Bitcoin currency

Lumpy Talbot

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Disturbing to hear Fed Chairman Jerome Powell warning Facebook not to go ahead with its Libra cryptocurrency until issues have been addressed. Bitcoin is down 12% on this. Clearly the financial elites and the bankers are trying to quence the new financial revolution. The future will be libertarian.
Well a former 'queen of wall street' called Blythe Masters is mucking about at Digital Asset Holdings at the moment. She (apparently) left JP Morgan some years back, taking the blame for JP Morgan running wild on derivatives in the late 1990s and 00's.

I reckon she is still working for JP Morgan on the quiet. And is only at Digital Asset Holdings on behalf of Morgan, trying to work out how they can absorb this disruptive technology.

And of course Jamie Dimon, the current head-narcissist at the bank, is often in the press wailing loudly about how blockchain and cryptocurrencies are the work of the devil.

Whereas of course packaging up shyte and risky derivatives, getting analysts to rate it triple A and flogging it on is hugely ethical of course.

JP Morgan are certainly sh*tting bricks about the disruptive implication of blockchain and cryptocurrency for the 'traditional' investment and retail banking sector.

That's fairly obvious.

 


Dame_Enda

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Congress and Trump bending over for the Big Banks. Trump has just told a Far Right meeting on social media that he's against Bitcoin and Facebook's planned virtual currency Libra. The bankwhores in Congress are summoning the head of Facebook's Libra project before the DC Inquisition. For once (okay maybe thrice) Trump is wrong about something. Trump is also going against praise for Bitcoin in 2018 by Steve Bannon.


Virtual currencies should hopefully one day replace fiat currency.
 
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Dame_Enda

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The US Senate is holding a hearing today (livestream below) on Facebook's planned cryptocurrency Libra. Will Trump or his successor allow it to proceed? In the House, Finance Committee Chairperson Maxine Waters sounds strongly opposed. Senator Pat Toomey (R-PA) says it would be premature to dismiss the potential benefits of Libra. Senator Jon Tester (D-Montana) says he has concerns. The head of Facebook's Libra currency says Libra will be backed by a reserve.

 
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Wasmanormouse

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The US Senate is holding a hearing today (livestream below) on Facebook's planned cryptocurrency Libra. Will Trump or his successor allow it to proceed? In the House, Finance Committee Chairperson Maxine Waters sounds strongly opposed. Senator Pat Toomey (R-PA) says it would be premature to dismiss the potential benefits of Libra. Senator Jon Tester (D-Montana) says he has concerns. The head of Facebook's Libra currency says Libra will be backed by a reserve.

The eventual outcome probably hinges on who is able to bung the parties and individual politicians the most. Never forget, the business of America is business. As Trump is in the corner of American IT already, in the case of Huawei, for exactly the same reason and sucking up funding from same source no doubt, he might be a bit more open to shafting the big banks - which would be the net result of supporting Zuckerburg - on this one. There would be some killing to be made if anyone - including, possibly himself, knew which way the wind is going to blow him on this one.
 

Dame_Enda

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Apparently Libra will be backed by a basket of currencies and be based in Switzerland, the latter bit attracting a lot of questions in the House hearings which followed the ones in the Senate. A critic of Libra called Demirors (at 7.41 mins) told the House that Libra isnt really a cryptocurrency. She says while Facebook says they will decentralise it, she doesnt see how they would do that.

 

Lumpy Talbot

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Ah... Switzerland. A high secrecy jurisdiction which harbours some of the worst criminals in the world.

That's reassuring.
 

Dame_Enda

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A Chinese "Internet Court" in Hangzhou this week ruled that Bitcoin is a "virtual property". Suggests the PRC may be coming round to cryptocurrency a bit. Came in a case where a man was suing for cryptocurrency that he lost when an exchange went down. While the court did not find in favour of the man, it's significant that the court ruled it as "virtual property", because that sortof puts it on a sortof legal footing.

Authoritarian regimes like China and Russia at first talked about banning cryptocurrency. But when sanctions and tariffs came along. they began to see it as a way of avoiding those things.

In 2017 the Bank of China issued a moratorium on Bitcoin trading, but that just pushed some to other cryptocurrencies like Tether. So it may be that the court ruling means Bitcoin is actually legal in China.
 
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Lumpy Talbot

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Bet the Chinese are all over this distributed ledger technology caper like a rash. They've had a high level group examining the best way to bring their trading currency to the global market in a more meaningful way for quite some time.

The Yuan, or its official external twin, called the Renminbi (sp?) became one of the few internally recognised exchange currency alongside the dollar, sterling, euro without a lot of fanfare some years back.

The new Silk Road infrastructure-capture policy along that trade route right up to Rotterdam and the Thames valley is first priority I think but the Chinese are certainly looking at new technology with a view to utilising it to circumvent blocking from western interests in this area.

Wouldn't surprise me at all if China decided it was a great leap forward and found a way to weaponise it, at least economically.
 

Dame_Enda

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Bet the Chinese are all over this distributed ledger technology caper like a rash. They've had a high level group examining the best way to bring their trading currency to the global market in a more meaningful way for quite some time.

The Yuan, or its official external twin, called the Renminbi (sp?) became one of the few internally recognised exchange currency alongside the dollar, sterling, euro without a lot of fanfare some years back.

The new Silk Road infrastructure-capture policy along that trade route right up to Rotterdam and the Thames valley is first priority I think but the Chinese are certainly looking at new technology with a view to utilising it to circumvent blocking from western interests in this area.

Wouldn't surprise me at all if China decided it was a great leap forward and found a way to weaponise it, at least economically.
Yes. They've had a cake and eat it type approach. In fact most Bitcoin "mining" is happening on computers in China. Cryptocurrency mining is where you get your computer to acquire bitcoins by solving complex mathematical puzzles, though it requires a lot of electricity (around the same amount of electricity as consumed by the island of Ireland is used on bitcoin-mining apparently worldwide) and apparently you'd need to be part of a mining syndicate to make serious money from it.
 

Lumpy Talbot

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Well strategically the Chinese and Russians are closer in touch with their respective underworlds via Triad connections for the former and the Oligarch agreement among the St Petersburg Club in Russia.

Of the three major economies (China, Russia, the US) involved currently in something of a technological arms-race in the intersection of the venn diagram between AI, Robotics and the implications of Big Data processing and insight, both China and Russia enjoy a clear level of control and threat level to its crime syndicate bosses, whereas in the US I suspect the state's control over its rogue actors (mostly corporations) is significantly weaker.

That is because corporations in the US have effectively over time hollowed out the state for reasons of influence and profit. Paradoxically, for a state which was fanatical about globalisation between the 1950s and around the turn of the century, we are now seeing the US reframe globalisation as possibly a bad thing. Mostly because they are now on the wrong end of it.

Supporting example: the US government has in the past attacked corporations and dismantled them where the corporation's interests were seen to be too influential and a threat to the state: (Standard Oil).

It is currently unimaginable for a US administration to do that, politically. Which speaks of diminished controls over parasites for the US government and far too much success for K Street corporate lobbyists.
 

Dame_Enda

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News from India. The Finance Minister was asked a question in parliament on whether Bitcoin is illegal or not in the court. He replied that the govt hasnt banned them and a committee is looking at developing a regulatory framework. However a few weeks ago the alleged text of a proposed bill outlawing cryptocurrency trading and mining with punishments of up 10 yrs in prison was leaked. Not entirely clear whats going on, especially as the minister recently said the committee has submitted its report to the govt.
 

Lumpy Talbot

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Heh. Always entertaining, those occasions when some parliament somewhere decides it might spend some time pissing in the wind by 'banning' or making illegal some inevitable tech development.

Especially something over which it has no control or influence whatsoever.
 

Dame_Enda

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The President of the German Bundesbank, Jens Weidmann today has come out at the G7 this week in support of Facebook's planned "Libra" currency. Says he cannot understand the scepticism around it.
 

Dame_Enda

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The Indian govts intra-ministerial report on cryptocurrency regulation is out. It calls for a total ban on all cryptocurrency mining and trading, with punishments of up to 10 years in prison. It leaves open the question of a sovereign cryptocurrency however.

Just in: Iran has just announced it's legalising cryptocurrency-mining. This is a change, as last month people running a mining-farm were arrested. Its not yet clear whether Iran will allow the use of cryptocurrency for domestic purposes. The Central Bank of Iran proposed a ban on that recently but is facing pushback.
 
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Dame_Enda

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Coindesk,com is reporting that the Maduro regime in Venezuela converted airport taxes into Bitcoin and other cryptocurrencies to avoid US sanctions. The funds were then transferred to exchanges in Hong Kong, Hungary, Russia and China and converted and sent back to Venezuela.
 

Lumpy Talbot

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Not a bad call for any country facing sanctions. Could be curious enough that US sanctions as an economic weapon could be undermined by distributed ledger technology and associated virtual currencies.

I'd bet my bottom bitcoin that the Chinese are researching that area like mad given their movement to bring the Yuan to international markets.
 

Dame_Enda

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IRS has sent out thousands of letters to US citizens it says havent reported cryptocurrency transactions. IRS claiming they owe taxes on them.

Of course this could run up against case law which ruled that Bitcoin is not a currency but rather is a commodity. If that is so, it could call into question the IRS's argument if it comes to court. Trump has made no secret of his disdain for cryptocurrency, no doubt egged on by Wall Street bankers afraid of competition. While the 4 cases in the link above did state that Cryptocurrencies can be regulated as commodities, I don't think they related to taxation specifically but rather to the question of unlicensed traders and fraud.

 
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Dame_Enda

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A company called Bakkt is trying to get approval from the NYDFS (NY Dept of Financial Services) to launch a cryptocurrency futures-trading market. The sticking point right now is it needs approval for its secure storage of private keys. Bakkt hopes to launch in Q3 2019. Some speculate that this might cause the next bull-run in the Bitcoin price. But of course as the collapse of Barings Bank shows, futures can also cause crashes.


Also the Phillipines is expected to announce plans to regulate cryptocurrency. The positive for Bitcoin of regulation is that it means the government is accepting crypto as a fact of life, which India doesnt seem to want to.
 

Lumpy Talbot

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Fascinating to watch the various attitudes ranging from 'its the devil's currency' style rejections by the jurisdictions worried about the technology disrupting a profitable corner for its banks, to the more nimble smaller countries who have no real dog in the game as regards a global fiat currency system.
 

Dame_Enda

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The CEO of Ripple (an Altcoin company) has sent an open letter to Congress warning that US regulatory uncertainty risks the US falling behind in innovation. BTW "Altcoin" is the collective nickname for all cryptocurrencies other than Bitcoin.

Meanwhile we have a chart which shows that 86.68% of the Bitcoin supply is held by 0.57% of addresses and that 71.98% of Bitcoin addresses carry 0.01 BTC or less. 1 BTC is €8500 so that means 71.98% of Bitcoin addresses have only €85 euros worth of Bitcoin or less.


Also Australia has just announced a ban on cash transactions of over $10,000 but Bitcoin is exempt apparently.

 
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