No, Forbes, Facebook’s Newly Detailed Not-So-Crypto is No Rival for Bitcoin

The launch of a crypto-like-currency by social media giant Facebook has been the topic of many discussions in the Bitcoin and digital asset space recently. However, little was known about it outside of the company developing a mysterious blockchain department and rumours about a WhatsApp-based digital coin being launched by the firm.
According to a report published today by Forbes more details of the project have emerged. Nothing is particularly exciting about today’s revelations but we really wish the publication would drop the “rival to Bitcoin” angle.
Facebook Announces Further Details of its Intranet to Bitcoin’s Internet
The social media giant Facebook has disclosed further details about its plans to launch a digital currency (very) loosely inspired by Bitcoin. The company will reportedly be launching “GlobalCoin” – snappy, we know – in early 2020 and will offer some form of payments network between a dozen countries at first.
According to reports, Mark Zuckerberg, the founder and CEO of Facebook, met with Bank of England governor, Mark Carey, to discuss the plans and has also put the idea to US Treasury officials, as well as money transfer firms, and the top brass at the Gemini crypto exchange.
Zuckerberg told a Facebook developer conference last month that he thought payments was an area that the firm could really make things easier for people. However, the move also stinks of a desperate attempt to stay relevant amid dwindling users and security controversies such as the Cambridge Analytica scandal last year.
Fast, Cheap, Centralised Payments, Two out of Three Ain’t Bad, Right?
The fact that today’s announcement did not move the Bitcoin market whatsoever could be evidence of a much more mature market – particularly given that publications like Forbes seem hell bend on branding GlobalCoin as an alternative to Bitcoin. The very headline of the article is “Facebook And WhatsApp Break Cover With Bitcoin Rival Plans”, it then goes on to reference the scheme as a rival to Bitcoin multiple times in the text.

Facebook is gearing up to launch a rival to bitcoin as soon as next year as it accelerates plans to diversify its revenue away from advertising
— Forbes (@Forbes) May 24, 2019

However, the two couldn’t really be any different. The truly inspiring and remarkable thing about Bitcoin is how difficult it is to stop someone using the network. Aside from physically restraining an individual, the is no way anyone can halt a value transfer. Users need to trust no single entity.

Whilst specific details of the launch of GlobalCoin are still shadowy at best, we can state with almost absolute clarity, if Zuckerberg needs to schmooze up to the US Treasury and the Bank of England to get an A-OK , there will be very little world-changing or disruptive about it. It therefore represents competition to the dollar, euro, or yen, rather than Bitcoin itself, which is potentially much more liberating and powerful.

In the following video, Bitcoin evangelist discusses the kind of private versions of digital assets that firms such as Facebook and JP Morgan have been exploring recently:
The social media executive’s stance could not be more different from that of crypto, and more specifically Bitcoin, uber-optimist Jack Dorsey. Dorsey is Zuckerberg’s equivalent at Twitter and nicely demonstrates how a CEO not hell-bent on world domination behaves.
He sees radical freedom-creating opportunity in Bitcoin so has decided to back companies developing on it, provide consistent price support with $10,000 monthly buys, and champions the network at every available opportunity. Every heard of TwitterCoin? No, neither have we. That’s because he doesn’t want his hands all over your wallet, as well as every detail of your personal life.
Whilst GlobalCoin poses little risk to Bitcoin itself, some from the crypto asset space are optimistic about how the news will impact the the purely decentralised asset. Spencer Bogart of Blockchain Capital recently speculated on the on boarding potential of such a scheme:
“It will be like being on the internet so people can spin-out and start owning bitcoin, Ethereum… Bitcoin has gone from zero users ten years ago to somewhere between 30 million to 100 million–the estimates are tough. And Facebook has billions of users.”
Related Reading: US Senate Mulls Regulatory Implications of Facebook’s Mysterious Crypto Project
Featured Image from Shutterstock.
The post No, Forbes, Facebook’s Newly Detailed Not-So-Crypto is No Rival for Bitcoin appeared first on NewsBTC.
Source: New

Nations Continue to De-Dollarise by Hoarding Gold: Is Stockpiling Bitcoin Next?

According to a report by the World Gold Council, central banks have been buying more gold this first quarter than they have in the previous six years. The efforts to diversify away from the US dollar are being led by China and Russia.
With a clear global appetite for store-of-value-type assets that are not connected to the dollar, the question remains, when will it emerge that banks are buying Bitcoin?
When Will Central Banks Stockpile Digital Gold, aka Bitcoin?
The World Gold Council estimates that gold held in reserves rose to 145.5 tons during the first quarter of 2019. This represents an impressive 68 percent increase from the figure reported for the previous year.
In the report, the council states that Russia continues to be the largest buyer of gold. The nation is known to be reducing its dependence on the US dollar by diversifying into other assets.
Bloomberg reports the World Gold Council’s head of market intelligence, Alistair Hewitt, to have stated:
“We’ve seen a continuation of the strong demand from central banks… We’re expecting another good year for central bank purchases, although I’ll be pleasantly surprised if they are to match the level seen in 2018.”
Along with China and Russia, the nations stepping up their gold hoarding include Kazakhstan, Turkey, Ecuador, Qatar, and Colombia. The report notes that a common theme amongst these nations is the fact that they all want to reduce their dependence on the US dollar.
Clearly, there is great hunger around the world for an asset that can be used effectively as a hedge against the dollar. This begs the immediate question: When will it emerge that central banks have been hoarding Bitcoin.
RT’s Max Keiser highlighted this via Twitter earlier today:

Central Banks will dive into #Bitcoin in size once Gold gets near impossible to source after it crosses $10,000.
— Max Keiser, tweet poet. (@maxkeiser) May 3, 2019

He speculates that the scarcity of gold will eventually force banks to explore alternate options such as Bitcoin to hedge themselves against the dollar.
Naturally, it seems unlikely that a nation with such designs on crypto assets would openly announce that they are stockpiling Bitcoin. If it emerges that a country has been buying the asset, a global buying frenzy, led by central banks would likely drive the Bitcoin price to unthinkable levels extremely quickly. If a nation is trying to get ahead by secretly investing, this is the last thing that it would want.
There has already been speculation that Russia is toying with the idea of stockpiling Bitcoin. In January this year, a Russian professor with links to the Kremlin said Bitcoin is the only way of bypassing US and NATO sanctions. He stated that Russian elites were prepared to buy into Bitcoin if the situation demanded it. However, there is little to suggest that there is any truth to these statements yet.
That said, North Korea has been linked with Bitcoin and other crypto use to evade economic sanctions placed on them by western nations. The rogue state is believed to be operating a team of hackers that is responsible for various cyber crime around the world that rely on crypto in some shape or form.
Although neatly illustrating some of Bitcoin’s potential utility for nation states, North Korea’s experiments in alternate currencies hardly serves as a driver for higher prices in the way that the world learning that Russia or China was hoarding the crypto asset in favour of US dollars would. With hunger growing for non-correlated assets, it seems a matter of when rather than if this will happen too.
Related Reading: The Case for Bitcoin as a Store-of-Value, Can it Really Rival Gold Going Forward?
Featured Image from Shutterstock.
The post Nations Continue to De-Dollarise by Hoarding Gold: Is Stockpiling Bitcoin Next? appeared first on NewsBTC.
Source: New

Institutional Love For Crypto Confirms Bitcoin Isn’t a Bubble

Bitcoin (BTC) is the 21st century’s version of tulip mania. That’s the argument that cryptocurrency cynics have lobbed at BTC since its earliest years in circulation. But, more and more evidence is showing that crypto assets, especially Bitcoin, are much more than a flash in the pan, and will instead be a revolutionary technology that will change paradigms. Let’s look at the argument for this thesis.
Digital Tulips? 
Due to their lack of viable uses, the tulip bubble of years gone by (1636 and 1637) has long been touted as the epitome of speculative phenomena. For those unaware, during the years 1636 and 1637, the value of tulip bulbs, which, of course, have no use in consumers’ day-to-day lives, exploded, rising parabolically from zilch to sky-high levels. Sound familiar?
Yes, but not really. While Bitcoin has seen a handful of parabolic rallies in its decade-long history, the most recent event of this kind, which took place in 2016 and 2017, saw BTC hit the mainstream for the first time. But many traditionalists didn’t take nicely to the cryptocurrency’s run from obscurity to world-renowned fame, quickly jumping on anti-Bitcoin bandwagons, touting the “modern tulip bulb” argument.
But this may be far from the case. As Twitter commentator Moon Capital recently noted, if BTC continues to see a bullish reversal, skeptics will be unable to claim Bitcoin is following directly in the footsteps of assets that surged, collapsed, and then dwindled to zero with time.

Tulip bubble starting to look a little strange #bitcoin
— Moon Capital [] (@Moon__Rekt) April 25, 2019

So yes, Bitcoin’s chart structure is starting to differentiate itself from every bubble ever. But what else is going for the argument that BTC isn’t some worthless asset? Well, on-chain statistics, that’s what.
As Interchange co-founder Dan Held recently pointed out, Bitcoin might just be a financial experiment, but it’s been widely successful in its role as a digital asset. As Held notes, since BTC came into being one fateful decade ago, the protocol has processed 400 million decentralized, censorship-resistant, international, and low-fee transactions.
What’s more, Bitcoin has a hefty $94 billion market capitalization, making it the world’s 12th largest base money, according to a chart from Crypto Voices. This simple, jaw-dropping fact is only made even more impressive that the cryptocurrency was entirely issued by a distributed network built on top of the values of game theory, and confined by monetary rules chosen and imposed by the pseudonymous Satoshi Nakamoto. Not so tulip-sounding anymore, right?

The "experiment" Bitcoin has been wildly successful since its inception 10 years ago:
– 400M total transactions – $94B market cap
Now its on the verge of being adopted by institutional traders.
How could you not be bullish on Bitcoin?!
— Dan Hedl (@danheld) April 28, 2019

Bitcoin’s monumental growth hasn’t gone unnoticed by institutions and corporations.
Fidelity Investments, one of America’s most well-known finance giants, recently launched its own Bitcoin custodian service, thus opening the door to the cryptocurrency landscape for its 20,000 institutional clients.
The Intercontinental Exchange, through Bakkt as its medium, and the Nasdaq are both expected to launch Bitcoin futures contracts, which could begin to encroach on the hegemony the CME has in that arena. And a number of retail brokerages, including both E*Trade (five million clients) and TD Ameritrade (11 million clients), are expected to soon offer spot BTC trading on their respective platforms, potentially catalyzing widespread adoption.
And while some argue that this is only a bid to capitalize on a trend, this interest in Bitcoin from some of the biggest names in finance arguably confirms that BTC is more than a passing fad.
What’s Next For Bitcoin? 
But that begs the question — if Bitcoin isn’t the latest speculative asset in the history of such assets, what is in its future?
While BTC and the technologies derived from it are seeing use outside of being a day-to-day currency, some are sure that Bitcoin will inevitably become a ubiquitous form of money that is a unit of account, a medium of exchange, and arguably most importantly, a store of value. As Brendan Bernstein, the founder of Tetras Capital explains, the “perfect storm” for the widespread adoption of Bitcoin as money is rapidly approaching.
Related Reading: Bitcoin Could Swell To $1.5 Million If It Absorbs All Fiat and Gold Holdings
Bernstein centered his thoughts around the fact that with the growth in popularity of certain monetary policies, namely modern monetary theory (MMT) and quantitative easing (QE), and certain macroeconomic factors, hyperinflation in western societies could soon become the norm. This, of course, would give consumers incentive to rush to safe havens, like gold, or even Bitcoin, as it is bred for today’s digital world.
If the macroeconomy and the geopolitical climate somehow stabilize through some miracle, some are sure that BTC will still find value as programmable money, and that blockchain will see adoption in commerce, healthcare, and trade.
Featured Image from Shutterstock
The post Institutional Love For Crypto Confirms Bitcoin Isn’t a Bubble appeared first on NewsBTC.
Source: New

Analysts Agree That Long-term Outlook For Crypto Is Optimistic, But at What Cost?

Travis Kling, Chief Investment Officer and founder of Ikigai Asset Management, has called for harmony within the crypto community. His tweet talks about the inevitable “explosive growth” of crypto but warns against petty squabbling, which he sees as harmful to the long-term viability of cryptocurrency.

We all need to realize the explosive growth that is imminent for crypto.
We must realize how petty, immature & unfruitful some of our words/actions can be. They are to the detriment of the long term health of our ecosystem.
NOW is our collective time to shine.Lets act like it.
— Travis Kling (@Travis_Kling) April 22, 2019

The Short-term Outlook For Crypto
Following on from a buoyant start to April, the anticipation of an incoming bull run is high. And based on Bitcoin’s performance, which has seen a 35% increase in price since the start of the month, the expectancy is justified.
However, opinion is split, on whether the worst is behind us. At one extreme, the likes of Willy Woo and David Puell are confident the bottom is in. With Willy Woo 95% sure that Bitcoin has bottomed.

Whereas other analysts, including Tone Vays, remain bearish. Speaking on a live stream debate, Vays critiqued the technical analysis conclusions of other commentators, and also made relevant points on mining capitulation, due to China’s proposal to ban crypto mining, as a factor to bearish price in the short-term. At 3:41:40, Vays justifies his position:
“the bears, like Tyler and myself, are simply following the trend. And the overall trend is still down. For me to become a bull, I need to see that fall to $4,000, and then reverse and prove to me that it’s going to make a higher low. And then prove to me that it’s going to make a higher high. So until that happens, I can’t be a bull.”
The Long-term Outlook For Crypto
While the short-term direction of Bitcoin divides opinion, there is greater consensus on a bullish outlook in the longer term. Which some predict will dwarf 2017’s all-time-highs.
Tom Shaughnessy, the founder of Delphi Digital, a digital asset research company, predicts the next bull run will exceed anything seen before. In a tweet, he expands on this by saying the previous bull run was mostly down to speculation, which was likely why price action was not sustained. But the next bull run will be driven by the application of the technology.

The last $BTC bull run was driven by hype around magical internet money
The next one will be driven by an actual macro based understanding of the benefits of a non-sovereign, capped, digital SoV bolstered by lightning
The next bull run will be bigger
— Tom Shaughnessy (@Shaughnessy119) April 17, 2019

The Crypto Collective
And while most are optimistic in the long-term, supporting Kling’s bullish sentiment. His call for unity is perhaps asking too much. After all, there can be no forward movement without discussion of the issues. Which can lead to toxic behavior.
However, as adults, we must accept that this is part and parcel of the internet age. And acknowledge that we can only control our own behavior.
This is especially pertinent with regards to the Bitcoin S.V fiasco. Which saw a torrent of negativity and abuse directed at Craig Wright. And while Wright’s personal conduct was questionable, is it right that others respond to him in kind? Especially at the expense of infringing decentralization.
Taking all of this into account, petty squabbles are an inevitable part of crypto, and if anything, as demonstrated by Bitcoin S.V’s case, support the long-term viability of the ecosystem.
The post Analysts Agree That Long-term Outlook For Crypto Is Optimistic, But at What Cost? appeared first on NewsBTC.
Source: New

Prominent Analysts Divided Over Bitcoin Bottom: Let’s Look At The Two Sides

I’m sure you’ve heard the popular adage: “great minds think alike.” While this seems true in scientific contexts, in the case of finance, even cryptocurrencies, this is far from the case. Some of the greatest minds in Bitcoin (BTC) analysis recently convened in a Skype room to discuss if the bottom is truly in.
Over eight attended the six-hour call, which was live-streamed to Tone Vays’ Youtube channel, and there were two clear narratives: on-chain fundamentals show that Bitcoin found a bottom at $3,150, and historical technicals show that BTC will establish lower lows in this cycle. Let’s take a closer look at their theories.

Is the bottom in, final figures…
% probability Bitcoin has bottomed:
BULLS@MustStopMurad 75% @kenoshaking 80%@woonomic 95%
BEARS@ToneVays 40%@venzen 39%@LucidInvestment 20%
— Willy Woo (@woonomic) April 20, 2019

The Fundamental Bitcoin Bulls
First, the bulls, who primarily based their conjecture off data from the Bitcoin Blockchain, rather than technicals on a chart. This side consisted of Adaptive Capital’s Murad Mahmudov (75% sure bottom is in) and David Puell (80%), independent researcher Willy Woo (95%), and Tuur Demeester (80%), who recently a report claiming that BTC is looking amazing fundamentally.
Related Reading: Whales Are Scooping Up Bitcoin As Crypto Seemingly Bottoms, Report Shows
As explained in a recent tweetstorm, blockchain models, which included fees, Network Value to Transactions (NVT), among other factors, are leaning bullish across the board.
Balanced Price from Adaptive Capital’s Puell, for instance, resembled the signal’s action as the 2015 – 2016 bear market came to a close. NVT Signal’s recent action resembles that seen in early-2015, which came after BTC established a long-term floor.
Woo’s very own Cumulative Value Days Destroyed indicator, which has historically caught bottoms to near a tee, showed that Bitcoin recently broke out of an upper accumulation band following a strong, convincing bounce off the lower band. And three key iterations of NVT have begun to converge, looking much like they did at 2015’s bottom.

New updates to the Woobull pricing model chart.
— Willy Woo (@woonomic) April 9, 2019

Demeester’s assertions were slightly different. He did acknowledge the importance of the aforementioned factors, but instead looked to the fact that the Bitcoin Unrealized Profit/Loss (BUPL) indicator has entered a stage of “hope,” whales are accumulating, and market volatility is low to come to the conclusion that BTC is likely ready to soon enter a bullish state.
The Technical Bitcoin Bears
Second, but equally as important, the bears. This subset of traders claimed that per longer-term technical trends, price action seen in historical bubbles, Tyler Jenks/Lucid Investments’ Hyperwave Theory, and some industry developments, BTC could easily fall further than $3,000. This side consisted of former institutional investor Tone Vays (40% sure bottom is in), Venzen Khaosan (39%), Tyler Jenks (20%), and Leah Wald.
The group’s primary point was that if Jenks’ proprietary Hyperwave form of analysis continues to play out, Bitcoin’s drawdown to $3,150 was only part of the leg down, not it in its entirety.
For those who missed the memo, a Hyperwave is a parabolic trend and a massive drawdown pattern that asset classes/markets with the potential to catalyze large macroeconomic shifts tend to experience at one point or another. Jenks has applied Hyperwave to the Dotcom boom and bust, the growth of Japan’s economy in the 70s and 80s, and, of course, cryptocurrencies.

If Bitcoin finishes its ongoing Hyperwave, which predicted the rally to $20,000 and subsequent drawdown, BTC could fall to as low as the $1,000s. In fact, Lead Wald, a subscriber/student of Jenks’ theories, and Jenks himself recently bet analyst Filb Filb that Bitcoin will hit $1,500 before $6,500.
Venzen agreed but used his own analysis to back his claim that a move to $1,500 isn’t off the table. He claimed that industry fundamentals, like Bakkt or Fidelity running to set up a crypto shop, won’t drive prices, adding that what he calls a “Pi Cycle” predicts BTC will capitulate to $1,000 to $1,500 before rallying into the 2020 halving.
Only time will tell which faction will be right in their analysis.
Featured Image from Shutterstock
The post Prominent Analysts Divided Over Bitcoin Bottom: Let’s Look At The Two Sides appeared first on NewsBTC.
Source: New

Will McAfee Disclose Nakamoto’s Identity? Crypto Will Suffer If He Did

In a series of intriguing tweets, John McAfee dropped a bombshell yesterday by claiming knowledge of Satoshi Nakamoto’s identity. McAfee intends to end speculation on Nakamoto’s identity once and for all, which he feels is necessary for the crypto space to move forward. He goes on to say he will divulge information until Nakamoto comes forward. Failing that, McAfee himself will disclose Nakamoto’s identity.

The "Who is Satoshi?" Mystery must end! First: It is NOT the CIA nor any agency of any world government. It IS a collection of people, but the white paper was written by one man, who currentky resides in the US. If he does not come forward these narrowings will continue.
— John McAfee (@officialmcafee) April 17, 2019

Satoshi Nakamoto
John McAfee’s outing of Satoshi Nakamoto has reignited speculation on crypto’s greatest mystery. At present, the only widely known report pertains to him being an unknown person, or group, who developed Bitcoin. According to a profile on P2P Foundation, which is an organization studying peer-to-peer technology, Nakamoto claims to be a Japanese resident born on the 5th April 1975.
However, given his perfect English, with the use of colloquialisms, some speculate he is not Japanese. Or in the very least, a member of his team originates from the British Commonwealth.
Following the timeline of his last known actions, he continued to contribute to the coding of Bitcoin until mid-2010. It was then Gavin Andresen received control of the source code repository and network alert key. After that, Nakamoto’s involvement with Bitcoin ended.
The mysterious circumstances of his sudden disappearance have only added to Bitcoin’s allegorical notoriety. But, this hasn’t stopped speculation on several names including Nick Szabo, Craig Wright, Dorian Nakamoto, and Hal Finney. With some even claiming Bitcoin is a US Intelligence project.
John McAfee
According to McAfee, the secret of who Nakamoto is perpetuates a pointless exercise. To which, the entire crypto industry would benefit from knowing his identity. In one of his tweets, he said:
“I protected the identity of Satoshi. It’s time, though, that this be put to bed. Imposters claim to be him, we are spending time and energy in search of him – It’s a waste. Every day I will narrow down the identity of Satoshi until he reveals himself, or I reveal him.”
However, given McAfee’s past form for sensationalism, it’s fair to question whether he knows Nakamoto’s true identity. But, at the same time, McAfee’s cypherpunk credentials do stack up, giving plausibility to his claims. Especially so, considering his active involvement in the industry during Bitcoin’s formative years.
Nakamoto Wants Anonymity
Whether McAfee will out Nakamoto, or not, this much is clear, Nakamoto wishes to remain anonymous. According to Alex Lielacher, his motives for anonymity are based on safeguarding the Bitcoin project and allowing it to operate on its own merit. He wrote:
“it is arguable that he remained anonymous in order to avoid the possibility of him becoming the de facto leader of the system and, thereby, having people place their trust in him as the creator as opposed to the ledger. Moreover, any announcement by Satoshi would likely be regarded as investment advice by those who held the digital currency and may have resulted in price movements.”

What if Satoshi Nakamoto or the group wanted to remain anonymous for a good cause…???
— GCC JOEL (@kiwimalayale) April 17, 2019

Image courtesy of CoinSutra.
The post Will McAfee Disclose Nakamoto’s Identity? Crypto Will Suffer If He Did appeared first on NewsBTC.
Source: New

Was it The ‘Wright’ Decision? Crypto Community and Markets React to BSV Delisting

When Bitcoin SV forked from Bitcoin Cash in November 2018 the resultant hash war was blamed by many as the catalyst for the final dump of crypto markets down to their lowest levels for 18 months. Five months later Bitcoin SV is still causing chaos for the community and crypto markets.
Did Binance Make The Right Call?
The world’s largest cryptocurrency exchange by adjusted volume delisted the controversial Bitcoin SV yesterday. The imbroglio all stems from BSV creator Craig Wright’s repeated threats to organizations and media outlets who refute his claims to be Satoshi Nakamoto.
The call to digital arms by Binance boss Changpeng Zhao encouraged others exchanges to do the same and some already have. Binance claims that BSV no longer meets its standards but the real reason goes much deeper than that. Many, such as Shapeshift, have already followed suit as has;

Read more on our decision to discontinue support for #BSV by May 15th in our latest blog post:
— Blockchain (@blockchain) April 15, 2019

The crypto community, which uses Twitter as a primary means of communication, is a largely polarized group vehemently protective of their own favorites in the industry. The reaction, as expected, has been quite vocal. Major exchanges charge a fair whack to list a new crypto asset and as economist and crypto analyst Alex Krüger pointed out;
“Once every exchange is done delisting BSV, why stop there? Why don’t exchanges delist all sh*tcoins? Ah, that’s right, the more coins exchanges have, the more money they make.”
Others acknowledged the potential of insider trading if people know about CZ’s decision before he made it. It appears BSV was being shorted before the announcement since it slid 16% in during the previous week when markets were generally performing well.
Not all posts were supportive of the decision and saw it as detrimental for the industry in general;

Am I the only one who thinks Binance just shot themselves in the foot?
How do they go about discussing anything serious with a regulator after delisting a crypto because someone was mean to them?
— iang (@iang_fc) April 15, 2019

Cardano’s Charles Hoskinson did stick up for Binance and it is clear that Wright has wound up a lot of people in the industry;

I'm really proud of CZ and binance. They stood up for the entire commun ity against bullying and fraud. I hope more exchanges follow and we can end this dark chapter in Crypto's history
— Charles Hoskinson (@IOHK_Charles) April 15, 2019

He followed up with “The precedent is don’t claim you’re Satoshi, patent everything that you can get your hands on, insult the people of Rwanda and then sue people who deny your claims” before adding “The investors should solely be angry at Craig for his conduct. He does not own our space. He is not entitled to behave like a petulant child and sue people who very rightly ask for evidence of his claims. If you invested in this man, then what do you expect?”
Crypto Markets React
A BSV dump was expected and it has done just that shedding 25% on the day down to $54. The majority of that outflow has been channeled into the coin that spawned it, Bitcoin Cash which spiked 12% at the time to $332. Markets in general are down today with Bitcoin falling back to just above $5,000 and $6 billion leaving the space overnight.
The bottom line, as this incident has highlighted, is that Binance is a profit driven corporation that is highly centralized and has an overreaching level of control over the wider industry. While all intentions may have been righteous, too much leverage by any one entity is the antithesis of what decentralized peer to peer currencies are all about.
Image from Shutterstock
The post Was it The ‘Wright’ Decision? Crypto Community and Markets React to BSV Delisting appeared first on NewsBTC.
Source: New

FUD Storm: Mainstream Media Back Bashing Bitcoin the Moment Markets Move

It only took a day for the Bitcoin bashers to emerge from their caves and start spreading fear, uncertainty and doubt again. After four months of inactivity crypto markets came alive again this week and headed upwards to reach new 2019 highs. This was enough it seems for the mainstream media dogs to start spewing their vitriol on crypto assets once again.
FUD Means They’re Paying Attention
When markets are on the floor and very little is going on, mainstream media tends to stay quiet. The fact that the ridiculous headlines are emerging again means that they’re paying attention at least and crypto is back in people’s minds. CNBC, which has been previously noted for its completely inaccurate predictions on market movements, was back with a headline claiming that cryptocurrencies will all collapse because one fund manager thinks so. According to Peter Mallouk, president of wealth management firm Creative Planning;
“What we’re going to see, most likely, is, we’re going to see cryptocurrencies collapse … there’s no way that even a fraction of them can survive,” before adding that buying crypto “you get no income. It’s not a real investment. It’s speculation.”
What he fails to acknowledge is that all investments are speculative; when you buy you are speculating that the price will be higher when you sell, whether it be a property, stock, or commodity. Crypto is no different and Bitcoin, until it is used daily for its intended purpose as decentralized money, will remain speculative. Those of a similar ilk such as CNBC’s Jim Cramer called Bitcoin monopoly money back in 2017.
As NewsBTC’s Joseph Young pointed out, the scene has been reminiscent of the headlines spouted during the 2017 bull run.

Even the headlines are back to 2017 crypto bull market
— Joseph Young (@iamjosephyoung) April 3, 2019

Fake Money, Fraud, Scam … Heard it All Before
Entertainment website Gizmodo went one better with a vitriolic rant the moment after Bitcoin broke resistance;
“To be clear, Bitcoin is absolutely worthless by any real measure. It’s fake money that’s about as practical to use in the real world as Monopoly bills … Bitcoin is little more than a speculator’s death cult at this point.”
The FUD did not stop there, even Bloomberg, which has been fairly balanced when it comes to the industry, jumped on the bandwagon of loathing as FUD headlines get traffic. Mocking the euphoria that many in the crypto world have been expressing recently, the article said “But have no fear of missing out: Whatever the explanation, there’s no good reason to turn bullish on crypto.”

Their dismissal is our opportunity$BTC
— Anil Lulla (@anildelphi) April 3, 2019

It added that there has been no good news for crypto lately and most of it has been bad, highlighting the recent exchange hacks. One wonders if Bloomberg would take the same stance on fiat currencies when major banks get caught laundering money.
The piece added that Bitcoin was a tiny market compared to forex with trading volumes of $5 trillion per day. Very true, so this alone should serve as a testament to the potential of digital currencies which the mainstream media still appears to be very afraid of.
Image from Shutterstock
The post FUD Storm: Mainstream Media Back Bashing Bitcoin the Moment Markets Move appeared first on NewsBTC.
Source: New

Can the Bitcoin Lightning Network Revolutionise Online Publishing?

Although the Lightning Network is most often touted as a way to reduce transaction burden on the main Bitcoin blockchain, various other use cases are becoming apparent as more people experiment with it.
One of the most potentially revolutionary is the ability to make incredibly small payments for online content. This could have a massive impact on the way content creators monetise their work and, if the largest names in publishing get on board, could be massive for Bitcoin adoption generally.
Is Lightning Network Poised to Strike Online Publishing?
It is no secret that the internet has had a detrimental effect on the quality of journalism. Where advertising revenue is king, sensationalism pays the bills. Some once-highly-respected publications have tried to avoid the temptation to rely too heavily on such “click-bait” tactics by using subscription services.
Lightning Network could provide a massive opportunity for online publishing.
However, the problem with these membership schemes is that many readers don’t want to pay for a whole month’s access to a publication just to read a single article. This poses an interesting opportunity for Bitcoin’s second layer payments network, Lightning Network.
Since Lightning payments are cheap and fast, they could easily be used to provide pay-per-view services at publications both large and small – a use case highlighted in a post last September on crypto portfolio application Crypto Millionaire’s blog.
The author of the piece, titled “I sent letters to top newspapers asking for Lightning Network micropayments. Here are their responses so far”, claims to have done just that. In a letter addressed to “Wall Street Journal, Financial Times, New York Times, and many other”, they outline the above argument that many people wanting to read articles behind pay walls would be happy to pay for them. However, the current subscription model does not cater to the occasional reader:
“I’m not going to pay $15 to $30 dollars a month for a subscription… I would be way more likely to pay a few cents for a particular article I’m interested in.”

I sent letters to top newspapers asking for Lightning Network micropayments. Here are their responses so far: … CoinGatecom #Bitcoin #Crypto #Ethereum #Litecoin #Ripple #EOS
— Crypto Millionaire App (@eagletwitt3r) April 3, 2019

The solution proposed is for publications to implement Lightning Network micro-payments for content. The author of the letter argues that publications implementing LN payments for content would:
“… get a lot more revenue, a lot of hype from the crypto and millennial communities and, most importantly, look cool and like keeping up with the times.”
Old subscription models could even be retained for those wishing to pay the full monthly fee and enjoy unlimited content. Meanwhile, a lot more casual readers would be contributing to the publication’s overall profitability. This increased revenue could then be spent on quality investigative journalism, rather than perpetually budget-cutting to keep costs down and relying more heavily on click-bait-style content.
In last year’s piece, a few of the publications responded. The Washington and Wall Street Journal stated that the suggestion was being forwarded to the relevant departments. Meanwhile, the Financial Times were rather more positive:
“You have a good point in suggesting Lightning Network micro-payments in which customers can use if they want to read an interesting article on We take onboard your suggestion and hopefully one of the things that our marketing teams would consider.”
Bitcoin Micro-Payments at Major Publications Could Seriously Drive Adoption
It’s been six months since the publications were contacted and unfortunately there is still no sign of Bitcoin Lightning Network micro-payments at any major news publication. This feels like the beginnings of a missed opportunity for both the publications and Bitcoin.
Although initial uptake might be limited, if visitors to a pay-walled article realised that there was a way to pay for a single article, many of the keenest readers would likely choose to explore it. Not only could such a payment model serve to increase the quality of journalism across the board but it could be a serious boon for Bitcoin adoption too.
That said, it is still early days for Lightning Network. The size of the network and the value it’s capable of transferring have been growing at a rapid pace, however, it still might be moving a little too quickly to have the Wall Street Journal announce Lightning micro-payments right now. The network is still very much in its infancy. That said, when the network has matured, integrating Bitcoin micro-payments with leading publications is surely the perfect way to both reinvigorate a struggling industry and promote BTC adoption.
Related Reading: Jack Dorsey Tweets Support for Lightning Network Use on Twitter
Featured Image from Shutterstock.
The post Can the Bitcoin Lightning Network Revolutionise Online Publishing? appeared first on NewsBTC.
Source: New

Tezos (XTZ) Earns $43 Million Following Coinbase Announcement, Can It Rally?

Tezos proof-of-stake project’s market capitalization was up 8% since the session’s open this Friday.
As of 1109 UTC, the Tezos blockchain attracted $43 million via the sale of its native token XTZ. The coin’s valuation against the US dollar surged from 0.781 to 0.848, its best since November 20 last year. The market volume, in the past 24 hours, was above $6.78 million, with BitMax and hosting the maximum trades.
Tezos Price Chart | Source: CMC
According to CoinMarketCap volume indicator, XTZ’s upside benefited from bitcoin’s overlong stability near the $4,000-region – the XTZ/BTC instrument made circa 39% of the total trading volume. The coin also saw an attractive influx from the mainstream currencies, such as the dollar and euro, posting a combined 16% of the total trading activity.
Coinbase Staking Service
XTZ’s bullish movements came in the wake of Coinbase Custody, a new staking service launched by Coinbase. The US-based cryptocurrency exchange will start its staking services with Tezos’s proof-of-stake service. It would allow investors to delegate their XTZ token holdings in running the Tezos blockchain. Thus, by supporting a Tezos node, for validating transactions and adding confirmed blocks to the Tezos ledger, investors would be able to earn a share in the reward output.
Coinbase claimed that investors could expect an annual return of circa 6.6%, which is more than what a 30-year US Treasury bond returns.
“The launch of Tezos staking through Coinbase Custody serves an acute need that existed up until now: a way for institutional participants who rely on a secure, offline custodian to take an active role in the network,” offered Kathleen Breitman, co-founder of Tezos. “Achieving our mission of creating a ‘digital commonwealth’ means facilitating participation for all, and that includes the institutional customers that Coinbase Custody brings to space.”
The announcement allowed XTZ investors to alter their intraday perspectives to bullish. Coinbase Custody promised that more institutional investors would purchase XTZ tokens to participate in its blockchain passively. It could overall lead to a growth in demand against the mathematically-governed supply of XTZ tokens.
Inverse Head and Shoulder Forming
XTZ Price 1D Chart | Source:
The strong fundamentals hint that investors would feel safer to purchase XTZ tokens on fresher highs. Following the March 27 breakout session, the XTZ/USD rate confirmed a bull flag formation, and the market is now pursuing its third consecutive buying session. A broader look tells that the pair is targetting 1.001 as its next bull target should the uptrend continue. The level had served as an active resistance area during the mid-November crash last year.

Many will soon grasp the enormity of the $xtz Coinbase news. It’s access to arguably the world’s most important exchange (will have to trade #tezos soon too) and insured custody of coins for enterprise-scale clients. It will force ALL other major exchanges to support Tezos.
— One Hill Ventures (@OneHillVentures) March 29, 2019

Looking to the south, traders looking to exit their long positions on a minor profit could also cause a temporary bearish swing towards 0.599. The level earlier was resistance to XTZ’s sideways trend, which makes it an ideal short target for traders, purely from the psychological point of view.
The post Tezos (XTZ) Earns $43 Million Following Coinbase Announcement, Can It Rally? appeared first on NewsBTC.
Source: New

Facebook Stablecoin Wants to Replace US Dollar Not Bitcoin: Kik Founder

Facebook could be on the path to replace the US Dollar with its own crypto asset as a global currency, claims Ted Livingston.
The founder and chief executive of the Kik messaging app projected the upcoming stablecoin project as a WeChat aspirant. The 32 years old Canadian entrepreneur wrote that, like the Chinese messenger app, Facebook was attempting to move the US Dollar into a private online payment system. Such a system would not only make it easier for people to transfer money cheaply. But, it would give them reasons to keep their money inside the messenger system. He wrote:
“WeChat allowed people to take their money out at any time, but they also added more and more reasons for people to keep their money inside: paying hydro bills, buying food, booking vacations, and more. Soon no one was taking their money out.”
Remittance and Payments
Livingston derived three possible steps that Facebook could execute in the coming days. First, the company could expand into a $689 billion remittance market by creating an interoperable payment interface between Messenger, Instagram, and WhatsApp. Second, it could integrate blockchain to roll out a global financial system such as that of bitcoin without needing to hire costly banking service. And third, it could enable users to keep and spend their money inside the platform for making day-to-day payments.

Facebook earlier shared its plans to start its messenger payment services in India via WhatsApp. The densely populated country, like China, is host to large remittance and payment operations. In terms of remittance only, India received $80 billion in 2018, surpassing China’s $67 billion and Mexico and the Philippines’ $34 billion each.
“As India gains momentum, Facebook could look to expand. First into other countries where remittances are popular. Perhaps the Philippines and Egypt, followed by Mexico and Vietnam,” Livingston predicted.

Everyone should read this. @ted_livingston has been ahead of many trends in social media and messaging over the last decade.
Bold thoughts here.
— Pomp (@APompliano) March 20, 2019

No Bitcoin-Facebook Competition
Facebook’s entry into remittance would come at a time when bitcoin would have lost its sheen as a remittance asset. Though the leading cryptocurrency was a flagbearer of decentralized payment solutions, it didn’t turn up a good use case for remittance due to price volatility. For instance, if Point A sends $100, then Point B should receive $100. Bitcoin cannot guarantee such stability which is why it would be less popular as a remittance asset.
Bitcoin Volatility Time Series Charts | Source: Buy Bitcoin Worldwide
So far, media reports have pitted Facebook’s stablecoin project and bitcoin against each other for the very same reason: remittance. However, Bitcoin remained a multifaceted technology, which could function as money and commodity – all at the same time. Livingston said that Facebook stablecoin was more threatening to the dollar than it was for a decentralized asset like bitcoin, adding:
“Not that long ago the world’s reserve currency was gold, where the value of a dollar was pegged to the value of gold. But then one day the US decided to unpeg the dollar from gold, paving the way for the dollar to replace gold as the world’s reserve currency. So here is my question: what will stop Facebook from doing the same?”
Featured Image via Shutterstock
The post Facebook Stablecoin Wants to Replace US Dollar Not Bitcoin: Kik Founder appeared first on NewsBTC.
Source: New

Vitalik Buterin: “Inevitable” That Ethereum Loses Some of its Lead in Crypto

Ethereum co-founder Vitalik Buterin admitted that Ethereum is losing its lead in the cryptocurrency market.
Speaking on the Unchained podcast, Buterin said that losing a chunk of market share was “inevitable and unavoidable” for both the crypto projects. The 25-year old developer referred to new blockchain projects that were taking different approaches to reach the same goal as that of Ethereum, thereby taking away some part of its community. He told host Laura Shin that:
“It [Ethereum] has lost some of its lead to some extent. It’s kind of inevitable and unavoidable. Ethereum really was the first general purpose smart contract thing. Bitcoin was, for example, the first cryptocurrency and originally, it had 100 percent of the market share. Then, it went to 90 and now it’s at 55.”
How is Crypto Market Share Calculated?
Market share refers to the percentage of one asset’s market capitalization against the total valuation of the asset’s industry. The first cryptocurrency bitcoin gained a natural lead over other crypto projects. It continues to hold the first rank of biggest cryptocurrency by market cap. Nevertheless, the rise of competing projects, starting with Litecoin, Dash, and followed by Dogecoin, XRP, Ethereum, Bitcoin Cash, amongst many others kept sneaking away little portions off bitcoin’s once-100% market share.

.@laurashin asks @VitalikButerin, "Would you be upset if another blockchain took the lead [ahead of ethereum]?" Buterin jokingly responded, "It depends which blockchain … If #TRON takes over ethereum, I'll have lost a certain amount of hope for humanity, not nearly all."
— Christine Kim (@christine_dkim) March 21, 2019

However, losing market share does not mean that bitcoin is shrinking. The cryptocurrency market capitalization, on a whole, was just $1.59 billion on April 23, 2013. And now, its valuation is well above $141 billion. Similarly, Bitcoin’s market capitalization on April 28, 2013, was $1.50 billion.
And now, it has surged to $71.95 billion. Of course, bitcoin’s market share is now 48-percent less than what it used to be in 2013. But it does not mean its individual valuation has gone down. As a standalone project, bitcoin is ballooning as it was all those years.
Is Bitcoin Losing Market Lead?
From an investor’s point of view, the market now has more crypto projects than ever. Traders have more options to spread their portfolio and distribute their risks across multiple crypto-assets. It might have to do with an asset’s long-term potential, but it can also be about hedging near-term – to make profits from intraday price volatility.
But the crypto market is not just a few traders anymore. According to a study published by the University of Cambridge last December, the number of cryptocurrency users almost doubled in the first three fiscal quarters of 2018. Excerpts from the report:

“Combining public data and survey findings, we estimate that the total number of user accounts at service providers amounts to at least 139 million in late 2018. Using a combination of verified user data and the average share of ID-verified accounts described above, we also estimate there are currently at least 35 million ID-verified users globally.”
Source: University of Cambridge
An increase in user-base means that more fiat assets flew into the crypto market, benefitting bitcoin as well as rest of the cryptocurrency market. The only difference remained that investors now had more assets to invest other than bitcoin, which is why the leading crypto asset lost some part of its market share. Again, it doesn’t mean that it lost the lead.

Buterin rightly said that it was a win-win situation for everybody and no one blockchain plan was competing with the other.
“I want to see an environment where different approaches to things can thrive and prosper. Ethereum can win and other projects that do interesting things can win too.”
[Disclaimer: The author is holding long positions in Bitcoin and Ethereum markets.]
The post Vitalik Buterin: “Inevitable” That Ethereum Loses Some of its Lead in Crypto appeared first on NewsBTC.
Source: New

Wells Fargo, Warren Buffett’s Investment, Paid 20% of Bitcoin Market Cap in Fines

In his recent interview with CNBC, America’s most successful capitalist Warren Buffett reiterated his negative stance on bitcoin.
The legendary investor told Becky Quick that bitcoin was a delusional asset which “attracts charlatans,” adding:
“If you do something phony by going out and selling yo-yos or something, there’s no money in it — but when you get into Wall Street, there’s huge money.”
The comments didn’t surprise. Buffett has already made a name of himself for being a staunch bitcoin critic. Last year, at the Woodstock of Capitalism, Buffett and his sidekick Charles Munger gathered to talk investing and ended up providing one of the most reference quotes on bitcoin. Buffett warned that cryptocurrencies like bitcoin would come to a bad end, while Munger called them a “dementia.”

However, this time, Buffett, in particular, tried to kick the bitcoin fans below their belts, by calling them frauds. It was certainly not going to go well among the white suits who primarily invested in bitcoin. Barry Silbert, Founder, and CEO of Digital Currency Group, for instance, took potshots at Buffett for investing in a firm named in multi-billion dollar frauds.
“Wells Fargo, a Buffett investment, has been fined 93 times for fraud and other abuses, for a total of $14.8 billion in fines since just 2000,” wrote Silbert. “I’ll take bitcoin’s “charlatans” over that any day.”

Wells Fargo, a Buffett investment, has been fined 93 times for fraud and other abuses, for a total of $14.8 billion in fines since just 2000
I'll take bitcoin's "charlatans" over that any day
— Barry Silbert (@barrysilbert) March 9, 2019

The fines make roughly 20-percent of the Bitcoin’s market capitalization.
A Hypocritic Capitalist
A brilliant investor that he had become, Warren Buffett cannot let go of his past full of shady insider deals. In retrospective, his father was a stock market broker and a congressman. These are the only people who could trade on insider information without having to deal with criminal charges. Buffett spent a gala time in his father’s office learning about stocks and eventually bought his first shares at the age of 11.
By the time Buffett had come of age, he was already investing in firms suspected in financial frauds. His tales about Goldman Sachs fraud and what he did to bail himself and his company, Berkshire Hathaway, out would take a separate article to explain. But the case explained what power and money – and a handful of good connections – can do. (To know further about it, I would recommend you read this article.)
Source: Reuters
And indeed, Buffett is 90% brilliant because of his political connections. The US government seeks his help while making their bailout decisions. And when an investor of such caliber gets firsthand information about the billions of dollars in bailout money coming to Bank of America and Wells Fargo before anyone else, then it is likely he buys millions of share in both the firms at a cheaper rate to sell them a few years later at a higher price.
Did Warren Buffett think about working with charlatans, then? No. It shows the hypocrisy.
Why Does Buffett Hate Bitcoin?
Warren Buffett is 88. One cannot expect him to understand the complex nature of cryptocurrencies, the Merkle trees, the proof-of-work, and whatnot. He is the same person who missed on Apple earnings as late as 2011. Instead, Berkshire invested $10 billion in IBM, thinking it was a superior firm at that time. As the world already knows, Buffet’s firm exited IBM on a substantial loss. At the same time, Apple’s stock value had quadrupled.
As a crypto believer, I do not expect him to understand bitcoin in his remaining life. For the very same reason, his opinions have to stop mattering to young investors, the denizens, who understands how the bitcoin’s underlying tech works. But to say they are charlatans brings me to quote British economist John Maynard Keynes:
“Capitalism is the astounding belief that the most wickedest of men will do the most wickedest of things for the greatest good of everyone.”
Like they will.
[Disclaimer: The opinions discussed in this article are of the author. NewsBTC does not claim any responsibility for errors/claims made in the article.]
The post Wells Fargo, Warren Buffett’s Investment, Paid 20% of Bitcoin Market Cap in Fines appeared first on NewsBTC.
Source: New

Dr Doom Does it Again: Bitcoin and Crypto People Are Arrogant Zealots and Fanatics

In another scathing attack on Bitcoin and cryptocurrencies Nouriel ‘Dr Doom’ Roubini has labeled individuals involved in crypto and blockchain as total zealots and fanatics about this new asset class.
The Mother and Father of All Bubbles
In an interview with the CFA Institute Roubini was quite aptly labeled as a ‘perennial permabear’. He is known for calling out bubbles, most famously the housing bubble leading up to the global financial crisis. He has also labeled crypto as the mother and the father of all bubbles adding;
“But to me, the whole crypto space is one of assets that are not really money. They’re not really a currency. They’re not a scalable means of payment. They’re not as stable in terms of store of value.”
While the price action of Bitcoin and its brethren has behaved like a bubble in the past 18 months one has to look at the bigger picture to see that Roubini is clearly barking up the wrong digital tree here. Yes, Bitcoin is down 80% from its all-time high but it is also up 225% from this day two years ago, March 8 2017 when BTC traded at $1,200. That is not how bubbles behave.
The venting went on as Dr Doom vehemently displayed his distaste for this asset class and all who are involved in it.
“Well, I engage on Twitter and I also have attended many of these crypto or blockchain conferences. I met some of these individuals, and I must say I’ve never seen in my life people who on one side are so arrogant in their views, who are total zealots and fanatics about this new asset class,”
He added that those people were also completely ignorant of basic economics, finance and money. It would be interesting to see if Roubini had the same views about those that invested in the dot com boom and bought Netscape stock, for example, when they launched the IPO at $28. The shares surged to $175 by the end of 1995 and some of the biggest gainers from that period were investment bankers who clearly did have a grasp of economics.
Roubini added that the start of internet was a bubble with a lot of dot coms going bust but it kept growing, adding the billions of people used it and it changed the world. Again, what he fails to see is that crypto is still in this very early phase with virtually no adoption yet – the capacity for growth is as big as the internet was back in the 1990s and the institutions are clearly showing interest this year.

Nouriel Roubini: The Mother and Father of All Bubbles
— Nouriel Roubini (@Nouriel) March 7, 2019

The ranting continued and one could almost envision the blood pressure rising;
“The ratio between arrogant and ignorant is astounding — I have never seen such a gap in my life. These are fanatics. Some of them, like criminals, zealots, scammers, carnival barkers, insiders who are just talking their book 24/7.”
As if in ‘gloat mode’ for correctly predicting that a bear market would follow a huge bull run, Roubini’s venomous rhetoric towards this industry appears to be stemming from some deep personal loathing of it and the people involved in the nascent technology. Nothing more, nothing less.
Image from Shutterstock
The post Dr Doom Does it Again: Bitcoin and Crypto People Are Arrogant Zealots and Fanatics appeared first on NewsBTC.
Source: New

Warning: India is Heading Towards Clueless Bitcoin Regulation, Here’s Why

When the Reserve Bank of India (RBI) warned its citizens about the risks of trading and holding cryptocurrencies in December 2013, it was a reformist move. Cryptocurrencies, or should we say bitcoin, was a new phenomenon back then.
Every country out there had its share of doubts about it. And correspondingly, they all, like India, warned their citizens of its potential ills.
Five years and three months later, countries started to learn more about bitcoin and its unique technological capabilities to reform finance. Developed economies such as the US, the UK, the European Union, Singapore, Japan, and South Korea moved from being cautious to more welcoming.
But India remained where it was, still looking at bitcoin as if it was a bomb waiting to go off at any moment.

Dear @arunjaitley @narendramodi
Russia has moved one step closer to positive crypto regulations. The law makers there are calling Crypto the "Economy of the Future"
Crypto is indeed the Economy of the Future and India should embrace this and win #IndiaWantsCrypto
— Nischal (WazirX) (@NischalShetty) March 6, 2019

The only concrete steps the world’s sixth largest economy took all these years were: raid cryptocurrency startups, portray bitcoin as a scam via half-baked media coverages, and – to top all – ban its banking sector from offering services to cryptocurrency industry. When the Western economy had moved forward with bitcoin, India started walking backward.
The crypto sector fought back hard. It took the RBI to the Supreme Court of India to challenge its ban. After several delays, the apex court eventually directed the RBI and the government to come up with a bitcoin regulation – that too, in just four weeks.
It leads the Indian crypto sector to ask that how does an authority, which sleepwalked through the entire Supreme Court process, can suddenly introduce a regulatory framework for a complex cryptocurrency economy.
Less Time, More Work
There is no clarity about how the Indian government perceives decentralized, permission-less blockchains. In its earlier comments, the RBI clarified that it could not regulate cryptocurrencies because the Indian laws had never defined such asset classes. At the same time, Indian securities regulators, the Securities and Exchange Board of India (SEBI), remained mum on the matter.

The reason could be the multifaceted nature of cryptocurrencies. The technology converges multiple disciplines – of securities, currency, and commodities – making it difficult for regulators to assess its exact use case from a user’s point of view. Before the banking ban, RBI and SEBI passed the burden of regulating cryptos to each other, never realizing how they would define the asset class. It is one of the reasons why one cannot help but be skeptical about their intentions to deliver a robust legal framework in four weeks.
What to Expect
With any luck, RBI would have realized by now that its banking ban is not working. On the contrary, it has moved the bitcoin market underground.
SEBI, thanks to all those crypto-education trips to Japan and Switzerland, must have also understood the necessity of categorizing bitcoin and other cryptocurrencies per their underlying use-case.
If sense prevails, both the regulators would first define how they would separate utility tokens like bitcoin from security tokens like a company-backed equity coin.

#Indian #Government: No decision on licensing and authorising any entity or company to operate such schemes or deal with #bitcoins or any #virtualcurrency has been made as yet.#cryptonewsindia #cryptoindia #bitcoinindia 1/1
— Crypto News INDIA (@CryptoNews_IN) February 13, 2019

In the worst case scenario, SEBI and RBI would call an outright bitcoin ban after taking inspirations from their neighbor China. Practically, that does not change anything for Indian crypto users, which are already trading bitcoin via peer-to-peer methods. However, for an economy that boasts of being the world’s largest IT hub, India will lose a lot that it would gain by shunning an emerging sector.
In either case, Indian will remain a clueless destination for all bitcoin lovers unless RBI/SEBI has a beautiful surprise under its sleeves.
The post Warning: India is Heading Towards Clueless Bitcoin Regulation, Here’s Why appeared first on NewsBTC.
Source: New