2017: A Defining Year for Cryptocurrency Regulation

2017:

A Defining Year for Cryptocurrency Regulation

In a year of soaring cryptocurrency prices and countless initial coin offerings,

it's perhaps unsurprising that, over the course of 2017, regulators worldwide stepped in to define how they would oversee what had been to date a legally murky environment. From China's crackdown on exchanges to the SEC's report on The DAO, 2017 was perhaps one of the most significant years to date on the regulatory front. Indeed, the year saw regulators from many of the world's leading economies issue investor alerts and cautionary statements about financial use cases for the tech. The past two months especially have seen growing activity on the ICO funding model, as seen by bans in major Asian countries to enforcement actions in North America. In this article, we look at some of the big policy shifts from the past 12 months – many of which may have set the stage for further industry-defining developments in the year ahead.

The People's Bank vs bitcoin

It was the first week of 2017 and China's "Big Three" bitcoin exchanges – OKCoin, Huobi and BTCC – were being warned by the country's central bank. That warning about staying compliant with "relevant laws and regulations" was followed in February by a freeze on withdrawals and the creation of new trading fees – both of which were measures imposed by the People's Bank of China in a stated effort to curb the risk of money laundering. And after months of waiting, exchanges ultimately returned access to funds to users in late May.

Officials in the world's most populous nation ultimately ordered those cryptocurrency exchanges to cease trading and shut down in mid-September, which combined with BTCC's closure effectively ended the "Big Three" ecosystem and pushed trading activities within China to over-the-counter markets. News of the pending shutdowns came just days after the country stopped ICOs within its borders, saying the campaigns operated by "illegally selling and distributing tokens." Where 2018 will head remains to be seen, though commentators on state-owned television in China have said in recent months that OTC cryptocurrency trading may be deemed against the law as well.

The DAO report

Rumors had circulated for months that the SEC would move to define how it would regulate ICOs. Yet the agency played its cards close until late July, when it declared that U.S. securities laws could be applied to some token sales depending on the nature of the token itself and the manner in which it was offered.

The funding model, through which the sale and distribution of cryptographic tokens would be used to kickstart work on a new blockchain network, was at the heart of The DAO, the now-defunct funding vehicle that raised millions of dollars in ethers in 2016 through the sale of DAO tokens. It collapsed later that summer following a debilitating exploit, sparking months of infighting, recovery efforts and, ultimately, a split in the ethereum blockchain. According to a report published by the SEC in July, the DAO tokens were securities under U.S. law, though the agency said that it had declined to pursue any enforcement action related to the sale.

The SEC wrote at the time:

"…the Commission deems it appropriate and in the public interest to issue this Report in order to stress that the U.S. federal securities law may apply to various activities, including distributed ledger technology, depending on the particular facts and circumstances, without regard to the form of the organization or technology used to effectuate a particular offer or sale."

The agency's statements are significant because they sparked a host of similar warnings and publications from other regulators around the world. The SEC itself would go on to warn about celebrity endorsed ICOs and public-stock scams that use the funding model as a way to entice investors. The agency has also pursued civil lawsuits against ICO organizers since July through a newly-created unit focused on digital investigations.

Putin's edicts

CoinDesk readers are likely familiar with the long-running saga of cryptocurrency regulation in Russia.

And while recent statements from senior lawmakers suggest that Russia's State Duma may finally approve rules governing the trade and issuance of cryptocurrencies, statements from earlier this year from president Vladimir Putin are arguably more impactful for the tech's future in the country. In late October, the Kremlin published five orders from Putin focused on various uses for the tech. He ordered new registration requirements for cryptocurrency miners, the application of securities laws to the initial coin offering (ICO) funding model and research into how the tech could be used as part of a digital payments ecosystem in the Eurasian Economic Union.

Echoing moves by other countries in the past year, Putin also ordered the creation of a regulatory "sandbox" for companies that use technologies like blockchain to develop new products and services. While the orders undoubtedly nudged forward the work on legislation around cryptocurrencies, Putin's edicts have arguably advanced efforts to integrate the tech into the Russian state government infrastructure. They also came months after the Russian leader briefly met with ethereum creator Vitalik Buterin. Other leaders in Russia have pushed the idea of using blockchain for public-sector purposes as well. Prime minister Dmitry Medvedev, for example, ordered government officials to begin researching uses of blockchain last spring.

Chuck Reynolds


Marketing Dept
Contributor

Please click either Link to learn more about Bitcoin.
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David https://markethive.com/david-ogden

Bitcoin Looking Over Its Shoulder as Cryptocurrency Competition Heats Up

Bitcoin Looking Over Its Shoulder as Cryptocurrency Competition Heats Up

What Could Go Wrong for Bitcoin in 2018?

A host of cryptocurrencies are vying with the more-established Bitcoin for the interest of investors looking for risk and the potential make a quick buck.While Bitcoin has a cryptocurrency market share of more than 50%, competition is hotting up as investors are looking at smaller, cheaper cryptocurrencies for which there is more scope to rise in value.Bitcoin, the most established cryptocurrency, was worth $13,300 and had a market capitalization of $224 billion on Sunday, according to Coinmarketcap.The next largest cryptocurrency by market cap is Ripple, which was worth $91.7 billion on Sunday, followed by Ethereum, worth $70.9 billion. However, one Ripple is currently priced between $2 and $3, extremely cheap when compared to competitors such as Litecoin ($220) or Ethereum ($732).

According to ValueWalk.com, a site for investors, smaller cryptocurrencies could be a worth a punt as the price of Bitcoin remains high."Go a few rungs lower and market cap plummets; by the 200th rung you get Faircoin, at a mere $57 million market cap and $1.09 apiece earlier today. Move on down to #1,065 and you get Nodecoin, with a total market cap of less than $8,000, a price of less than a nickel per coin—and a 19% gain in just the past hour!" ValueWalk advised on Saturday. The cryptocurrency with the fourth largest market cap is Bitcoin Cash, which was created as a result of a so-called "fork" in August when some Bitcoin developers branched off to create a new, allegedly superior payment network — with the same transaction history. 

Bitcoin

The fork resulted in Bitcoin owners owning an equivalent amount of Bitcoin cash. However, things are less straightforward for traders or investors with Bitcoin held by third parties such as Coindesk. While Coindesk decided to include Bitcoin Cash in its list of assets which can be traded on the platform, others are less accommodating of the newcomer. On Thursday, BitMEX, a Seychelles Islands-based cryptocurrency trading platform, announced it had sold all of the Bitcoin Cash cryptocurrency held by its users, and credited them with an equivalent value of Bitcoin instead.

Chuck Reynolds


Marketing Dept
Contributor

Please click either Link to learn more about Bitcoin.
Interested or have Questions, Call Me, 559-474-4614

 

David https://markethive.com/david-ogden

Bitcoin, Ethereum, Bitcoin Cash, Ripple, IOTA, Litecoin, Dash, Monero: Price Analysis, Dec. 30

Bitcoin, Ethereum, Bitcoin Cash, Ripple, IOTA, Litecoin, Dash, Monero

Bitcoin, Ethereum, Bitcoin Cash, Ripple, IOTA, Litecoin, Dash, Monero: Price Analysis, Dec. 30

Cryptocurrencies have generated wealth for the traders like no other asset class. While Bitcoin has garnered most of the attention, it is not the only one to have risen in 2017. There have been scores of winners.

Ethereum was the second leading currencies aiming to overtake Bitcoin as the dominant leader of the year; it could never really achieve the feat.

However, within the past two weeks, Ripple has skyrocketed from a low of $0.22 on Dec. 10, to a high of $2.47 today. That’s a whopping rally of 1024 percent within a span of 20 days.

As a result, Ripple has now overtaken Ethereum as the second most valuable currency by market capitalization.

Bitcoin’s dominance, which had risen above 60 percent just a few weeks back has again cooled off to 38.3 percent.

As the market matures, we are likely to see a number of changes in the rankings of these currencies. Therefore, one has to keep an open mind towards all the cryptocurrencies because as traders; our main goal is to earn money.

So, do we have any good buy setups for the end of the year or is it best to remain on the sidelines and enjoy the holidays, returning to trade in the new year? Let’s find out.

BTC/USD

We expected a pullback from the trendline, however, due to lack of buyers, the recovery never gained strength. Today, the bears easily broke below the trendline support, which has escalated the selling.

Bitcoin has broken down of the neckline of the bearish head and shoulders pattern. If the cryptocurrency sustains below the neckline, it has a pattern target of $5,745.

However, we don’t expect to see such a plunge in the short-term.

We believe that the bulls will attempt to defend the recent lows of $10,704.99. But if they fail, the bears are likely to intensify their selling. A number of long positions will start to bleed, which is likely to lead to panic selling. We see another support at the $8,000 mark.

All these lower levels will come into play only if the BTC/USD pair breaks and sustains below the 50-day SMA.

Contrarily, if the bears are unable to breakdown of the 50-day SMA, we may see a recovery in the new year. Yet, we will prefer to wait until the digital currency breaks out of the downtrend line to initiate any position. We don’t find any trades at the current price.
 

ETH/USD

We mentioned that Ethereum will become positive in the short-term only on a breakout and close above the downtrend line. Yesterday, the bulls broke out of the trendline but could not manage a close above it.

On the downside, the 20-day EMA has been providing a strong support. If this support level breaks, we may see a slide towards $646.08 and thereafter to $600 levels. On the other hand, the ETH/USD pair will become positive above $770 because it has returned from the $760 levels on three occasions.

Between the 20-day EMA and $760, we are likely to witness a volatile range-bound trading action.

Therefore, we suggest waiting until we get a clear breakout and a confirmation of the resumption of the uptrend.
 

BCH/USD

For the past two days, the bulls had been defending the $2300 mark. But their attempt to resume the rally failed yesterday.

Today, the bears have broken down of the critical support level of $2300. The next downside target on the BCH/USD pair is a fall to the 50-day SMA.

We expect a strong buying around the $1,733 levels. Nonetheless, we recommend waiting until there is a clear bottom in sight.

Consider avoiding buying in a falling market.
 

XRP/USD

Ripple roared past our initial target objective of $1.5. Today, it reached an intraday high of $2.474.

Traders who had purchased on our bullish prediction should close their positions or at least trail with a close stop loss depending on their strategy.

After such a stellar rally, we expect the XRP/USD pair to enter into a correction or a consolidation. Therefore, we don’t have any fresh buy recommendations on it.

 

IOTA/USD

The bulls have successfully held on to the lower end of the range at $3.032 for the past few days. However, they have not been able to push the cryptocurrency higher.

Today, the IOTA/USD pair is again under a bear attack, which is threatening to break below the critical support. If the bears succeed, the cryptocurrency will fall to the 61.8 percent Fibonacci retracement level of $2.62196.

Yet, if the bulls manage to hold the supports once again today, IOTA will continue to trade inside the range. We shall initiate buy positions only on a breakout and close above the downtrend line. Until then, we shall remain on the sidelines.

LTC/USD

The bears have broken below the neckline of the head and shoulders pattern. Unless the bulls stage takes a sharp recovery today, chances are that Litecoin will continue lower in the next few days.

We anticipate a strong support at the recent lows of $175.199. The 50-day SMA is also just below this level, which should also provide some support.

However, if both these levels fail to hold, the LTC/USD pair will fall towards $110, which is the target objective of the breakdown of the head and shoulders pattern.

Our bearish view will be invalidated if the bulls manage to push the digital currency above the neckline at $240.
 

DASH/USD

For the past two days, the bulls managed to hold on to the 20-day EMA. But today, the bears have broken below the moving average support.

Dash has a strong support at the trendline. We expect the bulls to strongly defend this level.

Though we shall avoid buying until we get a confirmation of a bottom formation because if the trendline breaks, the DASH/USD pair can fall to $800 and thereafter to $650 levels.
 

XMR/USD

We were expecting a range-bound trading action in Monero. Despite that, the bears have taken control and have broken below the 20-day EMA today, which is a bearish development.

The immediate support on Monero is at $300. If this level breaks down, we are likely to see the decline extend to the recent lows of $245.1. The 50-day SMA is also at this level. Just below there is the 61.8 percent Fibonacci retracement level of $230.66.

We expect a strong support in this zone. At the same time, we don’t suggest buying until the fall is arrested.

When the markets are in a bear grip, it is a good strategy to wait until the decline ends, instead of being brave and attempting to catch a falling knife.

 

Author: Rakesh Upadhyay

 

Posted By David Ogden Entrepreneur
David Ogden Cryptocurrency Entrepreneur

David https://markethive.com/david-ogden

Bitcoin Boasting Strong Recovery After Post-Dip Volatility

Bitcoin Boasting Strong Recovery After Post-Dip Volatility

This morning Bitcoin (BTC) surged to a peak of $16,930

and the total cryptocurrency market cap hit a high of 603 bln, after a steady past couple of days of growth. The market recovery comes in the wake of a major dip at the end of last week that was followed by several days of volatility. Just last Friday Dec. 22, in the midst of pre-holiday bustle, the cryptocurrency market was awash in red. Altcoins lost up to 40 percent, and Bitcoin was close behind, suffering a 30 percent drop and reaching as low as $11,833 a coin. In a single day, the total cryptocurrency market cap decreased by more than $200 bln.

Just days before on Dec. 17, Bitcoin reached a record high of $20,078 and leading up to the crash Bitcoin price had been hovering between $16-17,000. What followed was several days of volatility. Just 24 hours after the frightening dip, the market saw a notable bounce back. The recovery, however, was not stable and was quickly followed by another dip leading into Christmas day.  Since then, however, Bitcoin has been gaining steadily and has fully recovered its pre-dip heights, trading at an average of just over $16,000 at press time.

Total market cap, which also spiked and then dipped again over the weekend, has been steadily growing since Monday. At press time total market cap also showed an almost full recovery, at $603 bln. Many Bitcoin investors saw Friday’s dip as the perfect chance to buy up more of the leading cryptocurrency at a “discounted” price. Others pointed out that the overall market correction around the New Year is nothing new, and noted that corrections like the one on Friday are actually just what the market need

Chuck Reynolds


Marketing Dept
Contributor

Please click either Link to learn more about Bitcoin.
Interested or have Questions, Call Me, 559-474-4614

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Hard Fork, Take Two: SegWit2x Will Return Dec. 28, Says Founder

Hard Fork, Take Two:
SegWit2x Will Return Dec. 28, Says Founder

The controversial SegWit2x Bitcoin (BTC) hard fork

go ahead on Dec. 28, according to the project’s official website.The SegWit2x project, which caused months of debate and infighting among the Bitcoin community prior to its last-minute cancellation in November, now says it will fork off at block 501451, due in around two days’ time. The project’s Founder and Lead Developer, Jaap Terlouw, stated on their site that the fork aims to address issues of “commission and transaction speed within the Bitcoin network,” adding that currently, Bitcoin is “almost impossible to use as a means of payment.” Confirmation that the hard fork will, in fact, take place is indicated both in the roadmap on the project’s site, as well as in a direct quote from

Terlouw:

“Our team will carry out the Bitcoin hard fork, which was planned for mid-November.”

The founder also promised that in addition to the common practice of crediting BTC holders with equivalent balances of the new coin (B2X), they would also receive “a proportional number of Satoshi Nakamoto’s Bitcoins as a reward for their commitment to progress.” In total, eight exchanges are listed as official supporters of the fork. The project’s roadmap includes features such as Lightning Network support, smart contracts and, ultimately, anonymous transactions.

Forking season

In the past six weeks, Bitcoin Cash, another Bitcoin hard fork formed in August, has become the central talking point of the industry, as it sees remarkable growth and sparks shifts in mining and investment behavior, affecting Bitcoin’s price.The latest incarnation of SegWit2x has so far received comparatively little publicity. However, the website copy conspicuously name-dropped one particular exchange, HitBTC. Speaking about existing SegWit2x futures, Terlouw is quoted on the site as

saying:

“At the same time, trading of its [SegWit2x] futures has been carried out on some exchanges for a long time. HitBTC is among them.”

When the project first saw hints of a comeback on Dec. 19, futures prices of B2X coins saw an uptick from under $200 to almost $600, a trend which has remained steady prior to the launch. Meanwhile, on Christmas Day, a Blockchain Angel Investor debuted his own ‘version’ of Bitcoin, Bitcoin God (GOD), while several other forks are due to join the ecosystem in the coming weeks. For BTC investors, a key appeal of new Bitcoin ‘versions’ or hard forks  is the duplication of their BTC holdings in the new coin at the time of each snapshot, which essentially provides them with a supply of “free money.”

Chuck Reynolds

Marketing Dept
Contributor

Please click either Link to learn more about Bitcoin.
Interested or have Questions, Call Me, 559-474-4614

David https://markethive.com/david-ogden

Bitcoin is passé: these are the cryptocurrencies to look at in 2018

Bitcoin is passé: these are the cryptocurrencies to look at in 2018

Bitcoin is passé: these are the cryptocurrencies to look at in 2018

Bitcoin had a monumental 2017, with its price rising by more than 1,400pc over the past year. However, it was far from the best-performing cryptocurrency.

Of the 10 most important digital currencies by total value at the time of writing, six have been around for more than a year. All six have experienced price rises that eclipse Bitcoin, ranging from 2,870pc for Monero to 31,560pc for NEM.

As the first blockchain-based cryptocurrency, Bitcoin contains many flaws that later rivals have aimed to iron out. Transaction numbers per second are severely limited, “mining” – producing – Bitcoin consumes huge amounts of energy, and the transaction fees required for a payment to be processed quickly have been spiraling out of control.

All of these problems place doubt on Bitcoin’s ability to become a widely adopted means of payment, and ultimately on its value.

Gary McFarlane, a cryptocurrency analyst at investment shop Interactive Investor, said: “Bitcoin is the benchmark for the cryptocurrency market – other coins are judged by what they do differently to it, and how they address its flaws.

“No cryptocurrency has achieved mass adoption as a means of payment yet, so later projects that can address earlier technological issues are in a better position.”

So, aside from Bitcoin, which cryptocurrencies do those who analyse the fledgling cryptocurrency “market” have their eye on in 2018? Before you part with any money, bear in mind that any cryptocurrency investment is highly speculative, so only risk cash that you could afford to lose in its entirety and will not need in the short term.
 

Iota

Total value: $9.5bn

Iota stands for Internet of Things Application, and differs significantly from Bitcoin.

Instead of transactions being bundled together into “blocks”, those blocks being verified by a “miner” and then added to a blockchain ledger, as happens with Bitcoin, Iota uses a different technology called the “Tangle”.

Each transaction remains separate, is not amalgamated into blocks, and there are no separate miners who compete to verify transactions.

Instead, for a transaction to go through, the computer, smartphone or other device the transaction originated from must complete a mathematical problem to confirm two other random transactions.

There are no transaction fees, as the only cost is the amount of electricity a device uses to verify those transactions, which is borne by the user. In theory, this system could attain huge scale, as the more transactions that are put through, the more capacity there is to verify new transactions.

Mr McFarlane said there was a “good team” behind Iota and there were major companies interested in the technology, including Microsoft.

It is intended to be used as part of the “internet of things” – where homes, appliances and other day-to-day items are connected and communicate via a network. Its creators envisage that Iota will be used to enable micro-transactions and to allow almost anything, from a bicycle to computer processing power, to be rented out in real time.

 

Cardano

Total value: $10.2bn

Mr McFarlane said Cardano was sometimes described as an “Ethereum killer”. Like Ethereum, it is a platform that digital applications can be run on, with its own digital currency. Cardano is the name of the platform, while Ada is the currency.

“The person who heads Cardano was part of the core Ethereum team and the Cardano team are trying to address some of the problems they see with Ethereum,” he added.

Instead of using a “proof-of-work” system to verify transactions, where “miners” dedicate computing power to solving complex mathematical problems, Cardano uses a “proof-of-stake” system.

The power to verify transactions is determined by the number of coins a user holds, which also determines whether they can vote on proposed upgrades to the system. Those who verify transactions are rewarded with transaction fees.

The idea is that this system negates the need for a power-hungry proof-of-work system like that used by Bitcoin, and that those with larger stakes are incentivised to maintain a functioning system.

Critics say that in theory proof-of-stake systems are more open to certain kinds of attack, although penalties can be applied to discourage such abuse. They also point out that the largest stakeholders receive the most in transaction fees, which could give them more and more control over time.
 

Other Bitcoin rivals

David Drake, a professional investor who serves ultra-high net worth families, said he had high hopes for Verge and EOS, in addition to Iota.

He said the focus over the next six to 12 months would be on transaction speeds and the technology that underlies cryptocurrencies – areas in which Verge and EOS perform well.

Verge is focused on privacy, intending to offer completely anonymous transactions. EOS is similar to Ethereum in that it is a platform on which developers can build digital applications. EOS coins are the currency of the platform.

They are the 11th and 21st largest cryptocurrencies respectively, at $5.4bn and $1.8bn in total value.
 

How to buy

None of the currencies mentioned above is currently offered by the most popular cryptocurrency exchanges, Blockchain.info and Coinbase. That may change in the future.

Buyers will therefore require more technical knowhow and will need to carry out more research. You will need to find a cryptocurrency exchange that offers the currency you wish to buy, and a wallet service that will let you store it.

Watch out for the large number of scam outfits that appear in search engine results in this area; they may be difficult to distinguish from legitimate businesses.

You can also choose to store cryptocurrencies offline in a "hardware wallet", essentially a hard drive.

Be sure to check the fees charged by any exchange or wallet provider and the difference between the actual price of a coin and the price being offered to you.

You may be able to purchase some coins only with larger cryptocurrencies such as Bitcoin, rather than with cash. In that case, you will need to buy some of the required currency first.

 

Author James Connington 29 DECEMBER 2017 • 12:09PM

 

Posted by David Ogden Entrepreneur
David Ogden Cryptocurrency Entrepreneur
 

David https://markethive.com/david-ogden

What is bitcoin, what is blockchain?

What is bitcoin, what is blockchain?

The final months of 2017 brought all-out bitcoin mania.

The value of the digital asset soared near $20,000, then settled back down below $15,000, and is up nearly 1,500% this year; Coinbase, the bitcoin brokerage, surpassed 13 million users and briefly became the No. 1 smartphone app on the iOS App Store; and mainstream financial exchanges like CME, Cboe, and Nasdaq are all rushing into bitcoin futures trading. So you might be feeling left behind if you’re still wondering: What exactly is bitcoin? But you’re hardly alone: even amidst the frenzy, cryptocurrencies are in their infancy, and many, many people hearing about bitcoin still don’t fully understand what it is, what it’s used for, whether they should buy it, and how to buy it.

Here are some answers.

What is bitcoin?

Put in the simplest terms: bitcoin is a digital asset that runs on a public ledger. Bitcoins can be bought, sold, or traded, like a commodity, or used as payment for hard goods, like a currency. Put in the proper technical terms: Bitcoin is open-source software for a decentralized, peer-to-peer payment system. Most people call bitcoin a digital currency or cryptocurrency, but these days, at the end of 2017, no one is really using bitcoin to buy things. Instead, people are rushing into bitcoin to buy and hold it as a speculative investment. For that reason, a more apt term for bitcoin right now is “digital asset” or “digital token.” (See the above video.) If you want to buy bitcoins, you can use an exchange like Coinbase, Kraken, Bitfinex, or Bitstamp, to name just a few. Bitcoin was created in 2009 by someone (or someones) using the pseudonym Satoshi Nakamoto. It still isn’t known who that was, or how many bitcoins that person or group still holds.

What is blockchain?

Bitcoin, the token, runs on the bitcoin blockchain, an immutable digital ledger. Every single transaction done in bitcoin is recorded, permanently, on the bitcoin blockchain. Think of the bitcoin blockchain as akin to the borrowing card inserted in the front of a library book, with all the borrowers listed. The transaction data is recorded on the blockchain in bundles, called “blocks,” by “miners” who use expensive machines to mine, or upload, the blocks. The machines mine by solving complicated computations in real time (and they generate a lot of heat in the process). Miners are rewarded with a tiny amount of bitcoin every time they do so. That’s how new bitcoin gets created—the bitcoin supply is capped at 21 million coins, and 16.7 million coin have been mined so far. Blockchain technology originated with bitcoin, so if you hear people talk about “the blockchain,” they likely mean the first one, the bitcoin blockchain.

But banking giants and other financial institutions have become interested in blockchain technology, without bitcoin or any cryptocurrency. JPMorgan Chase CEO Jamie Dimon, to name just one example of many, has called bitcoin a “fraud worse than tulip bulbs,” but has praised the potential of blockchain. The “blockchain without bitcoin” rallying cry was hot on Wall Street in 2016 and for much of 2017, but near the end of the year, bitcoin and other digital tokens like ether, litecoin, and bitcoin cash started flying as investment poured in, and the excitement shifted back toward bitcoin itself, rather than blockchain.

Chuck Reynolds

Marketing Dept
Contributor

Please click either Link to learn more about Bitcoin.
Interested or have Questions, Call Me, 559-474-4614

David https://markethive.com/david-ogden

Bitcoin or Blockchain? Bet That Both Will Thrive

Bitcoin or Blockchain?
Bet That Both Will Thrive

Bitcoin and blockchain are often pitted against each other,

but I come from both worlds and believe that both are game-changers in their own right. I first learned about bitcoin in 2012 through liberty-oriented channels, which I’d discovered during a search for answers about the financial crisis in 2008. But I also took a deep dive into enterprise blockchain in 2014 while at Morgan Stanley, as a side interest to my day job of running its pension solutions business. In August 2016, I joined Symbiont full-time.

When I look ahead, I see 2018 as a year of maturity for both the bitcoin and enterprise blockchain parts of the space. Bitcoin will yet again prove its anti-fragility, more corporates will embrace it for payments, and the community will successfully resist its financialization. Enterprise blockchain will gain wider acceptance in production applications.

Bitcoin goes corporate

Bitcoin will increasingly be used for B2B foreign-exchange payments

by multinational companies in 2018, as bid-offer spreads continue to tighten, daily liquidity consistently exceeds $5 billion and corporate new entrants gain comfort with liquidity providers (which enable corporates to use bitcoin for “cross-currency” transactions without touching the bitcoin itself–in other words, as an intermediary currency for foreign exchange in illiquid currencies). Corporate bitcoin use will remain predominantly for payments in markets where banking systems are not well-developed. A tell-tale sign that corporate demand is sustainable would be this: when foreign exchange (FX) trading desks start making markets in bitcoin non-deliverable forwards (NDFs).

When that starts – possibly within the next 2 years – Jamie Dimon will admit his mistake and encourage corporate clients to route payments through JPMorgan’s foreign exchange desk, which will become one of the most active market-makers for cross-currency FX involving bitcoin.

Cryptocurrencies will continue to attract users as more folks learn about distortions

in mainstream financial markets that just don’t make sense, such as this:  household net worth in the U.S. was $96.9 trillion, up $7.2 trillion in the year ending September 30, 2017 (according to the Fed’s latest Z.1 report). This means the U.S. economy supposedly generated wealth at a rate equal to roughly 40% of its annual income (GDP), despite Americans consuming virtually all of their income and saving very little. Wow, that’s a miracle!

Remember this: all prices are fractions. Prices can go up either because numerators go up or because denominators go down (such as when central banks dilute fiat currencies). So…are financial markets climbing because we're truly getting richer, or because of central bank-induced asset price inflation? Are quantity-constrained cryptocurrencies a safe-haven alternative? Time will tell, but I predict cryptocurrencies will broadly benefit as more folks come to understand what’s driving distortions in financial markets.

One of the "big 3" cross-currency central banks will announce in 2018

that it is preparing to issue its currency on a blockchain. The “big 3” are the “super-regional” central banks through which most “cross-currency” foreign exchange transactions settle, including the Fed, the Bank of England and the Bank of Japan. The Fed is behind the curve, but in 2018 either the BoE or the BoJ will step forward to allow tokenization of its currency to be executed by institutions in regulatory sandboxes. Corporate treasurers around the world will cheer at the prospect of same-day FX settlement through one (or two) of these “big-3” currencies because it will free up hundreds of billions of capital currently trapped on corporate balance sheets, due to payment system latency.

Yet for all bitcoin’s strengths, I believe advances in the enterprise blockchain will outpace those of bitcoin in 2018. Let’s face it – enterprises are slower to move than the cryptoasset sector, which moves-fast-and-sometimes-breaks-things. I believe 2018 will be the year in which a watershed event happens: an enterprise blockchain platform passes a CISO (chief information security officer) audit and is deployed inside the firewall of major financial institutions.

Enterprise goes live

Consensus 2018 will be "back to the suits.

" Let’s face it: attire at industry’s biggest conference has been a pretty good barometer of what's hot in the space. At the inaugural Consensus conference in 2015, bitcoin t-shirts dominated the audience. In 2016, business suits dominated as bankers discovered the space. In 2017, the dominant attire swung back to t-shirts, but this time for ethereum and ICOs. In 2018, I predict it will be "back to the suits" as enterprise blockchain accomplishments will again dominate the sector’s headlines, late-followers will scramble to catch up, and corporate treasurers will attend en masse.

The first institutional bond offering will be issued on a blockchain in the U.S. in 2018.

Bond markets, not stock markets, will see the first U.S. institutional-level securities issued on a blockchain. Because the regulatory requirement to issue securities in “depository-eligible” (indirect) form does not apply to bond markets, the first institutional securities issued on a blockchain will be bonds – something I’ve predicted for years. In 2018, I believe it will finally happen. Yet, the coming clash between the federal securities laws that govern equities (which contemplate indirect ownership via the DTCC’s Cede & Co.) and state corporate laws (which contemplate that shares are owned directly by shareholders) will not happen yet in 2018.

No new blockchain consortiums will be formed in 2018.

If 2017 were the year of forming new consortiums, 2018 will be the year of bilateral projects. Blockchains are networks and therefore suffer from the proverbial chicken and egg problem – consortium first and then project, or project first and then consortium? Consortiums now exist across a wide variety of industries, but – at least for now – more action is happening outside of consortiums than inside them.

Enterprise blockchain adoption will advance beyond incremental-type uses in production,

such as sharing of data, to include transformational uses, such as custody of institutional financial assets that only ever exist on a blockchain. This will shine light on quality differences between platforms — and separate those that are decentralized and offer transformational benefits from those that don’t quite. A big gap will open in 2018 between the "haves" and "have-nots" in enterprise blockchain. 2018 will be a consolidation year as the sector matures. The sector came of age in 2017, as adoption broadened in both bitcoin and blockchain. In 2018, both will strengthen and deepen further. And property owners the world round will rejoice.

Chuck Reynolds

Marketing Dept
Contributor

Please click either Link to learn more about Bitcoin.
Interested or have Questions, Call Me, 559-474-4614

David https://markethive.com/david-ogden

Trade in bitcoins at your own risk, finance ministry warns users

Trade in bitcoins at your own risk, finance ministry warns users

Trade in bitcoins at your own risk, finance ministry warns users

The recent Bitcoin surge has triggered a ponzi scheme fear,in India, forcing the finance ministry to flag it on Friday.

"VCs (virtual currencies) such as bitcoins don't have any intrinsic value and are not backed by any kind of assets. The price of bitcoin and other VCs therefore is entirely a matter of mere speculation resulting in spurt and volatility in their prices," the ministry said in a statement.

The government is currently in a huddle to find out how to create safeguards against such a risk.

Flagging the risk, the ministry said there is "a real and heightened risk of investment bubble of the type seen in ponzi schemes which can result in sudden and prolonged crash exposing investors, especially retail consumers losing their hard-earned money".

Consumers need to be alert, the ministry warned, adding that currencies stored in digital/electronic format are vulnerable to hacking, loss of password, malware attack etc. that may also result in permanent loss of money.

There is a suspicion that some so-called cryptocurrencies and bitcoin investments may actually have nothing to do with any blockchain-developed virtual currency and are just new ways devised by scamsters to ride the wave and what they may be offering could be 'e-ponzi' schemes.

The ministry, along with the RBI and Sebi, is in the process of creating a framework to safeguard gullible investors and to clamp down on the fraudsters who may try to manipulate the regulatory gaps.

The users, holders and traders of VCs have already been cautioned three times, in December, 2013, February, 2017 and December, 2017, by Reserve Bank of India about the potential financial, operational, legal, customer protection and security related risks that they are exposing themselves to by investing in Bitcoin and/ or other VCs.

The Income Tax Department had recently conducted survey operations at major Bitcoin exchanges across the country on suspicion of alleged tax evasion. They said various teams of the sleuths of the department, under the command of the Bengaluru investigation wing, visited the premises of nine such exchanges in the country including in Delhi, Bengaluru, Hyderabad, Kochi and Gurugram.

 

Source: ET Online|Dec 29, 2017, 11.26 AM IST

 

Posted by David Ogden Entrepreneur
David Ogden Cryptocurrency Entrepreneur

David https://markethive.com/david-ogden

Four Tips for Cryptocurrency Users in the New Year

Four Tips for Cryptocurrency
Users in the New Year

While 2017 may have been the year that cryptocurrencies

really started to get on people’s radar, I’m predicting that 2018 will be the year we see them become more widely adopted. Whether you’re just getting into cryptocurrencies now or are already a veteran, here are some tips for the upcoming year. Note: this is not financial or investing advice. Always do your own research and make your own choices.

Do your own research, and be thorough!

One of the most common questions I get asked when at events or by friends and family is, “What is the next big coin I should invest in?” Frankly, I hate this question, because everyone should really be doing their own research into what projects and cryptocurrencies they wish to spend their money on. Not only is that the adult thing to do, but it also saves everyone from the embarrassing situation of blaming someone else for financial folly. Most projects nowadays have a lot of supporting documents and channels through which to get in touch with the team directly. There is no excuse for not being thorough and autonomous in your research in 2018.

Don’t get too attached to any one cryptocurrency

Maximalism in cryptocurrency has never made sense to me. The beauty of crypto’s open-source nature is that if someone disagrees with how a project is going, they can fork away from it, or choose to buy different cryptos. Only believing in one and attacking all others results in a toxic zoo, where all crypto-curious individuals are scared away and all crypto-skeptics feel validated. So don’t get too attached, and definitely be civil in all of your interactions.

Educate as many people about cryptocurrency as you can

I think that the community is what will make 2018 be the year of wider-spread cryptocurrency adoption. So go out there and tell people about it, or maybe even prepare some paper wallets of a cheap altcoin to pass out and let people try it out for themselves. With all the FUD from mainstream media and incessant attacks from skeptics, it is on the community to show off cryptocurrency’s true value.

Lead by example: actually use some of your cryptocurrency

It can be tempting to never spend your cryptocurrencies. After all, what if they go up in price tomorrow? However, exclusively thinking this way turns the cryptocurrency community into a band of speculators, viewing their cryptocurrencies as fiat-correlated assets. That is not the original intention of cryptocurrencies. Cryptocurrency can only thrive if its use cases are apparent to users and adopters. If its main goal is to be a currency, then it needs to be a store of value but also a medium of exchange. Personally, I use a cold wallet for “savings” and a hot wallet for “spending” much like I do with my fiat assets, which seems to work pretty well. Well, dear readers, the end of 2017 is upon us and I hope you’ve had a successful and profitable year. Here’s to the next one; may it be even better.

Chuck Reynolds

Marketing Dept
Contributor

Please click either Link to learn more about Bitcoin.
Interested or have Questions, Call Me, 559-474-4614

 

 

David https://markethive.com/david-ogden