Bitcoin currency

Dame_Enda

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The UK's FCA (Financial Conduct Authority) has just warned that Cryptocurrency has "no intrinsic value". Bloomberg speculating this might be a sign the UK is moving towards banning them. Would they?
 


Dame_Enda

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New study from MIT (Massachussetts Institute of Technology) finds that just 2% of bitcoin transactions are illicit, with 21% lawful and the remaining 77% unclassified. Suggests some US and Indian politicians opposed to cryptocurrency are wrong about their claims crypto is about money laundering.

 

Lumpy Talbot

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Basically when you hear politicians anywhere express concern about money-laundering it usually means their banks are lobbying them to protect their institutionalised and systemic form of money-laundering over this new avenue where the banks don't earn commission.
 

Dame_Enda

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Bitcoin surged 14% overnight. Its not too far off where it was before Trump dissed it, which caused it to drop to around €8200 Now it's back to around €10500. Interestingly I read a story yesterday that while there has been little evidence up to now of Bitcoin being seen as a safehaven investment during current or stock market fluctuations, that there are some signs it may be moving in that direction in China, with evidence of capital outflows from the Yuan going to some extent into Bitcoin. China is also continuing to make positive noises about Bitcoin, after statements by the state owned Bank of China (not to be confused with the Peoples Bank which is the central bank) and a state owned website.
 

Dame_Enda

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ECB announced today that it wants to increase monitoring of crypto currencies, including on-chain data.

Christine Lagarde is probably a little bit more cautious about crypto than her predecessor Mario Draghi based on her past statements.
 

Dame_Enda

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Interesting. Bitcoin and the price of gold appear to have been moving in the same direction in recent months. Might suggest Bitcoin is increasingly seen as a safehaven investment, despite regulatory uncertainty.
 

Dame_Enda

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A 6th circuit judge in the US has thrown out a lawsuit alleging fraud by Coinbase, one of the world's largest cryptocurrency trading sites.
 

Dame_Enda

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The SEC (the US Securities and Exchange Commission) postponed a decision yesterday on whether or not to approve 3 cryptocurrency ETF (Exchange Traded Fund) proposals.

China is expected to announce its new sovereign cryptocurrency soon. Will it challenge Bitcoin? Will it help China avoid US tariffs? Big change from a country which until recently was hostile to cryptocurrency.

Meanwhile, the New Zealand Central Bank yesterday announced it will allow companies to pay salaries in cryptocurrency. Will it catch on here?


Forbes said:
.......
The bank's potential bitcoin rival is "close to being out," Mu Changchun, deputy director of People's Bank of China (PBOC) payments department, said at an event held by China Finance 40 Forum over the weekend but stopped short of giving an exact launch date, it was first reported by Bloomberg, a financial newswire.

However, Mu Changchun also said China's digital currency would not solely rely on blockchain technology, as bitcoin and other cryptocurrencies do, due to fears it wouldn't be able to handle China's vast transaction volumes.


China's PBOC has been looking into creating a bitcoin rival for the last five years, with other major central banks, including Sweden’s Riksbank, also seriously considering releasing a digital currency to begin replacing physical cash.

Mu Changchun added China's digital currency be issued by both the central bank and financial instutitons.


....
This could help or hurt Bitcoin. On the one hand it could become a rival to Bitcoin on the crypto currency markets. On the other hand it would contribute to the mainstreaming of cryptocurrencies, which could help Bitcoin in the same way that the announcement of Facebook's Libra currency initially gave Bitcoin's price a boost.
 
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Lumpy Talbot

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If the Chinese get this right they could begin to eat into the dollar's position as a fiat global currency.

What with the Remnimbi/Yuan becoming a recognised exchange currency a few years back and fairly quietly this does seem to be an area where little acorns tend to become oak trees fairly quickly.

Not sure I'd like my salary paid via a cryptocurrency though quite yet.
 

Dame_Enda

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The markets were interesting yesterday. Pretty much all the major cryptocurrencies fell yesterday, except "Bitcoin Cash" (not to be confused with Bitcoin) which rose 7%.

I was a bit surprised by this. I thought the warming of China and Russia to cryptocurrency would buttress the market. But there was also the bad news of the SEC in the US postponing a decision on whether to allow one of three applications for bitcoin ETFs. Its well known Trump doesnt like Crypto.

On the other hand, there are some signs that Bitcoin prices are starting to shadow the S+P index in the US, and the price of gold. That suggests its becoming more mainstream. When the stock market rebounded yesterday, Bitcoin's price fell.

Also playing on the market's mind is the impending collapse of the Italian government. The 5 Star Movement supports cryptocurrency, and brought Italy into the European Blockchain Association. Salvini has not publicly mentioned crypto according to Forbes.com
 
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Dame_Enda

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All the crypto currencies are crashing through the floor today, except the one called Dai. I have converted my holding to Dai. Any theories on why this is happening?
 

Dame_Enda

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Bitcoin-futures trading to start next month according to Bakkt, which says NY has given it a license.
 

Lumpy Talbot

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jeez you wouldn't imagine the market that supplied the people with such interestingly valued concepts such as the junk bond, the carbon trading market, the CFD and vulture funds would have much trouble catching on to distributed ledger technology and its monetised representative, the cryptocurrency.

Their apparent opposition to it all I suspect is because they see it, rightly, as a massive disruptor of their business model.

I suspect they are going to have to re-think their business model.
 

Dame_Enda

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jeez you wouldn't imagine the market that supplied the people with such interestingly valued concepts such as the junk bond, the carbon trading market, the CFD and vulture funds would have much trouble catching on to distributed ledger technology and its monetised representative, the cryptocurrency.

Their apparent opposition to it all I suspect is because they see it, rightly, as a massive disruptor of their business model.

I suspect they are going to have to re-think their business model.
Its like how the US still hasnt adopted chip and pin technology for shopping.
 

Dame_Enda

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Binance, one of the largest crypto-exchanges, has announced its going to start allowing users to lend cryptocurrencies at interest rates of 15% for BNB (Binance's own currency), 10% for lending out Tether and 7% for lending Ethereum Classics over 14 days,

Meanwhile, Mark Carney, the Bank of England governor who is retiring in a few months, said in recent days the UK should have a digital currency to undermine the dominance of the US Dollar.
 


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