Why Should You Invest In Cryptocurrencies

Why Should You Invest In Cryptocurrencies 

                               

A cryptocurrency is a digital medium of exchange for goods and services

created to ease the transaction and also aid the cashless transaction. These currencies use decentralized devices against the popular central banking system and centralized digital currency. Transactions through cryptocurrencies are highly secured through cryptography which controls, monitor and verity every initiated transaction. Cryptography can also be used to create new coins, which can make it difficult for hackers to forge coins.

Although Bitcoin is the most popular cryptocurrency, other currencies are also striving in the market, currencies such as Ethereum (ETH), Ripple (XRP), Litecoin (LTC), Dash and Bitcoin Cash (BCH) to mention a few. Cryptocurrencies can be a bit risky as the price is not stable, the market price fluctuates and it is unpredictable. Generally, cryptocurrency trading and investment are for people who are risk-takers and looking into investing in a highly profitable investment. Over a couple of years now, cryptocurrencies have been doing well in the market, though there have been little bumps along the road, several currencies have pulled through.

Why Invest In Cryptocurrencies

Below are reasons to invest in cryptocurrencies:

  • Blockchain Technology Is The Future

With blockchain technology serving as a database for cryptocurrencies, transactions are safe and secured. Hassle-free transaction from anywhere around the globe. Many users believe this technology is going to redefine the world economy. Recently, Blockchain has been gaining massive adoption across the world. With this ongoing growth, there are possibilities of a long-term high profit.

Cryptocurrency An An Alternative Mode of Payment

With stress involved in the conventional currency, Cryptocurrency is offering a stress-free transaction method to users. Cryptocurrency authorizes borderless transactions between people which is safe and secured, there is zero need for third party and details are highly confidential. Crypto Investors and traders are hoping for worldwide adoption of cryptocurrency across vendors, ATMs, and banks, thus increasing the market value and profit.

  • Underrated Asset

Currently, people are not looking into investing in cryptocurrency due to the risk of an unstable and unpredictable market price. Sadly, cryptocurrencies are undervalued by those who are not into trading. According to recent predictions by some analysts, by the year 2024, there is the possibility of cryptocurrencies hitting $5 trillion marks. Thus, opening the window for long-term profit as there is going to be a surge in market value in the future.

  • Store of Value 

Though Gold is popularly known as the best store of value, with the invention of new technology, digital currencies are taking shapes in becoming a store of value for people. With the security and privacy attached to cryptocurrency, it can replace Gold in the future.

  • Government Support

Recently, many financial institutions have shown interest in the cryptocurrency market. This is because they foresee great profit opportunities in the crypto space. Since the beginning of this year, prominent people in the finance sector have started trading with cryptocurrency, people like JP Morgan, and Goldman Sachs. Of recent, Fidelity, the sixth-biggest fund manager in the world started offering digital trading services to big institutional investors. So far, Government agencies are also looking into incorporating cryptocurrencies and implementing blockchain technology. Example of such agencies are the China and Japan Government, the Japan Government has embraced cryptocurrencies as a legal means of digital payment, while the China Government has permitted blockchain transactions to be used as proof of transaction in a court of law.

Article Produced By
Max Mayer

Max writes about blockchain projects and regulation with a special focus on United States and China. He joined Smarterum after years of writing for various media outlets.

https://smartereum.com/62427/why-should-you-invest-in-cryptocurrencies/

iCoin Takes Diamond Mining to Blockchain Launches IEO

iCoin Takes Diamond Mining to Blockchain, Launches IEO

                               

A Bitcoin Press Release:

Blockchain-based platform iCoin International is aiming to disrupt the diamond mining industry using decentralized technology fused with artificial intelligence announces the launch of its initial exchange offering for early backers.

 

6th of August 2019, Sierra Leone:iCoin International is owned by Millennium Mining Corporation, and opts to leverage the power of blockchain and artificial intelligence to deliver efficiency, speed, and transparency to the precious gem industry. It has announced the launch of its initial exchange offering (IEO) in collaboration with LATOKEN to provide an opportunity to early backers to support the development and growth of the platform.

Decentralized Diamonds

Diamonds are one of the most sought after precious gems and have great value in both the industrial and social sectors. Their use in the production of aesthetic jewelries as well as their well-known physical property as one of the hardest naturally occurring material makes them truly invaluable. However, the lack of a proper monitoring infrastructure has led to the lack of transparent and effective mining and distribution operations of diamonds, and onerous government policies have only made the illegal distribution more prevalent.

iCoin will tokenize the diamond mining industry, and introduce a well-organized real-time monitoring and auditing system into the precious stone industry using emerging technologies such as the blockchain and artificial intelligence. This will enable the platform to create a holistic business environment for diamonds to thrive and create a whole new economy out of diamonds. The platform aims to achieve the following with the incorporation of blockchain technology into the diamond mining business:

  • To build a trustless network without a chance of corruption or duplication of data.
  • Provide a system with automatic and instant transactions through the use of a smart contract.
  • Enable transparency for all financial transactions through an open and distributed ledger.
  • Each diamond extraction will be time-stamped on the blockchain, giving complete traceability on the ledger throughout the supply chain.

 Unique Selling Point

Millennium Mining Corporation is located in Freetown, Sierra Leone — a country famous for its diamond operations and has a large diamond industry with about 2,500 small-scale operations. In 2018, the country exported over USD 150 million worth of diamonds. Millennium Mining Corporation has conducted several tests in the location of Baimbawai Pool in the Sewa River. The pool is a deep section of the river with slow-moving water. Based on the geological surveys and the potential, it is estimated that the pool has around 1 to 1.5 million cubic meters of diamond-bearing gravel with grades ranging from 0.2 to 0.5 carat per cubic meter. This translates into approximately 200,000 to 750,000 carats of diamonds in the pool. Previous mining in the area has shown results as high as 4 carats per cubic meter. The largest diamond that Millennium Mining Corporation has found is a clear 8.25-carat piece in 2005.

Profits made from the mined diamonds will be injected back into the iCoin market and thereby facilitate the growth of the platform with a projected iCoin valuation of about 5000% return on value growth over the course of 5 years from the launch of the platform. In the long term, Millennium Mining Corporation plans to launch into other natural resource markets, thereby expanding its base of operation according to set timeline.

 iCoin: Tokenizing Mining

The blockchain mining operations for the diamonds will be monetized through ICOIN, the ERC20 native token of the iCoin platform. The ICOIN is currently being offered to early backers through an IEO event on the LATOKEN exchange, giving an opportunity to take part in the ground launch of the iCoin platform as well as its development. Traders and investors who are already users of the LATOKEN do not need to go through anti-money laundering (AML) and Know Your Customer (KYC) verifications.

There are only 600,000,000 ICOIN tokens ever to be minted, with 10,000,000 tokens offered during the IEO event at an issue price of USD 1 per token, and a minimum investment of USD 100. Backers can obtain the tokens using BTC, ETH or USD through LAToken.com exchange. The ICOIN tokens will be released to investors as soon as the event is over, giving them a chance to trade the tokens, use as a medium of exchange or hold to gain profits. The money raised from the IEO will be used to finance the mining operations, along with the mining proceeds being funneled back into the iCoin International market. iCoin is a utility token will serve both as a currency to purchase diamond merchandises on its website, the token will also be available for trade with other ERC20 tokens in the secondary market, and lastly, a year after the IEO, Millennium Mining Corp will offer up a buy-back program for iCoin International token at the market price rate.

Article Produced By
Carolyn Coley

Carolyn Coley is a blockchain reporter. She joined Smartereum after graduating from UC Berkeley in 2018.

https://smartereum.com/62072/icoin-takes-diamond-mining-to-blockchain-launches-ieo/

 

Twitter isn’t tired of Bitcoin even though hashtags are at an all-time low

Twitter isn’t tired of Bitcoin even though hashtags are at an all-time low

                                

Bitcoin mentions on Twitter hit an all-time low, dropping to around 8,300.

At its peak, Bitcoin was seeing 155,000 mentions at the beginning of December 2017. Nonetheless, the change doesn’t mean the world’s attention toward BTC is getting any lower.

#Bitcoin largely missing from Twitter

While the so-called crypto community was born from online forums such as Bitcoin Talk and Reddit, it matured on Twitter. Of the social media platforms, Twitter is fast-paced enough to keep up with the rapidly evolving crypto-sphere. Soon, it became the standard place for discussions on the state and future of the space, especially for those in America and Europe. As a result, Twitter, and the number of mentions a cryptocurrency gets there, are often seen as an important metric—one that gauges whether a project has made it into the public discourse. 

Therefore, it’s not surprising that mentions of Bitcoin on Twitter grew as the coin got more popular. The popularity of the #Bitcoin hashtag spiked every time it saw a significant price movement, indicating that it was, most literally, the talk of the town. Mentions of Bitcoin hashtags were at their all-time-high on Dec. 7, 2017, right when the coin began its turbo-charged jump to $20,000. Data from BitInfoCharts showed that #Bitcoin was mentioned more than 155,600 times that day. However, the Bitcoin hashtag has been losing its popularity ever since. On Oct. 4, the hashtag seemed completely missing from Twitter, as it got just over 8,300 mentions in the day. 

Is the world tired of Bitcoin?

Some might see the lack of Bitcoin mentions on Twitter as a sign of waning interest. But, the truth seems far from it. The data shown in BitInfoCharts only takes into consideration hashtags and not all and every mention of the word Bitcoin. Tweetbinder revealed that while #Bitcoin managed to get 500 tweets in 31 minutes, the keyword bitcoin took just 12 minutes at 18:20:08 UTC on Oct. 4 to get those same figures. By extrapolating these numbers, it is possible to assume the tweet count of the keyword Bitcoin to be nearly three times that of #Bitcoin.

As the oldest and most well-known cryptocurrency, Bitcoin has lost the novelty which would lead people to use hashtags when talking about it. Using hashtags is an efficient way to get more information and spread the word about new projects, but it seems Bitcoin has become such a household name that there isn’t any real need for it. Other metrics also disagree with the notion that Bitcoin is losing its popularity. Bitcoin’s hash rate, which determines the amount of computing power on the network, reached its all-time high on Sept. 26 and the trend has shown no signs of changing. That isn’t to say large price swings don’t increase attention toward Bitcoin. They do. But, it seems that the fewer number Bitcoin hashtags may have less to do with popularity and more to do with Bitcoin becoming a household name.

Article Produced By
Priyeshu Garg

Priyeshu is a software engineer who is passionate about machine learning and blockchain technology. He holds an engineering degree in computer science engineering and is a passionate economist. He built his first digital marketing startup when he was a teenager, and worked with multiple Fortune 500 companies along with smaller firms. When he is not solving transportation problems at his company (Ola), he can be found writing about the blockchain or roller skating with his friends. The author of this article is invested and/or has an interest in one or more assets discussed in this post. CryptoSlate does not endorse any project or asset that may be mentioned or linked to in this article. Please take that into consideration when evaluating the content within this article.

https://cryptoslate.com/twitter-isnt-tired-bitcoin-hashtags-all-time-low/

You can’t fix 51 attacks on Bitcoin without adding centralization argues core developer

You can’t fix 51% attacks on Bitcoin without adding centralization, argues core developer

                                      

The ability to 51% attack Bitcoin indicates that it’s decentralized.

It’s impossible to fix this vulnerability without adding centralization, argued Litecoin founder Charlie Lee and Bitcoin Core developer Gregory Maxwell.

Characteristic of decentralization

Decentralization is one of the most important attributes of blockchain technology according to some of the most prolific figures in the industry. Yet, critics have scrutinized Bitcoin and other proof-of-work projects for their susceptibility to 51% attacks. However, the opportunity for 51% attacks could be a fundamental characteristic of a

decentralized public blockchain.

“One cannot fix the 51% attack flaw of a decentralized system without adding centralization,” tweeted Litecoin creator Charlie Lee. “This is one of the keys to understanding Bitcoin, proof of work, and decentralization. Most people fail to grasp this.”

Solving the double-spend problem

Fundamentally, Bitcoin solves the double-spend problem—the issues around guaranteeing that digital money isn’t spent twice. With tangible cash this problem is trivial. A paper bill can’t be in two places at once. But, when money is represented digitally, what prevents people from ‘counterfeiting’ bills? Duplicating electronic data is trivial and difficult to police, as demonstrated by the proliferation of online piracy. Historically, electronic cash was overseen by trusted third-parties. Money held in a PayPal account is an example of digital cash managed by a corporation while the electronic balance

held by a bank is a government example.

“Centralized systems like Ripple, EOS, IOTA, Blockstream Liquid, etc. just have a single party use its idea of whatever came first and everyone else just has to accept its decision,” asserted Maxwell.

But, in a decentralized system, who is the arbiter?

First come first serve

Bitcoin solves the double-spend problem by saying the first transaction to spend a coin is the valid transaction. Any subsequent attempts to spend that same coin are considered invalid. This might seem obvious but it’s a much trickier problem than it seems.

Gregory Maxwell, the former CTO of Blockstream and a longstanding Bitcoin Core developer, explains why.

“In a truly decentralized system ‘first’ is actually logically meaningless! As an inescapable result of relativity the order which different parties will perceive events depends on their relative positions, no matter how good or fast your communication system is.”

In other words, which transaction is considered ‘first’ depends on who is asked. If two transactions to spend the same Bitcoin happened at the same time, how would the network decide which is first and which is second?

Mining as a public election

Bitcoin solved this problem through voting. But, there’s a catch. Most permissionless systems have it so their users can remain anonymous. Thus, it’s impossible to just ask ‘people’ to vote—that would require a centralized party to verify the identities of those people and determine who’s eligible to vote. Instead, Bitcoin tallies votes through computing power, which doesn’t require the help of a centralized party. Similarly, it’s possible to use another resource like coins (proof-of-stake) to count votes.

Rigging elections

Continuing with Gregory Maxwell’s election analogy, when people refer to a 51% attack they mean the potential to ‘rig’ elections to change Bitcoin’s transaction history. Even though it’s possible to make 51% attacks costlier or more inconvenient, it’s impossible to eliminate that possibility without introducing centralization,

argues Maxwell.

“People have cooked up 1001 complicated schemes that claim to do it without introducing centralization, but careful analysis finds again and again that these fixes centralize the system but just hide the centralization,” says Maxwell about cryptocurrencies that claim to solve the 51% attack issue.

Delegating responsibility to masternodes, block producers, or superdelegates merely moves the potential for 51% attack to a smaller group of decision makers. Moving to proof-of-stake simply changes the underlying votes from computing power to coins. That isn’t to say these other projects are slower or less reliable than Bitcoin, they’re merely more centralized based on Maxwell’s theory.

Protecting decentralization

Maxwell makes an interesting final point. Critics seem to obsess over the risk of a 51% attack. But, the easy solution to that risk is to increase the number of block confirmations before considering a transaction final. A transaction on the Bitcoin blockchain gets exponentially more difficult to compromise the more blocks are mined on top of it. Thus, it’s still possible to transact even if a 51% attack is occurring by increasing

the number of confirmations.

“A far bigger risk to Bitcoin is that the public using it won’t understand, won’t care, and won’t protect the decentralization properties that make it valuable over centralized alternatives in the first place; a risk we can see playing out constantly in the billion dollar market caps of totally centralized systems,” concluded Maxwell.

Article Produced By
Mitchell Moos

Mitchell is a software enthusiast and entrepreneur. His first startup built algorithms for optimizing cryptocurrency mining. Prior to CryptoSlate, Mitchell was a project manager at a firm that built distributed software on Hyperledger. In his spare time he loves playing chess and hiking. The author of this article is invested and/or has an interest in one or more assets discussed in this post. CryptoSlate does not endorse any project or asset that may be mentioned or linked to in this article. Please take that into consideration when evaluating the content within this article.

https://cryptoslate.com/you-cant-fix-51-attacks-on-bitcoin-without-adding-centralization-argues-core-developer/

Ethereum ETH’s Next Big Move Is Just Around The Corner

Ethereum (ETH)’s Next Big Move Is Just Around The Corner

                              

Ethereum (ETH) is finally close to its next big move that we have been waiting to come to fruition for weeks.

The symmetrical triangle on the 4H chart will now either see a sharp breakout to the upside or to the downside. Considering that the cryptocurrency market is still due for another downtrend and the condition of the Stochastic RSI and RSI for ETH/USD on the 4H chart, I’m inclined to believe that we are very likely to break to the downside. The price remains below the 38.2% fib retracement level despite numerous attempts to break out. As long as that is the case, I have no reason to be bullish on Ethereum (ETH) or any other cryptocurrencies. 

Many traders are waiting for a trend reversal at this point but I think it might turn out of be very risky as we do not know where the floor is. If the price starts to decline from here, I would not be surprised to see it crash below even $155 during the next downtrend. I am open to the possibility of the price breaking the symmetrical triangle to the upside but I would consider that to be a fake out and an opportunity to add to short positions. In any case, I would be very surprised to see the price closing above the 61.8% fib retracement level on the daily time frame. In my opinion, we are close to seeing the current move coming to fruition with the price completing a big move to the downside. This next move is what is very likely to turn the sentiment bearish once again and I think that would be a point to expect a short term trend reversal.

The daily chart for Ethereum dominance (ETH.D) is an even better indicator of what is likely to follow in the near future. If the rising wedge breaks to the downside as I expect it to, then we have a very high probability of the altcoin market experiencing some serious pain. RSI on the daily chart for Ethereum dominance points to a similar outcome. We are now very close to seeing a breakout in ETH/USD but if we link this chart with the ETH/USD chart, we get the complete picture and that is the strong probability of the beginning of a new downtrend from here. 

Ethereum (ETH) and other cryptocurrencies are long way from breaking out of the current bear market just yet. In my opinion, we are in the second half of the ongoing bear market and there is no reason to be bullish on Ethereum (ETH) or other altcoins as long as the market has not made the inevitable moves to the downside. Everyone is looking to buy the dip but most of you who have been around since 2014 or before would know that this is now what it feels like when the market bottoms. No one wants to buy the dip thinking it is the end and that is when the next cycle actually begins.

Article Produced By
Jefe Caan

I work as the key Trading Analyst for Crypto Daily and provide the team with regular analyses and updates regarding the technical performance of all cryptocurrencies on the market. I am responsible for the production of articles and posts for Crypto Daily’s own technical analysis section and spend my time monitoring and commenting on the varied moves the markets make on a daily basis.

https://cryptodaily.co.uk/2019/10/ethereum-next-big-move-is-just-around-the-corner

See How Apple Are Utilising The Blockchain

See How Apple Are Utilising The Blockchain

                                         

Apple Inc are best known for their flagship iMac and iPhone products,

though historically, of course, it all really started (in the mainstream at least) with the launch of the iPod. Apple Inc is a US-based multinational company that specialises in the design and development of various hardware and software products and are often considered as Microsoft's only true rival in terms of tech dominance. With an estimated revenue of $265.595 billion in 2018, it’s clear to see that Apple are frankly huge. It’s also clear that such a large tech firm will wish to explore blockchain technology sooner, rather than later. No, Apple aren’t launching their own Applecoin or iCoin just yet, however, according to reports out during the middle of last week, Apple Inc have confirmed that they will be using blockchain technology to explore new methods of manufacture that aim to make Apple’s hardware products far more environmentally friendly.

According to CCN:

“When you think of Apple, you think iPhone, iPad, or even privacy concerns. You probably don’t think conflict minerals used in the manufacturing of its devices or how blockchain could prove the cure for an ethical supply chain. Well, you should. The tech giant has filed a report with the U.S. Securities and Exchange Commission indicating it is studying ways to implement Blockchain in some form or fashion.”

Now, within their filing Apple have not actually said they will be using blockchain technology, rather they simply hint at the fact that they could use the blockchain in order to find solutions designed to make their sourcing of natural minerals and products more ethical.

 

This comes after Apple pledged to work in a more efficient manner back in 2018:

“In 2018, Apple chaired the board of the Responsible Business Alliance, served on the Steering Committee of the RMI, continued its participation in the European Partnership for Responsible Minerals, and served on the Governance Committee of the Public-Private Alliance for Responsible Minerals Trade. Apple also contributed to several RMI working groups, including, but not limited to, the working groups for tin, gold, and other minerals; the smelter engagement team; the Blockchain team; and the minerals reporting template team.”

Blockchain technology can seriously transform the way companies like Apple source the products that they need to make intricate pieces of hardware that go into the iPhone and the iMac. Audit trails, database maintenance and of course, product authentication can all benefit from blockchain integration, perhaps Apple have finally realised that?

Article Produced By
Adrian Barkley

Adrian has been leading teams in the finance sector for over a decade. He is highly experienced, and is responsible for ensuring that the latest news is delivered to you as it is breaking. He has a keen interest in virtual currencies, and has even made investments himself, so is incredibly passionate when it comes to writing about this topic.

https://cryptodaily.co.uk/2019/02/see-how-apple-utilising-blockchain

Malware Costing Just 160 Attempts Crypto Theft from 72000 Devices

Malware Costing Just $160 Attempts Crypto Theft from 72,000 Devices

                               

Researchers believe a malware botnet that costs just $160 has interacted with potentially 2,000 machines per week

in attempts at stealing crypto wallets and personal information. Prevailion, the U.S.-based cybersecurity management provider, posted an article on its blog detailing how MasterMana Botnet has likely been active since December 2018 and was still active as late as September 24. With the potential to hit 2,000 machines a week, the botnet may, therefore have interacted with more than 72,000 devices this year.

Cyber Bingo Full House

Authors Danny Adamitis and Matt Thompson described MasterMana Botnet as an "ongoing cyber-crime campaign that hits all of the cyber bingo buzzwords: business email compromise, backdoors, and cryptocurrency wallets". Once victims opened the phishing email it would reveal an infected document attachment. Opening this document would then release the bot designed to steal usernames, passwords, cookies, web history and cryptocurrency wallets. The authors underlined the irony of such a threat: malware that costs just $100, and launched over a $60 virtual private server (VPS) was sophisticated enough to avoid detection from security systems that are becoming ever-more expensive.

They added:

While most companies fear they may become compromised by advanced actors, this particular report highlights that actors do not have to rely on advanced tools or techniques to have a serious business impact.

Article Produced By
Neil Dennis

Neil is a veteran financial journalist, but a relative newcomer to the land of cryptocurrencies and blockchain and brings a critical, yet fascinated, eye to the digital asset market.

https://www.cryptoglobe.com/latest/2019/10/malware-costing-just-160-attempts-crypto-theft-from-72000-devices/

Hacker Who Grabbed Top-Level Ethereum Domains Voluntarily Returns Them

Hacker Who Grabbed Top-Level Ethereum Domains Voluntarily Returns Them

                                

The hacker who managed to exploit an auction by the Ethereum Naming Service (ENS)

to grab top-level domains has voluntarily returned the domains he took. Since September 1 digital collectibles marketplace OpenSea has been having an Ethereum domain auction, where “.eth” domains are being auctioned to the highest bidder. These domains, unlike those working on the standard DNS domain, can’t be forcibly retrieved once allocated, as they’re on the Ethereum blockchain. Using an exploit in the auction software distributing the ENS domains to participants, the hacker managed to get a hold of top-level domains like “apple.eth”, “defi.eth,” and “wallet.eth” without being the highest bidder. Overall, the user took 17 domains.

OpenSea wrote in a blog post:

One user discovered an input validation vulnerability that allowed them to place bids on a name that actually issued a different name.

The auction suffered from other issues, as domains like “bitmex.eth” and “hodls.eth” had bids incorrectly processed. These weren’t, however, affected by the exploit. The affected domains were initially blacklisted by OpenSea, although the marketplace asked the hacker to return the domains so they can be re-auctioned. In return, it offered the hacker a reward of 25% of the final auction price, as well as the original bid. The offer seems to have worked as on Twitter, OpenSea revealed the domains were voluntarily returned.

Article Produced By
Francisco Memoria

Francisco is a cryptocurrency writer who's in love with technology and focuses on helping people see the value digital currencies have. His work has been published in numerous reputable industry publications. Francisco holds various cryptocurrencies

https://www.cryptoglobe.com/latest/2019/10/hacker-who-grabbed-top-level-ethereum-domains-voluntarily-returns-them/

Crypto-Derivatives Could Become Illegal in the UK Next Year

Crypto-Derivatives Could Become Illegal in the UK Next Year

                             

Various governments around the world aren’t too sure how to tackle Bitcoin.

Numerous aspects of this particular industry need to be treated very differently from one another. Crypto-derivatives are getting some unfavorable attention in the United Kingdom. So much even that these vehicles may be considered illegal in the near future. 

Crypto-Derivatives are Appealing

Although a lot of people would love to speculate on the Bitcoin price, most of those traders have no intention of physically owning cryptocurrency. New solutions need to be found to cater to these people. The introduction of crypto-derivatives offers a remarkably viable solution. It allows traders to “gamble’ on the Bitcoin price movements without buying cryptocurrency directly. 

Service providers have noted there is a genuine demand for these vehicles. The fluctuations of Bitcoin are notorious. It is this price volatility that makes crypto-derivatives a gambling operation, to some extent. That particular aspect has now drawn a lot of criticism from some UK government officials. They want to see this market be deemed illegal once and for all. That could hinder the growth of cryptocurrency in the UK, although nothing has been decided as of yet. 

The Proposal

One has to keep in mind the crypto-derivatives industry is quite vast. It spans options, futures contracts, and other similarly oriented trading vehicles. As Bitcoin is not officially regulated in the UK at this time, it is only normal investors with an appetite for risk explore these options. That being said, these products do not adhere to strict derivatives guidelines present in this region, which creates a fair bit of friction. 

Under the current proposal, the Financial Conduct Authority seeks to introduce a blanket ban on crypto-derivatives sold to retail investors. This would make any Bitcoin-related trading vehicle – except for BTC itself – illegal in the United Kingdom. A bit of an odd choice as regulating this industry should have more beneficial long-term effects for all parties involved. A blanket ban is never the answer in any financial sector. For now, the proposal has yet to be voted upon. A decision is expected to be made public by Q2 2020 at the latest.

Bitcoin in the UK

It is not easy for cryptocurrencies to gain any form of mainstream traction. That situation is no different in the UK, despite it being a more open-minded region regarding such innovative tools. One does have to wonder if a blanket ban on crypto-derivatives would have real effects on the Bitcoin price. After all, appeasing retail investors has never been a high priority among the Bitcoin faithful. 

Article Produced By
JP Buntinx

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers.

https://nulltx.com/crypto-derivatives-could-become-illegal-in-the-uk-next-year/

Zimbabwe Bans Mobile Money and Foreign Pricing

Zimbabwe Bans Mobile Money and Foreign Pricing

                                 

Numerous countries find themselves in major financial peril these days.

Zimbabwe is one of the many African countries in dire need of a change. Recent regulations imposed by the central bank continue to limit financial options for both companies and individuals alike. These new guidelines do not bode well for Bitcoin adoption in the country either, as the currency won’t be welcome, by the look of things. 

Zimbabwe Needs Help

To most people, African economies are of little concern. Everyone knows most of these regions are very poor and there is a severe lack of financial stability. Several countries have tried to remedy the situation through various means, but they often fall short. Even Zimbabwe‘s venture of introducing a domestic dollar has not seen great success whatsoever. The situation goes from bad to worse on a monthly basis, resulting in unfavorable regulatory measures.

More specifically, the largest industry of sending money in the country has now been banned. Consumers and corporations can no longer use mobile money in any shape or form. All operators of mobile money services have been shut down effective immediately. No one is allowed to pay out cash at this time, and it seems unlikely that the situation will change later this year. It is a stop-gap measure which will potentially do a lot more harm than good. 

FX Rates and Foreign Pricing

The crackdown on mobile payments is only part of the problem in Zimbabwe today. The reserve bank has also made it illegal for corporations to price goods and services in any foreign currency. While that decision could make sense in a twisted way, it will make the country less appealing to foreign investors. It is a very strange measure which has been in effect for several days now, albeit it is met with a fair bit of criticism.

Regarding the foreign exchange rates in the country, the reserve bank introduced an artificial spread ceiling. More specifically, dealers and bureaux de change can offer an exchange rate for the Zimbabwe dollar which deviates by up to 5%. This is down from the 7% spread which was introduced by the same institution just two weeks ago. This further confirms the Zimbabwe dollar is a failed effort to stabilize this economy under the current circumstances. Effectively making life more difficult for everyone is not a solution either, yet that will be the result of the current measures.

What About Bitcoin?

As the Zimbabwean central bank continues to clamp down on anything that isn’t domestic currency, it seems unlikely that Bitcoin will make any sort of impact in the future. In fact, it seems to be a matter of time until Bitcoin and other cryptocurrencies are officially banned in this country. Not the development enthusiasts have been looking for, but it is entirely to be expected. 

Article Produced By
JP Buntinx

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers.

https://nulltx.com/zimbabwe-bans-mobile-money-and-foreign-pricing/