John McAfee on bitcoin and cybersecurity

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

Bitcoin’s Price is Back Within $100 of its 2017 High

The price of bitcoin keeps creeping higher.

Bolstered by buoyed sentiment (and the increasing unlikelihood that China’s central bank will again step in and correct the market), bitcoin breached $1,050 at 13:00 UTC amid a near-3% increase for the day so far.

The total marked the highest point observed on the CoinDesk Bitcoin Price Index (BPI) since 6th January, just a day after the price dropped nearly $200 within hours of hovering near all-time highs set in late 2013 (a move that was widely attributed to the widespread use of market leverage).

The price movements come amid an uptick in volume that followed a substantial decline in volume at major exchanges.

Data from Bitcoinity shows the market is up slightly since three major China-based exchanges to begin imposing fees on both sides of bitcoin trades, a market change that is still being widely felt.

Yet, there is still some tepid sentiment in the market, as put forward by China-based OTC trader Zhou Shouji.

He maintains that "no one knows" if further actions will be taken, though he indicated some may be preparing for this scenario.

Shouji suggested China-based traders see the increasing price as a potential red flag for domestic regulators, even while others positioned it as a more natural recovery.

Bryan Tuck
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Originally posted at Coindesk.com – February 7, 2017
Image via Shutterstock

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

Investors Need to STOP Ignoring Bitcoin & Cryptocurrencies!

Be Your Own Bank 2.0 !

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To your success,

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HTW Program & Financial Freedom

www.hightrafficwealthprogram.com   

                         SUCCESS = MINDSET + LEARN + APPLY + TEACH                         

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

Will $1,000 become new baseline for Bitcoin

Recently, the price of bitcoin surpassed US$1,000 for the first time since the first few days of January. It stabilized at the $1,020 margin in most global markets and exchanges. Some regions like South Korea, Japan and China demonstrated arbitrage opportunities, with bitcoin being traded at around 7~8% premium.

bitcoin being traded at around $1,100 in South Korean #bitcoin exchanges including Korbit & Coinplug. Nearly 7% premium. pic.twitter.com/NeuWFzhn9f

— Joseph Young (@iamjosephyoung) February 3, 2017

Although many factors can be analyzed to explain the recent price surge of bitcoin, the most evident factor is the decline in the value of US dollars. Previously, when both the mainstream and bitcoin media reported that the Chinese market controlled approximately 93% of the global bitcoin exchange market, analysts and investors closely looked at the development of the Chinese market and regulations. As such, events like the devaluation of the Chinese yuan or introduction of tightened policies such as the imposition of regulation on Wealth Management Products were perceived as major factors behind the increasing value of bitcoin.

However, due to the requests of the Chinese central bank, Chinese bitcoin exchanges came to a consensus to add trading fees. As a result, inflated volumes were eliminated and the Chinese bitcoin exchange market began to demonstrate legitimate trading volumes.

Upon the “clean up” of Chinese bitcoin exchanges as the People’s Bank of China (PBoC) like to describe it as, it was revealed that the USD/BTC pair is more liquid than the USD/CNY pair. In other words, major USD supporting exchanges like Bitfinex, Kraken and Bitstamp represent a larger trading volume to that of the Chinese bitcoin exchange market.

According to bitcoin trading data providers like CoinMarketCap, the BTC/USD pair is currently demonstrating a daily volume of $41 million, while the BTC/CNY pair is demonstrating roughly half of that, at around $21 million.

Therefore, it can be said that economic uncertainty, financial instability or political events in the West or the US in particular will have a larger impact on the price of bitcoin and its trend.

There is also news that Bitcoin’s price jumped by around $30 just yesterday shortly after it became clear that Bitcoin Unlimited had overtaken segwit in hashrate share.

In other news Infinity Economics opened it new wallet to some 80,000 owners, who can now send and recieve XIN to one another. The next stage to be implimented with be the voting system, which will allow owners to formulate the direction of the coin.

David Ogden

 

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

Bitcoin is back above $1,000

 

Bitcoin is back above $1,000

Bitcoin is is back above $1,000 for the first time since January 5. The cryptocurrency was higher by 1.5% at $1,000.10 a coin as of 11:39 a.m. ET.

It's been a wild year for bitcoin. It began 2017 with a 20% rally during the first five days of the year before crashing 35% on concerns of a crackdown on trading in China.

Thursday's gains have extended bitcoin's winning streak to a sixth straight session as trade appears to be benefitting from uncertainty surrounding Donald Trump's presidency. The cryptocurrency has gained nearly 10% since Trump was inaugurated on January 20.

I believe that is the $1,000 level can be maintained  we will see a rise again later in the year. The recent trend has been upwards but it wil peak and then fall again.

I have been earning free bitcoins at Bitearn , by completing surveys, the rewards are not great , the equivalent of less than a pound a day, which I transfer to my wallet. This adds interest to tracking the market both in Bitcoin and other Cryptocurrencies.

Today Infinity Economics Launched thier wallet to members. The next few weeks will see added functions, as it is much more than a wallet.

David Ogden

Earn Free Bitcoins Here

 

 

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

Coming SOON to (your) Country?

 

Controlling your own wealth as a basic human right

A few months ago, the Indian government withdrew 86% of banknotes in circulation. Ostensibly, it was to cut down on the black market economy and tax cheats, but it also wiped out a large percentage of the wealth of the poorest people, who hold their wealth in cash. A few weeks later, Venezuela followed with a similar measure.

 

People waiting in line to deposit bank notes before the deadline. The 500 and 1,000 rupee notes were scrapped.

This got me thinking, to what degree do people control their own wealth today, and should they have more control?

Who controls money?

For most of human history, individuals had very little control of their own wealth. Warring tribes raided villages and all-powerful kings and emperors could seize your property on a whim. If you worked hard and managed to accumulate some wealth, it wasn’t entirely clear that you would be able to keep it, so most people were content to keep their head down, eke out a meager existence, and not draw too much attention.

But something important happened in the 17th century as property rightswere established. In the Second Treatise on Civil Government (1689) John Locke wrote:

everyman has a property in his person; this nobody has a right to but himself. The labor of his body and the work of his hand, we may say, are properly his
– John Locke

This began a shift in society, where people could keep more of the proceeds from their work. It also meant that your position (class, caste, etc) was not set at birth. With hard work, you could be self made, and create a better life for yourself and your children.

With upward mobility becoming possible, people began creating new products and services, hoping to strike it rich. Innovation began to accelerate, which improved life for everyone, rich and poor. In some cultures, it eventually became more favorable to be viewed as self made versus being born into wealth — a stark contrast from the age of kings and emperors.

Paul Graham writes that, “a great deal has been written about the causes of the Industrial Revolution. But surely a necessary, if not sufficient, condition was that people who made fortunes be able to enjoy them in peace.”

Not only did letting people control their own wealth accelerate innovation, it also attracted the best and brightest to certain countries. In the United States, for example, 51% of billion dollar tech startups are started by immigrants.

Unfortunately, this idea has not taken hold everywhere in the world. India seizing bank notes is just one small example. Here are some recent examples from around the world:

  • In 2008 Argentina nationalized $30B in private pensions.
  • In 2013, Cyprus seized up to 40% of citizens money out of accounts.
  • In 2016, Syrian refugees had their wealth confiscated by border guards.
  • In 2016, Venezuela had 720% inflation and bolivar lost about 90% of it’s value.

It’s unfair to characterize governments as the only way to lose control of wealth. Seizing funds or hyperinflation are a major problem, but wealth can also be taken by companies or stolen by individuals. We must look holistically at how much control people have of wealth to think about how to increase it.

What happens when people have more control of their wealth?

A lot has been written on this topic, but here is my take on the pros and cons of people having more control of their wealth.

Pros

  1. People work harder
    It’s empowering to know that, with hard work, you can make a better life for yourself and your children. When wealth can be taken from you without your permission, it erodes dignity and the incentive to work hard.
  2. Innovation accelerates
    If you can get rich by building a new product or service, more people try it. With more competition in the market, products and services improve and consumers win. This is one of the most effective ways to improve the human condition, from smartphones to the steam engine.
  3. It attracts the best and brightest
    For much of history, people have voted with their feet by emigrating to places where they have the most opportunity, and places with strong property rights tend to be the most attractive.

Cons

  1. Income inequality can be higher
    Wealth redistribution is mostly incompatible with controlling your own wealth (with the possible exception of private charity). I list this as a con because I think most people view it as one, but it’s not clear that it is one.
  2. Bigger boom/bust cycles in the economy
    If there is less power to adjust interest rates, inflation, etc to dampen out swings in the economy, we may see more volatility in the overall economy.
  3. Bad actors benefit along with good actors
    If people have more control of their wealth, it means that everyone (including bad actors) have an easier time controlling wealth. While, I think 99% or more of the world consists of good people, this is definitely a drawback.

The question here is whether the economic growth from people working harder, more ideas being tried, and attracting the best talent outweighs the downside of income inequality, increased volatility, and enabling bad folks along with the good.

Digital currency as a way to give people more control of wealth

I do think digital currency represents an unprecedented opportunity to increase people’s control of their own wealth in the world. But there are pros and cons to this approach.

Pros

  1. Resistant to confiscation
    With a user controlled wallet (or brain wallet), it is much more difficult to have money seized or confiscated.
  2. Less susceptible to hyperinflation
    There is no central authority in digital currency who can increase the money supply unilaterally.
  3. Universal access
    A smartphone is all you need to access digital currency, and these are becoming ubiquitous in every corner of the world.
 

This video gives a sense of how digital currency can empower people with more control of wealth.

Cons

  1. Cybercrime
    Just as your wealth can be confiscated by governments, your digital currency can be stolen by cybercriminals. Either way, you have lost control of your wealth. By this measure, the security record of most digital currency exchanges has been worse than governments. Luckily, security has been improving as multi-signature wallets have become more usable and established companies have stood the test of time. Digital currency definitely places a higher burden on individuals to understand how to protect your assets today, although it keeps getting easier to use.
  2. Volatility
    Digital currencies still fluctuate in value much more than government currencies. While this can be a good thing for investors speculating on the price, it means that people using it as a currency can still lose wealth. Luckily, digital currencies have also gotten less volatile each year for the past four years. For the first time in 2016, bitcoin became less volatile than some government issued currencies, like the Venezuelan bolivar. I’d expect this trend to continue.
  3. You’re still not 100% in control
    Changes do not come from a central bank. Instead, digital currencies use a consensus model where, for example, 51% of more of the participants on a network must agree to a change. While this is still a relatively new concept, it arguably offers greater checks and balances.

With each of these cons there is cause for optimism when you look at how they are changing over time.

Conclusion

Governments exist to serve their citizens. One could argue that the Indian government recalling bank notes had a positive impact on citizens (more tax revenue for education, roads, etc). Yet it also harmed millions by eroding their wealth. This delicate balance of power between individuals and governments has been in flux throughout history, and it’s helpful to have some checks in place to ensure it doesn’t get too far out of alignment.

Digital currency can be one of those checks, because it provides an opportunity for people all over the world to gain more control of their money. With universal access to smartphones, it will likely spread rapidly to every country in the world. This increase in control for individuals will probably stimulate a great deal of economic growth, and improve the human condition. But it will also introduce some uncomfortable changes into society and has a long way to go, improving security, volatility, and usability, to be compelling to a more mainstream audience. If digital currency can overcome these challenges (and I think it can), it will establish controlling your own wealth as a basic human right for anyone in the world.

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

Bitcoin Exchanges and China’s PBOC Meeting

China’s PBOC Meeting With Bitcoin Exchanges: On A Bright Side?

The price of Bitcoin has been growing steadily in what seems to be a recovery from the setback it suffered on Wednesday, January 18 following reported allegation of irregularities in the operations of major exchanges in China by the People’s Bank of China (PBOC).

Officials of the Bank had met with key exchanges – BTCC, OKCoin and Huobi – on January 11 to remind them of their responsibility to conduct their activities according to the laws of the country. The news of the meeting dipped the price of Bitcoin from the $916 range to as low as $761 due to panic selling which emanated from fears that the onsite inspection could jeopardize investment in the digital currency.

However, after a review of messages from all indications – the PBOC, the exchanges and cryptocurrency insiders, nothing new came out of what was misconstrued for a ban in some quarters aside reiterating what the Chinese government had earlier established about Bitcoin and other digital currencies not being legal tender in China.

It is not new for a ban on cryptocurrency-related activities to come to mind when it comes to China as the country is estimated to be handling about 90% of the world’s Bitcoin operations and holdings. This is a view that has been held for long and hinged on the need for the digital currency’s distribution to be considered a geopolitical risk exposure.

The PBOC’s involvement in bitcoin trading could lead to regulation of the industry. Image from Shutterstock

Rather than a ban in this instance, the government called for a “self-examination” which, in retrospect, means the exchanges and other stakeholders’ need to manage the digital currency’s price fluctuation responsibly owing to the price sudden rise in the first few days of 2017.

The CEO of Decent, Matej Michalko, blamed the “bad players” for the situation. He says in a chat:

“The heated discussion about BTCC compliance with People’s Bank of China showed a palpable misunderstanding of context. The point was to adopt the set of regulatory policies called AML/KYC, that calls for detailed anti-corruption due diligence information sharing and anti-money laundering. Bitcoin came under fire because of the outright abuse of the technology. Various people avoided capital outflow laws and transferred large sums of money, what grabbed the attention of financial agencies. Fault isn’t precisely on the state, nor currency itself, but on the bad players.”

The Chinese government’s expressed concern seems to indicate that it wants to see the price of Bitcoin remain stable. And that was what has been seen in the market for the following days. After the dramatic drop, the price started building up again from January 13 moving between the $801 and $831 range for four days when Theresa May’s speech on the Brexit plan triggered interest in Bitcoin.

It gained more than $80 in the less than 24-hours that followed until the news came out that the results of the PBoC probe into China exchanges would be released on Friday, January 20. The $913 height was back to $864 but has been climbing back to $877 (according to CoinMarketCap) as at the time of this writing.

While it is clear that China has not come down hard on Bitcoin and its recent involvement could be seen as a legitimate concern that could obliquely publicize Bitcoin as recognized by the government, what would happen in the next few days would be critical for Bitcoin owing to the caution that is being exercised presently by the three most influential exchanges in China as well as observing Bitcoin investors.

It is unclear whether the price stability that is currently at play will be sustained for longer to bring about the real growth that is anticipated in the long term based on predictions that 2017 would be a better year for Bitcoin. However, what is clear is that the quick spike to over $1000 in the first five days of the year has put all the major stakeholders on alert and we just have to wait to see what the year would bring for Bitcoin.

Source: https://www.cryptocoinsnews.com/pboc-bitcoin-exchanges-bright-side/

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

Everything You Need to Know About Bitcoin

Everything You Need to Know About Bitcoin

Many netizens have heard of bitcoin, the digital currency. This means it exists electronically. To be more precise, bitcoin is a type of cryptocurrency – the implication of security and encryption is important. Cryptocurrency, or digital currency, is an invention of the Internet. Basically, someone out there thought, "hey, what if…Read more. In this post, we attempt to identify 10 questions about Bitcoins that can give you a clearer understanding of what it is, what it does and how you can use it to buy products or services online.

What are bitcoins?

Bitcoin (capitalized) refers to the software or network (ie: the Bitcoin Network), while bitcoin (not capitalized) refers to the digital currency itself (ie: two bitcoins). he price fluctuates, depending on what people were willing to pay for it. It traded for as low as pennies (during the infancy stage) to as high as USD1200 during its peak in 2013.

Who developed the idea of bitcoins?

The idea of Bitcoin was conceptualized by Satoshi Nakamoto, an anonymous figure. In May 2008, he shared a white paper [PDF] about Bitcoin, a peer-to-peer cryptocurrency. Without disclosing who he was, Satoshi outlined how the currency would work: bitcoins would be ‘mined’ by computer software, transferred directly amongst users and recorded in an untamperable ledger without the need of a third party.

Part of Bitcoin’s appeal is Satoshi Nakamoto’s anonymity, who many view as a selfless act towards a new era of financial revolution. Online detectives have identified a few candidates, including a real-life Japanese person sharing the same name. Some even theorized that Satoshi Nakamoto is a pseudonym for a collective.

In May 2016, the Bitcoin community was shocked when Australian entrepreneur Craig Wright identified himself as Satoshi Nakamoto. Some people believe his claim, some didn’t, but on the whole the Bitcoin community is unaffected – the Bitcoin ecosystem is decentralized, and cannot be controlled by any person(s), including the creator.

What is so special about bitcoin?

Bitcoin is a peer-to-peer currency and runs on a system which allows you to send and receive bitcoins without a third party. To put simply, fiat currencies rely on third parties, such as banks or payment processors like Visa, to verify the transaction. This is how you and I can ensure payment sent was indeed received. However, bitcoin transactions are recorded in a public ledger called the bitcoin blockchain. This information are permanent and publicly viewable on Blockchain.info and cannot be edited or deleted.

This means that the transaction records act as proof of transaction. Bitcoin is also programmed to be non-duplicable, which means double spending is highly unlikely.

What is decentralized currency?

Bitcoin is also a decentralized currency, as in no one government, individual or group holds authority over it. This makes bitcoin spendable anywhere in the world as long as the receiver accepts bitcoins as payment.

Decentralised currencies are a unique concept. Similar to the internet, it is free from geographical boundaries – this is why bitcoin is also dubbed ‘the currency of the internet’.

Due to lack of control and regulations, many countries are understandably wary of bitcoin – and other cryptocurrencies in general – but some progressive countries such as Japan have started to recognize it as currency.

Is bitcoin anonymous?

Bitcoin’s anonymity is a myth. Or rather, it is now much harder to make anonymous transactions with Bitcoin. Because as the ecosystem matures, many bitcoin service providers have started implementing KYC/AML regulations. KYC/AML stands for know your customers/anti-money laundering . This requires users to submit proof of identity and proof of residence.

It is also fairly easy to trace bitcoins. Bitcoins are usually bought from bitcoin exchanges, received as payment, or donated. With transaction details publicly viewable online, it is possible to trace where the bitcoin came from.

 How do you use bitcoins?

Bitcoin can be used for spending, similar to money. Some people also keep them for investment purposes, while others prefer to use them as a method to make international money transfer.  Bitcoin exists electronically and is kept in ‘bitcoin wallets’. There are many types of bitcoin wallets: desktop wallet, mobile wallet, online/web-based wallet, hardware wallet and even paper wallet.

To read more about bitcoin storage, check out this article by CoinDesk. You can have as many wallets and bitcoin addresses (where you receive money from others) as you like.

How many people are using bitcoin?

Estimates vary – it is hard to find out the exact number of people who use Bitcoin. One way to measure number of bitcoin users is by measuring the number of bitcoin wallets. According to CoinDesk’s State of Bitcoin and Blockchain 2016 report, bitcoin wallets doubled to 12.77 million in one year, from the end of 2014 to the end of 2015. Even though many bitcoin users have more than one wallet (it is common to hold a few wallets), this is an indication that the number of bitcoin users worldwide is increasing.

Another way to estimate bitcoin usage is by the number of bitcoin transactions, which has steadily increased. Although this could mean that the same people are simply making more bitcoin transactions, it is fair to assume that there are new bitcoin users in the mix, too.

How do I acquire bitcoins?

There are three main ways to get bitcoins: mine them, buy them, or work for them.

Bitcoin Mining
Bitcoin mining used to be really profitable. However at the current time it is no longer cost effective for the average individual. One will need to buy specialised Bitcoin mining equipment, get/rent dedicated spaces for them, and pay their associated costs (rental, electricity and cooling costs).
Buy Bitcoins
You can buy bitcoins from many online exchanges. There are a lot more options now than ever before – there are global bitcoin exchanges and also country-specific bitcoin exchanges. You can also buy them from other people via Localbitcoins.
Work for Bitcoins
Some people get paid in bitcoins, instead of cash currencies. Websites such as XBTFreelancer… and Coinality list jobs with bitcoin payments.There are other less effective ways to acquire bitcoins. You can get (very) small amounts of bitcoins from bitcoin faucets, which pay you to look at advertisements. You can get them as donations. There are also bitcoin ‘investments’ but if you wish to not lose money, Badbavoid companies that are listed in itcoin Badlist.

How do I send/receive/spend bitcoins?

Bitcoin wallets come with bitcoin addresses, which represent a destination, similar to an email address. Bitcoin addresses are alphanumeric, between 27-34 characters in length. Many bitcoin service providers have user-friendly user interface which allows users to generate bitcoin addresses, send and receive bitcoins.

To send bitcoins, users simply have to ensure positive balance in their bitcoin wallets, insert the receiver’s bitcoin address, and hit send. There is a small miner’s fee to process the transaction – miner’s fees are given as a reward and incentive to Bitcoin miners for maintaining equipment. Bitcoin transactions usually take less than an hour to arrive, but it can take longer or shorter depending on the fee amount and the bitcoin service provider.

You can spend bitcoins anywhere that accept bitcoins as payment. You can also use a Visa/Mastercard-linked bitcoin debit card issued by companies like Wirex or Coinbase.

What are bitcoin’s disadvantages?

Depending on who you ask, you’ll get different answers. Coders and programmers might argue that bitcoin is already an outdated network, compared to some of the newer cryptocurrency networks available. Here we will concentrate on bitcoin’s disadvantages to the casual user:

Advanced digital knowledge is necessary

Bitcoin can be stolen in many ways. It is the bitcoin owner’s responsibility to keep them safe, and this meant implementing additional layers of security such as 2-factor authentication. Keeping them in web wallets can be dangerous. If you have a significant amount of bitcoins, you are advised to keep them in hardware wallets such as Trezor or Ledger.

Bitcoin service providers can be hard to trust

The biggest names have failed the Bitcoin community. Who can forget the Mt. Gox incident in 2014. It was the biggest bitcoin exchanger at the time and practically disappeared overnight along with almost 745,000 bitcoins. More recently in 2016, thieves stole almost 120,000 bitcoins during the Bitfinex hack – and experts still don’t know how they did it.

Lack of acceptance

Cold hard cash is still the widest and most used form of payment – it’s acceptance is second to none. By contrast, bitcoin is only accepted at a handful of shops. However, bitcoin debit cards help to address this issue – linked to payment processors, they help make bitcoin spending a bit easier.

Lack of protection

In general, bitcoin is not considered legal in most countries around the world. Therefore, theft or scam victims have almost no option for recourse. However, the legal landscape is ever-changing and one of the best spots to update yourself on where bitcoin is acceptable or not is Bitlegal.io.

Anti-bitcoin politicians

While many countries around the world mainly cautioned the public against the risky nature of Bitcoin, some politicians or political parties have extreme views about bitcoin. Russian and French lawmakers are considering banning it altogether.

Wrap Up

Bitcoin is cool, but the underlying technology behind it – the blockchain – is even cooler. Turns out, having a method to record data in a way that cannot be tampered or deleted is a good thing. It is also a cost-effective method to store information. Many companies including major banks have expressed interest in the blockchain technology.

David Ogden
Entrepreneur

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

Bitcoin Poses No Threat, say Russian Authorities

Russian Authorities: Bitcoin Poses No Threat, Won’t Be Banned

Source: https://www.cryptocoinsnews.com/russian-authorities-bitcoin-poses-no-threat-wont-banned/

Russia’s deputy finance minister has now stated that the country’s Central Bank and the Federal Financial Monitoring Service do not see any threats in the use of cryptocurrencies like bitcoin.

More notably, the much-publicized and long-deliberated bitcoin ban by the Bank of Russia will not be pursued any longer, the bank’s deputy chairwoman Olga Skorobogatov revealed.

According to a report by Russia’s largest news agency, TASS, the Russian Federation’s Deputy Finance Minister Alexei Moiseev – who notably spearheaded the effort to ban bitcoin from 2014 – is now adopting a wait-and-see approach with the cryptocurrency.

“We will discuss this law [to ban bitcoin] in the current session of Parliament, and possibly even pass it then, or at the very latest by spring next year,” said Moiseev in September 2014. “We are currently dealing with comments from the law enforcement agencies, about the specifics of legal measures, and we will take their remarks into account. But the overall concept of the law is set in stone.”

Having consulted with those experts over the past two years, amid considerable opposition by other Russian governmental authorities against the Finance Ministry’s proposed bitcoin ban bill, Moiseev has now told reporters that bitcoin poses no threat. This, despite comments by Russia’s Investigative Committee chairman Alexander Bastrykin who claimed that bitcoin posed “ a real threat to the financial stability of Russia”, in 2016.

In statements reported by TASS, the deputy finance minister stated:

"So far, we decided just to watch carefully how it is developing. We decided that teh Central Bank and the Federal Financial Monitoring Service should monitor cryptocurrency for Russia’s economic security. So far, these agencies believe that there is nothing critical [as a threat] in it. That means that they [the threats] may appear in the future, but now they do not exist."

The comments represent a remarkable turnaround for an official who vehemently pushed for the approval of the bitcoin ban bill through the Russian house of Parliament. One draft of the ban infamously proposed a 7-year prison term for bitcoin use in Russia, less than a year ago. Ban No More

In statements echoing those made by the Minister of Finance, deputy chairwoman of the Bank of Russia Olga Skorobogatova has separately stated that the central bank will not be taking prohibitive measures with the use of bitcoin.

In statements reported by regional publication CryptoRussia, the central bank official stated:

"With Bitcoin – a private currency, it became clear that [regulation] was not simple. Regulators and authorities agree that they would not like to specifically prohibit [Bitcoin]. [We] would instead like to understand it and on this basis build a regulatory framework."

The telling statements come within months of Moiseev stating that the ban proposal was on hold. While bitcoin could possibly see regulation in Russia, the adoption, mining or use of the cryptocurrency will no longer be considered a criminal offence.

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

Bitcoin at parity with Gold

Bitcoin at parity with Gold

Yesterday evening at 1700 GMT the value of bitcoin surpassed the value of gold, this is the first time any currency has reached that level, could this mean raise the possibility of a change to a new standard.

Below is an extract from wikipedia

 Gold standard and Bitcoin

Bitcoin in grams of goldAccording to research produced by the Bank of Canada, the emerging Bitcoin economy has many similarities with the economy based on gold standard, in particular:[86][87]

  • limited and predictable supply of the anchor of the monetary system

  • no central bank or monetary authority controls the supply

  • low or non-existent inflation

  • virtually no arbitrage costs for international transactions

  • Governments have less control over their domestic economies

  • Governments lose seigniorage revenues that they obtain from the ability to almost costlessly create money

Edward Hadas and Michael Hiltzik noted that monetary systems based on Bitcoin and gold have some similar disadvantages:

  • independence from government[88][89]

  •  price declines[88]

  •  less spending during crisis times[88]

 George Gilder, a proponent of gold standard, proposed breaking "the government monopoly on money" by using a combination of Bitcoin for the internet and treating gold in tax terms as currency.[90][91]

How Will Governments React ?

Bitcoin and other cryptocurrencies are a thorn in the side for conventional Fiat currency which have all abandoned the gold standard of the past when they started to print money as and when they needed. In time of Crisis many people move investments into gold as a safe haven, however holding gold presents a problem its heavy and incurs storage costs and not convenient for day to day shopping. In early times it was not unusual to chip bits off a coin to make payments.

cryptocurrencies can be used both for shopping and person to person transactions protected by blockchain’s. They can easily be moved across borders, even though some countries and the EU are looking at ways of restricting this. It is only when you exchange fiat currencies to and from cryptocurrency that governments may be able to glean information from exchanges. It might make sense for forward looking governments to accept cryptocurrency payments/

Banking is already starting to suffer because the cost of moving money from one country to another via cryptocurrency is minimal compared to fees charged by banks. Also ordinary people are now moving savings into cryptocurrencies which are building a history of yearly growth higher than saving rates.

The use of bitcoin as forex instrument has been explored by banks in the past. A notable example is that of Shinhan Bank, a major South Korean financial institution that began a remittance service in the Korea – China corridor, with bitcoin. Faster, near-instant settlements at significantly lower costs are some of the straightforward benefits of using bitcoin in remittance.

 

David Ogden
Entrepeneur

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