roadrunner

Cryptocurrencies have been steadily gaining popularity in Moldova, a former Soviet republic that is economically and politically on a crossroad between East and West. The local crypto community has recently announced developments reflecting this trend – a new exchange and a new token have been presented, both labeled “Made in Moldova”. Add to that an indirect permission from the central bank. Also read: Another Post-Soviet Jurisdiction Welcomes Crypto Miners 10 Cryptos, 8 Currencies Drachmae Market will be trading 10 digital coins initially, including leading cryptocurrencies like Bitcoin Core (BTC), Bitcoin Cash (BCH), and Ethereum (ETH), as well as a couple of Moldovan tokens like Zozo coin and Drachmae’s own DTMI token. The trading platform also supports transactions of eight fiat currencies, among which euros, dollars, rubles, and of course, Moldovan leu (MDL). Drachmae Market, set up with the help of the local Digital & Distributed Technology Moldova Association (DTMA), has been announced as the country’s first crypto exchange. It is already accepting subscriptions. DTMA was created in the beginning of this year to facilitate the implementation of distributed ledger technologies in the country’s economy. It is also closely working with Moldovan authorities and regulators on a proposal to establish a special tech zone with tax breaks and incentives for blockchain startups. A similar project has been realized successfully in another former Soviet republic – Belarus, where a growing number of fintech companies are now taking advantage of their membership of the Hi-Tech Park in Minsk. The news about the launch of Drachmae Market, which came out from a major blockchain and cryptocurrency event hosted by the Moldovan capital, was covered by both local and foreign crypto media. On Friday, the World Blockchain and Cryptocurrency Summit in Chisinau welcomed participants and speakers representing communities from countries across Europe and Asia, from Lithuania to India, according to Cryptovest. Founder and president of DTMA Lee Gibson Grant announced at the conference that the exchange had received a notice from the central bank, which could be interpreted as an indirect permission to operate legally. In the letter presented at the summit, the National Bank of Moldova basically says that as there is currently no legal framework regulating cryptocurrencies in the country, no authorization is needed to provide crypto trading services, Mybusiness.md reports. At the same time, Drachmae Market will have to comply with the country’s anti-money laundering and counter-terrorism financing laws because it offers trading pairs with fiat currencies. This means its operator is required to share financial data about money flows and processed transactions. Central Bank Softens Stance The correspondence also indicates some softening of the central bank’s position on cryptocurrencies. Last fall NBM released a statement to clarify its stance warning that cryptos are neither issued nor guaranteed by a central bank or a government agency. The bank acknowledged that the “virtual currency represents digital value” and is “used by individuals or legal entities as an alternative to cash,” but stressed that “it is not tied to the national currency.” “The use of virtual money is not regulated in Moldova. [Cryptocurrency] is not a form of electronic money in the context of the Law on Payment Services and Electronic Money, and the activities of issuing [digital coins] and executing transactions with them are not controlled by the competent authorities,” NBM pointed out. The financial authority listed a number of risks, to which crypto users are exposed, including fraud, high commissions, loss of funds, market volatility, and last but not least – no guarantees that merchants would accept cryptocurrencies. Cryptos in Moldova, however, are becoming more popular with both users and merchants. For example, a large furniture store in Chisinau announced in December that it had introduced bitcoin payments. Moldova still has to catch up with strong regional competitors. Ukraine has a rapidly developing crypto sector whose expansion recently prompted the country’s securities commission chief to state: “The point of no return has been passed.” Moldova’s own separatist region, the unrecognized republic of Transnistria, has adopted crypto friendly legislation that legalizes mining and provides incentives for foreign investors in the sector. Pro-crypto sentiments are also strong in Moldova’s closest neighbor, Romania. Do you expect Moldova to quickly catch up with its neighbors in its crypto development? Share your thoughts in the comments section below. Images courtesy of Shutterstock. Do you agree with us that Bitcoin is the best invention since sliced bread? Thought so. That’s why we are building this online universe revolving around anything and everything Bitcoin. We have a store. And a forum. And a casino, a pool and real-time price statistics. The post Moldova with New Crypto Exchange and a Token appeared first on Bitcoin News. View the full article

Steve Eisman, the American investor best known for having shorted collateralized debt obligations before the 2008 financial crisis, doesn’t see what is the real value of cryptocurrency. He reportedly holds that the popularity of the phenomena comes down to only two factors, speculation and money laundering. Also Read: Only 8.5% of Bitcoin and Cryptocurrency Traders Are Female Steve Eisman Doesn’t Get Crypto Steve Carell Speaking in front of about 1,500 people at the CFA Institute’s annual conference in Hong Kong on Monday, Eisman even questioned the rationale for cryptocurrencies to exist. “I don’t see the purpose of it. What value does cryptocurrency actually add? No one’s been able to answer that question for me.” In a panel discussion and a following interview, Eisman revealed that he has never invested in nor shorted any cryptocurrencies. “I don’t touch it. I don’t know what I’m looking at…I have no interest,” he explained. “I don’t understand why regulators haven’t regulated it more heavily,” Eisman added according to the Wall Street Journal. Eisman was a lead character in Michael Lewis’ bestselling 2010 book about the build-up to the US housing bubble “The Big Short: Inside the Doomsday Machine.” He was played by comedian Steve Carell in the 2015 movie adaptation which showed how he made millions correcting betting against CDOs when everyone else was blinded by greed. In the case of cryptocurrency however he seems to go with the flow, joining the likes of Warren Buffett and Charlie Munger who bash what they insist not to understand. The Value of Bitcoin Michael Lewis Unlike Eisman, the author of the book who made him famous does seem to think he knows the value cryptocurrency adds. Back in November 2017 we reported that Lewis commented, “Bitcoin is money without a central authority, and money without a central bank or government, [without] needing a government. So what drives its value? The distrust of central authority and the feeling that maybe the governments aren’t going to work. There’s definitely a link between whatever bitcoin is doing and the chaos in the federal, in the US federal government,” he explained. Besides The Big Short, Lewis is author of Liar’s Poker, Moneyball, Flash Boys and other best sellers. Maybe Eisman should just call his old acquaintance to get a private lecture on the subject of cryptocurrency. How would you explain the value of bitcoin to Steve Eisman? Share your thoughts in the comments section below. Images courtesy of Shutterstock. Do you agree with us that Bitcoin is the best invention since sliced bread? Thought so. That’s why we are building this online universe revolving around anything and everything Bitcoin. We have a store. And a forum. And a casino, a pool and real-time price statistics. The post Steve Eisman of ‘The Big Short’ Fame: What Value Does Cryptocurrency Actually Add? appeared first on Bitcoin News. View the full article

According to a recent report, cryptocurrency miners from China have been flocking to regions in Southeast Asia like Vietnam, Myanmar, and Cambodia. However, a relocated Chinese miner based in Cambodia says miners trying to find safe havens in other Southeast Asian countries are having difficulties, and losing money every month due to residents complaining and unreliable power. Also read: Zimbabwe Bans All Cryptocurrency Activity, Businesses Have 2 Month Grace Period Chinese Miners Who Relocate Are Finding Other Regions Located in Southeast Asia More Difficult Mining in China is still allowed but there have been rumors of government crackdowns, and because of this speculation many mining operations based in the country have begun to relocate. Some operations who still seek out cheaper Chinese electricity tariffs moved to the border towns in Yunnan, but lots of Chinese miners have relocated to other areas in Southeast Asia like South Korea, Vietnam, Cambodia, and Myanmar. Although government officials and residents living in these regions have been giving miners a hard time according to a relocated miner named Zhang Han. Zhang relocated to Cambodia from China and found that local rent is quite cheap, a 500 square-meter large shack only charges 500,000 riel ($100) per month, and you can hire two local young labors at the cost of only $100. But Cambodian mining operations have posed other problems for Chinese miners. Zhang says that he had miner friends that already “occupied” the suburbs of Cambodia and Myanmar. He did the math and found areas in Southeast Asia still offer much cheaper electricity than other countries worldwide. However, the miner explains he is not too happy with the move and states “I really regret it.” At first, Zhang found that Cambodia was expensive in some areas of operations, but less expensive in other areas when compared to other regions. “Compared with other miners who choose Vietnam and Myanmar, the electricity in Cambodia is slightly more expensive, but it costs less in other expenses,” Zhang explains in his recent interview. It costs almost the same in Cambodia as industrial electricity price in China, 1.3 yuan ($20 cents) per kilowatt-hour (kWh), but you can take advantage of electricity theft from streetlamp facility with the help of some insiders. Accessory costs and maintenance is much more expensive than China. Some things can be 3X the price says Zhang. Accessories Costs and Operations Maintenance is More Expensive Abroad for Relocated Chinese Miners The accessories costs and operations maintenance is what gave his mining operation headaches, Zhang explains. “Maintenance and accessories are very big problems, and it can also be said that the cost of supplies is very high,” Zhang details. “But hardware maintenance is a challenge, it would cost you a great sum – at least 3 times higher than the cost back in China, especially in hot days when entering March. Buying parts here is really a big headache, we have no choice but to purchase them from China, which would take days or even weeks to have it available in operation here.” At times we turn to local miners for help, while they would seize the opportunity to ask for unfairly high price for a tiny fitting. Many areas in Southeast Asia experience lots of power outages and Zhang’s operation deals with electrical outages frequently. However, Zhang says you can take advantage of electricity theft from streetlamp facility with the help of some “insiders.” Chinese Miners Also Face Unfriendly Local Competitors and Residents Who Might Report Electrical Theft Zhang further realized that Cambodia suffered from significant power outages where there is no electricity for a whole day or even longer. The miner says in order to mitigate the problem, if an operation happens to have a connection with a power company “insider,” they can steal power from a nearby streetlight. However, local residents may report this method to the authorities, and Zhang says residents are not too friendly towards Chinese miners right now. Additionally, local miners and financial institutions backed by Western countries are also not pleased with Chinese miners relocating to these countries. “Apart from the local residents and miners, institutions funded by western countries are also unfriendly to us — They are all trying to squeeze us out of here — And I’m considering that,” Zhang concludes. What do you think about relocated Chinese miners having issues in other areas of Southeast Asia? Let us know your thoughts on this subject in the comments below. Images via Shutterstock, and SOHO.com Now live, Satoshi Pulse. A comprehensive, real-time listing of the cryptocurrency market. View prices, charts, transaction volumes, and more for the top 500 cryptocurrencies trading today. The post Chinese Miners Are Finding Relocation Difficult in Southeast Asia appeared first on Bitcoin News. View the full article

On its 6th birthday, Coinbase received high praise from Shapeshift’s Erik Voorhees. He Tweeted, “Coinbase remains the most successful and important company in the crypto industry.” Arguably, that is very much the case. The San Francisco-based cryptocurrency exchange with its barebone menu of offerings, combined with its easy user-interface and relatively smooth onboarding (almost no upfront deposit needed), provide an envious business model. That’s not to write the company is without faults, as it has many. It might not even be the future of retail crypto access, and perhaps it shouldn’t. Also read: Zimbabwe Bans All Cryptocurrency Activity, Businesses Have 2 Month Grace Period Coinbase is Easy, Light, Feisty “Today is Coinbase’s sixth anniversary,” wrote COO Asiff Hirji. “We’re celebrating six incredible years working toward our mission to help create a more open financial system for the world! […] We are in the early days of our mission and there is still so much to do […] Have to know when to follow the rules, when to bend them and when to push to change them. Breaking them is neither ethical nor sustainable.” It’s probably less of an exchange proper and more of a conservative cryptocurrency bank. It might be fair to simply label it a broker (without bids, asks, limit orders, margin trading, etc). Coinbase, founded six years ago this week, is arguably the most important company, regardless of its technical classification, within the space. It alone is responsible for introducing millions and millions of Americans to the wild phenomenon that is decentralized currency speculation. Offering bitcoin core (BTC), bitcoin cash (BCH), ether (ETH), and litecoin (LTC), its sparse choices work to underwhelm those new to speculating on cryptocurrency. The format is light and only requires a linked bank account. Without the bother of having to hold and maintain decentralized currency, users can simply use the Coinbase client and trade for fractions, sometimes as low as $2.00. Fees, of course, apply. At the time of available statistics, the Northern California broker had something like 13 million users (Altana Digital Currency Fund), some days back in 2017 clocking them at 100,000 new sign ups every twenty four hours. For a little while there, Coinbase was a top ten downloaded application in the Apple Store. Its yearly revenue eclipsed venerable legacy houses such as Charles Schwab. Embarrassment of Riches It continues to nab top professional financial sector talent such as Asiff Hirji from TD Ameritrade; to that end, it poached Facebook Messenger’s David Marcus to join its Board, and the two are exploring ways to exploit the social media platform’s giant user base in terms of blockchain technology (probably a proprietary token is in the works, but that’s a guess). Heck, even its alumni go on to do big things: Charlie Lee of Litecoin fame was a former director of engineering. Merchants Dell and Expedia use it as a point of sale processor. For trading professionals, its Coinbase Exchange was rebranded to Global Digital Asset Exchange (GDAX), becoming one of the earliest to offer ether to financial pros. Brian Armstrong For better or worse, Coinbase is the most prominent version of mainstreaming the crypto revolution. It’s young (CEO, Brian Armstrong, is barely in his mid 30s), feisty, ambitious, cocky, and sporting for market share. Its flounders are largely an embarrassment of riches: demand so great the company’s system crashed a few times during the runups of 2017, and its customer inquiries languished at times in ten day backlogs. Mr. Armstrong fired back, “There’s so many people rushing into the space, if it’s a bit of speculation, I’m O.K. with that. But we can’t guarantee the website’s going to be up exactly when you need it. Everyone needs to take a deep breath.” That particular hiccup hasn’t been put away altogether just yet, as in January of this year alone formal complaints to the Consumer Financial Protection Bureau rocketed by more than 100%. Almost half were filed regarding “money not available when promised,” which is no small matter. Peril’s of Centralization In the scaling debate, Mr. Armstrong came firmly down on the side of big blockers, and, according to various sources, holds most of his crypto wealth in ether. Under his leadership, the company embraced economic reality, choosing when to fight on principle and where to give-in. For example, it was one of the notable in its class to snag a controversial Bitlicense from New York. Howls of sell out and capitulation could be heard far and wide. But this move signaled to potential investors and the broader financial community the company was less strident and more pragmatic in the all-important ‘business sense.’ It would regain some of its punkier credibility, at least for a time, when the United States’ taxman came calling. The Internal Revenue Service (IRS) evidently can read eye-popping price headlines. As market leaders such as BTC rose exponentially, so did United States citizens’ tax obligations. Yet nearly no one was complying. History will show the company did fight back, but history will also show it lost, having to hand over customer information for those who moved more than $20K in crypto (small percentage of its users). Then again, when New York’s top cop poked and prodded at exchanges, asking they account for this and that, Coinbase jumped as high as asked, issuing a very detailed letter. Kraken, on the other hand, went sideways at the presumption and hubris of such an invasion. The contrast could not be starker, and the more principled in the community noticed … as it did when it shut off access for Wikileaks, a seemingly purposeful separation from crypto’s anarchic roots. Such are the perils of centralization in the sense there are doors to kickdown, masters to please other than market demand. For the more cypherpunk among us, it is critical to acknowledge the truth. Coinbase is good people, but Coinbase is also in bed with the same folks who prompted crypto’s birth. That won’t do, and won’t do by a lot. If censorship resistance and decentralization are fundamental pillars, then we should look for exchanges in those images. Leave traditional banking schemes itching to please governments to their future: slow death. Is Coinbase an overall positive or negative in the crypto community? Tell us in the comments below! Images courtesy of Shutterstock, Coinbase, Twitter. Need to calculate your bitcoin holdings? Check our tools section. This is an Op-ed article. The opinions expressed in this article are the author’s own. Bitcoin.com does not endorse nor support views, opinions or conclusions drawn in this post. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the Op-ed article. Readers should do their own due diligence before taking any actions related to the content. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any information in this Op-ed article. The post Coinbase Remains the Most Successful and Important Company in the Crypto Industry appeared first on Bitcoin News. View the full article

This weekend the leading cryptocurrency security platform, Bitgo, announced the launch of custodial storage solutions for institutional investors. The new custodial program aims to offer a multi-level suite for digital asset security in partnership with the firm Kingdom Trust. Also read: Markets Update: Cryptocurrencies Lose Steam During the Weekend Bitgo Offers a Secure Custodial Platform for Institutional Investors The Palo Alto-based firm Bitgo is now offering institutional investors custodial services due to a partnership with Kingdom Trust. The news follows the recent announcements from the Wall Street giant Goldman Sachs launching a cryptocurrency product, and companies like Coinbase offering services to institutional clientele. The latest institutional grade suite offered by Bitgo and Kingdom Trust provides custody services like treasury controls, advanced security solutions, and 24-7 monitoring. Multi-level services for the new custodial products include self-managed custody, institutional custody with multi-sig wallet, and the Bitgo offline vault. The vault stores keys offline and when tethered to a multi-signature wallet it can be programmed to require co-signers. “Secure your digital assets in an offline multi-signature vault in minutes — An offline vault generates and stores private wallet keys on a clean air-gapped computer,” Bitgo’s offline storage white paper explains. To spend funds from an offline wallet securely, you can sign transactions with your private keys offline using Bitgo Offline Vault — This means your private keys are never online or linked to a computer connected to the internet. Bitgo Will Face Competition from Others Providing Services to the Crypto-Wealthy The company’s website which details the new custodial services says the products are more robust due to the partnership with Kingdom Trust. The services will be backed by individuals with digital asset solutions expertise, while also meeting the regulatory compliance requirements around custody of digital assets. The news follows the company’s implementation of seven new cryptocurrencies including Bitcoin Cash, Litecoin, Ether, Ripple and Royal Mint Gold. Further, the Bitgo revealed its enterprise-grade Ethereum wallet has seen a lot of growth and on April 17 Bitgo added support for ERC-20 tokens. The latest Bitgo custodial services offering digital asset security for institutional clientele will also compete against a product offered by a former Bitgo employee Jameson Lopp. The former Bitgo engineer will also provide institutional grade security for cryptocurrency millionaires. The firm Casa also aims to serve the crypto-wealthy was launched six months ago raising $2.1Mn USD from groups like Boost VC, and Compound. Bitgo’s CEO Mike Belshe stated back in January when the firm first acquired Kingdom Trust that he believes Bitgo’s new services marry technology with security. “Bitgo and Kingdom are building products for the future – marrying the new technology with the safety and controls all investors require,” Belshe explained at the time. What do you think about Bitgo offering custodial solutions for institutional clientele? Let us know in the comments below. Images via Shutterstock, and Bitgo. Now live, Satoshi Pulse. A comprehensive, real-time listing of the cryptocurrency market. View prices, charts, transaction volumes, and more for the top 500 cryptocurrencies trading today. The post Bitgo Launches Institutional Grade Custodial Services Suite appeared first on Bitcoin News. View the full article

Chicago Mercantile Exchange & Chicago Board of Trade (CME Group Inc) announced a partnership with Crypto Facilities Ltd to list the price of ether in real-time dollars. Information from major cryptocurrency exchanges Bitstamp and Kraken will be used to determine the CME CF reference rate. This could be a hint of things to come for the second most popular crypto in the world, including possible US futures. Also read: Zimbabwe Bans All Cryptocurrency Activity, Businesses Have 2 Month Grace Period CME Strikes Deal for Ether-Dollar Reference Rate “CME Group’s experience and knowledge in bringing the Bitcoin Reference Rate and Real-Time Index to market,” Chicago Merc’s website pithily stated, “has enabled us to launch an Ether-Dollar Reference Rate and Real-Time Index […] and the CME CF Ether-Dollar rates will provide a standardized reference rate and spot price index to bring confidence to any trading strategy. Major cryptocurrency exchanges Bitstamp and Kraken provide the pricing data to bring our dependable rate to the market.” In the final quarter of last year, to much fanfare and hype, CME, along with crosstown rival Cboe, created a first of its kind: crypto futures. The experiment in running bitcoin core (BTC) in more mainstream financial contexts has been decidedly mixed. Some analysts even believe futures were a significant drag on digital asset prices due to allowing speculators to short BTC. CME’s Tim McCourt explained, “The Ether Reference Rate and Real Time Index are designed to meet the evolving needs of this marketplace. Providing price transparency and a credible price reference source is a key development for users of Ethereum.” Aiming for Institutional Investors CME is among the most trusted derivatives market makers in the world, as is a well-known player. Crypto Facilities Ltd is a crypto trading platform. The two have teamed to offer the CME CF Ether-Dollar Reference Rate (Ether Reference Rate) and Ether Real Time Index. Crypto Facilities will rely upon Kraken and Bitstamp order books as principal references. It hopes to add something like a daily benchmark in US fiat, real-time. Rollout is expected by CME Group and Crypto Facilities’ respective websites May 14, but formal CME market data platform distribution won’t begin until June 4th of this year. London-based Crypto Facilities’ Timo Schlaefer noted, “Ether, the second largest cryptocurrency, experienced incredible adoption and growth in 2017, evolving into the leading blockchain for smart contracts. We are excited to be contributing to the strong community that has developed around the Ethereum network by providing a reliable reference rate and real-time Ether-Dollar price.” Earlier this week, Crypto Facilities detailed its other partnership with Chicago-based Akuna Capital and London-based market maker B2C2 in an effort to make ethereum futures contracts. The triumvirate hopes it can bring liquidity to ethereum futures. Aimed at institutional investors, such futures would allow long and short positions without dirtying hands (having to hold the actual coin). Akuna’s Toby Allen insisted his company is “looking forward to seeing this much-needed product fill a gap in the market. The addition of a futures product enables crypto traders to take both long and short positions in ETH and is another giant leap in the development of the crypto asset class.” Is having ether futures a good overall move for the crypto community? Let us know what you think about this subject in the comments below. Images via Shutterstock, Pixabay, Ethereum, CME Group Inc. Do you agree with us that Bitcoin is the best invention since sliced bread? Thought so. That’s why we are building this online universe revolving around anything and everything Bitcoin. We have a store. And a forum. And a casino, a pool and real-time price statistics. The post Ethereum Futures in US One Step Closer as CME Deal is Struck appeared first on Bitcoin News. View the full article

South Korea’s government is widening its probe on cryptocurrency exchanges, particularly the use of corporate accounts which the regulators say can lead to money laundering. This announcement follows the prosecutors launching an investigation on the country’s largest crypto exchange, Upbit. Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space Widening the Crypto Probe South Korea’s top financial regulators are teaming up with prosecutors to widen their investigation of domestic cryptocurrency exchange operators. An official of the Financial Service Commission (FSC) was quoted by the Korea Times on Sunday: Following a request by the Financial Supervisory Service (FSS) and the prosecution to address growing anti-money laundering compliance concerns and possible abuse of cryptocurrencies in money laundering and fraud, the FSC is looking into exchanges’ corporate accounts opened in local banks. The use of corporate accounts for crypto transactions should have been discontinued when the government introduced the real-name system at the end of January. However, only 30% of all crypto accounts have been converted into real-name ones so far. The six banks that have the ability to issue real-name accounts have chosen to only service the country’s largest crypto exchanges: Upbit, Bithumb, Coinone, and Korbit. Nonetheless, not all accounts at these exchanges have been converted into real-name ones. In addition, all small and medium-sized exchanges continue to use corporate accounts for crypto transactions. The regulators say that the use of corporate accounts can lead to fraud such as recently seen with Coinnest whose CEO was charged with embezzlement. The largest Korean crypto exchange by volume, Upbit, is also currently under investigation even though banks have been converting its accounts to real-name ones. Collaborating with Other Countries South Korea has been discussing a collaboration with other countries on cryptocurrency regulations. At a recent International Organization of Securities Commissions (IOSCO) Board of Directors and Annual General Meeting held in Hungary, FSC Vice Chairman Kim Yong-beom discussed cryptocurrency issues with major national supervisory bodies. The need for IOSCO to cooperate on cryptocurrency and ICO regulations was stressed at the meeting. An official of the FSC was quoted by the Korea Times saying: The FSC is collaborating with authorities in other countries. Our latest findings show that the domestic exchange faked its balance sheets and deceived investors. The FSC is checking Upbit’s computer system with prosecutors and the FSS to audit the exchange’s virtual currency holdings. Meanwhile, the new FSS governor Yoon Suk-heun recently indicated that he will look into easing regulations on domestic cryptocurrency trading, citing that “there are some positive aspects to cryptocurrencies.” What do you think of the Korean regulators widening probe on crypto exchanges? Let us know in the comments section below. Images courtesy of Shutterstock and the Korean government. Need to calculate your bitcoin holdings? Check our tools section. The post Korean Regulators Widen Investigation of Cryptocurrency Exchanges appeared first on Bitcoin News. View the full article

As a sensible web user who enables Adblock, you probably don’t encounter many adverts while browsing. And on the rare occasions when you do, you’re smart enough to resist the clickbait’s overtures. But what would happen if you did click to discover “the next bitcoin”? Where would the experience lead you, and could you profit from this esoteric knowledge? Also read: Research Paper Finds Transaction Patterns Can Degrade Zcash Privacy I Clicked on a Spammy Cryptocurrency Ad and You’ll Never Guess What Happened Next Like the homeless, cryptocurrency ads are all around but most people choose not to see them. To the majority of web users, they’re an inconvenience – a distraction to be stepped over when reading Forbes and Vice and similar sites that use clickbait ads to conclude each paragraph like punctuation. While browsing the web on mobile recently, I came across one such ad: It’s likely you’ve seen this ad or one very similar to it in your travels, and have skipped over it without a second thought. Normally, that’s what I would have done too. But this time was different. Be it out of boredom, curiosity or a need to file a news story, I decided to click. What were these three cryptos that were “better than bitcoin”, and better in what way – faster? More decentralized? Greater network effects? And more importantly, would buying them make me stupidly rich? There was only one way to find out. 3 Cryptos That Are 10x Better Than Bitcoin After clicking to discover which altcoins I should be buying “right now”, I was forced to enter my email address in return for being signed up to a newsletter called Coin Profits Daily. It would be delivered five times a week with “the most up-to-date information we have to offer on the world of cryptocurrencies”. I wasn’t interested in the newsletter: I just wanted to learn of those bitcoin-beating gems that my portfolio was crying out for. A couple of clicks later and I found myself reading a PDF emphatically named “3 Cryptos That Are 10x Better Than Bitcoin”. I skimmed through the preamble about how to identify altcoins with potential – I was only interested in the money shot. What were these magical coins I’d never heard of? I didn’t have to wait long to find out. Beneath the heading “The 3 Best Altcoins to Invest in 2018”, I met my first bitcoin beater – monero. That’s right, the 12th biggest cryptocurrency by market cap and the world’s most famous privacy coin was an under the radar gem I should be snapping up. Sell All Your Bitcoin and Buy This Instead I like monero, but it’s not the sort of obscure altcoin I had in mind when I clicked on the ad. Thankfully, the remaining coins in the guide proved to be less obvious, even if their inclusion was every bit as baffling. According to Coin Profits Daily, the final two alts that are “10x better than bitcoin” are vertcoin and burst. Reasons stated for buying this pair include the fact that vertcoin’s Instagram followers are over 2,000 “and the account was just created”. Burst, meanwhile, “implements the best technologies available and creates a universal coin with the attributes of many different cryptos”. As a consequence, it is “commonly referred to as a 2.0 cryptocurrency”. There is nothing inherently wrong with these coins, but bitcoin killers they are not. So there you go: clicking on spammy cryptocurrency ads probably won’t cause your private keys to be stolen or your data resold. But it will fill your inbox with emails about “under the radar” coins from 2017, and that’s reason enough to steer clear. What sites do you think are worst for showing spammy cryptocurrency ads? Let us know in the comments section below. Images courtesy of Shutterstock and markets.bitcoin.com. Need to calculate your bitcoin holdings? Check our tools section. The post Here’s What Happens When Click on a Spammy Cryptocurrency Ad appeared first on Bitcoin News. View the full article

In Monday’s Bitcoin in Brief, Belgium’s financial watchdog, which earlier this year published a warning about potentially fraudulent platforms promising fast and easy profits to crypto investors, has just expanded its blacklist. In Russia, reports have surfaced of a plot to assassinate Alexander Vinnik in Greece, where he fights an extradition request from US authorities accusing him of laundering billions of dollars, including funds from the hacked Mt. Gox. Elsewhere, Australia allocates budget for blockchain research, and Dubai-based exchange Bitoasis suspends dirham withdrawals. Also read: This Week in Bitcoin: Ghost Scares Markets, Facebook Mulls Coin Belgium Expands List of Fraudulent Crypto Platforms Belgium’s Financial Services and Markets Authority has expanded its list of unauthorized and potentially fraudulent crypto companies operating in the country. The financial watchdog has recently published a new warning noting that “the FSMA is receiving an increasing number of consumer complaints regarding investments in cryptocurrencies [and] once again warns the public about these platforms, often operated by fraudsters who are now resorting to cryptocurrencies to swindle consumers.” The regulator also said that people who have invested through these platforms often complain they never recover their funds. In March, the FSMA published its first list of 19 suspicious crypto platforms saying it had received “questions or complaints from consumers and has established indications of fraud,” as news.Bitcoin.com reported. The agency stressed that the compilation does not include all questionable crypto trading platforms, but only those whose fraudulent practices have been reported by consumers. Last week the Belgian financial authority reminded investors that these companies usually claim to offer the best trading platforms for both beginners and professionals. Plot to Assassinate Vinnik Uncovered in Greece Law enforcement authorities in Greece have reportedly uncovered a plot to kill Alexander Vinnik in jail. The Russian national was detained in Greece at the request of the United States on suspicions of money laundering in connection with the Mt. Gox hack. “Greek law enforcement received intelligence on plans to prepare an assassination via poisoning with the help of criminals. The head of the prison and the prosecutor of the city of Thessaloniki have summoned Vinnik and informed him about the plot. Special security measures were taken in connection with that,” a source familiar with the details told Sputnik. According to the report, Vinnik is not allowed to accept any items, including food or beverages, from people he doesn’t know. His contacts with other inmates have been limited and measures have been taken to improve his personal security. Greek police received information about the murder plot earlier this year but it was not made public in order to help the investigation. The presumed murder attempt is said to be linked to the criminal underground and not the special services of any country. According to the quoted source, the assassination has been ordered by someone in Russia. Vinnik has recently expressed readiness to testify to Russian authorities for fintech-related crimes in his home country. Alexander Vinnik was arrested in Greece in July last year at the request of authorities in the US, where he is suspected of laundering between $4 and $9 billion dollars through the now defunct cryptocurrency exchange BTC-e, including funds obtained from the notoriously hacked bitcoin exchange Mt. Gox. Russia has also asked for his extradition on other charges and Vinnik himself prefers to cooperate with law enforcement agencies in Moscow. The Russian IT specialist has also filed a petition for political asylum in Greece hoping to avoid extradition to the United States. Australia to Finance Blockchain Research Through Budget Australian authorities intend to finance the research of blockchain technologies through the federal budget for 2018/2019. According to the annual budget report, the government will provide additional $0.7 million AUD (>$0.5 million USD) for the Digital Transformation Agency (DTA) which will be tasked to investigate areas where blockchain technology could offer the most value for government services. The agency is expected to use the funds to conduct “research to determine the current maturity of blockchain, assess the readiness for government to adopt the technology, and identify problems that blockchain might be able to solve,” and also, to “understand the potential of using blockchain to support government services.” Set up in 2015, DTA aims to facilitate the digitization of the Australian government. The agency has received a total of $92.4 million AUD (almost $70 million USD) in this year’s budget. That means the funds allocated for blockchain research are less than 1%. Nevertheless, the country has already recognized cryptocurrencies like bitcoin and passed legislation that treats cryptos like fiat money in the context of anti-money laundering and counter-terrorism financing policies. In April, Australia introduced regulations for cryptocurrency exchanges. The country’s financial regulator, the Australian Securities and Investments Commission, has taken measures against “deceptive and misleading initial coin offerings.” Dubai Exchange Bitoasis Suspends Dirham Withdrawals Dubai-based cryptocurrency exchange Bitoasis has announced a temporary suspension of deposits and withdrawals in UAE dirhams. The trading platform warned its customers that if they want to access their dirham balances or deposit dirhams into in their accounts via wire transfers they will have to initiate an order no later than Tuesday, May 15. Such transactions will not be processed after that date. According to the notice sent to account holders, credit card deposits will be possible until June 16. In the letter, quoted by Arabian Business, Bitoasis claims the restrictions were imposed due to issues with the bank it works with. Other means of buying and selling cryptocurrencies on the platform, as well as digital coin withdrawals to other wallets, are not affected, the exchange noted. “If you decide to leave your fiat balances, the only way for you to withdraw your funds at any time after May 15 would be to convert them to cryptocurrency and send them to an external wallet,” the statement reads. Bitoasis warns clients that it cannot provide a specific date for reactivating AED fiat withdrawals. What are your thoughts on today’s Bitcoin in Brief stories? Tells in the comments section below. Images courtesy of Shutterstock. Bitcoin News is growing fast. To reach our global audience, send us a news tip or submit a press release. Let’s work together to help inform the citizens of Earth (and beyond) about this new, important and amazing information network that is Bitcoin. The post Bitcoin in Brief Monday: Belgium Expands List of Fraudulent Crypto Platforms, Plot to Kill Vinnik Uncovered in Greece appeared first on Bitcoin News. View the full article

The decree to regulate cryptocurrencies and initial coin offerings in Thailand goes into effect on Monday. The government has also revised the country’s tax code to add crypto taxation. Sellers of digital tokens will face a fine or even jail time if they fail to register with the regulator within 90 days. Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space Crypto Law In Effect The Thai government’s decree to regulate cryptocurrencies and initial coin offerings (ICOs) goes into effect on Monday. The Digital Asset Management Act BE 2561 was approved by the Thai cabinet in March and has been amended since. The revision of the Revenue Code No. 19 was also announced in order to tax crypto profits at 15%, according to local media. Finance Minister Apisak Tantivorawong previously said, as reported by the Bangkok Post: It [the decree] was not meant to prohibit cryptocurrencies, initial coin offerings (ICOs) and other digital asset-related transactions, but to protect investors. Power to the Thai SEC According to the decree, the Thai Securities and Exchange Commission (SEC) has the duty and the authority to regulate digital currencies and their operators, Matichon reported. The publication outlines four areas the SEC will be responsible for. The first is to regulate the issuance and offering of cryptocurrencies and digital asset businesses. The second is to set the fees and requirements for the registration and approval of cryptocurrencies and their operators. The third is to establish a guideline for dealing with potential problems. The fourth concerns all other areas not previously mentioned. “All sellers are required to register with the SEC within 90 days of the law taking effect,” the Bangkok Post wrote, adding that: Sellers of digital tokens unauthorized by the SEC will be fined no more than twice the value of the digital transaction or at least 500,000 baht [~US$15,703]. They could also face a jail term of up to two years. The news outlet elaborated that “the [finance] ministry and SEC will now work on organic laws requiring all digital asset transactions, including those of digital asset exchanges, brokers, and dealers, to be registered with the relevant authorities according to the decree.” Despite the new rules and direction presented in the decree, the Bank of Thailand (BOT) says that it will wait for the SEC to announce other details of the regulations before it will make a stance on cryptocurrencies and ICOs, according to Matichon. The BOT has previously banned financial institutions from crypto activities. What do you think of the Thai crypto regulations? Let us know in the comments section below. Images courtesy of Shutterstock and Thai SEC. Need to calculate your bitcoin holdings? Check our tools section. The post Thailand Commences Cryptocurrency Regulations Today appeared first on Bitcoin News. View the full article

Just recently researchers from the University College London published a paper about the patterns found in “shielded” and “unshielded” Zcash transactions. The study explains when users switch between these types of addresses anonymity is degraded. The team concludes that while Zcash transactions can be private, it’s also possible to diminish privacy if certain usage patterns are chosen by the Zcash user. Also Read: Israel Tax Authority Hunts for Bitcoin Traders on Social Media Researchers from London Publish a Paper That Reveals It is Possible to Shrink the Zcash Anonymity Set A group of researchers have found Zcash anonymity can be degraded through certain usage patterns. Sarah Meiklejohn, Mary Maller, George Kappos, and Haaroon Yousaf from University College London published a paper called “An Empirical Analysis of Anonymity in Zcash” which finds certain patterns of Zcash use can “shrink” the cryptocurrency’s anonymity set. Essentially Zcash transactions can be used in a private manner (shielded) and a completely transparent (unshielded) manner. Users that move their Zcash back and forth between unshielded and shielded may be losing quite a bit of the anonymity they desire. “We investigate all facets of anonymity in Zcash’s transactions, ranging from its transparent transactions to the interactions with and within its main privacy feature, a shielded pool that acts as the anonymity set for users wishing to spend coins privately,” explains the researchers’ paper. We conclude that while it is possible to use Zcash in a private way, it is also possible to shrink its anonymity set considerably by developing simple heuristics based on identifiable patterns of usage. Zcash Founder Responds Calling the Paper ‘Insightful’ and Recommends Users ‘Store Zcash in a Shielded Address’ Zooko Wilcox. The researchers conclude that ultimately in order for Zcash to fully preserve its anonymity set is to “require all transactions to take place within the shielded pool.” Otherwise, the study emphasizes the Zcash network must significantly expand the usage of the shielded pool. On May 8 the founder of Zcash, Zooko Wilcox, and the team’s marketing director, Josh Swihart, responded to the research and called it an “insightful new paper.” Further, the Zcash team members explained another analysis was released a few months ago with similar findings. “This research demonstrates different ways to pierce the veil of your privacy if you, or the people that you transact with, move money from a transparent address to a shielded address and then move some of that money back to a different transparent address — Similar analysis was released several months ago — However, this research includes new techniques that can heuristically link patterns of ‘unshielded to shielded to unshielded’ transactions,” explains the response from Swihart and Wilcox. It is valuable to understand how much privacy is lost when using shielded addresses as a pass-through mechanism, but using it in that way is not recommended — Instead, store your Zcash in a shielded address. When paying someone, send Zcash from your shielded address to their shielded address — If Zcash is transacted in this way, the results of this paper do not apply and transaction privacy is maintained. Users of Zcash on social media and forums like r/ZEC didn’t seem too phased about the paper published by the University College London researchers. One Zcash user writes on May 11, “I have read the original paper, I don’t think it will make a difference when all transactions are shielded, which is where we are headed to anyway — Furthermore, nobody is stopping anyone from using multiple shielded addresses now.” What do you think about the paper released about Zcash from the researchers at the University College London? Let us know what you think about this subject in the comments below. Images via Shutterstock, Pixabay, and the Zcash website. Do you agree with us that Bitcoin is the best invention since sliced bread? Thought so. That’s why we are building this online universe revolving around anything and everything Bitcoin. We have a store. And a forum. And a casino, a pool and real-time price statistics. The post Research Paper Finds Transaction Patterns Can Degrade Zcash Privacy appeared first on Bitcoin News. View the full article

They say the real riches you make in bitcoin are the friends you make along the way. And on platforms such as the crypto-friendly Telegram, it’s true that you can meet avatars who become acquaintances who become best mates. But the most useful accounts you’ll interact with on Telegram are arguably those devoid of humanity together. That’s because the best accounts are those operated by bots. Also read: Zimbabwe Bans All Cryptocurrency Activity, Businesses Have 2 Month Grace Period There’s a Crypto Bot for Every Occasion Chatbots are not particularly new, nor are they unique to Telegram. But it is on the Russian messaging platform that they’ve gained the most utility, which owes something to the data-driven nature of the cryptocurrency space. Ordering your pizza via chatbot on Facebook Messenger is less efficient than conventional methods. Being alerted to market movements, on the other hand, is a job that’s best left to Telegram bots. Price analytics are the most obvious implementation for Telegram crypto bots, and there is no shortage of candidates to choose from. Bitcoinpriceanalyticsbot lets you set an upper and lower limit; when bitcoin hits that threshold, you’ll be the first to know. Rocket Coin bot is another; type in a command such as /global and you’ll be shown the current cryptocurrency market capitalization including bitcoin dominance. Deposit Notifications, New Token Listings, and More If you’ve ever found yourself waiting for a cryptocurrency payment, you’ll know the frustration of refreshing a blockchain explorer in search of a sign. Tracktxbot is one of many Telegram bots promising to do away with manual checks. Enter your wallet address, give it a name if you like and you’ll be notified the moment you receive a deposit of BTC, BCH, ETH, or ERC20 tokens, as well as hundreds of other cryptocurrencies. This service can also alert you of funds leaving your wallet, allowing you to act fast in the event of unauthorized access. The Tokenstats bot is another simple but extremely useful tool that will prove invaluable to ICO investors. Type in /ROI followed by the token abbreviation and you’ll be shown the return it’s made in ETH, BTC, and USD. Not all Telegram bots require manual setup and configuration using a series of commands: others simply require you to join the channel and follow along. Tokenstats Announcements will notify you of new tokens, while Crypto Exchange Listing “aims to accurately predict the listing of a new token on an exchange before the official announcement”. Its record, which is based on token deposits to known exchange wallets, is surprisingly good. You name it, there’s a bot for it. What other Telegram bots do you use? Let us know in the comments section below. Images courtesy of Shutterstock, and Telegram. Need to calculate your bitcoin holdings? Check our tools section. The post Six of the Best Telegram Cryptocurrency Bots appeared first on Bitcoin News. View the full article

The number of new cryptocurrency exchanges is rapidly growing worldwide. This new crypto exchange roundup features four platforms located in South Korea, Thailand, Vietnam and the Philippines. Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space South Korea’s Coinbit South Korean game developer Axia Soft Co. Ltd. has recently launched a crypto exchange called Coinbit. For its grand opening, the exchange is offering zero commission trades until the end of May. Coinbit says 50 cryptocurrencies will be listed initially and more than 100 coins will be listed by the end of the year. Among supported cryptocurrencies are bitcoin, ether, ripple, bitcoin cash, ethereum classic, litecoin, waves, stox, eos, vechain, omisego, qtum, and neo. Thailand’s Jibex Cryptocurrency exchange Jibex has recently opened its doors in Thailand. The exchange is backed by IT company J.I.B. Computer Group Co. Ltd, a distributor and seller of computer hardware and IT trading products with 150 stores nationwide. Initially, only five cryptocurrencies will be supported: bitcoin, bitcoin cash, ether, litecoin, and ripple. More will be added in the future, according to Jibex CEO Thuntee Sukchotrat. The exchange also offers a wallet supporting those five cryptocurrencies. For the grand opening, Jibex is waiving its commission of 0.24%. No trading fee will be charged for 45 days ending on June 26. Jibex Chairman Dr. Thantharaksuk Chotirat commented: The partnership with J.I.B. Computer Group (JIB) will give users peace of mind and confidence in their investment. The service is good, fast and attentive to all customer needs. Vietnam’s Kenninex Kenninex crypto exchange has recently launched in Vietnam, headquartered in Ho Chi Minh City. The exchange claims to be “the first live cryptocurrency exchange in Vietnam…[and] the first e-money trading platform in Vietnam to have a trading office where investors can experience our services as well as receive effective investment advice,” according to its website. Customers can currently convert bitcoin and ether into VND and vice versa. The transaction fee is usually 0.4% but has been reduced to 0.2% for the first month of launch, according to local media. The Philippines’ Coinvil While Coinbit, Jibex, and Kenninex have already launched, this next exchange has not. South Korean blockchain technology and services company Glosfer and Coinvil have agreed to collaborate to build and launch a cryptocurrency exchange in the Philippines. Glosfer will build the platform while Coinvil will operate the exchange. Coinvil CEO Park Rae-hyun commented: The Philippines will become the largest cryptocurrency trading market that connects Europe and Asia. Do you think the number of new cryptocurrency exchanges will keep growing? Let us know in the comments section below. Disclaimer: None of the information on news.Bitcoin.com is intended as investment advice, an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products or companies. 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 this article. Images courtesy of Shutterstock, Coinbit, Coinmarket Calendar, Kenninex, Glosfer, Bangkok Post, and Jibex. Need to calculate your bitcoin holdings? Check our tools section. The post New Crypto Exchanges Open in Korea, Thailand, Vietnam, and the Philippines appeared first on Bitcoin News. View the full article

The crypto ban in Pakistan is proving to be not as effective as expected. If anything, the State Bank has barred commercial banks and financial firms from dealing in cryptocurrency which, of course, makes life harder for local exchanges. Individual traders, however, are finding alternative ways to acquire or sell cryptocurrencies, defying the warnings and the prohibitions. Also read: India’s Supreme Court Keeps Ban on Banks’ Crypto Services, For Now Central Bank Can’t Ban Cryptocurrency in Pakistan Pakistan’s experience with cryptocurrencies offers another example of how ineffective financial authorities can be when trying to fill a legal vacuum with prohibitive administrative measures. Central banks often forget they are neither parliaments, nor governments, and their regulatory overreach cannot legitimately substitute the normal legal process. The recent decision of the State Bank of Pakistan to ban crypto-related activities proves that observation. In early April, the SBP issued a circular on the “prohibition of dealing in virtual currencies”, right after a similar measure by the Reserve Bank of India, the regional rival. Unlike their Indian colleagues, who gave banks and traders three months to comply, Pakistani central bankers imposed the ban with immediate effect. SBP said virtual currencies and tokens were not legal tender and reminded it had not authorized any individual or entity to issue, sell, purchase, or exchange any such coins in Pakistan. All banks, microfinance entities, payment system operators and service providers were “advised to refrain” from dealing in cryptocurrencies. The local market is by no means comparable to India’s booming crypto sector. According to Danyal Manzar, CEO of Pakistan’s first bitcoin exchange Urdubit, about 100 different digital coins were being traded daily across all mediums before the ban. His trading platform decided to close down permanently following the prohibition. “The decision was made in haste. Ample time should always be provided for a proper shutdown. But we respect the SBP’s decision,” he told The Express Tribune. Immediately after the ban, Urdubit warned its clients to withdraw both their fiat and their crypto funds. A month later, however, some of its users still have bitcoins in their accounts on the platform. Manzar believes that those who want to trade will continue to do so because “alternative ways still exist that will continue to be tapped no matter how risky they are.” He thinks that cryptocurrencies would only disrupt the stock market, and not the entire monetary system. “About 80 to 85% of the traders from stock exchanges came to try their luck in virtual currency,” he said. Localbitcoins PKR Trade Spikes After Ban Recently, Pakistani crypto traders told Asia Times that the central bank’s move initially caused a dip in the crypto market but the volume of trading has gradually picked up after alternative trading methods were discovered. “Traders realized that the SBP hasn’t, and can’t ban cryptocurrency in Pakistan,” Lahore-based trader Majid Ali commented. “What the State Bank has done is ban banks from entertaining crypto, so if you’re not dealing via banks, you [still] can own and trade virtual currency in Pakistan, which comes under the IT ministry,” he explained. Indeed, as the chart of the weekly Localbitcoins volume from Coin Dance shows, trading has spiked after the release of the circular. It peaked in the week of April 28 to more than 163 million Pakistani Rupee (>1.4 million USD), almost reaching December-January all-time highs. The price of Pakistan’s first and only cryptocurrency, Pakcoin, which was explicitly mentioned in the SBP’s prohibition, has also jumped – by over 60% since the ban. Pakcoin founder Abu Shaheer says that the central bank’s measure has actually worked in favor of his crypto by “serving to expose Pakcoin’s name [and] more people got interested in it.” The digital token is already used for mobile phone credit top-ups. Islamabad to Prohibit “All Forms of Virtual Currency” After All Sources from Pakistan’s Ministry of Information Technology and Telecommunication have told Asia Times that the government in Islamabad does plan to formally declare cryptocurrencies illegal in the country. “We have forwarded our recommendation for a ban on all forms of virtual currency trading, and proper legislation is being worked on,” a government official said. According to crypto trader Majid Ali, however, while the legislation is likely to hit trading, there are alternatives for dealing with cryptocurrencies. “The government of Pakistan can’t stop the trade in an international commodity that is accepted in other countries,” he said. Majid also warned that the ban actually opens transfer channels that can be used for illegal purposes. Do you think that bans imposed by central banks can really stop cryptocurrency trade? Tell us in the comments section below. Images courtesy of Shutterstock, Coin Dance. Do you agree with us that Bitcoin is the best invention since sliced bread? Thought so. That’s why we are building this online universe revolving around anything and everything Bitcoin. We have a store. And a forum. And a casino, a pool and real-time price statistics. The post Pakistanis Find Ways to Trade Bitcoin Rendering Ban Ineffective appeared first on Bitcoin News. View the full article

ASIC miners are hugely profitable machines – provided you’re the manufacturer. That’s the view of Siacoin lead developer David Vorick, who’s published his thoughts on the monopoly enjoyed by manufacturers such as Bitmain and Halong Mining. In “The State of Cryptocurrency Mining”, Vorick also accuses manufacturers of using the machines themselves, before passing them on to the public once they’re no longer profitable. Also read: Cryptocurrency Projects Aiming to be ‘ASIC Resistant’ Have Little Success The Absolute State of Cryptocurrency Mining Siacoin’s David Vorick knows more than most when it comes to cryptocurrency mining. In addition to overseeing the development of decentralized file storage coin SIA, which uses a Proof of Work algorithm, Vorlick operates his own ASIC manufacturing firm. Obelisk was founded around 18 months ago, and with their first ASICs scheduled to ship in eight weeks, Vorick has decided to lay bare his thoughts on the industry. “The State of Cryptocurrency Mining” is a revelatory blog post that pulls no punches. In it, Siacoin’s lead developer repeats claims he has heard that “Bitmain plays dirty”. Vorick was allegedly told that Bitmain would use its power to stop other ASIC companies from manufacturing in China. Despite going to great pains to conceal Obelisk’s involvement in such a deal, the Chinese manufacturer backed out suddenly in a move that reportedly cost Obelisk $2 million. There is no proof that the manufacturer was leaned on by Bitmain, but David Vorick leaves no doubt as to where his suspicions lie. The new Obelisk SC1/DCR1 ASIC miner. ASICS Are Money Printing Machines The most explosive part of Vorick’s blog concerns allegations of ASIC manufacturers secretly mining with new units before selling these to the public once they’re no longer profitable. These claims aren’t new, and can be traced as far back as Butterfly Labs and its ill-fated ASIC miner. David Vorick is the most senior and well-connected figure within the mining industry to go public with these allegations, however, writing: In the case of Halong’s Decred miner, we saw them “sell out” of an unknown batch size of $10,000 miners. After that, it was observed that more than 50% of the mining rewards were collecting into a single address that was known to be associated with Halong, meaning that they did keep the majority of the hashrate and profits to themselves. He continues: “Our investigation into the mining equipment strongly suggests to us that the total manufacturing cost of the equipment is less than $1,000, meaning that anyone who paid $10,000 for it was paying a massive profit premium to the manufacturer, giving them the ability to make 9 more units for themselves.” It has been alleged that prior to Bitmain shipping its Monero Cryptonight miners this year, an unknown entity had been mining with them for months. Vorick concurs: My sources say that they had been mining on these secret ASICs since early 2017, and got almost a full year of secret mining in before discovery. The ROI on those secret ASICs was massive, and gave the group more than enough money to try again with other ASIC resistant coins. At the time of the Cryptonight ASICs becoming public knowledge, a war of words erupted between Bitmain and senior Monero figures. Monero’s Fluffypony wrote that the huge leap in Monero’s hashrate in 2017 had originally been attributed to botnets using hijacked computers to mine XMR. This assertion had been revised in the wake of Bitmain unveiling its Monero-specific X3s. David Vorick adds fuel to the fire, writing: “It’s estimated that Monero’s secret ASICs made up more than 50% of the hashrate for almost a full year before discovery, and during that time, nobody noticed. During that time, a huge fraction of the Monero issuance was centralizing into the hands of a small group, and a 51% attack could have been executed at any time.” Secret ASICS Are Rumored to Exist Secret ASICs that have the power to attack existing hashing algorithms far more effectively than anything on the market are rumored to exist. David Vorick is convinced of this, and if he is correct, these units are the mining equivalent of a zero-day exploit – highly lucrative and highly protected. He speaks of “mining farms that are willing to pay millions of dollars for exclusive access to designs for specific cryptocurrencies” and “an informal underground industry” that has sprung up around secret mining. Because no entity, be it a mining pool or hardware manufacturer, is going to put their name to such activity, it is very hard to provide concrete proof of these allegations. What is beyond dispute is that ASICs are money printing machines for those who make them at scale. Vorick finishes: “At the end of the day, cryptocurrency miner manufacturers are selling money printing machines. A well-funded profit maximizing entity is only going to sell a money printing machine for more money than they expect they could get it to print themselves. The buyer needs to understand why the manufacturer is selling the units instead of keeping them for themselves.” Do you think some ASIC manufacturers engage in dirty tricks and underhand practices? Let us know in the comments section below. Images courtesy of Shutterstock, and Obelisk. Need to calculate your bitcoin holdings? Check our tools section. The post Siacoin Developer: ASICS Are “Money Printing Machines” for Manufacturers appeared first on Bitcoin News. View the full article

A new demographic analysis of people trading in cryptocurrencies has brought up some intriguing results such as that only very few are female, most have little to no previous experience, and many are students or working in sales and marketing roles. Also Read: Israel Tax Authority Hunts for Bitcoin Traders on Social Media Understanding Trading Demographics Market analysts for the social investing network and multi-asset brokerage, Etoro, have conducted a research of their vast user base to help the company better understand exactly who are bitcoin and cryptocurrency investors. Looking at data from March 2017 to February 2018, they surveyed the public profiles of those investing in cryptocurrencies using their systems, and extracted demographic insights from age to gender to job sector. One interesting point emerging from the data is that an absolute majority of traders are new in the business with regards to having any investing experience. A whopping 81.96% are at the Novice level, 10.66% are defined as Intermediate level, and just 7.38% qualify as having an Advanced level of experience in the market. Looking at the breakdown by occupation, it’s not surprising to see people working in the computer and IT services strongly represented at 15.05%, as well as the finance industry at 8.48%. Less expected is the high share of people working at sales and marketing involved in cryptocurrency trading at 14.49%. Additionally, about 30% of cryptocurrency traders are currently out of the job market, with 13.85% being students, 2.06% retired, and 14.74% just having no job. Crypto Gender Imbalance One demographic issue that keeps coming up with relation to cryptocurrency developers is the lack of female representation, and the same statistics seem to be true for traders. In fact, the data shows that less than a tenth of crypto traders are women, with just 8.5% market share compared with men’s 91.5%. While there could be other factors at play, bitcoin is located at the intersection of technology and finance, both fields that suffer from a severe gender imbalance, so the results are not all that surprising in that context. Interestingly, the research also revealed that there are differences between the cryptocurrencies men and women prefer to trade, other than BTC which has 0% gender difference. It appears that Ripple’s XRP skews strongly into the female side, while ETC, BCH and LTC are firmly in male territory. In a note to investors, Senior Market Analyst at Etoro Mati Greenspan, summarized it all with a clear “Women Love ripple.” Earlier this year, Etoro was among seven leading cryptocurrency companies operating in the UK that formed an independent trade body tasked with developing self-regulatory standards for the cryptocurrency industry and engaging policymakers. The other founding members of Crypto UK are Coinbase, Cex.io, Blockex, Commerceblock, Coinshares, and Cryptocompare. How cloud the bitcoin community attract more female users? Share your thoughts in the comments section below. Images courtesy of Shutterstock, eToro. Do you agree with us that Bitcoin is the best invention since sliced bread? Thought so. That’s why we are building this online universe revolving around anything and everything Bitcoin. We have a store. And a forum. And a casino, a pool and real-time price statistics. The post Only 8.5% of Bitcoin and Cryptocurrency Traders Are Female appeared first on Bitcoin News. View the full article

There are reportedly more than 100 exchanges in South Korea, most of which are not using the government’s real-name system. None of the small and medium-sized exchanges can use this system since banks have opted to only provide this service to the country’s largest exchanges. Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space 30% Conversion Rate It has been over 100 days since the government’s real-name system was implemented at the end of January. However, most crypto transactions are still not made through this system. All small and medium-sized exchanges continue to transact through corporate accounts. Business Korea elaborated: The domestic cryptocurrency market is getting more opaque as the financial authorities are not pushing banks and cryptocurrency exchanges hard toward using real-name accounts. According to Yonhap News, the conversion rate of the real-name system is currently only 30%. While six banks are equipped with the real-name system, KB Kookmin and KEB Hana Bank are not issuing real-name accounts to any exchanges, the publication conveyed. Shinhan Bank also has not issued them for Bithumb, citing that the exchange “has not yet implemented the recommendations of the Korea Communications Commission after the hacking incidents.” Real-Name System Ineffective Banks have so far opted to only open real-name accounts for the country’s biggest crypto exchanges: Upbit, Bithumb, Coinone, and Korbit. All other exchanges are not using real-name accounts; they are still using corporate accounts for crypto trading. It has been said that the use of such accounts leads to problems such as with Coinnest whose CEO was charged with embezzlement. However, on Friday, Upbit was also investigated by the Korean prosecutors for alleged fraud even though banks are providing the real-name service to the exchange. Nonetheless, with all small and medium-sized exchanges left out of the real-name system, “Some watchers suspect that the financial authorities are seeking to keep major exchanges, mainly the big four, in operation, killing other small and mid-size exchanges,” the news outlet noted, adding: The authorities’ failure to implement the real-name trading system has resulted in rampant illegal trading. This is why concerns are growing that the market will be disturbed further as more and more foreign exchanges are pushing into the South Korean market. “Under the current law, the financial authorities are not empowered to supervise cryptocurrency exchanges so they indirectly inspect the actual conditions through banks,” Business Korea described. The regulators have repeatedly explained that banks decide themselves whether to open real-name accounts for cryptocurrency trading. However, banks can be subject to anti-money laundering obligations and can be intensively investigated if problems arise. A bank official was quoted as saying: It is a big risk for a bank. New Exchanges Proliferate Without enforcing the use of the real-name system, the publication pointed out that “the financial authorities themselves are undermining the purpose of the real-name system which is designed to improve transparency in cryptocurrency trading,” adding: While the financial regulator is sitting on its hands on the matter, new cryptocurrency exchanges are mushrooming, making the cryptocurrency market more disorderly. According to cryptocurrency industry sources, “there are over 100 cryptocurrency exchanges in South Korea, including those that are preparing to start [the] business,” the publication detailed, noting that there were about 60 in January when the real name system was announced and 40 more have emerged since then. Foreign crypto exchanges have also opened up in the country such as Huobi and Okex. What do you think of the real-name system? Do you think Korea has too many exchanges? Let us know in the comments section below. Images courtesy of Shutterstock. Need to calculate your bitcoin holdings? Check our tools section. The post 100+ Crypto Exchanges in South Korea – Government’s Real-Name System Ineffective appeared first on Bitcoin News. View the full article

Zimbabwe’s central bank issued Circular to Banking Institutions No. 2/2018: Virtual Currencies, effectively banning all crypto activity in the African nation. Businesses dealing in decentralized currencies have 60 days to comply. Also read: India’s Supreme Court Keeps Ban on Banks’ Crypto Services, For Now Zimbabwe Bans Crypto Issued 11 May, the Reserve Bank of Zimbabwe, the country’s central bank, laid out seven points in ordering the shutter of things crypto within the southeast African nation. Referencing two previous circulars going back as far as three years ago, the notice explains “’banking institutions’ attention is once again drawn to the risks involved with virtual currencies and the need to ensure strict adherence to sound risk management. Our investigations have revealed that the major cryptocurrency exchanges facilitating the trade of virtual currencies in Zimbabwe are Bitfinance (Private) Limited (Golix) and Styx24. Golix has gone further to set up an ATM machine through which cryptocurrency transactions are facilitated.” Indeed, these pages first reported on the Golix crypto ATM last month, highlighting how “‘Since we got the machine, lots of people have come to check it out, to touch it,’ Golix representative Tawanda Kembo told Bitcoin.com. ‘At least 10-20 people walk in every day, since we launched it last Friday.’” Crypto was widely thought to be something of a saving grace for the population, as we explained how the nation has a notorious relationship with monetary policy. “There is an acute liquidity crisis In Zimbabwe,” News.Bitcoin.com reported, “and so getting physical US dollars is both cumbersome and expensive (and illegal, the cash has to be bought on the black market).” Fall of last year, another Golix spokesperson insisted, “there is currently more demand than supply of bitcoins… Interest in bitcoin has peaked as people cannot send money outside or pay for international transactions using formal banks. People have had to look for alternatives and bitcoin has been a useful solution which can be used to purchase goods on Amazon or to pay for vehicles from international suppliers and traders.” A Government Known for Monetary Nonsense Unironically Fears Cryptocurrency Famous for their many thousands of percent hyperinflation, Zimbabwe’s central bank unironically feared this week of how financial “regulators around the world have identified the dangers and risks presented by virtual currencies to financial stability which include risk of loss due to price volatility, theft or fraud, money laundering and other criminal activities. Further, cryptocurrencies can be used to facilitate tax evasion as well as externalization of funds in violation of a country’s laws.” The order requires “all financial institutions … ensure that they do not use, trade, hold and/or transact in any way in virtual currencies; ensure that they do not provide banking services to facilitate any person or entity in dealing with or settling virtual currencies; and exit any existing relationships with virtual currency exchanges within sixty days of the date of this Circular and proceed to liquidate and restitute existing account balances.” Prior to using a haunting turn of phrase, at the end of the order, to be “advised accordingly,” the country’s monetary authority hammered home the point by attempting to cover all the possible permutations of crypto business. The ban includes “maintaining accounts, registering, trading, clearing, collateral arrangements, remittances, payment and settlement accounts, giving loans against virtual tokens, accepting them as collateral, opening accounts of exchanges dealing with them and transfer / receipt of money in accounts relating to purchase / sale of virtual currencies.” What do you think the future holds for Zimbabweans with regard to crypto? Let us know in the comments section below. Images courtesy of Shutterstock. Need to calculate your bitcoin holdings? Check our tools section. The post Zimbabwe Bans All Cryptocurrency Activity, Businesses Have 2 Month Grace Period appeared first on Bitcoin News. View the full article

On October 31, 2008, Satoshi Nakamoto had a vision to share with the world — a protocol he called “bitcoin, a new electronic cash system that’s fully peer-to-peer, with no trusted third party.” Since that time a whole lot has changed, and there is a vast cryptocurrency landscape with over 1,500 virtual currencies listed on data feed websites. It’s been a very long time since Satoshi left the community and his vision, the white paper, and even the protocol’s proof-of-work has been questioned multiple times over the years. Also read: Privacy-Centric Coin XMR Splits Into Four Different Monero Protocols BCH Proponents Believe That Many Key Attributes Have Been Slowly Replaced With a Whole New Concept Satoshi Nakamoto left the community in 2010, and no one has heard from the anonymous creator of bitcoin ever since. At the moment the bitcoin community has split into two factions due to the scaling debate, that coincidently started the same year Satoshi left. Many bitcoin cash supporters believe the BTC side of the community has never had a valid excuse against raising the 1 MB block size by utilizing a refuse to give in at-any-cost mentality. The bitcoin cash community believes this group has been so stubborn that Core supporters basically enabled blowback to occur this past August, allowing a large majority of users to go their separate ways by forking the protocol, before the introduction of the contentious Segregated Witness (Segwit). The protocol Segwit had been and still is controversial and hasn’t gained much traction even to this day. All of these individuals who once shared similar visions with their peers, formed another community and rallied around the bitcoin cash (BCH) network believing that BCH is the closest chain to Satoshi’s original vision. A slide from Dr. Peter Rizun’s speech at the Future of Bitcoin conference shows just one reason why people find Segregated Witness unfavorable. Revisionism Alongside all of this vitriolic energy tethered to the scaling debate, BCH supporters say there have been quite a few individuals who believe “Satoshi’s vision doesn’t matter,” and actually have the audacity to propose making changes to the creator’s white paper. Many individuals will tell you the reason for this is because supporters of the Segwit chain have realized that the document does not apply to the BTC network. Unfortunately, BTC hardly resembles what is described in Satoshi’s white paper. For instance, the co-owners of Bitcoin.org, ‘Theymos,’ and ‘Cobra Bitcoin’ among others have talked about changing certain phrases in Satoshi’s paper. Another example is how the web portal Bitcoin.org, which is heralded by Core supporters as ‘truth,’ removed the cheap and fast transactions description for bitcoin off the front page — the reason for this is because the description does not apply to Core network. The owners of Bitcoin.org have discussed editing and revising the white paper on multiple occasions. Of course, bitcoin cash supporters have been livid about this method of revisionism used by the other side of this debate. It is often said that “Satoshi’s vision” or the creator himself doesn’t matter, but BCH supporters believe most free-thinking individuals understand that history is important. Satoshi’s words and his original white paper is extremely vital towards keeping the network from being perverted. Anyone who denies history doesn’t understand how things came to be, and they will have a serious issue coping with the future. The past is the future’s direct causation. The very title of the white paper explains that bitcoin is a “peer-to-peer electronic cash system” which shows absolutely no references to holding the coin as a speculative asset, or any comparison that represents a ‘digital store of value.’ Bitcoin.org removes certain descriptions from the front page. Can’t Afford to Send Bitcoin? — Deal With It — It’s ‘Censorship Resistant’ for a Certain Group of Individuals After close to a decade, one by one, BCH supporters state that specific features that used to be promoted widely among the bitcoin community have been slowly forgotten. In the early days, bitcoin was considered pseudonymous and needed tools like mixers and tumblers that could help provide anonymity. However, due to the rise in transaction costs most bitcoin mixers and tumblers found the network unsustainable, and many were unable to mix coins because network fees were both too expensive and unreliable. Further, during the times when BTC suffered from extreme network congestion, and unconfirmed transactions spiked to well over 200,000, darknet mixers and tumblers were called out for ‘spamming the network.’ There’s no one that can really argue that this meme is irrelevant. Remember when transactions were once described as cheaper than most centralized processors like Western Union? In the early days, people envisioned billions of micropayments helping people in need and third world countries. Instead throughout 2015- 2017, Core advocates and developers stated they didn’t mind if fees aggregated to $100 per transaction. Core developer Gregory Maxwell stated during the worst period of BTC’s transaction backlog and $60 fees that he was popping bottles of champagne. "Personally, I'm pulling out the champagne that market behaviour is indeed producing activity levels that can pay for security without inflation, and also producing fee paying backlogs needed to stabilize consensus progress as the subsidy declines." ~ Greg Maxwell Dec. 21, 2017 It didn’t matter that economically unfortunate countries couldn’t afford to use the bitcoin blockchain as long as the chain continued to remain ‘censorship resistant’ — Ironically this thought process leads to the censorship of more than 2/3rds of this world who have a hard time considering paying $0.25 cents per transaction (tx) let alone $30-60 USD per tx. It’s safe to say that enjoying the rising fee market process is straight out of a Ponzi scheme manual where only the early adopters are those who can afford to use the network benefits. The Resurrection of Killer Apps Core supporters will tell you that bitcoin cash proponents are deceptive by utilizing the open brand name ‘bitcoin,’ when in fact all BCH proponents believe they are doing is “adhering to Satoshi’s original vision.” In fact, the chain and the BCH community are direct derivatives of stubborn blowback. Revisionists and actors with confirmation bias have clung to arguments that make no sense and act like the world is ready to adopt a whole new infrastructure called the ‘Lightning Network.’ This is after realizing on-chain BTC transactions are not very fast, and on-chain BTC transaction fees are unreliable especially during times of demand. Unfortunately, mainstream attention that took place during Q4 of 2017, was one of the worst periods of time for congestion, as BTC fees aggregated to upwards of $60 per transaction and confirmation times of up to a week for low fees. Then the mainstream was directed to a system that is not even close to widespread adoption, even though this mainstream audience was basically at a tipping point towards mass adoption. On April 4, a report was published that detailed major flaws and topology concerns with the Lightning Network. The author of this study was neither a bitcoin cash or bitcoin core holder. Fortunately for mainstream adopters, BCH supporters believe bitcoin cash will be there to provide the very things that were promised in the early days that made the idea of cryptocurrencies so cool — actual fast, cheap, and reliable transactions that cannot be censored. This is because BCH supporters state that mainstream audiences and users from third world countries won’t be hindered from using the cryptocurrency due to unreliable transfer times and tumultuous network fees. They also won’t have to learn to adopt a new network on top of the blockchain or learn about the flaws of routing, watchtowers, centralized hubs, opening channels, or keeping coins online in limbo. No, all they will have to learn is how to use bitcoin as it was taught for the past nine years. Mainstream audiences are also getting a glimpse of an ‘application resurrection’ of tools that were once heralded by the BTC community. The bitcoin cash ecosystem has resurrected mixers and tumblers, micro-tipping applications, a Bittorrent platform, social media apps like Memo and Blockpress, even the ability to send very small fractions of BCH without an internet connection. Protecting Propaganda and Censorship Over Conscience and Principles Bitcoin cash proponents think that revisionists will continue to try and say that Satoshi and the white paper “doesn’t matter” and will attempt to revise history to make bitcoin something that it is not. Why do BCH enthusiasts believe this? Likely it is because supporters of bitcoin revisionism have defended propaganda and censorship, so much that it has become a routine activity on some of bitcoin’s most frequented forums. All of this for a stubborn win-at-any-cost mentality that wouldn’t even allow the discussion or open debate of adding one measly megabyte to the block size. No, BCH proponents believe the confusion Core supporters complain about, rests on their conscience, because they obfuscated the protocol’s original intentions, anonymous minions sniffed out dissenting opinions, and cried when they got the blowback (the birth of BCH) they deserved. It’s safe to say that Satoshi’s vision will be remembered, and his white paper will remain safe from changes. However, BCH supporters understand that the revisionists will also be recognized for being intellectually dishonest and as sophists attempting to keep bitcoin hostage. Bitcoin cash enthusiasts believe that after August 1, 2017 bitcoin’s hostile takeover has ended, and there is now an avenue available to continue following Satoshi’s vision. What do you think about the idea that most BCH supporters believe that Core proponents have revised history and have tried to lessen Satoshi’s vision and even alter the white paper? How do you remember this history? Let us know in the comments below. This is an Op-ed article. The opinions expressed in this article are the author’s own. Bitcoin.com does not endorse nor support views, opinions or conclusions drawn in this post. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the Op-ed article. Readers should do their own due diligence before taking any actions related to the content. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any information in this Op-ed article. Images via Shutterstock, the Future of Bitcoin Conference, Bitcoin.com, Pixabay, and Wiki-commons. Have you seen our widget service? It allows anyone to embed informative Bitcoin.com widgets on their website. They’re pretty cool and you can customize by size and color. The widgets include price-only, price and graph, price and news, forum threads. There’s also a widget dedicated to our mining pool, displaying our hash power. The post Remembering Satoshi’s Vision — As it Was Written appeared first on Bitcoin News. View the full article

With seemingly endless new altcoins claiming that they will change the world whilst generating exorbitant returns for investors, it can be highly informative to sometimes get a bird’s eye view of longer-term altcoin performance by digging through the annals of Coinmarketcap’s historic snapshots. When looking at a historic snapshot from May 12th, 2013, by far the best cryptocurrency purchase one could have made was bitcoin. Also Read: Markets Update: Cryptocurrencies Lose Steam During the Weekend BTC Top Performing Market Since May 12th, 2013 According to the snapshot, bitcoin had a market capitalization of just 1.293 billion on the 12th of May, 2012. Back then, the circulating supply was just over half of it maximum total, with approximately 11.14 million coins in circulation. The price was just $116.07 USD, however, had just gained by approximately 40% in ten days – with the bounce comprising a recovering rally following the fallout from the early-2013 bubble that saw many Cypriots charge into the bitcoin markets seeking refuge from the harsh structural adjustment policies imposed by the European Union and International Monetary Fund. Of all fourteen cryptocurrency markets listed on Coinmarketcap on May 12, 2013, bitcoin has since far outperformed its rivals, gaining by approximately 7175% in the last five years. LTC Only Altcoin Still Ranked in Top Ten by Market Capitalization Of the markets listed on the 2013 snapshot, Litecoin is by far the altcoin with the largest market capitalization today (approximately $7.94 billion as of this writing). At the time of the snapshot, the then second largest cryptocurrency had a total market capitalization of just $59.1 million, and a circulating supply of roughly 17.5 million. At the current prices of roughly $140.55, LTC has made gains of 4,083% during five years. Whilst Litecoin’s market dominance has since eroded, LTC is still the sixth largest cryptocurrency by market cap – making it the best performing altcoin from May 12, 2013. Only 50% of Crypto Markets Are More Valuable Today Than They Were 5 Years Ago The third highest performing crypto market since the snapshot is the then twelfth largest by market cap, Ixcoin. At the time of the snapshot, Ixcoin was priced at approximately $0.015. With IXC current trading for $0.193096, Ixcoin’s value has inflated by 1177% in the last 5 years. IXC’s capitalization has grown from $191,294 to approximately $4 million, ranking it 677th by market cap. At the time of the snapshot, Peercoin was the third largest market by capitalization (approximately $4.72 million), with PPC trading for roughly $0.25. Currently priced at $2.56, PPC has since gained 924%. Peercoin has been among the most enduring of May 2013’s crypto markets, currently comprising the 198th largest market with a capitalization of $63.3 million. The then fourth largest cryptocurrency, Namecoin, has offered investors a modest return of approximately 130% since the snapshot, gaining in price from $0.853 to $1.96. NMC’s is now the 309th largest market, having grown from a capitalization of $4.70 million to $28.8 million today. Feathercoin, the then ninth largest cryptocurrency market, has gained from $0.1256 to $0.169727 – a meager 35.1% increase in five years. Feathercoin is now the 278th largest market, with FTC’s capitalization growing from to $821,341 to $34 million. The then seventh largest market, Novacoin, has gained by only 15.5% in five years, increasing in value from $3.54 to $4.09. NVC is now the 550th largest market with a capitalization, growing from almost $1 million to roughly $8.5 million. 46% of Altcoins Have Lost More Than 80% of Their Value Nearly half of the altcoins included in the snapshot – many of which promised that they would change the world whilst making investors rich – have since lost more than 80% of their value. The then fifth largest cryptocurrency market, Terracoin, has dropped nearly 81% from $0.4 to 0.164. It is ranked 694th by market cap, after gaining from approximately $1 million to $3.74 million. At the time of the snapshot, Freicoin was the eighth largest crypto market with a capitalization of $882,374. Since then, FRC’s capitalization has actually shrunk to a meager $203,719 (approximately 24 BTC) – ranking it 1,152nd by market cap. The price has also decreased by 84.5%, falling from $0.0424 to $0.00658. The market cap of the then eleventh ranked market, Mincoin, has also shrunk – dropping from $230,012 to $169,379 (approximately 20 BTC). Now ranked 1,170th, MNC has also shed nearly 83% of its value, with prices falling from $0.220779 to $0.037906. 23% of Altcoins Trading on the 12th of May, 2013 Now Appear Dead Nearly a quarter of the altcoins included in the snapshot now appear dormant. Data for the then sixth largest crypto market, Devcoin, stops on November 24th, 2017 – with the last recorded price of $0.000023 comprising an approximately 90% drop from $0.000223. The most recent price for then tenth ranked market, CHNCoin, was recorded on boxing day last year – CHNCoin having then dropped by nearly 99% in five years, falling from $0.1 to just $0.001222. And lastly, but certainly not least, data for then thirteenth ranked market, BBQCoin, also ended on the 24th of November – with BBQ’s final price of $0.000458 comprising a 95% loss in value from $0.0091. What was your opinion of cryptocurrency in 2013? Did you risk it all on BBQCoin? Tell us in the comments section below! Images courtesy of Shutterstock, Coinmarketcap Need to calculate your bitcoin holdings? Check our tools section. The post 5 Years Ago You Should Have Bought Bitcoin, Not Altcoins appeared first on Bitcoin News. View the full article

This week’s round-up features a colorful selection of bitcoin stories but we’ll start with the possible explanation for recent market dips. Most cryptocurrencies dropped in price over the period, following developments with depressing effect on traders. In Japan, Mt. Gox’s bitcoins stored in court ordered wallets have moved again, while in South Korea, the largest exchange Upbit has found itself under investigation for suspected fraud. Also read: Bitcoin in Brief Saturday: “Social” Coins, Crypto Vending, Blockchain Mileage Markets React to Disturbing News from Japan and Korea The prices of leading cryptocurrencies dropped this week, with some recovery across the board on Sunday. The negative trend was probably determined by some notable developments in Asia, powerful enough to influence the mood of traders. Just as Bitcoin (BTC) looked poised to storm the $10,000 psychological threshold, the ghost of notoriously hacked cryptocurrency exchange Mt. Gox reminded bitcoiners it isn’t done with them yet. Tokyo-based court appointed trustee of the remaining bitcoin to be distributed among creditors, Nobuaki Kobayashi, seems ready to flood the market, again. According to Blockchain.info, over 8,000 coins from two court ordered cold storage wallets have been recently shifted. As soon as the news broke, BTC prices plummeted. South Korean media reported that the country’s largest cryptocurrency exchange, Upbit, is under investigation on suspicions of fraud. The exchange confirmed the news in a statement and tried to reassure its customers that their assets are kept securely, while “all transactions and withdrawals are operating normally.” Reports suggested that Upbit is suspected of transferring customer funds from their cryptocurrency exchange account to a representative or executive account. Acting on that information, Korean prosecutors have conducted search and seizure against the company, securing computer hard disks and accounting records. Upbit is currently the world’s fourth-largest crypto trading platform. China to Publish Monthly Crypto Report The Chinese government has decided to keep a close eye on decentralized currencies, despite all crypto bans it has imposed so far. Beijing authorities are set to publish a regular monthly analysis of over two dozen crypto assets in the form of the new Global Public Chain Assessment Index. “This independent analysis of cryptocurrencies and global public blockchain technology demonstrates the confidence of the Chinese Government in the technology, and will act as a guide,” according to a government press release. Almost 30 cryptos will be analyzed. The coins included in the index are expected to conform to certain standards like having an independent main chain and an open block browser. China is also working to develop a national standard for blockchain technologies and applications. The new system should be completed and introduced by the end of 2019, according to reports by state-controlled media in the People’s Republic. Initially the blockchain standard will include basic standards, business and application standards, process and method standards, credible and interoperable standards, and information security standards, but the scope of its applicability will be expanded in the future. Localbitcoins Changes ToS to Comply With EU Law The popular peer-to-peer exchange Localbitcoins has updated its Terms of Service (ToS), noting that the changes have been introduced mainly due to regulations in the European Union. The new ToS of the Helsinki-based trading platform highlight certain identification requirements. In some situations users will be required to submit a copy of ID, although identity verification is not yet implemented as a mandatory procedure for all traders. The company has detailed some of the situations in which identification will be necessary. These include trading over certain volume limits, cases of account hacking/recovery, and fraud investigations. The new terms will be enforced on May 25. Facebook Mulls Own Token, Reports Say This week we also covered some interesting developments in our daily rubric “Bitcoin in Brief”. After introducing a ban on crypto-related ads earlier this year, social media giant Facebook is now considering creating its own cryptocurrency to facilitate on-platform payments, reports suggested. Sources familiar with the matter told the financial news outlet Cheddar that the network is serious about the project to introduce global crypto payments. A digital token would allow its two billion users around the world to take advantage of crypto transactions and skip state-issued fiat currencies. The company announced recently it had formed a team tasked to explore the uses for blockchain technologies that can be utilized to improve its business. The group is headed by David Marcus, former head of Facebook Messenger and ex-president of Paypal, who currently sits on the board of Coinbase. BCH-Powered Social Media Apps Launch New Features Two popular Bitcoin Cash social media applications, Memo and Blockpress, have introduced new features on their platforms this week. Users can now upload pictures, video, and even torrent magnets found on the Pirate Bay. Memo has recently added a bunch of features like replies, emojis, and a counter for typing. Its programmers also added a ‘Topics’ section where people can discuss any topic trending on the application. On Thursday, the Memo development team added image and Youtube video support. Users can now upload a picture or their favorite Youtube video utilizing an on-chain BCH transaction. Last week, another BCH-powered social media application was launched – Blockpress. Just like Memo, the platform enables the ability to publish 77 characters via the Bitcoin Cash network. Its developer “Attila” said that after the May 15 BCH upgrade the Blockpress platform will provide the ability to upload much longer content. Currently, its users can add images to posts, a notification feed, community topics, and a sidebar of followed profiles on Blockpress. Bitcoin and the Carnal Temptations A bitcoin supporter hopes to replace New York Attorney General Eric Schneiderman, who resigned amid a sex scandal. Four women have recently complained about non-consensual physical violence by Schneiderman. Stock market lawyer and former stand-up comedian Manny Alicandro has announced his candidacy on the Republican ticket. He is described as bitcoin enthusiast and a crypto investor, who advises several blockchain startups. Alicandro’s campaign will highlight the current harsh regulation of bitcoin in the Empire State and may accept donations in bitcoin. He has been quoted as saying that he would like to see lighter rules for cryptocurrency businesses. Alicandro believes that New York’s Bitlicense regime is hurting jobs and stifling innovation. NY Attorney General Eric Schneiderman resigned just hours after the news about the violent sex scandal broke. His administration was behind an investigation into the operations of bitcoin exchanges which was rebuked by representatives of the crypto industry like Kraken CEO Jessie Powell who sharply criticized the regulatory overreach of his office. This week bitcoin and carnal pleasures were mentioned together more than once. Exotic dancer Brenna Sparks, featured in the article about a Las Vegas club where strippers accept bitcoin via QR tattoos, has published a blog post on an adult entertainment industry portal explaining the advantages of cryptocurrency to her colleagues. Noting that digital money can help with upholding privacy and fighting piracy, Brenna also points out the main advantage of cryptos like bitcoin – helping people in the business avoid paying almost 50% to middlemen. What are your thoughts on this week’s bitcoin topics? Let us know in the comments section below. Images courtesy of Shutterstock. Bitcoin News is growing fast. To reach our global audience, send us a news tip or submit a press release. Let’s work together to help inform the citizens of Earth (and beyond) about this new, important and amazing information network that is Bitcoin. The post This Week in Bitcoin: Ghost Scares Markets, Facebook Mulls Coin appeared first on Bitcoin News. View the full article

China’s government is well known as a crypto hater, and its banishments and pronouncements are the stuff of wild market swings. That doesn’t mean, however, they’re not keeping close eye on decentralized currencies. In fact, according to recent press releases, Chinese authorities are set to publish regular monthly analysis of over two dozen crypto assets, its Global Public Chain Assessment Index. Also read: Bitcoin’s Anonymous $55 Million Pineapple Fund Gives Final Donation China Set to Provide Monthly Cryptocurrency Report “This independent analysis of cryptocurrencies and global public blockchain technology demonstrates the confidence of the Chinese Government in the technology, and will act as a guide for government, enterprise and research institute,” a government press release read this week. Beijing was indeed home to provocative announcements by the government of China such as the above. At a conference, its respective technology ministries explained their monitoring, by way of analysis, nearly thirty cryptocurrencies. Among them, “the first batch of assessment objects were identified: Bitcoin, Ethereum, Ripoco [Ripple], Litecoin, Bitcoin Cash, Cardano, Starcoin, NEO, Ioota, Monroe Currency, Dash, New Currency, Ethereum Classic, Quantum Chain, Nano, Application Chain, Big Zero Coin, Verge, Stratis, Cloud Storage, Stimco, Bit Stock, Bitcoin, Coin, Decred, Super Cash hcash, Komodo, ARK,” various bodies detailed. Standards for inclusion, according to a Google Translate of the government press release, are, “First, it has its own independent main chain; Second, the public chain node can be freely created; Third, it has an open block browser, block information can be consulted; Fourth, code open source; The fifth is to have a project home page, the project team can contact.” Blockchain, Not Currency The government expects shortly to have some kind of ranking system published. The Global Public Chain Assessment Index, as it is referred to, appears to be a way to “evaluate the technological capability, the usefulness of the application and the innovativeness of the project,” government minders insisted, and to determine “development level of the projects to profoundly understand the trend of blockchain technology innovation.” The conference press releases are full of effusive praise for ‘blockchain’ technology, a corporate staple among buzzwords all over the world. Cryptocurrency trading, of course, is not allowed in the world’s most populous country, and that hasn’t changed. And it’s probably why the currency aspect of crypto was not emphasized, but instead its variations on the distributed ledger technology theme. “The first phase of the global public-owned chain technology evaluation index,” the government noted, “will be released in the near future. The official website of the China Electronic Information Industry Development Institute will be the only designated release platform for the evaluation index.” Is the Chinese government warming to crypto? Let us know in the comments section below. Images courtesy of Shutterstock. Need to calculate your bitcoin holdings? Check our tools section. The post China Plays Jekyll & Hyde, After Ban It Will Publish Monthly Crypto Report appeared first on Bitcoin News. View the full article

Just recently news.Bitcoin.com reported on traders who exchanged “significant” trade volume using the peer-to-peer platform, Localbitcoins, by receiving warnings to upload their identity before they could proceed trading. Now the Localbitcoins organization has updated its terms of service agreement which comes with a few new guidelines concerning ID verification and data retention. Also read: Markets Update: Cryptocurrencies Lose Steam During the Weekend Localbitcoins Updates its ToS, Highlighting ID Verification and the Organization’s Privacy Policy Localbitcoins the peer-to-peer exchange founded in June 2012 in Helsinki, Finland has been a very popular trading platform for quite some time. For a while, users could trade in a fairly anonymous manner as it wasn’t required for traders to upload their identification. However a few years ago the organization added the ability for users to verify their state ID or license through a system called Jumio Netverify. A user could voluntarily upload their ID, adding more trust to the trading situation if the person is a real individual. Then this year traders who have been trading “significant” amounts of BTC volume reportedly were being asked to upload their ID to proceed to trade further using the platform. Now the business has updated its terms of service (ToS), and explains much of the changes are due to EU regulation, specifically the General Data Protection Regulation (Regulation 2016/679). Cryptocurrency enthusiasts thought that it was odd that Localbitcoins suddenly announced changing its ToS this month, due to this specific regulation which is supposed to actually limit data harvesting, and allow citizens ownership over their identity rights online. Localbitcoins new ToS highlights a few things users should know about identification requirements. Some Situations May Prompt ID Verification Localbitcoins states the organization still does not enforce ID verification as a mandatory procedure for users but says there could be situations where you are required to submit an ID. “We don’t require ID verification for all users, but in some situations, you may be asked to verify your ID with us,” explains the website. The following situations will prompt the company to ask the user to upload an ID such as trading over certain volume limits and when advertising, or if someone hacks your account, fraud investigations, and account recovery. “It is our top-most priority to ensure that Localbitcoins is a safe and secure bitcoin marketplace and that no one is able to use our service for money laundering or other unlawful activities,” the web page states. Most fraud on Localbitcoins stems from users attempting money laundering. We believe that taking a strict stance in this regard is in the interest of our users and important for our brand as a trustworthy marketplace. The Quest for Decentralized Exchanges Continues As far as retaining user data and the organization’s privacy policy, Localbitcoins says they had to rewrite their entire policy. After people began to digest the latest Localbitcoins statements and how the ToS which will be enforced on May 25, many bitcoin enthusiasts again talked about platforms like Shapeshift, and decentralized exchanges like Barterdex, Bisq and others. Again, most cryptocurrency proponents understand the problem with Localbitcoins is the fiat exchange process, which is something you cannot do with Shapeshift. What do you think about Localbitcoins new ToS? Let us know in the comments below. Images via Pixabay, Superbad, and Localbitcoins. Do you like to research and read about Bitcoin technology? Check out Bitcoin.com’s Wiki page for an in-depth look at Bitcoin’s innovative technology and interesting history. The post Localbitcoins Updates ToS: ‘Some Situations May Require ID’ appeared first on Bitcoin News. View the full article

GMO Internet’s cryptocurrency exchange has added four more cryptocurrencies to its loan program which allows customers to lend their cryptocurrencies to the company. The program was originally launched last month for just bitcoin (BTC) but GMO has now added bitcoin cash (BCH), ether (ETH), litecoin (LTC) and ripple (XRP) to the program. Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space GMO Wants to Borrow from Customers GMO Coin, the cryptocurrency exchange subsidiary of Japanese conglomerate GMO Internet, announced this week the addition of four cryptocurrencies to its loan service which allows customers to lend their coins to the company. The service “allows you to rent out the virtual currency held by the customer to the company so that you can receive the rental fee according to the quantity of the lent virtual currency,” the exchange detailed. GMO first introduced this service last month for just BTC. Interested customers need to apply between May 9 and May 23. If there are more applicants than needed, the company will use a drawing to select whom to borrow from. The target currencies this time are BCH, ETH, LTC, and XRP. About the Program Customers can lend between 100 and 1,000 ETH; 50 and 500 BCH; 300 and 3,000 LTC; and 100,000 and 1,000,000 XRP. The time to maturity is 150 days. Borrowed cryptocurrencies will be returned to customers in the same amounts and types at maturity. The exchange will pay customers 2.04109589 ETH for each 100 ETH borrowed. For 50 BCH, the company will pay 1.02054794 BCH. For 300 LTC, customers will receive 6.12328767 LTC. Lastly, for 100,000 XRP, the fee payable to customers will be 2,041.0958 XRP. GMO explained that the fee “corresponds to 5% / year (tax included),” adding that taxes will also be levied on the loan fees. Fully Licensed Exchange GMO Coin is a fully licensed cryptocurrency exchange in Japan. However, it is one of the two licensed exchanges to receive a business improvement order from the Japanese Financial Services Agency (FSA) after the agency tightened its inspection of crypto exchanges following the hack of Coincheck in January. The other is Tech Bureau which operates Zaif exchange. The company recently revealed GMO Coin’s financials, showing an operating loss of 760 million yen (~US$7 million) in the first quarter of this year. The cost of operating the crypto business rose by about 560 million yen (~$5.1 million) for the group from the previous quarter. As for the company’s mining operations, GMO revealed that it has mined a total of 906 bitcoins and 537 bitcoin cash. Would you lend GMO your coins? Let us know in the comments section below. Images courtesy of Shutterstock, Nikkei, and GMO. Need to calculate your bitcoin holdings? Check our tools section. The post Japan’s Internet Giant GMO Wants to Borrow BCH, ETH, LTC, XRP From Customers appeared first on Bitcoin News. View the full article

According to a team of Indian lawyers, the Supreme Court of India refused request for a temporary injunction against restrictions imposed on banks regarding cryptocurrency by the country’s central bank. The Reserve Bank of India (RBI) issued a circular essentially banning crypto services, which will remain in place at least until a formal hearing. Also read: Bitcoin’s Anonymous $55 Million Pineapple Fund Gives Final Donation Indian Supreme Court Denies Grant of Injunction Against RBI Crypto Kanoon (@cryptokanoon) is a group of lawyers active in the space concerned with regulatory analysis and legal awareness. They’ve been particular watchful of goings on regarding India’s central bank, RBI, and its recent circular demanding banks it serves shut down any business with cryptocurrency companies. Through a petition challenging the RBI ban, enthusiasts hoped by this week to see some relief at the country’s highest court. An interim measure employed by most courts around the world is to cease a particularly controversial action until such time as a final decision can be made. And it was just such a move crypto advocates were hoping would be followed during the petition’s consideration: allow banks to continue serving cryptocurrency clients as they had prior to the RBI ban. Yesterday, the Supreme Court instead declined an interim injunction, for now allowing the RBI ban to stay in place. It was a blow to the near dozen representatives from India’s crypto community. It is important to note that such a procedural decision theoretically has no bearing on the eventual outcome of the petition for relief itself. The case will return before the Supreme Court May 17th. The Reserve Bank of India’s circular from April ordered “with immediate effect, entities regulated by the Reserve Bank shall not deal in VCs [(virtual currencies)] or provide services for facilitating any person or entity in dealing with or settling VCs.” The ban appears to be rather comprehensive in scope, including “maintaining accounts, registering, trading, settling, clearing, giving loans against virtual tokens, accepting them as collateral, opening accounts of exchanges dealing with them and transfer / receipt of money in accounts relating to purchase / sale of VCs.” Indian Crypto Community Pushes Back West Bengal’s Dwaipayan Bhowmik was the originator of a petition, asking government to regulate cryptocurrencies such as bitcoin core (BTC). His request was to galvanize the various ministries, from the country’s Securities and Exchange Board (SEBI) to the Reserve Bank itself. Mr. Bhowmik was quoted by regional media as wishing “to prevent financial crimes such as money laundering, flesh trade, etc.” A quirk of the judicial appeal process in the world’s second most populated country is to allow petitioners, no matter their side advocacy, to appeal together. Two petitioners are diametrically opposed on the issue, in other words, with one wanting an outright ban and the other wanting it formally recognized by the government. For his part, Mr. Bhowmik insisted he falls in neither camp. “I just want it to be regulated,” he said. There is yet another case, filed by crypto exchange startup Coil Recoil and various exchanges, to be heard in the Delhi High Court May 24th. The two cases are unrelated. As reported in these pages, many felt “the RBI directive is arbitrary and a violation of the Constitution of India, and the court should therefore quash it. The document presented to the count, which news.Bitcoin.com has obtained, explains that due to the RBI Circular the company will not be able to secure banking services that are imperative for the business’ operations rendering it ‘stillborn.’” Whatever the case, May promises to be a critical month for India’s crypto community. Do you think India’s Supreme Court will overturn the RBI ban? Let us know in the comments section below. Images courtesy of Shutterstock. Need to calculate your bitcoin holdings? Check our tools section. The post India’s Supreme Court Keeps Ban on Banks’ Crypto Services, For Now appeared first on Bitcoin News. View the full article