Top news and views about Bitcoin and Cryptocurrency for 5 Jun 2017

 

Welcome to the Crowdify digest of interesting and important news and views about Bitcoin and Cryptocurrency.

 

Remittance agents can advance with Blockchain technology

 

Traditional business models are being challenged by new disruptive technologies whose speed of development makes the "catch-up" act very difficult. However, if something can provide solutions to problems encountered by businesses and individuals, it is most certainly welcome. One of the biggest problems is faced by the large expat population in the region, which relies on remittances to transfer cash across borders. For an industry worth nearly US$100 billion in the GCC, and $19bn in the UAE alone, the process is quite time-consuming and expensive, with the banks, exchange companies and central banks functioning as intermediaries.

The remittance process is carried out through certain models – pre-fund models, post-fund models and subsidy models. The pre-fund model works on a corridor basis, for example, India-UAE, UAE-Pakistan, UAE-China etc, the pre-fund model allows the sending agent to quickly be able to settle the net amount with the beneficiary agent or bank, so that their customers can get the money quickly. In the post-fund model, the beneficiary bank advances the amount to the beneficiary and as a result they have to absorb the loss if the sending bank defaults.

All of these models add to the cost which is borne by either parties. For instance, in the pre-fund model, the transfer agent has to keep a certain sum of money as deposit with the receiving bank, in most cases, without interest to speedily complete the transaction. It also needs to have physical cash of the equivalent amount being sent to be present at their centres to settle the transaction, which again does not pay any interest.

Typically, the remittance process takes one to two days, involves a lengthy digital trail and has to go through the clearing process of central banks.

Full story at http://bit.ly/2qPceha

 

Bitcoin Demand Increase in Asia Driven by Remittances

 

On May 31, one the biggest Bitcoin exchanges in China by OKCoin is back on track helping to improve the Chinese exchange market after the suspension of withdrawal transactions.

As a result, more Bitcoin investors are resuming their interest and driving up the demand for Bitcoin. Thanks to the resumption of withdrawals, Bitcoin is now traded at a premium rate in China compared to last year. Also, mainstream Chinese media coverage that shows Bitcoin as digital gold in the country increases Bitcoin demand for local traders.

Full story at http://bit.ly/2qP4prD

 

Not a Bubble: Investors Start to Recognize Bitcoin’s Power

 

What could be more terrifying than making a lot of money and then losing it the next instant? Markets offer investors the opportunity to make money in both bull and bearish phases but to many, a market bubble is something appalling or frightening.

What would happen if all their ‘hard earned’ profits just vanish as the bubble goes bust? Yet, we see somewhat of a resilience when it comes to Bitcoin investors, who have chosen to repose their faith in the world’s first every cryptocurrency.

Recently, Bryan Rich a contributor at Forbes wrote an article titled, “Is Bitcoin a Bubble.” Rich writes, “If you're looking for a warning signal on why the Bitcoin move might not be sustainable, just look at the behavior across global markets. It's not exactly an environment that would inspire confidence.”

He goes on the propound the theory about Chinese stocks and how they took down the global markets. New York Post quoted Fidelity Investments Chief Executive Abigail Johnson as saying, “It’s no accident that I’m one of the few standing before you today from a large financial services company that hasn’t given up on digital currencies.” Just like Abigail, there are many who choose to see Bitcoin as a currency that has real world application and usefulness.

Full story at http://bit.ly/2qOIWPI

 

Bitcoin Price Recovers to $2,400 as Chinese Exchanges Resume Withdrawals

 

On May 31, OKCoin, the largest Bitcoin exchange on the Chinese exchange market with over 34 percent market share, officially resumed withdrawals for its traders. Huobi and BTCC, the second and third largest Bitcoin exchanges in China, followed, resuming withdrawals for all users.

Almost immediately after the resumption of withdrawals by the big three exchanges within the Chinese Bitcoin exchange market, Bitcoin price surged, recovering back into the $2,400 region. On a weekly basis, Bitcoin price has recorded a three percent gain, recovering from its previous market correction which led to a $600 decline from $2,500 to $1,900.

An interesting aspect of the recent resumption of withdrawals of the big three Chinese Bitcoin exchanges is that the withdrawal wasn’t ordered, requested or approved by the People’s Bank of China (PBoC), the central bank of the country.

According to local sources including cnLedger, Huobi, BTCC and OKCoin came to a consensus in regard to their anti-money laundering (AML) and know your customer (KYC) systems update and decided to open withdrawals for all of their users.

Full story at http://bit.ly/2qPbGYJ

 

Bitcoin start-up Coinbase is looking to raise money at a $1 billion valuation, says report

 

Coinbase, a website for buying, selling and storing bitcoin and other cryptocurrencies, is talking to investors about raising money at a $1 billion valuation, The Wall Street Journal reports, citing people familiar with the situation.

The funding round isn't set, but the company is looking to raise around $100 million, which would be the biggest ever for a bitcoin company, the Journal said.

To date, Coinbase has raised about $116.5 million from investors including Andreessen Horowitz, Union Square Venture and DFJ, as well as a number of banks and the NYSE, the paper reported.

Cryptocurrency is capturing the attention of a larger set of investors as prices skyrocket. Bitcoin has jumped about 150 percent this year to $2,445.20 on Friday. Ethereum, a newer digital currency, has surged 26-fold in 2017 to $218.

Full story at http://cnb.cx/2qP3g3m

 

Why Ethereum and Bitcoin Are So Popular Lately [VIDEO]

 

Adam White, Coinbase vice president and product manager, discusses the boom in digital currencies with Bloomberg's Emily Chang on "Bloomberg Technology." (Source: Bloomberg)

Full story at https://bloom.bg/2qP4EmL

 

Financial Times Praises ‘Innovator’ Greek Lawyer For Bitcoin Use

 

A Greek lawyer has made the Financial Times’ list of top legal innovators in Europe for his use of Bitcoin during the country’s financial crisis.

"Panos Giannissis came second on a list of eight finalists shortlisted by the publication, which praised his use of the virtual currency when capital controls appeared in Greece two years ago."

“When capital controls were imposed during the Greek financial crisis last year, Panos Giannissis helped clients to stay in business by converting some of their working capital to Bitcoin, the virtual currency,” it writes.

“He also led the development and implementation of the information systems at his firm.”

Full story at http://bit.ly/2qKtmEV

 

Following Recent Correction, Bitcoin Price Could Still Reach $4000

 

Bitcoin, the popular cryptocurrency recently underwent a price correction, losing as much as $400 overnight. The sudden drop, following a steady, rapid increase in its price to record levels was considered as the end of Bitcoin’s bull run for a while. However, analysts believe that the development is just a minor setback which will be overcome in no time.

Few investors believe that the cryptocurrency is just getting started and Bitcoin price is expected to rise again, hitting the $4000 mark by the end of this year. A leading financial news outlet has reported an analysis made by a seasoned investor, Daniel Masters — the Chairman of XBT Provider, a company that offers a “Bitcoin tracker” that can be exchanged and traded on Stockholm’s Nasdaq exchange.

Masters believes that the recent Bitcoin-related developments happening around the world are going to be the important driving factor in putting the digital currency’s price at $4000 by the end of 2017. At the same time, the rise in Bitcoin price will be accompanied by increased stability, thanks to the cryptocurrency’s growing proliferation and volumes.

Full story at http://bit.ly/2qKFENi

 

Russia is looking to regulate bitcoin but still doesn’t see it as a currency

 

Russia is exploring ways to regulate bitcoin, the country's central bank governor has told CNBC, but sees "doubts" over the benefits of the cryptocurrency and even questions whether it should be considered a virtual currency at all.

In an interview with CNBC, Elvira Nabiullina, governor of the Russian Central Bank, explained that she views bitcoin as a digital asset rather than a currency, and this is the way it should be thought about with regards to regulation.

When asked whether the Russian Central Bank is looking to regulate bitcoin, Nabiullina said that the authority is "analyzing" the possibility and needs to "understand more about this internalization of bitcoin and our regulatory systems." She added that there are "risks" with the cryptocurrency.

"We don't consider that bitcoin can be considered as a virtual currency. It's more digital assets with the regulation of assets," Nabiullina told CNBC in a TV interview.

Full story at http://cnb.cx/2rx8qEA

 

There's an easy way to bet on bitcoin - but it'll cost you

 

Want to invest in bitcoin but don't know where to start? There's an exchange-traded fund for you.

But wait, there's a catch: the ETF shares are double the price of the cryptocurrency itself.

In order to buy the Bitcoin Investment Trust (GBTC), provided by Grayscale Investments, investors have to pay a 106% premium to the actual bitcoin rate, according to data from financial analytics firm S3 Partners.

While that may seem like a steep price to pay, consider that the ETF surged 248% in May, more than three times the 72% increase for the bitcoin-US dollar currency cross. Still, that degree of outperformance is relatively anomalous, with actual bitcoin beating the fund in two of the prior three months.

Full story at http://read.bi/2rxoeHo