Kevin Hart Learns Bitcoin Is a Legit Investment, Not ‘Voodoo Money’ in an All-Star Telethon

Kevin Hart Learns Bitcoin Is a Legit Investment, Not 'Voodoo Money' in an All-Star Telethon

Popular actor Kevin Hart gave bitcoin a boost this weekend during an all-star telethon to benefit the Muscular Dystrophy Association (MDA). Hart told viewers that cryptocurrency is a legitimate investment right after he called it “voodoo money.”

Kevin Hart Shouts Out About Bitcoin and Cryptocurrency

American comedian, Hollywood actor, and producer Kevin Hart shouted out this weekend that bitcoin and other cryptocurrencies are legitimate investments during an online fundraiser he hosted for the benefit of the Muscular Dystrophy Association (MDA) and his Help From the Hart charity. The inaugural MDA Kevin Hart Kids Telethon, aired on Saturday, is the first telethon in six years for the MDA. The last host was famed comic and actor Jerry Lewis who died in 2017.

The event lasted over two hours and participants included many other celebrities, such as Leslie Mann, Josh Gad, Don Cheadle, DJ Khaled, Jack Black, Cindy Crawford, David Beckham, Usain Bolt, Robin Thicke, Adam Devine, Kelly Rowland, Michael B. Jordan, and Bryon Cranston. Hart himself has been in many movies and TV shows; he has 88 acting credits and 36 producer credits, according to IMDB.

During the telethon, actor Jay Ellis who helped man the phones supposedly got a call from someone asking about whether donations can be made in cryptocurrency. Ellis asked Hart: “Hey Kev, I’ve got someone who wants to know if we do bitcoin, ethereum, or any cryptocurrencies.”

Hart promptly responded: “I don’t take that voodoo money, we don’t take the voodoo, okay, so if you’re out there trying to give us the voodoo money…” While ranting on about bitcoin being voodoo money, he was interrupted by someone in his earpiece who set him straight. Hart then exclaimed:

What? We do take the voodoo … I’ve been told that we actually do take cryptocurrency. I’m being told that it’s a legitimate investment that’s worth almost $250 billion.

While Hart’s bitcoin stunt was most likely staged and his voodoo comment a joke, the crypto community views the event as very bullish and appreciate the exposure Hart brought bitcoin when he announced to a worldwide audience that cryptocurrency is a legit investment.

Currently, eight cryptocurrencies are accepted by the MDA through the Giving Block. They are bitcoin (BTC), ether (ETH), litecoin (LTC), bitcoin cash (BCH), zcash (ZEC), Gemini dollar (GUSD), basic attention token (BAT), and chainlink (LINK). Donors can also request additional cryptocurrencies. The telethon raised $10,548,454 during the evening but donations continued to roll in after the show. The organization has not disclosed how much cryptocurrency was donated.

What do you think about Kevin Hart’s bitcoin shoutout? Let us know in the comments section below.

The post Kevin Hart Learns Bitcoin Is a Legit Investment, Not ‘Voodoo Money’ in an All-Star Telethon appeared first on Bitcoin News.

$250 Trillion in Assets Looking for Ideal Store of Value: A Bull Case for Bitcoin

$250 Trillion in Assets Looking for Ideal Store of Value: A Bull Case for Bitcoin

The CEO of Nasdaq-listed billion-dollar company Microstrategy has made a strong bull case for bitcoin. He says there is a $250 trillion ocean of assets looking for the ideal store a value right now and bitcoin is a better store of value than gold or tech stocks, so “a lot of that monetary energy is going to flow from the asset ocean into the crypto pond.”

Comparing Bitcoin to Investing Early in Apple, Google, Facebook, Amazon

In a webcast with Hedgeye CEO Keith McCullough, aired last week, Microstrategy CEO Michael Saylor outlined a highly bullish case for bitcoin’s price. The Nasdaq-listed Microstrategy recently invested $425 million in bitcoin as its primary reserve asset.

Saylor began by explaining that he has always been a big tech investor. “The thing about technology is figuring out the thing that’s going to eat the world. If you’re right, own it, hold it, and wait,” he advised. The CEO gave the example of Apple, Google, Amazon, and Facebook, emphasizing repeatedly that it does not matter when you bought those tech stocks. “The truth of the matter is if you’d bought Google, Apple, Amazon, or Facebook at any point between 2010 and 2020 … I think it’s impossible to have lost money at any point for the decade … your investment mistake would be trying to time the market on those things.”

The Microstrategy CEO added: “Bitcoin is the first software network in the history of the world that can pull monetary energy, so these bitcoiners have figured out something that is really a thing of beauty and extraordinary value. They are pulling pure monetary energy on a network.” He elaborated:

If I take $100 million and I put it into bitcoin, it could sit there for a decade like in a battery. It won’t bleed out. You’re not losing 2% to 4% a year and I can put it in the palm of my hand and I can move it around the planet for a few dollars in a few minutes and we have never in the history of the world figured that out.

Bitcoin Is Not So Volatile

One classic objection investors have to investing in bitcoin is its volatility. Speaking on the subject, Saylor said he has been looking at the volatility of different assets over the last three, four, and five months. He looked at 30-year Treasuries, 10-year Treasuries, the NASDAQ, the Russell 2000, gold, silver, Apple, Amazon, Facebook, Google, and more. After comparing their volatility to bitcoin, Saylor concluded:

My unscientific view is on every single day at least half of those assets are more volatile than bitcoin. And on a lot of volatile days, I’ve seen 80% to 90% of them be more volatile than bitcoin.

“So I think there’s a historic narrative/belief. People think they know this is volatile but in fact, it’s not looking that volatile to me over the past three months. I don’t think over the next decade it’s going to have the same characteristics of volatility that it had over the last decade,” Saylor said.

The Microstrategy CEO proceeded to discuss how investors are using Apple’s stock as their store of value. “People are literally using Apple’s stock as a store of value because it’s deflationary. Apple is buying it back and they think Apple is not going anywhere and they’re desperate to flee [from] currency.” However, he pointed out that “Apple is more volatile than bitcoin for the past three months.”

Bitcoin Is a Better Store of Value than Apple’s Stock or Gold

Besides Apple’s stock, gold is still investors’ favorite store of value. However, Saylor explained that neither are as good as bitcoin as a store of value.

“The truth is Apple’s stock is not scarce. The executive team can and will eventually print more and if that doesn’t dilute you then they’ve got regulatory risk, competitive risk, [and] execution risk — a lot of moving parts … that’s why they’re not good over the long term,” he detailed. As for gold, he said: “if you put $100 million into gold and the gold miners print 2% to 3% more a year, let’s say 2% more, well, over 100 years you lose 88% of your purchasing power.”

The CEO explained that these stores of value worked in the past because there was no alternative. However, things have changed. “In the year 2020, you have a choice, you have a digital gold,” he declared. “They cannot make any more. Bitcoin miners are the friends of bitcoin owners. They’re not the enemy of bitcoin owners.” He explained that to store $100 million for 100 years, you will lose 85% of it under the best case if you put it in gold. “Under the likely case, you lose it all because the bank will fail, the country will fail, [or] somebody will seize it,” he claimed.

Saylor presented bitcoin as the best solution: “The reason that the bitcoin maximalists … are passionate and religious about this is because for the first time in human history you can take all of your wealth and your life force. You can put it into an asset. You can keep the keys. You can take custody of your million dollars, your hundred thousand dollars. No government, no bank can take it away from you. There’s nobody to tell you you can’t own your life force, and if you have hopes and aspirations for your family, for your religion, for your life, then you have the power to achieve those hopes and aspirations without asking the permission of a bank or a government or politician.”

The Microstrategy CEO then spoke about the trillions of dollars currently in alternative assets that function as stores of value, including gold, technology stocks, and bonds. He proclaimed:

There’s a $250 trillion ocean of assets. They are looking for the ideal store of value right now.

Maintaining that bitcoin is a better store of value than other assets he previously described, he emphasized: “bitcoin is digital gold. It’s better gold than gold and it’s a better store of value than big tech.” He believes that as investors understand this, “a lot of that monetary energy is going to flow from the asset ocean into the crypto pond and everybody that makes the transition is going to benefit.”

Do you agree with Michael Saylor’s vision for bitcoin? Let us know in the comments section below.

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How Hackers Exploited Twitter’s VPN Problems, Obtained God Mode and Took Over Accounts

How Hackers Exploited Twitter's VPN Problems, Obtained God Mode and Took Over Accounts

An investigation by the New York State Department of Financial Services has revealed how the great Twitter hack in July happened. A total of 130 high-profile, celebrity accounts were compromised and many were used to tweet about a bitcoin giveaway scam.

How Twitter Was Hacked

The New York State Department of Financial Services (NYDFS) released its Twitter investigation report last week. It explains how the massive Twitter hack on July 15 happened, resulting in many high-profile accounts being accessed and used to tweet about a bitcoin giveaway scam.

A NYSE-listed technology company with a market cap of $40 billion, Twitter has more than 330 million total monthly active users and over 186 million daily active users, including over 36 million (20%) in the U.S., the NYDFS detailed.

The hack began on July 14 when one or more hackers called several Twitter employees, claiming to be calling from the IT department’s help desk about Twitter’s VPN, which a number of employees reported having problems with. “Employees had frequent problems with the VPN connections to the network,” the report details.

Twitter’s VPN problem ballooned when the company shifted to remote working in March due to the Covid-19 outbreak, which put a strain on the company’s technology infrastructure, resulting in frequent VPN problems. “The hackers took advantage of these issues and pretended to be calling from Twitter’s IT department about a VPN problem,” the NYDFS stated, elaborating:

The hackers’ claims were far more credible – and ultimately successful – because Twitter’s employees were all using VPN connections to work and routinely experiencing VPN problems that required IT’s assistance.

The hackers directed the employees to a phishing website that looked identical to the legitimate Twitter VPN website and was hosted by a similarly named domain. “As the employee entered their credentials into the phishing website, the hackers would simultaneously enter the information into the real Twitter website. This false log-in generated an MFA notification requesting that the employees authenticate themselves, which some of the employees did,” the NYDFS explained. “While some employees reported the calls to Twitter’s internal fraud monitoring team, at least one employee believed the hackers’ lies.”

The report details that Twitter maintains “internal account management tools” to manage a range of user account issues, which the hackers gained access to. A number of authorized Twitter employees have a username and password to access these internal account management tools. According to the report:

Overall, 130 Twitter user accounts were compromised during the Twitter hack. Of those, 45 accounts were used to send tweets. Twitter believes that for up to 36 of the 130 targeted accounts, the hackers also accessed DM inboxes.

During its investigation, the NYDFS conducted a survey and learned that 15 cryptocurrency companies blocked transfers to the hackers’ addresses posted on Twitter, and seven did not. Four crypto companies actively blocked their users’ attempts to send BTC to the hackers’ bitcoin addresses. In particular, the NYDFS found:

Coinbase blocked approximately 5,670 transfers, valued at approximately $1,294,000. Square blocked 358 transfers, valued at approximately $51,000. Gemini blocked two transfers, valued at approximately $1,800. Bitstamp blocked one transfer, valued at approximately $250.

What do you think about this Twitter hack? Let us know in the comments section below.

The post How Hackers Exploited Twitter’s VPN Problems, Obtained God Mode and Took Over Accounts appeared first on Bitcoin News.

How Hackers Exploited Twitter’s VPN Problems, Obtained God Mode and Took Over Accounts

How Hackers Exploited Twitter's VPN Problems, Obtained God Mode and Took Over Accounts

An investigation by the New York State Department of Financial Services has revealed how the great Twitter hack in July happened. A total of 130 high-profile, celebrity accounts were compromised and many were used to tweet about a bitcoin giveaway scam.

How Twitter Was Hacked

The New York State Department of Financial Services (NYDFS) released its Twitter investigation report last week. It explains how the massive Twitter hack on July 15 happened, resulting in many high-profile accounts being accessed and used to tweet about a bitcoin giveaway scam.

A NYSE-listed technology company with a market cap of $40 billion, Twitter has more than 330 million total monthly active users and over 186 million daily active users, including over 36 million (20%) in the U.S., the NYDFS detailed.

The hack began on July 14 when one or more hackers called several Twitter employees, claiming to be calling from the IT department’s help desk about Twitter’s VPN, which a number of employees reported having problems with. “Employees had frequent problems with the VPN connections to the network,” the report details.

Twitter’s VPN problem ballooned when the company shifted to remote working in March due to the Covid-19 outbreak, which put a strain on the company’s technology infrastructure, resulting in frequent VPN problems. “The hackers took advantage of these issues and pretended to be calling from Twitter’s IT department about a VPN problem,” the NYDFS stated, elaborating:

The hackers’ claims were far more credible – and ultimately successful – because Twitter’s employees were all using VPN connections to work and routinely experiencing VPN problems that required IT’s assistance.

The hackers directed the employees to a phishing website that looked identical to the legitimate Twitter VPN website and was hosted by a similarly named domain. “As the employee entered their credentials into the phishing website, the hackers would simultaneously enter the information into the real Twitter website. This false log-in generated an MFA notification requesting that the employees authenticate themselves, which some of the employees did,” the NYDFS explained. “While some employees reported the calls to Twitter’s internal fraud monitoring team, at least one employee believed the hackers’ lies.”

The report details that Twitter maintains “internal account management tools” to manage a range of user account issues, which the hackers gained access to. A number of authorized Twitter employees have a username and password to access these internal account management tools. According to the report:

Overall, 130 Twitter user accounts were compromised during the Twitter hack. Of those, 45 accounts were used to send tweets. Twitter believes that for up to 36 of the 130 targeted accounts, the hackers also accessed DM inboxes.

During its investigation, the NYDFS conducted a survey and learned that 15 cryptocurrency companies blocked transfers to the hackers’ addresses posted on Twitter, and seven did not. Four crypto companies actively blocked their users’ attempts to send BTC to the hackers’ bitcoin addresses. In particular, the NYDFS found:

Coinbase blocked approximately 5,670 transfers, valued at approximately $1,294,000. Square blocked 358 transfers, valued at approximately $51,000. Gemini blocked two transfers, valued at approximately $1,800. Bitstamp blocked one transfer, valued at approximately $250.

What do you think about this Twitter hack? Let us know in the comments section below.

The post How Hackers Exploited Twitter’s VPN Problems, Obtained God Mode and Took Over Accounts appeared first on Bitcoin News.

Kanye West: Bitcoiners Know the True Liberation of America and Humanity

Kanye West: Bitcoiners Know the True Liberation of America and Humanity

U.S. presidential candidate Kanye West professed his respect for bitcoiners during a podcast interview with Joe Rogan. He says bitcoiners “really have a perspective on what the true liberation of America and humanity will be.”

Kanye West and Bitcoin

Kanye West is one of the world’s best-selling musicians, having sold over 140 million records worldwide. He announced in July that he is running for President of the United States this year. In a podcast interview with Joe Rogan, published on Saturday, West confirmed that he is still in the running.

“There’s a possibility that I could [win]. It’s actually technically possible for me to win now which would be the best option for America,” he told Rogan. West said that he is on the ballot in 12 states and voters in 17 other states can write him in. “I could possibly win now,” he claimed, emphasizing that he will “definitely” win in the next presidential election in 2024.

When asked about bitcoin, West described, “Jack Dorsey decentralized Twitter two months before it really hit because he was talking to the Bitcoin guys,” adding:

And these are guys that really have a perspective on what the true liberation of America and humanity will be.

“Specifically these guys … a lot of tech guys were able to use the new … information highways and create the next frontier of our existence,” he continued.

Furthermore, West revealed that some people have suggested for him to run for the governor of California. “If it’s in God’s plan that part of my path is to be the governor then that’s fine but my calling is to be the leader of the free world,” he affirmed.

Do you want Kanye West to be the U.S. president? Let us know in the comments section below.

The post Kanye West: Bitcoiners Know the True Liberation of America and Humanity appeared first on Bitcoin News.

‘I Don’t See What’s Going to Stop Bitcoin From Appreciating,’ Says Commodity Analyst

Analyst Says 'I Don’t See What’s Going to Stop Bitcoin From Appreciating'

A senior strategist with Bloomberg Intelligence says that he does not see what’s going to stop bitcoin from appreciating. He explains that as bitcoin matures, it will trade more like gold than stocks. The strategist also shares his view on how the November presidential election could affect the price of bitcoin.

Bitcoin Will Keep on Appreciating

Bloomberg Intelligence’s senior commodity strategist Mike McGlone told Kitco News on Thursday that he does not see what will stop bitcoin from appreciating in value. Discussing the stock market outlook, the gold market, and cryptocurrencies, he was quoted as saying:

The key thing about bitcoin is that I don’t see what’s going to stop it from doing what it has been doing for most of its life, and that’s appreciating.

McGlone pointed out that bitcoin’s price “has a history of adding zeros,” going from $100 to $1,000 and then $10,000. He noted that the price of the cryptocurrency has been consolidating for the past three years.

The strategist believes that as bitcoin matures, it will trade more like gold, which is a store of value, and less like stocks, which are risky assets. He noted that bitcoin and gold have a close correlation with each other this year, which he believes will hold. He further said that the same macroeconomic forces pushing gold higher are also likely to drive the price of bitcoin.

McGlone explained that signs of maturity for bitcoin include more adoption, lower volatility, and trading patterns that are more similar to that of gold. “Bitcoin is following gold, gold’s made new highs, but its macroeconomic environment I think is quite significant: unprecedented debt to GDP, quantitative easing, negative rates, it makes things like gold and bitcoin look attractive,” he detailed.

The Bloomberg strategist reiterated that “Higher prices actually increase demand” but there is no increase in the supply of bitcoin. While cautioning that bitcoin can expect resistance at the $14,000 price level in the short term, McGlone believes that if Joe Biden wins the November presidential election, “A Blue Wave would provide further tailwinds to the price.”

Do you think anything will stop bitcoin? Let us know in the comments section below.

The post ‘I Don’t See What’s Going to Stop Bitcoin From Appreciating,’ Says Commodity Analyst appeared first on Bitcoin News.

Billionaire Paul Tudor Jones Sees Massive Upside in Bitcoin, Like Investing in Apple or Google Early

Billionaire Paul Tudor Jones Sees Massive Upside in Bitcoin, Like Investing in Apple or Google Early

American billionaire hedge fund manager Paul Tudor Jones has recently become more bullish on bitcoin. He declared the cryptocurrency the best hedge against inflation and compares investing in bitcoin now to investing in early tech stocks, like Apple and Google. “I think we are in the first inning of bitcoin and it’s got a long way to go,” he said.

Paul Tudor Jones Increasingly Bullish on Bitcoin

Paul Tudor Jones explained why he is more bullish on bitcoin now in an interview with CNBC Squawk Box on Thursday. Jones founded Tudor Investment Corp., an asset management firm headquartered in Stamford, Connecticut. He became famous after predicting and profiting from the 1987 stock market crash.

The billionaire investor caught the attention of the crypto community back in May when he revealed on the show that he had invested about 2% of his assets in bitcoin. Now, four months later, bitcoin’s price has rallied more than 46% and there has been a string of bullish news, such as the recent announcement by Paypal to support cryptocurrencies, including bitcoin, on its platform.

Jones was asked if these developments have changed his BTC investment decisions, particularly whether he was buying more BTC or selling some. He clarified by reiterating his reason for liking bitcoin and recommending to his clients early this year. “Back in March and April, it became really apparent, given the monetary policy that was being pursued by the Fed, the incredible quantitative easing they were doing and other central banks were doing, that we were in an unprecedented time,” he explained. Noting additional problems brought about by the Covid-19 pandemic, he said, “one had to begin to think about how you defend yourself against inflation.” The Federal Reserve has also announced a major policy shift to push up inflation.

The founder of Tudor Investment Corp. continued to explain that he recommended bitcoin as an inflation trade, like gold, copper, the S&P GSCI commodity index, and being long the yield curve. He added:

I came to the conclusion that bitcoin was going to be the best of inflation trades, the defensive trades that you would take.

He then outlined why bitcoin is better than other assets for hedging against inflation. Examining the overall market caps and characteristics of all inflation trades, he said that bitcoin has “a very small coterie of people investing in it, it was portable, it was liquid, had a variety of characteristics that made it a great inflation hedge.” While Jones pointed out that “The one thing it [bitcoin] didn’t have is it didn’t have integrity and long-term staying power,” he emphasized that “every day that goes by, of course, it gains on that. It gains on credibility and integrity.”

The billionaire hedge fund manager admitted that he did not appreciate what bitcoin had when he said he invested about 2% in the cryptocurrency back in May. “I didn’t appreciate and now I know what it must feel like to be a tech investor, remember, I don’t really trade individual stocks,” he conceded. Affirming that he is “just a macro trader,” Jones asserted:

Bitcoin has a lot of the characteristics of being an early investor in a tech company … like investing with Steve Jobs and Apple, or investing in Google early.

Jones further revealed: “I’ve got a small single-digit investment in bitcoin. That’s it. I am not a bitcoin flag bearer.”

After recommending bitcoin and revealing his holdings in May, Paul Tudor Jones said he got “besieged by God knows how many different people on bitcoin.” Admitting that he did not know it at the time, he said: “But what I learned was, and what I was so surprised by is that bitcoin has this enormous contingent of really, really smart and sophisticated people who believe in it.” He explained that bitcoin has supporters, crowd-sourced from all over the world, who are “dedicated to seeing bitcoin succeed in it becoming a commonplace store of value, and transactional to boot, at a very basic level.”

Proclaiming that he “never had an inflation hedge where you have a kicker that you also have great intellectual capital behind it,” he said it “makes me even more constructive on” bitcoin. Jones concluded:

I like bitcoin even more now than I did then. I think we are in the first inning of bitcoin and it’s got a long way to go.

What do you think about Paul Tudor Jones’ bitcoin advice? Let us know in the comments section below.

The post Billionaire Paul Tudor Jones Sees Massive Upside in Bitcoin, Like Investing in Apple or Google Early appeared first on Bitcoin News.

Billionaire Paul Tudor Jones Sees Massive Upside in Bitcoin, Like Investing in Apple or Google Early

Billionaire Paul Tudor Jones Sees Massive Upside in Bitcoin, Like Investing in Apple or Google Early

American billionaire hedge fund manager Paul Tudor Jones has recently become more bullish on bitcoin. He declared the cryptocurrency the best hedge against inflation and compares investing in bitcoin now to investing in early tech stocks, like Apple and Google. “I think we are in the first inning of bitcoin and it’s got a long way to go,” he said.

Paul Tudor Jones Increasingly Bullish on Bitcoin

Paul Tudor Jones explained why he is more bullish on bitcoin now in an interview with CNBC Squawk Box on Thursday. Jones founded Tudor Investment Corp., an asset management firm headquartered in Stamford, Connecticut. He became famous after predicting and profiting from the 1987 stock market crash.

The billionaire investor caught the attention of the crypto community back in May when he revealed on the show that he had invested about 2% of his assets in bitcoin. Now, four months later, bitcoin’s price has rallied more than 46% and there has been a string of bullish news, such as the recent announcement by Paypal to support cryptocurrencies, including bitcoin, on its platform.

Jones was asked if these developments have changed his BTC investment decisions, particularly whether he was buying more BTC or selling some. He clarified by reiterating his reason for liking bitcoin and recommending to his clients early this year. “Back in March and April, it became really apparent, given the monetary policy that was being pursued by the Fed, the incredible quantitative easing they were doing and other central banks were doing, that we were in an unprecedented time,” he explained. Noting additional problems brought about by the Covid-19 pandemic, he said, “one had to begin to think about how you defend yourself against inflation.” The Federal Reserve has also announced a major policy shift to push up inflation.

The founder of Tudor Investment Corp. continued to explain that he recommended bitcoin as an inflation trade, like gold, copper, the S&P GSCI commodity index, and being long the yield curve. He added:

I came to the conclusion that bitcoin was going to be the best of inflation trades, the defensive trades that you would take.

He then outlined why bitcoin is better than other assets for hedging against inflation. Examining the overall market caps and characteristics of all inflation trades, he said that bitcoin has “a very small coterie of people investing in it, it was portable, it was liquid, had a variety of characteristics that made it a great inflation hedge.” While Jones pointed out that “The one thing it [bitcoin] didn’t have is it didn’t have integrity and long-term staying power,” he emphasized that “every day that goes by, of course, it gains on that. It gains on credibility and integrity.”

The billionaire hedge fund manager admitted that he did not appreciate what bitcoin had when he said he invested about 2% in the cryptocurrency back in May. “I didn’t appreciate and now I know what it must feel like to be a tech investor, remember, I don’t really trade individual stocks,” he conceded. Affirming that he is “just a macro trader,” Jones asserted:

Bitcoin has a lot of the characteristics of being an early investor in a tech company … like investing with Steve Jobs and Apple, or investing in Google early.

Jones further revealed: “I’ve got a small single-digit investment in bitcoin. That’s it. I am not a bitcoin flag bearer.”

After recommending bitcoin and revealing his holdings in May, Paul Tudor Jones said he got “besieged by God knows how many different people on bitcoin.” Admitting that he did not know it at the time, he said: “But what I learned was, and what I was so surprised by is that bitcoin has this enormous contingent of really, really smart and sophisticated people who believe in it.” He explained that bitcoin has supporters, crowd-sourced from all over the world, who are “dedicated to seeing bitcoin succeed in it becoming a commonplace store of value, and transactional to boot, at a very basic level.”

Proclaiming that he “never had an inflation hedge where you have a kicker that you also have great intellectual capital behind it,” he said it “makes me even more constructive on” bitcoin. Jones concluded:

I like bitcoin even more now than I did then. I think we are in the first inning of bitcoin and it’s got a long way to go.

What do you think about Paul Tudor Jones’ bitcoin advice? Let us know in the comments section below.

The post Billionaire Paul Tudor Jones Sees Massive Upside in Bitcoin, Like Investing in Apple or Google Early appeared first on Bitcoin News.

China Drafts Law to Legalize Digital Yuan, Outlawing Competitors

China Drafts Law to Legalize Digital Yuan, Outlawing Competitors

China’s central bank, the People’s Bank of China (PBOC), has drafted a law to legalize the digital yuan and outlaw digital currencies issued by anyone else competing with it. Meanwhile, the central bank has been cracking down on gambling sites that use the stablecoin tether.

China Drafts Law to Recognize Digital Yuan

The People’s Bank of China published a draft law on Friday that gives legal status to its central bank digital currency (CBDC), the digital yuan. The central bank has also begun a public consultation on the draft law; comments can be submitted through Nov. 23.

“The legal currency of the People’s Republic of China is Renminbi [RMB],” the draft law states, adding:

RMB includes physical form and digital form … No unit or individual may produce or sell tokens, coupons and digital tokens to replace RMB in circulation in the market.

The wording of the law seems to target yuan-pegged stablecoins but the prohibition could also include other digital currencies the PBOC views as threatening to the RMB.

China has been heavily testing the digital yuan. A public test was recently launched in Shenzhen where the authorities gave away 200 yuan (about $30) to 50,000 residents to spend at 3,389 stores.

China Cracks Down on Gambling Sites

In a Wechat post published Friday, the central bank outlined its efforts cracking down on cross-border gambling sites that enable Chinese citizens to transfer money abroad, bypassing China’s capital controls.

According to the post, the People’s Bank of China recently assisted local police in Huizhou city with cracking down on cross-border online gambling sites that allegedly use tether (USDT) to launder money. Three gambling sites, handling almost 120 million yuan, were shut down and 77 suspects were arrested.

What do you think about China stifling competitors to the digital yuan? Let us know in the comments section below.

The post China Drafts Law to Legalize Digital Yuan, Outlawing Competitors appeared first on Bitcoin News.

‘Bitcoin’s No Longer Optional’ — What Investors Say About Paypal Launching Crypto Services

'Bitcoin's No Longer Optional' — What Investors Say About Paypal Launching Crypto Services

Paypal launching cryptocurrency services has given crypto investors much to think about. While many crypto users view the news as extremely bullish, some point out several areas of concern bitcoin investors should be aware of.

‘Every Major Bank Is Having a Meeting About How To Support Bitcoin’

The news of Paypal launching a service that will enable customers to buy, hold, and sell cryptocurrencies directly from their Paypal accounts has triggered much discussion within the crypto industry. Users will also be able to pay for goods and services at 26 million stores that accept Paypal as a form of payment with the cryptocurrencies in their Paypal accounts.

The crypto industry has largely viewed the news as extremely bullish, sending the price of bitcoin above $13,000. Virgin Galactic chairman Chamath Palihapitiya tweeted in response to the Paypal news Wednesday:

After Paypal’s news, every major bank is having a meeting about how to support bitcoin. It’s no longer optional.

Regulations in the U.S. permit banks to provide cryptocurrency services. The U.S. Office of the Comptroller of the Currency (OCC) has already confirmed that federal banks are allowed to provide cryptocurrency custody services.

Messari founder Ryan Selkis tweeted: “Finally. Paypal joins the bitcoin space race … 346 million users … 26 million merchants … 20th largest ‘bank’ by deposits. Between them, Square, and Grayscale, it’s safe to assume that all remaining BTC will be hoovered up by public companies.” Recently, Square Inc. announced that it had put 1% of the company’s total asset into bitcoin, worth about $50 million. Grayscale Investments has been scooping up bitcoin, adding $1 billion to its crypto products in Q3.

Twitter user Vijay Boyapati opined: “It did not escape Paypal’s notice that Square was making a very large fraction of its profit allowing users to trade bitcoin. More and more financial institutions and payment processors will figure this out soon. The fiat on-ramps are getting bigger quickly.”

Users Cannot Transfer Crypto Out of Paypal

Some people are concerned about Paypal’s policy to disallow users from transferring cryptocurrencies in or out of its platform. The company detailed:

Currently, you can only hold the cryptocurrencies that you buy on Paypal in your account. Additionally, the crypto in your account cannot be transferred to other accounts on or off Paypal … You own the crypto you buy on Paypal but will not be provided with a private key.

Twitter handle “Plan B,” known for his stock-to-flow bitcoin price prediction model, wrote: “Crypto in (the Paypal) account cannot be transferred to other accounts on or off Paypal. So, this is all a big Paypal nothing burger, just entries in a central Paypal database, nothing to do with bitcoin.”

Lawyer Jake Chervinsky similarly cautioned: “Look, I understand the temptation to just be excited about Paypal & ignore the fact that they prohibit transfers to other accounts & withdrawals to self-custody. But if you can’t hold your own keys, is it even bitcoin? How much will we sacrifice in the name of ‘number go up?'”

Twitter user Hope Freiheit was not impressed by Paypal’s announcement, stating: “They won’t even allow users to withdraw the bitcoin they buy – it’s just a closed platform for speculation, likely with the users getting charged an arm and leg with fees. Bitcoin doesn’t need Paypal.”

Spending Crypto Is a Taxable Event

Some people questioned the tax implications of spending cryptocurrencies from their Paypal accounts. “Cryptocurrencies like bitcoin are treated as property per IRS rules. This means every time you sell, exchange, or dispose of cryptocurrency to buy something, there’s a taxable event,” Shehan Chandrasekera of Cointracker wrote. Citing that Paypal stated that users “will be able to instantly convert their selected cryptocurrency balance to fiat currency, with certainty of value and no incremental fees,” he explained:

This means every time users buy a good or service from a merchant, Paypal will automatically convert the cryptocurrency to fiat, thereby triggering a taxable obligation for the consumer.

What do you think about Paypal launching crypto services? Let us know in the comments section below.

The post ‘Bitcoin’s No Longer Optional’ — What Investors Say About Paypal Launching Crypto Services appeared first on Bitcoin News.

‘Bitcoin’s No Longer Optional’ — What Investors Say About Paypal Launching Crypto Services

'Bitcoin's No Longer Optional' — What Investors Say About Paypal Launching Crypto Services

Paypal launching cryptocurrency services has given crypto investors much to think about. While many crypto users view the news as extremely bullish, some point out several areas of concern bitcoin investors should be aware of.

‘Every Major Bank Is Having a Meeting About How To Support Bitcoin’

The news of Paypal launching a service that will enable customers to buy, hold, and sell cryptocurrencies directly from their Paypal accounts has triggered much discussion within the crypto industry. Users will also be able to pay for goods and services at 26 million stores that accept Paypal as a form of payment with the cryptocurrencies in their Paypal accounts.

The crypto industry has largely viewed the news as extremely bullish, sending the price of bitcoin above $13,000. Virgin Galactic chairman Chamath Palihapitiya tweeted in response to the Paypal news Wednesday:

After Paypal’s news, every major bank is having a meeting about how to support bitcoin. It’s no longer optional.

Regulations in the U.S. permit banks to provide cryptocurrency services. The U.S. Office of the Comptroller of the Currency (OCC) has already confirmed that federal banks are allowed to provide cryptocurrency custody services.

Messari founder Ryan Selkis tweeted: “Finally. Paypal joins the bitcoin space race … 346 million users … 26 million merchants … 20th largest ‘bank’ by deposits. Between them, Square, and Grayscale, it’s safe to assume that all remaining BTC will be hoovered up by public companies.” Recently, Square Inc. announced that it had put 1% of the company’s total asset into bitcoin, worth about $50 million. Grayscale Investments has been scooping up bitcoin, adding $1 billion to its crypto products in Q3.

Twitter user Vijay Boyapati opined: “It did not escape Paypal’s notice that Square was making a very large fraction of its profit allowing users to trade bitcoin. More and more financial institutions and payment processors will figure this out soon. The fiat on-ramps are getting bigger quickly.”

Users Cannot Transfer Crypto Out of Paypal

Some people are concerned about Paypal’s policy to disallow users from transferring cryptocurrencies in or out of its platform. The company detailed:

Currently, you can only hold the cryptocurrencies that you buy on Paypal in your account. Additionally, the crypto in your account cannot be transferred to other accounts on or off Paypal … You own the crypto you buy on Paypal but will not be provided with a private key.

Twitter handle “Plan B,” known for his stock-to-flow bitcoin price prediction model, wrote: “Crypto in (the Paypal) account cannot be transferred to other accounts on or off Paypal. So, this is all a big Paypal nothing burger, just entries in a central Paypal database, nothing to do with bitcoin.”

Lawyer Jake Chervinsky similarly cautioned: “Look, I understand the temptation to just be excited about Paypal & ignore the fact that they prohibit transfers to other accounts & withdrawals to self-custody. But if you can’t hold your own keys, is it even bitcoin? How much will we sacrifice in the name of ‘number go up?'”

Twitter user Hope Freiheit was not impressed by Paypal’s announcement, stating: “They won’t even allow users to withdraw the bitcoin they buy – it’s just a closed platform for speculation, likely with the users getting charged an arm and leg with fees. Bitcoin doesn’t need Paypal.”

Spending Crypto Is a Taxable Event

Some people questioned the tax implications of spending cryptocurrencies from their Paypal accounts. “Cryptocurrencies like bitcoin are treated as property per IRS rules. This means every time you sell, exchange, or dispose of cryptocurrency to buy something, there’s a taxable event,” Shehan Chandrasekera of Cointracker wrote. Citing that Paypal stated that users “will be able to instantly convert their selected cryptocurrency balance to fiat currency, with certainty of value and no incremental fees,” he explained:

This means every time users buy a good or service from a merchant, Paypal will automatically convert the cryptocurrency to fiat, thereby triggering a taxable obligation for the consumer.

What do you think about Paypal launching crypto services? Let us know in the comments section below.

The post ‘Bitcoin’s No Longer Optional’ — What Investors Say About Paypal Launching Crypto Services appeared first on Bitcoin News.

Goldman Sachs to Settle Massive Corruption Case for $2.8 Billion With US Government

Goldman Sachs to Settle Massive Corruption Case for $2.8 Billion With US Government

Goldman Sachs has reportedly agreed to settle with the U.S. government over its role in a corrupt Malaysian government investment fund, which is one of the firm’s worst scandals since the financial crisis. In addition, Goldman Sachs previously agreed to pay the Malaysian government billions of dollars to end a criminal probe.

Goldman Sachs’ Billions of Dollars in Settlement

Goldman Sachs Group Inc. has agreed to pay about $2.8 billion to the U.S. Department of Justice (DOJ) to settle a case involving a corrupt Malaysian government investment fund, the Wall Street Journal reported Tuesday. This is in addition to the $3.9 billion settlement the firm agreed to pay the Malaysian government over the same case.

Under the agreement with the DOJ, Goldman Sachs will admit fault but will not face prosecution, the publication noted, citing people familiar with the matter. The firm’s Asian subsidiary tied to the misconduct is expected to plead guilty this week. The deal will allow Goldman Sachs to avoid a guilty plea that could cripple its ability to do business.

The case involves 1Malaysia Development Berhad (also known as 1MDB) which was set up in 2009 by former Malaysian Prime Minister Najib Razak to promote the country’s economic development. The state-owned fund has been under heavy scrutiny for its suspicious financial transactions, money laundering, fraud, and theft. Razak was found guilty of the scandal in July and sentenced to 12 years in prison and fined $49 million. He additionally received 10 years of jail on six charges, including money laundering.

Goldman Sachs helped sell $6.5 billion in bonds for the fund in 2012 and 2013, earning higher fees than is typical for this kind of work, the publication detailed. The media calls the scheme one of Goldman Sachs’ worst scandals since the financial crisis. The U.S. Department of Justice alleges that $4.5 billion was misappropriated from the fund. The Malaysian government dropped criminal charges against three Goldman Sachs units after the bank agreed to pay $3.9 billion to settle the probe.

The prosecutors say that most of the money that went missing was allegedly stolen by Jho Low, the fund’s adviser, and his associates. For years, Goldman Sachs blamed rogue employees, two senior bankers who were criminally charged in the matter. The firm’s top banker on the deal, Timothy Leissner, admitted in 2018 to violating money-laundering and bribery laws while working closely with Low to engineer the theft.

According to Reuters, Goldman Sachs has been investigated by regulators in at least 14 countries, including the U.S., Malaysia, and Singapore over its involvement in the case. Goldman Sachs will pay the U.S. Department of Justice about $2.2 billion in penalties and return $600 million it earned in fees from working with 1MDB. However, the firm could offset some of that amount with fines paid to other authorities and agencies.

What do you think about Goldman Sachs’ corruption scandal? Let us know in the comments section below.

The post Goldman Sachs to Settle Massive Corruption Case for $2.8 Billion With US Government appeared first on Bitcoin News.

Hackers Donate Bitcoin From Ransomware Attacks to Charities

Hackers Donate Bitcoin From Ransomware Attacks to Charities

A group of hackers has donated some of the bitcoin it extorted via ransomware attacks to charities, claiming that it wants to “make the world a better place.” However, the law says donations from ill-gotten gains must be rejected but charities have no way of returning donated bitcoin to the hackers.

Hackers Donate Bitcoin to Charities

A group of hackers known as “Darkside” has surprised the world by donating a portion of the proceeds from ransomware attacks to two charities, the BBC reported Monday, adding that the group is relatively new on the scene. Darkside hackers claim to have extorted cryptocurrencies worth millions of dollars from companies.

Claiming that they now want to “make the world a better place,” the group donated 0.88 BTC, worth about $10,000, from their ransomware proceeds to two charities: The Water Project and Children International. The Water Project works to improve access to clean water in sub-Saharan Africa while Children International fights poverty and helps children in need.

The Darkside hacker gang posted the tax receipts for its 0.88 BTC donations in a blog post on the dark web on Oct. 13. The hackers claim that they only attack large, profitable companies with ransomware and would not attack hospitals, schools, governments, or charities.

Experts question the hackers’ motive. “What the criminals hope to achieve by making these donations is not at all clear,” said Brett Callow, a threat analyst at cyber-security company Emsisoft. “Perhaps it helps assuage their guilt? Or perhaps for egotistical reasons they want to be perceived as Robin Hood-like characters rather than conscienceless extortionists.” He elaborated:

Whatever their motivations, it’s certainly a very unusual step and is, as far as I know, the first time a ransomware group has donated a portion of their profits to charity.

However, when the donation comes from crime proceeds, the law says it must be rejected. Both charities have said that they will not accept the BTC donations, but the problem is that they have no way of returning them. The hackers used a U.S.-based service called The Giving Block, which is used by 67 different non-profits worldwide, to make the donations. The company says that the money was sent through a mixer.

Philip Gradwell, Chief Economist at blockchain data analytics firm Chainalysis, commented: “If you walked into a charity shop with an anonymous mask on and donated £10,000 in cash, then asked for a taxable receipt, questions should probably be asked – and it’s no different.”

What do you think about hackers donating bitcoin to charities? Let us know in the comments section below.

The post Hackers Donate Bitcoin From Ransomware Attacks to Charities appeared first on Bitcoin News.

Hackers Donate Bitcoin From Ransomware Attacks to Charities

Hackers Donate Bitcoin From Ransomware Attacks to Charities

A group of hackers has donated some of the bitcoin it extorted via ransomware attacks to charities, claiming that it wants to “make the world a better place.” However, the law says donations from ill-gotten gains must be rejected but charities have no way of returning donated bitcoin to the hackers.

Hackers Donate Bitcoin to Charities

A group of hackers known as “Darkside” has surprised the world by donating a portion of the proceeds from ransomware attacks to two charities, the BBC reported Monday, adding that the group is relatively new on the scene. Darkside hackers claim to have extorted cryptocurrencies worth millions of dollars from companies.

Claiming that they now want to “make the world a better place,” the group donated 0.88 BTC, worth about $10,000, from their ransomware proceeds to two charities: The Water Project and Children International. The Water Project works to improve access to clean water in sub-Saharan Africa while Children International fights poverty and helps children in need.

The Darkside hacker gang posted the tax receipts for its 0.88 BTC donations in a blog post on the dark web on Oct. 13. The hackers claim that they only attack large, profitable companies with ransomware and would not attack hospitals, schools, governments, or charities.

Experts question the hackers’ motive. “What the criminals hope to achieve by making these donations is not at all clear,” said Brett Callow, a threat analyst at cyber-security company Emsisoft. “Perhaps it helps assuage their guilt? Or perhaps for egotistical reasons they want to be perceived as Robin Hood-like characters rather than conscienceless extortionists.” He elaborated:

Whatever their motivations, it’s certainly a very unusual step and is, as far as I know, the first time a ransomware group has donated a portion of their profits to charity.

However, when the donation comes from crime proceeds, the law says it must be rejected. Both charities have said that they will not accept the BTC donations, but the problem is that they have no way of returning them. The hackers used a U.S.-based service called The Giving Block, which is used by 67 different non-profits worldwide, to make the donations. The company says that the money was sent through a mixer.

Philip Gradwell, Chief Economist at blockchain data analytics firm Chainalysis, commented: “If you walked into a charity shop with an anonymous mask on and donated £10,000 in cash, then asked for a taxable receipt, questions should probably be asked – and it’s no different.”

What do you think about hackers donating bitcoin to charities? Let us know in the comments section below.

The post Hackers Donate Bitcoin From Ransomware Attacks to Charities appeared first on Bitcoin News.

Hotel Bitcoin ATMs on the Rise With Addition of Swiss Hotel Dolder Grand

Hotel Bitcoin ATMs on the Rise With Addition of Swiss Hotel Dolder Grand

The number of hotels with a bitcoin ATM on-site is growing in Switzerland. The latest announcement came from The Dolder Grand, a luxury hotel and spa in Zurich, which recently installed a crypto ATM supporting four cryptocurrencies.

Bitcoin ATMs Gaining Popularity in Hotels

The Dolder Grand announced Monday that a cryptocurrency ATM has been installed at the hotel for guests to buy and sell cryptocurrencies on-site. The announcement states:

As of now, guests of the Zurich Hotel Dolder Grand can buy and sell cryptocurrencies on site – conveniently at the crypto ATM. This is made possible by a device from the Swiss cryptocurrency financial specialist Värdex Suisse.

Hotel guests can use the machine to buy four cryptocurrencies — bitcoin, bitcoin cash, litecoin, and ethereum — with Swiss francs and euros. They can also sell BTC for Swiss francs.

The Dolder Grand started accepting bitcoin for overnight stays, food, drinks, and spa treatments last year. According to the announcement:

The demand for cryptocurrencies has increased significantly since the outbreak of the coronavirus crisis. Many use the Värdex machines to gain initial experience with cryptocurrencies.

The crypto ATM installed at The Dolder Grand is operated by Värdex Suisse, which has the largest network of cryptocurrency ATMs in Switzerland. Founded in 2017, Värdex is a spin-off from Bitcoin Suisse AG. Based in Zug’s crypto valley, the company is a regulated Swiss financial intermediary.

Värdex Suisse has installed crypto ATMs at about 70 locations in Switzerland. According to the cryptocurrency ATM tracking website Coinatmradar, there are currently 102 crypto ATMs in Switzerland, making it the country with the sixth-highest number of cryptocurrency ATMs.

Besides The Dolder Grand, other hotels that have a Värdex Suisse cryptocurrency ATM installed include Hotel 46a, Parkhotel, Hôtel Régina, Hilton Zurich Airport, and Hotel Hecht Gottlieben. The company says that hotel guests “actively take advantage of the opportunity to easily buy and sell cryptocurrencies at ATMs.”

Do you think all hotels should have a bitcoin ATM? Let us know in the comments section below.

The post Hotel Bitcoin ATMs on the Rise With Addition of Swiss Hotel Dolder Grand appeared first on Bitcoin News.

Digital Ruble: Russia Unveils Plans to Test Central Bank Digital Currency

Digital Ruble: Russia Unveils Plans to Test Central Bank Digital Currency

As China is actively testing its digital yuan, Russia is now planning to build and test a central bank digital currency, the digital ruble. Meanwhile, the Bank of Russia has proposed limiting the amount of bitcoin retail investors can buy.

Russia’s Central Bank Plans Digital Ruble

The central bank of Russia has outlined its plans to conduct an experiment using the digital ruble with a limited number of participants after public consultations, Izvestia publication reported last week. The Bank of Russia announced the development of the digital ruble and public consultations on its issuance on Oct. 13. Public comments on the issuance of the digital ruble are accepted until Dec. 31.

Five Russian banks have already expressed interest in participating in the central bank digital currency (CBDC) pilot: Credit Bank of Moscow, Promsvyazbank, Bank Zenit, Dom.RF, and Russian National Commercial Bank. The State Duma, the lower house of the Federal Assembly of Russia, expects the digital ruble experiment to start in the first half of 2021.

The digital ruble wallet can be used to pay for goods and services in stores where payment terminals will be configured to accept it. The central bank says that if the digital ruble is adopted, Russians may be able to receive salaries and benefits in it, the publication noted. After public consultations, if it is decided that a digital ruble will be created, the Bank of Russia will build a platform for it that will become part of the country’s payment infrastructure. The central bank was quoted as saying:

Citizens and businesses will be able to purchase digital rubles by exchanging them for cash or funds stored in their bank accounts. The possibility of receiving salaries, benefits or other payments in digital rubles is also being considered.

The Russian Ministry of Finance independently told the publication this week of possible pros and cons of the digital ruble. “Its advantages in the finance department include a reduction in transaction costs and the volume of burden on banks, an increase in cross-border payments, as well as a decrease in dependence on the dollar and exposure to sanctions,” the news outlet conveyed. Russia has been consistently pursuing a policy to reduce dependence on the dollar for several years.

The Russian government started exploring the cryptoruble back in 2017. There was even a bill to make the cryptoruble legal tender in Russia. However, the discussion fizzled out over time as the central bank opposed the concept.

Proposed Bitcoin Purchase Limit

Meanwhile, the Bank of Russia has proposed limiting the amount of cryptocurrency that unqualified investors can buy each year to 600,000 rubles ($7,734). The central bank’s proposal reads:

A limit is set for the purchase by an individual, unqualified investor, digital financial assets totaling 600,000 rubles within one year.

The restriction, if adopted, is expected to enter into force when the law “On Digital Financial Assets” comes into effect on Jan. 1 next year. Public comments on the proposed restriction can be submitted until Oct. 27.

What do you think about Russia’s digital ruble? Let us know in the comments section below.

The post Digital Ruble: Russia Unveils Plans to Test Central Bank Digital Currency appeared first on Bitcoin News.

Digital Ruble: Russia Unveils Plans to Test Central Bank Digital Currency

Digital Ruble: Russia Unveils Plans to Test Central Bank Digital Currency

As China is actively testing its digital yuan, Russia is now planning to build and test a central bank digital currency, the digital ruble. Meanwhile, the Bank of Russia has proposed limiting the amount of bitcoin retail investors can buy.

Russia’s Central Bank Plans Digital Ruble

The central bank of Russia has outlined its plans to conduct an experiment using the digital ruble with a limited number of participants after public consultations, Izvestia publication reported last week. The Bank of Russia announced the development of the digital ruble and public consultations on its issuance on Oct. 13. Public comments on the issuance of the digital ruble are accepted until Dec. 31.

Five Russian banks have already expressed interest in participating in the central bank digital currency (CBDC) pilot: Credit Bank of Moscow, Promsvyazbank, Bank Zenit, Dom.RF, and Russian National Commercial Bank. The State Duma, the lower house of the Federal Assembly of Russia, expects the digital ruble experiment to start in the first half of 2021.

The digital ruble wallet can be used to pay for goods and services in stores where payment terminals will be configured to accept it. The central bank says that if the digital ruble is adopted, Russians may be able to receive salaries and benefits in it, the publication noted. After public consultations, if it is decided that a digital ruble will be created, the Bank of Russia will build a platform for it that will become part of the country’s payment infrastructure. The central bank was quoted as saying:

Citizens and businesses will be able to purchase digital rubles by exchanging them for cash or funds stored in their bank accounts. The possibility of receiving salaries, benefits or other payments in digital rubles is also being considered.

The Russian Ministry of Finance independently told the publication this week of possible pros and cons of the digital ruble. “Its advantages in the finance department include a reduction in transaction costs and the volume of burden on banks, an increase in cross-border payments, as well as a decrease in dependence on the dollar and exposure to sanctions,” the news outlet conveyed. Russia has been consistently pursuing a policy to reduce dependence on the dollar for several years.

The Russian government started exploring the cryptoruble back in 2017. There was even a bill to make the cryptoruble legal tender in Russia. However, the discussion fizzled out over time as the central bank opposed the concept.

Proposed Bitcoin Purchase Limit

Meanwhile, the Bank of Russia has proposed limiting the amount of cryptocurrency that unqualified investors can buy each year to 600,000 rubles ($7,734). The central bank’s proposal reads:

A limit is set for the purchase by an individual, unqualified investor, digital financial assets totaling 600,000 rubles within one year.

The restriction, if adopted, is expected to enter into force when the law “On Digital Financial Assets” comes into effect on Jan. 1 next year. Public comments on the proposed restriction can be submitted until Oct. 27.

What do you think about Russia’s digital ruble? Let us know in the comments section below.

The post Digital Ruble: Russia Unveils Plans to Test Central Bank Digital Currency appeared first on Bitcoin News.

Peter Schiff’s Euro Pacific Bank Under Investigation by Tax Authorities in 5 Countries

Peter Schiff's Euro Pacific Bank Under Investigation by Tax Authorities in 5 Countries

Euro Pacific Bank, founded by gold bug and bitcoin skeptic Peter Schiff, is reportedly under investigation by the tax authorities of five countries. The bank’s customers allegedly include several tax fraud masterminds and a Russian syndicate described by the FBI as the world’s worst cybercrime group.

Peter Schiff’s Euro Pacific Bank Probed by Tax Authorities

Euro Pacific Bank, a Puerto Rico-licensed bank founded by gold bug and bitcoin skeptic Peter Schiff, is reportedly under investigation by the tax authorities of Australia, the Netherlands, the U.S., Canada, and the U.K. Several media outlets — The Age, the Sydney Morning Herald, 60 Minutes, and the New York Times — jointly investigated the story.

The large-scale probe, dubbed “Operation Atlantis,” was launched simultaneously by the five tax authorities in January, according to an article published Sunday by The Age. Australia’s deputy tax commissioner, Will Day, says this operation targets international money laundering and tax evasion, calling the inquiry into Euro Pacific Bank “unprecedented.”

British tax authorities arrested a Euro Pacific client and the U.S. Internal Revenue Service (IRS) intercepted Schiff and his partner Mark Anderson for questioning, the publication noted. The financial transactions of Euro Pacific Bank’s clients were examined, and hundreds of bank customers are suspected of tax evasion, the article details, adding that the authorities are also hunting the lawyers, accountants and financial institutions linking taxpayers to Peter Schiff’s bank.

Euro Pacific’s correspondent banks allegedly include Westpac, Western Australian government-backed Perth Mint, the New York Federal Reserve, and Canada’s Bank of Montreal.

Customers of Euro Pacific Bank allegedly include Sydney businessman Simon Anquetil who was behind the Plutus Payroll fraud scheme that stole more than $105 million. Other clients include Hollywood film financier Darby Angel, who has a drug trafficking conviction, and Canadian national Gunnar Helgason, who was arrested in 2013 as the mastermind of “an international boiler-room scam.” The FBI also linked an account at Euro Pacific to a Russian syndicate it describes as the world’s worst cybercrime group. At least 400 customers of the bank are from Australia, about 100 of whom are considered “high risk.”

Peter Schiff agreed to a Zoom interview with 60 Minutes Australia last month from his home outside of New York. However, he abruptly walked out of the interview after he was repeatedly asked about his bank and its tax evasion probe. “Schiff threatened to sue this publication, ripped off his microphone and stormed out of his own living room,” The Age detailed. 60 Minutes Australia tweeted Sunday:

Peter Schiff is adamant authorities won’t find anything to implicate the bank.

Euro Pacific Bank’s former IT director, John Ogilvie, also revealed problems with the bank’s security, The Age further reported, noting that at one point Russians tried to extort the bank for a ransom of 1,000 bitcoins.

The Schiff family is well known for disliking paying taxes. Peter Schiff’s father, Irwin Schiff, died in jail after he was convicted of tax evasion. He ran a business called Freedom Books, selling information that taught thousands of Americans how to cheat the system.

What do you think about Peter Schiff’s case? Let us know in the comments section below.

The post Peter Schiff’s Euro Pacific Bank Under Investigation by Tax Authorities in 5 Countries appeared first on Bitcoin News.

Bitcoin Adoption Soars in Turkey Amid High Inflation, Lira Hitting Record Low

Bitcoin Adoption Soars in Turkey as Inflation Rises and Lira Hits Record Low

People in Turkey are increasingly turning to bitcoin as the local currency, the Turkish lira, recently hit another record low against the dollar. Bitcoin adoption in Turkey outshines other countries in the region.

Turkey Is Regional Leader in Bitcoin Adoption

Bitcoin adoption has been increasing in Turkey as the local currency, the Turkish lira, hit another record low Thursday, reportedly touching 7.95 to the dollar. The dollar has gained about 33% against the lira so far this year and some analysts are predicting that it will soon hit 8.5. “The Turkish lira is getting smoked” and “will crash to new lows due to ‘unorthodox’ policies,” CNBC reported analysts explaining. “The lira’s underlying problem is the lack of credible inflation targeting by the central bank, which is bound to ultimately debase the currency,” Commerzbank analyst Tatha Ghose wrote in a note to clients last week.

The country has been suffering from high inflation and the unemployment rate is past 14%. Steve H. Hanke, Professor of Applied Economics at the Johns Hopkins University and a hyperinflation expert, said Turkey’s annual inflation rate is at 36.57% and climbing. “The lira is toast,” he tweeted Sunday. “Turkey is burning through its foreign exchange reserve like a house on fire,” the professor continued, noting that its reserves currently stand at $41.12 billion, down almost $10 billion since July.

Experts attribute Turkey’s high adoption of cryptocurrencies to economic uncertainty in the region and the extremely volatile lira. Ray Youssef, CEO of global peer-to-peer (P2P) bitcoin marketplace Paxful, said Thursday:

The rising inflation of the Turkish lira has been a major financial burden for Turkish citizens. Bitcoin can be used to preserve wealth against instability surrounding the Turkish lira.

Paxful also revealed Thursday that new registrations on its platform in Turkey increased 274% over the past 12 months. The company says it is seeing “massive potential for crypto adoption” in Turkey, which is why it is expanding its footprint in the country. Paxful has formed strategic partnerships with local cryptocurrency companies: Turkish lira-backed stablecoin Bilira (TRYB) provider and cryptocurrency trading platform Cointral. “We hope that by entering into the market we will be able to ease some of the financial burdens of its citizens,” Youssef remarked.

Blockchain analytics firm Chainalysis’ Geography of Cryptocurrency report, published in September, highlights how Turkey leads in cryptocurrency adoption in the Middle East. The report states:

Turkey is the highest-ranking country in the region on our Global Crypto Adoption Index at 29th overall, and also accounts for the most total transaction volume in the region.

Chainalysis’ global cryptocurrency adoption index ranks 154 countries. Besides Turkey, the countries with high adoption of cryptocurrencies in the Middle Eastern region are Iran (52nd) and Egypt (64th).

The top cryptocurrency exchange service providers in Turkey are Paribu, Btcturk, FTX, Huobi, Binance, Kraken, and Bitmex.

While Turkey currently has no cryptocurrency regulations, the country’s Capital Markets Board is developing a framework to oversee the cryptocurrency markets, with the goal to eventually enact regulations, the report details. Islam is the most practiced religion in the country. According to the government’s estimates, about 99.8% of the Turkish population of over 84 million people is Muslim. Recently, a shariah expert says that cryptocurrencies are legit commodities.

What do you think about bitcoin adoption in Turkey? Let us know in the comments section below.

The post Bitcoin Adoption Soars in Turkey Amid High Inflation, Lira Hitting Record Low appeared first on Bitcoin News.

48-Hour Stimulus Deadline: US Lawmakers Race to Approve Second Stimulus Checks Before Election

48-Hour Stimulus Deadline: US Lawmakers Race to Approve Second Stimulus Checks Before Election

Amid the intense stimulus relief aid discussion, House Speaker Nancy Pelosi has set a deadline for the White House to come to an agreement on the next stimulus package which provides a second round of stimulus checks for Americans. Meanwhile, the Senate is set to vote on a smaller stimulus bill without direct payments this week.

Deadline for Stimulus Negotiations

Stimulus packages to help Americans cope with the coronavirus-driven economic crisis have been heavily discussed this week as U.S. lawmakers hope to approve new relief aid before the November presidential election. Six proposed stimulus packages provide a second round of stimulus checks to Americans. The latest proposal from Democrats is the $2.2 trillion revised Heroes Act but the White House has made a counteroffer of a $1.8 trillion stimulus package. Both contain a second round of stimulus checks for Americans. Despite constant negotiations over the past weeks, House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin have not been able to come to an agreement.

Pelosi then set a 48-hour deadline to reconcile differences after another round of stimulus discussions with Mnuchin on Saturday evening. She told ABC News on Sunday that the deadline applies to lawmakers’ ability to get a deal done before the Nov. 3 election. Pelosi said, “The 48 only relates to if we want to get it done before the election, which we do,” adding:

We’re saying to them, we have to freeze the design on some of these things … I’m optimistic, because again we’ve been back and forth on all this.

Pelosi said that Democrats and the White House have reached an agreement on some subjects such as testing, but there’s still work to be done on the language of the legislation.

Drew Hammill, deputy chief of staff at Pelosi’s office, tweeted: “There remains an array of additional differences as we go provision by provision that must be addressed in a comprehensive manner in the next 48 hours. Decisions must be made by the White House in order to demonstrate that the Administration is serious about reaching a bipartisan agreement that provides for Americans with the greatest needs during the pandemic.”

President Donald Trump has repeatedly said that Pelosi is stalling negotiations. “I want stimulus money now but Nancy Pelosi won’t approve it because she is playing politics,” the official Twitter account for the Trump campaign tweeted Sunday.

In an interview which airs on Sunday, Senator Lindsey Graham (R-S.C.) said that Congress should go “big and smart” on the next coronavirus relief stimulus package. However, he disagrees with some of the components of the Heroes Act. “The $2.2 trillion coming out of the House has a mandate for ballot harvesting. What’s that got to do Covid?” he questioned. “And the $1,200 payment, which I support, doesn’t require a social security number to get it, so a lot of the money would go to illegal immigrants.”

Meanwhile, Senate Majority Leader Mitch McConnell (R-Ky.) announced Saturday afternoon that the Senate will vote on a $500 billion GOP coronavirus relief bill on Wednesday. This bill focuses on a federal unemployment benefit and another round of small business assistance under the Paycheck Protection Program (PPP) and does not include a second round of stimulus checks for Americans.

Do you think a stimulus bill will pass before the election? Let us know in the comments section below.

The post 48-Hour Stimulus Deadline: US Lawmakers Race to Approve Second Stimulus Checks Before Election appeared first on Bitcoin News.

Cryptocurrency ETFs: SEC Wants to Facilitate Tokenized Products

Cryptocurrency ETFs: SEC Wants to Facilitate Tokenized Products

The U.S. Securities and Exchange Commission (SEC) wants to facilitate tokenized exchange-traded funds (ETFs), according to chairman Jay Clayton. The agency is collaborating with other U.S. regulators to determine how to regulate different crypto products.

SEC Open to Tokenization of ETFs

SEC Chairman Jay Clayton talked about the commission’s approach to regulating crypto products during a panel discussion hosted by the Chamber of Digital Commerce earlier this month. The event, entitled “Two Sides of the American Coin: Innovation & Regulation of Digital Assets,” also features acting Comptroller of the Currency Brian Brooks.

The SEC is “actively working on regulations that might one day permit crypto versions of ETFs,” the Financial Times reported Friday, citing Clayton. The SEC is collaborating with other U.S. regulators, such as the Office of the Comptroller of the Currency (OCC) and the Commodity Futures Trading Commission (CFTC), to determine which regulator has jurisdiction over different crypto products.

Clayton pointed out that the utility of the token is what decides which regulator should take the lead. While banking regulators should supervise tokens meant specifically for making payments, such as some stablecoins, Clayton said the tokenization of ETFs should be under the purview of the SEC. Emphasizing that the SEC should and is willing to regulate them, he said:

Our door is wide open, if you want to show how to tokenize the ETF product in a way that adds efficiency, we want to meet with you, we want to facilitate that. Of course, you got to register it and do what you would do with any other ETF.

“Tokenisation allows a designated cryptocurrency asset — similar to bitcoin [BTC] — to represent a single security, such as a stock, or a basket of securities, like a fund or an ETF,” the Financial Times explained.

Wisdomtree Investments CEO Jonathan Steinberg said during a separate panel at the same event that tokenized investments are “an opportunity to do something better than the ETF.” Franklin Templeton Investments filed paperwork with the SEC last year for a government money market fund with both traditional and tokenized shares, the publication conveyed.

Clayton claims that the SEC’s regulatory framework “is time tested … through many innovations.” Noting that trading today is electronic and traders use digital entries rather than stock certificates like they used 20 years ago, he asserted, “It may be very well the case that those all become tokenized.” However, the chairman warned, “But you have to stay true to the principles,” adding that stock issuers and insiders, for example, all have responsibilities. He described:

One of the problems that we had was we got off on the wrong foot in this innovation … I think now, three years later, four years later, we are in a much better spot.

“There was the theory that because it was so efficient because it could have so much promise, we could toss aside some of those principles of responsibilities and transparency,” he recalled. The chairman now says: “We are seeing the promise of blockchain technology, distributed ledger technology, bring efficiencies to what I say is time-tested framework.”

One of the areas Clayton and Brooks have been discussing is how to clearly define what a security is. “If you’re not trying to finance your network, you’re not trying to give people a return on your network, it’s probably not a security,” the SEC chairman clarified. “But if what you are trying to do is finance the build out of your network with your token or provide people with a return for using the network with your token … it’s pretty clear it’s a security.” He added, “we are working to make it clear where those lines are so people can mature the payment system.”

The SEC chairman continued: “What we don’t like is when someone says, ‘you know the function is payments so you really ought to look past the securities law stuff.’ I can’t do that, you know, I wouldn’t be doing my job.”

What do you think about Clayton’s view? Let us know in the comments section below.

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Shariah Compliance Expert Says Cryptocurrencies Are Legit Commodities

Shariah Compliance Expert Says Cryptocurrencies Are Legit Commodities

A shariah compliance expert, the current chairman of the Shariah Advisory Council at Malaysia’s central bank and a shariah board member at many financial companies, says that cryptocurrency is a legit commodity that can be exchanged.

Cryptocurrency and Shariah Compliance

Cryptocurrency adoption and investments remain low in Muslim countries as people are still unsure of its compliance with Islamic law. At the SCxSC Fintech Conference 2020 last week, Datuk Dr. Mohd Daud Bakar, an expert in shariah compliance, said that investors need more time to understand cryptocurrency from the shariah perspective.

Bakar is currently the chairman of the Shariah Advisory Council at the central bank of Malaysia, Securities Commission of Malaysia (SC), and the Labuan Financial Services Authorities. He is also a shariah board member at a number of financial institutions, including the Accounting and Auditing Organisation for Islamic Financial Institutions, Morgan Stanley (Dubai), Bank of London and Middle East (London), Noor Islamic Bank (Dubai), Jadwa-Russell Islamic Fund (Saudi Arabia), and Salama Islamic Insurance.

In Malaysia, the SC Shariah Advisory Council has declared that it is permissible for Muslims to invest in and trade cryptocurrencies, including bitcoin, on government-registered crypto exchanges.

Bakar explained that cryptocurrency is not regarded as legal tender, but it is a legit commodity that can be exchanged within the market, as long as it is not backed by “ribawi items,” like gold and silver, the Malaysian Reserve reported. The publication quoted him as saying:

It is a medium of exchange, and we cannot stop people to use commodities as medium of exchange. It is as good as buying an e-ticket or commodities in the market.

“This new development can open up so many interesting areas in Malaysia, in which crypto can be deemed as investment assets where people can buy and hold for trading,” he elaborated.

Bakar added that the Securities Commission of Malaysia has also made it possible for companies to issue coins as a method of raising capital, subject to certain restrictions through its fatwa resolution.

“Moving forward, the potential of this currency is great as it comes with the growing digital economy of the world,” he noted. “We can even develop our own stablecoin quite easily without any difficulty by the government and respective jurisdiction … We can have the coin backed by certain commodities, ventures or projects.”

What do you think about cryptocurrency from the shariah perspective? Let us know in the comments section below.

The post Shariah Compliance Expert Says Cryptocurrencies Are Legit Commodities appeared first on Bitcoin News.

Bitcoin’s Intrinsic Value: Crypto Community Responds to Bank of England Governor

Bitcoin's Intrinsic Value: Crypto Community Responds to Bank of England Governor

Bitcoin’s intrinsic value has been heavily discussed in the crypto community this week following a remark by the governor of the Bank of England suggesting that the cryptocurrency may have no intrinsic value.

Does Bitcoin Have Intrinsic Value?

Bank of England Governor Andrew Bailey talked about bitcoin’s intrinsic value during a question and answer session with members of the public early this week. “I have to be honest, it is hard to see that bitcoin has what we tend to call intrinsic value,” he was quoted by Reuters as saying. “It may have extrinsic value in the sense that people want it.” Furthermore, the governor said people using bitcoin for payments makes him “very nervous” because the value of the cryptocurrency is uncertain.

Following Bailey’s remark, the crypto community began discussing bitcoin’s intrinsic value in some detail. Michael Saylor, the CEO of Nasdaq-listed company Microstrategy that recently bought $425 million worth of bitcoin for its treasury reserve, tweeted:

Bitcoin is the first digital monetary system capable of storing all the money in the world for every individual, corporation, and government in a fair & equitable manner, without losing any of it. If that’s not intrinsically valuable, what is?

JPMorgan’s strategists, including Nikolaos Panigirtzoglou, wrote in a note on Tuesday about bitcoin’s intrinsic value approaching its market price. “Bitcoin faces a ‘modest headwind’ in the short term based on an analysis of bets in the futures market and an estimate of the cryptocurrency’s intrinsic value,” Bloomberg reported them explaining, adding that they said the price remains about 13% higher than an estimate of intrinsic value.

Bitcoin's Intrinsic Value: Crypto Community Responds to Bank of England Governor
Bitcoin’s market price and intrinsic value.

A number of people on Twitter were quick to point out that bitcoin may have no intrinsic value, but neither do fiat currencies. The Federal Reserve Bank of St. Louis published a report back in 2018 stating:

Bitcoin is not the only currency that has no intrinsic value. State monopoly currencies, such as the U.S. dollar, the euro, and the Swiss franc, have no intrinsic value either.

“They are fiat currencies created by government decree. The history of state monopoly currencies is a history of wild price swings and failures. This is why decentralized cryptocurrencies are a welcome addition to the existing currency system,” the report notes.

“There is no such thing as ‘intrinsic value,'” Shapeshift CEO Erik Voorhees opined. “Value is always subjective, in the eyes of the valuer … Gold, bitcoin, fiat, rice: none have ‘intrinsic value.'”

Twitter user Bob McElrath shared the sentiment. “Nothing has ‘intrinsic value,’ because the word ‘value’ is human sentiment, and changes with time and circumstance. Anyone who says otherwise is trying to sell you something,” he described. “Despite not having ‘intrinsic’ value, bitcoin has a sophisticated, market-based way to determine its value, not only on the demand side but on the supply side as well. Of course, this statement is true for any commodity.”

Cato’s Center for Monetary and Financial Alternatives director George Selgin chimed in:

Of course no goods have ‘intrinsic’ value. Some (like any fiat money) also lack ‘non-monetary use value’ … the Bank of England’s observation that bitcoin lacks intrinsic value is an instance of the pot calling the kettle black.

What do you think about bitcoin’s intrinsic value? Let us know in the comments section below.

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Grayscale Adds $1 Billion to Crypto Products in Q3, Sees ‘Unprecedented Demand’ for Bitcoin Cash

Grayscale Adds $1 Billion to Crypto Products in Q3, Sees 'Unprecedented Demand' for Bitcoin Cash

Grayscale Investments has announced a record quarterly performance, raking in $1.05 billion in investments, mostly from institutional investors. The company also sees “unprecedented demand” for bitcoin cash.

Record Quarter, Over $1 Billion Added

Grayscale Investments released its third-quarter performance Wednesday. The company tweeted:

We just recorded our largest ever quarterly inflows – over $1.0 billion in 3Q20 – making it the third consecutive record-breaking quarter. YTD investment into the Grayscale family of products has surpassed $2.4 billion.

Specifically, the company revealed that the total investment into its products in 3Q 2020 was $1.05 billion, noting that the majority of investment (81%) came from institutional investors, dominated by hedge funds. In the third quarter, offshore investors accounted for 57% of new investment capital into its products.

The total investment into Grayscale’s products was $2.7 billion over the 12-month period ending Sept. 30, which was more than double the $1.2 billion cumulative inflow into the company’s products from 2013 through 2019.

Unprecedented Demand for 3 Products

Grayscale also revealed that three products have seen “unprecedented demand.” The company detailed, “Grayscale’s Bitcoin Cash, Litecoin, and Digital Large Cap [DLC] products have all seen over 10x growth in inflows quarter-over-quarter,” elaborating:

Unprecedented demand for BCH, LTC, and DLC … On average, the aforementioned products saw inflows increase by more than 1,400% quarter-over-quarter.

“These developments followed FINRA’s verification in July that the required diligence to begin quoting the bitcoin cash and litecoin products … had been completed,” the company explained.

Grayscale Investments’ total net asset under management is $6.3 billion as of Tuesday. The Grayscale Bitcoin Trust (GBTC) had the most asset under management ($5,157 million), followed by the Ethereum Trust ($867.7 million) and the Digital Large Cap Fund ($92.0 million). The company described:

Investors appear to be interested in digital assets because they have outperformed major indices YTD.

Meanwhile, the company announced on Tuesday that, like GBTC, its Ethereum Trust had attained the status of a Securities and Exchange Commission (SEC) reporting company.

What do you think about Grayscale’s Q3 performance? Let us know in the comments section below.

The post Grayscale Adds $1 Billion to Crypto Products in Q3, Sees ‘Unprecedented Demand’ for Bitcoin Cash appeared first on Bitcoin News.

‘Enormous Wall of Money’ Coming Into Bitcoin, Price to Reach $1 Million in 5 Years, Says Raoul Pal

'Enormous Wall of Money' Coming Into Bitcoin, Price $1 Million in 5 Years, says Raoul Pal

Macro strategist Raoul Pal says the price of bitcoin will reach $1 million in five years. He attributes the price increase to adoption by large pools of investors and the “enormous wall of money” coming into bitcoin, rather than because “the world is collapsing.”

$1 Million Bitcoin in 5 Years

Former hedge fund manager Raoul Pal shared his view on the economy, gold, and bitcoin last week in a podcast interview with Daniela Cambone of Stansberry Research. Pal previously co-managed the GLG Global Macro Fund in London after departing Goldman Sachs where he co-managed the hedge fund sales business in Equities and Equity Derivatives in Europe. He then founded Global Macro Investor and Real Vision Group.

“The economy is not going to recover for a lot longer than we expect,” he began. “There’s no stimulus around and we’ve got more problems to come in Europe, the U.S. and elsewhere. And businesses don’t have enough cash flow, they’re closing in droves and that’s what I called the insolvency phase.” The former hedge fund manager added, “The only answer is more from the central banks, so that’s why I started to buy more and more bitcoin.”

His portfolio used to be equally distributed between U.S. dollars, gold, equities, and bitcoin. However, he revealed during the podcast that his bitcoin allocation is “probably above 50% now.” While acknowledging that this BTC allocation exposes him to a 50% downside, he said it is ok for him because the upside is “so much bigger.”

Pal explained that he has reduced his cash holdings and put the funds into bitcoin. “My trading positions are relatively small because I don’t think there’s as much opportunity as the room is in bitcoin. So really, mainly a bit of cash, some gold, and bitcoin. And I’m even toying with the idea of selling my gold to buy more bitcoin,” the founder of Global Macro Investor shared, elaborating:

I don’t dislike gold but when you get to the macro opportunity … if bitcoin starts breaking out of these patterns that it’s been forming, it is going to massively outperform gold. I’m 100% sure of that so in which case why would I have the gold allocation.

The former Goldman Sachs manager clarified that he is “not fearful of hyperinflation, default or anything else,” adding that he is interested in people “adopting a different monitoring unit for their savings and reserve assets.”

Pal has a bullish forecast on the price of bitcoin, predicting that it will be $1 million within five years. He explained:

It’s going to be not because the world is collapsing [but] it’s because there’s gonna be adoption by the real large pools of capital.

He sees bitcoin adoption happening in waves, starting with retail and moving into hedge funds. However, he noted: “We are not there yet. You can’t prime broke bitcoin assets but that’s coming. We’re starting to see family offices in the space. Next is the institutions, the endowments, the pension plans, and within that you’ll find some government … suddenly say we have allocated 5% in bitcoin.” He believes that it will be a country such as Nicaragua or one with constant problems of currency devaluation. When that happens, he says it will be “another huge story,” much like the story of Microstrategy moving $425 million treasury reserve into bitcoin.

Emphasizing that “the pipes aren’t there” to allow large institutional investors to invest in bitcoin yet, he said, “but that’s coming … it’s on everybody’s radar screen and there’s a lot of smart people working on it.” Pal further shared:

From what I know, from all of the institutions, [and] all of the people I speak to, there’s an enormous wall of money coming into this.

Do you agree with Pal? Let us know in the comments section below.

The post ‘Enormous Wall of Money’ Coming Into Bitcoin, Price to Reach $1 Million in 5 Years, Says Raoul Pal appeared first on Bitcoin News.

‘Enormous Wall of Money’ Coming Into Bitcoin, Price to Reach $1 Million in 5 Years, Says Raoul Pal

'Enormous Wall of Money' Coming Into Bitcoin, Price $1 Million in 5 Years, says Raoul Pal

Macro strategist Raoul Pal says the price of bitcoin will reach $1 million in five years. He attributes the price increase to adoption by large pools of investors and the “enormous wall of money” coming into bitcoin, rather than because “the world is collapsing.”

$1 Million Bitcoin in 5 Years

Former hedge fund manager Raoul Pal shared his view on the economy, gold, and bitcoin last week in a podcast interview with Daniela Cambone of Stansberry Research. Pal previously co-managed the GLG Global Macro Fund in London after departing Goldman Sachs where he co-managed the hedge fund sales business in Equities and Equity Derivatives in Europe. He then founded Global Macro Investor and Real Vision Group.

“The economy is not going to recover for a lot longer than we expect,” he began. “There’s no stimulus around and we’ve got more problems to come in Europe, the U.S. and elsewhere. And businesses don’t have enough cash flow, they’re closing in droves and that’s what I called the insolvency phase.” The former hedge fund manager added, “The only answer is more from the central banks, so that’s why I started to buy more and more bitcoin.”

His portfolio used to be equally distributed between U.S. dollars, gold, equities, and bitcoin. However, he revealed during the podcast that his bitcoin allocation is “probably above 50% now.” While acknowledging that this BTC allocation exposes him to a 50% downside, he said it is ok for him because the upside is “so much bigger.”

Pal explained that he has reduced his cash holdings and put the funds into bitcoin. “My trading positions are relatively small because I don’t think there’s as much opportunity as the room is in bitcoin. So really, mainly a bit of cash, some gold, and bitcoin. And I’m even toying with the idea of selling my gold to buy more bitcoin,” the founder of Global Macro Investor shared, elaborating:

I don’t dislike gold but when you get to the macro opportunity … if bitcoin starts breaking out of these patterns that it’s been forming, it is going to massively outperform gold. I’m 100% sure of that so in which case why would I have the gold allocation.

The former Goldman Sachs manager clarified that he is “not fearful of hyperinflation, default or anything else,” adding that he is interested in people “adopting a different monitoring unit for their savings and reserve assets.”

Pal has a bullish forecast on the price of bitcoin, predicting that it will be $1 million within five years. He explained:

It’s going to be not because the world is collapsing [but] it’s because there’s gonna be adoption by the real large pools of capital.

He sees bitcoin adoption happening in waves, starting with retail and moving into hedge funds. However, he noted: “We are not there yet. You can’t prime broke bitcoin assets but that’s coming. We’re starting to see family offices in the space. Next is the institutions, the endowments, the pension plans, and within that you’ll find some government … suddenly say we have allocated 5% in bitcoin.” He believes that it will be a country such as Nicaragua or one with constant problems of currency devaluation. When that happens, he says it will be “another huge story,” much like the story of Microstrategy moving $425 million treasury reserve into bitcoin.

Emphasizing that “the pipes aren’t there” to allow large institutional investors to invest in bitcoin yet, he said, “but that’s coming … it’s on everybody’s radar screen and there’s a lot of smart people working on it.” Pal further shared:

From what I know, from all of the institutions, [and] all of the people I speak to, there’s an enormous wall of money coming into this.

Do you agree with Pal? Let us know in the comments section below.

The post ‘Enormous Wall of Money’ Coming Into Bitcoin, Price to Reach $1 Million in 5 Years, Says Raoul Pal appeared first on Bitcoin News.

Spain Approves Bill Requiring Cryptocurrency Owners to Disclose Crypto Holdings and Gains

Spain’s government has reportedly approved a bill that requires cryptocurrency owners to disclose their crypto holdings and any gains on their assets.

Spain’s Finance Minister and the government’s spokesperson, Maria Jesus Montero, said at a press conference following the weekly cabinet meeting that this bill is part of broader legislation to crack down on tax fraud, several Spanish news outlets have reported. The bill was sent to the Spanish Congress of Deputies on Tuesday and will now go to parliament for discussion and final approval.

“This is a bill that will add to the work already being carried out by tax authorities,” Montero explained but did not go into detail about how the rules will be enforced. It is one of the latest efforts by the government to raise tax revenue amid a severe coronavirus pandemic-driven economic crisis.

The bill, entitled “Law on preventive measures to combat tax avoidance,” seeks greater control over cryptocurrencies, Criptonoticias publication described, noting that the government intends to “oblige citizens to provide detailed information on balances and transactions carried out inside and outside of Spain.” If approved, crypto activities that must be reported to the authorities include “acquisition, transmission, exchange, transfer, collections and payments,” the news outlet conveyed.

The Spanish tax authority, the Agencia Estatal de Administración Tributaria (AEAT), began sending out tax notices in April to remind cryptocurrency owners of their tax obligations.

According to Global Legal Insights, capital gains from the sale of cryptocurrencies by a resident of Spain are taxed between 19% and 23%. The higher rate applies to gains in excess of €50,000 ($58,666). The exchange between cryptocurrencies and euros is VAT-exempt.

Meanwhile, all 350 Spanish deputies were sent bitcoin last week as part of an educational campaign by blockchain platform Tutellus and Observatorio Blockchain. This initiative is similar to the Crypto for Congress campaign that recently sent bitcoin to all Members of Congress in the U.S.

What do you think about Spain requiring crypto owners to disclose their holdings? Let us know in the comments section below.

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Bank of England Moves Closer to Negative Interest Rates, Asks Banks if They Are Ready

Bank of England Moves Closer to Negative Interest Rates, Asks Banks if They Are Ready

The Bank of England has moved closer to adopting a negative interest rate policy. The central bank has asked commercial banks in the U.K. to provide details of how ready they are to deal with negative interest rates, asserting that for the policy to be effective, commercial banks need to be ready to implement it.

Bank of England Engages Commercial Banks on Negative Interest Rates

The Bank of England has asked commercial banks how ready they are to implement negative interest rates. This followed the central bank’s Monetary Policy Committee (MPC) revealing that it would assess the appropriateness of a negative official bank rate, including how a negative interest rate policy could be effectively implemented.

The central bank sent a letter, dated Monday, to the CEOs of commercial banks requesting information about their “Operational readiness for a zero or negative bank rate.” The letter is accompanied by a survey, which the central bank says will help it identify any “technical operational challenges associated with the implementation of a zero or negative bank rate, and to consider how best to prepare and prevent any unintended operational disruption.” Bank of England Deputy Governor Sam Woods explained in the letter:

For a negative bank rate to be effective as a policy tool, the financial sector – as the key transmission mechanism of monetary policy – would need to be operationally ready to implement it in a way that does not adversely affect the safety and soundness of firms.

The letter explains that the Bank of England and the Prudential Regulation Authority “are commencing structured engagement on the operational considerations of a negative policy rate,” which include “being operationally ready to deal with a zero bank rate.” The central bank emphasized that it realized that a negative interest rate policy “could have wider implications” for commercial banks’ business and their customers.

The benchmark interest rate in the U.K. is currently 0.1%. A negative interest rate means commercial banks would have to pay the Bank of England to hold deposits for them. Several central banks have already adopted a negative interest rate policy, including the European Central Bank (ECB) and the Bank of Japan.

Commercial banks may decide to pass on the burden of negative interest rates to their customers, charging them for keeping money in the bank, like many banks in Germany are already doing. However, banks that do so risk losing customers to other banks that do not charge negative interest rates.

Meanwhile, Bank of England Governor Andrew Bailey said Monday that he was “very nervous” about people using bitcoin for payments, stating that “it is hard to see that bitcoin has what we tend to call intrinsic value.”

What do you think about the Bank of England imposing negative interest rates? Let us know in the comments section below.

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Crypto Cruise Ship ‘Satoshi’ to Make Panama Bay Home

Crypto Cruise Ship 'Satoshi' to Make Panama Bay Home

The Crypto Cruise Ship called Satoshi is gearing up to set sail from the Mediterranean to Panama, where it will drop anchor and call the bay its home. The ship has 777 cabins that will be auctioned off as condos. Bitcoin will be accepted for all goods and services aboard.

Crypto Cruise Ship ‘Satoshi’

Ocean Builders, a company that builds “seapods” or floating homes for seasteaders, has unveiled “The Crypto Cruise Ship” called Satoshi. It is being prepared to set sail from the Mediterranean and will anchor in the Gulf of Panama.

The Crypto Cruise Ship Satoshi is 811 feet long with 12 decks and 777 cabins to be auctioned off as condos. It will have three restaurants, a juice bar, two cafes, three bars, two pools, four whirlpools, a water park, and more, Ocean Builders’ website details. Bitcoin will be accepted throughout the ship for all goods and services, alongside U.S. dollars and other forms of payment.

According to the Maritime Executive publication, the Crypto Cruise Ship Satoshi was formerly a cruise ship called the “Pacific Dawn” by P&O Cruises Australia. Built in 1991, it has been operating with Princess Cruises and P&O Australia. P&O’s parent company, Carnival Corporation, recently sold the ship as its business was affected by the coronavirus pandemic.

American bitcoin entrepreneur Chad Elwartowski, COO of Ocean Builders, says that his company is scheduled to take delivery of the cruise ship on Nov. 4 in the Mediterranean. The ship will subsequently be renamed to Satoshi, after Satoshi Nakamoto, the pseudonymous creator of Bitcoin.

Elwartowski has been a pioneer in seasteading. Last year, he and his Thai girlfriend got into trouble with the government of Thailand while occupying a sea home off the coast of Phuket. The Thai government accused the couple of violating the country’s sovereignty and the Thai Navy seized their home and issued arrest warrants for both of them.

Regarding the Crypto Cruise Ship Satoshi, Elwartowski was quoted as saying: “We look forward to creating a hub for technology and innovation here in Panama. Our goal is to figure out how to live sustainably on the sea and chart new waters in this new frontier.” In addition to permanent residential units, Ocean Builders says that vacation rentals will also be available on the ship.

Registration has already opened and auctions for the cabins are scheduled to take place between Nov. 5 and Nov. 28. According to Ocean Builders, the move-in date will be in January next year. Buyers will acquire full ownership of their cabins and will be required to pay a monthly fee to cover operating expenses. The publication added that the first sale will be for 200 cabins, tentatively priced between $25,000 and $50,000.

Would you buy or rent a cabin on the Crypto Cruise Ship Satoshi? Let us know in the comments section below.

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Bitcoin for Spain’s Congress: BTC Sent to 350 Spanish Parliament Members

Bitcoin for Spain’s Congress: 350 Spanish Parliament Members Receive BTC

Bitcoin has been sent to 350 deputies of the Spanish Congress as part of an educational initiative similar to the “Crypto for Congress” campaign that sent bitcoin to all Members of U.S. Congress.

Bitcoin Sent to 350 Spanish Lawmakers

All 350 members of Spain’s Congress of Deputies have been sent bitcoin worth a euro each as part of an educational campaign, local newspaper ABC reported Thursday. The Congress of Deputies is the lower house of Spain’s parliament; it has 350 members.

The initiative was launched by blockchain education platform Tutellus and Observatorio Blockchain “with the aim of raising awareness about the ‘transcendental’ role that cryptocurrencies are going to have in the transformation of the economy and society,” the publication conveyed, quoting sources from the organization as saying:

We have explained to the deputies that we are in a time of profound changes in the use of money, in addition to highlighting the important role that cryptocurrencies have today.

All the representatives of the ten parliamentary groups in the lower house of parliament were sent an email with the equivalent of one euro in bitcoin on Wednesday, the news outlet detailed.

This move followed the Crypto for Congress initiative by the Chamber of Digital Commerce that sent all U.S. Members of Congress bitcoin as campaign contributions.

While the bitcoin sent by the Crypto for Congress initiative was intended as donations, Miguel Caballero, founder of Tutellus who launched the Spanish initiative, says the bitcoin sent to the 350 Spanish deputies “is not a donation.” He asserted:

Many deputies probably already have some experience in the use of cryptocurrencies, but we would like those who are not yet familiar with the new money, to have the opportunity to get in touch with it.

Caballero added: “With a digital euro on the near horizon, we believe that our deputies, as citizens’ representatives, should be aware of the benefits and risks of cryptocurrencies.”

What do you think about this bitcoin for Congress initiative in Spain? Let us know in the comments section below.

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