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Trading platform Coinex recently announced the creation of a public decentralized exchange (dex) blockchain that leverages the consensus protocols Tendermint and the Cosmos SDK. This month, up until the mainnet launch, Coinex is in the midst of its pre-election process with new node participants preparing to partner with the Coinex Chain ecosystem. To further promote decentralized innovation, Bitcoin.com has joined the Coinex Chain network by planning to run a validator node on the blockchain. Also read: Market Update: Crypto Prices Spike Significantly In a Matter of Minutes Global Participants Join the Coinex Chain Ecosystem Since the inception of Bitcoin and various alternative digital assets, centralized exchanges have lost customer funds every single year. Exchanges like Bitfinex, Mt. Gox, and Bithumb have lost millions of dollars in cryptocurrencies. The trading platform and blockchain business Coinex wants to tackle this problem with a dex chain that bypasses single points of failure and censorship while also providing a transparent process. Essentially, Coinex has created a distributed ledger system that allows for decentralized exchange functions, onchain privacy protection, and the ability to make programmable cash a reality. Coinex Chain website. In addition to the dex functionality, Coinex Chain aims to provide anyone with the means to issue a token and trade tokens onchain noncustodially. Users will participate in a governance system that allows for more transparency and user-base decision-making. Coinex Chain users will also be able to leverage the framework to issue pegged tokens and digitized assets. Coinex Chain pre-election participants. The Coinex Chain Foundation held an event in Shenzhen, China on Oct 16 and started the Coinex Chain pre-election process. The conference was an important event for Coinex as global validator nodes joined the ecosystem. Blockchain startups participating include Rockx, Ifwallet, CETDAC, Seele Ecosystem, and Realmx. Being proponents of a strong cryptocurrency-powered future, Bitcoin.com has joined the validator node process as well. Right now there are 31 participants and approximately 1,073,220,442 votes in the pre-election. The pre-election event running until November aims to provide users with the node election scheme before the official election begins. Coinex users can vote in the pre-election and they will be able to win prizes worth 150,000,000 CET. Bitcoin.com’s validator node details. Aiming to Build a Transparent, Secure, and Permissionless Financial Platform The firm wholeheartedly believes the Coinex Chain system of three public blockchains tethered to the Inter-Blockchain Communication Protocol (IBC) will cushion decentralized exchange functions, smart contracts and decision-based transaction tasks, and privacy methods that reinforce cryptocurrency confidentiality. “With functions such as asset-mapping, onchain trading and onchain matching, the dex public chain can address the problems of centralized exchanges, such as poor safety and intransparency that have been widely criticized,” explains the Coinex Chain whitepaper. “[The goal is to return] asset control to users, provide an order-book based on a fair onchain matching algorithm, permissionless onchain listing and creating trading pairs.” The white paper adds: All of these efforts are aimed to build a transparent, secure, and permissionless financial platform for free trading. At the same time, features such as high TPS (transactions per second) performance and second-level transaction confirmation provided by the underlying Tendermint Consensus can maximumly restore the user experience like that in centralized exchanges. The requirements needed in order to participate in hosting a validator node. With participants like Bitcoin.com joining the pre-election process, the testnet launch has been very successful. The Coinex Foundation plans to continue showcasing the project worldwide in regions like Hong Kong, Singapore, Wuzhen, and Beijing. The core Coinex Chain engineers such as the project’s lead developer, Jiazhi Jiang, have been introducing the platform during the company’s world tour. After the three-chain system initiates the mainnet launch, in the future, Coinex will build more application-specific public chains in order to help strengthen the blockchain ecosystem as a whole. Interested participants can read about the Coinex Chain pre-election process here for more details. What do you think about the Coinex Chain project and the pre-election process? Let us know what you think about this subject in the comments section below. Image credits: Shutterstock, Coinex, Coinex Chain, Bitcoin.com, 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 Bitcoin.com Joins the Coinex Chain Pre-Election Node Process appeared first on Bitcoin News. View the full article

There are many pitfalls one can easily get caught in when using, storing, investing or trading cryptocurrencies. While some mistakes could cost you a fortune, most of the common ones can easily be avoided. Bitcoin.com has produced a video featuring the top seven deadly mistakes crypto owners should avoid. Also read: ‘No-Deal Brexit Huge Positive for UK Cryptocurrency’ – How Brexit Could Affect the Industry Common Mistakes for All Crypto Owners Bitcoin.com has released its latest installment of the “top lists” video series. The video, entitled “7 Deadly Crypto Sins You’ll Want to Avoid,” highlights seven of the most common mistakes crypto owners could fall for with explanations of how they can be avoided. Some are aimed at all crypto owners and uses while others are more for investors and traders. One of the top mistakes featured in the video is not backing up your wallet. “If you lose access to your private keys due to loss, theft, or damage, you lose access to your money, and it’s lost forever,” the video describes. A device holding your wallet can be broken, lost, stolen, and the backup is the only way to retrieve your funds. News.Bitcoin.com has written several guides on the subject. For example, we have an explainer on how to restore a bitcoin mobile phone wallet onto a fresh device using a mnemonic seed phrase, a guide on how to restore a hardware wallet using a seed phrase, and a list of ways you might go about storing your wallet recovery phrase. The video also explains the mishaps that can occur when mixing up different forks and how they can be prevented. For example, when BCH forked from BTC, some users claimed to have lost their BCH by sending their coins to BTC addresses. Some common mistakes concern how to store your coins. While it is easy and convenient to store them in hot wallets, there have been many instances where security breaches have wiped out all the coins kept in them. Similarly, keeping your coins at crypto exchanges is also risky, as they are often targets of hackers and many of them do not have adequate security measures. When they are hacked, you may not get all your funds back. Mt. Gox’s creditors, for example, are still struggling to get their money back to this day. Other recent exchange hack examples include Binance which was hacked in May and lost about 7,000 BTC; Bitpoint Japan which lost about $32 million worth of cryptocurrency when it was hacked in July; Coincheck which lost about $534 million worth of XEM when it was hacked in January last year; and South Korean exchange Bithumb which was hacked several times over the years. Some Mistakes When Trading Crypto The video also features some common mistakes when investing or trading cryptocurrencies. Two very common ones are market timing and investing more than you can afford to lose. When the price is rising, it is very tempting to do both. Similarly, when the market is down, there is a strong tendency among some traders to sell and cut their losses. “Of course, we often hear the success stories in the media, however, the many losses that have been incurred by participants seeking to time the market have been swept under the carpet,” explained Kyle Cox, a senior investment analyst at Invictus Capital. Here are some examples of how crypto traders are handling bear markets, and one Chinese trader told his story of how he lost 9,000 BTC. The video below explores the above mistakes in more detail, how to avoid them, and the rest of the top seven deadly sins. Other videos in this series: How to Earn Bitcoin Cash Income 10 Useful Browser Plugins to Help Crypto Users How to Keep Bitcoin Cash Transactions Private Biggest Heists in Bitcoin History and How They Were Pulled Off New Video Series Debuts – How Bitcoin Cash Will Change the World What do you think of the mistakes outlined in the video? Are there others you think should make the list? 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 Mistakes Crypto Owners and Traders Should Avoid appeared first on Bitcoin News. View the full article

Recognizing that businesses are seeking alternative ways to raise capital other than bank lending, the Bank of Lithuania has issued new guidelines on security token offerings. The goal is to clarify applicable rules without introducing more regulations. Also read: Mario Draghi Leaves European Central Bank Without Ever Raising Interest Rates Guidelines Aiming to Avoid More Regulations The central bank of the small Baltic nation of Lithuania has recently noted that the focus in the crypto space is shifting from initial coin offerings (ICOs) to security token offerings (STOs). Explaining the differences between the two, the Bank of Lithuania issued recommendations on capital raising through STOs. Lietuvos Bankas is among the first financial regulators to issue guidelines on STOs. In an announcement published on its website, the bank emphasized that the new guidelines provide greater regulatory clarity while aiming at higher investor protection. Times have changed and as Bank of Lithuania Board Member Marius Jurgilas put it: The current focus on security token offerings is taking over the waning interest in ICOs. Businesses are interested in this particular way of raising capital as an alternative to bank lending. The guidelines provide the bank’s position regarding STOs rather than create new regulatory arrangements, Jurgilas pointed out. “In a strict regulatory environment, such as the securities market, it becomes crucial to set rules in order to avoid any miscommunication, misunderstandings and their consequences,” he said. Adopting a regulatory approach that treats tokens as a financial instrument, the Bank of Lithuania has concentrated on classifying tokens, some of which have features of securities or other financial instruments. It also plans to assess specific cases separately, provide recommendations related to the issue of security tokens, and clarify applicable legal regulations. Companies Alerted About the Rules to Comply With Lithuania is one of the three Baltic nations that have adopted a generally positive approach to the industry dealing with cryptocurrencies. Earlier this year, the country’s central bank updated its position on decentralized digital currencies and tokens issued in coin offerings, opening the way for crypto payments in the country. At the same time, the government in Vilnius is preparing to transpose the latest EU Anti-Money Laundering Directive into national law. In its recent press release, Lietuvos Bankas stressed that companies planning to use the STO method to issue tokens categorized as transferable securities or other financial instruments will have to comply with applicable EU and Lithuanian legislation regulating capital raising activities. “In case market participants are not sure whether their offered tokens are subject to regulation, we stand ready to provide them with consultation on this matter,” Jurgilas remarked. To fulfill its commitment in that respect, the bank has already initiated two public consultations. While drafting its guidelines, the regulator took into account some of the suggestions it received. The Bank of Lithuania claims it has taken a “technology-neutral regulatory approach,” which means that if a certain product has features of a financial instrument, such as securities, it will apply relevant regulation and supervision regardless of the technology used in its creation. But given the unique nature of this type of product, it promises to review each case individually. Substance over form will be the guiding principle. The bank explained that STOs “are the new way of raising capital where an entity seeking to raise its funds does not issue shares, bonds or any other traditional financial instruments. Instead, it issues tokens recorded on a public or private ledger which entitle the bearer to a variety of rights similar to the rights granted to shareholders or owners of bonds or other financial instruments.” The central bank also noted that the issuance of these tokens is conducted through distributed ledger technology. What do you make of the Bank of Lithuania issuing guidelines on security token offerings? Share your thoughts on the subject in the comments section below. Images courtesy of Shutterstock and the Bank of Lithuania. 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 Bank of Lithuania Issues Guidelines on Security Token Offerings appeared first on Bitcoin News. View the full article

Authorities in Poland have clarified the taxation of revenues received from cryptocurrency exchange transactions. The Ministry of Finance has recently published a 2019 tax form that has a dedicated section where taxpayers are expected to declare separately proceeds from crypto trading. Also read: Mario Draghi Leaves European Central Bank Without Ever Raising Interest Rates Polish Taxpayers to Declare Crypto-Related Income Ministerstwo Finansów unveiled this month the new PIT-38 (personal income tax) form which will simplify the reporting and settlement of taxes related to cryptocurrencies. The form will be used by private individuals residing in Poland. The country’s finance ministry claims it will make crypto taxation easier and more transparent. The updated form allows Polish taxpayers to enter proceeds from the sale of virtual currencies and provide data about the costs of acquiring digital coins and tokens. Investment costs from consecutive years can be added until they are fully deducted. However, no deduction should be claimed from other sources of income such as the sale of shares. To properly report their profit from cryptocurrency trading, Poles need to obtain and provide financial statements from the digital asset exchanges they have used to purchase and sell the coins, Polish news outlet Kryptowaluty detailed. Efforts to Regulate Crypto Taxation in Poland The executive power in Warsaw has been taking steps to regulate the taxation of proceeds received from cryptocurrency trading since last year. The framework that has been developed and implemented since the beginning of 2019 covers personal as well as corporate income tax. In the first case, profits from digital asset trading should be taxed as income from cash capital. If the trading is private, the revenue is classified as income from property rights and taxed according to the regular progressive scale with rates between 18% and 32%. If the profit comes from a business activity, the income may be subject to a 19% flat rate. Revenues from trading conducted by corporate entities are regarded as capital gains. The base rate paid by larger companies is again 19%. Smaller corporate taxpayers enjoy a preferential rate which was 15% in 2018. Since January 2019, however, entities reporting revenues of up to €1.2 million within a tax year and startups established this year will pay only 9% income tax if they meet certain conditions. The “small taxpayer” threshold will be increased to €2 million in January 2020. The new tax regime for crypto trading does not concern entities registered and operating as providers of cryptocurrency exchange services. That includes crypto-to-crypto trading platforms as well as those exchanging decentralized digital money such as bitcoin cash (BCH) with traditional fiat currency like the Polish zloty. What’s your opinion about the tax rates for crypto trading income in Poland? Tell us 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 Tax Form to Report Revenues From Cryptocurrency Trading Issued in Poland appeared first on Bitcoin News. View the full article

U.S. representative Ann Wagner noted at a recent hearing that child pornographic material has been reported on Facebook more than any other site. Lyn Ulbricht, mother of currently imprisoned Silk Road founder Ross Ulbricht, spoke out in a video livestream Wednesday against her son’s unfair sentencing and the hypocrisy of allowing sites like Zuckerberg’s to exist; as Ross is serving more than a double life sentence in prison for operating the basically peaceful Silk Road. Also Read: The Silk Road Investigation: A ‘Pattern of Bad Behavior and Double Agents’ Preferential Treatment for Big Tech, Prison for Free and Voluntary Trade A tool can be used for ethical or unethical purposes. This common sense understanding is likely why tech giants like Facebook are allowed to continue operating even though they unwittingly facilitate the transmission of extremely abusive and illegal content. In his recent hearing before the U.S. House Committee on Financial Services, Facebook’s Mark Zuckerberg was grilled relentlessly about such issues. Republican Representative Ann Wagner referenced a highly disturbing statistic, asserting that the majority of child sexual abuse related content reported to authorities was located on Facebook. The representative noted: I believe what is illegal offline should be illegal online … 16.8 million, as confirmed by the Department of Justice, of the 18.4 million worldwide reports of child sexual abuse material are on Facebook … these are absolutely shocking numbers. In her most recent video interview with Youtube channel Crowdsource the Truth, Lyn Ulbricht addresses this, saying “We’ve always said that making a website host liable for criminal activity on the site opens a huge slippery slope. It’s vicarious liability…and actually in a civil case this wouldn’t be allowed.” She goes on to note that Ross is the first person she knows of to be sentenced for such liability in a criminal case, for his online crypto marketplace Silk Road, and asserts: It doesn’t seem fair that Facebook and Craigslist and Amazon and Ebay — and I’m sure they know it — sell illegal goods. There was no child pornography on silk road. It was completely based on the non-aggression principle of no force and not creating victims. Freeross.org Freeing Ross Ulbricht From an Unfair Sentence Ross’s case was unsuccessful in the United States Supreme Court, and as such Lyn maintains that her organization FreeRoss.org is now focused on getting U.S. President Donald Trump to look at Ross’s case and hopefully commute his sentence or grant him a presidential pardon. She also notes there’s a “hail Mary effort” via habeas petition in New York City district court, but says that it’s “very, very hard to get” and that “what I heard is that they have their seven best prosecutors working on it against us so that’s pretty intimidating.” Ulbricht remains optimistic, however, saying “We hold out hope for everything,” and emphasizing: I really do believe that eventually Ross will be freed, but I’m just hoping it’s not so long that he has wasted in there. The video interview goes on to find Lyn discussing the pain not only of the unjustly imprisoned, like her son, but also of their family and loved ones. “Not only is it these people. It’s their families and their children,” Lyn states. “I get to know the people…and to see these children so happy to see their dad and then being torn away and sobbing and shattered…it’s got a huge ripple effect and they are statistically more likely to be part of this mass incarceration machine, and churned up in this money making, power grabbing machine that is mass incarceration now. And it’s really bad. It’s evil.” If you would like to add your voice to the Free Ross movement, you can sign the petition here, joining nearly 220,000 others calling for justice and clemency for Ross. What are your thoughts on the interview with Lyn Ulbricht? Let us know in the comments section below. Image credits: Shutterstock, FreeRoss.org, fair use. Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The Local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here. The post Lyn Ulbricht Speaks Out Against Unfair Silk Road Sentencing and Government Hypocrisy appeared first on Bitcoin News. View the full article

Digital currency markets have seen a strong price spike on Friday, adding billions to the overall market capitalization of the entire cryptoconomy. The surprise upward trend shows a few of the top-performing cryptocurrencies have gained between 10-20% in the last 24 hours. Also read: FATF Starts Checking How Well Countries Implement Crypto Standards Cryptocurrency Prices Show Major Improvement Five days ago, our last market outlook report indicated that cryptocurrency markets faced a crucial turning point and the road turned out to be southbound. The $220 billion dollar market cap slid to a low of $209 billion. On October 23, in less than 15 minutes BTC prices dropped significantly from the $7,900-8,100 range to a low of $7,365 across global exchanges. Of course, many other digital currency markets have been correlated with BTC’s movements and followed the coin’s dive downwards. This Friday there’s a touch more optimism in the air before the weekend as a slew of assets are up between 10-20% or more. In fact, the significant price spike came literally out of thin air in a matter of minutes. BTC markets are up 11% and up 4% across the last seven days. At $8,398 per coin, the digital currency has an overall market valuation of around $150 billion and a touch over $21 billion in 24-hour global trade volume. Ethereum (ETH) is swapping for $177 each and there’s roughly $7.9 billion in ETH trades today. Behind ETH, the digital currency XRP is up 5% today but is still down -0.13% for the week. Tether is still holding down the fourth largest market cap position as USDT has been a dominant force during the last few dumps. USDT has $22.5 billion in global trade volume which is $5.4 billion dollars more than BTC today. Bitcoin Cash (BCH) Market Action Bitcoin cash (BCH) commands the fifth largest market valuation with a cap of approximately $4.41 billion at the time of publication. There’s $2.23 billion in BCH trades today and each BCH is swapping for $243 per coin. BCH has gained 12.7% today and is also up 14.28% over the course of the last seven days. Since our last market outlook, BCH has jumped from the seventh most traded coin to fifth position on October 25. The largest pair traded with BCH today is USDT with 64.4% of all BCH trades. This is followed by BTC (17.89%), USD (6.73%), ETH (6.43%), and KRW (2.79%) pairs. Crypto analyst John Isige says that BCH is “defiantly positive on Friday” and further explains that at $220 a coin, BCH bulls are currently targeting the $230 range. “New higher lows pattern is forming, besides, the price is teetering above the 50 Simple Moving Average (SMA) on the one-hour chart,” Isige detailed prior to the recent price pump. “In the event, bitcoin cash manages to clear the resistance at $220, the crypto will come face to face with the resistance, a confluence created by the 61.8% Fibo and the 100 SMA at $221.94.” BCH brushed past these price zones in no time at all and Isige’s morning analysis proved correct. US Congress Members Comment on Bitcoin Again This week crypto onlookers watched the congressional hearing with Facebook’s CEO in regard to the Libra digital currency project. A few U.S. Congress members told the public that cryptocurrencies like bitcoin were very dangerous to the American economy. Representative Brad Sherman, a Democrat from California, once again exclaimed that bitcoin was a threat to the U.S. dollar. Representative Brad Sherman dislikes bitcoin. Representative Warren Davidson told hearing attendees that Facebook should have used bitcoin instead but the company already explained a while back that it believed BTC cannot scale properly. Still, other members of Congress stood by BTC and Republican Representative Patrick McHenry told Laura Shin that he’s enthusiastic about the future of bitcoin and he’s a long-term believer. “Libra is not cryptocurrency — we need to stop lumping it together with very real, very important projects that are out there like Bitcoin,” McHenry said during his interview with the podcast host. BTC Charts Show a Death Cross Scenario While many people are focused on the entire cryptoconomy, others are focused on BTC movements to get an idea of where things are headed. Recently BTC traders have noticed a death cross scenario on the charts and a few traders expect some more bleeding. The Twitter account Klondike (crypto rush) said: “Death Cross is Coming? Right — Very soon MA50 will cross MA200 from top to the bottom. Previous death cross was formed 1.5 years ago when BTC cost $9000, then it dumped to the $3000 — Just saying.” “It’s typical in TA to sell the death cross and buy the golden cross,” another crypto trader emphasized. But here it seems both are buying opportunities — Will this recent golden cross, like the last, mark the beginning of a bull run?” The death cross pattern is used in technical analysis to predict an upcoming selloff. Traditionally the short term moving average (50-day) drops below the long-term moving average (200-day). BTC’s death cross pattern has been seen since the last day in March. Extreme Fear Could Bring Final Capitulations During our last market outlook, we also explained that the Crypto Fear and Greed Index (CFGI), a multifactorial crypto market sentiment analysis, had shown the crypto sentiment at the time was reading “fear” but the data is now pointing to “extreme fear.” Some speculators believe digital currency markets have hit bottom and due to all the bearish articles and negative social media posts a strong rally may be on the cards. Lots of traders don’t think any of the recent dumps have been a surprise and that Bakkt futures investors knew exactly what they were doing. BTC has been quite predictable and if the bottom is not in it’s likely close. Because bearish sentiment has grown further, digital currency enthusiasts may still see some massive final capitulations. Google’s Quantum Computer Successfully Cracking Bitcoin Is Hogwash Google’s quantum computer has everyone on the internet in a tizzy and some naive mainstream journalists believe it could crack a slew of digital assets. “A powerful enough computer, similar to Google’s quantum computer, could solve these classical equations quickly enough to crack not only bitcoin but also the encryption that the internet is built on,” columnist Billy Bambrough writes for Forbes. A politician from Arizona Chris Hindle believes the Quantum computer developed by Google is “bad news.” Sundar Pichai (left) and Daniel Sank (right) with one of Google’s quantum computers in the Santa Barbara lab in October 2019. Blockchain developer Peter Todd disagrees and stated: “It means nothing because Google’s quantum breakthrough is for a primitive type of quantum computing.” “We still don’t even know if it’s possible to scale quantum computers,” Todd added. In 2017, Andreas Antonopoulos detailed that Bitcoin has two layers of protection against quantum computing and breaking Bitcoin’s elliptic curve would reveal the most important secret. “Do they use that to break Bitcoin?” Antonopoulos asked a crowd onstage in 2017. “The simple answer is ‘no’. We know from history that if you have such a thing, this is the most important and well-guarded secret.” Antonopoulos continued: Any time you use it you have to come up with a parallel construction story that tells the world how you managed to break that encryption without using such a thing, because such a thing doesn’t exist. Traders Continue to Measure Crypto Sentiment Coupled With Technical Indicators Overall, markets have improved since the last dump and many speculators blamed Google’s quantum computer, Bakkt’s futures, and Zuckerberg’s testimony with congress. Traders are still inclined to believe that crypto markets are at yet another crossroad and no one truly knows which way it will turn. All eyes have been focused on charts, volumes, Elliot waves, death cross patterns, moving averages and more in hopes they can outsmart the market before it moves again. Despite the keen eyes on market indicators, surprises like today’s market spike came out of nowhere. 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 12:30 p.m. EDT. Images via Shutterstock, Trading View, Bitcoin.com Markets, Getty, 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: Crypto Prices Spike Significantly In a Matter of Minutes appeared first on Bitcoin News. View the full article

Management consulting firm McKinsey & Company has published a global banking review and found that a majority of banks worldwide may not be economically viable. More than half of them still do not generate their cost of equity 10 years after the crisis and may not survive an economic downturn. Also read: FATF Starts Checking How Well Countries Implement Crypto Standards Majority of Banks ‘Destroy Value’ McKinsey & Company published its Global Banking Annual Review 2019 this week. The 58-page report highlights concerns over the health of the global banking sector. The firm groups banks worldwide into four broad categories, noting that “Every bank is uniquely bound by both the strength of its franchise and the constraints of its markets or business model.” The first category is “market leaders” which are the top 20% of banks globally that capture almost 100% of the economic value added to the entire industry. The next is “resilients” which are nearly 25% of banks that have maintained leadership in challenging markets such as Europe. The other two categories consist of troubled banks. About 20% of them are classified as “followers” which are those that have not achieved scale and are weaker than their peers, the report describes. “They are at risk from a downturn and must act promptly to build scale in their current businesses, shift business models to differentiate, and radically cut costs.” The last category, “challenged banks,” comprises about 35% of banks globally that are both sub-scale and suffering from operating in unfavorable markets, McKinsey explained, asserting: Their business models are flawed, and the sense of urgency is acute. To survive a downturn, merging with similar banks or selling to a stronger buyer with a complementary footprint may be the only options if reinvention is not feasible. McKinsey found that a majority of banks globally may not be economically viable. The firm further noted that “Risk costs are lower than ever, and yet 60 percent of banks destroy value.” These banks still do not generate their cost of equity 10 years after the crisis, McKinsey detailed, adding that “Imaginative institutions are likely to come out leaders in the next cycle” while “Others risk becoming footnotes to history.” Time Is Running out for Many Banks The report also outlines trends affecting the banking sector globally such as the increased usage of online banking, which grew by 13% from 2013 to 2018, according to McKinsey. The firm believes that there is room for further growth of more than 30% in many markets as consumers are increasingly willing to transact online. The rise in popularity of non-bank service providers has also presented new competition to traditional banking. “Consumers have become accustomed to real-time and personalized services and expect the same of digital banking solutions,” the report explains. While this has mostly impacted retail banking and asset management, the same trends have started to emerge in corporate banking as well as in capital markets and investment banking, McKinsey emphasized, elaborating: Regulators in diverse markets are also contributing to disruption in banking, especially as they take steps aimed at increasing transparency and boosting competition by lowering barriers to entry. Chira Barua, a London-based McKinsey partner and co-author of the report, calls this global banking problem a “do or die” moment, CNBC reported. Barua explained that a serious downturn could be catastrophic for a number of banks if they do not reinvent themselves. “There are steps every bank can take today to change their fortunes and begin the next cycle on a stronger footing, but time is running out. Boards and management should actively consider strategic moves now instead of the cycle forcing it on them in a downturn,” the partner remarked. Kausik Rajgopal, a senior partner at McKinsey and another report co-author, was quoted by Reuters as saying, “The industry in aggregate is not in great health, because 60% of banks don’t have returns that exceed cost of equity and we see that as a call to action.” McKinsey’s report concludes: The call to action is urgent: Whether a bank is a leader and seeks to ‘protect’ returns or is one of the underperformers looking to turn the business around and push returns above the cost of equity, the time for bold and critical moves is now. Banks worldwide have been bearing the brunt of record-low interest rates which cut into their profitability. The European Central Bank (ECB) kept its key interest rate at a record low of -0.5% on Thursday. A number of banks have had to pass on the negative rate burden to their customers, such as in the case of German bank Berliner Volksbank. Do you agree with McKinsey that a majority of banks may not survive a downturn? Let us know in the comments section below. Images courtesy of Shutterstock, the Financial Times, and McKinsey & Company. 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 McKinsey: Majority of Banks May Not Be Economically Viable appeared first on Bitcoin News. View the full article

The chairman of the State Bank of India (SBI) has spoken in favor of cryptocurrency regulation in an interview. He believes that it is necessary to regulate cryptocurrencies. Last week, the chairman attended IMF meetings in Washington, D.C., with Finance Minister Nirmala Sitharaman. Also read: India’s Popular ‘Who Wants to Be a Millionaire’ Show Gives Crypto a Boost SBI Chairman Advocates for Crypto Regulation State Bank of India Chairman Rajnish Kumar has reportedly argued for cryptocurrency regulation in India, despite the government considering a bill to ban all cryptocurrencies except state-issued ones. SBI, the largest bank in India and a Fortune 500 company, is a government-owned corporation headquartered in Mumbai. In an interview with PTI on Thursday, Kumar was asked about cryptocurrency. He replied, “the way the world is moving towards digitization, at some stage, a regulated cryptocurrency would be a better bet than an unregulated one,” the news outlet conveyed, and quoted him as saying: Let’s see. Because there’s a dark side of the internet also. There can be misuse of the digital currencies. That is why regulation is [a] must. The chairman added that efforts are being made to bring technologies like blockchain into the functioning of banks, the news outlet noted. SBI Chairman Rajnish Kumar Kumar was in Washington, D.C., last week as part of the Indian delegation led by Finance Minister Nirmala Sitharaman at the annual meetings of the International Monetary Fund (IMF) and the World Bank. At the event, the finance minister and RBI Governor Shaktikanta Das talked briefly about cryptocurrency with respect to Facebook’s Libra digital currency project. Meanwhile, the government of India has been deliberating on a draft bill to ban cryptocurrency which was submitted to the Finance Ministry back in February. The government has told the supreme court that this bill may be introduced in the next session of parliament. The court is scheduled to hear the writ petitions relating to this bill in January next year. Meanwhile, the supreme court is also addressing the banking restriction on the crypto industry by the central bank, the Reserve Bank of India (RBI). The hearing of this case is scheduled to resume on Nov. 19. Indian Banking Sector As for the Indian economy and the banking sector, the SBI chairman said “Growth can come back,” citing a number of reforms that have been implemented in the past three years. “And as a result, we are in a transition period. A lot of cleanup has happened in the corporate sector,” the chairman told PTI. Kumar explained that the biggest challenge in the Indian banking sector revolves around the functioning of the public sector banks. He opined, “recapitalization has happened in a big way but sectoral issues need to be addressed like the power, road and telecom sectors,” adding that “These sectoral issues impact the working of the banks, particularly on the asset quality front.” Recently, there have been problems with cooperative banks and public sector banks in India. About 40,000 bank employees from around 10,000 branches of various banks were on strike on Tuesday against the government’s plan to merge 10 public sector lenders into four, to create fewer and stronger global-sized banks. The one-day strike was called by two bank employees unions: All India Banks Employees Association (AIBEA) and Bank Employees Federation of India (BEFI). “In this process (merger of 10 banks) the government is likely to close around 5,000 bank branches to enable small finance banks from the private sector to occupy the space and thus is privatizing banking business,” AIBEA said. As for SBI, the bank said in a filing to stock exchanges last week that “The membership of our bank employees in unions participating in [the] strike is very few, so the impact of [the] strike on banks operation will be minimal.” Do you think the Indian government will regulate or ban cryptocurrency in India? Let us know in the comments section below. Images courtesy of Shutterstock and PTI. 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 State Bank of India Chief Says Crypto Regulation Is a Must appeared first on Bitcoin News. View the full article

Every year the world seems to be getting crazier and more people are starting to realize that it stems from oppressive government transgressions against a peaceful society. The world has noticed millions of people from France, Hong Kong, Venezuela, Indonesia and more are rising up because citizens are sick and tired of the manipulation. Because of all the money printing, hyperinflation, capital controls, austerity measures, and privacy-invasive tactics, groups and individuals have discovered that cryptocurrencies are profound tools for achieving economic freedom and the interest in permissionless money has only just begun. Also Read: Money and Democracy: Why You Never Get to Vote on the Most Important Part of Society Individuals Worldwide Are Protesting Against Oppressive Governments and the Growing Wealth Disparity Three years after the 2008 economic crisis, the Occupy Wall Street (OWS) protests started in New York City’s Zuccotti Park and quickly spread across the world. OWS protest camps were staged internationally and there were many other types of similar demonstrations like the Arab Spring protests, the British student protests, the bank bail-out protests, and the Iranian election demonstrations. All of these activists had been fighting against economic inequality and the huge wealth disparity within the world. Now, little more than eight years later, people are rising up again for the same reasons. Revolution-style protests are taking place in Argentina, Venezuela, Indonesia, Netherlands, France, India, Russia, Hong Kong, Chile, Lebanon, Peru, Haiti, Egypt and Syria, and the whole world is watching closely. Argentina The Argentines have literally watched their government destroy the economy slowly. The socialist leaders recently initiated currency controls as the country’s central planners have failed to fend off hyperinflation. In September, the Argentine government told the public the peso was extremely weak and restricted foreign currency purchases. Hundreds of thousands of Argentines took to the streets in Buenos Aires demanding that the government fix the situation. There’s also been a massive food crisis and nourishment has been hard to come by in the Latin American country. Ivan Martinez, a protester in Buenos Aires, told news outlet Al Jazeera: “The situation is dire for all of us.” “I’m a construction worker but there is no work. It’s difficult to feed my children. That’s why I come here because the president’s policies are slowly killing us,” he added. Chile Similar to Argentina, Chile is also facing serious economic problems and the country’s citizens have risen up in protest. For a while, Chile was known as Latin America’s economic powerhouse with seemingly never-ending prosperity. But this year is very different as Chile is suffering from rapid inflation and pension shortages. The government has been raising prices, despite the economic outlook, thinking that austerity measures and tax hikes will solve the problem. The capital’s subway operator Metro de Santiago raised the price of tickets to $1.15 during rush hour and Chilean politicians also increased electricity costs by 10%. Much like the OWS protests, the Chilean government doesn’t know who is behind the uprisings that can be seen throughout major cities across Chile. The media details the movement was largely organized on the internet using social media platforms. France The streets of Paris this year saw thousands of yellow vests demonstrating against rising taxes, the manipulated banking system, and the region’s unethical bureaucrats. The group known as Gilets Jaunes formed marches in Paris that saw hundreds of thousands of people in the streets. Banks were vandalized and one group of Gilets Jaunes started burning banknotes at the bill printing factory. “Starting today we start to burn foreign bills stock — The first paper ream we have here is for Israeli banknotes,” the bill factory employees stressed. “We start with this, then we burn everything — If the French government doesn’t change, all foreign countries that are waiting for their bills, will not be delivered.” It’s unknown how far the group of employees went with the burn, but the economic uncertainty in France remains dire. Hong Kong Hong Kong has seen weeks and weeks of protests that don’t seem to be ending anytime soon. The demonstrations stem from Hong Kong citizens wanting to partition themselves from Beijing as China has been in full control over the territory since the British handover. However, activists have been striking at the root of Chinese banks located in the country following massive sit-ins at the national airport and demonstrations across several locations citywide. In mid-August pro-independence activist, Chen Haotian, told protesters to initiate a bank run on China’s banks. That week, Haotian called upon the people to withdraw bank deposits. Chinese financial institutions were also attacked again on October 1, as China honored the 70th anniversary of communist rule. Dissenters besieged a Bank of China branch in Hong Kong, while also smashing the storefront glass of another Chinese bank called China Life the same day. Indonesia Citizens of Indonesia have been protesting as well, as students demonstrated against a proposed ban on extramarital sex. But just like Hong Kong, the protest reports go well beyond the controversial ban and dissenters on the streets have said government rules have been constantly overbearing. The Indonesian protests stem from a deteriorating economy and poor central planning, and the rise ups have been growing fervently thanks to social media. Civil rights, basic freedoms, and privacy are the main issues, many Indonesian protests participants will tell you. “It’s not a one-issue protest,” explained Andreas Harsono of Human Rights Watch in Indonesia. “And it’s also not a unified or organised movement.” India An economic crisis is devastating India according to various reports from news.Bitcoin.com’s Kevin Helms. It all started at the end of September when the Reserve Bank of India told 137 smaller financial institutions to limit withdrawals to 1,000 rupees ($14) and the public erupted in protest. “Depositors will be allowed to withdraw a sum not exceeding ₹ 1,000 (rupees one thousand only) of the total balance in every savings bank account or current account or any other deposit account by whatever name called, subject to conditions stipulated in the RBI directions,” the bank told the public. To this day, customers are still having problems withdrawing their hard earned money from a number of cooperative banks. Egypt Egyptians are protesting their oppressive government right now because even though the economy is doing well, the country’s bureaucrats are the only ones reaping the benefits. Just like the Egyptian rise ups in 2011, the people are looking to see certain politicians arrested and jailed for their transgressions. The three weeks of demonstrations in Egypt are no different than what’s happening throughout various countries across the world. Egyptians are upset about the draconian repression, increased political corruption, and government-imposed austerity measures. Thousands of Egyptians have been arrested and the latest demonstrations have people questioning “whether the Egyptian political system is about to collapse.” Lebanon The people living in Lebanon want a new government and word on the streets is the overreaching politicians continue to hurt the average working-class citizen. Lebanese are tired of the bureaucrats taxing the people on every single thing they do and the recent protests started after a tax proposal on Whatsapp calls. Hundreds of thousands of people took to the streets in anti-government protests against a 20-cents-per-day charge for using voice over internet protocol (VOIP) platforms. The most popular is Whatsapp in Lebanon, but Lebanese also use Facebook messenger. Lebanese activists have called for a new government and the latest demonstrations are the largest since 2005. Russia The youth in Russia have been protesting Vladimir Putin’s authority since 2012 and Putin doesn’t seem to care. Dissidents in Russia keep protesting and the police just continue to arrest the activists immediately. A protest last July saw 1,300 student arrests at opposition demonstrations. People in Russia are tired of the laws against Russian protesters and in September roughly 20,000 took to the streets to put an end to prosecutions tied to mass protests. Russian prosecutors had started an oppressive criminal case against demonstrators when people rallied against alleged rigged elections. Social Media, Encrypted Chats, Precious Metals, and Cryptocurrencies Throughout all of these events and the financial turbulence worldwide, safe-haven assets like precious metals and cryptocurrencies are being used as tools for economic freedom. Other tools such as the use of guerilla-styled social media tactics and encrypted chats are being deployed globally. Do you want to learn how digital currencies like Bitcoin Cash (BCH) can help bolster economic freedom? You can start here. You can also 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. Millions of people from other nation states like Venezuela, Netherlands, Peru, Syria, South Sudan, Zimbabwe, Haiti, and Spain are rising up against their corrupt governments as well. It’s pretty easy to see why they are growing tired of the manipulation and it’s safe to say the central planners’ band-aids and money printing tactics are not helping. What do you think about all the protests happening worldwide? Do you think cryptocurrencies can help people? Let us know what you think about this subject in the comments section below. Image credits: Shutterstock, Reuters, Wiki Commons, Fair Use, Pixabay, and Twitter. 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 The Demand for Permissionless Freedom Is Just Getting Started appeared first on Bitcoin News. View the full article

Since the beginning of widespread protests in Lebanon last week, banks and lending institutions have remained closed, fueling fears of an impending nationwide cash crisis. Attempts to assuage the concerns of suffering individuals without money or options are not proving effective, as officials scramble to address the situation against a backdrop of alleged political embezzlement and mounting public frustration. Also Read: 3 Major Signs That Precede the Fall of World Reserve Currencies We Don’t Have Your Money As banks don’t actually store customer deposits, Lebanese lenders and business officials are afraid that a sudden re-opening after being closed to the public for over a week could have disastrous consequences. “The cash of the banks are in reserve at the Central Bank or are in Treasury bills,” the president of the Worldwide Association of Lebanese Businesspeople told U.S. media. “The cash of the banks are not in the bank deposits, so no, they don’t have enough cash for everyone that would come and ask for any cash of transfer.” An official statement from the Association of Banks in Lebanon (ABL) confirmed fears that banks will remain closed, stating: “In light of the continuing volatile security situation and the closure of most roads, and for the safety of customers and sector’s employees and its properties, banks will remain closed on Friday, October 25, 2019.” The chairman of the association, Salim Sfeir, maintained that banks would reopen when protests calm down, stating: Once normalcy is restored, we are very confident that we can resume servicing our customers in full capacity. Failed Attempts to Calm Protestors The attempt at reassurance is of little comfort to many Lebanese, who want their banks to open, but are more deeply concerned with the systemic corruption of Lebanon’s politics as a whole. Attempted taxation of voice over internet protocol (VOIP) services such as utilized by the popular Whatsapp messenger, and other tax hikes and austerity measures are all part of the corrupt economic cocktail which triggered the start of mass protests last week. The Banque du Liban, Lebanon’s central bank, is also under fire for allegedly allowing corrupt politicians to embezzle money out of the country. Demonstrators most recently gathered to protest in front of the main branch of the Lebanese central bank in Beirut, regarding its alleged role in assisted embezzlement, with some Lebanese Twitter users commenting that there is a media blackout and attempt to suppress coverage of the event. A video is captioned in Arabic: The ruling of the bank shall fall. In front of the Banque du Liban. The only activity currently allowed by the nation’s other banks and lenders is the payment of customer and employee wages at the end of the month via ATM, a statement from a state news agency confirms. Similar Events Elsewhere Recent centrally imposed withdrawal limits in India are presenting similar problems, and in very dire fashion, with reports and allegations even of death resultant from inability of customers to withdraw funds from local banks. As in Lebanon, officials are trying to keep people calm, but to little avail. With bank employee strikes, depositors gathering en masse outside of bank branches, and the Indian Supreme Court refusing to entertain petitions further fueling the fire, the situation is precarious. Many cryptocurrency advocates see these events as perfectly illustrative of why crypto adoption is necessary. When an individual’s own money is inaccessible and even non-existent once given into the hands of centrally regulated lenders, situations such as those being witnessed in Lebanon and India are bound to happen. What are your thoughts on the bank closures in Lebanon? Let us know in the comments section below. Image credits: Shutterstock, Hussein Kassir, fair use. Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The Local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here. The post Lebanese Protestors Gather at Central Bank as Financial Lockout Continues appeared first on Bitcoin News. View the full article

The U.S. remains a challenging environment for centralized cryptocurrency exchanges, with major players significantly scaling back their operations and others heading for the door. The most recent casualty of America’s stringent regulatory climate is one time market-leader Poloniex, which has “spun out” from parent company Circle, spinning out of the U.S. market in the process and leaving a void for other exchanges to fill. Also read: Bakkt Announces Bitcoin Options After Record-Breaking Futures Volumes Poloniex Heads for the Door, Other Exchanges Enter Until fairly recently, American citizens could freely trade hundreds of digital assets across exchanges such as Bittrex, Poloniex, Bitfinex, and Binance. Those options have been rapidly whittled down, however, as centralized exchanges have been forced to either exclude the U.S. altogether or render the majority of their assets off-limits to traders east of the Atlantic. Following a buyout from an Asian investment group, Poloniex will continue to operate internationally, but U.S. customers will be forced to cease trading from as early as November 1. Binance and Bittrex have also been given pause to reconsider their American strategies, vastly reducing the number of trading pairs available to customers in the USA. As centralized exchanges continue to struggle with regulation and red tape, the market seems primed for alternative solutions such as decentralized exchanges and token swapping protocols that aren’t so easily cowed by regulators. It’s a lucrative space which new players are actively seeking to exploit. The Decline of Centralized Exchanges American traders find themselves particularly ill-served by centralized exchanges. Not only do they have fewer platforms to trade on, but the available options are severely crippled and a poor reflection of the true state of the crypto market in 2019. Poloniex has officially hit the iceberg and is abandoning ship, Bittrex is severely wounded and a shadow of itself. Coinbase, Kraken and the relaunched Binance US are all options, but each has limitations due to a need to appease regulators, resulting in a sub-optimal experience. Coinbase is more truthfully a brokerage in any case, Kraken is struggling to innovate in the strict regulatory climate it finds itself in, and Binance US is possibly the least satisfying iteration of the exchanges, providing only a fraction of the trading pairs enjoyed by customers elsewhere. U.S. traders are effectively operating with one hand tied behind their back while being force-fed the decaf soy milk latte of crypto. For those who want to enjoy full mobility and to drink in the “full fat” experience, two practical options remain: VPN or DEX. In the case of the Binance DEX, U.S. customers would need to use both, firing up a VPN to connect to the DEX, which defeats at least one of the reasons for choosing a decentralized exchange in the first place. Moreover, should an exchange find that U.S. customers are illegally accessing it, it could potentially freeze funds, which presents another headache. The leading Ethereum DEXs according to Defi.pulse From a legal perspective, a DEX is bound by the same rules and regulations as any centralized exchange, but if it is decentralized enough to have no formal company structure, U.S. regulators are largely powerless to act. Quite simply, if a DEX can be accessed from the U.S. then it can be traded upon. Of the existing options, Uniswap and Bancor are the leading Ethereum-based candidates, in terms of UX certainly, but also with regards to liquidity. Bancor has cracked the liquidity problem through the use of liquidity pools that enable conversion between tokens through the use of multiple smart contracts. Cotrader has built a DEX on the Bancor protocol that promises a “free, open source, unrestricted portal into the Bancor network,” enabling anyone, anywhere to trustlessly trade ERC20s. Can’t Poloniex the DEX Decentralized exchanges have been a long-held dream of the crypto community, but until recently, the drawbacks of using one mostly outweighed the benefits. Now the tide is finally turning as decentralized trading matures and key players become more adept at meeting customer expectations. The user experience has been greatly improved, order matching is faster, and slippage has been minimized through plugging into multiple liquidity pools. Further, the very nature of decentralized exchanges means they cannot be easily censored and stopped. Without a central point of attack, DEXs avoid the vulnerabilities inherent to centralized exchanges, including being at the mercy of U.S. regulators. Now ever greater numbers of Ethereum DEXs are emerging including Nash, which bridges Ethereum and NEO, Loopring’s Dolomite DEX, and Dex.blue. There are also P2P platforms such as local.Bitcoin.com which enable users to swap BCH without the need to deposit funds. Another decentralized exchange which has opened to the sort of fanfare you would expect from a John McAfee project is McAfeeDex. As one of crypto’s most prominent and colorful characters, McAfee is certainly more than capable of getting the word out on his latest venture, but whether his eponymous DEX will fill the vacuum left by centralized exchanges remains to be seen. It would be naive to think that decentralized exchanges can replace their centralized counterparts at this point in time; the fact that most DEXs are native to one blockchain only means the tech isn’t even capable of supporting seamless trading of multi-chain assets; wrapped workarounds such as WBTC are the closest substitute, currently. For U.S. traders craving the full trading experience, a combination of top 20 assets on centralized platforms and the long tail of ERC20s on decentralized protocols is about as good as they’re gonna get. Which centralized and decentralized exchanges do you think will gain market share in the US? 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 As Crypto Exchanges Exit the US, Which Trading Platforms Will Enter the Breach? appeared first on Bitcoin News. View the full article

Preparing for a change at the top, the European Central Bank has decided to keep interest rates on hold and at their all-time lows. Mario Draghi, who had his last monetary policy meeting as president of the ECB, is leaving after an eight-year term during which key rates were never raised. At the subsequent press conference, Draghi defended the bank’s monetary policy which has received a serious amount of criticism from various corners of Europe. Also read: Belarusian Bank Gets the Go-Ahead to Service Crypto Investors ‘Super Mario’ Defends Controversial Negative Rate Policy Europe’s central bank announced Thursday that the benchmark borrowing rate remains at 0% and the main deposit rate, the one banks face when leaving money at the ECB, stays at -0.5%. The record low was approved in September when the financial institution also decided to restart its stimulus program. In November, the bank will begin purchasing 20 billion euros’ worth of bonds a month and the quantitative easing is an open-ended commitment. Within the previous asset purchase program, which ended in December 2018, ECB spent over €2.6 trillion. The bank first started buying bonds in early 2015. ECB expects key interest rates to remain at their present or even lower levels until inflation in the common currency area moves closer to 2%. Despite all efforts in that direction, the indicator has persistently remained well below the target, reaching a record low of 0% in the spring of 2016. But “Super Mario,” whose fans believe he has saved Europe’s monetary union and avoided deflation, defended the bank’s current monetary policy. Improvements in the economy, he told journalists after the meeting, have more than offset the side effects of negative rates. Draghi also revealed that today’s decision has been approved unanimously, in contrast with last month’s policy change, when several governors opposed the restarting of the bond-buying program. The outgoing head of the ECB insisted that was not a problem. All central banks have disagreements when monetary policy issues are discussed which is part of the ongoing debate, he noted to the media in Frankfurt. However, ECB’s loose monetary policy has been criticized by leading financial institutions. “They’ve already turned on the money tap to the limit,” Deutsche Bank CEO Christian Sewing recently stated, stressing that very few economists believe cheaper money would have any positive effect. A couple of months ago, the head of another large European bank, ING CEO Ralph Hamers, warned of the risks lurking behind central bank money printing. Injecting more cheap money won’t bolster weak confidence, Hamers told reporters, adding that he doesn’t think QE is the right recipe as there is no shortage of money. During his Q&A session today, Mario Draghi also addressed the IMF’s concerns about long-term negative rates, emphasizing that the ECB is keeping an eye on these risks. Germany Drags the Eurozone Toward Stagnation “From all viewpoints,” an economic downturn is the main risk, Draghi warned. And there are mounting signs that Germany, where QE has been challenged in courts as a form of central bank financing of government and negative interest rates have been blamed for depleting savings, is on the doorstep of a crisis. Its industry is suffering from uncertainty surrounding global trade and Brexit. In October, for the first time in six years, German companies cut more jobs than they created, the Guardian reported. The prolonged decline in German output and exports means the Federal Republic is heading into recession, dragging the whole Eurozone toward stagnation. Mario Draghi has been calling on European governments to spend more money in order to stimulate the economy and avoid the crisis. In that, he has been joined by his successor, Christine Lagarde, who until last month was managing the International Monetary Fund and will assume the office of President of the European Central Bank on November 1. What distinguishes the two, at least on first glance, is their attitude towards decentralized digital money. While in May Draghi insisted that “Bitcoins or anything like that are not really currencies,” Lagarde views cryptocurrencies, where opportunities for saving are available, as disruptors that are having an impact on incumbents, or the commercial banks. In the current environment, she believes that: Central banks and supervisors need to ensure the safety of the financial sector, but also to be open to the opportunities provided by change. “In the case of new technologies – including digital currencies – that means being alert to risks in terms of financial stability, privacy or criminal activities, and ensuring appropriate regulation is in place to steer technology towards the public good. But it also means recognizing the wider social benefits from innovation and allowing them space to develop,” Lagarde said in a statement to the Economic and Monetary Affairs Committee of the European Parliament in September. Do you expect to see a change in the ECB policy toward cryptocurrencies under its new president? Tell us in the comments section below. Images courtesy of Shutterstock, ECB. Do you need a reliable bitcoin mobile wallet to send, receive, and store your coins? Download one for free from us and then head to our Purchase Bitcoin page where you can quickly buy bitcoin with a credit card. The post Mario Draghi Leaves European Central Bank Without Ever Raising Interest Rates appeared first on Bitcoin News. View the full article

On October 23, Bakkt’s physically-settled bitcoin futures contracts touched an all-time high with 640 BTC ($4.8 million) swapped on the exchange. Coincidentally, the futures action started after BTC prices plummeted to $7,365 across global exchanges. After the record-setting day, Bakkt CEO Kelly Loeffler revealed the trading platform will offer options on bitcoin futures this December. Also read: CME Bitcoin Futures Sees Institutional Interest and Demand from Asia Bakkt’s Bitcoin Futures See Another Record-Setting Day After BTC Plummets Digital currency markets saw deep losses on Wednesday when BTC and many other cryptocurrency prices dropped like a rock in less than 15 minutes. In one day, roughly $11 billion was shaved off the market cap of all 2,000+ cryptocurrency markets. There’s been a lot of speculation as to why prices have been so volatile, but significant liquidations on popular leverage markets like Okex, Bitfinex, and Bitmex show traders are being rinsed out like a wet rag. Additionally, people have been focused on Bakkt’s physically-settled bitcoin futures markets, which have spiked considerably during every BTC price dump. The first drop in BTC was on October 10 when prices dipped from $8,600 to $8,200. As it happened, Bakkt’s futures volumes jumped at the same time after a sluggish week. Bakkt saw its first block trade and a 796% rise in trade volume in one day. Daily summary of Wednesday's Bakkt Bitcoin Monthly Futures: 💸 Traded contracts: 640 (+653%) (New ATH 🚀) 📈 Day before: 85 🚀 All time high: 640 Follow @BakktBot for realtime updates. pic.twitter.com/c8LvcnVyoa — Bakkt Volume Bot (@BakktBot) October 24, 2019 Speculators believe that Bakkt’s physically-settled bitcoin futures are slowly bringing a new type of price discovery to the crypto market. Bakkt CEO Kelly Loeffler explained after the record volumes on October 10 that “Much like cotton and coffee futures contracts that can go to physical delivery, many of the same processes apply to the Bakkt Bitcoin Futures.” Loeffler believes it is the “dawn of a new asset class” and since then the derivatives products have gained a lot more traction. This week followed the same pattern as crypto enthusiasts and traders witnessed BTC drop in value, losing 7% in a flash. Concurrently on Wednesday, Bakkt’s futures spiked to 640 BTC from a mere 85 BTC the day before. The new action has been growing after Bakkt’s first week was extremely lackluster compared to CME’s cash-settled BTC futures and an hour’s worth of Bitmex volume. Bakkt to Introduce Bitcoin Options on Futures on December 9 Following the massive spike, Loeffler wrote the public again to say that a new BTC derivatives product is coming at the end of Q4. Bakkt plans to launch the first regulated options contract for bitcoin futures on December 9. “The Bakkt Bitcoin Options contract will be based on the benchmark Bakkt Monthly Bitcoin Futures contract and represents another important step in developing this asset class for institutional investors, their customers, and investors,” Loeffler said. Similarly to CME Group’s recent BTC options announcement, Loeffler detailed that the reason the firm is developing the new product stems from “customer feedback.” “[The Bakkt Bitcoin Options contract] is designed to hedge or gain bitcoin exposure, generate income, and offer cost and capital efficiencies,” she added. Loeffler disclosed that ICE has self-certified the contract with the CFTC and the firm is looking forward to launching the new product. Loeffler stated that the new options will offer margined contracts, and cross-margining and cash or physical settlement. Bakkt clients will benefit from the European style option, block trades, and options analytics. “Since launching the Bakkt Bitcoin Futures just one month ago, we’ve been working closely with market participants to build liquidity, create market transparency and build open interest,” Loeffler emphasized. The Bakkt executive added: Bakkt Bitcoin Futures have tight bid-ask spreads throughout U.S., European and Asian trading hours, and we continue to onboard new institutional and retail customers. What do you think about Bakkt’s recent spike in BTC futures volume and the options product being introduced? Let us know what you think about this subject in the comments section below. Image credits: Shutterstock, Medium, Bakkt, and Pixabay. Do you need a reliable Bitcoin mobile wallet to send, receive, and store your coins? Download one for free from us and then head to our Purchase Bitcoin page where you can quickly buy Bitcoin with a credit card. The post Bakkt Announces Bitcoin Options After Record-Breaking Futures Volumes appeared first on Bitcoin News. View the full article

The Lightning Network has long been touted by its proponents as a speedy, low-cost solution to Bitcoin’s scaling issues. A series of security scares and UX issues have called that vision into question however. The latest LN slip-up saw a user lose 4 BTC in one fell swoop. Also read: Hidden Lightning Network Bug Allowed Spending of ‘Fake’ Bitcoins Redditor Has a Lightning Nightmare An unfortunate LN user claims to have lost 4 BTC after force-closing a channel using an older invalid state. Cue a cascade of alternately sardonic and sympathetic comments on the thread where redditor ZipoTm confessed their calamity. How did this travesty befall the hapless ZipoTm? Well, on Lightning, the distribution of funds occurs when a channel is closed, with the protocol deferring to the most recently signed balance sheet. Or as one redditor explained, “If you force close using an older invalid state, they can take the money while it’s timelocked if their node is online.” At current prices, that mistake cost ZipoTm a cool $30,000. Force-closing on an open payment channel would have taken but a second, but the effects were irreversible and catastrophic. ZipoTm isn’t a tech newb, either, confessing “I’m working as a system administrator, have some server knowledge and I bet that everybody who has bigger nodes will face the same issues.” Lightning Strikes Twice This is the second embarrassing issue to have beset the Lightning Network in as many months. September saw the disclosure of a hidden bug that allowed the spending of ‘fake’ coins on the network. The revelation prompted Bitcoin Unlimited’s Peter Rizun to chide: “Many people pointed out how LN channel balances were claims on real bitcoins, and not actually real bitcoins themselves, and that problems like this would surface. LN proponents retorted that it was impossible for channel balances to be unbacked. LN proponents were wrong.” With the Lightning Conference having taken place in Berlin over the weekend, and given the recent release of lnd v0.8.0-beta, the LN brain trust must be alarmed by the timing of the latest disaster story. Even if ZipoTm was at fault, the tale proves that despite being ultra-quick, Lightning Network is not yet production-ready in any shape or form – and its developers will have their work cut out to restore confidence in the technology. Just a friendly reminder that BTC was crippled for this:https://t.co/ViNL8BQWow pic.twitter.com/eQJVcLIegj — Roger Ver (@rogerkver) October 23, 2019 Roger Ver weighed in on the story, quoting a tweet from Lightning Network earlier this month warning users “Don’t put more money on Lightning than you’re willing to lose.” Perhaps the calmness which ZipTim exhibited suggests he was willing to lose $30k – but that seems a stretch. One redditor could scarcely accept the apparent apathy, writing: “Tell me that’s not your whole stack? I’d be nowhere near this calm.” To fulfill its promise as Bitcoin’s scaling savior, more rigorous Lightning Network testing is required. However, it is not always possible to legislate for the carelessness of users. A fully-working Lightning Network would appear to be some way off, but lessons can be learned in the interim. Perhaps the most important is to avoid locking up a substantial amount of bitcoin in a technology which is far from flawless at this juncture. Do you think LN will ever be ready for public use? 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 Lightning Network User Confused by Protocol Lost 30,000 USD appeared first on Bitcoin News. View the full article

This is a paid press release, which contains forward looking statements, and should be treated as advertising or promotional material. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the press release. The blockchain will unlock gaming’s true value Asia’s largest blockchain festival ‘KBW 2019’ main conference ‘D. FINE’ Kevin Chu “Gamers are already ready to use blockchain technology” Sung-Won Choi PlayDapp Head of Strategy “Share items in different games with blockchain” “It’s important to see a successful game in the blockchain sector. Once the first success story comes out and it is confirmed that they can make money, many other game companies will scramble to take advantage of the blockchain,” -Kevin Chu, Forte (company founder) Many experts point to games as an area where the first popular service using blockchain technology can emerge. Given that gamers already know instinctively that virtual assets can be traded, such as item trading, the analysis suggests that blockchain-based games will be the most familiar to the general public. Blockchain game experts who attended the Korea Blockchain Week (KBW 2019) Main Conference ‘D. FINE’ held at the Grand InterContinental Seoul Parnas, Teheran-ro, Seoul on Sunday, stressed that games are most likely to create “killer applications” of blockchain technology. “Blockchain will create a new in-game economic system.” Kevin Chu, who founded blockchain game platform Forte after setting up Kabam, a famous game development studio, and selling it to Netmarble, said, “Although not many people are making money from games at the moment, many more people will make money from games if blockchain technology is applied to games,” predicting that the blockchain will create an economic system within the new games. “Blockchain technology allows gamers to trust each other and trade in-game digital items and create uniquely valuable items like Mark McGuire’s 70th home run ball,” says Forte. We have created a $ 100 million fund to combine and have already invested $ 25 million.” “We are combining games and blockchain while pursuing harmonious innovation,” said Choi Sung-won, Head of Strategy of PlayDapp, who once ranked first in blockchain games. “We are preparing e-sports services where users can trust each other and compete.” PlayDapp “Take the ownership of items to users with blockchain” In addition, Choi said, “You can connect any one game to another game. For example, you could open treasure boxes in CryptoDozer with keys obtained elsewhere or vice-versa”. Koh Kwang-Wook, general manager of PlayDapp Technology, said, “Blockchain technology can give users ownership of items and help to implement a system that can use to trust and trade items on the blockchain system.” “Gamers are users already ready to use blockchain technology”, said Forte CEO Kevin Chu. They have already owned and used virtual assets through games and have actually traded them. “Forte’s blockchain games will be released within six to nine months,” Kevin Chu added. “Since we’ve already been combining blockchain with more than 5,000 daily users and have been reliably selling for more than two years, we expect to show our first success.” Source: https://n.news.naver.com/article/014/0004304104 Contact: hanna@playdapp.io for further information. This is a paid press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release. The post PlayDApp Will Unlock the True Potential of Gaming appeared first on Bitcoin News. View the full article

The story of reserve currencies is long and stretches far back into ancient times. As modern history shows, however, the average lifespan of fiat reserve assets is just around 100 years. This means that even the U.S. dollar’s period of dominance is probably nearing its end very soon, statistically speaking. But it’s not mere guesswork, as there are distinct patterns that emerge prior to the fall of any world reserve currency. In this exploration, three of the most common will be highlighted. Also Read: Germany’s Financial Crisis Invokes 5-Year Rent Freeze Bad Omens To understand the end of any currency’s reserve status, it’s important to be familiar with beginnings, as the former is informed by the latter. A good example of this is the case of the British pound, which prior to becoming a reserve currency was turned from silver to paper with the creation of the Bank of England. The bank was created in the wake of crushing military defeat at the hands of France, and England wished to finance the creation of a more powerful navy. The central bank was thus given sole ability to issue paper currency. War and empire building would similarly play a leading role in the British pound’s consequent fall from grace. Two other common factors emerging prior to the death of reserve currencies are increased spending and easy credit, and sanctions on free trade. Source: JPM / Hong Kong Monetary Authority, 2011 War and Empire Building In each case where a reserve currency has gained and lost status as such, war and conquest have played an extremely centralized role. The Portuguese succession crisis of 1580 caused by the battle of Alcácer Quibir, meant the end of the country’s already struggling empire. Increased reliance on finance from conquered lands, excessive taxation and a shriveling domestic economy resulted in the fall of Portugal’s various currencies from world reserve grace. Spanish money would then swoop in, assuming prominence in the context of a dynastic merger with Portugal known as the Iberian Union (1580-1640). As one struggling spice empire builder thus joined a stronger one, money such as Spain’s escudo gained worldwide reserve status and, as with Portugal, colonialism’s bloody legacy of expansion and monopolistic dominance of trade routes made this possible. The Dutch-Portuguese War (1601-1663) would step up next, seeing the Netherlands challenge Iberian Union power, leveraging their government-created megacorporation Dutch East India Company and Dutch West India Company. The Iberian Union would fall apart, and the Dutch florin would take over as the world’s money. The pattern is relatively clear but in case there’s any doubt, it remains unbroken to this day. The journey from florin to USD is similar. Dutch interests were overtaken by French in a series of wars and battles including the Franco-Dutch War (1672-1678), French monetary dominance was successively challenged by the iron fist of the British East India Company and its massive ‘private’ army and then, post World War I, Britain would find itself bankrupted after attempting to hold to the gold standard throughout the conflict, unable to pay with the limited asset for the excesses of modern militarism. The newly created Federal Reserve Bank in the U.S. would show up, appearing as the fiat hero, thanks to the issuance of dollar-denominated credit to foreign countries. The National Bureau of Economic Research summarizes one report, noting: When the war began, the United States was a net debtor in international capital markets, but following the war the United States began investing large amounts internationally, particularly Latin America, thus ‘taking on the role traditionally played by Britain and other European capital exporters.’ www.usdebtclock.org Reckless Spending and Easy Credit Going hand in hand with waging war and massive empire building is, of course, spending money. The irony of the British pound’s failure as reserve currency after WWI was that it faltered because it was too economically sound. The Bank Charter Act of 1844 saw the pound adopt an official gold standard. As gold is limited, and one can’t build a massive military super power with limited assets, the pound’s economic strength in the context of easy credit warfare killed it. Like Portugal before the fall of its own world reserve currency, U.S. economic policies are now similarly debt-based and reckless, relying on loans from other nations, progressively desperate taxation, trade sanctions and a printing press to survive. China currently holds the largest portion of U.S. debt amongst foreign interests, with a $1.1 trillion bag to call. The U.S. continues to spend close to $1 trillion on war annually, in spite of this, with president Donald Trump even calling for major foreign powers like Saudi Arabia to pay for U.S. troops basically as mercenaries. Where the historic paper British pound was concerned, spending for a massive navy was needed after defeat at the Battle of Beachy Head (1690), and in 1694 William III cleverly found his way around this obstacle, creating a non-government central bank that was given sole rights to issue paper currency. If this sounds eerily familiar, that might be thanks to the current U.S. government-sponsored private bank set up in strikingly similar fashion in 1913. None of this is anything new or isolated. Regarding the historic reserve status of the Dutch florin, the Federal Reserve Bank of Atlanta reports: As a supplier of fiat money, the Bank of Amsterdam engaged in many of the same activities as central banks today. The Bank operated a large-value payment system; it provided liquidity to the Amsterdam money market through repo-like arrangements; it engaged in open market operations to stabilize market conditions; it lent to selected counterparties; and it returned seigniorage to its sponsoring government, the City of Amsterdam. Repo like arrangements are the norm today, centuries later. The report goes on to detail that “The end of currency’s reserve status is a rare event, and the florin’s downfall teaches that preeminence of a central bank does not necessarily guard against fiscal overexploitation or a sudden loss of market confidence.” Trade Wars and Sanctions As recently reported, “China has reduced its holdings of U.S. debt since November 2013, when it held $1.3 trillion. It wants to allow its currency, the yuan, to rise. To do that, China had to loosen its peg to the dollar. That made the yuan more attractive to forex traders in global markets. China’s economy is also slowing down due to President Donald Trump’s trade war.” With the lifespan of USD reserve hegemony approaching a statistically expected death rattle, many economists view the Chinese yuan as the next big contender for world reserve currency status. After all, the historical formula is all there: perpetual U.S. warfare, reckless lending, and hubristic sanctions on free trade both domestically and abroad, shriveling the U.S. economy and starving others of much needed resources. The battle for dominance of oil echoes history’s battle for sugarcane and spice. Even food is quite literally being hoarded and withheld from starving individuals just as it was in times past. Sanctions cutting off Iraq, Iran and Venezuela from free trade, and tariff battles between the current world superpowers rage on, unabated. No different, in essence, from the seafaring mayhem of history. However, borders are now disappearing. Money can now be digitized. The next world reserve currency could be China’s anticipated and already announced digital yuan. Should that be the case, a completely surveilled world reserve monetary currency would not be hard to imagine. That is, unless individuals demand sounder options not as readily subject to the the whims of kings and queens, politicians or central banks and their borders, and not the tools of modern day colonialists wishing only to establish tax farms on planet Earth. What do you think will be the next world reserve currency? Let us know in the comments section below. Images courtesy of Shutterstock, fair use. Did you know you can verify any unconfirmed Bitcoin transaction with our Bitcoin Block Explorer tool? Simply complete a Bitcoin address search to view it on the blockchain. Plus, visit our Bitcoin Charts to see what’s happening in the industry. The post 3 Major Signs That Precede the Fall of World Reserve Currencies appeared first on Bitcoin News. View the full article

All eyes are on the German economy which was once perceived as stable and strong. However, the financial state of affairs has been tumultuous and Berlin’s state cabinet recently agreed to a five-year rent freeze to help curb the rising housing costs in the country. Moreover, Bundesbank just published a monthly report that explains how Germany’s economic output is in a deep slump and the country’s monetary system has been beaten by Brexit fears and trade wars. Also read: Liquidity Difficulties in China: Second Bank Bail-Out Now Reality Bureaucrats from Berlin Agree to a Rent Freeze Many European nations have been focused on the Federal Republic of Germany and its economy. Economists and bankers from the region have been warning that the outlook is looking dreary for the rest of the year and into 2020. According to Germany’s central bank, the German economy has already fallen into the start of a recession. Bundesbank’s monthly report said the “German economic output could have decreased slightly in the third quarter of 2019,” and emphasized that it deflated by 0.1%. The eroding nature of the decline was “mainly due to the fact that the export-oriented industry continued to weaken,” Bundesbank said. The news follows all the warning signs that the next big financial crisis begins in Germany after the greater European Union saw a massive reduction in production. Bundesbank’s recently published report highlights that auto industry revenue in Germany dropped 1.5% between Q2 and Q3. Deutsche Bundesbank. Now the leftist coalition within Berlin’s government has decided to agree to a five-year rent freeze. Reports claim that the three parties in Germany, the Greens, Social Democrats, and Die Linke, all believe a rent freeze is needed to battle housing costs that have spiked considerably in recent months. So much so that renters have called the rent inflation “rent madness” as rates have risen by 2.8% annually for close to two decades. The rent freeze plan was designed and promoted by the coalition of politicians including Katrin Lompscher of Die Linke. A rent freeze basically entails creating a price ceiling throughout the region and no increases in rent are allowed until the expiry date. Rent price controls are an extremely controversial practice and historically Keynesian economists have pushed the idea for decades. Germany has a long history of rent controls and started a system of “second-generation rent controls” in 1989 and again in 2015. The legislation known as the “Mietpreisbremse” or “rent brake” was supposed to stop rising rents. Germany, April 6, 2019, a demonstration on the Berlin Alexanderplatz against “rent madness and repression.” A Rebirth of Communist Ideals A few weeks ago, Leonid Bershidsky said the new rent control plan floating around the coalition of German bureaucrats was a case of “communist amnesia.” Bershidsky asserts that Germany’s capital city regulations “would greatly empower bureaucrats and boost a black market in housing.” Germany’s new rent freeze will ban increases for a five-year period except on housing that is already receiving subsidization and new construction homes. In order to make sure landlords are following procedure, tenants must have the city sign any new rent contracts. Berlin landlords are not too pleased with the socialist government stepping in on rent control and German economists believe landlords will skip much-needed renovation plans. For instance, because landlords won’t be able to raise the rent, most will likely choose to skip improving the property until the rent freeze ends. Moreover, by the end of the expiry date, people think that the rental prices will spike considerably by reflecting actual supply and demand. With central planners manipulating the economy, safe-haven assets like precious metals and digital currencies have risen in value. Are you looking for a secure way to buy bitcoin online? Start by downloading your free bitcoin wallet from us and then head over to our Purchase Bitcoin page where you can easily buy BTC and BCH. Germany’s economy has been an integral part of the EU as a whole and the Eurozone. Watching the German economy can provide a telltale sign that something is wrong and signals from European central banks support this. In the U.S., the doom and gloom economic forecast is the same, where Trump’s trade war has been affecting markets and the Federal Reserve has been participating in overnight repos and slashing interest rates. Extreme economic concepts are now on the table as global financiers are discussing helicopter money, rent control, and basic income. A few analysts believe the warning signals this year have bolstered safe haven assets like precious metals and cryptocurrencies. The start of a slowing German economy a decade after the 2008 crash is a sure sign to some that a financial crisis is looming. Some even believe the days of rotten bureaucrats, filthy fiat, and ‘too big too fail’ central planners are numbered and a new era of financial freedom is upon us. What do you think about Berlin’s government agreeing on a five-year rent freeze? Do you think cryptocurrency can help? Let us know what you think about this subject in the comments section below. Image credits: Shutterstock, Juergen Nowak, Wiki, Fair Use, Bundesbank, and Pixabay. Do you need a reliable bitcoin mobile wallet to send, receive, and store your coins? Download one for free from us and then head to our Purchase Bitcoin page where you can quickly buy bitcoin with a credit card. The post Germany’s Financial Crisis Invokes 5-Year Rent Freeze appeared first on Bitcoin News. View the full article

A bank in Belarus has effectively gotten the green light to process transfers related to digital assets. DFS, an affiliated company of Belveb Banking Holding’s member VEB Technologies, was recently registered as a resident of the High Technologies Park. The country’s special economic zone has already become home to many crypto businesses. Also read: Bittrex International Pulls Out of 31 Markets Citing Regulatory Uncertainty Crypto Investment Platform to Pay Dividends to Bank Accounts DFS LLC is the operator of Finstore.by, a platform for token sales and trading. Belveb Bank will provide its clients with regular banking services, the Belarusian news outlet Dev.by reported. Corporate entities and private individuals will be able to purchase tokens from various coin offering projects that Finstore hosts. The first such sale begins on Nov. 1, 2019 and will be conducted on behalf of Belwest, a shoe manufacturer and supplier founded by the German concern Salamander. Finstore will offer 63,000 of its digital tokens and sell them for euros, Russian and Belarussian rubles. The platform plans to issue its own token next month which will be used to facilitate future deals. Investors buying the coins from this and other offerings will enjoy a fixed income from their investments, much like with bank deposits, at least before interest rates in Europe entered subzero territory. They will also be able to withdraw their dividends to a regular checking account or a bank card account. Belarus legalized crypto-related activities with a presidential decree signed by Alexander Lukashenko in late 2017. Decree №8 “On the Development of the Digital Economy” came into force on March 28, 2018 to regulate crypto exchange services, initial coin offerings, mining operations, and smart contracts. A five-year tax holiday and other incentives were introduced for HTP-registered crypto entities. The decree provides legal definitions to key terms used in the crypto space. For example, ‘cryptocurrency’ has been described as “bitcoin, other digital sign (token) used in international circulation as a universal means of exchange.” To improve the decree’s implementation, Minsk adopted new accounting standards for the industry and later expanded the applicable regulatory framework. HTP Registers 129 New Businesses Including Crypto Companies Finstore is designed for buying and selling digital tokens representing securities – not exactly cryptocurrencies. But it is not the only digital asset trading platform operating out of Belarus. At least two other full-fledged crypto exchanges provide services to traders and investors under the preferential terms of their registration with the Belarus High-Tech Park. Currency.com, for instance, facilitates the purchases and sales of decentralized cryptocurrencies such as bitcoin cash (BCH) and bitcoin core (BTC) with a choice of fiat currencies, including the euro, the U.S. dollar, the Russian and the Belarusian ruble. Another Belarus-regulated platform supporting trading pairs with BCH is Iexchange. The number of crypto and blockchain businesses applying for HTP residency is constantly growing. According to the park’s website, 684 entities are currently registered in the special economic zone. Earlier this month, its supervisory board accepted another 129 new members, including crypto companies like Belveb’s affiliate DFS. Do you think we are going to see more traditional banks involved in the crypto industry? Tell us in the comments section below. Images courtesy of Shutterstock. Do you need a reliable bitcoin mobile wallet to send, receive, and store your coins? Download one for free from us and then head to our Purchase Bitcoin page where you can quickly buy bitcoin with a credit card. The post Belarusian Bank Gets the Go-Ahead to Service Crypto Investors appeared first on Bitcoin News. View the full article

They might not be shouting it from the rooftops, but fiat payment gateways are no longer the enemy of bitcoin. Hostilities have ceased, the bad blood has been let, and today the fiat and crypto worlds are bridged and doing business. Despite the two systems sporting opposing aims and architecture, many centralized payment processors have learned to live with decentralized currency. Also read: How Fiat Money Fails: Deconstructing the Government’s Paper-Thin Promise From Enemies to Frenemies In the early days of Bitcoin, traditional fiat payment systems were an unwitting friend of cryptocurrency. Paypal was the on-ramp for the first bitcoin exchange, bitcoinmarket.com, though it was a short-lived affair. Cold feet on the part of fiat payment systems, once they caught wind of exactly what bitcoin was, saw crypto payments banned altogether, but in the years since, the tide has turned. Today, centralized and decentralized payment systems are more closely aligned than ever. It would be stretching the truth to claim that the overlords of traditional finance are enamored with crypto, but they have at the very least turned a blind eye to the practice of cashing in and out of crypto using fiat gateways. For most bitcoiners, begrudging acceptance from centralized systems is good enough. Some payment solutions have gone further though, extending a warm embrace to crypto assets, as the following examples show. Skrill Founded in 2001 as Moneybookers Limited, then rebranded a decade later as Skrill, it took the online payment platform a further seven years before it started allowing users to buy and sell cryptocurrency, in the summer of 2018. CEO Lorenzo Pellegrino gushed about crypto when the announcement was made, venturing that cryptocurrency trading was “exciting and dynamic” and that Skrill’s digital wallet service lent itself to the environment. Skrill’s cryptocurrency offering lets users from over 30 countries trade digital tokens including BTC, ETH, LTC, BCH, XRP, and ZRX, after partnering with an unnamed exchange to facilitate the service. Conversion from 40 fiat currencies into crypto is swift, and requires no additional verification. It’s a far cry from the company’s circumspect attitude to crypto in the years since bitcoin launched in 2008. A Skrill blog from earlier this year demonstrated the company’s evolving outlook: “If the past decade was cryptocurrencies’ proof of concept stage, the next decade will see them become rooted in the everyday fabric of life.” Bullish words. Paypal It’s possible to deposit and withdraw from crypto exchanges such as Coinbase and Gocoin using Paypal, and has been since Paypal formed a partnership with the companies in mid-2015. The online payments giant was also on board with Facebook’s new Libra cryptocurrency, and although it withdrew from the project earlier this month, it’s evident that Paypal is now pro-blockchain. Consider, for example, the company’s filing of a patent last year to increase cryptocurrency payment speed by utilizing secondary private keys, thereby cutting wait times for transactions between merchants and consumers. Although bitcoin isn’t a major focus at Paypal, Chief Financial Officer John Rainey notes that the company “have teams clearly working on blockchain and cryptocurrency” and “want to take part in whatever form that takes in the future.” Credit Card Credit card giants Visa and Mastercard have blown hot and cold on crypto, and a number of banks that issue their cards have banned cryptocurrency purchases altogether. Through third parties that operate on the financial rails controlled by the credit card giants, however, bitcoiners can cash in and out of crypto using credit and debit cards. Companies like Simplex are also helping in this respect. The Israeli-based payment processor allows crypto merchants to accept payments via credit card, backed by machine-learning algorithms that eliminate fraud, providing protection against chargebacks. Earlier this year, Binance – the world’s largest cryptocurrency exchange by trade volume – linked up with Simplex to enable purchases with credit and debit cards. Bitcoin.com also has a similar deal in place, allowing BCH and BTC to be bought directly from the homepage with the aid of Simplex. Debit Card The last two years have seen the emergence of crypto debit cards that combine a cryptocurrency wallet with a conventional debit card that can be funded through liquidating cryptocurrency directly within the app. There have been speed bumps along the way, such as when Visa subsidiary Wavecrest withdrew service for several crypto card companies, but the sector has flourished since that upset. Centralized crypto wallet services such as Wirex and Revolut are now joined by a decentralized counterpart in Monolith. It enables users to retain custody of their crypto right up until the point that they liquidate it to load it onto their debit card. Monolith News.Bitcoin.com spoke to Monolith’s CEO Mel Gelderman about the challenges of maintaining a decentralized wallet service with a centralized component. He explained how the U.K.-based Monolith took part in the Financial Conduct Authority’s regulatory sandbox and runs a Visa approved card program through its partners. “It has not been easy to develop the compliance and operational capabilities required to run crypto-fiat gateways,” Gelderman conceded. “However, crypto is steadily becoming more palatable to traditional financial services players.” The New Norm Today it’s much easier to purchase cryptocurrency than it was 10, five or even two years ago. The aforementioned firms are not the only payment processors keen to satisfy their customers by integrating with decentralized finance, incidentally. Last year, Square, best known for its payment-processing hardware such as chip and PIN readers, was licensed to offer New York residents the ability to transact bitcoin on its Cash App, causing shares of the company to hit a 52-week high. There are still concerns over excessive KYC, financial surveillance on both the fiat and blockchain sides, and the propensity of fiat gateways to withdraw service at the drop of a hat. Nevertheless, the cryptosphere finds itself in a far stronger position than at any time in its short history. If centralized and decentralized payment systems can learn to co-exist, everyone stands to benefit. Do you think traditional payment processors are more accepting of cryptocurrency these days? 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 Centralized Payment Systems Learned to Accept Decentralized Cryptocurrency appeared first on Bitcoin News. View the full article

Fiat money has a surprisingly short lifespan. The almighty U.S. dollar currently serving as world reserve currency is not exempted, in spite of all proclamation that it cannot fail. Throughout history, fiat money has failed over and over again, where sound assets like gold have survived. Ruling out acts of god and unforeseen circumstance, the number one reason fiat fails is due to unsound economic policy. This is where gold and bitcoin stand to truly prevail. Also Read: Credit Suisse Is Latest Bank to Charge Clients for Cash Deposits Good as Gold There’s a reason no one hears people saying “good as fiat” to describe something trustworthy or valuable. Gold has been used as currency for thousands of years, since at least 700 B.C., when it was favored by Lydian traders. The oldest fiat money still being used today has only been around for a little over 300 years, beginning in 1694 with the founding of the Bank of England. Prior to its use as currency, gold was used in barter and trade all over the world, in the absence of political mandate. By contrast, “fiat” means “by decree” or “let it be done” and depends on the force-backed laws of a state or monarch to demand its use, or else. Slowly At First, Then All At Once pic.twitter.com/8tOeiaOMkl — PlanB (@100trillionUSD) October 20, 2019 Exponential Failure A recent tweet by user @100trillionUSD makes an interesting observation. When fiat failure strikes, it tends to happen first as a gradual build, and then spiral out of control suddenly, skyrocketing to oblivion. The German gold mark was a gold-backed currency for the empire from 1873-1914. After the gold standard was abandoned in 1914, the paper mark would soon become worthless, hyper-inflating itself to toilet paper tier within 10 years. This is an extreme case, to be sure, but even where the most reliable fiat money is concerned, it always devalues into relative worthlessness at some point. As mentioned, the current title holder for longest lasting fiat currency is the British pound sterling, at 325 years old. Compared to its initial value in silver, when it was created to help finance war in 1694, it has lost almost 100% of its value. Reichsbank Berlin, October 1923 The devaluation story of the U.S. dollar is no less dismal. As noted by one prominent inflation calculator: According to the Bureau of Labor Statistics consumer price index, today’s prices in 2019 are 2,493.53% higher than average prices throughout 1913 … The 1913 inflation rate was 2.06%. The current inflation rate (2018 to 2019) is now 1.71%. If this number holds, $1 today will be equivalent in buying power to $1.02 next year. So the real question with fiat is not how stable is it, but “How long until it’s suitable for kindling?” A much cited but highly disputed 27-year fiat lifespan study found that 20% of the 775 fiat currencies examined failed due to hyperinflation, and that 21% were destroyed in war. 24% percent were reformed through centralized monetary policy. This means that the majority of failure or discontinuance of fiat is by way of government intervention, warfare and economic policy. Emphasizing the inability to wage large scale warfare in the absence of this paper fiat, dollardaze.org states that “Initially, money is a tangible commodity. That commodity is then concentrated by those who issue paper receipts merely representative of the underlying commodity. The reason for doing this is to lend out more in paper receipts than what can be legitimately backed.” In other words, the powerful amass hard assets via scammy, obfuscated pilfer, while the poor suffer hardship, forced to use the garbage currency being offered instead. Section of the Hanke-Krus Hyperinflation Table Modern Fiat Faceplants For a highly detailed list of modern cases of hyperinflation, the Hanke-Krus Hyperinflation Table is an eye-opening resource illustrating the unreliable nature of government money. Though now slightly dated and not including recent examples like Venezuela, the data is presented in starkly direct fashion. In August 1945, prices in Hungary doubled in only 15 hours. Brazil experienced a daily inflation rate of 2.02% from December 1989 to March 1990. Even Austria is not immune historically, the crown hyper-inflating for almost a year from October 1920 to September 1922. The Hanke-Krus study is a sobering reminder of what happens when sound economic principle is ignored. As Austrian school economist Ludwig von Mises put it: The most important thing to remember is that inflation is not an act of God, that inflation is not a catastrophe of the elements or a disease that comes like the plague. Inflation is a policy. And further: “The gold standard did not collapse. Governments abolished it in order to pave the way for inflation. The whole grim apparatus of oppression and coercion — policemen, customs guards, penal courts, prisons, in some countries even executioners — had to be put into action in order to destroy the gold standard.” Whether or not one agrees with the proclamation of the renowned economist is immaterial in the face of the economic reality. Fiat money is, was and always will become worth less over time by its very nature. Bitcoin and crypto stand to remedy this if leveraged properly and by a large and determined enough market. Judging by the current regulatory climate and history itself, however, fiat won’t fall without a fight. Which fiat collapse do you find most remarkable? Why? Let us know in the comments section below. Images courtesy of Shutterstock, fair use. Did you know you can verify any unconfirmed Bitcoin transaction with our Bitcoin Block Explorer tool? Simply complete a Bitcoin address search to view it on the blockchain. Plus, visit our Bitcoin Charts to see what’s happening in the industry. The post How Fiat Money Fails: Deconstructing the Government’s Paper-Thin Promise appeared first on Bitcoin News. View the full article

The strict financial regulator in Malaysia is trying to help the local fintech industry scale up and attract new investors. As part of that trend the Malaysia Securities Commission is recognizing the right of cryptocurrency exchanges such as Luno to serve local customers. Also Read: Credit Suisse Is Latest Bank to Charge Clients for Cash Deposits Malaysia Approves Digital Asset Exchanges Luno, the London-headquartered company formerly known as Bitx, has announced on Tuesday that it has been given approval by the Malaysia Securities Commission to operate as a recognized market operator in the Southeast Asian country. Luno is one of only three initial companies that the Malaysian regulator allowed to register when it began the process in June. Luno has now been found by the regulator to have satisfied all the required conditions for approval. “We’ve been working closely with regulators and banks from day one and we’re now excited to be able to provide customers the ability to buy, sell and trade crypto on our platform,” Luno general manager of Southeast Asia, David Low said. “This is a significant achievement and shows the importance of digital assets today and the long-term value of cryptocurrency.” The Malaysia Securities Commission was hosting its annual fintech conference on Tuesday, focused on the regulator’s move to broaden the opportunities for a new generation of investors to raise capital or achieve their financial goals. The regulator was happy to note that the Malaysian fintech ecosystem is now home to alternative financing platforms as well as a diverse range of ventures such as digital asset exchanges. “We are pleased to note that these platforms continue to serve a number of MSME [micro, small and medium enterprises] sectors including high tech, education, retail, F&B and consumer product; and have attracted many new investors especially young investors aged 35 and below,” stated Datuk Syed Zaid Albar, Chairman of the Securities Commission. Strict Approval Process When new regulations came into force in June there were nineteen other companies operating in Malaysia during the application process, besides the three that were finally allowed to register, which were all then ordered to cease operations. Before that twenty-one other exchanges were ordered by the regulator to cease operations on March 1. The rate of approved to non-approved exchanges makes the process highly selective and limits the trading venues open to Malaysians. Marcus Swanepoel, CEO of Luno, commented on Wednesday: “The announcement yesterday of more exchanges being granted Recognized Market Operator (Digital Asset Exchange) status in Malaysia is important as it is a regulator looking to work with and develop digital assets for the benefit of businesses and communities. As regulatory oversight increases around the world this will help stabilise and develop the sector.” Luno claims to have around 3 million users worldwide, spread across 40 countries. The company also has local offices in South Africa, Indonesia, Nigeria, Singapore and Malaysia, with a workforce of over 300 employees around the world. It recently added bitcoin cash trading to the platform following feedback from its client base, making BCH only the third cryptocurrency available for trading on the exchange. What do you think about Luno receiving regulatory approval in Malaysia? Share your thoughts in the comments section below. Images courtesy of Shutterstock. Verify and track bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. Also, keep up with your holdings, BCH and other coins, on our market charts at Bitcoin.com Markets, another original and free service from Bitcoin.com. The post Malaysia Regulator Approves International Crypto Exchange Luno appeared first on Bitcoin News. View the full article

The Indian banking sector is facing multiple challenges. Customers of several cooperative banks are still struggling to withdraw their money, and deaths have been reported in connection with withdrawal restrictions. Meanwhile, some 300,000 state-run bank employees are on strike against what the bank unions call “cold-blooded murder of six banks.” Also read: Indian Finance Minister Answers Crypto Questions at IMF Meeting PMC Bank Crisis Worsens Customers of Mumbai-based Punjab and Maharashtra Cooperative (PMC) Bank, which has 137 branches in six states, are still struggling to withdraw their money. It has been almost a month since the central bank, the Reserve Bank of India (RBI), first placed regulatory restrictions on the bank, but depositors say their troubles have only worsened, PTI reported Monday. According to CNN-News18, RBI officials met a delegation of PMC Bank customers, 100 of whom protested outside of central bank’s headquarters Sunday. “We gave them an ultimatum till October 30. None of us will celebrate Diwali,” a depositor told the news channel. However, RBI Governor Shaktikanta Das is currently abroad and is not available to address the issue. Moneycontrol elaborated: The delegation also demanded Rs 25 lakh [~$35,245] as compensation for the kin of those who have died due to the PMC crisis. The situation has become so tense that several depositors reportedly died. Murlidhar Dharra, an 83-year-old PMC Bank customer, died on Friday. His family claims they could not raise money for his heart surgery due to the withdrawal restriction. Two PMC Bank customers died of a heart attack, and one allegedly committed suicide. Depositors outside a PMC Bank branch. Even though the RBI has raised the withdrawal limit to 40,000 rupees and Lok Sabha member Kirit Somaiya tweeted Wednesday that “needy” PMC Bank customers can apply to withdraw an additional 50,000 rupees, depositors say it is still not enough to live on for six months and demand all of their money back. They are struggling to pay essentials such as school fees for their children, medical expenses, employees’ salaries, taxes, and electricity bills, as their checks have bounced. Meanwhile, the fraud probe into PMC Bank has deepened. Supreme Court Denies Hearing A Public Interest Litigation (PIL) was filed in the Indian supreme court last week challenging the RBI circulars restricting withdrawals at cooperative banks. The petition sought directions to protect the interests of around 15 lakh (1.5 million) PMC Bank customers whose money is blocked due to the alleged scam. However, the court refused to entertain the petition. “We are not inclined to entertain this petition under Article 32 (writ jurisdiction). Petitioner can approach the high court concerned for appropriate relief,” NDTV reported the supreme court judges as saying. Other Banks With Similar Restrictions Besides PMC Bank, there are several other cooperative banks that have been placed under similar regulatory restrictions by the central bank. Customers of Pune-based Shivajirao Bhosale Sahakari Bank have been stuck with a 1,000 rupee withdrawal limit since May. The Times of India reported last week that the customers of this bank “held a demonstration outside the bank on Monday, [and] complained of step-motherly treatment because Shivajirao Bhosale Bank has just 1.3 lakh depositors compared to PMC Bank’s 8 lakh customer base,” adding: Unlike the Mumbai-based bank which got an administrator immediately, the Pune-headquartered cooperative saw its operations being taken five months after RBI placed restrictions. Finance Minister Nirmala Sitharaman also talked to the RBI governor on behalf of PMC Bank customers. Some Shivajirao Bhosale Sahakari Bank customers are even having difficulty withdrawing the allowed 1,000 rupees. Vivek Bhatia, a 59-year-old tailor from Pune, told the news outlet that he has been unable to withdraw any amount from his Rs 18.5 lakh life savings because the bank is non-operational, the publication conveyed. Other banks that have been placed under similar restrictions with the 1,000 rupee withdrawal limit include Shri Anand Co-operative Bank, Kolikata Mahila Cooperative Bank, Shivajirao Bhosale Sahakari Bank, and Millath Co-operative Bank. Bank Consolidation Strike On top of all the problems caused by RBI restrictions, a large number of bank employees in multiple cities went on strike on Tuesday against the government’s plans to consolidate the sector through mergers. Prime Minister Narendra Modi’s government has vowed to cut the total number of state-owned banks from 27 to 12, Reuters detailed, noting that 10 of the banks will be merged into four. State-owned banks account for almost two-thirds of the countries’ banking assets and much of the banking sector’s nearly $150 billion of stressed loans. According to the news outlet, nearly 300,000 employees of Indian state-run banks stayed home from work across the country and took part in protest marches. Services such as cash deposits, withdrawals, cheque clearances, and ATM operations were all affected. PTI reported the number of bank workers on strike as high as 4 lakh (400,000). Bank employees on strike on Tuesday. Image courtesy of The Economic Times. “Government may call it a merger but, in reality, it is cold-blooded murder of six banks,” according to a release by the bank unions. All India Bank Employees Association (AIBEA), the oldest and largest national trade union center of bank employees in the country, was quoted by The Economic Times as saying: In this process (a merger of 10 of the banks) the government is likely to close around 5,000 bank branches to enable small finance banks from the private sector to occupy the space and thus is privatizing banking business. Nobel laureate Abhijit Banerjee met with Prime Minister Modi on Tuesday. Meanwhile, Nobel laureate Abhijit Banerjee urged Prime Minister Modi to reduce the government’s stake in state-run banks to below 50% during a meeting with him on Tuesday. The Massachusetts Institute of Technology professor shared the 2019 Nobel Memorial Prize in Economic Sciences with his wife, Esther Duflo, and Michael Kremer for their experimental approach to alleviating global poverty. “The current banking crisis is frightening and we should worry about it a lot because we see a repeated pattern,” he told the media on Tuesday. “We should be vigilant about this. I think we need important and aggressive changes.” What do you think of the Indian banking sector’s situation? Let us know in the comments section below. Images courtesy of Bloomberg, Business Today and The Economic Times. Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here. The post Bank Crisis Spreads in India – Deaths, Strike, Supreme Court Denial appeared first on Bitcoin News. View the full article

The Beijing-based Bitmain Technologies and DMG Blockchain Solutions announced the launch of a 25MW mining facility in Rockdale, Texas. The new mine aims to bolster Bitmain’s international expansion which will soon expand to 50MW of processing power and then extend the operation’s capacity to more than 300MW. Also read: The Silk Road Investigation: A ‘Pattern of Bad Behavior and Double Agents’ Bitmain Begins Developing Texas Mining Farm On October 21, the Chinese application-specific integrated circuit (ASIC) manufacturer Bitmain revealed the introduction of a new mining facility located in Texas. According to the company, the launch will commence with 50MW but soon aims to be the “largest bitcoin mining facility in the world.” Clinton Brown, Rockdale’s lead project manager for Bitmain told the press that the firm is thrilled to launch the new data center and that the move is a milestone toward “Bitmain’s global expansion plans.” “The stable and efficient energy resources in Texas are fundamental to the inevitable scale of growth for the cryptocurrency mining industry,” Brown insisted during the announcement. #Bitmain completes construction of 50MW mining facility in #Rockdale #Texas. (https://t.co/Sztme8Fokf) The project is set to create jobs in the area and plans to work with the local district to provide education and training on blockchain technology and data center operations. pic.twitter.com/z5W7b7eNei — Antminer_main (@Antminer_main) October 21, 2019 Executives from the firm DMG were at the opening ceremony alongside representatives from Bitmain, Rockdale Mayor John King, and Milam County’s Judge Steve Young. The site will be located in the former Alcoa plant and it will be the third cryptocurrency mine project created by Bitmain in the U.S. Bitmain started the project in 2018 and worked out the logistics with Rockdale officials in order to benefit from the old plant. “This mining facility marks a major milestone in the development of the mining farm industry. We are proud to partner with Bitmain, the leading innovator in this sector,” said Sheldon Bennett, COO of DMG. The news follows the recent launch of next-generation bitcoin mining rigs manufactured by Bitmain which produce 64 terahash per second (TH/s) to 73TH/s. Bitmain also recently revealed its launching a World Digital Mining Map (WDMM) that aims to connect mining hardware owners with mining farm owners. Bitmain’s cofounder Jihan Wu recently sat down with Bitcoin.com’s CEO Stefan Rust and discussed how the firm was doing this year. After releasing multiple mining rigs in 2019 and an artificial intelligence (AI) chip, Wu insisted “It’s a good year for Bitmain.” Moreover, there were multiple reports months ago that explained progress has become sluggish at the Rockdale site where Bitmain started constructing. The old smelter park transformed into a mining facility paused for a period with roughly 14 employees and a few hundred mining rigs. Bitmain to Help Re-Invigorate Rockdale Things have changed and the mining project is now in full swing giving Rockdale a second industrial rebirth. In the early fifties, the Texas region was known as “The Town Where It Rains Money.” The smelter energy provided a lot of jobs but a few decades later, much of the region’s industrial facilities were abandoned. At the opening ceremonies on Monday, Mayor John King said he believes the company will help with local jobs. “Bitmain will be the future for developing new industry projects in Rockdale, Texas. We are excited to continue to build partnerships together,” King declared at the event. Bitmain further revealed that the company has developed a “new design patent.” Rockdale mining facility. Bitmain will be obtaining power from the Electric Reliability Council of Texas (ERCOT) which handles the electric grid operations in the region. Both DMG and Bitmain will work together making sure the facility is efficient as they plan to work with the local workforce commission, the Rockdale MDD. Bitmain detailed that the Rockdale MDD will help bolster the project. Additionally, the mining firms will use “preferred vendors” in the town while continuing the data center’s construction. “Bitmain has plans to work with the local school district to provide education and training on blockchain technology and mining data center operations,” the company’s announcement concluded. “In doing so, it hopes to contribute to the future growth of the surrounding communities.” What do you think about Bitmain’s mining facility launch in Texas? Let us know what you think about this subject in the comments section below. Image credits: Shutterstock, Twitter, Bitmain, and Pixabay. 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 Bitmain Aims to Build a 300MW Texas Mining Farm appeared first on Bitcoin News. View the full article

The idea of starting your own podcast is undeniably appealing. Not only do you get to sound off about a topic that’s close to your heart, but if you opt for the host-and-guest format, you get to engage in stimulating debates with interesting people. But before you rush off to order a USB mic and start booking your crypto heroes, there’s a few things you should know about podcasting. Also read: How to Trade Crypto in Person Safely The Pros and Cons of Podcasting The podcast’s appeal partially stems from the fact that it can be done without the aid of third parties: if you’re reasonably tech savvy, you can write, record, edit and upload every episode by yourself. This elimination of intermediaries aligns well with bitcoiners, which goes some way towards explaining the proliferation of crypto podcasts. Some of these factors compelled Matt Aaron to create Bitcoin.com’s very own podcast, which made its debut in February 2018. Since then it’s gone from strength to strength – and for Matt, it remains a labor of love. “The pros definitely outweigh the cons,” he says. “Hosting a crypto podcast is an excuse to spend an hour picking the brains of someone you admire or can learn from, a person who might otherwise have no interest in speaking with you. On air, and a lot of times off-air, you can glean insights that help inform your thinking about cryptocurrency.” He adds: Podcasts have become an increasingly popular medium, and many people prefer to learn about blockchain by listening to diverse perspectives rather than toiling through dense books. “Of course, the cons can’t be ignored,” continues Aaron. “The sheer number of podcasts in this space can be daunting for anyone looking to launch their own. The need for an original angle is becoming stronger too, because there’s only so many times you can interview the founder of “X” coin or that legendary crypto personality and mine new material.” Recent episodes of Matt Aaron’s Humans of Bitcoin podcast Find Your Niche Matt’s right: you need to find a niche. Are you doing a series on the history of bitcoin, focusing on flaws in the current financial system that crypto solves? Perhaps you’re interviewing movers and shakers, from programmers and dapp developers to UX designers and entrepreneurs. The important thing is that you have a good idea what your podcast is all about, and who you’re pitching it to. While it might be tempting to make no topic or subtopic off-limits, be aware that there is a ton of competition out there. As such, you’ll need to think long and hard about how you differentiate yourself from other crypto-themed podcasts. It might be with a particular brand of humor, in-depth conversations with high-profile guests (how’s your contact book?) or aggressive marketing strategies, but overcoming the saturation is no picnic. You should also perform due diligence on any potential guest. As Matt Aaron explains, “Many people in crypto end up being exposed as frauds or embroiled in some sort of legal snafu. If that happens and they’ve been a guest on your show, your name will appear next to theirs in a Google search. It’s bad publicity your podcast could do without. So, vet your guests properly and make sure they’re unlikely to be the next crypto meme.” Write an Episode Outline Once you’ve decided on your niche, it makes sense to come up with an outline for your first ‘season’ or batch of episodes. Focus on providing your audience with valuable and entertaining content and bringing a fresh perspective to the topic. Ask yourself: what is a crypto-curious listener getting out of subscribing? If you struggle to answer that question, you’re in trouble. Having a clear episode outline will also prevent a form of mission creep, whereby you wind up losing sight of what it is you’re trying to achieve and resort to simply ranting about the latest happenings in the blockchain space. Having a clear, coherent structure is the best way of engaging listeners. Essential Tools of the Trade So what about the practicalities of actually creating and launching a blockchain podcast? How much work is required, and do you need to recruit a producer? First things first, invest in a good-quality USB microphone – this will save you from having to use your computer’s built-in mic. Thankfully, the explosion of podcasts in recent years has led to the creation of dedicated apps that do a lot of the work for you, from cutting out audio gaps to recording each contributor’s audio on separate tracks, thereby making it easier to edit during the final mix. One great tool – particularly if your podcast is a question-and-answer format with a remote guest – is Squadcast. You hit record, conduct your interview and end up with a high-quality, lossless audio recording. Video recording also comes as standard with each package so you can upload your podcast to Youtube, and up to three guests can feature on the same episode. As for editing your recording, there are few better software suites than Hindenberg, which was originally built for radio journalists. Nifty features include automatic audio leveling, sound effects, royalty-free music tracks and noise-reduction capabilities. There’s also a clipboard feature, which is great for organizing audio material. It’s like having a sound engineer sitting by your side the whole time. Hindenburg is offering a 30-day free trial, so it’s worth experimenting to see if it suits your needs. There is no shortage of options when it comes to online podcasts editors either: Alitu, Audacity, Spreaker and Garageband to name just a few. If you have the time and inclination, there’s no harm in giving each one a go. Sometimes it really does come down to personal preference. Although Matt Aaron acknowledges the multitude of helpful apps available, he says budding podcast producers should not lose sight of the work required. “Getting the sound quality and editing just right is trickier than it might appear, it requires some trial and error. You want to be on the ball from the first episode, as no-one wants to be known for poor production standards. If there are any faults in the audio, it’s another excuse for the listener to switch off and find one of the many alternatives out there.” Marketing and Monetizing Your Podcast Once you’ve completed the fun stuff, it’s time to think about how you’re going to get your podcast out there. The cryptosphere is a hive of activity, and people get their information from various places: blogs and forum threads, Youtube interviews, tweets, Telegram, books. There’s no denying the popularity of podcasts though, so the question is, how are you going to publicize yours? There are a few traditional marketing strategies of course, like churning out SEO blog content or throwing your money into pay-per-click advertising. Needless to say, you should also get some social media channels up and running to get the word out. Interact with others in this space, leverage guests’ audiences by compelling them to share the podcast with pull-quote images and video/soundbite snippets, run giveaways, and run paid promotions. It’s not a bad idea to also submit your podcast to podcatchers, aggregators, influencers, journalists and bloggers covering your beat. It takes a lot of work, but busily promoting your podcast is the best way to find an audience. At this stage, you can monetize the endeavor by bringing partner brands on board, identifying possible sponsors using advertising networks like Midroll or Advertisecast. Alternatively, invite listeners to contribute on a pay-what-you-can model using a service like Patreon. Getting a crypto podcast off the ground and then achieving success with it are two different things. But avoiding common mistakes is a good basis to start from. Despite the saturation, there’s never been a better time to launch a podcast centered on crypto themes, so if you have the passion and commitment coupled with realistic expectations, what are you waiting for? Get out there and start casting. What are your favorite crypto podcasts? 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 Start a Crypto Podcast appeared first on Bitcoin News. View the full article

Kathryn Haun, a general partner at U.S. venture capital firm Andreessen Horowitz, has revealed in recent interviews how she helped take down the Silk Road when she was working for the Attorney General’s office. According to her accounts, the U.S. government agency also asked her to help “start shutting down technology before it’s built.” Haun’s story also highlights how the U.S. government’s evidence against the Silk Road transpired because of double agents. Also read: FBI Agent Admits to Stealing Silk Road Bitcoins Seized by U.S. Marshals Kathryn Haun Was Asked to Disrupt Bitcoin in 2012 During the last few years, governments worldwide have been cracking down on digital assets like on and off-ramps that are tied to fiat. Regulations are far stricter than they were in the early days, when governments first heard about cryptocurrencies like bitcoin. Andreessen Horowitz general partner Kathryn Haun has a lot of experience working with government agencies when it comes to the cryptocurrency economy. She witnessed the takedown of the Silk Road darknet marketplace and before she started she was even asked to help dismantle the Bitcoin network. During an interview with CNBC, Haun revealed how a colleague mentioned the up and coming technology to her in 2012. “‘We have this perfect assignment for you – there’s this thing called Bitcoin and we need to investigate it,'” Haun told the news outlet on October 6. “That was the first time I’d ever heard of bitcoin,” she added. Former Silk Road investigator Kathryn Haun. Attempts to shut down Bitcoin by agencies such as the U.S. Department of Justice were fruitless ventures, Haun detailed. “It would have been akin to saying ‘let’s go prosecute cash,'” the former prosecutor said. “What we heard with Libra were the same criticisms [about Bitcoin],” Haun remarked. While discussing the similarities between her early days with Bitcoin in contrast to Libra, she continued: They got more attention because of the high-profile nature of the project and the fact that Facebook was involved. I think it would be a really dangerous thing, and frankly a dangerous precedent to start shutting down technology before it’s built. Uncovering the Silk Road and Parallel Investigations During another recently published interview with Haun, the Andreesen Horowitz partner spoke with Hayman Capital founder Kyle Bass about her role during the prosecution of the Silk Road marketplace. “The Silk Road was making millions of dollars a month and they were generating a lot of revenue,” Haun stressed. She doesn’t remember exactly how the Silk Road case got opened in New York, but she recalls Senator Chuck Schumer read a Wired article that prompted him to wonder why the marketplace was allowed to exist. “So the Southern District of New York, which is another Attorney General’s office – I was in the U.S. Attorney General’s office in San Francisco – SDNY opened the case and was trying to figure out who was behind the Silk Road. At this same time, a D.C. office was also trying to figure out who was running the Silk Road — And there were parallel investigations going.” Haun discusses the Silk Road investigation with Hayman Capital founder Kyle Bass. Haun explained that the government had task forces comprised of many alphabet soup agencies: “We’re talking the FBI, CIA, Secret Service, DEA, ATF, and the U.S. Marshals,” she underlined. “One task force, the one out of Washington D.C., they had an undercover agent. That undercover agent was able to befriend the person running the Silk Road. All the government knew at the time was that the person running the Silk Road went by the nickname ‘DPR’ for ‘Dread Pirate Roberts’ from the movie ‘The Princess Bride.’ So they didn’t know who DPR was, but the undercover agent actually set up an attempt to buy the Silk Road.” The Foundation of Evidence from the Silk Road Case Stemmed from Double Agents According to the former prosecutor, the undercover agent struck many online conversations with DPR and proceeded for the next two years to engage and message with the moniker. “A lot of things went wrong on both sides — From the Silk Road side, 2013 was a really bad year for the Silk Road because what you had was a person who had an online persona called ‘Death from Above,’” Haun said. “Death from Above starting extorting DPR and saying ‘if you don’t pay me hundreds of thousands of dollars in bitcoin I’m going to reveal your identity to law enforcement.’ Meanwhile, there was another online persona who went by the moniker ‘French Maid.’ French Maid was selling DPR information about the government’s investigation. French Maid told DPR the Feds are closing in and the end is near and you are about to be had.” Haun added: The government didn’t know any of this then and it all came out after the fact. In the midst of this, something else really bad happened in 2013 — About 21,000 bitcoins, which is today in excess of roughly $150 million dollars, went missing overnight from the Silk Road. From Silk Road vendor accounts and from what you might consider the petty cash account — Although there’s nothing petty about 21,000 bitcoins. Haun’s story begs the question: How much evidence would the government have without the use of double agents and rogue officers manipulating the investigation? During the remainder of the interview, Haun discussed Curtis Green’s role with the Silk Road and said Green showed the Feds “how the Silk Road worked, how to log into it, how to reset vendor PINs and passwords, and of course [Green] had that access because he was the key administrator.” Haun also said Green even gave his laptop to the Feds to keep as evidence. The discussion with Kyle Bass shows how government agents claim to have dismantled the Silk Road from the words of a former Federal prosecutor. However, Haun wasn’t involved with the DPR takedown first hand, but she was very much involved with investigating rogue agents. At first, when she heard about the first rogue agent she took it with “a grain of salt” and actually said it was a shame the tipster was smearing a Federal agent’s good name. But the tipster was insistent and she decided to look into it. “We saw that this agent who we got the tip for was liquidating hundreds of thousands of dollars, if not millions a month, in cryptocurrency. So I thought it’s probably another undercover operation and there’s probably a legitimate explanation,” Haun explained. From left to right — Carl Mark Force, Shaun Bridges, and Curtis Green all played a ‘double agent’ role in the Silk Road investigation. Curtis Green was a Silk Road moderator who was told by the U.S. government to fake his own death. Haun concluded that the rogue agent was caught telling exchanges to destroy transaction histories. Because undercover agents who are running undercover operations shouldn’t be asking for evidence to be destroyed, it raised a red flag Haun said. Her team found a “pattern of really bad behavior to put it mildly” and in the end, it turned out the rogue agent was both online personas: French Maid and Death from Above. Essentially, the interview with Haun shows that Curtis Green, Shaun Bridges, and Carl Mark Force were acting as double agents during the entire investigation. The discussion with Haun further highlights how the Silk Road case was quite messy and many constitutional laws were broken by rogue agents in order to disrupt the site. Still, the U.S. government, with no thought toward constitutional law and a complete disregard for true justice, based all their Silk Road evidence on the shameful ethics of Curtis Green and two rogue cops — Carl Mark Force and Shaun Bridges. It goes to show that the many unanswered questions surrounding the case, like how government agents found the Silk Road’s IP address, which wasn’t due to a faulty ‘captcha’ screen as claimed, were likely due to perfidious agents gone rogue. What do you think about the recent interviews with Kathryn Haun? Let us know what you think about this subject in the comments section below. 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