Bitcoin drops $500 after more reports China will ban cryptocurrency exchanges
Bitcoin has plummeted further after China launched a crackdown on cryptocurrencies.
The currency went into free fall on Friday after reports that China was about to ban cryptocurrency exchanges.
It has continued to decline in value, now standing at $4,161.62, or £3,155, down more than $500 from a high of $4698.72 on Thursday.
The Chinese outlet Caixin first reported the ban on Friday. On Monday, Bloomberg followed up with a report that China would ban the trading of virtual currencies on domestic exchanges but permit over-the-counter transactions.
Full story at http://read.bi/2jlyrEn
Source: Business Insider Nordic
Bitcoin Owes Success to Three Different Waves of Innovators
Cryptocurrency is a complicated mixture of several different fields, which contributes to the difficulty people have in understanding it. Even the term is confusing and often leaves novices scratching their heads. However, the multidisciplinary nature of digital currency is also probably one of its greatest strengths.
Three different types of people are drawn to cryptocurrency: cryptographers/computer scientists, crypto-anarchists and finance professionals. Each of these types brings their own unique insights and perspectives.
Bitcoin was invented and developed by the truly brilliant Satoshi Nakamoto. Although nobody knows Satoshi’s identity, we do know that the genius was exceptionally skilled in both cryptography and software development.
Cryptography is a rather eclectic field, the forte of mathematicians and codebreakers. Satoshi possessed a strong knowledge of cryptography, and when he combined it with his understanding of computer science, he discovered the solution to a vexing problem.
Full story at http://bit.ly/2jlyrUT
Source: CoinTelegraph
Russian Finance Minister: 'No Point in Prohibiting' Cryptocurrencies
Russian Finance Minister Anton Siluanov said his department will regulate the use of cryptocurrencies in the country by the end of 2017.
Siluanov offered insight into the government's plans to oversee Russia's domestic cryptocurrency market during an appearance at the Moscow Financial Forum last Friday. Echoing previous statements by members of the Russian government, Siluanov said banning cryptocurrencies does not make sense and that the ministry will likely treat digital monies similarly to securities, Reuters reports.
According to Wordnews, Siluanov said:
"The state certainly understands that cryptocurrencies are a reality, there is no point in prohibiting them. It is possible to regulate them, so the Finance Ministry will draw up a bill by the end of the year."
Full story at http://bit.ly/2jkZ503
Source: CoinDesk
China is shutting down domestic Bitcoin exchanges
China plans to shut down domestic Bitcoin exchanges, anonymous sources told The Wall Street Journal today. The sources said that regulators weren’t giving a clear message on when the shutdown would occur. One regulator told an exchange that the decision had already been made, while another said the decision might take a few months. In response to the news, the Bitcoin prices have dipped to a low of $4,108, according to CoinDesk.
China is home to vast and lucrative cryptocurrency mining operations for both Bitcoin, Ethereum, and other cryptocoins. Three Chinese exchanges — Bitfinex, OkCoin, and BTCC — made up over 45 percent of the global market share over the last 30 days, according to Bitcoinity.org. Bitcoin’s growing popularity in China may have caused the government to begin to perceive it as a threat to local currency, especially as Chinese investors bought up bitcoin and bet against the yuan last year.
The anonymous source cites “too much disorder” as the reason for the alleged shutdown, echoing the Chinese central bank’s words last week criticizing ICOs for disrupting the country’s financial order. China banned initial coin offerings last week as an unapproved and illegal form of public financing.
Many are skeptical of the rumored shutdown, including Bobby Lee, co-founder and CEO of BTCC. He tweeted a poll on September 8th, asking whether followers thought the shutdown news was fake or real; so far, 83 percent have voted that they believe the news is fake. On the same day, BTCC tweeted from its main handle @YourBTCC that the exchange was operating normally.
Full story at http://bit.ly/2jlSimM
Source: The Verge
Sanctions On North Korea Could Boost Bitcoin Demand
In times of uncertainty, the smart money is always keen to look at opportunities which could protect their downside risk. The term “hedge your risk” was coined pretty much based on this idea. Investors have been waiting for the massive pullback or correction in the current bull market which has been triggered since the financial crisis. Yet, there are no signs of this coming to an end. However, when the markets start to show some cracks, the smart money not only reads the cracks in the bull market well before anyone else, but also takes steps to protect their downside risk. In other words, when you see the ingredients of a recipe on the chef’s table, you know that he is going to cook that recipe. What you do is prepare yourself to have his food.
Bitcoin, despite its volatility, has taken a prominent place when it comes to a risk-off trade during the substantive volatility time in the market. North Korea has played more than a fair role in escalating the geopolitical tensions and we have seen the price of Bitcoin skyrocketing on the back of the heightened geopolitical tensions. The cryptocurrency market is a largely unregulated market (although a number of central banks are actively looking to regulate this market, which would not only reduce the volatility but also strengthen the demand equation). After the recent missile test by North Korea, the U.S. stepped up the efforts and pressured the United Nations to ranch up the criteria of sanctions on North Korea. As a result, the UN passed a resolution under which imports of refined petroleum products will be cut to 2 million barrels a year and a ban of textile exports will take place. The sanctions are designed to limit the country’s ability to get any hard currency.
However, these sanctions are not going to halt Kim Jong-un from his nuclear program and there are no hopes of him coming to the negotiation table. In fact, the country has stepped up the efforts in securing more bitcoins along with many other cryptocurrencies. North Korea has an army of hackers who are constantly targeting South Korea, the hectic trading hub for cryptocurrency. The strategy would aid the country in bypassing many trade restrictions which also include the new sanctions. Moreover, the massive popularity of the cryptocurrency gained Kim’s attention and for crypto traders, this represents an opportunity. A higher demand for cryptocurrency would only boost its price.
Full story at http://bit.ly/2jnI4m6
Source: Forbes
Solar-Powered Bitcoin Mining Could Be a Very Profitable Business Model
Bitcoin and other cryptocurrencies are now a major business, with the global market capitalization of these coins exceeding $170 billion at their recent peak, according to Coin Market Cap.
Bitcoin alone has reached over $70 billion in value, up from nothing when it was created just eight years ago.
A major issue with Bitcoin, which may eventually undermine success unless it is remedied, is the massive amount of power required for “mining” of the coins.
The mining metaphor is apt because bitcoins are created through specialized computers looking for the correct codes (hash keys), just like digging for gold. That electronic digging takes more and more power as more and more people dig for that virtual gold. Sebastian Deetman calculated in 2016 that mining would require as much electricity by 2020 as the entire nation of Denmark currently consumes.
Full story at http://bit.ly/2jkPbM2
Source: Greentech Media
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