Proposed A Radical Competitor To Bitcoin And The U.S. Dollar

Bitcoin and cryptocurrency competitors are in vogue at the moment with both social media giant Facebook and China planning their own digital currency projects.

The bitcoin price, despite suddenly plummeting this week, has climbed this year largely because the likes of Facebook and South Korean technology behemoth Samsung have tacitly endorsed bitcoin and cryptocurrency technology, helping it to somewhat recover from a disastrous 2018.

Now, Bank of England governor Mark Carney, who has previously poured scorn on bitcoin and its crypto peers, has said a global digital currency, which sounds remarkably like bitcoin, could replace the U.S. dollar as the world’s reserve currency.

The Bank of England governor Mark Carney has suggested governments work together to create a global digital currency–something which could rival bitcoin and other cryptocurrencies. GETTY IMAGES

"[A digital currency] could dampen the domineering influence of the U.S. dollar on global trade," Carney said in a speech at the gathering of central bankers from around the world in Jackson Hole, Wyoming, it was first reported by the Guardian, a U.K. newspaper.

The U.S. dollar is stockpiled by governments around the world to help protect against any downturns in the U.S. economy.

"If the share of trade invoiced in [a digital currency] were to rise, shocks in the U.S. would have less potent spillovers through exchange rates, and trade would become less synchronized across countries," Carney added.

Carney's comments follow attempts by Facebook to win over global financial regulators to its libra cryptocurrency project, expected to launch some time next year.

Facebook has said it wants libra to act as a global currency and is trying to launch the coin in as many countries as possible, though it's thought to have a focus on emerging markets.

Earlier this month, a senior official at China's central bank said it's "almost ready" to issue its own sovereign digital currency, with new research out this week suggesting it could eliminate the need for bank accounts.

"The dollar’s influence on global financial conditions could similarly decline if a financial architecture developed around the new [digital currency] and it displaced the dollar’s dominance in credit markets," Carney added.

Bitcoin enthusiasts were, of course, quick to point out bitcoin would fulfill many of Carney's requirements.

"Bitcoin largely fits the description of what [Carney] is looking for—something ‘removed’ from country borders and independent of country-specific interest rate policies," Richard Galvin, a former investment banker at JPMorgan Chase and now chief executive of Digital Asset Capital Management, told Bloomberg, a financial newswire.

The bitcoin price has climbed so far this year as interest in bitcoin and cryptocurrencies from some of the world's biggest technology companies has grown.COINDESK

Carney has publicly criticized bitcoin however, last year warning bitcoin could be heading for a "pretty brutal reckoning," and that cryptocurrencies have "all the hallmarks of a bubble."

Despite Carney's dislike of bitcoin, the Bank of England earlier this year said it welcomed Facebook’s libra initiative, adding it could be a useful addition to trading goods and services.

Carney's comments are though likely to put him at odds with U.S. president Donald Trump who recently launched a scathing attack on bitcoin and cryptocurrencies in light of Facebook's plans, branding them "unregulated crypto assets" and based on "thin air."

"We have only one real currency in the U.S.A., and it is stronger than ever, both dependable and reliable," Trump said. "It is by far the most dominant currency anywhere in the world, and it will always stay that way. It is called the United States dollar!"

Billy Bambrough

David – http://markethive.com/david-ogden

Portugal Tax Authority – Bitcoin Trading and Payments Are Tax-Free

Portugal’s Tax Authority has clarified that both cryptocurrency trading and payments in crypto will not be taxed in the country, Cointelegraph en Español reported on Aug. 27.

According to a report published on Aug. 26 by Portuguese business newspaper Jornal de Negócios, the Portuguese Tax and Customs Authority have confirmed that crypto transactions or payments are exempt from Value Added Tax (VAT).

The agency reportedly provided the clarification to a local crypto mining company, publishing an official ruling document. In the document, the authority states that the exchange of crypto for fiat money is free of VAT, adding that crypto users do not have to pay any income tax.

Portugal cites a 2015 ruling for crypto tax exempt

In the official statement, the Portuguese tax authority cited a 2015 ruling by the European Court of Justice regarding the case involving major Swedish Bitcoin (BTC) portal Bitcoin.se and its moderator David Hedqvist.

As reported at the time, the court ordered that Bitcoin is a means of payment and that the exchange should therefore be exempted VAT obligations. However, the Swedish Tax Agency subsequently argued against the ruling, claiming that the court did not fully understand the matter.

Earlier stance on crypto

The confirmation follows a previous tax ruling by the Portuguese tax authority that cryptocurrencies are not taxed in the country. A document published by the agency in 2016 states that income from the sale of crypto in Portugal is not subject to income tax.

Earlier in 2013, the central bank of Portugal, the Banco de Portugal issued a statement citing a 2012 crypto-related paper by the European Central Bank.

The Portuguese bank raised concerns over the ECB’s Bitcoin recognition as a “phenomenon of innovation in virtual currency models,” claiming that Bitcoin cannot be considered a safe currency as it its issued by unregulated entities.

By Helen Partz

David – http://markethive.com/david-ogden

Winklevoss Twins – Bitcoin is Going in the Right Direction

The story of Bitcoin has been nothing short of a rollercoaster. The asset had to ensure several years of relative obscurity before finding fame in a 2017 boom and crashing right back down in 2018. However, the world’s most popular asset is back, and Bitcoin trading is now pegged at over $10,000 a token. With a healthy 200 plus percent climb in 2019 alone and all of the momentum in the world, several investors have continued to tout the asset as the best thing to challenge the establishment.

Tyler and Cameron Winklevoss are two of the most vocal proponents of Bitcoin in the world. However, unlike many fans who profess their admiration for the asset, both men have drawn up considerable resources and backed up their bet, opening up the Gemini cryptocurrency exchange and embarking on several cryptocurrency endeavors as well.

Continuing in their massive evangelism for Bitcoin, the Winklevoss twins appeared in an interview with news medium CNN, where they touched on a wide array of issues concerning it.

Amongst other things, the brothers compared the crypto revolution to the Internet boom that took the financial world by storm decades ago, adding that unlike then, it is possible (easy, in fact) for everyone to be a part of this trend. “Unlike the Internet which you couldn’t buy a piece of, you can actually buy a piece of this digital money,” said Tyler, before adding that Wall Street has been “asleep at the wheel.”

As regards the safety of the investment vehicle (especially when compared to treasury bills and other securities that operate in the regulated market), Cameron stated that investing in Bitcoin is a lot like putting your money in the conventional gold. He said, “It’s more of an investment in gold, but this is a new asset class. It’s the future, it’s volatile, and while there has been a few ups and downs, we feel like it is going in the right direction.”

The brothers also spoke on the issue of safety as regards cryptocurrencies, especially with several notable government figures (including Federal Reserve Chairman Jerome Powell and U.S. Treasury Secretary Steve Mnuchin) pointing out that Bitcoin and Libra (the stablecoin from social media giant Facebook) poses various threats for user protection.

On the issue, Cameron highlighted that their concern for user safety has always been a priority, so much so that it has been ingrained in the culture and identity of Gemini. Tyler chimed in, adding that while these concerns are valid, they aren’t generic to crypto assets. He pointed out that while Bitcoin has been used by drug dealers and terrorists in the past, developments in blockchain forensics have made the asset far more traceable.

Concluding, he said, “I don’t think it’s a unique problem to Bitcoin or crypto… Again, I’ll go back to the dollar and point out that more criminals have used the dollar than anything else.”

While both men are avid Bitcoin fans, their defense of Libra is particularly impressive. Gemini has been rumored to be joining the Libra Association (Libra’s governing body) for a while now, and given how they defended the asset on CNN, it would seem that they could indeed be ready to put their differences with Facebook and its CEO, Mark Zuckerberg, aside and join forces with the social media company.

By Jimmy Aki

David – http://markethive.com/david-ogden

Bitcoin {BTC} breaches the 10.5k mark – Switzerland and U.S. politicians meet following release of LIBRA

After bears had brought BTC all the way down to $10,000 a trend reversal occurred. This had helped Bitcoin rally along with the majority of the altcoins. Once again, Bitcoin proved its worth over Gold [in spite of the latter facing much less volatility], which indicates that Peter Schiff along with the rest of the “Gold Barons” is wrong.

However, BTC has a long way to go, as the market capitalization is nowhere near that of the precious metal. Although, the latter has generally reacted to events transpiring around the world in a gradual manner.

The lawmakers hailing from the United States had conducted an interactive session with authorities in Switzerland. It seems that the Trump administration is still unsure with regards to the LIBRA project of Facebook.

Maxine Waters, a representative of America, expressed her dismay at a “privately controlled” global currency. Well, the Dollar is manipulated by powerful entities associated with numerous financial bodies in the U.S.A. So her point on the centralization of LIBRA is moot. Because banks have been responsible for economic dilemmas for ages.

While the mainstream community of crypto-enthusiasts is yet to be optimistic about the latest venture of Facebook, David Marcus of Calibra [previously PayPal] has said that LIBRA intends to abide by all regulations in place. Let’s hope that we don’t come across a “Cambridge Analytica data scandal” type of situation this time.

Bitcoin is the top-ranked digital currency in the market. The eleven-year-old king coin rose at a rate of 2.82% in the course of the past 24-hours. The trading volume recorded is $17.132 billion, while the supply has 17,897,337 BTC coins in play. At present, the total market cap of Bitcoin is $186.279 billion. As of this moment, BTC is priced at $10,408.22

BY ADITYA CHATTERJEE ON AUGUST 26, 2019

David – http://markethive.com/david-ogden

Bitcoin (BTC) Price Testing Last Line Of Defense With Positive Bias

Bitcoin price is showing positive signs and settled above $10,000 against the US Dollar.

The price is now trading near the key $10,400 resistance area, which is preventing gains.

Yesterday’s highlighted important bearish trend line is acting as a solid resistance near $10,420 on the hourly chart of the BTC/USD pair (data feed from Kraken).

The price is likely setting up for the next key break either above $10,500 or below $10,250.

Bitcoin price is trading with a positive bias above $10,200 against the US Dollar. However, BTC must surge above $10,400 and $10,500 to move into an uptrend.
 

Bitcoin Price Analysis

In the past few sessions, there was a steady recovery in BTC above $10,000 against the US Dollar. The price even traded above the $10,200 and $10,250 resistance levels. Moreover, there was a close above the $10,200 level and the 100 hourly simple moving average. As a result, there was a decent recovery in many altcoins as well, including Ethereum, ripple, ETC, bitcoin cash and EOS.

Bitcoin price gained pace above the 23.6% Fib retracement level of the key decline from the $10,975 swing high to $9,757 low. The recent wave was such that the price even spiked above the $10,400 level. Moreover, there was a break above the 50% Fib retracement level of the key decline from the $10,975 swing high to $9,757 low. However, the bulls faced a strong resistance just below the $10,500 level.

Additionally, yesterday’s highlighted important bearish trend line is acting as a solid resistance near $10,420 on the hourly chart of the BTC/USD pair. The pair is now consolidating below the trend line and the $10,500 resistance. Moreover, the 61.8% Fib retracement level of the key decline from the $10,975 swing high to $9,757 low is at $10,510.

Therefore, the price could rally if it breaks the trend line and the $10,500 resistance area. The next stop for the bulls could be near the $11,000 resistance area in the near term. On the other hand, an immediate key support is near the $10,250 level. If there is a downside break below the $10,250 support, the price could start a fresh decline in the coming sessions.
 

Bitcoin Price Analysis BTC Chart

Looking at the chart, bitcoin price is clearly setting up for the next key break either above $10,500 or below $10,250. There are high chances of a fresh bearish wave as long as the price is below the $10,500 pivot area.
 

Technical indicators:
 

Hourly MACD – The MACD is slowly losing momentum in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently above the 50 level.

Major Support Levels – $10,250 followed by $10,000.

Major Resistance Levels – $10,420, $10,500 and $10,680.

Aayush Jindal

1 min ago

David – http://markethive.com/david-ogden

China Plans to Introduce New Crypto to Rival Bitcoin, Say’s Analyst

An influential officer of the PBoC at the meeting of China finance 40 groups had declared China’s intention to introduce a sovereign crypto asset. The declaration of this proposed introduction is unexpected at this time due to the ongoing currency war and trade dispute with the U.S.

China’s Progressive Crypto Route

Mu Changchun, the deputy director in the payment and settlement division at the PBoC had declared during the meeting with bankers that the prototype for the unspecified project is ready to be adopted. This declaration was reported by the local news media of Shangai securities during the weekend. The deputy director further discussed the digital asset intricacies. He added that blockchain features are noticeable in its product but not developed around decentralized ledgers because the retailers and banks use high-bandwidth and speed in China. As it is, the use of a reserve model by the PBoC similar to Circles USDC or a digital fiat model is not certain.

As for the cryptocurrency, it is intended to function in two ways. The upper layer will be operated by PBoC and the lower level will be operated by the retail banks. Changchun had explained that the operational splitting into two segments is to make the project function positively in a complex and massive economy in China.

How this will function was not explained, however, the assumption is that the split structure will function similar to the present double segment structure like that of the present division among Central banks and banks. To further make clear, the PBoC releases the currency and manages high-level payments while the retail banks operate on the adoption and utilization of the cryptos.

As of now, the deputy director Changchun asserts that the crypto is best utilized for “smaller-unit retail high-frequency trade dealings”.

China Crypto May Pose a Challenge to Bitcoin

As a result of the introduction of Central bank digital currencies (CBDCs) coming into the space of international finance, discussions centered on the scenario mostly from analysts and economists are dominating the news in the crypto sphere.

A new york University Professor and economist knew for his negative bias towards Bitcoin recently declared in his publication late last year, titled Column for Project Syndicate that the introduction of CBDC’s to the digital sphere will “shut the avenue for Crypto-scammers”.

Probably, most digital payments systems may be changed by the “CBDCs”. Roubini stated by making clear that different to traditional retail banks and websites like Paypal, having high transaction fees, failed transactions and high resistance to free use, the Central banks offer a cost-effective and efficient approach at intermediating and lending money.

Roubini explained that giving access to any person to make payments using the central bank’s platforms, “CBDCs process will automate the structure, easing the requests for money, default banking accounts, and also a digital form of money services”.

In this scenario, the conclusion reached by the economist was declared as having CBDCs replace cryptocurrencies, with Bitcoin included, as offering an alternative to low-cost security and decentralized coins by the simplicity of central banking application.

David – http://markethive.com/david-ogden