How Market Makers Inject Liquidity Into the Cryptoconomy

Market makers have a reputation that is entirely disproportionate to what they do. Despite what half of crypto Twitter would have you believe, MMs, as they are colloquially known, are a neutral force when used correctly. But should tokenized projects be routinely deploying these tools on crypto exchanges, and what are the long-term ramifications of manufacturing buy and sell orders?
Also read: ERC20 Tether Transactions Flip Their Omni Equivalent
From Drip-Fed to Full Faucet: Running the Liquidity Spectrum
Liquidity is all relative. While bitcoin’s liquidity trumps the rest of the crypto market combined, the depth of the order book still varies greatly from exchange to exchange. A 5 BTC sell order can be absorbed without blinking on Binance, but attempt the same on Trade Satoshi (24-hour volume: $15K) and you’ll be rekt by slippage. Ensuring sufficient liquidity across multiple exchanges where their token is listed is a tough ask for crypto projects, who are increasingly being expected to solve this problem unilaterally.
To address this challenge, many projects have now turned to market makers. Omisego, for instance, joined the ranks of market made projects when it partnered with Algoz earlier this month. The liquidity provider, which has previously supplied market making on behalf of Cardano for its ADA token, promises its clients the following outcomes:
Minimize trading spreads
Increase order book depth
Reduce market manipulation
Attract greater volumes
The latter provision ought to arrive naturally as a consequence of the former objectives: traders are naturally drawn to markets with deeper liquidity, which allow for arbitrage opportunities, and for exiting profitable positions through limit orders executed at close to spot price.

More liquidity equals greater awareness, which leads to greater adoption. At least that’s the theory. The jury’s still out on whether market makers incentivize genuine usage of crypto assets for the role outlined in their respective whitepapers many moons ago. Hypothetically, though, that ought to be the case, with the increased liquidity making the token attractive to a broader spectrum of buyers.

The Case for Market Makers
Imagine a business wants to acquire a load of OMG tokens to deploy on the P2P financial network. Despite having an average daily trading volume of $30 million, the majority of the 185 exchanges where OMG is listed couldn’t fulfill an order of greater than a few thousand dollars’ worth at a time. Anything greater, and the entire order book would move by 10% or more. Market makers can’t generally inject liquidity into highly illiquid markets, but they can top up the top 20 or so exchanges with which they’re integrated, providing a convenient way for users to enter and exit positions with the minimum of movement.
Crypto projects look for market making services at every stage of their lifecycle, but are particularly keen upon receiving their first exchange listing, when there can be pressure to meet strict liquidity requirements. In an ideal world, there would be no need for market makers: people would buy and sell tokens as required to other people, creating a highly efficient market with enough counterparties to absorb all of the orders and ensure a tight spread. In practice, markets are never that efficient, hence the need for market makers to keep things moving efficiently.

Order Book Replication and Other Services
Liquidity provision can take a number of forms. Aside from conventional market making, some companies will provide order book replication, in which the order books from multiple exchanges are aggregated to deepen liquidity and tighten spreads. This can be used to direct liquidity towards a particular exchange, or to ensure that liquidity is uniform across multiple exchanges. The key difference, compared to market making, is that there are no additional bids being placed: all that’s happening is the existing liquidity is being utilized to its full potential. Other services include spot execution and optimal trade execution, in which the market making provider will endeavor to shift a significant amount of crypto assets while minimizing market disruption.
If you’ve ever gone to place a bid on an exchange and another user has placed a miniscule order a few cents higher, odds are you were beaten by a bot. What’s more, there’s a good chance that bot was placed there by the project whose very token you were trying to buy. That said, traders are also known to deploy bots to play the difference between the bids and asks in liquid markets such as BTC. It’s a highly competitive game, and thus the profit margins are slight, but with enough volume, capturing the difference between bids and asks can start to add up. Market makers do the same job, the only difference being they’ve no obligation to profit: break even is good enough.

The Invisible Hand That Guides the Crypto Market
The “invisible hand,” coined by Adam Smith in 1759, describes the unobservable market force that shapes the supply and demand of goods in a free market. Imagine those goods as digital assets and the market as the exchanges that dominate the cryptosphere, and you’ve got a pretty good description of market makers. Despite being virtually imperceptible, they exist on the orderbook of every major exchange, absorbing the differential between maker and taker through fulfilling orders on both sides.
When a market maker is working well, the average trader should scarcely be aware of it. Only the flurry of small bids and asks should give a clue as to its existence. Despite what Telegram trading groups may lead you to believe, market makers won’t pump your bags or send your IEO tokens to the moon – but they will provide liquidity, allowing you to enter and exit positions with minimal slippage. In the early days of bitcoin, the notion of market makers to artificially match demand would have seemed absurd. Today, like so many other crypto exchange services, market makers are woven into its tapestry.
What are your thoughts on market makers? Let us know in the comments section below.
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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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PR: Bitcoin.com Partners with Resistance – the Next Gen DEX

August 29th, 2019 – Last week, the Resistance team met with Bitcoin.com CEO Stefan Rust, and other members of the Bitcoin.com organization, to discuss the terms of a partnership. The meeting was a great success and a strategic partnership agreement was drawn up and signed the same day.
The exact details of the agreement are yet to be announced, but this important development will help to make the Resistance decentralized exchange and privacy coin accessible to the masses through Bitcoin.com’s significant presence in the blockchain space.
“Joining forces with a company that has such incredible strengths in the blockchain industry, together with our team of technology and cryptographic geniuses, it’s possible for us to change the world.” says Resistance CEO, Anthony Khamsei.
The Resistance platform, accessed through the Resistance Desktop Application includes a decentralized exchange, ResDEX, privacy coin (RES), and CPU-optimized miner that allows users to mine on the Resistance blockchain with a regular computer. The platform also gives users the option to receive block rewards through Proof of Research by committing processing power to real scientific research projects.
The Resistance IEO is complete and the platform’s Mainnet has been live for over a month with over 3,000 CPUs mining on the blockchain. Their masternode network was released on 25th August, and ResDEX will launch in less than a week from now.
________________________________________
About Resistance
Resistance is an award-winning decentralized exchange and privacy coin built by a group of highly-experienced crypto pioneers. The core team includes Alexander Peslyak, founder of Openwall – well-known for their team of expert cryptographers, and Patrick Schleizer, founder of the innovative privacy-focused desktop operating system Whonix. Key advisors include Dr. David Kravitz, a cryptographic mastermind and inventor of the Digital Signature Algorithm, DSA.
Liquidity on the exchange is provided by Huobi and other platforms, market making by GSR – as used by top 5 market capped coins, Ledger provides hardware wallet support, and TLDR, an advisory firm that builds companies and infrastructure for the new token economy, is responsible for assisting and mentoring the core team to create ground-breaking technology systems.
For more information on Resistance: https://www.resistance.io.
For interview requests, please don’t hesitate to contact Kieron Allen, phone: +447960956498, email: kieron@resistance.io.
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Crypto Can Boost Indian Economy – How Banning Will Hurt it

The Indian economy is experiencing severe economic slowdown not seen in many years, and cryptocurrency can potentially help. However, the government is considering a draft bill to ban cryptocurrencies, which could have undesirable consequences on the economy. Meanwhile, the Indian crypto community has already been enduring a banking ban by the central bank.
Also read: Indian Supreme Court Orders RBI to Answer Crypto Exchanges, New Date Set
Job Growth Amid ‘Unprecedented’ Economic Slowdown
Rajiv Kumar, the vice-chairman of Indian policy think tank Niti Aayog, said last week that the Indian government is facing “an unprecedented situation.” He explained that “In the last 70 years, nobody had faced this sort of situation where the entire financial system is under threat.” According to Reuters, economists predicted earlier this week that, in the second quarter of this year, the Indian economy likely expanded at its slowest pace in more than five years.
The slowdown has led to many job losses in a number of sectors, particularly the auto industry. Chief Minister of the Indian state of Rajasthan, Ashok Gehlot, informed the press last week that almost all sectors in the country are struggling, with lakhs (100,000s) of people losing their jobs. Parliament Member Manish Tewari, a spokesperson for India’s Congress political party, estimated that over three crore (30 million) people are facing the threat of becoming unemployed.
Nischal Shetty, CEO of crypto exchange Wazirx, believes that job growth is among the major benefits crypto can help his country’s economic situation. Kunal Barchha, cofounder of the crypto exchange Coinrecoil, shares the sentiment. He told news.Bitcoin.com:
Indirectly, crypto can help create awesome applications that can contribute to good business and that can boost the overall IT industry of India and add new jobs for the young generation.

According to job search site Indeed, the crypto and blockchain market is still “rapidly growing.” The company found that the share of U.S. job postings related to crypto, blockchain and bitcoin has grown 90% over a one-year period ending February. Earlier this year, the company revealed that Bengaluru was the number one city in India for crypto jobs, followed by Pune, the second-largest city in the Indian state of Maharashtra.
Wealth Creation and Helping the Unbanked
Besides job creation, there are other benefits crypto can offer the Indian economy. Among them is attracting “new foreign venture capital investments into Indian startups,” Shetty detailed, telling news.Bitcoin.com that “ICOs can be a new global fundraising mechanism for early-stage Indian startup.” According to ICOdata, the total amount of funds raised globally in ICOs so far this year is over $346 million.
The Waxirx CEO added that cryptocurrency can help make remittances in India “cheaper and faster.” Data from Trading Economics shows that remittances in India stood at $12.6 billion in the first quarter. He also believes that cryptocurrency can offer the “Opportunity to bank the massive 300M+ unbanked people in India.” The Indian government’s own data shows that, as of Feb. 13, the number of accounts opened under the PMJDY, the government-run financial inclusion program, was 34.43 crores.

Barchha, however, has doubts about how much cryptocurrency can help the Indian economy. He argued that “most of the people around the world still understand crypto as money for illegal activities,” so “It is a distant dream to see crypto helping [the] vast size of Indian economy.” He opined, “I personally don’t see crypto playing any leadership role in the Indian economy, not in coming 5 years at least.”
Negative Effects of Banning Crypto
Currently, the Indian government is deliberating on a draft bill to ban cryptocurrencies. It was drafted by an interministerial committee (IMC) headed by former Secretary of the Department of Economic Affairs Subhash Chandra Garg, who was recently reassigned to the Power Ministry. The committee was constituted on Nov. 2, 2017, and only met three times before finalizing this bill. However, the community is confident that the bill is flawed and has been tirelessly campaigning to convince lawmakers to reexamine the IMC recommendations.
Shetty shared with news.Bitcoin.com the short term and long term effects of banning cryptocurrencies in India. In the long run, he explained that “India will see a massive brain drain,” as skilled citizens move out of the country to seek opportunities elsewhere. Bahrain, for example, has already been courting Indian startups to set up shop there, marketing itself as a crypto-friendly country.

If the government decides to ban cryptocurrency, “India will not have blockchain and crypto expertise leading to no crypto-related work reaching India,” the Wazirx executive pointed out, emphasizing that the country stands to “lose billions of dollars worth of investment that the crypto sector can potentially attract.” Consequently, “Hundreds of jobs will be lost,” he indicated, elaborating:
Indian citizens will lose hundreds and thousands of crores of their hard earned money … India will lose out on thousands of jobs that would otherwise be generated if the crypto sector was to be positively regulated.
Hurting Legitimate Players
Whether done in fiat currency or cryptocurrency, “Illegal activities, money laundering, and terrorist financing are the top concerns for the government of India,” Barchha asserted. “As of now, every exchange allows trading after verifying documents rigorously,” he described, affirming that “A ban will result in [the] closure of all exchanges and that will result in no accountability of transactions.” He further conveyed that “People with illicit intentions are … going to deal in crypto using their own network,” elaborating:
Indirectly, the government of India will increase their headache of tracing illegal transactions, which would have been easier if strict KYC based exchanges are regulated.
On the other hand, he opined: “honest traders or investors won’t give up their faith on the technology and they will trade in cash through peer-to-peer portals. They won’t be paying any taxes for these transactions, which is an additional loss for the government.”

Recently, The Indian National Association of Software and Services Companies (Nasscom) voiced its concerns regarding the proposed banning of crypto assets in India. The association describes itself as “the apex body for the 154 billion dollar IT BPM industry in India,” which “Liaisons with government and industry to influence a favourable policy framework.” Nasscom stated that “A ban would inhibit new applications and solutions from being deployed and would discourage tech startups” and would also “handicap India from participating in new use cases that cryptocurrencies nad tokens offer,” emphasizing:
A ban is more likely to deter only the legitimate operators as they have no intent to be non-compliant.
In his open letter to the Indian finance minister, Sohail Merchant, CEO of local crypto exchange Pocketbits, wrote: “If the ban comes into effect, the black market will continue to thrive. It will be the common man, compliant businesses, and innovators building upon these protocols that will be affected.”
Supreme Court Hearing, One Petition Withdrawn
There is already a banking ban in place in India, imposed by the Reserve Bank of India (RBI) in its circular issued in April last year. The ban went into effect 90 days later. A number of industry participants filed writ petitions challenging the ban, which the Indian supreme court was originally set to hear in September last year but was continually delayed. The wait has caused a few operators to shut down their local exchange operations, including Zebpay, formerly one of the largest crypto exchanges in India, Coindelta, Coinome, Koinex, and Cryptokart.

During the Aug. 21 hearing, the supreme court instructed the central bank to answer the representation by crypto exchanges. Shetty told news.Bitcoin.com that the document was submitted by the Internet and Mobile Association of India (IAMAI) sometime last year. “It’s basically a set of suggestions that IAMAI had sent to the RBI. Stuff like exchanges following KYC and AML policies etc,” he clarified. “The objective was to put across the fact that there are better ways to ensure investor protection and prevent malicious activities in crypto.”
Coinrecoil, the first company to challenge the RBI ban in court, has recently withdrawn its writ petition. “Yes, we did withdraw our petition last week,” Barchha confirmed. “Even though being a startup, we decided to take the risk and became the first exchange in the country to file the petition. We tried our best to stay till the end of the fight. But regardless of our passion or confidence, at some point, money matters.”
According to Barchha, the financial burden was the only reason for his startup with limited funds to withdraw its petition. “Most of the investment was done by three directors, friends, and family. That was enough to build the exchange from scratch, and make it operational for 4 months. The banking ban was a blow to our financial planning,” he detailed.
Do you think crypto could help boost the Indian economy? Would banning it have the opposite effect? Let us know in the comments section below.
Images courtesy of Shutterstock.
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Crypto Salaries Gain Regulatory Recognition Around the World

Salaries paid in decentralized digital coins have become a norm across the crypto industry, but there’s really no reason why cryptocurrencies can’t be used for remuneration by businesses in other sectors as well. In many jurisdictions that should be legal even in the absence of dedicated legislation. Switzerland, New Zealand, Japan and Estonia are a few examples. Companies and employees in these countries take advantage of the benefits that come with crypto payments.
Also read: Initiative to Curtail Negative Interest Rates Gains Traction in Germany
Temptation to Tax Crypto Income Works in Favor of Bitcoin Wages
Switzerland has already established itself as a crypto-friendly nation and it is a role model in many respects, including the way it treats cryptocurrency remuneration. Many leading companies and projects in the crypto space have already set up offices or are headquartered in the Swiss Crypto Valley, centered in the Canton of Zug. The long list includes names such as Shapeshift, Xapo, Bitmain, the Ethereum Foundation and most recently the Libra Association.
For many decades, the Alpine federation was a good example of geopolitical neutrality and financial privacy. The latter has been somewhat degraded in the past few years under pressure from powerful players such as the U.S. and the EU. However, decentralized digital currencies are offering Switzerland a chance to redeem itself in the eyes of account holders, and the country has embraced the opportunity.

Many aspects of dealing with crypto assets have been regulated already by the Swiss authorities and that includes taxation. People who receive cryptocurrency as wage income need to declare it and pay tax, just like with fiat salaries. Crypto gains of investors and traders are treated as tax-exempt capital gains but depending on the canton, you may have to pay wealth tax which is levied on the total amount of digital coins you hold, similar to cash or precious metals.
In a confederation like Switzerland, there are multiple levels of income taxation – federal, cantonal, and municipal. Regulations vary from one administrative unit to another and income tax can be progressive or proportional. Amounts owed also depend on the marital status of the taxpayer. The scope of taxable income covers all funds accruing to a natural person from all sources. That includes remuneration received in various forms, including digital.
Cryptocurrency Remuneration Spreads in Friendly Jurisdictions
Switzerland is undoubtedly a leader in creating favorable conditions for crypto businesses, but other nations have been quickly catching up. Among those where crypto salaries are a working option are Japan, Estonia, and the United States. For example, Japanese internet giant GMO announced some time ago that its almost 5,000 employees will be able to receive part of their salaries in cryptocurrency. And this spring, U.S.-based cryptocurrency exchange Kraken revealed it paid 250 salaries in bitcoin in April.
Crypto companies registered in Estonia, considered to be one of the most advanced digital societies, are often partially compensating or encouraging their employees with cryptocurrencies and tokens. The Baltic nation’s legislation provides for the taxation of such income. But even in jurisdictions where cryptocurrencies are yet to be legalized, crypto salaries are possible. In Russia, for example, half of fintech companies pay their employees with coins.

The crypto industry is not restricted by national boundaries. Cryptocurrencies significantly improve the speed and reliability of cross-border payments and the growing gig economy is taking advantage of the benefits of frictionless digital money. According to a study from 2017, freelancers will form a majority of the workforce in the United States within a decade. And a survey on payment preferences conducted in 2018 shows that a third of them would like to be paid partially or entirely in cryptocurrency.
Crypto-paid remote jobs are rapidly spreading in the global economy as well, thanks to the services offered by companies like Bitwage. It’s also getting easier to find a job paid in cryptocurrency with the help of platforms such as Workingforbitcoins.
New Zealand Tax Authority Adopts Rules for Crypto Payroll
Generally speaking, crypto salaries don’t really need dedicated legislation or special permissions by authorities to be legal. Many countries allow part of an employee’s compensation to be paid with non-monetary assets like commodities. And in jurisdictions where digital coins are not yet recognized as currencies, they have been granted a commodity status. Thus, cryptocurrencies can still be paid and received as fringe benefits.
Nevertheless, it does look like a step forward when a government agency explicitly mentions crypto wages in its official documents. And that’s what the tax authority in New Zealand recently did, deeming it legal for businesses to pay their employees in bitcoin. Companies will now be able to withhold tax on income payments under the existing pay-as-you-earn schemes like those of regular fiat salaries, as per the country’s current tax legislation.
The clarifications were made in an information bulletin issued earlier this month by New Zealand’s Inland Revenue Department (IRD). The ruling will go into effect on Sept. 1, 2019 and will be valid for the next three years. And while crypto enthusiasts have welcomed the arrangement as one that can encourage crypto adoption, doubters have expressed concerns its only goal is to ensure the collection of more taxes by the government in Wellington.

As expected from a regulator, the green light comes with multiple conditions. First of all, only employees working under official agreements can be paid with cryptocurrency. Then, the payments must be for a fixed amount, not exceeding half of the full pay, with the value of the crypto asset pegged to one or more fiat currencies. The crypto wages must be a regular part of the employee’s remuneration and be convertible into government-issued fiat money like the New Zealand Dollar.
The IRD also pointed out that salaries must be paid in a coin that can function as a currency, a substitute to fiat. This requirement aims to protect employees from being paid in an illiquid asset or small altcoin.
The tax agency listed several decentralized cryptocurrencies that meet its criteria. These are bitcoin cash (BCH), bitcoin core (BTC), bitcoin gold (BTG), ethereum (ETH), and litecoin (LTC). The revenue department also thinks stablecoins such as tether (USDT), or any of its alternatives that are easily convertible to fiat, qualify for that role as well.
If you are looking to securely acquire bitcoin cash (BCH) and other leading cryptocurrencies, you can do that at Buy.Bitcoin.com. And if you are earning a salary in bitcoin cash, you can sell or buy BCH privately using our noncustodial, peer-to-peer trading platform. The Local.Bitcoin.com marketplace already has thousands of users from all around the world.
Do you expect more countries to regulate the use of cryptocurrencies for remuneration? Do you think crypto salaries need specific regulations? Share your thoughts on the subject in the comments section below.
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Bron : Bitcoin en toekomst van crypto

ERC20 Tether Transactions Flip Their Omni Equivalent

Crypto enthusiasts have noticed that the Ethereum blockchain has come awfully close to reaching capacity due to the added transactions stemming from the Tether (USDT) network. The transaction count since mid-August shows the ERC20 version of tether has surpassed the original version that uses BTC. ERC20 tether transactions cost users more than $260,000 in the last 30 days and the over-saturation of trades is 17X larger than the infamous Crypto Kitties fiasco.
Also read: How to Create Non-Fungible Assets and Collectible Tokens With Bitcoin Cash
Tether Migrating to ETH Sparks Capacity Fears
In December 2017 during the height of the crypto bull run, the Ethereum blockchain was swamped with unique cats similar to Pusheens that could be collected and traded using the ETH network. The Crypto Kitties event prompted the creators to increase the cat birthing fee in order to incentivize miners to add birthing transactions to the chain. Fast forward to 2019 and Tether has started migrating coins from the Omni Layer network which uses the BTC chain to an ERC20 version which runs on top of the ETH chain. Tether is a $4 billion dollar network with coins spread across multiple blockchains which include BTC (Omni), ETH (ERC20), EOS, and Tron. Data pulled from the website Coin Metrics shows that the ETH-based tether transactions have surpassed the BTC-based versions this month. Today, on August 28, there are 39,000 tether transactions on the BTC network via Omni, but that number is eclipsed by the 126,000 ETH-based tether transactions. At the time of publication, there’s roughly 1.5 billion USDT minted using the ETH chain and 2.5 billion tied to the Omni Layer network.
USDT transaction count stemming from Omni Layer (dark green) and the USDT transaction count stemming from the Ethereum network (light green).
Since the tether transactions being used on the ETH chain have spiked significantly, the crypto community has been observing the ETH chain grow congested again. Ethereum cofounder Vitalik Buterin told Bloomberg this week that the “[ETH] blockchain has been almost full for years.” ““I think it’s still good to develop apps, but anything substantial should be developed with scalability techniques in mind, so that it can survive higher transaction fees that would come with further growing demand for Ethereum — In the longer term, Ethereum 2.0’s sharding will, of course, fix these issues,” Buterin asserted during the interview. Prominent Ethereum evangelist and founder of Mythos Ryan Sean Adams explained that every asset on Ethereum is “a future revenue source for ETH stakers.” “Tether paid 993 ETH over the last 30 days,” Adams said to further bolster his prior statement.

The fleppening just happened. Tether token on ETH now doing more daily tx then Tether token on Bitcoin Core. https://t.co/0mntDfpVS3 #btc
— Crypto Mak 🌐 (@crypto__mak) August 28, 2019

For Stablecoin Use Cases Like Trading and Arbitrage, the Market Demands Faster Transactions and Lower Fees
The tether migration to Ethereum has been quite noticeable and Coin Metrics’ Nic Carter published data concerning Tether’s growth and transition to Ethereum. “USDT-ETH active addresses (the count of unique addresses that were active in the network as a recipient or originator of a ledger change) skyrocketed over the past week, jumping from 38,600 on August 19 to over 78,800 on 8/23,” the report notes.

“Meanwhile, USDT-OMNI active addresses continue to decline, despite two recent spikes.” The report also notes that the migration from Omni to Ethereum may have stemmed from market demand. “The primary use case for Tether is for active trading and arbitrage — For these use cases, Tether on Ethereum is faster (15-second blocks for Ethereum versus 10-minute blocks for Bitcoin) and require less fees,” the Coin Metrics’ State of the Network research explains. The report adds:
Since these characteristics are desirable for active traders, Tether issuance on Ethereum should continue to grow relative to issuance on Omni. The recent burn in Tether came solely from Tether issued on Omni.

Stablecoin Networks Using the Bitcoin Cash Network Will Benefit From Low Fees and More Capacity
Despite Tether’s move to the ETH chain, a few digital currency fans believe that there could be issues with the ERC20-styled tethers if the network grows too congested. Some skeptics and observers think tether users are paying way too much in network fees. On the bitcoin cash-oriented Reddit forum r/btc, some BCH supporters said that it would be far cheaper to host a popular stablecoin like tether on the BCH chain.

“Tether transactions alone pay $14,000 in transaction fees for 120,000 transactions every single day on Ethereum (a total of $57,000),” Reddit user u/eyeofpython remarked. “With a daily volume of $400,000,000 (source: SQL query on eth.events for the 23 August) — If Tether were to move to BCH, people would only pay $120 of fees in total.” On August 28, the average BCH network fee is only $0.004 per transaction, while the gas needed to push an ERC20 token is between $0.11-0.16 per transaction. Another BCH supporter wrote:
Tether should switch to SLP tokens on the Bitcoin Cash network, which never gets congested, unlike BTC and ETH.
Over the last few days, there have also been discussions as to whether ETH’s capacity can handle various apps alongside Tether. The number of transactions stemming from tether users has grown every year since the stablecoin launched and currently represents 30% of all cryptocurrency trades, rising at times to 40%. At the time of publication, tether (USDT) captures a whopping 77% of all BTC trades, 53% of ETH, and 54% of BCH trades worldwide.
USDT/BTC on August 28, 2019.
Tether continues to dominate, despite the fact there’s a slew of other stablecoins competing like USDC, DAI, TUSD, and USDH. Most of the stablecoin competitors use the ETH network as well, which presents another set of capacity problems for the chain. The stablecoin Honestcoin (USDH) does not use the BTC or ETH chain and is built on top of the BCH network using the Simple Ledger Protocol. USDH and its nascent network only has a $32,000 market capitalization and $173,000 in global trade volume. However, traders using stablecoins for quick swaps and arbitrage will quickly find that transaction fees at $0.004 per transaction or less are far cheaper.
What do you think about tether transactions on the ETH chain surpassing the Omni Layer-based tether transactions? Let us know what you think about this subject in the comments section below.
Image credits: Shutterstock, Coin Metrics’ State of the Network research, Crypto Compare, Coinlib.io, and Pixabay.
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Bron : Bitcoin en toekomst van crypto

Venezuelan Pharmacy Chain Accepts Bitcoin Cash for Medicine and Products

On August 26, a pharmacy chain in Venezuela called Farmarket revealed it now accepts cryptocurrencies through the payment provider Xpay, a subsidiary of Panda Group. Arley Lozano, Panda Group’s founder, explained how Farmarket’s pharmacy franchise has 22 stores located across the country and machines will allow people to purchase goods and medicine with cryptocurrencies like BCH, DASH, DAI, and BTC.
Also read: How to Create Non-Fungible Assets and Collectible Tokens With Bitcoin Cash
Venezuelan Pharmacy Chain Farmarket Starts Accepting Crypto Payments
Over the last few months, Panda Group has been relentlessly pushing for cryptocurrency adoption throughout Colombia and Venezuela. In mid-July, the company deployed 10 hybrid cryptocurrency point-of-sale (PoS) machines that also work as automated teller machines (ATM). Four of the devices are situated near the border of Venezuela, so citizens from the region and those crossing the border can utilize a gateway to digital assets. Panda Group also installed the crypto PoS hybrid solution in Bogotá, at La Tortata sweet shop, the well-known burger shop Darwinos in Cúcuta Colombia, and the machines also appeared at the EXMA conference in Bogotá on May 27-28. This week Lozano and his team announced the partnership between Farmarket and Xpay, the solution that powers the PoS devices. The Xpay integration will start at stores located in Caracas and expand to the rest of the pharmacy’s 22 locations across Venezuela.
Cinthya Sagues, general manager for Farmarket, and Panda Group CEO Arley Lozano made the announcement this week that the Venezuelan pharmacy would accept a variety of cryptocurrencies through the Xpay system.
Xpay helps Farmarket accept digital currencies and lets the merchant choose what percentage of funds they wish to withdraw in crypto or its equivalent in local currency. The PoS processing is facilitated by the Colombian trading platform Panda Exchange. All of the partnerships Panda Group has made this year are part of an effort to continue making strides in Latin America. Farmarket customers stemming from Caracas and abroad will be able to pay for goods and medicine with digital assets like bitcoin cash (BCH). With the Venezuelan economy in disarray, family members travel great distances to buy medicine for areas with poor infrastructure. Panda Group has worked with organizations like Dash Core and Maker Dao (DAI) to push the effort. In March, Panda Group members also helped the ATM company Athena Bitcoin install a crypto ATM on the border of Colombia and Venezuela. The Colombian-based company is also collaborating with Cobru, Gracon, and Pagos Inteligentes. Additionally, Panda associates worked with Bitcoin.com during Bogotá’s EXMA event and Lozano told our newsdesk that Bitcoin.com’s executive chairman, Roger Ver, was one of the first to believe in the Xpay project.
“Panda Group appreciates the contribution of Roger Ver who is our friend, and we thank him and the Maker Dao (DAI) team for being the first to believe in Xpay.cash,” Lozano explained to news.Bitcoin.com.
The Xpay system allows Farmarket customers to pay for medicine and supplies with BCH, BTC, DASH, and DAI.
Digital Pioneers Spreading True Crypto Adoption in Latin America
To use the Xpay device at Farmarket, the customer chooses which cryptocurrency they want to use and a QR code is generated in relation to the transaction. After the customer confirms the transaction, the Xpay system detects it and the receipt is generated. When Panda Group first launched the device at La Tortata sweet shop, the company explained that the machine was a significant achievement for Panda’s operations but also for the Latin American region as a whole. Lozano told news.Bitcoin.com that the firm is always thinking about the needs that exist in the Latin American market. “We are very proud that our brothers and sisters who have begun to use our product Xpay.cash to overcome the adversities of the economy. We hope that those who do not know about the benefits of crypto learn to use it,” Lozano told news.Bitcoin.com on Monday. The Panda Group founder added:
Xpay encourages true adoption in Latin America and we’re proud to be digital pioneers.
Being from Colombia, Panda Group understands the economy of Venezuela and has seen the country fall into decline since 2010. At one time the country was the wealthiest nation in Latin America but the inflation rate is expected to reach 10,000,000% by the end of 2019. There’s been gross economic mismanagement under the Chavez and Maduro governments and deterioration of productivity alongside chronic shortages of food and medicine. Most of the country’s money derives from the petroleum sector and manufacturing, but only special interest groups and political leaders are reaping the benefits. Since the economic downfall, neighboring countries and leaders abroad have had little patience with Nicolás Maduro and the United Socialist Party of Venezuela. In mid-April, Donald Trump imposed harsh sanctions against Venezuela’s central bank and Maduro’s regime.
Similarly to Panda Group, Venezuela.bitcoin.com is also making strides in Caracas, Maracaibo, and throughout the rest of the Latin American country in bolstering BCH merchant adoption in Venezuela.
Thanks to organizations like Panda Group and Bitcoin.com, merchant acceptance in the region continues to grow. People can find many retailers accepting bitcoin cash (BCH) via the global merchant map Marco Coino. Moreover, the initiative Venezuela.bitcoin.com has been registering stores in places like Maracaibo and Caracas in order to help galvanize economic freedom in the country. Panda Group also has a merchant map available on the website showing all the Xpay machines located in Latin America.
The Xpay.cash map where all the PoS machines are located throughout Colombia and Venezuela.
“The location map shows us more than 20 locations in Venezuela that accept payments with cryptocurrencies through this platform, which can mostly be found in Caracas and Mérida,” explained the Xpay crew this week. “The intention of the team behind Xpay has been focused on getting this service to numerous stores and merchants for both Colombia and Venezuela, in order to provide a more friendly and familiar way to make and receive payments with cryptos, which in turn allow promoting its adoption in everyday life.”
In addition to Farmarket, Panda Group announced that the liquor store Xinestesia Bodegón now accepts bitcoin cash and other digital assets for products too.
At the same time as Panda Group partnered with the pharmacy chain Farmarket, another store called Xinestesia Bodegón has begun accepting BCH, DAI, BTC and DASH through Xpay as well. After revealing the partnership with the bodega, the Colombian crypto company Panda Group’s announcement concluded:
[Farmarket’s] network of businesses will be the first Venezuelan chain to adopt the payment processor and enter the environment of new financial technologies; In the same way, its integration into the set of merchants that accept cryptocurrencies through Xpay could take shape after a period of preparations.
What do you think about Panda Group’s Xpay devices and the company partnering with the Farmarket pharmacy chain? Let us know what you think about this subject in the comments section below.
Image credits: Farmarket, Xinestesia Bodegón, Twitter, Xpay, and Pixabay.
Do you want to help spread economic freedom in Latin America and know of Venezuelan merchants interested in accepting bitcoin cash (BCH)? Check out Venezuela.bitcoin.com today and help us onboard some more retailers. Alternatively, you can also purchase Bitcoin Cash without visiting a cryptocurrency exchange. Buy BTC and BCH directly from our trusted seller and, if you need a Bitcoin wallet to securely store it, you can download one from us here as well.
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Reformed BTC Maximalist Erik Finman Proves the Value of Unschooling

A 12-year-old, future unschooling advocate at an Occupy Wall Street protest learns about Bitcoin while running from the cops. He invests. Later, the independent Erik Finman will become the supposed “world’s youngest bitcoin millionaire” at age 18. That’s not where the story ends, though. The high school dropout has since gone on to launch education startups, satellites into space, and become involved with big influencers and ideas in the crypto space, proving once again that independent, natural learning has a whole lot more to offer than his teacher’s advised route of working at McDonald’s, or a “cultish” adherence to BTC maximalism.
Also Read: Court Instructs Craig Wright to Distribute Billions to Plaintiffs
Unschooling: Kind of a Big Deal
With more and more people from all walks of life jumping into the unschooling revolution, Erik Finman’s story is illustrative of a shift in thinking on education. Bitcoiners are no strangers to the freedom first philosophy, either. Whether it means selling everything one has and hitting the road as a family, growing and selling food to become more self-sufficient, or holding 446 bitcoins as a 20-year-old, folks are beginning to see the connection between decentralized money and permissionless learning.

Botangle Aims to Replace Public Schools
In 2015, Finman sold $100,000 of his BTC stash and dropped out of school to work on Botangle, about which the independent learner stated in an interview with Wired:
Its mission is to replace the public school system because of my terrible experiences in it.
Finman has also stated that if “I ever decide to ever have kids I will never send them to school.”
Botangle’s mission was to pair learners with educators online, furthering the already swift current of change in that direction, due to the decentralized learning capabilities afforded by the mere existence of the internet itself. Finman sold Botangle for 300 bitcoins when he was 17, but has since bought the brand back, citing his love for the name.

Space Time Capsules and Coinbits
In 2018, Finman led Project Da Vinci, an initiative of teenagers to create a “global time capsule,” collecting video from individual submissions worldwide to send via satellite into space. Finman teamed up with Peter Diamandis, founder of the X Prize foundation, adding significant momentum to the innovative project.

LAUNCH!!! A @RocketLab Electron rocket launches from the Mahia Peninsula in New Zealand with ELaNa 19 for NASA. #ThisOnesForPickering pic.twitter.com/u7HCNK79yE
— Michael Baylor (@nextspaceflight) December 16, 2018
The capsule was launched into space on December 16, 2018, as part of NASA’s ELaNa (Educational Launch of Nanosatellites) program. As a brief aside here, the crux of the unschooling philosophy is the exploration of ideas. This stands in stark contrast to obsolete, centralized educational approaches, where rote memorization of carefully pre-selected “facts” is the aim. As such, it makes sense that unschoolers and entrepreneurs like Finman always seem to be launching new projects; they’re not trying to memorize the past for a test, but to shape the future.
In May, 2019, Finman also launched Coinbits, an onboarding app designed to help everyday people invest in small amounts of bitcoin via dollar cost averaging (DCA), using transaction roundup mechanisms when purchases are made. The Coinbits website states:
“Blockchain solutions like Bitcoin are leading the way, but the problem is the knowledge gap between cryptocurrencies and the every-day person. We’re building CoinBits to do our part in helping ensure the collective interests of people around the world are informed and have access to this future economy.”

Unschooling Open Mind: From Staunch Maximalism to Active Solution-Seeking
In a recent interview with Youtube channel Invest Diva’s Kiana Danial, Finman, who in 2017 had called Bitcoin Cash a “fraud” on Twitter, detailed four problems he sees with his previously championed BTC at present:
Transactions are too slow.
Transaction fees are too high.
The devs are “very cultish” with too much infighting.
It’s “too hard to get into.”
Finman maintains in the interview that the reason people have not moved away from BTC, though “it could totally get to that point,” is simply brand marketing and familiarity, claiming “there are 10, 10X better technologies than bitcoin [BTC] that already exist today.” After claiming that “Bitcoin is dead, it’s too fragmented,” and commenting positively on bitcoin cash in an interview early last year, the young dynamo is now reportedly “converting all my crypto money into this coin.” The coin he references is metal, as Finman is gearing up to become a big investor in the Metal Pay platform.
After investing in bitcoin at age 12, Finman’s life became tolerating school, eating, sleeping, and trading crypto.
Innovation, Unschooling, and Decentralized Money
While the media obsesses over the “bitcoin millionaire” aspect of Finman’s story, there’s a far more compelling narrative here, just below the surface. Finman’s independent spirit, which led him to invest in bitcoin at 12, is exactly the type of thing that is not typically encouraged in public schools. In public school, kids would read about bitcoin 10 years after the fact, and be told what to think of it. Finman invested, traded, and bet his parents he could turn it into a million bucks, and if he did, he wouldn’t have to go to college. That’s a big difference. The difference between living actively, and passively acquiescing.
He joins a long list of high school and college dropouts. Tech “losers” like Steve Jobs, Bill Gates, Michael Dell, and Spotify’s Daniel Ek. Entertainment and arts nobodies such as Quentin Tarantino, David Bowie, George Carlin, and Keanu Reeves. The list goes on, of course. Due to the decentralized nature of cryptocurrency, it’s little wonder innovators and unschooling proponents like Finman turn to the tech in enthusiasm. Speaking again to Investment Diva on Facebook’s Libra, the young entrepreneur remarks:
Although it’s cryptocurrency technology, you know it’s also very centralized so it’s very anti the spirit of cryptocurrency.
He goes on to elaborate that in regard to the global economy and currency competition “It’s all the game on who wants to have the one-world [decentralized] currency. Right now the U.S. dollar’s the closest thing we have to the one world currency. Rome … they were the one world currency for a while.” When questioned by Kiana Danial about Iran’s development of a national crypto, Finman replied that oppressive regimes like the U.S., China, and Iran use whatever money is available, implying it’s not crypto’s fault for the inhuman behavior.

The Spirit of Permissionless Learning
One of Erik’s teachers once told him to “drop out and work at McDonald’s,” because he didn’t like school. Founder of pioneering democratic free school Summerhill, A.S. Neill, wrote in his 1960 book of the same title:
A child is innately wise and realistic. If left to himself without adult suggestion of any kind, he will develop as far as he is capable of developing.
Well, as far as that goes, Erik Finman has done alright. His capabilities surpass McDonald’s-fry-cook level by some measure. A.S. Neill also wrote that he would rather Summerhill school produce a happy street sweeper than a neurotic brain surgeon. This is another thing. Who gives a damn if someone works at McDonald’s or if they’re a 20-year-old entrepreneur? That’s the whole point of unschooling: decentralized, permissionless education for the individual, regardless of what tradition and culture may dictate. So far, Finman’s life has been a textbook example.
What do you think about Finman’s adventure in unschooling? Let us know in the comments section below.
Op-ed disclaimer: This is an Op-ed article. The opinions expressed in this article are the author’s own. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the Op-ed article. Readers should do their own due diligence before taking any actions related to the content. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any information in this Op-ed article.
Images courtesy of Shutterstock, Fair Use.
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Mega Drug Pushers Johnson & Johnson Get Away While Peaceful Silk Road Is Destroyed

It’s been said that those who protest the loudest are often the ones who are guilty, and when it comes to government and their pet corporations, things are no different. No surprise, then, that the blustery moralizing — and violent state force brought to bear against businesses — are most intense where the money and power stand to be lost, as in the case of the Silk Road, and most weak and permissive where embedded, state-friendly corporations like Johnson & Johnson can basically get away with murder.
Also Read: The White House Just Blamed Bitcoin for America’s Opiate Crisis
Opioid Kingpins
The state of Oklahoma won $572 million in a lawsuit against American pharmaceutical giant Johnson & Johnson Monday, for their alleged reckless contribution to the state’s opioid crisis. Prosecutors labeled the company a “public nuisance,” and an opioid “kingpin.” The mega corporation’s aggressive marketing tactics downplayed the very real risks of extremely addictive opioid painkillers, according to the state of Oklahoma. This isn’t Johnson & Johnson’s first legal rodeo, either. From arsenic-poisoned Tylenol, to bribes and kickbacks for doctors worldwide, downplaying dangerous side effects, and peddling allegedly cancer-causing baby powder, the company is no stranger to legal attack.
Of course, their legal representation vehemently denied the charges, citing what they view as Johnson & Johnson’s negligible share of the U.S. painkiller market as a whole. The company aims to postpone payment during an appeal procedure, which some reports say could last until 2021. The lawsuit was seeking $17 billion in damages, with settlements reached with Purdue Pharma ($270 million) and Teva Pharmaceutical ($85 million), earlier this year. Though the awarded amount is nowhere near the prosecutor’s goal, it remains a landmark ruling nonetheless, being the first time a major pharmaceutical company has been found legally liable for America’s opioid problem.
This verdict comes at a timely juncture where the cryptospace is concerned. News.bitcoin.com reported just days ago on recently issued White House advisories, which attempt to pin blame for the very same crisis on cryptocurrencies like bitcoin, bitcoin cash, ether, and monero.

Consensual vs. Non-Consensual Business
There are rigorous licensing requirements for selling drugs legally in the United States. These measures are taken to ensure safety and quality, ostensibly. Without approval from the state, nobody can sell anything. With legal approval from the state, anybody can sell anything — even dangerously addictive painkillers via aggressive marketing campaigns and bribes. Organizations that have the power to green light or reject new pharmaceuticals become very important, then, to companies wishing to make a killing in the industry.
In Johnson and Johnson’s case, around $6 million is spent on lobbying annually, influencing everything from legal policy to drug studies. 37 members of the U.S. Congress actually own shares in the pharmaceutical juggernaut. Some of the legislation Johnson & Johnson pays big bucks to back is aimed at making it harder to sue big corporations. For example, the company is a member of the American Tort Reform Association (ATRA), which championed the Class Action Fairness Act of 2005, a bill that drew fire from critics for placing unfair restrictions on individuals seeking legal recourse against corporations via class action lawsuits.
With this iron-clad shield of legal protections in place, and deep pocketsful of politicians and alphabet agencies paid for in USD — a money that everyone is forced to use under threat of violence — the meaning of a non-consensual business becomes clear. Don’t reach for the cannabis for pain relief–that could land you in prison. Don’t sue the providers of the only legal options available, that’s been made near impossible. Instead, fall victim to purposefully relaxed drug laws, misleading advertising, and FDA/DEA propaganda. In Oklahoma’s case, the systematically eroded caution about opioids contributed to the 6,000 related deaths since 2000, according to attorney general Mike Hunter.

The Silk Road
If Johnson & Johnson’s preferred method of force-backed monopoly is non-consensual, then the model of the now defunct Silk Road would be the opposite. Using the same cryptocurrency the White House has now pinned as responsible for opioid trafficking and Fentanyl deaths, Ross Ulbricht’s darknet marketplace sold anything and everything, drug-wise, legal or not. This causes many to take worried pause, viewing the endeavor as an illicit or malevolent enterprise, but things are almost never what they seem on surface.
Unlike Johnson & Johnson, the community on Silk Road had ethical rules about its drug sales. As International Business Times reported back in 2011:
But even as an illegal drug store, Silk Road has its own ethical standards which is stated in terms of service: anything who’s purpose is to harm or defraud, such as stolen credit cards, assassinations, and weapons of mass destruction, will not be sold through the network.
There are still those who talk about Ulbricht’s supposed hand in the murder-for-hire plots, but these charges were never brought to bear, and later dropped, instead being mentioned in passing to prejudice the outcome of the trial. Nobody was ever killed because of the debacle, either. Many suspect foul play on the part of the state, and indeed this idea is bolstered by computer forensics testimony that doesn’t add up. All in all, there are 7 people who are reported to have died from Silk Road-related overdoses, who presumably ordered the products voluntarily, with full disclosure of the potential risks. This is a far cry from the big pharma racket on the legal side of the tracks, where disclosure is actively obfuscated, and safer, alternative options are punished by jail time.

Legal Immunity for Criminals, Life in Prison for Heroes
According to the judge, “Among other things, they [Johnson & Johnson] sent sales representatives into Oklahoma doctors’ offices to deliver misleading messages, they disseminated misleading pamphlets, coupons, and other printed materials for patients and doctors, and they misleadingly advertised their drugs over the internet.” It was further found by the ruling that the company had created a problem where there hadn’t been one, in encouraging the over-prescription of opioids for chronic pain.
Though Johnson & Johnson may have to pay $572 million if they lose their appeal, that’s really just a chink in the armor for a company that pulled in $81.6 billion in 2018, with a net worth at press time of $337.1 billion. Though their reckless practices have arguably contributed to the deaths of thousands in the United States, and they consistently seek to insulate themselves unfairly within the legal system, the company remains “legitimate” in the eyes of the government at large.
Ross Ulbricht, however, has had his life taken from him, simply for providing a voluntary marketplace and earnestly trying to not mislead or harm anyone. When it comes to real culpability here, people on the street seem to be getting wise to Johnson & Johnson’s racket. When it comes to the U.S. Federal Government taking issue with consensual exchange and a young kid making millions on the darknet from drug sales, many think the state doth protest too much.
What are your thoughts on the Johnson & Johnson ruling? Let us know in the comments section below.
Images courtesy of Shutterstock.
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Bron : Bitcoin en toekomst van crypto

Switzerland Approves Bitcoin Banks – But With Strict Conditions Attached

One of the major problems for businesses in the cryptocurrency industry is finding a bank that agrees to work with them and connect them to the traditional fiat financial system. The financial regulator in Switzerland has just made this easier by licensing two companies to serve as tailored banks for the industry and further open up the market to institutional investors, albeit under very strict AML regulations.
Also Read: Immortality, Cryogenics and UBI: How The Crypto Rich Influence Science
Swiss Regulator Gives Green Light to Bitcoin Banks
The Swiss Financial Market Supervisory Authority (FINMA) has announced on Monday that it has issued banking and securities dealers’ licenses to two “pure-play blockchain service providers” for the first time. The new Swiss crypto banks are SEBA Crypto AG, which is registered in Zug, and Sygnum AG, which is registered in Zurich. With this development they can now offer banking services for institutional and professional crypto clients under supervision by the financial regulator in Switzerland, one of the most advanced markets in the world.
SEBA Crypto AG is expected to officially go live in early October 2019 when a previously announced cooperation with the 125 year-old Swiss private bank Julius Baer will enter into force. The startup raised CHF 100 million in a September 2018 funding round and currently employees more than 60 people. The company wants to enable professional individuals and companies as well as institutional clients to invest, safely keep, trade and borrow against traditional and digital assets. In particular, the future offering will include custody storage, trading and liquidity management as well as asset and wealth management. For cryptocurrency companies based in Switzerland, it will provide accounts and custody for fiat and digital assets.
Andreas Amschwand, Chairman of the Board of SEBA, commented: “The banking licence of the Swiss Financial Market Authority FINMA is not only a milestone for SEBA, it sets a new standard for banking in the Blockchain and digital asset economy. This moment has significance far beyond the Swiss financial industry.”

Sygnum AG has developed a banking solution that embeds digital assets into regulated banking and was built in partnership with Swisscom and Deutsche Börse Group. At its core is an institutional-grade digital custody and fiat-digital asset gateway. Custody is fully integrated with a liquidity platform that offers execution for fiat currencies and major digital assets. Sygnum’s plans for client corporations also include the ability to raise new capital by issuing tokens based on existing financial assets. Additionally, the company offers a loan facility for securing fiat cash flows via loans on digital assets. B2B banking services are also available for existing financial institutions to enable them to provide regulated digital asset products and services to their own customers.
“To date, a lack of institutional-grade custody and a truly integrated banking solution has slowed the adoption of digital assets by institutional investors”, commented Luka Müller-Studer, Co-Founder and Chairman, on Monday. “Today’s licence announcement is a game-changer. By methodologically incorporating digital assets into traditional banking, and injecting much needed DLT-driven agility, Sygnum is accelerating the development of an important new asset class.”
Stringent Anti-Money Laundering Regulations
FINMA has also published guidance on Monday about how it applies the anti-money laundering rules enforced in Switzerland to blockchain technology companies it supervises. The practice set out in this guidance paper applies to the supervision of the two new crypto banks. The regulator says it recognizes the innovative potential of new technologies for the financial industry and applies the relevant provisions of financial market law in a “technology-neutral” way. However, it warns that blockchain-based business models cannot be allowed to circumvent the existing regulatory framework, particularly with regards to the rules for combating money laundering and terrorist financing where it fears that the “inherent anonymity” of the technology presents increased risks.
Zug, Switzerland
The Swiss regulator noted that in June 2019 the Financial Action Task Force (FATF) issued its guidelines on cryptocurrency regulations. As for traditional bank transfers, information about the client and the beneficiary must be transmitted with transfers of tokens (with the exception of transfers from and to unregulated wallet providers). Only then, for example, can the provider receiving this information check the name of the sender against sanction lists or check that the information provided about the beneficiary is correct.
According to the new guidance, institutions supervised in Switzerland are only permitted to send cryptocurrencies or other tokens to external wallets belonging to their own customers whose identity has already been verified and are only allowed to receive cryptocurrencies or tokens from such customers. Swiss-supervised institutions are thus not permitted to receive tokens from customers of other institutions or to send tokens to such customers, the regulator explained. This practice applies as long as information about the sender and recipient cannot be transmitted reliably in the respective payment system. Unlike the FATF standard, this established practice applies in Switzerland without the exception for unregulated wallets and is therefore one of the most stringent in the world, claimed FINMA.
Switzerland Is Open to Financial Innovation
Despite its strict AML regulations, Switzerland is still far more advanced than most countries in terms of welcoming crypto businesses. For centuries the country benefited tremendously from attracting foreign capital thanks to its former banking secrecy laws, and now it obviously sees an opportunity to become an international center for digital finance.
This is in sharp contrast to much more restrictive jurisdictions, such as the U.S. and more traditional parts of Europe, where many businesses complain innovation is discouraged by heavy-handed regulations and some have already fled abroad. One of the most prominent recent examples of this trend is of course Facebook establishing the foundation for managing its Libra coin in Switzerland, which American politicians see as a possible threat to the hegemony of the U.S. dollar itself.
Another recent example of the financial innovation going on in the country is the first exchange traded product (ETP) tracking the performance of bitcoin cash (BCH) getting listed on Six, Switzerland’s principal stock market.
What do you think about regulators in Switzerland approving two crypto banks? Share your thoughts in the comments section below.
Images courtesy of Shutterstock.
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Bron : Bitcoin en toekomst van crypto

Court Instructs Craig Wright to Distribute Billions to Plaintiffs

On August 26, the self-proclaimed Bitcoin inventor, Craig Wright, was ordered by Southern District Court of Florida to distribute half of his BTC holdings and intellectual property assets from prior to 2014. According to the Kleiman estate attorney Vel Freedman, the family has waited a long time for the ruling and they believe things are headed in the right direction.
Also read: Uyen T Nguyen: The Powerful Young Woman Behind the Alleged ‘Satoshi Affair’
Kleiman Family Awarded 50% of Craig Wright’s Supposed BTC Mined Prior to 2014
According to multiple sources, the infamous Craig Wright appeared in Florida on Monday to defend himself against the Kleiman family’s lawsuit. The now-deceased David Kleiman was Wright’s business partner for years and the family has accused Wright of manipulating Dave’s inheritance. At the date of filing on February 14, 2018, they said the value of Dave’s assets “far exceed $5,118,266,427.50 USD before punitive or treble damages.” The Kleiman estate and Dave’s brother Ira insisted “Craig perpetrated a scheme against Dave’s estate to seize Dave’s bitcoins and his rights to certain intellectual property associated with the Bitcoin technology.” Fast forward to August 26, 2019, as Florida Magistrate Judge Bruce Reinhart advised the court that the Kleiman estate should get half of the BTC Wright allegedly mined with Kleiman before 2014. Moreover, half the intellectual property owned by Wright before December 31, 2013 should also be handed over to the plaintiffs, Reinhart recommended.
Since 2016, Craig Wright has claimed to be the creator of Bitcoin.
Not too long after Kleiman passed away on April 26, 2013, the plaintiffs said Wright reached out to Dave’s brother Ira and told him he partnered with Dave to “mine bitcoin, and create valuable IP.” The Kleiman estate says that Wright said Dave signed all these property rights away “in exchange for non-controlling share of a non-operational Australian company worth ‘millions.’” The plaintiffs accused Wright of document manipulation, fraud, and outright forgery. “As part of this plan, Craig forged a series of contracts that purported to transfer Dave’s assets to Craig and/or companies controlled by him. Craig backdated these contracts and forged Dave’s signature on them,” the lawsuit’s argument claims. According to reporter Katie Ananina who witnessed the hearing on Monday, the Judge said “Dr. Wright did not impress me as someone telling the truth. All Craig’s testimonies have been rejected on this matter.”

Federal District Court: “Craig Wright is a fraud”
Us: “Yeah, we know”
— Jake Chervinsky (@jchervinsky) August 26, 2019

“By this time y’all already know the outcome — 50% of all the patents related to Bitcoin and filed prior Dave’s death going Kleimans — So do 50% of the coins supposedly mined by CSW and Dave,” Ananina tweeted. “CSW pays Kleiman’s legal fees.” Judge Reinhart’s recommendation must be accepted by Judge Beth Bloom, however, who is also presiding over the case. Another reporter who calls himself 22nd Century Crypto witnessed the court proceedings as well and stated that Judge Reinhart implied he doesn’t believe the notorious Tulip Trust exists. “Any coins mined by [Craig Wright] from the time he met [David Kleiman] till the time [David Kleiman] passed is up for debate. As well as any IP that was developed during that time period,” the reporter explained. 22nd Century Crypto added:
Note: The judge does not think a trust exists. I would imagine this will have a large play in the actual trial.

And, yeah, I was right. And Craig Wright just lost, bigly. https://t.co/XXQbekYIJv
— Palley (@stephendpalley) August 26, 2019

Wright’s ‘Whale Warning’ and a New Novel
Following the statements of the cryptocurrency reporters who attended the hearing, the Kleiman estate’s attorney Vel Freedman commented on Judge Reinhart’s ruling. “The Kleiman family has waited a long time to recover assets that should have been returned to it shortly after Dave’s unfortunate death in 2013,” Freedman tweeted. “Today’s ruling marks an important step in the right direction.”

Judge will not refer to civil or criminal contempt though
— 22nd Century Crypto (@22centurycrypto) August 26, 2019

After the court proceedings, Craig Wright gave an interview to crypto publication Modern Consensus and told the interviewer that he expects the Kleimans will have to pay billions in taxes. Wright explained that he plans to comply with the courts and stated: “If the court makes an order, I will comply with the order. And the court has made an order. It’s that simple.” The self-styled Satoshi also said that the Judge “won’t rule on whether I’m Satoshi” and that people should be prepared for what lies ahead. Wright insisted:
Everyone might want to start praying, because I complied with courts and that might get scary really, really quickly. The courts ruled that Ira inherited the $5 billion. Now he has to pay estate tax on that if he wants it.
When asked whether the Kleimans will receive BCH and BSV, Wright explained in his interview that they would only receive BTC. “According to the judge it’s only from before Dave died, so only BTC. Sorry BTC,” Wright explained during his interview after the August 26 hearing.
Many litigators and journalists following the story understand that there’s still more to the Kleiman v. Wright case to come and the lawsuit could drag out for a few more months. Wright’s legal counsel can file an objection or try to appeal the process this week. The only thing filed so far is a paperless minute entry for the proceedings with Judge Reinhart, which took about two and a half hours. On social media channels like Twitter and Reddit, the crypto community has shown extreme exuberance in regards to the ruling. Digital asset supporters wonder how Wright will be able to pay the Kleimans as a lot of crypto proponents do not believe Wright even has a trust with hundreds of thousands of BTC.

The US court *did NOT* rule that Wright/Kleiman were Satoshi Nakamoto
Anyone telling you otherwise is either insane or a liar.
— Alistair Milne (@alistairmilne) August 27, 2019

Cryptocurrency proponents had hoped the ruling might push Wright out of the limelight but that doesn’t seem to be the case so far. Wright doesn’t seem fazed by the ruling, even though he said: “This is not an outcome I would have liked.” Moreover, Bitcoin Satoshi’s Vision (BSV) supporters have used the ruling to prove that Wright is Satoshi. “And Craig is officially proven Satoshi in court… So I guess it’s not that bad after all,” one BSV supporter exclaimed after the hearing.

So Ira Klienman inherits 5 billion $ in Bitcoin from his brother that Craig Wright must hand over. Where Ira is there is a 40% estate tax, so thats 2 billion dollars. Watch out for a big dump of bitcoin into the market unless he has the cash n hand.
— Daisy 🌼 (@DaisyEdwardsOz) August 27, 2019

In addition to the lawsuit in Florida and the ruling on Monday, the popular crypto Twitter handle @Pons De Serres revealed that Wright published a book two days ago called “Satoshi’s Vision: The Art of Bitcoin.” “”Now, Craig Wright steps forward to explain why he chose to use a pseudonym, why he left, and why he returned,” the book’s forward explains. The cryptocurrency community is already tearing the book to shreds, finding discrepancies and errors. The Kleiman v. Wright case still has to deal with more procedures tied to the discovery process, possible appeals and objections, and Judge Beth Bloom will weigh in on the matter as well.
What do you think about the outcome of the Kleiman v. Wright hearing this past Monday? Let us know what you think about this subject in the comments section below.
Image credits: Pixabay, Shutterstock, Wiki Commons, and Picsstop.
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Bron : Bitcoin en toekomst van crypto

The Changing Face of Cryptocurrency Trading in 2019

The cryptocurrency exchange landscape has evolved significantly in 2019. The number, quality and diversity of exchanges has multiplied, giving traders an unprecedented number of venues to choose from. This smorgasbord of options risks leaving traders overwhelmed, however, as exchanges jockey for supremacy, launching new features and products designed to woo the competition and cement their market share. These are the main trends and trading platforms that are changing the face of cryptocurrency trading this year.
Also read: Immortality, Cryogenics and UBI: How The Crypto Rich Influence Science
Something Old, Something New, Something Borrowed
Crypto exchanges have long emulated the market leaders, with first Coinbase and then Binance serving as the inspiration for the glut of trading platforms that have followed since. As the exchange ecosystem has matured, however, enterprising newcomers have begun to put real pressure on the incumbents, introducing new features and seeking to differentiate themselves in key benchmarks. The following exchanges provide a snapshot of the formula for success in 2019, and indicate what traders can expect in the months to come.

Integration is one term that crops up a lot across spot, derivatives, and decentralized exchanges. Trading platforms are increasingly trying to improve the on and off-ramps to the world of fiat, and to integrate more products that enable users to have all their needs met under one roof. Bitfoliex typifies this approach: it’s added a crypto portfolio management tool, so cryptocurrency users can track all of their assets, not just those custodied on the exchange. Security is bolstered by the use of multisig and 2FA, while an intuitive layout and clean UX make it easy for new traders to find their way around.

Another exchange that’s placed emphasis on integration and user-friendliness is Bybit. It has a reputation as one of the more welcoming derivatives exchanges on the market, aided by round-the-clock customer service and a beginner’s section that’s stocked with tutorials, a detailed FAQ, and links to articles on trading indicators and derivatives contracts. The exchange’s latest integration is a crypto switching tool that allows users to swap between coins at spot prices, without needing to place an order on-exchange. Bybit claims to be the first exchange to offer a service of this kind, which allows traders to obtain currency conversion quickly and cheaply, with average fees of around $5. It’s by no means the only derivatives exchange trying to make a name for itself, though, as the following examples show.

The Future of Derivatives Exchanges
Margin trading, which once had a reputation of being the preserve of degenerate traders craving Las Vegas-esque thrills, has had a makeover this year. This is thanks in part to the efforts of Binance and, to a lesser extent, Kucoin, whose margin trading platforms are onboarding retail investors who fancy trying their hand at derivatives trading. The limited leverage offered by the likes of Binance provides a safer environment for getting to grips with using margin, compared to the more mercurial Bitmex.

Meanwhile, Huobi DM (HBDM) has upped the ante by introducing real-time settlement for BTC contracts. This seemingly minor move has significant ramifications for users of the exchange, as well as the broader derivatives market. Bitcoin futures contracts normally settle daily or weekly on derivatives exchanges for reasons that include security and providing a window in which to check the legitimacy of trades before paying out. Thanks to real-time settlement, HBDM traders can now access their funds instantly, and deploy this liquidity elsewhere upon closing out a profitable position. To prevent the risk of clawbacks, Huobi DM has put up an insurance fund of over 1,000 BTC, with another 20,000 BTC held jointly with Huobi’s spot exchange, for added protection.
The Shape of Trading to Come
As if the derivatives market wasn’t already competitive enough, a handful of highly anticipated new exchanges are poised to enter the fray. This includes zero-fee trading platform Digitex, which has finally confirmed its beta launch on November 30. Following two months of testing to 10,000 users, it will open to the wider public. The USP that has garnered so much interest in Digitex is its promise of BTC-USD perpetual contracts without the usual maker and taker fees. Instead, a slow release of the native DGTX token will be used to fund the platform’s operations.
Despite the significant technical challenges that must be overcome to realize this goal, Digitex CEO Adam Todd is confident his team can succeed, telling news.Bitcoin.com: “Zero-fee futures trading has been a dream of mine for years and it’s finally going to become a reality. As the world’s first and only zero-fee futures exchange, traders from all over the world will soon be paying no transaction costs on any of their trades, creating massive liquidity.”

Coinflex is the other derivatives exchange that’s gotten heads turning, partly on account of its physically delivered crypto futures, which it claims to be an industry first. It also operates a large market-making scheme designed to incentivize monied bitcoin investors seeking to profit from providing liquidity. Coinflex has promised liquidity providers a $250K rebate should it achieve daily volumes of $500 million for its BTC-USD futures. Having recently closed a $10M funding round, the exchange has its sights set on the lucrative Asian market, and appears to have the industry support to make good on its goal.
FTX is another derivatives exchange being touted as a close competitor to Coinflex. It promises up to 101x leverage and a unique trio of altcoin indexes, which allow traders to speculate on the fortunes of a basket of assets. The ALT index covers major altcoins, MID covers medium cap coins such as ADA and NEO, and SHIT is an index devoted entirely to low-cap shitcoins. Finally, Xfutures exchange has gotten meta by creating futures markets on as yet unreleased tokens. It allows traders to speculate on the launch price of assets such as Perlin and Polkadot.
The Evolution of Exchanges
As the cryptocurrency landscape matures and solidifies, the majority of the volume will be absorbed by a handful of dominant spot and futures exchanges, with the long tail of contenders soaking up the remainder. Due to the highly competitive nature of the industry, and the need to be constantly innovating, expect to see the following trends surface through H2 2019 and into 2020:
Integration of CEXs and DEXs, sometimes through direct acquisition
More lending and staking delivered on-exchange
Ultra-high leverage of up to 200x
New indexes for trading baskets of cryptos filtered by sector, allowing traders to speculate on entire ecosystems (lending, exchange tokens, dApps, layer two)
New profit share schemes that grant users partial ownership of the platforms they use
With Bitcoin.com’s new cryptocurrency exchange, featuring support for SLP tokens, set to launch in under a week, traders have more options than ever.
Which features do you want to see cryptocurrency exchanges introduce? Let us know in the comments section below.
Disclaimer: Readers should do their own due diligence before taking any actions related to the mentioned companies, domains, domain vendors, and websites associated with this article. Bitcoin.com or the author is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services, domain products and website vendors mentioned in this article. This editorial review is for informational purposes only.
Images courtesy of Shutterstock.
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The post The Changing Face of Cryptocurrency Trading in 2019 appeared first on Bitcoin News.
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‘Not an Audit’: IRS Notice Could Spell Trouble for Crypto Traders

The IRS took to Twitter on August, 26, posting a video about recently mailed CP2000 notices, of special interest to crypto traders. The notice, which seeks to rectify discrepancies made by recipients in tax reporting, is another in a series of crypto-related letters recently sent by the agency. Though the promised guidelines for reporting still haven’t been delivered, crypto holders are nonetheless expected to magically know how to file. Some might even be surprised to learn that exchanges are sharing their financial info with the agency.
Also Read: India Facing ‘Unprecedented’ Economic Slowdown, Extraordinary Steps Urged
It’s Not an Audit, It Just Works Like One
The CP2000 notice is not strictly a crypto-related notice like notices 6173, 6174 or 6174-A, but because of the large role exchanges now play in cryptocurrency trading, and the information they release to the IRS, some taxpayers will have reported earnings that do not match the records of the exchanges they utilize. With previously promised guidelines still not issued, the likelihood of discrepancy is arguably large. These letters are not just friendly reminders, either, but come with real threats of severe punitive action. According to hrblock.com:
CP2000 notices aren’t audits, but they work the same. It’s important to fully respond by the IRS deadline.
Many taxpayers can’t believe the CP2000 is not an audit, as it looks and tastes the same.
Many exchange users might be wondering how or from where the IRS got their tax info. It’s worth noting that U.S. law requires all broker and barter exchange services to report individually — via a 1099-B — for “each person” for whom they facilitated trading of “property or services.” What’s more, the CP2000 notices aren’t even created by humans. They’re computer generated, and according to H&R Block, “may not be right.” The tax assistance site goes on to detail: “You might not owe the full amount – or anything at all. In fact, many taxpayers who get a CP2000 notice don’t end up owing anything.”

Learn about the #IRS CP2000 notice and how to respond by watching this video tip: https://t.co/4xWNRLIndJ pic.twitter.com/LU8sWted4E
— IRS (@IRSnews) August 25, 2019
The IRS’ Sweet Youtube Vid
Posted to the @IRSnews Twitter account on Monday, the linked video features an agency spokesperson (with all the calm, measured contempt of a robot) assuring viewers that the letters are not audits, but that:
They have 30 days to respond
They can contest the proposed adjustment, but must respond either way
If no solution can be agreed upon, the discrepancy can be contested in court
The spokesperson goes on to clarify that:
If we’re not able to accept your explanation … we’ll send you a CP3219A, which is a statutory notice of deficiency.
The CP3219A is basically an escalation of CP2000, which in order to be contested, obliges the recipient to file a petition with the U.S. Tax Court.

The Source of Confusion
Nobody knows exactly how, why, when, or where the IRS will choose to treat cryptocurrencies as securities, convertible virtual currencies, property, or otherwise, and in what combination. Technically, cryptos are “property” in the U.S., as per the last issued guidance in 2014, and taxes apply to property exchange. Some crypto tax accountants advise using like-kind reporting for this reason, to avoid unnecessary payments.
Tax experts have since confirmed that purchasing anything with crypto constitutes a taxable event, and the IRS seems to agree, judging by the new crypto-specific letters they’ve been issuing which state: “We have information that … you may not have met your U.S. tax filing and reporting requirements for transactions involving virtual currency.” This means that trading cryptos is a taxable event as well.
The IRS further requires third-party network and payment card transactions be reported via form 1099-K. Exchanges usually provide these forms to their high volume users to help them calculate capital gains, but which exchanges — outside of Coinbase — might also provide personal user information to the IRS, and how they do so, remains unclear.

Accountants Step Up
Helping confused people file crypto taxes is becoming big business. Especially since so few CPAs actually know how to do it. This is no surprise, as there is not a set procedure issued by the IRS in the first place. There are a few businesses and pioneering minds out there who are stepping up to the plate, however, in the midst of the unsettling ambiguity.
Enrolled Agent Clinton Donnelly of donnellytaxlaw.com recently shared his recommendation for filing safely, telling news.Bitcoin.com that “A great crypto tax return in the U.S. reports both the AML [Anti-Money Laundering] form and the crypto income.” The form being referred to here is 8300. Donnelly went on to clarify that if crypto traders have forgotten to file this form, they can follow a tax amnesty procedure to avoid $10,000+ fines. It’s important to remember, though, that while tax guidance can be a huge help, especially for big time traders, even the new experts don’t always agree. Once again, the non-existence of clear IRS guidance creates the trouble. In the case of new tax services, it has also created real market demand.

A Taxingly Tedious Situation
Ignoring the fact that taxation is a legalized form of stealing (legalized extortion), for those who still wish — for the preservation of their own safety and livelihood, or voluntarily — to comply, things are still not easy. With any number of forms being potentially required, AI databases examining exchange info against personal filings, and a complete lack of clear guidance from the agency demanding the money in the first place, the whole thing reads as darkly comical, bordering on the absurd.
Leave it to the IRS, the sentiment goes, to take a perfectly simple concept like P2P, permissionless exchange, and turn it into the head scratcher of a hot mess it is today, when viewed as a taxable event. It’s fairly certain a small child could devise a better plan, but then again, what would the IRS do without their jobs? There aren’t many openings in the private sector for someone to sit around all day threatening the more productive members of society.
What are your thoughts on the CP2000 notification? Let us know in the comments section below.
Disclaimer: Readers should do their own due diligence before taking any actions related to third party companies or any of their affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any third party content, goods or services mentioned in this article. Nothing in this article is to be construed as financial advice.
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Market Update: Economists Envision Global Recession While Crypto Prices Soldier On

Last week cryptocurrency prices bounced around after a majority of coins dropped in value on August 21. Today on August 26, digital currency markets have gained around 1.52%, gathering $4 billion since the initial slump. Despite the volatility, cryptocurrencies have consolidated and a few speculators believe a breakout is on the cards that could send prices sky-high or plunge below the current support.
Also read: Send Token Payouts With Ease Using Bitcoin.com’s SLP Dividend Calculator
Top Crypto Coins Slowly Move Northbound
On Sunday, August 25, the price of bitcoin core (BTC) gathered steam again after tumbling below the $10K zone. During the late evening trading sessions, BTC prices vaulted upwards $500 in a matter of minutes and many other markets also saw gains. Currently, the price of BTC is hovering around $10,342 per coin and there’s more than $17 billion worth of trade volume today. BTC’s market cap is $185 billion this Monday, which is 69% of the $267 billion dollar market cap of all 2,000+ coins.
Top 10 digital currency markets on Monday, August 26, 2019.
BTC/USD markets are up 2.27% today but are down 3.4% for the week. Following BTC is ethereum (ETH), which is up 0.5% today and down 5.3% over the last seven days. ETH is trading for $189 a coin and has an overall market valuation of about $20.4 billion. Ripple (XRP) is selling for $0.27 and prices have dipped in value over 3.8% in the last week. The fifth largest market valuation is held by litecoin (LTC) which is swapping for $74. LTC lost 3.9% last week but over the last 24 hours, LTC is up 1.61%.
Bitcoin Cash (BCH) Market Action
Bitcoin cash (BCH) markets have been holding steady and at press time one BCH is swapping for $309. BCH/USD is up 1.31% today but lost 4% over the course of the week. On Monday, August 26, BCH is the sixth most traded coin below EOS and above XRP with $1.37 billion in trade volume. USDT is the strongest pair trading against BCH with 56% of all global trades. This is followed by swaps with BTC (26%), USD (7.7%), ETH (6.4%), KRW (1.9%), and EUR (0.43%). The exchanges swapping the most bitcoin cash include Coinbene ($182M), Hitbtc ($70M), Okex ($50.4M), Digifinex ($46.6M), and Bibox ($38M). Bitcoin cash transactions in the last 24 hours were around 39,310 with a daily average this week just above 40K.
Bitcoin cash (BCH) spot price on August 26, 2019.
With a Possible Economic Crisis on the Horizon, Will BTC Act as a Safe Haven Asset Like Gold?
As the global economy shudders and prepares to embrace a looming recession, precious metal markets have rocketed while cryptocurrencies have seen lighter inflow. Some digital currency influencers are not so sure BTC is a safe haven asset right now. Speaking in an interview on the financial newswire Bloomberg, Spencer Bogart, a Blockchain Capital executive, is not quite convinced that an economic crisis is on the horizon. “When you think about really severe crises taking place, a liquidity crunch, another global financial crisis, I think that bitcoin will struggle to do very well from a price perspective,” Bogart explained. Despite the possible struggle, Bogart thinks in the “longer term bitcoin will absolutely be a safe haven.”
Bitcoin core (BTC) spot price on August 26, 2019.
In another interview on Nasdaq Trade talks, Nelson Minier, Kraken’s over-the-counter (OTC) lead executive, shared similar opinions. “I’m not so sure that it’s a safe haven asset yet, but I do think that it’s starting to act like one. I think that people are starting to portfolio manage, are starting to come in slowly. And when the market is getting shaky you saw Bitcoin rise, I mean, you wouldn’t see that before, it was trading like a risky asset,” Minier said. Just like Bogart, however, Minier remarked that BTC will likely fall into that category, stating “we’re heading that way for sure.”
BTC Price Reacts in Real-Time to Trump Trade War Tweets
On August 23, U.S. President Donald Trump told the American public that the trade war between the U.S. and China would continue to escalate. Immediately after the Trump tweets the price of BTC/USD spiked and well-known macro trader Alex Krüger noticed a chart milestone. “Today was the first time BTC reacted sharply in *real-time* to a Trade War breaking headline or USD/CNY fix,” Krüger tweeted. “As far as I can recall, this, in fact, is the first time BTC reacts in real-time to any event outside of crypto,” the trader added.

…Additionally, the remaining 300 BILLION DOLLARS of goods and products from China, that was being taxed from September 1st at 10%, will now be taxed at 15%. Thank you for your attention to this matter!
— Donald J. Trump (@realDonaldTrump) August 23, 2019

Similarly to gold, some speculators believe digital currencies can act as a safe haven asset in order to hedge against macroeconomic uncertainties. The tensions between the U.S. and China also made the price of gold jump more than 2.4% and the price per ounce of gold (Au) right now is $1,530.
Gold (Au) spot price on August 26, 2019.
Bitcoin Cash (BCH) Markets Still Indicate an Upward Trend
According to cryptocurrency price analysts, bitcoin cash (BCH) looks poised to break out northbound. The trader Mehak Punjabi explained on August 26 that the price of BCH may continue to rise higher and could target a price of around $330 per coin. “By comparing the price of BCH coin from its lowest value which was $283.29 on 15-Aug-19 at 05:00 UTC and the current trading price, BCH indicates a bullish trend by 10%,” Punjabi said. “The CMF indicator also reflects that the bitcoin cash price is indicating an upward trend. The 7-day high price of the coin $326.88 points the next target of BCH towards $330.” The analyst added:
Trading in the BCH for a long term will yield great returns and dividends.
Crypto Markets May Experience Extreme Economic Fallout for the First Time
Overall, most crypto supporters are still positive about the long term game but are still uncertain about the current period and whether digital currency markets will remain vibrant during a deep economic recession. Currently, the economies in Latin America are floundering and many countries in South America are dealing with severe inflation compared with the rest of the world. Economic growth in India is falling below average and the country’s Finance Minister Nirmala Sitharaman has plans to focus on priming lending and foreign funding. Moreover, Time reports that 34% of U.S.-based business economists are concerned that the U.S. will see a deep economic recession within the next two years. Most of the economists who participated in the National Association for Business Economics survey believe that America will see the economy tumble hard by the end of 2021.
Money flow into crypto on August 26, 2019.
With the macroeconomic uncertainty in the air and signs of distress, it is still hard to picture what crypto markets will do during an economic fallout. Bitcoin itself was born from the ashes of the 2008 economic crisis and has yet to experience a global recession of that magnitude. For now, with all the ‘doom and gloom’ happening worldwide, seeing a macro hedge spur from gold markets is normal. Despite over-exuberant optimism, no one really knows if cryptocurrencies such as BTC will act in the same manner if the global economy worsens. For now, it’s a case of wait and see.
Where do you see the price of bitcoin cash and the rest of the crypto markets heading from here? Let us know what you think about this subject in the comments section below.
Disclaimer: Price articles and markets updates are intended for informational purposes only and should not to 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.”
Images via Shutterstock, Crypto Fear & Greed Index, Trading View, Bitcoin.com Markets, and Coinlib.io.
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The post Market Update: Economists Envision Global Recession While Crypto Prices Soldier On appeared first on Bitcoin News.
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PR: SMART VALOR Lists Bitcoin Cash & Offers Users 5% Cash Back in Crypto

The first Swiss company to operate an integrated cryptocurrency exchange and custody, SMART VALOR, has added Bitcoin Cash to its range of listed tokens.Why does this matter and what’s in it for buyers?
The listing of Bitcoin Cash (BCH) on SMART VALOR matters, because it is the first fully compliant and licensed exchange launched out of Switzerland and Lichtenstein by a team of crypto pioneers of early Bitcoin days.
Founded in the Thomson Reuters Incubator in 2017, SMART VALOR today is one of the largest players in the Swiss Crypto Valley, the fastest growing global blockchain hub hosting over 800 blockchain companies. The firm is backed by big investors such as Tally Capital and Venture Incubator, funded by leading Swiss companies and banks such as Credit Suisse.
“Today, Switzerland is the largest global wealth destination, home to a quarter of all global offshore wealth. For over 200 years this place stands for data privacy, safety and security, with an impeccable reputation and high-quality banking services. The same is true for Liechtenstein. But until today, ironically enough, neither Swiss Crypto Valley, nor Liechtenstein, had an exchange offering trading and custody of digital assets. SMART VALOR has changed this, giving the privilege of stable, safe-haven jurisdiction not only to the rich, but to all.” said Olga Feldmeier, CEO of SMART VALOR and former XAPO and UBS executive in an interview with CoinDesk.
During a recently fully-booked joint meetup in South Korea, Seoul, hosted by SMART VALOR & Bitcoin Cash to commemorate the listing, Roger Ver said:
“SMART VALOR is a safe place to buy and sell cryptocurrencies…
I’m interested to give it a try, you’ll see me trading there as well!”
– Roger Ver
A useful feature of the SMART VALOR Platform is that users can buy Bitcoin Cash in four separate fiat currency pairs (USD, EUR, GBP, CHF) via bank wire or instantly with a credit card. Additionally, the exchange is offering trading and brokerage with zero transaction fees.
5% Bonus offered on BCH purchases on the SMART VALOR Platform*
RECEIVE CASH BACK
The decision to list BCH was a natural step for SMART VALOR, as it represents the second most used cryptocurrency for payments, which belongs to the top 5 largest crypto assets by market cap providing a super-fast, cheap and reliable transactions.
Watch what Roger Ver had to say about SMART VALOR below:
*Terms & Conditions: Bitcoin Cash Bonus Campaign
The user will receive a 5% bonus (up to $50) on any purchase of Bitcoin Cash on the SMART VALOR Platform. The minimum purchase to partake in the bonus is $200. Campaign participation is available until the 11th of September 2019. The bonus will be allocated in an equal split between BCH & VALOR.
How to participate:
Register on smartvalor.com and complete the onboarding procedures. Registered users are also eligible to participate in this campaign.
Purchase Bitcoin Cash (BCH) either via Bank Wire, Credit Card or Bitcoin, before the 11th of September 2019 at 00:00 CEST.
Participants must hold their Bitcoin Cash in their BCH wallet on smartvalor.com until the 20th of September at 12:00 CEST.
On the 25th of September the Bitcoin Cash bonuses will be deposited to the respective BCH wallets on smartvalor.com. The VALOR bonuses will be allocated as well, and subject to a lock-up of 1 month (25th October 2019).
Bonus calculation:
The total amount of BCH bought on smartvalor.com during the campaign will be taken into account. Only the Bitcoin Cash still held in the users BCH wallet on smartvalor.com will be considered towards the bonus (total applicable amount for bonus). Half of the bonus is in BCH and half in VALOR.
The amount of 2.5% of the total applicable amount for the bonus is provided in BCH up to a maximum of 0.083BCH ($25). The latter split of 2.5% of the total applicable amount for bonus provided in VALOR (1 BCH = 260 VALOR) is limited to a maximum of 20 VALOR ($25).
Additional terms:
Only users that are eligible to trade on the SMART VALOR Platform can participate.
Bitcoin Cash deposits will not considered in the calculation for the applicable bonus amounts.
Exchange rates have been fixed according to the bonus calculation above on August 23rd 2019.
SMART VALOR has the right to discontinue this campaign at any time.
Supporting Linkhttps://smartvalor.com/en
Contact Email Addresssheraz.ahmed@smartvalor.com
The post PR: SMART VALOR Lists Bitcoin Cash & Offers Users 5% Cash Back in Crypto appeared first on Bitcoin News.
Bron : Bitcoin en toekomst van crypto

India Facing ‘Unprecedented’ Economic Slowdown, Extraordinary Steps Urged

Many signs indicate that the Indian economy is under grave stress, affecting nearly all sectors. “India’s economy is in a deep mess,” due to initiatives such as demonetization and GST, some lawmakers say, as they urge the government to handle the situation “which is intensifying on a daily basis.”
Also read: Indian Supreme Court Orders RBI to Answer Crypto Exchanges, New Date Set
‘Unprecedented Situation’
India is facing an economic slowdown not seen in 70 years, Rajiv Kumar, the vice-chairman of Indian policy think tank Niti Aayog, explained at the Hero Mindmine summit last week. The current liquidity crisis has forced businesses to survive on cash since lenders have stopped funding them, he described. “Within the private sector nobody is ready to lend, everyone is sitting on cash.” The vice-chairman was quoted by local media as saying:
This is an unprecedented situation for the government of India. In the last 70 years nobody had faced this sort of situation where the entire financial system is under threat and nobody is trusting anybody else.
Rajiv Kumar
Randeep Surjewala, a spokesperson for the Congress political party (Congress), concurs that this is India’s worst liquidity crisis in 70 years, calling for the government to take immediate action. Parliament Member and Congress leader Rahul Gandhi said Friday that the “Government’s own economic advisors have finally acknowledged what we cautioned for long – India’s economy is in a deep mess.”
Every Sector Is Suffering
Parliament Member and Congress spokesperson Manish Tewari held a press briefing Friday regarding the financial downturn. The former Union Minister commended Niti Aayog’s vice chairman for admitting that the current stress in the financial sector is unprecedented. However, he added that Kumar’s statement requires a slight amendment, declaring that “It’s not just the financial sector, it’s the Indian economy.”
Chief Minister of the India state of Rajasthan, Ashok Gehlot, told the press that the “Crisis situation in [the] Indian economy as reflected in the statement of Vice Chairman, Niti Aayog, is a matter of grave concern for the entire nation,” emphasizing:
Almost all sectors are facing problems, lakhs [100,000s] of people are losing jobs.
Ashok Gehlot
Tewari shares the sentiment, stating that “Every sector of the economy is under grave stress,” pointing out that over three crore (30 million) people are currently facing a threat of becoming unemployed. According to textile industry participants, “this is perhaps the worst period which the industry has seen in the past 7 decades,” Tewari conveyed during the press briefing. The “inner-wear industry” is also suffering, he noted, adding that “The tea industry is facing [an] unprecedented crisis.”
In a press conference, Parliament Member and Congress spokesperson Abhishek Singhvi raised the issue of the slowdown in the automobile sector, with reports suggesting thousands of job losses there and in ancillary industries. Moreover, the real estate sector has a huge amount of unsold inventory while fast-moving consumer goods (FMCG) companies have reported a decline in volume growth. Singhvi also named several other issues, including crashing stock prices, the rising fiscal deficit, falling GDP figures, the continuous weakening of the rupee, and falling foreign direct and portfolio investments, PTI reported.
Auto Industry and Shadow Banking Crisis
A Non-Banking Financial Company (NBFC) crisis, also called a shadow-banking crisis, lies at the heart of the current economic slump in India. In recent years, shadow banks helped fund nearly 55-60% of commercial vehicles both new and used, 30% of passenger cars and nearly 65% of the two-wheelers in India, according to rating agency ICRA.
Following last year’s collapse of Infrastructure Leasing & Financial Services Ltd. (IL&FS), shadow banks have dramatically slashed lending. The year-long shadow-banking crisis has sent the credit profiles of Indian companies to a 19-month low in July, according to a Care Ratings index. In her July budget speech, the finance minister announced a series of reliefs to NBFCs facing a cash crunch. Meanwhile, the Reserve Bank of India (RBI) cut its benchmark interest rate last week for the fourth time this year.
“The slowdown in the (NBFC) sector has dragged down vehicle sales growth,” A.M. Karthik, financial sector head at ICRA, was quoted by Reuters as saying. “Now the auto slowdown is becoming more visible as the liquidity squeeze continues.”

Some 286 dealerships across India have shut down in the last 18 months due to rising costs for inventory management, according to the Federation of Automobile Dealers Association (FADA), which says that the Indian auto sector faces its biggest slump in nearly two decades. Passenger vehicle sales fell for eight straight months until June, the news outlet described, noting that sales dropped 20.55% in May – the sharpest recorded fall in 18 years. PTI publication wrote:
Sales have fallen in 12 out of 13 months since July 2018, underscoring the sharp slowdown in the world’s fourth-largest automobile market.
Demonetization, GST, and Other Issues
Kumar said the government needs to take “extraordinary steps” to handle the ongoing economic slowdown, IANS publication reported. “It takes a lot of courage to break the inertia … I think the government must do whatever it can to take away some of the apprehension of the private sector,” he was quoted as saying. According to him, the entire economic situation in India had changed after implementation of initiatives like Modi’s 2016 demonetization, the GST (Goods and Service Tax), and the Insolvency and Bankruptcy Code.
Former Minister of External Affairs and Congress member Salman Khurshid told the news outlet that the Indian economy needed a fundamental operation and restructuring, reiterating that the demonetization and the GST are the reasons behind the slowdown. Another Congress spokesperson, Pawan Khera, told the publication that “We have been raising concerns of unemployment, a complete downward trend of the economy, adventurism being indulged in by the prime minister such as in demonetization and GST. These are blunders which are monumental.”

Surjewala also slammed the government for its decision on demonetization and GST. “Three years after the introduction of the faulty GST, India continues to suffer massive shortfalls in revenue,” he opined, adding that “five years of economic mismanagement with sr. economic advisors resigning one after another, 2 RBI govs. leaving in quick succession, Economic quackery like demonetization, Are we surprised that the rupee is Asia’s worst-performing currency?”
Finance Minister’s Reply
After being criticized for her silence, Finance Minister (FM) Nirmala Sitharaman held an unprecedented press conference Friday to address the country’s economic concerns, local media reported. Among other initiatives to boost the economy, she announced capital infusion of Rs 70,000 crore into public sector banks to boost lending and improve liquidity in the financial system. Funding will also increase for housing finance companies as well as the National Housing Bank (NHB).
Sitharaman claimed that, despite the slowdown, India’s economy is still doing better than other countries such as the U.S. and China. Congress disagreed, tweeting that “You cannot make a growth rate comparison without looking at base levels … Our growth rate may be higher than US & China, but they are a $21 trill & $14.8 trill economies respectively, we are $2.8 trill.”
Nirmala Sitharaman
Further disputing the finance minister’s explanation, Congress wrote, “She may have also forgotten that in 2008 during the global recession, our economy remained stable because of Dr. Manmohan Singh’s policies,” emphasizing:
FM says India’s economy is down because of global situation – conveniently ignoring the simultaneous destruction by Demonetisation & GST … India is in dire need of an FM with a basic understanding of economics.
Despite his statement about the unprecedented financial slowdown, Kumar assured people on Twitter that “There is no need to panic or spread panic,” adding that “the government has been taking bold steps to accelerate our economy & will continue to do so.” Tewari is less confident. “The government does not have a clue as to how they are going to handle this crisis in the Indian economy which is intensifying on a daily basis,” he said during Friday’s press conference at his party’s headquarters.
Bold Reforms, Private Sector, Remonetization
Niti Aayog’s vice-chairman has asked the government not to hold back due payments to the private sector. Regarding the country’s NBFC crisis, he said the government would need to “eliminate apprehension from the minds of private sector players” to boost investments.
Raghuram Rajan
Former RBI Governor Raghuram Rajan also sees investments from the private sector as a solution. In an interview with CNBC TV18 last week, he said that the government needs to fix the immediate problems in power and non-bank financial sectors. The former central bank governor believes that “a fresh set of reforms” is needed to incentivize the private sector to invest to boost the economy and growth rate, stating:
We also need a new set of reforms, which energize [the] private sector to invest.
“SOPs (standard operating procedures), stimulus of one kind or the other are not going to be that useful in the longer-term especially given the very tight fiscal situation that we have,” he told the media outlet. “Instead bold reforms, well thought out jumping off the cliff but really, seriously thought out reforms in a variety of areas which energize the Indian people, energize the Indian markets and energize Indian business.”
Congress’ Gandhi suggested the government should “remonetize the economy, by putting money back in the hands of the needy & not the greedy.” Meanwhile, the Indian government is deliberating on a bill which seeks to ban all cryptocurrencies except state-issued ones, and the supreme court has ordered the RBI to reply to crypto exchanges’ representation within two weeks. The court is scheduled to resume hearing the case against the banking restriction by the central bank on Sept. 25.
What do you think of the economic situation in India? Do you think crypto can help the Indian economy? Let us know in the comments section below.
Disclaimer: Bitcoin.com does not endorse or support claims made by any parties in this article. None of the information in this article is intended as investment advice, as an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any products, services, or companies. Neither Bitcoin.com 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 and Business World.
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 India Facing ‘Unprecedented’ Economic Slowdown, Extraordinary Steps Urged appeared first on Bitcoin News.
Bron : Bitcoin en toekomst van crypto

Bitcoin Cash Innovation Accelerates With Cashscript High-Level Language

Software developers Rosco Kalis and Gabriel Cardona have been steadily working on Cashscript, a high-level programming language for Bitcoin Cash. When the language is tied to certain opcodes, specific schemes can be built that allow for autonomous and decision-based transactions. While testing Cashscript’s capabilities, the two engineers recently deployed an oracle, forfeits, an onchain wager, and a recurring payments contract.
Also read: Send Token Payouts With Ease Using Bitcoin.com’s SLP Dividend Calculator
BCH Developers Are Innovating With Cashscript
Bitcoin Cash (BCH) development is in full swing and over the last six months the tempo has really started to pick up. Things like the Simple Ledger Protocol, Schnorr signatures, opcodes, Cashshuffle, the programming language Spedn, and token dividend payments have galvanized the network’s versatility. Another project that’s seeing steady development is Cashscript, a high-level language for BCH created by the software developer Rosco Kalis.

I was asked by @cgcardona to wrap up a checkdatasig example for CashScript. So yesterday I put together a contract utilising CDS and oracles to enforce HODLing until a certain BCH/USD price has been reached. CDS opens the doors to awesome functionality!https://t.co/upTvNB9SmB
— Rosco Kalis (@RoscoKalis) August 25, 2019

News.Bitcoin.com reported on Cashscript in May, when Kalis discussed the number of innovative concepts that can stem from using Cashscript. The main focus for Cashscript developers is to make it easier for other engineers to plug a Cashscript contract into any web application. “For this workflow as well as the syntax of the language we took a lot of inspiration from Ethereum’s Solidity language and Web3.js / Truffle libraries,” Kalis told our newsdesk at the time.

Since then, Kalis and other developers like Gabriel Cardona, the creator of Bitbox, have been eagerly showing the BCH community what Cashscript is capable of doing. “Cashscript is a paradigm shift in expressiveness for BCH contracts,” Cardona explained this week while highlighting a bunch of experiments. For instance, Cardona showed the BCH community on Twitter how the Mecenas contract was replicated in Cashscript. Mecenas was a contract developed by Karol Trzeszczkowski that allows for recurring BCH payments. After redesigning the covenant-based smart contract solution in Cashscript, the developer asserted that “Large contracts like this is where Cashscript really shines.” On August 24, Cardona also tweeted that last year in Milan at the Satoshi’s Vision Conference, BCH engineer Awemany revealed a solution to the zero-confirmation problem by using a concept called “Zero-Confirmation Forfeits.” So the developer decided to replicate the zero-confirmation forfeit idea using the Cashscript language.
Are you a developer looking to build on Bitcoin Cash? Head over to our Bitcoin Developer page where you can get Bitcoin Cash developer guides and start using the Bitbox, SLP, Cashscript, and Badger Wallet SDKs.
‘BCH Supports Hodling Better Than BTC’
While showing the ported Cashscript examples on Twitter, Cardona also tipped his hat to developers who helped initiate these ideas like Tendo Pein, Karol Trzeszczkowski, Rosco Kalis, Emil Oldenburg, Chris Pacia, and Tobias Ruck. The next day on August 25, Cardona showed the public a wager contract from Emil Oldenburgs’s onchain bet example from “Taking OP_Checkdatasig out for a test drive.” The new wager contract was written in Cashscript, which executes an onchain bet between two parties and can only be settled by block height and price signed by an oracle. “Noncustodial financial services are about to change everything,” Cardona exclaimed. In another example, Kalis and Cardona produced an oracle using Cashscript and OP_Checkdatasig. The contract forces holding onto the asset until a certain price target has been reached. The “Hodl-Vault” contract specifications state:
A minimum block is provided to ensure that oracle price entries from before this block are disregarded: When the BCH price was $1,000 in the past, an oracle entry with the old block number and price can not be used. Instead, a message with a block number and price from after the minBlock needs to be passed. This contract serves as a simple example of OP_Checkdatasig-based contracts.
After the contract was created, Spedn creator Tendo Pein tweeted: “BCH supports hodling better than BTC.” “Anything BTC can do, BCH can do better,” Cardona replied. On the Reddit forum r/btc, BCH supporters welcomed the innovation stemming from the Cashscript language. Cashscript can allow for many types of autonomous and decision-based transactions like oracles, zero-conf forfeits, digital good purchases via PGP signature, Pay to ID, cold wallet timeout, enforced multi-signature signing order, stablecoins, covenants, secure multi-party computation, blind escrows and spending constraints. “[It’s] going to be exciting to see what people can come up with using these new features,” one BCH supporter said after reading about the innovations Cashscript could prime in the future.

Non Custodial Financial Services are about to change everything.
— Gabriel Cardona (@cgcardona) August 25, 2019

Oracles and Decision-Based Transactions Without the Need for a Custodian’s Decision
One of the biggest conversations stemming from the r/btc post about Cashscript was the use of oracles. Many cryptocurrency enthusiasts and blockchain developers believe that the BCH blockchain could provide verifiable multi-sourced facts, so people can use a trustless oracle for better decisions. Oracles are neutral by design and can allow the BCH chain to verify enough valid data to prove something is true or false, which then would essentially trigger decision-based transactions based on the outcome.
Since ancient times, humans have used oracles to make hard decisions, execute bets and wagers, and provide validated reports. The opcode OP_Checkdatasig has brought the idea of blockchain oracle concepts using the BCH chain to the forefront. The opcode can check the validation of certain signatures, and return two different outcomes in an autonomous fashion. This means BCH-powered oracles can provide a definitive outcome for things like sporting events, election results, and prediction markets. But it would do so in a way that removes the need for a third party or custodian’s decision.

Why #CashScript? Which would you rather write?
1. CashScript2. Raw Bitcoin Cash Script
CashScript is a paradigm shift in expressiveness for $BCH Contracts. pic.twitter.com/9Ot3Irgndv
— Gabriel Cardona (@cgcardona) August 24, 2019

Developers have already proven these types of decision-based transactions can work without changing the current BCH rule set. People have built onchain wagers, oracles, digital currency inheritance schemes and even a game of onchain chess. It’s still very early, but Cashscript is maturing fast and BCH developers can utilize the language right now to execute these types of decision-based transactions into their workflow. As Cardona highlighted earlier this week, noncustodial financial services will decimate the current way we deal with money. Innovations like OP_Checkdatasig, Cashscript, Spedn, and Schnorr help to realize this goal.
What do you think about the Cashscript language and developers creating unique types of decision-based transactions with Cashscript and OP_Checkdatasig? Let us know what you think about this subject in the comments section below.
Image credits: Shutterstock, Jamie Redman, Github, Cashscript, and Twitter.
Are you a Bitcoin developer? You can create your own Bitcoin Cash app with the Bitbox and Badger Wallet SDKs, get started with BCH tokens through the SLP SDK, and build your knowledge base with our Bitcoin Cash developer guides.
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Bron : Bitcoin en toekomst van crypto

Immortality, Cryogenics and UBI: How The Crypto Rich Influence Science

The rise of cryptocurrency is changing the philanthropic world by causing the redistribution of wealth from old money to visionary innovators and early tech adopters. The new crypto rich invest their donations by supporting scientific research in groundbreaking fields that may one day enable humanity to cure aging, reverse death and completely change the relationship between work and income.
Also Read: How Does a Country Do an ICO? They Call It QE
The Cryptorati Want to Defeat Aging
Examining the record of donations made by the crypto rich reveals a pattern of support for goals that others may feel belong in the pages of science fiction novels. Having benefited greatly from recognizing the potential of peer to peer electronic cash earlier than the masses, it is no surprise that they have great optimism in the power of technology to radically change our lives for the better.
One of the main benefactors of this type of donation focus is the SENS Research Foundation located in Mountain View, California. The non-profit SENS (Strategies for Engineered Negligible Senescence) defines its goal as working to develop, promote, and ensure widespread access to therapies that cure and prevent the diseases and disabilities of aging. Unlike the traditional medical approach of only treating or managing old age problems as they kick in, this approach focuses on comprehensively repairing the damage that builds up in our bodies over time, thus mitigating the aging process as much as possible.

In the early 2000s, Michael Novogratz donated to the research organization and the Pineapple Fund gave SENS $2 million in BTC last year. Moreover, Ethereum founder Vitalik Buterin also donated $2.4 million to SENS in 2018 and another $350,000 in January 2019. The regenerative medical therapy organization also raised another $4.1 million in cryptocurrencies last year in addition to the Pineapple Fund donation.
The chief science officer of SENS, British biogerontologist Aubrey de Grey, talked about the relationship between his venture and crypto proponents last year and detailed that many have donated to the research organization. “I’m not in this to do science for the sake of doing science,” de Grey explained. “I’m in it for the ultimate goal.” He further revealed that a few anonymous donors have given SENS $1 million each and other cryptocurrency personalities are also long-term donors of the foundation.
The Cryogenics Connection
Another main benefactor of donations made by crypto personalities is the Alcor Life Extension Foundation. This nonprofit based in Scottsdale, Arizona, advocates for, researches, and performs cryonics. This entails the freezing of the whole human corpse or just the brain in liquid nitrogen after legal death, with hopes of resurrecting the individual when the requisite technology is developed in the future.
According to reports, a number of crypto rich have anonymously donated to Alcor’s cryonics research. The top connection between the field and cryptocurrency is that Alcor might be preserving the body of a man some believe to be Satoshi Nakamoto himself. Hal Finney is the computer scientist who received the very first bitcoin transaction and helped get the network up and running during its first year. On Aug. 28, 2014, Finney’s body was taken to an Alcor facility soon after his death and underwent the cryogenic process. In May 2018 the foundation announced that cryptocurrency enthusiast Brad Armstrong gave it a $5 million research contribution, being held in the name of the “Hal Finney Cryonics Research Fund”.

Another connection between cryptocurrency and cryogenics is that computer scientist Ralph Merkle, known for creating cryptographic hashing, the Merkle tree and other inventions, is also a researcher and advocate of cryonics. He reportedly knows a few crypto people who have donated to cryonics and also helped raise funds for Alcor.
Universal Basic Income and MDMA
A more economic research topic, but one that could have drastic implications for human society no less than curing aging or cheating death, is Universal Basic Income. UBI is one of the hottest economic debate topics of the last couple of years, talked about as a possible solution to technological unemployment, preventing humans from falling behind once robots take over all the jobs. The idea has even gained support from various politicians around the world recently such as U.S. democratic candidate Andrew Yang.
Basically the UBI plan is to provide everyone with a stipend so that they can live their lives without worrying about making enough money from work just to survive. This raises several questions as it goes against how many believe the world should function and it will also be an unprecedented experiment in the human condition. The Pineapple Fund made a $5 million donation to the organization Give Directly in 2017 to sponsor cash transfers to people living in extreme poverty in Kenya, Uganda, and Rwanda where it is possible to test the UBI concept before it’s implemented in more expensive regions of the world. The Pineapple Fund has also donated more than $1 million to aid in the research of using MDMA as a treatment for PTSD.
Crypto rich and well-known community personalities have of course donated to other causes than the above mentioned scientific research projects. To list a few examples, Justin Sun gave $3 million to the Binance Charity Foundation, $250,000 to the ALS association and over $4.5 million to Glide which aims to alleviate poverty. John McAfee donated a 27-foot boat worth $1.1 million to the Belize Coast Guard. The CEO of Coinbase, Brian Armstrong, even signed the Giving Pledge, the drive started by Warren Buffett and Bill Gates for rich people to give away the majority of their wealth instead of leaving it to their heirs.
What do you think about the fields of scientific research the crypto rich donate to? Share your thoughts in the comments section below.
Images courtesy of Shutterstock.
Verify and track bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. Also, keep up with your holdings, BCH and other coins, on our market charts at Bitcoin.com Markets, another original and free service from Bitcoin.com.
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Bron : Bitcoin en toekomst van crypto

Bitcoin History Part 16: The First Mt. Gox Hack

No one remembers the first Mt. Gox hack. It was a small sum, even by 2011’s standards, and the exchange reimbursed all users. The incident was to prove significant, however, for it set in motion a string of attacks on other bitcoin platforms that began the very next day. By the time the dust had settled six weeks later, four separate thefts had occurred, culminating in the loss of more than 178,000 bitcoins.
Also read: Bitcoin History Part 15: Silk Road Is Born
The First Bitcoin Exchange Hack
Summer 2011 was a heady time for the internet. Twitter was still good, deplatforming had yet to become a thing, and free speech was taken for granted. Back then, you could say what you liked, how you liked, to whoever you liked, and if that person didn’t like it, they could turn off their computer and go for a long walk in the sunshine, which solved the problem. Anyone with any sense wasn’t walking anywhere in mid-2011, however, because everything that mattered was happening on the internet, and it was riveting.

For purveyors of the illicit, the insurrectionary, and the innovative, June 2011 might just go down as the most exciting month on the internet yet. It began with Gawker blowing Silk Road wide open on June 1, and would culminate, on June 25, with hacker group Lulzsec releasing its last data dump, comprising millions of passwords and sensitive data from scores of corporations. Sandwiched in between all this chaos were two noteworthy bitcoin hacks that weren’t of Lulzsec’s doing. The first, on June 19, was the first exchange hack in Bitcoin history, with the second occurring a day later as a direct result of this incursion.
Mt. Gox Gets Goxxed
Before Mt. Gox became so synonymous with failure as to spawn a verb describing the act of getting rekt, it was a successful exchange that was at the heart of everything that was happening in Bitcoin. It was to suffer its first hack, however, a little over a year into its life as a bitcoin exchange, and just three months after Mark Karpeles had taken over its operations. The incident occurred as a result of this ownership change, which entitled the former owner to a share of revenue, and with the administrator access to audit their earnings.

On June 19, someone hacked into the admin account and generated vast amounts of BTC on the Gox orderbook. Doing so drove the price of BTC from dollars all the way down to a cent. The hackers then bought the cheap BTC with their own accounts and withdrew their cheaply gotten gains. They weren’t the only ones to profit from the BTC flash sale going on, with other Mt. Gox users making the most of the opportunity.
‘I’m Kevin, Here’s My Side’
In an account of how they capitalized on the mishap, Bitcointalk user “toasty” wrote on June 20, 2011: “I’m Kevin and I’m the guy who bought 259,684 BTC for under $3,000 yesterday. I really wanted to keep this as quiet as possible, but I don’t feel I can anymore. Here’s my side of what happened.” He went on:
“I was watching, like many of you, a gigantic sell order burning through the bids. Mt Gox doesn’t execute trades very quickly, so we were watching this huge order slowly eat up every buy order on the books. The price started at around $17.50, and within minutes was below $10. At this point, I realized this wasn’t merely a large seller willing to accept some losses. This was someone attempting to crash the market by selling a huge percentage of the market’s total bitcoins at once.”
Despite the exchange “running slower than molasses at the time,” toasty eventually “got a buy order in, offering to buy as many bitcoins as I could for $0.0101. The site stopped responding completely for a while, probably from so many people hitting refresh to see what was going on. When I got back in, I saw in my account:
06/19/11 17:51 Bought BTC 259684.77 for 0.0101
“I had just purchased over 250,000 bitcoins for $2613. At the trading price immediately before this large sell order happened, that number would have been worth nearly $5 million. After I regained my breath, I tried to figure out what to do.”
Two Strikes in Two Days
Despite withdrawal limits that were meant to be in place, both toasty and the real hacker managed to withdraw significant quantities of coins – toasty alone made off with 643 BTC. There followed an intense debate on the Bitcointalk forum about who was to blame for the theft, and whether toasty was entitled to his bargain bitcoins. The value of the 2,643 BTC Gox lost in the hack was valued at $47,000 at the time, and the exchange made full restitution to users who lost funds in the incident. It was powerless, though, to prevent a second hack which occurred within 24 hours of the breach.
On June 20, 2011, as toasty was confessing to his opportunistic trade and pondering what to do with his riches, the Bitcoin community was rocked by a second strike. Users of wallet service Mybitcoin.com reported that their accounts had been breached and their BTC stolen. It quickly became clear that the Mt. Gox database had been accessed during the hack, and that identical passwords and usernames on Mybitcoin had been plundered.
The pseudonymous operator of Mybitcoin acknowledged: “We’ve concluded that around 1% of the users on the leaked Mtgox password file had their Bitcoins stolen on MyBitcoin.” In total, 4,019 BTC worth $72,000 were stolen, with Mybitcoin covering their losses.

The Summer of Lulz
June 2011 was a dramatic month, as the world began awakening to Bitcoin, set to a montage of Lulzsec hacks complete with heavy trolling of the three-letter agencies that were on their tail. The action didn’t let up either, for the next month there was more drama in these intersecting worlds (Lulzsec accepted donations in BTC, and were as enamored with bitcoin as many bitcoiners were with them). On July 18, the Anonymous-affiliated group exited retirement to hack the website of British newspaper The Sun, planting a fake story that owner Rupert Murdoch had died after ingesting palladium.
On July 26, Polish exchange Bitomat lost its wallet file containing 17,000 BTC. Three days later, Mybitcoin, the wallet service that had been breached in June, exit scammed with 154,406 BTC, only half of which were ever recovered. To recoup its 17,000 BTC losses, meanwhile, Bitomat was put up for sale, and in August 2011 a buyer was found: Mark Karpeles. The Mt. Gox CEO agreed to cover its debt, and welcomed Bitomat’s users to his Tokyo-based exchange. The deed was performed partly to restore faith in the still fragile Bitcoin ecosystem. Subsequent bitcoin hacks involving Mt. Gox would prove larger and harder for its CEO to absorb, but all that was still years away.
Bitcoin History is a multipart series from news.Bitcoin.com charting pivotal moments in the evolution of the world’s first cryptocurrency. Read part 15 here.
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.
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Bron : Bitcoin en toekomst van crypto

Send Token Payouts With Ease Using Bitcoin.com’s SLP Dividend Calculator

On August 23, Bitcoin.com released a new application called the SLP Dividend Calculator. The new platform allows users to build a transaction to make dividend payments to any Simple Ledger Protocol (SLP) token holder.
Also read: How to Create Non-Fungible Assets and Collectible Tokens With Bitcoin Cash
Testing the New SLP Dividend Calculator From Bitcoin.com
Over the last year, SLP tokens have been extremely popular among BCH proponents, and so far supporters have made thousands of unique coins on the BCH chain. As time has progressed, the SLP ecosystem has matured a great deal and there are many third-party solutions supporting the token infrastructure. This week, Bitcoin.com added a new platform to our Tools.Bitcoin.com portal called the SLP Dividend Calculator. The application provides users with the ability to make grouped dividend payments to specific SLP token holders. For instance, if you distributed fractions of an SLP token to a group of three people, then you could enter the token’s ID and send funds to all three holders at a specific point in time. With the ability to pay BCH dividend payments to SLP token holders, the new tool opens the door to all kinds of real-world use cases.
To use the new Bitcoin.com SLP Dividend Calculator simply add an SLP Token ID, the desired dividend payment in BCH, and when you want the payment to be sent. After you are happy with the customization, press “Build Tx” to start the process.
After the new tool was released, I decided to test the service in order to highlight just how easy it is to use the new Bitcoin.com SLP Dividend Calculator. I tested the app with my cousin, Andrew Brow, because back in June I sent him some custom SLP tokens called “Andy Coin (ABC)” just to show him how simple it is to create tokens. At the time I created 21 million ABC coins and sent 10 million to my cousin’s Badger wallet. Last night I opened up the SLP Dividend Calculator and pasted the token’s unique ID number into the first window.

Sent an SLP dividend payment flawlessly just now. Sent the funds and paid the unique payment code that said “Paying 0.003176 #BCH to holders of SLP Token ID…” It paid perfectly splitting the funds between addresses, confirming in 1 block. Was also a Schnorr transaction. 👏 pic.twitter.com/CnpIpjrB2g
— Jamie Redman (@jamieCrypto) August 24, 2019

Then I decided to pay $1 to the Andy Coin token holders, which means it will be split in half between both of us, because we are both ABC token holders. The SLP Dividend Calculator can pay a lot more than just two addresses, but for this test two was enough. After making sure the SLP token ID and the number of funds I wanted to send were correct, I decided to make the funds available at the last confirmed block height. You can also choose to broadcast it as is in the latest mempool state or you can choose a custom block height as well.
After the dividend transaction is built the tool will display all the specifications tied to the payment alongside a QR BCH invoice that uses a unique Pay.Bitcoin.com URI. You can use the Bitcoin.com Wallet to pay the invoice or you can use any wallet that supports Bitcoin Payment Protocol for payments.
The service gives you two choices after the customization is complete: you can either press the button “Start over” or “Build the transaction.” After I chose to build the transaction, the application showed me exactly what would happen after I paid the unique payment invoice. The SLP balances were scanned at block height 597121 and I sent a dividend payment of 0.003176 BCH, which would be paid to the token holders of the Andy Coin token ID number. The platform also told me that two addresses would receive a BCH dividend payment after I paid the QR invoice code through Pay.Bitcoin.com. Any wallet that supports invoices, like the Bitcoin.com Wallet, can pay the invoice by copying the URI scheme or scanning the QR code. I used the Electron Cash wallet to pay the invoice, because I had some available funds in the wallet and I wanted to see exactly how the transaction was built and executed from the client perspective.
The Pay.Bitcoin.com invoice can be paid using a wallet that supports invoice payment features like the Bitcoin.com Wallet and Electron Cash.
Opening the Door to a Decentralized Stock Market, Trust Payments and Bearer Bonds
After paying the invoice, the transaction broadcasted and my cousin Andrew and I were both sent $0.50 in BCH each. The transactions confirmed in the following block and the entire test can be seen on Bitcoin.com’s Block Explorer or Simpleledger.info as well. The tool could be used for a variety of interesting dividend payment ideas. For instance, Bitcoin.com’s executive chairman, Roger Ver, recently sent BCH dividend payments to Cashgames.Bitcoin.com Dividend Test Token (CGT) holders for being Cashgames.Bitcoin.com patrons.
After pasting the URI code into the Electron Cash wallet you can then choose to execute the dividend payment.
A person with four children could create four separate non-fungible (NFT1) tokens with the kids’ names attached to them and call them Trust Tokens. After a specific block height, the Trust Tokens can be sent a BCH dividend payment in order to leave an inheritance to the children. Or a business could have people invest in the company by initiating an initial coin offering (ICO) and token holders could reap the profits in the form of dividend payments over time.
The Electron Cash wallet shows you the specific details of the dividend transaction.
The sky’s the limit when it comes to the variety of concepts that can derive from people using the Bitcoin.com SLP Dividend Calculator. Since the application was launched, a bunch of BCH supporters have tested the platform to send funds to certain token holders. “Fantastic,” one BCH enthusiast wrote on the Reddit forum r/btc. “[This] gives us decentralized stock market… dead easy to use.”
This my transaction sending a dollar’s worth of BCH to my cousin’s address and my address.
“Holy crap the new SLP dividend tool is awesome. Just played around with it and sent all holders of the MIS token their share of .01 BCH just to test it out,” another BCH user said on Twitter. “This is magic internet money for reals.” If you have created SLP tokens you can try sending a dividend payment to token holders by using the SLP Dividend Calculator. The process takes less than two minutes to complete and you don’t need to be a tech wiz to use the new tool. Check out the platform at Tools.Bitcoin.com and send your first BCH dividend payment today.
What do you think about the new SLP Dividend Calculator? Let us know what you think about this new tool and concept in the comments section below.
Image credits: Shutterstock, Electron Cash, SLP Dividend Calculator, Pixabay, Bitcoin.com’s Block Explorer and Wiki Commons.
Do you need to track down a Bitcoin transaction? With our Block Explorer tool, you can search by transaction ID, address, or block hash to find specific details. You can also search for SLP token transactions on the Bitcoin.com Block Explorer as well.
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Bron : Bitcoin en toekomst van crypto

Initiative to Curtail Negative Interest Rates Gains Traction in Germany

Negative interest rates, a common occurrence in Europe these days, are unpleasant for both banks and clients. And financial institutions have been increasingly transferring the bulk of the burden on to their customers. Some political factions in Germany, however, aren’t happy with the trend and are pushing for adequate protection for the ordinary small saver, who is often their voter too.
Also read: Major Swedish Bank Orders Negative Interest Rate on Euro Deposits
Bavarian Leader Wants Berlin to Outlaw Punitive Interest
Germany needs to ban banks from passing negative rates to retail clients and it has to do so with a law. That’s according to Markus Söder, the prime minister of Bavaria, the largest and richest German state, and leader of the Christian Social Union (CSU). The local official with national prominence recently opened a front against subzero rates announcing an initiative in the Bundesrat, the upper house of the federal parliament, to exempt deposits of up to €100,000 from the punitive interest.
Markus Söder
According to Söder, negative interest rates do not correspond to the financial culture in the country. German savers are already losing billions due to the low interest rates of the European Central Bank (ECB), he recently told Bild. The German politician thinks a change of course is necessary in terms of interest rate policy at European level. Berlin should make it clear to Christine Lagarde, nominated to become the next ECB president, that negative rates are not a sensible way forward, Söder stressed.
The head of the Bavarian executive power thinks it’s absurd when even banks that have ‘savings’ in their name have to resort to imposing negative interest rates which thus make saving unattractive. “We need a legal ban in Germany that prevents these negative rates from being passed on to small savers,” the official insisted. Unlike small depositors, wealthier savers have started looking for and some have already found alternative investment opportunities. He further commented:

Banks would have to balance their costs differently. Saving must be rewarded and not punished.

Push Against Subzero Rates Gathers Support
The initiative for a ban on punitive interest rates has already garnered political backing on national level. Söder’s proposal was welcomed by Wolfgang Steiger, secretary general of the Economic Council of the Christian Democratic Union (CDU). While CSU is based only in Bavaria, its larger counterpart, the CDU, is present in all other 15 states of the Bundesrepublik. The two conservative sister parties form a common parliamentary group in the Bundestag called the Unionsfraktion.
With these interest rates, Steiger noted recently, German savers pay for the rescue of the euro. Prime Minister Söder rightly demands a shift in the European monetary policy, he stressed, calling his colleague’s efforts important. CDU’s high-ranking representative elaborated that in a functioning competitive order, private property must be protected from arbitrary interference and stated:

Zero and negative interest rates are nothing but expropriation. It is therefore high time for the ECB to reduce its so-called unconventional monetary policy, stop the creeping financing of sovereign debt, and allow interest rates that reward savers and not punish them.

Speaking to the German press, Wolfgang Steiger bluntly warned that the pensions of millions of people are literarally sinking. This, in his view, undermines basic trust in politics while also inflicting permanent damage to the cohesion of society.
Söder’s effort received support from another corner of the political spectrum. The idea sounds good according to Olaf Scholz, Germany’s finance minister and vice chancellor in Angela Merkel’s coalition government. Scholz, who is a representative of the Social Democratic Party (SPD), indicated he is willing to check if small savers can be protected from penalty interest by law. “Negative interest rates are a real burden for private savers,” a spokeswoman for the Federal Ministry of Finance told the Bild. That’s why the ministry is now examining closely whether it’s legally possible to prevent them.
Federal Ministry of Finance
Scholz expects interest rates to remain very low in the next few years. Last week, he was quoted by Reuters saying that companies should seize the opportunity for near-zero borrowing costs to boost private sector investment. He pointed to the United States, where businesses and entrepreneurs are much more willing to put money into new projects. “My wish is that we also achieve such a cultural change here,” Scholz emphasized and added: “Don’t do it my way. I simply put it in my savings account.”
The German finance minister also noted that central banks are currently pursuing a loose monetary policy. The ECB has already signaled it’s planning more measures to stimulate the euro zone economy in order to avoid recession, including a new rate cut to an all-time low of -0.50% in September and restoring quantitative easing efforts in October by purchasing assets worth €15 billion ($16.6 billion).
Some Doubt a Ban on Negative Rates Is Going to Work
A move to ban negative interest rates in Germany is likely to face some challenges. Financial institutions in the Eurozone are now forced to pay a subzero, -0.40% penalty on their deposits with the European Central Bank (ECB). And they are obliged to keep mandatory reserves there. Under these unfavorable conditions, 115 banks are already partially passing on the punitive rates to their private and business clients, an analysis conducted by the German financial portal Biallo shows. Preventing them from doing so with legal means may involve dealing with certain constitutional issues and hence take time to accomplish.
European Central Bank
Doubts have been expressed by representatives of legal and financial circles in the Federal Republic as well. According to Daniela Bergdolt from the German Bar Association, the country’s legislature has the power to introduce such restrictions, but a law banning negative rates for small savers would still be difficult to implement because of obligations to provide equal treatment to all depositors. A prohibition would also breach the autonomy of the financial institutions through government intervention in their business.
Others think a ban on subzero rates would be unlawful and push banks into an even deeper earnings crisis. Some have already rejected Söder’s initiative. According to the German Savings Bank Association, statutory prohibitions won’t help in any way. The lenders would pass on the negative interest, which they themselves have to pay to the ECB, regardless of the imposed restrictions. That could be done through higher account management fees, for example. Besides, a German law would not change the risky monetary policy of the European Central Bank in any way.
Danske Bank Investigated for Overcharging Clients
European banks, however, owe customers fair treatment after all, as a recent case in Denmark shows. The country’s financial regulator has prepared a draft report for the police about Danske Bank’s practice of overcharging some of its clients. The Financial Supervisory Authority (FSA) revealed earlier this summer it was investigating the major Danish bank for continuing to sell its Flexinvest Fri investment product despite expectations for poor performance which remained hidden from customers, according to Reuters and the local daily Jyllands Posten. The institution knew the return after fees would be less than the 0% rate on the deposit accounts.

Following these revelations, Jesper Nielsen, Danske’s interim CEO at the time and head of its domestic bank, was fired. And in June, the credit institution promised to compensate investors with 400 million Danish kroner (almost $60 million). Details came out while the bank’s management was trying hard to restore public trust after its name was involved in a huge money laundering scandal in Europe. In damage control mode, the bank recently announced it’s not planning to impose negative rates on personal savings accounts or introduce additional fees for its wealthy depositors.
If you don’t want to be punished with negative interest rates and excessive bank fees, cryptocurrencies offer an attractive alternative. You can save in decentralized digital assets using the services of platforms like Cred which, in partnership with Bitcoin.com, provides you with up to 10% interest on your BCH and BTC holdings.
Do you expect Germany to adopt a law banning subzero interest rates on savings? Share your thoughts on the subject in the comments section below.
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