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What is Bitcoin?

Bitcoin is a digital crypto-currency with no single point of failure due to its decentralized peer-to-peer architecture. The source code is publicly available and changes to the reference Bitcoin client are made via concensus within the community. Advantages of Bitcoin include irreversible transactions (i.e. no possibility of chargebacks as with credit cards), pseudo-anonymous, limited and fixed inflation, near instant transactions, multi-platform, no double-spend and little to no barriers to entry and more. It was created by an anonymous person known as Satoshi Nakamoto. Find out more at WeUseCoins.com.

Bitcoin Latest News

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Posted on 10 December 2017 | 6:36 pm

Bitcoin To Reach About $142000 Or More - Seeking Alpha


Bitcoin To Reach About $142000 Or More
Seeking Alpha
Bitcoin moves upwards in cycles, and there is good chance that it falls before heading higher. If Bitcoin reaches the total investment value of gold, it can reach about $142,000 to $150,000. The end date, or when mining becomes unprofitable, determines ...

and more »

Posted on 10 December 2017 | 5:44 pm

Bitcoin Arrives On Wall Street, Bringing Good News For Blockchain Entertainment - Deadline


Deadline

Bitcoin Arrives On Wall Street, Bringing Good News For Blockchain Entertainment
Deadline
Bitcoin, the digital currency based on blockchain technology, exploded in price last week, shooting up to a high-water mark of $19,000 per single coin. It has since retraced to the $15,000 level, but is holding firm in that territory. If some observers ...
Bitcoin futures begin trading as price surgesUSA TODAY
Bitcoin futures are now tradable on the CBOETechCrunch
Bitcoin Futures Trading Opening Brings Crypto to Wall StreetBloomberg
Business Insider -Cointelegraph (Bitcoin, Cryptocurrency and Blockchain News) -Fortune -CoinDesk
all 1,686 news articles »

Posted on 10 December 2017 | 4:23 pm

Bitcoin Spot Price Pares Losses as Futures Trading Starts - Bloomberg


Bloomberg

Bitcoin Spot Price Pares Losses as Futures Trading Starts
Bloomberg
The spot price of bitcoin pared losses after futures began trading in Chicago, ushering in a new era for the cryptocurrency. Bitcoin had fallen over the weekend after ending last week at $15,644, 43 percent higher over the five days. A month ago, it ...
Wall Street ruined bitcoin but if you want to buy it, here's howVICE News
How Bitcoin Is Stolen: 5 Common ThreatsFortune
Did Someone Just Buy Bitcoin for $131 on GDAX?The Merkle
USA TODAY -Mashable -The Guardian -CoinDesk
all 223 news articles »

Posted on 10 December 2017 | 4:20 pm

Bitcoin launching on futures market - PBS NewsHour


PBS NewsHour

Bitcoin launching on futures market
PBS NewsHour
When people realize that there are only 21 million bitcoins they wanted a piece of that property. To understand a bit about how it is, you can think of the tree falling in the forest thought experiment. If a tree falls in the forest and a million ...

and more »

Posted on 10 December 2017 | 2:51 pm

Could Bitcoin's 'Whales' Manipulate the Market? - Fortune


Fortune

Could Bitcoin's 'Whales' Manipulate the Market?
Fortune
Bitcoin has captured the public imagination this year — or at least, as its price skyrocketed, tapped into public greed. But bitcoin was built by a tight-knit community of technology buffs and entrepreneurs, and a relatively small number of them own ...
Report: 1000 People Own 40 Percent of the Bitcoin MarketSlate Magazine (blog)

all 11 news articles »

Posted on 10 December 2017 | 2:24 pm

Bitcoin feeding frenzy being fuelled by 15x leverage, says exchange - Financial Times


Financial Times

Bitcoin feeding frenzy being fuelled by 15x leverage, says exchange
Financial Times
The Japanese exchange at the heart of bitcoin's recent surge has said its investors are fuelling the cryptocurrency's feeding frenzy as they buy in with leverage up to 15 times their cash deposit. Yuzo Kano, bitFlyer's chief executive, said in an ...

Posted on 10 December 2017 | 2:12 pm

Deutsche Bank Economist Says a Bitcoin Crash Would Endanger Global Markets - Fortune


Fortune

Deutsche Bank Economist Says a Bitcoin Crash Would Endanger Global Markets
Fortune
An economist at Deutsche Bank thinks a crash in the price of bitcoin will be among the top risks to broader markets in 2018. Torsten Slok, Deutsche's Bank's Chief International Economist, recently sent clients a list of 30 market risks which could ...
Deutsche Bank: Bitcoin Crash Among 2018 Financial WorriesCointelegraph (Bitcoin, Cryptocurrency and Blockchain News)

all 3 news articles »

Posted on 10 December 2017 | 12:33 pm

Twas The Night Before Bitcoin Futures - Forbes


Forbes

Twas The Night Before Bitcoin Futures
Forbes
After an extremely volatile week, even by Bitcoin standards, I, like many of you are waiting for Bitcoin futures to open. Will this really create the access that I once hoped for? As I wrote recently, I find that people most excited about Bitcoin ...

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Posted on 10 December 2017 | 10:44 am

An Expert's Guide to Navigating the World of Bitcoin - Bloomberg


Bloomberg

An Expert's Guide to Navigating the World of Bitcoin
Bloomberg
Discussions about the possibility of a bitcoin exchange-traded fund gave the currency greater legitimacy. This year wasn't the right time for an ETF, but we'll have bitcoin futures next week and an ETF should follow soon. JV: Hedge funds and other ...
Now there is a way for contagion from a bitcoin price collapse to flow into the rest of the marketsBusiness Insider
Bitcoin Price Continues to Dip as Futures Trading Draws NearThe Merkle
ICOs, Bitcoin's Growth and the Blockchain Community: An Interview Ivan on TechCointelegraph (Bitcoin, Cryptocurrency and Blockchain News)
Forbes -Globalnews.ca -Financial Times
all 120 news articles »

Posted on 10 December 2017 | 7:00 am

Advertise with Anonymous Ads

How Forks Might Help Bitcoin Reach Its True Destination

Forks offer ideological leaders the chance to put their ideas on improving protocols into practice without getting bogged down in endless bickering.

Posted on 10 December 2017 | 3:40 am

How to get rich off bitcoin — or lose it all while trying - Chicago Tribune - Chicago Tribune


Chicago Tribune

How to get rich off bitcoin — or lose it all while trying - Chicago Tribune
Chicago Tribune
Here's a primer that might help demystify the new phenomenon of bitcoin for you investor types.

and more »

Posted on 9 December 2017 | 10:14 pm

Bitcoin Drops to $13k in Red Day for Crypto Markets

Days before a major futures product launch, bitcoin suffered heavy losses Saturday, a trend that so far appears to be continuing into Sunday.

Posted on 9 December 2017 | 9:30 pm

Lightning: The Bitcoin Scaling Tech You Really Should Know

One of the most talked about technologies in development for bitcoin is the Lightning Network. But what does it do, and when might it be ready?

Posted on 9 December 2017 | 3:45 am

Zcash Sets Roadmap for Blockchain Upgrades in 2018

The zcash development team is planning a series of network upgrades for next year, according to a roadmap published today.

Posted on 8 December 2017 | 3:45 pm

U.S. Senate Mulls Reporting Requirements for Cryptocurrencies

USSenateBill

American Bitcoin holders may soon have to report their holding to the United States government.

First introduced on May 25, 2015, by Sen. Chuck Grassley [R-IA], Senate Bill S.1241, the
“Combating Money Laundering, Terrorist Financing, and Counterfeiting Act of 2017,” can have serious implications for those involved in the cryptocurrency space. The hearing for S.1241 was held with virtually no public notice on November 28, 2017; the full two-hour hearing can be viewed here.

Currently, the definition of “financial institution” includes banks, trust companies, credit unions, currency exchanges and the like. But according to Section 5312(a) of title 31, the new bill would amend the definition of “financial institution” to include “an issuer, redeemer, or cashier of prepaid access devices, digital currency, or any digital exchanger or tumbler of digital currency.” 

This is most specifically embedded in Section 13:

senatebilltextscreen.png

Sen. Dianne Feinstein [D-CA] said in her opening remarks of the hearing, “The bill criminalizes intentionally concealing ownership or control of a bank account.” Although, during the hearing, no further clarifications were given as to the effects this would have on the cryptocurrency community, based on the amended definition of “financial institution,” it would seem that the bill would criminalize anyone intentionally concealing ownership or control of a digital currency or exchange account. While there is no finalized bill yet, the implication would be that cryptocurrency holders need to fill in federal registration forms for tax disclosure, quarterly reporting and more.

Notably, while the purpose of the bill and hearing had to do with adding digital currencies and exchanges to the definition of financial institutions, there was almost no discussion on the topic other than briefly in reference to drug cartels using them to launder money. For example, nowhere in the testimony by Coinbase board of directors member Kathryn Haun Rodriguez does she mention digital currencies or exchanges, and at no time was she asked any questions about them.

Unsurprisingly, the bill is receiving pushback from some cryptocurrency holders. Activists on Reddit have started a social media campaign in opposition to the bill, and are suggesting others to tweet: “@senjudiciary that #Bitcoiners are not #Crooks Remove #DigitalCurrencies from Section 13 of S1241.” Others are contacting their senators directly.

The post U.S. Senate Mulls Reporting Requirements for Cryptocurrencies appeared first on Bitcoin Magazine.

Posted on 8 December 2017 | 3:23 pm

New ViaBTC Exchange to Use Bitcoin Cash as Base Trading Pair

Mining pool ViaBTC is launching a new cryptocurrency exchange based in the U.K., the company announced today.

Posted on 8 December 2017 | 12:25 pm

Op-ed: Bitcoin Is Not a Bubble; It's in an S-Curve and It's Just Getting Started

Op-ed: Bitcoin Is Not a Bubble; It's in an S-Curve and It's Just Getting Started

One of the most intriguing stories underpinning the recent rise of bitcoin prices is how financial institutions will interact with the currency.

The upcoming CBOE futures market is going to open the door for Wall Street giants to participate in the market. That could spell moon or doom for bitcoin, and everyone is speculating on what may happen next.

It is this Wall Street/BTC interaction (phenomenon) that may be driving the unbelievable price spike of the past few days — at least partially.

On the macro scale, however, we may be witnessing a more grand pattern forming; a price-correlated S-curve.

The S-curve is the classic adoption curve applied to the advent of new technologies. As a percentage of the population, adoption looks like a lag phase where the technology is utilized by the innovators of said technology, followed by an early adoption phase led by people who often take risks in order to be the first movers in a space. After the early adopter phase (~16% of the population is now participating), there comes a great “tipping point” where the wide use of the technology seems inevitable. The tipping point gives rise to the “Early Majority” joining in on the fun, followed by the late majority and, finally, the holdouts who allow the top of the S to asymptotically approach total adoption. The curve, as a factor of time and adoption, looks sort of like the following:

Screen_Shot_2017-12-08_at_9.56.44_AM.png

This curve correlates nicely with adoption of some of the greatest technological innovations in our recent history:

Screen_Shot_2017-12-08_at_9.57.15_AM.png

Some important things to note is that this is just U.S. adoption. Much of the world lagged behind the U.S. in the consumer appliance boom of the 1900s. All of these curves, however steep, do follow the same S-curve trend fairly nicely.

So what could that mean for bitcoin? It’s difficult to choose a metric to define bitcoin adoption, and, in fact, there are disputes about if one metric accurately captures it. However, for simplicity I’ll highlight Google searches for bitcoin and Coinbase user count as microcosms of the global adoption trend.

google search

Screen_Shot_2017-12-08_at_9.58.02_AM.png(from CNBC)

This seems to show a very similar pattern to what could be the transitional phase between “innovators” and “Early Adopters.” Just to harken back to the earlier statement though — it’s very difficult to put a number on bitcoin adoption.

So why is this remarkable? Bitcoin may be the first “buyable” S-curve. Because this is a capped-supply currency, more users adopting and using it necessitates an increase in price. Whether that correlation is even reflective of the current price action is a practically unanswerable question, and the obvious leaning would be towards there being a speculative additional value. However, with an increase in adoption, there seems to be a floor rising up to catch whatever “bubble burst” might occur, if and when it happens.

I'm starting to take the controversial position that I'm less looking at a financial market chart and more looking at a graph for adoption rates. $BTC pic.twitter.com/RmGFyCdwan

— Parabolic Trav (@parabolictrav) December 3, 2017

“Eternal September” is the phrase used to describe September of 1993, when widespread internet adoption began to look inevitable. It occured after AOL began a mailing campaign offering free trials of its internet service, leading to an influx of internet users that has since never ended. Hence “Eternal September.”

Always thought it would take another bubble for the #crypto equivalent, but this might be the start of #Bitcoin Eternal September https://t.co/95PaF9ZYD7

— David Bailey (@DavidFBailey) December 6, 2017

To compare bitcoin’s adoption to its complement — the internet — this may very well be the “Eternal September” episode for bitcoin.

If the S-curve adoption theory applies to bitcoin, then buckle up. I won’t pretend to be able to predict a spot price, but I will say I think we may be sitting close to another order of magnitude this time next year.

See y’all on the moon.

Corollary: Bulls sound smart in bull markets. We may look back and laugh at this thought, or it may hold true for years to come. Time will tell. ‘Til then, buy bitcoin.

Trading and investing in digital assets like bitcoin and ether is highly speculative and comes with many risks. This analysis is for informational purposes and should not be considered investment advice. Statements and financial information on Bitcoin Magazine and BTC Media related sites do not necessarily reflect the opinion of BTC Media and should not be construed as an endorsement or recommendation to buy, sell or hold. Past performance is not necessarily indicative of future results.


The post Op-ed: Bitcoin Is Not a Bubble; It's in an S-Curve and It's Just Getting Started appeared first on Bitcoin Magazine.

Posted on 8 December 2017 | 11:09 am

Bull Trap? Bitcoin Cash Price Is Up, But Gains May Be Short-Lived

Bitcoin cash (BCH) is well bid today, but a close look at the numbers indicates the positive move could be deceptive.

Posted on 8 December 2017 | 8:15 am

Microlending Startups Look to Blockchain for Loans

Blockchain is now being touted as a way to revive a long-promised method of boosting financial access for the underbanked.

Posted on 8 December 2017 | 7:00 am

Australian Finance Watchdog to Monitor Bitcoin Exchanges

The Australian Transaction Reports and Analysis Centre has received the go-ahead to monitor bitcoin exchanges after the passing of a new bill.

Posted on 8 December 2017 | 6:30 am

Bitcoin Dips Below $15k on Weak Afternoon Trading

Bitcoin was among the worst performing assets in the 6:00 UTC to 12:00 UTC trading session on Friday

Posted on 8 December 2017 | 6:00 am

Credit Union Trade Body NAFCU Joins Enterprise Ethereum Alliance

The National Association of Federally-Insured Credit Unions has become the latest member of the Enterprise Ethereum Alliance.

Posted on 8 December 2017 | 4:00 am

Bitcoin Prices Spark Demand for Washington's Cheap Electricity

The Central Washington region of the U.S. has reported surging demand from bitcoin miners for its cheap hydropower as price gains continue.

Posted on 8 December 2017 | 3:00 am

The Blockchain Token Velocity Problem

Most utility tokens don’t provide a compelling reason for users to hold the token for more than a few seconds. And that's a problem for its value.

Posted on 8 December 2017 | 2:00 am

Huobi, SBI Announce Plan for Japanese Bitcoin Exchanges

Cryptocurrency exchange Huobi and financial services giant SBI Group are partnering to launch a pair of Asia-based digital exchanges.

Posted on 8 December 2017 | 12:00 am

The Threat of Bitcoin Futures

Should the prospect of regulated futures trading be pushing up the bitcoin price? CoinDesk's Noelle Acheson isn't quite so sure.

Posted on 7 December 2017 | 10:00 pm

It’s A Wonderful Life for Bitcoin Evangelist as Community Expresses Its Gratitude

It’s A Wonderful Life for Bitcoin Evangelist as Community Expresses Its Gratitude


In “It’s a Wonderful Life,” the 1940s Christmas classic, George Bailey (played by Jimmy Stewart) is the guiding force of a small-town bank, who ends up sacrificing his own dreams for the betterment of his community.

Ultimately, facing financial ruin, he begins to question what it was all for. That is when his friends appear, one by one, with a flurry of donations, reminding him of how he touched each and every one of their lives, and Bailey realizes he is a rich man after all.

Bitcoin evangelist Andreas Antonopoulos recently found himself at the center of a similar outpouring of gratitude. The author and public speaker has spent the last five years of his life traversing the globe and educating people about Bitcoin. But, as it turns out, he hadn’t exactly made himself rich along the way.

WIth the price of bitcoin soaring into the $16,000s, a grateful community has decided to give Antonopoulos’s fortunes a karmic boost. A spontaneous giving spree, fueled by social media, is under way. Thus far, more than 100 BTC, valued at over $1.7 million has been sent to his bitcoin address. One individual alone sent an eye-popping 37 BTC, worth $500,000. (Update: That same individual added another 42 BTC, making for a total of 79 BTC: worth well over $1,000,000.)

Along with the money, people are tweeting under the hashtag #ThankYouAndreas and reminding Antonopoulos of the many ways he made a difference in their lives.  

“Words are my craft but tonight I am speechless,” the author of Mastering Bitcoin tweeted last night.

Never a Rich Man

Antonopoulos became involved with Bitcoin in 2012. He has written two books on the subject, describing in detail the technical rules governing Bitcoin in a way that a novice could understand, and has given more than 200 talks (many of them free) about Bitcoin.

It is easy to imagine that someone who knows so much about Bitcoin might have found a way to profit from it. A small investment in the virtual currency five years ago, when bitcoin was at around $6, would have netted the Bitcoin writer a humongous profit. (Bitcoin is currently listed at $16,000.) But Antonopoulos wasn’t really a speculator.

Indeed, as investor Roger Ver pointed out in one of his tweets, if Antonopoulos had put more money into bitcoin early on, he would have been a lot better off financially.

But Antonopoulos was too busy, too obsessed with spreading his vision of a world free from the strictures of legacy banks and payment systems. He wanted people to understand the technology and to appreciate its promise.

That early obsession, as he described in a recent blog post, led him to undo a lifetime of savings and eventually fall into credit card debt as he tumbled down the Bitcoin rabbit hole. He lived paycheck to paycheck for years until becoming debt-free at the end of 2016. Those bitcoins he’d collected and earned had to be cashed out along the way to support him and his family.

I did invest, Roger. Then I sold in 2013 to pay my rent. I didn't have disposable income to work for two years without pay and invest at the same time. I should've gone into more debt, but that would have been irresponsible towards my family who I supported

— Andreas M. Antonopoulos (@aantonop) December 5, 2017

Because most people were not aware of Antonopoulos’s earlier struggles, some were puzzled when he recently began putting videos of his talks on Patreon, a membership platform that allows users to collect monthly subscription fees for services.  

I’m not a bitcoin millionnaire [sic],” Antonopoulos responded to one follower on Twitter. “My supporters on Patreon, many at $5/month, make it possible for me to work with independence.”

Developer Adam Back quickly responded with the suggestion that “if ‘sign guy’ can get a meaningful start from tips, we should try [to] find a way for the community to fund @aantonop to a hodlers position.” And the community agreed.

Shortly thereafter, his number of Patreon supporters began to rise, and donations started to pour into Antonopoulos’s bitcoin address.

In addition to the funds that accumulated, accolades began to pour in from supporters far and wide on Twitter, Reddit and Patreon. Many credit him for getting them into Bitcoin in the first place, for helping them to understand it and for inspiring them to pursue careers in the space.

“I don’t know anyone as authentic, well-intentioned and universally respected in the industry,” wrote entrepreneur Ryan Selkis in a tweet.

#THANKYOUANDREAS for being a shining example of what a thought leader in the space should look like 👏👏

— Dan Hedl (@danheld) December 6, 2017

“@aantonop is by far the BEST advocate and most eloquent speaker on #bitcoin. His speeches had a HUGE influence on me,” wrote investor and author Brian Kelly.

“The community raised over $700,000 worth of Bitcoin in a matter of hours for Andreas from all over the world, which beautifully shows the power of Bitcoin itself, actually,” wrote Erik Voorhees, CEO at cryptocurrency exchange ShapeShift.

For Antonopoulos, the outpouring of support has been no less than overwhelming.

“I am going offline for a few days. I need time to process everything that happened,” he tweeted on Wednesday. “If you sent me a message in the last 48 hrs, thank you. If I don’t respond for a week or so, I apologize.”




The post It’s A Wonderful Life for Bitcoin Evangelist as Community Expresses Its Gratitude appeared first on Bitcoin Magazine.

Posted on 7 December 2017 | 3:52 pm

Out of Steam: PC Gaming Platform Ends Bitcoin Payment Option

Out of Steam - PC Gaming Platform Ends Bitcoin Payment Option

The utility aspect of Bitcoin faced a setback yesterday as PC gamers heard from Valve Corporation’s Steam Team in a blog post that Bitcoin would no longer be accepted as payment on its digital distribution platform, Steam. Citing the volatility of the currency as well as the rising cost of fees, a representative of The Steam Team, known as “kurtis”, explained that the volatility of Bitcoin has created a problem for users trying to purchases games using the currency. Kurtis pointed out that:

The value of Bitcoin is only guaranteed for a certain period of time so if the transaction doesn’t complete within that window of time, then the amount of Bitcoin needed to cover the transaction can change. The amount it can change has been increasing recently to a point where it can be significantly different.

Kurtis further elaborated that the normal resolution mechanism on Steam is either to refund the original payment to the user, which would negate the transaction or to ask the user to transfer additional funds to cover the remaining balance. “In both these cases, the user is hit with the Bitcoin network transaction fee again.” Bitcoin was adopted as a means of payment via  bitcoin payment processor, BitPay, for games on Steam on April 27, 2016.


Some users commenting on the blog seem to agree and support Valve’s decision, with many calling for utilization of alternative cryptos such as Vertcoin, IOTA, and Litecoin. Others, such as one user named “Kaj Jez”, stated,

Massively disappointing. The first purchase I ever made in Bitcoin was on Steam. As long as Steam doesn't accept BTC I will prefer to do business with devs' own stores that hopefully do…But as Bitcoin will undoubtedly improve itself with scalability solutions so to will Steam hopefully improve itself by rectifying this mistake and once again accepting it.

Steam, the largest digital distribution platform for PC Games, has an active user base of over 275 million users with an average of 11 games per user, according to Sergey Galyonkin’s Steam Spy API. In a Medium article, Galyonkin elaborated that 2016 sales for PC games through the Steam Platform totaled roughly $3.47 billion dollars. While it is unclear how much of that revenue resulted from bitcoin transactions during its period of acceptance, it is clear that the PC gaming community faced a major setback in utilizing Bitcoin as a means for buying games.


At the time of this writing, neither BitPay nor Steam nor Valve Corp could be reached for additional comment.

The post Out of Steam: PC Gaming Platform Ends Bitcoin Payment Option appeared first on Bitcoin Magazine.

Posted on 7 December 2017 | 3:11 pm

New Bitcoin Mining Centers Set to Increase North American Market Position

New Bitcoin Mining Centers Set to Increase North American Market Position

While China continues to dominate the bitcoin mining market, North America has now gained another significant player who can help decentralize mining power. Hut 8 Mining Corp (Hut 8) and the Bitfury Group (Bitfury) have announced a partnership that will create North America’s largest bitcoin mining center, located primarily in Alberta, Canada.

“We are excited to partner with Hut 8 to expand our activities in the strategic North America market,” said Bitfury CEO, Valery Vavilov, in a statement. “We believe there is a tremendous opportunity to establish North America as one of the most important cryptocurrency mining hubs in the world.”

Known for manufacturing their own Application Specific Integrated Circuit (ASIC) chips, Bitfury is the world’s largest bitcoin mining company outside of China. Their custom hardware and software solutions eliminate the reliance on any third parties, which lowers costs and improves efficiency. Their BlockBox AC datacenter product allows for significantly shorter setup time to establish a commercial bitcoin mining center.

Hut 8 is a bitcoin mining company that will provide shareholders access to the price appreciation of bitcoin. Once the partnership is finalized, Hut 8 will control what they believe to be the largest cryptocurrency mining farm in North America: Hut 8 will gain immediate control over 22 bitcoin mining datacenters spread across Alberta.

The expectation is for Hut 8 to be listed on the Canadian stock exchange during Q1 of 2018 and increasing control over an additional 35 datacenters. Hut 8 anticipates that through a combination of existing Bitfury sites and new installations, they will scale to 60 or more datacenters during 2018.

The datacenters will be comprised of Bitfury’s containerized bitcoin mining units called Blockboxes, containing Bitfury’s 16nm ASIC chip, which they claim is one of the most efficient on the market. Bitfury will be providing the infrastructure for the partnership via the aforementioned assets and Hut 8 will own and operate the centers.

On December 4, 2017, Hut 8 is made available an approximate 13,200,000 shares on a private placement basis through GMP Securities L.P., worth approximately $25.7 million ($33 million CAD); the proceeds of which will be applied towards the initial acquisitions described above.

Also making moves in the North American mining market, Giga Watt has been promoting its own modular datacenter design called “Giga Pods.” While Giga Watt doesn’t have custom hardware solutions, they do allow for new entrants to buy and run their own hosted mining rig and potentially make money. It will be interesting to watch the development of these companies in North America over the course of 2018.

The post New Bitcoin Mining Centers Set to Increase North American Market Position appeared first on Bitcoin Magazine.

Posted on 7 December 2017 | 2:22 pm

Quant Network Launches Overledger for Cross-Blockchain Data Interoperability

Quant Network Launches Overledger for Cross-Blockchain Data Interoperability

Last month, science and technology magazine New Scientist covered the Overledger project in a story titled, “The Blockchain to Fix All Blockchains.” The story emphasizes the need for data interoperability technology across different blockchains that could play a role similar to TCP/IP, which enabled the internet to thrive.

“[Overledger] seems to be a straightforward extension of the original atomic swap idea,” said Cornell University cryptocurrency expert Emin Gun Sirer, as reported by New Scientist. But instead of only supporting currencies as atomic swaps do, the Overledger works for any data that can be put on the blockchain.

Overledger_Graphic_v0.4.png

The Quant Overledger project is just coming out of stealth mode. In conversation with Bitcoin Magazine Gilbert Verdian, CEO and co-founder of Quant Network, confirmed that a patent for Overledger technology was filed in the first week of December.

"The uniqueness of our operating system is that Overledger is not another blockchain,” Quant Chief Strategist and Executive Director of the UCL Centre for Blockchain Technology at University College London, Paolo Tasca, told Bitcoin Magazine. “We do not impose new consensus mechanisms, new gateways, adapters or special validating nodes on top of existing blockchains. Overledger is a virtual blockchain that links existing blockchains and allows developers to build multi-chain applications (or in other terms blockchain-agnostic applications)."

According to Verdian, blockchain technology needs to enable next generation applications to function across multiple blockchains, not be limited to any single a vendor or technology and allow seamless communication across multiple blockchains as well as recognition of transactions and assets across blockchains.

As such, Quant is focussing on three goals: developing an API to connect the world’s networks to multiple blockchains; bridging existing networks (e.g financial services) to new blockchains; and developing a new Blockchain Operating System with a protocol and a platform to create next-generation, multi-chain applications.

Promoting the Blockchain ISO Standard

Verdian initiated the development of Blockchain ISO Standard TC 307, which will allow for interoperability, governance and reference architecture of blockchain technologies to work between blockchains as well as allowing blockchain networks to interoperate with existing systems and networks in use today.

Currently, there are 40 countries and organizations, such as the European Commission, working on developing the Blockchain ISO Standard, and the timeline is to have a published Standard in 2020, Verdian explained.

“Establishing blockchain standards will position ISO as a leading contributor to develop global solutions to facilitate data movement and information flows, thus enabling more efficient and timely transactions,” Verdian told Bitcoin Magazine. “There is no one blockchain standard or protocol currently in use. International standards will allow for interoperability and implementation and use of multiple blockchain-related protocols.”

“Quant Overledger will be compatible to the Blockchain ISO Standard when it is released, allowing a gateway to ‘talk’ a common language to other networks and existing systems such as financial services networks,” continued Verdian. “The entry and exit points of Overledger will be compatible to the ISO Standard, which any other technology vendor can also implement in future.”

Benefits of Interoperability

Verdian added that the widespread adoption and use of international blockchain standards could facilitate a new wave of innovation, productivity, employment and industry opportunities. For example, the growing burden of KYC compliance could be reduced through the development of international blockchain standards which utilize shared databases for undertaking business and transacting payments.

The development of international standards to support smart contracts has the potential to decrease contracting, compliance and enforcement provision costs. Similarly, the development of international blockchain standards could reduce transaction costs for SMEs when dealing with governments and businesses.

“Quant will completely change how people will be able to interact with blockchains in a way that’s not possible today,” concluded Verdian. “A good example is the recognition of a person’s identity by one entity on a blockchain will be recognized and understood by every other blockchain and every entity connected to those.”

Dapp Development

There are plans for a Quant App Store that will allow developers and startups to create multi-chain applications on top of Overledger and monetize their applications in unique ways, without having to rely on capabilities of only one blockchain.

“As a company, we’re also planning to release distributed applications on top of Quant in the areas of RegTech, FinTech and HealthTech,” Verdian told Bitcoin Magazine, adding by allowing businesses to directly interact with multiple blockchains, they will be better able to cope with the modern supply chain complexities.

In a pre-ICO (Initial Coin Offering) in January, followed by an ICO in February, Quant will sell Quant Tokens that will allow users to access the Quant network. Developers will be able to publish distributed apps on the Quant store and optionally monetize their apps by charging usage fees in Quant Tokens, for example.

Quant plans to release the first versions of Overledger in Q1 2018 and finalize the SDK and libraries in Q3 2018. This will be an open source and freely available software release that developers and enterprises will be able to use for creating next generation multi-chain applications. Then, Quant plans to release the Quant App Store at the end of 2018 for developers to publish their apps and earn Quant tokens.


Image courtesy of Quant Project 

The post Quant Network Launches Overledger for Cross-Blockchain Data Interoperability appeared first on Bitcoin Magazine.

Posted on 7 December 2017 | 8:06 am

Regulation and the Future of Cryptocurrency at Token Summit II

Token Summit 17

On December 5th, 2017, the Mission Bay Conference Center in San Francisco hosted cryptocurrency enthusiasts in suits, hoodies and everything in between. Token Summit II, presented by William Mougayar, author of “The Business Blockchain,” and Nick Tomaino, founder of 1confirmation, was a hub for cohesion and problem-solving in the blockchain space. Experts gathered from every corner of the industry to discuss government regulation, cryptocurrency initiatives and the future of blockchain technology.

Here are some of the highlights from the conference.

Regulation Trials and Tribulations

Nancy Wojtas, partner at Cooley; Kathryn Haun, board member at Coinbase; Stan Miroshnik, CEO and managing director at Element; and Lowell Ness, partner at Perkins Coie, demystified and further debated looming government regulation (and lack thereof).

Common questions that echoed throughout the panel: Which regulatory agency should investors focus on? Are tokens securities? Will there be new regulation or does existing regulation suffice?

Haun believes that “people in the ICO space are myopically focused on the SEC.” Although the SEC has already issued guidance and issued emergency action, there is an “alphabet soup” of other agencies that could issue further regulation. Federal and state regulatory agencies such as the DOJ could also intervene –– which could involve prison time for breaking the law.

Wojtas, on the other hand, explained her perception that because the SEC is leading the charge, other agencies are taking a backseat. She speculated that “[people] are free to continue to do what we are doing,” while being sensitive to all regulations.

The short answer from the entire panel on whether or not tokens should count as securities: the government hasn’t figured it out yet. They agreed that until the government sets a precedent in court, there is no clear answer.

A utopian scenario in terms of regulating the industry as a whole would entail new regulatory schemes that specialize in blockchain technology and tokenization. The panelists suggested that there is a low likelihood for new regulation in the United States but that investors might see clarity once there is a body of cases that grows from tokens challenging the government in court or vice versa.

Token Transparency and ICO Insights

Messari, a new transparency and disclosures project, shared their vision to become the open source data library for the universe of crypto assets –– an SEC EDGAR-like solution for consumer protection. Ryan Selkis, founder of the Messari project, summarized the crux of cryptocurrency: Quasi-fiduciaries are selling quasi-securities, and there is no gold standard for disclosure.

By creating an open data library, Messari hopes to serve all people: consumers, investors, lawyers and beyond. The team is committed to neutrality, working with regulatory standards bodies and cryptocurrency projects on a global scale to provide a free, open-source database.

Crypto Valley > Silicon Valley?

Oliver Bussmann, President of the Crypto Valley Association, utilized his panel time to entice potential cryptocurrency token founders to consider the Crypto Valley (Zug, Switzerland) as the ultimate location to launch their venture. The Valley is leveraging Switzerland’s deep-rooted culture of privacy protection, confidentiality and legal certainty to become one of the fastest-growing global ecosystems. It boasts over 500 total members and an increase of 30 members per month. It’s no surprise that Crypto Valley churns out cryptocurrencies like clockwork. The Valley has produced 10+ large scale Initial Coin Offerings (ICOs) with 40+ in the process and 170+ in the pipeline.

In an interview with Bitcoin Magazine, Bussmann explained that unlike other ecosystems, such as Silicon Valley, entrepreneurs can expect to find every possible resource necessary for a successful token launch within a 30-mile radius of Crypto Valley.

“We have advisors helping with value proposition and token economy, seasoned legal experts, tax experts, accounting experts, people specialized in global marketing and global communications PR, secure ICO launch platforms, independent audit firms, smart contract audits, KYC, AML utilities and a community of investors looking to support the product.”

The Future of Cryptocurrency

Naval Ravikant, founder of AngelList, shared his thoughts about the current state of cryptocurrency. In his opinion, cryptocurrency seems to be going mainstream faster than expected. He cited factors such as “savings accounts returning nothing and federal reserves returning nothing” as motivators that investors might have for entering the cryptocurrency market. He also attributed the massive increase in market capitalization to the cryptocurrencies’ ability to “absorb infinite speculative money.” However, Ravikant believes that a regulation-free grace period is still necessary for cryptocurrencies to develop properly.

When asked where he hypothesizes cryptocurrencies are in terms of bubble status, Ravikant replied that money can be a bubble that doesn’t pop and that he isn’t sure about the severity of the cryptocurrency bubble. As he explained, “If we all agree that something has value, it does.”

In regards to government regulation, Ravikant’s answer was straight to the point:

“It’s not a question of when the government will get blockchain, but how.”



The post Regulation and the Future of Cryptocurrency at Token Summit II appeared first on Bitcoin Magazine.

Posted on 6 December 2017 | 2:34 pm

Developers Release Lightning Protocol 1.0; Perform Successful Interoperability Tests

Developers Release Lightning Protocol 1.0; Perform Successful Interoperability Tests

Blockchain developers ACINQ, Blockstream and Lightning Labs, are announcing the 1.0 release of the Lightning protocol and the world’s first Lightning test payments on the Bitcoin mainnet across all three implementations. These are considered to be important steps toward the standardization of the Lightning Network’s second-level, off-chain payment layer. The three teams, and others in the Bitcoin community, developed the Lightning specification through an open, collaborative process.

"Interoperability is key to making Lightning a success. We have worked for over a year to design a specification so that we and other developers can write implementations that talk to each other,” Elizabeth Stark, CEO of Lightning Labs, told Bitcoin Magazine. “This ensures that no matter which implementation a user is using, they will be connected to one Lightning Network.”

“It's the culmination of a year's work on the protocol specification, and the tests show that we have built a solid protocol that delivers on the promises of high scalability, increased privacy, and faster payments," Christian Decker, a Blockstream infrastructure tech engineer, told Bitcoin Magazine.

In parallel with protocol development work focused on interoperability and cross-compatibility, each of the three teams also developed specific Lightning implementations: ACINQ developed eclair, Blockstream developed c-lightning, and Lightning Labs developed lnd.

In a first test, the coffee shop Starblocks, a sample eclair application, accepted an incoming payment in bitcoin from a customer paying with the lnd Lightning app, routed through c-lightning.

In a second test, the developers made a payment from eclair to yalls.org, a sample lnd application, routed through c-lightning.

“This highlights another anticipated use case for Lightning: the ability to send instant, small value payments,” noted the three companies. The tests used nodes distributed around the world, including Asia, Europe, South America and North America.

It seems plausible that these and other interoperable Lightning Network implementations could be, one day, operational on the Bitcoin blockchain, but the developers are cautious about committing to a specific timeline.

“Our next steps are to continue testing and work as quickly as we can toward a mainnet beta, where users will be able to use small amounts on the Bitcoin mainnet,” Stark told Bitcoin Magazine.

Decker’s focus will be on the completion of the clients and individual releases “as quickly and safely as possible.” He emphasized that taking a patient approach and focusing on security is key. "We don't make any promises besides. We do not release immature software out of respect for our user's funds."

The Lightning Network is an overlay network built on top of an existing blockchain, in this case the Bitcoin blockchain. Similar to how the internet is built in layers, Lightning Network implementations create a new off-chain, high-throughput layer to channel near-instant payments. Interoperability will enable a single Lightning Network where payments are seamlessly routed without being isolated or incompatible.

Limited scalability is one of the main problems plaguing current Bitcoin technology. In fact, the current Bitcoin blockchain can only process a few transactions per second, far below the thousands of transactions per second processed by the main credit card payment networks. Therefore, following the first Bitcoin Lightning Network white paper, published in February 2015, developers have been working on Lightning Network implementations to enable bitcoin scalability, efficient micropayments and near-instant transactions.

This page on Github shows the latest integration test results for the three Lightning implementations.

“As we move towards a final 1.0 version of the specification, we invite the broader community to provide peer review and feedback,” concludes the announcement. “We look forward to continue working together to build the future of Layer 2 scalability technology.”



The post Developers Release Lightning Protocol 1.0; Perform Successful Interoperability Tests appeared first on Bitcoin Magazine.

Posted on 6 December 2017 | 10:48 am

Bitfinex Critics Prepare for Possible Legal Action After Cryptocurrency Exchange Lawyers Up

Bitfinex Critics Prepare for Possible Legal Action After Cryptocurrency Exchange Lawyers Up

Bitfinex, the world’s largest cryptocurrency trading platform, has hired Steptoe & Johnson, a heavy-hitting, international law firm based in Washington, D.C., to try to put an end to what their PR firm calls “a campaign of mistruth.”

According to an earlier statement issued by Ronn Torossian, CEO of 5W, the PR company representing the exchange, Bitfinex is “signaling to those who engage in this activity that they are serious about protecting the truth and their business.”

Steptoe & Johnson is known for its work in the digital currency space. The firm leads the Blockchain Alliance, a coalition of blockchain companies and U.S. and international law enforcement agencies around the world.

Although Bitfinex did not spell out exactly whom it was threatening to take legal action against, the announcement comes at a time when blogger Bitfinex’ed has been persistently denouncing the company in a series of detailed Medium posts and ongoing tweets. Other critics have been taking their swings at Bitfinex as well.

“To date, every claim made by these bad actors has been patently false and made simply to agitate the cryptocurrency ecosystem,” Stuart Hoegner, in-house counsel for Bitfinex, said in the announcement. “As a result, Bitfinex has decided to assert all of its legal rights and remedies against these agitators and their associates.”

The Backstory

Bitfinex, incorporated in the Virgin Islands, is closely tied to cryptocurrency company Tether, based in Hong Kong. Both companies are owned and operated by the same individuals, as revealed in recently leaked documents.

Tether issues a token (USDT) that is pegged, or tethered, to the U.S. dollar. Essentially, one USDT is supposed to represent one dollar. By trading their bitcoin or other cryptocurrency for USDT, traders can essentially park their funds in a stable asset to preserve capital. In that sense, Tether works something like a money market account. Tether also allows traders to move their money between exchanges without going through a bank.

Bitfinex does not support bitcoin-to-fiat trading or withdrawals, so if traders on Bitfinex want to sell their bitcoin for fiat, they would have to transfer their bitcoin to a regulated exchange like U.S.-based Coinbase, which links to users’ bank accounts, allowing them to make direct fiat deposits and withdrawals.

In August 2016, Bitfinex was hacked, losing 120,000 BTC, worth roughly $72 million at the time. Rather than declare bankruptcy, the exchange came up with a three-part strategy. First, it spread the loss out evenly among all its customers, giving everyone a 36 percent haircut and then issuing “BFX tokens” as I.O.U.’s to be redeemed at a later date.

Next, in mid-October, Bitfinex offered to allow its customer to convert their BFX tokens to equity in iFinex, the parent company that operates Bitfinex. As a result, roughly a third of all BFX tokens were converted. Finally, in April 2017, Bitfinex bought back all of the remaining BFX tokens and announced it was clear of debt.

Allegations and Concerns

At issue right now is the fact that more than 800 million USDT are in circulation, but so far, Tether has not shown any real proof that it has the money to back up those tokens.

Bitfinex’ed claims Bitfinex/Tether is creating that money out of thin air. He also claims Bitfinex is manipulating the markets through techniques such as spoofing — where a trader puts in a large bid or ask order to make the price of bitcoin go up or down before canceling the order — and wash trading, where an asset is bought and sold simultaneously to give the impression it is in more demand than it actually is.  

He also argues Bitfinex is operating a Ponzi scheme, paying back its debt through accounting tricks, to avoid becoming insolvent after it was hacked in August 2016.

But while Bitfinex is trying to protect its image by threatening legal actions against its critics, Stephen Palley, an attorney at Anderson Kill in Washington, D.C., who focuses on software development, thinks Bitfinex would do better by simply being more transparent.

“Why don’t they just open their books?,” he told Bitcoin Magazine. “What are they afraid of? They are going to have to do that in discovery and litigation anyhow.”

To win in court, Bitfinex would have to prove that the blogger was making claims that were false and unsubstantiated, which would require them to come clean themselves.

It looks to me like they are using heavy-handed intimidation tactics to shut down someone they claim is inconsequential,” said Palley.

Bitfinex’ed recently tweeted his bitcoin wallet address and said he is seeking donations to defend himself against possible upcoming litigation. One person has already donated 1 BTC (currently worth $11,500).

“This is bloody bananas,” Bitfinex’ed told Bitcoin Magazine, in response to the hiring of Steptoe.

The blogger cited a previous lawsuit filed by Bitfinex, which he claims the exchange had no plans of following through on. In April 2017, Bitfinex filed a lawsuit against Wells Fargo for suspending its U.S. dollar wire transfers. That suit was withdrawn a week later.

“Best to be prepared,” Bitfinex’ed said. “If this is [a] big bluff on their end then money goes to charity, I can't hold the bitcoins while whistleblowing.”

The post Bitfinex Critics Prepare for Possible Legal Action After Cryptocurrency Exchange Lawyers Up appeared first on Bitcoin Magazine.

Posted on 5 December 2017 | 2:09 pm

China Turns Bitcoin Focus Inward

BitBank


The Chinese government has often had a tumultuous relationship with Bitcoin, but things came to a head in 2017. By the end of the year, there was no longer a Chinese industry exchanging bitcoin for fiat currency. How did that happen, and where does China go from here?


From his office in Shenzhen, Virgilio Lizardo, Jr. has watched the waning of China’s influence on bitcoin pricing with interest. As Vice President of International Affairs at Bitbank Group, he sees cryptocurrency trends and pricing daily. The group’s businesses include China’s former fourth largest Bitcoin exchange CHBTC, alongside BW Mining, which manufactures miners and runs its own pool. With its Bitbank Bitcoin bank and crowdfunding business, the group is well-acquainted with all parts of the cryptocurrency’s ecosystem.


First warnings


Fissures in China’s relationship with Bitcoin appeared in January, when the People’s Bank of China (PBOC) warned citizens about the risk of trading in bitcoin, and then investigated three exchanges: OKCoin, Huobi, and BTCC. The investigation led to a temporary freeze on margin trading, traditionally used as a means of capitalizing on short-term price changes.


Some exchanges subsequently re-introduced margin trading with limits on the available leverage, but the damage was done.


“In China, you could get into bitcoin and leverage by 10x, 20x, 100x – even up to 250x,” recalled Lizardo. “That ended overnight.”


International traders who were still interested in the Chinese market suffered another blow in early February, when the three exchanges froze bitcoin withdrawals altogether, locking up bitcoins for four months.


Enter Japan


This volatile policy shifted the focus of Chinese exchanges from the international to the domestic market. In the meantime, Japan gained dominance, passing legislation legitimizing bitcoin as a payment currency and increasing its price.


By the time the exchanges re-opened withdrawals, market focus had shifted. “By this time, Japan already cemented its position as the leading market for bitcoin trading, because a lot of international traders just didn't feel confident about Chinese exchanges,” Lizardo said.


That lack of confidence was well-founded. In September, the Chinese government once again cracked down on a key aspect of the cryptocurrency market, this time banning initial coin offerings (ICOs) (see original announcement here). These financial events allow the public to buy cryptocurrency tokens. The tokens give them a stake in new software applications that run on blockchain technology.


ICO bans and voluntary closures


“In the summer China was probably the number one market for ICOs,” said Lizardo. “There were a lot of scammy, fraudulent ICOs happening that caught the attention of the authorities.”


From there, the conversation escalated quickly, resulting in Chinese exchanges voluntarily closing down their Yuan-BTC trading services. BTC China and Via BTC both said that they would halt trading, as did OKCoin and Huobi, and BTCC. Some exchanges have since mulled moving operations overseas, or restricting activities purely to non-fiat cryptocurrency trading.


The exchange closures led to plummeting bitcoin prices, which slipped from a high of US$4884 on Sept 4 to US$3312 on Sept 17. But after that, bitcoin’s price rise has been astronomical. It was nudging US$9800 at the time of writing.


The rebound punctuates China’s decreasing influence over the last year, said Lizardo.


“It was a combination of the momentum built up by nation states – particularly Japan – legitimizing the currency, and traders realizing that the influence of China on the price of bitcoin is coming to an end.” There are other markets ready to absorb China’s bitcoin trading volumes, he added.


Refocusing on domestic trading


There are still plenty of options for Chinese bitcoin traders, though, as the market focuses inward and moves to over the counter (OTC) trading.


“When exchanges were locked out of the picture, all the volume and trading in that network went into over-the-counter (OTC),” he said.


He noted that following the crisis earlier in the year, the user base for BitKan, the leading OTC bitcoin app in China, increased fifteen-fold.


Bitkan, which has since closed, connected users initially, but then enabled them to exchange their own messaging information and begin transacting directly.


“In China the mobile ecosystem is beyond anything in the world. It’s easy to transfer fiat to each other using just a messaging app,” he pointed out. Based on BitKan’s user numbers, the real volume of OTC bitcoin trades in China today is probably huge, but it’s also almost entirely invisible.


“Informally, every OTC trader in China is doing spectacularly well right now,” Lizardo Jr concluded. “The market is so huge that each trader can have their own network and it won’t overlap with another OTC network, and that doesn’t even count international OTC relations,” he said.


While the market has refocused internally for the time being, Lizardo said that the government has “left itself some wiggle room” if it wants to re-establish a trading environment between Bitcoin and fiat markets in the future.


“Blockchain technology and Bitcoin are marching on at their fastest pace ever,” he said, adding that there is always an option to reopen the markets. “With Japan and others moving forward more positively, I don't think that China will stay on the sidelines forever.”


The post China Turns Bitcoin Focus Inward appeared first on Bitcoin Magazine.

Posted on 1 December 2017 | 9:52 am

Bitcoin tops $10,000 milestone

Posted on 29 November 2017 | 2:30 am

Bitcoin price climbs over $4,000

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CRYENGINE now accepts Bitcoin

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Consulting firm EY Switzerland accepts Bitcoin

Posted on 26 November 2016 | 12:47 am

Bitcoin Trading Bots

There have been a wide variety of situations in which algorithmic trading programs have proven to be beneficial for investors. However, investors who only trade a cryptocurrency can also take advantage of bitcoin trading bots. Through bitcoin bot trading, traders can become more flexible and prompt, minimize errors and process information more rapidly. At this… Read More »

Posted on 8 November 2016 | 6:20 pm

Steam accepts Bitcoin

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Major Magazine Publisher to Accept Bitcoin Payments

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Microsoft accepts Bitcoin

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Mozilla accepting Bitcoin

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PayPal and Virtual Currency

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Wikimedia Foundation Now Accepts Bitcoin

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German Newspaper "taz" accepts Bitcoin

Posted on 22 July 2014 | 1:32 pm

airBaltic - World’s First Airline To Accept Bitcoin

Posted on 22 July 2014 | 11:03 am

December 10, 2017 -
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