Category Archives: Cryptocurrency
Will iMining Blockchain and Cryptocurrency (CVE:IMIN) Spend Its Cash Wisely? – Simply Wall St
Theres no doubt that money can be made by owning shares of unprofitable businesses. For example, biotech and mining exploration companies often lose money for years before finding success with a new treatment or mineral discovery. But while the successes are well known, investors should not ignore the very many unprofitable companies that simply burn through all their cash and collapse.
So, the natural question for iMining Blockchain and Cryptocurrency (CVE:IMIN) shareholders is whether they should be concerned by its rate of cash burn. For the purpose of this article, well define cash burn as the amount of cash the company is spending each year to fund its growth (also called its negative free cash flow). First, well determine its cash runway by comparing its cash burn with its cash reserves.
See our latest analysis for iMining Blockchain and Cryptocurrency
A companys cash runway is the amount of time it would take to burn through its cash reserves at its current cash burn rate. In November 2019, iMining Blockchain and Cryptocurrency had CA$6.8k in cash, and was debt-free. Importantly, its cash burn was CA$39k over the trailing twelve months. Therefore, from November 2019 it had roughly 2 months of cash runway. To be frank we are alarmed by how short that cash runway is! Depicted below, you can see how its cash holdings have changed over time.
iMining Blockchain and Cryptocurrency didnt record any revenue over the last year, indicating that its an early stage company still developing its business. Nonetheless, we can still examine its cash burn trajectory as part of our assessment of its cash burn situation. From a cash flow perspective, its great to see the companys cash burn dropped by 99% over the last year. That might not be promising when it comes to business development, but its good for the companies cash preservation. iMining Blockchain and Cryptocurrency makes us a little nervous due to its lack of substantial operating revenue. We prefer most of the stocks on this list of stocks that analysts expect to grow.
Theres no doubt iMining Blockchain and Cryptocurrencys rapidly reducing cash burn brings comfort, but even if its only hypothetical, its always worth asking how easily it could raise more money to fund further growth. Issuing new shares, or taking on debt, are the most common ways for a listed company to raise more money for its business. Many companies end up issuing new shares to fund future growth. By comparing a companys annual cash burn to its total market capitalisation, we can estimate roughly how many shares it would have to issue in order to run the company for another year (at the same burn rate).
iMining Blockchain and Cryptocurrencys cash burn of CA$39k is about 5.4% of its CA$727k market capitalisation. Given that is a rather small percentage, it would probably be really easy for the company to fund another years growth by issuing some new shares to investors, or even by taking out a loan.
Even though its cash runway makes us a little nervous, we are compelled to mention that we thought iMining Blockchain and Cryptocurrencys cash burn reduction was relatively promising. Looking at the factors mentioned in this short report, we do think that its cash burn is a bit risky, and it does make us slightly nervous about the stock. Separately, we looked at different risks affecting the company and spotted 6 warning signs for iMining Blockchain and Cryptocurrency (of which 4 cant be ignored!) you should know about.
Of course iMining Blockchain and Cryptocurrency may not be the best stock to buy. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks that insiders are buying.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
Read the original post:
Will iMining Blockchain and Cryptocurrency (CVE:IMIN) Spend Its Cash Wisely? - Simply Wall St
How Do You Maximize the Benefits of Cryptocurrency While Avoiding Near-Term Tax? Consider a Self-Directed IRA – The Block Talk
ContentBox is utilizing the blockchain in hopes of disrupting the digital content industry.
Relevant content should be easy to find in this technologically-enabled era. However, competition has created white noise that can be hard to penetrate for both creators and content-seekers.
Take podcasts. When we go to Apple Podcasts, Spotify, Soundcloud or any other number of apps and search our favorite topics from a phone, tablet or laptop, we expect to find the most relevant results. But, due to convoluted distribution schemes and multiple different platforms, thats not always the case. What happens, for example, when a podcast isnt featured on your devices native app store or podcast app? Or, perhaps its only available in the language of the non-English speaking foreign country you may be traveling in (which you might not happen to speak). At this point, it becomes a matter of scarcity: do you risk settling for a diminished digital experience, or worse, diminishing the quality of your trip?
Renee Wang was working in Japan when she realized there were no podcasting platforms that supported multiple languages on the market. She had to download podcasts to MP3 files and piecemeal them into one. Recognizing the gap, she decided to build a solution.
CastBox was Born
Renee and her co-founder Alex He built CastBox, a discovery app hailed the Netflix of podcasts, and an all-in-one solution to the problem with having to hunt down disparate podcast channels, apps, and stations to find the podcasts you want. Replete with foreign language and multi-platform support, as well as personalized recommendation features, CastBox is essentially a blockchain-enabled podcast aggregator that not only allows individuals to discover new podcasts tailored to their interests, but also allows users to see what others are listening to on the app, and personalize their podcast recommendation and search preferences. One of the greatest ways CastBox adds value to users podcast experience is through its in-audio search feature: the app transcribes and indexes audio files and then allows users to search for them based off of just one sentence or body of text within it, after which CastBox then shows their search result, in addition to giving contextualized recommendations to similar podcasts.
On July 17, CastBox Launched ContentBox
As Wang and He discovered, the creative landscape for digital content creators is wide and deep, leading to significant and often insurmountable competition. Unfortunately, the profit potential for such creatives is bleak, as a result. In a market where distribution channels take the lions share of content creators revenues, the blockchain is poised to rebalance the model in the artists favor. And thats where ContentBox comes in.
On July 17th, CastBox launched ContentBox on Huobi Global. The platform is an open-source blockchain infrastructure for creators, a token-based ecosystem comprised of a shared user and content pool along with a unified payment solution. As a decentralized content ecosystem, ContentBox gives users, creators, and companies alike the ability to integrate into it, opening up content channels, monetization, and multi-platform mobilization.
Boasting 18 million users, 3 billion BOX released, and 750 million BOX circulating as of July, ContentBox is now working on scaling its adoption of BOX Passport, a cross-platform identity and attribution gateway; BOX Payout, a borderless and secure payment transaction network; and BOX Unpack, a turn-key content management solution for publishers, to provide even more monetization opportunities for artists and creators.
ContentBox is allowing users to deposit and buy BOX both on its platform as well as on Huobi, which now also accepts BOX deposits, as well as BOX/ETH and BOX/BTC trades on its platform. ContentBox aims to decentralize the digital content industry and tackle its biggest pain pointscreator monetization, user incentives, and content ownershipthrough a unified payout system, a shared content pool, and a shared user pool. ContentBox is the latest and most wide-ranging effort to combat abuses towards artists in the digital production industries, where platforms take the lions share of creators profits in exchange for distribution rights. ContentBox allows artists to bypass distribution platforms and access users directly, maximizing their profit potential. The release gives creators crypto-incentives for featuring their podcasts on the platform in the form of BOX tokens, which can be traded for ETH and BTC on Huobi Global.
With the release of ContentBox, CastBox further moves to disrupt the digital content production industry with an antagonistic business model that gives value back to creators instead of profiting off of them. There is major support for this: ContentBox is backed by Nirvana Capital, Node Capital, BlockVC, LinkVC, ICONIZ, JRR, and Fenbushi Capital founder Bo Shen. Further, that ContentBox was listed on Huobi at all is validation: only 0.0001% of all crypto projects are listed on this particular exchange. Yet, to definitively change the industry, CastBox will need to reach mass markets to scale platform adoption and reach mass profitability for podcasters using ContentBox, as well as attract key influencers away from top digital content distribution platforms and onto its own. If it can do this, ContentBox could allow CastBox to compete with the top market-dominating podcast apps globally. Keep your eyes open for more news on this continuing development.
Editorial note: this article was updated to correct a typographical error. We previously reported there were 750 billion BOX circulating as of July that number was updated to reflect the accurate figure: 750 million.
What do you think about blockchain vs. tradition digital content distribution platforms? Could these really disrupt todays digital content industry? Post in the comments below to tell us your opinions!
See original here:
How Do You Maximize the Benefits of Cryptocurrency While Avoiding Near-Term Tax? Consider a Self-Directed IRA - The Block Talk
Russian Premier Bank Signals Red For Cryptocurrency Circulation And Issuance – TWJ News
Several counties across the world have entered the blockchain industry, with applications being quickly identified. Governments have also recognized that the adoption of new technology is a way to expand the current financial structure. Some countries, however, had different opinions, and Russia was one of them. Just recently, the Director of the Central Bank Department stated that they were opposed to institutions organizing the development of cryptocurrency in Russia.
Alexei Guznov, Director of the Legal Department of the Bank of Russia, recently spoke about the crypto discussion of Russian authorities. It also disclosed information on the new terms and requirements set out in the draft CFA bill. The CFA bill is being re-presented in the Kremlin, and Guznov was asked about the preparations for the second reading.
The amendments for the bill have been in the works for more than a year no and many proponents were waiting for it with bated breath. Here the Russian government also plans to understand the differences between certified securities and digital financial assets.
Speaking to Interfax, Guznov stated:
The bill, adopted in the first reading in 2018, was oriented, rather, to the definition of digital assets, it almost did not contain the rules for their circulation.We did the work to refine the text of the project by the fall of 2019.And the main question that arose then is whether it is necessary to include digital currency in the regulatory circuit.This has become a stumbling block.
Russia has stated that it does not want to mix crypto with other regulated assets. At present, the bill simply defines what digital financial assets are while constructing a watershed so that securities and non-cash funds do not mix. Another advantage of the bill was that it provides a basic infrastructure for organizing the issuance and circulation of virtual assets.
Although the cryptocurrency climate was improving in Russia, users still needed to be careful about the jurisdiction. According to Guznov, the ministry was against institutions that can organize the release of cryptocurrencies. The Director of the Central Bank was careful to mention that they could not completely govern the crypto assets held by somebody in the country.
The bill will ensure users adhere to the rules of the IFRS. The IFRS regulations will always have to be held up but reports claimed that a mechanism was being created where a person could present their objections too. Russia was in the throes of several financial changes and it seemed that its tussle with crypto was never-ending.
This February, the Bank of Russia had issued a new set of rules for suspicious transactions and illegal funds. With these laws, any crypto-related transaction was categorized as a potential money laundering risk. While Russia has been banning the use of external cryptocurrencies, reports have shown that the state-backed crypto was in the works. No detailed plans have come out yet but proponents are waiting to watch what the Kremlin does with blockchain and crypto.
Continued here:
Russian Premier Bank Signals Red For Cryptocurrency Circulation And Issuance - TWJ News
Cyber Thieves Using Coronavirus Fears to Steal Bitcoin (BTC) and Cryptocurrency – The Daily Hodl
According to DomainTools senior security engineer Tarik Saleh, the number of coronavirus-themed domain registrations increased following reports of the first cases of COVID-19, and many of these are allegedly scams.
One particular platform, coronavirusapp[.]site, is prompting users to install an Android application for real-time updates on the pandemic. Instead, the app comes bundled with a ransomware aptly called CovidLock.
CovidLock asks for permission to access the lock screen. It then employs a technique known as screen-lock attack, which holds the phone hostage by blocking user access.
The ransomware threatens to erase contacts, pictures and videos on the infected device, as well as leak the victims social media account information and wipe all phone data unless a ransom of $100 is paid in Bitcoin within 48 hours.
Saleh says phones running on the latest Android versions should be fine if the user set a password to unlock the screen.
Since Android Nougat has rolled out, there is protection in place against this type of attack. However, it only works if you have set a password. If you havent set a password on your phone to unlock the screen, youre still vulnerable to the CovidLock ransomware.
DomainTools researchers say theyve already reverse-engineered the decryption key and plan to share it publicly. They are also monitoring the transactions in the Bitcoin wallet used by the ransomware.
Featured Image: Shutterstock/Immersion Imagery
The rest is here:
Cyber Thieves Using Coronavirus Fears to Steal Bitcoin (BTC) and Cryptocurrency - The Daily Hodl
BitGo Starts to Further its Cryptocurrency insurance policies – Crypto Daily
BitGo, the cryptocurrency custodian giant is now offering insurance for assets that it holds in excess of $100 million coverage.
According to an announcement released on the 18th of March, the platform is the first crypto assets custodian to allow its customers to buy excess limits above its standard policy. More than $100 million of insurance coverage in the crypto space was initially launched.
As this new policy comes into fruition, the assets of clients from BitGoare going to insure their assets beyond custodians $100 million coverage. The new policy will also see that many features adjustable limits and prorated premiums allow the customer to pay only for a relevant period of insurance.
Furthermore, the new insurance coverage is going to be managed by a specialty insurance broker firm Woodruff-Sawyer & Co in a partnership with Paragon Brokers.
Given the fact that cryptocurrency is a risky asset to hold, it shouldnt come as a surprise that the demand for insuring them is on the rise. Reports have previously come out stating that the protection of crypto holdings, in terms of insurance, is slowly but surely becoming a mainstream choice.
It will be interesting to see how this situation plays out. For more news on this, Crypto Portfolios and other crypto updates, keep it with CryptoDaily!
Read this article:
BitGo Starts to Further its Cryptocurrency insurance policies - Crypto Daily
Cryptocurrencies see $93.5 billion wiped off value in 24 hours as bitcoin plunges 48% – CNBC
Bitcoin prices fell sharply amid the global sell-off in equities.
Luke MacGregor | Bloomberg | Getty Images
Cryptocurrencies took a battering following a global sell-off in stocks, with bitcoin seeing a near 40% plunge.
The market capitalization, or total value of the entire cryptocurrency market plummeted around $93.5 billion in the space of 24 hours as of 10:07 a.m. Singapore time, according to data from Coinmarketcap.com.
Bitcoin was down 48% from 24 hours before at 10:24 a.m. Singapore time at $4,001.60, according to data from Coindesk.
The fall in cryptocurrency markets comes amid a broader sell-off in equities as governments worldwide continue to grapple with the new coronavirus that's spreading rapidly across the world. The number of global cases has now exceeded 128,000, according to data compiled by Johns Hopkins University.
In the U.S., theDow Jones Industrial Averageclosed 2,352.60 points lower, or 9.99%, its worst drop since the 1987 "Black Monday" market crash. That selling spilled over into Asiaon Friday morning, where stock markets in Japan, South Korea and Hong Kong saw heavy losses.
Investors are concerned about the global economic fallout from the coronavirus as businesses are disrupted and cities are locked down. Countries have taken different approaches with Italy, one of the worst hit-nations, shuttingdown shops and restaurants, and the U.S. canceling sporting events. Across the world, schools have been shut and people made to work from home.
Over the past few years, bitcoin has been likened to "digital gold" and has been seen by some as a safe haven asset to park money when markets are facing turmoil. But bitcoin, which has now erased all of its gains for the year and is in negative territory, is behaving more like a risk asset such as an equity.
And action by central banks has done little to soothe investors' concerns. This includes a recent emergency interest rate cute from the Federal Reserve and the Bank of Englandas well as further easing measures by the European Central Bank.
Other cryptocurrencies suffered similar drops on Friday. Ethereum tanked 49% at 10:24 a.m. Singapore time while XRP was down over 42%.
See the original post here:
Cryptocurrencies see $93.5 billion wiped off value in 24 hours as bitcoin plunges 48% - CNBC
[Updated] The Real Reason Behind Bitcoin And Cryptos Massive $50 Billion Crash? – Forbes
Bitcoin and cryptocurrency priceshave fallen sharply over the last few days,with around $50 billion wiped from crypto markets.
[Updated: 07:32am EST 03/12/2020] The bitcoin price, which had been trading around $10,000 per bitcoin just last week, is now down almost 30% over the last seven days after suddenly plummeting this morning and wiping out all its 2020 gains. Bitcoin earlier collapsed to under $6,000 per bitcoin, sending many other major cryptocurrencies, including ethereum, Ripples XRP, bitcoin cash, and litecoin, even lower. Read the full story here.
Bitcoin's sudden sell-off was put down to global market turmoil sparked by oil cartel Opec's failure to agree to a supply cut, sending the oil price to historic lows, but some think bitcoin's move lower could have its origins elsewhere.
The bitcoin price had climbed through the first few months of 2020 but the recent falls erased ... [+] almost all it year-to-date gains.
"The sudden drop in prices seems to arise out of the selling of [bitcoin] by PlusToken," the chief executive of India-based cryptocurrency exchange CoinSwitch.co, Ashish Singhal, told bitcoin and crypto industry news site CoinDesk.
PlusToken, a Ponzi scheme that swept China and Korea over the last few years, saw around $2 billion worth of bitcoin and other cryptocurrencies stolen from investors.
Last Saturday, ahead of the traditional market rout caused by Opec, PlusToken scammers moved a little over $100 million worth of bitcoin to so-called mixers, designed to disguise the origin and destination of the coins.
The fraudsters may have then sold off the bitcoins, causing prices to fall as supply flooded the market, according to Singhal.
The bitcoin price fell by almost $1,000 per bitcoin on Saturday, before stock markets and other assets crashed.
"PlusToken scam moved another 13,000 bitcoin's yesterday," bitcoin and cryptocurrency analyst Kevin Svenson said via Twitter on Sunday.
"They also did something similar after bitcoin crossed above $10,000 this year. They are slamming the market with sell orders. Essentially we have a giant whale unloading after every move up."
Bitcoin has been battling against falling trading volumes and stalled adoption in recent months (though that's not stopped some from betting big on the number one cryptocurrency).
When trading volumes are low the market is more susceptible to manipulation by big traders.
The bitcoin price has lost around 20% over the last month, all but destroying the narrative that ... [+] bitcoin had begun performing as a so-called safe-haven asset.
Many have taken the latest fall in the bitcoin price as proof it is failing to act as a so-called safe-havenan idea that had gained popularity in recent months as bitcoin rose in the face of escalating U.S. and Iran tensions and then apparently gaining on fears the coronavirus could knock global trade.
Traditional safe-haven assets, such as gold and the Japanese yen, usually move higher in times of greater risk and uncertainty.
"Bitcoin is down 8% in the last day, much more than global equities," economist and outspoken bitcoin critic, Nouriel Roubini, said on Sunday night viaTwitter.
"Another proof that bitcoin is not a good hedge versus risky assets in risk-off episodes. It actually falls more than risky assets during risk-off."
See the original post here:
[Updated] The Real Reason Behind Bitcoin And Cryptos Massive $50 Billion Crash? - Forbes
50 Companies Back New Cryptocurrency Project Competing With Facebook’s Libra – Bitcoin News
Some members of the Libra Association are now backing a rival project called Celo, which has its own blockchain and cryptocurrency. Over 50 major companies have pledged their support, each pursuing a diverse set of use cases. The project claims that the combined reach of all members exceeds 400 million people.
Also read: Bitcoin Legal in India Exchanges Resume INR Banking Service After Supreme Court Verdict Allows Cryptocurrency
The Celo Foundation announced on Wednesday 50 founding members of the Celo Alliance for Prosperity. Celo is an open platform that makes financial tools accessible to anyone with a mobile phone, its website describes. The project offers a way for developers to build mobile apps based on Celos Ethereum-based blockchain with a stablecoin.
The effort is designed to deliver humanitarian aid, facilitate payments and enable microlending through a cryptocurrency called the Celo Dollar, which is scheduled to launch in April, Bloomberg reported. Chuck Kimble, who heads the Alliance for Prosperity, said in a phone interview with the publication:
The value of the Celo Dollar will be pegged to the U.S. dollar and backed by a reserve of other cryptocurrencies It will be available in the U.S., but the alliances focus is on Latin America, Africa, and Southeast Asia.
Citing that Today less than .5% of global citizens benefit from the speed, transparency, utility, and low cost of using blockchain technology, the foundation detailed, The Alliance members have a plan to change that and are committed to leveraging the power of Celos innovative blockchain technology to create solutions that work across devices, carriers, and countries.
Alliance members are pursuing a diverse set of use cases, including powering mobile and online work, enabling faster and affordable remittances, reducing the operational complexities of delivering humanitarian aid, facilitating payments, and enabling microlending, the foundations announcement explains. Their combined reach is over 400 million people.
The project is dubbed by some as a rival to Facebooks Libra project, which has been scrutinized by regulators worldwide since it was first announced. The Libra project is currently considering redesigning as several key members have left the project, including Paypal, Visa, Mastercard, Stripe, Mercado Pago, Ebay, and Vodafone.
Kimble claims that There are some similarities [with Libra] in terms of mission, which is why there are some people who have joined both alliances. Some Celo Alliance for Prosperity members that are also Libra supporters include Anchorage, Bison Trails Co., Coinbase Ventures, Andreessen Horowitz and Mercy Corps. However, the Celo project does not have the massive userbase that Facebook has.
Payments in the Celo Dollar stablecoin can be sent to peoples phone numbers rather than complicated addresses, Tech Crunch noted, asserting that The goal is to make delivering utility via blockchain easier by building a flexible network of applications that doesnt scare regulators like Libra has.
Kimble claims, We have met with governments around the globe as well as central banks, we are continually engaging with governments in the many countries which we hope to serve. Diogo Monica, president of Anchorage, which is a part of both the Libra project and the Celo Alliance for Prosperity, said in a statement:
Celo and Libra each have unique focuses and approaches, but they share a goal that Anchorage strongly believes in: banking the unbanked.
What do you think of the Celo project? Do you think regulators worldwide will have a problem with it like they do Facebooks cryptocurrency? Let us know in the comments section below.
Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Images courtesy of Shutterstock and the Celo Foundation.
Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here.
A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.
View original post here:
50 Companies Back New Cryptocurrency Project Competing With Facebook's Libra - Bitcoin News
Bitcoin Just Failed the Coronavirus Test – Motley Fool
Bitcoin has taken investors on a roller-coaster ride, and although its value has risen dramatically since its inception more than a decade ago, it's had plenty of huge downdrafts along the way. The latest plunge in bitcoin, though, comes at a time when many would've thought the cryptocurrency would be most likely to soar: in the wake of the global COVID-19 pandemic.
On Thursday, bitcoin suffered its worst one-day drop in years, falling from $7,600 to $5,300. The price of the popular cryptocurrency approached $4,000 at moments on Thursday night. Shares of the bitcoin-tracking Grayscale Bitcoin Trust (OTC:GBTC) followed suit. With the price of bitcoin having been above $10,000 as recently as mid-February, the question many crypto investors have is why the token's price failed to deliver on its promise as a safe-haven asset in times of turmoil in the traditional financial system.
Image source: Getty Images.
For a long time, cryptocurrency advocates have argued that tokens are ideal safe havens from the uncertainties of the broader financial markets. With a fixed supply and strict rules for releasing new tokens onto the market, bitcoin arguably isn't subject to the same manipulation that central banks and government entities can use with their fiat currencies. In past events that have caused strain on the financial markets, bitcoin and other cryptocurrencies have typically seen their prices rise. Moves like the Federal Reserve's injection of liquidity into the credit markets on Thursday certainly seemed to be the sort of thing that would usually inspire bitcoin investors to get more bullish.
In that light, the coronavirus-inspired plunge in bitcoin prices seems anomalous. Yet the knee-jerk explanation from many financial experts for bitcoin's plunge was that cryptocurrencies had essentially lost their safe-haven status and were once again perceived as a risky asset. That's inconsistent with the basic investing thesis many cryptocurrency investors have in justifying their bitcoin holdings, and if it's true, it would potentially be a big blow to the idea that bitcoin offers a safe alternative to fiat currencies and assets that are tied to those currencies.
Although Thursday's drop in bitcoin was most notable, the decline in the crypto token's price started to accelerate earlier this week. That happened to coincide with the dramatic plunge in oil prices stemming from news that Russia and Saudi Arabia had failed to come to an agreement in limiting crude oil production. With bitcoin and other cryptocurrencies playing a key role in those parts of the world, the connection to this hit to the energy markets made some sense.
However, those who are more familiar with the cryptocurrency markets pointed to another possible cause. A Ponzi scheme run by an entity called PlusToken has taken advantage of cryptocurrency investors in China and Korea in recent years, fraudulently taking roughly $2 billion in bitcoin and other tokens from the scheme's victims. A cryptocurrency exchange executive said that sales of bitcoin by PlusToken might have been a contributing factor in starting the avalanche of downward price action, with the Ponzi scheme con artists reportedly moving their crypto holdings in ways that would make it more difficult to track sales.
The problem that bitcoin and other cryptocurrencies face is that there's no single reason why investors choose to own them. Some see bitcoin as a legitimate alternative to fiat currencies, but others simply speculate that they can buy bitcoin low and sell it high, with the primary goal of increasing the value of their dollar-based portfolios.
As long as risk-sensitive speculators are heavily involved in the bitcoin market, cryptocurrency investors can expect to continue seeing violent price swings -- even for reasons that don't seem to make sense. It'll take a more concerted effort to unify bitcoin users with a common purpose in order to smooth out the cryptocurrency's price action going forward.
Visit link:
Bitcoin Just Failed the Coronavirus Test - Motley Fool
The unlikely cryptocurrency bill that went to Congress – Decrypt
A new cryptocurrency bill is being floated in front of congress this week. The proposed cryptocurrency act of 2020 intends to split cryptocurrencies into three distinctions: Commodity, Security, and Currency.
According to Marshall Hayner, founder and CEO of crypto payments firm Metal Pay, the bill will "fundamentally restructure" cryptocurrencies in the States.
Along with Rep. Paul Gosar, Hayner is cited as one of the founders of the bill and introduced it in congress on Monday. A day after he explained the proposal to all 541 members of the legislature, Hayner took to Twitter and produced a compressive tweetstorm on the subject.
Per Hayner's thread, the bill seeks to split cryptocurrencies up into three separate classifications: crypto-commodities, crypto-securities, and crypto-currencies.
The first, crypto-commodities, are defined as tradeable, fungible digital assets that exist on the blockchain. These can also represent contracts, utilities, or commodities in the physical world. These would likely include Bitcoin, Ethereum, and other such tokens.
The second, crypto-securities, represent a "security-like instrument." According to Hayner, these too exist on a blockchain but often derive their value from external assets. These may pertain to real-world tokenization on the blockchain.
As reported by Decrypt, fast-food chain Fatburger recently issued securities on the Ethereum blockchain. It's likely that such assets would fall under this category.
The third and final classification is cryptocurrency, but as Hayner describes them, it seems to refer to stablecoinscryptocurrencies pegged to fiat currencies. These include Tether, USDC, and the Paxos Standard.
The bill cites them as "basic tools of a digital, global economy," built to resist counterfeiting, money-laundering, and manipulation.
Further, the bill proposes that the Commodity Futures Trading Commission (CFTC), the Financial Crimes Enforcement Network (FinCEN), and the Securities and Exchange Commission (SEC) provide appropriate oversight for each classification.
While the proposed act intends to bring some clarity and order to the cryptocurrency regulation, it's already been the victim of considerable community backlash.
Jerry Brito, executive director of Coin Center, argued that since the bill concerns multiple regulatory jurisdictions, it would need assent from two committeeswhich would be almost impossible. This, in Brito's view, is made even more challenging by the fact that the bill's co-founder, Rep. Paul Gosar, is not a member of either of the considering committees.
Further, Alex Gladstein, CSO for both the Human Rights Foundation and the Oslo Freedom Forum, raised an issue with the act.
Per the bill, any individual transacting cryptocurrencies with a business will have their information shared with the relevant regulatory agencies. He argued this would be an infringement on everyones financial privacy. Not that blockchains have much privacy anyway.
Visit link:
The unlikely cryptocurrency bill that went to Congress - Decrypt