The Bitcoin Cash Halving Countdown – 50% Less Block Reward in 4 Days

The Bitcoin Cash Halving Countdown - 50% Less Block Reward in 4 Days

The Bitcoin Cash (BCH) network will face a halving in four days and many BCH proponents are getting ready for the big day. Unfortunately, the covid-19 outbreak has overshadowed the halving and BCH has dropped in value by roughly 30% since the end of February.

Also Read: Bitcoin Halving Will Drop Inflation Rate Lower Than Central Banks’ 2% Target Reference

Bitcoin Cash Will Experience a Halving in 4 Days – Block Rewards to Drop by 50%

BCH supporters are getting ready for the big halving day, at least the best they can since most of the world has been stuck at home due to the coronavirus. So far, roughly 87.4% of the 21 million BCH available are in circulation and there’s around 18,366,500 BCH at the time of publication. Every four years, the BCH network sees a reward halving as the system’s rules are meant to make the issuance rate harder.

The Bitcoin Cash halving will take place in four days on or around Passover, April 8. Typically, there’s about 1,800 BCH mined per day, which gives the chain an inflation rate of 3.6%. Bitcoin cash miners finding a block on the BCH network today get approximately 12.5 BCH, but after the halving they will only get 6.25 coins.

The Bitcoin Cash Halving Countdown - 50% Less Block Reward in 4 Days

The Bitcoin Cash network’s drop in issuance will change the inflation rate to an estimated 1.8% per annum. The mathematical and probable monetary system is a stark contrast to the unpredictable monetary system that the world’s central banks provide. Central banks, like the Federal Reserve, claim to keep the inflation rate at 2%, but reports from shadowstats.com note that the real U.S. rate could be as high as 10%. No one knows how bad the inflation rate will get now that central banks worldwide have started creating trillions in fiat currencies out of thin air.

The Bitcoin Cash Halving Countdown - 50% Less Block Reward in 4 Days
Bitcoin cash’s price on April 3.

The Fed’s schemes are completely different from the issuance rate Satoshi Nakamoto designed and the 1.8% per annum inflation rate for BCH will continue to get better. For instance, by the end of 2024, it is estimated that the BCH inflation rate will be around 1.1% and it will drop to 0.9% the very next year. By the end of 2028, around 20.5 million BCH should be mined by then and the inflation rate is expected to be about 0.5%.

The Bitcoin Cash Halving Countdown - 50% Less Block Reward in 4 Days

Four days before the halving, there’s around 3.63 exahash per second (EH/s) mining the Bitcoin Cash chain. On Friday, there are 10 different mining pools hashing away at the BCH chain. This includes operations like Antpool, Viabtc, Bitcoin.com, Btc.top, P2pool, Huobi, Poolin, Mining-Dutch, Btc.com, and Prohashing. Antpool captures the most hashpower on April 3, with 32% of the overall hashrate, while 6.5% of the hashrate is mined by stealth miners.

Miners have about 8,500 coins left to mine and there are about 680 blocks left until the halving. BCH difficulty is around 486,638,039,618 and mining profitability between BTC and BCH has been less volatile lately. At the time of writing, it is 1.6% more profitable to mine the BTC blockchain and BTC miners face a halving in 39 days.

The Bitcoin Cash Halving Countdown - 50% Less Block Reward in 4 Days
Bitcoin Cash’s hashrate on April 3. Do you want to supercharge your mining potential? Mine bitcoin easily on the cloud without having to buy hardware, or plug your own hardware into the world’s highest paying mining pool.

Interesting Times Ahead

BCH fans are excited about the upcoming halving and a number of proponents discussed the subject two days ago, when there were six days left until the halving. Electron Cash developer Calin Culianu (Nilac the grim) said that he hopes things work out for the best. “Lord help us make it through these all-around crazy times better than we were entering into them,” Culianu wrote. “Interesting times ahead indeed,” Reddit user Jackandjill22 responded. The following day, Poolin executive Alejandro De La Torre tweeted:

Only five days to go for the bitcoin cash halving. This is an event to monitor, might be indicative of what’s to come with the bitcoin halving.

With the covid-19 outbreak, it’s likely that there won’t be any Bitcoin Cash halving parties come April 8. Most people will be monitoring the BCH reward reduction from home and they will surely be watching the price and the hashrate after the halving kicks in. If you are interested in reading about specific halving countdown websites for every Bitcoin branch reward reduction, then check out this article on the subject.

What do you think about the upcoming BCH halving? Let us know in the comments section below.

The post The Bitcoin Cash Halving Countdown – 50% Less Block Reward in 4 Days appeared first on Bitcoin News.

Gold Investors Are Terrified Central Banks Might Dump Bullion During the Economic Crisis

Despite what gold bug Peter Schiff says, economists are uncertain that gold will shine during the current coronavirus crisis. While gold and other precious metals have seen decent gains in the last few weeks, a few investors are terrified that central banks will use their flight-to-safety assets in order to save their economies. Data shows that the U.S. owns the biggest stockpile of gold reserves and the Federal Reserve could very well unload the bullion in times of extreme financial stress.

Also read: Homeowners Can’t Pay: US Lenders Prepare for Catastrophic Real Estate Market

Central Banks Might Need to Sell Gold, Which Could Crush the Price Long-Term

Just like digital assets like bitcoin, investors are curious about gold and whether or not the metal will rise much higher during the financial meltdown. For over a millennia, gold has been considered a safe-haven asset and the yellow metal is far more scarce than the unlimited fiat central banks create regularly. Despite the scarcity, economists understand that central banks are the largest holders of gold and there’s a great possibility they could dump on the market at any time. In 2019, central banks worldwide purchased the most tonnage of gold in more than 50 years.

Interestingly, in the midst of the coronavirus outbreak, Russia’s central bank surprisingly stopped buying gold and gave no official reason. Russia was not the only country to curb gold purchasing as Kazakhstan, and Uzbekistan brought gold purchases to a grinding halt. Speculators assume central banks are simply using gold for its flight-to-safety purpose and they will have to sell the bullion when economies get crushed.

Gold Investors Are Terrified Central Banks Might Dump Bullion During the Economic Crisis

Statistics show that the U.S. is the largest holder of gold reserves with 8,965 tons to-date. This is followed by Germany (3,709t), the International Monetary Fund (3,101t), Italy (2,702t), France (2,684t), Russia (2,504t), China (2,159t), Switzerland (1,146t), Japan (842t), India (686t), Netherlands (674t), and the European Union (556t).

Gold Investors Are Terrified Central Banks Might Dump Bullion During the Economic Crisis

Financial columnist David Fickling explains in a recent editorial that investors should not “expect a crisis to be good for gold.” “It might be argued that the current crisis is precisely the sort of emergency that proves the enduring value of gold for a central bank, as an asset with no counterparty risk that can be sold in an exchange for any currency if things get tight,” Fickling wrote on April 1. Fickling continued:

It’s worth reflecting that the surging price of gold is increasing the share of bullion in most central banks’ reserves right now, in some cases to the point where they need to think about selling.

Gold Investors Are Terrified Central Banks Might Dump Bullion During the Economic Crisis

Retail Investors Forced to Pay Higher Premiums for Small Bars and Coins

Further, even though investors might want to get some gold to hold onto as a safe haven asset, financial news outlets are reporting on gold dealers explaining there are “big shortages of small bars and coins.” Small bars and coins are popular among retail consumers and people looking to grab some are paying “well above the per-ounce prices being quoted on financial markets.”

“People want to buy, not to sell gold,” detailed Mark O’Byrne, the founder of the firm Goldcore. “We have a buyers’ waiting list and we emailed our clients seeing who wished to sell their gold. At this time there are roughly only one or two sellers for every 99 buyers,” O’Byrne added.

Gold Investors Are Terrified Central Banks Might Dump Bullion During the Economic Crisis

In fact, retail premiums for gold “have exploded,” remarked Markus Krall, CEO of Degussa, a German-based precious metals dealer for retail investors. Krall said that the price of bullion at certain shops can be 10-15% above spot prices. Furthermore, Ronan Manly, an analyst at Singapore dealer Bullionstar told the press that Kilobars distributed by Argor-Heraeus SA are selling for 6% above spot. Even though there’s a shortage of small bars and coins, gold bugs like Peter Schiff still think that the yellow metal will surely skyrocket in the near future. Thanks to the stimulus plans across the world, gold proponents have always said that gold will be the best store of value. Many other gold proponents agree with Schiff and Bob Haberkorn, senior commodities broker with RJO Futures feels the same way.

“With all of the stimulus money, interest rates at zero, loss of jobs and multiple battles on the economic front, I can’t see how gold is not higher next week,” Haberkorn told Kitco on Thursday.

The Benefits of Bitcoin: Portable, Harder to Confiscate, and a Superior Rate of Issuance

While analysts and wealth managers ponder if gold will be a safe haven asset during the current crisis many believe digital assets like bitcoin will be king. There are various reasons why bitcoiners think crypto is better than gold and one of the biggest is the fact that bitcoin is much harder to confiscate. Gold investors are often reminded of when the U.S. stole everyone’s gold in the 1930s, back when President Franklin D. Roosevelt (FDR) outlawed the yellow metal. Bitcoin is far more portable than gold, as traveling with the metal could weigh hundreds of pounds, which often leads to storing it with a third party.

Gold Investors Are Terrified Central Banks Might Dump Bullion During the Economic Crisis
Bitcoin.com has numerous resources available for anyone to get started learning about and using cryptocurrencies like BCH, BTC, and ETH. Our comprehensive website has a local peer-to-peer marketplace, an exchange, a fantastic gaming platform, a mining pool, cloud contracts and so much more. Check out our guides, resources, and services today.

Additionally, bitcoiners are more confident in the BTC supply and there’s no central banks to dump on the market. Moreover, BTC’s rate of issuance continues to outshine gold as 3,300 tons of new gold or $200 billion is mined every year. There’s a myriad of reasons why bitcoin and cryptocurrency assets are built for economic calamities such as the one we are experiencing today. If you are interested in learning more about bitcoin then check out our guides and educational resources today.

What do you think about gold during the economic crisis? Let us know in the comments below.

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Homeowners Can’t Pay: US Lenders Prepare for Catastrophic Real Estate Market

Homeowners Can't Pay: US Lenders Prepare for Catastrophic Real Estate Market

The coronavirus has managed to seep into every facet of the global economy and it seems nothing will escape its financial wrath. During the last two weeks as unemployment levels have skyrocketed in the U.S.; analysts, economists, and wealth managers have been warning about another subprime mortgage crisis. Most of these observers believe there’s no doubt the real estate market will collapse again, as economists understand that the loss of jobs, wages, and severe reduction of business activity has devastated the American economy.

Also read: US Real Estate in Jeopardy – Analysts Predict Housing Market Crash to 29-Year Lows

Real Estate Industry Will Suffer from Unemployed Homeowners Who Can’t Pay Loans and Renters Who Can’t Pay Landlords

There are a number of individuals and organizations that predict the covid-19 economy will destroy the American housing market and it might be far worse than the 2008 subprime mortgage crisis. One of the biggest reasons people think that the real estate economy is about to be hit hard is because of the number of U.S. citizens that are unemployed right now. This has caused mortgage borrowers to stop paying loans due to not having funds. Debtors who are landlords are suffering too, as renters cannot come up with the money to pay monthly rent expenses because they are out of work. At the time of publication, estimates note that roughly 40% of New York tenants may not be able to pay their rent this month which in turn hurts the landlord paying the mortgage.

Homeowners Can't Pay: US Lenders Prepare for Catastrophic Real Estate Market
Many economists think the housing market could sink in the near future because of restrictive measures like social distancing and the economy shut down. U.S. unemployment spiked considerably by 6.6 million in one week and over 3 million the week prior. Because homeowners can’t pay their loans and renters cannot pay landlords, economists envision a massive subprime mortgage crisis that will be more devastating than the last.

Estimates from Moody’s Analytics chief economist Mark Zandi note that 30% of Americans with mortgages might not be able to pay their loans. Zandi says that figure is around 15 million American households and it could grow worse if the economy is shut down through the summer months. Property owners and renters are concerned about the unpredictable economy and a great majority of earners are seeing a smaller paycheck thanks to fewer shifts, hours, and layoffs across the board.

Homeowners Can't Pay: US Lenders Prepare for Catastrophic Real Estate Market

The U.S. government’s safety nets are not working and the ones that are available only cover a fraction of homeowners. Many Americans are upset because government-backed home loans through the FHA, Freddie Mac, Fannie Mae, and the VA are allowing deferred payments for mortgages. In some instances, these lenders are allowing up to a year of deferred payments. But government-backed loans only cover 60% of the nation and the 40% leftover have traditional real estate loans with banks.

The Airbnb Bubble: Some Airbnb Super Hosts Have 10+ Mortgages

Similarly, property owners who rent might not get monthly payments for a very long time. As individuals in the U.S. are finding themselves out of work, they can’t pay the rent to their landlords. Some renters and politicians in various states are calling for an emergency rent freeze and eviction moratorium until the covid-19 threat is behind us.

Homeowners Can't Pay: US Lenders Prepare for Catastrophic Real Estate Market
Some speculators are concerned that the Airbnb market will cause a negative domino effect on the housing industry. While the coronavirus is causing people to stop renting from Airbnb hosts it will crush Airbnb ‘super hosts’ who have upwards of ten mortgages.

Landlords with mortgages could be crushed as the Rental Housing Finance Survey (RHFS) estimates there are more than 22.5 million rental properties nationwide. Some economists think that super hosts from Airbnb could cause the housing market to buckle as well, thanks to the unwinding Airbnb rental economy. Mega or ‘super hosts’ are Airbnb landlords who mortgaged multiple homes in order to profit on the platform’s rental market.

“Watch the real estate market, my neighbor is an Airbnb super host,” tweeted Spencer Noon. She is on forums with other hosts [and] many of them have 10+ mortgages. 0 guests are booking their properties [and] they are running out of cash.”

Homeowners Can't Pay: US Lenders Prepare for Catastrophic Real Estate Market

From Predicting a ‘Booming Spring Real Estate Market’ to a ‘Catastrophic Buying Season’

Even small banks and real estate lenders are being told by the government they have no idea how long the industry shut down will last. “Nobody has any sense of how long this might last,” explained Andrew Jakabovics, an executive from Enterprise Community Partners, a nonprofit affordable housing group. “The forbearance program allows everybody to press pause on their current circumstances and take a deep breath. Then we can look at what the world might look like in six or 12 months from now and plan for that.”

Homeowners Can't Pay: US Lenders Prepare for Catastrophic Real Estate Market
Unemployment rates continue to soar. If people can’t work, then they can’t afford rent and homeowners can’t afford to pay mortgage loans either.

On March 21, news.Bitcoin.com reported on how Lendingtree’s chief economist Tendayi Kapfidze predicted a complete “shutdown in the housing market.” Today, Kapfidze says with the government in “bailout everyone mode,” they probably will try to stop mass foreclosures. “I expect policymakers to do whatever they can to hold the line on a financial crisis,” Kapfidze told the press. “And that means preventing foreclosures by any means necessary,” he added.

In addition to the looming subprime mortgage crisis, office, retail, industrial, and multi-family homeowners invested a lot of upfront funds expecting a good season in the spring. “If the pandemic has taught us anything, it’s how quickly everything can change. Just weeks ago, mortgage lenders were predicting the biggest spring in years for home sales and mortgage refinances,” Bloomberg’s recent real estate coverage explains. Meanwhile, on April 2nd, financial publications wrote: “Real estate spring buying season could be catastrophic.”

Even the President Is Looking for a Loan Deferral

Throughout the covid-19 economy, wealth managers and economists are curious about which safe-haven asset will society be confident in during the financial meltdown. While many predict precious metals will be the avenue, history shows that during the 2007-2008 subprime mortgage crisis bullion markets were manipulated by central banks.

Reports highlight that Donald Trump’s company has asked Trump’s biggest lender, Deutsche Bank, for some leniency toward repaying some of his loans. “These days everybody is working together,” explained Eric Trump, the U.S. president’s son, and executive of the family business. “Tenants are working with landlords, landlords are working with banks. The whole world is working together as we fight through this pandemic.”

The current black swan event, covid-19 may call for a black swan asset like bitcoin because it’s not manipulated as easily as real estate property and precious metals. Traditionally investing in real estate outperforms a myriad of other investment assets, but cryptocurrencies have outshined property investment by a longshot. In fact, in contrast to real estate investment which gained 70-100% in ten years, BTC gained 8.9 million percent over the last decade.

Moreover, analysts can clearly see that office, retail, industrial, and multi-family investors will take a big hit from the covid-19 economy. Even U.S. President Donald Trump is having issues coming up with funds to pay for his Florida properties and his administration asked Deutsche Bank and Palm Beach County to give him leniency.

What do you think about the real estate industry’s hardships in the near future? Let us know what you think in the comments below.

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Cointext Cofounder Unveils BFP Encrypt – Send Encrypted Data to Bitcoin Cash Addresses

Cointext Cofounder Unveils BFP Encrypt - Send Encrypted Data to Bitcoin Cash Addresses

Vin Armani, the cofounder of Cointext, has announced the launch of a Javascript library that allows people to send encrypted data to addresses on the Bitcoin Cash (BCH) network. A BCH private key can decrypt the data, and when Armani released the Javascript package, the developer stressed that he felt “a sense of urgency” to get this tool into the hands of the public.

Also read: Tiger King’s Archnemesis Big Cat Rescue Accepts Bitcoin

BFP Encrypt

We currently live in a world with overreaching governments and the covid-19 crisis has exemplified the greed and manipulation. Agents of the state have been invading our privacy for years now and they have found ways to monitor people online and eavesdrop on our private activities. However, encryption has been a problem for governments, as it gives an individual or organization the ability to change data in a way that is completely unreadable and only certain people with special knowledge or a key can read the information. Encryption is important because it can protect someone’s data not only from spying governments but also from any malicious person attempting to monitor people’s private affairs.

Cointext Cofounder Unveils BFP Encrypt - Send Encrypted Data to Bitcoin Cash Addresses

Vin Armani of Cointext and Counter Markets has been a believer in freedom and privacy for a while now; he recently Armani published a new Javascript library that helps promote confidentiality. “Today I’ve published a Javascript library that makes it very easy to send encrypted data (text messages, files, etc) to addresses on the Bitcoin Cash network,” Armani tweeted. “The holder of the private key for that address can use it to download and decrypt the data.” The developer added:

I feel a sense of urgency to get these types of tools out there — This leverages the Bitcoin Files Protocol and library developed by James Cramer, so big shout out to him.

Cointext Cofounder Unveils BFP Encrypt - Send Encrypted Data to Bitcoin Cash Addresses

Encrypted Message Sending and Receiving Examples

Armani’s tool can be found on Github under the name “BFP Encrypt.” The tool’s description notes that the program leverages the BCH chain and the Bitcoin Files Protocol (BFP). Further, Armani’s tool uses Elliptic Curve Integrated Encryption Scheme (ECIES) and the specifications say it’s compatible with the following Javascript libraries: eccrypto, eccrypto-js, and bitcore-ecies (Jeton fork). BCH proponents on social media and forums favored the new privacy-enhancing tool the Cointext cofounder released. “This is really cool,” tweeted the engineer Tobias Ruck. “Thought about embedding some chat stuff in be.cash, tending towards signal protocol though.”

Cointext Cofounder Unveils BFP Encrypt - Send Encrypted Data to Bitcoin Cash Addresses

“So we can start to build an anonymous social network on Bitcoin Cash?” BCH fan Egon asked on the Reddit forum r/btc. BFP Encrypt’s specs also show examples of a “message send” and a “message receive,” which describe how someone can send text “from one address (sender WIF) to the P2PKH address associated with the recipient’s public key.” The last example shows how to download and decrypt the message that was sent to a recipient’s address.

What do you think about Vin Armani’s BFP Encrypt? Let us know in the comments below.

The post Cointext Cofounder Unveils BFP Encrypt – Send Encrypted Data to Bitcoin Cash Addresses appeared first on Bitcoin News.

Merchant Services, Gambling, and Darknets: Coronavirus Economy Stunts Cryptocurrency Spending

Merchant Services, Gambling, and Darknets: Coronavirus Economy Stunts Cryptocurrency Spending

A lot has changed since the coronavirus pandemic swept the globe as it has caused a wide range of negative effects on the world’s economy. On March 30, the blockchain surveillance firm Chainalysis published a report that shows how the cryptoconomy is faring from merchant acceptance to gambling, and darknet purchases as well. The researcher’s study highlights that the covid-19 environment has “brought about a significant change” by impacting crypto-based spending habits.

Also read: Tiger King’s Archnemesis Big Cat Rescue Accepts Bitcoin

Covid-19 Effects on the Global Economy Caused a Dip in Bitcoin Spending

On Monday, the blockchain forensics company Chainalysis published a research report that shows the correlation between bitcoin’s price and spending BTC with merchant services, gambling sites, and darknet markets. Statistics from Chainalysis shows that all three spending types “dropped significantly since March 9.” Covid-19 has had an adverse effect on crypto spending and even though the spending habits declined it was in a way that Chainalysis researchers did not expect. The firm says that it is understandable that during an economic crisis, spending usually drops but the company has found that the price of bitcoin is “correlated with daily Bitcoin receiving activity for the services we’re analyzing.”

“Meaning, the amount of bitcoin customers send to those service types in a given day — both before and after covid-19 reached North America,” the Chainalysis report adds. “The level of correlation has changed for each of the service types we’re looking at. For darknet markets, revenue has become more correlated with bitcoin’s price, meaning darknet markets have seen unexpectedly steep revenue declines since bitcoin’s price began to drop.”

The Chainalysis report added:

This is especially interesting considering darknet markets’ revenue previously had a small but significant inverse correlation with Bitcoin’s price, meaning we would have expected darknet markets to have slightly higher sales after the price drop. Merchant services and gambling providers, on the other hand, have seen their revenue to Bitcoin price correlation drop, meaning they’ve proven more resilient and seen less of a revenue decrease than expected.

Gambling Downtrend Unrelated to Price While Darknet Markets Reacted to Bitcoin’s Price Like Never Before

The Chainalysis researchers remark that even though merchant services purchasing dropped, the correlation between spending with merchants fell by 50%. Chainalysis also found that the downward trend in gambling activity appears unrelated to the bitcoin price drop.

Did you know you could win big with Bitcoin gambling? Choose from a range of BCH games including BCH poker, BCH slots, and many more. All games are provably fair—good luck!

“After all, wouldn’t regular users gamble more if they’re shut in their houses all day?” the company’s blog post asks. “That doesn’t appear to be the case thus far though.” The most interesting part of the Chainalysis report is the statistics concerning darknet market (DNM) sales. According to the blockchain surveillance company, DNMs reacted to the price of BTC like “never before.”

“The effects of the covid-19 price drop on darknet markets are especially interesting. Historically, darknet markets’ revenue has had a weak inverse correlation with Bitcoin’s price,” Chainalysis wrote. “Perhaps darknet market customers aren’t buying as many drugs given the public health crisis. It’s also possible that vendors slowed down sales during the price drop, out of fear that the Bitcoin they accept one day could be worthless the next,” the study further said.

Chainalysis concludes by saying that the usage patterns were not normal and it was definitely caused by a black swan event. “The question for cryptocurrency businesses is whether or not they’ll be able to return to their previous transaction levels and if their customers’ usage patterns will return to normal as both bitcoin and the economy itself recover,” the report concedes.

What do you think about how covid-19 has effected crypto spending? Let us know in the comments below.

The post Merchant Services, Gambling, and Darknets: Coronavirus Economy Stunts Cryptocurrency Spending appeared first on Bitcoin News.

Anyhedge to Launch Blockchain-Enforced Synthetic Derivatives for Bitcoin Cash

Anyhedge to Launch Blockchain-Enforced Synthetic Derivatives for Bitcoin Cash

Developers from the organization General Protocols have announced the launch of a synthetic derivatives platform built on Bitcoin Cash. The project Anyhedge aims to be the first decentralized finance (defi) protocol on any branch of Bitcoin and the platform will launch in cooperation with Cryptophyl’s new non-custodial exchange, Detoken.

Also read: Film Reels and Steel: Github Plans to Archive Bitcoin Code for 1,000 Years

Decentralized Finance on Bitcoin Cash

Bitcoin Cash fans were recently introduced to a decentralized hedge solution against arbitrary assets on the BCH network. Similar to other defi concepts, Anyhedge aims to “mitigate volatility through trading of risk in a peer-to-peer, non-custodial, blockchain enforced, fully collateralized way.” The creators of Anyhedge include well known BCH developers such as John Nieri (emergent_reasons), Jonathan Silverblood, Eric Teng, and Imaginary_username.

Anyhedge to Launch Blockchain-Enforced Synthetic Derivatives for Bitcoin Cash

“We believe that Bitcoin Cash and all crypto has a volatility problem that holds back adoption,” the Anyhedge devs wrote on the read.cash blog. “Anyhedge is a trustless (except for a price oracle), synthetic derivative that we created to mitigate the stability problem using the incentives of speculation.” The white paper states:

An Anyhedge contract involves at the minimum three parties: Hedge, Short, and Oracle. Only Hedge and Short have coins [BCH] involved while Oracle does not need to be aware of the contract at all. It operates much like a subset of traditional futures and forward contracts. […] In essence, Hedge gains a peg on the external asset for their coins, while Short amplifies the risk and reward for theirs.

Further, the Anyhedge programmers say that in addition to curbing volatility, the project can bring a lot of economic activity to the BCH chain. The engineer’s announcement post notes that it can allow people to leverage BCH without leaving the network and also increases the value proposition by adding counterparty positions. Onchain economic activity takes place because the platform uses onchain contracts for mitigation. “With trust reduced to a blind oracle, the futures contract offers a unique set of advantages and disadvantages over existing stability solutions,” the Anyhedge white paper details.

Anyhedge to Launch Blockchain-Enforced Synthetic Derivatives for Bitcoin Cash

Anyhedge Tools Will be Released Soon

When the developers have the software polished, the platform will be released in an open source manner and with libraries. The information will be helpful to exchanges and over-the-counter (OTC) crypto desks who are interested in leveraging the derivative.

“General Protocols earns revenue by providing an easy API to all of those parties, especially exchanges and OTC desks,” the software devs underline. “The API handles all the complexity around creating, monitoring and upgrading contracts with no need for new infrastructure or knowledge. A small fee is trustlessly included in every contract made with the API.”

Anyhedge to Launch Blockchain-Enforced Synthetic Derivatives for Bitcoin Cash

The Bitcoin Cash community welcomed the Anyhedge project on social media and forums like r/btc. “I’m really excited about this and can’t wait to see what other markets get introduced,” one person wrote in response to the Anyhedge announcement. “Going to read through the whitepaper now,” the individual added.

Anyhedge developers have also explained that the platform will be available for testing soon and there’s plenty of material available for people to read up on the subject until then. “Tools for everyone to play with will be released soon, probably after everything is released with Cryptophyl and Detoken,” the Anyhedge team concluded.

What do you think about the BCH project Anyhedge? Let us know in the comments below.

The post Anyhedge to Launch Blockchain-Enforced Synthetic Derivatives for Bitcoin Cash appeared first on Bitcoin News.

Tiger King’s Archnemesis Big Cat Rescue Accepts Bitcoin

Tiger King's Archnemesis Big Cat Rescue Accepts Bitcoin

The number one show on Netflix in the U.S. right now is a television series called “Tiger King: Murder, Mayhem and Madness,” and American audiences are eating it up like candy. While the docuseries costar Joseph Maldonado, aka “Joe Exotic,” spends 22 years behind bars, costar Carole Baskin is still the owner of the Big Cat Rescue sanctuary. In fact, the controversial Baskin and her Tampa-based zoo, Big Cat Rescue, accept cryptocurrencies for donations. People can donate digital currencies like BTC, BCH, and ETH to help prevent the trend of big cats kept in captivity.

Also read: Film Reels and Steel: Github Plans to Archive Bitcoin Code for 1,000 Years

Tiger King Story Goes Viral

During the last few weeks, the Netflix docuseries “Tiger King” has been extremely popular in the U.S. and is the number one streaming television broadcast in the country. The story takes place in various states across the U.S. and covers a number of people who own, breed, and sell big cats like Bengal tigers, leopards, and lions. The show mainly features two people who have an extreme hatred for each other, the former GW Zoo owner Joe Exotic and the Big Cat Rescue owner Carole Baskin.

Tiger King's Archnemesis Big Cat Rescue Accepts Bitcoin
Big Cat Rescue owner Carole Baskin (Left) and former GW Zoo owner Joe Exotic, aka Tiger King.

Throughout the myriad of episodes, the audience finds out that the owner of Big Cat Rescue was once a big cat breeder who allegedly changed her ways to stop the captivity and the sale of large cats. For years, her archnemesis was the eccentric Joe Exotic who owned 1,200 big cats at his ranch in Wynnewood, Oklahoma. Moreover, Baskin was accused of feeding her husband to the tigers and inheriting all of her missing husband’s assets. Baskin was able to use this money to battle Joe Exotic in court and managed to liquidate all of his assets. Of course, viewers find out that Exotic spent an enormous amount of time and energy trying to prove that Baskin had indeed inherited her husband’s assets in an evil manner.

Tiger King's Archnemesis Big Cat Rescue Accepts Bitcoin

Eventually, Exotic was arrested and charged with an alleged murder-for-hire plot against Baskin and was sentenced to 22 years in prison. Lots of people actually think Exotic was the individual in the right during the fiasco and that Baskin covered up some things about the story. Her late husband’s children told the press that she managed to get a majority of his assets while his offspring only got 10%. Even the Grammy-winning rapper Cardi B tweeted about starting a Gofundme account to get him out of jail.

Leveraging Donations, Social Media, and Bitcoin

What’s interesting about Baskin and Exotic’s story is that they both leveraged donations from the internet and lots of traffic from social media to help fund their goals. Joe Exotic, aka Tiger King, is not funding his projects and reality show anymore due to his incarceration. Carole Baskin, on the other hand, is still relying on donations from the online community even though she has an estimated inheritance of $30-50 million in assets. In fact, Baskin and Big Cat Rescue have leveraged cryptocurrencies to help with funding for quite some time. Currently, the Tampa, Florida-based Big Cat Rescue accepts BTC, BCH, ETH and other digital assets via Bitpay.

Tiger King's Archnemesis Big Cat Rescue Accepts Bitcoin
The Tampa-based Big Cat Rescue has been accepting digital currencies for quite some time. Although after watching the docuseries, bitcoiners may not want to donate. Nonetheless, they can contribute via Bitpay and the nonprofit accepts cryptos like BTC, ETH, and BCH.

Even though Big Cat Rescue accepts digital currencies people may not be inclined to donate to Baskin’s cause after watching Tiger King. Bitcoiners may find that the docuseries sheds light on Big Cat Rescue’s agenda and they might even inform other crypto advocates not to donate to their cause. Although, despite the film’s depictions, Baskin has denied the accuracy of the Netflix docuseries and wrote a 3,000-word blog post disputing the show’s alleged facts.

What do you think about the Big Cat Rescue facility accepting cryptocurrencies? Let us know in the comments below.

The post Tiger King’s Archnemesis Big Cat Rescue Accepts Bitcoin appeared first on Bitcoin News.

Coronavirus Fuels P2P Connectivity: Crypto-Driven Meshnet Gives Rural Towns Internet

While the coronavirus wreaks havoc on the economy across the U.S., a number of the 1,737 residents from Clatskanie, Oregon can’t obtain an internet service provider (ISP). The situation has motivated the town to adopt a decentralized meshnet ISP called Althea and the network’s users are paid in cryptocurrency for relaying.

Also read: Film Reels and Steel: Github Plans to Archive Bitcoin Code for 1,000 Years

Oregon Residents Connect to Decentralized Internet Service Powered by Crypto

The recent events unfolding worldwide has made people aware that the internet is a resourceful tool when it comes to sharing information during a pandemic. There are lots of areas worldwide with limited internet resources and internet service providers (ISPs) that can take care of people’s connectivity needs. In various rural regions in the U.S., ISPs are hard to come by and the ones that do offer services to remote areas often charge astronomical prices. Right now, as the covid-19 outbreak ravages the American economy, some residents from Clatskanie, Oregon can’t access the internet due to the lack of ISPs. The connectivity issues have caused some Clatskanie residents to start using a decentralized meshnet service. People in the town are leveraging a meshnet solution called Althea which lets routers pay each other for bandwidth.

Essentially, a mesh network (meshnet) is a local network topology that allows people to relay and share bandwidth and route data from/to other participants. If the network grows stronger, it can operate in a non-hierarchical fashion and the more cooperation the better the network will perform. Althea’s meshnet service provides people with the incentive to host decentralized ISPs in any community, rather than relying on the monopolized services provided by cable and fiber-optic providers.

Users leveraging the Althea network can earn money by collecting payments for expanding the network. Althea users can accept two cryptocurrencies at the moment, which includes DAI and ETH. The creators of the Althea network say in the future they will be adding support for other digital assets as well. In fact, digital currencies play an important role within the Althea framework as the white paper states:

Althea allows routers to pay each other for bandwidth using cryptocurrency. An important architectural detail is that nodes only pay neighbors for forwarding packets. On top of this pay-for-forward network, we build a system allowing consumers to pay for internet access. Althea is intended to be used in local mesh networks.

The Tacoma Cooperative Network and Clatskanie Co-op

Clatskanie, Oregon residents are not the only ones using the Althea system in the U.S., as citizens from Tacoma, Washington also use the Althea network. For instance, the Tacoma Cooperative Network (TCN) had shown a resident named David how to set up Althea, as he was only getting an 8Mbps internet connection. With high-speed 600ghz antennas, Althea users can get up to 200-400 Mbps. David then signed up 6 of the 12 houses on his block, who now share bandwidth with him over Althea’s network. According to Althea, TCN is an Althea organizer that helps residents get connected to the decentralized meshnet system.

A registered nurse from Clatskanie, Shannon Garcia was forced to work at home recently due to the adverse effects of the coronavirus. However, the small cattle ranch town has always had issues with ISPs and she needed internet access to talk with her patients via video calls. Garcia got Althea to start setting up shop in Clatskanie and she and other residents in the town have been able to get online since then. In addition to Oregon and Washington, Althea is also located in Denver, Colorado, and Nigeria as well. The Althea team plans on expanding to other countries like Ghana and a few other states in the U.S.

The Althea network is not the only project that has attempted to fuse the concept of mesh networks and cryptocurrencies together. Projects like Bitcoinwifi, Bitmesh, and BEWP have all tried to leverage cryptocurrencies as an incentive to share bandwidth. The covid-19 economy has kick-started the Althea network into high gear in Clatskanie. This is because the town only has one fiber connection throughout the entire region, making things difficult for households to connect. Instead of paying centralized mobile networks $150 per month for internet services, the town set up a legal cooperative called the Clatskanie Co-op.

Moreover, the Althea network’s Clatskanie says that a few residents are investing thousands to set up tower equipment as a “side hustle.” The tower equipment will allow the individuals to make more money going forward by providing far more bandwidth than the average relayer.

What do you think about the Althea network? Let us know in the comments below.

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Film Reels and Steel: Github Plans to Archive Bitcoin Code for 1,000 Years

Film Reels and Steel: Github Plans to Archive Bitcoin Code for 1,000 Years

The Microsoft subsidiary, Github recently revealed the “Archive Program,” an initiative that aims to preserve open source technologies for 1,000 years. The newly launched effort plans to store snapshots of open source technology 250 meters underground on the Norwegian island of Svalbard. The source code management and collaboration platform also plans to store the Bitcoin Core software. Archivists will etch the blockchain network’s code on film reels and encase the project in a steel capsule.

Also read: US Mortgage Industry Could Collapse as Housing Crisis Looms, Experts Say

Bitcoin Codebase and Other Open Source Crypto Projects Will be Stored Underground in a Time Capsule

Github plans to store the Bitcoin Core codebase within the depths of a mountainous region located in Norway. The project is a time capsule concept and Github is calling it the Archive Program. The program’s main goal is to store a number of open source technologies underground for 1,000 years so humans can access them in the future. Github says the mission of the program is to “preserve open source software for future generations.” The announcement reads:

The company is also partnering with the Long Now Foundation, the Internet Archive, the Software Heritage Foundation, Arctic World Archive, Microsoft Research, the Bodleian Library, and Stanford Libraries to ensure the long-term preservation of the world’s open source software. We will protect this priceless knowledge by storing multiple copies, on an ongoing basis, across various data formats and locations, including a very-long-term archive designed to last at least 1,000 years.

Film Reels and Steel: Github Plans to Archive Bitcoin Code for 1,000 Years
The Archive Program will have the codebase and elements stored in the icy mountain terrain located on the Norwegian island of Svalbard. Other cryptocurrency-based codes will also be stored including Ethereum, Dogecoin, and the Lightning Network.

The Bitcoin Core repository will not be the only cryptocurrency-based repo added to Github’s time capsule initiative. A slew of other blockchain projects will be stored as well including the Ethereum and Dogecoin codebase and the Lightning Network. The company’s collaborating with Github believe in archiving software across various forms of ephemeral media and hosting platforms. The scheme is called “LOCKSS,” which stands for “Lots Of Copies Keeps Stuff Safe.” In order to ensure the safety and longevity of codebases like Bitcoin Core, the program will include “much longer-term media to address the risk of data loss over time.”

Film Reels and Steel: Github Plans to Archive Bitcoin Code for 1,000 Years
According to Github, the Bitcoin Core codebase will be etched on film reels and stored in a steel capsule. The time capsule is meant to last a 1,000 years and help stop data loss catastrophes like Roman concrete, and the Saturn V blueprints.

The Archive Program Hopes Future Historians Can Access Open Source Software Without Worrying About Lost Tech and Abandoned Code

There’s a significant history of events that show lost technologies and abandoned code can lead to catastrophe. The Archive Program aims to stop mistakes that society has seen in the past like the Saturn V blueprints, anti-malarial DFDT, and Roman concrete. “Like any backup, the GitHub Archive Program is also intended for currently unforeseeable futures as well,” the announcement highlights.

“Future historians will be able to learn about us from open source projects and metadata,” the Archive Program website reads. “They might regard our age of open source ubiquity, volunteer communities, and Moore’s Law as historically significant. We are already partnering with Stanford Libraries to help archive curated repositories along with the cultural and other context in which they are set, as key elements of wide-ranging historical and social research and analysis,” Github added.

Film Reels and Steel: Github Plans to Archive Bitcoin Code for 1,000 Years
Originally, Satoshi Nakamoto open sourced the Bitcoin codebase using the source code management and collaboration platform Sourceforge. A few years later, the codebase was moved over to Github.

After the announcement, software developers and cryptocurrency proponents discussed the topic on social media and forums. “[The Archive Program], and cockroaches, will be around long after the coronavirus kills us all,” one person jokingly tweeted. Seeing how the announcement was revealed on April 1, some people thought the news was an April Fool’s Day joke as well.

What do you think about Github storing the Bitcoin Core protocol for 1,000 years? Let us know in the comments below.

The post Film Reels and Steel: Github Plans to Archive Bitcoin Code for 1,000 Years appeared first on Bitcoin News.

The Many Facts Pointing to Wei Dai Being Satoshi

The Many Facts Pointing to Wei Dai Being Satoshi

Satoshi Nakamoto has been an enigma for well over a decade and there’s been a number of suspects and self-styled Bitcoin inventors. One particular suspect is the computer engineer Wei Dai, the creator of the b-money system and the Crypto++ cryptographic library. Since the Bitcoin network was launched in 2009, a number of people have had suspicions that Wei Dai could have played the role of Nakamoto.

Also Read: The Many Facts Pointing to Ian Grigg Being Satoshi

Wei Dai and Satoshi Nakamoto

We don’t know who is behind the real identity of the person or group of people that created Bitcoin. The anonymous creator(s) not only created one of the most robust cryptocurrencies the world has ever seen, but also managed to keep the identity of Bitcoin’s creator a secret for more than 11 years. In our fifth installment of the “Many Facts” series, we discussed how Dorian Nakamoto was accused of being the anonymous Bitcoin creator in 2014. The following is the sixth installment with a comprehensive look at the circumstantial evidence that might point to Wei Dai being Satoshi. Dai is a well known cypherpunk and he is referenced in the citations section at the end of the Bitcoin white paper. Over the last decade, a number of speculators have assumed Dai might be the cryptocurrency’s creator and a few armchair sleuths have tried to tie the two together as one.

The Many Facts Pointing to Wei Dai Being Satoshi
Wei Dai (戴维) is a world-renowned cryptographer but has always kept an extremely low profile. Dai is the creator of the cryptographic algorithm schemes for the programming language C++ and still maintains Crypto++ to this day. Dai also wrote about a money system that is similar to bitcoin and Satoshi Nakamoto credited Dai’s b-money in the white paper.

One reason people think that Dai played the Nakamoto part, is because the talented cryptographer has the smarts to pull it off. Moreover, Dai created a C++ library for cryptographic functions called Crypto++ and he’s still a member of the academic and cypherpunk community. Dai is also a staunch supporter of privacy and the New York Times described the cryptographer as an “intensely private computer engineer.” Dai’s theories about anonymous electronic cash infrastructure can also be found on the cypherpunks mailing list well before Bitcoin was released. The cryptographer also crafted an electronic money system called “b-money” and it is the reason he is referenced in the Bitcoin white paper. In addition to his white paper reference, Dai and Nakamoto also exchanged a few emails in 2008, according to documents hosted on gwern.net.

Gwern.net hosts a few emails sent to Dai in 2008 that were originally published in a Sunday Times article in 2014. In the email pictured above, Satoshi explains that he’s finished the first version of the Bitcoin protocol.

B-money is an interesting system and Dai explained in 1998 that Tim May’s crypto-anarchy “fascinated” him. “Unlike the communities traditionally associated with the word ‘anarchy,’ in a crypto-anarchy the government is not temporarily destroyed but permanently forbidden and permanently unnecessary,” Dai wrote in the first section of the b-money white paper. “It’s a community where the threat of violence is impotent because violence is impossible, and violence is impossible because its participants cannot be linked to their true names or physical locations,” the computer engineer added.

An excerpt from Wei Dai’s “b-money” system.

Expanding Ideas

Dai was already a well-established character well before Satoshi allegedly emailed him in order to discuss peer-to-peer electronic cash concepts. In the 2008 emails, the two discuss Nick Szabo and Dai assumes that the conversations prove Szabo could not be Nakamoto. The emails between Nakamoto and Dai were originally published in March 2014’s Sunday Times editorial. “The more important reason for me thinking Nick isn’t Satoshi, is the parts of Satoshi’s emails to me that are quoted in the Sunday Times,” Dai wrote. On August 22, 2008, Satoshi Nakamoto wrote to Dai and said:

I was very interested to read your b-money page. I’m getting ready to release a paper that expands on your ideas into a complete working system.

An excerpt from Wei Dai’s “b-money” system.

Further, the entropy similarities between Wei Dai and Satoshi Nakamoto’s written text also adds to the list of supporting evidence that Dai could be the mysterious creator. The only person who scored higher than Dai was former Bitcoin Core developer Gavin Andresen. Craig Wright, the self-proclaimed Satoshi who has yet to prove himself, has 12 people above him after Dai.

Some speculators hunting for Satoshi Nakamoto believe that the creator of Bitcoin could have easily played two roles with any one of his correspondents. Just because Wei Dai and Nakamoto have had conversations it doesn’t mean people haven’t assumed they are the same person. Other people who had engaged with Nakamoto who have been considered ‘Satoshi suspects’ as well include Hal Finney, Nick Szabo, James Donald, Gavin Andresen, and others.

Other than mere circumstances and coincidence, there’s really not a smoking gun pointing to Dai actually being Nakamoto and he’s never admitted it either. Theories of Dai being Nakamoto are also dismissed because Dai and Nakamoto engaged in email conversations and he’s referenced in the white paper, so he would have to be playing ‘double agent’ roles. But that hasn’t stopped speculators in the crypto community who believe people like James Donald and Hal Finney could have been Nakamoto too and played double roles.

Do you think Wei Dai could be Satoshi? Let us know in the comments below.

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Financial Bazookas Revealed – Market Strategists Believe the Fed Will Purchase Stocks Soon

Bitcoin and cryptocurrencies may be the only free-market assets left not manipulated by central banks like the U.S. Federal Reserve. Since the covid-19 outbreak, the Fed has unleashed a massive arsenal of monetary weapons to combat the effects on the economy. After the significant rate cuts, quantitative easing (QE), and buying mortgage-backed securities, analysts believe the Fed could start purchasing stocks in order to quell the economy.

Also read: US Mortgage Industry Could Collapse as Housing Crisis Looms, Experts Say

The Fed Is Deploying More Than Just a Monetary Policy Bazooka, It’s Unleashing the Whole Arsenal

On Tuesday, the U.S. Federal Reserve threw another tool into the financial system by announcing an international repo option in order to curb investors from panic-selling Treasuries. Since the covid-19 outbreak started spreading rapidly throughout the nation, the economy has been hit hard by numerous industry shutdowns across the U.S. After closing borders and shutting down major U.S. industries, the Fed has tried to save the American economy by using a variety of monetary schemes. The Fed has introduced rate cuts, quantitative easing (QE), foreign currency swap lines, discount windows, a Commercial Paper Funding Facility (CPFF), a Term Asset-Backed Securities Loan Facility (TALF), and a Secondary Market Corporate Credit Facility (SMCCF). The aforementioned list just scratches the surface when it comes to the newly introduced schemes the Fed has initiated since the covid-19 outbreak.

Fed Chair Jerome Powell and the bank’s board of directors have unleashed the big guns citing the covid-19 outbreak as the primary reason to throw unlimited amounts of money at private banks. The Federal Reserve said on March 26 that the central bank recognizes that small financial institutions may need additional time to submit “certain regulatory reports in light of staffing priorities and disruptions caused by the Coronavirus Disease 2019 (covid-19).” In order to give Wall Street some leniency, the Fed “will not take action against a financial institution with $5 billion or less in total assets for submitting its March 31, 2020.”

The Fed also invoked a Money Market Mutual Fund Liquidity Facility (MMFLF) and bought $185 billion in mortgage-backed securities. However, all these moves have not helped stock and commodity markets and the mortgage-backed securities purchase threatened the U.S. real estate market. After the Fed bought the mortgage securities it caused a massive margin call and put hundreds of lenders at risk and without capital.

Despite the adverse effects on the housing market, the Fed is still attempting to insulate the American economy with the central bank’s parlor tricks. The Fed’s new international repo is an unprecedented move by the central bank, as it will provide foreign central banks with the ability to get USD in exchange for U.S. Treasuries. In addition to the international repo, the Fed also revealed it established a temporary FIMA Repo Facility (FRF) to “help support the smooth functioning of financial markets.”

The Fed’s Next Step Could Be Purchasing Large Quantities of Stocks

Now economists and investors think the Fed’s next move will see the central bank purchasing stocks. Because the American economy is in turmoil, market analysts say that the Fed will likely use this approach soon to bolster the financial system. “If there were any major dislocations, it is clear that they will go into whatever nook and cranny in the market that starts to choke,” chief market strategist at Prudential Financial, Quincy Krosby, told the media on Sunday. The Prudential executive further stated:

We know that when you have choking in one part of the market, you have choking in another part of the market that leads to dislocation. As soon as you cross that line, you are now facing something else that you could conceivably buy.

Members of the Federal Reserve and the Shadow Open Market Committee have already discussed the possibility of the Fed buying stocks to help the economy. Boston Fed President Eric Rosengren told the committee on March 6 that he thinks the U.S. should “allow the central bank to purchase a broader range of securities or assets.”

Financial Bazookas Revealed - Market Strategists Believe the Fed Will Purchase Stocks Soon

The Perfect Storm for Digital Assets Like Bitcoin

Cryptocurrency participants believe that the current economy is the “perfect storm” for censorship-resistant and a mathematically probable financial system. Bitcoin has a lot of benefits to a society that has been having significant problems doing what they want with their own money. In the last six months alone, news.Bitcoin.com has reported on governments and banks in countries like the U.S., Egypt, Lebanon, India, and Germany limiting cash withdrawals. Cryptocurrencies like bitcoin have better properties than gold during an economic crisis, as analysts have questioned gold’s alleged ‘safe-haven’ status since the 2007-2008 financial catastrophe. It’s a well known that central banks oversaturated bullion markets during those years by using bullion-bank repos just like they do with Treasuries today.

Cryptocurrency markets did decline with everything else under the sun on March 12th, otherwise known as ‘Black Thursday.’ The decline has made people assume that BTC and other digital assets have a strong correlation with stocks and equities right now. However, historical data shows digital asset markets have always been non-correlated with stocks, commodities, and equities. A higher correlation during a black swan event (covid-19) doesn’t equate to both markets being tethered together whenever economic environments change.

As the Fed and central banks worldwide pull out every tool they have in the monetary policy toolbox, bitcoiners understand that digital assets cannot be manipulated as easily as fiat currency, property investments, precious metals, and the stock markets. If you have never read or heard about the positive benefits and economic freedom bitcoin can provide, get started today with some of our educational resources.

What do you think about the Fed possibly buying stocks next? Let us know what you think in the comments below.

 

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Bitcoin Halving Capitulation: ‘Mining Death Spirals Don’t Happen in Real Life,’ Says Report

Bitcoin Halving Capitulation: 'Mining Death Spirals’ Don't Happen in Real Life,' Says Report

As the bitcoin halving approaches, crypto-mining ‘death spirals’ and miner capitulation have become prominent topics among digital currency enthusiasts. Despite the trending discussions, Coinshares head of research Christopher Bendiksen published a study that says “[bitcoin] mining death spirals do not actually happen in real life” and the speculation is a “highly theoretical edge case.”

Also read: ‘Bull Run May Not Come Immediately After Bitcoin Halving,’ Says Bitmain’s Jihan Wu

Bitcoin Halving, Death Spirals, and Miner Capitulation

After approximately 210,000 blocks are mined on BTC’s blockchain, the network’s block subsidy halves and after May 13, BTC miners will get 6.25 coins instead of 12.5. The halving event happens roughly every four years and the upcoming one, in particular, has caused crypto enthusiasts to speculate on what will happen after the event. Moreover, the recent covid-19 outbreak has caused economic calamity worldwide, as cryptocurrency prices were largely affected by fears of a looming recession.

Bitcoin Halving Capitulation: 'Mining Death Spirals Don't Happen in Real Life,' Says Report

Because of these two factors combined, crypto speculators and haters think that miners will be “doomed” after the halving and there will be massive miner capitulation. A few individuals and headlines have called the theoretical event a crypto-mining ‘death spiral’ and people assume BTC miners will face catastrophe. However, a recent research study from the firm Coinshares disagrees with this argument and the company’s head of research called the fears “highly theoretical edge cases without any historical real-world precedent.”

Bitcoin Halving Capitulation: 'Mining Death Spirals Don't Happen in Real Life,' Says Report
Source: Coinshares Research.

In the report called “Why Bitcoin Miners Will Keep Mining,” Christopher Bendiksen talks about how current BTC prices are down more than 50% from the 2020 highs. The researcher details that this means miners have lost 50% of their income and a few “high-cost producers will now be unprofitable.” “When miners turn cashflow negative they will turn off their gear and hashrate will fall,” Bendiksen said. News.Bitcoin.com recently reported on how the hashrate had fallen from the 136 exahash per second (EH/s) high at the end of February, to 75EH/s after the market rout on March 12. The close to 45% hashrate reduction caused the network’s difficulty adjustment to drop to the second-lowest point in history. Bendiksen’s report discusses how the difficulty adjustment algorithm (DAA) is a key element within the BTC network.

In the death spiral scenario, Bendiksen stressed that some people believe that a big enough hashrate drop would slow down block times and eventually “grind the network to a halt since no new blocks are mined.” “This, in turn, will cause prices to drop further causing more miners to shut down until no one is left mining and the price hits zero,” Bendiksen wrote. The Coinshares head of research, however, doesn’t think this situation is plausible in the real world and thinks it only lives in people’s theoretical discussions. Coinshare’s report is also similar to the question answered by bitcoin researcher and evangelist, Andreas Antonopoulos, who discussed mining death spirals on Youtube. “Part of the reason that’s unlikely to happen is that miners have a much more long-term perspective,” Antonopoulos noted in the video.

Bitcoin Halving Capitulation: 'Mining Death Spirals Don't Happen in Real Life,' Says Report
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Mining Death Spiral and the Network Grinding to a Halt Are Highly Theoretical Edge Cases

The Coinshares researcher also explained how in a rare, edge-case scenario it would take an awful lot of factors like gaming the DAA with precision and dumping on market prices at the same time. “In real life though, markets don’t move like that,” Bendiksen’s report highlights.

“On top of that there are operational concerns on the part of miners that prevent shutdowns on such rapid timelines,” Bendiksen wrote. “Powering down a several hundred-megawatt mine is not a matter of pulling a socket plug — you would risk severely damaging the local grid. Moreover, many miners have offtake agreements that mandate that they continue their draw for as long as they are able to pay their contracted bills. The point is: even when bitcoin prices significantly fall (which happens pretty much every year) or the mining reward is halved (which happens at predetermined time intervals), the physical and operational realities of the mining network are such that drawdowns in hashrate take time,” the report states. Bendiksen’s research further notes:

In practice, hashrate reductions are therefore always smoothly caught by the dynamic difficulty adjustment and block frequencies never get anywhere near ‘crisis levels’ (whatever that even means).

Bitcoin Halving Capitulation: 'Mining Death Spirals Don't Happen in Real Life,' Says Report
Source: Coinshares Research.

Bendiksen and Coinshares believe that the network was designed to handle these exact situations and they are confident things will be fine going forward. “Because of the design choices we’ve explained above the mining network has never failed to produce blocks. The difficulty has reset downwards many times — sometimes dramatically as the result of a pullback in price (the November/December 2018 is an excellent example to study), but never has the network ground to a halt or even come anywhere close to it,” Bendiksen’s report concludes.

What do you think about the Coinshares mining report and death spirals? Let us know in the comments below.

 

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The Crypto Industry’s $400M Cash and Stock Deal – Binance to Acquire Coinmarketcap.com

The Crypto Industry’s $400M Cash and Stock Deal - Binance to Acquire Coinmarketcap.com

The popular cryptocurrency exchange Binance is allegedly in talks with the owners of coinmarketcap.com in hopes of purchasing the website for $400 million. People familiar with the matter explained the acquisition will be announced this week and could be one of the largest procurements in the cryptocurrency and blockchain industry to-date.

Also read: Bitcoin Mining Roundup: BTC Regains 100 Exahash, Miners Close Shop, Pre-Halving Shake-Up

Binance Will Reportedly Purchase Coinmarketcap.com for $400 Million

Binance has grown quite large since launching in 2017 when the global cryptocurrency exchange was founded by Changpeng Zhao (CZ) and Yi He. The following year in 2018, the exchange was considered the largest in the world in terms of cryptocurrency trading volume. The firm has also acquired the Indian exchange Wazirx, the Beijing-based Dappreview, a derivatives exchange called JEX, Mars Finance, and a digital currency mobile wallet branch called Trust Wallet. Now according to people familiar with the matter, Binance is set to announce another acquisition and it might end up being the largest procurement in the crypto industry so far.

The Crypto Industry’s $400M Cash and Stock Deal - Binance to Acquire Coinmarketcap.com
Reports detail that Binance will announce the acquisition of coinmarketcap.com (CMC) later this week.

The official story floating around crypto-land is that Binance is close to completing a cash and stock deal with the owners of coinmarketcap.com. The website is one of the most popular cryptocurrency data sites and according to Alexa ratings, coinmarketcap.com is ranked 570 worldwide and 819 in the United States. Coinmarketcap (CMC) gets a lot of traffic from countries like the U.S., India, and Brazil as the site sees millions of users visiting the site regularly. The Binance acquisition of coinmarketcap.com is ostensibly a cash-and-stock deal that involves $400 million. Speculators assume that it will be the largest acquisition within the cryptocurrency and blockchain industry to date. For instance, the coinmarketcap.com transaction would be well over the capital injected into 21 Inc. ($121 million), otherwise known as earn.com.

The Crypto Industry’s $400M Cash and Stock Deal - Binance to Acquire Coinmarketcap.com
CMC sees millions of users visiting the site regularly. According to Alexa ratings, coinmarketcap.com is ranked 570 worldwide and 819 in the United States.

CMC’s Data Discrepancies and the Crypto Community’s Commentary Concerning the Binance Takeover

Both Binance and coinmarketcap.com have not spoken to the media about the acquisition, but Binance CEO Changpeng Zhao did hint at some upcoming procurements that he was “very excited” about. Coinmarketcap has an interesting history as the owner Brandon Chez kept his identity unknown, up until he was doxxed by the Wall Street Journal on January 23, 2018. Chez also sat down for a fireside chat with the anonymous Sunny King last year during The Capital conference.

Coinmarketcap has had its share of controversy as well and a number of people do not trust the data that stems from the site. The crypto market cap aggregation website was criticized during the first week of January 2018 for delisting the exchange rates of South Korean crypto trading platforms. When cross-referencing coinmarketcap.com’s data with alternative crypto market valuation sites like messari.io, there’s some discrepancies when it comes to “reported” and “real” or onchain trade volumes.

The Crypto Industry’s $400M Cash and Stock Deal - Binance to Acquire Coinmarketcap.com
The acquisition for $400 million might be the largest in the cryptocurrency and blockchain industry to date. Social media posts and forums show that most crypto enthusiasts have been joking about the procurement in a negative fashion.

After the Binance acquisition of coinmarketcap.com (CMC) stories hit social media and crypto forums, a great number of digital asset proponents discussed if it would be “good or bad” for CMC. “I don’t like it at all — I guess I’ll continue to use my favorite CMC alternatives,” one person tweeted after hearing the news.

“CMC has been bad for years — The amount of scams they’ve allowed to advertise on their site has been awful. Hopefully [Changpeng Zhao] changes that,” another crypto proponent added. A great number of the comments on Twitter were negative and many people talked about the relationship between Tron and Binance as well.

“Binance buying [coinmarketcap.com] — How long until BNB and Tron are #1 and #2 and Digibyte is delisted?” the Twitter account @Litecoinfam tweeted on Tuesday.

What do you think about the possibility of Binance acquiring coinmarketcap.com? Let us know in the comments below.

 

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Stablecoin Market Caps Swell Over $7 Billion – Volumes Surpass Most Trading Pairs

While most digital assets have been suffering, stablecoins have been surging since the market downturn in mid-March and tether (USDT) is capturing more than 70% of BTC trades today. Besides tether, a wide range of other dollar-pegged cryptocurrencies have also benefited this month, as the market valuation of eight different stablecoins combined is well over $7 billion.

Also read: Bitcoin Mining Roundup: BTC Regains 100 Exahash, Miners Close Shop, Pre-Halving Shake-Up

Considerable Demand for Stablecoins Pushes ‘Dollarized-Token’ Market Caps Northbound

Crypto assets have seen better days as far as market values are concerned and on March 30 the valuation of all 5,000+ digital currencies is around $182 billion. Today, more than $7 billion from that number represents eight stablecoins including USDT, USDC, PAX, TUSD, DAI, GUSD, BUSD, and HUSD. Most of that $7 billion derives from USDT’s market cap, as the firm Tether has reported it now has more than $6 billion in liabilities. Data shows that the total assets under the company’s control equal: $6,141,809,416. Moreover, there’s a slew of stablecoins with much smaller market caps, but still have seen greater demand since the start of the mid-March market rout.

Stablecoin Market Caps Swell Over $7 Billion - Volumes Surpass Most Trading Pairs
Source: Research report written by Hasu and Coin Metrics data.

On Monday, USDT is commanding more than 70% of trades, which is a lot but not very unusual these days either. As news.Bitcoin.com noted in our recent report about the influx of stablecoin demand, USDC and PAX have continued to remain in the top five BTC pairs globally. Both coins are gathering more than 5% of BTC’s global trades each and both of them combined have seen more trade volume than the U.S. dollar.

According to sites like coinmarketcap.com, there’s an alleged $118 billion in global crypto trades on March 30. BTC captures $36 billion of those trades and tether (USDT) commands $44 billion. However, stats from messari.io indicate BTC is leading in “real volume” with $1.4 billion in worldwide trades and USDT capturing $1.1 billion. Messari’s data also shows USDT’s reported market cap is larger than XRPs now.

Stablecoin Market Caps Swell Over $7 Billion - Volumes Surpass Most Trading Pairs
Messari.io data indicates that USDT’s reported market cap is larger ($5.8B) than XRPs ($5.1B).

Stablecoin Transfers Touch All-Time Highs, Tron to Launch a ‘DAI-like’ Dollar-Coin

It’s uncertain whether tether is actually doing 22% more volume than BTC, but lots of USDT stats indicate the volume is at least on par with BTC trade volumes regularly. In addition to Pax and USDC, the stablecoins HUSD and BUSD have seen increased demand as well.

Stablecoin Market Caps Swell Over $7 Billion - Volumes Surpass Most Trading Pairs

Competition has increased a great deal among all the stablecoins and Justin Sun revealed Tron is launching a ‘DAI-like’ stablecoin called “USDJ.” The coin will allegedly be pegged to the USD rate by using collateralized digital assets.

Stablecoin Market Caps Swell Over $7 Billion - Volumes Surpass Most Trading Pairs
24-hour stablecoin and fiat volumes with BTC on March 30, 2020. USDT is commanding 70% of BTC trades, USDC 5.6%, and PAX 5.5%.

The recent stablecoin demand was noticed by the entire crypto community and Coin Metrics discussed the situation in the firm’s latest report. “Stablecoin transfer value hit an all-time high amidst the market turmoil,” Coin Metrics wrote. The researchers added:

The dual impact of Bitcoin’s USD value halving and massive issuance of stablecoins led to stablecoins’ market cap as a percentage of Bitcoin’s doubling in a matter of days.

What do you think about the demand for stablecoins? Let us know in the comments below.

The post Stablecoin Market Caps Swell Over $7 Billion – Volumes Surpass Most Trading Pairs appeared first on Bitcoin News.

Egypt Limits Bank and ATM Withdrawals Citing Rampant Cash Outflow and Coronavirus Fears

Egypt Limits Bank and ATM Withdrawals Citing Rampant Cash Outflow and Coronavirus Fears

On Sunday, the Central Bank of Egypt (CBE) announced it had instructed financial institutions in the country to put withdrawal limits in place for cash. Regional reports disclose that Egyptian residents can only withdraw 10,000 Egyptian pounds ($640) and businesses can only withdraw 50,000 pounds ($3,200). The CBE cited concerns over the covid-19 outbreak and also limited automated teller machine (ATM) withdrawals to 5,000 pounds per day.

Also read: Bitcoin Mining Roundup: BTC Regains 100 Exahash, Miners Close Shop, Pre-Halving Shake-Up

Central Bank of Egypt Enforces Cash Withdrawal Limits at Bank Branches and ATMs

The global economy has been suffering from the economic hardships tied to the covid-19 outbreak that has ravaged multiple countries. The coronavirus scare has caused people to question the use of cash due to the uncleanliness of bills. For instance, at the beginning of March, the U.S. central bank told the public it was holding U.S. dollars repatriated from Asian countries in a separate area. Further, the faltering economy has also caused banks in countries like the U.S. and Germany to place withdrawal limits on cash.

Now Egyptians are facing the same cash issues and the country’s central bank is imposing cash withdrawal limits across the board. In addition to the withdrawal limits imposed, the CBE’s Tarek Amer told reporters on Sunday via Sada al-Balad TV that “Egypt is facing a cash problem.” Amer disclosed that there’s roughly $26 billion being transferred out of Egypt to international banks and Egyptian travelers are also taking lots of cash with them when they travel abroad. However, local media quickly pointed out that Egyptian expat remittances were well over $26 billion and were actually closer to $34 billion.

Egypt Limits Bank and ATM Withdrawals Citing Rampant Cash Outflow and Coronavirus Fears
The CBE initiated a new scheme so citizens will use electronic payments more often by removing online fees and certain banking commissions. On Sunday, Egypt’s central bank told smaller banks to limit cash withdrawals to 10,000 Egyptian pounds for individuals per day and limited ATM withdrawals as well.

The monetary authority of the Arab Republic of Egypt explained on March 29 that it had told Egyptian banks to impose limits on cash withdrawals. The reason for the CBE’s move is to help curb the rising coronavirus spread in Egypt, Africa and other countries in the Middle East. The CBE’s new guideline says that the daily limit for individual withdrawals will be 10,000 Egyptian pounds ($640) and Egyptian companies can only withdraw 50,000 pounds. Further, the central bank told financial institutions to limit ATM withdrawals down to 5,000 pounds. The Egyptian pound’s inflation rate has been worse than most countries, as it was 13% in 2019 and 9.9% in 2020. Most central banks try to keep the inflation rate around 2%, but the Egyptian pound has suffered since the CBE floated the national currency in November 2016.

Egypt Limits Bank and ATM Withdrawals Citing Rampant Cash Outflow and Coronavirus Fears
The Egyptian central bank told financial institutions to also limit ATM withdrawals down to 5,000 pounds ($320).

Egyptians have also been told by the CBE that they should “avoid paper currency” and the citizenry should adopt electronic transfers and e-payments so they can control the covid-19 outbreak. “All banks canceled fees on transfers and e-payment methods for the citizens’ convenience,” the CBE said on Sunday. The day prior, the central bank of Egypt started an electronic payments initiative to encourage citizens to stop using physical pounds. Before that initiative, the CBE told smaller banks they could not impose late payments on certain loans and asked banks to delay credit penalties against customers and organizations.

Egypt Limits Bank and ATM Withdrawals Citing Rampant Cash Outflow and Coronavirus Fears
The Egyptian people have already been dealing with the high inflation rate between 9.9-13% in 2019 and 2020 due to the CBE floating the Egyptian pound in 2016.

Withdrawal Limits Started in Lebanon and India Well Before the Covid-19 Outbreak

The covid-19 outbreak is not the first sign of governments worldwide limiting the use of cash within a nation. Lebanese citizens have been dealing with the economic hardship as well. The country’s central bank imposed customer withdrawal limits last October. The Reserve Bank of India (RBI) imposed strict restrictions at the end of September 2019, which caused a broad range of Indian citizens to grow angry and rush branches.

Egypt Limits Bank and ATM Withdrawals Citing Rampant Cash Outflow and Coronavirus Fears
The CBE’s Tarek Amer told reporters on Sunday on Sada al-Balad TV that “Egypt is facing a cash problem.”

Following the coronavirus scare, a few U.S. banks imposed withdrawal restrictions as customers from the Hamptons in New York tried to empty large accounts. Bank customers from a few other U.S. states also complained of withdrawal limit issues from financial institutions like Bank of America, Chase, and JPMorgan. Last week, reports also disclosed that a number of German banks have imposed withdrawal limits and customers can only withdraw 1,000 euros per visit.

Egypt Limits Bank and ATM Withdrawals Citing Rampant Cash Outflow and Coronavirus Fears

Meanwhile, throughout the madness of this crazy environment filled with financial calamity, bitcoin supporters believe the time is now for worldwide citizens to adopt a censorship-resistant peer-to-peer electronic cash system. Banks have continued to make it harder for people to do what they want with their own money and with the covid-19 crisis, the problem is far more apparent. Americans, Egyptians, Lebanese, Indians, Germans, and citizens across the globe are starting to realize the glaring issues tied to modern central banking the hard way.

What do you think about the CBE imposing Egyptian pound withdrawal limits? Let us know in the comments below.

 

The post Egypt Limits Bank and ATM Withdrawals Citing Rampant Cash Outflow and Coronavirus Fears appeared first on Bitcoin News.

Bitcoin Mining Roundup: BTC Regains 100 Exahash, Miners Close Shop, Pre-Halving Shake-Up

Bitcoin Mining Roundup: BTC Regains 100 Exahash, Miners Close Shop, Pre-Halving Shake-Up

In 44 days, BTC miners will face the third reward halving as the block subsidy will soon shrink from 12.5 to 6.25 coins per block. Following the market carnage in mid-March, BTC’s hashrate plummeted 44% to a 2020 low of 75 exahash per second (EH/s). Since then the hashrate has climbed back above 100EH/s, but profitability between SHA256 networks like BCH and BSV has been a lot more erratic than usual.

Also read: Bitcoin Hashrate Down 45% – Miners Witness Second-Largest Difficulty Drop in History

BTC Recaptures 100 Exahash – SHA256 Miners Bounce from Network to Network Chasing Profits

Three halvings are just around the corner and people monitoring these networks have been noticing a lot more action within the SHA256 mining ecosystem. The market downturn after March 12, stemming from the covid-19 scare, has caused a massive revenue shift for individuals and organizations mining bitcoins. News.Bitcoin.com recently reported on how bitcoin miners have been selling more coins than they have been generating. Moreover, at the same time, the BTC hashrate lost 44% of its processing power and the network saw the second-largest difficulty drop in history. Now there’s only 44 days left until BTC’s subsidy halving, as the chain will halve on or around May 13. Since news.Bitcoin.com’s report three days ago, BTC miners have managed to jump back above the 100EH/s mark.

Bitcoin Mining Roundup: BTC Regains 100 Exahash, Miners Close Shop, Pre-Halving Shake-Up

At the time of publication, bitcoinsv (BSV) miners have 2.4EH/s of hashpower and the network is expected to halve in ten days. Bitcoin cash (BCH) has around 3.4EH/s hashing away at the network and BCH miners will face a halving in eight days. With the significant price drop and the BTC difficulty drop that followed, all three networks have been seeing much longer time frames when it comes to miners shifting between networks for profits on each network.

Bitcoin Mining Roundup: BTC Regains 100 Exahash, Miners Close Shop, Pre-Halving Shake-Up

Miners who are mining 2-3 of the most valuable SHA256 chains are bouncing back and forth depending on each chain’s profitability. For instance, from March 13 through the 21st, the profitability between BTC and BCH was considerable and favoring BCH. Similarly, after March 21, the opposite was true for about a week and miners moved hashpower over to BTC for a while. With all three halvings expected to happen roughly around the same time frame, the events make speculators believe that the trend of miners bouncing back and forth will continue to increase.

While DPW Holdings Closes a 28MW Operation, Hive Acquires a 30MW Facility

The price drop that affected all three SHA256 networks (BTC, BCH, and BSV) has caused a number of mining operations to close up shop or make an acquisition. On March 18, DPW Holdings revealed that because of the adverse effects of the covid-19 outbreak, the firm’s subsidiary mining farm Digital Farms would be closing indefinitely. The company filed an update with the U.S. Securities and Exchange Commission (SEC) about the decision to shut down operations. The report notes that Digital Farms shut down 28 megawatts (MW) of power “due to the unprecedented market conditions domestically and internationally.”

Bitcoin Mining Roundup: BTC Regains 100 Exahash, Miners Close Shop, Pre-Halving Shake-Up

Following the closure of Digital Farms, Hive Blockchain Technologies Ltd (TSX.V:HIVE) announced the acquisition of a mining operation with 30MW of power. The facility uses “low-cost green power” and resides in Lachute, Quebec. “The acquisition provides us with an advanced, operating Bitcoin mining facility ready to transition to next-generation mining hardware with access to some of the lowest-cost electricity on the planet,” Frank Holmes, interim executive chairman of Hive told the press on Monday. “The facility is powered entirely by renewable hydroelectricity, thereby maintaining our 100% green energy powered operations globally,” the Hive executive further remarked.

Bitcoin Mining Roundup: BTC Regains 100 Exahash, Miners Close Shop, Pre-Halving Shake-Up

Montana Officials Extend Renewable Energy Guidelines for Bitcoin Miners

Just recently, Coinshares data and many other researchers have reported roughly 74% of bitcoin mining operations are leveraging some form of renewable energy. While mining bitcoins continues to grow popular, the state of Montana has seen a lot of miners setting up shop in the region.

Bitcoin Mining Roundup: BTC Regains 100 Exahash, Miners Close Shop, Pre-Halving Shake-Up
The Cyptowatt facility (10.9 MW of capacity) shown above is one of many bitcoin mining operations located in Montana. State officials want to see all bitcoin miners in the region leverage renewable energy sources.

On March 27, officials in Missoula County, Montana proposed extending a guideline that requires miners operating in the state to use renewable energy sources. The proposal passed unanimously among the Missoula County Board of Commissioners and it will last until April 3, 2021.

16nm Chip and S9 Extinction?

A recent research report by Securities Daily’s Xing Meng reveals that older mining units like Bimain’s S9 (14TH/s) may not survive with bitcoin prices so low and with the upcoming reward halving. The mining operation F2pool has already reported that an estimated 2.3 million Antminer S9s have been shut off to-date.

Bitcoin Mining Roundup: BTC Regains 100 Exahash, Miners Close Shop, Pre-Halving Shake-Up
Did you know you can earn BTC and BCH through Bitcoin Mining? If you already own hardware, connect it to our powerful Bitcoin mining pool. If not, you can easily get started through one of our flexible Bitcoin cloud mining contracts.

Securities Daily’s Xing Meng and F2pool’s data shows that 16nm-powered mining rigs that have been the standard since 2016 face extinction. Although, the recent adjustment in BTC’s difficulty has allowed 16nm powered units like the S9s to continue until the halving. According to data, right now an S9 with 14/THs and $0.04 per kWh, will lose $11 a day. This data indicates that electricity prices would have to be near free for S9s to continue going forward after the halving.

The current global economy fears mixed with the upcoming halvings on all three SHA256 networks, will surely make things in crypto-land more eventful. Signs of stress and large swings in mining profitability and hashrate, indicate that miners are likely simply trying to survive the best they can. For the last few years, bitcoin mining has been extremely competitive and the competition and stress will likely grow exponentially after these three halvings are said and done.

What do you think about the challenges miners face with the current price and upcoming halving? Let us know in the comments below.

 

The post Bitcoin Mining Roundup: BTC Regains 100 Exahash, Miners Close Shop, Pre-Halving Shake-Up appeared first on Bitcoin News.

Bitcoin Mining Roundup: BTC Regains 100 Exahash, Miners Close Shop, Pre-Halving Shake-Up

Bitcoin Mining Roundup: BTC Regains 100 Exahash, Miners Close Shop, Pre-Halving Shake-Up

In 44 days, BTC miners will face the third reward halving as the block subsidy will soon shrink from 12.5 to 6.25 coins per block. Following the market carnage in mid-March, BTC’s hashrate plummeted 44% to a 2020 low of 75 exahash per second (EH/s). Since then the hashrate has climbed back above 100EH/s, but profitability between SHA256 networks like BCH and BSV has been a lot more erratic than usual.

Also read: Bitcoin Hashrate Down 45% – Miners Witness Second-Largest Difficulty Drop in History

BTC Recaptures 100 Exahash – SHA256 Miners Bounce from Network to Network Chasing Profits

Three halvings are just around the corner and people monitoring these networks have been noticing a lot more action within the SHA256 mining ecosystem. The market downturn after March 12, stemming from the covid-19 scare, has caused a massive revenue shift for individuals and organizations mining bitcoins. News.Bitcoin.com recently reported on how bitcoin miners have been selling more coins than they have been generating. Moreover, at the same time, the BTC hashrate lost 44% of its processing power and the network saw the second-largest difficulty drop in history. Now there’s only 44 days left until BTC’s subsidy halving, as the chain will halve on or around May 13. Since news.Bitcoin.com’s report three days ago, BTC miners have managed to jump back above the 100EH/s mark.

Bitcoin Mining Roundup: BTC Regains 100 Exahash, Miners Close Shop, Pre-Halving Shake-Up

At the time of publication, bitcoinsv (BSV) miners have 2.4EH/s of hashpower and the network is expected to halve in ten days. Bitcoin cash (BCH) has around 3.4EH/s hashing away at the network and BCH miners will face a halving in eight days. With the significant price drop and the BTC difficulty drop that followed, all three networks have been seeing much longer time frames when it comes to miners shifting between networks for profits on each network.

Bitcoin Mining Roundup: BTC Regains 100 Exahash, Miners Close Shop, Pre-Halving Shake-Up

Miners who are mining 2-3 of the most valuable SHA256 chains are bouncing back and forth depending on each chain’s profitability. For instance, from March 13 through the 21st, the profitability between BTC and BCH was considerable and favoring BCH. Similarly, after March 21, the opposite was true for about a week and miners moved hashpower over to BTC for a while. With all three halvings expected to happen roughly around the same time frame, the events make speculators believe that the trend of miners bouncing back and forth will continue to increase.

While DPW Holdings Closes a 28MW Operation, Hive Acquires a 30MW Facility

The price drop that affected all three SHA256 networks (BTC, BCH, and BSV) has caused a number of mining operations to close up shop or make an acquisition. On March 18, DPW Holdings revealed that because of the adverse effects of the covid-19 outbreak, the firm’s subsidiary mining farm Digital Farms would be closing indefinitely. The company filed an update with the U.S. Securities and Exchange Commission (SEC) about the decision to shut down operations. The report notes that Digital Farms shut down 28 megawatts (MW) of power “due to the unprecedented market conditions domestically and internationally.”

Bitcoin Mining Roundup: BTC Regains 100 Exahash, Miners Close Shop, Pre-Halving Shake-Up

Following the closure of Digital Farms, Hive Blockchain Technologies Ltd (TSX.V:HIVE) announced the acquisition of a mining operation with 30MW of power. The facility uses “low-cost green power” and resides in Lachute, Quebec. “The acquisition provides us with an advanced, operating Bitcoin mining facility ready to transition to next-generation mining hardware with access to some of the lowest-cost electricity on the planet,” Frank Holmes, interim executive chairman of Hive told the press on Monday. “The facility is powered entirely by renewable hydroelectricity, thereby maintaining our 100% green energy powered operations globally,” the Hive executive further remarked.

Bitcoin Mining Roundup: BTC Regains 100 Exahash, Miners Close Shop, Pre-Halving Shake-Up

Montana Officials Extend Renewable Energy Guidelines for Bitcoin Miners

Just recently, Coinshares data and many other researchers have reported roughly 74% of bitcoin mining operations are leveraging some form of renewable energy. While mining bitcoins continues to grow popular, the state of Montana has seen a lot of miners setting up shop in the region.

Bitcoin Mining Roundup: BTC Regains 100 Exahash, Miners Close Shop, Pre-Halving Shake-Up
The Cyptowatt facility (10.9 MW of capacity) shown above is one of many bitcoin mining operations located in Montana. State officials want to see all bitcoin miners in the region leverage renewable energy sources.

On March 27, officials in Missoula County, Montana proposed extending a guideline that requires miners operating in the state to use renewable energy sources. The proposal passed unanimously among the Missoula County Board of Commissioners and it will last until April 3, 2021.

16nm Chip and S9 Extinction?

A recent research report by Securities Daily’s Xing Meng reveals that older mining units like Bimain’s S9 (14TH/s) may not survive with bitcoin prices so low and with the upcoming reward halving. The mining operation F2pool has already reported that an estimated 2.3 million Antminer S9s have been shut off to-date.

Bitcoin Mining Roundup: BTC Regains 100 Exahash, Miners Close Shop, Pre-Halving Shake-Up
Did you know you can earn BTC and BCH through Bitcoin Mining? If you already own hardware, connect it to our powerful Bitcoin mining pool. If not, you can easily get started through one of our flexible Bitcoin cloud mining contracts.

Securities Daily’s Xing Meng and F2pool’s data shows that 16nm-powered mining rigs that have been the standard since 2016 face extinction. Although, the recent adjustment in BTC’s difficulty has allowed 16nm powered units like the S9s to continue until the halving. According to data, right now an S9 with 14/THs and $0.04 per kWh, will lose $11 a day. This data indicates that electricity prices would have to be near free for S9s to continue going forward after the halving.

The current global economy fears mixed with the upcoming halvings on all three SHA256 networks, will surely make things in crypto-land more eventful. Signs of stress and large swings in mining profitability and hashrate, indicate that miners are likely simply trying to survive the best they can. For the last few years, bitcoin mining has been extremely competitive and the competition and stress will likely grow exponentially after these three halvings are said and done.

What do you think about the challenges miners face with the current price and upcoming halving? Let us know in the comments below.

 

The post Bitcoin Mining Roundup: BTC Regains 100 Exahash, Miners Close Shop, Pre-Halving Shake-Up appeared first on Bitcoin News.

Market Update: Uncertainty Remains Thick as Bears Claw Bitcoin Price Below $6K

Market Update: Uncertainty Remains Thick as Bears Claw Bitcoin Price Below $6K

Bitcoin’s price has been dragging downward and on March 29, BTC’s fiat value slipped beneath the $6K zone. Most of the top ten cryptocurrencies are down between 5-8% in the last 24 hours. As the global economy falters and the halving approaches, people are uncertain about the future price of bitcoin as “safe-haven” theories have been steadily vanishing.

Also read: In-Between Bitcoin Halvings: Analyst Proves Bitcoin’s Price Not Bound to 4-Year Cycles

Top Ten Cryptos See Some Percentage Losses During Sunday’s Trading Sessions

The price of bitcoin affects the entire cryptoconomy most of the time and on Sunday, March 29, the story is no different. BTC has slipped beneath the psychological $6K mark after hovering around $6,450 for a while and then $6,200 during the last day and a half. At the time of publication, BTC is swapping for $5,904 per coin and has a market capitalization of roughly $108 billion.

Market Update: Uncertainty Remains Thick as Bears Claw Bitcoin Price Below $6K

As usual, tether (USDT) is the top pair with BTC on Sunday capturing more than 67% of the day’s trades. This is followed by pairs like USD (8.6%), JPY (6.2%), PAX (5.69%), USDC (5.4%) and EUR (2.18%). The two stablecoins PAX and USDC have been commanding a lot of BTC trade volume since the initial market carnage started on March 12. At $5,904 per coin, BTC has lost 5.15% during the course of Sunday’s trading sessions.

Market Update: Uncertainty Remains Thick as Bears Claw Bitcoin Price Below $6K

The second-largest blockchain by market capitalization, ethereum (ETH), is down 3.6% today and trading for $125 per coin. ETH has a market cap hovering around $13.8 billion and about a billion in reported trade volume on Sunday. Ethereum prices are down 18% during the last 30 days, 4.3% for the last 90, and negative 12% for the last 12-months against the U.S. dollar.

Market Update: Uncertainty Remains Thick as Bears Claw Bitcoin Price Below $6K

The fifth-largest blockchain by market cap, bitcoin cash (BCH) is down 3% today and is swapping for $208 a coin. BCH has around $330 million in global trade volume and the coin’s market valuation is $3.8 billion today. Just like BTC, the top trading pair with bitcoin cash is tether (USDT) capturing 59% of the day’s swaps. BTC is below tether followed by USD (14.5%), ETH (1.5%), KRW (1.4%), and EUR (0.55%). Bitcoin cash is down 3% for the last 30 days, the coin is up 0.27% for the last 90, and BCH is also still up 24% for the last 12-months against the U.S. dollar.

Market Update: Uncertainty Remains Thick as Bears Claw Bitcoin Price Below $6K

Uncertainty Remains Thick Among Crypto Traders

Right now many traders on forums, Youtube, social media and other avenues are uncertain about the future of BTC’s price and the rest of the crypto market. The popular analyst Peter Brandt noted on March 27 that for BTC, “This is the perfect storm.” However, Brandt added: “If Bitcoin cannot rally on this, then crypto is in BIG trouble.”

“I do not personally think BTC even has that much time to declare itself true or false,” Brandt tweeted the day prior.

Market Update: Uncertainty Remains Thick as Bears Claw Bitcoin Price Below $6K

Digital asset trader Crypto Michaël tweeted to his 50,000 followers that he thinks “every cycle takes longer than the previous one.” The trader’s opinion was similar to our recent report on Benjamin Cowen’s video about debunking four-year cycle periods.

“What if that also means that we’re going to find support at the 300-Week MA?” Crypto Michaël asked. “100-Week MA was supported in 2012, 200-Week in 2014-2017. 300-Week MA accumulation before the peak to 2025-2026 with BTC at $150,000?” the trader added.

Market Update: Uncertainty Remains Thick as Bears Claw Bitcoin Price Below $6K

“So you’re saying BTC will be in the range between 3k and 6k over the next 2+ years? I don’t think that BTC holders will be happy with that,” one person replied. “You are right. But I think there will be a new Bitcoin hodler emerging if the price will be $3K,” another crypto proponent added.

Market Update: Uncertainty Remains Thick as Bears Claw Bitcoin Price Below $6K

The Twitter account The Crypto Fam told his 20,000 followers that he thinks $6K as a long term price is good. “But it’s possible that all markets make another big leg down, even gold, in which case BTC would go with it. Gotta have some cash to buy new lows,” he tweeted. “In the last 24 hours, I’ve watched BTC climb in the short-term while XRP remains stable in bitcoin price countless times in which it somehow did not affect the USD price of XRP in the meantime. Mathematically, it just doesn’t compute,” the trader Tommy Tourettes said. Presently, a number of traders and analysts have a range of different theories about where crypto prices will lead, but these days most of them are uncertain of what lies ahead.

Where do you see the cryptocurrency markets heading from here? Let us know in the comments below.

The post Market Update: Uncertainty Remains Thick as Bears Claw Bitcoin Price Below $6K appeared first on Bitcoin News.

Free from Tron: Steemit’s Blockchain Fork Hive Outperforms Steem Token Value

Free from Tron: Steemit’s Blockchain Fork Hive Outperforms Steem Token Value

For weeks now, the cryptocurrency community has been fervently discussing the recent acquisition of the Steemit blockchain. Skeptics believe that the Tron takeover has shown significant vulnerabilities with delegated-proof-of-stake (DPoS) projects. Following the takeover, the community still managed to fork the protocol and the new hard-forked blockchain dubbed ‘Hive’ has seen its token price outperform the value of Steem tokens.

Also read: In-Between Bitcoin Halvings: Analyst Proves Bitcoin’s Price Not Bound to 4-Year Cycles

A slew of Steemit proponents believe the Steemit protocol was rescued from centralization and Justin Sun’s Tron project. On March 3, news.Bitcoin.com reported on how the first community-led fork had failed because a few exchanges used large swathes of DPoS tokens in order to stop the attempt. Then on March 20, community members forked the Steemit protocol and relaunched under the name ‘Hive’ using its own blockchain. Although after the fork took place, Hive’s project leaders had issues with moving steem tokens into the Hive chain. Further, the team discussed blacklisting certain Tron proponents who have a significant stake in the project. Today, hive tokens (HIVE) are trading for $0.21 per coin and steem tokens (STEEM) are selling for $0.17 per unit.

Free from Tron: Steemit’s Blockchain Fork Hive Outperforms Steem Token Value

Steem trade volume, however, reported by exchanges has been around $2.3 million during the last 24 hours. Hive volume is considerably lower at the time of publication, with only $53K worth of 24-hour swaps. Despite the fork last week, the Tron-backed Steemit project hopes to convince users to come back to the Steemit project. Additionally, Steemit operators also admitted to censoring Steemit-based articles that discuss the Hive project. Essentially, the Tron-owned Steemit project leaders told the community that if they are divided, the project’s original goals will fail. The blog post states:

We listened to the Steem community, and we always will. While we do not agree, nor obviously support the recent hard fork, we continue to find ways to show our commitment to developing our Steem ecosystem with the support of our great community. We love Steem and we are always supporting a united community since we believe that united we stand, divided we fall.

Free from Tron: Steemit’s Blockchain Fork Hive Outperforms Steem Token Value

When Steemit’s new owners confessed to censoring posts they said: “Would any commercial website support a post that encourages all users to migrate to another one? No. That would not be in the best interest of the community and the Steem ecosystem.” Meanwhile, the Hive blockchain community is positive about the new project and the lessons learned. “Hive is unique in that it’s a social blockchain. Bonds have been built over the years. Lives have been changed, saved and improved. Lessons have been learned,” one Hive supporter wrote on Twitter. “Open source so your contributions are immutable — Hive is an idea and no amount of money, government or corporations can kill it,” he added.

Free from Tron: Steemit’s Blockchain Fork Hive Outperforms Steem Token Value

While speaking of the situation on social media about Steemit’s new project leaders censoring posts and the centralization issues, another Hive supporter tweeted: “Woah, this is scary. Over 4,500 posts and comments, just gone. What’s supposed to be a decentralized social network, has become dangerously centralized. They’re still on Steem, but [they are] censoring me just because I was heavily involved in Hive?”

What do you think about the hive token outperforming steem tokens? Let us know in the comments below.

 

The post Free from Tron: Steemit’s Blockchain Fork Hive Outperforms Steem Token Value appeared first on Bitcoin News.

In-Between Bitcoin Halvings: Analyst Proves Bitcoin’s Price Not Bound 4-Year Cycles

In-Between Bitcoin Halvings: Analyst Proves Bitcoin's Price Not Bound 4-Year Cycles

Crypto traders and analysts have always looked to the halvings for some kind of clues in order to predict the future price of bitcoin. A number of traders also think that BTC price movements shift every four years and speculators often use the halvings as milestone markers. On March 28, crypto Youtube host and digital currency analyst Benjamin Cowen explained bitcoin’s price doesn’t move in four-year cycles and stressed that the asset is still following the lengthy market phase of accumulation.

Also read: ‘Bull Run May Not Come Immediately After Bitcoin Halving,’ Says Bitmain’s Jihan Wu

The Problem With 4-Year Interval Price Theories

On Saturday, Into the Cryptoverse host, Benjamin Cowen discussed the crypto asset BTC’s long term chart. Cowen says there’s a number of people who still believe that the price of BTC follows a four-year cycle in between each bull run. Additionally, there are speculators who use the halvings as markers as well and there’s a number of crypto supporters who believe BTC’s price will spike either just before, or immediately after the bitcoin halving.

“If you are still under the four-year cycle theory we’re waiting for you to potentially change your mind at some point,” Cowen said. “Most of the evidence suggests — It’s not a four-year cycle and I don’t think there is anything that suggests it is,” Cowen added.

In-Between Bitcoin Halvings: Analyst Proves Bitcoin's Price Not Bound 4-Year Cycles

The Into the Cryptoverse analysts stressed that four years ago, the price was far more bullish than it is today. Cowen believes it’s going to be “a lot longer” for the next bull run to come to fruition. “The reason we talk about this, is because lengthening cycles are the name of the game,” the analyst said. “Welcome to the show — welcome to bitcoin, as there’s really nothing that suggests there are four-year cycles,” he added.

Essentially a lengthening cycle means that after every price top and the subsequent correction, the time frame until the next bull market lengthens every time. According to Cowen, we are in the midst of an accumulation phase and he also talked about how some people think that BTC’s price will rise after the halving.

In-Between Bitcoin Halvings: Analyst Proves Bitcoin's Price Not Bound 4-Year Cycles

“Some people think that the halvings mean that we have to peak at some certain amount of time after and before the next halving — We’ve talked about how this is not true,” Cowen remarked. The analysts proved his point by showing different peak formations in 2011, the one before the 2013 bull run, and 2017’s run-up as well. The trader said that expecting a four-year cycle “doesn’t even make sense” and measuring from valley to valley it also doesn’t equate to a four-year cycle either.

“What we have said is likely 2020 and 2019 will be accumulation years — It means for the next several months — it is going to be an accumulation time.” Cowen thinks that besides a few rare wicks below the 200-MA, the 200-week moving average has held pretty well. The analyst stated:

So bitcoin is still on course, nothing has changed.

Lengthening Cycles and Missing the 6-Figure Paradigm

Cowen’s video shows that BTC prices could touch six figures at some point and he seems to be more optimistic about the last quarter of 2021. The point of the video Cowen noted was to inform people who seem to be hung up on the four-year cycle theories and halving speculation. The researcher also told people how they can read his prior blog post about the subject in more detail.

“You’ll find countless graphs that talk about the four-year cycle theory and how its likely wrong and how lengthening cycles is probably ultimately what we are going to see,” the analyst highlighted. Cowen also thinks that if everyone could fast forward 4-5 years from now, it will be “obvious to everyone and by that point there will be a lot of people who missed out.” Cowen thinks they will miss out on the lengthening cycle and accumulation phase knowledge because they are too focused on the four-year cycle theories.

In-Between Bitcoin Halvings: Analyst Proves Bitcoin's Price Not Bound 4-Year Cycles

The trader’s report follows the recent statements from Bitmain cofounder, Jihan Wu, who also said that the bull run may not come right after the bitcoin halving. “I think the bull this time around may not come immediately after the halving [and] there likely will be a delay in time,” Wu said in a recent interview. Bitmain’s CEO noted that BTC’s price will have a top, become more stable, and the crypto’s value will also show slower growth over time. Wu’s theory aligns with Cowen’s lengthening cycle opinion and Wu also stressed that “we may not see abrupt spikes in [BTC’s] price.”

What do you think about Cowen’s four-year cycle hypothesis? Let us know in the comments below.

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400 Kraken Survey Respondents Predict Bitcoin Price Will Surpass $22K in 2020

400 Kraken Survey Respondents Predict Bitcoin Price Will Surpass $22K in 2020

San Francisco-based exchange Kraken conducted a poll that stems from the responses of 400 “VIP” cryptocurrency traders. Despite the current economic climate, surveyed participants indicate they still believe the cryptoconomy is in a “bull market.” Moreover, Kraken’s survey respondents think BTC prices will touch a new all-time high at $22,866 per coin.

Also read: 2x Bitcoin — Wanna Double Your BTC to the Moon? Forget About It

400 VIP Kraken Traders Are Still Bullish – Survey Respondents Expect BTC’s Price to Touch $22K in 2020

On March 27, Kraken published a survey called the “2020 Sentiment Survey: Where We Are & What’s To Come.” The poll was conducted with 400 “VIP” traders and 41% said they were “investors,” 40% noted they were “traders” and 15% said they were “institutions.” A small percentage of the respondents were payment firms, crypto exchanges, and miners.

“Kraken Intelligence, our team of in-house research experts, surveyed 400 clients from around the world this January to gauge their sentiments and expectations for crypto in 2020,” explains the VIP client letter sent on Friday.

400 Kraken Survey Respondents Predict Bitcoin Price Will Surpass $22K in 2020

According to the report, 44% of participants think the cryptoconomy is still in the midst of a “bull market.” Roughly 34% of those surveyed said they were “unsure” at the moment. Further, 22% of the Kraken survey respondents think that the cryptoconomy is facing at “bear market” right now.

Interestingly, surveyed individuals and organizations envision BTC touching a new all-time high (ATH) in 2020. The survey notes that respondents expect the price of BTC to jump to $22,866 per coin at some point during the year. The VIP traders also predict that the price of ETH will reach $810, but ether will not surpass it’s ATH in 2020.

400 Kraken Survey Respondents Predict Bitcoin Price Will Surpass $22K in 2020

‘Despite Uncertain Times, the Crypto Industry Remains Optimistic’

The respondents also indicated that some of them manage massive amounts of funds as 84% of participants said they manage less than $10 million. But 11% of surveyed individuals disclosed that they manage around $10 million and $50 million according to Kraken’s statistics.

400 Kraken Survey Respondents Predict Bitcoin Price Will Surpass $22K in 2020

6% said they managed funds between $50 million to $100 million. “Nearly 50% of respondents anticipate that the U.S. SEC will approve a bitcoin ETF this year,” Kraken’s blog post stresses. “Tether (USDT) was the overwhelming favorite (60.4%) among stablecoin users,” the report also notes. Kraken’s report adds:

Despite these uncertain times, it is clear from the survey that the crypto industry still has many advances and catalysts to be optimistic about.

What do you think about Kraken’s recent survey? Let us know in the comments below.

 

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US Lawmaker Claims Stimulus Bill Bolsters Fed Secrecy, Pork Funds, and Wall Street Bailouts

On Friday, U.S. bureaucrats passed the 2020 stimulus bill, which has become the largest cash injection package ever created by the federal government. However, following the bill making it through the Senate and House, Republican representative Thomas Massie told the public the stimulus bill bolsters a shroud of secrecy surrounding the Federal Reserve. Moreover, within the depths of the bill’s 880 pages, there’s a $454 billion slush fund available for Wall Street among many other types of pork-barrel funding.

Also read: Trump Signs Largest Relief Bill in US History: When Will Americans Get Stimulus Checks

Kentucky Lawmaker Claims CARES Act Vote Was a ‘Cover Up’ and the Bill Allows the Fed to Print Funds for Wall Street Under a Shroud of Secrecy

While Americans wait for their $1,200 checks for economic support from the U.S. federal government, American politicians have once again shown an enormous amount of greed and manipulation. While polarizing Democrats claim to be for the average citizen and main street, bureaucrats like Bernie Sanders, Sherrod Brown, Alexandria Ocasio-Cortez (AOC), Jeff Merkley, and Elizabeth Warren just gave the U.S. central bank and Wall Street unlimited powers. A great majority of bi-partisan leaders approved the new bill that lets the Federal Reserve create Special Purpose Vehicles (SPVs) for risky schemes (similar to Enron) and a $484 billion slush fund for U.S.-based financial incumbents. Although, one representative from Kentucky told the press after the stimulus bill passed that the whole “Coronavirus Aid, Relief & Economic Security Act” (CARES Act) passing was a blatant “cover up.”

Representative Thomas Massie told reporters that U.S. representatives and senators tried to cover up the voting process during the bill’s passing. Massie said that unnamed politicians are trying to protect themselves from future “political ramifications.” “The truth,” Massie said. “If you are willing to report it is that [representatives] don’t want a recorded vote. They don’t want to be on record for making the biggest mistake in history.” The Kentucky lawmaker also took to Twitter and told the public that he “swore an oath to uphold the constitution, and I take that oath seriously.”

According to Massie, the CARES Act’s official vote had a number of discrepancies and it should not have passed. Massie noted that democratic House speaker Nancy Pelosi also got to add $25 million to fund the Kennedy Center and for the National Endowment for the Humanities and Arts. Massie believes this money could’ve been spent on current healthcare costs like covid-19 test kits and medical equipment. Not only did American leaders ‘pork’ the bill with unneeded funding, Massie also highlighted that the CARES Act takes good care of the Fed. Massie tweeted:

This bill creates even more secrecy around a Federal Reserve that still refuses to be audited. It allows the Federal Reserve to make decisions about who gets what, how much money we’ll print. With no transparency.

The US Cares Act gives the Fed a shroud of secrecy and it can secretly meet with Wall Street incumbents and help them with liquidity funding and never be audited. Kentucky lawmaker Thomas Massie says the bill passing was a “cover-up” and the “biggest mistake in American history.”

Unnecessary Spending, Pork Barrel Funding, and Secret Monetary Policy Americans May Never Learn About Unless They Read the Bill

In addition to the vote discrepancies, the CARES Act’s pages indicate that Massie’s arguments are correct. The act contains massive amounts of money that go toward unnecessary spending and the section that gives $1,200 to taxpayers, is the smallest section within the entire bill. The bill shows that the CARES Act allows a special central bank fund for $484 billion that “shall be available to make loans and loan guarantees.” There is zero oversight for this new slush fund and it provides the Fed with the ability to facilitate investments for the purpose of “providing liquidity to the financial system” under a shroud of secrecy. Columnists Pam Martens and Russ Martens disclosed that the bill allows the Fed to fund Wall Street in secret and create Special Purpose Vehicles (SPVs). SPVs are entities built to curb extremely risky investments (like buying Bear Stearns stocks in 2007) and White House Economic Adviser Larry Kudlow noted that SPVs will add “$4 trillion in Federal Reserve lending power.”

Americans grew tired of the Wall Street bailouts and protested the cash injections in 2007-2008. Furthermore, two years later, after the financial meltdown in 2008, Occupy Wall Street protestors took to the streets in 2012 to fight against the same financial manipulation.

Essentially, with taxpayers’ funds, the Fed can use the SPV to take a 10% stake in a number of Wall Street bailouts. Martens’ report highlights the central bank can “simply keep these dark pools off its balance sheet while levering them up 10-fold.” The researchers report also adds:

This could mean that the American taxpayer may never learn why it went into debt to the tune of $454 billion if no records are being maintained.

Unfortunately, news publications like the Wall Street Journal, CNN, New York Times and Bloomberg are not reporting on the secrecy that has been tacked onto the CARES Act. They have reported on the $1,200 checks to appease the angry citizenry, but have failed to report on the mysterious ‘pork funds’ slipped into the stimulus bill. The Fed already created an SPV called the Commercial Paper Funding Facility (CPFF) and this move provides the Fed with the ability to provide $10 billion of credit protection to banks.

Unfortunately, most Americans won’t read the 2020 Cares Act. The bill which became law on Friday contains massive amounts of ‘pork-barrel’ funding like $1 billion for the airlines recycling program, $9 million for “miscellaneous Senate expenses,” a $484 billion Wall Street slush fund, and $25 million to fund the Kennedy Center and for the National Endowment for the Humanities and Arts.

If Americans actually read the CARES Act, they would notice that there’s $25 million set aside for the capitol building’s cleaning supplies, $25 million extra for the House of Representative’s salaries, and $315 million for diplomatic programs as well. There’s $1 billion being kept for the airlines’ recycling program, $9 million for “miscellaneous Senate expenses,” $25 million goes to the FAA, the Inspector General Office gets $5 million for salaries, $1 billion will be used for the free phone program, and $30 million will be fed to OSHA for increased regulations.

Representative Thomas Massie was not lying when he said the vote on Friday was unjust and mysterious. There’s a lot of hidden treasures in the CARES Act for the Fed, Wall Street, and the precious salaries for the American bureaucracy. The Martens stress that the CARES Act strengthens the powers of the central bank and Wall Street incumbents and “ together they are an unparalleled and unprecedented threat” to the nation. Politicians are acting like heroes with this $1,200 check program, but in reality “the public deserves an honest explanation from each of them,” Martens’ report concludes.

What do you think about the Cares Act’s secret funds for Wall Street and pork-barrel funding? Let us know in the comments below.

 

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‘Bull Run May Not Come Immediately After Bitcoin Halving,’ Says Bitmain’s Jihan Wu

'Bull Run May Not Come Immediately After Bitcoin Halving,' Says Bitmain's Jihan Wu

Bitmain cofounder Jihan Wu’s recent interview discusses some of his predictions concerning the future of bitcoin, mining, the bitcoin halving, and the cryptoconomy. Despite the coronavirus outbreak and its effect on the global economy, Wu is optimistic and he believes the modern central banks’ loose monetary policy infecting the world will bolster the value of financial technologies.

Also read: Market Update: Slew of Unknown Coins Has Seen Considerable Gains Since ‘Black Thursday’

Slow Growth and Bitcoin’s Price Top

The cofounder of Bitmain, one of the largest ASIC mining rig manufacturers worldwide, believes that cryptocurrencies show great promise in the midst of the current economic storm. According to a recent interview published on Friday, Bitmain’s Jihan Wu had said he was positive about the future of digital currencies like bitcoin. Wu explained that the recent bailouts and central planners’ stimulus injections could make digital currencies more valuable. During the discussion, Wu noted that the price of bitcoin also has a top and at times growth will be slower.

'Bull Run May Not Come Immediately After Bitcoin Halving,' Says Bitmain's Jihan Wu
Bitmain’s CEO Jihan Wu discussed his thoughts about the future of the cryptoconomy, bitcoin mining, and the bitcoin halving. Wu also discussed cryptocurrencies like ethereum (ETH) and bitcoin cash (BCH) as well.

“As bitcoin’s market cap grows, its volatility decreases and becomes more stable,” Wu detailed. “That means we may not see abrupt spikes in its price. No matter how high bitcoin goes, one day it will reach a top. Before that, it will see prices [with] flatline growth with some twists in the next few years.” Wu also said:

I think the bull this time around may not come immediately after the halving. There likely will be a delay in time.

'Bull Run May Not Come Immediately After Bitcoin Halving,' Says Bitmain's Jihan Wu
In 46 days on or around May 13, 2020, the BTC blockchain will experience the third reward halving. Many crypto proponents believe the halving will push the price of BTC up either right before the event or after.

Next-Gen Miners, Safehaven Status, Bitcoin Cash, and Ethereum

Wu then detailed that he doesn’t think bitcoin can act as a “safe haven in a volatile world.” “However, bitcoin and the financial markets, in my eyes, are a bit like the relationship between a surfboard and wave. How well you can surf depends on your skills,” Wu remarked. Further, Wu discussed the latest round of next-generation miners Bitmain recently revealed. Bitmain unveiled two bitcoin miners with max speeds up to 110TH/s per unit on February 27. The mining manufacturers cofounder believes these next-generation miners will serve the market for at least 3-4 years.

Bitmain’s CEO also said that bitcoin cash (BCH) is a promising project and he is of the opinion that “overly ambitious goals should be put on hold.” “Keep the technical architecture simple and the community united,” he added. As far as ethereum (ETH), Wu also was positive about the crypto’s outlook, but said developers should put less concern in removing proof-of-work and focus more on progressing the technology forward.

What do you think about Bitmain cofounder Jihan Wu’s recent interview? Let us know in the comments section below.

 

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Ripple CEO’s Public Statements About XRP Token Under Fire in Class-Action Lawsuit

Ripple CEO's Public Statements About XRP Token Under Fire in Class-Action Lawsuit

Plaintiffs in the class action lawsuit against Ripple Labs have filed another litigation complaint against Ripple CEO Brad Garlinghouse. The news follows the recent court judgment that denied Ripple Lab’s attempt to get the case dismissed.

Also read: Market Update: Slew of Unknown Coins Has Seen Considerable Gains Since ‘Black Thursday’

Plaintiffs Accuse Ripple Labs CEO of Selling XRP After Telling the Public He Was ‘Long XRP

On March 25, the plaintiffs suing Ripple Labs filed an amended complaint with the court against the company’s CEO Brad Garlinghouse. According to the court filing, Garlinghouse told the public a few statements during interviews and on Twitter that ostensibly favor the plaintiff’s side of the argument. The document notes that the CEO told people on Twitter and in the media that he was holding and “long XRP,” but the plaintiffs believe Garlinghouse was selling the token regularly. The complaint filed on Wednesday reads:

Ripple’s CEO, Brad Garlinghouse, has also been a vocal advocate for investing in XRP. In a December 14, 2017 interview with BNN, when asked if he is personally invested in XRP, the CEO stated ‘I’m long XRP, I’m very, very long XRP as a percentage of my personal balance sheet.

Ripple CEO's Public Statements About XRP Token Under Fire in Class-Action Lawsuit

However, despite Garlinghouse explicitly saying that in public, the plaintiffs believe the CEO was instead dumping lots of XRP on the open market for USD and other assets. They believe retail investors were damaged by these alleged actions and Ripple Labs employees had knowledge of these instances, the plaintiffs further claimed.

“Rather,[Garlinghouse] was dumping XRP on retail investors in exchange for dollars and other cryptocurrencies,” the complaint adds. “Defendants had exclusive or superior knowledge of material information regarding Garlinghouse’s XRP sales but omitted it from their representations to investors…Accordingly, Garlinghouse’s statement was a misrepresentation and omission of material fact to investors.”

Ripple CEO's Public Statements About XRP Token Under Fire in Class-Action Lawsuit

Lawsuit Claims XRP Is Centralized and a Security

Essentially, the plaintiffs suing Ripple Labs also believe that the firm advertised XRP as a utility token for the network but the company is accused of simply using XRP for revenue. Other than making revenue, the plaintiffs say that XRP is basically a security token and other products like Ripplenet and Xvia are simply smoke and mirrors with no real value. Ripple Labs and Garlinghouse have denied all of these accusations against them and have tried to get the case dismissed. In addition to the plaintiff’s attempt to get a jury trial, the case questions whether or not XRP is a security. The plaintiffs wholeheartedly believe that XRP is a security and the entire project is centralized.

Ripple CEO's Public Statements About XRP Token Under Fire in Class-Action Lawsuit

For instance, the plaintiffs further highlight that the Ripple Labs XRP product manager, Warren Paul Anderson, tweeted frequently about XRP’s centralization issues. “On January 9, 2018, Anderson tacitly admits that the XRP Ledger remains centralized, tweeting that the ‘[N]ew XRP Ledger (rippled) 0.81.0 release gets us one step closer to executing on our aforementioned decentralization strategy,’” the complaint notes.

What do you think about the class-action lawsuit against Ripple Labs? Let us know in the comments below.

 

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Vermont Rapper Releases Hip Hop Track ‘#Freeross,’ Ulbricht Petition Nears 300K Signatures

Southern Vermont-based hip-hop artist, Krypto Man, has released a new single called “#Freeross” in hopes to get Ross Ulbricht released from prison. Krypto Man is a well known rapper on the east coast and revenue from the song will be donated to the nonprofit Freeross.org. Ross Ulbricht has also gathered more than 279,000 signatures so far for his clemency petition hosted on the website Change.org.

Also read: While You’re Under Quarantine, Check These Sites for Remote Crypto Jobs

Vermont Hip Hop Artist Krypto Man Drops a New Single Called #Freeross

The well known Vermont rap artist, Krypto Man, has released a new song about Ross Ulbricht’s prison sentence and how he would like to see Ulbricht set free. The track is called “#Freeross” and the song’s lyrics demonstrate how Krypto Man believes Ulbricht’s double life sentence is extremely harsh. Ross Ulbricht was sentenced to double-life without the chance of parole for his participation with the Silk Road marketplace. Krypto Man, whose real name is Tyler Colford, believes vices are not crimes and he thinks that Ulbricht is the victim here.

Vermont Rapper Releases Hip Hop Track '#Freeross,' Ulbricht Petition Nears 300K Signatures
Vermont rapper Krypto Man has released a new single called “#Freeross” in hopes to shine a light on Ulbricht’s situation.

“If there is no victim then there is no crime,” commented Krypto Man. “Check out more about Ross’s fight at Freeross.org,” he told his followers. The hip hop recording artist is well known in southern Vermont for his contributions with the rap group Jynxinc as well. But since Krypto Man stepped out on his own, he believes it’s time to show his feelings about what has happened to Ulbricht. The track that discusses pardoning Ulbricht was released by the independent record label Machete Ish Records.

Revenue from Krypto Man’s Single Will be Donated to Freeross.org – Ulbricht Gathers 279K Signatures

A Machete Ish spokesperson explained that the record label is focused on grassroots movements and a “local tight-knit community.” “The response to the early releases from Machete Ish, featuring Krypto Man, have been passionate so far and this single “#Freeross” is expected to be no exception,” the record label detailed. Meanwhile, the clemency for Ross petition is nearing 300K signatures, as signatures gathered so far add up to around 279,000+. The petition asks the President of the United States, Donald Trump to commute Ross Ulbricht’s unjust sentence.

Vermont Rapper Releases Hip Hop Track '#Freeross,' Ulbricht Petition Nears 300K Signatures

The latest hip hop single released by Krypto Man intends to shine more light toward Ulbricht’s situation and get more people to fight for his freedom. “All funds raised by the new song, which has an information-packed introduction about the situation, a pounding beat, and showcases Krypto Man’s unique, conscious word-flow, will be going towards the non-profit Free Ross Foundation,” the announcement added.

What do you think about the rap song “#Freeross” by Krypto Man? Let us know in the comments below.

 

The post Vermont Rapper Releases Hip Hop Track ‘#Freeross,’ Ulbricht Petition Nears 300K Signatures appeared first on Bitcoin News.

Bitcoin Miners Are Selling Coins Faster Than They Can Generate Them

According to data sites and a number of observers, bitcoin miners are selling coins faster than they can produce them. Ever since the market downturn on March 12 and the week of falling prices that followed, bitcoin miners have been struggling.

Also read: Bitcoin Hashrate Down 45% – Miners Witness Second-Largest Difficulty Drop in History

Miners Sell More Bitcoin Than They Generate

On March 26, news.Bitcoin.com reported on how miners witnessed 45% of the overall hashrate shaved since Feb. 29 and miners also dealt with the second largest difficulty drop in history. Now according data from the analytical crypto website bytetree.com’s generation vs. first spend chart shows that bitcoin miners are selling a lot more than they are generating. There’s been a big shift since 3-6 months ago, when miners looked as though they were hoarding in preparation for the upcoming reward halving. Those hoards saved six months ago maybe keeping mining operations afloat, while they sell fresh coinbase rewards today.

Since then, however, statistics show that BTC prices jumped from $3,800 per coin to $6,700 on March 26. During more than 80% of that time period, miners sold way more coins than what they are producing at today’s issuance rate. Some bitcoiners think the shift is a “bullish” signal, while others think this belief is pure “hopium.”

Bytetree.com’s data reveals when the coins were first generated and the period of time that follows from when those same bitcoins are spent. Even though the price is one of the largest factors within the mining industry, most people don’t understand that there’s a great number of operations that used leveraged borrowing to mine bitcoins last year. Some mining operations that borrowed to fund their operations were probably liquidated and likely contributed to the 45% hashrate loss.

Bytetree.com’s generation vs. first spend chart. A great example of miners losing out is how the mining operation Digital Farms shut down indefinitely due to the economic carnage caused by the covid-19 outbreak. “Digital Farms’ cryptocurrency mining operations have been suspended indefinitely, primarily due to the sharp decline in the market price for bitcoin,” the announcement reads.

A Few Observers Believe Miner Sell-Off Is a Bullish Sign

Since ‘Black Thursday’ began and up until today, a large swathe of smaller mining operations shut down. This is because, during the last two years, financial services have appeared that allow mining operations to borrow capital and mining rigs in an attempt to profit later. Instead of helping miners curb risk and profit, lenders liquidated these miners who could not pay their loans after the big price dip. Charlie Morris, bytetree.com’s founder believes that the situation is bullish for bitcoin and tweeted about the current events on Wednesday. Morris tweeted:

Bitcoin miners today sold 2,788 against 1,588 mined. Slamming the market, yet the market takes it. That is bullish.

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“47 days until selling pressure from miners cuts in half,” another individual tweeted observing the miners sell-off. “This is the primary source of sell pressure on the price of bitcoin — Time to drop some ballast and see how high we fly,” he added.

Further, not too long ago the crypto firm Tradeblock published a research report that estimates BTC prices need to be at least $12,500 by the time the network halves. Otherwise, miners will suffer a whole lot more than they are today, because revenues will be chopped in half instantly.

What do you think about miners selling bitcoins faster than they can create them? Let us know in the comments below.

 

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Market Update: Slew of Unknown Coins Has Seen Considerable Gains Since ‘Black Thursday’

Market Update: Slew of Unknown Coins Has Seen Considerable Gains Since 'Black Thursday'

The cryptocurrency economy has been slowly rising toward a $200 billion market capitalization again following the grueling global market carnage that started on March 12. Most of the top ten cryptos are closer to the prices they held before ‘Black Thursday’ and there’s also a slew of unknown coins that have seen considerable gains so far.

Also read: While You’re Under Quarantine, Check These Sites for Remote Crypto Jobs

Unknown Crypto Coins Shine During the Last 30 Days

The entire market valuation of all 5,000+ digital assets has been hovering between $180-195 billion as a number of cryptocurrencies have been consolidating. Not too long ago digital currencies took an extreme hit as global markets worldwide shuddered on March 12, 2020, otherwise known as ‘Black Thursday.’ 15 days later, crypto prices have regained some strength and roughly $25-30 billion has been added to the entire cryptoconomy. The top ten coins have done well but there’s a ton of unknown digital currencies moving up the ladder with great speed. In fact, a considerable number of cryptos have gained 50-1,520% in the last 30 days.

Market Update: Slew of Unknown Coins Has Seen Considerable Gains Since 'Black Thursday'
After March 11, 2020, $50 billion was shaved off of the cryptoconomy. The overall valuation of all 5,000+ coins in existence has been steadily moving up toward the $200 billion level.

Ti-value (TV) has gained a massive 1,520% in the last 30 days and the coin has gathered over 2,000% against BTC. The fork monero classic (XMC) is up 546% in 30 days. Streamr (DATA) is up 191%, mir coin (MIR) 190%, datum (DAT) 185%, cybervein (CVT) 139%, Numeraire (NMR) 119%, mktcoin (MLM) 94%, cloudbbric (CLB) 63%, and aditus (ADI) gained 62% in the last 30 days. All ten of those coins are Friday’s biggest gainers as all of them have gained far more value than the top ten contenders.

Market Update: Slew of Unknown Coins Has Seen Considerable Gains Since 'Black Thursday'
A list of 10 gainers and losers on March 27, 2020. Markets.Bitcoin.com has a comprehensive section dedicated to the biggest gainers and losers in crypto.

30-Day Biggest Losers and the Top Ten Standouts

Friday’s biggest 30-day losers include coins like super bitcoin (SBTC) which lost 94% in 30 days. Other big losers include kicktoken (KICK) 85%, bolt (BOLT) 80%, vouchforme (IPL) 77%, sophiatx (SPHTX) 75%, hydro protocol (HOT) 75%, and the mercury protocol (MER) 75%. Other notable losers are coins like 0xert (ZXC) 73%, 1world (1WO) 70%, and robotina (ROX) which is down 70% for the month.

Market Update: Slew of Unknown Coins Has Seen Considerable Gains Since 'Black Thursday'
The top ten cryptocurrency market cap according to markets.Bitcoin.com.

As far as the top ten is concerned, since ‘Black Thursday’ most coins still trade around 15-35% lower compared to before the carnage started. The biggest winner out of the top ten is bitcoinsv (SV) which is only down 15% since the market downturn started. BTC is down 16%, ETH 32%, XRP 19%, BCH 16%, LTC 20%, EOS 25%, BNB 23%, and XTZ has lost 35% since March 11.

What do you think of the recent crypto winners and losers? Let us know in the comments below.

The post Market Update: Slew of Unknown Coins Has Seen Considerable Gains Since ‘Black Thursday’ appeared first on Bitcoin News.

Bitcoin Hashrate Down 45% – Miners Witness Second-Largest Difficulty Drop in History

Bitcoin’s hashrate has plummeted 45% since the record-breaking levels it saw on Feb. 29. The hashrate touched an all-time high of 136 exahash per second (EH/s) but has since dropped to 75 EH/s. Moreover, the crypto network has seen the second-largest difficulty drop since October 2011.

Also read: While You’re Under Quarantine, Check These Sites for Remote Crypto Jobs

Bitcoin Hashrate Declines 45% Since All-Time High

The latest cryptoconomy price shift has capitulated a number of small mining operations and BTC’s overall hashrate has dropped 45% in 30 days. The price drop stemmed from the looming economic crisis scaring the entire world and BTC is hovering between $6,600-6,850 per coin. On Feb. 29, the network’s hashrate spiked to the highest level ever captured, reaching 136 EH/s. But during the last 30 days and especially since the infamous “Black Thursday” on March 12, BTC’s hashrate dropped to a low of 75 EH/s. Statistics show that miners paying above $0.05 per kilowatt-hour (kWh) are not seeing the best profits. Naturally, this has caused some operations to shut off miners, as they hope to re-enter when the price gets better.

Bitcoin Hashrate Down 45% - Miners Witness Second-Largest Difficulty Drop in History
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Second-Largest BTC Difficulty Drop

Miners leaving the system and the hashrate dropping 45% have caused the second largest BTC network difficulty drop since 2011. Basically, the network’s difficulty is a measure of how hard it is to find the hash beneath a specified target. The drop was around 15.5% after the difficulty went from 16.5 trillion to 13.9 trillion on Thursday. BTC’s difficulty is based on a two-week interval or 2,016 blocks, but it’s also affected a great deal when a large number of mining operations stop mining.

Bitcoin Hashrate Down 45% - Miners Witness Second-Largest Difficulty Drop in History

The last times BTC saw such a drastic difficulty dip were in December 2018 (15%) and October 2011 (around 18%). The price drop BTC experienced last week was the worst in years and it wasn’t nice for miners hoping for a bull run. Meanwhile, with the difficulty so low, a few crypto observers have noticed a lot more miners bouncing back and forth between the BCH and BTC networks. Both blockchains will see a block reward reduction during the next month and a half, as BCH will halve in 12 days on or around April 8. BTC will see its block subsidy chopped in half around 48 days from now on or around May 13.

What do you think about BTC’s hashrate dip and the plummeting network difficulty? Let us know in the comments section below.

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‘Overwhelming Evidence’ – Prosecutors File Motion to Dismiss Alleged Onecoin Lawyer’s Appeal

While Onecoin’s crypto queen Ruja Ignatova remains at large, U.S. resident Mark Scott is trying to get his verdict acquitted after being accused of helping Onecoin leaders, including Ignatova, launder money and commit fraud.

Also read: ‘What Bitcoin Did’ – Scanning the Hottest Cryptocurrency Keywords and Google Searches

NYSD prosecutors Cite Strong Evidence Against Lawyer Mark Scott

Filings from the New York Southern District Court (NYSD) reveal that the federal government’s prosecutors are not buying former attorney Mark Scott’s story. Scott used to work for the law firm Locke Lord but has recently been tried for allegedly helping Onecoin leaders launder $400 million in the British Virgin Islands. Ostensibly Scott worked with Ruja Ignatova otherwise known as the crypto queen and NYSD prosecutors allege he’s helped Onecoin associates since 2016. Last December Scott extended his motion to appeal while being on house arrest and recently filed for an acquittal.

U.S. resident and former Locke Lord LLP attorney Mark Scott is fighting charges against him that claim he helped Onecoin associates launder $400 million in the British Virgin Islands.

NYSD prosecutors responded to Scott’s recent motion and they have asked the judge to dismiss the case due to “overwhelming” evidence against him. Scott faces 50-years in prison for the charges and he will be stripped of his attorney license as well. Federal prosecutors believe Scott knew all about the fraud. The first charge will hand down 20 years for conspiracy to commit money laundering and Scott could get up to 30 years in prison for the conspiracy to commit bank fraud. NYSD’s arguments against Scott’s acquittal indicate they are confident Scott understood the funds he managed came from the Onecoin Ponzi scheme.

Crypto Queen Remains On the Run

Both of Ruja Ignatova’s main partners have been arrested and are facing trial. Her brother Konstantin Ignatov was recently taken into custody in Los Angeles at LAX airport and the Sweden-based Sebastian Greenwood has been arrested as well. Mark Scott, Konstantin Ignatov, Sebastian Greenwood, and many others are being charged with defrauding millions of Onecoin investors. Meanwhile, the infamous crypto queen has been on the run for well over a year and a half now and no one’s quite sure how long Ignatova can remain on the lam.

What do you think about the attorney Mark Scott and how NYSD prosecutors say the evidence against him is “overwhelming”? Let us know in the comments below.

 

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Printing Money from Thin Air – How the Fed Reduces Purchasing Power and Makes You Poorer

Printing Money from Thin Air - How the Fed Reduces Purchasing Power and Makes You Poorer

Unless you have your head in the sand, you’ve probably realized that governments and central banks can print money out of thin air and in unlimited amounts. The United States and the Federal Reserve have been creating money from nothing for years because they had exhausted all their monetary policies. Despite the fact that many Americans will be happy to get a $1,200 check from the Treasury, the move will essentially debase the U.S. dollar, reduce it’s purchasing power, and make every citizen poorer.

Also read: US Real Estate in Jeopardy – Analysts Predict Housing Market Crash to 29-Year Lows

The Multi Trillion-Dollar Stimulus Package

The big stimulus package has been approved and the Federal Reserve and the U.S. Treasury have already funneled trillions into the hands of financial incumbents. Further, these entities plan to send direct payments to each American as well. News.Bitcoin.com reported yesterday that a 2 trillion-dollar stimulus plan was in the making and some estimates say the package could end up being upwards of $6 trillion. Essentially, there’s certain criteria Americans have to fit financially and people making $75K or less annually will get a check for $1,200. People with children will also be eligible for $500 per child under the plan.

Unfortunately, people who are excited about this money do not understand how destructive it will be to their purchasing power. All the U.S. government is doing is copying the tactics of currency debasement used by every fallen empire before it, like the Byzantines and Romans. Moreover, a number of central banks worldwide are discussing giving checks to citizens. Financial institutions like the Bank of Canada has also promised to give Canadians $2k per resident. Canada’s biggest banks announced last week that they are offering relief to homeowners by allowing deferred payments on mortgages. However, the Canadian banks plan to just tack the deferred payment onto the back of the loans and profit with extra interest. U.S. banks are also planning to profit from people who can’t pay their mortgage loans on time as well by simply racking up the loan’s interest.

Central banks have several methods when it comes to tweaking the monetary system like increasing the amount available for loans and removing the deposit requirement banks have to hold to remain solvent. The Fed also issues Treasury bonds so private banks and foreign investors can purchase them but this tends to increase interest rates. So instead of having to pay more money back to the lenders, the Fed buys the Treasury bonds itself in order to drop the rate. When the Fed does this scheme (quantitative easing or QE) with securities, Treasuries, bonds, and equities, the Fed is essentially creating money out of thin air to bolster the economy in the short term. This move, in turn, reduces the value of USD because there is more money than the number of products and services. To-date the U.S. government’s deficit is around $23 trillion and the interest owed plus the trillions more created essentially creates an everlasting debt vacuum.

Printing Money from Thin Air - How the Fed Reduces Purchasing Power and Makes You Poorer

How the Money Printing Debases Currency, Causes Inflation, and Reduces Your Wealth

Basic economics clearly shows that the increase of any money supply causes inflation and reduces purchasing power. The reason for this is because a spike in demand exceeds supply causing the prices for everything to jump higher. Every fallen empire and every modern government today has always inflated the money supply and the ‘just print more’ attitude has been infectious.

Printing Money from Thin Air - How the Fed Reduces Purchasing Power and Makes You Poorer

Unfortunately, scholars and economists understand that today’s financial incumbents and U.S. politicians are addicted to selling debt to generations who are not even born yet. The last 30 years of so-called progress in America has stemmed from the revolving debt machine. Back in 2010, a group of well known economists wrote to former Fed Chair Ben Bernanke and told him how dangerous it was to continue the large-scale asset purchases (QE).

“We believe the Federal Reserve’s large-scale asset purchase plan (so-called “quantitative easing”) should be reconsidered and discontinued,” the economists warned. “We do not believe such a plan is necessary or advisable under current circumstances. The planned asset purchases risk currency debasement and inflation, and we do not think they will achieve the Fed’s objective of promoting employment.”

Printing Money from Thin Air - How the Fed Reduces Purchasing Power and Makes You Poorer

Raising Taxes, Austerity Measures and the ‘Biggest Budget Liability’

Politicians think they can cure the disease by just raising taxes on nearly everyone under the sun, but they claim they will take from the rich and corporations. To combat the rising inflation the common solution is higher taxes and increased austerity measures. When people ask why they can’t just print as much money as they want and just remove taxes, the question will not be answered. This is because bureaucrats expect you and future generations to pay for all of the debt with interest. A recent tweet from Coinshares executive, Meltem Demirors, notes how taxation is all part of the plan.

“The U.S. expects to collect close to $4T in taxes in 2021. Over 75% of it comes out of our paychecks – as individual income tax and payroll tax,” Demirors tweeted on Wednesday.

Printing Money from Thin Air - How the Fed Reduces Purchasing Power and Makes You Poorer

“Now like many people, the U.S. government spends more than it makes,” Demirors added. Before the recent turmoil, the U.S. government’s 2021 budget was expected to have a $966 billion deficit. Since we’ve been doing this for a while, the total national deficit is $23 trillion. It’s more than the entire GDP of the US in any given year (the sum of everything produced). If you add in unfunded liabilities, the number is closer to $120T $120T = $798k per taxpayer.” The Coinshares executive added:

35% of the U.S. workforce, boomers, are set to retire in the next decade. They also account for the biggest budget liability – relying on pensions, social security, medicare – money that simply ISN’T THERE.

After understanding that U.S. politicians and all governments simply print money out of thin air, many bitcoiners have opted out of the insane monetary system. This is because crypto advocates understand the importance of not only censorship-resistant money, but also a predictable, mathematical system that cannot be inflated on a whim. Central banks and the Fed like to keep the inflation rate around 2% but after the whole world just created trillions out of thin air that number is going to be much harder to control. BTC’s inflation rate, on the other hand, will be dropping to 1.8% after the halving in May.

What do you think about the Fed creating trillions of dollars out of thin air causing inflation, debasing the USD, and robbing taxpayers? Let us know what you think in the comments section below.

 

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