Úno 20

LocalBitcoins Trading Up 1,200% in China Since PBoC Clampdown

· February 20, 2017 · 7:30 am

LocalBitcoins has recorded an exponential 1,200% surge in China trading since the country’s exchanges started reacting to pressure from the People’s Bank of China (PBoC).


36 Million Yuan Per Week and Counting

The week ending February 18th was the best on record for the peer-to-peer marketplace, which registered a global high of over $24 million USD in transactions.

The Chinese market, until just a few weeks ago practically dormant, saw a giant 36 million yuan in transactions compared with the previous week’s 6.6 million, which itself was a previous high.

coin-dance-localbitcoins-all-volume-1

LocalBitcoins has seen a rapid increase in usage for the past few months from countries around the world. Venezuela, Canada, Turkey, and New Zealand have all recently peaked on the platform, due variously to financial clampdowns or – in New Zealand’s case – the closure of one of its longest-running exchanges due to “banking hostility.”

Spreads in highly active markets are unsurprisingly wide, with Chinese users especially paying a premium for convenient fast access to fiat or cryptocurrency.

Lee: PBoC ‘Taking Scrutiny More Seriously Than 2013-14’

February 18th also saw Bobby Lee, CEO of major Chinese exchange BTCC, take to Reddit for an AMA session with the community.

bobby_lee_bitcoinist

While much of the discussion focussed on issues related to Chinese miners’ support of scaling solutions for the Bitcoin network, Lee was predictably coy on matters involving regulators.

“I think that compared with 2013/2014, this time, the PBoC is spending more effort on this and taking it more seriously,” he wrote, adding:

The PBOC will have a strong say in how the bitcoin exchange industry evolves in coming years.

He added he could not comment on topics discussed behind closed doors “beyond what was already announced publicly.”

Over-The-Counter Real King of CNY/BTC?

But despite the LocalBitcoins figures being impressive, their overall effect could be little more than a drop in the ocean. A recent report by WSJ China on Bitcoin’s entry and exit from China highlights three main ways investors are using the currency – and LocalBitcoins is not one of them.

“There are several options: premium-taker, foreign futures exchange and OTC (over-the-counter),” a translation of the original article from news resource 8btc reads.

Bitcoinist_NodeCounter Variety

Given the extremely tight margins involved, even for high-frequency traders, it is likely that the last of these methods is seeing the most action.

“OTC traders are looking for each other through mobile apps, social media tools, forum, website or offline meetups,” 8btc reports.

Some major OTC dealers are hiring people to spam online. Wechat chatbot are being developed for OTC purpose. With the absence of exchange-like monitoring, OTC trading will be even harder to track.

Where do you think is the bulk of Chinese Bitcoin trading happening currently? Let us know in the comments below!


Images courtesy of Shutterstock, Twitter, Coin.dance

Show comments

Share
Úno 03

BTCC CEO: Chinese Bitcoin Capital Flight ‘Simply Not The Case’

· February 3, 2017 · 8:30 am

BTCC exchange CEO Bobby Lee has become the latest Bitcoin figure to refute claims the cryptocurrency is being used for Chinese capital flight.


Lee: Bitcoin Capital Flight ‘Simply Not The Case’

In a post published Wednesday, Lee said that “from everything I’ve seen on the ground here, running one of the largest Bitcoin exchanges in China, this is simply not the case.”

His comments follow those made late last year by Bitquoints CEO Joseph Wang, who described Bitcoin as “useless” for moving money out of China.

bobby_lee_bitcoinist

“The talking point is that many Chinese people are now using Bitcoin as a means to transfer large amounts of their RMB abroad, into other foreign currencies,” Lee wrote.

Yes, many people have been talking about this idea, to use Bitcoin to circumvent China’s capital controls on the RMB. But that’s just media stories feeding the frenzy!

Raft Of Hurdles Face Would-Be BTC Exports

Lee was likely referring to stories such as that which appeared in Singapore publication Straits Times, which interviewed a Chinese businessman allegedly using Bitcoin for the purposes of circumventing capital controls and the declining yuan.

yuan

He continued that the hurdles facing those who wish to use Bitcoin for such purposes require certain skills. In addition, while Bitcoin’s price has broadly steadied as investors shake off worries about a restrictive move by the People’s Bank of China, exchange rate remains a major sticking point for potential Bitcoin-based RMB transfers.

“The biggest problem today with using Bitcoin to evade Chinese capital controls is that there’s just no good guarantee on the eventual effective exchange rate,” Lee said.

For those who have a lot of RMB to move offshore, advanced guarantee of the exchange rate is very important to them. Otherwise, they will prefer another channel, even if the guaranteed rate of exchange is worse than the official rate.

Bitcoin To Mature With Yuan Internationalization

Speculating about the future status quo, Lee considered that reduced controls on the RMB will coincide with Bitcoin being “mature enough” to handle large-volume transfers without the aforementioned risks.

Until then, the arena of transferring Bitcoins around the world remains an area for the professionals, the players who arbitrage prices between Bitcoin exchanges worldwide,” he concluded.

2017

Bitcoin today meanwhile continues to hover around the $1,000 barrier, with mixed opinions as to whether it will stay there. Analysts variously report shifts in either direction being likely, with the corresponding 7,000 RMB mark in China being equally important psychologically. Chinese trading volumes declined sharply by as much as 92% in January after exchanges imposed trading fees to curb volatility.

Do you agree with Lee that Bitcoin in not a major capital flight tool? Let us know in the comments below!


Images courtesy of Shutterstock, Twitter

Show comments

Share
Led 05

A New Bitcoin Bull-Run is Here, Google Trends Show

· January 5, 2017 · 5:00 am

As Bitcoin nears parity with gold, Google trends indicators are showing that this may only be the start of another major run-up in value on the way to higher highs.


Bitcoin Uptick in Global Trends

Bitcoin performed amazingly well throughout 2016, increasing over 120% in value, reaching its all-time high market cap, breaking the $,1000 mark on the first day of 2017.

Although the $1000 surge was expected by many, the continuous rise of Bitcoin continues to amaze the public at large. Driven by political and economic factors throughout the world, global interest in Bitcoin is once again surging in Google search trends:

1231231

China is a well-known driving force in the Bitcoin price, a super-power in both mining and trading of the cryptocurrency. Although interest in Bitcoin was high at the time of the first $1,000 surge in 2013, the Chinese population is becoming more interested in Bitcoin.

Bitcoin’s popularity in China is strongly connected to the devaluation of the Chinese Yuan and the tightening of capital flight restrictions. In fact, both the price of Bitcoin and the devaluation of the CNY seem to be correlated, as noted by J. Scigala of Vaultoro:

As a larger portion of China’s enormous population enters the cryptocurrency scene, Bitcoin may continue to increase in value exponentially.

Regional Interest

While the price phenomenon is largely driven by China, searches for “Bitcoin” are soaring particularly in countries where it is most needed.

It is also becoming increasingly popular especially in Africa. For example, Nigeria and Ghana topped the list of countries most interested in Bitcoin, according to Google Trends. In both countries, the national fiat currency suffers from high inflation rates.

weq

Elsewhere, inflation and demonetization continue to push citizens towards Bitcoin. This can be noted in both trading volumes and Google trends. In Venezuela, Bitcoin searches have also reached all-time figures, a country where inflation is unmatched and demonetization threatens to worsen the situation.

Searches for “Bitcoin” in the country have been ever-increasing as a result:

asdasdasda

But demonetization has perhaps affected India the worst, with the highest denomination notes being removed much quicker than anyone anticipated. Trading volumes reached all-time high figures in November when the demonetization took effect. Searches for “Bitcoin” have also reached an all-time high, as Indian citizens look for ways to escape the effects of the war on cash.

india

Both trading volume and search trends also broke records in Pakistan following the announcement of similar demonetization policies.

As price continues to rise, on more sustainable terms than the first time, and the public begins to notice, these countries may become increasingly interested in Bitcoin. This could mean the start of a new era for Bitcoin, as a five figure Bitcoin becomes more and more realistic.

Mainstream Media Paying Attention

In an interview with CNBC, BTCC CEO Bobby Lee notes the political effects of global demonetization policies. He adds that Bitcoin could be setting up for higher highs saying,

In the past few years what we’ve seen is whenever we’ve hit it all-time high, Bitcoin will actually exceed its last all time high and go up by a factor of three to five x or even more. So if it cross the 1,300 dollar all-time high, it might even go up to several thousand dollars per bitcoin.

Indeed, as Bitcoin has just broken its all-time high and a new bull-run may be upon us with a good chance of higher highs in 2017.

You can check out the full interview below:

Is this only the beginning of a new bitcoin bull-run? Share your thoughts below!


Images courtesy of Shutterstock, googletrends, twitter

Show comments

Share
Led 20

TNABC 2016 Ticket Giveaway Closed: The Winner Has Been Chosen!

Source: bitcoin

tnabc

Editor’s note: If you receive an email saying that you are a winner, you will be asked to provide us with your full name. That way, you will be added to the list, and will be permitted entry upon arriving at the TNABC 2016 venue. 

The North American Bitcoin Conference’s (TNABC) 2016 Miami event will kick off tomorrow, January 21. This conference is sure to be a good one; famous names in the Bitcoin community will give talks during the two-day event, including Patrick Byrne, Brock Pierce, Bobby Lee, Jerry Brito, Bruce Fenton, and Tone Vays. On January 15, 2016, we opened a competition to give away a free ticket to the event. This giveaway was a great opportunity to gain access to the conference, as the only tickets left for sale were the $349 USD “Last Minute Tickets. ” Today, the giveaway is closed, and a winner has been chosen. 

Also read: Bitcoin Helps Consumers Transition To Cashless Payments

TNABC 2016 Ticket Giveaway

To enter the giveaway, all our readers had to do was sign up for our daily newsletter. After signing up for our newsletter, readers would get daily emails from us with information relevant to our website and the news we cover. We randomly selected a winner from the list of email subscriptions that came in.

The North American Bitcoin Conference is one of the most popular annual events in the Bitcoin community. The Miami meetup always features big names in the Bitcoin industry, such as high profile Bitcoin entrepreneurs and protocol developers. TNABC has been the site for big announcements for innovations and businesses since its inception — and this year will likely not be any different. With the Bitcoin block size debate in full swing, and the recent proposal of Bitcoin Classic, the discussions attendees will find at TNABC 2016 are sure to be interesting in the very least.

We hope our ticket winner enjoys their time at TNABC 2016. Please keep coming back to Bitcoinist for the best crypto-industry news and more high quality giveaways.

Are you attending The North American Bitcoin Conference 2016 in Miami? Let us know in the comments below!


Images courtesy of The North American Bitcoin Conference. 

The post TNABC 2016 Ticket Giveaway Closed: The Winner Has Been Chosen! appeared first on Bitcoinist.net.

TNABC 2016 Ticket Giveaway Closed: The Winner Has Been Chosen!

Share
Pro 30

Moe Levin on TNABC Miami 2016, Patrick Byrne Speaking This Year

Source: bitcoin

North American Bitcoin Conference
Moe Levin, the organizer of The North American Bitcoin Conference, has set up an excellent lineup of speakers and presenters for the 2016 show. This year, people like Patrick Byrne, Tone Vays, Bobby Lee, Jerry Brito and others will highlight a packed conference. 
The 2016 conference will take place between January 21 and 22. The North American Bitcoin Conference is one of the largest events in the Bitcoin community, drawing in many attendees who come to see renowned figures in the Bitcoin space. In the past, Bitcoin giants such as Jeffrey Tucker, Tony Gallippi and Vitalik Buterin have spoken at the Miami conference. In fact, in 2014, Buterin made history by announcing his Ethereum project at a TNABC event.
Bitcoinist was able to interview Moe Levin about this year’s conference, and what we can expect from this monumental Bitcoin event.

The North American Bitcoin Conference has come full circle and will be back in Miami on Jan 21-22. What are some of the things you are looking forward to at this year’s event?
This is the highlight of the year for us and many people in the ecosystem. The Miami conference gives us time to reflect on the past year, and set the agenda and direction for the next year. I’m looking forward to having Patrick Byrne speaking at the conference. It will be his first time with us, and I’m looking forward to hearing his views on using the blockchain to increase transparency. A lot of what I’m looking forward to is seeing old friends and new friends reconnect and share their experiences over the last year, and work together to make a better tomorrow.
What are some of the changes you have seen over the last year that have impacted Bitcoin and the conferences?
There remains some difficulty achieving consensus among developers and companies about the direction bitcoin should take. There is no easy way to solve this, but the people at Scaling Bitcoin are making a great effort to get the right people in the room to discuss these tough topics.
From a conference perspective, 2015 was slower than 2014, certainly. In 2014, it seemed like there was a conference every other week, and that might have had to do with the great press and high price of bitcoin. As 2015 came around, it looked a bit bleak at times, and I think that translated into people spending more time working on product rather than travelling and collaborating and exploring new and alternative ideas.
I hope 2016 will include a stable rise of bitcoin, more collaboration, and lots of sun in bitcoin.

Patrick Byrne and Bobby Lee Head a Diverse Lineup of Speakers

Who are some of the key speakers you are excited about this year?
As mentioned above, Patrick Byrne is a great speaker and pioneer in so many different industries. Bobby Lee will be speaking and offers unique and important views about the ecosystem in China and developments in the region. We’ve got a great mining panel set up with Marco Streng from Genesis Miners, who continues to innovate and expand their operations. J Maurice, from Private Internet Access is one of the smartest CTOs in the space, and I’m really looking forward to hearing his talk about security and how to protect your privacy online. That’s a speech everyone should listen to.
How do you feel about the convergence of the blockchain and FinTech over the last year?
I think it’s a natural convergence that is still maturing. We won’t know if this convergence is working for at least another while, so best is to remain open and collaborative and support projects that lead to fulfilling some of the original promises of bitcoin. I’m most hopeful of some remittance startups using bitcoin as the backend to really make it big in 2016.
Do you have any announcements you are excited about this year?
There will be at least three huge product launches in Miami that I wish I could share with you.
What are some things we have not touched on yet that you would like to discuss?
Bitcoinist.net and bitcoin.com remain the best places for bitcoin and crypto news online and keep up the great work!

Thank you Moe for the interview. TNABC Miami is shaking up to be an interesting one this year like the last. Moe teasing big announcements at the show should bring some life to the usual staid conference fair. Bitcoinist will be bringing you interviews with some of the participants as we close in on the show as well as coverage of it as it happens.
What presenters are you looking forward to at TNABC this year and what would you ask them? Let us know in the comments below!

Images courtesy of TNABC Miami

The post Moe Levin on TNABC Miami 2016, Patrick Byrne Speaking This Year appeared first on Bitcoinist.net.

Moe Levin on TNABC Miami 2016, Patrick Byrne Speaking This Year

Share
Pro 30

Bitcoin Predictions For 2016: The Year of the Monkey

Source: bitcoin

Bitcoin 2016

Bitcoin finally had a successful comeback towards the end of 2015, declared by many as the “Year of the Blockchain.” With all the hype surrounding Bitcoin and the blockchain during 2015, there has been much speculation towards next year’s approach to cryptocurrency. As 2014 was filled with scandal, Altcoins, and ending up being the worst global currency of that year. 

Also read: Pirate Bay Co-Founder Attacks Music Industry With New Gadget

The New Year is approaching, and many are wondering what to expect from the fun and volatile world of Bitcoin. 2015 has proven well for the digital currency, showing remarkably better performance than in 2014. Bloomberg reported the virtual money was the world’s worst-performing currency in 2014, losing more than 57 percent of its value against the dollar.” But now the finance publication says in 2015 that “Bitcoin has won,” and Apple did not.” The currency’s value has gained close to 40% they report and seem to believe it may be due to “a technological escape route from government’s snooping into our financial affairs.” 

Bloomberg is not the only one reporting Bitcoin’s fantastic year. SG Kinsman reveals via a blog on Medium that “Bitcoin has been the world’s strongest currency in 2015,” outperforming the Israeli Shekel, U.S. Dollar, Swiss Franc, and the Japanese Yen. Kinsman explains that the digital currency may have been a strong asset class this year as well saying, “there’s an argument to be made that Bitcoin is the top performing asset in 2015.”

Banks have also shown strong affection towards the technology behind Bitcoin this year. Just before the beginning of 2016, forty two very large scale finance institutions are betting on the blockchain. Determined to harness the energy of the digital money without the currency privatized distributed ledgers have been all the rage over the course of 2015. Just as Altcoins took the limelight the year before, permissioned blockchain concepts seemed to pop up shortly after. Many Bitcoin enthusiasts have deemed these centralized blockchains as a failure, and the new “cryptographic ledger only” fascination doesn’t give a clairvoyant view of Bitcoin’s future. Many believe that looking at the blockchain and ignoring Bitcoin is the wrong attitude to hold towards this new currency. The Satoshi Nakamoto Institute’s Daniel Krawisz says:

“A permissioned blockchain is an oxymoron. The whole reason that the blockchain was invented is to make Bitcoin a decentralized and anonymous system in which everyone can come to the same arbitrary consensus about the history of Bitcoin.”  

Some people have viewed all the energy towards permissioned ledgers as a positive sign for Bitcoin, though. The price has rebounded quite well in the last three months of 2015, and many people have predicted certain prices for the upcoming new year. People have been speculating the digital currencies price for quite some time trying to forecast the value of Bitcoin in 2016. For years now it has been suggested by a bunch of people that the virtual money’s price will gain quadruple digits or more this coming year. Some past predictions have been very high at $7600-$10,000 USD.

However, predictions today are far more conservative. Wedbush Securities has predicted the price to be in the $600 range for its 2016 12-month projections. Co-Founder of the Jersey-Based Global Advisors, Daniel Masters, believes the price will touch 2013 price highs again. Masters thinks the price could make it to $4,400 by 2017 and has a positive feeling about the currency’s value.

CEO of the Bitcoin exchange giant, BTCC, Bobby Lee believes the price will also be exceedingly high over the course of next year. Lee thinks the value could increase after the reward halving, possibly reaching prices as high as $3,500 by next summer. The BTCC exchange operator says, Today the worth of bitcoin is $1 per capita in the world (population),” Lee said, referring to the value of all the bitcoins in circulation, around $6.5 billion. “For such an innovative, decentralized digital asset, I say ‘boy, are we undervaluing it.’ But it takes a while for people to realize that.”  These opinions seem to have faith in the cryptocurrency as some predictions in the past seemed dismal. Some have predicted that by now the price would be less than ten dollars and even 0, but that wasn’t the case this year.

Bitcoin is doing great in value and is not suffering from a swarm of negative media and scandals, which is a pretty big deal. The currency’s early years have had many ups and downs, but the digital toddler remains strong and will be an adult before we know it. The best currency of 2015 was Bitcoin, trumping the United States dollar and is providing portfolios with better prospects for hedging in this turbulent economy.

There are some good reasons to invest in the digital currency, and there are some unfavorable ones as well. However, the virtual money is continuously strengthening its infrastructure and value as the final days of 2015 proceed. 2016 will bring some new excitement to the crypto-world — that’s for sure.   

What do you predict will happen to Bitcoin in 2016? Let us know in the comments below!


Images courtesy of Shutterstock and Pixbay  

The post Bitcoin Predictions For 2016: The Year of the Monkey appeared first on Bitcoinist.net.

Bitcoin Predictions For 2016: The Year of the Monkey

Share