After Making Over $800K From Crypto, One Investor Now Owes The Government $400K In Taxes

crypto tax

We have all heard about the crypto millionaires; people who invested in cryptocurrencies before the rest of us had a clue about what Bitcoin was. These investors saw their investments rise 10, 20 and even 50 times and reaped millions of dollars in months. However, very rarely do we hear how these gains became the source of misery. This is the case with one investor from California who made over $800,000 from his investment in Ethereum. However, after the market dipped, he discovered that he owed the government over $400,000 in taxes. Now, working at a $12/hour job, he fears he may not ever accrue enough to pay the taxes.

A Dipping Market And Bad ICO Bets

In May of last year, one university student in California got introduced to the world of cryptocurrencies. Like many of us, the student got wind of cryptos from a friend who was “going all in” on Ether. He was quickly sold on the opportunity and immediately opened an account with Coinbase. He then went on to invest $5,000 in Ether which according to him was half of his life savings. It was one of the best investment decision he ever made as in the months that followed, the value of his ETH stash skyrocketed as the entire crypto market reached dizzying heights.

As he explained in a Reddit post, his crypto investment of $5,000 had risen over 180 times in just a few months and stood just $20K shy of $900,000 during December of 2017. At the time, the market was doing extremely well, the overall market cap was approaching the $1 trillion milestone, Ether was trading at over $1,300 and Bitcoin was approaching $20,000. What could possibly go wrong?

December was a perfect time to exit the market and cash out his stash, but he had other ideas:

Now I should have listened. I should have cashed out, yes. Once I hit $1 million I was going to… I would have been set. And then, JUST like that the market tanks going into the new year.

The price of most cryptos sunk in the new year, with Bitcoin shedding over $10,000 in the first 30 days of the year. He then decided to invest in ICOs, which had been proven to have great returns in the previous year. This too failed miserably after he invested in some ICOs that sunk.

However, from an initial investment of $5,000, he had still made a handsome profit as his crypto stash stood at $125,000. There was one problem however; he hadn’t paid a single cent in taxes for 2017. As a result, he couldn’t offset his $700,000+ losses in 2018 because in the US you are only allowed to claim $3,000 in deductions for capital losses per year. Had his portfolio dropped to $125,000 before the end of 2017, he would only owe roughly $60,000 in taxes, but since the losses occurred in 2018 the tax bill is calculated based on the net gain he had at the end of the year. The end result, is a tax bill of over $400,000 for 2017. The university student reportedly works part-time as a retail associate at Barnes & Noble where he makes $12/hour.

The reason the college student didn’t think he owed any taxes is because he never actually converted any crypto into fiat. That logic was valid for any trades prior to 2017, as the IRS never clarified whether exchanging crypto to crypto constituted a like-kind exchange, which would exempt any tax liability for such trades. However, in a tax bill enacted on December 31st 2017, the IRS included a provision that limited like-kind exchange exemptions to real estate only. As a result, if you converted Bitcoin to Ethereum in 2017, that would be considered a taxable event, just like if you were to convert Bitcoin to USD.

It is worth mentioning that had the college student lived in Canada, he would have been able to offset 2018’s losses with the 2017 gains. According to Canada.ca: “You can use a current year net capital loss to reduce your taxable capital gains in any of the three preceding years or in any future year.” In the US however, you can only claim previous year losses for future years, with a limit of $3,000 per year, not the other way around.

Crypto taxes have continued to be a puzzle for many in the industry. This is not helped by the conflicting views from some of the government entities that are expected to shed a light on the issue. The CFTC considers cryptos as commodities which gives it jurisdiction over the market; the IRS considers cryptos as property which makes them subject to income taxes and capital gains; the SEC treats certain cryptos as securities while FinCEN has stated that some crypto transactions constitute money transmission.

The post After Making Over $800K From Crypto, One Investor Now Owes The Government $400K In Taxes appeared first on NullTX.

Survey: Younger Germans More Inclined to Invest in Cryptocurrencies

A recent poll in two German federal states found that 55 percent of respondents are aware of crypto, while 28 percent of younger people find crypto investment “conceivable.”

More than a quarter of younger Germans is ready to buy cryptocurrencies, according to a recent poll by the German Consumer Centers of Hesse and Saxony published Monday, Nov. 5.

Consumer Centers are non-profit, government-backed agencies organized at state level unions. They focus on consumer protection in addition to providing advisory services.

The centers of two German federal states, whose populations total over 10 million people, have conducted a joint survey among internet users. According to the local business media Wirtschaftswoche, the survey polled 1,000 Germans between the ages of 18 and 39.

More than a half of respondents — 55 percent — claim they have heard of cryptocurrencies. 77 percent of those who are aware of digital currencies admit they are not likely to invest in them.

When asked about their perception of the risk factor of cryptocurrencies, 70 percent of participants said they find crypto trading ‘risky’ or ‘very risky’. The release notes that there is a strong correlation between the estimation of risk and the age of respondent. While 54 percent of people aged 30 to 39 consider cryptocurrency investments dangerous, 28 percent of respondents from 18 to 29 found purchasing cryptocurrencies to be “conceivable.”

Notably, the survey itself provides a warning about the risks of investing in digital currencies. Wolf Brandes, the finance markets team leader at the Consumer Center of Hesse writes, “Investors need to know: cryptocurrencies in terms of investment are gray capital markets. There is no regulation or investor protection.”

This sceptic stance toward cryptocurrencies is shared within the German government. In September, German Finance Minister Olaf Scholz stated that cryptocurrencies would not be able to replace fiat money, adding that they did not have “an economically significant importance”. He also compared cryptocurrencies to the tulip fever bubble in the Netherlands in the 17th century.

Similar polls have recently been conducted in the U.S. A recent survey by research service YouGov Omnibus has shown that American millennials are most interested in cryptocurrencies, with 36 percent of them saying they would rather use digital currencies than the dollar.  Another poll by U.S. blockchain-analytics firm Clovr found that that cryptocurrency investing is most popular among millennial men earning $75,000–$99,999 annually.

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Author: Ana Berman

Survey: Younger Germans More Inclined to Invest in Cryptocurrencies

A recent poll in two German federal states found that 55 percent of respondents are aware of crypto, while 28 percent of younger people find crypto investment “conceivable.”

More than a quarter of younger Germans is ready to buy cryptocurrencies, according to a recent poll by the German Consumer Centers of Hesse and Saxony published Monday, Nov. 5.

Consumer Centers are non-profit, government-backed agencies organized at state level unions. They focus on consumer protection in addition to providing advisory services.

The centers of two German federal states, whose populations total over 10 million people, have conducted a joint survey among internet users. According to the local business media Wirtschaftswoche, the survey polled 1,000 Germans between the ages of 18 and 39.

More than a half of respondents — 55 percent — claim they have heard of cryptocurrencies. 77 percent of those who are aware of digital currencies admit they are not likely to invest in them.

When asked about their perception of the risk factor of cryptocurrencies, 70 percent of participants said they find crypto trading ‘risky’ or ‘very risky’. The release notes that there is a strong correlation between the estimation of risk and the age of respondent. While 54 percent of people aged 30 to 39 consider cryptocurrency investments dangerous, 28 percent of respondents from 18 to 29 found purchasing cryptocurrencies to be “conceivable.”

Notably, the survey itself provides a warning about the risks of investing in digital currencies. Wolf Brandes, the finance markets team leader at the Consumer Center of Hesse writes, "Investors need to know: cryptocurrencies in terms of investment are gray capital markets. There is no regulation or investor protection."

This sceptic stance toward cryptocurrencies is shared within the German government. In September, German Finance Minister Olaf Scholz stated that cryptocurrencies would not be able to replace fiat money, adding that they did not have “an economically significant importance”. He also compared cryptocurrencies to the tulip fever bubble in the Netherlands in the 17th century.

Similar polls have recently been conducted in the U.S. A recent survey by research service YouGov Omnibus has shown that American millennials are most interested in cryptocurrencies, with 36 percent of them saying they would rather use digital currencies than the dollar.  Another poll by U.S. blockchain-analytics firm Clovr found that that cryptocurrency investing is most popular among millennial men earning $75,000–$99,999 annually.

Bancor’s Cross-Chain DEX Between Ethereum and EOS is Now Live

Bancor, a popular decentralized exchange (DEX) protocol on the Ethereum blockchain announced in September that they’d build a bridge to the EOS network. The new platform, called BancorX, is now live. BancorX enables token conversions between 110+ Ethereum and EOS-based assets. Projects launching on the platform include Everipedia, eosBLACK, BetDice, MEET.ONE, KARMA, Prochain, and Chaince.

The post Bancor’s Cross-Chain DEX Between Ethereum and EOS is Now Live appeared first on CCN

Bitcoin Bulls Win Battle at $6,400 Resistance, Resume Range Trading

Bitcoin shed some of the gains made earlier in the day, erasing $40 from its daily high at $6,500. The BTC/USD pair trades at $6,460 in a ranging market with support at $6,300. A significant bearish trend line may have been thwarted as the market moves above the $6,400 line.

Bitcoin Trades Above Significant Bearish Trend Line at $6,400

A somewhat uneventful BTC/USD trading day saw bulls and bears dispute the price in early Monday. Bulls won the battle as the $6,365, $6,375 and $6,400 resistance levels were suppressed in an upside push towards the $6,500 high, according to data from Investing.com.

The market was able to break above “a major contracting triangle with resistance at $6,350 on the hourly chart of the BTC/USD pair,” according to NewsBTC analyst Aayush Jindal. “Later, the price started a downside correction and declined below $6,440”, he added. The BTC/USD pair has a nearby support at the $6,380 level, followed by $6,398-6,400, $6,375, and the 61.8% Fib retracement level of the recent wave from the $6,323 low to $6,472 high, according to the analyst.

Looking at a wider timeframe, the Bitcoin market has become quite still, when compared to the volatile days of late 2017 and early 2018. No wonder Thejas Nalval and Kevin Lu, portfolio director and director of quantitative research at Element Digital Asset Management, said in October that trading has almost become boring.

“We think the market has quite simply just run out of juice for now. It’s almost become boring. Seems like everyone is waiting on the sidelines for someone else to make the first move in what could be an extremely long game of chicken.”

They argued that the decreased volatility may be due to the adoption of Bitcoin as a store of value. Although still premature, the theory may turn out to be true. Bitcoin has a market cap of $111 billion, which is about a third of what it achieved on December 17, 2018. Another theory presented by the analysts from Element is that “Bitcoin price discovery is becoming more efficient due to more natural demand and natural supply.”

The cryptocurrency market had a mixed trading day.

Ethereum (-0.23%), Bitcoin Cash (-1.10%), Litecoin (-0.66%), and Monero (-0.46%) eased slightly during the day, while Ripple (+4.65%), EOS (+0.21%), Stellar (+1.30%), Cardano (+1.17%), and Tether (+3.86%) moved higher in the last 24 hours. The overall performance during the last seven days has been positive for most digital currencies in the top by market cap.

Dogecoin, rank number 24 with a market cap of $424 million, had a difficult week as its price moved lower from $0.0039 to $0.0036, an eight percent drop in a week. In the last 30 days, DOGE has lost over 37% of its value. Having reached a market cap of $793 million on September 11, 2018, the digital currency’s market is now worth little more than half.

Featured image from Shutterstock.

The post Bitcoin Bulls Win Battle at $6,400 Resistance, Resume Range Trading appeared first on NewsBTC.

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Author: Ricardo Esteves

Bitcoin Bulls Win Battle at $6,400 Resistance, Resume Range Trading

Bitcoin shed some of the gains made earlier in the day, erasing $40 from its daily high at $6,500. The BTC/USD pair trades at $6,460 in a ranging market with support at $6,300. A significant bearish trend line may have been thwarted as the market moves above the $6,400 line.

Bitcoin Trades Above Significant Bearish Trend Line at $6,400

A somewhat uneventful BTC/USD trading day saw bulls and bears dispute the price in early Monday. Bulls won the battle as the $6,365, $6,375 and $6,400 resistance levels were suppressed in an upside push towards the $6,500 high, according to data from Investing.com.

The market was able to break above “a major contracting triangle with resistance at $6,350 on the hourly chart of the BTC/USD pair,” according to NewsBTC analyst Aayush Jindal. “Later, the price started a downside correction and declined below $6,440”, he added. The BTC/USD pair has a nearby support at the $6,380 level, followed by $6,398-6,400, $6,375, and the 61.8% Fib retracement level of the recent wave from the $6,323 low to $6,472 high, according to the analyst.

Looking at a wider timeframe, the Bitcoin market has become quite still, when compared to the volatile days of late 2017 and early 2018. No wonder Thejas Nalval and Kevin Lu, portfolio director and director of quantitative research at Element Digital Asset Management, said in October that trading has almost become boring.

“We think the market has quite simply just run out of juice for now. It’s almost become boring. Seems like everyone is waiting on the sidelines for someone else to make the first move in what could be an extremely long game of chicken.”

They argued that the decreased volatility may be due to the adoption of Bitcoin as a store of value. Although still premature, the theory may turn out to be true. Bitcoin has a market cap of $111 billion, which is about a third of what it achieved on December 17, 2018. Another theory presented by the analysts from Element is that “Bitcoin price discovery is becoming more efficient due to more natural demand and natural supply.”

The cryptocurrency market had a mixed trading day.

Ethereum (-0.23%), Bitcoin Cash (-1.10%), Litecoin (-0.66%), and Monero (-0.46%) eased slightly during the day, while Ripple (+4.65%), EOS (+0.21%), Stellar (+1.30%), Cardano (+1.17%), and Tether (+3.86%) moved higher in the last 24 hours. The overall performance during the last seven days has been positive for most digital currencies in the top by market cap.

Dogecoin, rank number 24 with a market cap of $424 million, had a difficult week as its price moved lower from $0.0039 to $0.0036, an eight percent drop in a week. In the last 30 days, DOGE has lost over 37% of its value. Having reached a market cap of $793 million on September 11, 2018, the digital currency’s market is now worth little more than half.

Featured image from Shutterstock.

The post Bitcoin Bulls Win Battle at $6,400 Resistance, Resume Range Trading appeared first on NewsBTC.

Mainstream? Gwyneth Paltrow Promotes Bitcoin Investing Guide on Twitter

Celebrities and cryptocurrency have a long and complex history together. Seemingly everyone from boxers to rappers has publicly supported or even endorsed various types of cryptos, from ICOs to bitcoin proper. DJ Khaled and Floyd Mayweather have even been sued over their alleged misrepresentations regarding an ICO they promoted called Centra Tech whose operators were later

The post Mainstream? Gwyneth Paltrow Promotes Bitcoin Investing Guide on Twitter appeared first on CCN

Daily Crypto Roundup 11/5/2018

Crypto tax stress, regulatory talks, Tether validity news, and a new BitMEX tool website for fork information, all while the crypto markets look somewhat greener as a whole. Check out today’s action.

Abusive Crypto Taxation In California Reminds Us Why Privacy Matters

Cryptocurrency taxation lies heavy on those involved. Tax laws have not yet developed to properly suit the crypto space.

Trading crypto assets triggers a taxable event, even if the funds are not traded into FIAT (USD, EUR, etc.). This creates a difficult situation on those involved, who must pay taxes on investments in which gains were not yet monetarily realized.

Crypto Insider reports on a student who ended up owing some $400,000 in taxes, even though he did not cash out into FIAT.

Read on Crypto Insider

Venezuela Further Struggles With The Release Of Petro

It’s been quite a long while since Venezuelan president Nicholas Maduro has announced a new cryptocurrency.

Petro, which is theoretically backed by the country’s oil, gold, diamonds, and steel, seems to have problems with execution. The wallet for the coin is non-existent by launch date, and some cryptographers have managed to identify some plagiarism in the cryptocurrency’s code. Furthermore, only 30 real buyers have managed to get their hands on Petro, and the total investment adds up to a total of $5500.

Crypto Insider reports on the worrisome and intriguing situation of Petro, a national cryptocurrency which seems to struggle even with its launches (this one being the second).

Read on Crypto Insider

SEC Official Says ‘Plain English’ Guidance On ICOs Is Coming

Confusion fills 2018 regarding crypto and regulation. In statements made today, William Hinman (SEC director) plans to divulge understandable guidelines for ICOs going forward, concerning regulatory expectation (securities laws, etc.).

The release date for these simplified guidelines is not yet known.

Hinman stated – “We also will be putting out more guidance, the idea is a plain English instrument that people can look at and they’ll bring together sort of my Howey-meets-Gary speech, and that analysis … We’ll elaborate on that in a very plain English way, so ‘do I think I have a security offering,’ look at that guidance and you should be able to sort things out”, as reported by CoinDesk.

Read on CoinDesk

Deltec Chairman Says Tether Letter On Bank Relationship Is ‘Authentic’

Last week was filled with murmurs of Tether’s proven solvency, via a letter with details. Tether’s supposed new bank Deltec did not exactly give a clear answer on the subject as of last week.

However, CoinDesk reports receiving confirmation of the Tether letter’s authenticity on Saturday.

Jean Chalopin, chairman for Deltec, sent CoinDesk a message stating – “[t]he letter published by Tether is authentic”, as reported by CoinDesk today.

Finally, the public sees a bit of confirmed clarity on recent Tether news.

Read on CoinDesk

BitMEX Releases Fork Monitoring Tool In Run-Up To Bitcoin Cash Hard Fork

The upcoming Bitcoin Cash hard fork has been the talk of the town recently. Price has also rallied in response.

BitMEX announced via a blog post today, the release of a website which will help track data applicable for forks. The new website, ForkMonitor.info, “displays various pieces of information regarding the chains followed. This website can be useful for monitoring the situation during network upgrades (softforks or hardforks), as well as being potentially useful in helping to detect unintentional consensus bugs”, stated the blog post.

The Bitcoin Cash hard fork will occur on November 15th. After the event, ForkMonitor.info will shift more attention over to Bitcoin, reported CoinTelegraph.

Read on CoinTelegraph

Crypto Markets See Widespread Wave Of Green, Bitcoin Pushes $6,500

Bitcoin has seen greater trading volume over the past couple of days, with roughly $4.4 billion over the past 24 hours.

CoinTelegraph reports Bitcoin at about 2.2% higher this week. ETH has seemingly followed suit, taking the reigns as the highest gainer in the past 24 hours (in terms of top ten market cap coins).

ETF talk is also circulating around the crypto sphere, as “securities lawyer Jake Chervinsky emphasized on crypto twitter that today’s date, Nov. 5, is the deadline for the public to submit statements to the U.S. Securities and Exchange Commission (SEC) as part of the Commission’s review of various – previously rejected – Bitcoin ETF proposals”, reported CoinTelegraph.

Read on CoinTelegraph

The post Daily Crypto Roundup 11/5/2018 appeared first on Crypto Insider.

BitMEX Research Launches New BTC/BCH Fork Monitoring Website

BitMEX

BitMEX has officially announced the launch of a new BitMEX-sponsored website called ForkMonitor.info, which may be used to keep track of the happenings surrounding both softfork and hardfork network upgrades for Bitcoin (BTC) and Bitcoin Cash (BCH). 


Bitcoin Cash (BCH) is the star of the new website, however, as ForkMonitor runs eight BCH nodes, versus five BTC notes. This is unsurprisingly due to the upcoming Bitcoin Cash hardfork, which is something of the flavor-of-the-week for the beginning of November.

The team at ForkMonitor will rebalance the new sites focus after the completion of BCH’s hardfork, however. Notes an official blog post:

The plan is to run more versions of Bitcoin Core (especially older versions), as well as independent implementations such as Bcoin, BTCD and Libbitcoin. This may be helpful in spotting any consensus bugs, such as the inflation bug CVE-2018-17144, which was discovered in September 2018.

ForkMonitor’s code will also be open source in an effort to encourage similar monitoring from other organizations.

Bitcoin Cash (BCH)

Get the Fork Out

The much anticipated Bitcoin Cash hardfork is scheduled to take place around 16:40 UTC on Nov 15, 2018.

Three competitor chains may come into existence, as noted by BitMEX:

  • a hardfork implemented by Bitcoin ABC
  • a second hardfork implemented by Bitcoin SV
  • potentially the original rules chain

As is often the case anytime a hardfork is scheduled, the price of Bitcoin Cash has started ‘mooning.’

The price of BCH is up 32.33 percent over the last seven days, at the time of this writing. It has since started a slight correction but is holding strong, down only 0.58 percent over the last 24 hours.

Bitcoin Cash’s pre-fork surge has brought the rest of the market up with it. At the time of this writing, the vast majority of the cryptocurrency market is in the green over the last seven days.

What do you think of Bitcoin Cash’s pending hardfork? Let us know your thoughts in the comments below! 


Images courtesy of Shutterstock, CoinMarketCap.

The post BitMEX Research Launches New BTC/BCH Fork Monitoring Website appeared first on Bitcoinist.com.

Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Stellar, Litecoin, Cardano, Monero, TRON: Price Analysis, November 5

Predictions vary as some traders wonder whether a Bitcoin end-of-year rally will come as it has in previous years. What are the key levels to watch?

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Market data is provided by the HitBTC exchange.

We are into the final two months of the year, which have historically proven strong for Bitcoin. So, will the markets rally from current levels by the end of December?

During a recent simulation of three econometric models by Greg Giordano and Panos Mourdoukoutas, two models pointed to a rally at current levels, while the third pointed to a sharp fall.

The most bullish outcome was a rally to $12,629.15, while the most bearish was a fall to $816.91. The third model projected a small rally to $8,573.56.

Today marks the deadline for members of the public to submit proposals to the U.S. Securities and Exchange Commission’s (SEC) regarding its consideration of certain Bitcoin exchange-traded fund (ETF) proposals. A final decision on the ETFs will not be made until early 2019.

In its latest annual report, the SEC said that its focus is to reduce the amount of cryptocurrency-related scams. If the SEC succeeds in this effort, it will bolster confidence in the asset class and attract institutional and retail investors alike.

How are traders positioned as December draws closer? What are the key levels to watch, both on the upside and the downside? Let’s find out.

BTC/USD

Bitcoin is currently close to the moving averages, which have both turned flat. The RSI is also near the midpoint, which shows a neutral sentiment. Both the bulls and the bears are currently in wait and see mode.

Positive news amid an air of “end-of-year” expectation for Bitcoin could prompt bulls to attempt to break out of $6,831.99 and rally to the next overhead resistance at $7,400.

Conversely, while markets remain largely stagnant and range-bound, pessimism and re-estimations of Bitcoin’s end of year price could prompt bears to attempt to break down from the critical support zone of $5,900–$6,075.04.

BTC/USD

In 2018, the BTC/USD pair has held the $5,900 mark on many occasions. Hence, traders can keep a stop loss of $5,900 on their long positions. A break of this can trigger a number of stop losses, resulting in a quick fall to $5,450, and further to $5,000.

ETH/USD

The rebound from the support at $188.35 has carried Ethereum to the 50-day SMA that is acting as resistance. If the bulls sustain above the 50-day SMA, a rally to the top of the range at $249.93 is probable.

ETH/USD

We are not suggesting a trade at current levels because the moving averages are flat, and the RSI has just inched into the positive territory. The indicators do not point to a trend reversal.

The ETH/USD pair is likely to embark on a new uptrend once it is above $249.93. The traders can buy the close (UTC time frame) above this resistance. Our bullish view will be invalidated if the bears sink the price below $188.35 and $167.32.

XRP/USD

The tight range in Ripple has resolved to the upside. This shows that the bulls have the upper hand in the short-term. We expect the virtual currency to resume its upward move and reach $0.62, with minor resistance at $0.55. Therefore, we suggested a buy on a breakout and close (UTC time frame) above $0.48.

We wait for a strong close because in a downtrending market, this strategy keeps us away from fake breakouts. However, when the markets become bullish, we will change the strategy and buy the breakouts, as waiting for the price to close above a certain level can result in missed trades.

XRP/USD

The 50-day SMA is trending up, and the 20-day EMA has also started to turn up. The RSI has also risen into positive territory. All these indicators point to a possible rally in the XRP/USD pair. Our bullish view will be invalidated if the bears sink the price below $0.425.  

BCH/USD

Bitcoin Cash has embarked on a bull run of its own. Buoyed by fundamental news, it has risen sharply from $408.0182 critical support.

BCH/USD

A break out of $488 invalidated the descending triangle pattern. Usually, when a bearish pattern is negated, it is a sign to go out and buy.

The pullback on the BCH/USD pair picked up momentum above $488 and quickly reached the overhead resistance at $591.41. If this level is crossed, the next target on the upside is $660.0753.

Traders who are long can keep their stop loss at $400. The RSI has reached the overbought zone. Therefore, a couple of days of consolidation is possible, after which the digital currency should resume its recovery and try to break out of $660.0753.

EOS/USD

EOS has risen close to the midpoint of the tight range of $5–$6. Both moving averages are flat, and the RSI is just above the 50 level.

EOS/USD

The current bounce from around $5 might carry the EOS/USD pair to $6, above which a rally to $6.8299 is probable. If the bulls fail to scale the $6 mark, the range bound action will be extended.

We anticipate the digital currency to start a new uptrend on a breakout above $6.8299. The target levels to keep in mind are $9.1668 and $11.4. Traders who are holding long positions can keep their stops at $4.90.

XLM/USD

Stellar has broken out of the moving averages. It is currently attempting to sustain above the downtrend line of the descending triangle. We anticipate strong resistance in the $0.24–$0.27 zone.

XLM/USD

If the bulls sustain above the downtrend line of the descending triangle, it will invalidate the bearish pattern, which is a bullish sign.  

Above $0.27, we expect the XLM/USD pair to rally to $0.36, with minor resistance at $0.304. Traders can profit from the rally by initiating long positions on a close (UTC time frame) above $0.27, and keeping the stop loss at $0.20.

LTC/USD

The bounce from the $47.246–$49.466 support zone has carried Litecoin to the 50-day SMA, triggering our buy recommendation made in a previous analysis. Traders who have entered long positions can maintain their stops at $47.

LTC/USD

The bears might provide stiff resistance in the area between the 50-day SMA and the downtrend line of the descending triangle. Traders can book partial profits near the downtrend line and hold the remaining position, because a break out of $60 will invalidate the bearish pattern and can result in a rally to the top of the range at $69.279.

The LTC/USD pair has been stuck in the $49.466–$69.279 range since early August. If the bulls clear the overhead resistance, we anticipate a new uptrend to start. Therefore, positional traders can go long on a close above $69.279.

ADA/USD

The bears could not capitalize on the break down of the symmetrical triangle. Cardano found support at $0.068989 and bounced from there. It has again entered into the triangle, invalidating the breakdown. This is a positive sign.

ADA/USD

If the bulls push the price above $0.082207, the ADA/USD pair might rally to the minimum pattern target of $0.114618. Aggressive traders can buy a close above $0.082207 with the stop loss placed below the intraday low of Oct. 31. If the price struggles to break out of $0.094256, the stops can be trailed higher, or the positions can be closed.

XMR/USD

Monero rose above the immediate resistance of $112.44 on Oct. 4. If the bulls sustain above this level, a rally to the top of the range is probable. Above $128.65, the upward move can extend to $150, which will act as a stiff resistance.

XMR/USD

If the bears push the price below the 50-day SMA, range bound action might continue. The XMR/USD pair will weaken if it slides below $100.453.

We shall wait for a new uptrend to begin before recommending any trades.

TRX/USD

TRON has reached the midpoint of the $0.0183–$0.02815521 range. It has risen above both moving averages and the RSI has also climbed above the 50 level, which is a mild positive.

TRX/USD

Though the movement inside the range is random, if the bulls succeed in sustaining above the moving averages, a gradual climb to the top of the range at $0.02815521 is probable. A new uptrend might start if the price scales above $0.03.

If buying dries up at current levels, the TRX/USD pair can slide to $0.02134798. A break down of this support can retest the critical support at $0.0183.

Market data is provided by the HitBTC exchange. Charts for analysis are provided by TradingView.

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Author: Rakesh Upadhyay

Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Stellar, Litecoin, Cardano, Monero, TRON: Price Analysis, November 5

Predictions vary as some traders wonder whether a Bitcoin end-of-year rally will come as it has in previous years. What are the key levels to watch?

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Market data is provided by the HitBTC exchange.

We are into the final two months of the year, which have historically proven strong for Bitcoin. So, will the markets rally from current levels by the end of December?

During a recent simulation of three econometric models by Greg Giordano and Panos Mourdoukoutas, two models pointed to a rally at current levels, while the third pointed to a sharp fall.

The most bullish outcome was a rally to $12,629.15, while the most bearish was a fall to $816.91. The third model projected a small rally to $8,573.56.

Today marks the deadline for members of the public to submit proposals to the U.S. Securities and Exchange Commission’s (SEC) regarding its consideration of certain Bitcoin exchange-traded fund (ETF) proposals. A final decision on the ETFs will not be made until early 2019.

In its latest annual report, the SEC said that its focus is to reduce the amount of cryptocurrency-related scams. If the SEC succeeds in this effort, it will bolster confidence in the asset class and attract institutional and retail investors alike.

How are traders positioned as December draws closer? What are the key levels to watch, both on the upside and the downside? Let’s find out.

BTC/USD

Bitcoin is currently close to the moving averages, which have both turned flat. The RSI is also near the midpoint, which shows a neutral sentiment. Both the bulls and the bears are currently in wait and see mode.

Positive news amid an air of “end-of-year” expectation for Bitcoin could prompt bulls to attempt to break out of $6,831.99 and rally to the next overhead resistance at $7,400.

Conversely, while markets remain largely stagnant and range-bound, pessimism and re-estimations of Bitcoin’s end of year price could prompt bears to attempt to break down from the critical support zone of $5,900–$6,075.04.

BTC/USD

In 2018, the BTC/USD pair has held the $5,900 mark on many occasions. Hence, traders can keep a stop loss of $5,900 on their long positions. A break of this can trigger a number of stop losses, resulting in a quick fall to $5,450, and further to $5,000.

ETH/USD

The rebound from the support at $188.35 has carried Ethereum to the 50-day SMA that is acting as resistance. If the bulls sustain above the 50-day SMA, a rally to the top of the range at $249.93 is probable.

ETH/USD

We are not suggesting a trade at current levels because the moving averages are flat, and the RSI has just inched into the positive territory. The indicators do not point to a trend reversal.

The ETH/USD pair is likely to embark on a new uptrend once it is above $249.93. The traders can buy the close (UTC time frame) above this resistance. Our bullish view will be invalidated if the bears sink the price below $188.35 and $167.32.

XRP/USD

The tight range in Ripple has resolved to the upside. This shows that the bulls have the upper hand in the short-term. We expect the virtual currency to resume its upward move and reach $0.62, with minor resistance at $0.55. Therefore, we suggested a buy on a breakout and close (UTC time frame) above $0.48.

We wait for a strong close because in a downtrending market, this strategy keeps us away from fake breakouts. However, when the markets become bullish, we will change the strategy and buy the breakouts, as waiting for the price to close above a certain level can result in missed trades.

XRP/USD

The 50-day SMA is trending up, and the 20-day EMA has also started to turn up. The RSI has also risen into positive territory. All these indicators point to a possible rally in the XRP/USD pair. Our bullish view will be invalidated if the bears sink the price below $0.425.  

BCH/USD

Bitcoin Cash has embarked on a bull run of its own. Buoyed by fundamental news, it has risen sharply from $408.0182 critical support.

BCH/USD

A break out of $488 invalidated the descending triangle pattern. Usually, when a bearish pattern is negated, it is a sign to go out and buy.

The pullback on the BCH/USD pair picked up momentum above $488 and quickly reached the overhead resistance at $591.41. If this level is crossed, the next target on the upside is $660.0753.

Traders who are long can keep their stop loss at $400. The RSI has reached the overbought zone. Therefore, a couple of days of consolidation is possible, after which the digital currency should resume its recovery and try to break out of $660.0753.

EOS/USD

EOS has risen close to the midpoint of the tight range of $5–$6. Both moving averages are flat, and the RSI is just above the 50 level.

EOS/USD

The current bounce from around $5 might carry the EOS/USD pair to $6, above which a rally to $6.8299 is probable. If the bulls fail to scale the $6 mark, the range bound action will be extended.

We anticipate the digital currency to start a new uptrend on a breakout above $6.8299. The target levels to keep in mind are $9.1668 and $11.4. Traders who are holding long positions can keep their stops at $4.90.

XLM/USD

Stellar has broken out of the moving averages. It is currently attempting to sustain above the downtrend line of the descending triangle. We anticipate strong resistance in the $0.24–$0.27 zone.

XLM/USD

If the bulls sustain above the downtrend line of the descending triangle, it will invalidate the bearish pattern, which is a bullish sign.  

Above $0.27, we expect the XLM/USD pair to rally to $0.36, with minor resistance at $0.304. Traders can profit from the rally by initiating long positions on a close (UTC time frame) above $0.27, and keeping the stop loss at $0.20.

LTC/USD

The bounce from the $47.246–$49.466 support zone has carried Litecoin to the 50-day SMA, triggering our buy recommendation made in a previous analysis. Traders who have entered long positions can maintain their stops at $47.

LTC/USD

The bears might provide stiff resistance in the area between the 50-day SMA and the downtrend line of the descending triangle. Traders can book partial profits near the downtrend line and hold the remaining position, because a break out of $60 will invalidate the bearish pattern and can result in a rally to the top of the range at $69.279.

The LTC/USD pair has been stuck in the $49.466–$69.279 range since early August. If the bulls clear the overhead resistance, we anticipate a new uptrend to start. Therefore, positional traders can go long on a close above $69.279.

ADA/USD

The bears could not capitalize on the break down of the symmetrical triangle. Cardano found support at $0.068989 and bounced from there. It has again entered into the triangle, invalidating the breakdown. This is a positive sign.

ADA/USD

If the bulls push the price above $0.082207, the ADA/USD pair might rally to the minimum pattern target of $0.114618. Aggressive traders can buy a close above $0.082207 with the stop loss placed below the intraday low of Oct. 31. If the price struggles to break out of $0.094256, the stops can be trailed higher, or the positions can be closed.

XMR/USD

Monero rose above the immediate resistance of $112.44 on Oct. 4. If the bulls sustain above this level, a rally to the top of the range is probable. Above $128.65, the upward move can extend to $150, which will act as a stiff resistance.

XMR/USD

If the bears push the price below the 50-day SMA, range bound action might continue. The XMR/USD pair will weaken if it slides below $100.453.

We shall wait for a new uptrend to begin before recommending any trades.

TRX/USD

TRON has reached the midpoint of the $0.0183–$0.02815521 range. It has risen above both moving averages and the RSI has also climbed above the 50 level, which is a mild positive.

TRX/USD

Though the movement inside the range is random, if the bulls succeed in sustaining above the moving averages, a gradual climb to the top of the range at $0.02815521 is probable. A new uptrend might start if the price scales above $0.03.

If buying dries up at current levels, the TRX/USD pair can slide to $0.02134798. A break down of this support can retest the critical support at $0.0183.

Market data is provided by the HitBTC exchange. Charts for analysis are provided by TradingView.

The Mysterious East: Decrypting Japanese Crypto Traders

About Japanese crypto market, Satoshi Nakamoto’s successors, industry challenges and trendsetters in the country which were first to legalize digital currency.

Japan is one of the key countries in the crypto financial world, where the headquarter of Bitcoin.com is situated, the crypto exchange Mt. Gox was established, the Bitcoin’s creator Satoshi Nakamoto name comes from, and cryptocurrencies in general are legalized.

But, what do we really know about the growing industry of cryptocurrencies in the Land of the Rising Sun? What and where can be bought in Japan with crypto? What is the attitude of the authorities towards digital assets after adoption of the regulatory legislation?

Recent changes in the structure of Japanese state apparatus, as an appointment of a prominent pro-blockchain politician Takuya Hirai as Minister of Science, Technology, and IT, could benefit the further development of the blockchain technology in the country.

Housewives behind Bitcoin surge

Before the advent of the Japanese currency, Japanese traders were considered extremely cautious and conservative. They rather preferred to invest in low-yield risk-free assets, such as national bonds.

However, a recent study by Deutsche Bank showed that a large number of Japanese crypto traders, despite all of the previous history, cease to be cautious, choosing risky, but highly profitable investments. According to Deutsche bank AG analysts, “retail investors are shifting from leveraged foreign-exchange trading to leveraged cryptocurrency trading.”

They also developed a profile of an investor who stands behind the surge in Bitcoin – so-called Mrs. Watanabe, a common term used to describe a housewife who runs her family’s finances.  Japan is unique in terms of women’s power called “okozukai” in finance system. And crypto industry is not an exception.

On April 10, 2018, the Financial Services Agency of Japan (FSA) published the first in the world statistical report on domestic cryptocurrency trading over the past financial year.

According to the data collected from seventeen crypto exchanges, the country has about 3.5 million individuals who conduct annual transactions in the amount of more than $97 billion. The bulk of these traders are Japanese businessmen around the age of 30. 143,000 of them prefer margin trading and cryptocurrency futures.

Market review

In mid-2018 Japan had a dominant share in the world trade volume of BTC. In July the pair BTC/JPY according to the CryptoCompare website accounted for almost 60% of all operations with Bitcoin, which indicated the unprecedented popularity of this currency in the country. Even as the stablecoin trend, which appeared on the market in the second half of summer, took USDT into the lead, the Japanese yen still remains in the top four currencies with the highest trading volume against Bitcoin. Although this figure has dropped to seven percent, which is eight times lower than the summer value.

BTC / JPY VOLUME AS OF JULY & OCTOBER 2018

Since 2014, the annual trading volume in pairs with Bitcoin has grown from $22 million to $97 billion in the country. At the same time, Bitcoin trading as the main asset, such as futures, has increased even more: from $2 million to $543 billion for the same period of time.

It seems that Bitcoin hasn’t lost its popularity even in view of recent events — the Japanese continue to believe in Satoshi Nakamoto’s brainchild. But diversification is also practiced — the portfolio of the average Japanese trader includes such altcoins as ETH, XRP, BCH and EOS.

Moreover, the “Trade to Mine” technology, recently announced by several cryptocurrency exchanges, is gaining popularity in Japan — local tokens are credited for trading on these exchanges. The company CoinJinja even introduced into its analytical application CoinView, a special trading bot, which can “mine” such coins. The function is called “Hummingbird” and at the moment is actively promoted both in Japan and abroad.

COINVIEW AUTOMATED TRADING BOT

Besides, in Japan there is almost no peer-to-peer trading between individuals, and 99.9 percent of all transactions are carried out through exchanges.

Mt. Gox and Coincheck

The history of digital currencies in Japan is inseparably linked with the two largest cryptocurrency hacks.

The first was the hacking of the Mt. Gox exchange in 2014, where attackers managed to steal 850,000 BTC for a total of $473 million. When news of this broke, Bitcoin’s price fell by 20 percent and only stopped around $483. It took the market a whole year to restore its previously held values.

This incident also had a “conditionally positive” effect. After the Mt. Gox collapse, regulators seriously took up the issue of regulating cryptocurrency transactions in the country, which led to the emergence of a number of bills.

Much later, in early 2018, the market experienced a second major shock — a hacker attack was directed toward the NEM hot wallet, in one of the largest crypto exchanges in Japan, Coincheck. On Jan. 28, criminals managed to withdraw the most significant amount in the history of crypto crimes — more than $500 million.

This hack sent a devastating blow to the entire Japanese crypto infrastructure, since the entire POS application of “Mobile Payment for Air Regi” belonging to the big Japanese company Recruit Lifestyle was connected to this exchange. On its own, the application was used by more than 260,000 Japanese shops for executing transactions.

The total damage caused to the global crypto economy amounted to more than $1 billion and significantly affected the dynamics of all cryptocurrencies. From that moment the state began to get involved and the direct regulation of cryptocurrency began to take more prominence.

Picture

State regulation

February 2014 — CEO of Mt. Gox Mark Karpeles held a press conference where he reported a theft of 850,000 BTC. Concerned, the Japanese government decided to look into the issue in detail.

March 7, 2014 —  the National Senate moved forward to legalize Bitcoin. The resolution didn’t consider Bitcoin as a currency or a security in accordance with the current banking law and recognized the absence of laws that would unconditionally prohibit individuals or legal entities from obtaining Bitcoin in exchange for goods or services. At the same time, authorities started discussing the possibility of applying taxation to Bitcoin.

May 4, 2016 — after lengthy disputes and discussions, Japan officially recognized Bitcoin and digital currency as “a means of payment that is not a legal currency” (Japan’s Payment Services Act (PSA), art. 2-5). Also, amendments were made to the Law on the Establishment of Foundations. According to the new legislation, all Japanese cryptocurrency exchanges must be officially registered and listed in the Financial Services Agency of Japan (FSA), in order to offer the residents cryptocurrency transactions.

April 1, 2017 — after a year of preparation, a historic bill was adopted. The government of Japan was the first in the world to give the status of a legitimate means of payment to most cryptocurrencies, which since then were no longer considered to be commodity-material assets, and hence were no longer subject to value-added tax (VAT), which accounted previously for 8 percent.

At the same time, the law on cryptocurrency exchanges came into force, designed to protect consumers from fraudulent transactions and help them to distinguish between safe and untrustworthy exchanges. According to the law, all crypto exchanges had to pass the licensing procedure with the FSA by September 2017. It presupposed certain operational requirements for exchanges, including high standards for cybersecurity, segregation of customer accounts and the verification of their identity. In addition, to obtain a license for carrying out such activities, it was necessary to pay a one-time non-refundable contribution of $300,000. In fact, it was something close to the Japanese equivalent of BitLicense, introduced in 2015 by the state of New York.

To date, the FSA’s license for financial transactions has been received by sixteen local exchanges, including Bitflyer, Bitbank, Bittrade, and Bitocean. While about sixteen exchanges received a temporary status of “quasi-operators” — a special category of exchanges that started their activities before the introduction of licensing.

Another important measure of the new requirements was the global counteraction to money laundering (AML). As part of the policy, the Agency imposed a ban on anonymous cryptocurrencies, such as Monero or Dash, because of the potential for their use for fraudulent purposes. The official law came into force on June 18.

How did this affect ordinary crypto traders?

On the one hand, after the legalization of BTC and altcoins, 8 percent of VAT has been removed from the total amount of taxes. However, traders didn’t receive complete freedom from taxation-related obligations.

In February 2018, the Japanese National Tax Agency revised the issue. Now, traders must pay the government from 15 to 55 percent, while the profits from forex exchanges and trade promotions were taxed with a fee of up to 20 percent.

The amendment triggered a dual reaction among market participants, some of which started considering transferring their activities to other states. During one of the interviews to Finance Magnates a Japanese crypto influencer Koji Higashi shared his outrage at the taxation in his country, which he considered to be “hurting the industry quite a lot”:

“It doesn’t make sense to use Bitcoin as a payment in Japan. Technically, you can buy a car now using Bitcoin, but it doesn’t make sense because of the tax.”

On the other hand, cryptotraders in Japan now receives full legal state protection of their activities and assets. For this purpose, Japanese regulators have already sent business improvement orders, related to anti-money laundering (AML) and know-your-customer (KYC) requirements, to six major cryptocurrency exchanges, Cointelegraph reported on June 22.  

Due to the high popularity of cryptocurrency in the country and its legal status, the topic of blockchain and digital money is widely covered in media outlets. Moreover, there exists among the traders a lot of so-called “message boards” which are widely used for facilitating the search of information –– aggregators of news from various sources, both Japanese and foreign. This practice allows readers navigating successfully in the news background and make correct predictions.

Bitcoin accepted

Bitcoin in Japan is accepted for payment by large companies, including air carriers, hotels and retail chains, as well as by thousands of small sellers.

BITCOIN ACCEPTING VENUES IN JAPAN

To conduct payment, POS-terminals integrated with cryptocurrency exchanges are used. In Tokyo, these places are mostly situated in the Roppongi area, particularly in restaurants and bars. For example, in the Hackers Bar you can drink coffee for BTC and discuss the basics of cryptography with the barista.

Living 100% without fiat money in Japan will not be possible at the moment. Payment for metro tickets, renting a house, buying most goods, especially European or American, are still made only for purchase with yen. But, one can always use an extensive network of crypto ATMs.

Local cryptocurrencies

In addition to Bitcoin, Japan has its universally recognized, “local” cryptocurrencies.

MonaCoin (MONA) is the first Japanese cryptocurrency to have one of the most active communities on the Internet. This is one of the few currencies in the world that is currently used to purchase online / offline products. MonaCoin is accepted by large restaurants and shops.

Cardano (ADA) is another very popular cryptocurrency in Japan, sometimes called the “Ethereum killer” or “third generation blockchain”. Cardano plans to issue debit cards, which can be transferred to ADA from the Daedalus wallet. In this case, the tokens will be automatically converted into Japanese yens or other local currency, and these ADA cards can be used to withdraw cash from ATMs or to pay for goods in stores.

Nakamoto’s successors

Japanese opinion leaders include bloggers, businessmen, and politicians.

Koji Higashi has been working in the Japanese crypto business since 2014. He conducts various educational blockchain projects and owns the popular Japanese YouTube channel about cryptocurrencies called “Bitcoin Hanseikai”. He is well-known for his criticism of Japan’s legislative system in the field of cryptocurrencies and skeptical comments on many altcoins.

Miko Matsumura is the founder of Evercoin crypto exchange and BitBull Capital venture partner. As a key evangelist for the Java language and platform he participated in the first wave of the Internet, and devoted himself to the Internet of Value (IoV). During his 25 years career as an executive director in Silicon Valley, he raised more than $50 million in venture capital for start-ups with open source and more than $200 million for ICO projects.

Takuya Hirai is a member of the ruling Liberal Democratic Party and the author of 2017 law on the legalization of crypto exchanges. Together with representatives of the financial groups Mitsubishi UFJ, Mitsui, and Mizuho; Yuzo Kano, head of the country’s largest exchange bitFlyer, and Toshifumi Kokubun, professor at the University of Tama in Tokyo, he is currently contributing to the development of the ICO regulation.

New type of Japanese businessmen

Japan is a state with a unique spirit, culture, and market, whose government was first ready to innovate during the cryptocurrency boom. The introduction of legislative amendments allowed the emergence of a new type of Japanese businessmen – cryptocurrency traders, who annually pay substantial dividends to the treasury.

Legalization has led to a noticeable increase of the popularity of blockchain technology in the country. Bitcoin and altcoins are discussed on central TV channels, and in major news outlets. Promising blockchain start-ups are appearing everywhere, state institutions conduct technological research, and ordinary people can send and accept cross-border transfers without fear of being fined by the government or hacked by fraudsters.

Moreover, large players from other Asian countries, such as South Korea and China, have begun to move to the Japanese market, bringing an even larger influx of budget money. While the analysts expect that cryptocurrency may contribute 0.3 percent to Japan’s gross domestic product in 2018, the final result that the digital money has brought to the Land of the Rising Sun will be revealed by the annual financial report.

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Author: Julia Magas

The Mysterious East: Decrypting Japanese Crypto Traders

About Japanese crypto market, Satoshi Nakamoto’s successors, industry challenges and trendsetters in the country which were first to legalize digital currency.

Japan is one of the key countries in the crypto financial world, where the headquarter of Bitcoin.com is situated, the crypto exchange Mt. Gox was established, the Bitcoin’s creator Satoshi Nakamoto name comes from, and cryptocurrencies in general are legalized.

But, what do we really know about the growing industry of cryptocurrencies in the Land of the Rising Sun? What and where can be bought in Japan with crypto? What is the attitude of the authorities towards digital assets after adoption of the regulatory legislation?

Recent changes in the structure of Japanese state apparatus, as an appointment of a prominent pro-blockchain politician Takuya Hirai as Minister of Science, Technology, and IT, could benefit the further development of the blockchain technology in the country.

Housewives behind Bitcoin surge

Before the advent of the Japanese currency, Japanese traders were considered extremely cautious and conservative. They rather preferred to invest in low-yield risk-free assets, such as national bonds.

However, a recent study by Deutsche Bank showed that a large number of Japanese crypto traders, despite all of the previous history, cease to be cautious, choosing risky, but highly profitable investments. According to Deutsche bank AG analysts, “retail investors are shifting from leveraged foreign-exchange trading to leveraged cryptocurrency trading.”

They also developed a profile of an investor who stands behind the surge in Bitcoin – so-called Mrs. Watanabe, a common term used to describe a housewife who runs her family’s finances.  Japan is unique in terms of women’s power called “okozukai” in finance system. And crypto industry is not an exception.

On April 10, 2018, the Financial Services Agency of Japan (FSA) published the first in the world statistical report on domestic cryptocurrency trading over the past financial year.

According to the data collected from seventeen crypto exchanges, the country has about 3.5 million individuals who conduct annual transactions in the amount of more than $97 billion. The bulk of these traders are Japanese businessmen around the age of 30. 143,000 of them prefer margin trading and cryptocurrency futures.

Market review

In mid-2018 Japan had a dominant share in the world trade volume of BTC. In July the pair BTC/JPY according to the CryptoCompare website accounted for almost 60% of all operations with Bitcoin, which indicated the unprecedented popularity of this currency in the country. Even as the stablecoin trend, which appeared on the market in the second half of summer, took USDT into the lead, the Japanese yen still remains in the top four currencies with the highest trading volume against Bitcoin. Although this figure has dropped to seven percent, which is eight times lower than the summer value.

BTC / JPY VOLUME AS OF JULY & OCTOBER 2018

Since 2014, the annual trading volume in pairs with Bitcoin has grown from $22 million to $97 billion in the country. At the same time, Bitcoin trading as the main asset, such as futures, has increased even more: from $2 million to $543 billion for the same period of time.

It seems that Bitcoin hasn’t lost its popularity even in view of recent events — the Japanese continue to believe in Satoshi Nakamoto’s brainchild. But diversification is also practiced — the portfolio of the average Japanese trader includes such altcoins as ETH, XRP, BCH and EOS.

Moreover, the "Trade to Mine" technology, recently announced by several cryptocurrency exchanges, is gaining popularity in Japan — local tokens are credited for trading on these exchanges. The company CoinJinja even introduced into its analytical application CoinView, a special trading bot, which can "mine" such coins. The function is called “Hummingbird” and at the moment is actively promoted both in Japan and abroad.

COINVIEW AUTOMATED TRADING BOT

Besides, in Japan there is almost no peer-to-peer trading between individuals, and 99.9 percent of all transactions are carried out through exchanges.

Mt. Gox and Coincheck

The history of digital currencies in Japan is inseparably linked with the two largest cryptocurrency hacks.

The first was the hacking of the Mt. Gox exchange in 2014, where attackers managed to steal 850,000 BTC for a total of $473 million. When news of this broke, Bitcoin's price fell by 20 percent and only stopped around $483. It took the market a whole year to restore its previously held values.

This incident also had a "conditionally positive" effect. After the Mt. Gox collapse, regulators seriously took up the issue of regulating cryptocurrency transactions in the country, which led to the emergence of a number of bills.

Much later, in early 2018, the market experienced a second major shock — a hacker attack was directed toward the NEM hot wallet, in one of the largest crypto exchanges in Japan, Coincheck. On Jan. 28, criminals managed to withdraw the most significant amount in the history of crypto crimes — more than $500 million.

This hack sent a devastating blow to the entire Japanese crypto infrastructure, since the entire POS application of "Mobile Payment for Air Regi" belonging to the big Japanese company Recruit Lifestyle was connected to this exchange. On its own, the application was used by more than 260,000 Japanese shops for executing transactions.

The total damage caused to the global crypto economy amounted to more than $1 billion and significantly affected the dynamics of all cryptocurrencies. From that moment the state began to get involved and the direct regulation of cryptocurrency began to take more prominence.

Picture

State regulation

February 2014 — CEO of Mt. Gox Mark Karpeles held a press conference where he reported a theft of 850,000 BTC. Concerned, the Japanese government decided to look into the issue in detail.

March 7, 2014 —  the National Senate moved forward to legalize Bitcoin. The resolution didn’t consider Bitcoin as a currency or a security in accordance with the current banking law and recognized the absence of laws that would unconditionally prohibit individuals or legal entities from obtaining Bitcoin in exchange for goods or services. At the same time, authorities started discussing the possibility of applying taxation to Bitcoin.

May 4, 2016 — after lengthy disputes and discussions, Japan officially recognized Bitcoin and digital currency as "a means of payment that is not a legal currency" (Japan's Payment Services Act (PSA), art. 2-5). Also, amendments were made to the Law on the Establishment of Foundations. According to the new legislation, all Japanese cryptocurrency exchanges must be officially registered and listed in the Financial Services Agency of Japan (FSA), in order to offer the residents cryptocurrency transactions.

April 1, 2017 — after a year of preparation, a historic bill was adopted. The government of Japan was the first in the world to give the status of a legitimate means of payment to most cryptocurrencies, which since then were no longer considered to be commodity-material assets, and hence were no longer subject to value-added tax (VAT), which accounted previously for 8 percent.

At the same time, the law on cryptocurrency exchanges came into force, designed to protect consumers from fraudulent transactions and help them to distinguish between safe and untrustworthy exchanges. According to the law, all crypto exchanges had to pass the licensing procedure with the FSA by September 2017. It presupposed certain operational requirements for exchanges, including high standards for cybersecurity, segregation of customer accounts and the verification of their identity. In addition, to obtain a license for carrying out such activities, it was necessary to pay a one-time non-refundable contribution of $300,000. In fact, it was something close to the Japanese equivalent of BitLicense, introduced in 2015 by the state of New York.

To date, the FSA's license for financial transactions has been received by sixteen local exchanges, including Bitflyer, Bitbank, Bittrade, and Bitocean. While about sixteen exchanges received a temporary status of "quasi-operators" — a special category of exchanges that started their activities before the introduction of licensing.

Another important measure of the new requirements was the global counteraction to money laundering (AML). As part of the policy, the Agency imposed a ban on anonymous cryptocurrencies, such as Monero or Dash, because of the potential for their use for fraudulent purposes. The official law came into force on June 18.

How did this affect ordinary crypto traders?

On the one hand, after the legalization of BTC and altcoins, 8 percent of VAT has been removed from the total amount of taxes. However, traders didn’t receive complete freedom from taxation-related obligations.

In February 2018, the Japanese National Tax Agency revised the issue. Now, traders must pay the government from 15 to 55 percent, while the profits from forex exchanges and trade promotions were taxed with a fee of up to 20 percent.

The amendment triggered a dual reaction among market participants, some of which started considering transferring their activities to other states. During one of the interviews to Finance Magnates a Japanese crypto influencer Koji Higashi shared his outrage at the taxation in his country, which he considered to be “hurting the industry quite a lot”:

“It doesn’t make sense to use Bitcoin as a payment in Japan. Technically, you can buy a car now using Bitcoin, but it doesn’t make sense because of the tax.”

On the other hand, cryptotraders in Japan now receives full legal state protection of their activities and assets. For this purpose, Japanese regulators have already sent business improvement orders, related to anti-money laundering (AML) and know-your-customer (KYC) requirements, to six major cryptocurrency exchanges, Cointelegraph reported on June 22.  

Due to the high popularity of cryptocurrency in the country and its legal status, the topic of blockchain and digital money is widely covered in media outlets. Moreover, there exists among the traders a lot of so-called "message boards" which are widely used for facilitating the search of information –– aggregators of news from various sources, both Japanese and foreign. This practice allows readers navigating successfully in the news background and make correct predictions.

Bitcoin accepted

Bitcoin in Japan is accepted for payment by large companies, including air carriers, hotels and retail chains, as well as by thousands of small sellers.

BITCOIN ACCEPTING VENUES IN JAPAN

To conduct payment, POS-terminals integrated with cryptocurrency exchanges are used. In Tokyo, these places are mostly situated in the Roppongi area, particularly in restaurants and bars. For example, in the Hackers Bar you can drink coffee for BTC and discuss the basics of cryptography with the barista.

Living 100% without fiat money in Japan will not be possible at the moment. Payment for metro tickets, renting a house, buying most goods, especially European or American, are still made only for purchase with yen. But, one can always use an extensive network of crypto ATMs.

Local cryptocurrencies

In addition to Bitcoin, Japan has its universally recognized, "local" cryptocurrencies.

MonaCoin (MONA) is the first Japanese cryptocurrency to have one of the most active communities on the Internet. This is one of the few currencies in the world that is currently used to purchase online / offline products. MonaCoin is accepted by large restaurants and shops.

Cardano (ADA) is another very popular cryptocurrency in Japan, sometimes called the "Ethereum killer" or "third generation blockchain". Cardano plans to issue debit cards, which can be transferred to ADA from the Daedalus wallet. In this case, the tokens will be automatically converted into Japanese yens or other local currency, and these ADA cards can be used to withdraw cash from ATMs or to pay for goods in stores.

Nakamoto’s successors

Japanese opinion leaders include bloggers, businessmen, and politicians.

Koji Higashi has been working in the Japanese crypto business since 2014. He conducts various educational blockchain projects and owns the popular Japanese YouTube channel about cryptocurrencies called "Bitcoin Hanseikai". He is well-known for his criticism of Japan's legislative system in the field of cryptocurrencies and skeptical comments on many altcoins.

Miko Matsumura is the founder of Evercoin crypto exchange and BitBull Capital venture partner. As a key evangelist for the Java language and platform he participated in the first wave of the Internet, and devoted himself to the Internet of Value (IoV). During his 25 years career as an executive director in Silicon Valley, he raised more than $50 million in venture capital for start-ups with open source and more than $200 million for ICO projects.

Takuya Hirai is a member of the ruling Liberal Democratic Party and the author of 2017 law on the legalization of crypto exchanges. Together with representatives of the financial groups Mitsubishi UFJ, Mitsui, and Mizuho; Yuzo Kano, head of the country's largest exchange bitFlyer, and Toshifumi Kokubun, professor at the University of Tama in Tokyo, he is currently contributing to the development of the ICO regulation.

New type of Japanese businessmen

Japan is a state with a unique spirit, culture, and market, whose government was first ready to innovate during the cryptocurrency boom. The introduction of legislative amendments allowed the emergence of a new type of Japanese businessmen – cryptocurrency traders, who annually pay substantial dividends to the treasury.

Legalization has led to a noticeable increase of the popularity of blockchain technology in the country. Bitcoin and altcoins are discussed on central TV channels, and in major news outlets. Promising blockchain start-ups are appearing everywhere, state institutions conduct technological research, and ordinary people can send and accept cross-border transfers without fear of being fined by the government or hacked by fraudsters.

Moreover, large players from other Asian countries, such as South Korea and China, have begun to move to the Japanese market, bringing an even larger influx of budget money. While the analysts expect that cryptocurrency may contribute 0.3 percent to Japan’s gross domestic product in 2018, the final result that the digital money has brought to the Land of the Rising Sun will be revealed by the annual financial report.

Bitcoin Futures Volatility Hit Record Low in October: CBOE

Bitcoin has been unusually stable in recent weeks, and the decrease in volatility has now reached historic levels in the futures markets. Bitcoin Volatility Hits Record Level in Futures Markets That’s according to Kevin Davitt, senior instructor for The Options Institute at CBOE Global Markets, who said that Chicago-based derivatives exchange saws record low volatility

The post Bitcoin Futures Volatility Hit Record Low in October: CBOE appeared first on CCN

Bitcoin Cash Fork Watch: BCH Infrastructure Providers Reveal Contingency Plans

Bitcoin Cash Fork Watch: BCH Infrastructure Providers Reveal Contingency Plans

There’s only 10 days left until the Bitcoin Cash (BCH) network hard fork scheduled for Nov. 15. At the moment the upgrade has two competing BCH clients with different ruleset changes, so the upcoming fork could cause a chain split. Because of the contention over certain upgrade proposals, a slew of exchanges and wallet providers have revealed their contingency plans for the upcoming consensus change.

Also read: Developers Launch BDIP: A Bitcoin Cash Proposal Process for Decentralized Apps  

Hard Fork Contingency Plans Are Laid Out

Bitcoin Cash fans have a lot going on over the next week as the community is expecting a fork on Nov. 15, but this time around the consensus changes are somewhat contentious. At the time of publication, there is a disagreement between the two developing teams Bitcoin ABC and Bitcoin SV, which could lead to a network split. Until recently, Bitasiaex, Coinex, and Ledger Wallet were the major companies to have detailed their plans for the fork, but since then a tidal wave of other businesses have come forward.  

Binance and Coinbase

Bitcoin Cash Fork Watch: BCH Infrastructure Providers Reveal Contingency PlansFor instance, on Nov. 2 the trading platforms Coinbase and Binance disclosed how the companies plan to handle the fork situation. Binance announced it plans to “support the upcoming Bitcoin Cash hard fork” in a blog post published that morning.

“Binance would like to confirm support for the upcoming Bitcoin Cash hard fork. We will take a snapshot of all Bitcoin Cash balances at UNIX time 1542300000, 2018/11/15 4:40:00 PM (UTC),” the exchange wrote. “Deposits and withdrawals of bitcoin cash will be suspended starting from 2018/11/15 3:00:00 PM (UTC).”

Binance continued by stating that it will follow up with a second announcement after the fork. The exchange concluded by stating that Binance users can refer to the 2018 BCH upgrade Github repository published by the Bitcoin ABC team.   

Bitcoin Cash Fork Watch: BCH Infrastructure Providers Reveal Contingency PlansAfter the statements from Binance, 12 hours later Coinbase published an announcement concerning the BCH network fork. The San Francisco exchange detailed the service is “prepared to support the published roadmap from Bitcoincash.org,” and also linked to the Github repository page published by the Bitcoin ABC team. Coinbase said in its blog post that approximately one hour before the fork the business will pause BCH transactions. The company explained that customers can be sure their funds will remain safe at Coinbase. “In the unlikely event that multiple viable chains persist after the fork, Coinbase will ensure that customers have access to their funds on each chain,” the organization emphasized.

Poloniex and Kucoin

Bitcoin Cash Fork Watch: BCH Infrastructure Providers Reveal Contingency PlansOn Nov. 5, Poloniex exchangem which is owned by Circle Financial, revealed its plans to support the Nov. 15 BCH fork and pause transactions. According to the trading platform, the exchange will take a snapshot of all BCH balances prior to the fork and stop BCH transactions during the upgrade. “Once the network stabilizes, we will make an announcement and re-enable deposits and withdrawals,” explained Poloniex. The trading platform concluded by stating that users can also refer to the Bitcoin ABC roadmap.

Bitcoin Cash Fork Watch: BCH Infrastructure Providers Reveal Contingency PlansThe same day, the Kucoin cryptocurrency exchange explained it would be supporting the Bitcoin ABC hard fork roadmap. Before the fork takes place, Kucoin will take a balance snapshot and suspend BCH transactions. “Deposits and withdrawals of BCH will be suspended at 23:00:00 on November 15th, 2018 (UTC+8),” explained the trading platform.  

Wallet Providers Trezor and Cointext

Bitcoin Cash Fork Watch: BCH Infrastructure Providers Reveal Contingency PlansOn Twitter, the hardware wallet company Trezor explained to the cryptocurrency community its plan for the upcoming fork. Trezor detailed that its server runs the Bitcoin ABC client and will follow with the development team’s upgrade proposal. “There is no replay protection, so users have to take their own measures to split the coins on other chains that may emerge,” Trezor emphasized. It added, “Electron Cash supports Trezor and supports all chains, so users can select the server supporting the chain they want to use.”

Bitcoin Cash Fork Watch: BCH Infrastructure Providers Reveal Contingency PlansAnother BCH wallet provider, Cointext, has published contingency plans in regard to the fork on Nov. 15. The wallet provider has said all Cointext BCH access numbers will remain fully available to users and the company will read from the blockchain as it exists on nodes running Bitcoin ABC and Bitcoin Unlimited. “Cointext will broadcast transactions so that those transactions have the highest probability of being accepted by nodes running every ruleset and mined into every blockchain on the network,” the organization detailed.  

Lots of Exchanges and Wallet Providers Have Come Forward With More to Come

Overall, quite a few exchanges and wallet providers have come forward and there will likely be more statements during the course of next week. In addition to the announcements above, our own Bitcoin.com Wallet, Block Explorer, and other services are currently running “Bitcoin ABC 18.2 with Bitcoin Unlimited 1.5.0.0 as the clients powering our services.” Additionally, another exchange called Bitz revealed on Reddit it would support the November fork, but the platform didn’t detail which implementation they would be running. Lastly, the developer of Yours.org and the Money Button, Ryan X Charles, published a video on what he thinks exchanges and wallets should do to prepare for the fork. Charles explains that he believes infrastructure providers should support both sides if there’s a split. The Money Button creator says he will be looking into this idea in order to implement it into the Money Button wallet.

What do you think about the network hard fork approaching and the two disagreeing parties involved? What are your thoughts on the decisions exchanges and wallets have detailed so far? Let us know what you think about this subject in the comments section below.


Images via Shutterstock, and the BCH infrastructure providers mentioned above.


Want to create your own secure cold storage paper wallet? Check our tools section.

The post Bitcoin Cash Fork Watch: BCH Infrastructure Providers Reveal Contingency Plans appeared first on Bitcoin News.

Bitcoin Cash Fork Watch: BCH Infrastructure Providers Reveal Contingency Plans

Bitcoin Cash Fork Watch: BCH Infrastructure Providers Reveal Contingency Plans

There’s only 10 days left until the Bitcoin Cash (BCH) network hard fork scheduled for Nov. 15. At the moment the upgrade has two competing BCH clients with different ruleset changes, so the upcoming fork could cause a chain split. Because of the contention over certain upgrade proposals, a slew of exchanges and wallet providers have revealed their contingency plans for the upcoming consensus change.

Also read: Developers Launch BDIP: A Bitcoin Cash Proposal Process for Decentralized Apps  

Hard Fork Contingency Plans Are Laid Out

Bitcoin Cash fans have a lot going on over the next week as the community is expecting a fork on Nov. 15, but this time around the consensus changes are somewhat contentious. At the time of publication, there is a disagreement between the two developing teams Bitcoin ABC and Bitcoin SV, which could lead to a network split. Until recently, Bitasiaex, Coinex, and Ledger Wallet were the major companies to have detailed their plans for the fork, but since then a tidal wave of other businesses have come forward.  

Binance and Coinbase

Bitcoin Cash Fork Watch: BCH Infrastructure Providers Reveal Contingency PlansFor instance, on Nov. 2 the trading platforms Coinbase and Binance disclosed how the companies plan to handle the fork situation. Binance announced it plans to “support the upcoming Bitcoin Cash hard fork” in a blog post published that morning.

“Binance would like to confirm support for the upcoming Bitcoin Cash hard fork. We will take a snapshot of all Bitcoin Cash balances at UNIX time 1542300000, 2018/11/15 4:40:00 PM (UTC),” the exchange wrote. “Deposits and withdrawals of bitcoin cash will be suspended starting from 2018/11/15 3:00:00 PM (UTC).”

Binance continued by stating that it will follow up with a second announcement after the fork. The exchange concluded by stating that Binance users can refer to the 2018 BCH upgrade Github repository published by the Bitcoin ABC team.   

Bitcoin Cash Fork Watch: BCH Infrastructure Providers Reveal Contingency PlansAfter the statements from Binance, 12 hours later Coinbase published an announcement concerning the BCH network fork. The San Francisco exchange detailed the service is “prepared to support the published roadmap from Bitcoincash.org,” and also linked to the Github repository page published by the Bitcoin ABC team. Coinbase said in its blog post that approximately one hour before the fork the business will pause BCH transactions. The company explained that customers can be sure their funds will remain safe at Coinbase. “In the unlikely event that multiple viable chains persist after the fork, Coinbase will ensure that customers have access to their funds on each chain,” the organization emphasized.

Poloniex and Kucoin

Bitcoin Cash Fork Watch: BCH Infrastructure Providers Reveal Contingency PlansOn Nov. 5, Poloniex exchangem which is owned by Circle Financial, revealed its plans to support the Nov. 15 BCH fork and pause transactions. According to the trading platform, the exchange will take a snapshot of all BCH balances prior to the fork and stop BCH transactions during the upgrade. “Once the network stabilizes, we will make an announcement and re-enable deposits and withdrawals,” explained Poloniex. The trading platform concluded by stating that users can also refer to the Bitcoin ABC roadmap.

Bitcoin Cash Fork Watch: BCH Infrastructure Providers Reveal Contingency PlansThe same day, the Kucoin cryptocurrency exchange explained it would be supporting the Bitcoin ABC hard fork roadmap. Before the fork takes place, Kucoin will take a balance snapshot and suspend BCH transactions. “Deposits and withdrawals of BCH will be suspended at 23:00:00 on November 15th, 2018 (UTC+8),” explained the trading platform.  

Wallet Providers Trezor and Cointext

Bitcoin Cash Fork Watch: BCH Infrastructure Providers Reveal Contingency PlansOn Twitter, the hardware wallet company Trezor explained to the cryptocurrency community its plan for the upcoming fork. Trezor detailed that its server runs the Bitcoin ABC client and will follow with the development team’s upgrade proposal. “There is no replay protection, so users have to take their own measures to split the coins on other chains that may emerge,” Trezor emphasized. It added, “Electron Cash supports Trezor and supports all chains, so users can select the server supporting the chain they want to use.”

Bitcoin Cash Fork Watch: BCH Infrastructure Providers Reveal Contingency PlansAnother BCH wallet provider, Cointext, has published contingency plans in regard to the fork on Nov. 15. The wallet provider has said all Cointext BCH access numbers will remain fully available to users and the company will read from the blockchain as it exists on nodes running Bitcoin ABC and Bitcoin Unlimited. “Cointext will broadcast transactions so that those transactions have the highest probability of being accepted by nodes running every ruleset and mined into every blockchain on the network,” the organization detailed.  

Lots of Exchanges and Wallet Providers Have Come Forward With More to Come

Overall, quite a few exchanges and wallet providers have come forward and there will likely be more statements during the course of next week. In addition to the announcements above, our own Bitcoin.com Wallet, Block Explorer, and other services are currently running “Bitcoin ABC 18.2 with Bitcoin Unlimited 1.5.0.0 as the clients powering our services.” Additionally, another exchange called Bitz revealed on Reddit it would support the November fork, but the platform didn’t detail which implementation they would be running. Lastly, the developer of Yours.org and the Money Button, Ryan X Charles, published a video on what he thinks exchanges and wallets should do to prepare for the fork. Charles explains that he believes infrastructure providers should support both sides if there’s a split. The Money Button creator says he will be looking into this idea in order to implement it into the Money Button wallet.

What do you think about the network hard fork approaching and the two disagreeing parties involved? What are your thoughts on the decisions exchanges and wallets have detailed so far? Let us know what you think about this subject in the comments section below.


Images via Shutterstock, and the BCH infrastructure providers mentioned above.


Want to create your own secure cold storage paper wallet? Check our tools section.

The post Bitcoin Cash Fork Watch: BCH Infrastructure Providers Reveal Contingency Plans appeared first on Bitcoin News.

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Author: Jamie Redman

Another Report Says Crypto Mining Uses More Power than Traditional Mining

A report published today has stated that mining $1 worth of Bitcoin requires more electricity than mining almost any material traditionally dug from the earth.

The authors state that between three million and 15 million tons of carbon emissions have been caused by the sector over the last two years.

Another Report into the Environmental Impact of Bitcoin

According to research conducted for the Nature Sustainability, a British journal, it requires more energy to create a single dollar’s worth of BTC than it does to mine the same value of precious metals, rare earth metals, gold, or copper.

In fact, the only material mentioned in the report that Bitcoin was less energy efficient than was aluminium.

The report, titled “Quantification of energy and carbon costs for mining cryptocurrencies” was authored by Max Krause and Thabet Tolaymat. Both contributors work at the U.S. Environmental Protection Agency (EPA). However, they claim it was completed entirely independently and without funding from the organisation.

It was not just the most popular digital asset that the authors tested the green credentials of, however. During the document, the power required to create $1 worth of three other large market capitalisation cryptocurrencies were compared with one another. It was found that Bitcoin and Monero are the most power hungry networks. These required 17 and 14 megajoules (MJ) respectively. Meanwhile, at around half this figure are Litecoin and Ethereum.

The same data was then presented for different materials requiring “mining.” Rare earth metals – neodymium, cerium, etc -, precious metals, gold, and copper all required less energy to produce than either Bitcoin or Monero at nine, seven, five, and four MJ respectively.

All of these figures are averages for the two-and-a-half year period between January 2016 and June 2018. Krause and Tolaymat state that the four blockchains included in the report are responsible for between three million and 15 million tonnes of carbon emissions over the same time span.

However, the report neglects the fact that a lot has changed in cryptocurrency over the course of that period. Possibly most importantly is that mining is rapidly spreading outside of China. With mining rig operators seeking the cheapest energy possible, many have settled in Canada thanks to its abundant hydro-electric resources or Iceland with its geothermal energy.

A green mining operation running off surplus hydro-electricity barely has any impact on the environment whereas a warehouse full of rigs sucking fossil fuel-generated power direct from the Chinese grid is obviously orders of magnitude less sustainable.

Krause spoke to BuzzFeed.News about some of the report’s other shortcomings. He said that despite both being mined, digital currencies and physical metals are not “functional substitutes” meaning the comparisons were always going to be problematic. He said the aim of the self-funded report was to create awareness about the impact digital currencies could be having on the environment rather than make some profound comparison between the two “mined” assets.

The author also acknowledged that the environmental impact of a Bitcoin once created is far less than that of a physical metal that needs shaping, transporting, and storing in ways that are simply not required for the intangible asset Bitcoin.

The voices of protest against Bitcoin and other cryptocurrencies on strictly environmental grounds seem to be growing louder lately.

At the end of last month, a study was published by Nature Climate Change warning that energy-demanding Bitcoin transactions would easily sling the global temperature past the 2-degree threshold set under the Paris Climate Agreement.

However, all transformative technologies start off as hopelessly inefficient. If they prove their utility to society, it then becomes a race towards efficiency. We already see this occurring today as mining manufacturers strive to create less energy-hungry units and operators seek cheaper, renewable energy.

Featured image from Shutterstock.

The post Another Report Says Crypto Mining Uses More Power than Traditional Mining appeared first on NewsBTC.

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Author: Rick D.

Another Report Says Crypto Mining Uses More Power than Traditional Mining

A report published today has stated that mining $1 worth of Bitcoin requires more electricity than mining almost any material traditionally dug from the earth.

The authors state that between three million and 15 million tons of carbon emissions have been caused by the sector over the last two years.

Another Report into the Environmental Impact of Bitcoin

According to research conducted for the Nature Sustainability, a British journal, it requires more energy to create a single dollar’s worth of BTC than it does to mine the same value of precious metals, rare earth metals, gold, or copper.

In fact, the only material mentioned in the report that Bitcoin was less energy efficient than was aluminium.

The report, titled “Quantification of energy and carbon costs for mining cryptocurrencies” was authored by Max Krause and Thabet Tolaymat. Both contributors work at the U.S. Environmental Protection Agency (EPA). However, they claim it was completed entirely independently and without funding from the organisation.

It was not just the most popular digital asset that the authors tested the green credentials of, however. During the document, the power required to create $1 worth of three other large market capitalisation cryptocurrencies were compared with one another. It was found that Bitcoin and Monero are the most power hungry networks. These required 17 and 14 megajoules (MJ) respectively. Meanwhile, at around half this figure are Litecoin and Ethereum.

The same data was then presented for different materials requiring “mining.” Rare earth metals – neodymium, cerium, etc -, precious metals, gold, and copper all required less energy to produce than either Bitcoin or Monero at nine, seven, five, and four MJ respectively.

All of these figures are averages for the two-and-a-half year period between January 2016 and June 2018. Krause and Tolaymat state that the four blockchains included in the report are responsible for between three million and 15 million tonnes of carbon emissions over the same time span.

However, the report neglects the fact that a lot has changed in cryptocurrency over the course of that period. Possibly most importantly is that mining is rapidly spreading outside of China. With mining rig operators seeking the cheapest energy possible, many have settled in Canada thanks to its abundant hydro-electric resources or Iceland with its geothermal energy.

A green mining operation running off surplus hydro-electricity barely has any impact on the environment whereas a warehouse full of rigs sucking fossil fuel-generated power direct from the Chinese grid is obviously orders of magnitude less sustainable.

Krause spoke to BuzzFeed.News about some of the report’s other shortcomings. He said that despite both being mined, digital currencies and physical metals are not “functional substitutes” meaning the comparisons were always going to be problematic. He said the aim of the self-funded report was to create awareness about the impact digital currencies could be having on the environment rather than make some profound comparison between the two “mined” assets.

The author also acknowledged that the environmental impact of a Bitcoin once created is far less than that of a physical metal that needs shaping, transporting, and storing in ways that are simply not required for the intangible asset Bitcoin.

The voices of protest against Bitcoin and other cryptocurrencies on strictly environmental grounds seem to be growing louder lately.

At the end of last month, a study was published by Nature Climate Change warning that energy-demanding Bitcoin transactions would easily sling the global temperature past the 2-degree threshold set under the Paris Climate Agreement.

However, all transformative technologies start off as hopelessly inefficient. If they prove their utility to society, it then becomes a race towards efficiency. We already see this occurring today as mining manufacturers strive to create less energy-hungry units and operators seek cheaper, renewable energy.

Featured image from Shutterstock.

The post Another Report Says Crypto Mining Uses More Power than Traditional Mining appeared first on NewsBTC.

BitMEX Launches New Fork Monitoring Website to Keep Track of Bitcoin Forks

Bitmex Fork Monitoring

BitMEX just launched a website to make it easier to keep tabs on hard and soft forks on the Bitcoin blockchain.

According to a recent blog post, the research arm of BitMEX is sponsoring a new website, ForkMonitor.info, which is connected to 13 nodes of Bitcoin and its hard forks, most notably Bitcoin Cash.

The website will monitor many different aspects of the networks and their associated blockchains, with the ultimate goal of keeping track of these variables during forks to be “potentially useful in helping to detect unintentional consensus bugs.”

The article says that BitMEX is launching this new website in anticipation of an upcoming hard fork for Bitcoin Cash, which is expected to take place on November 15, 2018.

BitMEX Research took to Twitter to announce its new tool. In the comment section, the company continued to take shots at Craig Wright, whose infamous claiming of Satoshi Nakamoto’s identity has made him a pariah in the industry, for his part in the November 15 fork.

“[Craig Wright’s] (AKA “Fake Satoshi”) node, Bitcoin SV, is expected to fork off from the network onto a new chain,” the thread reads.

The Twitter thread went on to explicitly state that the focus of Fork Monitor will be to examine Bitcoin’s network, insinuating that the website’s highest priority isn’t necessarily looking to keep precise notes on Bitcoin Cash and its own forks.

Still, the planned date of the BCH hard fork has given BitMEX ample time to build a functional monitoring website that will eventually gather more hard data. At its current stage, Fork Monitor is something of a pilot project, albeit one that “will hopefully provide useful information to some stakeholders” in the future.

This article originally appeared on Bitcoin Magazine.

Go to Source
Author: Landon Manning

Bitcoin Price Establishes New Weekly High But Slips into Bearish Correction

On Monday, bitcoin underwent a bearish correction after establishing a new weekly high at 6440-fiat, falling close to 0.8 percent. Bitcoin Hits Weekly High The BTC/USD pair is trading in a bull trend above the 200-period simple moving average on hourly charts. The big move yesterday seems to have appeared more because of Tether, whose

The post Bitcoin Price Establishes New Weekly High But Slips into Bearish Correction appeared first on CCN

China’s Central Bank Wants to Put the Damper Airdrops: Report

airdrop china

The People’s Bank of China (PBoC), China’s central bank, has its eyes on cryptocurrency companies that run airdrop campaigns in the country.

In its most recent financial stability report for 2018, which was published on Friday, November 3, 2018, the bank said there has been a surge in the number of “disguised” Initial Coin Offerings (ICO), including the free distribution of crypto tokens through airdrops, despite its effort to clamp down on their activities.

Based on the report, the bank states that the companies running token giveaways are evading China’s blanket ban on ICOs by issuing free tokens to the investor, while keeping a large chunk of the total supply for speculation on a crypto exchange, where speculation would drive the prices up so they can profit.

Last year, the central bank banned ICOs, calling them “illegal fundraising” that were targeting innocent investors. According to the PBoC report, before the ban took effect, 65 ICOs had been completed up until July 18, 2017, while only five were launched before 2017. This sudden jump also attracted over 105,000 investors who contributed a total of about 2.6 billion yuan ($377.3 million), a figure, the PBoC states, accounted for 20 percent of the total ICO funding raised globally by blockchain startups.

The central bank also made its concerns known about crypto firms who had moved their operations overseas but were using local agents to invest on behalf of domestic investors in China. The vice governor of the PBoC had warned foreign ICOs targeting Chinese investors at a separate event, earlier this year. He had stated at the time:

“Any new financial product or phenomenon that is not authorized under the existing legal framework, we will crush them as soon as they dare to surface.”

Not one to rest on its laurels, the PBoC said it would continue to monitor the crypto industry, coordinating with other agencies to help safeguard and protect the interest of investors.

The bank’s toughened stance with cryptocurrency began in 2013, where it published the “Notice on Precautions Against the Risks of Bitcoin,”where bitcoin was not deemed to be legal tender in China—to the most recent ban on ICOs in 2017.

Since then, there has been an onslaught of anti-crypto measures in the country. Earlier this year, commercial venues were banned from hosting crypto events, WeChat blocked some high profile blockchain related accounts, while Tencent, Baidu and Alibaba issued statements announcing restrictions put in place to limit crypto-related activities on their platforms.

This article originally appeared on Bitcoin Magazine.

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Author: Jimmy Aki

Novogratz: Bitcoin to Revisit All-Time High in 2019, Fueled by Institutional FOMO

One of the most prominent names in cryptocurrency investing believes that Bitcoin’s downtrend woes are near an end, and that a revisit to Bitcoin’s all-time high is on the cards during 2019 due to increased interest from institutional investors.

Novogratz: Taking Out $10K Will Lead to New Highs

Mike Novogratz, founder and CEO of crypto-focused investment firm Galaxy Digital Capital Management, is rarely without comment on the state of the cryptocurrency market, and in particular, Bitcoin.

Bitcoin being the most well-known crypto asset and with a market cap that is 50% of the overall market’s total aggregate, tends to be the focal point of most investors when speaking about the influx of institutional investors waiting to enter the market.

That institutional influx, Novogratz says, will take Bitcoin to its previous all-time high and beyond in 2019.

“There’s going to be a case of institutional FOMO [fear of missing out], just like there was in retail,” Novogratz reports the Financial News.

Before that happens, Bitcoin needs to take out a couple key overhead price resistance points.

“Bitcoin has to take out $6,800, and after that we could end the year at $8,800-9,000,” he clarified. After that, though, it’s off to the races for Bitcoin.

Novogratz recently had a moment of bearish sentiment, suggesting that Bitcoin wouldn’t break $9,000 before the end of the year, and was targeting the second quarter of 2019 when Bitcoin could break $10,000.

However, the negative sentiment appears to have passed, and he’s now suggesting that break of important psychological resistance at $10,000 will occur during the first quarter of 2019 – a break he expects to start the next bull run, potentially beating previous highs.

“By the end of the first quarter we will take out $10,000 and after that we will go back to new highs — to $20,000 or more,” Novogratz speculated.

Novogratz had famously predicted Bitcoin reaching $40,000 before the end of 2018, double its previous all-time high of nearly $20,000 it reached back in December 2017. Novogratz later changed his tune due to the severity of the continued downtrend keeping cryptocurrency prices at bay.

Institutional FOMO Rally Foundation Being Built Already

The impending institutional rally investors like Novogratz have been pointing to since Bitcoin’s all-time high may be right around the corner.

In recent weeks, a number of traditional banking firms have shown increased interest in crypto, such as Fidelity, who recently became the first Wall Street incumbent to launch a dedicated cryptocurrency trading operation called Fidelity Digital Asset Services.

Now that the first stone has been thrown, a domino-effect is expected where many of Fidelity’s closest competitors join what is turning into an arms race.

Next month, the parent company of the New York Stock Exchange, Intercontinental Exchange, will be launching their Bakkt trading platform, which offers physically-settled Bitcoin Futures contracts, which many believe could help cause Bitcoin’s price to increase by eating into the cryptocurrency’s limited supply.

Featured image from Shutterstock.

The post Novogratz: Bitcoin to Revisit All-Time High in 2019, Fueled by Institutional FOMO appeared first on NewsBTC.

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Author: Tony Spilotro

Novogratz: Bitcoin to Revisit All-Time High in 2019, Fueled by Institutional FOMO

One of the most prominent names in cryptocurrency investing believes that Bitcoin’s downtrend woes are near an end, and that a revisit to Bitcoin’s all-time high is on the cards during 2019 due to increased interest from institutional investors.

Novogratz: Taking Out $10K Will Lead to New Highs

Mike Novogratz, founder and CEO of crypto-focused investment firm Galaxy Digital Capital Management, is rarely without comment on the state of the cryptocurrency market, and in particular, Bitcoin.

Bitcoin being the most well-known crypto asset and with a market cap that is 50% of the overall market’s total aggregate, tends to be the focal point of most investors when speaking about the influx of institutional investors waiting to enter the market.

That institutional influx, Novogratz says, will take Bitcoin to its previous all-time high and beyond in 2019.

“There’s going to be a case of institutional FOMO [fear of missing out], just like there was in retail,” Novogratz reports the Financial News.

Before that happens, Bitcoin needs to take out a couple key overhead price resistance points.

“Bitcoin has to take out $6,800, and after that we could end the year at $8,800-9,000,” he clarified. After that, though, it’s off to the races for Bitcoin.

Novogratz recently had a moment of bearish sentiment, suggesting that Bitcoin wouldn’t break $9,000 before the end of the year, and was targeting the second quarter of 2019 when Bitcoin could break $10,000.

However, the negative sentiment appears to have passed, and he’s now suggesting that break of important psychological resistance at $10,000 will occur during the first quarter of 2019 – a break he expects to start the next bull run, potentially beating previous highs.

“By the end of the first quarter we will take out $10,000 and after that we will go back to new highs — to $20,000 or more,” Novogratz speculated.

Novogratz had famously predicted Bitcoin reaching $40,000 before the end of 2018, double its previous all-time high of nearly $20,000 it reached back in December 2017. Novogratz later changed his tune due to the severity of the continued downtrend keeping cryptocurrency prices at bay.

Institutional FOMO Rally Foundation Being Built Already

The impending institutional rally investors like Novogratz have been pointing to since Bitcoin’s all-time high may be right around the corner.

In recent weeks, a number of traditional banking firms have shown increased interest in crypto, such as Fidelity, who recently became the first Wall Street incumbent to launch a dedicated cryptocurrency trading operation called Fidelity Digital Asset Services.

Now that the first stone has been thrown, a domino-effect is expected where many of Fidelity’s closest competitors join what is turning into an arms race.

Next month, the parent company of the New York Stock Exchange, Intercontinental Exchange, will be launching their Bakkt trading platform, which offers physically-settled Bitcoin Futures contracts, which many believe could help cause Bitcoin’s price to increase by eating into the cryptocurrency’s limited supply.

Featured image from Shutterstock.

The post Novogratz: Bitcoin to Revisit All-Time High in 2019, Fueled by Institutional FOMO appeared first on NewsBTC.

Venezuela’s “el Petro” stumbles at the starting line…again

Venezuela’s controversial state-sponsored cryptocurrency, the ‘Petro,’ is back…kind of. And it’s already starting to feel like a case of déjà vu.

What happened with “El Petro”? 

Originally “launched” in early February, Venezuela’s state-sponsored cryptocurrency has been a point of controversy since its inception.

In its initial state, Venezuelan President Nicholas Maduro announced that the oil-pegged-coin was to be used to skirt U.S. sanctions. Part of this announcement mentioned that the cryptocurrency project had raised over $735 million shortly after release. The true details, however, remained limited at best.

The original whitepaper, published in Spanish, noted that the cryptocurrency was to be built on the Ethereum blockchain. But after some reconsideration, a newly-released English-language whitepaper revealed that it would be built on the NEM infrastructure. Neither blockchain contained a real version of the PTR.

In addition to the whitepaper confusion, it quickly became apparent that it was impossible to actually purchase the cryptocurrency, as the website was not operating as intended.

In the months following these events, Maduro made every attempt to spur the adoption of his creation, from offering massive discounts on Venezuelan crude oil to pleading with members of the Organization of Petroleum Exporting Countries (OPEC) to participate.

Despite his efforts, however, not a single government publicly stated that they would be using the cryptocurrency. And according to multiple publications, Venezuelans weren’t fond of using the coin either.

However, despite the lack of a cryptocurrency, supporters or adopters, Maduro doubled down on his dream. He pegged a newly released ‘bolivar soberano”, a currency which effectively slashed five zeroes from the bolivar, to the Petro.

The launch of the bolivar soberano led to chaos within the country, leaving citizens scrambling to exchange notes, and eventually leading the government to cap ATM withdrawals at 10 bolivar soberanos (about US$0.15) per day.

The currency confusion also led to numerous scams, with merchants and customers alike looking to take advantage of the situation.

Expectations vs. Reality

In early October, Nicolas Maduro finally announced that the second round of Petro sales would begin on November 5th, with revitalized claims that the state-sponsored cryptocurrency would usher in a new era of financial freedom for Venezuelans.

Additionally, Maduro released an order stating that Venezuelans would be required to purchase passports and other government services with the cryptocurrency.

Leading up to the latest release of the Petro, Maduro claimed that over 100 countries had expressed interest, and that the cryptocurrency would be available to buy, sell, and trade on at least 6 major exchanges almost immediately upon its release.

So far, the exchanges listing the cryptocurrency are little-known and fairly new, with most created just this year, including Afx Trade, Bancar, Cryptia, Criptolago, Amberes Coin, and Cave Blockchain – a far cry from Binance and Huobi which were among the ‘major exchanges originally promised.

Despite the apparent lack of interest from major exchanges, Venezuela is moving full-speed-ahead with its plans to legitimize el Petro.

So what’s new this time around?

Maduro created his own blockchain! Kind of…

When exploring the protocol and whitepaper, some Reddit users were quick to reveal that the diagram highlighting how the blockchain works was taken directly from the development documentation of Dash.

The Reddit gang also did some more digging, uncovering the exact command list used in el Petro’s wallet (at least while it lasted) had also been lifted from another project.

petro

Additionally, though el Petro has officially hit the streets, users seem to be having mixed experiences downloading and using the wallet, much less actually purchasing the cryptocurrency.

The original version of the wallet which the Reddit users accessed is no longer online and, until last week, the download “file” was simply an empty folder called “wallet.”

Today, however, it appears there’s no wallet at all, as users receive a pop-up message which promises that the wallet is coming soon…

petro fail

In addition to its revamped infrastructure, the Petro is no longer pegged to just oil. Now, the price of one Petro is based on a complicated mixture of oil, diamonds, gold and iron, according to the whitepaper. It should also be noted that there are no clear figures of the country’s true reserves of gold, diamonds, or iron.

Exit Scam or just bad execution?

Maduro’s Petro v2 rollout has left a lot to be desired once again. But is it an exit scam or are they just having trouble launching in this new endeavor?

The regime is doing everything in its power to legitimize the new cryptocurrency, from forcing citizens to pay for passports with it to pegging their fiat currency to it. However, even Venezuelans are having trouble believing that it will ever be successful.

Gabriel Negrín, a journalist for Kryptoguia based in Venezuela noted, “The situation with el Petro is more complicated than it seems. The official launch was delayed a couple of times; wallets seem nonexistent and the blockchain shows quite rare movements. In addition, even though we have said that the oil price has been reflected (currently at 68.55 $ approx), they decided to leave it fixed at $60.”

Gabriel added, “They forced the banks to place the balance in Bolívares and in Petro, nevertheless this is clearly symbolic since you cannot transform your money to Petro through the exchange platform; In addition, there is no convertibility of Petro to BTC or other cryptocurrencies.”

Another skeptic, Twitter user JesusLara, attempted to purchase the cryptocurrency for himself, only to be turned away without any coin. He then investigated the blockchain explorer, finding that only 91 Petro, totaling approximately $5,500 had been exchanged in the 5 days since launch, between only 30 ‘real’ buyers.

While it’s still difficult to confirm what’s exactly happening behind the scenes given the lack transparency of the regime, it’s clear that Petro v2 may already be heading down the same path as its predecessor.

The post Venezuela’s “el Petro” stumbles at the starting line…again appeared first on Crypto Insider.

Swiss Regulator Imposes 800% Risk Weighting for Bank Crypto Trading

The Swiss Financial Market Supervisory Authority (FINMA) has instructed banks dealing in cryptoassets to apply a risk weighting of eight times their market value  when calculating loss-absorbing capital buffers. In a confidential letter seen by swissinfo.ch, the regulator also imposed a 4 percent cap on crypto positions as a percentage of total capital held by banks,

The post Swiss Regulator Imposes 800% Risk Weighting for Bank Crypto Trading appeared first on CCN

Will Bitcoin Ever Recover?

will btc recover

A lot of people looking at the cryptocurrency industry today will do so with mixed feelings. There is no official indication any of the markets will ever recover in full, although that mainly depends on one’s perspective. In the case of Bitcoin, it seems as if this cryptocurrency is slowly getting its act together once again.

The Bitcoin Price History

When looking toward the future, it is of major importance to keep the past in mind as well. Bitcoin has, and probably always will be, a very volatile market. The fall from grace of $19,000 all the way to $6,200 is not fun to watch for anybody. It is not the first time a big dip like this occurs though, and Bitcoin has recovered every single time in the past. There is no reason to think this round will be any different.

One thing to keep in mind is how Bitcoin never hit $19,000 at any point prior. As such, a $13,000 retrace seems significant, even though it is rather normal percentage-wise. The bigger loss percentage-wise to date for Bitcoin comes in the form of going from $31 to $2 between July and December of 2011. After that dip, the value soared to $266 – a 13,300% increase – prior to tracing back from $266 to $100.

Similar dips have been noted throughout history as well. Bitcoin hit $1,000 in January of 2014, yet dropped to $340 in April of 2014. Despite rallying to $630 in the months after, it dipped to $200 again in March of 2015. As such, there have been numerous dips where the Bitcoin price is concerned, and this latest decline is nothing to be overly concerned about whatsoever.

Looking Ahead for the Next Decade

A lot of people also tend to forget where Bitcoin came from. Despite celebrating its 10th birthday last month, the currency did not have any real value until March 2010. As such, it went from $0 to $6,300 in eight and a half years. That alone is an incredibly bullish market regardless of temporary setbacks along the way.

Furthermore, Bitcoin’s ecosystem is only now starting to come together. For many years, scaling has been an ongoing problem, as have the high transaction fees. Current solutions such as the Lightning Network are an important step in the right direction for Bitcoin. It will also pave the way for broader merchant adoption, which will in turn make more people aware of Bitcoin as a usable payment method.

Technical advancements combined with a stronger focus by institutional investors can pave the way for a major market rebound. It might not happen in 2018 or even 2019. However, all signs point toward a future where $19,000 per BTC may seem like pocket change. A long-term vision and strategy is necessary prior to getting involved in cryptocurrencies. There is zero reason for despair, as bear markets can last very long. So far, they have always resulted in new all-time highs later on.

The post Will Bitcoin Ever Recover? appeared first on NullTX.

Scam Me Once: Twitter Promotes Fake Elon Musk’s ‘Bitcoic’ Giveaway

Twitter

Twitter has come under fire from cryptocurrency commentators once again after the social network began actively promoting an ongoing scam involving a Bitcoin giveaway.


‘Elon Musk’ Offers Millions of Dollars in ‘Bitcoic’

The scam, which has involved various accounts in recent weeks, currently revolves around a fake Elon Musk account using the hijacked Twitter handle of publishing house Pantheon Books.

In line with a huge number of similar scams which have appeared on Twitter this year, the fraudulent account invites users to participate in a giveaway in order to win a huge sum of Bitcoin — in this case, 10,000 BTC ($64.1 million).

This week, however, the scam appeared to go one step beyond the norm, achieving ‘promoted’ status on Twitter.

“I’m giving away 10 000 Bitcoic (BTC) to all community! I left the post of director of Tesla, thank you all for your suppoot!” the tweet reads. “I decided to make the biggest crypto-giveaway in the world, for all my readers who use Bitcoin.”

Thanks, Elon!

The apparent error quickly came to the attention of pundits, who slammed Twitter for allowing an advertiser to pay for added visibility for the fake giveaway and for failing to spot its obviously fraudulent nature.

“Someone is using the hacked account of a major publishing imprint to pretend to be Elon Musk in order to perpetrate a bitcoin scam and Twitter allowed them to promote it,” Washington Post editor Jacob Brogan wrote, reproducing a tweet from the account.

Other users reported seeing the promoted tweet multiple times.

The same scam had used other accounts earlier last month, yet Twitter had appeared to shut them down — raising questions over the consistency of its monitoring policy.

The blunder is particularly poignant for the platform, executives having previously riled the cryptocurrency industry by banning advertising associated with ICOs outright, regardless of a token issuer’s status.

Unlike Facebook and Google, both of whom have relaxed their own bans, Twitter’s remains in force. 

What do you think about Twitter promoting a Bitcoin scam? Let us know in the comments below! 


Images courtesy of Twitter.

The post Scam Me Once: Twitter Promotes Fake Elon Musk’s ‘Bitcoic’ Giveaway appeared first on Bitcoinist.com.

GMO Internet Sees Huge Leap in BCH Mining for October

GMO Internet Sees Huge Leap in BCH Mining for October

Japanese cryptocurrency mining company GMO Internet Group released its monthly update for October on Nov. 5. The report shows a huge increase in the amount of bitcoin cash extracted – 875 coins, from zero in September. Altogether, the company earned about $3.85 million from mining BTC and BCH during the period under review.

Also Read: Pan-African Organisation Launches Framework to Encourage Cryptocurrency Trade

New Mining Hardware Drives Output

In its monthly update, the Tokyo-based GMO Internet Group said its hashrate has grown since the end of September after establishing more mining facilities while continuing to operate miners from other manufacturers. “We will continue to introduce the mining machine from other manufacturers to the in-house mining. Our plan is to see our hashrate surpass 800 ph/s by the end of December,” it said.

GMO Internet Sees Huge Leap in BCH Mining for October

GMO Internet has tended to focus on BTC as opposed BCH since it began its mining operations late last year. The $1.7 billion-valued company mined a total 4,070 bitcoin core and 1,323 bitcoin cash during the first 10 months of this year, earning about $33 million in rewards. The latest surge of interest in BCH has been viewed in some quarters as position-taking ahead of the impending Nov. 15 fork.

GMO also appears keen on breaking China’s monopoly in the industry, as evidenced by its quest to boost mining capacity. But it’s not been all smooth sailing. The company detailed:

Regarding our mining machines, there has been a delay for part of the electronic components due to the tight global supply-demand balance, which led to the postponement of shipment.

Competition among miners has increased on account of numerous Chinese companies entering the industry. Miners from the Asian country are now thought to control about two-thirds of the computational power working on the BTC blockchain.

GMO Sees Improved Hashrate

GMO Internet Sees Huge Leap in BCH Mining for OctoberIn terms of mining power, GMO Internet recorded hashrates of 674 petahash per second in October – a 50 percent increase from the previous month. While the company has seen a significant increase in its computing power, its hashrate is still significantly below that employed by major mining pools. At the top of pile at the moment is BTC.com, which handles over 9,000 ph/s. GMO Internet stated that it aims to eventually reach 3,000 ph/s, with a short-term goal of 800 ph/s by December.

In October, the Japanese cryptocurrency company indicated that it would launch a stablecoin pegged to the yen in 2019. Masatoshi Kumagaii, founder and president of GMO Internet, said the stablecoin, which will be known as GMO Japanese Yen (GJY), will be issued in Asia. It is expected that the assets backing the stablecoin will be stored in Japan where the tech firm already has banking licenses.

Founded in 1991, GMO Internet is involved in internet advertising and media, internet securities and mobile entertainment businesses. The Tokyo Stock Exchange-listed firm also operates GMO Coin, its cryptocurrency mining and exchange unit.

What do you think about GMO’s latest mining update? Let us know in the comments section below.


Images courtesy of Shutterstock.


Verify and track bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. Also, keep up with your holdings, BCH and other coins, on our market charts at Satoshi’s Pulse, another original and free service from Bitcoin.com.

The post GMO Internet Sees Huge Leap in BCH Mining for October appeared first on Bitcoin News.

GMO Internet Sees Huge Leap in BCH Mining for October

GMO Internet Sees Huge Leap in BCH Mining for October

Japanese cryptocurrency mining company GMO Internet Group released its monthly update for October on Nov. 5. The report shows a huge increase in the amount of bitcoin cash extracted – 875 coins, from zero in September. Altogether, the company earned about $3.85 million from mining BTC and BCH during the period under review.

Also Read: Pan-African Organisation Launches Framework to Encourage Cryptocurrency Trade

New Mining Hardware Drives Output

In its monthly update, the Tokyo-based GMO Internet Group said its hashrate has grown since the end of September after establishing more mining facilities while continuing to operate miners from other manufacturers. “We will continue to introduce the mining machine from other manufacturers to the in-house mining. Our plan is to see our hashrate surpass 800 ph/s by the end of December,” it said.

GMO Internet Sees Huge Leap in BCH Mining for October

GMO Internet has tended to focus on BTC as opposed BCH since it began its mining operations late last year. The $1.7 billion-valued company mined a total 4,070 bitcoin core and 1,323 bitcoin cash during the first 10 months of this year, earning about $33 million in rewards. The latest surge of interest in BCH has been viewed in some quarters as position-taking ahead of the impending Nov. 15 fork.

GMO also appears keen on breaking China’s monopoly in the industry, as evidenced by its quest to boost mining capacity. But it’s not been all smooth sailing. The company detailed:

Regarding our mining machines, there has been a delay for part of the electronic components due to the tight global supply-demand balance, which led to the postponement of shipment.

Competition among miners has increased on account of numerous Chinese companies entering the industry. Miners from the Asian country are now thought to control about two-thirds of the computational power working on the BTC blockchain.

GMO Sees Improved Hashrate

GMO Internet Sees Huge Leap in BCH Mining for OctoberIn terms of mining power, GMO Internet recorded hashrates of 674 petahash per second in October – a 50 percent increase from the previous month. While the company has seen a significant increase in its computing power, its hashrate is still significantly below that employed by major mining pools. At the top of pile at the moment is BTC.com, which handles over 9,000 ph/s. GMO Internet stated that it aims to eventually reach 3,000 ph/s, with a short-term goal of 800 ph/s by December.

In October, the Japanese cryptocurrency company indicated that it would launch a stablecoin pegged to the yen in 2019. Masatoshi Kumagaii, founder and president of GMO Internet, said the stablecoin, which will be known as GMO Japanese Yen (GJY), will be issued in Asia. It is expected that the assets backing the stablecoin will be stored in Japan where the tech firm already has banking licenses.

Founded in 1991, GMO Internet is involved in internet advertising and media, internet securities and mobile entertainment businesses. The Tokyo Stock Exchange-listed firm also operates GMO Coin, its cryptocurrency mining and exchange unit.

What do you think about GMO’s latest mining update? Let us know in the comments section below.


Images courtesy of Shutterstock.


Verify and track bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. Also, keep up with your holdings, BCH and other coins, on our market charts at Satoshi’s Pulse, another original and free service from Bitcoin.com.

The post GMO Internet Sees Huge Leap in BCH Mining for October appeared first on Bitcoin News.

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Author: Jeffrey Gogo