Tag Archives: bitcoin

Chinese Traders Continue Investments in Bitcoin With a Huge Premium

Despite the Chinese government’s crackdown on initial coin offerings (ICOs) and cryptocurrency exchanges, local traders have invested in Bitcoin with a huge premium during its recent rally.

As Cryptocoinsnews previously reported, the Bitcoin price achieved a new all-time high at $5,920 last week, moving closer to the $6,000 region. Analysts including billionaire hedge fund investor Mike Novogratz predicted the Bitcoin price to surge even further in the mid-term, as an increasing number of institutional investors engage in cryptocurrency and Bitcoin trading.

When the price of Bitcoin was rapidly approaching the $6,000 mark and broke through $5,800, local investors and traders in China rushed to invest in Bitcoin, regardless of the imposition of a nationwide ban on cryptocurrency exchanges that requires leading Bitcoin exchanges such as OKCoin and Huobi to halt their services by the end of October.

On October 13, Bitcoin trades in the Chinese market facilitated by OKCoin and Huobi were processed at over $6,013, as the demand for Bitcoin from local investors began to surge. While leading Bitcoin markets such as Japan, the US, and South Korea processed trades at around $5,800, Chinese investors were purchasing Bitcoin with premiums in the range of $200 to $300.

Reasons For the High Premium

Until late 2016, the South Korean Bitcoin market demonstrated a massive premium in contrast to major markets like the US, because of its limited liquidity. At the time, the South Korean cryptocurrency exchange market was dominated by Korbit and Coinone, and Bithumb, currently the world’s largest cryptocurrency exchange by trading volume, were yet to evolve into a major platform in the South Korean market.

Consequently, South Korean investors traded Bitcoin at a rate that was around 5 to 10 percent higher than the global average price.

In June, South Korean fintech company BitHolla CEO Alireza Beikverdi explained:

“Unlike China, which has massive mining operations taking advantage of an accidental government subsidy in the form of overinvestment in underused infrastructure and cheap energy, there is no mining activity to speak of. Therefore, Bitcoin and Ethereum must be imported from abroad, driving up the domestic premium in Korea.”

More to that, the strict capital controls and financial regulations imposed by the South Korean government which heavily restricts the outflow of capital from within the country to overseas markets contributed as a factor to the demonstrate premiums in the South Korean Bitcoin market.

Since then, the South Korean cryptocurrency exchange market has grown significantly. The South Korean Bitcoin market is the third largest in the world by trading volume, while its Ethereum market is the largest market internationally, with over 32 percent in market share.

Source:

https://www.cryptocoinsnews.com/why-traders-in-china-have-invested-in-bitcoin-with-a-huge-premium/

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One reason why bitcoin may be surging: You can now buy it instantly on one major US exchange

As bitcoin surged to all-time highs Friday, a key announcement from a major U.S.-based digital currency exchange could be a driving factor.

Coinbase said Thursday it is rolling out instant bitcoin, ethereum and litecoin purchases of up to $25,000 from U.S. bank accounts. Previously, customers using their bank accounts to buy the digital currencies had to wait several days to receive them.

“One of the biggest pieces of feedback we get on Coinbase is ‘why does it take so long!'” Coinbase Co-Founder and CEO Brian Armstrong said in a Thursday tweet. “Rolling out instant buys.”

Before this rollout, bitcoin’s price could fluctuate a lot during that waiting time, making it a drawback for the regular investor.

“The Coinbase instant buy program is yet another step toward mainstream acceptance of Bitcoin,” said Brian Kelly, founder of BKCM LLC, a hedge fund managing digital assets, and a CNBC contributor. “This will make Bitcoin easier to use as a transactional currency and could have the effect of increasing liquidity. The added transaction volume should also support the price. “

The company has nearly 11 million customers, according to its website.

TechCrunch reported Thursday that the instant purchase feature rolled out Thursday to about 15,000 Coinbase users and will be available for “all eligible” U.S.-based customers by the end of the year.

Bitcoin has leaped 21 percent within the last 48 hours to a record high of $5,856.10, according to CoinDesk. With those gains, the digital currency has multiplied six times in value this year and has a market value of more than $93 billion. That’s larger than that of Goldman Sachs.

Source:

https://www.cnbc.com/2017/10/13/one-reason-why-bitcoin-may-be-surging-new-instant-buying.html

Mastering Bitcoin: A Beginner’s Guide To Start Making Money With Bitcoin # 1 in mining on Amazon for Audio

Bitcoin is a cryptocurrency and a digital payment system invented by an unknown programmer, or a group of programmers, under the name Satoshi Nakamoto. It was released as open-source software in 2009.

The system is peer-to-peer, and transactions take place between users directly, without an intermediary. These transactions are verified by network nodes and recorded in a public distributed ledger called a blockchain. Since the system works without a central repository or single administrator, bitcoin is called the first decentralized digital currency.

Besides being created as a reward for mining, bitcoin can be exchanged for other currencies, products, and services in legal or black markets.

As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment. According to research produced by Cambridge University in 2017, there are 2.9 to 5.8 million unique users using a cryptocurrency wallet, most of them using bitcoin.

Bitcoin Price Reaching $10k by April 2018 ‘No Surprise’: Mike Novogratz

Investor turned crypto hedge fund mogul Mike Novogratz has predicted Bitcoin will balloon to $10,000 in just six months.

Speaking on CNBC Wednesday, Novogratz, who is publicly bullish on Bitcoin and is starting a dedicated $500 million hedge fund, said he could “see the herd coming.”

“I’m pretty confident to say it’s going higher,” he told host [] on the network’s Fast Money segment.

“…It would not surprise if in the next six to 10 months we’re over $10,000.”

https://player.cnbc.com/p/gZWlPC/cnbc_global?playertype=synd&byGuid=3000661842&size=710_403

Hedge fund legend Mike Novogratz betting it all on bitcoin from CNBC.

Asked whether he thought Bitcoin was therefore a bubble, Novogratz said the “Blockchain revolution,” like railways and the Internet, would “change the way we live.”

“Yes, it’s a bubble, it’s going to be one of the great manias of all time,” he continued.

“Bitcoin happens to be the bellwether of this entire decentralized revolution, so it’s the easiest way people get gain exposure to it… Things like Ethereum I think will be the public utility of this new space.”

Signs of stability

Bitcoin prices remained relatively stable around all-time highs Wednesday, despite news that Russia was preparing to block access to cryptocurrency exchanges for its citizens.

Showing increasing resilience to political maneuvering, Bitcoin has managed to shake off wider-reaching moves by China, which saw an exchange ban and a halt on ICO operations in the country.

Source:

https://cointelegraph.com/news/bitcoin-price-reaching-10k-by-april-2018-no-surprise-mike-novogratz

How to Check If Your PC Being Pirated to Mine Bitcoin

First it was The Pirate Bay, then Showtime was caught secretly using page visitor’s processing power to mine cryptocurrency as a form of alternative revenue.

It has led to some indignation from users of such sites, as well as worry and fear about the vulnerability of users who are visiting sites and staying on them for a long time. However, there are a few things that can be done to protect yourself.

An issue with secrecy

It must be stated that the reasoning put forward, along with an apology, from The Pirate Bay was that they saw it as an alternative to banner advertising, which is tricky for what is essentially an illegal website.

Many were happy with the idea of their processor being used, but not happy with the secret nature of it all.

What can be done?

If however you are not happy with the idea of being mined, secretly or not, there are a few ways to check if you are indeed a victim of processor pirates.

Check your CPU usage

Simply by opening your resource manager on your computer, and looking at the CPU usage, it can quickly become clear if there is indeed something sucking your processing power.

A noticeable spike when visiting a certain site that should not be taxing your CPU is an obvious sign of Javascript running that is using your processing power.

Additionally, if you have everything closed but CPU usage is still super high, then you may have a crypto mining malware problem.

Ad Blockers can help

Mining hijacking can occur simply by visiting certain sites, but there have been instances where infected adverts on sites have also led to this CPU pirating. Researchers at security software vendor ESET have explained this process.

Thus, running an ad blocker can put a stop to this. Additionally, ad blocking software can also filter out known types of in-browser miners. One such mining script is called Coinhive, which isn’t necessarily malware.

Coinhive is trying to approach this as legitimately as possible and condemned Showtime for using their Javascript without alerting users that they would be utilized for mining.

There is other malware

Besides from legitimate pirate mining software, there are more sophisticated forms of malwarewhich actively penetrates the system. These are delivered through infected image files or by clicking on links leading to a malicious site.

If one of these hits you, you should open up Task Manager and identify the process that is eating up all those compute cycles and terminate it from your resource monitor.

Source:

https://cointelegraph.com/news/how-to-check-if-your-pc-being-pirated-to-mine-bitcoin

Japan Issues Licenses for 11 Bitcoin Exchanges

Japan’s Financial Services Agency (FSA) has issued operating licenses to 11 bitcoin exchanges, the regulator announced today.

This follows an amendment to the payment services law, which stated that all cryptocurrency exchanges should register with authorities by the end of September.

Passed in April, the new law established bitcoin as a legal payment method, and extrapolated security guidelines for cryptocurrency exchanges.

The licensing enforces certain operational requirements for the exchanges, including high standards for cybersecurity, the segregation of customer accounts and the verification of customer identities.

Seventeen applications are still in review, while 12 firms have closed their doors in light of the new regulations.

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Local cryptocurrency exchange Quoine – one of the 11 firms to receive a license – said in a press release that it will work alongside regulators “towards the healthy development of the cryptocurrency industry within Japan and on a global scale.”

An FSA executive said earlier this week that it intended to foster “sound market development” by working with the exchanges.

Japan is uniquely proactive in its cryptocurrency regulations. Lawmakers have previously stated that this was driven by the now-notorious collapse of local bitcoin exchange Mt Gox in 2014, which led to the loss of millions of dollars in customer funds.

The news comes at a time of regulatory shifts in the broader cryptocurrency landscape. Earlier this month, China issued a blanket ban on fundraising methods involving token sales, or initial coin offerings (ICOs), and local cryptocurrency exchanges have indicated they will cease domestic trading following the ban.

South Korea has also stated ICOs are illegal as of today, as well as tightening the rules for exchanges.

Source:

https://www.coindesk.com/japans-finance-regulator-issues-licenses-for-11-bitcoin-exchanges/

Mexico to Join Club of Countries with Bitcoin Regulation

Mexico, this month, will unveil proposed legislation aimed at regulating its fast-growing financial technology sector, including firms that use cryptocurrencies like Bitcoin.

The bill seems to be aimed at protecting customers, as well as spurring competition in this burgeoning industry. Mexico is also hoping, in this bill, to ensure financial stability and defend against money laundering and financing of extremists.

Massive potential growth in Latin America

Mexico will be joining a small list of countries, which include the UK and the US who have actively sought to regulate not only cryptocurrencies, but also fintech companies.

The hope for fintech companies is to try and crack a massive potential market as over half of Mexico’s 120 mln strong population are bank account-less.

“This legislation recognizes the need that a sector as dynamic as that of technological innovation needs a regulatory framework that allows authorities to mitigate risks and allow for growth in a competitive environment,” the bill draft says.

What’s in the Bill?

The Bill proposes to set out a clear set of rules pertaining to the running of fintech companies which will help reduce costs and drive competition in a sector that includes crowd-funders and payment firms.

Additionally, there will be a section aimed at regulating companies that operate with digital currencies, such as Bitcoin. There is not too much detail on this, but it does say a lot of it will fall to the central bank to referee such actions.

“The regulation is good news for all companies in this sector because … growth will be greater with clear rules,” said Luis Ruben Chavez, the founder of Mexican crowdfunding firm Yotepresto.

Massive Mexican growth

Mexico is a huge untapped market globally, and especially in Latin America where it leads the way.

In 2015, the number of fintech companies came in at about 50, while year to date in 2017 there are already 2401 known companies in the new industry.

Source:

https://cointelegraph.com/news/mexico-to-join-club-of-countries-with-bitcoin-regulation

Ethereum Could Challenge Credit Card Companies In “A Couple of Years”

Ethereum co-founder Vitalik Buterin is optimistic about the future of his blockchainplatform, sharing his predictions during a talk with AngelList founder Naval Ravikant at TechCrunch’s Disrupt SF 2017 event on September 18.

Despite the growing popularity of Ethereum and other technologies like it, a large majority of people still don’t know what blockchain is or what it does. However, once the technology does reach the mainstream, Buterin believes it will be able to take business away from major credit card companies. He sees this shift potentially taking place in the next “couple of years.”

Ethereum co-founder Vitalik Buterin believes the blockchain-based platform has the potential to rival financial institutions like Visa in scale. Before it can, however, it needs to increase the speed with which it can process transactions.

TAKING ON FINANCIAL INSTITUTIONS

Ethereum co-founder Vitalik Buterin is optimistic about the future of his blockchainplatform, sharing his predictions during a talk with AngelList founder Naval Ravikant at TechCrunch’s Disrupt SF 2017 event on September 18.

Despite the growing popularity of Ethereum and other technologies like it, a large majority of people still don’t know what blockchain is or what it does. However, once the technology does reach the mainstream, Buterin believes it will be able to take business away from major credit card companies. He sees this shift potentially taking place in the next “couple of years.”

Before Ethereum can compete with the likes of Visa and MasterCard, though, the platform will need to speed up. “Bitcoin is processing a bit less than 3 transactions per second,” Buterin explained to Ravikant. “Ethereum is doing five a second. Uber gives 12 rides a second. It will take a couple of years for the blockchain to replace Visa.”

According to Business Insider, the co-founder said he expects to see low-security financial prototypes revealed within the next year, which may signal the beginning of Ethereum’s ability to disrupt mainstream finance. That said, a few more years will be needed before their effectiveness can be proven.

FROM FINANCE TO CLOUD COMPUTING

Buterin’s thoughts on the capabilities of blockchain extend beyond finance and into the world of cloud computing. While he believes Ethereum has a solid chance at changing the financial world, Buterin is less optimistic about its effect on cloud services, such as Amazon Web Services (AWS).

Source:

https://futurism.com/ceo-ethereum-could-challenge-credit-card-companies-in-a-couple-of-years/