The rise in demand for digital payments during the COVID-19 pandemic further highlighted the importance of CBDCs and intensified the global race between central banks. The question is which one will win?

Central banks all over the world have been developing their own state-issued digital currencies. According to a recent survey by Central Banking, 65% of the participants stated that they had been actively researching digital currencies, revealing a race between central banks to develop national cryptocurrencies. In fact, Kai Sheffield, the head of Visas cryptocurrency division, considers central bank digital currency (CBDC) one of the most important trends for the future of money and the payments industry for the next decade.

Furthermore, the rise in demand for digital payments during the COVID-19 pandemic further highlighted the importance of CBDCs and intensified the global race between central banks.

Konstantin Anissimov, Executive Director at CEX.IO has shared his own view on this matter exclusively for Coinspeaker.

He said that from China and Japan to the European Union and the United States, numerous nations work on creating their state-issued digital currencies.

From all the 46 countries that consider the development of a CBDC, China seems to be in the leading position to create the first state-issued cryptocurrency. In April, the Peoples Bank of China (PBOC) was reportedly testing its CBDC, the digital yuan, in four cities.

Lets also not forget that the PBoC reported that it completed the back-end architecture development of the digital yuan last month, with draft laws ready to speed up the CBDCs implementation.

Anissimov stated:

Based on this information, we can safely say that China is leading the CBDC race, with even the Bank of America admitting the same.

He added that the Bank of Japan is also working on a central bank digital currency, announcing the start of the institutions experiments with a digital yen earlier this month.

While the two Asian nations state-issued digital currencies are on the way, the United States has yet to decide on it.

However, discussions on the matter have already started, with both the Congressional Task Force on Financial Technology and the U.S. Senate Committee on Banking, Housing, and Urban Affairs holding meetings about CBDCs last month.

The institution had confirmed its work on the digital euro last year with the development of two potential versions (wholesale and retail) of the CBDC.

Sweden and the United Kingdom are also actively putting in efforts into researching and implementing digital currencies.

Sweden had first revealed its intentions to run an e-krona pilot program back at the end of 2019, and began running the tests in February 2020.

In the UK, the Bank of England is debating on the potential advantages of issuing a central bank digital currency.

In March, the Bank issued a discussion paper on how a CBDC could be introduced and integrated into the existing markets and is welcoming input from local companies.

Anissimov says that as central bank digital currencies are still under development, we can only guess their actual effects on the cryptocurrency market.

However, despite that CBDCs feature centralized architectures, they will likely have a positive impact on decentralized cryptocurrencies.

He stated:

Currently, cryptocurrencies are still very new, and they have not yet reached mass adoption. However, as soon as CBDCs hit the market, billions of consumers will use digital wallets to send, receive, and store them. As a result, consumers will get more familiar with the technology, which will likely speed up the adoption of decentralized cryptocurrencies. Furthermore, consumers preferring control over their data and finances may choose decentralized cryptocurrencies over CBDCs.

Anissimov says that with government measures such as lockdowns and travel restrictions to cut the spread of the virus, citizens worldwide are increasingly staying at home and limiting their visits to physical stores and venues.

He explained:

In general, this has resulted in a shift from offline to online activities among consumers. And these significant changes in consumer trends have impacted multiple markets and industries.

He warns that as the coronaviruss first and direct consequence, stock prices have started to fall rapidly between late February and March.

While both the S&P 500 and the Dow Jones Industrial Average fell by over 35% within this period, the crypto market also experienced a flash crash, driving down Bitcoins price from $10,000 to $4,850 between February 23 and March 12.

However, Anissimov noted, the cryptocurrency market recovered quicker than traditional financial markets with a crypto bull run following the crash.

He also added cryptos have demonstrated a rather high rate of recovery compared to traditional assets.

Following the collapse, Bitcoin grew by more than 100%, while S&P 500 and Dow Jones showed a growth of only 20%. In the future, we expect stabilization of all markets with a subsequent correction, as the positive factors at the moment are very fragile.

He concludes that as a form of digital payments in an era where both consumers and merchants are turning away from cash transactions, the COVID-19 pandemic could increase the crypto adoption rate in the future.

And this provides one more reason for central banks to develop their own digital currencies to suit the changing consumer trends.

Similarly to cryptocurrencies and decentralized finance applications, when CBDCs enter the market, they may offer access to distributed finance solutions, providing new financial products and services for the public, concluded he.

Experienced creative professional focusing on financial and political analysis, editing daily newspapers and news sites, economical and political journalism, consulting, PR and Marketing. Teutas passion is to create new opportunities and bring people together.

You have successfully joined our subscriber list.

Continue reading here:

Exclusive: Who Will Win the Central Bank Cryptocurrency... - Coinspeaker

The facility allows NetCents to have money in the market over an extended period and pass along its profits to its client base

Technology Inc () (OTCQB:NTTCF) announced Friday that it has partnered with fintech firm Bison Digital LLC to use its flow of merchant orders as a short-term cryptocurrency portfolio.

Last month, the crypto payments company received an industry-leading US$1.4 billion credit facility to fund merchant settlements, thus making it easier to hold crypto positions. The facility allows NetCents to have money in the market over an extended period and profit from buying and selling cryptos profits that mean it can reduce fees to its client base.

Ultimately, NetCents believes the financing will curb any obstacles to unlimited processing and mitigate therisk associated with merchant payouts.

"I believe that our dedication to developing best in class solutions has facilitated the institutional relationships we are using to grow opportunities in the blockchain and crypto space, NetCents CEO Clayton Moore said in a statement. I look forward to scaling the business we have built through these strong partnerships."

Bison Digital is backed by BKCoin Capital LP, a digital assets quantitative hedge fund with a market-neutral long/short arbitrage strategy.

"In the short time we've been working together, NetCents has quickly become our most strategic partner for cryptocurrency advisory," BKCoin chief investment officer Kevin Kang added. "We look forward to continuing to develop this relationship as its volume continues to grow rapidly, leveraging our depth and experience in managing and trading multi-asset portfolios to drive a new profit center for all parties."

Bison Digital, a fintech company that delivers a venue for exchanges, payment processors and others looking for crypto liquidity, also believes in what NetCents brings to the table.

"As NetCents grows its already impressive merchant base, upcoming product offerings such as the NetCents Cryptocurrency Credit Card will drive growth in order flow that will supply the short-term crypto portfolio," Bison Digital managing partner Carlos Betancourt said. "We anticipate quickly outgrowing our $5 million daily credit facility and will look to expand."

Contact Andrew Kessel at [emailprotected]

Follow him on Twitter @andrew_kessel

Originally posted here:

NetCents teams up with crypto fintech company to utilize US$1.4 billion credit facility - Proactive Investors USA & Canada

We are witnessing a lot of innovations in business segments across different industries nowadays. The new technologies like artificial intelligence and machine learning are changing the way we accomplish things today, and in the future, these are expected to become even more dominant. The financial technology domain has also got its own share of innovations. Cryptocurrency and blockchain technology are the most important inventions in the financial sector, and the automated cryptocurrency trading platform such aslibra-maximizers.com is revolutionizing the way people make money online. Thanks to these technologies, the new category of financial products and investments, such as digital assets, decentralized finance, and non-fungible tokens, are increasingly finding favor with the millennial.

The traditional financial system consists of banks and financial institutions as the main pillars of its operating mechanism. We all have at least one or probably more than one bank account and are using banking services like financial transactions, credit card payments, ATM withdrawals, among others. Banks are quite a powerful constituent of the overall economic scenario, and thanks to globalization, we have today a number of global banks operating in different parts of the world.

Compared to the conventional financial system, the new-age transactional mechanism underpinned by cryptocurrencies is just a decade-and-a-half old system. Cryptocurrencies are similar to fiat currency except for the fact that the former is digital while the latter is physical in form. Just like people deposit and keep physical money in banks, cryptocurrencies are stored and transacted with the help of blockchain technology.

Both traditional and cryptocurrency-based transactions can be used for a variety of purposes. For example, you can deposit the money, withdraw the money, send the money to somebody else, and online purchasing the product and services from different merchants. However, there is one fundamental difference that sets the traditional banking system apart from the cryptocurrency-based transactions. This difference is the level of control or centralization. Banks centrally control the traditional transaction system, whereas no such control is exhibited in the case of cryptocurrency. The whole system of cryptocurrency works on blockchain technology, which is a decentralized technology, signifying no third-party interference.

Unlike the bank, you cannot report any theft or anomaly in the cryptocurrency transaction. Cryptocurrency transactions are irreversible, and once completed, it cannot be turned back. This means you have to take the total responsibility of your financial transactions. On the flip side, cryptocurrency transactions are completely free from any third-party interference, which gives you complete freedom over your financial assets. Being digital in nature ensures that cryptocurrency transactions are processed much faster than the traditional payments and at a very low cost. This aspect is particularly relevant when you have to send money across borders. No Surprise, we are witnessing the steady rise in the adoption of cryptocurrency and blockchain technology even by the banks and other financial institutions while processing their overseas payments. You can access your digital coins at any point in time, and there is no need to worry about the typical issues that we encounter in traditional banking systems such as slow server speed, bank holidays, scheduled maintenance, etc.

There is an extra layer of safety and security offered by the traditional banking system in terms of providing a centralized control where incidents of theft, forgery, etc., can be reported. This makes the parking of your money in banks a more reassuring; however, the centralized control also comes with its own share of limitations. Some of the prominent ones include delay in payment processing, costly transfer process, and third-party interference.

Ultimately, the decision to choose between traditional and crypto-based systems depends on users priorities and their risk appetite. If you are willing to sacrifice control for the extra layer of security, then the traditional financial system makes more sense for you. However, if you want to experience new-age technology with altogether different kind of comfort and convenience, then cryptocurrency and the blockchain technology is the path you should go for.

See the article here:

Cryptocurrency and Traditional Financial System: Things you should know - NameCoinNews

London, England, July 11, 2020 (GLOBE NEWSWIRE) -- The concept of cryptocurrency trading is gaining a lot of attraction. Having said that, investors are also looking to harness the benefits of the traditional stocks and commodities market. In this context, the New York Exchange Coin (NYE Coin) aims to achieve financial integration between the classic stock and commodities market and the latest trend of cryptocurrency trading.

About NYE CoinAs one of the Orbit Network INC. latest projects, NYE Coin is a digital asset that harnesses blockchain technology and implements smart platforms to seamlessly integrate the traditional stocks & commodities market with the crypto trading world. It provides investors with the opportunity to utilize the benefits of traditional markets through a secure and transparent investment vehicle. The project is being developed by UK-based Blockchain Development INC. Limited.

It also uses secure payment integrations to ensure transparent investments and fast transactions through distributed processing. Moreover, being open-source, the NYE trading platform called Orbitex is community-driven and it follows an inclusive model to bring financial freedom.

What Makes NYE Unique?

Based on all of these factors and more, NYE Coin aims to be one of the most valuable digital assets to collect. To know more about the technical specifications of NYE, you can go through its whitepaper.

Summing Up

NYE Coin is arguably the first-ever cryptocurrency to attempt integration with a traditional model. The legacy trading vehicles like stocks and commodities offer their own set of advantages. On the other hand, crypto trading is also a profitable prospect. Through its robust, scalable, and secure blockchain, NYE seamlessly integrates the classic and modern modes of investment.

The project is currently in final implementation stages and has already garnered the attention of investors from across the world. Owing to its unique model, NYE also has the potential to drive crypto adoption in the mainstream.

Media DetailsCompany: Blockchain Development INC.Email: info@nyecoin.ioWebsite: https://www.nyecoin.io/

Read the original here:

NYE Coin Is Helping Investors To Tap Into The Potential Of Stocks & Commodities Market Through The Power of Blockchain. - GlobeNewswire

Nearly 90% of cryptocurrency investors worry about what will happen to their funds in case they pass away, a new study revealed. However, less than 25% of participants noted that they organized a comprehensive plan regarding their digital asset will.

The digital asset field differs from traditional finance in various forms. Apart from the decentralized nature which attracts numerous proponents and investors, leaving a detailed will is not as simple.

Due to features such as dedicated digital wallets and public digital addresses, and complicated words like private keys, leaving cryptocurrencies as an inheritance could be challenging for people unfamiliar with the matter.

UK-based cryptocurrency company Coincover estimated that nearly 4 million bitcoins had been lost after the owners death. To put this into a USD perspective, it amounts to almost $37 billion.

Consequently, researchers from the Cremation Institute decided to compile a study among over 1,100 digital asset investors regarding their views and plans for their cryptocurrency funds.

The findings overwhelmingly show that cryptocurrency investors have a real worry about their assets simply disappearing after they pass away. Overall, 89% of participants worry on some level about whether their crypto assets will be passed on to their loved ones.

Generation Z (aged 18-25) and Millennials (26-40), who are particularly fond of investing in digital assets, seem less bothered. Contrary, and somewhat expectedly, Baby Boomers (56-76) were most concern.

Although evidently worrying, most participants indicated a lack of precise planning regarding the future of their assets if they were to pass away. The report explained that this is especially true for younger generations. The findings reveal that a concerning 59% of Generation Z crypto holders have no plan, while 35% of Millennials reported no plan.

Contrary, 86% of Generation X and 94% of Baby Boomers claim they had set up a plan to ensure their family members receive the cryptocurrency wealth.

The paper also observed vital differences in the approach from cryptocurrency and traditional investors towards their assets. The Cremation Institute analyzed a 2020 Estate Planning study and found that 32% of normal investors already have a will this year. In contrast, only 7% of cryptocurrency holders have included their digital assets in their will.

Once again, this disparity increases for younger generations, as 18% of people within the 18-34 bracket have a will, while only approximately 3% of crypto-asset holders in this bracket document their plans in a will.

Interestingly, the research pointed out that women are significantly more likely than men to have a cryptocurrency contingency plan in place.

Enjoy reading? Please share:

Click here to start trading on BitMEX and receive 10% discount on fees for 6 months.

Originally posted here:

Study: Almost 90% Of Cryptocurrency Investors Worry About Their Funds If They Die - CryptoPotato

Whether youre interested in cryptocurrency or not, youve probably already heard of Bitcoin. When the cryptocurrency first launched it was worth less than a dollar, but over the years that price has fluctuated reaching astronomical numbers that no one could have expected.

The high volatility Bitcoin carries has made it one of the hottest commodities someone can obtain right now, and while nothing is ever certain with something like Bitcoin, people cant help but invest in it and hope for the best.

Despite the risk that comes with acquiring Bitcoin, Bitcoin trading is now a popular way for people to try and secure their financial future. But why are so many people so sure that Bitcoin will bring them nothing but profit? To answer this question were going to need to look into how Bitcoin is faring now, and some of the predictions people have made for the future.

Some of the most interesting things about Bitcoin are the circumstances around its fluctuating price. Surprisingly enough, it seems that Bitcoins worth works in the opposite direction to fiat currencies. Bitcoins price often rises by quite a lot whenever tensions arise and people feel unsure about the political climate in the western world, and globally.

Another interesting thing you might not have known about Bitcoin is that its finite. While Bitcoin mining is still alive and well, the amount miners can procure is narrowing as time goes on. This is due to something called Bitcoin halving. Every four years the pace at which new Bitcoin is created gets cut in half which makes it harder for miners to get Bitcoin at the same rates as before. Like with most things, when Bitcoin becomes rarer, its only logical for its price to increase.

Anyone can get into Bitcoin trading today. Thanks to a slew of helpful Bitcoin trading apps and websites, even you can try your hand at Bitcoin trading. One way to potentially profit off of Bitcoin is by using AI automated trading apps. You can find a great example of this on https://www.bitcoinera.app. With the help of their smart trading robot, you can scour the market and make informed decisions on how and where to trade, and if that seems like too much work, you can let the app do it for you!

Bitcoin trading has gained a lot of traction in the past couple of years. While Bitcoin used to be a currency for the tech-savvy and those who wished to remain in the shadows, more and more average Joes are taking an interest in the popular cryptocurrency. The simple fact that interest in Bitcoin grew brought a lot of changes to the currencys worth, some good, some bad, but ultimately made the cryptocurrency a lot easier to access.

So how do all of these things mentioned before influence the profitability of Bitcoin in the future? Its simple and complicated at the same time. The latest Bitcoin halving event happened in May of 2020! While there might not have been a significant price drop or increase right after the event, a lot of people believe that the price of Bitcoin will keep rising little by little and end up reaching up to 13.000$ by the end of the year.

Another thing that has had quite an impact on the price of Bitcoin this year has been the unfortunate rise of the global pandemic. As we mentioned before, Bitcoin seems to rise whenever something like this tends to happen, but this time things didnt work out that way.

The price of Bitcoin dropped significantly during the pandemic which put a damper in the plans of many investors. While the price was still nothing to frown over, it was nowhere near what people might have expected.

Things are starting to look up though. With vaccines currently in the works, people are starting to get their hope back. This is good news on more than one front. Thanks to the words effort to prevent further spread with some valiant efforts, the price of Bitcoin has been getting back on track.

Predictions for Bitcoin for further on into the future are so insanely high that most people cant even fathom them. According to an onslaught of Bitcoin predictions for 2020 and beyond, theres nothing to worry about other than missing out on the chance to invest in Bitcoin sooner!

See the original post:

The Profitability of Cryptocurrency Bitcoin Now and in the Future - Chiang Rai Times

Brock Pierce during the Sime Awards at Epicenter on November 16, 2017 in Stockholm, Sweden. Pierce ... [+] is a serial cryptocurrency entrepreneur and recent U.S. Presidential candidate.

A New York appeals court today unleashed the states attorney general to investigate a number of businesses behind the tether cryptocurrency. While there are no formal accusations of fraud or other wrongdoing, the opinion, from an appellate division of New Yorks Supreme Court, gives teeth to subpoenas filed by the attorney general. The respondents, including both Tether Holdings Limited and the Bitfinex cryptocurrency exchange, had unsuccessfully fought the subpoenas at the trial level, before appealing.

The news comes at an awkward time for Brock Pierce, 39, the creator of the cryptocurrency, who this week announced he was running for President of the United States. A representative of the New York State Attorney General says he cannot confirm or deny that the investigation includes Pierce.

In 2014, Pierce, who is running as an independent on a pro-technology platform, created the tether currency as a way for cryptocurrency investors to quickly enter and exit a position. Unlike bitcoin and other cryptocurrencies, tether was meant to have a stable price, backed one-to-one by real U.S. dollars. But unlike traditional dollars, it can be moved instantly, while actually cashing out a crypto-asset using banks can take days, and many banks wont support the service at all.

By November 2018 questions about whether or not the cryptocurrency was actually backed dollar-for-dollar started to circulate and a predecessor of the state attorney general of New York, Letitia James, officially began the investigation. After turning up some promising leads however, Tether and Bitfinex filed an appeal resulting in a temporary halt of the investigation.

With the opinion order dated today, that investigation can resume. The result of what state attorney general James uncovers could impact any of countless owners of the tether cryptocurrency, with a total market value of $10 billion, and depending on whether or not what is found is good or bad for tether, pave the way for a flock of new, regulated, competitors.

Today's decision validates our office's ability to use its broad and comprehensive investigative powers to protect New Yorkers, said James in a statement provided to Forbes. Not even virtual currencies are above the law. We are pleased with the court's decision, and will continue to protect the interests of investors in the marketplace.

Officially, the case involves, BFXNA Inc. and BFXWW Inc., wholly-owned subsidiaries of iFinex, which operates the Bitfinex cryptocurrency exchange, and Tether Holdings Limited the holding company for Tether Limited, Tether Operations Limited, and Tether International Limited. Though Pierce is not mentioned in the opinion, he not only founded Tether in 2014, but is the co-founder of Block.One, behind the 11th largest cryptocurrency, EOS, valued at $900 million, and Blockchain Capital, one of the most influential venture capital firms in crypto.

Shortly after James started her investigation into the now-Presidential candidates business she issued three subpoenas for information going back to 2015, according to the opinion. During the investigation her team turned up information (not disclosed in the subpoena), that unable to get banking support, the respondents were forced to use a foreign entity to process customer deposits and withdrawals, according to the opinion.

Specifically, the attorney general previously alleged that Bitfinex had handed over $850 million to third-party payments processor Crypto Capital Corp., based in Panama, to handle customers-withdrawal requests. When the company failed to hold up its end of the bargain the respondents allegedly hid the losses through unspecified machinations, leading some to wonder if theyd simply started printing new tether cryptocurrency without any backing.

At around this time, Tether changed the wording on its site to show that instead of every tether being backed by a U.S. dollar, they were backed by Tether Holdings reserves, which include unspecified currency, cash equivalents, and other assets and receivables from loans made by Tether [Holdings] to third parties, according to the opinion. In turn, the respondents also successfully managed to get the investigation halted, temporarily though it may have been.

Grounds for the stay were rooted in questions surrounding an old New York law called the Martin Act that gives the state unusually broad investigatory powers even if malicious intent isnt proved and no one was actually injured. In certain cases, the act could give the attorney general the power to investigate as a way to avoid harm.

From the Supreme Courts opinion, authored by associate justice Ellen Gesmer and concurred by three other justices:

A statement from Tether is expected to be published on its site before the end of day.

Perhaps counter-intuitively, since the stay was issued in September 2019, tethers market cap exploded from $4.1 billion to $10 billion today, in spite of the doubts about whether the currency was actually backed by dollars, perhaps giving credibility to Tethers value proposition. Also over that time though, a newer stablecoin, USDC, co-created by cryptocurrency exchange Coinbase and crypto tech firm Circle, has risen to a market cap of $1 billion today and an even newer competitor, DAI, backed by a wide range of collateral has risen to $190 million.A loss to Tether would almost certainly be a win for the competition, and vice-versa.

Of particular interest to Pierce however is another trend that relates directly to his candidacy. Since Covid-19 a number of Congressional bills have called for the creation of a digital dollar similar to tether but sanctioned by the Federal Reserve. As James' investigation into Brocks creation picks up steam, questions about whether or not thats a conflict of interest will certainly have to be answered.

Editors note: This story has been updated to show that the investigation started prior to Letitia James assuming the attorney general position.

See the original post:

New York Court Approves Investigation Into $10 Billion Cryptocurrency Created By A Presidential Candidate - Forbes

There are currently more than 13,000 Bitcoin addresses that are now holding at least $1 million worth of BTC, according to Glassnode data.

You would have to own around 108 BTC, at current prices, to become a US dollar millionaire (in Bitcoin). The number of Bitcoin addresses with balances of more than $1 million reached a record high during the historic crypto market bull run of 2017. In December of 2017, the BTC price had surged to nearly $20,000 and the market cap of all crypto-assets had surpassed the $800 billion mark by early January 2018.

Its worth noting that the digital currency market has not been able to reach these historic highs, or even get close to them, during the past few years. Despite Bitcoin (and the larger crypto market) prices not being able to break previous highs, Glassnode data confirms that the number of addresses holding at least 100 BTC have remained at about the same levels in recent years.

Its possible that many of these BTC addresses belong to large cryptocurrency exchanges and digital asset custodians, who have consistently maintained large amounts of Bitcoin (and other cryptos) in their reserves. Notably, there are more than 1 million Bitcoins which were most likely mined by Satoshi Nakamoto, the pseudonymous inventor of the flagship cryptocurrency. Satoshis coins have not moved during the past 10 years.

Although its possible to check how many BTC addresses hold at least $1 million worth of the digital currency, it cant really be determined just how many individuals are actually Bitcoin millionaires.

We would have to find out how many people or entities control the 13,290 BTC addresses with $1 million (or more) in Bitcoins, in order to estimate out how many Bitcoin millionaires there are. This may not be practical because many people dont publicly disclose their wealth.

As reported recently, UK Millennials with 25,000+ in investable assets are increasingly investing in cryptocurrencies, according to a recent survey.

Global P2P Bitcoin (BTC) exchange LocalBitcoins has reported over $29 million in annual revenue for 2019. But P2P Bitcoin marketplace Paxful recently overtook LocalBitcoins in BTC trading volume.

Last month, it was revealed that Grayscale Investments is buying 1,190 Bitcoins per day, and is on track to control 10% of the BTC supply by the next Bitcoin halving in 2024.

Read the rest here:

Bitcoin Adoption: $1 Million or More in BTC now Held by Over 13,000 Cryptocurrency Addresses - Crowdfund Insider

Theres more to trading cryptocurrency than the actual trading process it takes an efficient trading strategy. Beginners, and even some professionals, rely on outside help to make profitable trades.

This need for outside help is the reason behind crypto trade signals, which are designed to help people understand and master cryptocurrency trading. Here is more information aboutcryptosignalsand their role in trading.

It takes a degree of knowledge and a reliable strategy to make a profit from any kind of trading, including crypto trading. Not everyone has that knowledge, and not everyone can create those strategies.

Even basic strategy, such as alternating between short-term traders and long-term investments, doesnt apply to everyone. Theres still the matter of choosing the right coins to trade and which ones to avoid. This is where cryptocurrency trading signals come into play.

These signals are the result of plenty of analysis of the current market situation. Signals can help traders to make the right decision on a trade. Some traders can misunderstand the market when trying to come up with these predictions themselves. This is something best left in the hands of capable professionals.

Crypto signals are basically the cryptocurrency version of insider information and stock market tips. Providersanalyzethe market to predict the best trades to make. Please note, however, that these predictions rarely come from actual insider information on the market and are often the result of careful analysis.

Cryptocurrency signals are generally good practice and a reliable source of information. These signals can help you learn more about different coins and how they are performing, as well as offer advice on when to buy and sell coins for the most profit.

Perhaps the most significant role of cryptocurrency signals in trading is that they facilitate trades. Beginners can use signals to get started with their trades and learn more about trading. Signals offer valuable knowledge about cryptocurrencies and are a great learning resource.

By using signals, traders can determine the best way to manage their capital, how to manage to stop losses, how to set and change targets to reach the most significant profit potential, and more. Crypto signal channels are an excellent source of information that is otherwise difficult to come by.

Theres more to crypto signals than just that, though. Theres more to these signals than only the knowledge they offer. Traders can use these groups to maximize their profits. By finding the right signal providers and cooperating with them, beginners and experts alike can find the best buy and sell positions.

Crytposignals help traders avoid the problem of analysis paralysis. Analysis paralysis is when traders get so caught up in analysis and contemplation that they fail to act in time. It is one of the biggest problems preventing people from being successful. Signal providers do all of the work for you so you dont get caught in your own head, wondering if you should make the trade.

Crypto signals are easy to use and offer better results from trading in less time. They provide a level of flexibility and convenience for traders looking to take advantage of the limitless potential of the cryptocurrency trading market. Theres always some trade waiting to be made on this broad market, so having a way to get tips on the newest and biggest trades is worth your time.

Its worth investing in crypto signals, whether you are a new trader or have years of experience. These signals are sure to improve your trading activity. They offer new investors the chance to build their portfolio and make money as they learn the ropes of trading. They provide experienced traders with the ability to broaden their horizons and increase their profitability by branching out more and buying different currency pairs.

The long and short of it is that crypto trading signals offer users the chance to earn and learn all at the same time. So long as you choose the right provider, you are sure to make some profit by following their advice. Given that these providers offer clear, detailed information about their signals, youll also have the chance to learn from them and create a suitable system and strategy all your own.

Crypto signals are similar to the insider information people use on the stock exchange. These signals are based on research and analysis performed by people who have a deep understanding of the crypto market.

These recommendations generally involve buying or selling a particular crypto coin, making investments in new ICO projects, and taking part in a pump and dump strategy. Keep in mind that not all signal providers are created equal. Put a little due diligence into finding a good provider, so you dont lose more money than you make.

Link:

What are Cryptocurrency Signals and their role in trading - TechGenyz

Running a cryptocurrency exchange comes with a lot of considerations. What are the regulations in the country you operate in? Do you have sufficient liquidity? How will you handle security? Adhering to all of these requirements leads to excessive costs involved with setting up and operating these platforms, which means that a high price is often required to get a coin listed on them. This only makes it that much harder for new assets to find a market.

Depending on where you are in the world, the regulations concerning cryptocurrency can be anywhere from strict to completely absent, with changes often coming swiftly after long periods of silence. While local rules can vary greatly, many governments have been moving toward stronger Anti-Money Laundering laws, such as the European Unions 5th Anti-Money Laundering Directive, which is currently forcing some firms in the EU to rethink their location.

In the United States, Representative Paul Gosar, a Republican from Arizona, introduced the Crypto-Currency Act of 2020, which would see unique definitions and oversight of crypto commodities, cryptocurrencies and crypto securities. Moreover, South Korea just passed a law requiring cryptocurrency exchanges to partner with banks to enforce AML policies. Meanwhile, the Reserve Bank of India recently lifted a ban on cryptocurrency that had only been enacted in April of 2018.

The point here is that regulations are subject to change based on geopolitical location and can also quickly evolve within just one jurisdiction. This can be costly to mitigate for exchanges. Paying for professional help just to understand the latest laws can add up, as can employing the teams necessary to collect and verify AML documentation from customers. However, failing to do so could lead to expensive fines or even to the platform being shut down. Unfortunately, these regulations are rarely seen as optional once they are decided upon.

Regulations arent the only obstacles for new exchanges. Issues can arise just in the act of setting up an exchange. There are myriad facets to think about, and all of them can be complex and expensive. Designing an interface, programming the matching engine, integrating AML practices, and working with local banks are just a handful of the concerns a team setting up a new exchange would need to address. All of these would also need a fair amount of time just to be implemented. Then, there is interacting with multiple blockchains in real time, security systems, and the sheer cost of storing and maintaining servers. The amount of time needed just to find quality programmers, build the codebase and debug it can easily take a year or longer if a team is starting from scratch.

Even once that has all been navigated, and the exchange is live, there will still be ongoing and expensive issues to contend with. Take liquidity, for example, which can be a major problem for smaller exchanges as well as smaller markets. This refers to the small number of buyers and sellers available to give traders confidence that they can make the trades they want when they want. Without this, traders will often miss out on opportunities because they cannot enter or exit a position in time, which will be frustrating and hurt business.

In other words, exchanges want to bring in as much traffic as possible and to curate a user experience that pleases everyone. Here, things like security and customer service are front and center. Clients want to know that the exchange is safe from both outside hackers and inside operators and that funds are always available where the exchange says they will be. Inevitably, there will be some mistakes or technical issues. This is why it is important to have support teams to address upset customers, as well as others to fix issues with the platform. Having the capability to respond to all of these matters doesnt come cheap, but without this, a new platform will surely fail.

In addition to the aforementioned issues, it can take a significant amount of capital to open and operate a cryptocurrency exchange. This can lead to platforms having large fees attached to listing fresh assets, which harms new development teams. It also causes much of the market to be channeled through a handful of gatekeepers, namely, the biggest exchanges that have already established themselves.

This is clearly problematic for smaller projects that arent already available across multiple exchanges. If they cannot raise the capital needed to be listed on larger platforms, which can often be in the $100,000 range or higher, then nobody would be able to buy them. Of course, in that case, they wont grow, and potentially sound ideas may get wiped out due to lack of liquidity and exposure. Projects need a way to know that they can create their own market when necessary, but for the most part, the costs may be too steep to launch an exchange platform.

This is where white-label exchanges enter the picture. A white-label exchange uses specially designed software to launch a new platform fast and cheap. A team, for example, could get an exchange running in days instead of months, and for thousands of dollars as opposed to millions. These exchanges generally follow templates but are highly customizable and can negate the need for a company to develop its own proprietary software. Generally, the software should provide everything necessary to get up and running, as well as to be in compliance, though not all exchanges are identical. It is important to know about a few specific options that are available.

In general, exchanges can be centralized or decentralized, and cloud-based or do-it-yourself. A centralized exchange means you will be hosted on another companys servers, which are generally paired with cloud-based models. It could also be hosted on your own servers, but this will also be cost-prohibitive for most. While you wont have as much control, usually the company offering this will handle a great deal of the operations behind the scenes, as well as manage technical issues. Although they offset some costs, subscription fees help to keep the platform running, but the upfront costs of getting started should be relatively cheaper.

DIY exchanges can be either centralized or decentralized, but when it is decentralized, it runs across many servers, and not simply by a single third-party entity. The DIY part means that while the software may be set up to assist you, there will generally not be anyone else operating the exchange behind the scenes. These packages may also come with subscriptions that allow you to access a team of experts for support, but you will be making the final decisions. Such offerings may be less expensive on a monthly basis but can often still have larger, one-time fees associated with being allowed to run the software.

One solution that solves many of the issues faced by teams looking to create new exchanges is the HollaEx Kit, offered by bitHolla. The kit is open-source, free to install and offers the most comprehensive set of tools for anyone to create a new cryptocurrency exchange in minutes. It includes a desktop and mobile user interface, a trade matching engine, and an administrative control panel. You can add any trading pairs you choose, including your own newly created coins or tokens. It is also designed to keep you in compliance with most modern regulations by offering a system that collects relevant AML data from your customers.

The process of setting up a new platform is streamlined, and there are options for getting advanced help from bitHollas team of experts. This makes HollaEx Kit the most attractive option for development teams who need to create new markets for their coins but cant afford to pay the exorbitant fees that come with most exchanges. The bitHolla team has created a product that seeks to be the WordPress of building exchanges. In time, DIY software will likely become the gold standard and will be increasingly integrated into more websites, potentially weakening the draw of centralized services. This is what bitHollas HollaEx Kit is trying to achieve with this software package, which will hopefully make access to building the cryptocurrency market a bit easier for everyone.

Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice.

The rest is here:

What Challenges Affect the Cost of Running a Cryptocurrency Exchange - Cointelegraph

LONDON, July 10, 2020 /PRNewswire/ -- Huobi,has seen aninflux of traditional and institutional traders join their platform and take advantage of the Huobi Futures market place. As of May 6, Futures and Swap Trading Volume at Huobi topped $5.2 billion, with 24 hour perpetual swap trading volume hitting $2.2 billion this is off a product that was only launched in April.

What is most interesting to see is that the Institution trading percentage on Huobi futures is estimated to as high as 30 to 40 percent.

This year has been a defining one for a number of reasons. The world has faced a global pandemic, and the traditional markets and economies around the planet have had to try and deal with this unprecedented event. It has also been a year that looks set for greater interest in cryptocurrency investment.

Internally, the cryptocurrency space has been on the rise in the mainstream as regulations, governments, and traditional institutions have come to normalize and legitimize much of the space. But now, externally, there is financial uncertainty in the traditional space and many retail and institutional investors are casting their eyes to new avenues.

Peoplehave seen Paul Tudor Jonespraise Bitcoinfor its potential as a speculative asset, stating he invests a small percentage of his portfolio in the coin, but expects it to be the best performer. People have also seen Grayscale Bitcoin Trustbuying up a major portion of coins newly mined after the Bitcoin halving.

But, what is it that is drawing institutional interest into the cryptocurrency market other than the current internal and external factors surrounding it. Huobi spoke with Ciara Sun, VP of Huobi Global Markets, to find out more.

What makes the market grow?

"The price volatility and high liquidity of digital assets are especially attractive to investors," explained Ciara Sun. "The crypto market is unique in that it can fulfil both demands in liquidity and volatility.

"For example, traditional investments like real estate have price volatilities but lack of liquidity. Foreign exchange markets have high liquidity but lack price volatility. Investors see arbitrage opportunities in crypto as an emerging market. An above averagerange annual return can be seen as good performance in the traditional market, but is actually a quite mediocre return in the crypto derivative market."

Clearly, the crypto market is an exciting place to be for investors. It is renowned for its high volatility, but this is a double-edged sword. For people who know how to trade well, and be safe, volatility is indicative of opportunity.

But, there is also the opportunity to use crypto to be safe and to avoid risky situations.

"Additionally, digital assets can offer investors a way to hedge risk against government intervention. Traditional assets are directly influenced by monetary policies and economic measures like quantitative easing, but digital assets are decoupled from the acts of any one nation or governing body. At a time when governments around the world are printing currency to stabilize their economies, digital assets can be one way to hedge against inflation," Ciara Sun added.

"On Huobi, we have seen a 3-4X growth in institutional trading on derivative markets since early last year. Institutional clients now account for 40% of our trading volume. Our growth in Russia is especially pleasing."

"Generally speaking, whether for institutional or individual traders, they want to choose a trading platform with good liquidity and market capitalization. Huobi manages 5% of crypto assets in the market and we are ranked the number 1 in liquidity by Coinmarketcap.

A reliable platform

Part of the growth in interest in the cryptocurrency space from institutional investors is also part of the growth of cryptocurrency providers. The expansion of CME and Bakkt is one side of it, but many institutions are coming to places like Huobi because of the professional platform provided.

Contact: Hailan - [emailprotected]

SOURCE Huobi Global

http://huobi.com

Continue reading here:

Huobi Global Provides Insight on What Is Driving the Institutional Interest in Cryptocurrency Investment - PRNewswire

One of cryptocurrencys main benefits is the ability to conduct trusted transactions swiftly. However, the anonymous and decentralized nature of these transfers can be leveraged by fraudsters to wash money or trick legitimate crypto investors. In order to keep their customers investments truly clean, exchange service Indacoin has adopted Kaspersky Fraud Prevent to halt this foul practice.

Many fraudsters launder funds from stolen cards or using leaked card details before they transfer them to their bank accounts and it is estimated that around three-quarters of laundered cryptocurrency in 2018 was washed with an exchange service. They are also able to manipulate crypto exchange users to transfer money into another account by impersonating security service members and using tools for remote access. As this software is legitimate, traditional security solutions may not be alerted to any risks and mark it as dangers. These cases not only put users investments at risk but also negatively impacts the reputation of exchange services.

It is critical to identify and block these damaging transactions, without affecting the speed of legitimate transfers of funds. The cryptocurrency exchange rate is known to be quite erratic. which means investors rely on their payments being processed very quickly.

Indacoin, a leading fiat-to-crypto exchange, provides a simplified verification process, which allows customers to use its partners services without any additional difficulties. To eliminate risks of the platform being misused, Indacoin has turned to the Kaspersky Fraud Prevention service. The Automated Fraud Analysis uncovers fraudulent transactions in real-time. It also can detect fraudster groups through global device reputation and extended fingerprinting analysis, so it is capable of detecting suspicious activity before the act of fraud has actually damaged the business.

As a result of Kaspersky Fraud Prevention being integrated into Indacoins antifraud system, its efficiencies rose by 38%. The most noticeable improvement was the ability to identify operations when operations were conducted on a clients computer or phone via remote access.

Anvar Sidorov, Director of Partnerships at Indacoin, provided his commentary: The crypto exchange has many unique features, but in general, we share the main risks of financial institutions: security of cards and payment information, as well as security of personal accounts and safety of clients funds. The implementation of Kaspersky Fraud Prevention helped to identify highly targeted fraud schemes, identify dishonest users with advanced precision and implement machine learning in the verification system.

We are delighted to be chosen by Indacoin, and it is always great to see a business take cybersecurity seriously. Fraudulent transactions are common on crypto exchange services and this has the potential to damage investor loyalty in this new sphere. By integrating Kaspersky Fraud Prevention with their exchange, Indacoin is positioning itself as a trusted partner for cryptocurrency investors in what is a highly competitive market, comments Claire Hatcher, Head of Business for Kaspersky Fraud Prevention.

If you have an interesting article / experience / case study to share, please get in touch with us at editors@expresscomputeronline.com

Go here to read the rest:

Kaspersky Fraud Prevention helps Indacoin halt fraudulent operations with cryptocurrency - CRN.in

Akon City, a futuristic cryptocurrency themed city founded by famous singer Akon, is ready to begin construction, with a plan to use the akoin cryptocurrency exclusively. Phase one of Akon Citys construction will include roads, a hospital, a mall, hotels, and a school. There will also be parks, universities, a stadium, and an industrial complex.

The $6 billion city in Senegal billed a futuristic cryptocurrency themed city, founded by Senegalese-American star and philanthropist Akon, has awarded its building contract to KE International, a U.S.-based engineering firm. Akon City announced earlier this month:

Akon Citys phase 1 is expected to complete by end of 2023, and will see the construction of roads, a Hamptons Hospital campus, a Hamptons Mall, residences, hotels, a police station, a school, a waste facility and a solar power plant.

Akon, whose full name is Aliaume Damala Badara Akon Thiam, is a famous singer, songwriter, actor, and record producer. He has sold over 35 million albums worldwide and received 5 Grammy nominations for The Sweet Escape, Bartender, Konvicted, I Wanna Love You, and Smack That.

Akoin is a cryptocurrency powered by a marketplace of tools and services fueling the dreams of entrepreneurs, business owners, and social activists as they connect and engage across the rising economies of Africa and beyond, the projects website details. According to Thursdays announcement:

Akon City phase 2 will run from 2024 to 2029 and will end with a complete cryptocurrency city running exclusively on akoin cryptocurrency.

For Akon Citys first and second phases of building, KE International has secured $4 billion from investors. Dubai based Bakri & Associates Development Consultants will lead the architectural designs of Akon City under KE Internationals guidance.

Akon City will be located near Mbodime, a small coastal village in the west of Senegal, West Africa, less than an hours drive south of the new Blaise Diagne International airport in Dakar. Aimed to be a tourist city with a cryptocurrency-based economy, Akon City plans to have parks, universities, schools, a stadium, hotels, and an industrial complex fully completed by 2030. Akon first announced his plan to build Akon City in 2018, stating at the time that he was working with the Senegalese government on the project.

The city plans to exclusively use the akoin cryptocurrency, which is built on the Stellar payment network. The akoin cryptocurrency is also to be used in Mwale Medical and Technology City (MMTC), a green city based in Western Kenya, which KE International is also building. Commenced in 2014, the construction project is 85% done and expected to complete in December this year. Recently, it partnered with the Akoin platform for its blockchain-based digital transactions. Akon hopes his akoin crypto will be used all over Africa where a significant portion of the population remains unbanked but smartphones are widely used.

What do you think about Akon City exclusively using the akoin cryptocurrency? Let us know in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Read disclaimer

Read the original post:

Akon City: $6 Billion Cryptocurrency City Set to Begin Construction | News - Bitcoin News

Bitcoin and cryptocurrency investors, feeling bullish amid a broad post-coronavirus crash rally, are seeing massive gains from some smaller cryptocurrencies.

The bitcoin price, under pressure since its latest attempt to breach the $10,000 per bitcoin level last week failed, is stuck on a downward trendbut other digital assets are soaring.

Following its launch just this week, decentralized finance protocol Compounds comp token has surged around 250%, giving it a market value of around $2 billion, according to some calculations.

The bitcoin price has added some 30% so far this year but bitcoin's recent rally has stalled-even as ... [+] some smaller cryptocurrencies are making massive gains.

Users of the Compound lending platform began earning comp tokens this week, with the cryptocurrency getting a boost from major U.S. bitcoin and cryptocurrency exchange Coinbase announcing it will begin listing the token.

"Once sufficient supply of comp is established on the platform, trading on our comp-U.S. dollar and comp-bitcoin order books will start in phases, beginning with post-only mode and proceeding to full trading should our metrics for a healthy market be met," Coinbase said in a blog post.

Comp has this week become the 25th most valuable cryptocurrency, according to CoinMarketCap data, with its price surging to over $200 per token, up from around $60 at the beginning of the week.

Some early calculations, which are inconsistent due to comp's immaturity, have put the total value of comp's combined tokens in circulation at a little over $2 billion.

Others, that count fewer comp tokens in circulating supply, put the cryptocurrency's value at around $500 millionin comparison bitcoin's market capitalization is just over $170 billion.

Comp, a so-called governance token that allows holders to influence the Compound protocol, are awarded every day to users of the decentralized finance platform.

Comp is currently only listed on a handful of smaller cryptocurrency exchanges, prompting some bitcoin and crypto market watchers to warn the sudden price surge could be short-lived.

"Most of comps price fluctuations are a function of the tiny float. I wouldn't read too much into the current price," Haseeb Qureshi, managing partner of Dragonfly Capital, told bitcoin and crypto industry news outlet Coindesk this week.

As the bitcoin price treads water, the comp price has soared almost 250% since it began trading ... [+] earlier this week.

Decentralized finance, often known as DeFi, has emerged as a popular growth area for bitcoin's blockchain technology, sparking a frenzy of speculation that echos the 2017 cryptocurrency and initial coin offering bubble.

DeFi platforms, blockchain-enabled systems that are often based on the ethereum network, allow for the lending and trading of cryptocurrencies and other digital assets without the need for centralized intermediaries like banks and exchanges.

"DeFi is hitting its stride and the space will continue to accelerate," research firm Delphi Digital wrote in a report out this week.

Read more:

As Bitcoin Struggles, This New Crypto Has Soared 250% To A Massive $2 Billion Valuation - Forbes

Almost a month after announcing its proposal to migrate to the Solana Blockchain, the Kin cryptocurrency project announced Friday the move had been approved by its board and community, and a transition plan would be released in the coming weeks.

The Kin Foundation said in a press release the move to Solanas blockchain was in response to a growing user base, which was hitting limitations on the Stellar blockchain fork the cryptocurrency is currently built on. According to the firm, the cryptocurrency currently has over 3 million active monthly spenders and has been integrated into 57 different, mostly mobile, applications.

App developers, node operators and the Kin Foundations board members (Ted Livingston, who founded the Kik messaging app and is the face of Kin, and William Mougayar, an author who hosts the annual Token Summit conference) voted on the proposal, which was released on Github last month.

They had already been pushing against the limits of the Stellar fork, Mougayar said

He said a rise in users meant that the Kin cryptocurrency needs to be able to process more than 100 transactions per second, which is the upper limit on the Stellar fork.

According to Anatoly Yakovenko, Solanas co-founder, the blockchain can handle up to 60,000 transactions per second on its current mainnet.

In addition to speed, Solanas natural ability to scale turned out to be a major determining factor in their (Kins) decision, Yakovento told CoinDesk.

This is also not the first time the cryptocurrency has changed blockchains. Launched by Kik in 2017, Kin was originally built on the Ethereum blockchain, but a few months later it announced that it would use Ethereum for security and the Stellar blockchain for transactions. Then in May 2018, Kin announced that it would fork Stellars blockchain to create its own.

According to the firms emailed statement, as part of the cryptos transition to Solana, the blockchain firm has also promised to give 1% of all of Solanas token supply (amounting to $3.5 million) as grants to the Kin Foundation.

Even as Kin continues to expand its user-base, the regulatory troubles it faced in the past have continued to persist.

Kin is not getting much recognition in the marketplace, unfortunately because of the SEC [U.S. Securities and Exchange Commission] darkcloud, Mougayar said.

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Read the original post:

From Ethereum to Stellar, to Solana: Cryptocurrency Kin Confirms Blockchain Migration - CoinDesk

Technically, Bitcoin is to cryptocurrency what US dollar is to fiat money

In Bitcoin Halving, the number of Bitcoins rewarded for processing transactions is cut down to half

Crypto investors have already made millions through bitcoins

The situation was no less than an edge-of-the-seat thriller for crypto investors and enthusiasts on 11 May as they witnessed a remarkable event, perhaps, since the inception of Bitcoin. Though a leap year-like event, the recent Bitcoin Halving has been phenomenal because it took place with the economic backdrop akin to the Great Recession of 2008 which eventually gave birth to the cryptocurrency. It barely came as a surprise that Bitcoins value doubled from mid-Marchs approx. $4,944 to more than $9,900 as the halving date neared.

Technically, Bitcoin is to cryptocurrency what the US dollar is to fiat money. Its prices and trading volumes are used as a benchmark to gauge the performance of other cryptocurrencies. In practice, it functions like gold and is used as an investment instrument to balance the portfolio. But how does halving affect the Bitcoin and, by extension, the cryptocurrency market? Let us try and understand.

In a typical scenario, the demand-supply of fiat currency (such as the US Dollar, Euro, or INR) determines its value. It is further controlled by the regulatory policies and dependent on government reserves. Almost the same phenomenon works in the case of cryptocurrencies in a different format.

Their value is mostly determined by what people are willing to pay. It makes them susceptible to fluctuations and supply-demand dynamics. Since Bitcoin is a digital distributed ledger system, it is neither printed anywhere nor controlled by a particular sovereign body. It is mined using computational powers by miners who are then rewarded for solving complex mathematical problems. The Bitcoins blockchain, however, regulates this reward leveraging the halving method.

For the uninitiated, whenever a set of digital transactions take place forming a block on the blockchain, the individuals successfully verifying these transactions are rewarded by the network. The reward which is the main force behind the operation of the entire system comes in the form of additional Bitcoins. This is much like printing of fiat currency by a central bank. However, by design, Bitcoins blockchain cannot have more than 21 million Bitcoins. This aspect itself makes it a prized commodity.

In Bitcoin Halving, the number of Bitcoins rewarded for processing transactions is cut down to half which helps in maintaining the fixed supply of Bitcoin. Therefore, the process of halving is significant as it underpins the value of cryptocurrency.

The process is a leap year-like event that occurs after approximately 21 Mn blocks, reducing the reward supply by 50 per cent every time in a geometrical progression. Halving has taken place thrice since cryptocurrency came into being, including the recent event. The block reward before the first halving was 50 Bitcoins. The most-recent Bitcoin reward was 12.5. The third and the latest has now decreased the reward further to 6.25 coins.

From an economic perspective, cryptocurrencies like Bitcoin are the best hedge against fiat currencies which have an unlimited supply. When the supply goes down, scarcity makes the price shoot up. The principle works on similar lines of Gold but is governed completely by coding. Consequently, a parabola in Bitcoins price can be observed every four years.

From a historical perspective, each time the halving took place, it has raised the price of Bitcoin to an all-time high. The first event that occurred in November 2012 saw a surge from $11 to $1,000, while the second incident in July 2016, significantly helped to increase its value from $700 to $20,000. Both of the events indicate that while the supply of Bitcoin decreases during the process, the demand remains the same, which pushes the price up.

Despite a near-two-fold return in two months, this years halving event is expected to have its true impact when the economy recovers, thereby pouring more liquidity and driving the investor sentiments. It must be noted that these appreciating numbers come at a time when, year to date, bitcoin is performing better than the traditional commodities of investment. The assured hike in figures is mainly due to investors continual interest in bitcoin as an asset class. This steady increment could draw new players into the crypto ecosystem.

However, with rewards cut to half, the current value of $9,195 (at press time) may prove insufficient to keep less-efficient miners operating in the long run. This may result due to a shift in market dynamics.

Right now, the world is undergoing a major financial shift. Due to the pandemic-induced black swan event, the cryptocurrency has too witnessed its share of brief volatility. However, if the price of any fiat currency falls, the value of Bitcoin rises for that currency. Hence, at present, people are also leveraging bitcoin as a hedge investment to protect against the devaluation of fiat currency, which includes cash, bank savings, mutual funds, and so on.

Crypto investors have already made millions through bitcoins and the digital currency continues to attract institutional investors who perceive it as a store of value. Given the current market condition, it wont be surprising to see the bitcoin ecosystem grow further and give rise to a new class of millionaires.

Excerpt from:

Cryptocurrency, Bitcoin Has Halved: What It Actually Means? - Inc42 Media

A worker checks the fans at the cryptocurrency farming operation Bitfarms, in Farnham, Quebec, Canada, February 2, 2018. (Christinne Muschi/Reuters)Exchange-rate instability is a curse. A private currency board would prevent it.

With the onset of the coronavirus pandemic, currencies around the world took a deep dive. To name but a few casualties: Argentina, Brazil, Colombia, Iran, Lebanon, Mexico, Nigeria, Russia, South Africa, Syria, Turkey, Venezuela, and Zimbabwe. Not only have the currencies in these countries plunged, but the burden of their foreign debts has soared. Exchange-rate instability is a curse.

Indeed, currency instability, banking crises, soaring inflation, sovereign-debt defaults, and economic booms and busts all have a common source: exchange-rate instability. The ills induced by exchange-rate instability bring with them calls for policy changes. Karl Schiller, the German Finance Minister from 1966 until 1972, understood this simple fact. Schillers mantra was clear and uncompromising: Stability is not everything, but without stability, everything is nothing. Well, Schillers mantra is my mantra.

I offer a regime change that would enhance stability in the international monetary sphere: private currency boards. Just what is a currency board?

A currency board issues notes and coins convertible on demand into a foreign anchor currency at a fixed rate of exchange. As reserves, it holds low-risk, interest-bearing bonds denominated in the anchor currency and typically some gold. The reserve levels (both floors and ceilings) are set by law and are equal to 100 percent, or slightly more, of its monetary liabilities (notes, coins, and, if permitted, deposits). A currency board generates profits (seigniorage) from the difference between the interest it earns on its reserve assets and the expense of maintaining its liabilities. By design, a currency board has no discretionary monetary powers and cannot engage in the fiduciary issue of money. It has an exchange-rate policy (the exchange rate is fixed) but no monetary policy. A currency boards operations are passive and automatic: Its sole function is to exchange the domestic currency it issues for an anchor currency at a fixed rate. Consequently, the quantity of domestic currency in circulation is determined by market forces; namely, the demand for domestic currency.

A currency board cannot issue credit. It cannot act as a lender of last resort or extend credit to the banking system. Nor can it make loans to the fiscal authorities and state-owned enterprises. Consequently, such a regime imposes discipline on the economy through a hard budget constraint. As a result, when compared to countries that employ central banking, currency-board countries have lower fiscal deficits, lower debt-to-GDP ratios, lower inflation rates, and more rapid growth.

Historically, currency boards have existed in about 70 countries, and none have failed including the North Russian currency board installed on November 11, 1918, during the civil war that followed the Bolshevik revolution. Its architect was none other than John Maynard Keynes, who was a British Treasury official at the time. Today, the most notable currency board is Hong Kongs. What all currency boards past and present have in common is that they are public institutions. But, there is no requirement that currency boards be publicly owned.

For many years, my long-time collaborator Kurt Schuler and I have advocated private currency boards. In our draft law for such a regime, we proposed that its home offices and reserves be located in Switzerland and that it be governed under Swiss law. With the advent of cryptocurrencies, the prospect of our idea, or something similar to it, is close to becoming a reality. Indeed, the white paper issued by the Libra Association in 2019 explicitly states that the Libra cryptocurrency would resemble a currency board. While that is correct in broad terms, Libra stumbled out of the gate and is not yet a reality.

Central banks are clearly feeling the competitive threat posed by the prospect of private currency boards, like Libra. Indeed, a 2019 report on digital currencies by the Official Monetary and Financial Institutions Forum in London and IBM presents results from a survey of 23 central banks. Half of the respondents indicated that they perceived the widespread use of decentralized, private, digital currencies as a real threat. As the central bankers put it, private currencies would potentially disturb the global financial system and undermine the sovereignty of monetary authorities. This is nonsense. What central banking authorities are actually worried about is competition from private, stable currencies.

The prospect of private currency boards which are either backed by stable fiat currencies or gold is a promising one. The competitive forces unleashed by private currencies would be a great stabilizer.

Excerpt from:

Its Time for Private Cryptocurrency Boards - National Review

NEW YORK, June 18, 2020 /PRNewswire/ --Ernst & Young LLP (EY US) announced today the launch of EY CryptoPrep, a cryptocurrency application that assists with US tax filings. This new Software as a Service (SaaS), web-based product is a fully automated, enterprise-grade crypto tax engine offering step-by-step guidance through the crypto tax process.

EY CryptoPrep supports many major cryptocurrency coins and exchanges. Aggregating and reconciling transaction data, it applies appropriate tax rules to deliver a detailed account of cryptocurrency capital gains or losses. It then provides a completed Form 8949 for all applicable tax years. The core technology and service are also available to clients as a managed service through EY TaxChat and the EY Blockchain Analyzer.

"Our clients increasingly hold and trade crypto assets, creating the need for an innovative solution to address the evolving complexity around filing crypto taxes," said Marna Ricker, EY Americas Vice Chair of Tax Services. "TheEY Foundry, our internal corporate venturing unit, created EY CryptoPrep to modernize the crypto tax accounting process."

Cryptocurrency transactions trigger tax filing obligations on the basis of the resulting capital gains or losses. EY CryptoPrep calculates crypto responsibilities for the current tax year and even enables users to submit amended returns for prior years to reconcile previous tax liabilities.

"EY CryptoPrep expands our innovative portfolio of successful new digital businesses," said Chirag Patel, EY Foundry Leader. "EY CryptoPrep is another great showcase of our commitment to address the evolving needs of our clients."

About EY

EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Information about how EY collects and uses personal data and a description of the rights individuals have under data protection legislation are available via ey.com/privacy. For more information about our organization, please visitey.com.

This news release has been issued by Ernst & Young LLP, a member firm of EY serving clients in the US.

SOURCE EY

http://www.ey.com

See more here:

EY Launches First-Of-Its-Kind Cryptocurrency Reporting App - PRNewswire

Blockchain analysis is quite useful when conducting investigations into cryptocurrency-related transactions. It has also become essential when determining whether digital asset service providers are complying with application regulatory and compliance guidelines.

Blockchain security and analysis firm Chainalysis says that it uses special software tools to analyze digital currency markets in order to find usage patterns and inform investment decisions.

The Chainalysis team argues that transparent blockchain analysis is a key benefit of cryptocurrency as a new asset class. Thats because these insights can only be derived when conducting cryptocurrency transactions which are usually recorded on transparent ledgers.

Chainalysis confirms that, as of June 2020, there are approximately 18.6 million Bitcoins that have been mined (out of an algorithmically capped 21 million).

About 60% of all Bitcoin (BTC) in circulation is currently held by entities (people or businesses) that have never sold over 25% of Bitcoin theyve ever received. These entities have also been holding onto their cryptocurrency holdings for many years, the Chainalysis team has learned.

They also found that approximately 20% of all BTC in circulation has not moved from its current set of addresses in five years or longer. They believe this may be Bitcoin that has been lost forever due to users misplacing or losing their private keys, which is the only way anyone can access their Bitcoin, or other cryptocurrency, accounts.

The Chainalysis team concludes:

That leaves just 3.5 million Bitcoin or 19% of all mined Bitcoin that moves frequently, primarily between exchanges.

Most of the Bitcoins are held by entities who treat it as digital gold: an asset to be held for the long term, the blockchain security firm claims.

They pointed out:

But this digital gold is supported by an active trading market for those who prefer to buy and sell frequently. The 3.5 million Bitcoin used for trading supplies the market, and, in interaction with the level of demand, determines the price.

They argue that more investors are now seriously considering trading Bitcoin, especially after the halving event last month, which effectively reduced the BTC supply by 50%. Chainalysis notes that BTC is becoming more scarce following the recent halving.

While several reports have confirmed that institutional investors continue to invest in the Bitcoin market, Chainalysis reveals that retail users, or those who deposit less than $10,000 in BTC on exchanges at any given time, appear to be the large majority, accounting for 96% of all transfers sent to exchanges on an average weekly basis.

Despite the presence of so many small traders, professional traders still control the liquidity of the market, accounting for 85% of all the USD value of Bitcoin value sent to exchanges, Chainalysis reveals.

Professional traders remain the most significant contributors to large market price changes, which includes Bitcoins historic price crash on March 12-13, 2020, when the BTC price fell over 50% within 24 hours..

About 60% of BTC that hasnt been lost is reportedly held by a licensed digital asset custody provider, which the Financial Action Task Force (FATF) calls Virtual Asset Service Provider (VASPs). Chainalysis has learned that the majority of digital currency exchanges fall into this particular category, along with several hosted cryptocurrency wallets.

The blockchain company argues:

[This] reflects the growth of custodial cryptocurrency businesses as Bitcoin has gone more mainstream.

They also mentioned that out of the remaining 40% of Bitcoin in circulation, which isnt presently held by VASPs, 87% has passed through a VASP at some point.

They conclude:

Most people either hold their Bitcoin on VASPs, or acquire their Bitcoin from VASPs.

More details about how traders conduct Bitcoin transactions are available here.

Visit link:

60% of Bitcoin Is Held by Entities that have Never Sold More than 25% of their BTC Holdings: Report - Crowdfund Insider

16 June 2020: Rapper Akon has agreed on a $6 billion deal to build a futuristic new crypto city in Senegal.

Akon City, which will be built just outside the capital of Dakar, has been in the works for several years, with the musician announcing back in 2018 that he planned to construct a real-life Wakanda.

His ambitions look set to become a reality, as news emerges that Akon has awarded a construction contract for the metropolis.

Details are limited, but Akon City will include a hospital, mall, police station, school, and houses and hotels all designed in futuristic style, based on the renders Akon shared via Instagram.

The musician is also planning a solar power plant, suggesting the new city will prioritise green energy. Inhabitants will buy goods and services using Akons own cryptocurrency AKoins, which will form the basis of Akon Citys economy.

Reports suggest the first phase will be completed by 2023, with a second phase finishing in 2029, by which point the city is expected to be up and running.

[Via Highsnobiety; h/t CNN]

Credit: Hussein Bakri/BAD Consultant/Semer Group

Credit: Hussein Bakri/BAD Consultant/Semer Group

Credit: Hussein Bakri/BAD Consultant/Semer Group

Originally posted here:

Akon is planning to build a cryptocurrency-powered city in Senegal - The Spaces