Monthly Archives: May 2020

Economic growth figures are starting to trickle in and, as expected, theyre bad. Really bad. This past week theU.S. reportedQ1 GDP growth as -4.8%.Italys GDP fell-4.5%,Spain came inat -5.2% andFrance trumped thatwith a whopping -5.8%. And thats just warming up Christine Lagarde, head of the ECB,has warned euro-area GDP could fall by as much as 15% in Q2.

And yet stock markets in the U.S. and Europe closed up on the week, in spite of the inevitability the next quarter will be worse still.

You're readingCrypto Long & Short, a newsletter that looks closely at the forces driving cryptocurrency markets. Authored by CoinDesk's head of research, Noelle Acheson, it goes out every Sunday and offers a recap of the week with insights and analysis from a professional investor's point of view.You can subscribe here.

This could be partly due to the concentration of market capitalization nearly 25% of the S&P 500 market capitalization is from five tech companies, which arguably will do relatively well from more people staying at and working from home.

Or, it could be because the stock market has broken all ties with the actual economy. The aforementioned concentration of the S&P 500 is intensifying, fueled by the dominance of passive investing, which means its performance does not reflect that of most of its constituents. And the moral hazard posed by the governments willingness to bail out companies in difficulty suspends the need to scrutinize balance sheets and evaluate viability.

But reality doesnt stay suspended forever, no matter how much we wish it would. Eventually the abrupt slowdown of economic activity will feed through to numbers investors cant ignore, and the current price/earnings (P/E) valuations will start to look absurd.

This is where bitcoin comes in. Its underlying technology and monetary system make it one of the few investable assets that is immune to the economic fluctuations we have ahead.

First, its P/E ratios will never look absurd because it doesnt have any earnings. Nothing to get hit there.

Second, its use will not be curtailed by lack of customer mobility users can transact from anywhere. In fact, logistical constraints could boost interest in bitcoin transactions from those who normally hand over physical cash (although why they would want to if people arent moving around is another question).

Third, its market valuation is not susceptible to artificial support from governments trying to keep investor (and voter) spirits up.

This does not mean bitcoins price will keep going up while other prices come down. We saw back in March that when things get bad in markets, bitcoin also suffers. Its price is driven by sentiment.

But it is also driven by expectations of future adoption and demand, which are unrelated to the drivers of demand for most other investable assets.

In terms of fundamentals, bitcoin has nothing to lose in the upcoming crisis no income, no debt and its future adoption does not depend on happy and confident consumers. Just the opposite, in fact.

The growing awareness of this, combined with heightened media attention due to theupcoming halving, could be one of the reasons behind this weeks recovery. Or perhaps it is being swept along in the wave of inexplicable optimism in traditional markets.

Should that turn south, bitcoin is likely to suffer in the sentiment-driven short term. Longer term, however, fundamentals tend to surface, and those that drive bitcoin are radically different from those that drive traditional markets.

Talk about marching to your own beat.

Not that big a deal

One argument in favor of the bitcoin price rallying after the halving is that of supply and demand. Assuming demand is more or less constant (I know, but work with me here), when supply drops the price should go up. Basic economics you remember that graph from high school, right?

After the halving, there will be fewer new bitcoin entering the market every day. Since miners need to sell part of their hard-won new bitcoins to meet expenses, some of the sell pressure comes from miners. If they are selling fewer bitcoins (because they have fewer bitcoins to sell), then there is less supply meeting a constant demand and the equilibrium price moves up.

Fine, but one part of this model is already obviously unstable demand is not constant, not by a long stretch.

Even so, there is another overlooked weakness: The dent in sell pressure is negligible.

Post-halving, there will be 6.25 fewer new bitcoins entering circulation with every block. Assuming a new block every 10 minutes, that translates to approximately 900 fewer new bitcoins a day.

Considering the number of bitcoins transferred on-chain in April was an average of over 270,000 per day, 900 less wont make much of a difference to the supply curve in that simple basic price equilibrium graph.

Any positive halving impact is more likely to come from increased awareness and trader interest resulting from the media attention. The juxtaposition of what is becoming known as a quantitative hardening against a quantitative easing, combined with growing unease about the latter, is likely to transform this media-fueled attention into a lasting interest from investors, analysts and economists.

What is unclear is whether any price momentum from the halving would be enough to offset a hit to general sentiment from broader macro concern. As always in investing, ones individual time horizon is everything.

Anyone know what's going on yet?

In spite of a stream of bad news on employment, production and earnings, the S&P 500 had its strongest April since 1987, possibly floating on the stimulus laughing gas. European indices also had a good month, as economies started announcing tentative steps towards opening up their economies and electricity consumption started edging up.

As April turned into May, markets started to retreat, perhaps digesting the recent gains and perhaps unnerved by a new anti-China belligerence from the U.S. and earnings warnings from tech companies. Gold continues to play the inflation game but with less enthusiasm and some profit taking it remains to be seen how it would perform if stocks head south again. And West Texas oil had its first positive week in about a month as confidence gathered around the production cuts, although there could well be more turmoil there as the next futures expiries approach.

As you can see in the chart above, bitcoin had a particularly strong month.

The jump this week gave bitcoin its best April in years, with data suggesting this rally is largely fueled by U.S. investors, with growth more in spot volumes than derivatives.

And a lack of foreign reserves has pushed countries such as Lebanon and Turkey towards currency crises, which remind us that a strong dollar impacts much more than just FX markets. Whats happening in Lebanon, where anti-government protests have turned violent and triggered the closure of the capitals banks, will become a textbook example of the risks of centralized finance for years to come.

(Note: Nothing in this newsletter is investment advice. The author owns small amounts of bitcoin and ether.)

Chain links

CoinDesk Research has published its first in a series of deep dives into listed crypto companies. Were starting with Hut 8, one of the largest listed bitcoin miners, and its financials and recent operational shifts reveal some of the hurdles bitcoin miners struggle with in capitalizing their business while maintaining margins.

Preston Pysh looks at investment opportunities in a market increasingly manipulated by government printing, predicting that a break will be triggered either by social unrest or a natural transition to a different form of money. TAKEAWAY: Preston is not a crypto enthusiast (among other things, he hosts the podcast We Study Billionaires), but he is bullish on bitcoin largely as an alternative to an increasingly debased dollar this makes his take particularly interesting for those managing diversified portfolios, which should be everyone.

How many of a projects contributors have to be hit by a bus for the project to stall? Introducing the bus factor, a new metric that measures resilience. Really. TAKEAWAY: Actually, its a cool concept, intriguingly expanded on here by analyst Hasu. The higher the bus factor (the more widely distributed the code development), the easier a network is to replicate. The lower the bus factor (the more concentrated its control), the greater the risk. A couple of years ago Twitter woke up to a mercifully false rumor that Ethereum creator Vitalik Buterin had been killed in a car accident. (It didnt involve a bus as far as I know.) The news pushed ethers price down 15%. These days the impact would probably be different (although please be careful, Vitalik), but the anecdote shows that this is a metric worth watching.

The city of Ya'an, in China's mountainous Sichuan province, is publicly encouraging the blockchain industry to help consume excessive hydroelectricity ahead of the summer rainy season. TAKEAWAY: This highlights how excess energy from hydroelectric and natural gas plants can bring down operating costs for miners, making their sector crucial to the maintenance of the bitcoin network more profitable and less vulnerable to price swings and halvings.

Bitcoin futures and bitcoin options both had their most active day since the crash on March 12, according to derivatives data provider skew.com. TAKEAWAY: To be honest, Im not sure what this means, but it feels significant.

Coin Metrics presents free float supply, which adjusts supply measurement by taking out founding tokens and vested tokens, as well as those that are inactive, burned or probably lost. TAKEAWAY: The result is a measure of circulating tokens, a more reliable gauge of a networks size and liquidity. Bitcoins free float supply, according to Coin Metrics, is over 4 million less (over 20% less) than the reported figure, which implies that its velocity (the transaction rate compared to the amount outstanding) is higher than many have calculated.

Blockchain analytics firm Glassnode has introduced a new metric called Glassnode On-Chain BTC Index (GNI), which aims to link price performance to network fundamentals. TAKEAWAY: Any fundamentals-tracking index is subjective, no matter how much rigor goes into selecting and quantifying the components. However, as long as the methodology is consistent, they can provide valuable information about trends and shifts, and at first glance the GNI does a good job of taking into account the principal value drivers of sentiment, liquidity and network health. The index recently turned from bearish to neutral, which is itself a bullish sign.

Large crypto investors, popularly known as whales, seem to be accumulating bitcoin amid the ongoing price rally. TAKEAWAY: Although an imperfect indicator, this can be interpreted as bullish, as high-net worth individuals or funds appear to be adding to or taking new long positions in bitcoin, perhaps in response to the monetary turmoil in the fiat world.

Genesis Capital* released its Q1 lending report, which highlights more than $2 billion of new loan originations, twice the figure for the previous quarter. This brings their cumulative amount lent to $6.2 billion. TAKEAWAY: Those are substantial figures, which point to a deepening maturation of the space. The report is worth a read, especially as it gives insight into the timeline around the March 12 crash, and how Genesis handled the turmoil. It also confirms that the lender has tightened credit, given the market uncertainty. This is likely to be temporary and comes as a relief the sector needs strong lenders, as leverage can fuel growth but can also bring it tumbling down if it has to unwind suddenly.(*Genesis Capital is owned by CoinDesk's parent company, DCG.)

Leigh Cuen spoke to several crypto custody and wallet providers about the uptick in activity they have seen since the beginning of the lockdown. TAKEAWAY: Growing interest in off-exchange custody solutions implies a growing interest in holding crypto assets, rather than just trading them. Some of the exchanges Leigh spoke to cater mainly to institutional clients, but others have a wider base, which implies that interest in bitcoin is spreading amongst all types of investors.

The second fund of a16zs crypto division has raised $515 million, more than the original target of $450 million and considerably more than the $300 million raised by the first fund, which launched in 2018. The investments will focus on next-generation payments, decentralized finance, new monetization models and the concept of a decentralized internet. TAKEAWAY: While this is a crypto venture fund, investing in startup equity and tokens without the intention to trade, this raise is bullish for the sector as it implies a belief that at least some of the beneficiary blockchain companies will have viable businesses.

Silvergate Bank added 46 crypto customers in the first quarter, bringing the total to 850, largely institutional investors. The number of transactions more than doubled in Q1 vs Q4, and was up more than 3x vs the same period in 2019. TAKEAWAY: One intriguing disclosure in the report was the mention of a lending service called SEN Leverage, currently in pilot mode, which will allow bank customers to obtain U.S. dollar loans collateralized by bitcoin. Crypto as collateral is a fascinating area to watch. On the one hand, the bearer status of bitcoin, its relative liquidity and its ease of transfer make it an ideal collateral from a lenders point of view. On the other hand, current legislation makes it very difficult in practice. This paper by Xavier Foccroulle Menard, posted on SSRN this week, gives a great explanation as to why. (TL;DR: its to do with UCC definitions of collateral guess what, bitcoin doesnt fit.)

Hangzhou-based Ebang International Holdings, one of the leading manufacturers of bitcoin mining equipment, has filed with the Securities and Exchange Commission for an initial public offering of up to $100 million. TAKEAWAY: There does seem to be a trend amongst Chinese companies of trying to list in the U.S.,in a bid to broaden their geographical diversification. Curiously, this could encourage the shift of the epicenter of bitcoin mining away from China and towards the U.S.

CFTC commissioner Brian Quintenz, one of the organizations crypto supporters and who advocated for self regulation in the crypto industry, will not seek renomination when his post ends this month, and will leave the regulatory organization by late October. TAKEAWAY: SEC commissioner Hester Peirce, who has argued in favor of bitcoin exchange-traded funds and also favors a more supportive approach to innovation, is also nearing the end of her term. As far as I know, her plans have not been made clear yet, and we dont know who will be replacing Quintenz but this could mark a subtle change in tone at one of the most powerful securities regulators.

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 more here:
Why Bitcoin's Big Rally Is a Sign of Its Resilience - CoinDesk

In advance of her Crypto Across Emerging Markets panel at Consensus: Distributed, Leigh Cuen is writing a three-part column on how cryptocurrencies are used in the developing world. In this first part of the series, she looks at the Middle East.

It is a truth universally acknowledged by pundits on Crypto Twitter that emerging markets are more likely to see revolutionary bitcoin usage, at least in the near future, than Silicon Valley.

However, the term emerging markets encompasses most of the planet, excluding a handful of wealthy nations. For instance, even if fiat-denominated volumes are dwarfed by Asian whales or U.S. institutions, scrappy crypto traders in Turkey have a disproportionate impact on the global bitcoin economy.

Generally speaking, regions with weak states and educated diasporas see more grassroots adoption. For example, Lebanese entrepreneur Michel Haber said most of the 26 remote workers involved with his web services startup, cNepho Global, now prefer bitcoin paychecks.

Haber has already been paying some developers this way with bitcoin from Beirut's grassroots trading networks for two years. Now that most workers would rather receive bitcoin, he encourages colleagues to get mobile wallets.

This is no longer a fringe outlook.

The Arab Weekly ran a column in April about how the collapsed banking system is destabilizing Lebanon. Protests surrounded the central bank in April, and protests around bank branches even turned deadly. The situation continues to simmer.

The peer-to-peer bitcoin market is very robust because the Lebanese banking system has failed and people have more cash than the banks do, Haber said. Because of coronavirus, you can't really wait at the bank anymore. They're not sure the Lebanese bank will actually give them the money.

This doesnt mean bitcoin will easily replace local currencies, however. As witnessed in Iran, once home to a thriving bitcoin mining industry and retail usage, authorities curtailed usability once mainstream adoption grew.

But rather than stamp out demand for cryptocurrency, crackdowns may merely change its manifestation. Some people now use bitcoin for savings and altcoins for transactional alternatives. Markets in places like Iran and Argentina now see increasing demand for stablecoins.

Likewise, Argentinian crypto exchange founder Federico Ogue, CEO of Buenbit and Buendolar, said many users who are buying cryptocurrency for the first time are attracted to dollar-denominated stablecoins.

More coverage on cryptocurrency in the Middle East:

Stablecoin volatility

In regions with volatile currencies and scant access to dollars, demand for stablecoins is up.

According to a bitcoin trader in Iran, who asked to remain anonymous for safety, plummeting oil prices havent increased local demand for bitcoin. This is partially due to government efforts to promote the local stock market. Yet, as the dollar exchange rate fluctuates and paper bills become scarce, Tether stablecoins (USDT) sell for more than a dollars worth of Iranian rials.

The government is trying to push financial market demands into Tehran stock exchange to avoid increasing demands in currency or gold markets, the anonymous Iranian trader said. Local [crypto] exchanges changed [USDT] rates artificially to get more profit, also demand was so high compared to the low supply of USDT in peer-to-peer exchanges.

The most desirable aspect of the stablecoin isnt any stability mechanism or collateral, its simply the network effects. After all, the reason many of these users turn to cryptocurrency is because they want a global asset, regardless of whether that takes the form of paper bills or software.

CoinDesk senior reporter Leigh Cuen hosts the Crypto Across Emerging Markets panel on May 11 at 7:30 p.m. ET at Consensus: Distributed, CoinDesk's first virtual, free conference. Register here.

Dapps

The Middle East is also one of the few regions where decentralized applications (dapps) that arent focused on gambling are still attracting routine users.

Dmail founder Mohamed Abdou, whose Egyptian team built a privacy-centric email service using Blockstack, said the dapp now has 15,000 active monthly users. As such, Dmail raised a $500,000 seed round in April, an amount which goes much further in Cairo than Silicon Valley.

Users will be able to exchange emails, do text chat, voice calls, video calls, invoices and collect fees in crypto, Abdou said of Dmails 2020 roadmap. Although Dmail doesnt collect user information (and therefore doesnt know where users are based), this Egyptian project was inspired by a local context where remittances and international payments offer a lifeline to an economy battered by depleted foreign currency reserves.

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 this article:
Bitcoin in Emerging Markets: The Middle East - Consensus - CoinDesk

The number of bitcoin ATM locations has been growing rapidly amid nationwide lockdowns and the coronavirus crisis. With hundreds of new machines added each month, there are now more than 7,700 bitcoin ATMs spread all over the world. A new bitcoin ATM operator also installed its first bitcoin machines in April.

Many bitcoin automatic teller machines (ATMs) were installed across the globe in the month of April despite nationwide lockdowns, rising numbers of covid-19 cases, and global economic crisis. According to the bitcoin ATM tracking website Coinatmradar.com, there are now 7,729 cryptocurrency ATMs in 72 countries. Moreover, there are also 148,849 services allowing people to buy (and sell) cryptocurrencies, such as newspaper and mall kiosks.

The country with the most bitcoin ATMs is the U.S., which has 5,749 machines nationwide. Among American cities with the most bitcoin machines are Los Angeles (558), Chicago (292), Atlanta (283), Miami (263), Houston (250), Detroit (246), Dallas (195), Philadelphia (131), Boston (126), and Las Vegas (126).

After the U.S., Canada comes second with 771 bitcoin ATM locations, followed by the U.K. with 296 locations, Austria with 145 locations, Spain with 84 locations, Switzerland with 83 locations, and the Czech Republic with 69 locations. In Canada, the cities with the most bitcoin ATMs are Toronto (249), Montreal (110), and Vancouver (87). Germany, which started regulating bitcoin ATM businesses early this year, now has 34 machines, according to Coinatmradar. One machine is in Berlin, one in Munich, and three in Frankfurt. In March, German financial regulator BaFin shut down unauthorized bitcoin ATMs in the country.

At the beginning of April, there were 7,384 cryptocurrency ATMs, the tracking website details. During the month, 435 machines were added and 69 were closed down, leaving a net increase of 366 ATMs, or a 5% increase from the previous month. Most of the new bitcoin ATMs 351 machines were installed in the U.S., followed by Canada with 12 more machines. Austria, Australia, and Vietnam got two more ATMs each. Slovakia, Hungary, and Slovenia got one more machine each. Meanwhile, one machine was removed from Germany, Mexico, and Malta while the U.K. lost three machines. A number of countries in Asia also have bitcoin ATMs, according to the tracking website. For example, Hong Kong has 57 bitcoin ATM locations, Taiwan has 10 machines, Singapore has eight bitcoin ATMs, Vietnam has six, the Philippines has four, and Thailand has two.

The number of bitcoin ATMs has grown 21% since the beginning of the year. According to Coinatmradar, there were 6,377 machines at the beginning of January. The month saw an increase of 328 bitcoin ATMs. February started with 6,665 machines and 339 others were added during the month. March began with 7,010 machines and 376 were added during the month as the International Monetary Fund (IMF) declared a global recession. In addition, several indicators have shown that the U.S. entered into a recession in mid-March.

There are currently 560 bitcoin ATM operators and 42 producers. Out of all 7,729 bitcoin ATMs, Genesis Coin tops the producer chart with its machines installed in 2,570 locations, followed by General Bytes with 2,283 locations, Bitaccess with 692 locations, Lamassu with 482 locations, and Coinsource with 400 locations. With the rising popularity of bitcoin ATMs, more businesses also want to host them on their premises.

During April, most of the cryptocurrency ATMs installed were Genesis Coin machines (155 ATMs). The next most-installed machines were Bitaccess with 91 new ATMs, followed by General Bytes with 72 ATMs. Meanwhile, six Chainbytes machines were removed in April.

As for operators, Coin Cloud installed 89 bitcoin ATMs, Coinflip added 54 machines, Bitcoin Depot 39 machines, National Bitcoin ATM 27 machines, Bitcoin of America 26 machines, Rockitcoin 25 machines, and Bitstop 19 machines. Meanwhile, U.S.-based operator CMJ installed its first six machines during April.

If you are trying to find the bitcoin ATM nearest to you, the Coinatmradar website provides a map showing where all bitcoin ATMs are in the world. It also gives you the option to view only one-way (buy only) machines or two-way (buy and sell) as well as select to view only the machines supporting specific coins, such as BTC, BCH, ETH, DASH, LTC, ZEC, XMR, and DOGE. In addition, all bitcoin ATM locations are listed by city and country so you can look up all the bitcoin machines near you.

What do you think about the recent surge in bitcoin ATM locations worldwide? Let us know in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons, Coinatmradar

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

Go here to read the rest:
Bitcoin ATM Locations Surge to Over 7700 Worldwide Amid Global Crisis - Bitcoin News

Bitcoin has flippened USD on Squares Cash App, sort of.

As reported in the publicly traded fintech companys first-quarter earnings Wednesday, Cash App brought in $222 million on all its other fiat-powered services in Q1. Meanwhile, revenue from bitcoin was $306 million, the first quarter in which bitcoin revenue surpassed all other revenue on the app.

In the first quarter, Cash App gross profit grew 115% year over year, the shareholder letter reported.

Gross profit on Cash App, however, remains to be found primarily outside of crypto. Of Squares $222 million in non-bitcoin revenue, $178 million of that was profit. The Cash App saw one of its best quarters yet for new users in the first quarter of 2020, across its many different services.

Bitcoin profit through Squares Cash App was $7 million in the first quarter of 2020. It earned $8 million in bitcoin profit through the whole of 2019.

Still, on the revenue side, the year-over-year growth in bitcoin sales was steep.

In a filing with the U.S. Securities and Exchange Commission, the company noted:

Bitcoin revenue for the three months ended March 31, 2020 increased by $240.6 million or 367%, compared to the three months ended March 31, 2019. The increase was due to growth in the number of active bitcoin customers, as well as growth in customer demand.

Total revenue from bitcoin in the first quarter was $306 million, versus $65 million in the first quarter of 2019. Square earned $178 million in bitcoin revenue through the prior quarter, the last of 2019.

Total revenue for Square this quarter was $1.38 billion, roughly 43% over what it earned in the first quarter of last year. Square had $535 million in gross profit for the quarter, but a $105 million net loss.

Square CEO Jack Dorsey described a few of the ways that the Cash App has found growth during the COVID-19 crisis.

For example, by making it easy to do direct deposits into Cash App, the firm saw enormous growth, Dorsey said in Wednesday's earnings call. Direct deposit users were more likely to use more of Cash's other services, such as peer-to-peer payments and bitcoin purchsaes. Further, Square collaborated with companies like Twitch and Spotify so fans could directly support their favorite creatives.

"We have reached a very mainstream influencer audience," Dorsey said. "And because of the simplicity, because of how we handled the stimulus check and because of everything you can do within the app including buying stocks and bitcoin and Cash Card, we think we'll benefit and draft off a lot of trust, a lot of love, for what it offers and what it can do. And word of mouth is definitely our friend here."

Zack Seward contributed reporting.

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.

Link:
Bitcoin Revenue in Square's Cash App Tops Fiat Revenue for First Time in Q1 - CoinDesk

On May 7, the decentralized finance (defi) startup General Protocols revealed the team has raised over $1 million from investors. The creators of General Protocols have introduced innovative projects on the Bitcoin Cash network such as Anyhedge, and have also participated in helping forward the Bitcoin Cash Node (BCHN) project and Flipstarter.cash.

The BCH community was pleased to hear that a startup dedicated to the Bitcoin Cash blockchain and decentralized finance (defi) has raised $1 million this week. The company called, General Protocols, is behind the Anyhedge project which is a blockchain-enforced synthetic derivatives protocol for Bitcoin Cash (BCH). News.Bitcoin.com reported on the project during the first week of April. According to the teams press release, the latest funding stems from the cryptocurrency trader Marc De Mesel and a variety of other investors. The team is thrilled to get funding to push the startups goals forward in order to deliver defi to the BCH community.

We are delighted that aligned investors are supporting us in our vision to bring defi to Bitcoin Cash, said John Nieri a.k.a. emergent_reasons, President of General Protocols. We are building a team of dedicated supporters of peer to peer electronic cash here at General Protocols.

General Protocols team members helped with the construction of Flipstarter.cash, a noncustodial fundraising platform. Additionally, the startup also volunteered efforts toward the new Bitcoin Cash full node implementation called BCHN. The project Anyhedge aims to be the first defi protocol on any branch of Bitcoin and the platform will launch in cooperation with Cryptophyls new noncustodial exchange, Detoken.

Further two former Bitcoin.com team members Marcel Chuo and Rosco Kalis have joined the General Protocols company. Kalis is well known for his work on the Cashscript protocol in order to create a new generation of smart contracts on the Bitcoin Cash network. Chuo will handle business relationships and his background includes global expansion and coordinating with well known tech firms like HTC. During the investment announcement for $1 million into General Protocols infrastructure, Kalis said he looks forward to working on the blockchain-enforced synthetic derivatives protocol for Bitcoin Cash.

Im excited to be working on Anyhedge with the great team at General Protocols, Kalis explained during the announcement.

What do you think about the $1 million dollar investment into General Protocols? Let us know in the comments below.

Image Credits: Shutterstock, Pixabay, Wiki Commons, General Protocols, Anyhedge

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 more from the original source:
Decentralized Finance Startup Focused on Bitcoin Cash Raises $1 Million for Expansion - Bitcoin News

We are at a turning point in history. The coming months will show how institutional investors will react in the medium term to the countless rescue packages in the wake of the coronavirus crisis. One thing is certain: States and central banks have been hard-pressed for solutions. Moreover, it looks like their efforts have been exhausted already at the start. Should investors end up losing faith in the measures taken, the consequences would be far more dramatic than a short-term stock market crash.

No one can foresee today what our future monetary system will look like, but the history of money has been marked sometimes by radical system changes. Todays historical interventions in the free market are unparalleled, especially given their magnitude, and will no doubt in hindsight be seen as the beginning of the end of our current monetary system with its fiat currencies made out of nothing.

Is Bitcoin (BTC) digital gold and a safe haven currency? Yes, now more than ever before.

Bitcoin was created in 2008 in response to the financial crisis, and the present-day chaos on the global financial markets is the first major test of its ability to assert itself as an alternative and a new asset class. However, when liquidity is needed, as it is now, everything is sold, especially risky assets. John Bollinger, the creator of the so-called Bollinger Band, a technical indicator for price developments, rightly noted that in times of crisis, investors will sell whatever they can sell, and only after assets have been turned into cash is an investment made in crisis-proof assets e.g., gold.

In contrast to state-run monetary watchdogs who have been trying to safeguard a continuously functioning market by pumping in avalanches of money (and not just since the coronavirus outbreak), the pricing of Bitcoin is regulated without any intermediary interference and is solely based on supply and demand. There is also a cap to the number of Bitcoins that can be created 21 million and this means that in contrast to traditional fiat currency, no new Bitcoins can be arbitrarily printed.

New Bitcoins are mined in the same way that other commodities are e.g., gold but through a complex and clearly defined process. No one is able to alter the number of newly generated Bitcoins.

It will be a clear advantage for our traditional monetary system to have alternatives to fall back on in the likely event of hyperinflation. Creative instruments, such as helicopter money and similar interventionist measures, are not possible in the same way with Bitcoin, and neither governments, (central) banks nor other institutions are able to manipulate and/or change the parameters of this new decentralized asset class.

Since the hegemonic power of the United States has been also weakening, the topic of reserve currency will at some point be on the table. Already today, it is foreseeable that Bitcoin and other cryptocurrencies will compete with digital currencies issued by state governments.

Is Bitcoin a global digital currency? This might sound like science fiction, but it is actually not that unfounded.

Meanwhile, institutional investors have started to see the attraction of crypto assets. However, in times of crisis, they are often quick to withdraw their capital from risky investments, and Bitcoin is still classified as such by the majority.

Personally, I am convinced that Bitcoin, as well as other digital assets, can only benefit from the current developments and their dramatic long-term consequences.

The views, thoughts and opinions expressed here are the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

This article was first published in German by the Swiss monthly magazine Schweizer Monat

Marc P. Bernegger founded his first online company in 1999, followed by several tech companies, which he later sold. He got into Bitcoin early in 2012 and has been involved in digital assets ever since. He is a board member at Crypto Finance AG and the Swiss Blockchain Federation, and he is a co-founder of the Crypto Finance Conference in St. Moritz.

More here:
Bitcoins Gut Check: The Time of Crisis as the Moment of Truth - Cointelegraph

Also known as a web wallet, an online wallet is a way ofstoring your bitcoinon the internet. In other words, its a wallet that runs on your browser, just like a website. Online wallets are regarded as more vulnerable to hacks than other types of wallet, but they are very convenient as you can access your wallet anywhere as long as you have an internet connection.

Web wallets are designed to be very user-friendly. You begin by signing up with your preferred provider, which is simple and quick. You will then access your account with a username and password. Sending or receivingbitcoinis easy because all you need is your wallet address (for receiving money) and the address you want to send bitcoin to (for transferring out).

Yes, online wallets are very much like online banking portals for bitcoin. Like online banking, you can log on with your password and carry out transactions, see your balance, and look at your transaction history on the website of your wallet provider.

When it comes to bitcoin wallets there are a number of options from which to choose:

Yes, online wallets are completely free. All you need to do is choose your preferred provider, sign up, and start using your wallet.

There are no additional fees that you have to pay to the provider in order to use your online wallet. However, theres a small transaction fee charged when you spend bitcoin (but not when you receive it). These transaction fees are to pay the miners who verify the movement of bitcoin on the blockchain. Typically these are very low, usually around 0.2mBTC (which means two thousandths of a bitcoin under 2). Most wallets will also give you an option of paying a higher amount in order to motivate miners to verify your transactions faster.

There are many different web wallet services to choose from, heres a small selection of some of the best known:

Yes, you will find online wallets, such as Blockchain, that support a variety of different cryptocurrencies includingEthereumand bitcoin cash. The widest variety of coins, however, will usually be able to be held in web wallets that have integrated exchanges, such as Coinbase.

In some cases, online wallets are exchanges. If you use an option such as Coinbase, you can not only store your coins, but also buy andtrade other cryptocurrenciesthat are then automatically held in the wallet. Other online wallets that hold multiple currencies will often allow you to transfer different currencies between each other (for instance changing bitcoin into litecoin) within the wallet.

Yes, but exactly how will depend on your chosen platform. As a web wallet is like an online account, each company will have security features that allow you to gain access in case you forget your password. Wallets such as Blockchain allow you to set up your recovery seed and enter the 12-word recovery phrase when you lose your password in order to create a new wallet with your balance. Others such as Coinbase have an option for resetting your password, where you get an email with a link to set up a new password. Just to be safe, its better you write down your password somewhere and keep it safe in case you ever forget it.

Setting up an online bitcoin wallet is much like registering for an account on any other online service. Every provider will be slightly different, but usually this is how it will go:

Web wallets are the least secure type of wallet and are not recommended for storing anything more than a small number of bitcoins. The major risks associated with them are being targeted by hackers, as their servers will hold the information of a lot of different bitcoin wallets. This isnt to be alarmist, all online wallet providers will have strong security, but the risks are there.

The main advantage is being able to access your bitcoin wallet anywhere and on any device, provided you have an internet access. Also, the fact that many online wallets are exchanges means you can change your coins into othercryptocurrenciesand react quickly to market fluctuations to cash in on the profits.

It depends. Yes, if you want to be accessing your coins quickly for the purpose of making payments and exchanging; no, if you are looking for a safer option to store a large amount of coins. If your goal is long-term investment, you are better off with a hardware or paper wallet. An online wallet is only recommended for holding a small amount of bitcoin.

Right here. We have reviewed all the options to help you narrow down to the best online wallet for your needs. Go ahead and read through our reviews to find your perfect web wallet. Or continue to the next lesson.

Read more here:
What is an online bitcoin wallet? - iNVEZZ

Governments and law enforcement agencies have been alerted to the possible illicit use of the pseudonymous Bitcoin (BTC) and cryptocurrencies ever since the notorious darknet marketplace Silk Road was shut down permanently by FBI, which seized more than 144,000 BTC derived from transactions made in the marketplace. This has led to governments and relevant authorities enforcing Know Your Customer (KYC) and Anti-Money Laundering (AML) compliances on the cryptocurrency market and services. However, many law-abiding Bitcoin users are concerned for their rights to privacy due to such measures.

Users who are privacy conscious have sought out privacy tools which could protect their personal information and Bitcoin transaction activities. It is through the growing demand that Bitcoin privacy add ons such as Bitcoin mixers have seen a positive growth and usage in recent years, as more people looking into buying the pseudonymous cryptocurrency are increasingly suspicious of government surveillance and the trust with Fiat currencies such as US Dollars. As a result, MyCryptoMixer (MCM) saw a surge of Bitcoin mixing volumes in less than 12 months since its inception.

It is important to note that privacy should not be strictly associated with illicit use. According to a report by blockchain analysis firm Chainalysis, a mere 10% of funds sent to mixers come from criminal activities, while the rest were mixed for personal privacy reasons.

Priority tools for the privacy conscious

To the average user, the process of KYC and AML could infringe the fundamental privacy rights amid tightening regulations from governments seeking to comply with Financial Action Task Force (FATF) recommendations and enhanced AML requirements on regulated centralised exchanges like Binance and Coinbase, and even payment applications which accepts cryptocurrencies. Fortunately, there are a few privacy tools (such as VPNs, TOR browsers and privacy Bitcoin wallets) that can obfuscate a users transaction, making them fully anonymous and private. In particular, the Bitcoin mixer has been gaining traction due to its gradual learning curve, suitable for everyone to utilise.

Similar to cryptocurrency exchanges, it is known that there are some Bitcoin mixers, putting up a facade of protecting the users identity but were actually created to steal the Bitcoins from their victims. Therefore it is crucial to perform some due diligence checks on the mixing service provider before proceeding with the service. Reputable bitcoin mixers like MCM are known to offer effective and easy-to-use privacy features that offer an additional layer of privacy and anonymity for the users Bitcoin transaction, since all transactions on the public Bitcoin blockchain are transparent and accessible by anyone through a blockchain explorer.

MyCryptoMixer The Preferred Bitcoin Mixer of 2020

MCMs meteoric rise in the Bitcoin mixer market is likely due to its trusted and user-friendly platform when compared to other mixers in the market. Plenty of measures are in place to ensure that every mixed Bitcoin transaction is untraceable, thus promising its users by upholding complete anonymity and privacy in the process. They have garnered a decent fanfare of crypto advocates who valued privacy through Bitcoin mixing. According to anonymous feedback by their users, MCM has gained rapid recognition due to its user-focused and highly responsive customer service support.

In addition to that, MCM is available in both clear web and TOR networks, catering to the users preference of anonymity level. The user-friendly mixer does not require any account registration for obvious reasons, and that the log of every mixing process is automatically wiped off the database to further conceal each and every mixing done within MCM. Also, the user may select up to five different receiving Bitcoin addresses for the mixed coins, and he or she may customise the time delay and fund distribution to each receiving address.

The straightforward 3-step mixing process

MCM is known to have the most straightforward mixing process in the market, in which the entire process can be completed in about five minutes or less. As mentioned in the earlier paragraph, the user will have the option to select up to a maximum of five receiving Bitcoin addresses, adjust the time delay and fund distribution across the selected addresses. Unlike other mixers, the negligible service fee of between 0.5% to 5% is determined by the user.

Users are prompted to deposit a unique amount of BTC based on the mixers randomised mixing algorithm to make the transaction and activity pattern difficult to track by blockchain analysis tools for every mix. Once that is done, the user could download a letter of guarantee which serves as a warranty or status sheet on the exact details of the specific mix.

About MyCryptoMixer

Launched in 2019, MCM is a highly reliable and secure Bitcoin mixer designed to achieve full anonymity and privacy for anyone that engages with Bitcoin transactions. Within a year since its inception, it has seen a significant growth in the weekly mixing volume. As one of the most user-centric Bitcoin mixing service providers in the market, they are empowered to assure their privacy conscious users with a peace of mind amid tightening KYC and government surveillance in the digital age today.

For more information about MCM, you may refer to their walkthrough guide on how to get started with Bitcoin mixing.

Supporting Linkshttps://www.mycryptomixer.comhttp://mymixerxtukle6mo.onion

Contact Email Addressmycryptomixer@protonmail.com

This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

Image Credits: Shutterstock, Pixabay, Wiki Commons

The rest is here:
MyCryptoMixer 2020 - The Best Bitcoin Mixer Necessary To Protect User's Anonymity and Privacy | Press release - Bitcoin News

The Shanghai No. 1 Intermediate Peoples Court made a public announcement on May 6, 2020, about an appeal involving a Bitcoin (BTC) foreign property damage compensation dispute.

The second Court trials investigation into the matter confirmed that Bitcoin may be considered a digital asset. Therefore, it must have full protection under the law, the court ruled.

It added that all Bitcoin acquired via illegal transactions must be returned or compensated at a reduced rate.

As mentioned in the report, an ex-pat married couple living in Shanghai (Pete and Xiaoli Wang) were reportedly robbed at their apartment by four individuals a couple of years back.

The thieves had managed to force the couple to send their cryptocurrency to the attackers digital currency accounts.

The incident report stated:

These four (robbers) used methods of controlling the couples mobile phones, restricting their freedom, beating and threatening them and forcing the two to transfer all the 18.88 bitcoins and 6466 Skycoins they own.

At the time of the first court hearing, the accused had said they would return the Bitcoin and the Skycoin cryptocurrency stolen from the couple.

The court had sentenced the criminals to between 6 months and 15 days to 8 months in prison for the crime of illegally detaining the couple.

The court stated (at the time of the ruling) that if the offenders cannot give back the same cryptocurrency stolen in June 2018, then they must return the equivalent in local currency.

The robbers allegedly refused to accept the courts ruling and proceeded to appeal the decision.

They argued:

The current Chinese laws do not recognize the property attributes of Bitcoin and Skycoin, and do not regard Bitcoin and Skycoin as objects or property in the legal sense of China. Therefore, Pete and Wang Xiaoli do not have the right to request the return of property rights.

Nearly two years of battles in court led to the couple giving up on the possibility of getting their Skycoin holdings back. However, they still tried to get their Bitcoins back. The court has again ordered the thieves to return the couples Bitcoins.

In July of last year, Bitcoin also received legal recognition by a second Chinese court.

The Hangzhou Internet Court said Bitcoin qualified as virtual property.

The ruling came after a dispute between a cryptocurrency exchange and one of its customers who had allegedly lost the BTC they deposited on the trading platform.

View original post here:
Chinese Authorities Continue to Recognize Bitcoin (BTC) as A Digital Asset Entitled to Protection Under the Law in Latest Court Case - Crowdfund...

Iranian lawmakers have reportedly approved a plan to slash four zeros from the national currency, the rial, which has been falling sharply in value amid chronic inflation and the U.S. sanctions. The official currency will also be replaced. Economists are skeptical about how the changes will affect the Iranian economy.

The Iranian parliament has reportedly passed a bill to allow the government to cut four zeros from the national currency, the rial. The countrys weak currency and persistently high inflation have led to street protests since late 2017. According to Irans Students News Agency ISNA, a major news agency in the country:

The bill to remove four zeros from the national currency was approved by lawmakers.

Ali Rabiei, a spokesperson for the government of Iran, said in a tweet, Eliminating the four zeros is a necessary action to simplify financial transactions. According to reports, the Guardian Council of the Constitution is expected to ratify the law before it can take effect. Irans state TV noted that the Central Bank of Iran (CBI) will have two years to implement the changes removing rials from circulation and issuing tomans instead.

The governor of the Central Bank of Iran, Abdolnaser Hemmati, has promised to implement the reform as soon as possible, the Financial Times reported. He told the countrys parliament on Monday:

Currently, our money has a horrifying difference with euro and [one rial] equals 0.000006 The efficiency of the national currency has declined due to chronic inflation over five decades.

The changes are the outcome of a draft bill that Hemmati introduced early last year. The central bank governor noted that his countrys currency had been devalued 3,500 times since 1971. According to reports, the idea of removing four zeros from the national currency has been discussed since 2008, but it became a priority after the U.S. imposed sanctions on the country in 2018.

The value of Irans currency has been steadily declining since the Islamic Revolution in 1979 but that drop has accelerated in recent years fueled by U.S. sanctions. Since the Trump administration exited Irans 2015 nuclear deal and reimposed sanctions on the country in 2018, the value of Irans currency has fallen by roughly 60%. The Iranian currency was trading at about 163,000 rials per dollar on unofficial markets at the time of this writing. In addition, the coronavirus pandemic has contributed to a further devaluation of the rial since February. To evade sanctions, Iran has also turned to cryptocurrency. The country has approved more than 1,000 bitcoin mining licenses, including Iminer recently.

Under the plan, Irans official currency the rial will also be replaced by the toman, with one toman being equal to 10,000 rials, the central bank governor said Monday. While the rial is used in official documents, Iranians have always referred to their currency in daily conversation and business transactions as the toman, with one toman being equal to 10 rials.

The move has psychological significance on people who do not recognize the rial and always use toman, a senior businessman was quoted by the Financial Times as saying. Otherwise, it almost has no economic or financial impacts on the country other than bringing down the costs of issuing notes and coins. Saeed Laylaz, another economist, is skeptical about the plan, stating:

The change of the currency as well as dropping too many zeros will inadvertently create unnecessary fluctuations in the economic and social structures and will even fuel the inflation The central bank will drop four zeros but the inflation will quickly bring back two of the zeros.

Some people have also raised concerns that the changes would add extra expenses at a time when the government was already facing a budget deficit of between 30% to 50% for this coming fiscal year.

Paris-based Iranian economist Fereydoun Khavand explained that usually governments resort to changing the national currency as the last stage of an economic overhaul, citing examples such as what European countries did after World War II or Turkey in recent years. However, he pointed out that Iran has done the opposite due to the crippling effect of U.S. sanctions, which have severely limited the countrys ability to sell oil or to conduct international financial transactions, the media quoted him as saying. The economist added that under those circumstances, it is difficult for the Iranian government to make other basic economic changes, elaborating:

You typically fix the economy first and then change the currency The government is in a financial bind with no prospect of financial aid coming from outside or from inside so they are trying this.

Meanwhile, U.S. President Donald Trump is fighting Congress over a resolution requiring him to get approval before engaging in further military action against Iran. The nonbinding congressional resolution was introduced after Trump launched an airstrike that killed Iranian Gen. Qassem Soleimani.

What do you think about the changes Iran is making to its currency? Let us know in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons, The Jewish Press

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

Excerpt from:
Iran to Cut 4 Zeros From Its Currency Amid Chronic Inflation and US Sanctions - Bitcoin News