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Indian Finance Minister Answers Crypto Questions at IMF Meeting

Indian Finance Minister Answers Crypto Questions at IMF Conference

At an IMF and World Bank meeting, Indian Finance Minister Nirmala Sitharaman talked about cryptocurrency and stablecoins when asked about Facebook’s Libra digital currency project. RBI Governor Shaktikanta Das also addressed the subject at the conference.

Also read: Indian Supreme Court Postpones Crypto Case to November, New Date Confirmed

Finance Minister Talks Crypto

At the Annual Meetings of the Boards of Governors of the World Bank Group and the International Monetary Fund (IMF) in Washington, D.C., Indian Finance Minister Nirmala Sitharaman talked about cryptocurrency and stablecoins, PTI reported. The annual meetings and related events took place from Monday, Oct. 14, through Sunday, Oct. 20. The news outlet added that Shaktikanta Das, Governor of the Reserve Bank of India (RBI), also spoke about cryptocurrencies during one of the interventions.

Indian Finance Minister Answers Crypto Questions at IMF Meeting
Indian Finance Minister Nirmala Sitharaman in a group photo with other governors at the IMF and World Bank Annual Meetings 2019.

A group of reporters asked Sitharaman on Sunday about Facebook’s Libra crypto project. She responded, “On our side, the Reserve Bank governor spoke about it during our turn to intervene,” adding:

I got the sense that many countries were cautioning on rushing into this.

Since Facebook unveiled its plan for the Libra project in June, many regulators worldwide have been scrutinizing the project. France and Germany are even reportedly discussing banning Libra in their countries, at least until all the concerns have been addressed. As for India, former Secretary of the Department of Economic Affairs Subhash Chandra Garg previously said that the Indian government will not allow Libra in the country since it would be a private cryptocurrency.

Indian Finance Minister Answers Crypto Questions at IMF Meeting
Nirmala Sitharaman addressing the Plenary Session of the IMF and World Bank Annual Meetings on Oct. 19.

“Some of them (countries) of course even suggested that they shouldn’t be using, all of us shouldn’t be using the name stable currency because that’s the expression they used,” Sitharaman was further quoted by PTI as saying. “Many cautioned to the extent saying even the name should not be stable currency, it should relate to virtual currency or something of the kind.” The finance minister added that “countries will have to show extreme caution much before anything is said or moved on this.”

Nonetheless, some positive aspects of cryptocurrency were discussed, as Sitharaman revealed:

In fact, this morning some of the presentations were also highlighting the strengths of such virtual currency.

“But equally everyone without fail spoke about the challenges together with talking about it as a necessary step forward,” she continued. “So everyone was stepping cautiously on it.”

The Indian government is currently deliberating on the country’s crypto policies. A report and draft bill entitled “Banning of Cryptocurrency and Regulation of Official Digital Currency Bill 2019” were submitted to the Ministry of Finance in February and made public in July. Both were produced by an interministerial committee (IMC) headed by Garg who has since been reassigned to the Power Ministry.

Indian Finance Minister Answers Crypto Questions at IMF Meeting
Nirmala Sitharaman

While the Indian government has not announced any decisions regarding the bill or the regulation of cryptocurrency, it has told the country’s supreme court that the crypto bill may be introduced in the next session of parliament. In July, the finance minister talked about the IMC report, calling it “a very futuristic and well-thought-out report,” but admitted that she had “not spent time on it after the presentation.”

Meanwhile, the Indian crypto community has been actively campaigning for the government to reevaluate the IMC recommendations, emphasizing that the report is flawed. At least one lawmaker is willing to listen and help the community. Further, the RBI has prohibited financial institutions from providing services to crypto businesses. The ban, which went into effect in July last year, has been challenged in the supreme court, which is expected to resume hearing the case on Nov. 19.

IMF’s Approach to Crypto

At the same conference, IMF Managing Director Kristalina Georgieva also briefly talked about cryptocurrency and stablecoins such as Libra, PTI also reported. She revealed that the IMF has been engaged quite extensively with other organizations on this subject, such as the Financial Stability Board (FSB) and the European Central Bank, including assessing the benefits and risks involved. Georgieva elaborated:

We take a very balanced approach. We look at the ease of use, cost savings, and most importantly, financial inclusion as very important benefits. But we are also very mindful that they can be a risk for privacy, consumer privacy.

Indian Finance Minister Answers Crypto Questions at IMF Meeting

After noting the risks that digital currency can be “abused for illegal purposes,” the IMF managing director said that there are also “issues on sovereignty that need to be well understood and addressed. And in that sense, we will continue to work.” Georgieva further commented:

We are not specifically focusing on Libra. We are looking into, one, the inevitability of expanding digital money on the wave of the digital revolution, but then the necessity to do so, mindful of monetary stability.

Last week, the FSB chairman wrote a letter to the G20 finance ministers and central bank governors informing them that, unlike crypto assets, stablecoins with the potential to be adopted globally do pose financial stability risks. A recently released G7 report outlines some of these risks. In addition, the G20 issued a statement last week that stablecoins “with potential systemic footprints give rise to a set of serious public policy and regulatory risks,” adding that they “need to be evaluated and appropriately addressed before these projects can commence operation.”

What do you think of the Indian finance minister’s view on cryptocurrency and stablecoins? Let us know in the comments section below.


Images courtesy of Shutterstock and Nirmala Sitharaman.


Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here.

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Source: Bitcoinnews.com

McAfee Envisions DEX in a World Where Crypto Won’t Be Traded for Fiat

In a recent video posted to Twitter. John McAfee states: “Imagine a world…where fiat currency is diminishing in importance.” Instead of pointing to the adoption of crypto by big money interests, the rogue politician and radical bitcoin proponent talks of a complete flip, where users won’t need to exchange their cryptocurrencies for fiat. Crypto will have become the dominant money. McAfee cites his recently launched decentralized exchange (DEX), mcafeedex.com, and featured stablecoins as evidence this world is coming soon.

Also Read: Earn More Interest on Your Crypto With These Comparison Tools

No Need to ‘Cash Out’

His recent Twitter update finds McAfee musing on a major problem with otherwise very functional decentralized exchanges: people can’t get their money out in fiat form. The beauty of no KYC, no AML, and no required email address is a double-edged sword that makes it tough to withdraw funds to the legacy financial system so many still depend on. According to McAfee, however, this won’t be an issue for long.

Citing DAI, a decentralized ERC20 stablecoin pegged to the U.S. dollar via smart contract, the former antivirus tycoon notes that such assets enable greater market stability and encourage crypto commerce. “You can already buy houses and cars and shoes and god knows what with crypto … so we already have the ability to acquire half of what we need with crypto,” McAfee emphasizes:

Soon we’ll have the ability to acquire everything we need with crypto.

A Quick Look at the McAfee DEX

McAfee’s DEX runs on the Ethereum blockchain and is built on the Switchdex smart contract. Creating an account takes only one click, and anyone can add their own ERC20 token to the exchange for zero fees. Users can also be whitelisted for $85 in ETH in order to “trade on McAfeeDex with no platform fees for life.” Regarding other fees and restrictions, McAfee himself emphasized the DEX “Requires no name, no documents, no email, no bank info. Transaction details private. Nothing monitored. Nothing recorded. No restrictions. No listing fees. 0.25% transaction fees. Completely decentralized.”

McAfee Envisions DEX in a World Where Crypto Won’t Be Traded for Fiat
Mcafeedex.com

Volume across the already long list of 1,300+ trading pairs (base pairs being ETH, DAI, WBTC and TUSD) is still extremely limited, with many order books yet showing no activity. McAfee states, “It takes time for enough users to join to make it real, but if you play, and be patient, you will see it’s the door that frees us from the government’s cornerstone of control: Fiat currencies. It can’t be shut down.” Switch (ESH) and ether (ETH) trades currently dominate the DEX with about 100 transactions taking place on the pair since October 16, at press time. The libertarian presidential candidate is also encouraging users to further decentralize the operation by creating their own portals for a fee, an option which is expected to be automated in the future.

McAfee Envisions DEX in a World Where Crypto Won’t Be Traded for Fiat

DEXs Continue to Evolve

As news.Bitcoin.com has reported, DEXs are evolving quickly and becoming more user-friendly. Not only are technical advances encouraging growth and development, but as McAfee points out, there is an ever-quickening confluence of factors economic, philosophical and otherwise leading to more crypto users jumping ship from the heavily regulated — and some say iceberg-destined — cruise liner of centralized exchange. If crypto is to truly be a tool of economic sovereignty and survival in this climate of reckless government monetary policy and geopolitical tension, its number one value proposal of being sound, permissionless money must remain intact.

What do you think about McAfee’s prediction and his new DEX? Let us know in the comments section below.

Disclaimer: This article is for informational purposes only. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.


Images courtesy of Shutterstock, fair use.


Did you know you can verify any unconfirmed Bitcoin transaction with our Bitcoin Block Explorer tool? Simply complete a Bitcoin address search to view it on the blockchain. Plus, visit our Bitcoin Charts to see what’s happening in the industry.

The post McAfee Envisions DEX in a World Where Crypto Won’t Be Traded for Fiat appeared first on Bitcoin News.

Source: Bitcoinnews.com

Bittrex Pulls Out of 31 Markets Citing Regulatory Uncertainty

Bittrex Pulls Out of 31 Markets Citing Regulatory Uncertainty

Cryptocurrency exchange Bittrex is discontinuing operations in 31 countries, including Venezuela and Zimbabwe. The trading platform has justified its decision on the basis of the regulatory uncertainty in these jurisdictions. Some of the nations in the list are going through political turmoil and socio-economic challenges.

Also read: Russia Blocks 2 Crypto News Websites

Zimbabwe and Venezuela Among Restricted Nations

Bittrex International, the global trading platform managed by the Seattle-based digital asset exchange, has informed clients residing in the affected countries that they will no longer be able to use its services. The main reason for the decision lies in the unstable regulatory environment there, the company explained in an announcement published on its website this Friday.

“All trading and account access for these impacted customers will be halted on Tuesday, October 29 date at 19:00 UTC/21:00 CEST,” Bittrex detailed. Users have been asked to withdraw their coins and tokens from the platform before the deadline. To do so, they’ll have to log into their Bittrex International account, click “Holdings,” search for the wallet, and click the withdrawal button.

Bittrex Pulls Out of 31 Markets Citing Regulatory Uncertainty

The exchange warns traders they won’t be able to withdraw their balance if it’s below a certain threshold. “The minimum withdrawal for all coins must be greater than 3 times the fee,” the company notes and provides an example: “Your balance in BTC must be .00150001 or greater as the fee is .0005.” Users can find additional withdrawal instructions in the FAQ section of the platform’s website.

Bittrex’s decision to halt exchange operations mostly concerns customers in developing countries. Many of these markets are in Africa, Asia and the Middle East, including crisis-hit Zimbabwe, Uganda, and Pakistan. Bosnia-Herzegovina is the only European jurisdiction on the list. Crypto traders in economically battered Venezuela are also among those that will not be able to use its exchange services in the future.

Crypto Exchanges Under Pressure from Governments

The move affecting its international trading platform comes after Bittrex delisted dozens of coins and tokens this summer that were available previously to U.S.-based traders. Although the exchange explains that a major criterion it considers in such cases is the lack of interest in a project, regulatory pressure in the United States may have also played a role.

Bittrex Pulls Out of 31 Markets Citing Regulatory Uncertainty

Evolving regulatory standards and other compliance issues have been listed among the key factors in its official token removal policy, which the company takes into account when determining whether to delist a coin or remove a market. For example, in April this year the New York State Department of Financial Services ordered Bittrex to cease operations after rejecting its application for a Bitlicense.

International sanctions have also influenced the business decisions of companies in the crypto space. Towards the end of last year, reports came out that users of leading digital asset exchange Binance had been cut off in certain countries. Iran, Belarus, Serbia, Bosnia, Myanmar, and other restricted jurisdictions were affected. Some of those are on the sanctions lists of the UN Security Council and the U.S. Treasury Department’s Office of Foreign Assets Control.

What’s your opinion about Bittrex’s decision to withdraw from 31 countries? Share your thoughts on the subject in the comments section below.


Images courtesy of Shutterstock.


Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The Local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here.

The post Bittrex Pulls Out of 31 Markets Citing Regulatory Uncertainty appeared first on Bitcoin News.

Source: Bitcoinnews.com

Earn More Interest on Your Crypto With These Comparison Tools

Earn More Interest on Your Crypto With These Comparison Tools

2019 has been the year in which crypto lending has really taken off. Centralized and decentralized finance have been major growth areas, aided by crypto exchange integration and a backdrop of negative interest rates in the banking sector. Why be penalized for saving fiat when you can be rewarded for saving crypto?

Also read: How to Trade Crypto in Person Safely

Crypto Lending Options Are Stacking Up

Competition among crypto lending platforms is heating up. With major exchanges such as Binance throwing their considerable weight behind the movement, incumbent platforms have been sharpening the pencil in a bid to offer their lenders and borrowers a better APR. This week, for instance, Nexo, cut its borrowing rates to as low as 5.9%. Given that many crypto lenders are prone to charge up to 4% in origination fees and 5-13% in liquidation fees, Nexo is confident that its improved offer will entice crypto borrowers shopping around for the best deal.

Earn More Interest on Your Crypto Interest Rate

That shopping process has gotten a lot easier thanks to the emergence of crypto lending comparison portals. These platforms provide a side-by-side comparison of what the leading centralized and decentralized lending solutions have to offer. Last week, Coinmarketcap launched a product that heralds its entry into the growing defi market. The tool, which the listing site has dubbed Coinmarketcap Interest, features finance data such as the best annualized interest rates for borrowing and lending cryptocurrencies across a variety of platforms.

Coinmarketcap doesn’t hold first mover advantage in this sphere, however, as there are already a number of high-level tools for analyzing the lending marketplace.

Loanscan

Loanscan is perhaps the gold standard in the sector, and after a redesign in May the site is better than ever. Originally built as a stealth tool for the crypto lending app Linen, Loanscan now serves as a standalone interest comparison product. The site is packed with features, information and graphical visualizations, making it fun just to play around with, depending on your love for data.

The site allows you to view address, protocol, or asset level analytics across a range of timeframes, such as 24-hours, week or month. For those who take a keen interest not only in where the market is today, but where it has been, Loanscan has a historical data tab too.

Earn More Interest on Your Crypto With These Comparison Tools
Loanscan

The range of possibilities with Loanscan is significant, so whether you want to know what the current value of all outstanding loans in the market is ($142M) or what the one-month repayments are ($67M) you shouldn’t have trouble finding the answer. Most importantly, Loanscan also provides comparison tables of the best interest rates for loaning and lending cryptocurrencies featuring DAI, ETH and BTC on platforms such as dYdX, Dharma, Fulcrum and Makerdao.

Due to its depth of information and rich presentation style, Loanscan is probably still the best all-round destination for experienced crypto users, however, there are simpler information sources out there.

Earn More Interest on Your Crypto With These Comparison Tools
Loanscan

Coinmarketcap Interest

While Coinmarketcap Interest doesn’t offer the same level of graphical wizardry as Loanscan, instead opting for a plain yet clean UI, it does pack a punch in terms of the information offered and ease of use. For those already well acquainted with the CMC layout and style, there is little adjustment required to get up to speed with Coinmarketcap Interest.

Earn More Interest on Your Crypto With These Comparison Tools

For the 30 or more stablecoins and cryptocurrencies which feature on CMC Interest, each has two tabs: “Earn Interest” and “Borrow Crypto.” All you need to do is select the currency you’d like to borrow or lend on the left, and then select a preferred platform depending on annualized interest rate, whether the platform is CEX or DEX, and the duration of the loan.

All in all it’s a pretty slick operation and while you don’t get the same level of control or information as you do on Loanscan, for those who just want to make money or borrow it without any of the deep-level analysis, CMC Interest works well.

Defi Pulse

If you’re more interested in broader ecosystem statistics than individual loans, Defi Pulse is another great analytical tool for decentralized finance and statistics geeks. For instance, if you want to know the total amount of money locked up in smart contracts on the Ethereum blockchain, Defi Pulse has got you covered. Want to know the current public network capacity of the Lightning Network? Defi Pulse has that too. You can also find out how much is locked up in DEXs, derivatives, assets and more, making it a highly useful tool for anyone doing deep research into the overall market.

Crypto networks are built upon open access and transparency. Thanks to monitoring sites and comparison tools that tap into solutions built upon these blockchains, cryptocurrency users can determine the best way to maximize their holdings. If you’re interested in interest, it pays to do your research.

What are your favorite defi and lending comparison sites? Let us know in the comments section below.

Disclaimer: This article is for informational purposes only. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.


Images courtesy of Shutterstock.


Did you know you can verify any unconfirmed Bitcoin transaction with our Bitcoin Block Explorer tool? Simply complete a Bitcoin address search to view it on the blockchain. Plus, visit our Bitcoin Charts to see what’s happening in the industry.

The post Earn More Interest on Your Crypto With These Comparison Tools appeared first on Bitcoin News.

Source: Bitcoinnews.com

Traditional Law and Finance Can Adapt to Bitcoin, These Examples Show

Traditional Law and Finance Can Adapt to Bitcoin, These Examples Show

Bitcoin brought about solutions to persistent problems that stood in the way of previous attempts to invent digital money, such as the risk of double spending. Some of its features, however, like the characteristic irreversibility of blockchain transactions, have created certain challenges for the traditional legal and financial systems. At times they may seem incompatible with cryptocurrencies, but that’s not always the case.

Also read: Telegram Offers to Postpone Launch of the TON Network

Legacy Legal Systems Facing Distributed Ledgers

Matthias Lehmann, director of the Institute for International Private and Comparative Law at the University of Bonn, explores some of the challenges decentralized digital currencies pose to the current legal systems and proposes solutions in a recently published article. But Instead of focusing on transfers resulting from fraud, like the media often does, the German professor turns attention to “less reported” but equally possible transactions.

Lehmann highlights two groups of problems – ‘endogenous,’ associated with faulty transfers where the sender commits a mistake or lacks legal capacity to make the transfer, and ‘exogenous’ problems, when a need for correction may arise because of events taking place outside of the blockchain. The latter category includes insolvency proceedings, for example, or succession of crypto assets. The distributed ledger technology (DLT) was designed to prohibit double spending, but it cannot reverse faulty transfers and does not allow for a transfer of title outside the blockchain, the scholar notes.

Traditional Law and Finance Can Adapt to Bitcoin, These Examples Show

These are common problems and they are pretty standard in private law, the legal expert remarks. But imposing the ordinary rules of private law is not an option in the case of cryptocurrencies. That’s because of the irreversibility of blockchain transactions, on the one hand, and the difficulties in establishing the governing law, on the other. Instead of advocating the easy way out by rejecting what doesn’t fit into existing presumptions, Professor Lehmann suggests a workaround.

To fulfil its corrective function under such circumstances, private law may resort to implementing the concept of ‘obligation to make a transfer.’ The author further elaborates: “For instance, a person who has received a certain amount of Bitcoin by error could be obliged to send back the same amount. A transfer obligation may also be the remedy of choice to effectuate the rights of an insolvency administrator or the heir of an estate.” Other existing laws can be applied to permissionless networks too, like the law of torts in the case of a coerced transfer and the law of restitution to return crypto assets sent by mistake.

Matthias Lehmann thinks the validity of a blockchain transfer should not be assessed using the ordinary concepts of property law and insists that when a correction is needed, transfer obligations will do the job. Thus an “overly assertive role of the law that would make the DLT inefficient and ultimately unviable” can be avoided. The proposed solution corrects the results of a transaction “only to the extent necessary, using the forms and procedures of the DLT” and “dispenses with the need for identifying one national law governing the blockchain by distributing the applicable rules among the various affected legal systems.”

Daily Fixing Formula Proposed for Bitcoin

Decentralized digital currencies are also criticized by the establishment for their volatility which, according to the apologists of the fiat system, makes them inappropriate for a number of applications that require a stable unit of account. The rapid and sometimes significant change in market prices makes it hard to accurately gauge the value of items priced in cryptocurrency, they claim for instance, despite the existence of products and services that already bridge the gap between young, free crypto markets and traditional markets dominated by centrally managed fiat systems.

Traditional Law and Finance Can Adapt to Bitcoin, These Examples Show

One of the characteristics of the crypto space that distinguishes it from the traditional financial world is that bitcoin doesn’t have a fixed exchange rate against other currencies such as those determined by central banks for fiat currencies. However, a reference figure like that is sometimes needed, for example, in court cases involving financial relations or when estimating someone’s tax obligations for holdings in a currency different from the national fiat.

The Russian Association of Cryptoindustry and Blockchain and the Russian Bar Association have recently proposed a solution. The two organizations came up with a formula to set an ‘official,’ so to speak, exchange rate for a particular cryptocurrency. Price data acquired from several digital asset exchanges every 30 seconds will be used to calculate a daily weighted average and the result will be published once every 24 hours. Taking that value as a benchmark, reference exchange rates against the U.S. dollar and the Russian ruble can also be determined and used in accounting.

Do you think traditional legal and financial systems can adapt to incorporate cryptocurrencies? Share your thoughts on the subject in the comments section below.


Images courtesy of Shutterstock.


Do you want to keep an eye on moving cryptocurrency prices? Visit our Bitcoin Markets tool to get real-time price updates, and head over to our Blockchain Explorer tool to view all previous BCH and BTC transactions.

The post Traditional Law and Finance Can Adapt to Bitcoin, These Examples Show appeared first on Bitcoin News.

Source: Bitcoinnews.com

Market Outlook: Crypto Prices Hold Steady but Face a Crucial Turning Point

Market Outlook: Crypto Prices Hold Steady but Face a Crucial Turning Point

After sitting around $257 billion, the cryptocurrency market lost $35 billion in less than 30 minutes on September 24. Since then, many digital assets have found new support, but bears have started to claw away at these areas. Most cryptocurrencies are testing their weekly support trendline that started gathering steam in May as the market approaches a crucial turning point.

Also read: The World Bank’s Blockchain Bond Is Just a Fancy Way of Selling Debt

While Holding Foundational Support, Crypto Markets Face a Fork in the Road

On October 20, digital currency markets are meandering at levels not seen since spring and many traders are uncertain where the road will lead. The market cap of all 2,000+ cryptocurrencies is hovering around $220 billion and global trade volume is about $50 billion. BTC has wavered between $7,900-8,090 in the last 24 hours and prices are down 4.7% for the week. The overall BTC market valuation is $144 billion out of the $220 billion, representing 66% dominance over other coins.

Market Outlook: Cryptocurrencies Hold Steady But Face a Crucial Turning Point

Ethereum (ETH) is down 5.4% this Sunday and each ETH is swapping for $173. Behind ETH is ripple (XRP) as each coin is trading for $0.29 but prices are up 4% over the last seven days. The stablecoin tether (USDT) is sitting in fourth position today as lots of traders are using the coin to hedge. Tether is capturing the majority of global trades across nearly every digital asset in the economy and USDT is trading $3.8 billion more in volume than BTC today.

Market Outlook: Cryptocurrencies Hold Steady But Face a Crucial Turning Point

Bitcoin Cash (BCH) Market Action

The fifth largest market capitalization is held by bitcoin cash (BCH) with a total valuation of around $3.8 billion at press time. Each BCH is swapping for $215 per coin at the moment and there’s a touch over a billion in global trade volume today. BCH is down 0.44% this Sunday, and over the last seven days the asset has lost 4.7%. Additionally, BCH is currently the seventh most traded coin below EOS and above TRX. Tether (USDT) is the top pair traded with BCH, capturing 55% of the day’s trades and BTC has around 20% of trades.

Market Outlook: Cryptocurrencies Hold Steady But Face a Crucial Turning Point

This is followed by ETH (11.6%), USD (10%), and KRW (1%). During the last few weeks, honestcoin (USDH) has entered the top 10 pairs with BCH and currently sits in seventh position. The dumps taking place across the broader crypto markets have caused BCH to slide in value but its has steered clear of a key support level between $195-205.

Whale Movements and Rekt Long Positions

Traders have seen some significant price movements since the end of September and during this time large holders have been moving massive sums of cryptocurrencies. According to Whale Alert, a Twitter bot that tracks coins like BTC, ETH, XRP, USDT, EOS, BNB, and XLM, millions of dollars (occasionally a billion) in single transactions have been moved by whales.

On October 17, a transaction for 9,999 BTC was seen and millions of tethers are moving between huge wallets and the top exchanges on a regular basis. In addition to the enormous movements, another tracker called Whalecalls shows that a bunch of traders playing long positions on Okcoin are being liquidated routinely. Similar action can be seen on leveraged markets on Bitfinex and Bitmex as well.

Futures Markets Might Be Smacking BTC Prices Around

People have been obsessed for quite some time trying to figure out why BTC prices move a certain way. The last two weeks of bearish action have been odd to some traders but other speculators believe the volatility is stemming from futures markets. When Bakkt first launched and the price of BTC dropped significantly on September 24, the senior market analyst at Etoro, Mati Greenspan, said: “The catalyst for today’s plunge, in my mind, seems to be the underwhelming launch of Bakkt. [This is a prime example] of buy the rumor, sell the news.”

Market Outlook: Cryptocurrencies Hold Steady But Face a Crucial Turning Point

“Bitcoin’s recent price drop is a result of technical and fundamental factors, including a breakdown of the consolidation range, Bakkt’s tame launch of futures, and a sudden network hash rate drop,” explained Joe DiPasquale, CEO of Bitbull Capital, after the initial price drop. On October 13, Zak Selbert, chief executive of Indexica, explained that the action is due to BTC’s maturity in traditional capital markets.

“Now that bitcoin is a big kid, anything can make it move, just like anything can make gold or a G-10 currency move,” Selbert said. “Bitcoin is part of the financial landscape in a very intertwined and mature way.”

Fear and Head-Fakes

During the last two weeks or longer, the general sentiment throughout the cryptoconomy has been quite bearish. At the time of writing, the Crypto Fear and Greed Index (CFGI) indicates that investors are showing a level of “fear.” However, in August the CFGI score was an 11, which pointed to “extreme fear” in regard to the crypto community’s emotions and sentiments. Today’s data stands at 37, which is far better than the summer.

The CFGI index dropped to a low of 24 on September 27, indicating that even though market trends have been dreary, the general sentiment is improving. While watching BTC/USD movements on October 17, technical analyst John Bollinger stated that there was a possibility of a “head-fake.” Essentially, a head-fake is when an asset’s price makes a swing in the reverse direction out of nowhere but traditionally when prices touch support foundations.

Market Outlook: Cryptocurrencies Hold Steady But Face a Crucial Turning Point

All Eyes Are Watching Crypto Charts, Indicators and Any Signs of Forecast Signals

At the time of publication, most digital asset prices are wandering aimlessly just above the support levels held months ago. Traders have their eyes peeled while closely watching moving averages, liquidity, global trade volumes, and major support or resistance levels. It’s safe to say that even the most prescient analysts do not know which way crypto markets will swing from here. However, veteran traders understand very well that market prices are at a pivotal position and face a fork in the road.

Where do you see the cryptocurrency markets heading from here? Let us know what you think about this subject in the comments section below.

Disclaimer: Price articles and market updates are intended for informational purposes only and should not be considered as trading advice. Neither Bitcoin.com nor the author is responsible for any losses or gains, as the ultimate decision to conduct a trade is made by the reader. Always remember that only those in possession of the private keys are in control of the “money.” Cryptocurrency prices referenced in this article were recorded at 11:30 a.m. EDT.


Images via Shutterstock, Trading View, Bitcoin.com Markets, Getty, Wiki Commons, and Pixabay.


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Source: Bitcoinnews.com

‘No-Deal Brexit Huge Positive for UK Cryptocurrency’ – How Brexit Could Affect the Industry

'No-Deal Brexit Huge Positive for UK Cryptocurrency' - How Brexit Could Affect the Industry

British lawmakers have voted to postpone a crucial Brexit vote and forced Prime Minister Boris Johnson to ask the EU for an extension. News.Bitcoin.com talked to the CEO of a local crypto exchange to find out the effects a no-deal Brexit could have on the crypto industry.

Also read: SEC Wants Second Look at Bitwise Bitcoin ETF Proposal

Effects of No-Deal Brexit on Cryptocurrencies

On Saturday, the British parliament voted to put off a decision on Prime Minister Boris Johnson’s deal, forcing him to ask the EU for another Brexit delay. William Thomas, CEO of peer-to-peer exchange Cryptomate, explained to news.Bitcoin.com that many people are calling this deal “‘Brexit in name only’ as it still ties us in with many EU institutions, including future regulatory alignment,” adding that a no-deal Brexit is becoming even more of a possibility.

'No-Deal Brexit Huge Positive for UK Cryptocurrency' - How Brexit Could Affect the Industry
Boris Johnson trying to convince Parliament of his Brexit deal.

In the event of no-deal being reached by Oct. 31, Thomas said, “there will be substantial uncertainty within British and EU financial institutions.” However, in terms of whether it will create demand for bitcoin and cryptocurrency in general, “I am not so certain,” he admitted, elaborating:

I would expect to see some upward movement on BTC/GBP markets shortly after the deadline, but since the British pound is a small portion of global crypto volume it may not have a large overall effect on price as some have predicted.

“It will, however, have a positive impact within the British market, but the degree of which this will affect the global cryptocurrency markets is speculative at this time,” he opined.

Cryptomate allows British users to purchase a wide range of cryptocurrencies via instant bank transfer. The platform claims to have served 11,250 customers, filled 44,853 orders worth approximately 14.43 million British pounds (~$18.74 million).

How the UK Crypto Industry Could Be Affected

Thomas further explained to news.Bitcoin.com how the U.K. cryptocurrency industry will likely be affected in the event of a no-deal Brexit. “For larger traditional financial service industries that operate out of London, there are safeguards that will see financial services ‘passporting’ to the EU market will continue until future agreements are made,” he remarked.

'No-Deal Brexit Huge Positive for UK Cryptocurrency' - How Brexit Could Affect the Industry

However, there is nothing in place and very little guidance from the British Financial Conduct Authority (FCA) about how this should affect the crypto industry and related services. “There is a huge lack of clarity in the area,” he emphasized. Nonetheless, he shared:

It’s my personal belief that a no-deal Brexit would be a huge positive for the U.K. cryptocurrency industry in the long term, as it enables us to create our own regulatory systems without interference from the EU – who are much less friendly to the industry as a whole compared to the U.K.

Other Expectations

For European Union customers who use British-based exchange/wallet services and vise-versa, Thomas said that a no-deal Brexit “will have very little impact” on them. “British and EU customers will still be able to use SEPA bank payments which account for most exchange deposits within Europe, so trading volume should remain unchanged,” the CEO continued, noting:

Britain will continue regulatory alignment with the EU the day after we leave (until December 2020) so there’s no reason to think there will be any major disruption to banking or money services on November 1st.

'No-Deal Brexit Huge Positive for UK Cryptocurrency' - How Brexit Could Affect the Industry

As for Cryptomate, Thomas confirmed: “We will continue to accept European Union customers who have access to UK banking and this policy will not change unless we’re told differently by the FCA.” He added that most sellers on his platform have indicated that they “will be keeping their trading funds in USDT, as opposed to GBP or EUR,” noting:

We would expect to see demand for bitcoin and others increase during November, as a no-deal is likely to see the pound weaken further against the euro (and the euro vs the dollar) as people look for safe havens outside of fiat.

How do you think Brexit will affect the crypto industry? Let us know in the comments section below.


Images courtesy of Shutterstock and the Financial Times.


Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here.

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Source: Bitcoinnews.com

Fed Research Considers Negative Interest Rates Effective Policy Tool

Fed Research Considers Negative Interest Rates Effective Policy Tool

A research paper published by the Federal Reserve Bank of San Francisco shows how negative interest rates could become an important policy tool for fighting future economic downturns. The paper examines the market response to the introduction of negative interest rates by five major central banks.

Also read: Where US Regulators Stand on Cryptocurrency

Fed Studies Negative Rates as Important Policy Tool

The Federal Reserve Bank of San Francisco published a research paper last week exploring the effects of central banks introducing negative interest rates. The paper, entitled “Yield Curve Responses to Introducing Negative Policy Rates,” is authored by Jens H.E. Christensen, a research advisor in the Economic Research Department of the Federal Reserve Bank of San Francisco. This department conducts research on a wide range of topics in support of the Federal Reserve Bank’s policy and public outreach functions.

Fed Research Considers Negative Interest Rates Effective Policy Tool

“Given the low level of interest rates in many developed economies, negative interest rates could become an important policy tool for fighting future economic downturns,” the author proposed, elaborating:

With short- and medium-term interest rates near historical lows in many developed countries, central banks’ latitude to provide adequate monetary stimulus during a future economic downturn has been severely curtailed.

Examining 5 Central Banks With Negative Rates

Christensen examined five central banks that have already introduced negative interest rates: the Danish National Bank, the European Central Bank (ECB), the Swiss National Bank, the Swedish Riksbank, and the Bank of Japan. The Danish National Bank introduced a negative rate in July 2012.

Fed Research Considers Negative Interest Rates Effective Policy Tool

He explained that one way to measure the effects of negative interest rates “is through the financial market reaction as reflected in the change of the government bond yield curve when negative policy rates are introduced for the first time.” He clarified that government bond yields were chosen for the study because “they represent a common and widely used benchmark that is available in all five cases.”

According to his research, “The large level decline in the entire yield curve in all five cases reveals that the zero lower bound is a constraint only in theory and not in practice,” Christensen claims. “These results demonstrate that negative rates are effective in lowering yields of all maturities; they thereby help ease financial conditions in much the same way that lowering the policy rate works away from the zero lower bound.”

Fed Research Considers Negative Interest Rates Effective Policy Tool

Christensen further asserted that “More importantly, though, subsequent developments have shown that short- and medium-term yields are able to assume values significantly below zero for a prolonged period,” referencing the two-year government bond yields chart shown below. “Also, the notable variation in negative medium-term yields implies that there is no obvious effective lower bound beyond the empirical fact that it is clearly located significantly below zero,” he further claims.

Fed Research Considers Negative Interest Rates Effective Policy Tool

Reiterating that “the entire yield curve for government bonds in those economies tends to shift lower,” Christensen believes, “This suggests that negative rates may be an effective monetary policy tool to help ease financial conditions.” In addition, with “the ultimate effective lower bound for short-term nominal interest rates are significantly below zero, at least for the five economies considered here,” the Fed researcher concluded:

Central banks that have yet to introduce negative rates may take some comfort from this evidence as there appears to be room below zero for additional economic stimulus.

ECB Rate Cuts Affecting Banks

The European Central Bank’s key interest rate turned negative in 2014. Last month, the ECB cut its key rate to a record low of -0.5% from -0.4%. The negative rate policy is forcing European banks to pass on the burden to their customers, such as in the case of major German coop bank Berliner Volksbank. The bank started applying a -0.5% rate on deposits exceeding 100,000 euros (~$110,000) this month.

Fed Research Considers Negative Interest Rates Effective Policy Tool
Bank of Italy Governor Ignazio Visco

A number of European central bankers have voiced their concerns over further ECB rate cuts. Bank of Italy Governor Ignazio Visco, for example, said at a conference on the sidelines of the IMF and World Bank fall meetings on Thursday: “Banks may shrink their loan supply. That is the reason why we are on one side concerned.” He was further quoted by Reuters as saying:

I think we have to be very careful of the possible negative effects of negative rates.

Oswald Gruebel, a former Credit Suisse CEO and an ex-executive of UBS Group AG, remarked in a recent interview: “Negative interest rates are crazy. That means money is not worth anything any more … As long as we have negative interest rates, the financial industry will continue to shrink.”

What do you think of the Federal Reserve study suggesting that negative interest rates could be an effective monetary policy tool? Let us know in the comments section below.


Images courtesy of Shutterstock and the Federal Reserve Bank of San Francisco.


Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here.

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Source: Bitcoinnews.com

How to Trade Crypto in Person Safely

How to Trade Crypto in Person Safely

With mainstream exchanges becoming progressively cumbersome due to privacy invasive policy and regulation, some crypto traders are switching to more private, face-to-face trading. While this route isn’t for everyone, and comes with unique risks, it does offer a very real solution to many of the problems plaguing mainstream exchanges currently. The goal of this breakdown is to provide a few best practices for safety and success when trading crypto in person.

Also Read: Bitcoin Cash Roundup: Adoption Stories and New Developments

Why Face to Face?

For anyone that’s ever had their money frozen on an exchange, this question is a no-brainer. Since most exchange wallets are custodial, meaning the service itself holds and manages user funds centrally, one bug in the code, hack, or audit from a governmental regulatory agency could mean that you and your money are parted indefinitely. Stomach sinkers of this nature have occurred often enough that many, understandably, don’t want to run these risks anymore. Others are concerned about privacy and the security of their personal data and information. Trading in person via a non-custodial platform or otherwise lets traders hold funds until the very last second, and guarantees more control. Still, there are important things to be mindful of in order to trade safely and successfully.

How to Trade Crypto in Person Safely

Best Practices

To avoid getting scammed, set up, or potentially endangered, there are some time-tested best practices for trading face to face. The overarching one is simple, though: just use common sense.

Choose a trustworthy platform / trader

Maybe you know someone in your community who also uses cryptocurrencies. Perhaps a friend of a friend, or an acquaintance interested in getting into crypto, but they don’t know how. Online, reliable peer-to-peer platforms such as that currently offered at local.bitcoin.com are great places to start. Platforms that offer blind escrow, and end-to-end chat encryption are the safest bets. Whatever one’s approach, testing first and vetting for reliability is critical.

Using shoddy, unproven platforms or trading with strangers who’ve no reputation for being honest probably won’t end well. There are scammers as well as government agents on some p2p networks, and in real life, more than happy to ensnare even innocent, legal users of crypto for their own benefit.

Well-managed platforms will have a reputation system in place so users can verify which traders have completed the most trades successfully, and feedback features for rating their quality of service. Be sure to work out all the specifics of the trading process and procedure in clear detail on an encrypted chat application prior to meeting for the trade.

How to Trade Crypto in Person Safely

Meet in an open, highly visible public space

After working out the specifics of your deal, and providing only necessary information to the contact, meet in an open, highly visible space that is frequented by people but also provides enough serenity to conduct business. A well-lit coffee shop or popular meeting spot in view of the public can be a great place to conduct crypto trades. Trust your gut in meeting someone for the first time, and if anything “feels off,” don’t hesitate to politely back out.

How to Trade Crypto in Person Safely
Offers for trading in person at local.Bitcoin.com.

Show me the money, discreetly

A great way to get scammed face to face is to send your bitcoins to the guy across the table and watch him run off without paying you. In this situation you could give chase (risky), yell, flail about, or call the cops, but you’re more than likely just SOL. Be sure the other person lets you see the money, gift cards, etc., first, before sending any coins.

Most respectable traders will place money on the table discreetly (in an envelope or book) so that it is within reach of both parties, and sudden moves to bolt are not likely to succeed. Once the tx has enough confirmations for the buyer’s liking, they should slide the money over and invite the other party to count it. If you are the one buying crypto be sure to make the seller feel at ease by setting up the trade similarly. Crypto-to-crypto deals require a bit more creativity perhaps, but having both devices in reach and openly in view can help.

How to Trade Crypto in Person Safely

Horse Sense Is Number One

There are limitless options for working out trustworthy trade arrangements, including step-by-step, fractional trades to test the waters on first meeting, PGP contracts making it difficult for a party to lie about the agreement after the fact, and verification via other contacts of a trader’s reputation. However, as mentioned earlier, the main thing is to trust your reason, and gut instinct. If some aspect of a crypto trade arrangement feels spooky or inconsistent, it’s more than okay to kick the deal and get out. More often than not, however, in person trades are fun, friendly experiences that can be a good way to get out of the typically isolated, smugly self-referential hell that is crypto Twitter, catching a breath of fresh air while stacking sats and building the bitcoin economy.

What are your recommended best practices for trading in person? Let us know in the comments section below.

Disclaimer: This article is for informational purposes only. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.


Images courtesy of vidalgo, Shutterstock, local.Bitcoin.com.


Did you know you can verify any unconfirmed Bitcoin transaction with our Bitcoin Block Explorer tool? Simply complete a Bitcoin address search to view it on the blockchain. Plus, visit our Bitcoin Charts to see what’s happening in the industry.

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Source: Bitcoinnews.com

Bitcoin Cash Roundup: Adoption Stories and New Developments

Bitcoin Cash Roundup: Adoption Stories and New Developments

Bitcoin Cash (BCH) adoption, development, and participation continue to spread as there’s been a myriad of BCH-related announcements in the last few weeks. Moreover, there’s now over 18 million bitcoin cash in circulation and only three million coins left to mine.

Also read: Ethereum Name Service Adds Infrastructure for Multi-Currency Support

Bitcoin Cash Adoption and Announcements

The last few weeks have seen a variety of new adoption stories, software development, and new platforms that utilize BCH. Proponents of the decentralized cryptocurrency have been relentlessly pushing for mass adoption while showing a strong dedication toward scaling. Right now the price of bitcoin cash is hovering between $210-230 after most digital assets dropped a few percentages in value last week.

Bitcoin Cash Roundup: Adoption Stories and New Developments
Coin Dance BCH statistics in comparison to BTC.

According to Coin Dance statistics, it is 489x more expensive to transact on the BTC chain in comparison to using the BCH network. Additionally, at the time of publication it is currently 3.5% more profitable to mine on the Bitcoin Cash blockchain. BCH fans have also witnessed the 18 millionth coin mined on the chain and there’s now only three million BCH left to mine. The fact that there are so few left makes bitcoin cash scarce and far superior to the fiat currencies that can be printed on a whim.

Bitcoincash.org’s Developer Portal

On October 10, the website bitcoincash.org announced it is launching a developer portal so programmers can utilize tools to develop and build on BCH. “Create amazing apps with Bitcoin Cash with resources for developers, by developers,” the website explains. The bitcoincash.org developer portal has tools like Python and Javascript libraries, vocabulary and associated APIs for Bitcoin Cash, the Badger Wallet software development kit (SDK), and an SLP SDK. The portal gives blockchain engineers the means to create infrastructure and third-party services for the BCH chain.

Bitcoin ABC Version 0.20.4 and the November 15 Upgrade

Six days later, the Bitcoin ABC development team released Bitcoin ABC version 0.20.4. The latest client release provides users with a new ‘createwallet` RPC command, bug fixes, and more. The 0.20.4 version is available to download now for a variety of operating systems. In addition to the recent release, BCH developers from across multiple clients are preparing for the forthcoming November upgrade. BCH engineers plan to implement two new features: Schnorr support for OP_Checkmultisig and enforcing Minimaldata in script, otherwise known as the “Minimaldata” rule.

Bitcoin Cash Roundup: Adoption Stories and New Developments

Telefuel Accepts Bitcoin Cash

A new unofficial platform for the Telegram messaging application Telefuel has announced the firm is now accepting bitcoin cash payments for its premium-tier services. Telefuel is an application for Telegram power users who can leverage the platform for coworking, collaboration, and productivity offerings. For instance, with Telefuel users can access Slack-like services that can support individual and group workflows. Features include chat folders, workspaces, keyboard shortcuts, unread mention filters, and split tabs for DMs, groups, bots, and channels.

Bitcoin Cash Roundup: Adoption Stories and New Developments
Telefuel.

“We’re building Telefuel to serve power users on Telegram, so crypto-industry professionals are obviously an important focus for us,” Telefuel co-founder Alan VanToai detailed. “Bitcoin Cash is an important pillar in the industry, so we’re happy to include BCH among the currencies we’re accepting for Telefuel Pro.”

Visual Recognition Engine Visionati Accepts Bitcoin Cash for Services

Another service that now accepts BCH is Visionati, a visual recognition engine that leverages artificial intelligence (AI). Visionati believes it’s the “most robust computer vision API on the market” by offering advanced algorithms and data. Users can harness the platform to interact with image and video metadata. Services offered include image and video analysis so people can make images and films searchable with the ability to filter as well. This includes automatic tagging, NSFW filtering, facial recognition, logo detection, color analysis, and optical character recognition. For services, Visionati accepts BCH, ETH, and BTC. The startup believes it is one of the first visual recognition products enhanced by AI that accepts digital assets.

Bitcoin Cash Roundup: Adoption Stories and New Developments
Visionati.

Blockchain.poker’s Tournament Feature

A new feature is available at blockchain.poker for users who want to play poker for BCH, BTC, or BSV. Users can simply log in and sit down for a game or they can create their own tournament on the platform with the added functionality. The site’s owners recently revealed the poker platform’s tournament update on Twitter, explaining: “You can now earn bitcoin by creating your own sponsored tournaments on blockchain.poker. Create a tournament by clicking the “+” button at the bottom of the tournament lobby.”

Bitcoin Cash Roundup: Adoption Stories and New Developments
Blockchain.poker.

This morning a few players announced on the Reddit forum r/btc a 0.5 BCH guaranteed prize pool tournament on the web portal. BCH fans seemed to enjoy the poker site’s announcement and one person remarked: “Keep up the great work guys — I’m convinced this is going to be huge once the key features you described here are implemented. The reputation system should mitigate a good portion of the risk of cheaters if done right.”

Upcoming Consensus Changes and the Road Forward

Overall there’s been a lot happening within the BCH ecosystem and passionate Bitcoin Cash proponents continue to truck forward. Bitcoin Cash miners, businesses, and node operators are also preparing for the consensus changes coming November 15. The upgrade is a touch over two weeks away and according to developers, the added features will continue to bolster the BCH roadmap going forward.

What do you think about all the Bitcoin Cash developments and adoption stories? Let us know what you think about this subject in the comments section below.


Image credits: Shutterstock, Bitcoin ABC, blockchain.poker, Telefuel, Visionati, Coin Dance, and Twitter.


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Source: Bitcoinnews.com