Bitcoin Price Surges 10% as G20 Will Not Crackdown on Cryptocurrencies
The G20’s announcement that it will pivot away from creating new regulations in favor of examining existing rules gave the cryptocurrency market a much needed seeing Bitcoin surge by $1000.
No New Regulations
The anticipation of what new regulations might come of the G20 meeting this week in Buenos Aires added to a rocky cryptocurrency market over the past week but the news as reported by Reuters is that there will be no new regulation recommendations handed down.
Some of the nervousness of cryptocurrency market watchers coming up to the G20 was due in part to the fact that Mark Carney, Governor of the Bank Of England and outspoken critic of Bitcoin heads the Financial Stability Board which coordinates financial regulation for the Group of 20 economies.
Carney has been very vocal about his doubts concerning the credibility of cryptocurrency in the past speaking as the head of the Bank of England.
Deciding that there was not enough of a consensus to create radical new regulation among the 20 countries that make up the G20 the FSB issued a letter to the central bankers and finance ministers who will convene in Buenos Aries on the 19 and 20 saying
“The FSB’s initial assessment is that crypto-assets do not pose risks to global financial stability at this time,”
Carneys singing off on this letter shows an increased willingness in his attitude towards accepting cryptocurrency as part of the worlds financial system. Noting that this would be his last year as both chairman of the FSB and Governor of the Bank of England he said his successor would be reviewing existing rules as opposed to pushing through new standards.
Scaling Down
President Donald Trump set a mood for scaling back regulatory powers when he ordered American regulators to relax post-banking crisis reforms in order to encourage lending in the economy.
This made world regulators speculate that America, already reticent to join global regulatory bodies would reject any new suggestions and possibly fragment markets.
In reaction, the FSB membership vowed to make a complete review of whether the watchdog is still “fit for Purpose” for evaluating and amending rules.
Having already scrapped a quarter of its working groups in an effort to make the FSB more efficient and dedicated Carney said “As its work to fix the fault lines that caused the financial crisis draws to a close, the FSB is increasingly pivoting away from design of new policy initiatives towards dynamic implementation and rigorous evaluation of the effects of the agreed G20 reforms,”
This seemingly good news for cryptocurrency regulation and the hangover effects of the latest Mt. Gox bulk sale wearing off gave the faltering Bitcoin price a nice boost, up $1000 recovering nearly 8% of its value in 24 hours.
Bitcoin WARNING — EU Commission says crypto is NOT currency ahead of imminent crackdown
BITCOIN and other cryptocurrencies do not have a "guaranteed value" and should come with a "clear and frequent" warning to investors in order to safeguard them from possible risks to their investments, EU financial services commissioner Valdis Dombrovskis said.
Bitcoin and other cryptocurrencies have attracted a growing number of investors since their value began skyrocketing shortly before Christmas 2017.
Mr Dombrovkis warned that speculation could pose risks to investors, suggesting the European Union stands ready to regulate cryptocurrencies in months to come.
He said: "Cryptocurrencies — which are not currencies in a traditional sense and whose value is not guaranteed — have become subject to considerable speculation: this exposes consumers and investors to substantial risk, including risks to lose their investment.
"This is why our conclusion is that warnings about those risks to consumers and investors are important and must be clear, frequent and across all jurisdictions."
Speaking to the press following a roundtable discussing the challenges and opportunities of crypto trading, Mr Dombrovkis said: "We do not exclude the possibility to move ahead by regulating crypto-currencies at the EU level if we see, for example, risks emerging but no clear international response emerging.”
But despite calls for caution from investors, the EU Commissioner suggested Brussels recognised the technological importance of the structure driving the trade of bitcoin and other cryptocurrencies — the blockchain.
He said: "We concluded that blockchain technology holds strong promise for financial markets and to remain competitive Europe must embrace this innovation."
Bitcoin’s underlying blockchain technology has been repeatedly championed as the foundation for a new kind of global finance. However after nearly a decade of hype, real working examples of its value have been few and far between.
Last month a massive trade deal between the US and China renewed hopes that the technology was finally peaking above the parapet of the cryptocurrency community and gaining mainstream traction.
The deal used a blockchain-based digital platform to complete terms between the US and China for the sale of 60,000 tonnes of US soya beans.
The blockchain is broadly understood as an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.
Author : AURORA BOSOTTI UPDATED: 22:16, Mon, Feb 26, 2018
Tesla Billionaire Elon Musk Reveals How Much Bitcoin He Owns
Billionaire Elon Musk is a huge fan of cutting-edge technology and is usually ahead of the curve when it comes to finance, but he's not a bitcoin bull. The co-founder of Tesla Inc. revealed on Twitter that he owns only a tiny fraction of one bitcoin token.
"I literally own zero cryptocurrency, apart from .25 BTC that a friend sent me many years ago," Musk confessed. Using today's bitcoin price of about $10,000 a coin, that translates to $2,500.
The serial entrepreneur — whose net worth tops $20 billion — made the revelation in response to a question about a Twitter scam where random users posed as celebrities (like Musk) in a bid to steal people's cryptocurrencies.
Musk's indifference to bitcoin probably wasn't a shock to his fans, since he recently told his 19.8 million Twitter followers that "a friend sent me part of a BTC a few years, but I don’t know where it is." (See also: Elon Musk: Education, Success Story and Net Worth.)
In November 2017, Musk denied rumors that he was Satoshi Nakamoto, the mysterious inventor of bitcoin. The brouhaha erupted after a former SpaceX intern claimed in a blog post that the serial entrepreneur was "probably" Nakamoto.
Is Elon Musk Satoshi Nakamoto?
In a blog post on Medium, Sahil Gupta, who had interned at Musk's space company SpaceX in 2015, said "Satoshi is probably Elon."
Gupta reasoned: "Elon is a self-taught polymath. He’s repeatedly innovated across fields by reading books on a subject and applying the knowledge. It’s how he built rockets, invented the Hyperloop (which he released to the world as a paper), and could have invented Bitcoin."
The true identity of Satoshi Nakamoto has never been confirmed, but there has a steady stream of rampant speculation about who he really is ever since bitcoin quietly launched in 2009. (See also: Has Bitcoin Creator Satoshi Nakamoto Been Found?)
Meanwhile, Elon Musk isn't the only billionaire who's skeptical of bitcoin and the crypto phenomenon. Bitcoin cynics are put off by the virtual currency's erratic price movements, lack of regulation, and absence of a valuation guarantee because it's not backed by a central bank.
Billionaire Charlie Munger, the second-in-command at Berkshire Hathaway, slammed bitcoin as a "noxious poison" and called the media hype surrounding digital currencies "totally asinine."
Similarly, Munger's boss, mega-billionaire Warren Buffett, predicted that cryptocurrencies will almost certainly "come to a bad ending." (See more: Bitcoin Is 'Poison,' Says Berkshire Billionaire Charlie Munger.)
And in its latest letter to clients, the Paul Singer-led Elliott Management, which oversees $34 billion in assets, excoriated cryptocurrencies as a bubble, a scam and a fraud. “This is not just a bubble," Elliott wrote. "It is not just a fraud. It is perhaps the outer limit, the ultimate expression, of the ability of humans to seize upon ether and hope to ride it to the stars."
Author Samantha Chang | Updated February 23, 2018 — 6:50 PM EST
Bitcoin — British MPs launch inquiry into digital currencies
MPs have launched an inquiry into cryptocurrencies and the technology behind them.
The Treasury Committee said it wants to understand the risks and benefits of digital money following an explosion of interest — and investment — in them.
The MPs will cover the role of digital currencies in the UK, including the impact on consumers and businesses.
Although currencies such as Bitcoin have drawn criticism, the technology behind them has been praised.
Nicky Morgan, chair of the of the committee, said the MPs would look into how consumers and Britain's financial infrastructure might be better protected, without stifling innovation.
Last year's rapid rise, and subsequent fall, in the value of Bitcoin focussed attention on cryptocurrencies. They were variously dismissed as fraudulent, a "Ponzi" investment scam, and a vehicle for criminals and tax evaders.
Bank of England governor Mark Carney said Bitcoin had failed as a currency, but that the underlying technology which records and verifies the chain of transactions might prove useful.
Warren Buffett, the venerated investor, said the speculative cryptocurrency craze "will come to a bad end".
Divorcing couples may clash over Bitcoin
Ms Morgan said: "People are becoming increasingly aware of cryptocurrencies such as Bitcoin, but they may not be aware that they are currently unregulated in the UK, and that there is no protection for individual investors.
"The Treasury Committee will look at the potential risks that digital currencies could generate for consumers, businesses, and governments, including those relating to volatility, money laundering, and cyber-crime.
"We will also examine the potential benefits of cryptocurrencies and the technology underpinning them, how they can create innovative opportunities, and to what extent they could disrupt the economy and replace traditional means of payment."
But she also wants to strike a balance between protection and regulation, and not hindering the blockchain technology behind cryptocurrencies. "As part of the inquiry, we will explore how this can be achieved," she said.
The committee, which has yet to set a date for its first evidence session, will take evidence on key questions, including:
Are digital currencies ultimately capable of replacing traditional means of payment?
To what extent could digital currencies disrupt the economy and the workings of the public sector?
What risks and benefits could digital currencies generate for consumers, businesses and governments?
Could regulation benefit digital currency start-ups by improving consumer trust?
How are governments and regulators in other countries approaching digital currencies and what lessons can the UK learn from overseas?
UNPRECEDENTED legal battles are set to take place in the UK after it was reported that divorce lawyers are struggling to come up with settlement agreements over cryptocurrencies.
The unusual legal cases are said to concern at least three couples looking to legally separate.
One pair has a fortune of £600,000 in cryptocurrencies that they are currently struggling to agree how to split.
The lack of regulation surrounding the digital currencies means that there is little legal cover for those looking to protect their online assets in the case of a divorce.
Bitcoin, Litecoin, Ripple and Ethereum are all understood to be at the centre of online money involved in the divorce cases.
Vandana Chitroda, a partner at the law firm Royds Withy King, said: “These are the first cases we have seen, and we expect to see many more.
“We believe that cryptocurrencies will be a significant feature in a large number of divorces.
“Whilst cryptocurrencies are volatile, they are not going to go away.”
Bitcoin has dramatically seen its value plunge throughout 2018 from a record high of nearly £15,000 in December 2017 to now under £7,000.
However, there is evidence to suggest the number of people investing in cryptocurrencies is rising.
Ms Chitroda added: “It is important that if you believe your husband or wife has invested in or purchased cryptocurrencies, such as Bitcoin, and you are separating, you tell your legal adviser.”
Countries around the world are currently looking at implementing regulation for digital currencies in an effort to catch up with the latest financial craze.
The finance minister and Central Bank Governors of France and Germany have requested that talks on policy and monetary implications of cryptocurrencies be part of G20 talks in March.
They want world leaders to come up with a global strategy for the online assets.
Some countries have already begun to act unilaterally to increase regulation.
South Korea introduced a raft of measures last month aimed at regulating Bitcoin and similar currencies such as Ripple and Ethereum.
A ban on anonymous trading was implemented by the Asian power in a bid to crack down on all possible criminal activities the secret nature of trading Bitcoin allowed.
Meanwhile, India’s Government has said it does not consider cryptocurrencies to be legal tender and will try to phase out payments using the online money.
Author DAN FALVEY UPDATED: 05:29, Thu, Feb 15, 2018
Bitcoin continues its steady recovery, rising above $8,000
Other cryptocurrencies match bitcoin’s march higher
Bitcoin continued to move above $8,000 on Thursday,
taking a cue from global equity markets, which appeared to be stabilizing somewhat after a week of extreme volatility. The price of a single bitcoin BTCUSD, +2.72% gained 6.7% to $8,091.23, bouncing off a session low of $7,576.25, according to CoinDesk data. The price of bitcoin remains well below a level of $10,000 seen a week ago, and its December peak above $19,000, but has recovered from a drop below $6,000 on Tuesday. Ether, the coin on the ethereum network, saw a similar rise, up 6.3% to $806.63, while bitcoin cash was at $995.25, up 3.5%. Litecoin rose 2.7% to $142.66, and Ripple gained 3.4% to 75 cents, CoinDesk prices indicated.
Winklevoss:
If you can’t see bitcoin at $320,000, you just lack imagination
‘We believe bitcoin disrupts gold’
Tyler Winklevoss and Cameron Winklevoss are still fired up about bitcoin.
‘You know the criticisms are just a failure of the imagination.’
That’s what Tyler, one of the Winklevoss twins, had to say to the skeptics — and there are many — who fail to see the massive potential for bitcoin BTCUSD, +2.33% and the rest of the crypto space. “Cryptocurrencies aren’t really important for human-to-human transactions… but when machines-to-machines trade economic value, they are going to plug into protocols like bitcoin and ethereum,” he explained to CNBC. “They are not going to open bank accounts at J.P. Morgan… those were invented by bankers before the internet existed. Trying to use them as payments or money on the internet is a square peg in a round hole at best.” His brother, Cameron, says bitcoin will one day be worth 40 times today’s price, which is currently just over $8,000, thanks to a double-digit rally.
“We believe bitcoin disrupts gold GCH8, -0.01% We think it’s a better gold if you look at the properties of money. And what makes gold gold? Scarcity,” Cameron said. “Bitcoin is actually fixed in supply so it’s better than scarce … it’s more portable, its fungible, it’s more durable. Its sort of equals a better gold across the board. We think regardless of the price moves in the last few weeks, it’s still a very underappreciated asset.”
Neither Cameron nor his brother put a specific timeline on the prediction during the chat, but they did say they’re taking the 10-to-20 year view. The Winklevoss twins were hailed as the first crypto billionaires, after riding the hype and creating an exchange that processes $300 million in daily transactions. The brothers are currently No. 4 on the Forbes list of wealthiest players in the space, behind the Binance CEO Changpeng Zhao.
February Bitcoin futures on the Cboe Global Markets XBTG8, -0.30% slipped 2.4%, to settle at $8,040, while those on the CME Group Inc. BTCG8, -1.52% fell 3.6% to $7,970. Cryptocurrencies have drawn some support this week from a Senate hearing to discuss regulations for the industry , which was viewed as generally positive. But bitcoin and its rivals have been not escaped the volatility that has at times whipsawed global equity markets.
Bitcoin drops below $6,200 for first time in three months
The virtual currency fell to $6,190 for the first time since mid-November, according to Bloomberg News, and represents the latest hammering for a unit that saw a stratospheric 26-fold rise last year.
Bitcoin plunged 20 per cent to a three-month low today, its latest sharp loss following a series of setbacks for the cryptocurrency that, with a collapse across global mainstream markets adding to the selling.
The virtual currency fell to $6,190 for the first time since mid-November, according to Bloomberg News, and represents the latest hammering for a unit that saw a stratospheric 26-fold rise last year.
Today's collapse comes just six weeks after bitcoin hit a record high of $19,511, fuelled by a flood of speculators looking to make a quick buck, with warnings it could fall another 50 per cent.
Since those heady days the cryptomarket — which includes dozens of other units — has been pounded by news of crackdowns by governments including in China, Russia and South Korea, one of the biggest markets for the sector.
On Thursday, India said it would "take all measures to eliminate" cryptocurrencies' use as part of a payment system and in funding illegitimate activities, while Japanese authorities raided a virtual currency exchange after it lost $530 million to hackers.
Central bank in Europe, Japan and the United States have also flagged concerns about the unit and this week saw several commercial lenders say they would stop allowing their customers to buy bitcoin through their credit cards owing to debt concerns.
Stephen Innes, head of trading for Asia Pacific at Oanda, said "the dynamics behind the moves are regulatory clampdowns and investors losing confidence in crypto".
The sell-off on Tuesday was exacerbated by crushing losses on world stock markets, with the Dow on Wall Street suffering its biggest one-day points loss and wiping out all its 2018 gains.
The global rout comes as panicked investors fret over rising US borrowing costs, leading them to cash in profits after a stellar couple of months that have seen many indexes hit record or all-time highs.
Equities have enjoyed months of surges fuelled by optimism over the US economy, corporate earnings and the global outlook.
But while traders have been piling into equities, pushing many global indexes to record or multi-year highs, there has been growing concern on trading floors about elevated US Treasury bond yields — at four-year highs — and the likelihood of fresh Federal Reserve interest rate hikes.
"The risk-off tone is hitting Bitcoin almost as hard as a global regulator and bank scrutiny," said Greg McKenna, chief market strategist at AxiTrader. "The latest dent to the Cryptospace has been banks saying they are shutting down the ability of clients to buy bitcoin with their cards."
"This could end up a full round trip back into the $1,850/$2,966 region.
Cryptocurrency Markets Move Back Into Green After Substantial Selloff
Cryptocurrency markets are rebounding today, Feb. 3, following yesterday’s multi-month low in Bitcoin's price. Most of the top 50 coins are in green, with 24 hour gains over 20 percent.
In part due to pressure from misleading reporting on regulations in India, the overall cryptocurrency market took a massive nosedive starting Thursday, Feb.1, shedding more than $100 billion in market cap in the 24 hours following the news.
However, after the substantial selloff, the market has spent today bouncing back, with Bitcoin rising back above the $9,000 level. At press time, Bitcoin was trading at an average of $9,095, up 3.54 percent on the day.
Following Bitcoin’s lead, other coins have also rallied substantially. With the except of three coins, every top 50 cryptocurrency has seen gains, with Litecoin (LTC) and Cardano (ADA), and Verge (XVG) leading the pack with gains between 15 and 20 percent.
A quick glance at the Coin360 market snapshot indicates a clear positive turn after the substantial negatives of the week.
Despite the market lows this week, figures such as Litecoin founder Charlie Lee and CNBC’s Cryptotrader host Ran Neuner have made bullish statements recently about Bitcoin. In an interview with Cointelegraph, Lee in particular offered some level-headed perspective on volatility in crypto markets, often lacking in a market crowded with fearful newcomers.
News of the first Canadian Blockchain ETF approval may well have played into today’s rally.
Bitcoin hit a record high of 20,000 in late December, only to crash, along with the rest of the market, just a few days later, Dec. 22, when Bitcoin and altcoins lost 20-30 percent.
Since then, the leading cryptocurrency has yet to fully recover, hovering roughly between $10-$15,000 per coin, until this yesterday’s multi-month lows under $8000.
The entire month of January saw a market sell off, in part due to increased regulatory news from South Korea — and misleading reporting on it — that left many investors fearful.
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Old hands in South Korea bitcoin market unfazed by threats of ban
Veterans of the bitcoin market say restrictions would be relatively easy to circumvent
Investors in the cryptocurrency market are used to wild moves in the space
Expert say a ban might discourage new participants, but anonymity makes it easy for those already in the markets to move digital assets around the world
Threats of a potential cryptocurrency trading ban in South Korea have scared many investors away, but some veterans of the young market are defiant, saying restrictions would be relatively easy to circumvent.
Although the cryptocurrency market lost about $200 billion this week, or a third of its value, these investors — known within the community as "hodlers" after a misspelled meme that went viral during Bitcoin's early days — are used to rollercoaster rides.
China's shutdown of local exchanges in September, for instance, caused a 50 percent drop in Bitcoin, but prices rebounded eight-fold to almost $20,000. Currently valued around $10,000, Bitcoin could be poised for a similar whirlwind this time around, some say.
"In case the government shuts down all local exchanges,investors can always go abroad and open an account there," said a South Korean student who declined to be named because of legal risks. "I can ask my friends who study abroad or travel there myself. It's not that big of a problem."
Cryptocurrency experts say the student probably has good reason to be relaxed. A ban could discourage new market entrants, but the anonymity of buyers and sellers and the ability to move digital assets anywhere in the world with a click makes it hard to impose restrictions on existing participants without a global consensus.
Places like Singapore and Hong Kong maintain light regulations, while neighboring Japan has encouraged a vast ecosystem of companies and investors around digital assets by pioneering a set of rules for the industry. Germany has said national restrictions may be useless.
VPNs, offline wallets
According to industry experts, the first step to circumventing a ban is hiding IP addresses from authorities via virtual private networks (VPNs).
Traders can then continue business as usual. Decentralized exchanges, such as Shapeshift or Stellar Dex, do not require identification and can be accessed from anywhere.
Cryptocurrency wallets such as Exodus and Jaxx are linked to such exchanges, so trading and storing the assets can still be anonymous. Authorities in countries with strong legal protections may need a warrant to check computers or smartphones for proof of such activity.
Threats of a potential cryptocurrency trading ban in South Korea have scared many investors away, but some veterans of the young market are defiant, saying restrictions would be relatively easy to circumvent.
Although the cryptocurrency market lost about $200 billion this week, or a third of its value, these investors — known within the community as "hodlers" after a misspelled meme that went viral during Bitcoin's early days — are used to rollercoaster rides.
China's shutdown of local exchanges in September, for instance, caused a 50 percent drop in Bitcoin, but prices rebounded eight-fold to almost $20,000. Currently valued around $10,000, Bitcoin could be poised for a similar whirlwind this time around, some say.
"In case the government shuts down all local exchanges,investors can always go abroad and open an account there," said a South Korean student who declined to be named because of legal risks. "I can ask my friends who study abroad or travel there myself. It's not that big of a problem."
Cryptocurrency experts say the student probably has good reason to be relaxed. A ban could discourage new market entrants, but the anonymity of buyers and sellers and the ability to move digital assets anywhere in the world with a click makes it hard to impose restrictions on existing participants without a global consensus.
Places like Singapore and Hong Kong maintain light regulations, while neighboring Japan has encouraged a vast ecosystem of companies and investors around digital assets by pioneering a set of rules for the industry. Germany has said national restrictions may be useless.
VPNs, offline wallets
According to industry experts, the first step to circumventing a ban is hiding IP addresses from authorities via virtual private networks (VPNs).
Traders can then continue business as usual. Decentralized exchanges, such as Shapeshift or Stellar Dex, do not require identification and can be accessed from anywhere.
Cryptocurrency wallets such as Exodus and Jaxx are linked to such exchanges, so trading and storing the assets can still be anonymous. Authorities in countries with strong legal protections may need a warrant to check computers or smartphones for proof of such activity.
Even then, unless caught in the act, the holder can claim no trading has taken place since the legislation was approved and has forgotten the password for the wallet.
Some decentralized exchanges offer derivative products that allow betting on the price of a cryptocurrency against a fiat currency, including the Korean won and Chinese yuan. But cashing out in fiat is not possible on such exchanges.
An option in that case is to trade all cryptocurrencies for a top one such as Bitcoin, Ethereum or Litecoin, and sell it at one the 2,064 crypto ATMs in 61 countries, although the transaction fees can exceed 10 percent. If need be, coins can be stored on offline "wallets" the size of a USB stick.
Alternatively, holders can open bank accounts in countries that have not banned Bitcoin, then join a local centralized exchange where they can trade cryptocurrencies for fiat.
"I hold everything in a hard wallet the size of my thumb. I have copies of my private keys in a safe. I have accounts on four exchanges on three continents. If any government wants my money, good luck to them," said a Hong Kong-based investor who claims to hold "about $1 million" in various cryptocurrencies.
Crossing borders
A 30-year-old nurse in Seoul said she had already switched to Hong Kong-based exchange Binance before the government's warnings hit the market. Company officers at Seoul-based exchanges say, anecdotally, such moves have accelerated.
"All this could lead to serious money outflow and only the government is not aware of it," one officer said, requesting anonymity.
South Korea accounts for between 5 and 15 percent of daily Bitcoin trading. The value of all Bitcoins is around $200 billion.
If opening accounts overseas proves difficult, friends,family or the local Bitcoin community can help. Another option is to find someone with access to an exchange — preferably using encrypted social media apps such as Whatsapp or Telegram — and sell to them at a discount. But fraud is a risk.
"There could be a black market where people who can cash out offshore can pay you in won for your Bitcoins," said Aurelian Menant, chief executive of Hong-Kong based exchange Gatecoin.
But that leaves the door open to "dodgy stuff," Menant said, adding that the fear of scams in the aftermath of a ban may deter new investors, potentially shrinking Korean trading volumes "from billions to millions."
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