Category Archives: Bitcoin
Bitcoin ETF coming in a year or two, analyst says as SEC mulls applications – CNBC
The Securities and Exchange Commission formally acknowledged a bitcoin ETF proposal from VanEck just two weeks ago, starting the countdown on its 45-day approval timeline.
But seeing a bitcoin ETF approved in the next 30 days isn't that likely, according to Todd Rosenbluth, head of ETF and mutual fund research at CFRA Research.
It's more likely that the SEC will extend its timeline, he told CNBC's "ETF Edge" on Monday.
"We've got a number of firms that have either gone through the filing process or have previously filed but are waiting for more clarity," Rosenbluth said. "The SEC is less likely to try to pick a winner, we think, as to who comes first and we're more likely to see them if they do approve any ETF to approve multiple bitcoin-related ETFs. We've got a number of firms that have entered and we think we're likely to see one in the coming year or two, but we don't have a firm time frame as to when the answer would be yes."
Joining the roster of prospective bitcoin ETF issuers is Grayscale. The investment firm said Monday it was "100% committed" to converting its Grayscale Bitcoin Trust into an ETF. VanEck, Fidelity and Valkyrie Digital Assets are among the firms that have already filed applications.
With so much discussion around bitcoin, some may wonder whether it could be worked into ETFs such as VanEck's new Social Sentiment ETF (BUZZ) because of the digital coin's popularity, but the answer is no, says Jamie Wise, founder of Buzz Indexes.
"There's an awful lot of discussion around bitcoin and other crypto-assets and tokens for buyers, but no, you shouldn't expect to see any crypto into BUZZ," he said in the same "ETF Edge" interview. "BUZZ is very clearly defined as large-cap U.S. equity exposure by sentiment and would not hold bitcoin or other crypto-assets."
While you won't find any crypto-assets in BUZZ, VanEck's models do track and analyze sentiment around cryptocurrencies, "and we'll see what happens in the future," Wise said. "Maybe not in BUZZ. Maybe in something else."
In other areas of the ETF market, there is still a push to incorporate crypto exposure despite regulatory limits.
Art Amador, co-founder and chief operating officer of EquBot and the man behind the Artificial Intelligence Powered ETF (AIEQ), said that while his fund can't invest in bitcoin, it's important to get into the crypto ecosystem.
AIEQ does this through small-cap names such as Silvergate Capital, which provides cash management services to digital currency businesses, and Marathon Digital Holdings, a cryptocurrency mining company.
"We want investors to have exposure," Amador said in the same "ETF Edge" interview. "That said, we're also seeing a lot of regulatory headwinds, not just here in the U.S., but also globally."
Still, he expects further increases into the ecosystem as headwinds subside.
The price of bitcoin climbed nearly 1.5% on Monday, according to CoinMetrics.
Disclaimer
More:
Bitcoin ETF coming in a year or two, analyst says as SEC mulls applications - CNBC
Texas A&M Mays Innovation Research Center To Host Bitcoin Conference April 16-17 – Texas A&M University Today
Experts representing numerous aspects of the cryptocurrency Bitcoin are scheduled to participate in the Bitcoin Conference April 16-17, hosted by the Mays Innovation Research Center, a center of excellence within Mays Business School at Texas A&M University.
The conference, which will be held via Zoom but with an in-person option on April 17, will address topics such as Bitcoins economic foundations, underlying technology, business and finance, and the law/policy/regulatory landscape.
Bitcoin is one of the most radical innovations of our time, so it is appropriate that the Center convene a healthy debate on Bitcoin from all angles, said Center Director Korok Ray.
Bitcoin, created in 2009 by an unknown person, is the first cryptocurrency. The digital currency is bought and sold anonymously, usually through exchanges such as Coinbase, without the need for banks or other intermediaries. The supply is limited to 21 million coins.
Bitcoin is now reaching widespread adoption and attention from institutional investors and corporations in addition to retail investors, Ray said. This attention is at least partly in response to the current low interest rate policies of the Federal Reserve.
There is considerable debate among investment professionals regarding the fundamental value of Bitcoin. Some market participants expect Bitcoins value to continue to rise, reflecting an increase in competition for a limited number of coins. Others are more conservative in their predictions, pointing to significant regulatory risk and to the fact that, contrary to other financial assets, acquiring Bitcoin does not confer their holder a claim on a commodity, on a precious metal, or on the cashflow of any other asset.
Ray said conference participants will better understand what Bitcoin is and how it works, as well as its possibilities, limitations, and future prospects.
The conference idea came from conversations between Mays Business School faculty, including Ray, and Grant Weston, Texas A&M Bitcoin Club president.
I founded the Texas A&M Bitcoin Club with my roommate Matt Lohstroh to create a community around Bitcoin, said Weston, a senior busines honors major. Students need to know about the opportunities that are out there. The Bitcoin space is still so small. Every new participant makes a difference.
Featured speakers will include Ray Dalio of Bridgewater Associates; Tim Draper of Draper Fisher Jurvetson; Michael Saylor of MicroStrategy; Bill Miller of Miller Value Partners; Pete Briger of Fortress Investment Group; Glenn Hutchins of Silver Lake Partners; Rob Kaplan of the Federal Reserve Bank of Dallas; Dawn Stump of the Commodities Futures Trading Commission; Nobel Laureate Eric Maskin of Harvard; and more.
For the full schedule and to register, go to the Bitcoin Conference registration page.
Original post:
Texas A&M Mays Innovation Research Center To Host Bitcoin Conference April 16-17 - Texas A&M University Today
Kevin OLeary says he will only buy bitcoin mined with clean energy, and none mined in China – CNBC
Celebrity investor Kevin O'Leary says he will only buy bitcoin mined sustainably in countries that use clean energy and not "blood coin" mined in China.
"I see over the next year or two, two kinds of coin," he told CNBC's "Capital Connection" on Monday. "Blood coin from China, (and) clean coin mined sustainably in countries that use hydroelectricity, not coal."
Bitcoin mining is extremely energy intensive, and around 65% of the world's bitcoin was mined in China as of April 2020, according to Statista.
"I'm going on the side of clean coin," said O'Leary.
O'Leary did not elaborate on where he acquires "clean" bitcoin, but some countries use hydroelectric power more widely than others, and there are entities that claim to mine cryptocurrencies in a sustainable way.
The chairman of O'Shares ETFs once called bitcoin "garbage," but changed his mind more recently and said he would allocate 3% of his personal portfolio to the cryptocurrency, according to a CoinDesk report.
O'Leary said he was "inundated" by institutions asking if he was buying "blood coin from China" after he said he wanted to invest in bitcoin.
I'm not buying coin unless I know where it was mined, when it was mined, the provenance of it. Not in China. No blood coin for me.
Kevin O'Leary
Chairman of OShares ETFs
Increasingly, large institutions impose restrictions on assets they will hold in order to comply with environmental and corporate governance rules. Concerns include human rights and carbon emissions. O'Leary said whether products are made in China is also a consideration.
"All these issues have now come to the fore on bitcoin," he said. "Institutions will not buy coin mined in China, coin mined using coal to burn for electricity, coin mined in countries with sanctions on them."
Institutions are saying that they don't want to endorse China because of issues with human rights, he added.
O'Leary said personally, he's working to ensure every coin he owns is compliant.
"I'm not buying coin unless I know where it was mined, when it was mined, the provenance of it," he said. "Not in China. No blood coin for me."
See the original post:
Kevin OLeary says he will only buy bitcoin mined with clean energy, and none mined in China - CNBC
The IRS wants to know all about your Bitcoin holdings — and this court summons is a reminder – MarketWatch
The IRS wants Circle, a Boston-based financial technology company enabling trade in various types of cryptocurrencies, to produce account-registration information, account activity records and other materials for customers who had at least $20,000 in transactions any year from 2016 to 2020.
Cryptocurrency has gained prominence and value over the year, but the IRS says tax reporting hasnt kept up.
The IRS issued Circle with a summons, which is part of an ongoing investigation by the Internal Revenue Service to make sure all sorts of cryptocurrency users across the board are reporting and paying up their tax obligations, the government explained in court papers.
The IRS treats cryptocurrency as property and, when its sold at a profit, the tax collection agency will assess a capital-gains tax. If, that is, the IRS knows the transaction occurred.
The IRS treats cryptocurrency as property and, when its sold at a profit, it will assess a capital-gains tax. If, that is, the IRS knows the transaction occurred.
The IRS and the Justice Department note they are not alleging any wrongdoing on Circles part but based on dealings with some people who have Circle accounts, the feds want more information to see who else might be owing tax money.
For example, one unidentified taxpayer amended 2014-2017 returns to show $1.6 million in previously unreported virtual currency sales, the government said. Poloniex was one of the exchanges the taxpayer used.
(Circle sold the Poloniex exchange in late 2019 and customers in America can no longer trade on the exchange, court papers noted.)
Massachusetts Federal District Richard Stearns signed off on the summons Thursday, saying it was narrow enough and supported by a reasonable basis to think some account holders might not be following tax laws.
Were reviewing, and of course expect to work collaboratively with the IRS in responding to the court order, a Circle spokesman told MarketWatch.
The summons sends the clear message to U.S. taxpayers that the IRS is working to ensure that they are fully compliant in their use of virtual currency, IRS Commissioner Chuck Rettig said in a statement. We will enforce the law where we find systemic noncompliance or fraud.
The IRS has filed other court summons seeking information from other exchanges in previous years, said Dale Werts, a partner at Lathrop GPM in Kansas City, Mo., where he advises companies on blockchain and cryptocurrency matters.
But its also coming during tax season, at a time when rising cryptocurrency prices are at the front of mind for many investors. This is their way of reminding you, Hey, you better fill out your tax return properly,' he said.
For Werts, its not that the tax laws on cryptocurrency are new. Since 2014, the IRS has stated its view that capital gains taxation rules apply. Its just a new crowd that has to learn the laws that have been on the books for years, Werts said. Lots of folks, I discovered, believe that cryptocurrency is new and existing laws dont apply. This is just not true.
The summons is another sign of cryptocurrencys growing mainstream appeal, according to David Sacco, practitioner in resident at the University of New Havens Pompea College of Business. The IRS has its eyes on the money in the emerging market and more eyes may ultimately mean more regulation and investor protections, said Sacco, who teaches finance courses.
The IRS revised its tax paperwork this year to give prominent play to one question about cryptocurrency. Near the top of the 1040s first page, it asks, At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?
When Sacco looked over the revamped 1040, the question struck him as a little creepy but on the other hand, it makes it like any other asset class now.
Two accountants specializing in cryptocurrency and taxes were split when previously talking to MarketWatch on whether to answering yes for merely buying currencies like bitcoin or ether. Answering yes doesnt necessarily mean more taxes, they note.
Either way, a lots happened for cryptocurrency in 2020, and 2021 so far looks to be no different. Bitcoin BTCUSD, +2.06% tripled in value during 2020. Ethereum ETHUSD, +2.16% hit a record value above $2,000 on Friday, and was trading above that on Monday, as Bitcoin traded near $58,000 on Monday.
Between 2013 and 2015, a mere 800 to 900 taxpayers filed returns reporting cryptocurrency, the IRS said. That number increased from 2016 to 2018, but the numbers still fall far short of what would be expected given the number of users, transactions, and value that the exchanges publicize occur on an annual basis, court filings said.
Over the years, the IRS has stepped up enforcement. In the summer of 2019, it sent more than 10,000 letters to people it believed potentially failed to report virtual currency income. The taxpayer who amended returns to report $1.6 million in previously unreported sales was one of the letter recipients, the court filing said.
Professional Soccer Players Are Buying Bitcoin And It Will Protect Their Wealth – Bitcoin Magazine
According to online reports, Galatasaray S.K. and Netherlands national football teams Ryan Babel has been shilling bitcoin to his teammates.
Babel has played for Ajax, Liverpool, Fulham and others. He has played in the Champions League, Euro 2012 and the World Cupbuilding connections to some of the best-known and well-compensated soccer players in Europe. Babel has shared his eagerness to accumulate bitcoin on Twitter, so it is not a stretch to imagine that the reports are accurate.
If Babel and his teammates have been buying bitcoin for the past six months, for example, then theyve made some hefty gains. This is as important to athletes as it is to anyone else, as they need a place to store their wealth in the best possible way. Securing their wealth behind a wall of cyber hornets and a 21 million supply cap ensures it will not deteriorate, but actually increase in value. The only meaningful difference between Bitcoin plebs and pro athletes is that the latter tend to have tens- to hundreds-of-millions of dollars more than the former with which to buy bitcoin.
Athletes have also been buying bitcoin here in the U.S., with NFL player Russell Okung using Strike to get a sizable portion of his $13 million contract paid to him in bitcoin. Why? Because Bitcoin is the perfect tool to protect ones wealth. The average career length of athletes isnt too long, and even though they make a lot of money, they need to protect it for the rest of their lives. Bitcoin excels at this.
Buying bitcoin, especially at around $60,000 prices, gives professional athletes a massive potential upside in gains. To put how big the gains can be in perspective: Babel reportedly earned a $2.37 million signing bonus in 2019, and the price of bitcoin rose by 87 percent across that year. Had he been able to allocate that bonus to BTC, he would have made more than $2 million in profit.
Rich athletes are figuring out that if they want to make a lot of money, all theyve got to do is accumulate bitcoin, and sit on it.
See the original post:
Professional Soccer Players Are Buying Bitcoin And It Will Protect Their Wealth - Bitcoin Magazine
Bitcoin (BTC/USD) Forecast: Bitcoin Tumbles Ahead of FOMC Minutes – DailyFX
Bitcoin (BTC/USD) Forecast:
Major cryptocurrencies have continued to outperform traditional assets, buoyed by an increase in the adoption of Bitcoin as an acceptable method of payment by mainstream players. However, after six consecutive months of gains, Bitcoin bulls are under pressure as BTC/USD struggles to trade back above the key psychological level of $60,000, a level which continues to hold bulls at bay.
Source: Refinitiv
Although the inherent value of BTC/USD remains a controversial topic, speculation and crowd psychology remain the primary catalysts for Bitcoin price action as a retest of last months cannot be ruled out. However, given the fact that Bitcoin prices surged approximately 1121% between the March 2020 low and the March 2021 record high of $61,759, the ability for bulls to maintain the upward trajectory remains questionable.
Recommended by Tammy Da Costa
Download Your free Bitcoin Trading Guide
Recently, Bitcoin has been trading within a well-defined range, with price action consolidating between $53,395 (the 14.4% Fibonacci retracement level of the 2020 2021 move) and the key psychological barrier of $60,000.
Bitcoin (BTC/USD) Weekly Chart
Chart prepared by Tammy Da Costa, IG
Although the upward trend from last year remains intact, with BTC/USD still tracking the positive slope reflected by the 8-period EMA, recent RSI divergence indicates that the bullish momentum could be losing steam.
Recommended by Tammy Da Costa
Discover the importance of risk management
Bitcoin(BTC/USD) Daily Chart
Chart prepared by Tammy Da Costa, IG
For the more imminent move, the formation of a symmetrical triangle on the daily timeframemay keep Bitcoin within a tight range, with recent price action bouncing between prior support of $57,779 (the 23.6% retracement of the March 2021 move) and $60,00.
It seems as thoughthe stabilization of US Treasury Yields have hindered the advance in BTC/USD, allowing bears to drive prices below support and towards a next key level of $55,000. With prices hovering just above the 8-period EMA, the FOMC meeting minutes may assist in the catalyzation of short-term move.
Recommended by Tammy Da Costa
Improve your trading with IG Client Sentiment Data
--- Written by Tammy Da Costa, Market Writer for DailyFX.com
Contact and follow Tammy on Twitter: @Tams707
Go here to read the rest:
Bitcoin (BTC/USD) Forecast: Bitcoin Tumbles Ahead of FOMC Minutes - DailyFX
Bitcoin And Crypto Market Smashes Through $2 Trillion As The Price Of Ethereum, Binance Coin, Litecoin And Ripples XRP Suddenly Soar – Forbes
Bitcoin and cryptocurrency prices are soaring, pushing the value of the entire cryptocurrency market over $2 trillion for the first time (though some think the bull run could be just getting started).
With the bitcoin price hovering around $60,000 per bitcoin, the psychological $2 trillion barrier was broken by sharp increases in the price of smaller cryptocurrencies ethereum, binance coin, Ripple's XRP and litecoin, according to data from crypto price website CoinGecko.
INDIA - 2020/04/30: In this photo illustration a Bitcoin cryptocurrency logo seen displayed on a ... [+] smartphone. (Photo Illustration by Avishek Das/SOPA Images/LightRocket via Getty Images)
The bitcoin and cryptocurrency market has more than doubled in value so far this year, rising from around $750 billion at the beginning of the year. Bitcoin, by far the biggest cryptocurrency by value, makes up more than half of the cryptocurrency market capitalization and has traditionally led the market.
However, the latest rally is being driven by ethereum and binance coin, both cryptocurrencies that have surged over the last year due to a burst of interest in so-called decentralized finance (DeFi). Ethereum, the second-largest cryptocurrency after bitcoin with a total value of around $250 billion, has hit a fresh all-time high price over the last weekadding a further 2% today.
Binance coin and bitcoin-rival litecoin, both top ten cryptocurrencies, have each added around 10% during the last 24 hours.
XRP, the cryptocurrency developed by the company Ripple, has leaped by 35% over the same period following upbeat comments from Ripple chief executive Brad Garlinghouse on the company's legal battle with U.S. regulators that have claimed XRP is a security and was illegally sold to investors. Ripple is braced for a key discovery session with the Securities and Exchange Commission (SEC) on Tuesday.
Meanwhile, bitcoin and cryptocurrency traders are feeling positive after breaking the $2 trillion barrier and it's thought this so-called altcoin rally could be set to continue for some time yet.
"I'm expecting continuation upwards in the coming weeks, with bitcoin lagging," says crypto trader and economist Alex Krger, speaking via Telegram. "The issue for this market is that leverage heats up too easily whenever bitcoin pushes higher. That's a headwind."
The bitcoin price has added almost 800% over the last 12 months, climbing to a total value of over ... [+] $1 trillion.
Other crypto market watchers are feeling similarly optimistic, though passing the $2 trillion milestone has had a muted reaction after a run that's seen so many barriers broken.
"It's a fun milestone to celebrate but as we know, quite meaningless," says Mati Greenspan, the founder of market analysis firm Quantum Economics, who's feeling bullish despite the massive gains cryptocurrencies have already racked up this year. "The crypto market will continue to grow and more non-crypto related markets will migrate to digital assets. It's a very good time for the industry."
The bitcoin and cryptocurrency bull run was sparked in October by news PayPal PYPL would be opening up its platform to bitcoin and a handful of other cryptocurrencies, kicking off a wave of institutional investment in the crypto space. Meanwhile, Telsa billionaire Elon Musk whipped retail traders into a frenzy with his pro-bitcoin tweets, setting the market alight when it was revealed Tesla had added $1.5 billion worth of bitcoin to its balance sheet.
The bitcoin and cryptocurrency community is now celebrating what it sees as the normalization of blockchain-based technology.
"With the crypto market cap exceeding $2 trillion, it is important to note that momentum and interest has begun to expand beyond bitcoin and ethereum," Paolo Ardoino, the chief technology officer at the British Virgin Islands-based bitcoin and cryptocurrency exchange Bitfinex, said in emailed comments.
"As the industry continues to mature, we expect more blockchain-based applications to be introduced to the world, and coinciding with that, a surge of interest around other alternative assets, dApps and ecosystems as they become more market-ready."
The Cowboy State Tames Bitcoin’s Regulatory Wild West – The Regulatory Review
Wyomings first cryptocurrency bank may herald a new era of U.S. cryptocurrency regulation.
Wyoming has unleashed the Kraken.
In 2020, Kraken, a platform for exchanging cryptocurrencies such as Bitcoin, became the first cryptocurrency company to secure a bank charter in the United States, signifying the cryptocurrency industrys growing mainstream acceptance. Krakens bank also represents a step forward in Wyomings efforts to become the U.S. center for cryptocurrency companies, with new laws designed to position the state as the Silicon Prairie.
The U.S. federal government has yet to establish a clear framework for cryptocurrencies. In the absence of federal regulation, states such as Wyoming have independently approached regulating cryptocurrencies, despite their digital, borderless nature.
In 2019, a new Wyoming law established Special Purpose Depository Institutions (SPDI) that permits cryptocurrency companies to create financial institutions resembling custodian banks, which focus on holding assets for clients. Wyoming legislators designed the SPDI Act with cryptocurrency companies in mind, highlighting the rapid innovation of blockchain technology that underpins many cryptocurrencies and that most federally insured financial institutions cannot hold cryptocurrencies.
SPDIs operate under several conditions that other banks typically do not. SPDIs cannot offer loans. They must hold enough liquid assets to cover 100 percent of deposits while also maintaining an additional 2 percent of deposits as a contingency account for unexpected losses and expenses. And before an SPDI begins operating, Wyoming requires that shareholders fund the SPDI with at least 5 million dollars and set up a surplus fund to cover three years of estimated operating expenses.
These stringent requirements may reassure regulators and potential customers that SPDIs will remain solvent despite high volatility in cryptocurrency prices when compared to traditional assets such as real estate or stocks.
Not all are convinced, however. The Bank Policy Institute, for example, claims that Krakens bank is an accident waiting to happen.
Despite these concerns, SPDIs may become an attractive option for cryptocurrency companies.
Most states require new banks to obtain Federal Deposit Insurance Corporation (FDIC) insurance, which covers certain U.S. dollar accounts but does not protect other assets such as stocksor cryptocurrencies. This insurance requirement normally hinders cryptocurrency companies from offering banking services. But Wyoming now allows SPDIs to operate without FDIC insurance and instead substitutes its significant reserve requirement. (Wyoming law, however, permits SPDIs to apply later for FDIC insurance if it should ever become available for cryptocurrencies.)
The ability to offer banking services as an SPDI offers relief to cryptocurrency companies that have historically lacked access to normal banks as partners. Cryptocurrency companies in the United States have traditionally banked with a handful of cryptocurrency-friendly banks or otherwise turned to smaller, sometimes less capable intermediaries. For example, after Wells Fargo stopped processing cryptocurrency exchange Bitfinexs transactions, Bitfinex turned to a Panamanian company that later allegedly lost $850 million worth of Bitfinex funds. If Bitfinex had been properly banked, it may have avoided this mishap.
Traditional banks attitudes toward cryptocurrency companies may be shiftingbig banks such as JPMorgan that once called Bitcoin a fraud now take cryptocurrency exchanges as clients. But cryptocurrency companies still have several reasons to pursue their own banking operations.
They may, for instance, prefer to pursue SPDIs over working with third-party banks that could later de-platform them in response to political pressures. Such concerns linger following Operation Choke Point, in which President Barack Obamas Department of Justice pressured banks to avoid servicing legal but politically unsavory businesses, such as payday lenders.
Integration of cryptocurrency companies into existing regulatory and financial systems may also assuage hesitant potential customers. Krakens SPDI comes with oversight from the Wyoming Division of Banking. And the states SPDI Act allows companies to apply to join the Federal Reserve System, bringing them closer to larger payments networks.
Moreover, being a bank in a growing industry could prove profitable to cryptocurrency companies. Especially when other such firms are relying on third parties to process payments and convert between cryptocurrencies and dollars, offering banking services through a companys own SPDI could allow it to provide quicker service than competitors do.
Although predictions for cryptocurrency activity vary greatly, optimists predict massive growth over this decade. Enabling cryptocurrency companies to offer banking services presents an opportunity to capture part of that growth.
Such optimism undergirds Wyomings SPDI Act. The state hopes to develop itself as a hub for cryptocurrency companies. SPDIs must be chartered in Wyoming, but they may be able to offer their services across the United States.
Beyond the SPDI Act, Wyoming has passed a dozen other laws to entice cryptocurrency companies to locate in the state. For instance, the Financial Technology Sandbox Act offers supervised, flexible regulatory oversight for cryptocurrency companies to test innovations in a welcoming business environment.
Meanwhile, Wyomings Digital Asset Act classifies cryptocurrencies as property under existing laws and clarifies that the Uniform Commercial Code applies to cryptocurrencies, offering users greater regulatory clarity in business. Wyoming even set up a new chancery court that, like Delawares, focuses on business disputes.
Much as Delaware captures an outsized share of U.S. businesses generally, proponents of Wyomings cryptocurrency regime claim that Wyoming will become the Delaware of cryptocurrency companies.
Other jurisdictions are competing for that mantle as well. Over a dozen states introduced bills in 2020 to regulate or study regulating cryptocurrencies. New Yorks early attempt at regulating cryptocurrency companiesthe BitLicenseprecedes Wyomings efforts. But New York has so far attracted few applicants, acquiring instead a reputation as a state with onerous regulatory hurdles.
More recently, the mayor of Miami, Florida, has proposed including Bitcoin in the citys investment portfolio and paying municipal workers in Bitcoin in efforts to make Miami a center for tech industry innovation.
Regulatory competition for cryptocurrency extends internationally as well. Switzerlands Zug district established a Crypto Valley with a business-friendly regulatory framework, and Singapore situated itself as a regional cryptocurrency hub.
Despite Wyomings efforts, the United States lack of a coordinated, federal approach could push cryptocurrency innovators to other countries.
Wyomings approach, however, may ultimately inform a federal strategy, as recently elected U.S. Senator Cynthia Lummis (R-Wyo.) reportedly became the first senator to own Bitcoin. Senator Lummis has hired a key figure behind Wyomings cryptocurrency regulations for her staff and reportedly plans to introduce the topic of Bitcoin to the Senate and increase the understanding in the Senate about Bitcoin.
In the meantime, Wyoming has already approved its second SPDI. More SPDIs would appear to be riding into town.
Read this article:
The Cowboy State Tames Bitcoin's Regulatory Wild West - The Regulatory Review
Bitcoin Is Still Really Confusing, According To Economists – Junkee
Bitcoinjust hit a massive all-time high price of over 60,000 US dollars,and then dropped again.
The narrative surroundingBitcoin can swing easily between extremes, and its famouslychaotic to follow.
Elon Musk can move the market with a single tweet. And at the same time, you see disclaimers like this in the financial press that say, if you buyBitcoin you need to be prepared to lose everything.
For the first year ofBitcoins life, it didnt have a dollar price value. Now people are waiting for the price to dip so they can afford to buy in.
And after 13 years, there are still big limitations to how much we canactually explainabout Bitcoins chaotic narrative.
Understanding Bitcoin can be confusing. But basically, itsa paymentsystem,and a digital representation of value. It is bits of data moving on a blockchain network, according to a finely tuned system of rules.
And it has its roots in the early moments of the internet.
Thinking about digital currency started in cryptography and blockchain research in the 70s and 80s.
And a subculture of computer geniuses started prototyping and trying to make different digital currency projects through the 90s and early 00s. They were all unsuccessful untilBitcoin.
These guys are often collectively called theCypherpunks, and they were driven by two key ideas.
Firstly, they believed a key piece of internet infrastructure was missing.
The internet was made for one thing: information sharing.
But over time, a huge number of systems that were never designed to be connected to the internet have been layered over the top of it. And thats left a lot of holes, and a lot of potential for badly designed tech to erode things like our privacy and security.
Moneys always been one of these holesbecausethe internet fundamentally wasnt designed to be a payment platform.Credit cards werent even designed to be used online.
TheCypherpunkswere trying to design the mechanism or protocol,that would let us transfer valuein the same way we could transfer information through emails.
And they also had techno-utopian ideas about broadermoney reform.
They thought that money which was native to the internet,could be free of the things that made government-controlled money so corruptible under the wrong conditions.
If money could be programmed to behave a certain way, then people could just trust in the value of that money,instead of having to trust governmental monetary policies to maintain the value of money.
And taking that idea of trust further,theCypherpunksthought it would be better to trust in cryptography that prevented data capture, instead of trusting in privacy legislation that just prevented data being shared.
These driving ideas only became more important over time.
As the internet became increasingly organised under massive corporations and the market for big data grew.And as monetary policy around the world caused a series of huge financial crises which made money in the bank less safe.
Bitcoin was being coded in 2008, right as the Global Financial Crisis was unfolding.
As a response to this, it was designed as a totally finite resource with a controlled release schedule, which meant it couldnt be ruined by inflation and its value was more likely to appreciate over time.
Bitcoins design is considered a major innovation because it included rules that wouldactually maketheBitcoin circulate.
And it solved something called the double spend problem. It made somethingdigitalthat people couldnt just copy and paste and share infinitely.
Bitcoin was designed to provide a service that was ideologically, politically and technically important in the mind of its creators. But a big part of the ongoing experiment has alwaysbeen:wouldBitcoin ever have real world demand?
Back in 95, the fist creator of digital currency a guy called DavidChaum presented at US Congressional hearings about what the future of money should look like. He basically said, the government could either support or stifle the development of this tech, but people wouldultimately come to choose it.
Since then, weve slowly overcome the sense thatBitcoinjustwasnt something peopleneeded, or thatBitcoinwasa solution looking for a problem.
The creators originally hypothesised that a bunch of different use cases might get people to useBitcoin.And gradually over the last decade, this is what has played out.
Its also important to recognise thatBitcoin has always seen media-driven price spikes. So as time has gone on, more of its features have become visible and this has driven adoption too.
The Silk Road, and other dark web marketplaces after it, drove major early use ofBitcoin and created a media storm around it. It was valuable in these spaces because users didnt have to know or trust anyone they dealt with, they just had to trust theBitcoin design.
And any time a government-run currency has been mismanaged, its also generated a lot of press forBitcoin, and drivenBitcoin adoption. Like in the 2013 Cypriot banking crisis, and with the hyperinflation thats been escalating in Venezuela since 2016.
All ofthese use-cases have proven the value in having an alternative system to the banks.
But the closer we get to the bitcoin limit of 21million the more visible its scarcity feels, and the more people are treating it like digital gold.
Right now, major funds and businesses in America are using it as a new investment vehicle. AndBitcoin is being financialised to facilitate this.
BecauseBitcoinssupply can never adjust to respond to demand, this has been driving the price up.
Professor Ellie Rennie (RMIT):Long-term holders are not buying and there are new institutional holders who are snapping up any free Bitcoin on the market.Its a basic supply and demand thing; theres a lot more demand than supply right now and, as a result, prices are going up.
As time has gone on, the circular force ofBitcoins design has kept it going through all the crazy market cycles and drama.
The Bitcoin design establishes three rules and makes them all work together like a clock. The rules basically say that any time someone usesBitcoin, newBitcoin is made. Andas long aspeople useBitcoin, this will keep going like a self-fulfilling prophecy until we hit the 21million limit.
Even though there has been a huge amount of riskaroundBitcoin, its technically never beenBitcoinitselfthats been risky.
The companies built around theBitcoin network like the exchanges that help people get money in and out ofBitcoin, and the wallets that help people holdBitcoin have exposed users to big hacks and scams.
User error has also caused a lot of heartache.
But underneath those elements,Bitcoin always keeps ticking over according to its design.
And today, the most meaningful thing we can measure aboutBitcoin is that its still here, when over 1000 othercoin brands have failed. And this makes us more certainBitcoins design is valuable.
The bigger picture here is thatBitcoins continuing survival is being taken as proof thatBitcoins underlying tech, blockchain, isreally valuable.
We now have 13 years ofBitcoin showing that people can self-organise and trust in more efficient ways using blockchain networks.
Some academics think blockchain could automate the way we trust, in any industry that relies on record keeping, and that itactually hasthe potential to spark a new industrial revolution.
Ultimately economists cant saywhether or not60,000US dollars is a fair price for one Bitcoin, because we dont technically know how to value it in the same way we know how to value stocks or artworks.
Professor Sinclair Davidson (RMIT):What we are lacking in the crypto space is that valuation model or that generally agreed valuation model.
If you have a look at the Twitter space, you will see all these people making wonderful arguments as to why you should buy, why you shouldhodl, why you should never sell. Thats all good and well, and theythink, theyfeel, theyknowthat its valuable. But what they dontactually haveis a good explanation and understanding of why Bitcoin is the value that it is.
So, we might say, I know that Bitcoin is valuable. But I cant say to you, I know why Bitcoin is currently worth, say 59,000USdollars per coin.
Why it is valuable? How is valuable? What are the drivers of that value, is what we are missing rightnow.And that I think is where work needs to be done and substantial work needs to be done over the next few years.
And thats becauseBitcoin wasnt just an experiment that started in 2008 and then ended. This experiment is still going.
In the future we might see lots of different crypto currencies interacting, where each one has a different monetary policy thats fit for a specific purpose.
But were still waiting to seeifthis will play out, andhowthis might play out andwhatBitcoins full potential will look like.
Read more:
Bitcoin Is Still Really Confusing, According To Economists - Junkee
Will Cardano’s coming of age hit Bitcoin and Ethereum? – International Investment
Cardano's recent full decentralisation will fuel its appeal and price, better positioning it to take on rivals Bitcoin and Ethereum in the booming cryptocurrency market, predicts deVere Group CEO and founder Nigel Green.
His prediction comes as Cardano (ADA) last week became a fully-fledged community-run network.
.Green said: "The price of Cardano has exploded over the last few months - up around 600% since the beginning of the year, recently making it the third largest cryptocurrency by market capitalisation after Bitcoin and Ethereum.
This milestone will help Cardano better position itself to challenge major rivals in the cryptoverse."
"But now Cardano has come of age by becoming fully decentralized - meaning its parent company has handed control of the blockchain over to the community - we can expect it to attract more investors which will, of course, drive its price on an upward trajectory."
He added: "This milestone will help Cardano better position itself to challenge major rivals in the cryptoverse. "Cardano is likely to be a challenger to Ethereum as not only can it be used as currency, but its blockchain - the tech on which it runs - can also be used to build smart contracts, protocols and decentralised applications. Plus, it is said to be significantly more scalable than Ethereum."
"It will also pose a challenge to the all-mighty Bitcoin. This is because those who invest in digital assets already or are planning to do so, know that one of the secrets of successful investing is diversification.
"Therefore, these investors will want their cryptocurrencies diversified too and this is ultimately likely to eat into Bitcoin's market share."
Visit link:
Will Cardano's coming of age hit Bitcoin and Ethereum? - International Investment