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WITH CRYPTOCURRENCY IN AFRICA, YOU CAN BE RICH!

The quest for money will never end. There is a saying that 'money is not everything' but reality is that you actually need money to do everything. Unless you want to go and live in a cave in some remote place faraway. Even with that, you will still need money for transportation. 

The average Ghanaian or African will have a hard time depending on a single source of income. That is why it is wise to look into other sources of income. One of the best ways to do that is to make money even when you are not working.  one of the richest men the world, Warren Buffet has said that “If you don't find a way to make money while you sleep, you will work until you die” I dont know about you but I am not planning on working my whole life, at least not full time. 

Man needs to have fun with family and friends. Spend quality time with kids while thinking less about how much money you have left. There are actually so many places that you can visit in th world apart from your home town for vacations. Unless you are not dreaming 'outside the box'. There has to be time you wake up on a monday morning and ask your kids ' where is our next vacation destination'  All these are possible. And all these are possilble. 

Cryptocurrency haas changed the lives of many young people across the world. Many people have become millionaires because they invested in cryptocurrrency.  I will not tell you what cryptocurrency is or how it works. you can google that for yourself. But be sure that it's a fine way to invest your money and watch it grow. 

In 2010 bitcoin was just around 0.36 dollars. Today it is worth over 6,000 dollars and still rising. If you bought just about 10 bitcoins in 2010, your coins will be worth over 60,000 dollars!! Guy!! 60,000 dollars is a lot of money. But you are not getting that money if you didnt have bitcoin already. What if i told you there is another opportunity to acquire a coin that has so much potential. YES! there is. 

Paxexcoin is the newest sensation. Less than a year old and it has alot of prospects already. For a coin to gain more value, people must use it. Paxeex Coin is already in collaboration with Cofred Ghana Limited. This is one of the leading companies in Africa which is engaged in online marketing, cryptocurrency trading, online payment processing and banking services. This means that you can trade your coins for money when ever and where ever you are.

It is interesting to know that people are making money with Paxex already with Paxex Forum. do you have stories to share, don't share these stories for free. Share relevant up-to date stories and earn some extra cash. You might want to check that out too on https://www.paxexlive.com

Sending SMS to any phone number around the world has never been simple and affordable.Check out TELBOT at https://telbot.me/ Very soon you can buy airtime with your coins directly from your paxex wallet. 

Looking foward, there will be a betting site where you can use your coins to bet on games to get more coins. more Africans and people around the world will get accustommed to using this cryptocurrency.

Remember that while all these things go on the value of the coin will rise. You will then be asking yourself 'how much coins do I have in my wallet', 'why didnt I invest in this earlier?' by then, it would have been too late. "Had I known is always at last"

Don't say I didnt tell you. Take this opportunity while it is still affordable to acquire alot of Paxexcoins. Let us make money together. 

 

 

 

 

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Ripple Rises Again in 10% Jump , Bitcoin Volumes up 26% to $4 Billion.

Cardano (ADA) and Ripple (XRP) have surged by more than 10 percent in the past 24 hours while Bitcoin maintained stability, leading the recovery of the crypto market.

Earlier this week, the valuation of the crypto market dropped to $190 billion, which led investors to worry about a potential fall to the market’s yearly low point at $185 billion.

Bitcoin has remained relatively stable in the $6,300 region as it has been throughout the past few weeks.

Gradual Recovery

On September 16, when the Bitcoin price was hovering at around $6,500, CCN reported that the low volume of the dominant cryptocurrency can be considered as a short-term weakness of the market that could leave major cryptocurrencies vulnerable to a drop in price.

“Generally, after a slight decline in price, a minor corrective rally occurs and major cryptocurrencies increase by small margins. But, the low volume of Bitcoin, which is currently at $3.3 billion, can be considered as a concern for traders,” the report read.

On September 17, the price of Bitcoin dropped below $6,300 as ETH, the native cryptocurrency of Ethereum, fell back down to the $190 region.

After recording a minor corrective rally on September 18, the crypto market has shown decent gains throughout the past 48 hours. Crucially, the volume of Bitcoin, which remained below $3.4 billion in the past several days, has recovered to $4 billion.

Within a period of three days, Bitcoin has experienced an increase in volume of more than 26 percent, from $3.4 billion to $4.3 billion.

Such a rapid increase in the volume of Bitcoin supported by strong performance of major cryptocurrencies like Cardano and Ripple are expected to fuel a short-term rally, which may see Bitcoin testing resistance levels at $6,500, $6,600 and $6,800.

For nearly two months, since early August, Bitcoin has struggled to properly breach out of the $6,000 region. BTC has remained volatile in the $6,300 to $6,600 range, unable to find momentum in the high $6,000 region.

If the volume of BTC at around mid-$4 billion can be maintained in the weeks to come, a potential rally towards $7,000 is a possibility, given that the market has shown weakness despite massively oversold conditions.

Analysts state that the continuous drop in the prices of major cryptocurrencies will likely lead to a strong corrective rally, especially if investors in the global crypto market recognize the oversold conditions and refuse to sell in the low price range.

Optimistic Developments

This week, UPbit and Binance, two of the largest cryptocurrency exchanges in the global market, have expanded to Singapore, a region that has been known for its friendly crypto and blockchain regulations but has struggled to see large-scale exchanges thrive.

Government officials in the UK have emphasized the necessity to grow the local cryptocurrency and blockchain sector to ensure that it can remain competitive with other major regions.

In terms of regulation and institutionalization of cryptocurrencies, the market has seem more developments in the past month than it has seen in the past eight years.

https://www.ccn.com/ripple-rises-again-in-10-jump-bitcoin-volumes-up-26-to-4-billion/

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Bitcoin Still in the Middle of a Bear Market: Analyst.

Veteran Bitcoin analyst Willy Woo insists that bitcoin is still in the middle of a bearish trend. This contradicts the opinions of some experts who believe that the sell-off period has already come to an end, therefore expecting a bull ride to kick in.

Market Behaviour and Speculators

Since January 2018, bitcoin and the cryptocurrency market in general have been in a significant downtrend. This trend has seen the largest cryptocurrency lose over 65% of its value, and the market capitalization dropping from over $297 Billion to about $112 Billion as at the time of writing.

Before embarking on the downtrend, bitcoin experienced an unprecedented bullish ride. It’s price rose from around $3,500 to an all time high of just above $20,000 in a space of 4 months. This market behaviour attracted a lot of new monies into the cryptocurrency market, a phenomenon that was largely responsible to the growth in market capitalization.

Many speculators who invested in the cryptocurrency market in the course of the bull run have counted their losses and pulled out based on declining value. Others however have continued to hold onto their positions in anticipation of an eventual recovery. Whether the wait is a normal trend of occurrence or not in the bitcoin market cycle remains a subject of individual interpretation based on available information.

Contradicting Opinions

In an earlier report on CCN, billionaire Galaxy Digital founder Mike Novogratz predicted an exhaustion of the current downtrend, noting a retest of the breakout region that triggered the bullish run of late 2017. Novogratz explained that markets like to retrace breakouts, and at the point of his submission, bitcoin had retraced the entire “bubble” of the preceding upward run.

Novogratz isn’t the only one to have called an end to the prevailing downtrend, as CNN has reported a couple more predictions by renowned industry characters and analysts of an imminent reversal of trend. These calls have been repeatedly violated by declining prices that have seen the world’s number one cryptocurrency achieve lower lows for the season repeatedly.

The recent submission by Woo which emphasizes the sustained bearish or at least sideways momentum of bitcoin is based on the historical behaviour of the cryptocurrency.

Woo tweted:

“Bitcoin has seen only 3 bear markets in its history**. We are in the third one now. One signal we can use to determine the end of the bear is for the price to cross above its 200 day moving average.”

More Technical Analysis

Woo continued by supporting his claim using the Bitcoin NVT Ratio, which he terms as his favorite indicator. He explained that the NVT peaks during bear markets, although it has been criticised for being laggy in detecting bears, it is a leading indicator to signal the end of the bear. According to him, NVT returns to it’s normal range before the next accumulation phase, a condition that is yet to be fulfilled.

The bitcoin and altcoin market is one of the most closely watched in the global marketplace right now. Several factors are seen to be behind the prevailing market behaviour, most of which are fundamental in nature. While there are varying opinions on what would become of bitcoin and cryptocurrencies, the loudest among them insist on an eventual sustained uptrend. The main uncertainty in this case is about when this uptrend shall kick in.

https://www.ccn.com/bitcoin-still-in-the-middle-of-a-bear-market-analyst/

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Enough ‘Feeble Warnings’, Regulate ‘Wild West’ Crypto Market: UK Lawmakers.

British lawmakers called for the regulation of the domestic cryptocurrency market which they claimed to be the “Wild West”, whilst insisting rules could help the UK become a “global centre for crypto-assets”.

In a report published by the British Parliament’s Treasury Committee on Wednesday, lawmakers claimed investors are “afforded very little protection” from a number of risks including no formal recourse for consumer compensation. It was no longer sustainable for the government nor regulators to continue issuing “feeble warnings” with no action, the committee added, insisting that regulation addressing consumer protection and anti-money laundering norms was the minimum measure required.

Volatile prices, hacking concerns among exchanges vulnerable to attacks, minimal consumer protection and money laundering concerns are all underlined as ‘problems’ by the report’s findings. The UK government and regulators’ “ambiguity” was no longer sustainable, it added.

“Bitcoin and other crypto-assets exist in the Wild West industry of crypto-assets. This unregulated industry leaves investors facing numerous risks,” said Treasury Committee chair Nicky Morgan. “Given the high price volatility, the hacking vulnerability of exchanges and the potential role in money laundering, the Treasury Committee strongly believes that regulation should be introduced.”

She added:

“It’s unsustainable for the Government and regulators to bumble along issuing feeble warnings to potential investors, yet refrain from acting…At a minimum, regulation should address consumer protection and anti-money laundering.”

In the same report, the Treasury Committee urged the government to evaluate the risks in the cryptocurrency sector to then assess whether the industry’s growth should be encouraged.

Regulation could lead to positive outcomes including increased liquidity for the cryptocurrency market, the Treasury Committee notably said.

Member of Parliament Nicky Morgan insisted:

“If the government decides that crypto-asset growth should be e1ncouraged, appropriate and proportionate regulation could see the UK become a global centre for this activity.”

Coinbase Sterling Pound

The British government could soon regulate the cryptocurrency sector, following the likes of Japan, Australia, the Philippines and Thailand.

Today’s report follows a formal inquiry launched by the UK’s Treasury Select Committee, a powerful group of cross-party MPs, into cryptocurrencies earlier this year.

U.K. authorities have, ironically, been urged to revisit their hands-off, wait and see approach by fintech firm Ripple, commonly associated with the cryptocurrency XRP. Earlier this year, Ripple’s head of regulatory relations Ryan Zagone called on British regulators to end the ‘Wild West’ era of cryptocurrencies, urging Britain to take a cue from Japan where exchanges are regulated and under supervision while cryptocurrencies like bitcoin are legal as a method of payment.

The British government has since launched a cryptocurrency task force comprising of Her Majesty’s Treasury, the Bank of England and the Financial Conduct Authority (the treasury, the central bank and the primary regulator respectively) to understand the sector’s risks and benefits. The working group agreed on a handful of key objectives during its first meeting earlier in May.

“The introduction of regulation should be treated as a matter of urgency,” the Treasury Committee said in its concluding summary of recommendations unveiled today.

https://www.ccn.com/enough-feeble-warnings-regulate-wild-west-crypto-market-uk-lawmakers/

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Singapore Central Bank Flags Website Promoting Bitcoin Scam.

The Monetary Authority of Singapore (MAS), the country’s central bank, has issued a statement warning people about a website soliciting bitcoin investments that is using comments falsely attributed to Tharman Shanmugaratnam, the MAS chairman and Deputy Prime Minister.

The statements attributed to Tharman on the website are misleading and false, MAS noted, except for his statement that the country’s cryptocurrency trading is low.

The authority urges people to refrain from providing personal or financial information on the website, which encourages people to create a bitcoin account using a bank account or credit card.

Authority Takes Consistent Stance

MAS has noted previously that investing in cryptocurrencies is risky. On Dec. 19, 2017, the authority issued a notice about the risks associated with cryptocurrency. In response to a Parliamentary question on Feb. 5, 2018, Tharman said citizens could “lose their shirts” investing in cryptocurrencies.

The MAS urges people who are suspicious about an investment to contact law enforcement.

Singapore officials have stepped up their regulatory activity since last year, when the country became seen as a haven for cryptocurrency exchanges and ICOs following China’s crackdown.

ICOs Draw Concern

In May, the MAS notified eight cryptocurrency trading platforms that it declined to name to become authorized before offering digital token trades for tokens constituting securities or digital tokens. The notice was issued at a time when the number of exchanges and token offerings both have been increasing in the country.

The MAS also halted an ICO at the time, claiming the issuer violated securities law after the central bank found the tokens represented equity ownership in a company and the offering did not have the required MAS registered prospectus.

Last November, the MAS issued a guide to digital token offerings while the central bank was reviewing if more regulations are needed to protect investors from the risk posed by cryptocurrencies.

https://www.ccn.com/singapore-central-bank-flags-website-promoting-bitcoin-scam/

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Swiss Crypto Startup Eidoo Announces Token Tied to the Price of Gold.

Eidoo has become the latest cryptocurrency startup to seek to create a more stable token by tying it to the price of gold.

The Switzerland-based startup says the ERC-20-compatible token, dubbed the ekon, will sit alongside its multicurrency wallet and decentralized exchange. But perhaps more notably, each token will be redeemable for one gram of 99.9 percent fine gold, which the startup says will be stored in its vaults and audited every 90 days.

"People will be able to see the gold stored in the security vaults through a video camera, we will post a link on the website so everyone can control the gold," Natale Ferrara, the startup's founder.

Fees for buying and selling ekon on the exchange will generate revenue for Eidoo in the form of its EDO token (CoinDesk previously reported on the company's unique approach to its revenue). Ferrara also said that fees will be assessed if anyone wants to trade in their crypto token for an actual gram of gold.

"Each Ekon token will be backed by ... [24-karat gold], so we will issue new tokens only if the gold is available and only if the user has completed the KYC and all the legal requirements that the Swiss law requires," Ferrara wrote.

Eidoo raised $27.9 million in a token sale last October, and its app has since become one of the more popular platforms for launching initial coin offerings. As it has expanded services to crypto users, it has added exchange services – an area that the gold-backed stablecoin fits within.

Stablecoin push

The announcement comes amid what one could call a boom in stablecoin announcements, including two – from Gemini and Paxos/itBit – which have won approval from regulators in New York.

And while the controversial tether (USDT) remains the market leader in this area, one exchange recently revealed that it's moving on from the token – suggesting that other rivals could begin to grab at market share.

But a gold-backed token is perhaps a strange choice for a stablecoin, primarily because the metal's price itself isn't very stable. Its price is down $150 since the spring, but up about $25 over the last month, according to data from APMEX.

"Benchmarked against the USD, gold is not necessarily 'stable,'" Dr. Wang Chun Wei of Australia's University of Queensland told CoinDesk in an email.

He went on to explain:

"Most exchanges (and investors) use USD as the reference currency, hence it makes more sense for the stablecoin to be based on that reference currency."

Wei – who released two papers this year, one on liquidity in crypto markets and a second focused specifically on the relationship between the stablecoin tether (USDT ) and bitcoin – acknowledged that some crypto holders might just like having something in their portfolio that's not correlated with the crypto market.

Boon for investors?

That lack of correlation was something investors spoke to in the context of crypto-based real estate investments.

Scott Hoch of Apex Token Fund, for example, previously argued that crypto-native investors want all their investments on a blockchain, which explains why they might favor a token over a gold exchange-traded fund.

That way, if someone using Eidoo wants to look at all their assets in one place, including a gold hedge against the risk of the crypto market, then it might help to have a token which does that for them.

Others aren't so convinced, including Kyle Samani of MultiCoin Capital.

"This already exists but not tokenized," he told CoinDesk. "I think it's hype. Doesn't change anything."

But for a small brand in a crowded space, hype could make a difference. https://blog.cofredcoin.com/2018/09/19/swiss-crypto-sta…he-price-of-gold/

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Attorney General’s brutal crypto exchange review is just the start.

A heated argument is a healthy argument... within reason.

On 17 April the New York Attorney General Eric T. Schneiderman launched the Virtual Markets Integrity Initiative. It was a fact finding mission rather than an inquisition, and was largely welcomed at the time by an industry hungry for the opportunity to prove its legitimacy and commitment to customer safety.

The results might be less thrilling, and the overall tone of the findings might be described as politely tempered, yet brutal.

Some background

The initiative took the form of a detailed questionnaire which would have been a real pain to complete. You can find the full list of questions here (PDF).

All information in the findings reflects information voluntarily provided by participating exchanges. And while the exchanges were asked to provide confirmation of the information they provided, the Office of the Attorney General (OAG) cannot vouch for the accuracy of their responses or confirmations.

It also notes that what you're seeing in these results probably represents the pinnacle of industry legitimacy, or somewhere close to it. This is because cryptocurrency exchanges that want to trade in New York need to get the famously onerous and expensive-to-obtain New York BitLicense, and a full 7 out of 10 of the surveyed exchanges have managed to achieve this license. This is well above the industry norm.

A total of 14 exchanges were invited to participate, and 10 did while the remaining 4 bowed out while saying that they didn't accept trades from New York.

Those 4 exchanges were then investigated to see whether this was true, and 3 of them were then referred to the Department of Financial Services for potential violations of New York's virtual currency regulations.

The results in the review are from the 10 participating exchanges

  •  
  • These are all the exchanges that got the invitation. These were chosen because they're prominent and are thought to cover a large portion of the industry.

    • Coinbase/GDAX
    • Gemini
    • bitFlyer
    • iFinex (Bitfinex)
    • Bitstamp
    • Kraken
    • Bittrex
    • Circle/Poloniex
    • Binance
    • Elite Way Developments (Tidex.com)
    • Gate.io
    • itBit
    • Huobi
    • HBUS (opened in July as a Huobi "strategic partner" and was separately invited to participate at a later date than the rest)
  •  
  • These ten accepted the invitation and decided to participate. These are the exchanges whose responses make up all the findings in the report.

    • Coinbase/GDAX
    • Gemini
    • bitFlyer
    • iFinex (Bitfinex)*
    • Bitstamp
    • Bittrex
    • Circle/Poloniex
    • Elite Way Developments (Tidex.com)*
    • itBit
    • HBUS (opened in July as a Huobi "strategic partner" and was separately invited to participate at a later date than the rest)*

    *These exchanges are not named as having applied for approval to trade in New York.

  •  
  • These are the exchanges which declined while saying they don't allow trading from New York.

    • Binance
    • Gate.io
    • Huobi
    • Kraken
  •  
  • These are the exchanges who were referred to the DFS for potential violations of New York's virtual currency regulations. In other words, the OAG suspects they might still be allowing trading from New York despite claims to the contrary. Oops.

    • Binance
    • Gate.io
    • Kraken

Scathing findings

It's not pretty.

They're rife with potential conflicts of interest

It's common, the report noted, for exchange operators to use their own platforms as a trading venue. Similarly, they're often issuers of a cryptocurrency that's traded on their own platform (such as Binance BNB and many, many more). This is fairly common in the cryptocurrency world where exchanges will often issue their own tokens, and then obviously go on to trade them on their own platform, but it's still a potential conflict of interest. The same goes for exchange operators having holdings in other cryptocurrencies being traded on their platforms, either as an institution or as an individual.

This is compounded by platform employees, who might have access to nonpublic information, having cryptocurrency holdings of their own while using the same platform for personal use.

The result is "substantial potential for conflicts between the interests of the platform, platform insiders, and platform customers," the report noted.

To a certain extent these may be unavoidable. For example, in the case of platforms trading their own cryptocurrency it's perhaps not reasonable to subject these kinds of cases to the same restrictions as more traditional assets. But elsewhere there's definitely room for improvement.

One of the keys going forwards might be to recognise which elements of cryptocurrency can and cannot be reasonably subjected to existing regulations.

"Rules and regulations will need to catch up with certain market realities that are unique to the crypto ecosystem; including global participation and around-the-clock trading. We don't expect to see a perfect solution from regulators any time soon, but there is plenty of good intent from our conversations in both the private and public sectors," says Ken Nguyen, co-founder and CEO of Republic.

"Trading platforms have yet to implement serious efforts to impede abusive trading activity"

Some exchanges have taken steps to police the fairness of their platforms, the report notes, but most haven't.

"Platforms lack robust real-time and historical market surveillance capabilities, like those found in traditional trading venues, to identify and stop suspicious trading patterns. There is no mechanism for analyzing suspicious trading strategies across multiple platforms. Few platforms seriously restrict or even monitor the operation of "bots" or automated algorithmic trading on their venues."

"Indeed, certain trading platforms deny any responsibility for stopping traders from artificially affecting prices. Those factors, coupled with the concentration of virtual currency in the hands of a relatively small number of major traders, leave the platforms highly susceptible to abuse. Only a small number of platforms have taken meaningful steps to lessen those risks."

"Protections for customer funds are often limited or illusory"

"Generally accepted methods for auditing virtual assets do not exist, and trading platforms lack a consistent and transparent approach to independently auditing the virtual currency purportedly in their possession; several do not claim to do any independent auditing of their virtual currency holdings at all. That makes it difficult or impossible to confirm whether platforms are responsibly holding their customers’ virtual assets as claimed."

"Customers are highly exposed in the event of a hack or unauthorized withdrawal. While domestic or foreign deposit insurance may compensate customers for certain losses of stolen or misappropriated fiat currency, no similar compensation is available for virtual currency losses. There are serious questions about the scope and sufficiency of the commercial insurance that certain platforms purport to carry to cover virtual asset losses. Other platforms do not insure against virtual asset losses at all."

Next time you meet an exchange that says it's fully insured, ask whether that insurance covers customer digital assets. The answer may or may not surprise you depending on how cynical you are. Cybersecurity insurance is a standard component in business insurance, but millions of dollars of customer cryptocurrency is an entirely different can of worms. Similarly, there's a tendency for assurances of protection to be accompanied by disclaimers along the lines of "literally everything is at your own risk, under no circumstances is the exchange responsible for anything whatsoever."

"Illusory" protection is an ongoing problem in the industry. But once again, it's worth considering the real differences and realistic limitations of trying to subject cryptocurrency exchanges to the same standards as other financial institutions. For example, insurance options for customer crypto tend to be extremely limited and expensive these days, and were entirely nonexistent a few years ago. In this respect, it's perhaps not (yet) fair to hold cryptocurrency exchanges to the same insurance standards as other financial institutions.

The industry response

The findings are of great interest to a great many industry experts, touching on everything from cybersecurity to business strategy to regulations to cryptocurrency's core ideals of decentralisation and traditional libertarianism.

On the broader industry implications of the report

The findings will have ripple effects over the next 6 months to a year, says Franklin Bi, associate director at Wachsman Strategic Advisory Group and former blockchain strategy lead and VP for JPMorgan.

"The ramifications of this report will play out over 6-12 months, at least. The New York Attorney General’s Office leads the nation on these types of issues and this is as clear as it gets. Today is also vindication for everyone who sounded the alarm on how much improvement is needed across cryptocurrency market infrastructure. It may be tempting to dismiss this report as a one-off event, but it could be the beginning of a series of actions at the federal and state level," he said.

The findings are loud and clear, and exchanges that want to get at US customers should probably be paying close attention.

On cybersecurity

The report didn't entirely cover all necessary cybersecurity angles, noted Hosho CEO and founder Yo Kwon, and what was covered raised some serious issues.

"It’s frightening that two of the nine responding exchanges do not conduct penetration tests; every exchange should be conducting them regularly," he said. "I also recommend that exchanges offer an authentication mechanism even greater than 2-factor, while encouraging its usage."

"One missing piece in this investigative report is how the cryptocurrencies themselves are evaluated from a security perspective. Smart contract-based tokens should be audited for risks and wallets should be examined as well. Hopefully with reports like this, consumers can hold exchanges more accountable by abstaining from using those reporting poor security hygiene."

On heavy-handed authorities and government over-reach

"This report is another example of New York’s OAG overreaching its mandate by requiring businesses that operate outside of their jurisdiction to subject themselves to New York oversight," said Dash Core CEO Ryan Taylor. "This further cements New York's reputation as a state that is not friendly to cryptocurrency. It is deeply disappointing to see the state target well-run organizations that actively exclude users from New York, and take steps to prevent users from circumventing these controls."

It's worth noting that New York state's reputation for crypto-unfriendliness has been built over years, and that many of the surveyed exchanges have had extensive, expensive and unpleasant flings with New York regulators over the years.

juicy crypto words

In that context this report might be seen as just more business as usual. Many of the participating exchanges have never been able to please New York regulators, and probably see no reason to start trying now.

For example, BitStamp poured over $100,000 into its BitLicense application before realising that it couldn't afford to keep throwing money at a license it might not get. Bitfinex also cut off customers from New York when the license came in, apologetically saying it simply couldn't justify the costs of serving NY customers. Kraken was a more emphatic example, walking out of New York with both middle fingers akimbo after the BitLicense came in.

 

Flaring tempers

 

Tensions might be running especially high now, which might also impact the future shape of regulatory moves.

At the time of its introduction, the BitLicense was mostly the domain of well-funded institutionalised crypto services. In fact, the first ever BitLicense was awarded to Circle in 2015, which happens to be heavily backed by Goldman Sachs to the tune of $50 million. To date, only five BitLicenses have ever been awarded, and all of them have gone to extremely large firms that enjoy close ties to established financial institutions.

Whether intentional or not, the effect over the last few years has been to kick the smaller crypto players out of New York. And now, right as the New York OAG releases a new batch of criticisms, Wall Street's biggest institutions are diving right into cryptocurrency from their Manhattan offices.

Many bitcoin ideologues see cyptocurrency as a way of challenging bank dominance, and a way of regaining economic control from the financial institutions whose reckless pursuit of profit plunged the world into the GFC. Satoshi Nakamoto all but explicitly said that bitcoin was a direct response to the GFC. From a more extreme perspective, it might look like regulators spent years fighting and delaying cryptocurrency just long enough for their pals on Wall Street to come in and steal bitcoin's potential for themselves.

This is worth considering to better contextualise Kraken's eyebrow-raising responses to the OAG's report.

 

 

Release the Kraken

Most crypto traders don't care about "licenses and regulatory approval, being protected from market manipulation, being protected from making risky investments [or] conforming to Wall St's image of what crypto markets should be," Kraken said in its public response to the OAG.

They just want a high quality, fast and secure platform to do their thing, Kraken said. And if that thing happens to be placing risky bets on risky assets assets in an unpredictable and potentially manipulated market, then who is the OAG to tell the customers they can't?

"We encourage regulators to resist the temptation to just swing at whatever's within arm’s reach. Think about your long-term strategy. If you make life too difficult for your neighbors, they might move away. And then you will be attempting to protect your consumers from the guys across the ocean, who couldn’t care less about your strong right hook," Kraken said. "Whether you think you have us by the balls or not, approaching us with some basic respect and having a conversation is always going to make the interaction smoother and help you get what you want faster than storming in with your "or else" list of demands."

The OAG described Kraken's public response as "alarming."

Gambling or finance?

Other industry insiders share the OAG's concern.

"The OAG's crypto exchange report shines much needed light on the practices of US-based exchanges and outlines the many avenues of abuse traders may suffer at the hands of unscrupulous firms. But they haven't even begun to examine exchanges around the world being used by US investors. If and when this happens, many will be shocked," says Kowala CEO Eiland Glover.

"And, though Kraken didn't participate in the Virtual Markets Integrity Initiative, the company did provide truthful insight into unpleasant facts about what drives today's cryptocurrency markets: "market manipulation "doesn't matter" to most crypto traders and "scams are rampant" claims Kraken. How could market manipulation not matter? If traders are able to ride the waves of price spikes produced by bots and other market manipulations, they can possibly win big (or, of course, lose it all)—in other words, they are gambling. Who wants to go to a casino where you can only make 8% return on your money in one year—boring. It's so much more compelling to have the chance of making 100x in a few months."

"The problem with this state of affairs is that it can hurt individual investors and delay adoption of cryptocurrencies in particular as real payment mechanisms for everyday consumers and businesses. We need upstanding, transparent exchanges to help move the industry away from gambling and towards realising the true promise of cryptocurrency and blockchain for people around the globe."

Of course, the idea of moving cryptocurrency away from gambling and towards being an established financial service might be a bit of a false dichotomy. All finance is gambling, and from a strictly legal consumer protection standpoint it's actually easier to gamble away all one's money on the well-regulated stock market than in a casino. Not only is there a false perception of minimal risk, but US casinos are legally obligated to turn away problem gamblers while financial services aren't.

Only one way forwards

Zach Warsavage, North American strategist at Elastos, said: "Government agencies' interest in cryptocurrencies and exchanges is a good sign for the industry as a whole, and one that indicates recognition of the technology's lasting power. The projects that will usher in mainstream adoption of blockchain technology and digital currencies must prioritise regulatory compliance first and foremost."

"The fact that a state regulatory body went through such a comprehensive process to better inform and protect its residents who trade cryptocurrencies is a promising step forward for the overall regulatory outlook in the United States," says Horizen (formerly ZenCash) president and co-founder Rob Viglione. "It is a little disconcerting to see many policies that should be in place to protect investors were, in fact, absent on a few exchanges. In order to foster innovation in the space, it is important to ensure the industry's market infrastructure is operating under the highest standards of regulatory compliance."

Despite all the frictions and ideological compromise, the general consensus might be that cryptocurrency regulation is the only way forwards. Even Kraken, among all its objections to the OAG, emphasises that its goal is to encourage widespread cryptocurrency adoption which can only be accomplished by working with regulators.

It's widely accepted that sensible regulation is the right road to crypto adoption, but there's still little agreement on how to best walk that road and no shortage of conflicting opinions, and it might take some time to get used to the novelty of an industry saying "no" to regulators - at least without also offering a suitcase full of money.

On the whole, all the frictions are probably a good sign of healthy debate where it's needed most.

https://www.finder.com.au/attorney-generals-brutal-crypto-exchange-review-is-just-the-start

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The UK looks like it really wants to ban bitcoin but knows it can’t.

UK regulators are approaching with the assumption that the end goal is to keep bitcoin out of reach.

"It's unsustainable for the government and regulators to bumble along issuing feeble warnings to potential investors, yet refrain from acting," said Nicky Morgan, chair of the UK Treasury Committee.

"Bitcoin and other crypto-assets exist in the wild west industry of crypto-assets. This unregulated industry leaves investors facing numerous risks. Given the high price volatility, the hacking vulnerability of exchanges and the potential role in money laundering, the Treasury committee strongly believes that regulation should be introduced."

"The FCA agrees with the committee’s conclusion that bitcoin and similar crypto-assets are ill-suited to retail investors, and as we have warned in the past, investors in this type of crypto-asset should be prepared to lose all their money," the UK Financial Conduct Authority (FCA) said.

So there's clear agreement among British regulators that it's time to regulate the space, for the sake curbing misbehaviour and to protect consumers from the risk of losing everything. But the assumption underlying the discussions is that protecting consumers, in this case, means ensuring that

So... what happens now?

Bumbling 101

OPINION

It's the same issue that's been debated in countries all around the world. The spectacular price rise last year put all eyes on bitcoin, but at the same time it was fairly obvious to regulators that it was a bubble to burst eventually.

But quick riches are a tempting proposition, and in this day and age of mass media it's not possible to protect consumers from every scuzzy person hoping to take advantage of people with promises of quick no-risk wealth.

Source

The solution, then, is to bumble along and issue feeble warnings, as Morgan said. Almost all countries went through this own bumbling phase at some point, issuing warnings of varying degrees of sternness to consumers advising them to be careful of crypto, pointing out that it's all rather technical and complicated and that - believe it or not - it's a volatile and high risk asset class.

Some countries then followed up these warnings with sterner measures. For example, China didn't ban cryptocurrency per se, but it's cracking down on local exchanges and doing what it can to keep the stuff out of reach. And India went for the exchanges.

The UK is now at the same step; looking for measures to follow up its earlier warnings. The gist is that by all appearances its regulators really, really want to just outright ban cryptocurrency but know it's not feasible.

juicy crypto words

Consider Morgan's statements. By the numbers there seems to be no factual basis for describing the warnings as "feeble." What's to say the warnings aren't perfect just the way they are, and that consumers aren't carefully assessing whether or not a cryptocurrency investment and all the risks it carries is a suitable choice before they buy?

It's estimated that only 6% of people in the UK own any cryptocurrency. How low does that number have to be before consumers are deemed to be effectively protected? If you're shooting for zero then you're chasing a ban, not balanced regulation.

By the looks of it, the only satisfactory number would be zero. The fundamental assumption that appears to underlie the UK Treasury Committee's current calls for regulation is that bitcoin and cryptocurrency is good for nothing, and that no retail speculator should ever touch it.

UK bitcoin ban

It's not a stretch. The FCA explicitly said: "The FCA agrees with the committee’s conclusion that bitcoin and similar crypto-assets are ill-suited to retail investors, and as we have warned in the past, investors in this type of crypto-asset should be prepared to lose all their money."

It also said that there are no well functioning cryptocurrencies (kind of true) and preferred instead to refer to the field as digital assets.

"As the government and regulators decide whether the current Wild West situation is allowed to continue, or whether they are going to introduce regulation, consumers remain unprotected," the Committee said. "Given the high price volatility, the hacking vulnerability of exchanges and the potential role in money laundering, the Treasury committee strongly believes that regulation should be introduced."

The problem is that the fundamental assumption underlying the discussions is that there's no apparent framework for "consumer protection," as the committee is considering it, which doesn't also include keeping bitcoin out of reach.

You can't regulate away bitcoin's volatility, and you can't make crypto exchanges unassailable any more than anything else electronic is hackproof. And bitcoin's undeniable applications in crime - such as reducing violence and keeping everyone safer - frankly have nothing to do with protecting consumers who want to access bitcoin as a potentially appreciating asset.

What happens next?

Good question. Warnings with slightly sterner language? A bitcoin pop quiz for any retail investor who wants to access a UK exchange? (is bitcoin volatile? y/n).

The goal is sensible regulation, but the treasury committee and FCA seem to be approaching with the fundamental assumption that the only sensible thing is to make sure no one can touch bitcoin, because no one should.

“As an industry we have been calling for the introduction of proportionate regulation to improve standards and encourage growth,” said Iqbal Gandham, the chair of the CryptoUK industry group. "Self-regulation by the industry was always intended to be a starting point – this must now be matched by government action."

Matched, or more likely exceeded.


https://www.finder.com.au/the-uk-looks-like-it-really-wants-to-ban-bitcoin-but-knows-it-cant

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1 in 3 bitcoin millionaires have either strong hands or forgotten passwords.

Hodling is closer to the rule than the exception, even among the richer bitcoin wallets.

A new study by Diar has crunched some numbers in a new way, as studies are wont to do, and discovered a few things about bitcoin holders.

The less surprising part might be that over 55% of bitcoin currently sit in millionaire wallets, defined in this case as wallets holding 200 or more bitcoin, currently worth about US$1.27 million.

Bitcoin's wealth distribution is widely known to be enormously skewed to the rich, with just 1% of wallets holding about half of all bitcoin. That's almost exactly the same as the world as a whole, with the top 1% holding about 50% of global wealth. The trickle-up effect is strong.

Much more surprising might be Diar's findings that over a third of the bitcoin collectively sitting in those millionaire wallets have never made an outgoing transaction. These rich collectors either have some very strong hands, in crypto parlance, or they've forgotten their passwords.

Strong hands

Strong hands refers to having the strength to keep holding "bags" of cryptocurrency regardless of price changes. In bitcoin land it means resisting the urge to sell through faith that it will keep going up forever as its non-traditional economic model attempts to dictate.

According to Google trends, interest in "strong hands" as a search term peaked in December-January right as cryptocurrency prices did, so it might mostly be used in the context of resisting the urge to sell at high prices, or strong hand-havers being rewarded for holding their bitcoin bags over the price slumps of the preceding years.

That time of year also coincided with a new influx of strong hand-havers. If you bought bitcoin at its all time high, there might be some consolation in knowing that many rich people did too.

juicy crypto words

While a third of millionaire (200+BTC) wallets have never made any outgoing transactions, that number goes up to 42% when you look at the period of December 2017 to September 17. Of that 42%, more than a quarter (27%) have even continued to add to their stashes throughout the year.

These findings are a broad mirror of previous analyses, such as Unchained Capitals' "hodl waves" study which points at a much stronger inclination towards hodling and strong hand-having among most bitcoin holders than one might generally expect.

"Impressively, 1/3 of the Bitcoins that are sitting in these [millionaire] wallets, have never made an outgoing transaction, which, outside of exchange wallets could indicate either lost private keys, lowering real supply, or a very strong resolve by cryptocurrency believers."

"Long-term investors are keeping the faith in the king of cryptocurrencies despite the bears market in 2018," Diar says. "The top-heavy ownership of Bitcoins of course does not indicate a select number of wealthy individuals solely however, as the largest wallets are owned by cryptocurrency exchanges that are holding the coins on behalf of clients. In fact, 3.8% of the total bitcoin supply are currently sitting in the top 5 wallets that are known to be managed by major exchanges – approx. $4.2Bn in value."

https://www.finder.com.au/1-in-3-bitcoin-millionaires-have-either-strong-hands-or-forgotten-passwords

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A strange anti-cryptominer malware botnet is prowling the Internet.

That's not something you see every day.

Crypto mining malware is a common feature of the Internet these days – an exceedingly common feature, in fact. Cryptojackers, as they're sometimes called, accounted for only 7% of attacks in the second half of 2017. But just a few months later, in the first half of 2018, they were making up a third or more of malware findings.

A new cryptojacker viral strain is nothing new. This one is a clear exception though.

Terminator

The new botnet, dubbed Fbot by its discoverers at Netlab360, is an evolution of previous mining botnets.

juicy crypto words

But instead of infecting its victims with cryptojacking malware, it hunts down and eliminates any existing cryptominers it discovers.

It has three curious features, Netlab360 notes. The first and most obvious is that its sole purpose seems to be to remove other botnet miners. It doesn't seem to do anything else. When it infects a victim, it digs around in their computer for existing mining malware and removes it. Then when it's all done, it removes itself.

This isn't entirely unheard of. Previous strains of cryptomining malware have also been known to kill off rivals, but in those cases it was for the purpose of eliminating competition to keep more of the victim's juicy computing power for itself. This one just eliminates other malware then disappears.

One probably shouldn't assume it's altruistic though. It is still an unwanted infection, and could be a test run or might be setting the table for follow-ups similar to other competitive cryptojacking malware.

The second curious feature Netlab360 notes is that it runs through the Emercoin blockchain, rather than following more traditional methods. This isn't unheard of for malware. Decentralised networks such as Emercoin are naturally well suited to nefarious purposes as well as legitimate ones.

"The choice of Fbot using EmerDNS [Emercoin addresses] other than traditional DNS [domain name servers - web hosters basically] is pretty interesting, it raised the bar for security researcher to find and track the botnet (Security systems will fail if they only look for traditional DNS names)." Netlab360 says.

The third curious element is that Netlab360 is confident that Fbot has strong ties to the Satori botnet, in the form of related IPs, domain names, URLs and other ties. The Satori botnet came to life as an evolution of another botnet called Mirai, which managed to spread far and fast by exploiting security holes in hardware. It has since kicked around the Internet in various forms, occasionally resurfacing to do things like conduct mass scans for vulnerable Ethereum miners.

That something with such close ties to the Satori botnet is now running around and eliminating cryptomining malware is unusual. It's still too early to say whether Fbot is an Internet vigilante bot or a new breed of thief bot scoping out its victims.

https://www.finder.com.au/a-strange-anti-cryptominer-malware-botnet-is-prowling-the-internet

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Enhancing Productivity Through Blockchain Development.

In the mobile app development, blockchain is currently the new kid in the block. It is one of the latest technologies many organizations in the modern tech age are adopting to enhance productivity and improve work efficiency in their various fields of specialization. Even startups are looking to hire skilled mobile application developers with blockchain experience to enable them to lead the overwhelming growth of the industry. While this may seem to pose a great challenge for some organizations operating in the mobile app world, it is, however, interesting to know that there are quite a good number of enterprises that are integrating this technology into their app development process.

Blockchain development may not be entirely referred to as a new technology (as it has long been in existence in the past), however, it is remarkable to observe how the tech is gaining wide popularity among enterprises operating in the crypto world and now it has penetrated into the app development landscape. Today, many professional top app development companies are already integrating this technology with application development such as ecommerce and financial apps due to its ability to enhance transactions and protect sensitive user information.

The Importance of Blockchain Technology In Mobile App Development

Currently, mobile application development is the most important focus in blockchain development, thanks to the overwhelming growth and transformations taking place in the mobile app world. With this technology, mobile app developers are working assiduously to ensure that mobile applications are properly integrated to enable users to perform various tasks right on-the-go. Interestingly, there is no need of third party (such as regulatory agencies or middlemen) to verify the authenticity of transactions made with this blockchain technology. This is not only going to lead to the development of smart apps but will also help to enhance productivity and boost user engagement.

While blockchain development is not new particularly to those organizations operating in the cryptocurrency industry, it is, however, important to note that those in the mobile app industry were only just beginning to see the importance of adopting the technology in recent years. As a matter of fact, it has been revealed that virtually any mobile application can use this decentralized ledger as a database to effectively track transactions between two or more parties. With this tech, stakeholders can confidently and securely share data without the fear of fraudulence. This also helps to boost security since all transactions are carried out in a transparent manner.

Benefits of blockchain technology

As earlier mentioned, app developers can employ blockchain technology in multiple areas of the app development process. Ultimately, this will lead to the development of blockchain-enhanced apps that will disrupt the markedly lower-cost solutions of existing business models. Additionally, app development agencies can employ blockchain development to develop new methods or ways of performing digital transactions via blockchain protocols thereby improving business processes.

Ultimately, blockchain app development is designed to simplify work for users via automated systems that are aimed at facilitating time-consuming processes. This implies that users will no longer have to wait that long to complete tasks on their mobile devices. Also, note that this technology can help to effectively reduce the risk of financial fraud and systemic flaws which are very rampant these days.

There are several ways blockchain development can be employed in today’s mobile industry. This technology can be used to effectively conduct conveyance, collect tax payments, simplify crowd sales, instigate prediction markets, develop generic governance tools, distribute digital currencies, and improve a payment system.

Integrating Mobile Applications With This Technology

When it comes to mobile app development, it is quite interesting to know that the entire development process can be greatly enhanced by simply integrating a blockchain technology. This alone will not only help to improve the development process but also lead to the development of smarter mobile applications suitable for all blockchain features. Just so you know, there is no better way to guarantee that all transactions conducted on a network are accurate than this. With the blockchain technology, all transactions performed will be properly recorded in a decentralized public database.

With this technology in place, users can now perform seamless transactions within a fully anonymous, absolutely decentralized, easy and safe manner. This is just the technology people need to participate in several high-profile activities such as stock market trading. Other industries that could benefit from this technology in few years to come include; transport and logistics, distributed cloud storage, digital identity management, digital voting, online shopping portals, smart assets, gaming, travel industry, eLearning, medical services, healthcare, jewelry business, fintech, insurance, banking, and finance.

How Blockchain App Development Can Be Enhanced

Thanks to the invention and introduction of the blockchain technology, there is currently an increasing demand for blockchain-enabled mobile applications, which are commonly known as “smart apps.” nevertheless, when it comes to integrating blockchain development with app development, it is important to know that it’s no easy feat. Simply put, it’s hard to develop applications that support blockchain technology and even the process of making them secure can be much difficult. Unfortunately, there are not many mobile application developers that are versatile with the use of this ingenious technology to enhance mobile app development.

The mobile app industry is still very much in need of blockchain developers with versed knowledge of this technology particularly those who are experts in developing the new decentralized internet. Anyone who is going to go this way must ensure that they do not only meet up to the right standards but also possess the right skills and tools to make it happen.

In conclusion, blockchain app development may be said to be in its early stages, however, it is important for mobile app developers and development agencies alike to know that this is just the beginning of greater innovations that are yet to come in the mobile app industry. But there should be no relenting for developers from learning how to write executable codes blocks into this technology development.

https://hackernoon.com/enhancing-productivity-through-blockchain-development-21e983995e37

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The UK could become a 'global centre' for crypto assets if it regulates the 'Wild west' space, MPs say.

The UK's Treasury Select Committee released a report into crypto assets on Wednesday. The report called the space a "Wild West" and calls for anti-money laundering and consumer protection regulation.

  • The UK's Treasury Select Committee released a report into crypto assets on Wednesday.
  • The report called the space a "Wild West" and calls for anti-money laundering and consumer protection regulation.
  • But the report doesn't dismiss crypto altogether and said the UK could become a global centre for crypto if it regulates it right.
  • The New York Attorney General's Office has also released a report on crypto exchanges, warning on conflicts of interest, consumer protection, and abusive trading practices.

LONDON — A report from an influential committee of UK politicians has called for regulation of "wild west" crypto assets.

Parliament's Treasury Select Committee published its report on crypto assets on Wednesday. It said the space needs anti-money laundering regulation and possible consumer protection rules.

Nicky Morgan MP, chair of the Treasury Committee, said in a statement: "Bitcoin and other crypto-assets exist in the Wild West industry of crypto-assets. This unregulated industry leaves investors facing numerous risks.

"Given the high price volatility, the hacking vulnerability of exchanges and the potential role in money laundering, the Treasury Committee strongly believes that regulation should be introduced.

"It's unsustainable for the Government and regulators to bumble along issuing feeble warnings to potential investors, yet refrain from acting. At a minimum, regulation should address consumer protection and anti-money laundering."

The report also argued that cryptocurrencies like bitcoin are not in fact currencies but speculative assets. MPs pointed to the large price volatility in the market as one of the factors undermining bitcoin's claim to be a currency.

Despite highlighting significant risks in the market, the report did not rule out the UK becoming a home for crypto assets and crypto asset businesses if regulation is put in place.

Morgan said: "If the Government decides that crypto-asset growth should be encouraged, appropriate and proportionate regulation could see the UK become a global centre for this activity."

Crypto exploded in popularity last year as the price of bitcoin surged against the dollar. However, the entire market has crashed around 80% since its peak.

Separately, the New York Attorney General's Office published an investigation into crypto trading platforms on Tuesday evening. The report found potential conflicts of interest in the market, a lack of consumer protection, and said platforms have made little effort to crack down on abusive trading.

https://www.pulse.com.gh/bi/finance/the-uk-could-become-a-global-centre-for-crypto-assets-if-it-regulates-the-wild-west-space-mps-say-id8873433.html

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Cryptocurrency Exchanges Binance, Kraken May Be Operating Unlawfully in New York: AG Report.

New York State Attorney General Barbara Underwood has referred three major cryptocurrency exchanges to the state’s Department of Financial Services (NYDFS) for potential violation of New York’s virtual currency regulations. The exchanges referred are Binance, Gate.io and Kraken. This was revealed in the Virtual Markets Integrity Initiative Report released earlier today by the Office of the New York State Attorney General (OAG).

The report details the concerns initially raised by the OAG about the operations of cryptocurrency exchange platforms, especially regarding security, internal controls, market surveillance protocols, and other relevant consumer and investor protections.

Cat and Mouse Game

Earlier in they year, CCN reported that the OAG sent out a letter with a 34-point questionnaire to 13 crypto exchanges, including some without active operations in New York, asking them to take part in its Virtual Markets Integrity Initiative aimed at fostering greater transparency into their operations. The 13 exchanges addressed were GDAX, Gemini, bitFlyer USA, Bitfinex, Bitstamp USA, Kraken, Bittrex, Poloniex, Binance, Tidex, Gate.io, itBit Trust Company, and Huobi.Pro.

binance cryptocurrency exchange

Binance, the world’s largest cryptocurrency exchange, may be unlawfully operating in New York, the state’s attorney general’s office said in a new report.

Following the letter, Kraken CEO Jeff Powell responded with strong words, stating that the OAG’s demands showed “disrespect” and “entitlement,” and that the letter showed Kraken made the right call to “get the hell out of New York three years ago.” According to the OAG report, Binance, Huobi, and Gate.io also declined to participate in the initiative, stating that they do not allow trading from New York.

Per the report, the OAG then investigated whether in actual fact these platforms accept no trades from New York State, and based on the results of the investigation, it made the recommendation to forward Kraken, Binance, and Gate.io to the Department of Financial Services for a thorough investigation on possible flouting of the state’s virtual currency laws.

‘Alarming Response’

In the document, the OAG bemoans the lack of regulation and supervision within the crypto exchange ecosystem, singling out Kraken for its “alarming” response to the initial letter.

An excerpt from the report reads:

“The OAG could not review the practices and procedures of non-participating platforms (Binance, Gate.io, Huobi, and Kraken) concerning manipulative or abusive trading. However, the Kraken platform’s public response is alarming. In announcing the company’s decision not to participate in the Initiative, Kraken declared that market manipulation “doesn’t matter to most crypto traders,” even while admitting that “scams are rampant” in the industry.”

In another significant move, the report also issued a direct warning to customers trading on the four non-participating exchanges, stating that the platforms may have received payment in exchange for listing digital assets, which should inform customers’ decisions to interact with them in any way.

https://www.ccn.com/cryptocurrency-exchanges-binance-kraken-may-be-operating-unlawfully-in-new-york-ag-report/

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Shapeshift CEO: Bitcoin Drop Beneficial in Building Market Foundation.

According to Erik Voorhees, the CEO of popular cryptocurrency trading platform ShapeShift, the bear market of Bitcoin is crucial for building market foundation and infrastructure.

He explained:

“Bear markets are for builders. The calm, the quiet, the disillusionment. While the fickle and fair-weather peer around with nervous insecurity, the builders become the market’s foundation, preparing the mortar and stone of tomorrow’s towers.”

Why Corrections Were Historically Important For Crypto

Over the past eight years, in 2010, 2012, 2014, 2016, and 2018, Bitcoin recorded five major corrections, with the latest 67 percent drop this year being the smallest correction in terms of percentage loss since 2010.

Last year, throughout November and December, the cryptocurrency market saw unprecedented levels of speculation and interest, as national television networks and mainstream media outlets continued to fuel hype around the emerging asset class.

In some regions like South Korea, the price of Bitcoin surpassed the $20,000 mark, even reaching $24,000 at one point as a result of the so-called “Kimchi Premium.”

bitcoin price

Source: BitcoinWisdom.io

Investors that have been involved in the market since the early days of Bitcoin were understandably unfazed by the correction, given the four previous 80 percent corrections the dominant cryptocurrency experienced.

But, new investors including many in South Korea that invested large sums of capital into the cryptocurrency market with their savings and loans experienced substantial losses.

While the bear market of cryptocurrencies in 2018 was devastating for every investor in the market, Voorhees and other experts like Coinbase chief technical officer (CTO) Balaji Srinivasan emphasized that the correction was needed to ensure that developers and companies within the sector can build proper infrastructure to handle the next wave of interest and demand.

In late 2017, blockchain networks like Bitcoin and Ethereum struggled to handle increasing demand which pushed transaction fees to the $5 to $30 range. The market experienced wild volatility as it saw an influx of new capital at a rate that was previously unseen.

If the market had continued to see similar demand and momentum throughout 2018, blockchain networks would have had failed to support rising user activity and demand.

As Srinivasan said:

“The reason this thing [cryptocurrencies] really had legs was after 2011 when there was a bubble and it went up, and it came down, and it didn’t go to zero. It kind of stabilized and kept coming back up. Around that time was basically when I said ‘okay, this is going to stick around, it’s got legs, it’s not going to zero.’ That was kind of a buidl year. We have this kind of bubble-crash-build phases in crypto.”

Progress in 2018

The bull market of cryptocurrencies in late 2017 was primarily initiated by individual investors and retail traders, as institutions were not involved in the market.

This year, with the efforts, of Bakkt, Coinbase, BitGo, Starbucks, Microsoft, Goldman Sachs, Morgan Stanley, and Citigroup, institutions are expected to enter the cryptocurrency market.

Public blockchain networks including major cryptocurrencies like Bitcoin and Ethereum have demonstrated rapid progress in scaling, which will allow the market to support the next wave of hype, demand, and interest towards the cryptocurrency sector.

https://www.ccn.com/shapeshift-ceo-bitcoin-drop-beneficial-in-building-market-foundation/

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Fidelity Investments Aims to Release Crypto Products by Year End.

Fidelity Investments CEO Abigail Johnson has revealed that the company is working on a number of cryptocurrency and blockchain-related products and offerings, with their release tentatively fixed for sometime before the end of the year.

Speaking on Friday at the Boston Fintech Week conference, Johnson declined to go into any specifics regarding what exactly Fidelity is working on in the crypto space, but investors and other market participants are likely to pay close attention to subsequent Fidelity announcements as it continues to build a reputation as one of the most crypto-positive large financial service firms in the world.

‘A Few Things Underway’

Speaking about Fidelity’s plans for moving into the cryptocurrency space, Johnson said:

“We’ve got a few things underway, a few things that are partially done but also kind of on the shelf because it’s not really the right time. We hope to have some things to announce by the end of the year.”

The announcement will come as welcome news to crypto markets, which continue to anticipate the entry of large institutional investment that by and large has not yet taken place. In a market with a total capitalisation still below $300 billion despite a surfeit of publicity and investment sentiment, Fidelity has consistently been one of the few large firms that has repeatedly and openly signaled its interest.

Abigail Johnson Fidelity

Fidelity CEO Abigail Jonson | Source: Bloomberg/YouTube

In June, CCN reported that the company was rumored to be at work on a crypto exchange. In the same month, the company is said to have expressed interest in a hiring a fund manager to run a new cryptocurrency fund. Neither of these rumors have been confirmed by the company.

After launching in 2015, the company’s public charity organisation Fidelity Charitable also raised nearly $6 million in crypto donations in only the first six months of 2017. According to Johnson, the success of Fidelity Charitable lay in the fact that it gave a new class of wealthy crypto entrepreneurs an easy way to become philanthropists.

Fidelity isn’t Working on the Crypto Products it Thought it Would be

Johnson also stated that while the company is still exploring uses for crypto and blockchain technology and modifying many ideas along the way, its goal is to place the needs of the market before the technology.

In her words:

“What we started with was building a long list of use cases for either Bitcoin, Ethereum, other cryptocurrencies, or potentially just raw blockchain technology. Most of them have been scrapped by now or at least put on the shelf. The things that actually survived were not the things I think necessarily we expected. We were trying to listen to the marketplace and anticipate what would make sense.”

Despite the growth of cryptocurrencies and digital currency, the Fidelity CEO still maintained that the company does not expect financial services to be completely taken over by electronic offerings in the future, and that this will inform Fidelity’s decisions going forward.

https://www.ccn.com/fidelity-investments-aims-to-release-crypto-products-by-year-end/

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Palestinians Are Using Bitcoin to Transact Across Borders amid Conflict.

For a small but growing community of users in the occupied Palestinian territories of the Gaza Strip and the West Bank, bitcoin has become a lifeline.

Ahmed Ismail, a financial analyst in Gaza, estimated there are at least 20 unofficial "exchange" offices there dealing cryptocurrency to local users. Ismail himself helps 30 clients use bitcoin to purchase investments abroad, such as stocks, since there aren't any local alternatives for putting money to work.

One such currency dealer in Gaza, Mohammed, told CoinDesk over the past four years he helped up to 50 families a month purchase an average of $500 worth of bitcoin each to send money abroad or shop online.https://blog.cofredcoin.com/2018/09/18/palestinians-are…rs-amid-conflict/ 

"Bitcoin, in their opinion, is cheaper, safer, and quicker," he said. "Nothing works with Palestinian banks. Bitcoin wallets are alternative banks."

While Palestine is not the only politically and economically isolated part of the world where cryptocurrency is making inroads, it's somewhat unique among these markets in terms of the drivers – and limitations – to adoption.

For example, Palestinians do not face the kind of hyperinflation that drives Venezuelans, Iraniansand Turks to hodl a digital currency with a limited supply, since they don't have a national currency at all, instead using stable foreign currencies.

But another core property of public blockchain networks is particularly appealing in the Palestinian territories: censorship-resistance.

Anyone can conduct a peer-to-peer bitcoin transaction. Once the transaction is paid for, it can't be vetoed by an intermediary. This would appear to solve a real problem for a population with restricted access to the global economy amid the ongoing conflict with Israel. Even supporters in the West have had their bank accounts shut down for sending money to Palestinians.

"There is no payment gateway, like PayPal, for entrepreneurs to receive payments internationally," Laith Kassis, CEO of the nonprofit Palestine Techno Park in the West Bank, told CoinDesk. "So here comes solutions on blockchain with private nodes."

However, an electronic currency can only do so much in a place where power outages can be a daily occurrence and even traditional banks sometimes struggle to transact with much of the outside world.

Facts on the ground

While sending or receiving bitcoin may be frictionless, on- and off-ramps just don't exist in the Palestinian territories.

There's no way for Palestinians to get their Israeli shekels, U.S. dollars or Jordanian dinars to online crypto exchanges since none of them work with local banks. Hence, they must rely on dealers as liquidity gateways, and that adds friction back in.

One Palestinian tech worker told CoinDesk that when she tried to cash out a bitcoin payment from a remote employer, she couldn't get a fair fiat price from dealers in Gaza because crypto prices were soaring at the time.

As such, Saifdean Ammous, the Palestinian-born author of "The Bitcoin Standard," is skeptical about any claims that the cryptocurrency currently offers a solution to his homeland's economic straits.

"If the people who want to do the transaction don't both have balances in bitcoin then you're just adding extra layers of conversion from their home currency to bitcoin and back to the home currency," said Ammous, who is a professor of economics at the Lebanese American University. "That's never going to be a sustainable solution."

Another non-starter, in his view, is the Palestinian Monetary Authority's publicly touted plans to create a national cryptocurrency. Ammous said it "completely misses the point to think of bitcoin as a payment solution that can be added onto existing monetary systems."

He added:

 

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American National Standards Institute to Address Blockchain at Upcoming Forum.

The American National Standards Institute (ANSI) will discuss blockchain and artificial intelligence(AI) issues at its next Legal Issues and Joint Member Forum, according to an announcement published September 17.

The ANSI is a U.S.-based private non-profit establishment that is comprised of over 125,000 companies, with international organizations, academic and governmental bodies, and corporations among its members. The institute does not develop standards, but administers and coordinates the U.S. voluntary standards and conformance assessment system.

At the upcoming forum entitled “Empowered by Innovation: Cutting-Edge Technologies Driving Real-World Solutions,” attendees will reportedly focus on legal and ethical concerns and explore concrete applications of blockchain technology and AI.

Per the announcement, experts from various industries like healthcare, transportation, food safety, and others will discuss possible blockchain and AI deployments, and how standards and conformity assessment can facilitate the further application and development of these technologies.

Previously, the ANSI set a number of international level standards, including the original standard implementation of the C language, which further became ANSI C, and the first computer programming language standard “American Standard Fortran,” known as “FORTRAN 66.”

One of the institute’s nine standard panels, the Nuclear Energy Standards Coordination Collaborative (NESCC), is aimed at identifying and catering to the need for standards in the nuclear industry.

Recently, the World Economic Forum (WEF) published a report dubbed “Building Block(chain)s for a Better Planet”, where it outlined more than 65 blockchain use cases for solving the “most pressing” environmental challenges. Per the report, the next important step in introducing blockchain applications for environmental protection is the establishment of a “responsible” and “global” blockchain ecosystem, as opposed to funding specific, separate projects. https://blog.cofredcoin.com/2018/09/18/american-nationa…t-upcoming-forum

 

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Where is Bitcoin Headed?

BTCUSD, D1

Ever since the December 2017 peak, Bitcoin has been following a downwards trend which appears to have, nonetheless, remained above the peak-to-trough (July 2017-December 2017) 23.6% Fibonacci level at 6008, albeit slowly converging towards it. Indicators are sending off signals of calmness, with the RSI remaining withing the 30-70 bound since January, with only minor instances of escaping. Volumes also do not provide any meaningful pattern, despite their increase since the start of September and neither does the ATR which appears to be relatively stable.

An Elliott Wave analysis does not provide much more information either: the peak in December was followed by a three-movement Wave, and a descending triangle formation. The end of the triangle could either suggest a bear market or another three-movement Wave which could lead to bull area. At this current juncture, we are still unable to tell.

Gold appears to have a statistically negative relationship with Bitcoin price, suggesting a potential substitution effect between the two instruments, at least for the sample ranging from July 2017 to present. Further to this, Gold appears to have the expected negative relationship with the USDIndex, suggesting that a Dollar appreciation lowers the value of Gold. Interestingly, Bitcoin does not appear to have any statistical relationship with the USDIndex, given that its value does not rely on macroeconomic developments.

Where does this leave us then? At this juncture, the USDIndex appears to be on a downwards trend, while the price of Gold appears to have stabilised. This stabilisation is also evident in the Bitcoin price, which has been fluctuating between the 0% and 23.6% Fib. levels since the beginning of September. The band is quite large, ranging from 6492 to 5880, with no closing price below the USD6,000 psychological barrier in the past year, other than a trough in June which was followed by an immediate reaction. Consequently, the big question is whether Bitcoin will break below this barrier, with 5- and 14-day moving averages pointing to that direction. Still, it could be the case that this trend may reverse if other news come to light.

https://atozmarkets.com/news/where-is-bitcoin-headed

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EOS price analysis 18 September: Token’s value follows overall market downtrend.

Most cryptocurrencies are trading in the red today.

 

Key takeaways

  • The price of EOS has been crushed in early trading.
  • Trading volumes have risen significantly, up by more than one quarter since yesterday.
  • One analyst suggests that the coin's price is at the end of a "W" pattern and may rise this week.

As with most cryptocurrencies today, EOS is losing value at a dramatic pace.

During the early hours of trade yesterday, the token was trading around US$5.36. The price of the coin had increased to US$5.46 by lunchtime and continued to trade sideways until the early hours of this morning.

EOS

At around 7:00am today, EOS was priced at US$5.33. The token's value proceeded to fall off a cliff, tumbling down to US$4.95 over a short, two-hour period. The coin has since regained a few cents but is currently trading sideways once again.

At the time of writing, EOS was valued at approximately US$4.99 (-6.91% over 24 hours).

24-hour trading volumes have jumped up by more than one quarter (27%) since yesterday, rising from US$477 million to a little over US$608 million.

Forex Crunch reports that the market has been delivering mixed messages as of late. The publication suggests that the primary support for EOS is at US$4.60 but buyers will need to fight to keep the price above US$5.00.

CoinSpeaker reports that EOS's price has been ranging between the support level of US$4.10 and the resistance level of US$6.80 on the daily charts for over three weeks. Analysts suggest that the price is forming the last part of a "W" pattern, increasing the likelihood of the token's price rising towards the US$6.80 resistance level this week.

Check out some of our other pages to learn all about different exchanges, understand exactly how to buy and sell cryptocurrencies, calculate your taxes, discover digital wallets to hold assets and explore a list of all the alternative coins on the market.

 

https://www.finder.com.au/eos-price-analysis-20180918

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Indian cryptocurrency exchanges re-introduce fiat via P2P loophole.

Bans are easier said than done.

India's crypto crackdown, announced in April, took the form of a banking ban for cryptocurrency exchanges. Exchanges were given three months, which have long since elapsed, to cancel their banking arrangements and to give back all their customers' INR (Indian rupees).

The crackdown, spearheaded by the Reserve Bank of India, kicked up some legal challenges from exchanges that were set to culminate in a date at the Supreme Court. But the prescribed decision date slid past without a resolution since the Supreme Court of India kept pushing back the hearing date.

Several Indian cryptocurrency exchanges seem to have been anticipating the possibility of the decision going either way, and almost as soon as the court date arrived, a few started unveiling alternative peer-to-peer INR banking systems to let their customers pay with fiat.

Where there's a will, there's a way

At least three cryptocurrency exchanges in India have recently announced the return of INR deposits and withdrawal support, news.Bitcoin.com reports, crackdown notwithstanding.

In all cases, it seems to use a peer-to-peer payment system, bypassing the banks which are responsible for policing the ban.

On 12 September, Koinex announced the return of INR deposits and withdrawals, saying:

"We are happy to announce the revival of INR in the crypto universe through a new peer-to-peer deposit and withdrawal mechanism for INR transactions…Just like the old times, users will be able to deposit and withdraw funds directly from their INR wallets."

Coindelta made the same announcement weeks before, saying the same thing on 31 August.

"We have resumed back the INR deposits and withdrawals on Coindelta. Not only this, your old favourite INR markets are back where you can trade with your INR," it declared. A third exchange, Giottus, reportedly did the same.

juicy crypto words

The growth of peer-to-peer trading is a natural response to severed banking connections, as seen in many countries around the world. In India, peer-to-peer exchanges – where individuals simply buy and sell directly from each other, no bank required – might end up doing quite well for themselves.

"We're seeing our trading volumes increasing every day," said P2P exchange WazirX.

P2P exchange Instashift went into more specifics.

"Since the last set of RBI related developments in the past couple of months, we have continued to see strong 20-25% growth in trading volumes month on month over the last 2 quarters of our operation," said CEO Rahul Chitale to news.Bitcoin.com.

It's easy to throw around the word ban, but it turns out it's much harder to enforce it.

https://www.finder.com.au/indian-cryptocurrency-exchanges-re-introduce-fiat-via-p2p-loophole

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