Paul Krugman is Wrong Again

Paul Krugman is Wrong About Bitcoin (Again)

Paul Krugman, the famed economist who’s made a career out of being wrong about things, is wrong again. That in itself is no more surprising than the fact that his latest op-ed takes aim at his favorite bête noire – bitcoin. The surprising part is that Krugman has resorted to the same hackneyed arguments he always uses to attack cryptocurrency. It’s an odd decision from such a learned scholar when there are far more lethal lines of attack for a crypto sceptic to take.

Also read: Japanese Bitcoin Exchanges Planning Several Trading Restrictions: Report

Krugman Swings and Misses

Paul Krugman Is Excited to See Bitcoin Have Issues

In 1998 Paul Krugman famously predicted: “By 2005 or so, it will become clear that the Internet’s impact on the economy has been no greater than the fax machine’s.” On the rise of communication networks (read social media) he said they’ll fail because: most people have nothing to say to each other”. Now he is at it again, but with Bitcoin.

“Beware that, when fighting monsters, you yourself do not become a monster,” Nietzsche warned, “for when you gaze long into the abyss, the abyss gazes also into you.” Bitcoin is Paul Krugman’s monster, and despite having swung at it repeatedly over the years, he’s yet to strike a meaningful blow. In an op-ed published in the NYT today, Krugman outlines, for the umpteenth time, why he’s a crypto cynic.

Cynics, for all their doom and gloom, are a welcome antidote to the mindless euphoria, shilling, and moon predictions that pervade the crypto space. Paul Krugman, therefore, is perfectly entitled to take issue with bitcoin. But why has he chosen to attack the very things that make bitcoin so appealing? It’s astonishing how many times someone can be wrong in the course of a single article – and one penned by a Distinguished Professor of Economics, no less. Either Paul Krugman is the world’s subtlest troll or he’s the world’s most benighted professor of economics.

Paul Krugman vs Reality

Here’s a sample of what Paul Krugman has to say during the course of his NYT op-ed:

PK: “Instead of near-frictionless transactions [with fiat], we have high costs of doing business, because transferring a Bitcoin or other cryptocurrency unit requires providing a complete history of past transactions.”

Reality: Er…no it doesn’t. If anyone cares to look up past transactions using a blockchain explorer they’re welcome to, but that has no bearing on doing business with bitcoin, and has zero correlation with the cost of sending bitcoin.

Paul Krugman is Wrong About Bitcoin (Again)PK: “You’re supposed to be sure that a Bitcoin is real without knowing who issued it, so you need the digital equivalent of biting a gold coin to be sure it’s the real deal.”

Reality: The same could be said of everything digital. Have you ever seen a Facebook in real life? Or squeezed a YouTube video to see if it was ripe? Have you ever fondled a tweet in the palm of your hand or tripped over a computer virus on the way down the stairs? And as for knowing who issued a bitcoin, that is no more relevant than knowing who printed those benjamins in your wallet or that diamond around your beloved’s ring finger. Or, if you want to get really meta, we still don’t know who issued planet earth and all life upon it, and yet here we are, muddling along just fine.

PK: “If speculators were to have a collective moment of doubt, suddenly fearing that Bitcoins were worthless, well, Bitcoins would become worthless.”

Reality: The same argument can be applied to such incongruous things as ancient fossils; Renaissance art; peace treaties; and the earning power of celebrities. In other words, the market pays what the market is willing to pay for an asset, be it a product endorsement from Kim Kardashian or one unit of magical internet money.

If You’re Gonna Pick a Fight with Bitcoin, Go for the Achilles

Time will tell whether Paul Krugman’s position on cryptocurrencies – that they will ultimately collapse and go to zero – is vindicated. In the meantime, if he wants to be taken seriously and to land some painful blows on bitcoin, he would do well to rein in the cheap shots and aim for bitcoin’s achilles instead. There are plenty of criticisms that could be made against crypto; the way it’s primarily benefited the privileged rather than the impoverished; the internal in-fighting over block sizes and arcane politics; the lack of privacy by default with bitcoin transactions; the fact that cryptocurrency is still somewhat unsuited to the tech illiterate. While none of these weaknesses constitutes a fatal flaw in bitcoin’s design, they are all reasonable grounds for attack.

Bitcoin Millionaire Erik Finman Challenges Jamie Dimon to a Boxing Match

A man of Paul Krugman’s wisdom and reputation ought to be capable of launching much more erudite attacks on bitcoin, but instead he resorts to recycling the same old cliches, while completely missing the astonishing properties that bitcoin provides over regular money, like the ability to transact with anyone without seeking permission from some higher power, and the ability to retain full custody of your wealth, with 100% uptime and 0% asset freezing. Krugman could pen another 100 salty op-eds about bitcoin (and he probably will), but no matter how wrong he’s shown to be, and no matter how high bitcoin climbs, his failure to recognize the second greatest invention of the 21st century won’t be his epitaph. Instead, his obituary shall be determined by his inability to recognize the first:

“By 2005 or so, it will become clear that the Internet’s impact on the economy has been no greater than the fax machine’s.” – Paul Krugman.

What do you make of Paul Krugman’s latest pronouncement on bitcoin? Let us know in the comments section below.


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Bitcoin Cash Fans Celebrate Independence Day One Year Later

Bitcoin Cash Fans Celebrate Independence Day One Year Later

Today is the one-year anniversary of the ‘Bitcoin Independence Day’ that took place on August 1 2017. Since that day the Bitcoin Cash (BCH) network and community have had a very productive year as the decentralized cryptocurrency has celebrated a ton of milestones including successful network upgrades, massive merchant adoption, and a wide variety of applications built using the BCH chain.

Also Read: Interest in Philippines Economic Zone Crypto License Spikes – 17 Firms Paid in Full

August 1 2017, Bitcoin Independence Day

A year ago today Bitcoin proponents celebrated independence from the scaling debate stagnation that took place within the Bitcoin community for far too long. On August 1, 2017, after block 478,558 was found, the Bitcoin blockchain effectively split as miners began processing blocks from two protocols — Bitcoin Cash (BCH) and Bitcoin Core (BTC). While many Bitcoin Core supporters didn’t think BCH would survive after the split, the BCH network proved them wrong by continuing to grow stronger every day that followed the event on August 1. During the first week of August, the BCH chain’s hashpower steadily grew more powerful and the currency’s value went through a small period of price discovery.

Bitcoin Cash Fans Celebrate Independence Day One Year Later

Bitcoin Cash Gains 145% in One Year

On August 13, 2017 the Bitcoin Cash spot price closed the day at $310 USD per BCH and the currency is today priced at $760 per coin which represents a solid gain of +145.16 percent since last year. Additionally, much like many of the other digital assets that touched all-time highs (ATH) this past December, bitcoin cash prices reached an ATH of $3,000 per BCH and even $4,000 per BCH on a few international exchanges. Because of the growing demand and high prices, BCH proponents often laugh at Bitfury’s George Kikvadze who sold his bitcoin cash at $668 per coin and thanked all the “fools” who purchased them.

Bitcoin Cash Fans Celebrate Independence Day One Year Later

November’s Successful DAA Upgrade

During its first few months, the BCH network and its participants gathered lots of support from infrastructure services like wallets and exchanges, while at the same time BCH accumulated a massive amount of merchants. A few months later on November 13, 2017 the decentralized protocol completed a successful upgrade which saw the BCH network’s Difficulty Adjustment Algorithm (DAA) change to a more stable system of operation. That day, at approximately 4 pm EDT, at block height 504031 the consensus rules upgraded the DAA and mining profitability between both the BTC and BCH chains has remained consistent ever since the fork.

Bitcoin Cash Fans Celebrate Independence Day One Year Later

Exponential Hashrate Growth and Remarkable Commitment to Innovation

Since August 1, BCH miners have processed close to 63,000 blocks and the network is over 6,800 blocks ahead of BTC. On August 4, 2017, the BCH network’s absolute hashrate was 339 Petahash per second. Now, thanks to the past year of growth, the BCH hashrate has gradually increased to 4-5.5 Exahash per second. At the moment there are eight known miners who process BCH blocks, and three unknown mining pools as well. Known BCH miners include Coingeek, Bitcoin.com, Viabtc, BTC.com, Antpool, SBI Crypto, Rawpool, and BTC.top. One of the mining pool operators, Alejandro de la Torre from BTC.com, a pool that typically commands 12-14 percent of the BCH hashrate, thinks the Bitcoin Cash network has had an amazing year so far.

Bitcoin Cash Fans Celebrate Independence Day One Year Later“Bitcoin Cash has demonstrated a remarkable commitment to innovate upon community engagement with applications like on-chain social network — Memo, and a smart contract protocol layer called Wormhole that is built using Omni Layer, the token-issuance protocol that is the same technical basis for tether (USDT),” Alejandro details. “We think these community-driven networks can be very effective at moving the needle in the adoption of Bitcoin Cash as a medium-of-exchange, which is the primary reason it was forked and developed.”

One year after its creation, BCH has continued to expand onto 19 different services, e.g. Bitpay, Coingate, Viabtc, Coinpayments, Coindance. Bitcoin Cash is also involved in fourteen different projects, e.g., Openbazaar, Joystream, and Counterparty, and tradable on 41 different exchanges. Now entering its second year, BTC.com is poised to help the Bitcoin Cash community shift focus from investment, thinking only in terms of storing of value, to cash, thinking as a medium of exchange for merchants and consumers.

A Fourfold Block Size Increase, and Re-enabled Satoshi Opcodes

Bitcoin Cash Fans Celebrate Independence Day One Year LaterAfter the successful upgrade in November that fixed the protocol’s DAA, the BCH network upgraded once again a few months later on May 15, 2018. The Bitcoin Cash protocol extended the 8MB block size fourfold to a 32MB block size cap. The consensus change was one of the largest block size increases in the history of blockchain and the upgrade also re-enabled a few old Satoshi OP_Codes and increased the network’s data carrier size. The data carrier size upgrade and the OP_Codes unleashed a plethora of innovation from developers building social media apps, trustless betting protocols, and tokenization and smart contract mechanisms.

Transactions & Merchant Adoption

In just one year, the BCH protocol and its network participants have been able to push adoption, create a wide variety of applications, and do all of these feats in the face of trolling, skepticism, and negative criticism. Every aspect of the protocol has seen exceptional increases including price, hashrate, merchant adoption, daily transactions, and new applications. Over time, BCH on-chain transactions continue to grow despite the opinion of naysayers. For instance, from August 1 to October 22, 2017, Bitcoin Cash transactions (tx) averaged between 6,000-12,000 tx per day. From October 22, 2017 to February 7, 2018, BCH transactions averaged 20,000 to 60,000 tx per day. From February 7 until June 30, 2018, BCH transactions averaged 20,000 tx per day. The recent stress test has increased daily BCH transaction volume to 25,000 to 85,000 tx per day.

Bitcoin Cash Fans Celebrate Independence Day One Year Later

Moreover, as far as merchant adoption, BCH has gathered nearly every merchant that the BTC chain has and no other cryptocurrency in existence has experienced such a rapid network effect. This includes merchant acceptance from Bitpay and Purse.io, and the wide variety of stores that accept BCH that can be found on the Accept Bitcoin Cash initiative and Marco Coino.  

Bitcoin Cash fans have a lot to celebrate this year and the next 12 months should be just as exciting as proponents look forward to everything that lies ahead.

What do you think about the Bitcoin Cash one-year anniversary? Let us know in the comments below. 


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Survey: Crypto Exchanges Want Regulation but See Strict Policies as a Threat

Survey: Crypto Exchanges Want Regulation but See Strict Policies as a Threat

The majority of crypto exchanges want to see the industry regulated, although many consider excessive regulation to be the biggest threat, according to a new study. A third of the platforms in the poll also fear a market crash that could suddenly devalue digital assets. A fifth of the exchanges dislike anonymity.    

Also read: Huobi Informs Users on Decision to Launch P2P Trading in India

Crypto Exchanges Want Regulation

Survey: Crypto Exchanges Want Regulation but See Strict Policies as a ThreatA new study reveals that a sizable majority of crypto exchanges, 88%, would like to see regulation in place that can help the rapidly developing industry mature, and a third of the companies trading coins say the greatest threat comes from the perceived criminality of the sector. 17% of the polled platforms, however, believe overly strict regulation is the biggest threat to cryptocurrency and its wider adoption. Another 40% say lifting the barriers to funding crypto activities by banks will improve the acceptance of cryptocurrencies.

The survey has been conducted by a Lithuania-based payment company, Mistertango, which has contacted 24 exchanges across Europe, Asia, South America and Oceania, with a total daily trading volume of over $100M USD. The authors have attempted to assess the attitudes towards regulation, anonymity and the maturation of the crypto market. Gabrielius Bilkštys, Business Manager at Mistertango, commented that “The industry is crying out for regulation and the response from partners has shown this”. He also said:

Uncertainty is the biggest fear, and regulation is critical to provide the stability we need. Unfortunately, there is no regulatory consensus – worldwide or otherwise. For cryptocurrencies to move towards the scale and ubiquity possessed by fiat currency, it needs cohesive, considered and comprehensive regulation. Thus, regulation will be a catalyst, not an inhibitor to the crypto market’s development.

According to Oleksandr Lutskevych, CEO of crypto exchange CEX.IO, the assumption that crypto companies want to avoid a regulated environment is far from the truth. Quoted in a press release, he noted that “Until now, the industry has not had its say on regulation […] The industry is all too aware that regulation will lead to the maturity of the market and ensure businesses remain free from suspicion of involvement with illegitimate uses of cryptocurrency.”

Survey: Crypto Exchanges Want Regulation but See Strict Policies as a Threat

A Call for Banks to Lift Barriers

Survey: Crypto Exchanges Want Regulation but See Strict Policies as a ThreatAt the same time, a very import development that crypto companies would like to see is a change in the attitudes of the traditional financial institutions. Almost 40% of the participants in the study have suggested that this would have the biggest impact on the wider acceptance of cryptocurrency, followed by about 30% who gave priority to increased but also positive regulation.

A key finding in the poll is that trading platforms generally favor the implementation of know your customer and anti-money laundering policies, despite the fact that precisely anonymity has drawn a lot of people to the crypto space. 55% of the questioned exchanges said crypto users should be subject to KYC and AML checks, similar to those employed by the providers of traditional financial services. A fifth of the respondents said that anonymity and the lack of transparency was the biggest threat.

Another important figure in the survey shows that a third of the respondents fear a significant crypto market crash that could unexpectedly devalue cryptocurrencies. They consider the possibility of such an event to be the major threat for the industry and the space, in general.

What are your thoughts on the findings in the study? Let us know in the comments section below.


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75% of Millennials are More Likely to Date Someone Who is Into Bitcoin

A recently conducted study has reportedly found that 75% of millennials would be more likely to date someone who possesses knowledge about cryptocurrencies. The survey comes amid apparently increasing fascination with millenials’ views regarding cryptocurrencies.

Also Read: Kim Kardashian Receives Her First Bitcoin

Surveys Probe Millennials’ Views on Crypto

75% of Millennials are More Likely to Date Someone Into BitcoinAn increasing number of companies have published surveys probing the views held by millennials regarding virtual currencies.

A recent study claims to have found that “Over 75% of millennials [are] more likely to date someone knowledgeable about cryptocurrencies.” Despite the find, the survey also revealed that 12% of respondents would “rather date a non-violent felon” than “someone who has all their savings in cryptocurrency.”

Of the millennial participants, 40% indicated that they currently own cryptocurrencies, with 48% of males and 26% of females reporting to currently hold virtual currencies.

The survey also noted several “interesting items respondents have paid for with cryptocurrency,” including “a dog, a wedding, and 4 cases of Sriracha.”

1 in 10 Millennials Cash Out Crypto to Afford Down Payment on Home

75% of Millennials are More Likely to Date Someone Into BitcoinAt the start of the month, it was reported that a survey focusing on U.S. resident ages between 24 and 38 who indicated that they were planning to purchase a home in the next 12 months found that 10% of millennials have sold cryptocurrencies in order to finance their down payment.

A U.K. survey of millennials, crypto, and property published last month found that more than one in five (21%) of 21 to 35 year-olds see bitcoin as a better investment than real estate. “For Millennials the soaring performance of Bitcoin – followed by an almost equally profound correction – holds more intrigue than the prospect of steady growth in house prices,” the survey said.

Additionally, a recent survey of 18 to 35-year-old Canadian investors found that 40% describe cryptocurrencies as producing high returns, whilst 39% of all 18 to 34-year-old Canadians identified crypto as a high performing investment.

What is your response to the findings of the surveys being conducted into millennials’ views regarding bitcoin and cryptocurrencies? Share your thoughts in the comments section below!


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PR: Keynote Brings the World Blockchain Forum to London

Keynote Brings the World Blockchain Forum to London

This is a paid press release, which contains forward looking statements, and should be treated as advertising or promotional material. Bitcoin.com does not endorse nor support this product/service. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the press release.

The world’s largest blockchain conference explores the promise of blockchain technology, trends and investments.

Keynote is excited to announce the program agenda for their next endeavour, the world’s largest two-day blockchain coming to London this September. The conference will feature a star-studded lineup of over 100 world class presenters including a special fireside chat with influencers who have been part of some of the largest ICOs to date. The focus is on blockchain technology; specifically investments, successful past and future ICOs within the industry, legal implications and regulations, and how decentralization is disrupting the banking industry.

The World Blockchain Forum serves as a learning guide for, not only the technical tools of investing such as Bitcoin and Ethereum, but also as a stepping stone to wise investing. The conference will showcase the latest innovations in the blockchain industry, and curate conversations between the world’s leading pioneers and experts about the promise and future of blockchain.

Confirmed Speakers Include:

David Chaum | Rise of Crypto
Jack Gavigan | Open, Permissionless, Zero Knowledge Cryptography
Josh Halferty | One Exchange. All of Crypto. Decentralised.
Vanessa Grellet | Blockchain for Social Impact
Marjan Delatinne | Ripple Solving Global Payments
Jo Jo Hubbard | Blockchain & the Energy Transition
Jason King | Securing the Future of Blockchain
Sang Lee | The Tokenization of Asset Management
Jeff Berwick | The Dollar Vigilante
Veronica McGregor | Regulation Panel

A full list of confirmed speakers and the agenda can be found here.

As part of the World Blockchain Forum London Keynote is thrilled to announce the launch of a new $6 million fund dedicated to supporting diversity and inclusion in the blockchain industry. The Keynote fund will ensure people from all fields are invited to play an active role in the development and evolution of the expanding industry.

Keynote’s founder and CEO, Moe Levin, commented:

“Digital currencies and blockchain, are intended to be democratizing and equalising. Blockchain and cryptocurrency industries are looking to create work opportunities in a number of fields, and it’s really important the industry is representative of the global population. Diversity is the basis for collective achievement, and we therefore need more people to join the blockchain conversation.”

Keynote is committed to providing a platform that will support and showcase diverse projects and innovations, to ensure everyone is given an equal voice and opportunity to participate and succeed.

The $6 million dollar fund will be officially launched at this year’s World Blockchain Forum in London where Keynote will share their vision for the future of the blockchain industry, how diversity and inclusion are vital to its success, and the initiatives they will be driving to support diversity and inclusion in 2018.

The World Blockchain Forum London runs from 3-5 September 2018 and tickets are available at london.keynote.ae/tickets.

About Keynote
Keynote was launched in 2012 by blockchain strategist Moe Levin. Further information and details about Keynote and the event can be found at: london.keynote.ae

For media inquiries, please contact Amandah Hendricks Chief of Communications, at [email protected]

Supporting Link
http://london.keynote.ae/

This is a paid press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

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Thomson Reuters Eikon to Display Data on 50 Cryptocurrencies From Cryptocompare

Thomson Reuters Eikon to Display Data on 50 Cryptocurrencies From Cryptocompare

Institutional financial traders are about to receive access to new data feeds on fifty cryptocurrencies supplied by Cryptocompare. These will be added to Eikon, Thomson Reuters’ flagship financial information platform which was launched back in 2010.

Also Read: Banks Don’t Really Want to Use ‘Blockchain’ for FX Settlement After All

Increasing Demand for Crypto Coverage

Thomson Reuters Eikon to Display Data on 50 Cryptocurrencies From Cryptocompare

Toronto-headquartered multinational mass media and information firm, Thomson Reuters Corporation (NYSE: TRI), has entered into a strategic partnership with Cryptocompare, the cryptocurrency market data aggregator. Under the agreement, the aggregator will integrate order book and trade data for 50 crypto-assets, sourced from a variety of exchanges, into Thomson Reuters financial desktop platform Eikon.

Sam Chadwick, Director of Strategy in Innovation and Blockchain at Thomson Reuters, said: “Despite the decline in the price of many of the leading cryptocurrencies during 2018, we continue to see increasing demand from our customers for pricing coverage of the major names. We have been engaged with CryptoCompare since their involvement in our blockchain hackathon in September 2016, and continue to be very impressed by their approach to coverage of these challenging markets. This partnership puts pricing data for this emerging market alongside other asset classes, giving our customers a more comprehensive tradingview in Eikon.”

Fast-Growing Demand From Institutional Investors

Thomson Reuters Eikon to Display Data on 50 Cryptocurrencies From CryptocompareA long time staple for everyday traders and investors in the Bitcoin market, Cryptocompare, works by aggregating and analyzing ticker data from exchanges and integrating different data sets in the cryptocurrency price. It produces cryptocurrency trade data, order book data, block explorer data and social data.

Charles Hayter, CEO and Founder, commented: “As the digital asset markets mature, we see a fast-growing demand from the institutional investor community for comprehensive, real-time and global market data, which can be trusted as the basis for investment decisions. We are excited to enter into this partnership with Thomson Reuters; we have always sought to provide transparency to this market and this partnership provides a great opportunity for the institutional investor community to access not only our data, but also to benefit from our experience and insight.”

Is this a definitive sign that more hedge funds and investment banks are demanding access to the Bitcoin market? Share your thoughts in the comments section below.


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Regulations Round-Up: Holland Targets Electricity Theft, MI Republican Wants More Oversight

In recent regulatory news, Dutch police have reported an increase in electricity fraud associated with crypto mining, a Michigan Republican member of the House Financial Services Committee has urged Congress to make the development of clear guidelines overseeing the cryptocurrency industry a top priority, and digital currency advocacy group, Chamber of Digital Commerce, has published a report outlining regulatory principles governing the cryptocurrency industry.

Also Read: Interest in Philippines Economic Zone Crypto License Spikes – 17 Firms Paid in Full

Dutch Authorities Crack Down on Electricity Theft

Regulations Round-Up: Holland Targets Electricity Theft, MI Republican Wants More OversightThe Netherlands has experienced a 20% spike in non-cannabis related electricity fraud cases – a growing number of which have been attributed to cryptocurrency mining.

Petra van der Veen, team leader of the fraud team for leading Dutch distribution network operator, Stedin, states that unexplained heat and electricity problems experienced in a neighborhood are reliable indicators of potential electricity fraud.

She recalls: “Once, we got a report from people saying their walls were strangely hot. The place next door showed all the signs of an electricity-stealing weed farm,” however, when police raided the building, it was revealed to be a “bitcoin mine” instead.

“Electricity fraud can pose dangerous situations for the neighbors,” Van der Veen adds. “That’s why detecting electricity theft is one of our priorities. We have a social obligation to help police and municipalities to nip these in the bud as soon as possible.”

Republican Advocates Lawmakers Focus on Protecting Crypto Investors

Representative Bill Huizenga, a Michigan Republican and key member of the House Financial Services Committee, has expressed his belief that developing a clear and comprehensive regulatory framework governing cryptocurrencies should be a top priority for Congress.

Mr. Huizenga described the current regulatory apparatus pertaining to initial coin offerings and crypto assets as “muddied and fairly opaque,” and emphasized the need to protect investors.

The representative also emphasized the challenge associated with classifying virtual assets, stating: “Everyone’s trying to figure out whether it’s fish or fowl,” Mr. Huizenga said. “It turns out it might be a platypus. It’s kind of an unknown, or something sort of in between. How do we deal with that?”

Chamber of Digital Commerce Publishes Crypto Guidelines “for Policymakers & Practitioners”

Regulations Round-Up: Holland Targets Electricity Theft, MI Republican Wants More OversightToken Alliance, an initiative of the United States-based cryptocurrency and distributed ledger technology advocacy group, the Chamber of Digital Commerce, has published a document outlining a number of “guidelines for policymakers and practitioners” regarding digital tokens.

The document provides an overview of current regulatory apparatus governing the digital token markets of the United States, Canada, the United Kingdom, Australia, and Gibraltar. The document then discusses some of the specifics pertaining to commodity regulations, securities, and initial coin offerings.

James Newsome, former chairman of the United States Commodity Futures Trading Commission and current co-chair of Token Alliance, stated: “The Token Alliance is taking a positive and proactive approach towards working with regulators, which could ultimately create unprecedented opportunities for investment, innovation, and jobs. This report will serve as an important resource for policymakers seeking to educate themselves and engage in meaningful industry dialogue.”

What is your response to Mr. Huizenga’s depiction of the current state of cryptocurrency regulation in the United States?


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Bitprim Launches Keoken — A Token and Smart Contract Platform for BCH

Bitprim Launches Keoken — A Token and Smart Contract Platform for BCH

Over the past few months, many Bitcoin Cash (BCH) proponents have been discussing ideas such as representative tokens and smart contracts powered by the BCH network. Further, a few well-known organizations like Bitmain, Cryptonize.it and other BCH developers have introduced their own tokenization ideas. Now the firm Bitprim has announced the launch of a new token creation and smart contract platform called ‘Keoken’, an open protocol for extending blockchain functionality.

Also Read: Market Caps for Privacy-Centric Currencies Have Dropped Significantly

Bitprim Team Launches a Token Asset Creation and Smart Contract System Called Keoken

Bitprim Launches Keoken — A Token and Smart Contract Platform for BCHThis week the Bitprim development team gave news.Bitcoin.com exclusive access to the open source tokenization and smart contract platform called Keoken. The application can do a variety of things which includes the creation and transfer of assets, create smart contracts, and also produce a form of protocol governance. The Bitprim developers say the Keoken platform was built from scratch and the application can be extended to various blockchains. However, the Bitprim programmers say they will start the off-chain solution with the Bitcoin Cash blockchain.  

“We have today the Bitcoin Cash platform that has a good balance between security, provided by a solid PoW level, and an on-chain capacity to build on top of it,” the Keoken white paper details.  

These are the reasons why we consider that Bitcoin Cash has the best balance to start building a layer two solution on top of it.

Bitprim Launches Keoken — A Token and Smart Contract Platform for BCH
Keoken aims to add token, smart contract, and protocol governance functionality.

A Second Layer Solution Focused on Real-World Use Cases

The Keoken system also involves a native token called ‘Keo’ which is used for network fees and governance features, while at the same time it funds development of Keoken as well. The Keoken wallet provides users with the ability to track Keoken protocol created assets and it also “allows the operation with the Keoken protocol creating and sending tokens to other Bitcoin Cash addresses,” Bitprim emphasizes.

“Keoken is a second layer solution that brings a digital asset accounting and a secure smart contracts platform, focused on real-world use cases, approaching them in an efficient and simple way, intended to cover most of the use cases for value transfer between parties and businesses, as well as the rules required to run most common activities,” the white paper details.

Keoken fills the gap between reliable cryptocurrencies protocols and less reliable smart contracts platforms based on “turing complete” programming languages.

This week the Bitprim team has launched the Keoken.io website and users can begin experimenting with the testnet platform now. Basically, all a user has to do to create an asset is enter the portal wallet.keoken.io and go to “my tokens.” See the wallet that was created when entering the webpage and after that go to “create asset”, enter name and quantity and press enter. The Keoken asset protocol will then show the assets created.

Bitprim Launches Keoken — A Token and Smart Contract Platform for BCH
Creating an asset using the Keoken platform.

The white paper further details the protocol is based in “Transaction Formats (TF) and codable business rules (Smart Contracts).” At first, the TFs will be used for common transactions but the team expects both an increase and more complex use cases for the system. The paper also explains the Keoken system will not require all of the transactions to be stored on-chain.

Bitprim Launches Keoken — A Token and Smart Contract Platform for BCH
Looking up the tokens created while news.Bitcoin.com tested the Keoken testnet wallet.

“Some type of transactions can be merged into a single transaction to reflect the latest state. One of the goals is to provide the platform to avoid storing transactions that will not be relevant in the future forever on-chain — Efficiency and simplicity concepts apply.  

Keoken has been designed having efficiency in mind, using well-known technologies by a solid team. It provides the necessary rails for commerce over a decentralized blockchain ecosystem.

What do you think about Bitprim’s tokenization system for the Bitcoin Cash network? Let us know what you think about this subject in the comment section below.


Images via Shutterstock, Bitprim, and the Keoken platform. 


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Japanese Bitcoin Exchanges Planning Several Trading Restrictions: Report

Japanese Bitcoin Exchanges Planning Several Trading Restrictions: Report

The association of 16 government-approved bitcoin exchanges is reportedly working on imposing a number of trading restrictions. Jiji Press reported that there is a plan to impose trading limits for all users and additional restrictions for minors and the elderly. This follows recent reports of the association introducing margin trading limits as part of its self-regulatory rules.

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

Possible Trading Caps

According to Jiji Press news agency, the Japan Virtual Currency Exchange Association (Jvcea) is planning to set trading limits for its crypto exchange members.

Japanese Bitcoin Exchanges Planning Several Trading Restrictions: ReportThe association is comprised of all of the 16 government-approved crypto exchanges in Japan. It was established in May in response to the hack of Coincheck in January.

“The association will decide on the issue soon,” sources told the news outlet Friday. It will then file with the country’s top financial regulator, the Financial Services Agency (FSA), for approval “to be recognized as a self-regulatory body under the payment services law,” the sources detailed.

“The planned rule is aimed at preventing cryptocurrency traders with relatively small assets from suffering heavy losses and facing difficulties with daily expenses,” the sources also added, noting:

The industry group plans to allow exchange operators to choose from two options: A blanket ceiling that is low enough for the safety of customers with limited assets or setting different limits for different customers based on their age, assets, investment experience and income levels.

Other Restrictions Being Considered

Japanese Bitcoin Exchanges Planning Several Trading Restrictions: ReportThe association has been working on self-regulatory measures since its establishment. Last month, Nikkei reported that it is planning to set rules to prohibit insider trading and privacy coins.

The Jvcea self-regulatory rules were expected to be released last month. However, the announcement was delayed when the FSA issued business improvement orders to six of the association’s members, causing two vice presidents of the association to resign.

The trading limit report follows another report that the association is planning to limit margin trading, reducing leverage to 4 times. Currently, Japanese crypto exchanges offer as high as 25 times leverage.

According to the publication’s sources:

The group also plans to require minors to get permission from parents or other guardians before trading, prohibit margin trading in principle, and demand regular checks on the decision-making ability of elderly customers. It will also restrict large-lot orders as a measure against money laundering.

While multiple reports have surfaced regarding the association’s self-regulatory policies, the organization itself has not officially made any announcements.

Do you think Japanese exchanges should impose trading restrictions? Let us know in the comments section below.


Images courtesy of Shutterstock and the FSA.


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The Daily: Bitcoin Sceptics, Bitmain Gets Richer, Twitter Bots Subside

The Daily: Bitcoin Sceptics, Bitmain Gets Richer, Twitter Bots Subside

In today’s edition of Bitcoin in Brief it seems that Twitter is starting to get a grip on the impersonator bots that have dogged the platform all year. We’ve also got news of a crypto meetup that’s only for sceptics, and it turns out that Bitmain is even richer than anyone thought.

Also read: Bitcoin ETF Rejection Sparks Firm’s Public Protest

Bitmain Adds a Couple Billion to Its Valuation

As we reported earlier this month, Chinese mining behemoth Bitmain has been valued at $12 billion ahead of its IPO. That figure has now been revised upward, with another $2 billion added to its price tag. Fortune reports how Bitmain pulled in a profit of $1.1 billion in Q1 of 2018 alone. To place that in context, the total value of all BTC mined in the same period was around $1.3 billion. It seems there really is more money in selling shovels than in chasing digital gold. There’s no official date for Bitmain’s IPO yet, other than that it’s coming “very soon”.

Winning the Battle Against Twitter Bots

What’s Going On with @Bitcoin Twitter?Twitter bots, which have plagued the network all year, imitating influencers and conning the gullible out of their ether, appear to be waning. While it is to early to declare victory, Twitter has been moving faster to shut down copycat accounts. Previously, reporting fake accounts required that the complainant verify their own identity using ID before Twitter would take action. A number of users have reported less bot activity in their tweet replies, where the scammers usually congregate. It seems all those @’s directed at Jack Dorsey in recent weeks have been heard.

The Crypto Meetup for Sceptics

Ever since bitcoin’s inception, grassroots meetups have sprung up around the world as a means of uniting fellow crypto believers and educating the curious on the wonderful world of bitcoin. The organizers of such events are inherently bullish on cryptocurrency, as you would expect, but there’s an exception to that rule. Fudsters United is a Brooklyn meetup for those who are “skeptical about blockchain, cryptocurrency, Tether, forks, and the get rich quick proposition in the crypto bubble…We will discuss the shady participants, shady exchanges, blatant scams, ICOs, market manipulation, and hyped up news that fuels the mania surrounding crypto.” Bitcoin pessimists in the area are invited along to share drinks while spreading FUD with like-minded crypto bears.

The Daily: Bitcoin Sceptics, Bitmain Gets Richer, and Twitter Bots Subside
Fudsters United

Software Company Perfectial Starts Accepting Crypto

Perfectial, a large software company with offices in the US, UK, and Ukraine, has announced that it’s accepting cryptocurrency payments in the form of BTC, ETH, and LTC. “We expect this payment method to be a more fitting option for companies that have received funding with crypto assets as it will allow them to avoid making a conversion,” said Ivan Kohut, the company’s CTO and co-founder. “Cryptocurrencies are borderless money that allows making our services reachable. On top of that, they help to circumvent certain limitations that conventional payment systems like Paypal have.”

Bitsong Plans a Blockchain-Based Music Streaming Platform

The Daily: Bitcoin Sceptics, Bitmain Gets Richer, and Twitter Bots SubsideBitsong is the latest project attempting to bring music to the blockchain with the goal of eliminating intermediaries. As with most projects of this nature, the aim is to enable artists to maximize their earnings and to control the distribution of their work. It’s going to have its work cut out in dethroning the music streaming incumbents, but having signed up a bunch of solid artists and DJs so far, Bitsong seems confident that it can succeed where others have faltered.

What is Bitcoin?

What is bitcoin to you – electronic cash? A store of value? Digital gold? Something else entirely? A widely shared post this week by Nic Carter has tracked the many different hats bitcoin has worn over the years. Many of these designations overlap, and it would be fair to say that bitcoin (be it BTC or BCH) means different things to different people. Visions of Bitcoin lays out the primary roles that have been assigned to bitcoin to date. Given the rate at which cryptocurrency evolves, it’s possible that bitcoin could yet take on many more mantles in the years to come.

The Daily: Bitcoin Sceptics, Bitmain Gets Richer, and Twitter Bots Subside
How bitcoin’s interpretation has evolved over the years

What stories caught your eye from today’s Bitcoin in Brief? Let us know in the comments section below.


Images courtesy of Shutterstock, Fudsters United, and Nic Carter.


Need to calculate your bitcoin holdings? Check our tools section.

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