Zář 17

Bitcoin Price to Surge After Crossing $10,700: Analyst

Bitcoin price inched lower on Tuesday as investors waited for the outcome of the Federal Reserve’s two-day meeting on monetary policy.


The benchmark cryptocurrency slipped by $44.70, or 0.44 percent, to $10,217.84 as of 13:09 UTC. The downside price action occurred on the sidelines of better-performing alternative cryptocurrencies. While the second-most valuable blockchain Ethereum climbed 2.18 percent against bitcoin, XRP became the second-largest gainer against the king cryptocurrency after rising 5.97 percent. Other altcoins, including Bitcoin Cash, Litecoin, and EOS, also registered impressive gains.

bitcoin, bitcoin price

Bitcoin slips as altcoins surge higher this Tuesday | Image credits: TradingView.com

There is a notion that bitcoin didn’t live up to its “safe-haven asset” status in the face of an adversary. Recent drone attacks on two Saudi Arabia’s crude oil production facilities ended up messing an already worsening global economic outlook. The US’ S&P 500, China’s CSI, and Europe’s Stoxx 600 each dwindled as investors digested the long-term prospects of the Saudi attack. Analysts believe the incident would halt the global oil supply for months, the effect of which will start reflecting on the health of the international markets. 

“While the ultimate impact will depend on a combination of the extent of damage, the US and Saudi response, and whether further attacks occur, the current production decline will exacerbate the tightening in the oil market that was already underway and could add a more lasting geopolitical risk premium to prices,” Greg Sharenow, a portfolio manager at Pimco, told FT.

Almost all the haven assets responded positively to the Saudi attacks. Gold and Treasuries rose as investors looked at them as hedging assets. Unfortunately, bitcoin didn’t live up to the expectations.

The Fed Meeting

All eyes are now on the Federal Reserve meeting that commences today. Markets expect the US central bank to cut interest rate by a 25 basis-point, as the Fed chair Jerome Powell continues to face political pressure from President Donald Trump. Powell’s office will update its dot plot, a visual representation of the direction of the interest rates, while the chairman himself will address the attendees tomorrow with a final decision.

Changes to the dot plot could see influence from the ongoing US-China trade war and Saudi attacks. It would also consider Bank of America Merrill Lynch’s September fund manager poll that found that 38 percent of investors expect a recession over the next 12 months.

Bitcoin Bulls At It

Speculators in the cryptocurrency market see rate cuts as bullish for bitcoin. Coupled with the launch of Bakkt’s most-awaited physically-settled bitcoin futures, traders predict at least a $10,700 bitcoin by the end of this week. But to this date, Bitcoin has least reacted to any of such updates, as visible in the cryptocurrency’s dismissive performance after the European Central Bank (ECB) announced fresh rate cuts and quantitative easing rounds last week.

Dan Tapeiro, the founder of New York-based DTAP Capital, meanwhile brings in a technical perspective. The analyst on Monday said bitcoin could accelerate higher if it manages to “strongly close over $10,700.” The level roughly matches shoulders with a descending trendline.

He, meanwhile, added:

“Everyone “knows” that fact already. In traditional markets, when everyone knows the fact it is considered “priced in.” In Bitcoin, you never know what’s priced in. But it doesn’t matter because Bitcoin doesn’t care about your opinion.”

To sum up, bitcoin can go up, but it can go down also.

Do you think Fed rate cuts will push bitcoin price past $10,700 this week? Let us know in the comments below.


Images via Bitcoinist Image Library, BTC/USD charts by TradingView, Twitter: @thehill, @DTAPCAP

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Zář 16

Bitcoin(dot)com Crypto Exchange Posts Dishonest Volumes

The Bitcoin(dot)com crypto exchange seems to be fibbing its real volumes. The market operator uses the Multiexchange.com service, thus sharing order books with several major markets.


In a tweet, Dan Hedl mentioned that Bitcoin(dot)com merged its orders with Bequant and HitBTC, thus presenting relatively high activity.

Order Books Merged Data from Other Exchanges

The merged order books are one of the ways that exchanges fail to report real-world trading activity. In the past year, new exchanges showed up with immense trading volumes, which were most probably generated by bots. Previous research has shown that faked activity is significant in some markets, making up as much as 90% of all trading. CoinMarketCap has therefore set out on a mission to make exchanges report realistic volumes and reveal order books.

The Bitcoin(dot)com exchange is a new arrival on the crypto scene, launching less than a week ago. The market completes the profile of the Bitcoin(dot)com brand, which also hosts a mining pool and a crypto wallet.

The exchange is also planning to launch a futures market and has opened a procedure with the US Commodities Futures Trading Commission (CFTC).

Bitcoin.com Pushes Bitcoin Cash Forward

The Bitcoin.com brand has received something of a bad rap within the crypto space. The site and its wallets were launched by crypto evangelist Roger Ver. Known as the “Bitcoin Jesus”, Roger Ver then switched teams and started supporting BCH. He was accused of misleading behavior, for securing the Bitcoin.com brand and subtly switching the places of assets within the wallet.

The Bitcoin.com mining pool mines on both the BTC and BCH blockchains. But on the BTC network, the pool only discovers 0.69% of blocks. On the BCH network, the firm discovers between 6 and 8% of all blocks.

At this point, it’s unknown what effect trading on the newly launched exchange will have. It is not yet listed among other markets, and there are no clear statistics. With time, volumes may pick up.

The launch of the Bitcoin.com exchange, for now, fails to lift the market price of BCH. The coin performs with relative stability, trading at around $306.92. BCH is still unable to recover the $400 level from before November 2018, when the asset split and produced Bitcoin SV, another competing network.

What do you think about the Bitcoin.com exchange? Share your thoughts in the comments section below!


Images via Bitcoinist Image Library, Twitter: @danhedl, @BitcoinComExch

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Zář 15

Tim Draper Says $250,000 Bitcoin Price Prediction is Conservative

Billionaire venture capitalist Tim Draper says his bitcoin price forecast of $250,000 by 2022 understates the power of BTC.


Inflation and Government Distrust Will Boost Bitcoin Price

Speaking to BlockTV, Draper described his famous $250,000 bitcoin price forecast as being conservative. According to Draper:

$250,000 means that bitcoin would then have about a 5% market share of the currency world and I think that may be understating the power of bitcoin.

The billionaire investor has consistently maintained his popular bitcoin price prediction calling it “absolutely solid” back in 2018.

The stock-to-flow (S2F) model puts bitcoin’s price post-halving at $50,000. Based on the current number of BTC in circulation, the bitcoin market capitalization at just under $1 trillion.

Thus, Draper’s forecast places bitcoin firmly in the league of assets like gold with market caps in the trillions of dollars range.

As previously reported by Bitcoinist, BTCC founder Bobby Lee believes the bitcoin price could reach $200,000 “in a very short time.”

According to Lee, bitcoin hitting $20,000 again will be the trigger for an even greater parabolic advance that would see the BTC all-time high (ATH) price entering a new order of magnitude.

For Draper, bitcoin provides a viable alternative to fiat currency as currency and government distrust will drive more people into cryptocurrency.

During the interview, founder of Draper Fisher Jurvetson (DFJ) Venture Capital highlighted the situation in Argentina as an example of how people will make the pivot from fiat to BTC.

Back in March 2019, Draper made a wager with Argentina’s President over the price of bitcoin.

Bitcoin Needs to be Easy to Use

During the interview, Draper declared that there was still work needed to be done to make bitcoin easier to use.

The DFJ chief who is himself a bitcoin owner says ease of use will draw more people into adopting cryptocurrencies.

Back in February 2019, Draper predicted that people will be using bitcoin to pay for coffee by 2021. He was even part of $1.25 million investment round for OpenNode — a bitcoin payment processor startup, in late 2018.

Fellow billionaire and bitcoin Jack Dorsey earlier in September noted that why bitcoin appears primed to become the native currency of the internet, it is still some way off from achieving such heights.

What do you think the bitcoin price will be by the end of 2023? Let us know in the comments below.


Images via Shutterstock, Twitter @BLOCKTVnews.

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Zář 13

The US and UK Are Losing the Cryptocurrency Race

As Britain follows the U.S. in its Trumpism style of politics, it seems as if the two countries are hellbent on losing the cryptocurrency race as well.


Countries Leading the Cryptocurrency Race

Institutional investment continues to pour into the cryptocurrency space. With names like the New York Stock Exchange and Microsoft getting on board and legitimizing Bitcoin like never before.

Major corporations around the world like MasterCard and Allianz are investing in blockchain initiatives. The search for talented blockchain developers continues to grow, and many countries around the world are ramping up their efforts in the cryptocurrency race as well.

Portugal, for example, recently announced that it will eliminate tax on all earnings in cryptocurrency. The country’s tax authority further declared that payments and trading cryptocurrency in Portugal are now 100% tax-free.

France has also taken steps toward a friendlier approach to cryptocurrencies. French economy minister Bruno Le Maire recently declared that crypto-to-crypto trades will be tax-exempt. The French authorities will collect tax only when cryptocurrency is converted into fiat.

China, thus far, is the clear leader in the cryptocurrency race. It not only holds 72% of the mining power for Bitcoin, but the astute Asian country also invests the most in blockchain technology.

China is even busy building its own cryptocurrency, taking inspiration from the Marshall Islands.

As well-known legal expert in the space Jake Chervinsky tweeted out, even Iran has eliminated tax on cryptocurrency mining.

So what are the U.S. and UK doing? Dragging their heels. Demanding letters from ICOs, proposing moves to ban crypto derivative products, and dithering over Bitcoin ETFs.

This is a competition, and we’re losing

U.S. and UK Are Actively Halting Crypto Growth

Even worse than their inaction on fostering cryptocurrency innovation, is the negative steps taken so far. Many an innovative startup in the U.S. has been stubbed out by the IRS or SEC.

The UK’s FCA is determined to ban retail crypto derivatives products. The U.S. doesn’t allow its citizens to use them.

Rather than give cryptocurrency entrepreneurs incentives in the form of lower tax, the UK authorities are actively seeking to penalize crypto earners. Last month, British authorities sought data from exchanges like Coinbase and eToro in a bid to find tax evaders.

Trump has made it clear where he stands on Bitcoin and other cryptocurrencies.

The UK Prime Minister, it seems, is too busy fudging his way through Brexit to comment.

However, as long as he continues to cause uncertainty, doubt, and political turmoil in the UK, he may inadvertently be giving Bitcoin a boost as the pound tumbles against the dollar and euro.

While the giants are sleeping, other countries are getting ahead. The cryptocurrency race is on in earnest and the U.S. and UK don’t seem to care.

What do you make of the UK and US’s crypto position? Add your thoughts in the comment section below!


Images via Shutterstock, Twitter @realdonaldtrump, @ jchervinsky, @rhythmtrader

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Zář 11

Tether Churns Printers Again; Mints 20 Million USDT

Tether, the issuer of the USDT dollar-pegged coin, is running the money printer again, increasing the supply to 4.088 billion USDT. After Bitcoin (BTC) price once again threatened to drop below $10,000, a USDT liquidity injection may boost prices.


New USDT Enters Markets

Tether once again grew the supply of USDT, after testing the waters with recent coin burns. But after BTC prices responded with significant drops, bots noticed new USDT hitting the markets. New coins came out of the minting wallet, and the Tether treasury moved funds into circulation.

The latest printing intervention made USDT the sixth biggest digital coin by market capitalization, with a daily turnover exceeding that of BTC. The latest USDT printings are happening both on the Omni layer, and the Ethereum network. In the future, more USDT will migrate as Ethereum tokens. ETH-based USDT has now grown to 1.63 billion, almost double since the start of 2019. Major exchanges are switching their USDT wallets to only operate with the new type of asset.

Crypto Yuan Arrives on Bitfinex

But these new USDT printings seem routine, compared to another move that may shake the crypto markets. Bitfinex immediately launched trading pairs for the brand-new Chinese yuan stablecoin. The asset, intended to capture trading demand from China, is an Ethereum-based token. There are only 20 million CNHt tokens minted as of September 11, 2019.

Verified users will be able to make a direct switch between the Chinese yuan and CNHt, the newly minted asset. Bitfinex also limits certain jurisdictions from using the direct exchange. In theory, Tether, Inc. is launching an asset that could bypass Chinese capital controls, and Bitfinex is helping the process.

Tether also managed to create a digital yuan-denominated coin, even before the People’s Bank of China unrolled its long-awaited government-backed crypto coin.

Bitfinex has also slowly grown its influence, first by removing the $10,000 minimum deposit requirement, to attract a larger number of small-scale investors. The exchange also offers various tiers of verification, to gain access to assets or services.

But despite their expansion, Bitfinex and Tether, Inc. are still facing troubles. The New York Attorney General has extended its investigation, with the potential to discover multiple faults. Both companies showed evidence of working with New York-based clients, despite not qualifying for BitLicense, the local business license for crypto-related services.

What do you think about Tether and USDT? Share your thoughts in the comments section below!


Images via Shutterstock, Twitter: @whale_alert, @bitfinex

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Zář 10

Fundstrat’s Tom Lee: Bitcoin Misery Index Suggests New Bull Run Soon

The Bitcoin Misery Index, a technical indicator of trades, has been falling all summer. The indicator is sinking to 50 points, a level at which Bitcoin (BTC) prices may start to rally, thinks Fundstrat’s Tom Lee.


The Bitcoin Misery Index (BMI) by Fundstrat is a subscription-only technical indicator based on the profitability of average trades. High scores for the index point to exuberance and hype, while low scores show that most investors are “miserable” and the market is difficult to navigate.

Bitcoin on the Bounce

Since the hot price moves of July, Bitcoin turned flat, and the BMI deflated slowly over the course of a few months. BMI sank from 67 down to around 53. Investment expert Tom Lee of Fundstrat pointed that BTC had a “boring” summer, but with the index under 50, more dramatic moves are possible.

Following a “trendless” summer, bitcoin enters September with expectations of a possible shift in sentiment.

BTC remained stuck in a range, moving between $9,500 and $10,500 on most days. Other indexes, such as the “fear and greed” indicator, remained shaky. Fear is no longer extreme, but BTC is still somewhat directionless.

Bitcoin market prices appeared even shakier on Monday, sinking down to $10,279.69. The price slide and weakened volumes also brought lower market capitalization dominance of 69.7%, down from 71% in the previous week.

Time to FOMO?

Lee expects the BMI to be within the 50-53 points range in early September. At those levels, this predicts a potential stronger appreciation in the coming six months. The index is not an exact predictor, but Fundstrat sees more tailwinds for bitcoin than headwinds. Macroeconomic factors are also in play, such as a lowered Fed interest rate, as well as high fiat liquidity.

Fundstrat warned of lowered volumes, as BTC trading moved down to $16 billion in 24 hours, down from above 25 billion during the more active days in July. Lowered volumes may also cause unpredictable, dramatic price moves.

The most bullish predictions see bitcoin repeat the end-of-year rally from 2017. Fundstrat believes crypto winter is behind us, but a rally is not guaranteed.

Short-term negative predictions for BTC see the coin returning to $8,500, or at best hovering in rangebound trading. “Launchpad” levels may start at prices above $11,700, if BTC manages to rally to that range.

What are your thoughts on BTC sentiment? Share your thoughts in the comments section below!


Images via Shutterstock, Twitter @Fundstrat

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Zář 09

How Much Do People Actually Know About Bitcoin Around the World?

Bull runs, futures, institutions, Bakkt; Bitcoin is gaining ground like never before. But how much do everyday people know about Bitcoin around the world?


Knowledge About Bitcoin Around the World

This summer, I took some time out. My travels led me to a few of the world’s most progressive Bitcoin countries, excluding Malta and Switzerland.

I was excited to see the depth of knowledge about cryptocurrency around the globe and how people use it or talk about it in their everyday lives. But what I found was a little bit shocking. 

How much do people know about Bitcoin around the world? In 99.9% of cases, absolutely nothing. Here’s a break down by the supposedly forward-thinking-on-cryptocurrencies places I visited.

Spain

In Barcelona in July, they held the Barcelona Trading Conference. As the name suggests, it was a meetup for exchanges, market makers, liquidity providers and the like. Of course, the talk at the conference was all the usual chestnuts. 

Bitcoin Around the World Barcelona Trading Conference

The price of Bitcoin, the future of blockchain and exchanges, the slowness of DEXs, the need for a better UX, clumsy regulation worldwide, and some waxing lyrical about commission-free trading. 

At the conference and the after-party, everyone, of course, knew about Bitcoin. But, stray a little from the convention centers and the 5-star hotels and the knowledge of Bitcoin in Barcelona was painfully low. 

The very city the Catalan Vice President Pere Aragonès has just declared a leader in the space and announced a whole bunch of wooly initiatives which he took no questions on, had a collective knowledge of Bitcoin hovering around zero.

It’s not that everyday citizens failed to understand how Bitcoin worked. It was that, in my experience, the majority had not even heard the word before. Let that sink in for a moment when you begin getting excited about retail FOMO.

To be clear, we’re not talking about people invested in the space. My research was more on a layperson level. We’re talking taxi drivers (who usually know a little about everything), wait staff, idle conversations with hotel guests in elevators, and even an old college friend of mine. He’s from Finland and he had heard of Bitcoin. But his level of knowledge and interest went no further than that.

Portugal

Portugal is busy making a name as a trailblazer in the space. The country recently announced that it will not be charging tax on all earnings in cryptocurrency. 

In fact, at the end of last month, the local Portuguese Jornal de Negócios reported that the country’s tax authority had declared that all cryptocurrency trading and payments in Portugal are 100% tax-free.

Portugal also signed a 10-year deal with Web Summit, one of the largest technology conferences in the world, recently for Lisbon to host the cutting-edge conference about all things AI, IoT, blockchain and other emerging techs. 

With all this in the background, I assumed the Portuguese would have one of the highest levels of knowledge of Bitcoin around the world. That sadly was not the case.

Bitcoin Around the World Lisbon, Portugal

Granted, I spent most of my time in a surfing town some 30 kilometers from the capital. But I did visit Lisbon several times.

With such a technology-focused government and tax authority luring cryptocurrency entrepreneurs to the country, the layman in the cobbled streets of the hilly capital remains almost completely in the dark. 

Singapore

With some 634 companies incorporated in Singapore this February with a combined market cap of approximately $8.3 billion, Singapore has been confirmed a “hotbed” for cryptocurrency many a time.

Compared to other countries in the region, its regulation is relaxed and the scene burgeoning with seven Bitcoin ATMs here.

Bitcoin Around the World Dingapore

Surely, this pristine city where every clock, train, and tram works to perfection would be full of bars and restaurants of everyday citizens chatting about the halvening, the store of value versus payment method debate, and how high the price will go.

Again, not exactly. As Bitcoin around the world goes, knowledge was higher in Singapore according to my research. But we’re working from a very low base. There was one Grab driver who had heard of it–but it made no mark on his life whatsoever. 

The rest of the people I spoke to (a selection of everyday people working in mostly simple jobs, although I did fly business class and speak to a few passengers there as well) knew nothing about Bitcoin at all and were certainly light years away from using it.

Indonesia

Indonesia frequently grabs the headlines for high adoption and sales on LocalBitcoins. Its regulation is progressive, recognizing Bitcoin as a commodity, and you often hear about how countries with uber-high inflation and a lot of zeros in their national currency are being “saved” by Bitcoin.

Bitcoin around the world Indonesia

Also, how companies are making remittances possible through Bitcoin and how it’s changing the lives of people across the country. Well, if it is, it’s still a decidedly small number. In this cash-based society where I blitzed through millions of Rupiah a day, they’re a long way off Bitcoin adoption.

To clarify, I was not in Jakarta or Sumatra. I was in Bali, where I visited a selection of different places. Some ramshackle market stalls where WhatsApp rules the roost and will soon be opening WhatsApp Pay. It makes sense. Having a wallet stuffed full of useless paper notes is rather inconvenient, as is paying 35K for icecream.

35k icecream

But from the market stalls to the farmlands, from its biggest city Denpasar to the many Australian tourists I met there (business people, marketers, advertising execs) their knowledge of Bitcoin was once again, a resounding ZERO.

Nope. Never even heard of it.

Mass Adoption Is Light Years Away

What my explorative summer made me realize is just how small all this whole space still is. Endless debates about institutions, Bakkt, Facebook, Microsoft, hard forks, mining, infighting, the halvening, even U.S. presidential candidates bigging it up or tearing it down, you simply assume that everyone else knows about too. 

When you write articles about how Argentinians and Venezuelans are buying up Bitcoin like it’s going out of style, and how it will save them from losing their savings: it feels as if mass adoption is just around the corner.

But with only around 34 million Bitcoin wallets and roughly 50 million users worldwide, that’s still less than 1% of the population using it. And from my own experiences off the beaten path, it can’t be much more than that who have actually heard of it. 

Facebook Libra or no, Microsoft, Santander, Bakkt… Bitcoin still has a very very long way to go before it even reaches the consciousness of everyday people around the world.

How far away do you think mass adoption is? Add your thoughts below!


Images are author’s own

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Zář 06

Bitcoin Hitting $1T Market Cap By 2025 ‘Entirely Possible’: New Analysis

Bitcoin has most of its wealth creation still to go and could top a giant $1 trillion in market cap in just six years, new analysis claims.


$1 Trillion Bitcoin Doesn’t Need Parabolic Trend

Published last week, the forecast by Blockchain investment advisory resource, Byte Tree, suggests that even with conservative growth, Bitcoin will achieve wild new heights.

“Growth rates can go on for long periods of time but will inevitably slowdown as they mature. The implications for this new trendline imply $10,000 bitcoin will remain a theme until late 2020, rising to $20,000 by Feb 2022 and $40,000 by May 2023,” it reads.

Recall that if (nearly) 18 million coins quadruple in price, more than half a trillion dollars of wealth will be created. That’s more than possible and the network could touch a trillion dollars by 2025. Considerably more wealth creation lies ahead, than has occurred in the past.

The figures come at a time when BTC/USD had come off its latest bullish rise, which previously saw the pair touch $13,800. 

Sideways action subsequently culminated in a dip to $9350 last week, with markets since recovering to linger just below $11,000 at press time on September 6.

Tech Stock-Style ‘Mega Trend’ Inbound

Bitcoin’s annualized investor returns are 212%, Byte Tree notes, adding that the figure was unlikely to continue at such an aggressive pace forever. 

Despite that however, slowing down does not equal bearish signals, and this holds true for assets other than Bitcoin.

“You can’t reasonably expect steep trendlines to continue indefinitely, but you can expect credible assets to keep on moving higher year after year,” the publication concluded. 

“If you doubt that, then just look at the leading tech stocks which seemingly go from strength to strength. They grow because the internet is an established mega trend; something that bitcoin will enjoy for years to come.”

The idea of a $40,000 Bitcoin by 2023 is certainty moderate compared with some other predictions. As Bitcoinist reported, it is ‘permabulls’ John McAfee and Tim Draper leading the way, the former still infamous after pledging to consume his own male appendage if BTC/USD did not hit $1 million by 2021. 

Draper believes $250,000 is achievable by 2023. In the short term, technical indicators meanwhile err on the side of caution, nonetheless suggesting an end-of-year price for 2019 at around $20,000 – sooner than Byte Tree.

What do you think about Byte Tree’s Bitcoin forecast? Let us know in the comments below!


Images via Shutterstock

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Zář 05

Twitter CEO Says No To Creating ‘Twitcoin’ Cryptocurrency

Twitter’s Jack Dorsey says the world would be better served by an autonomous open-source currency like bitcoin rather than centralized projects owned by companies.


No Chance of a ‘Twitter Cryptocurrency’

Speaking to The Sydney Morning Herald, the Twitter founder declared that he had no intention of creating a Twitter cryptocurrency. Commenting on the matter, Dorsey quipped:

I think open internet standards serve every person better than ones controlled or started by companies.

Back in June, Facebook released a white paper for its proposed Libra cryptocurrency project. Since then, authorities in several governments have expressed opposition to the plan.

Dorsey isn’t the only one wary of centralized digital currencies. As reported by Bitcoinist, there is some discontent among XRP holders following perceived dumping of the token by Ripple.

While there are calls to hard fork the blockchain, the company recently withdrew $130 million worth of XRP from escrow, further exacerbating the debate.

Ripple continues to engage in numerous large transaction dumps which critics say is diluting the XRP price. The company, however, counter that its main concern is drumming up utility for XRP and its suite of payment products.

Bitcoin is the Best Bet

In keeping with his usual stance, Dorsey reiterated his belief that bitcoin will become the native currency of the internet. Providing further commentary on the matter, the Twitter and Square chief noted:

I think [Bitcoin’s] the best bet because it’s been the most resilient, it’s around for 10 years, it has a great brand and it’s been tested a bunch. As I look at all cryptocurrencies that could fill that role of being the native currency for the internet, [Bitcoin is] a pretty high probability.

On Tuesday (September 4, 2019), Bitcoinist’s Anatol Antonovici examined the argument for a cryptocurrency becoming the next world reserve currency.

According to Ikigai’s Travis Kling, the entire record of known monetary history is consistent with the fact that world reserve currencies have shelf lives.

If Dorsey’s belief in bitcoin’s suitability as the native internet currency holds true, there doesn’t appear to be that much of a leap from there to world reserve currency status.

Meanwhile, Dorsey’s other company, Square, continues to benefit greatly from bitcoin. The payment service in August revealed that it generated a revenue of over $125 million from bitcoin.

Do you think bitcoin can become the global internet currency of the future? Let us know in the comments below.


Images via Bitcoinist Image Library

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Zář 04

Anger At Call For Congress To Place ‘Effective Ban’ On Bitcoin Mining

Bitcoin proponents have reacted angrily to what they warn is a fresh attempt to make US Congress ban public cryptocurrencies.


Murray: US Should Treat Miners Like Banks

As financial news outlet Business Telegraph reported, on September 3, an expert witness went before lawmakers to argue miners on blockchains such as Bitcoin’s should face full banking-style regulation. 

David Murray, vice president for product development and services at Financial Integrity Network, referred to miners as “virtual asset transaction validators.”

“At minimum, virtual asset transaction validators should be required to govern participation in their validation systems, with well-designed programs for vetting the issuers, exchangers, and custodians that they serve,” he testified.

Murray was speaking within the context of a debate which aimed to address international human trafficking. 

He singled out Bitcoin in particular as part of a financial phenomena group which allegedly exacerbate the problem. These, he said, should fall under the jurisdiction of the Bank Secrecy Act. 

A Bitcoin Ban ‘Couched As Regulating’

The idea of making miners identify network participants is impossible, critics said, as Bitcoin’s blockchain by design makes reliance on a centralized validator redundant.

Peter Van Valkenburgh, Director of Research at Coin Center, argued Murray was simply trying to ban the ‘unbannable.’ 

“It’s couched as regulating but what it would be is an effective ban on American persons or businesses using open blockchain networks because it would require them to use it on a permissioned basis,” he told CoinDesk following Murray’s testimony.

In a report for Coin Center in March, Van Valkenburgh took on the idea of applying the Bank Secrecy Act.

“Regulating cryptocurrency software developers and individual users of that software under the Bank Secrecy Act would be unconstitutional under the Fourth Amendment because it would be a warrantless search and seizure of information private to cryptocurrency users,” he summarized.

Echoes of the FATF

As Bitcoinist reported, efforts to force identity requirements on decentralized networks have already met with disbelief this year. In June, intergovernmental body the Financial Action Task Force (FATF) recommended member states do so for parties involved in cryptocurrency transactions worth over $1000. 

The idea, which over 200 countries should technically implement, sparked an immediate backlash. Authorities, sources said, still could not understand that a cryptocurrency transaction was not like a banking one. 

“The people trying to understand Bitcoin are not consulting with anyone who actually understands it and who can put it into a proper context,” Akin Fernandez, CEO of Bitcoin onboarding service Azteco, stated at the time.

What do you think about David Murray’s testimony? Let us know in the comments below!


Images via Shutterstock

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