Monthly Archives: February 2022

One month into 2022 and the debate on cryptocurrency is already heating up, with calls for regulation causing a rift between jurisdictions that are crypto friendly and those that arent. Which will determine the future of the market?

Russian Deputy Prime Minister Dmitry Chernyshenko has reportedly signed a roadmap to regulate crypto operations in Russia. The news comes after Russias central bank published a consultation paper that proposed a blanket ban on crypto-related activity in the country.

The paper, titled Cryptocurrencies: Trends, Risks, and Regulation, states a wider adoption of cryptocurrencies creates significant risks for the Russian financial market. It says non-state-based currencies pose a threat to citizens well-being, through loss of investments as a result of market volatility, scams and cyber attacks.

Jurisdictions have grappled with the idea decentralised digital currencies provide an alternative to sovereign currency and thus pose a threat to central banks power over monetary policy.

Although Russia has stopped short of completely stifling operations inside its borders, the latest events follow a broader trend of nations struggling to embrace cryptocurrency. Future bans or regulations will determine the future of the industry.

China has banned cryptocurrency trading multiple times. An outright ban on crypto mining last year was a massive loss to the industry, as most crypto mining happened in China.

Mining involves running software on computer servers to solve cryptographic algorithms. This process validates transactions and maintains a shared record of transactions across the blockchain network. People who participate, the miners are automatically rewarded in cryptocurrency.

Mining is an international industry, and large capital outlay goes towards the land, power and infrastructure needed to set up mining warehouses.

Read more: Why is Bitcoin's price at an all-time high? And how is its value determined?

The mining ban in China drove miners to sell or ship their equipment overseas and invest capital in friendlier jurisdictions, particularly the United States. One consequence was the strengthening of the network, as mining operations were diversified. As such, future bans may have less of an effect on the market.

Currently, most Bitcoin mining occurs in the US, Kazakhstan, Russia, Canada, Malaysia and Iran. Some networks face great challenges. In Kazakhstan, for instance, power has reportedly been rationed away from miners to conserve energy during electricity shortages, forcing miners to leave the country.

Reports estimate this will cost Kazakhstans economy US$1.5 billion (or A$2.14 billion) over the next five years, including US$300 million in tax revenue.

Crypto has come a long way since Bitcoins anonymous launch in 2009. There are now thousands of cryptocurrencies, with an estimated total market cap of US$1.66 trillion (about A$2.36 trillion).

Its often stated, including in the recent report from Russias central bank, that the anonymity of cryptocurrencies enables illegal activity such as money laundering, terrorism financing and drug trade.

This isnt entirely true. In fact transaction history on public blockchains, such as Bitcoin and Ethereum (the largest by market capitalisation), is public.

Many governments (including those of Australia and the US) collaborate with large private blockchain analytics firms to monitor citizens crypto wallet addresses and transactions. They do this to mitigate risks of money laundering and tax evasion.

Read more: Around the world, regulators are realising Bitcoin is money

Contrary to popular belief, most cryptocurrencies arent anonymous; they are pseudonymous. If a persons identity is linked to their wallet address via a central touch point, such as a cryptocurrency exchange or an email, that wallet is traceable to the individual.

Research (commissioned by Zcash but carried out by the Rand corporation) found there isnt widespread illicit use of privacy coins preserving users anonymity.

Cryptocurrency continues to become increasingly mainstream as an investment asset class, technological infrastructure and a social experiment in non-state-based infrastructure.

With this, crypto communities hold growing influence in public policy debates. For example, crypto advocates were able to slow down a major federal government infrastructure bill in the US last year.

Yet jurisdictions are choosing different pathways regarding policy and regulation. Some such as China and Russia view it as a fiscal and ideological challenge to sovereign monies. Others view it as an opportunity for innovation, investment and economic growth.

As different approaches emerge, 2022 may be a defining year for both the crypto industry and those competing to either ban or welcome it.

Past examples suggest countries that welcome crypto networks reap economic benefits through innovation, investment, jobs and taxes. Business benefits of adopting crypto as a digital asset include access to new demographics and technological efficiencies in treasury management.

At the same time, the effects of policy and regulation on the industry demonstrates cryptocurrency isnt a completely decentralised thing that exists only on the blockchain.

In the competition to limit but benefit from cryptocurrency, Australia has emerged as a potential destination of crypto friendliness. A report published in October by the Senate Select Committee on Australia as a Technology and Financial Centre looks favourably on cryptocurrencies.

It proposes market licensing for crypto exchanges, streamlined taxation arrangements and a regulatory structure for decentralised autonomous organisations, or DAOs. These function using the same philosophy of self-governance as decentralised cryptocurrency networks, using blockchain technology and cryptocurrency tokens to manage participation and enforce rules.

Australias choice is to capture the enormous economic potential of decentralised digital assets. How this will impact the national economy remains to be seen. But if history is a lesson to be learned from, we can expect policy to shape outcomes.

Read more:
Cryptocurrency has an impact on economies. That's why some are afraid of it and some welcome it - The Conversation AU

Bitcoin exchange rate graphic illustration

President Joe Biden told United States federal agencies to regulate cryptocurrencies and other digital assets, like NFTs. Biden maintains that regulating this fast-growing industry is so important that it's become a matter of national security. It's an interesting point of time for this action, as the crypto market is going through a tumultuous time, losing large amounts of value for its investors.

Regulatory bodies, such as theSecurities and Exchange Commission,the Commodity Futures Trading Commission, Internal Revenue Service and FINRA, will likely coordinate their investigations, audits and examinations. Theyll also review whether or not tokens should be considered and registered as securities.

So far, the likelihood of regulation and the recent crash in the value of bitcoin and other cryptocurrencies has not yet affected the rich total compensation packages offered by cryptocurrency firms, according to an analysis by the professional social network Blind.

The compensation is highly competitive at cryptocurrency exchanges. They also tend to offer remote work options and other great benefits. Typical total compensation packages at bitcoin and cryptocurrency exchanges usually offer employees equity, stock options and restricted stock unitswhich could result in future windfalls, if the firm does well.

According to self-reported salary data listed on Blind, here is what people say they earn working in the cryptocurrency space at a top exchange. These numbers are for engineers. The compensation for other professionals, managers and executives may escalate even higher:

The demand for talent for bitcon, digital assets, NFTs and related platforms is blazing hot. A search on LinkedIns job site for crypto yields 15,433 results in the U.S. There were 4,656 listings for bitcoin jobs and 6,381 for NFTs. The site, unfortunately, doesnt disclose the compensation on most of the job listings.

Companies, in an effort to attract and recruit talent, are offering higher wages, sign-on bonuses, remote, hybrid and flexible workstyles, one-on-one mentoring and free college tuition. There is another sweetener that some businesses are considering to attract people to join their firmspaying in bitcoin and other cryptocurrencies.

In 2021, we saw digital assets go parabolic. The number of new crypto projects and the incredible rise in value of the asset class caught America and the worlds attention. To some people, purchasing digital assets was viewed as a hedge against the U.S. dollar thats being devalued, due to rising inflation and questionable policies from the federal government and Federal Reserve bank. Other folks, especially young people, saw cryptocurrencies as a YOLO (you-only-live-once) trade that could make them rich quickly.

Burdened with heavy college tuition debt payments, exorbitant apartment and home prices, coupled with an alarming inflation rate raising the price of everything, digital assets seemed like the only way to get ahead financially.

If you get paid in U.S. dollars, as inflation increases, the value of your paycheck decreases. Recent data from the Bureau of Labor Statistics highlights rising costs. The consumer price index in September spiked 5.4% higher in 2021. The growth was so fast and furious that the U.S. government called for a nearly 6% cost-of-living increase for people on Social Security. This was the largest hike in four decades. Inflation has surged by 7%.

We are seeing signs of change in payments. Miami Mayor Francis Suarez said he would take a paycheck 100% in Bitcoin and will also offer cryptocurrencies to public employees too.Eric Adams, the new Mayor of New York City, similarly announced that hes looking into paying people in bitcoin and other digital assets, and will accept his first three paychecks in bitcoin. Sports stars Russell Okung, Odell Beckham Jr. and Aaron Rodgers have all said they will be paid, at least in part, in crypto, according to Bloomberg.

If you accept a salary in crypto, you have to have a strong stomach and be comfortable with seeing strong gains, along with scary plunges in value. Payment in cryptocurrency is not without risk. There is a lot of volatility in this space.

In 2021, the price of bitcoin hit $67,000 and subsequently plunged to under $30,000, and then bounced back again. Ethereum saw record highs of around$4,800 on December 1, only to see it trade lower at around $3,600 to $3,900. If you were paid in bitcoin, ethereum or other coins at a high point and then the price cratered,you will owe taxes based on the higher value you were paid.

For people who ardently believe in the future of crypto, are open to volatility and risk and have a long-term time horizon, payment in Bitcoin may be an exciting new way to enhance your wealth.

Beckham signed a one-year deal with a base salary of $750,000 and bonuses that could bump it up to $4.25 million. The NFL wide receiver said was taking his entire salary in bitcoin. He reportedly converted a $750,000 paycheck into bitcoin, and may have lost the equivalent of almost $350,000, according to an analysis from MarketWatch. While the price of bitcoin has since somewhat rebounded, it hasn't fully recovered and remains extremely unpredictable.

It could turn out that bitcoin surges and his next check will be substantially higher. Beckham most likely could afford the wild swings. For others, it's a cautionary tale to be careful about the vicissitudes of cryptocurrencies and converting your cash salary into highly volatile and largely unregulated digital tokens.

Read more:
People Working At Bitcoin And Cryptocurrency Exchanges Can Earn More Than $1 Million A Year - Forbes

Bitcoin's market dominance dipped 0.07 percent to 41.75 percent and the currency was trading at $38,033.97 today. (Representative image)

The global cryptocurrency market capitalisationrose4.66percent over the last 24 hours to $1.75 trillion, while the trading volumes were up 15.08percent to $63.86billion.

While decentralised finance (DeFi) accounted for 15.58 percent of the 24-hourcryptocurrencytrading volume at $9.95billion, stablecoins 78.02percent of at $49.83 billion. Bitcoin's market dominancedipped 0.32percent to 41.52 percent and the currency was trading at $38,340.42 in the morning on February 1.

Finance Minister Nirmala Sitharaman will present the Union Budget 2022 during the day and it would be closely watched for any announcements or signals on the government's stance on cryptocurrenciesthat have been gaining popularity but continue to operate in a grey area.

In rupee terms,Bitcoinrose 1.85percent to trade at Rs30,39,615, while Ethereumrose 4.2percent to Rs 2,13,849.6.

Cardanorose 0.9percent to Rs 82.99 and Avalanche 4.43percent to Rs 5,534.6. Polkadot gained 6.33percent to Rs 1,525.79and Litecoin was up 0.87percent to Rs 8,636.15 in the last 24 hours. Tetherdipped 1.6percent to Rs79.5

Memecoin SHIBrose 2.29percent, while Dogecoinrose 1.02percent to trade at Rs 11.22. Terra (LUNA)increasedby13.68percent to Rs4,073.4

JP Morgan analysts have said that Bitcoin will struggle to get institutional adoption because of its volatility, while Ethereum will face more competition from rival blockchains.

In a note for investors, analysts at the New York City-based bank said that they saw "significant challenges" going forward for the two biggest cryptocurrencies by market cap.

Cryptocurrency exchange FTX announced that it raised a $400 million Series C funding round, which now values the rising firm at $32 billion.

It's asignificant uptick in valuation from the last time FTX raised funds in October 2021, when it pulled in $420.69 million in a Series B-1 round at a valuation of $25 billion. Prior to that, FTX announced a $900 million Series B raise in July 2021 that was later revised to $1 billion, with a valuation of $18 billion.

January has been brutal for Bitcoin, with prices declining 20 percent since the start of the month but things have gone much worse for other cryptocurrencies in the top 15 by market capitalisation, specifically the "Ethereum killers."

In January, Solana has lost 42 percent of its value relative to the US dollar, Terra is down 40 percent, and Avalanche has been buried by a 36 percent drop. Lower down on the table, Algorand is worth 43 percent less since the start of the year. Cardano ticked down 20 percent, while Polkadot lost 27 percent.

Continue reading here:
Cryptocurrency Prices Today : Ahead of Budget 2022, bitcoin, ethereum rise - Moneycontrol.com

Cryptocurrency exchange Coinbase Global Inc. says Shopify CEO Tobi Ltke will join its board of directors.

Cryptocurrency exchange Coinbase Global Inc. says Shopify CEO Tobi Ltke will join its board of directors.

Coinbase founder Brian Armstrong said in a release that Ltke brings experience as an entrepreneur, and as an early adopter of crypto including through Shopify's integration with Coinbase's crypto payment platform.

He says Ltke will help as Coinbase looks to expand crypto to more people and businesses globally.

Ltke said in a statement that Coinbase and Shopify share the like-minded vision of decentralized finance and entrepreneurship.

In 2020, Shopify also joined the Facebook-backed Diem (then called Libra) Association that was working on a global digital currency, though media reports last week said that the association was selling its assets.

Coinbase says the appointment is still subject to formal board approval.

This report by The Canadian Press was first published Jan. 31, 2022.

Companies in this story: (TSX:SHOP)

The Canadian Press

Read the original post:
Shopify CEO Tobi Ltke to join board of Coinbase cryptocurrency exchange - Coast Reporter

Officials said no one from the government, law enforcement, utility company, or prize promoter will ever tell you to pay them with cryptocurrency.

KENTUCKY, USA Federal officials are warning consumers that scammers are now asking people to pay with cryptocurrency and then using QR codes to steal their money and personal information.

The Federal Trade Commission said a scammer will call and say they work for the government, law enforcement, a local utility company, or even say you've won the lottery or a prize.

If you stay on the phone long enough, they'll ask you for money and request you go to a store with a cryptocurrency ATM. Once you're there, they'll tell you to put money into the ATM and buy cryptocurrency.

The FTC said the scammers will then send you a QR code with their address embedded in it. Once you scan the code, the cryptocurrency gets transferred to them and your money is gone.

"Nobody from the government, law enforcement, utility company, or prize promoter will ever tell you to pay them with cryptocurrency," the FTC said.

They warned consumers that any unexpected tweet, email, call or social media message -- especially from people you don't know -- asking you to pay them in advance for something, is a scam. "Every time," the agency said.

Kentucky Attorney General Daniel Cameron said to report the scammers to the state using the online scam report form. Reports can also be made directly to the FTC by filling out their form online.

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Originally posted here:
Cryptocurrency and QR code: Here's the latest trick scammers are using to steal your money, FTC warns - WHAS11.com

The rapidly growing cryptocurrency phenomenon is emerging as a key fundraising tool for nonprofits that can sustain giving in new ways while also bringing in a younger demographic to philanthropy.

Cryptocurrency a borderless, digital form of money that uses a decentralized system to record transactions and is popular on platforms such as Bitcoin, Ether and Dogecoin first appeared in the nonprofit sector five years ago with the earliest major digital contribution. In 2017, the nonprofit Pineapple Fund, a project led by an anonymous individual, donated 5,104 bitcoins to 60 charities. The gift was worth more than $55 million at the time.

Since then, a market for digital donations has slowly grown, including with new third-party intermediaries that help nonprofits receive cryptocurrency gifts.

Although very few West Michigan nonprofits appear to be actively pursuing crypto donations, researchers at Grand Valley State Universitys Dorothy A. Johnson for Philanthropy say the emerging form of giving is a key trend to watch this year.

The skys the limit, said Johnson Center Operations Director Julie Couturier, particularly based on the opportunity for new, younger donors who can help diversify revenue streams.

The people who are building wealth in cryptocurrency are commonly young, male, and tech-savvy. Theyre just getting into philanthropy because they all of a sudden have the funds to do so, and they havent established their giving patterns yet because this is still pretty new, Couturier said via email. But as more and more people enter the crypto market and more organizations and advisors become adept at navigating crypto as a vehicle for giving, the skys the limit.

Meanwhile, cryptocurrency donations effectively function like stocks, creating a favorable tax environment that would avoid capital gains taxes, for example. For tax purposes, they are treated as appreciated assets such as securities and real estate.

Thats a favorable context for giving, Couturier said, adding that crypto donations also can make for easier international transactions completed in minutes. If and when that changes, of course, it could change the trajectory of this trend.

The trend, at least for now, is heading upward. Crypto contributions to donor-advised funds at Fidelity Charitable Trust more than doubled from $13 million in 2019 to $28 million in 2020, according to the Johnson Center.

On the donor side, crypto-based donor advised funds can keep individuals anonymous even though transactions are recorded in the blockchain and viewable by anyone.

This interesting combination is appealing to some donors, and also helps address the lack-of-transparency criticism that exists for traditional DAFs, according to a recent Johnson Center report on emerging giving trends.

However, researchers say that potential for growth comes with some risk. For one, cryptocurrency values can shift quickly and even more so than the stock market, Couturier noted. Cryptocurrency values have been steadily declining since November. In recent weeks, Bitcoin dropped in value to below $33,000 after a record-setting high of $69,000 in November, according to media reports.

Theres also just thousands of different cryptocurrencies, she added. Youre not only dealing in U.S. dollars, youre dealing with multiple different currencies and there are more being created all the time. Keeping track of and understanding the variability here is a big job. Its complex; nonprofits may not have people on staff who are familiar with how it works and how to use it.

As with other forms of giving, donor transparency concerns also surface and organizations may or may not actually know who the money is coming from, Couturier said.

Thats where third-party intermediaries like Washington, D.C.-based The Giving Block can step in and help nonprofits by converting cryptocurrency donations to cash. Formed in 2018, the membership-based organization prepares nonprofits for accepting crypto donations and also connects donors to crypto-ready organizations. The Giving Block reported that the value of total cryptocurrency donations now exceeds $300 million annually.

Crains Detroit Business reported in November that, at the time, 13 Michigan-based nonprofits had joined The Giving Block.

That includes Grand Rapids-based Kids Food Basket, which paid the $2,500 Giving Block membership fee at the end of November around Giving Tuesday, enabling it to receive a variety of different cryptocurrencies. So far, the organization has received one cryptocurrency-based donation.

As an organization, we are always seeking opportunities to be innovative and make it easy to engage with our mission and to support our mission on an ongoing basis, said Chief Operating Officer Afton DeVos, adding that reaching new demographics was a motivating factor in joining The Giving Block. We feel its a great opportunity to start something new. We dont know exactly how this is going to work or if its financially beneficial in the long run, but it was an opportunity to test new waters.

DeVos added that, after weighing the costs and benefits, this felt like a fairly low risk. One measure of success will be whether the amount of ccrypto donations meet or exceed the $2,500 membership fee with The Giving Block, she said.

Keith Hopkins, founder of Ada-based Hopkins Fundraising Consulting LLC, believes West Michigan is still a few years away from more fully embracing crypto giving because of the little bit conservative nature of the regions philanthropic community.

We probably have to watch what happens in the bigger cities with the bigger nonprofits, he said. I assume youre going to see some potential crypto gifts come from people who are, you know, maybe a little shady. But, hey, that happens with real money.

While still a relatively rare form of giving in West Michigan, cryptocurrency should start to be included in nonprofits donation or investment policies, Couturier said: Otherwise, nonprofits should be keeping in mind the risks and advantages.

MiBiz Editorial Intern Hannah Brock contributed to this story.

See the article here:
Report: Cryptocurrency donations among top nonprofit trends to watch in 2022 - MiBiz: West Michigan Business News

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On the podcast today; the Guardians UK technology editor, Alex Hern, joins to explain what exactly cryptocurrency is, how fan tokens work and why John Terry and a host of other footballers have been posting about cartoon monkeys.

Elsewhere, the soon-to-be owner of Bedford FC Peter McCormack sets out his vision for the team being dubbed the first Bitcoin club and why, in his opinion, this is a sensible and sustainable model for his local side.

Plus, Philippe Auclair reveals the more sinister side of cryptocurrency including fan token scams and gambling while James Harder argues the case for NFTs (if you can just ignore the cartoon monkeys).

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Cryptocurrency, NFTs and football - Football Weekly | Football - The Guardian