Venezuela has sold about $570 million worth of gold from its central bank reserves over the past two weeks. This was done in an attempt to circumvent U.S. Treasury sanctions designed to freeze assets of the Nicolas Maduro’s administration.

The central bank sold about 14 tons of gold recently, driving its reserves down to a 29-year low of only $7.9 billion. This brings the total to 23 tons of gold that has been sold since the beginning of April.

The Venezuelan government is trying to fight its economic isolation meant to cut-off Maduro’s possibility to finance his military regime. In April, the U.S. Treasury’s Office of Foreign Assets Control has designated the Venezuelan central bank as a sanctioned entity.



The Failed Petro Dollar
In 2018, the financial crisis was greatly undermining the Venezuelan Bolivar, Maduro’s administration had come up with a digital currency backed by the country’s reserves of oil. The Petro Dollar was supposed to help Venezuela de-couple its oil trading from the US dollar and help to stabilize the internal economy.

There is a list of countries, including China, Turkey, Iran, and Russia, which are attempting to move away from the U.S. dollar as the dominant currency for international trade. Venezuela’s Petro Dollar, however, has yet to gain any traction.

The centralized nature of the digital currency and the relatively low influence of Venezuela on the world economy could be the main reasons behind this. Moreover, the acute economic crisis the country has been entangled in for an extended period of time makes it an unreliable trading partner for other nation-states.



Can Bitcoin Improve the Current System?
As the country has been extensively shut out from the global financial system, Maduro has been selling the country’s reserves of gold to maintain his authoritarian regime. According to reports, the United Arab Emirates and Turkey are the main buyers of its precious metals.

Gold makes up most of Venezuela’s reserves, including $1.2 billion worth of the commodity that is stored with the Bank of England, which has recently rebuffed Maduro’s withdrawal attempt.

With the failing of the Petro Dollar as a digital currency issued by a nation-state, and gold having its own physical constraints, there may be some leeway for a decentralized cryptocurrency like Bitcoin (BTC) to become a store of value or medium of exchange for international trade.

source: https://beincrypto.com/bitcoin-bulls-highest-consumer-sentiment/

It took bitcoin an 85 percent crash followed by a 135 percent recovery to convince a prominent financial expert about its underlying potential.

Andrew G Haldane, the chief economist of the Bank of England, said bitcoin is on its way to replace cash, according to an eyewitness’s account. The 51-year academic made the statement when he was interacting with an audience of students. One of them asked Haldane about his thoughts on the future of cryptocurrencies. Haldane replied that he believed bitcoin, in particular, would become as relevant as cash in the next 20-30 years.

“Mr. Haldane said it [bitcoin] could replace cash, he even joked about us likely having Bitcoin in our wallets,” the witness shared on Reddit. “He said he didn’t think it’d replace cash tomorrow, but he was quite open to the idea 20 or 30 years down the line. He was also quite familiar with cryptocurrencies and joked that there were now thousands of them.”

The Bitcoin Price Recovery
Haldane’s statement appeared in contrast with Haldane’s earlier take on bitcoin. The economist in March 2018 had issued a warning to investors about the dangers of investing in cryptocurrencies. At the same time, he had stated that bitcoin was not a threat to the existing banking system, arguing that the cryptocurrency was not scalable and did not even make 1 percent of the global wealth.



Haldane’s anti-bitcoin statement also came at the time of mass crypto panic. The market was correcting violently to the downside after establishing an overbought peak at $813.87 billion. The bitcoin price, too, dropped by more than 70 percent between January and March 2018 trading session to settle a Q1/2018 low towards $5,873. The rate eventually went as low as $3,100 on December 15, 2018. Nevertheless, it recovered by 135 percent as of May 18, 2019, 1220 UTC.

The 2018’s crash brought the cryptocurrency market on the verge of extinction. Firms fired employees and closed their shutters down permanently, scammers disappeared with massive investments, speculators and investors moved away to focus on the mainstream asset classes, and analysts turned mum on failed bitcoin price predictions. Only true believers continued building and improving the Bitcoin protocol, and attracting mainstream investors. The efforts renewed buying sentiment in the bitcoin market. The result was an astounding price recovery.

more complete: https://www.newsbtc.com/2019/05/18/bank-of-englands-chief-economist-thinks-bitcoin-could-replace-cash/

The Bitcoin price has started 2019 off in fine form. Since reaching the $3,200 price point last December, which some have been calling this cycle’s ultimate bottom, the value of BTC has surged around 150% in just six months. With the price of most other crypto assets also increasing in recent weeks relative to the U.S. dollar, many analysts have declared that the current price action looks like the early stages of a new bull market.

There are increasing signals that they might be correct too. Terms such as “Bitcoin”, “Coinbase”, and “Blockchain” have been trending across various online search platforms and technical analysis is pointing towards the theory that there is upside to come.

Have the Bitcoin Bears Finally Been Vanquished?
There is a growing body of evidence to suggest that the Bitcoin price could finally be ready to make a prolonged move to the upside once again. The price has been generally on an upward trend since it sank as low as $3,200 in December 2018.

Just recently, however, there has been a much more dramatic price increase than we have seen since the days of 2017. During April and the start of May, Bitcoin’s price more than doubled to a yearly high of $8,320 (according to CoinMarketCap). It has since dropped back to just below $8,000 as of the time of writing.

The rising prices have been accompanied by other signs that new money might be ready to get back into the Bitcoin and crypto asset markets. One indicator of such investor confidence is the fact that wallet software is trending hard in the Apple wallet store.

Both Coinbase and Blockchain’s software are now listed as trending in the popular application store. This was highlighted by Twitter user Cryptorae recently:
https://twitter.com/cryptorae/status/1128411896833462272

A related signifier that there is renewed interest in crypto relates to trending searches on the well-known search engine Google. According to data from the technology giant, the term “Bitcoin” is currently being searched for three times as often as it was just three weeks ago. It is still nowhere near as high as it was during the peak of the 2017 bull market but it is a clear sign that those less familiar with the technology are becoming interested either again or for the first time.

Crypto pundits have posited some theories as to why interest might be on the rise once again. RT’s Max Keiser believes recent financial policies initiated by the US have made the sound monetary policy offered by Bitcoin highly attractive once again. He also states that during this bull market, institutions are likely to fear missing out just as much as retail did in 2017. This could lead to the $100,000+ Bitcoin he has been calling for as clients of Fidelity, Bakkt, and TD Ameritrade all scramble against retail investors to buy up the increasingly scarce crypto asset.

Technical analysis also appears to be pointing towards more upside too. One trader and CEO of coding firm NodeSource, Joe McCann, highlighted that Bitcoin’s 200-day moving average recently moved into an upward-facing position. Previous times this has happened — in 2012 and 2015 — huge run-ups in the value of cryptocurrencies have been observed. The trader says we could be looking at a “prolonged bull market”.

Judging from the technicals, along with clues into current levels interest in Bitcoin and crypto provided by trending searches at Google and Apple, the likes of Keiser, McCann, and others might be right in their bullishness. There might finally have been enough healing time for investors’ appetites for risk to have returned.

source: https://www.newsbtc.com/2019/05/16/bitcoin-bull-market-optimistic-signals-crypto-resurgence/

The past few days have been explosive for Bitcoin (BTC). However, what makes this rally especially remarkable is that Bitcoin's trading volume has been at its highest ever for two straight days now.

A price surge without volume is generally an indicator that a rally is unsustainable. Luckily, Bitcoin's current rise seems legitimate. BTC's trading volume has been at all-time-high for two days now which is a positive indicator that its sudden price move could have the ability to sustain.

Economist and crypto-trader Alex Kruger pointed out this astonishing fact recently in a tweet of his. We may be looking at a further parabolic move for Bitcoin if this volume sustains itself or even grows.

Bitcoin. Largest volume ever. Two days in a row. pic.twitter.com/qVuzCsLBaa

— Alex Krüger (@krugermacro) May 13, 2019

However, you may be skeptical. After all, earlier this year we had reports that 95 percent of all cryptocurrency trading volume is fake. That's a staggeringly high amount. Even with this in mind, the current trading volume is still record-shattering.

For example, the trading volume on CME's BTC futures trading is also at all-time-high levels. Keep in mind, there is absolutely zero fake volume at CME.

CME Bitcoin volumes. Record highs as well. There is *zero* fake volume at the CME. pic.twitter.com/dDKW6PZ0N9

— Alex Krüger (@krugermacro) May 13, 2019

The high volume should indicate that this bullish move is still picking up steam. If it was a fakeout, the trading volume would be anemic, but instead, we're seeing the opposite.

Arguably, the move was to be expected (but perhaps not this suddenly). Bitcoin's fundamentals are today stronger than ever. Transactions are currently close to their all-time-high as well. The network is more secure than it has ever been, and there are currently over 35M active BTC wallets.

The rally caught many off-guard, but it's clear that we are experiencing a snowball effect which will only continue to grow.

source: https://beincrypto.com/bitcoin-records-highest-trading-volume-two-days-row/

Bitfinex has been shrouded in controversy but it seems like the exchange might get out of going bankrupt in the shadiest way possible. The exchange has finished their new token offering, allegedly raising some $1B of USDT during the sale. Some commentators are raising questions, however.

After the New York Attorney General pressed charges against Bitfinex last month, the exchange has been struggling to justify its business model. If found guilty, it will be forced to pay $850M in damages due to fraud.

Shortly after the lawsuit, however, Bitfinex announced a token sale for its LEO tokens. Intended to be the 'utility tokens at the heart of the iFinex ecosystem,' the private token sale allegedly raised $1B in USDT.

Paolo Ardoino, the Senior Market Analyst at Bitfinex, tweeted that the exchange raised $1B in USDT in 10 days. Apparently, multiple private companies made investments of over $100M each.

@bitfinex is able to raise 1b USDt in 10 days, in a private sale. Private companies, giants in our industry and outside, made investments for > 100m each. A legion of inside and outside users made investments for > 1m each.

— Paolo Ardoino (@paoloardoino) May 13, 2019

complete at:https://beincrypto.com/bitfinex-claims-1b-usdt-private-sale-usdt-transaction-volume-remains-unchanged/

Do you believe Bitfinex actually raised $1B for its token sale?

The world of Security Tokens should expect something new. Polymath is working with IOHK’s Founder to create a platform called Polymesh. As it is, Polymath has already contributed to the launch of over 100 security tokens, the company will now work in collaboration with Charles Hoskinson on the new project.

Trevor Koverko, Polymath’s co-founder made the announcement at Consensus 2019 on Monday. The new platform Polymesh will be a platform for companies to create regulation-compliant security tokens. The platform will help develops create security tokens that are regulatory compliant as well as create a basis for adoption.

Hoskinson, who is also a co-founder of Ethereum is well known for his other crypto projects Cardano and IOHK. Hoskinson who looks forward to this project comments in a blog post saying:

“there are quadrillions of dollars of financial securities, and building a blockchain to secure them is an incredibly exciting task.”

While Hoskinson, who will be contributing his expertise to the project feels that ethereum was not built to be regulatory compliant, he feels that Polymesh is built to be compliant with local regulatory requirements. Polymesh is built:

“to become the underlying infrastructure for the world’s capital markets.”

Although Polymath was initially launched on Ethereum, the team feels that a layer one blockchain would be needed later on.

Polymesh is neither an open system nor a private permissioned network either. Instead, it is a combination of networks in such a way that multiple ledgers can be put in a setting where they can be utilised on either a closed or open system.

Koverko makes the announcement just two months after Polymath bagged a partnership with SeriesOne, a funding platform in its bid to make security tokens available to developers. Launched in 2018, Polymath Creates an enabling environment for projects to launch compliant security token offerings (STOs) legally.

While Polymath has created more than 120 security tokens, as it is, only five STOs have made it to the sale round since its mainnet launch in mid-September.

source: https://bitcoinexchangeguide.com/polymath-teams-up-with-cardanos-charles-hoskinson-to-create-polymesh-for-security-token-stos/

Recent months have seen increasing tightening by the Federal Reserve (Fed) via increases in interest rates. These have come in response to a robust US economy, a high-flying stock market, and a strong US dollar.

The current economic miracle is closely related to the massive rate decreases that the Fed used to pull up from the crisis of 2008. When the threat of a currency decline became apparent, the Fed rushed to prop up the dollar and with it, the US economy.

Pot and Kettle
In an ironic turn, however, the US Treasury has now threatened to turn up the heat on foreign governments for manipulating currencies. The scrutiny includes the twelve largest trading partners with the US, plus a host of other nations with trading surpluses.

While the vast majority of these nations have passed the so-called test, Vietnam stands to be the first nation accused. The country is apparently using external means to hold down the dong — the national currency of Vietnam. Obviously, the name has led to a host of snide comments regarding the country’s actions.



Passive Aggressive
The twist comes with a perusal of other US trading partners. Nearly every country on the list is using some means of currency manipulation.

For example, the Japanese government has been buying up massive amounts of ETFs in the country in order to keep the yen down, and Switzerland has been hoarding Apple stock to devalue the franc. China, too, recently buoyed its stock market by pumping money into oil and finance companies to stabilize values.

The difference, according to the Treasury, is the passive nature of these manipulations compared to Vietnam’s active suppression. Apparently, the active vs. passive nature creates a distinction that the Treasury is unwilling to countenance.

Decentralized Answer
Though the news of US scrutiny is not surprising, the relative hypocrisy could be. With nearly every national bank in the world manipulating its currency through some means, Vietnam’s tiny economy is an odd choice to single out.

The entire issue draws attention to the need for greater levels of economic decentralization. While such market manipulations can, and have, produced some level of stability in various places, they also produce economies that are wholly political.

On the contrary, Bitcoin (BTC) and other decentralized cryptocurrencies provide payment methodologies that free the consumer from the constraints of centralized government. By connecting peer-to-peer in a ‘trustless’ environment, Bitcoin allows markets to move independently, without such manipulations.

source: https://beincrypto.com/us-treasury-ironically-accusing-vietnam-currency-manipulation/

Do you think Bitcoin is the currency of the future because it promotes financial independence, or is currency manipulation part and parcel with a stable economy?

India’s Coinome Bitcoin Exchange to Cease Services Due to Government’s Restrictive Measures



The Indian cryptocurrency exchange Coinome will be shutting its operations down as soon as on May 15. This comes after the Indian Supreme Court decided to postpone the “Crypto Vs. RBI! Case to July 2019.
There were several crypto enthusiasts disappointed by this decision. This is not the first crypto exchange in the country to shut its operations down.

Coinome Stops Operating In India
The cryptocurrency market is not having a good time in India. The government has taken several measures that have harmed the crypto ecosystem in the country and will continue to do so in the near future.

This time, Coinome, one of the most popular exchanges in the country, informed the community that they will be shutting their operations down on May 15.

On the matter, the exchange explained that they are going to suspend all crypto markets and that pending and open orders will be cancelled on May 15. Customers will also have to withdraw their assets from the platform as soon as possible.

In the past, Coindelta, another cryptocurrency exchange in the country, had to stop offering services on March 30. According to a blog post released by the company, this is due to the lack of regulations in the Indian cryptocurrency market.

In September 2018, Zebpay, India’s largest crypto platform, had to shut down after RBI’s Bitcoin ban. The Reserve Bank of India has taken several measures in order to control the cryptocurrency market and avoid companies to expand in the country. At the same time, several financial institutions decided not to offer services to individuals and crypto firms operating in the space.

source: https://bitcoinexchangeguide.com/indias-coinome-bitcoin-exchange-to-cease-services-due-to-governments-restrictive-measures/