China’s Alibaba Says New P2P Platform Is Not Crypto-Related



Following recent reports that Chinese e-commerce conglomerate Alibaba launched its own cryptocurrency mining platform, the company has issued an official statement Tuesday, Jan. 16, denying that its platform is related to either virtual currencies or their mining.

According to the official statement, published on the microblogging platform Weibo, Alibaba’s recently launched platform ‘P2P Nodes’ has been mistakenly reported as cryptocurrency-related.

The statement further clarifies that the platform is actually a peer-to-peer (P2P) Content Delivery Network (CDN) service provided by Alibaba Cloud designed to allow users to improve their network speed by sharing unused broadband connections with each other.

P2P Nodes credits users with points for validating data on its network, a concept which might sound similar to how Bitcoin miners earn bitcoins for processing transactions.

However, according to Alibaba’s statement, the points in P2P Nodes are not cryptocurrency-based, cannot function as a currency and can only be exchanged for items in the platform’s own gift shop.

The company’s statement further reads:

    “We reiterate that Alibaba Cloud has never issued a Bitcoin-like virtual currency, and it will not host any [cryptocurrency] mining platforms”

Amidst continuing reports of Alibaba’s new “mining platform”, the P2P Nodes website is no longer online, according to the CnLedger news outlet.


Source: https://cointelegraph.com/news/chinas-alibaba-says-new-p2p-platform-is-not-crypto-related

Bitcoin Backing Firms Feel Crypto Crash Pinch



With Bitcoin shedding 50 percent of its value in little under a month, those firms who vocally rode the wave on the up are now feeling the terrify drop in terms of loss of their own market value.

Companies such as Overstock, which has some of its fortunes locked up in the digital currency, as well as Square Payments, which announced plans to allow for some Bitcoin buying and selling, have been hit hard by this crash.


Taking a beating

While the numbers being tracked by these Bitcoin-backing firms are nothing compared to the actual losses being suffered by the cryptocurrencies, they are directly correlated.

Square showed a loss of five percent or $90 mln, this week as the company which is led by Twitter’s CEO Jack Dorsey ended with a value of $15.1 bln.

Overstock, a longtime supporter of Bitcoin going back to 2014, fell 11 percent ending with a value of $1.8 bln thanks to the roughly $200 mln loss.

This latest drop in the crypto market has been put down to the uncertainty emanating from Korea with their apparent bank of cryptocurrencies on the cards. This pressure from regulators also adds teeth to the fears in dealing with cryptocurrencies in major firms.


Renaming regrets

There are also instances where companies who have tried to jump on the Bitcoin and Blockchain bandwagon have found that the wagon is currently in the shop for repairs.

A number of firms have changed their focus, tact or simply their name, to profit from the hype and mania around cryptocurrencies. However, the other, ugly, side to this ecosystem is the violent volatility that needs to be stomached.

Kodak, perhaps better known for their cameras, fell eight percent. The company has announced plans to offer a cryptocurrency known as KodakCoin at the end of the month, initially sending shares up 60 percent on the day of the announcement.

Shares of Riot Blockchain, once a biotech firm dubbed Bioptix, shed 17 percent Tuesday, even shares of Long Blockchain, once Long Island Iced Tea, shed two percent.


Lessons up for grabs

While the future, as it always is, is uncertain for the crypto ecosystem, there are lessons to be learned in this latest Bitcoin ‘death.’ Bitcoin has been dead and buried countless times as its volatile nature is too much for some to take, sending them fleeing.

However, it has shown stronger and stronger resistance and ability to bounce back over the years and the crashes. Something that companies that are facing unprecedented dips will need to be aware of.

Bitcoin believer Max Keiser explains these movements in a graph he tweeted:

    This pattern will repeat all the way to Bitcoin $100,000 and beyond... pic.twitter.com/o9Wj4reBtv
    — Max Keiser (@maxkeiser) June 2, 2017


Source: https://cointelegraph.com/news/bitcoin-backing-firms-feel-crypto-crash-pinch

Is CryptoRuble Back? Launch Set For Mid-2019, Says Russian Blockchain Association



The Russian Association of Cryptocurrency and Blockchain (RACIB) has announced that the government’s long-discussed idea for a state-issued cryptocurrency, referred to as the CryptoRuble, will be launched in the middle of 2019.

The Russian government has been going back and forth on launching the CryptoRuble (known earlier as the Bitruble) since 2015. As recently as late December 2017 during a meeting on legislation for digital currencies, the Deputy Minister of Finance and the first Deputy Governor of Russia's Central Bank both stated that they did not think it was necessary for the state to issue its own cryptocurrency.

According to Arseniy Sheltsin, the head of RACIB, details of the CryptoRuble project will be officially presented and discussed in July 2018, and the coin itself should be issued a year later. The Government and the Central Bank of Russia are also expected to prepare regulatory measures for Initial Cryptocurrency Offerings (ICOs) and cryptocurrency mining by July 2018.

Early in 2018, one of President Putin’s counselors noted that the CryptoRuble could help the Russian government strengthen the economy by avoiding the impact of international sanctions against the country.

According to Russian crypto journal Forklog, the coin is set to be pegged to the ruble, non-mineable, and will be the only legal cryptocurrency in the country. The government hopes the CryptoRuble will attract foreign cryptocurrency investments.

Overall, the highest leaders in the Russian government have held mixed to negative opinions towards cryptocurrencies. At a state press conference on January 12, Putin stated:

    “It is known that there is nothing behind the cryptocurrency, and it cannot be a store of value, it doesn’t have any material value, and it’s not backed by anything...”

Russia’s Prime Minister, Dmitry Medvedev, also recently criticized cryptocurrencies at the Gaidar’s Forum in Moscow. He compared the virtual currency trend with the dotcom bubble and suggested that most cryptocurrencies are likely to cease to exist, while Blockchain technology will remain, declaring:

    “We can not completely exclude the scenario that took place at the beginning of the 90s when many companies arose on the basis of the developing Internet technology and in the beginning of the 2000s those companies mostly disappeared from the scene.  Nonetheless, the technology itself not only survived but currently plays an important role in our life. In a likely manner cryptocurrencies may disappear in several years, but the technology which stands behind them, I mean blockchain, will become a part of our everyday reality. This scenario cannot be denied,”

In response to the Russian government’s recent critique of cryptocurrencies, the CEO and Chairman of the Executive Board of the largest Russian bank Sberbank Herman Gref called on the authorities to not ban virtual currencies. Gref considers both cryptocurrencies and Blockchain to be the “new huge technologies whose power cannot be realized at the moment.” He also declared “in no circumstances should [cryptocurrency] be banned”.

Several other countries have also announced plans to introduce their own state-issued cryptocurrencies, such as Venezuela and Senegal.


Source: https://cointelegraph.com/news/is-cryptoruble-back-launch-set-for-mid-2019-says-russian-blockchain-association

Bitcoin Is Back Above $11,500, But Bulls Not Out of the Woods Yet



Despite a sharp price recovery to over $11,500 today, bitcoin's bulls are not out of the woods yet, the price charts suggest.

Coindesk's Bitcoin Price Index (BPI) has climbed 25.9 percent from the eight-week low of $9,199.59 hit yesterday at 15:44 UTC. As of writing, bitcoin (BTC) is trading at $11,590 levels.

The world's largest cryptocurrency by market capitalization has appreciated by 8 percent in the last 24 hours, according to data source OnChainFX.

However, the investor community isn't convinced by the move, and comments on social media show that some believe the overnight recovery is nothing more than a "dead cat bounce."

The price chart analysis indicates that only a close (as per UTC) above $12,500 (prices as per Coinbase) would add credence to rebound from sub-100-day moving average (MA) levels and confirm that a short-term bottom is in place.


Bitcoin chart: Bottom in place?



    * As seen on the chart above (prices as per Coinbase), bitcoin has consistently left higher lows at/below the 100-day MA line.
    * On the previous two occasions, the relative strength index (RSI) showed oversold conditions.
    * As of today, the RSI is staying within the oversold territory (above 30.00). Bitcoin's drop below the 100-day MA yesterday was short-lived.

The situation looks similar to that seen in mid/late March 2017, when BTC prices flirted with 100-day MA for more than a week before moving higher. Back then, the RSI was just shy of oversold conditions

Still, it appears to be too early to call a bottom.

Yesterday's long-tailed candle (big difference between intraday low and UTC close) does show strong dip demand. However, only a positive close today would validate the sharp recovery from $9,005 (previous day's low).


Bitcoin chart: Bulls need a close above $12,500




The above chart (prices as per Coinbase) shows:

    * A long-tailed candle indicating dip demand near the ascending trendline (drawn from July low and September low) support.
    * Lower highs and lower lows as indicated by the descending trendline and a drop below $12,500 on Tuesday.
    * 5-day and 10-day MAs carry a strong bearish bias (sloping downwards).
    * The RSI remains below 50.00 (in the bearish territory).

Except for the first point, all other factors favor a drop to $8,690–$8,052 (61.8 percent Fibonacci retracement of 2017 rally).


View

    * The recovery from $9,005 has neutralized the immediate bearish outlook.
    * The daily chart suggests that a historical pattern (higher lows along the 100-day MA) could be repeated.
    * However, only a close (as per UTC) above $12,500 (Dec. 30 low) would confirm a bottom is in place at $9,005 (previous day's low) and open the doors for a rally to $15,800 (descending trendline hurdle) and beyond.
    * The sell-off would resume if BTC fails to hold above the 100-day MA over the next 48 hours. In such a scenario, prices could test $8,690–$8,052 (61.8 percent Fibonacci retracement of 2017 rally).


Source: https://www.coindesk.com/bitcoin-is-back-above-11500-but-bulls-not-out-of-the-woods-yet/

Hardware Wallet Maker Ledger Nets $75 Million in Series B Funding



Ledger, the France-based maker of hardware cryptocurrency wallets, has raised $75 million in Series B funding.

According to an announcement today, the new round was led by the U.K.-headquartered investor Draper Esprit, and also included Draper Venture Network, FirstMark Capital, Cathay Innovation, and Korelya Capital. Existing investors such as CapHorn Invest, GDTRE and Digital Currency Group also participated in the round.

Ledger said it plans to use the new cash primarily to scale its business amid the growth in the popularity of cryptocurrencies.

Eric Larcheveque, CEO of Ledger, commented:

    "These funds will be used to keep investing significantly in R&D while scaling our operations and deploying our teams globally."

In the release, the company also said that it is developing a new storage solution for managing crypto assets, named the Ledger Vault. The product will be aimed at institutional investors such as banks and hedge funds.

Launched in 2014, Ledger offers a range of hardware wallets for storing cryptocurrency private keys. The new funding comes almost a year after the firm closed a $7 million Series A round in March 2017.


Source: https://www.coindesk.com/hardware-wallet-maker-ledger-nets-75-million-in-series-b-funding/

South Korea: Gov’t Officials Accused of Crypto Insider Trading



The past week of confusion and friction over cryptocurrency regulation in South Korea continues to unfold as accusations surface of government officials practicing insider trading, local news source Chosun reports.

According to the local reports on Thursday, Jan. 18, some government officials from the Financial Supervisory Service (FSS), who were aware of forthcoming announcements about either a full ban or significant restrictions on trading, bought and sold cryptocurrency just before that information went public.

FSS chief Choi Hyung-sik confirmed the suspicions in a meeting Thursday, admitting:

    “We have confirmed the intelligence. We have confirmed that some public officials have done such an act”

The allegations of activity tantamount to corruption further weaken Seoul's position after its highly-unpopular and contradictory announcements on cryptocurrency regulation caused a mass public outcry.

A public petition calling for a reversal of the restrictions as well as the firing of some high-profile ministers has now attracted more than 200,000 signatures, meaning it requires a government response within 30 days.

Meanwhile, the legality of any insider crypto trading based on classified knowledge is not clear at the moment. Ironically, cryptocurrency’s undefined legal status means the practice cannot be treated as trading involving fully-regulated instruments.

A FSS official stated:

    “There is no code of ethics and no code of conduct for virtual currency investment in FSS regulations, so it’s difficult to say about punishment at this stage.”

Chosun also points out that the officials could be accused not of insider trading, but more generally of “the misuse of internal information.”


Source: https://cointelegraph.com/news/south-korea-govt-officials-accused-of-crypto-insider-trading

Poloniex Displaying Incorrect Customer Balances, Experiences Customer Service Woes



According to users on Poloniex’s unofficial subreddit, the exchange has not be crediting user account balances when orders are cancelled. One user wrote:

    “When I cancel any open orders, the original USDT value isn't returned. Usually, the intended buy value is returned to my total and everything is fine but just noticed today that every time I cancel an order, the "Estimated value of holdings" (DEPOSITS & WITHDRAWALS tab) gets smaller and smaller and never returns to the original total.”

Poloniex responded via their official Twitter account today, saying:

    We're investigating reports of canceled orders not crediting back to account balances.
    — Poloniex Exchange (@Poloniex) January 17, 2018

Several reddit users have since chimed in, saying that their account balances had been restored to the appropriate level.


But wait, there’s more

Other redditors have been complaining of their account balances reflecting inaccurate or even negative amounts:

    “My margin account spazzed out a few minutes ago. My positions are in profit, and still showing as such individually, but I am suddenly seeing alerts of "Forced Liquidation" and a Margin of ~16%. Thankfully, none of my positions have actually been liquidated but I am now effectively unable to manage any of them due to the margin being so low. I have experienced similar issues with the margin system before and they've typically righted themselves, but this is extremely inconvenient. Hopefully, they're just having a system issue and everything will be restored.”

Poloniex has responded to this issue as well, indicating that they are working to restore correct balances and will be pausing all forced liquidations:

    Some balances are off and will be corrected. Forced liquidations are turned off temporarily.
    — Poloniex Exchange (@Poloniex) January 17, 2018


Customer service

While virtually all cryptocurrency exchanges have faced significant growing pains, users have been complaining about Poloniex’s customer service issues for nearly a year. Many have complained of extremely long response times to tickets, with one user claiming he’s waited over 158 days for a response to his ticket.

Another user writes:

    “Been waiting on withdrawal verification for 3 months!! This is crazy!! Do I have to get a lawyer? Can't get access to my own money!”

The author of this article has personally experienced delays in excess of one month when withdrawing funds. Despite having the highest verification level and using 2FA, on three separate occasions this author has had withdrawals sit in “awaiting approval” status for weeks, despite numerous support tickets asking for assistance.



Source: https://cointelegraph.com/news/poloniex-displaying-incorrect-customer-balances-experiences-customer-service-woes

GDAX Starts BCH Trading, Users Angry About Focus



GDAX has started trading Bitcoin Cash (BCH) this morning as of 9 AM PST, with little fanfare. The status update page for GDAX indicated that all initial testing had concluded as of 11:25 AM, with full functionality being restored.



Bitcoin Cash Updates

The addition of BCH on GDAX follows the addition of the hard fork coin on the Coinbase site, which saw the price of BCH rocket to new all-time highs. While Coinbase owns GDAX, they are not the same entity. Since the announcement, Coinbase has made no further promises of future additions, however.

The price of BCH responded strongly, with increases on the day around 12%. At press time, the coin was trading at $1742.



Bitcoin Cash Charts


Wrong focus?

However, the cryptocurrency community was not particularly thrilled with the news, given the slowness of GDAX to implement the SegWit protocol. For example, Jameson Lopp, an engineer at BitGo, tweeted:

    It's not a new revelation that a significant cause of bitcoin network congestion is from popular services such as @blockchain, @coinbase, and @gemini who are using block space inefficiently. If you don't want to contribute to the problem, don't use them. https://t.co/f1AO2ePRMw
    — Jameson Lopp (@lopp) January 12, 2018

Coinbase had made promises regarding SegWit integration at the end of last year, but have been slow in actually fulfilling them. SegWit would allow for cheaper and faster transactions. Other services are also slow in adding SegWit support, including Blockchain and Gemini.

Others responded to the news tweet in like manner. User Chris Given replied:

    How about you focus on segwit and batching transactions... Thanks!!
    — Chris Given (@Piffer55) January 15, 2018


Source: https://cointelegraph.com/news/gdax-starts-bch-trading-users-angry-about-focus

Get ‘Em While They’re Cheap? Two-Day Crypto Market Slump Offers Steep ‘Discounts’



The second day of losses throughout cryptocurrency markets is giving would-be traders a chance to buy that may not be repeated.

Bitcoin dropped below $10,000 on Cointelegraph’s price index Wednesday, Jan. 17. On the same day, Ethereum (ETH) went below $900, marking a price slide of over 30% for both assets this week.

Community and industry figures have reacted with mixed emotions to the downturn, which mimics behavior seen in January over the past three years.

    “Unless you can watch your stock holding decline by 50% without becoming panic-stricken, you should not be in the stock market.” – Warren Buffett. (What’s the numbers for the crypto market?)
    — Parabolic Trav (@parabolictrav) January 17, 2018

    If #Bitcoin was a bus. pic.twitter.com/mcDcj0Cvf5
    — WhalePanda (@WhalePanda) January 17, 2018

Data shows that Bitcoin set its annual low in the second week of January for 2015, 2016 and 2017:

    2015 - Low was Jan 15
    2016 - Low was Jan 16
    2017 - Low was Jan 12
    2018 - Low ....
    — Bails (@iancbailey) January 16, 2018

Across major altcoin markets, assets are also currently being traded at steep discounts versus just a week ago, when many were still beating all-time highs in USD.





The slide against fiat is fuelling a fresh round of mainstream media speculation Wednesday, meanwhile, with various publications hinting at the possibility of Bitcoin’s alleged ‘bubble’ having burst.

“Did Bitcoin just burst?” Bloomberg writes citing analysts who compare current price performance to historical commodity bubbles.

A curious U-turn in the industry came from highly-critical CNBC. Even as prices had fallen 20% Tuesday, the network came out with a piece explaining why Bitcoin “skeptics” were “wrong” to suggest it has no value.

“Many people think that bitcoin is a bubble, and that's predicted on the concept that bitcoin has no value. But there's reason to believe that that just isn't true,” CNBC’s article concludes.

    “By definition, bitcoin is scarce. And the cryptocurrency may have utility as a superior way to store and exchange wealth.”


Source: https://cointelegraph.com/news/get-em-while-theyre-cheap-two-day-crypto-market-slump-offers-steep-discounts

Critical ‘Monsieur Bitcoin’ Appointed Head of French Crypto Regulatory Task Force



France’s Minister of the Economy Bruno Le Maire has appointed an open Bitcoin critic to head a task force examining cryptocurrency regulation, local source Les Echos reports Monday, Jan. 15.

Jean-Pierre Landau, who called Bitcoin “the tulips of modern times” four years ago, will now head France’s efforts to “better control” its regulatory evolution.

“We want a stable economy,” minister Le Maire told reporters in a session during which he announced Landau’s appointment.

    “We cannot allow speculative risk and the possibility of misappropriation [of funds] linked to Bitcoin.”

Despite Landau’s past opposition, Les Echos describes him as “Monsieur Bitcoin,” Mister Bitcoin.

Landau’s tasks will also involve researching how French authorities can stop “tax evasion, money laundering and criminal and terrorist activity financing” using cryptocurrency.

Le Maire himself has become a vocal proponent of legislative improvements for cryptocurrency at an international level in recent months.

In December, he announced his desire for Bitcoin to be a topic of debate at the forthcoming G20 Summit in Argentina scheduled for March.

“There is evidently a risk of speculation. We need to consider and examine this and see how... with all the other G20 members we can regulate Bitcoin,” he told local news network LCI.


Source: https://cointelegraph.com/news/critical-monsieur-bitcoin-appointed-head-of-french-crypto-regulatory-task-force

South Korean Petition Against Crypto Regulation Gets 200K Signatures, Government Must Respond



Tuesday morning, Jan. 16, a South Korean petition against the regulation of virtual currency reached the amount of signatures required to compel a response from the government.

The online petition calling the government to reconsider its stance on cryptocurrency regulation was started on the website of the South Korean presidential office on Dec. 28.

On January 16, the petition obtained more than 212,700 signatures. According to the website of the presidential office, the minimum required for a government response is 200,000, thus officials are expected to react to the requests listed in the petition in the next 30 days.

The petition asks the government to renounce proposed trading regulations that would ruin “a happy dream” that has been enabled by digital currencies.

However, the petition still supports some of South Korea’s cryptocurrency regulations, such as banning anonymous trading accounts. Notably, South Korea’s largest cryptocurrency exchange Bithumb also supports “the right set of regulations”.

Worried about a ‘cryptocurrency obsession’ in the country, the South Korean government started considering a range of regulatory measures for crypto.

Some of the proposed regulations include banning anonymous virtual trading accounts, forbidding underaged investors and foreigners from investing in Bitcoin and other cryptocurrencies on the Korean market, and even banning cryptocurrency trading outright.

Cryptocurrency investing has become especially popular among South Korean youth since the country’s economic situation is notably hard for the young population. According to Quartz, the youth unemployment hit an all-time high rate of 12.5% in February 2017, compared to the average overall unemployment rate of 4.2%.

Overall, the stance of the South Korean government towards cryptocurrency regulation has been contradictory during the last month, made particularly confusing by the Justice Minister’s informal proposal of a cryptocurrency trading ban, which was then widely misreported by mainstream media.


Source: https://cointelegraph.com/news/south-korean-petition-against-crypto-regulation-gets-200k-signatures-government-must-respond

World’s Fourth Largest Bank MUFG To Launch Own Cryptocurrency In 2018



Japan’s Mitsubishi UFJ Financial Group (MUFG), the fourth largest bank in the world, will launch its own digital currency MUFG coin, local news publication Mainichi.jp reported Sunday, Jan. 14.

MUFG is the largest financial company in Japan and is set to become the first Japanese bank to issue a virtual currency, Mainichi.jp reports.

The bank had plans to develop a cryptocurrency as far back as 2016. According to Mainichi.jp, the launch date has now been finalized and is intended to take place in the FY 2018.

Based on Blockchain technology, MUFG coin will allow users to conduct instant person-to-person transactions as well as a shop with lower fees.

MUFG stated the company will process all the transactions from its cryptocurrency’s network, claiming that such an approach will help improve the stability of the coin.

The bank also plans to peg one MUFG coin to one Japanese yen in order to maintain people’s confidence in the new cryptocurrency.

Another local company, the e-commerce giant DMM Group, launched its own 7-asset cryptocurrency exchange on Jan. 11, which highlights the growing level of Blockchain tech adoption in Japan.

In contrast to the governments of neighboring China and South Korea, the Japanese government has adopted a more welcoming approach to regulating the cryptocurrency market, which has likely had a positive impact on the growth of the industry in the country.


Source: https://cointelegraph.com/news/worlds-fourth-largest-bank-mufg-to-launch-own-cryptocurrency-in-2018

If not bankers, who would do such a thing?
What is happening right now is far beyond the whales.

PLEASE, TAKE A LOOK AT THE MARKET TODAY!





Bankers are just doing this to blackmail bitcoin and altcoins to force governments around the world ban cryptocurrencies.

What really happened with your myetherwallet?
MEW has a bug and I know how to navigate around.
I don't need anything from you... Just tell me what really happened via PM... Maybe I can help

Is Global Front on Bitcoin Regulation Possible?



On a day where confusing news continues to emanate from South Korea and China on new proposed bans and restrictions on Bitcoin, a member of the board of Germany’s Bundesbank has called for a united global regulatory front.

Joachim Wuermeling of Bundesbank believes there is very little chance of containing this digital global phenomenon with differing national rules across the globe. With international co-operation in regulating Bitcoin comes a chance for regulators to take control, says Wuermeling.


The effect of regulation

There has been increased regulatory pressure on Bitcoin and the entire cryptocurrency market recently, which has been felt across the board. The confusion that began in Korea caused a major dip, and even the retraction of those statements helped the market grow.

Within these regulatory moves, from individual national countries, there are often powerful moves seen across the entire global cryptocurrency market. However, they are never really big enough to bring it under full control.

These are case-by-case regulations, and these instances are not strong enough on their own for the free running cryptomarket to be constrained by.

“Effective regulation of virtual currencies would therefore only be achievable through the greatest possible international cooperation because the regulatory power of nation states is obviously limited,” Wuermeling said.


Two sides to the digital coin

The issue is that there are two very different views to regulating Bitcoin, and these views can differ from country to country.

Japan is one of the strongest supporters of the digital currency market, giving Bitcoin currency status last year. However, just across the Sea of Japan, on the mainland, China has been the lead actor in the war against Bitcoin.

First there was the ICO ban, then the ban on exchanges, and now there is more bad news for those who even deal in exchange-like services.

It is hard to find an agreeable position on digital currencies for nations with so many torn between different ends of the scale. This is one of the reasons why regulation is so difficult.


Is it needed?

There is also the discussion of the need for regulation as it seemingly flies in the face of what Bitcoin is trying to accomplish with its decentralized nature. Cal Evans, an International Technology Lawyer from London, says:

    “As the cryptocurrency “grows up” it has had to overcome some serious compliance and regulatory problems internationally. These regulatory issues are numerous in nature depending on which country you read this in. Yet one problem seems to slip under the radar time and time again. Money Laundering.”

Adding to the devious nature, an unregulated currency brings London’s Kingston University economics professor Steve Keen echoes similar sentiments.

    “You can’t be deregulated in a system where there will be criminal attacks. The code itself is clearly not foolproof. People will find their way in, forks will be forced upon them, whether they want them or not. In that situation, regulation may be the only future.”


Is it possible?

It is clear that Bitcoin and other cryptocurrencies will continue to exist in ways that many regulators disapprove of unless there is a united front on wresting the digital currency economy under global control.

Even banning the stuff in countries in China has only proved to be a speed bump in the road, Bitcoiners, and the likes can always find a way.


Source: https://cointelegraph.com/news/is-global-front-on-bitcoin-regulation-possible

Cryptocurrencies Are Doomed to Fail, But There’s Money to be Made, Says an Investor Officer



The traditional diversified portfolio of investments will have a host of assets in varying risk brackets, but for a traditional investment, officer cryptocurrencies could seem too speculative to be part of any portfolio with a wealth preservation focus.

The caveat is that while not all cryptocurrencies are guaranteed to stick around forever, there are still profits to be made by a savvy investor that chooses a long-term winner early on.


Money to be made

An investment officer from Credo Wealth, Deon Gouws, is personally interested in digital currencies, but as chief investment officer for a traditional financial institution, is understandably nervous. He says:

    "Most cryptocurrencies we see launching today are likely to fail, but there’s still a lot of money to be made if you can identify the long-term winners successfully and early.”

Mike Novogratz, a well-known investor who has been bullish on Bitcoin for some time now, has made statements indicating agreement. He has called the asset a bubble, but one where there is money to be made. Novogratz said:

    “This is going to be the largest bubble of our lifetimes. Prices are going to get way ahead of where they should be. You can make a whole lot of money on the way up, and we plan on it.”


Technology over profiteering

As the cryptocurrency space has evolved, prices have risen astronomically with the influx of interest from the mainstream market. Those who have joined the space in recent times have seen the likes of Bitcoin build to as high as $20,000.

However, those who have joined this space in their droves have clearly done for the profiteering that has taken place, and the promise of more to come. This then means that there is more of a diluted core of users who are in it to see the technology thrive and flourish.

In turn, this not only adds to the speculative nature of the market but also to the bubble-nature that Novogratz refers to. The entire crypto space may not be as prone to a big collapse, or a catastrophic failure like some flimsy ICOs, but there are still concerns for those looking for pure profit.


Bubble territory

The real issue in the market being flooded with people in it to make a quick buck is that the potentially revolutionary technology can be pushed towards bubble technology. It is not the product that is prone to being in a bubble. It is the way in which it is used or perceived that leads to bubbles being formed and popped.

The dot-com bubble has shown a lot of similarities to Bitcoin’s rapid growth, but that does not mean dot-com businesses or digital businesses, are always going to be bubbles. And the same applies to Bitcoin.

In the dot-com boom, people were entering the market to make money, and they were throwing money at anything with .com on the end. It is happening today too, with Bitcoin and Blockchain, but that does not mean a bubble is a definite.

If people continue to flood the cryptocurrency market intent on only making money off it, rather than appreciating it as a new wave of technology, then Gouws’ opinion may be spot on. People will enter have a direct say in which way something like this moves, with their speculative investing.

There needs to be a concerted push to appreciate the technology, and adopt it for mainstream uses if Bitcoin, and other cryptocurrencies, are to be a long term success.


Source: https://cointelegraph.com/news/cryptocurrencies-are-doomed-to-fail-but-theres-money-to-be-made

BlackWallet Hack: $400K In Stellar Stolen, Hosting Provider Possibly At Fault




A DNS hijack has led to hackers withdrawing $400,000 worth of Stellar Lumen (XLM) coins from wallets hosted by Blackwallet.co without users’ permission.

As multiple sources report, on Saturday, Jan. 13, attackers took control of BlackWallet’s hosting server, changing settings to allow code to run which automatically sent customer balances over 20XLM to an address under the hackers’ control.

Almost 670,000 tokens are currently missing as a result of the attack, likely explaining XLM’s almost 23 percent dive over the past 48 hours.

On social media, desperate efforts to contain the threat before the service was taken offline saw BlackWallet’s developer caution users to move their funds elsewhere if they had entered their wallet information since Saturday.

The developer, known as u/orbit84 on Reddit, wrote:

    “I am sincerely sorry about this and hope that we will get the funds back. I am in talks with my hosting provider to get as much information about the hacker and will see what can be done with it. If you ever entered your key on blackwallet, you may want to move your funds to a new wallet using the stellar account viewer…”

A Reddit user u/nuclearping has apparently managed to identify the hosting provider which services BlackWallet as 1&1.

If that is the case, the event would be the second such incident involving 1&1. In August last year, hackers persuaded a customer service representative at the company to cede control of Classic Ether Wallet’s domain from its original owner.

The result was mass losses of funds and sensitive user information being stolen, sources reported at the time.

The BlackWallet developer meanwhile added an edit to his original Reddit post asking community members not to “spread rumors” about the German hosting provider.


Source: https://cointelegraph.com/news/blackwallet-hack-400k-in-stellar-stolen-hosting-provider-possibly-at-fault

German Central Bank Director: Crypto Regulations Must Be International




Joachim Wuermeling, a member of the board of Germany's Bundesbank, has suggested that any attempt to regulate cryptocurrencies would require international cooperation. Speaking at an event in Frankfurt on Jan. 15, the director told listeners:

    "Effective regulation of virtual currencies would therefore only be achievable through the greatest possible international cooperation, because the regulatory power of nation states is obviously limited.”

After the Chinese government banned cryptocurrency exchanges from operating domestically in September, many Chinese crypto traders simply moved their activities to exchanges in Japan, and possibly South Korea, according to some analysts.

Many countries globally have already attempted regulatory control over cryptocurrencies in different ways. China has created the most strict controls, banning crypto exchanges and ICOs and now attempting to close all 'exchange like services’.

South Korea’s Justice Minister recently proposed a trading ban and the government has put other controls into place in the face of what some see as a “cryptocurrency mania” in the country.  Russia has suggested some measure of legality for trading on ‘official exchanges’.

The US is seeing regulation of cryptocurrency both on a federal and state level. The Securities and Exchange Commission (SEC) issued multiple warnings for crypto investors last year, and has already taken action against Blockchain or crypto-related companies. On the state level, regulators in Texas recently issued a cease and desist order to a UK-based crypto company allegedly selling unlicensed securities to Texas residents.


Source: https://cointelegraph.com/news/german-central-bank-director-crypto-regulations-must-be-international