin in less than 5 seconds.” The Sideshift developers say that the LN integrated Sideshift node helps with research, increased connectivity, feedback, and the overall expansion of LN. For now, Sideshift recommends users who want to leverage the LN features use wallets like Eclair, Bluewallet, and Wallet of Satoshi. Bitcoin.com Wallet users can access Sideshift to swap BTC for BCH or vice versa using the service inside the wallet. For some time now Sideshift has also been supported by the Bitcoin.com Wallet, a noncustodial lite client that just recently surpassed 5 million wallets created. Bitcoin.com Wallet users can swap BTC for BCH or vice versa using the Sideshift platform within the wallet interface. Last August, Sideshift was also on the hunt for a “Meme Lord/Specialist” with the ability to produce “spectacular memes.” Sideshift’s Meme Lord job application on Indeed.com said: “Sideshift requires 6+ months of meme experience and a strong interest in cryptocurrencies and crypto culture.” Sideshift’s recent announcement in regard to dropping the access code was welcomed on crypto Reddit forums and one user was quite surprised the swapping service even existed. “Wait is Sideshift like what Shapeshift used to be? Can anyone vouch for the legitimacy of this service?” one Redditor asked. “It’s legit,” another user replied. “They have been in a semi-closed beta till now.” What do you think about the Sideshift.ai platform? What’s your favorite cryptocurrency swapping service? Let us know what you think about this subject in the comments section below. Image credits: Shutterstock, Sideshift.ai, Shitcoin.com, Bitcoin.com Wallet, and Pixabay. 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 Crypto Swapping App Sideshift AI Drops Access Code Requirement appeared first on Bitcoin News. View the full article

Bitcoin has been regularly attacked for its energy-intensive mining process, powered by serious amounts of electricity. It’s been claimed that it leaves a carbon foot print comparable to that of a large city or even a small country, an allegation that often finds its way to the headlines of mainstream media outlets. But a new study proves the devil is in the details. Bitcoin’s CO2 emissions, according to the authors, are much more modest than suggested by previous reports. Also read: Canadian Company Commissions 3 Bitcoin Mining Units to Restart Oil Well Getting the Numbers Right Various studies have painted a pretty negative picture of Bitcoin’s energy consumption so far. “Participation in the Bitcoin blockchain validation process requires specialized hardware and vast amounts of electricity, which translates into a significant carbon footprint,” wrote a team of researchers from the Technical University of Munich and MIT. According to their article published earlier this year, the annual electricity consumption of Bitcoin, as of November 2018, was 45.8 TWh, and the carbon emissions reached almost 23 megatons of CO2, a figure comparable to what Jordan or Kansas City emit each year. Other researchers have made even bolder, eyebrow-raising claims. A University of Hawaii at Mānoa study released last year suggested that Bitcoin emissions alone could push global warming above 2°C a little over a decade from now, jeopardizing the planet’s climate change reduction goals. “Bitcoin usage emitted 69 MtCO2e” in 2017, the authors concluded based on compiled data on the electricity consumption of the computing systems used for Bitcoin verification at the time and the emissions from electricity production in the countries where mining companies are predominantly based. However, Susanne Köhler and Massimo Pizzol from Denmark’s Aalborg University believe something’s not entirely right with such estimates. In their publication entitled “Life Cycle Assessment of Bitcoin Mining,” they point out that other studies rely on general assumptions about the CO2 emissions from electricity generation and presumptions that these are uniform across a given country, say China. In contrast, their approach to analyzing the matter takes into account the geographical distribution of mining facilities within the People’s Republic, which hosts a little more than half of all bitcoin miners today, to produce a much lower figure. “It was found that, in 2018, the Bitcoin network consumed 31.29 TWh with a carbon footprint of 17.29 MtCO2-eq,” the abstract of the study notes. Köhler and Pizzol have emphasized that the Chinese region of Inner Mongolia, which relies heavily on fossil fuels like coal to generate its electricity, is home to only around 12% of the bitcoin miners, while Sichuan, a province where renewable sources such as hydropower generating capacities are widely spread, hosts over 30% of the mining facilities operating in the country. Therefore, Sichuan’s contribution to bitcoin mining’s CO2 emissions is considerably smaller. That has to be taken into account when gauging Bitcoin’s overall carbon footprint in China, given that Sichuan is the largest mining region in the People’s Republic. Bitcoin’s Impact Expected to Shrink The authors of the Danish paper have also concluded that the bulk of the environmental impact of Bitcoin was a direct result of the use of electricity and of mining equipment in the minting process. The hardware’s production and recycling had a very limited impact, accounting for only around 1% of the carbon emissions during the studied period. “In contrast to previous studies, it was found that the service life, production, and end-of-life of such equipment had only a minor contribution to the total impact, and that while the overall hashrate is expected to increase, the energy consumption and environmental footprint per TH mined is expected to decrease,” the article stresses. The two researchers do admit that “The lack of a robust methodological framework and of accurate data on key factors determining Bitcoin’s impact have so far been the main obstacles in such an assessment.” Quoted by New Scientist, Susanne Köhler also remarks that the findings in the study don’t mean people shouldn’t worry about Bitcoin’s carbon footprint, given the growing amount of electricity used for the minting of each new coin. Nevertheless, she insists that things have to be put it in perspective: On the one hand, we have these alarmist voices saying we won’t hit the Paris agreement because of bitcoin only. But on the other, there are a lot of voices from the bitcoin community saying that most of the mining is done with green energy and that it’s not a high impact. Besides purely environmental concerns, socio-economic effects have to be taken into account as well. As a sort of a regulatory recognition, the Chinese government recently removed bitcoin mining from a list of unwanted industries. As a result, the minting of digital coins has become less illegal than it used to be, as a Chinese bitcoin miner speaking to news.Bitcoin.com recently put it. The sector has attracted a lot of investment and created many jobs in China. And this year’s crypto market rebound has brought mining back to profitability. The really good news is that you don’t even need to acquire mining equipment in order to participate and profit from the creation of new permissionless money. What’s your opinion about the carbon footprint of bitcoin mining? Share your thoughts on the subject in the comments section below. Images courtesy of Shutterstock. Did you 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 Bitcoin Emits Less Carbon Than Previously Claimed, New Study Finds appeared first on Bitcoin News. View the full article

“Masternode” is a term that echoes less often in the cryptosphere these days, but not because user-controlled nodes have fallen out of favor. Rather, the nomenclature has shifted, with “staking” now used to describe the array of blockchains that fall under this banner. As an examination of proof-of-stake chains shows, masternode coins are very much alive. But as exchanges push staking as a service, are the days of user-operated masternodes numbered? Also read: Bitcoin.com to Launch $200 Million BCH Ecosystem Investment Fund 5 Years on, Masternodes Are Still Going Strong When smart contract platform Velas unveiled its masternode staking this week, it iterated on a system that can be traced all the way back to Dash’s arrival on the scene in 2014. Masternodes have evolved significantly since then, with Velas’ staking program reflecting this through provisions like pooled staking, for users who can’t muster enough coins to meet the 1 million VLX threshold, and minimal hardware requirements to lower the technical barriers to entry. Although a degree of technical knowledge is still required to operate your own node, setup is considerably easier than it was in the early days. Moreover, in the case of pooled staking services such as that offered by Velas via Coinpayments.net, getting started is as simple as sending coins to a specified wallet and then logging back in periodically to collect your staking rewards. VLX rewards start at 8% of all coins staked, for example, which is approximately the same ratio as DASH. Sites like mnrank.com provide detailed statistics on masternode ROI and provide general market information on the leading coins. Dash invariably sits top of the list, followed by the likes of zcoin, nuls, and horizen. Below that, things start to get sketchier, with some extremely small market cap coins whose primary raison d’être is to provide a return to masternode operators. The site lists a total of 123 coins and 67,000 masternodes that are currently online. The most popular masternode coins according to mnrank.com At the height of masternode mania in 2017, when New Zealand’s Cryptopia exchange was still a going concern, there were hundreds such coins, many of which promised astronomical but ultimately unsustainable returns of over 100% per year. To get a handle on the status of staking today, it’s necessary to understand how it was that masternodes came to be. Mastering Masternodes There are two reasons why someone might want to operate a masternode – one intrinsic, the other extrinsic. In the case of the former, you might run a node because it pays to do so: in return for locking up a tranche of coins (aka your stake) and validating network transactions using your node, you will be entitled to a percentage of the coins minted by way of reward. In the case of Dash, the stake is set at 1,000 coins – $64,000 at current prices. Assuming a stable price for dash, a node ought to provide a return of a little over $5,000 per year. It sounds like easy money, given that the masternode operator retains their stake, and can sell those coins upon ending their participation in the program. In practice, there are very few coins that can be relied on to sustain their price over a prolonged period versus BTC. As such, aspiring masternode operators need to choose their coins wisely. The second reason for running a node is down to ideological rather than pragmatic reasons. Put simply, you believe in the project and want to support it as best you can. In this context, maximizing ROI is less important than increasing the network’s decentralization through bolstering the number of masternodes tasked with overseeing onchain activity. Because proof-of-stake chains don’t have miners to call upon to include transactions in the next block, the duty goes to nodes instead. When Satoshi created Bitcoin, he anticipated that all nodes would also be miners. In the event, mining has become commoditized, leading to the separation of miners and nodes. As a result, most Bitcoin node operators are read only, capable of monitoring network activity, but powerless to dictate which transactions are included in the next block. The Commoditization of Staking Chains It’s not just Bitcoin mining that’s become commoditized over the years, with power consolidating in the hands of specialist enterprises with the hardware and user base to provide economies of scale. Staking has become centralized by custodians such as Huobi, Binance, and Coinbase, who automatically dispense the “passive income” or staking rewards that holders are entitled to. Coinbase takes care of Tezos, while Binance covers an array of coins including NEO, ONT, ALGO, and KMD. There’s no such thing as a free meal, though, and while exchanges offering staking as a service eliminate the complexity of running your own node, there are trade-offs to factor in. These include the security risk of storing coins with a third party and the KYC requirements in order to do so, which erode individual privacy. There are other concerns too which affect the blockchain in question. For instance, with exchanges custodying the majority of all staked coins, they also control the governance rights, giving them de facto control over protocol changes and other key decisions that are determined by onchain votes. Staking as a service is undoubtedly convenient, but it kills off one of the reasons why nodes exist in the first place: to distribute and decentralize power, thereby increasing the censorship-resistance of crypto networks. Regardless, the genie is out the bottle now, and will be difficult to put back now exchanges are offering a superior product in terms of user experience – decentralization be damned. Proof of stake chains such as Nervos, Koti, Fantom, and Solana are poised to launch their mainnets this quarter, followed by Perlin, Matic, Celo, and Near in Q1 2020. The term “masternode” may resonate less frequently these days, but the staking game is very much alive. Do you think centralization of staking programs through exchanges is unavoidable? 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 What’s at Stake With Masternode Coins? appeared first on Bitcoin News. View the full article

The best use for any currency would be to spend it on things you need or even better, enjoy. And spending has to be easy and inexpensive too. Bitcoin cash has these characteristics and brings them to the digital money world. They have been acknowledged by crypto users who appreciate fast and low cost transactions. There’s a bunch of interesting things you can do with bitcoin cash today. Also read: These Debit Cards Will Help You Spend Your BCH Anywhere Camping at Norway’s ‘Private City’ You can, of course, travel the world with bitcoin cash and we have previously turned your attention to some attractive destinations you’d enjoy. Like Slovenia, for example, where you can pretty much get by entirely on BCH thanks to a payments platform called Gocrypto. Hundreds of retail locations in the small European country, which literary looks just like a postcard, now accept bitcoin cash through the service offered by the payment processor Eligma. And to get there, arrange your accommodation and book a car rental, you have an ever-expanding list of options. But if you’d like to do something more special, say a trip that’s not offered by travel agencies, there’s another idea for a vacation we haven’t mentioned yet. Liberstad, a self-proclaimed ‘private city’ established by two local entrepreneurs, is inviting libertarians and investors to a beautiful part of the Nordic country. They can purchase land plots there and take part in the experimental project that promises “a little piece of freedom,” but the area is also becoming a tourist attraction and it’s one that welcomes BCH payments. In the beautiful surroundings of the Norwegian forest, Liberstad’s team is now building a camping resort and a cabin town. The site will accommodate campers in caravans, mobile homes and tents, but visitors will also be able to rent cabins and apartments. And while some caravans can already be seen on Liberstad’s Instagram, a kiosk, a grocery store, bars and restaurants, event arenas, and playgrounds will also be constructed in the future to provide a wide range of services and facilitate recreational activities for both children and their parents. ‘It’s Not a Costume, It’s a Lifestyle’ Scandinavia is a pretty cold place in the winter and you might need one of the Griz Coats sold by the San Francisco-based company Buffoonery Factory. “Yes, we sell faux fur coats that look like bears. Feel free to call them bear coats, bear suits, or bear jackets, but just don’t call them bear costumes,” their website pleads. Unfortunately, “we’re actually now sold out of Grizzly Bear Coats because a bunch of trick-or-treaters didn’t read that passage about it being a non-costume and went ahead and bought them for Halloween anyway,” the project admits. But there’s a waitlist for the next batch you can sign up for. Or, if you are in an urgent need of one, you can “consider buying a Polar Bear Coat and rubbing it in a bunch of dirt.” The Grizcoat.com online store takes crypto, including bitcoin cash. If you are a creative and entrepreneurial person, like the Hans and Karl Reichstetter brothers who created Griz Coat, there are many ways to earn BCH. Cryptartica offers you an opportunity to do exactly that. You can sign up and learn more about it but in short, it’s a print-on-demand platform that lets you create and sell your own customized merchandise to a targeted audience at no upfront cost. And, of course, you can make some electronic cash in the form of BCH. Simply upload your design and place it on a product like a t-shirt or a coffee mug, publish it in the Cryptartica online store to start selling it and you are all set to begin earning a sales commission with the platform taking care of the rest. Candy and Other Delights If you’ve tucked some bitcoin cash aside and you are willing to spend it on bringing more of your friends and colleagues into the crypto space, you can also buy one of those Crypto Candy dispensers offered by Iozeta. Set it up in your home or office as a fun way to introduce your friends and family to the fascinating world of cryptocurrency. Once the device detects a new transfer to a specified BCH address, it will activate a payment received light and a motion sensor, allowing for candy to be dispensed. The Crypto Candy device easily connects to the internet via wi-fi. It’s a lot of fun to watch someone’s reaction when they get a handful of M&Ms mere seconds after a simple bitcoin cash transaction. Making someone you like or love happy is a great reward. And there are myriad ways to achieve that with bitcoin cash right now. You might not be aware, but you can buy a ton of gift cards with BCH for major retailers in two dozen categories. From the Home Depot to Macy’s, Domino’s to Dunkin Donuts, even Uber, you can have them all with bitcoin cash and it only takes a few seconds. Get them for yourself or send them to a friend or relative for Christmas. The good will gesture will cost you less than a penny in transaction fees. What other fun things can you do with bitcoin cash? Share your suggestions in the comments section below. Images courtesy of Shutterstock, Liberstad, Griz Coats, Cryptartica. 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 Here Are Some Fun Things to Do With Bitcoin Cash appeared first on Bitcoin News. View the full article

A major Indian cryptocurrency exchange, Wazirx, has been acquired by Binance. News.Bitcoin.com talked to Wazirx CEO Nischal Shetty to find out the implication of this acquisition and the changes users in India can expect. Meanwhile, the “India Wants Crypto” campaign to bring about positive regulation will continue, and Shetty is confident that the Indian government will positively regulate the crypto Industry. Also read: Indian Supreme Court Wraps up Crypto Hearing for the Year Wazirx Joins Binance Mumbai-based crypto exchange Wazirx has been acquired by global crypto exchange Binance, Wazirx CEO Nischal Shetty confirmed to news.Bitcoin.com on Thursday. “Wazirx has now become India’s first-ever cryptocurrency exchange to be acquired by an international one,” the exchange announced. “Binance has been working towards growing the ecosystem by introducing new fiat gateways,” Shetty explained. “Wazirx’s innovative P2P in India attracted them. The idea is to further grow the crypto ecosystem in India and also use our technology to launch fiat gateways in more countries.” The Indian exchange launched its peer-to-peer (P2P) platform after the Reserve Bank of India (RBI) issued a circular banning financial institutions from providing services to crypto businesses. Banks subsequently closed accounts of crypto exchanges, leaving their customers with no access to INR. Shetty also confirmed that he will continue to serve as the CEO of Wazirx, adding: We’ll continue to function the way we have been … The only thing that changes is that we now get more support through Binance’s global ecosystem which is great for crypto in general. Wazirx’s P2P engine will soon be integrated into the Binance Fiat Gateway platform, allowing users to trade any cryptocurrencies on Binance with the purchase of USDT from the Wazirx P2P platform. “We’ll bring Wazirx P2P in the Buy Crypto page of Binance before the end of this month. There will be deep integration in Q1 2020,” Shetty detailed, elaborating that “There will be a big boost to liquidity as we’ll work with Binance on improving it.” Binance CEO Changpeng Zhao (CZ) commented: “The acquisition of Wazirx shows our commitment and dedication to the Indian people and strengthen the blockchain ecosystem in India as well as another step forward in achieving the freedom of money.” Campaign for Positive Crypto Regulation Continues The two key issues that the crypto industry in India is facing have been delayed — the introduction of the crypto bill and the fight to lift the banking ban. On Monday, the country’s supreme court postponed hearing the arguments against the banking restriction by the central bank to January next year. The government is also delaying the introduction of the crypto bill entitled “Banning of Cryptocurrency & Regulation of Official Digital Currency Bill 2019.” This bill was drafted by an interministerial committee headed by former Secretary of the Department of Economic Affairs Subhash Chandra Garg. The government previously told the court that the bill would be introduced in the Winter session of parliament. However, the Winter agenda released last week by Lok Sabha, the lower house of the Indian parliament, does not include a crypto bill. The Indian crypto community strongly believes that the bill is flawed and has been actively campaigning for the government to reexamine the recommendations. Shetty has been running a social media campaign called “India Wants Crypto,” which has entered its 385th day. He told news.Bitcoin.com, “I’ll also continue my India Wants Crypto campaign in order to bring about positive crypto regulations in India.” He insisted that the acquisition by Binance has nothing to do with the RBI ban or the delayed crypto bill, stating: We’re confident India will positively regulate crypto. In fact the recent decision by India to not include the bill in the next parliament session proves that India will listen to the crypto industry before deciding on the way forward. Do you think Binance acquiring Wazirx is good for the crypto industry in India and abroad? 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 and Wazirx. 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 Binance Acquires Major Indian Exchange Wazirx – CEO Explains the Changes appeared first on Bitcoin News. View the full article

Regional news outlets from Venezuela have revealed that President Nicolás Maduro plans to dole out petro as a ‘Christmas bonus’ for Venezuelan retirees and pensioners. Moreover, despite the fact that many Venezuelans say average citizens don’t use the petro, Maduro also claims there are 27,000 petro affiliated businesses. Also read: Indian Supreme Court Wraps up Crypto Hearing for the Year Venezuelan Pensioners’ Christmas Bonuses to Be Paid in Petro The Venezuelan President and the leader of the United Socialist Party Nicolás Maduro has revealed that the government plans to give Venezuelan retirees and pensioners the gift of petro this Christmas. The petro (PTR) is the first cryptocurrency launched by a nation state and the digital asset has been controversial since it was announced. Many skeptics believe the petro is only used by government officials and their friends to skip international sanctions initiated by the U.S. United Socialist Party leader and Venezuelan President, Nicolás Maduro. Moreover, numerous sources have explained to news.Bitcoin.com that the PTR is only used for “promotional” purposes. “Nobody uses the petro and only people close with government use it to skip out on U.S. sanctions,” our newsdesk was told in September. Now, this holiday season, Maduro plans to give petro to retirees and pensioners as a gift. On November 17 the local news outlet Venepress tweeted: EnDesarrollo Maduro announced a ‘Christmas bonus’ for retirees and pensioners of petro (at today’s price would be Bs. 897,317.27) 17Nov. This year’s Christmas bonus of petro for pensioners follows last December’s monthly bonus that was allegedly converted to PTR. According to Caracas Chronicles, the pensioners’ accounts were converted to petro without their consent. Both “Elderly Love Pensions” (Christmas bonus 2018) and traditional savings pensions were purportedly exchanged that month while Maduro pushed the crypto internationally. In December 2018, news.Bitcoin.com reported on how Maduro tried to persuade the Russian government to use the petro while visiting Moscow. The United Socialist Party leader attempted to trade petro to repay debt to Belarus and he also pitched the PTR to OPEC members that month. On November 6, 2019, Sunacrip Press reported: “The President of the Republic, Nicolás Maduro, signed the decree that regulates the Accounting Registry in Cryptoactive, a legal instrument to regulate accounting in Petros.” “Petro becomes a legal accounting record for the entire national economy, to clean up the economy,” Maduro declared during the government-sponsored ceremony. ‘27,000 Petro Affiliated Businesses’ In addition to the news that Maduro is paying retirees and pensioners with petro, he claimed during a government-sponsored program that the crypto has “27,000 affiliated businesses.” Maduro also explained at the program his bonus plan for pensioners and that he expected merchant adoption to “double in the coming months.” Meanwhile, news.Bitcoin.com was told by local sources that the PoS systems used at affiliate stores only accept cryptos like LTC, BTC, and BNB. Various reports also detail that Venezuela’s central bank has indicated plans to stockpile BTC and other digital assets. Last February Pedro Peroza wrote a number of informative articles concerning the National Superintendency of Crypto Assets and Related Activities (Sunacrip) operations. Peroza said he believes Maduro’s regime has been stockpiling digital currencies via the “collection of taxes in cryptocurrency, for that a Law was approved in the ANC (National Assembly Madurista).” Sunacrip Press reports that the ‘Savings Plan’ in petro celebrated its first year of operation with more than 3 million savings accounts. “A year ago I invited you to save in petros and look how well they did, today I call on all businesses, all entrepreneurs, to join, to look for this new path, and begin to travel the petro’s path, so they can see that they are going to do much better,” President Maduro wrote according to Sunacrip Press on November 6, 2019. During Maduro’s recent speech, the president told attendees that cryptocurrencies and the petro will help Venezuelans battle against the “economic war.” “We have achieved the slowdown of the economic war through the self-regulation of the economy,” Maduro explained to the program guests. “With this self-regulation of the economy, other actors have begun to operate with their own currencies.” Joselit Ramirez, Venezuela’s Superintendent of Cryptoassets. Despite Maduro telling the crowd there are 27,000 affiliated petro businesses, reports last year stemming from Reuters tell a different story. The news outlet scoured multiple regions and chatted with a “dozen experts on cryptocurrencies” and no one found any signs of petro use. “The hunt turned up little evidence of a thriving petro trade,” the special report noted. “The coin is not sold on any major cryptocurrency exchange — No shops are known to accept it.” Maduro’s 27,000 merchants claim also follows the statements from Joselit Ramirez, the country’s Superintendent of Cryptoassets, who said retail acceptance is rising due to the new PTR payment gateway called Petropago. However, Ramirez told attendees at the Carabobo Crypto Convention that there are only 93 petro accepting merchants in Venezuela. What do you think about Maduro paying Venezuelan retirees and pensioners the gift of petro this Christmas? What do you think about the Venezuelan President’s claim that there are 27,000 petro-affiliated businesses? Let us know what you think about this subject in the comments section below. Image credits: Shutterstock, Sunacrip Press, and the Carabobo Crypto Convention. 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 Maduro Plans to Give Venezuelan Pensioners Petro as Christmas Bonus appeared first on Bitcoin News. View the full article