Bitcoin price surpassed the $4,500 mark Sunday, reaching $4,614.91 Sunday, posting a market capitalization of $76.662 billion. Bitcoin posted close to a 5% gain in the last 24 hours, during which most cryptocurrencies posted losses.

Ripple and Litecoin were the only other two of the top 10 cryptocurrencies to gain in the period, posting 15.6% and 2.02% gains, respectively. BitConnect, the number 12 crypto with a market cap just over $1 billion, was the only other crypto with more than $1 billion in market capitalization to post a gain, grabbing 4.36%.



Bitcoin commanded more than half of all cryptocurrency market valuation, accounting for 50.03% of all market value. Ethereum accounted for 19.39%, the only other crypto to rank in double digits. Bitcoin had also surpassed the 50% mark earlier in the week.

Bitcoin Stabilizes Crypto Markets

In the past week, the bitcoin price provided the markets with a stabilizing force. Despite falling prey to the mid-week downtrend, the bitcoin price ended the week at $4,335, which then represented a week-over-week gain of about one-half of one percent.

Tuur Demeester, a prominent bitcoin investor, analyst, and editor in chief at Adamant Research, recently predicted the bitcoin price would surpass the $5,000 mark if support towards SegWit2x declines in the next few days. Uncertainty around SegWit2x has held back the momentum of bitcoin and its short-term rally. Several business have pulled out from the SegWit2x NYA agreement and the plan of the Digital Currency Group-led consortium of companies to carry out a hard fork in November.

Since early September, bitcoin’s price has struggled to recover beyond $4,500 due to uncertainty surrounding the Chinese cryptocurrency exchange market and SegWit2x. Analysts have started to demonstrate optimism towards the possibility of the Chinese government resuming cryptocurrency trading.

Hyperinflationary Period Over?

Chris Burniske, a partner at cryptocurrency-focused venture capital firm Placeholder and former cryptocurrency investment lead at ARK Investment, recently revealed that 80 percent of the total supply of bitcoin is now outstanding and that its hyperinflationary period is behind it.

Because there will only be 21 million bitcoins and no additional bitcoin can be created after the supply achieves its cap, only a limited number of investors would be able to hold one full bitcoin.

Bitcoin’s deflationary supply, however, is not an issue for investors and merchants that adopt bitcoin as a digital currency because it is divisible. Currently, many bitcoin wallets and merchants use “satoshi” as a unit, with one satoshi representing 0.00000001 bitcoin.

Investors Flock To Bitcoin

Currently, many investors and traders have invested in bitcoin as a safe haven asset and a long-term investment. But, as bitcoin evolves as a technology and a robust financial network, it will soon compete with reserve currencies, existing banking systems, and traditional assets such as gold.

For the long-term growth of bitcoin’s market cap and price, its deflationary nature will be a vital factor to sustain bitcoin’s upward momentum and demand for bitcoin from the global market.

Several analysts, including RT’s Max Keiser, Harvard academic Dennis Porto, and Saxo Bank senior analyst Kay Van-Petersen, have predicted bitcoin price surpassing $100,000 within the next 10 years.

https://www.cryptocoinsnews.com/bitcoin-price-approaches-record-high-surpassing-4500-mark/

American tech billionaire investor and television personality Mark Cuban has recently claimed that he sees Bitcoin and its underlying Blockchain or distributed ledger technology (DLT) as the way of the future.

He also countered the various claims that the leading digital currency is not real and has no intrinsic value.

In an interview with Bloomberg, the renowned American businessman claimed that Bitcoin is just like the traditional stocks that investors can buy and sell.

    “...it's interesting because I think there are a lot of assets that have values based on just supply and demand. You know, most stocks, they don't have any intrinsic value, no true ownership rights, no voting rights, you just have the ability to buy and sell those stocks. They're like baseball cards and I think Bitcoin is the same thing...”

Cuban also said that he has been looking to buy into Bitcoin and the cryptocurrency market ever since and he confirmed that he already invested in the leading digital currency, as well as some initial coin offerings (ICO).

    “...I have bought some, bought it through an ETN based on a Swedish exchange because that gave me liquidity. I am also involved with ICOs, actually token sales, because I think Blockchain is a great platform for future applications...”

His most recent statements are quite far from his previous perception as he earlier called Bitcoin as ‘bubble’. His company’s recent moves, however, seem to be bullish of cryptocurrencies as his team have been investing in ICOs and Blockchain projects.

Some adverse opinions on Bitcoin

Several notable financial industry experts have expressed their adverse opinions on the leading virtual currency.

In late September 2017, JPMorgan CEO Jamie Dimon called Bitcoin a fraud that is only suitable for criminals. Hedge fund Bridgewater Associates head Ray Dalio, meanwhile, claimed that the digital currency is a bubble.

Meanwhile, the infamous ‘Wolf of Wall Street’ Jordan Belfort stated that Bitcoin is a ‘bizarre’ thing.

    “...it is backed by nothing other than a program that creates artificial scarcity, it seems kind of bizarre to me...”

Despite the constant criticisms from these finance luminaries, Bitcoin continues to move in upward trend and trading at $4,387.91 as of press time.

https://cointelegraph.com/news/american-billionaire-investor-mark-cuban-claims-cryptocurrencies-and-blockchain-are-future

Switzerland's Lucerne University of Applied Sciences and Arts is now accepting bitcoin.

The public institution is taking the cryptocurrency as payment for student-related bills through a partnership with Bitcoin Suisse AG. As might be expected, the university itself won't handle the bitcoin – rather, the brokerage firm will exchange incoming payments into Swiss francs on a weekly basis, according to an announcement.

"Bitcoin Suisse AG will bear the risk of any exchange rate losses and currency fluctuations," the university notes.

Immediate adoption by most students is not expected, however. Only those who are savvy about finance or are interested in pursuing an education in this area are expected to choose the payment method, the release indicates.

The move makes it the latest publicly funded higher education institute to embrace bitcoin as an alternative payment, following the King's College New York, The University of Nicosia in Cyprus, and The University of Cumbria in the U.K.

Yet the move is perhaps an unsurprising one, given the interest the university has shown toward the tech to date.

Researchers at Lucerne are involved in a number of blockchain initiatives, including an ethereum-based identity solution being spearheaded by the City of Zug. The university is also a member of the non-profit Crypto Valley Association, a working group dedicated to companies and startups in Switzerland that are using the tech.

https://www.coindesk.com/swiss-public-university-begins-accepting-bitcoin/

The chairman of Swiss banking giant UBS doesn't believe that bitcoin meets the full definition of a currency, according to new statements.

Axel Weber, who previously served as head of the Bundesbank, Germany's central bank, made the remarks during an event in Zürich earlier today, according to Reuters.

After noting that his skepticism toward the cryptocurrency "probably comes from my background as a central banker," Weber argued that in spite of arguments to the contrary, bitcoin only partially satisfies the common definition of a currency.

He told event attendees:

    "The important function of a currency is, it’s a means of payment, it has to be generally accepted, it has to be a store of value and it’s a transaction currency. Bitcoin is only a transaction currency."

Weber reportedly criticized the cryptocurrency market back in late 2015, according to a report at the time from City A.M. He is said to have remarked that the bitcoin model is set to fail "because there is no lender of last resort – there will always be boom and bust."

The UBS chairman becomes the latest figure from a major financial institution to weigh in on the topic of cryptocurrencies. Just yesterday, Lloyd Blankfein, the CEO of Wall Street investment bank Goldman Sachs, took to Twitter to offer an open (if not neutral) perspective on bitcoin.

https://www.coindesk.com/former-bundesbank-chief-bitcoin-doesnt-meet-full-definition-currency/

The Chinese government's media arm, the Xinhua News Agency, has defended regulators' recent decision to outlaw token sales, or ICOs, and the voluntary closure of bitcoin exchanges that followed.

Heavily critical of cryptocurrency exchanges, Xinhua said they had become a favourite among criminals across the world in an article today. Exchanges, it continued, are known to have "concocted pyramid schemes" and "engaged in illegal activities" – criminal activity "disguised as scientific and technological innovation."

The solution? These entities must be met with "iron fist governance," according to the news agency, which also praised authorities' "zero tolerance" to the financial risks and illicit activities.

The article follows a statement by authorities in early September, which prohibited the sale of blockchain tokens as a method of fundraising. In the following month, a number of exchanges, citing the statement, announced they would voluntarily close their doors.

Xinhua argued that, even following the crackdown, there are still many "regulatory vacuums" that authorities need to address, in part because of the global use of cryptocurrencies.

Solutions suggested by the agency – which is often considered the voice of the government – include strengthening existing regulations and establishing a full regulatory framework for exchanges with specific requirements, such as a cap on large volume trading, ID verification, and know-your-customer and anti-money laundry procedures.

Xinhua News Agency has previously written articles collecting instances of bitcoin fraud.

https://www.coindesk.com/china-state-news-calls-for-iron-fist-regulation-of-bitcoin-exchanges/

Representatives from the blockchain industry are in the United Arab Emirates (UAE) this week on a trade mission backed by the U.S. Department of Commerce.

Organised by the Washington, D.C.-based trade group, the Chamber of Digital Commerce, the trip includes executives from a number of firms – including Bloq, Cisco, CMT Digital, Cognizant, Gem, Hogan Lovells and Netki – the organization said today. The effort will include meetings with public- and private-sector officials, taking place from October 1–5.

The mission signals the growing profile of the technology in the region, with Dubai among the emirates having taken what is perhaps the most proactive stance to date. Dubai's leadership has charted a progressive course on public-sector applications in the past two years, investing in startups and looking to companies like IBM as it pursues use cases in areas like identity, among others.

Barbara Leaf, the U.S. ambassador to the UAE, said in a statement:

    "Leading U.S. financial technology providers are here to share the latest in blockchain technology developments with UAE banks, investment firms, and government agencies to ensure the integrity of financial transactions. U.S. financial technology firms are uniquely poised to assist Dubai's vision of becoming one of the world's first governments to use this technology."

According to the chamber, the trade mission will advance the role of U.S. companies in Dubai's ongoing blockchain efforts, including its city-wide governance initiatives.

https://www.coindesk.com/us-commerce-department-backs-blockchain-trade-mission-uae/

The local government in Dubai has officially launched its own cryptocurrency called emCash, according to announcements by local news media outlets. The cryptocurrency would be used for payment of governmental and nongovernmental services.

According to Ali Ibrahim, Deputy Director General of Dubai Economy, the token will be considered legal tender “for various government and non-government services, from their daily coffee and children’s school fee to utility charges and money transfers.”

Dubai embracing Blockchain technology

The flexibility and convenience of cryptocurrencies makes the solution a win-win for Dubai. The government is strongly pro-Blockchain and sees it as the next major wave of paradigm changing technologies, and wants to be forward-thinking in adoption. According to Ibrahim:

   
Blockchain technology, as a system for a number of various services, has been widely embraced in the country. Dubai is seeking to become a fintech hub for the eastern world and has even recently signed deals to allow for property sales entirely in Bitcoin.

The new cryptocurrency will move the country’s adoption paradigm forward.

https://cointelegraph.com/news/dubai-will-issue-first-ever-state-cryptocurrency

Russian Regulators Disagree on Crypto Regulation, Postpone to Next Year

The Russian Deputy Finance Minister told reporters on Tuesday that the authorities decided not to introduce cryptocurrency regulation for now, due to lack of consensus. This followed a day after the head of the State Duma Committee on Financial Markets stated that a draft bill on the regulatory framework for cryptocurrencies such as bitcoin would be ready in October.

Suspending Crypto Regulatory Plans

Following the National Council for Financial Stability meeting, headed by First Deputy Prime Minister Igor Shuvalov, Deputy Finance Minister Alexei Moiseyev reportedly said on Tuesday that bitcoin and other cryptocurrencies will not be recognized in Russia. “Bitcoin settlements in Russia will not be legalized,” Tass wrote. Ria Novosti elaborated:

        
The deputy minister noted how cryptocurrency regulations vary from country to country with no single trend, from a complete ban to “allowing bitcoin to move along with the national currency,” the publication quoted him explaining. He added that this topic will be discussed at the next meeting of the International Council on Financial Stability on October 6.

“Maybe after that, we’ll grow wiser and think of something, but unless we want to make mistakes at first, we decided to look around and think about how best to do it,” he said.

At the National Council for Financial Stability meeting, officials could not come to a unanimous decision regarding the regulation of cryptocurrencies. Therefore, the Ministry of Finance, the Federal Financial Monitoring Service (Rosfinmonitoring) and the Central Bank promise to further develop their policy on cryptocurrencies next year.

Read more: https://news.bitcoin.com/russian-regulators-cryptocurrency-regulations-postpone/

China's ban on Bitcoin and other cryptocurrencies may be temporary, to appease international agencies and hardcore communist members ahead of the upcoming Communist Party convention.

China's big government and banks cannot tolerate Bitcoin. It threatens their very existence, as it was previously written in a piece here.

That's in the long term, though, when Bitcoin has the potential to replace the yuan in everyday transactions, and as a monetary asset.

At present and in the immediate future, however, the size of the Bitcoin economy is far too small to be a real threat to the Beijing government and the banking system it owns and manages.

That’s why something else must be at play behind the Bitcoin ban. Like an effort by Beijing to demonstrate to international agencies, such as S&P Global, that it is in good control of the financial system and the credit conditions of the country.

If that was their aim, it didn't work. S&P Global downgraded China one notch last week.

Then there's the upcoming 19th Communist Party Convention, where the party leadership will be grilled by hardcore members on any innovation that threatens the party’s grip on the economy.

Actually, this isn't the first time Beijing is going after innovations that threaten that. Back in 2011, a few months before the 18th Communist Party Convention, the party leadership at that time went after a controversial Chinese corporate structure, Variable Interest Entity (VIE). This structure had allowed Chinese companies to list their shares in US exchanges through “reverse mergers”—a strategy that drew the scrutiny of US regulators, due to a string of accounting irregularities among these companies.

Read more: https://www.forbes.com/sites/panosmourdoukoutas/2017/09/25/why-chinas-ban-on-bitcoin-may-be-temporary/#435ed0577929

The Russian Leningrad region wants to create an industrial park for cryptocurrency mining including bitcoin. The region’s governor is inviting miners to the Sosnovy Bor area near St. Petersburg to create industrial-scale mining farms at the old Leningrad nuclear power plant.

Miners Invited to Relocate to Leningrad Region

The governor of the Russian Leningrad region, Alexander Drozdenko, is inviting cryptocurrency miners to set up mining farms in the region, according to local publications. At the third annual forum for the region’s small and medium-sized businesses (SMEs) called “Energy of Opportunities” which took place last week, he proposed that the first Leningrad Nuclear Power Plant (LNPP) could be used to set up cryptocurrency mining farms. The event was attended by 600 entrepreneurs and federal agency representatives.

The Leningrad region is bordered by Finland in the northwest and Estonia and St. Petersburg in the west. The region’s first LNPP, which was commissioned in 1974, is located in the town of Sosnovy Bor. Currently, the second nuclear power plant (LNPP-2) is being developed next to it.

“As you know, the construction of LNPP-2 is being completed in Sosnovy Bor, and large areas of the first nuclear power plant are being liberated,” Drozdenko explained, adding that this site may be of interest to cryptocurrency miners. 47News noted;

      "Production sites that are being released during the construction of new power units of the Leningrad nuclear power plant will be available for new residents as early as 2018."

Read more: https://news.bitcoin.com/russian-governor-cryptocurrency-miners-mining-farms-leningrad/

Malaysia's central bank is reportedly planning to draft cryptocurrency regulations by the end of this year.

Muhammad bin Ibrahim, governor of Bank Negara Malaysia (BNM), told reporters at a symposium on September 19 that the institution wants to develop rules for those trading and exchanging cryptocurrencies. That process would also involve the reinforcing of existing regulations on money laundering and terrorism financing, he said, according to regional news source Free Malaysia Today.

Bin Ibrahim was quoted as saying:

    "We hope that by year-end, [we] will be able to come out with some guidelines on cryptocurrency, particularly those related to anti-money laundering and terrorist financing. We want to ensure there are clear guidelines for those who want to participate in this particular sector."

It's unclear at this time what shape those regulations will take, or whether other regulatory bodies will take part in the process. However, the move represents a shifting stance on the part of the central bank, which said in early 2014 that it "does not regulate the operations of bitcoin."

At the time, the BNM said that it does not consider bitcoin to be legal tender.

Further, the statements represent the latest regulatory development in Malaysia around the technology. Earlier this month, the Malaysian Securities Commission, which oversees financial markets in the country, warned investors against initial coin offerings (ICOs).

https://www.coindesk.com/malaysias-central-bank-close-drafting-new-cryptocurrency-rules/

I`m not sure. Yesterday was the first ICO day, and Etherscan shows that there no funds or even 1 substantial transactions on their address. It is very strange or i`m doing something wrong.

Bradley Tusk is the founder and CEO of Tusk Ventures , a venture capital firm that works with and invests in high-growth startups facing political and regulatory challenges.

In this opinion piece, Tusk discusses what he feels is the hypocrisy in recent statements from JPMorgan CEO Jamie Dimon on bitcoin.

Jamie Dimon made news again on Tuesday when he savaged bitcoin specifically and cryptocurrency generally, calling it a fad even worse than the tulip craze, and promising to fire any JPMorgan trader who dealt in bitcoin.

But that couldn't be farther from the case. Rather, Dimon's comments encapsulate an outdated mentality whose very existence explains why there's a demand and need for cryptocurrency in the first place.

In the U.S. alone, trust in major institutions (like Dimon's) has plummeted. People distrust government: Congress enjoys a roughly 10 percent approval rating and the president's is already below 40 percent People distrust organized religion just as much: the scandals plaguing the Catholic Church over the last two decades have helped decimate public trust in the moral authority of religious institutions across the board (even with a popular Pope now in place).

At least a third of the country (Trump's hardcore supporters) distrust the mainstream media, if not more. Faith in Wall Street never recovered after the financial crisis (financial institutions across the country faced significant fines and sanctions for their reprehensible actions).

Between the controversies over safe spaces, guest speakers, commencement addresses and free speech, our universities lack anything resembling a clear moral compass.

And compared to the rest of the world, the U.S. is doing pretty well.

Much of Latin America – Venezuela, Brazil, Argentina – is in political shambles. The Middle East is even worse. The EU is still on shaky ground. Russia? North Korea? If you don't have faith in your government, your religious leaders, the media, the banks, financial leaders, and academic leaders, then you want – actually, you need – an alternative.

That's why so many people are desperately seeking both a safe haven from the volatility of their own currency and homeland, and for a way to connect with others who think like they do – whether they share a common passport or not.

Will bitcoin itself definitely succeed? It may not. Any given currency or exchange certainly could fail and prove Dimon right in the short term.

But will cryptocurrency go away? No. This is not a monetary version of Esperanto. Faith and trust, like anything else, needs somewhere to go during a vacuum.

If you don’t feel comfortable that Jamie Dimon is looking out for the general public (and the $20-plus billion JPMorgan has paid in fines for ethical lapses over the past few years makes it hard to argue otherwise), if you don't really trust your senator or president to put your interests first, if you think the people who used to claim moral authority now lack it, you need someplace to go. That's true intellectually and it's true economically.

Smart leaders in finance will see the potential and demand for crypto, embrace it and make sure their institutions and shareholders can both participate and benefit. People either afraid of change or unable to recognize it will scoff. The best case outcome for them is they've retired before they're ultimately proven wrong.

Either way, Dimon's comments only underscore why crypto is necessary and why it isn't going anywhere – whether he likes it or not.

https://www.coindesk.com/crypto-is-here-to-stay-whatever-jamie-dimon-might-say/

Noelle Acheson is a 10-year veteran of company analysis, corporate finance and fund management, and a member of CoinDesk's product team

Nine months after issuing warnings to bitcoin exchanges, China's central bank again sent the cryptocurrency markets tumbling last week.

This time, its focus was on initial coin offerings (ICOs). On September 4, the People's Bank of China (PBoC) issued a sharp statement labelling token sales "illegal and disruptive to economic and financial stability." Analysts blamed this blanket ban for the subsequent sharp decline in cryptocurrency markets, which saw almost $35 billion wiped off of total capitalization in just four days (it has since rebounded somewhat).

While drastic, the ban is understandable and reasonable. And, like the market reaction, probably temporary.

Understandable goals

China's financial market is huge, sprawling and difficult to control. What's more, the rapid growth of innovation and reach has given rise to bubbles in a wide range of asset classes, some more shadowy than others.

This is potentially a very big problem.

Take trillions of dollars-worth of opaque financial products with little regulation, add a get-rich-quick mentality and you have a simmering cauldron of trouble that could overflow at any time. Given the importance the party places on social stability, especially in the run-up to the 19th National Congress, it becomes increasingly obvious that the regulators were going to step in.

Although the Chinese ICO market is relatively small compared to the overall economy, it had been gathering speed. According to the Beijing Internet Finance Association, in the first seven months of this year, approximately 65 ICOs raised almost $400 million.

And the accelerating fervor – another report claims that the amount raised in July and August alone reached over $750 million – no doubt set alarm bells ringing.

Reasonable steps

But, an overall ban on ICO activity, isn't that a bit harsh? On the contrary, it could turn out to be the most sensible way to protect investors at this early stage.

While the overall reaction to the U.S. Securities and Exchange Commission's (SEC) warning on ICOs earlier this year was positive (with most welcoming it as a potential hype-deflator), many criticized it for not going far enough. Declaring that tokens "might" be securities seems to have had little effect on the plans of many would-be issuers.

Many point to the support shown by Quebec and the Isle of Man for "light" regulation as a more constructive way to handle ICOs.

While they may be right, a direct comparison is meaningless – the relative size of those markets means that they can afford to be less risk-averse and more pro-innovation.

Given the potential spread of the Chinese ICO market, a case-by-case evaluation is impractical. Additionally, the severity of the risk is disconcerting – the central bank has alleged that a startling 90 percent of issuances so far this year may have been fraudulent.

Temporary breather

China, however, is not averse to innovation, even of the financial kind. While it came late to the securitization party, it has since been making up for lost time. And its payments sector is among the most technologically advanced in the world.

Furthermore, the Chinese central bank is not averse to blockchain development. It recently announced an active push on blockchain research, even sending a delegation to the U.S. to learn more. And late last year it revealed that it had been testing a blockchain-based digital currency.

So, the ICO ban is not a statement on either blockchain or innovation. Given the authorities' recognition that they need to continue to modernize the financial system, and the desire to become an increasingly important player in global markets, it is unlikely that the ban will last for long.

The most likely scenario is that the prohibition is akin to hitting the "pause" button. This should give the market time to settle down and the regulators a window in which to get consumer protections in place.

In addition, Chinese regulators have a history of stepping in, slowing things down and then stepping back.

Now what?

In a country famous for its traffic jams, financial market regulation can be likened to driving a car.

Too much pressure on the accelerator (low interest rates and lax oversight) leads to increasing speed and possibly fatal accidents. Slamming down on the brakes (intervention and blanket bans) gets you nowhere, but can give you time to survey your surroundings and plan evasive measures.

Once they're in place, gradually easing up on the clutch while gently pressing the accelerator should give you – and digital tokens – a sensible and sustainable start.

https://www.coindesk.com/chinas-ico-ban-understandable-reasonable-probably-temporary/

Argentina is set to receive 200 ‘bi-directional’ Bitcoin ATMs next month in an initiative responding to the “world monetary order changing.”

Speaking to local news outlet CryptoNoticias, CEO of organizer Odyssey Group Sebastian Ponceliz said there would be multiple benefits of the machines in a country where economic policy was an early driver of consumers towards Bitcoin.

“The idea was born from the understanding that the world monetary order is changing,” he told the publication.

    “There is what I call monetary convergence that makes us use different types of means of payment and exchange (cash, crypto, e-wallets, loyalty points, etc.) and the human contact point for that is an ATM that can transact multiple currencies, turning digital money into physical and vice versa.”

Argentina will usurp many other markets should the rollout be a success, as the majority of BTMs do not cater to both fiat and crypto simultaneously.

Last month, Australia announced plans to retrofit 500 machines with Bitcoin selling and purchasing functionality.

“Odyssey is the first global platform integrating fintech, cryptocurrency and cash [...] facilitating the movement of foreign exchange, commerce and reduction of transaction costs,” Ponceliz added.

Bitcoin ATMs as an industry are spreading fast but appear not to match demand.

High fees add to their lackluster performance compared to online exchanges, while promises of mass adoption have fallen flat in the past.

UK-based BTM operator Bitlish told Cointelegraph in May it would deploy a massive 5,000 of them across Europe before the end of 2017.

https://cointelegraph.com/news/argentina-jumps-on-bitcoin-atm-bandwagon-with-200-expected-in-october

Just rumors and conjectures. I think there a lot of ways to spare BTC money, except military needs in North Korea. Who said, that those hackers worked for Kim and his regime. They may be just local IT specialists/hackers with access to internet.

Cryptocurrency exchange BTC-e is beefing up support ahead of a planned trading relaunch this week.

BTC–e, which began allowing account withdrawals earlier this mont after a crackdown by U.S. authorities, announced today that it would begin accepting English and Russian-language support tickets through a new portal.

In that news update, BTC-e outlined that it would only be responding to certain queries (primarily related to withdrawals and deposits made between July 25 and August ) until it launches its new trading platform on September 15.

That the exchange would launch an expanded support functionality is perhaps a relief to some users. Signs on social media indicate some are still experiencing problems with their accounts, including some issues related to two-factor authentication. BTC-e's news update said that it would begin addressing 2FA problems "after [users pass] the verification on the new platform."

The move comes just over a month after BTC-e first declared its intention to relaunch, claiming that it had secured just over half of the funds it initially held.

Greek police, acting on a U.S. warrant, arrested one of the exchange's alleged operators in July, a move quickly followed by the seizure of BTC-e's web domain as well as the levying of a $110 million fine by the U.S. government. That alleged administrator, Alexander Vinnik, has meanwhile issued comments to the media declaring that he is innocent.

https://www.coindesk.com/btc-e-opens-user-support-tool-ahead-bitcoin-trading-relaunch/

The wait for more advanced bitcoin smart contracts might soon be over.

Spurred by last month's SegWit activation, bitcoin developers are reviving a plan that would see the world's most popular blockchain retooled with functionality long synonymous with ethereum and its more expressive code executions.

Known as Merkelized Abstract Syntax Trees (MAST), the concept has moved in fits and starts – Russell O'Connor, Pieter Wuille and Peter Todd put forward the idea, and Johnson Lau put together his own proposal last year – but the upgrade to SegWit makes the change not only possible, but possibly actionable soon.

So, Blockstream co-founder Mark Friedenbach is now breathing new life into the idea, putting forth a proposal this week that would have MAST deployed by way of soft fork (a backwards-compatible change to the blockchain's rule set).

Should it be enacted (and in the world of bitcoin upgrades, that's a big if), it would mean greater transaction flexibility. With it, users can require that a transaction will go through only if one of two or more things happen. For instance, a transaction could be redeemable only after a certain period of time, or only once two users give their blessing.

MAST also enables better user privacy, as it stores transaction data in a new way and doesn't reveal unused scipts to the public blockchain. And finally, it could also allow for increased scaling potential, since it enables less data to be stored on the blockchain.

Merging features

Getting to those benefits, though, means fusing together two technical features: pay-to-script-hash (P2SH) and Merkle trees.

In an email addressing bitcoin developers, Friedenbach outlines three Bitcoin Improvement Proposals (BIPs), including the code, for adding two scripts that would make it possible for users to take advantage of MAST.

He explained what his proposed idea would enable, writing:

    
The first BIP, "Fast Merkle Trees," proposes a different Merkle tree structure than the one currently used by bitcoin to store transactions in blocks. The second BIP, arguably the most important one, describes the opcode – MERKLE-BRANCH-VERIFY – which is a script that would allow users to make new types of transactions.

"In brief summary, MERKLE-BRANCH-VERIFY allows script authors to force redemption to use values selected from a pre-determined set committed to in the scriptPubKey, but without requiring revelation of unused elements in the set for both enhanced privacy and smaller script sizes," Friedenbach wrote.

The final BIP, "Tail Call Execution Semantics," is a pretty complex read, but – put simply – explains a new way for bitcoin smart contracts to terminate.

The road to upgrades

Despite how complicated the technology sounds, Friedenbach said in practice it's relatively straightforward.

"I believe that the implementation of these features is simple enough, and the use cases compelling enough that we could [roll out] these features in relatively short order, perhaps before the end of the year," he wrote.

Interestingly, though, he mentioned the change could be made one of two ways, by BIP 8 or BIP 9, two methods of making bitcoin upgrades which have had plenty of back-and-forth over the past year.

SegWit was originally proposed to deploy via BIP 9, which called for a certain percentage of miners to signal for the change before it could be deployed. Because miners didn't signal, SegWit stalled, and some argued BIP 9 gave miners (one group in an elaborate ecosystem) too much control over the future of bitcoin.

Because of that, some users have since rallied around BIP 8 as a better upgrading mechanism because it relies on bitcoin users and businesses rather than mining pools to enforce the change.

But Friedenbach's lack of stance regarding this upgrading mechanism raises the question: after all the drama over SegWit – which took nearly two years to activate – how will upgrades be made in the future?

The way users, companies and developers choose to go on MAST (if they decide it's the right step), might help determine that.

https://www.coindesk.com/master-plan-better-bitcoin-smart-contracts-go-live-year/

Bitcoin price gave up $500 in the last two days, the second time this has occurred in what appears to be a rollercoaster response to recent actions by Chinese regulators. The price lost 1.61% in the last 24 hours alone, during which nearly all of the top 10 cryptos lost value, pushing bitcoin’s price closer to $4,000 and leaving its market capitalization just over $68 billion, according to coinmarketcap.com.

Bitcoin fell from $4,649.16 on Sept. 8 to $4,108.69 today, a nearly 12% loss in two days. The price was in the $5,000 range on Sept. 1, its historic high point.

Price Resilience Tested

Today’s loss gives back some of the recovery following a clarification by the top three Chinese bitcoin exchanges – OKCoin, Huobi and BTCC – that Chinese regulators are not banning bitcoin exchanges. Caixin, a state owned financial news source, reported early on Sept. 9 that the government would shut down exchanges within its market. Bitcoin’s price fell to $4,075 within a few hours.

The price recovered to $4,310 within the same day after Samson Mow, Blockstream’s chief strategy officer, questioned the report, noting Caixin did not provide sources.

OKCoin, Huobi and BTCC, meanwhile, said they did not receive directives from the Peoples’ Bank of China (PBoC) and local regulators. These exchanges assured users they have always complied with government policies.

OKCoin released a statement that should the Caixin report be true, it would keep users’ funds secure.


Chinese Actions Impact Price

Bitcoin’s price has also been affected by the Chinese government’s ban, announced Monday, on initial coin offerings (ICOs). Bitcoin’s price fell by $500 in response this announced ban, but recovered to $4,550 within 24 hours.

Mow claimed bitcoin’s resilience in the face of these government actions reflects the lessening impact of government pressure compared to a few years ago.

News of the ban immediately sent crypto markets tumbling, with nearly 90 of the top 100 cryptocurrencies experiencing 24-hour price declines that were greater than 10%.


China Could Be Punishing Itself

Binance, a new exchange that has funded operators through an ICO token, responded to the ICO ban by stating today that the Chinese can no longer trade on its exchange.  Binance stated it will suspend trading and deposit services of tokens HCC, LLT, ELC, BTM and YOYO, but that withdrawals would continue. Binance said it will restrict all Chinese IP addresses from trading, although they will be able to make withdrawals.

Binance further said it will refocus its efforts serving its international audience which accounts for 84.5% of its users.

Ripple, the number four crypto currency based on market capitalization, was the only one of the top 10 to post a gain today, rising 2.84% to $0.21443 and a market cap just over $8 billion.

https://www.cryptocoinsnews.com/bitcoin-price-loses-500-again-amidst-confusion-over-chinese-regulators/

This week news.Bitcoin.com reported on the Japanese corporation GMO Group announcing plans to start a bitcoin mining operation using 7 nanometer (nm) semiconductor chips. Many bitcoiners are curious about this news as 7nm chips are not commercially produced at the moment. However, many people still understand the introduction of more advanced ASIC processors will be a complete game changer within the bitcoin mining industry.

GMOs 7nm Chips Will Be a Game Changer for Bitcoin Mining

This past week the Japanese internet firm, GMO Group announced the company is planning to join the bitcoin mining industry. One notable piece of information in the company’s statements revealed the new mining operation would utilize, “cutting-edge 7nm process technology for chips to be used in the mining process.” GMO Group further details they have an “alliance partner” with a semiconductor design company.

At the moment, 7nm semiconductor chips are not produced commercially, but many firms have announced they are planning on producing these chips in the very near future. There’s a good probability that 10nm and 7nm products may be widely manufactured by Q1 of 2018. Companies like Samsung, Intel, TSMC, and Globalfoundries are all racing towards the goal of creating 7nm chips in mass production. In the bitcoin mining world, specifically the application-specific integrated circuit (ASIC) industry, the current semiconductor chips used right now are between 16-14nm.

Smaller and More Efficient Chips Are Good for Decentralization

Throughout 2015-2016 rumors of 14nm-10nm chips being used for bitcoin mining started circulating throughout the community, but these chipsets haven’t seemed to materialize. Back in October of 2015, the organization Bi Wang (BW) announced the production of 14nm chips and claimed it sold out of its first batch very quickly, but the public sale of these miners has since been delayed.

If a few organizations produce more efficient mining chips, then many people believe it can further decentralize the bitcoin mining ecosystem. Bitcoin luminary Andreas Antonopoulos explains how this will happen at the D10e conference in San Francisco in the summer of 2016.

“[The 14nm chip] is a very good thing for decentralization,” explains Antonopoulos. “What it does is it extends the shelf life of mining equipment from 2-3 months of useable life cycle to almost two years, which levels the playing field among all participants in the system.”

The 7nm chip will not only transform the bitcoin mining sector but really will revolutionize the entire computer industry with a four-fold efficiency. 7nm semiconductors are very small but contain a 20+ billion transistors that will enable many devices to perform more complex computations. There could be a chance a mining company happens to partner with a company like Samsung who is investing billions towards manufacturing 10nm and 7nm chips. In fact, the company has formed an alliance with IBM and Globalfoundries to research and develop these 7nm chips so partnerships are not uncommon.

Read more: https://news.bitcoin.com/7nm-asics-will-bring-bitcoin-mining-to-a-whole-new-level/