Cryptocurrency latest – Unprecedented Bitcoin legal battles BAFFLE top regulation lawyers

Cryptocurrency latest - Unprecedented Bitcoin legal battles BAFFLE top regulation lawyers

Cryptocurrency latest – Unprecedented Bitcoin legal battles BAFFLE top regulation lawyers

UNPRECEDENTED legal battles are set to take place in the UK after it was reported that divorce lawyers are struggling to come up with settlement agreements over cryptocurrencies.

The unusual legal cases are said to concern at least three couples looking to legally separate.

One pair has a fortune of £600,000 in cryptocurrencies that they are currently struggling to agree how to split.

The lack of regulation surrounding the digital currencies means that there is little legal cover for those looking to protect their online assets in the case of a divorce.

Bitcoin, Litecoin, Ripple and Ethereum are all understood to be at the centre of online money involved in the divorce cases.

Vandana Chitroda, a partner at the law firm Royds Withy King, said: “These are the first cases we have seen, and we expect to see many more.

“We believe that cryptocurrencies will be a significant feature in a large number of divorces.

“Whilst cryptocurrencies are volatile, they are not going to go away.”

Bitcoin has dramatically seen its value plunge throughout 2018 from a record high of nearly £15,000 in December 2017 to now under £7,000.

However, there is evidence to suggest the number of people investing in cryptocurrencies is rising.

Ms Chitroda added: “It is important that if you believe your husband or wife has invested in or purchased cryptocurrencies, such as Bitcoin, and you are separating, you tell your legal adviser.”

Countries around the world are currently looking at implementing regulation for digital currencies in an effort to catch up with the latest financial craze.

The finance minister and Central Bank Governors of France and Germany have requested that talks on policy and monetary implications of cryptocurrencies be part of G20 talks in March.

They want world leaders to come up with a global strategy for the online assets.

Some countries have already begun to act unilaterally to increase regulation.

South Korea introduced a raft of measures last month aimed at regulating Bitcoin and similar currencies such as Ripple and Ethereum.

A ban on anonymous trading was implemented by the Asian power in a bid to crack down on all possible criminal activities the secret nature of trading Bitcoin allowed.

Meanwhile, India’s Government has said it does not consider cryptocurrencies to be legal tender and will try to phase out payments using the online money.

 

 

 

Author DAN FALVEY UPDATED: 05:29, Thu, Feb 15, 2018

 

Posted by David Ogden Entrepreneur
David Ogden Cryptocurrency Entrepreneur

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

Bitcoin drops below $6,200 for first time in three months

Bitcoin drops below $6,200 for first time in three months

Bitcoin drops below $6,200 for first time in three months

The virtual currency fell to $6,190 for the first time since mid-November, according to Bloomberg News, and represents the latest hammering for a unit that saw a stratospheric 26-fold rise last year.

Bitcoin plunged 20 per cent to a three-month low today, its latest sharp loss following a series of setbacks for the cryptocurrency that, with a collapse across global mainstream markets adding to the selling.

The virtual currency fell to $6,190 for the first time since mid-November, according to Bloomberg News, and represents the latest hammering for a unit that saw a stratospheric 26-fold rise last year.

Today's collapse comes just six weeks after bitcoin hit a record high of $19,511, fuelled by a flood of speculators looking to make a quick buck, with warnings it could fall another 50 per cent.

Since those heady days the cryptomarket — which includes dozens of other units — has been pounded by news of crackdowns by governments including in China, Russia and South Korea, one of the biggest markets for the sector.

On Thursday, India said it would "take all measures to eliminate" cryptocurrencies' use as part of a payment system and in funding illegitimate activities, while Japanese authorities raided a virtual currency exchange after it lost $530 million to hackers.

Central bank in Europe, Japan and the United States have also flagged concerns about the unit and this week saw several commercial lenders say they would stop allowing their customers to buy bitcoin through their credit cards owing to debt concerns.

Stephen Innes, head of trading for Asia Pacific at Oanda, said "the dynamics behind the moves are regulatory clampdowns and investors losing confidence in crypto".

The sell-off on Tuesday was exacerbated by crushing losses on world stock markets, with the Dow on Wall Street suffering its biggest one-day points loss and wiping out all its 2018 gains.

The global rout comes as panicked investors fret over rising US borrowing costs, leading them to cash in profits after a stellar couple of months that have seen many indexes hit record or all-time highs.

Equities have enjoyed months of surges fuelled by optimism over the US economy, corporate earnings and the global outlook.

But while traders have been piling into equities, pushing many global indexes to record or multi-year highs, there has been growing concern on trading floors about elevated US Treasury bond yields — at four-year highs — and the likelihood of fresh Federal Reserve interest rate hikes.

"The risk-off tone is hitting Bitcoin almost as hard as a global regulator and bank scrutiny," said Greg McKenna, chief market strategist at AxiTrader. "The latest dent to the Cryptospace has been banks saying they are shutting down the ability of clients to buy bitcoin with their cards."

"This could end up a full round trip back into the $1,850/$2,966 region.

Source: Feb 06, 2018 10:39 AM IST | Source: PTI

 

Posted by David Ogden Entrepreneur

David Ogden Cryptocurrency entrepreneur

 

 

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

Cryptocurrency Markets Move Back Into Green After Substantial Selloff

Cryptocurrency Markets Move Back Into Green After Substantial Selloff

Cryptocurrency Markets Move Back Into Green After Substantial Selloff

Cryptocurrency markets are rebounding today, Feb. 3, following yesterday’s multi-month low in Bitcoin's price. Most of the top 50 coins are in green, with 24 hour gains over 20 percent.

In part due to pressure from misleading reporting on regulations in India, the overall cryptocurrency market took a massive nosedive starting Thursday, Feb.1, shedding more than $100 billion in market cap in the 24 hours following the news.

However, after the substantial selloff, the market has spent today bouncing back, with Bitcoin rising back above the $9,000 level. At press time, Bitcoin was trading at an average of $9,095, up 3.54 percent on the day.

Following Bitcoin’s lead, other coins have also rallied substantially. With the except of three coins, every top 50 cryptocurrency has seen gains, with Litecoin (LTC) and Cardano (ADA), and Verge (XVG) leading the pack with gains between 15 and 20 percent.

A quick glance at the Coin360 market snapshot indicates a clear positive turn after the substantial negatives of the week.

Despite the market lows this week, figures such as Litecoin founder Charlie Lee and CNBC’s Cryptotrader host Ran Neuner have made bullish statements recently about Bitcoin. In an interview with Cointelegraph, Lee in particular offered some level-headed perspective on volatility in crypto markets, often lacking in a market crowded with fearful newcomers.

News of the first Canadian Blockchain ETF approval may well have played into today’s rally.

Bitcoin hit a record high of 20,000 in late December, only to crash, along with the rest of the market, just a few days later, Dec. 22, when Bitcoin and altcoins lost 20-30 percent.

Since then, the leading cryptocurrency has yet to fully recover, hovering roughly between $10-$15,000 per coin, until this yesterday’s multi-month lows under $8000.

The entire month of January saw a market sell off, in part due to increased regulatory news from South Korea – and misleading reporting on it – that left many investors fearful.

 

Author Jon Buck

 

Posted by David Ogden Entrepreneur
David Ogden Cryptocurrency Entrepreneur

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

Old hands in South Korea bitcoin market unfazed by threats of ban

Old hands in South Korea bitcoin market unfazed by threats of ban

Old hands in South Korea bitcoin market unfazed by threats of ban

  • Veterans of the bitcoin market say restrictions would be relatively easy to circumvent

  • Investors in the cryptocurrency market are used to wild moves in the space

  • Expert say a ban might discourage new participants, but anonymity makes it easy for those already in the markets to move digital assets around the world

Threats of a potential cryptocurrency trading ban in South Korea have scared many investors away, but some veterans of the young market are defiant, saying restrictions would be relatively easy to circumvent.

Although the cryptocurrency market lost about $200 billion this week, or a third of its value, these investors – known within the community as "hodlers" after a misspelled meme that went viral during Bitcoin's early days – are used to rollercoaster rides.

China's shutdown of local exchanges in September, for instance, caused a 50 percent drop in Bitcoin, but prices rebounded eight-fold to almost $20,000. Currently valued around $10,000, Bitcoin could be poised for a similar whirlwind this time around, some say.

"In case the government shuts down all local exchanges,investors can always go abroad and open an account there," said a South Korean student who declined to be named because of legal risks. "I can ask my friends who study abroad or travel there myself. It's not that big of a problem."

Cryptocurrency experts say the student probably has good reason to be relaxed. A ban could discourage new market entrants, but the anonymity of buyers and sellers and the ability to move digital assets anywhere in the world with a click makes it hard to impose restrictions on existing participants without a global consensus.

Places like Singapore and Hong Kong maintain light regulations, while neighboring Japan has encouraged a vast ecosystem of companies and investors around digital assets by pioneering a set of rules for the industry. Germany has said national restrictions may be useless.
 

VPNs, offline wallets

According to industry experts, the first step to circumventing a ban is hiding IP addresses from authorities via virtual private networks (VPNs).

Traders can then continue business as usual. Decentralized exchanges, such as Shapeshift or Stellar Dex, do not require identification and can be accessed from anywhere.

Cryptocurrency wallets such as Exodus and Jaxx are linked to such exchanges, so trading and storing the assets can still be anonymous. Authorities in countries with strong legal protections may need a warrant to check computers or smartphones for proof of such activity.

Threats of a potential cryptocurrency trading ban in South Korea have scared many investors away, but some veterans of the young market are defiant, saying restrictions would be relatively easy to circumvent.

Although the cryptocurrency market lost about $200 billion this week, or a third of its value, these investors – known within the community as "hodlers" after a misspelled meme that went viral during Bitcoin's early days – are used to rollercoaster rides.

China's shutdown of local exchanges in September, for instance, caused a 50 percent drop in Bitcoin, but prices rebounded eight-fold to almost $20,000. Currently valued around $10,000, Bitcoin could be poised for a similar whirlwind this time around, some say.

"In case the government shuts down all local exchanges,investors can always go abroad and open an account there," said a South Korean student who declined to be named because of legal risks. "I can ask my friends who study abroad or travel there myself. It's not that big of a problem."

Cryptocurrency experts say the student probably has good reason to be relaxed. A ban could discourage new market entrants, but the anonymity of buyers and sellers and the ability to move digital assets anywhere in the world with a click makes it hard to impose restrictions on existing participants without a global consensus.

Places like Singapore and Hong Kong maintain light regulations, while neighboring Japan has encouraged a vast ecosystem of companies and investors around digital assets by pioneering a set of rules for the industry. Germany has said national restrictions may be useless.
 

VPNs, offline wallets

 

According to industry experts, the first step to circumventing a ban is hiding IP addresses from authorities via virtual private networks (VPNs).

Traders can then continue business as usual. Decentralized exchanges, such as Shapeshift or Stellar Dex, do not require identification and can be accessed from anywhere.

Cryptocurrency wallets such as Exodus and Jaxx are linked to such exchanges, so trading and storing the assets can still be anonymous. Authorities in countries with strong legal protections may need a warrant to check computers or smartphones for proof of such activity.

Even then, unless caught in the act, the holder can claim no trading has taken place since the legislation was approved and has forgotten the password for the wallet.

Some decentralized exchanges offer derivative products that allow betting on the price of a cryptocurrency against a fiat currency, including the Korean won and Chinese yuan. But cashing out in fiat is not possible on such exchanges.

An option in that case is to trade all cryptocurrencies for a top one such as Bitcoin, Ethereum or Litecoin, and sell it at one the 2,064 crypto ATMs in 61 countries, although the transaction fees can exceed 10 percent. If need be, coins can be stored on offline "wallets" the size of a USB stick.

Alternatively, holders can open bank accounts in countries that have not banned Bitcoin, then join a local centralized exchange where they can trade cryptocurrencies for fiat.

"I hold everything in a hard wallet the size of my thumb. I have copies of my private keys in a safe. I have accounts on four exchanges on three continents. If any government wants my money, good luck to them," said a Hong Kong-based investor who claims to hold "about $1 million" in various cryptocurrencies.
 

Crossing borders

A 30-year-old nurse in Seoul said she had already switched to Hong Kong-based exchange Binance before the government's warnings hit the market. Company officers at Seoul-based exchanges say, anecdotally, such moves have accelerated.

"All this could lead to serious money outflow and only the government is not aware of it," one officer said, requesting anonymity.

South Korea accounts for between 5 and 15 percent of daily Bitcoin trading. The value of all Bitcoins is around $200 billion.

If opening accounts overseas proves difficult, friends,family or the local Bitcoin community can help. Another option is to find someone with access to an exchange – preferably using encrypted social media apps such as Whatsapp or Telegram – and sell to them at a discount. But fraud is a risk.

"There could be a black market where people who can cash out offshore can pay you in won for your Bitcoins," said Aurelian Menant, chief executive of Hong-Kong based exchange Gatecoin.

But that leaves the door open to "dodgy stuff," Menant said, adding that the fear of scams in the aftermath of a ban may deter new investors, potentially shrinking Korean trading volumes "from billions to millions."

 

Source CNBC

 

Posted by David Ogden Entrepreneur
David Ogden Cryptocurrency Entrepreneurs

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

Vietnam Becomes the Latest to Ban Bitcoin, but in China, the Rules May Be Changing

Vietnam Becomes the Latest to Ban Bitcoin, but in China, the Rules May Be Changing

Vietnam Becomes the Latest to Ban Bitcoin, but in China, the Rules May Be Changing

Vietnam became the latest nation state to launch an attack on cryptocurrency, as regulators sided with the alarmists without providing much of a rationale.

Vietnam Issues Ban

The ban, which applies to all cryptocurrencies not deemed legal tender, was issued via formal statement by the State Bank of Vietnam. The punishment for accepting or offering payments in bitcoin can run more than $8,000 USD.

Vietnam’s central bank says only traditional forms of payment are accepted within its borders. This includes cash, checks, credit cards and other electronic payments.

The state-run bank has issued the following statement, according to Mirror:

“Bitcoin virtual currency and other similar is not lawful means of payment in Vietnam; The issuance, supply, use of bitcoin and other similar virtual currency as a means of payment is prohibited in Vietnam.”

The announcement, whenever it was made, had very little impact on cryptocurrency trading. At press time, bitcoin (BTC/USD) was trading at $6,162 for a gain of $57.

The bulls blew the door wide open this weekend, sending bitcoin north of $6,300 for the first time ever.
 

Chinese Ban? Let’s Move to Hong Kong

Now that China’s Communist Party gathering has come and gone, sanity appears to be returning to public discourse. That is, according to a recent report from CNLedger, which our pals at CCN.com recently covered. The trusted news sources have revealed that OKEX is expected to launch its peer-to-peer OTC bitcoin trading platform shortly.

As it turns out, OKEX and several other leading blockchain companies like BTCC and Huobi-Pro are located in Hong Kong. Theoretically, their presence in the Special Administrative Region allows them to circumnavigate the mainland’s recent ban on everything crypto-related.

It should be noted that OKEX is offering a bitcoin-to-crypto trading platform. Regardless of what Beijing thinks, it might not be a good idea to launch this platform on the mainland. That’s because the Chinese government recently blocked a major port for MetaTrader4, which is the engine of the online forex community.

Regulators have apparently shut down port ‘443’, which is used for secure web browser communications. The port also happens to be the one MT4 brokers use to connect to their trading server.

The port probably inhibits the government’s ability to spy on traders, or at least monitor their data flows (like that’s different?). There’s reason to believe this ban could extend to other trading platforms that utilize a similar standard.

Last month, China broadened its online censorship by blocking WhatsApp, the popular messaging platform acquired by Facebook for way too much. The ban was another blow to the social networking giant, as it too is banned on the mainland.

 

Author: Sam Bourgi

 

Posted by David Ogden Entrepreneur
David Ogden Cryptocurrency Entrepreneur

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

$11 Billion – 24-Hour Cryptocurrency Trading Volume Hits New Record

$11 Billion - 24-Hour Cryptocurrency Trading Volume Hits New Record

$11 Billion – 24-Hour Cryptocurrency Trading Volume Hits New Record

Cryptocurrency trading volume reached a new milestone on Friday, crossing $11 billion for the first time amid regulatory uncertainty in China.

Crypto Markets Post Record Volume

According to data obtained from CoinMarketCap, the combined 24-hour trading volume of all cryptocurrencies rose to $11.5 billion shortly after 16:00 UTC. The only other time daily trading volume has surpassed $10 billion was on August 19, when it briefly spiked to $10.5 billion


Cryptocurrency Trading Volume & Market Cap Chart from CoinMarketCap

Bitcoin topped the charts with $4.2 billion in volume, while ethereum and litecoin posted $1.9 billion and $1.5 billion, respectively. In all, 10 different currencies posted volume greater than $100 million.

$11 Billion - 24-Hour Cryptocurrency Trading Volume Hits New Record
Chart from CoinMarketCap

Bithumb and Bitfinex each handled about $1.5 billion in trades while Chinese bitcoin exchange OKCoin accounted for $750 million. Altogether, at least seven exchanges, including GDAX, Bittrex, Poloniex, and Huobi surpassed the $500 million mark (Volume had tapered off a bit by the time of writing, so it is possible Kraken and Coinone crossed $500 million earlier in the day).

Friday’s trading volume surge was caused by market volatility stemming from China’s crackdown on bitcoin exchanges. Yesterday, the markets crashed following reports that a bitcoin exchange ban was “certain” and BTCC’s subsequent announcement that it would shut down all trading services at the end of September. The markets continued to plunge Friday morning as Huobi and OKCoin were rumored to be meeting with regulators and two smaller exchanges–Yunbi and ViaBTC–also announced September closures.

However, later in the day OKCoin and Huobi issued concurrent statements that suggested they might continue providing cryptocurrency-to-cryptocurrency trading services. Both exchanges announced that they would close CNY trading pairs on October 31, but–unlike BTCC, Yunbi, and ViaBTC–they did not announce the suspension of “all trading.” Moreover, they indicated that they “expect to continue to provide Chinese users with [compliant] digital asset services.”

These announcements led to an immediate rally, and trading volume soared to a record level as the markets climbed back to $120 billion after dipping below $100 billion earlier in the day.

 

Author: Josiah Wilmoth on 15/09/2017

 

Posted by David Ogden Entrepreneur
David Ogden Cryptocurrency Entrepreneur

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

SEC Warns Public to Avoid ICO Scams Manipulating Stock Prices

SEC Warns Public to Avoid ICO Scams Manipulating Stock Prices

SEC Warns Public to Avoid ICO Scams Manipulating Stock Prices

The U.S. Securities and Exchange Commission (SEC) has issued an investor alert intended to warn the public about companies using claims about initial coin offerings (ICO) to manipulate their stock prices.

SEC: Avoid ICO-Related Microcap Scams

The alert, which was published by the SEC Office of Investor Education and Advocacy, specifically focuses on publicly-traded companies who claim to be involved with or investing in ICOs. They allege that companies use the lure of cutting edge technology like ICOs to manipulate their stock price and facilitate pump-and-dumps.
 

From the alert:

Fraudsters often try to use the lure of new and emerging technologies to convince potential victims to invest their money in scams. These frauds include “pump-and-dump” and market manipulation schemes involving publicly traded companies that claim to provide exposure to these new technologies.

 

The SEC had previously issued an investor alert regarding direct ICO participation, but they have found that companies may be “publicly announcing ICO or coin/token related events to affect the price of the company’s common stock.” This is particularly a problem with microcap companies, whose stock price can be manipulated in the same way that traders can artificially pump up the price of a cryptocurrency with a small market cap and then dump their coins to secure a profit.

SEC Cracks Down on Public Bitcoin Firms

The Commission says this type of fraud is often rampant within the emerging technologies sector. For this reason, they have been cracking down on publicly-traded bitcoin firms in recent months. In August alone, the SEC has suspended securities trading for CIAO Group (OTC: CIAU), First Bitcoin Capital Corp. (OTC: BITCF), and Bitcoin Crypto Currency Exchange Corporation (OTC: ARSC). All of these companies had seen dramatic increases in the price of their stock, leading the SEC to want to take a closer look at their operations.

According to the release, the SEC issues trading suspensions due to the following occurrences:

  • “A lack of current, accurate, or adequate information about the company – for example, when a company has not filed any periodic reports for an extended period;
  • Questions about the accuracy of publicly available information, including in company press releases and reports, about the company’s current operational status and financial condition; or
  • Questions about trading in the stock, including trading by insiders, potential market manipulation, and the ability to clear and settle transactions in the stock.”
  • A suspension does not necessarily mean a company is acting nefariously, but the SEC warns investors to take caution when considering an investment in a company whose stock has been suspended.

The SEC has been monitoring the cryptocurrency industry with an increasingly watchful eye. Last month, they issued a report concluding that DAO tokens are a security, which implies that smart contract tokens may also fall under securities regulations. This is one reason why Filecoin restricted its record-setting $250 million ICO to investors willing to submit to SEC accreditation.

 

Author: Josiah Wilmoth on 29/08/2017

 

Posted By David Ogden Entrepereneur

DAvid Ogden Cryptocurrency Entrepreneur

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Estonia could offer ‘estcoins’ to e-residents

Estonia could offer estcoins to e-reidents

Estonia could offer ‘estcoins’ to e-residents

The proposal to issue crypto tokens would make the Republic of Estonia the first country with an Initial Coin Offering (ICO).

What would happen if a country, such as Estonia, issued its own crypto tokens?

This radical question is at the heart of an ambitious new proposal that, if implemented, has the potential to benefit both the country and its fast growing community of e-residents.

‘Estcoins’ could be managed by the Republic of Estonia, but accessed by anyone in the world through its e-Residency programme and launched through an Initial Coin Offering (ICO).

First though, I want to tell you how we got to this point because it’s the result of another question that we asked almost three years ago, which seemed even more radical at first:

‘Estonia has just 1.3 million residents, but what would happen if our country had 10 million digital residents too?’

At that time, every citizen and resident could already obtain a secure digital identity that enabled them to access Estonia’s public services entirely online. This minimised bureaucracy and made every day life easier, especially for entrepreneurs.

So then we wondered — why stop there? Our digital infrastructure can handle far more ‘users’ than the current population.

If anyone, anywhere could also apply for a digital identity issued by the Estonian government then they too could access our public e-services and our business environment. They could then enjoy many of our same advantages online, especially when it came to starting and running a company, no matter where in the world they are.

E-residents and service providers gathered offline in Tallinn for an e-Residency roundtable

As a result, Estonia became the first country to launch e-Residency.

At first, we didn’t exactly know who would apply and what these people would want most from the programme, but it quickly became clear that e-Residency offered huge value to entrepreneurs seeking trust, location-independence, minimal bureaucracy, low business costs and access to a wider range of fintech services.

The latest statistics show that there are now more than 22,000 e-residents signed up from 138 countries and they make an enormous contribution to Estonia in return for the opportunities that we deliver to them. In fact, the weekly application rate is currently higher than Estonia’s weekly birth rate!

The ability to start a location-independent company is now the main ‘product’ that’s driving the growth of e-Residency. If we left it at this then it is likely that we could still achieve a respectable rate of growth (especially among the fast growing ‘digital nomad’ community) while solving a major problem facing our world, which is how to ensure everyone has the opportunity to benefit from entrepreneurship and rising e-commerce. Even the United Nations has now partnered with e-Residency to launch eTrade For All, which is helping tackle financial exclusion in developing countries.

But as more people discover e-Residency, more uses for e-Residency are being discovered.

The private sector is investing in products and services specifically for e-residents and there is a tremendous amount of excitement in how the secure digital identities offered by e-Residency can enable easier KYC and onboarding, therefore making the e-Residency community an attractive customer market for new online services. It’s incredibly exciting that so much of the fintech industry shares our vision for a borderless digital world with opportunities for all. In recent months for example, Holvi has invested in e-Residency business banking that can be accessed entirely online, TransferWise has unveiled their new borderless account, Change is creating the first decentralised bank for e-residents and Mothership is launching a cryptocurrency exchange.

As a result, e-Residency is now creating a new borderless digital nation where many opportunities provided by traditional nations can be offered entirely online to anyone, anywhere. As Estonian President Kaljulaid recently explained, we must keep innovating to ensure that governments remain relevant in the digital era.

Right now for example, Estonia is planning the world’s first ‘data embassy’, which will support Estonia’s digital infrastructure in a location abroad with the same protections granted to traditional embassies. Just as Estonia’s digital society has become location-independent, this development forms part of Estonia’s broader plan to ensure its state can function entirely independent of its own territory too.

The rise of cryptocurrencies and ICOs

It’s clear that there is strong interest in cryptocurrencies and other blockchain-based solutions among our growing community of e-residents.

Just like e-Residency, cryptocurrencies have evolved from a niche idea into an increasingly normal part of modern life for people everywhere in the world because they offer real solutions to real problems.

Several countries have begun experimenting with the introduction of their own digital currencies and China has even developed a prototype cryptocurrency that could one day be put into circulation.

However, Estonia has a clear advantage in this area due to its advanced digital infrastructure and its e-Residency programme. No other country has come close to developing both the technology and the legal frameworks that would enable them to introduce and securely manage tradable crypto assets globally.

It has understandably taken time for all governments to understand and embrace cryptocurrencies as they have a duty to address major challenges, such as the risk of money laundering. In the long term, however, governments may have no option but to (literally) accept cryptocurrencies.

Fortunately, the secure digital identities used by e-residents (as well as citizens and residents of Estonia) are now the ideal mechanism for securely trading crypto assets in a trusted and transparent digital environment. The tokens can not be counterfeited and the government oversight means they can not be used for illegal activities.

The rise of cryptocurrencies has led to another interesting blockchain-based innovation in the private sector called an Initial Coin Offering (ICO), which enables companies to crowdfund their finance and incentivise a wide range of people to help grow their business.

So could a government support an ICO too?

After all, people do already talk about ‘investing in a country’, but what they really mean is investing in opportunities related to that country — such as companies, property or bonds. You may believe in the future of the country and want to help it succeed, but you can only invest in it indirectly at present.

We already know that many people become e-residents simply because they are fans of our country, our technology and our ideas, and being an e-resident enables them to show their support.

A government-supported ICO would give more people a bigger stake in the future of our country and provide not just investment, but also more expertise and ideas to help us grow exponentially.

How could ‘Estcoins’ work?

This why we are proposing the introduction of estcoins, which could enable anyone to invest in a country for the first time.

Investing in any crypto asset can come with high risks and high rewards, but holders of estcoins would have the added incentive of supporting the development of our digital nation.

There are several ways that the initiative can be structured, but it is important that Estcoin investors gain only when all of Estonia gains.

Ethereum founder Vitalik Buterin has a keen interest in Estonia's development as a digital nation and has provided valuable feedback for the estcoin proposal.

He believes estcoins could be used to incentivise investors to support the success of a country in a way that is not currently possible through existing means of raising international finance.

"An ICO within the e-Residency ecosystem would create a strong incentive alignment between e-residents and this fund, and beyond the economic aspect makes the e-residents feel like more of a community since there are more things they can do together,” says Buterin.

"Additionally if these estcoins are issued on top of a blockchain (they could possibly be issued in multiple formats at the same time, nothing wrong with this) then it would become easy and convenient to use them inside of smart contracts and other applications."

For a good example of how the additional money could be managed on behalf of the Estonian people, the Norwegian state pension fund (more commonly known as ‘the oil fund’) is a good example. It is regarded as one of the smartest investors on the planet and has achieved an impressive rate of growth.

The funds raised through estcoins could be managed through a Public Private Partnership (PPP) and only used as described in the agreement to actually help build the new digital nation. This would enable Estonia to invest in new technologies and innovations for the public sector, from smart contracts to Artificial Intelligence, as well as make it technically scalable to benefit more people around the world. Estonia would then serve a model for how societies of the future can be served in the digital era.

In addition, a large proportion of the funds could be used as a community-run VC fund on behalf of investors. The money could then be used to support Estonian companies, including those established by other e-residents.

As an investment opportunity, estcoins could benefit Estonia and be attractive to investors from the day it is launched. As with e-Residency however, the longer term opportunities could be far greater and possibly beyond anything we can currently comprehend.

In time, estcoins could also be accepted as payment for both public and private services and eventually function as a viable currency used globally. By using our APIs, companies and even other countries could accept these same tokens as payment. It will also be possible to build more functions on top of the estcoins and use them for more purposes, such as smart contracts and notary services.

‘Estcoin’ might make sense today as a name, but it might not be the right one long term because its use could grow far bigger than Estonia. The same thing is happening to e-Residency as a whole, which was initially thought of as a way to be part of the Estonian nation but is now creating a new global digital nation, powered by the Republic of Estonia.

If there is support for this proposal, then the next stage before the ICO would be to provide a white paper that outlines the value of estcoins and how the investment will be used to develop our digital nation. It is likely to begin as a pilot project that can be scaled up based on demand.

 

Kaspar Korjus

Managing Director at e-Residency Aug 21st

 

Posted by David Ogden
                Entrepreneur

 

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

Cryptocurrency Mining – What It Is, How It Works And Who’s Making Money Off It

Cryptocurrency Mining - What It Is, How It Works And Who's Making Money Off It

Cryptocurrency Mining – What It Is, How It Works And Who's Making Money Off It

 

NVIDIA Corporation's second-quarter earnings released earlier this month, though exceeding expectations, elicited cautionary reaction from the investor as well as analyst communities. Traders bid down the stock by over 5 percent on Aug. 11.

One of the reasons cited for the negative reaction was cryptocurrency contributing to much of the outperformance.

Why should it be a cause for alarm?

Analysts Blayne Curtis and Christopher Hemmelgarn of Barclays believes revenue stream from cryptocurrency is fickle. Therefore, the analysts were not in favor of assigning a multiple to it, as it has the potential to become an eventual headwind.

Rival Advanced Micro Devices, Inc. Also had a similar tale to tell. The company indicated that cryptocurrency demand remains strong, while also suggesting that the demand might not last forever.
 

What Is Cryptocurrency?

Cryptocurrency, as the name suggests, is a form of digital money designed to be secure and anonymous in most cases. It uses a technique called cryptography — a process used to convert legible information into an almost uncrackable code, to help track purchases and transfers.

Giving a simple definition, Blockgeeks says it is just limited entries in a database no one can change without fulfilling specific conditions.

Cryptography is a technique that uses elements of mathematical theory and computer science and was evolved during the World War II to securely transfer data and information. Currently, it is used to secure communications, information and money online.

Cryptocurrencies allow users to make secure payments, without having to go through banks.

Some cryptocurrencies include bitcoin, Bitcoin Cash, Ethereum, DigitalNote, LiteCoin and PotCoin.

Bitcoin has the distinction of being the first cryptocurrency, having been introduced in 2009. Since then, this class of cryptocurrencies mushroomed, with more than 900 currently active.

How Cryptocurrencies Work

A cryptocurrency runs on a blockchain, which is a shared ledger or document duplicated several times across a network of computers. The updated document is distributed and made available to all holders of the cryptocurrency.

Every single transaction made and the ownership of every single cryptocurrency in circulation is recorded in the blockchain.

The blockchain is run by miners, who use powerful computers that tally the transactions. Their function is to update each time a transaction is made and also ensure the authenticity of information, thereby ascertaining that each transaction is secure and is processed properly and safely.

As payment for their services, miners are paid physically minted cryptocurrency as fees by vendors or merchants of each transaction.

The value of the cryptocurrency fluctuates based on demand and supply, although there is no fixed value for it. Buyers and sellers agree on a value, which is fair and is based on the value of the cryptocurrency trading elsewhere.

Since there is no intermediary like bank involved in the transaction, as it is a peer-to-peer transaction, the transaction fee that is associated with credit cards is eliminated. The identity of the buyer and seller are not revealed. However, each and every transaction is made public to all the people in the blockchain network.

One can acquire a cryptocurrency through exchanges found online or trade it for traditional currencies.

Assume X wants to buy an item valued at $10,000 and he realizes that the seller Y accepts cryptocurrency, say bitcoin, as a form of payment. X scouts around to find the prevailing exchange rate, say $1,000 per currency. X gets Y's public Bitcoin address from Y's website, although both parties remain anonymous to each other.

X can now instruct his Bitcoin client or the software installed on his computer to transfer 10 bitcoins from his wallet to Y's address. X's Bitcoin client will electronically sign the transaction request with his private key known only to him. X's public key, which is a public information, can be used for verifying the information.

When X's transaction is broadcast to the Bitcoin network, it would be verified in a few minutes by miners. The 10 bitcoins will now be transferred to Y's address.

 

Mining
 

Cryptocurrency mining includes two functions, namely: adding transactions to the blockchain (securing and verifying) and also releasing new currency. Individual blocks added by miners should contain a proof-of-work, or PoW.

Mining needs a computer and a special program, which helps miners compete with their peers in solving complicated mathematical problems. This would need huge computer resources. In regular intervals, miners would attempt to solve a block having the transaction data using cryptographic hash functions.

Hash value is a numeric value of fixed length that uniquely identifies data. Miners use their computer to zero in on a hash value less than the target and whoever is the first to crack it would be considered as the one who mined the block and is eligible to get a rewarded.

The reward for mining a block is now 12.5 bitcoins.

Earlier, only cryptography enthusiasts served as miners. However, as cryptocurrencies gained in popularity and increased in value, mining is now considered a lucrative business. Consequently, several people and enterprises have started investing in warehouses and hardware.

As enterprises jumped into the fray, unable to compete, bitcoin miners have begun to join open pools, combining resources to effectively compete.
 

Bank of New York Mellon Corp has been running an internal blockchain platform for U.S. Treasury bond settlements since early 2016, a Marketwatch report quoting Morgan Stanley said. The private nature of the platform has kept it out of the regulatory purview. Once the bank decides to roll it out to clients and use it commercially, regulatory oversight might come into the picture.

A complete mining kit consists of graphics cards, a processor, power supply, memory, cabling and a fan, which would cost between $2,400 and $3,800 on Amazon.com, Inc. According to Bloomberg.

The top three mining hardware, according to 99bitcoins.com, are Avalon6, AntMiner S7 and AntMiner S9.

Given that existing GPUs aren't powerful enough, now miners are flocking to application-specific integrated circuits, or ASICs. To circumvent this shortcoming, Nvidia and AMD are said to be working on GPUs, which could be used specifically for the purpose.

The two companies who are dominant in consumer-grade mining hardware are Canaan and Bitmain. Bitmain, based in Beijing, does mining as well as manufactures mining hardware.
 

Mining Pools And Their Share Of Mining

Mining pools including bitclub network

Mining pools are concentrated in China, which boasts of 81 percent of the network hash rate.

 

Why Mining Chips Are A Fickle Revenue Stream

For companies such as AMD and Nvidia, which have dominant positions in the gaming chip market, a focus away from their core business may not be a prudent course of action.

As seen, these companies may have to bring out new GPUs designed exclusively for this purpose to pose a real threat to the ASIC chips, which are predominantly manufactured by the Chinese, who are notorious for their low-cost market positioning. How viable is the spend on such exclusive chips is a moot point.

Additionally, national governments and exchanges are mulling over regulation of the whole realm of cryptocurrencies. Japan has recently introduced legislation to protect users after Tokyo-based Bitcoin exchange Mt Gox collapsed in 2014. Similarly, introducing taxation such as capital gains tax on Bitcoin sales may also impede the cryptocurrency industry.
 

Author: Shanthi Rexaline , Benzinga Staff Writer

August 21, 2017 8:59am

 

Posted by David Ogden
                 Entrepreneur

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

Understanding Cryptocurrency – How It Works, What Drives It, Should You Buy It

Understanding Cryptocurrency - How It Works, What Drives It, Should You Buy It

Understanding Cryptocurrency – How It Works, What Drives It, Should You Buy It

 

Cryptocurrencies have caught on in the mainstream and have made thousands of people millions of dollars. The most recent boom of Bitcoin now means that if you had invested just $500 8 years ago, you would now be a multi-millionaire. This meteoric rise in the biggest cryptocurrency by market cap has drawn a lot of attention. However, to the everyday man who is used to dealing with hard cash and actual value, cryptocurrencies can seem like an unknown and often unintelligible world. With terms like hash rates, data mining, market capitalization, and ultimately the fear of instability, there’s a little bit of a harsh learning curve to the technology.

In this article, I’m going to try to give a beginner’s guide to cryptocurrencies, explain how they work, what moves the prices, and whether you should invest.

What are cryptocurrencies?

Cryptocurrencies are essentially digital mediums that can be exchanged, just like government currencies, that use cryptography, or digital security measures, to secure the exchange of digital information and control the creation of new units. Explained even more simply, cryptocurrencies are digital coins that fluctuate in value similar to stocks with their exchange being backed by digital security measures.

Cryptocurrencies are digital currencies or money that is then exchangeable for physical money, like dollars. They’re comparable to how most apps have some form of digital money, like “orbs” in a mobile game that cost some amount like ” $10 for 1000 orbs.” In this instance, each in-game “orb” would be worth 1/1000th of a dollar. Even though these orbs are just data on your mobile device or on some server, they have some inherent worth equatable to dollars. In an extremely general context, this is what a cryptocurrency is.

So, how do they work?

In essence, cryptocurrencies provide a viable method of owning a unique digital currency which presents some ever fluctuating value. Each coin or currency, like Bitcoin, Ethereum, or Litecoin, are fully self-contained digital systems that both track and control each unit of cryptocurrency.

Each individual coin of a cryptocurrency acts like data moving through a network. Some cryptocurrencies can be valued as small as just 1 cent and others as big as 1 billion dollars. Some currencies are controlled by one entity, which is referred to as a centralized currency, and others are controlled by the public, which are decentralized. There are positives and benefits to each variation, but the stress should be placed on the fact that no cryptocurrency is identical to the next.

What drives them?

One of the most prominent aspects of cryptocurrencies is the fact that there isn’t a third part that verifies the transaction of crypto coins. To avoid this, cryptocurrencies use timestamping methods to verify each transaction. Bitcoin, which is the most popular crypto and largest by market cap, uses a proof-of-work scheme, which is commonly referred to as mining. In essence, mining Bitcoin means tasking a computer with solving some complex problem. When the problem is solved, the computer account is rewarded with a portion of Bitcoin relative to the amount of work it put in to solve the problem. This verification network gives Bitcoin value and backs up transactions. By having this in place, someone couldn’t just write code and give themselves x amount of bitcoins.

In many ways, cryptocurrencies are like stocks. Positive news about a certain coin’s security or general acceptance can drive the price up. The same is inversely true if coins are deemed unuseful in certain applications. Part of what has played into Bitcoin’s rise is that many retailers accept Bitcoin as currency. This makes the cryptocurrency easily translatable to physical value, thus influencing the price per Bitcoin accordingly.

The true answer to what drives cryptocurrencies is obviously much more complex due to the number of factors that go into the “value” of a currency.

Should you invest?

The answer to this question is likely the same for whether you should invest in stocks. While cryptocurrencies have experienced astronomic growth in recent years, these gains aren’t necessarily guaranteed to continue. You should only invest in cryptocurrency if you are willing to take on some risk. With that said, there are currencies that are more stable than others.

Litecoin, which is often regarded as the silver to Bitcoin, has been found to be a very stable currency of growth in recent months. Whereas Bitcoin, currently trading at all time highs, is known to make corrections of 30%, represents a large loss if you were to invest now.

The volatility of cryptocurrencies presents opportunities for day traders, and the significant long term growth of cryptos present great opportunities for long term investors.

You should do a significant amount of investigation into what cryptocurrency you want to invest in, just like any stock, before you buy. Buying can be done on many secure mobile apps or other online platforms. A quick Google search of where and how to buy cryptocurrencies can yield you with this information with ease.

To summarize, cryptocurrencies are often decentralized digital currencies that draw value from security, anonymity, and authentication measures that fluctuate much like stocks that can be traded and exchanged for “true value” currencies. While it may still sound hard to understand, a little bit of research into crypto can go a long way. Cryptocurrencies are here to stay, and while awareness of them is growing with the general public, people with actual knowledge about how they work is still very small. By taking the time to research and understand, you present yourself with an opportunity to excel in a technologically growing industry.

 

David Ogden
Entrepreneur

DAvid Ogden Cryptocurrency Entrepreneur

 

Author: TREVOR ENGLISH

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