Bitcoin Has A Surprising Chief Cheerleader

Bitcoin, which seems to be as interesting to the Silicon Valley tech crowd as it does to the financial services sector lately, has found its biggest cheerleader in the form of Twitter chief executive Jack Dorsey.

Bitcoin and the wider cryptocurrency market, trapped in a painful bear trap that has wiped some $400 billion worth of value from the world's cryptocurrencies over the last year, has struggled to justify its price as adoption stalls, bitcoin and crypto startups fight to keep the lights on, and closely-watched institutional investment is delayed.

Now, Dorsey, who as well as leading micro-blogging platform Twitter runs the U.S. payments processor Square and has some experience of working with bitcoin through its Cash App, has recently revealed he's buying a whopping $10,000 worth of bitcoin per week and now has bought a bitcoin and cryptocurrency hardware wallet called a Trezor to store his swelling bitcoin holdings.



Dorsey's support for cryptocurrencies, and bitcoin especially, has been widely known for some time. But now it seems Dorsey is putting his money where his mouth is, despite fears bitcoin could be supplanted by ambitious tech companies.

"Imagine being born this year, growing up only knowing that the potential for a global currency exists–that is exciting," Dorsey told the Tales from the Crypt podcast this week, explaining how he became fascinated by bitcoin and crypto two years ago.

Dorsey said he had maxed out the $10,000 spending limits on the Cash App in recent weeks.

"What that person does with that realization [that the potential for a global currency exists] is amazing... It feels like that just accelerates things even faster. So I think there's a massive acceleration that's going to happen within the next 10 years," Dorsey added. "I don't wait around for that to happen to me or to us as a company, I want to help make it happen."

Dorsey has previously said he thinks bitcoin is "likely" to become the internet's first native currency.

"To me it all goes back to the internet. What does the internet want to be? It wants a currency, it's always wanted a currency, it just hasn't had the technology until 10 years ago," Dorsey told Tales from the Crypt host Marty Bent.

Dorsey's support for bitcoin will come as a surprise to some who have recently accused the Twitter boss of attempting to censor certain political views on the platform he cofounded. While Dorsey has always denied that accusation, Twitter is struggling to balance its status as the de facto public forum with its desire to protect people from controversial opinions and harassment.

Dorsey will find bitcoin equally, if not more, difficult to control.

These concerns have led social media giant Facebook to begin development of its own cryptocurrency, rather than try to adopt and integrate bitcoin or a similar public digital token. As has U.S. bank J.P. Morgan.

Dorsey is though not alone in the tech world in his expectation that bitcoin and crypto is going to continue to grow and become more important over time, adding his voice to other tech industry gurus.



The likes of Tesla's Elon Musk and Apple cofounder Steve Wozniak have heaped praise on bitcoin and its underlying technology, arguing the digital tokens are still in their early, formative days.

Musk, who last year got everyone fired up that he might be getting into bitcoin, this month called bitcoin’s structure "quite brilliant", adding "it bypasses currency controls … Paper money is going away. And crypto is a far better way to transfer values than a piece of paper, that’s for sure."

While it's heartening for the bitcoin and cryptocurrency industry to see Dorsey plowing money into bitcoin, what bitcoin needs to succeed as a medium of exchange is increased adoption—something that will only come with the development of better tools and improvement of the user experience.

Dorsey needs to put some of that money he's using to buy bitcoin into improving how people use it.

Bitcoin's epic 2017 bull run was largely put down to expectations institutional investment and big bank support for bitcoin would soon arrive. As 2018 dragged on and that investment failed to appear many investors and traders got cold feet, bailing out of their bitcoin and cryptocurrency positions.



This caused a bitter so-called crypto winter that has lead to many bitcoin, cryptocurrency and blockchain startups slashing jobs or shutting down already and a further turn for the worse could spell disaster for the burgeoning bitcoin sector.

https://www.forbes.com/sites/billybambrough/2019/03/08/bitcoin-has-a-surprising-chief-cheerleader/#4ceb408c4834

Ethereum Price Downtrend Could be Well Underway, Back Below $100 would be the Next Target

Ethereum has been the one that started the crypto green rally both the weekends and is also currently one of the most affected ones. Ether price went to $164, which was last registered around November 19. From the high of $164.74, it went down to $135.50, a drop of 17 percent.

The third-largest cryptocurrency has been trading at $139.74 with the 24-hours loss of 14.62 percent, at the time of writing. In the BTC market as well, it is down by 7 percent while managing the daily trading volume of $6 billion.


According to market analyst and trader Benjamin Blunts, Ethereum has completed the ABC by breaking above the wave 1. The chart shared by him also has a nebular arrow targeting $80 as the next level for Ethereum.

“ETH managed to break higher above prior Wave A, and although it fell short of the upper channel, the C wave i've been tracking consists of 5 waves so i'd be inclined to think that that the downtrend may well be back underway.”


Because of the severity of the dip that is 17 percent, Ethereum had also put in a “lower-low” for the first time on the 4-hours Ethereum price chart, crypto trader Eric Choe says, if greens make another entry, a sell-off is expected at $145, “especially if it’s a low volume rise.”

Unlike, Blunts, crypto trader, Credible Crypto is bullish on Ethereum price and expecting $170 as the next target. However, he further shares a bearish view as well that would see Ethereum at $105.


Just like the prior move, Ethereum can take a hit of 30 percent but the trader says, it would “still be ok.” This week, Ethereum also has Constantinople upgrade coming, so it is yet to be seen if Ethereum will be seeing an upward move or another dump will be in play.

https://bitcoinexchangeguide.com/ethereum-price-downtrend-could-be-well-underway-back-below-100-would-be-the-next-target/

The world’s first Cryptocurrency ETF has been approved by the Switzerland authorities which will start trading on SIX, the 4th largest exchange in whole Europe which has a market capitalization of over $1.6 trillion.

ETF offered by Amun AG

Amun AG, a cryptocurrency startup is offering the fund that will allow the institutional investors to invest in the major cryptocurrencies such as bitcoin, ethereum, ripple, litecoin, and bitcoin cash.

Hany Rashwan, the CEO and Co-founder of the company said that the following ETP will provide an opportunity to the institutional investors that are restricted to investing in just securities and also give the same opportunity to retail investors that are unable to access cryptocurrency exchanges to due regulatory pressure. The CEO also said that before choosing Switzerland, the company had explored 23 other destinations around the world but found Swiss the most suitable.

The ETF will allow investors in buying the market and investing in crypto market as a whole. When investors will be investing in a fund, an amount equal to their purchase value will be held on their behalf by the custodian.

https://coinnounce.com/worlds-first-bitcoin-etf-approved/

South Korean Lawyers’ Association Lobbies Government to Establish Legal Crypto Framework

South Korea’s lawyers are lobbying the country’s government to step up its action and expedite a legal framework for cryptocurrencies, Reuters UK reports Nov. 8.

The Korean Bar Association, membership of which is required of all the country’s lawyers, has appealed to the government to take more swift action in the realm of cryptocurrencies, with Bar Association President Kim Hyun telling a press conference at the parliament that:

“We urge the government to break away from negative perceptions and hesitation, and draw up bills to help develop the blockchain industry and prevent side effects involving cryptocurrencies.”

The South Korean crypto context has historically been one of the world’s most dynamic, although a more stringent regulatory stance from the government as of late 2017 has had a palpable impact. However, this fall, reports that the country’s so-called “Kimchi Premium” — when demand drives crypto prices in Korea well above the global average — is re-emerging suggests that the interest in the crypto sector remains unabated.

The Korean Bar Association’s intervention comes at time when local investors are keenly awaiting the possible announcement of a government decision in November over whether or not to repeal the country’s China-style ban on Initial Coin Offerings (ICOs), which has been in force since September 2017.

The country’s government is taking a winding path to finally cement its stance toward the crypto and blockchain sector; as Reuters today notes, the government has emphasized it intends to finalize blockchain regulation only after a rigorous study.

There have been mixed signals throughout fall from domestic regulators, with Korea’s Financial Services Commission (FSC) recently issuing a warning that crypto funds may be in violation of the country’s Capital Markets Act, and the FSC chair, Choi Jong-Ku, reaffirming his negative stance towards ICOs in particular.

Nonetheless, Choi Jong-Ku has recently declared that that crypto exchanges should face no issues with banking provisions, as long as they have adequate anti-money-laundering (AML) safeguards in place and apply robust know-your-customer (KYC) checks.

https://cointelegraph.com/news/south-korean-lawyers-association-lobbies-government-to-establish-legal-crypto-framework

On September 24th, Lamassu announced the introduction of their new line of cryptocurrency ATMs to the public. Lamassu calls its new line of ATMs, “Sintra.” The ATMs herald a new line of ATMs as another crucial step in crypto’s march towards widespread consumer use and accessibility.

Growing industry

According to CoinATMrader.com, there are currently roughly 3,750 crypto ATMs installed worldwide. Lamassu has been producing cryptocurrency ATMs since 2013 when they produced their first, which was called the Bitcoin Machine.

While that number sounds impressive, and the number of the crypto ATMs installed continues to grow steadily, it is important to put that number in context. Information from Data.gov, for example, indicates that there are over 5,500 bank-owned ATMs in New York State alone. Crucially, this ATM count does not include independently managed ATMs at convenience stores and other retail locations.

Cost

Pricing for the new crypto ATM’s ranges from 5,200 EU for the cheapest Duoro II model, to 8,900 EU for the highest price Sintra Forte model. The mid-priced Sintra model costs 7,500 EU. The Duoro II model is the newest model of Lamassu’s original Crypto ATM, and features one-way fiat to crypto conversion, while both the Sintra and Sintra Forte feature two-way conversion.

The new models offer a bevy of features, designed to make buying and selling crypto through the machines as painless as possible. The machines feature a sleek, futuristic look, and are all crafted in Portugal. The body of the machines is crafted out of 2.5mm steel for extra durability.

Owners of these machines can configure their ATM’s to take almost any major currency, and support conversions from fiat to Bitcoin, Zcash, Ethereum, Bitcoin Cash, Litecoin, and Dash.

While Lamassu does not directly facilitate transactions on the ATM, it does offer a backend exchange trading engine that can steer conversions to liquidity providers. Lamassu’s engine is currently connected to BitPay, Bitstamp, Kraken, and Coinbase.

Fees and regulatory issues

ATM operators have control over the fee structure charged by their machines and can profit by either charging direct fees or adjusting the spread charged by their liquidity provider.

On Lamassu’s website, the estimates indicate that a machine needs roughly $800-$1,000 worth of daily transactions to break-even. Lamassu estimates that the average monthly turnover on their machines is roughly $20,000 and rising.

The Sintra line of ATMs features numerous compliance features, but investors interested in purchasing and managing a machine need to do their due diligence regarding the legality of operating an ATM in their jurisdiction.

Prospective ATM operators in the United States must ensure they are following both federal and state laws. Bitcoin ATMs would currently fall under the criteria of “Exchangers,” according to the Financial Crimes Enforcement Network. In turn, they must register as “Money Service Businesses.” If you are interested in purchasing a machine in the United States, this primer is a handy starting point.

As interest in Crypto continues to grow among the retail investing community, ATMs will likely be a key “on-ramp” for investors into the crypto industry.

https://bitcoinist.com/lamassu-new-line-crypto-bitcoin-atms/

The U.S. Securities and Exchange Commission (SEC) has delayed making a decision on whether to approve five bitcoin-related exchange-traded funds (ETFs) until September, public documents reveal on Tuesday.

In the latest edition of the Federal Register, the SEC explains that it is postponing any decision over the possible approval of ETF proposals filed by Direxion Investments in January – one of which will match bitcoin's price and four of which are based on the cryptocurrency's price movements.

The SEC states:

"The Commission finds it appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider this proposed rule change. Accordingly, the Commission, ... designates September 21, 2018, as the date by which the Commission shall either approve or disapprove the proposed rule change."

The SEC added that it only received two comments on the proposed ETFs.

While the crypto community largely seems excited at the prospect of a bitcoin ETF, Atlantis Asset Management chief investment strategist Michael Cohn said any approval would be "insane," CNBC reports today.

"Then they're putting a rubber stamp on it as an asset, and I don't think governments want to go there yet. It just seems as though it's not something I'd want to put my clients into in any way, shape or form. You can only be embarrassed," he added.

Notably, none of the ETF proposals being postponed are from VanEck and SolidX, which are currently under discussion by the wider crypto community. More than 100 comments have been submitted for that proposal, and a decision may occur as soon as next month.

https://www.coindesk.com/sec-delays-decision-on-direxions-bitcoin-etfs-until-september/

The ultimate success of bitcoin, hyperbitcoinization, contains the possibility of a purposeful and bright future. Inevitable mass adoption will lead to a globally dominant currency. Pushing all other competitors out means, ultimately, mooning prices. At least one theorist believes the above will happen, and further postulates one hundred million dollars per bitcoin could be in the works as early as 2030.

Hyperbitcoinization Talk Resurfaces

Daniel Krawisz doesn’t immediately grab first-time observers as a leading cryptocurrency philosopher. Mouse-colored, little Dutch boy hair, which he’ll at times flip in unintended punctuation during talks, and his generally casual demeanor could cause audience members to wonder aloud why a random stranger has taken the dais.

Mr. Krawisz doesn’t ever cite his academic credentials. He is absolutely devoid of appeals to authority, credentialism, and officialdom. He can often be heard challenging listeners to not believe him. Crypto fame of a kind came his way around Spring of 2014. As co-founder of the Satoshi Nakamoto Institute, his articles took on new meaning during bitcoin’s run up and up and up through 2017.

Hyperbitcoinization is his most enduring effort from that time, and he can be credited with the concept and neologism. “Bitcoin-induced currency demonetization, or hyperbitcoinization” is what would occur should “any hapless currency” stand “in bitcoin’s path of total world domination. If this happens, the currency will rapidly lose value as bitcoin supplants it,” he stressed. Years later, the topic has returned in some circles.

The piece is less braggadocio and more nuanced than proponents are prone to mention, but it does speak to a time in bitcoin core (BTC) history when community optimism reigned. The current store of value talk and digital gold hodl maximalism is somewhat revisionist, which more honest BTC enthusiasts concede. The discussion then was mostly about merchant adoption, medium of exchange qualities, and prospects of freeing emerging economies from legacy remittance arrangements. These attributes are no longer highlighted by BTCers.

$100,000,000

Recently, Hyperbitcoinization: Winner Takes All (or how Bitcoin gets to $100,000,000) was posted by Coin Monks. Pseudo-anonymous author Obiwankenobit lays out Mr. Krawisz’s case anew. In a longer, mathy, graphic-filled essay, he builds the case for a hyper-hyper-hyperbitcoinization even the most optimistic BTC true believers might have trouble getting behind. Everett Roger, Laszlo Hanyecz, Friedrich Hayek, Austrian economics, S-curves, Andreas Antonopoulos, Daniel Krawisz, Satoshi Nakamoto combine to build the basic argument.

As bitcoin is accepted more around the world (and “acceptance” isn’t well defined), “the cost of rejecting bitcoin will exceed the cost of adopting it. Bitcoin will begin to assume money’s traditional roles and gain institutional and government support. It will become all money and form the backbone of a new global economy,” Obiwankenobit explains, describing the “tipping point.” 

With a price hovering in the mid $6,000s at press time, the path to that eye-popping estimate seems impossible. However, he believes the current price “is 0.01% of this future value. Bitcoin is currently experiencing ‘microbubbles’ and future appreciation will continue nearly unabated until it plateaus at a stable price.”

Furthermore, BTC “affords us the opportunity to radically change our relationship with money. You will own your money. Central bank machinations will come to an end. 20 years ago we could not imagine how the internet would change our lives. In the next 20 years bitcoin will reframe our roles as citizens in a borderless, global economy.”

BCH-like 

He doesn’t posit economic catastrophe to get there, which is refreshing. “Bitcoin can become the world’s first universal currency in part through voluntary social drivers and its inherent sound monetary policy,” he claims. Fanciful, novel ideas abound throughout his essay, and his “crystallization process” analogy is particularly innovative and fun.

He hints at the contentious debate between BTC and bitcoin cash (BCH) by assuming BTC will act in ways similar to BCH. “Like any good form of money bitcoin is divisible. In fact, by up to 100,000,000 satoshis. The satoshi will act as our base accounting unit. You will buy goods and services and be paid in satoshis.”

In the future, with something like 20% of bitcoin missing or lost, this places the “total accessible” at “16.8 million” coins when BTC inflation ends. “The list of global value of all money totals about $1.8Q,” he estimates. On his way to making this BCH-like parallel, he does some calculations: “Global value of all money = $1.8Q; divide by 16.8 million bitcoins = $107,142,857; round result = $100,000,000/bitcoin; 100,000,000 satoshis per bitcoin; $100,000,000/bitcoin ÷ 100,000,000 satoshis per bitcoin = $1 per satoshi,” allowing for micro-transactions. That sounds very familiar, and BCHers don’t have to wait.

https://news.bitcoin.com/hyperbitcoinization-bitcoin-100mil-per-coin-2030/

The EU Parliament has published a new report, “Virtual currencies and central banks monetary policy: challenges ahead”, which dismisses claims from the likes of economist Robert Shiller, who has declared the death of Bitcoin on numerous occasions.

SAFE, TRANSPARENT, AND FAST

The report went so far as to say that “their global transaction networks are relatively safe, transparent, and fast” and that “this gives them good prospects for further development.” However, the report disagrees with those that see Bitcoin as replacing global currencies, instead saying that they “remain unlikely to challenge the dominant position of sovereign currencies and central banks, especially those in major currency areas.”

ILLEGAL TRANSACTIONS?

In particular, the report has seemingly hit out at market bears and critics that claim crypto is only used for black market and illegal trades. This is a sentiment that is used by critics of the currency to state why it holds no real value. In fact, one Australian group of academics used detection controlled estimation and network clustering and found that 44% of all Bitcoin transactions involve illegal activity.

Conversely, there is a lot of research that claims this notion to be nonsense. The Foundation for the Defense of Democracies conducted their own research and reported that less than 1% of Bitcoin is used for money laundering, which is representative of the global economy as a whole.

CHANGING OPINION

Of course, the anonymity of Bitcoin and cryptocurrency is such that it is impossible to accurately determine how much of it is used for illegal activities, but a lot of governments, regulatory bodies, and analysts are making u-turns on their opinion.

China, for example, was the first government to issue a blanket ban on cryptocurrencies but has recently started publishing its own ranking of the top cryptocurrencies. South Korea has stated its intent to implement a completely cashless society, utilizing cryptocurrencies as well as more traditional currency transfer systems. At the very least, this report by an official EU body shows that regulators are willing to consider the legitimacy and the case-use benefits of cryptocurrencies. They will have to, considering millennials will lead the charge in terms of cryptocurrency adoption.

https://cryptoiscoming.com/eu-parliament-gives-cryptocurrency-their-support/