How Cryptocurrencies Could Offer Independence From Banks

Amid recent talk of mainstream acceptance, Bitcoin and other cryptocurrencies stand on the precipice providing economic independence from private banking institutions.

That is in essence what Bitcoin was created to do back in 2008 when its initial white paper was released. The decentralized virtual currency removed the need for an administrator or bank - through encrypted peer-to-peer transactions recorded on the public ledger known as the Blockchain.

What was small then has completely changed in the space of 10 years. The past fortnight has witnessed the biggest bull run in Bitcoin history, with the price of the virtual currency hitting the $11,000 mark earlier this week.

The increasing value of Bitcoin has not gone unnoticed by mainstream financial institutions. Opinions are widely divided, but the fact that Bitcoin futures are being considered by the likes of the Chicago Mercantile Exchange and the NASDAQ proves that big things are to come in the next few years.

While financial institutions plan to enter the market, the man on the street still view cryptocurrencies as revolutionary technology. By investing and using Bitcoin, Ethereum and other virtual currencies, people are taking power away from banks by using anonymous transactional systems.

Future of finance
However, as the herd comes running, the potential rise in the value of each respective digital currency will no doubt be welcomed.

Speaking to Lee Camp on Redacted Tonight on RT, director of the Public Banking Institute Walter Mcree believes cryptocurrencies offer another avenue for people to invest and store their money, as an alternative to private banking institutions:

“Categorically it’s very exciting because it suggests that there are options to the private capital control we’ve all been under. Bitcoin and the other Blockchain technologies that are emerging are like the complimentary or alt currencies in the past.”

“They certainly represent a way for communities to have their own isolated economic strength.”

Mcree also believes that mainstream interest in cryptocurrencies shows that there will be an adoption by big institutions in the future. However, he questioned the possibility of the likes of Bitcoin challenging the dollar in the years to come:

“It’s exciting prospect, we’ll see how far they’ll get in terms integration into the money markets. I know big banks are certainly looking to have their version of it. I don't think it will be replacing the US Dollar at least right now. I think the Yuan and others things might along the way.”

“By and large Bitcoin and other cryptocurrencies are emerging we are going to see all kinds of variations of it coming up.”

This post first appeared on Cointelegraph
https://cointelegraph.com/news/how-cryptocurrencies-could-offer-independence-from-banks

James Altucher predicts bitcoin will reach $1 million by 2020
Outspoken libertarian and MGT Capital Investments CEO John McAfee tweets he predicts bitcoin will reach $1 million by the end of 2020, double his previous forecast.

"I'll say $1 million by 2020, as well, easily," James Altucher says on CNBC's "Squawk Alley." "There's 15 million millionaires around the world. All their financial advisors are going to say, 'Hey, buy a bitcoin. You need some exposure."
Bitcoin hit a record high of $11,377.33 earlier this week.
James Altucher Bitcoin 'easily' can get to $1 million by 2020: Formula Capital's James Altucher
18 Hours Ago | 00:48
Self-help guru and former hedge fund manager James Altucher thinks bitcoin will reach $1 million in three years.

Bitcoin surged to a record high of $11,377.33 Wednesday morning, according to CoinDesk. Outspoken libertarian and MGT Capital Investments CEO John McAfee subsequently tweeted that he predicts bitcoin will reach $1 million by the end of 2020, double his previous forecast.

When CNBC asked Altucher if he agreed, he said yes.

"I'll say $1 million by 2020, as well, easily," Altucher said Wednesday on CNBC's "Squawk Alley." "There's 15 million millionaires around the world. All their financial advisors are going to say, 'Hey, buy a bitcoin. You need some exposure.'"

"There's only going to be 21 million bitcoins minted ever in history. That's also going to drive demand," Altucher said.

He is a Top 10 LinkedIn Influencer, the author of the bestselling book "Choose Yourself" and an editor at The Altucher Report.

Bitcoin was trading near $10,811 as of midday Wednesday, according to CoinDesk.

Turkey Central Bank Admits Bitcoin is a Threat to Global Banking System

Earlier this month, Turkish Central Bank Governor Murat Cetinkaya emphasized that bitcoin could contribute to global financial stability with its decentralized and peer-to-peer (P2P) financial network.

Turkish Central Bank Feels Threatened by Bitcoin

The decentralized structure and nature of bitcoin completely eliminates the necessity of central entities and authorities within the network to settle transactions between two parties. Anyone within the Bitcoin network can freely and seamlessly send and receive transactions without intermediaries.

As such, the research paper of Bank of Finland, described bitcoin as a “marvelous” decentralized financial network, because it operates with its own rules and monopoly by effectively creating a new economy.

“Bitcoin is a monopoly run by a protocol, not by a managing organization. Familiar monopolies are run by managing organizations with discretion to determine and then change prices, offerings and rules. Monopolies are often regulated to prevent or at least mitigate their abuse of power,” the paper of the Bank of Finland read.

Several governments and central banks including the Turkish Central Bank are concerned with the impact bitcoin has imposed on the global finance industry over the past year, and how it could continue to evolve into a premier store of value, eventually overtaking gold and eventually, reserve currencies like the US dollar and Japanese yen.

If bitcoin continues to grow at an exponential rate in terms of daily transaction volume, daily trading volume, user base, infrastructure, and adoption by major financial institutions, bitcoin will inevitably become a major component of the global finance sector and a competitor to both government-issued fiat currencies and central banks.

“Digital currencies pose new risks to central banks, including their control of money supply and price stability, and the transmission of monetary policy, Cetinkaya said. Even so, the Turkish central banker said that digital currencies may be an important element for a cashless economy, and the technologies used can help speed up and make payment systems more efficient,” wrote Eric Lam of Bloomberg, who covered the conference attend by Cetinkaya in Istanbul in early November.

Bitcoin Has Become a Challenge For Central Banks

Bitcoin has become a challenge for many governments and central banks, primarily because it forces the authorities to make one of the two decisions; either adopt bitcoin and be at the forefront of bitcoin development or isolate its economy by rejecting bitcoin.

Various studies including Facebook IQ’s research have demonstrated that over 90 percent of millennials across the globe have lost trust in banks and major financial institutions. Millennials feel disconnected from banks, and believe that the banks do not understand or address their necessities.

Consequently, prominent venture capitalist and A16Z partner Balaji Srinivasan stated that by 2040, millennials will have never known a world without bitcoin.

“By 2040, everyone under 30 will have never known a world without Bitcoin. It may as well be gold. That’s the long-term case for replacement,” said Srinivasan.

With the crackdown on fraudulent activities of commercial banks and the decline of the global fiat currency system, bitcoin is at an optimal position to evolve into the next global currency. The Turkish Central Bank feels threatened by the rapid growth rate of bitcoin, as it could render its existence unnecessary in the long-term.


************
More reason why you should not sit on the fence.

THE WINKLEVOSS TWINS HAVE MARK ZUCKERBERG IN THEIR SIGHTS

Brothers Cameron and Tyler Winklevoss, whom Mark Zuckerberg once promised to “f--k . . . probably in the ear” over their claim that they generated the idea for Facebook, and who were subsequently immortalized in The Social Network, have long dreamed of getting even with their former Harvard classmate. And although the courts quashed their subsequent legal appeal after they settled with Zuck for $65 million—$20 million in cash, $45 million in Facebook stock—they may at long last have exacted some measure of circuitous revenge. Back in 2013, they invested $11 million of the settlement in bitcoin, or what they claimed was about 1 percent of the entire cryptocurrency’s dollar-value equivalent. “We have elected to put our money and faith in a mathematical framework that is free of politics and human error,” Tyler declared upon making the investment.

That election was regarded with skepticism: “To say highly speculative would be the understatement of the century,” Steve Hanke, an alternative-currency specialist, told The New York Times at the time. But the former Olympic rowers’ choice has paid off: after recent surges in the value of the cryptocurrency—last week bitcoin surged past $10,000 and now trades at over $11,000—the Winklevii are said to be bitcoin billionaires in what is considered to be the first billion-dollar return made by any cryptocurrency investor. (When they first invested, bitcoin traded at $120.) Their digital currency exchange, Gemini, which they launched in 2015, is now used all over the world, although their attempt to create an exchange-traded fund for bitcoin was rejected by the S.E.C., citing the possibility of fraud.

Bitcoin’s meteoric rise may be showing signs of a bubble: last week its price dropped $1,000 in 10 minutes, plummeting below $10,000 just after hitting its over-$11,000 all-time high. Still, the twins’ early comments about bitcoin appear to have been prescient. “People say it’s a Ponzi scheme, it’s a bubble,” Cameron said in 2013. “People really don’t want to take it seriously. At some point that narrative will shift to ‘virtual currencies are here to stay.’ We’re in the early days.” Cryptocurrency mania has since overtaken mature financial markets, with major institutional investors looking for ways to gain exposure. Dozens of crypto hedge funds have sprung up. And bulls point to the fact that bitcoin, despite its nearly $200 billion market cap, still represents less than 2 percent of any other major asset class.

Their returns still pale in comparison to Zuckerberg’s, whose net worth hovers around $70 billion. But as the twins explained to my colleague Nick Bilton in an interview this summer, cryptocurrency may yet be more lucrative—and more transformational—than Facebook ever was.

The Post - THE WINKLEVOSS TWINS HAVE MARK ZUCKERBERG IN THEIR SIGHTS
first appeared on VanityFair Magazine

https://www.vanityfair.com/news/2017/12/the-winklevoss-twins-have-mark-zuckerberg-in-their-sights

Everyone is getting caught up in Cryptocurrency fever, even Bank of America
Bank of America Wins Patent for Crypto Exchange System

Bank of America may be looking into cryptocurrency exchange services for its corporate clients – or at least keeping its options open should they become interested.

In a patent awarded by the U.S. Patent and Trademark Office on Tuesday, the second-largest bank in the U.S. outlined a potential cryptocurrency exchange system that would convert one digital currency into another. Further, this system would be automated, establishing the exchange rate between the two currencies based on external data feeds.

The patent describes a potential three-part system, where the first part would be a customer’s account and the other two would be accounts owned by the business running the system. The user would store their chosen cryptocurrency through the customer account.

The second account, referred to as a "float account," would act as a holding area for the cryptocurrency the customer is selling, while the third account, also a float account, would contain the equivalent amount of the cryptocurrency the customer is converting their funds to.

That third account would then deposit the converted funds back into the original customer account for withdrawal.

The proposed system would collect data from external information sources on cryptocurrency exchange rates, and use this data to establish its own optimal rate.

the post Bank of America Wins Patent for Crypto Exchange System appeared first on
https://www.coindesk.com/bank-of-america-outlines-cryptocurrency-exchange-system-in-patent-award/

GMO Internet Inc., a multi-billion dollar Japanese technology conglomerate, will process salaries of its 4,710 full-time employees in bitcoin.

According to the official statement of GMO Internet, employees within the company and its subsidiaries will be able choose to receive their salaries in bitcoin with the newly integrated payroll system in the near future.

“The GMO Internet Group has decided to introduce a system that allows part of the salary payment to be received as bitcoin in order to promote ownership of our domestic employees’ virtual currency,” read GMO Internet’s statement obtained by Bitcoin.com.

At first, GMO Internet will limit the amount of bitcoin employees can receive on a monthly basis to 100,000 yen, around $881. As the number of bitcoin-receiving employees increase and the new payroll system continues to operates seamlessly, the company will increase the maximum limit of $881.

GMO Fully Committed to Serving Japanese Bitcoin Market
In May, GMO announced the launch of Z.com Coin, a cryptocurrency exchange targeted at institutional investors and retail traders, to address the rapidly growing demand from investors within the traditional Japanese finance sector for bitcoin.

Since May, for more than seven months, GMO’s Z.com Coin have been operating a cryptocurrency FX and cryptocurrency trading platform, as an exchange regulated by the Japanese Financial Services Agency (FSA). At the time, GMO emphasized that the Japanese cryptocurrency market could reach a market valuation of 1 trillion Japanese yen (JPY) in the next few years, expressing their optimism towards the exponential growth rate of the Japanese cryptocurrency market.

In October, GMO revealed the company’s long-term plans to compete in the global bitcoin mining industry, challenging dominant players within the market such as Bitmain. The firm stated that it will design and manufacture its own ASIC miners and mining equipment in partnership with a local semiconductor manufacturer.

“We will use cutting-edge 7 nm process technology for chips to be used in the mining process, and are currently working on its research and development with our alliance partner having semiconductor design technology to realize high performance computer for mining. It will be possible to reduce power consumption compared to the existing mining machines with the same performance, and achieve a computational performance of 10TH/s per chip,” said GMO.

GMO further emphasized that its mining center and operations will relocate to Northern Europe to utilize “plentiful renewable energy” and take advantage of the regions’ naturally cold climate to prevent ASIC miners and bitcoin mining equipment from overheating.

In the upcoming months, GMO is expected to allocate nearly 10 pecent of the company’s capital in improving its cryptocurrency exchange and mining ventures, to remain at the forefront of Japan’s cryptocurrency market.

Importance of GMO’s Bitcoin Payroll
Currently, bitcoin is widely adopted and recognized as a robust store of value and censorship-resistant money. The majority of bitcoin holders utilize the cryptocurrency to store or transfer their wealth. As such, several analysts including JPMorgan strategist Nikolaos Panigirtzoglou and ACG Analytics strategist Larry McDonald noted that bitcoin is already penetrating into the multi trillion dollar market of gold.

GMO’s integration of bitcoin into its payroll system participated by thousands of employees is crucial because it sets a precedent across the nation and for other conglomerates in the country. Given that bitcoin is a legal currency in Japan, in the long-term, an increasing number of conglomerates will likely adopt bitcoin as a payment method.

https://www.cryptocoinsnews.com/multi-billion-dollar-japanese-tech-conglomerate-pay-employees-bitcoin/

Lol.

Institutional Sights Set on Bitcoin, Crypto Going Into 2018

If the November and December crypto bull market and flurry of institutional attention have taught us anything, it’s that Bitcoin and its cohorts are red hot going into 2018. Mainstream exposure has ignited public interest in cryptocurrency, and financial institutions can’t wait to get their hands into the market. Meanwhile, governments are scurrying to accommodate crypto and its markets in their regulatory frameworks, as all signs point to 2018 as being blockchain’s year of adoption and regulation.

ALL EYES ON CRYPTO

Bitcoin continued its healthy uptrend today in the wake of the CBOE futures listing, as the market continues to show its optimism entering 2017’s home stretch. Investor confidence is so strong that CBOE’s Bitcoin Futures ($XBT) traded over 800 contracts within two hours of its launch; that’s a healthy US$12,000,000. Futures-buying traffic was so high, in fact, that CBOE’s website crashed as a result.

The massive interest in CBOE Bitcoin Futures is intriguing in its own right, but it’s part of a larger pattern. In recent months, mainstream investors, businesses, and governments have taken an increasing interest in cryptocurrencies and blockchain technology. We’re starting to see cryptoassets receive traditional investing treatment and corporate adoption of the blockchain, and this leaves governments with the task of formally accommodating a previously unregulated market.

BLOCKCHAIN MEETS TRADITIONAL MARKET, BIG BUSINESS

Every day, news articles tell the same story with a different tone: institutional interest in Bitcoin is on the rise, and it’s quite literally bringing the market with it. Conventional financial organizations have begun to tap into Bitcoin’s investing potential, making it more accessible to the general public.


We’ve seen this most recently with CBOE Bitcoin Futures, but CBOE was just the first to the punch. The CME Group is slated to launch futures trading starting December 18, and NASDAQ has plans to provide futures for its NFX market sometime in 2018. Such formal market integration is not confined to the US either. In Japan, for instance, the Tokyo Financial Exchange plans to launch its own Bitcoin futures “as quickly as possible,” according to CEO Shozo Ohto.

For Japan, Bitcoin futures seem to fall in line with business and enterprise acceptance of blockchain in general. For example, GMO Internet Group, Japan’s largest internet provider, recently announced that it will begin providing employees with the option to be paid their salary in Bitcoin. This news comes at a time when 37 Korean and Japanese financial institutions, including SMBC and Resona Bank, will experiment with remittance payments using Ripple and its token, XRP.

GOVERNMENTS RESPOND WITH REGULATION

As cryptocurrencies begin mingling with traditional markets, many governments have taken steps to regulate these previously unregulated financial assets. While some may view these regulations as a hindrance, some believe that they contribute to crypto’s overall growth.

And once again, Japan is contributing to this growth. Since September, the Japanese Financial Services Agency has registered and approved 15 cryptocurrency exchanges for public trading, while making it clear that only these 15 exchanges will be legally permitted to trade cryptoassets.

Meanwhile, in the United States, the launch of Bitcoin futures has prompted two companies to apply to launch Bitcoin exchange-traded funds: the REX Bitcoin Strategy and Short Bitcoin Strategy ETF and the VanEck Vector Bitcoin Strategy ETF. Both ETFs hope to launch sometime in the new year.

These are just a few examples of how governments are responding to crypto’s rise to public prominence. The UK has plans to up its own regulatory ante, the Philippines has rolled out a game plan for handling ICOs, and Russia may be turning to cryptocurrencies to circumvent sanctions on oil trading.

It’s becoming increasingly clear that 2018 will be a defining year for blockchain technology. As we enter the new year, cryptocurrencies will likely continue to make waves with a sea of public and institutional attention, and we’ll be eager to see how adoption takes shape and how governments react to crypto’s arrival in the mainstream.

https://themerkle.com/institutional-sights-set-on-bitcoin-crypto-going-into-2018/

Spending the world’s most popular cryptocurrency is still a big challenge. Although there are a few merchants out there which accept BTC directly, none are particularly big, other than Overstock. It now seems eBay may welcome Bitcoin to its platform in the very near future, if recent reports are to be believed.

EBAY MAY EMBRACE BITCOIN AFTER ALL

Most people who have ever dealt with eBay know the company isn’t too keen on alternative payment methods. More specifically, it would prefer that people stick with PayPal – despite these companies being separate entities these days – or use wire transfers. Even when Skrill (formerly known as Moneybookers) was added as an option, the platform still preferred users to accept PayPal as well. Avoiding potential scammers and fake listings has always been a major concern for the company.

Moreover, eBay doesn’t have a great reputation when it comes to cryptocurrency listings either. That is only normal, as no one should sell cryptocurrency on auction sites in the first place. There is no recourse if a deal goes awry, and it would reflect badly on the company if a buyer or seller were to file such a complaint. Rest assured such events have transpired on the platform over the past few years. It has always seemed as if eBay would rather stay as far away from Bitcoin as possible.

That situation may come to change soon, according to an article on Yahoo Finance. It is possible to buy crypto mining equipment on the platform, or any merchandise related to cryptocurrency. However, one must pay for such items in the usual way, which often involves PayPal. It seems the company is considering adding a Bitcoin payment option in the near future. There is no timeline for when this might occur, and the company is still “only seriously considering” this option for the future.

That is where the world is going right now...especially in 2018, don't be left out!


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Spending the world’s most popular cryptocurrency is still a big challenge. Although there are a few merchants out there which accept BTC directly, none are particularly big, other than Overstock. It now seems eBay may welcome Bitcoin to its platform in the very near future, if recent reports are to be believed.

EBAY MAY EMBRACE BITCOIN AFTER ALL

Most people who have ever dealt with eBay know the company isn’t too keen on alternative payment methods. More specifically, it would prefer that people stick with PayPal – despite these companies being separate entities these days – or use wire transfers. Even when Skrill (formerly known as Moneybookers) was added as an option, the platform still preferred users to accept PayPal as well. Avoiding potential scammers and fake listings has always been a major concern for the company.

Moreover, eBay doesn’t have a great reputation when it comes to cryptocurrency listings either. That is only normal, as no one should sell cryptocurrency on auction sites in the first place. There is no recourse if a deal goes awry, and it would reflect badly on the company if a buyer or seller were to file such a complaint. Rest assured such events have transpired on the platform over the past few years. It has always seemed as if eBay would rather stay as far away from Bitcoin as possible.

That situation may come to change soon, according to an article on Yahoo Finance. It is possible to buy crypto mining equipment on the platform, or any merchandise related to cryptocurrency. However, one must pay for such items in the usual way, which often involves PayPal. It seems the company is considering adding a Bitcoin payment option in the near future. There is no timeline for when this might occur, and the company is still “only seriously considering” this option for the future.

so newbies like me who want to jump on the bandwagon..how and where do istart please?

remeber am a novice here

You must start reading.
Knowledge is power. Read about bitcoin, cryptocurrencies, blockchain.

start buying and investing in bitcoin, experience is the best teacher

bignero:



so newbies like me who want to jump on the bandwagon..how and where do istart please?

remeber am a novice here

Keanu Reeves: Bitcoin Will Destroy the Global Elite, Give Power Back to People.
Matrix star speaks out on the crypto currency revolution

As cryptocurrencies like Bitcoin, Ethereum and Lite Coin smash all records again this week, movie star Keanu Reeves has spoken out to reveal that they will "destroy the global elite" and "give power back to the people."

The Matrix star and Bitcoin enthusiast says he believes that "Bitcoin is the future" and will "free citizens of the world from global and economic slavery."

The famously down-to-Earth Canadian actor was shooting a promo film for his Arch Motorcycle company in Saddleback Butte State Park when he was asked on his thoughts for the future of the crypto craze, to which he said:
"This isn't just a fad, it's the future."

The people are tired of being controlled by the banks, seeing fat-cat bankers get rich and the expense of hard-working citizens."

Bitcoin is giving the power back to the people and it will destroy the oligarchs and the global elite in the process."


Read more at: http://www.neonnettle.com/news/3368-keanu-reeves-bitcoin-will-destroy-the-global-elite-give-power-back-to-people © Neon Nettle

On December 12, Prime Minister Benjamin Netanyahu openly commented on the future of banking, seen through a youtube video.

He believes that blockchain technology will replace traditional banks as a result of bitcoin’s growth this year.

The video is one of the first instances where a world leader has openly addressed and commented on cryptocurrencies and the bitcoin. With governments and Central Banks around the world concerned over the unstable growth of digital currencies, Netanyahu, a prominent world leader, expresses his honest opinions on the future of banking.

The Prime Minister states in Hebrew:

Is the fate of banks that they will eventually disappear? Yes. The answer is Yes. Does it need to happen tomorrow? And do we need to do it through Bitcoin? That’s a question mark.

Israel, like many other countries, is currently under a digital currency craze. There have been local media reports of daily price changes and overnight millionaires. There are reports of people queuing outside Bitcoin ATMs in Tel Aviv.

Despite this frenzy, Prime Minister Benjamin Netanyahu, an MIT graduate and previously, an economic consultant for the Boston Consulting Group, understands the value in the blockchain, the underlying technology of cryptocurrency.

Netanyahu’s view on banks and blockchain technology
When Netanyahu spoke about the role of banks, he saw that their purpose, to ensure valid and safe transactions between two parties, could be disrupted by the blockchain.

In the 70 second video, he states that a bank is more of a middleman and sees blockchain as a decentralized alternative to the current centralized banking system. ‘The truth behind what I just said is what’s propelling Bitcoin upwards.’ The blockchain can perform all the functions of a bank without the need for an inefficient central institution who takes a transaction cut every time.

The Crypto Industry’s Response
The Cryptocurrency Industry responds positively to Netanyahu’s comments. The Street demonstrates that Rami Shechter, CEO and founder of Vanywhere, a blockchain peer to peer sharing platform ‘agrees with Netanyahu’s vision regarding the disappearance of banks in the future, possibly due to cryptocurrency. We believe that the biggest news about cryptocurrency in relation to banks is the reduction of fees. People have had enough with middlemen and third parties taking cuts of every transaction.’

Adam Perlow, founder, and CEO of Zen Protocol also agrees with Netanyahu. He states that ‘as the Israeli prime minister said, banks act as escrow agents which reduce counterparty risk. Bitcoin technology provides an alternative solution to counterparty risk. Bitcoin technology provides an alternative solution to counterparty risk by providing a new, more efficient sort of escrow mechanism – smart contracts. As in any industry, in the long term, it is hard to imagine any plausible outcome where the more effective solution does not render the previous solution obsolete.”

Netanyahu remains skeptical of Bitcoin’s future

Although Netanyahu sees the importance of bitcoin and blockchain technology, he is doubtful of Bitcoin’s longevity into the future as:

[T]here’s nothing like this, that will continue rising at this rate. It can’t happen.’

https://www.cryptocoinsnews.com/israels-prime-minister-believes-bitcoin-will-destroy-banks/

What the World's Central Banks Are Saying About Bitcoin

https://www.bloomberg.com/news/articles/2017-12-15/what-the-world-s-central-banks-are-saying-about-cryptocurrencies?cmpId=flipboard

Almost nine years since the birth of bitcoin, central banks around the world are increasingly recognizing the potential upsides and downsides of digital currencies.

The guardians of the global economy have two sets of issues to address. First is what to do, if anything, about the emergence and growth of the private cryptocurrencies that are grabbing more and more attention -- with bitcoin having popped through $17,000 and the start of futures trading heralding a new level of mainstream acceptance. The second question is whether to issue official versions.


Following is an overview of how the world’s largest central banks (and some smaller ones) are approaching the subject:

U.S.: Privacy Worry

The Federal Reserve’s investigation into cryptocurrencies is in its early days, and it hasn’t been overtly enthusiastic about the idea of a central-bank issued answer to bitcoin. Jerome Powell, a board member and the chairman nominee, said earlier this year that technical issues remain with the technology and "governance and risk management will be critical." Powell said there are "meaningful" challenges to a central bank cryptocurrency, that privacy issues could be a problem, and private-sector alternatives may do the job.

Randal Quarles, vice chair for supervision at the Fed, said Dec. 1 while the central bank has no policy toward regulation of bitcoin it is “worth thinking about.” The volume of cryptocurrencies could at some point "matter" when it comes to monetary policy, Powell said in answering a question at his Senate confirmation hearing in November. "They’re just not big enough" today, however, he said.

Euro Area: Tulip-Like

The European Central Bank has repeatedly warned about the dangers of investing in digital currencies. Vice President Vitor Constancio said in September that bitcoin isn’t a currency, but a “tulip” -- alluding to the 17th-century bubble in the Netherlands. Colleague Benoit Coeure has warned bitcoin’s unstable value and links to tax evasion and crime create major risks. President Mario Draghi said in November the impact of digital currencies on the euro-area economy was limited and they posed no threat to central banks’ monopoly on money.

China: Conditions ‘Ripe’

China has made it clear: the central bank has full control over cryptocurrencies. With a research team set up in 2014 to develop digital fiat money, the People’s Bank of China believes "conditions are ripe" for it to embrace the technology. But it has cracked down on private digital issuers, banning exchange trading of bitcoin and others. While there’s no formal start date for introducing digital currencies, authorities say going digital could help improve payment efficiency and allow more accurate control of currencies.

Japan: Study Mode

Bank of Japan Governor Haruhiko Kuroda said in an October speech that the BOJ has no imminent plan to issue digital currencies, though it’s important to deepen knowledge about them. “Issuing CBDC (central bank digital currency) to the general public is as if a central bank extends the access to its accounts to anyone,” Kuroda said. “As such, discussion about CBDC revisits fundamental issues of central banking.”

Germany: ‘Speculative Plaything’

In a country where lot of citizens still prefer to pay in cash, the Bundesbank has been particularly wary of the emergence of bitcoin and other virtual currencies. Board member Carl-Ludwig Thiele said in September bitcoin was “more of a speculative plaything than a form of payment.” A shift of deposits into blockchain would disrupt banks’ business models and could upend monetary policy, Thiele said. At the same time, the Bundesbank has been actively studying the application of the technology in payment systems.

U.K.: Potential ‘Revolution’

Bank of England Governor Mark Carney has cited cryptocurrencies as part of a potential “revolution” in finance. The central bank started a financial technology accelerator in 2016, a Silicon Valley practice to incubate young companies. Carney says technology based on blockchain, the distributed accounting database, shows “great promise” in enabling central banks to strengthen their defenses against cyber attack and overhaul the way payments are made between institutions and consumers. He has nevertheless cautioned the BOE is still a long way from from creating a digital version of sterling.

France: ‘Great Caution’

Bank of France Governor Francois Villeroy de Galhau said in June that French officials "advise great caution with respect to bitcoin because there is no public institution behind it to provide confidence. In history all examples of private currencies ended badly." Bitcoin even has a "dark side," he said, citing data attacks and warning that people who use the cryptocurrency "do so at their own risk."

India: Not Allowed

India’s central bank is opposed to cryptocurrencies given that they can be a channel for money laundering and terrorist financing. Nevertheless, the Reserve Bank of India has a group studying whether digital currencies backed by global central banks can be used as legal tender. Currently, the use of cryptocurrencies is a violation of foreign-exchange rules.

Brazil: Support Innovation

The Banco Central do Brasil sees “no immediate risk for the Brazilian financial system" but remains alert to the developments of the usage of those currencies, it said in a statement in November. The bank pledged “to support financial innovation, including new technologies that make the financial system safer and more efficient.”

Canada: Asset-Like

The Bank of Canada’s senior deputy governor, Carolyn Wilkins, who is leading research on cryptocurrencies, said in a November interview that cryptocurrencies aren’t true forms of money. “This is really an asset, or a security, and so it should be treated that way,” Wilkins said. As others, she viewed distributed-ledger technology as promising for making the financial system more efficient. BOC staff are also exploring the circumstances under which it might be appropriate for it to issue its own digital currency for retail transactions.

South Korea: Crime Watch

The Bank of Korea’s focus has been protecting consumers and preventing cryptocurrencies from being used as a tool of crime. Deputy Governor Shin Ho-soon said in November more research and monitoring was needed. So many Koreans have embraced bitcoin that the prime minister has warned cryptocurrencies might corrupt the nation’s youth. Policy makers are setting up a task force to review a possible cryptocurrency capital-gains tax, while seeking to avoid hurting blockchain technology.

Russia: ‘Pyramid Schemes’

Russia’s central bank has expressed concerns about potential risks from digital currencies, with Governor Elvira Nabiullina saying “we don’t legalize pyramid schemes” and “we are totally opposed to private money, no matter if it is in physical or virtual form.” For the moment, the Bank of Russia prefers to delay a decision on regulating the financial instruments unless President Vladimir Putin pushes for action sooner. The central bank will work with prosecutors to block websites that allow retail investors access to bitcoin exchanges, according to Sergey Shvetsov, a deputy governor.

Australia: Speculative Mania

Australia’s central bank chief criticized cryptocurrencies in a speech in Sydney Dec. 13, arguing the asset is more likely to appeal to criminals than consumers. “The current fascination with these currencies feels more like a speculative mania than it has to do with their use as an efficient and convenient form of electronic payment,” said Philip Lowe, Reserve Bank of Australia Governor. The bank is not planning to issue its own digital currency as a case hasn’t been made to do so, Lowe said. The RBA is in close contact with its peers in other countries and few see electronic banknotes coming, he said.

Turkey: Important Element

Digital currencies may contribute to financial stability if designed well, Turkish Central Bank Governor Murat Cetinkaya said in Istanbul in November. Digital currencies pose new risks to central banks, including their control of money supply and price stability, and the transmission of monetary policy, Cetinkaya said. Even so, the Turkish central banker said that digital currencies may be an important element for a cashless economy, and the technologies used can help speed up and make payment systems more efficient.

Netherlands: Most Daring

The Dutch have been among the most daring when it comes to experimenting with digital currencies. Two years ago the central bank created its own cryptocurrency called DNBcoin -- for internal circulation only -- to better understand how it works. Presenting the results in 2016, Ron Berndsen, who was in charge of the project, said blockchain may be “naturally applicable” in the settlement of complex financial transactions.

Scandinavia: Exploring Options

Like the Dutch, some Nordic authorities have been at the forefront of exploring the idea of digital cash. Sweden’s Riksbank, the world’s oldest central bank, is probing options including a digital register-based e-krona, with balances in central-database accounts or with values stored in an app or on a card. The bank says the introduction of an e-krona poses "no major obstacles" to monetary policy.

In an environment of decreasing use of cash, Norway’s Norges Bank is looking at possibilities such as individual accounts at the central bank or plastic cards or an app to use for payments, it said in a May report. Denmark has backtracked somewhat from initial enthusiasm, with Deputy Governor Per Callesen cautioning against central banks offering digital currencies directly to consumers. One argument is that such direct access to central bank liquidity could contribute to runs on commercial banks in times of crisis.

New Zealand: Too Unstable

The Reserve Bank of New Zealand’s Acting Governor Grant Spencer warned bitcoin’s runaway gains look like a speculative bubble. “Digital currencies, cryptocurrencies, are a real and serious proposition for the future,” Spencer said in a Dec. 10 interview with TVNZ. “I think they are part of the future, but not the sort that we see in bitcoin.” The central bank, once a pioneer on the global stage with its early introduction of an inflation target, had said in what it termed an analytical note in November it’s considering its future plans for currency issuance, and how digital units may fit into those strategies.

Morocco: Violating Law

Representing one of the more stringent reactions, the country has deemed that all transactions involving virtual currencies as violating exchange regulations and punishable by law. Cryptocurrencies amount to a hidden payment system, not backed by any institution and involving significant risks for their users, authorities said in a November statement.

Bank for International Settlements: Can’t Ignore


The central bank for central banks has said that policy makers can’t ignore the growth of cryptocurrencies and will likely have to consider whether it makes sense for them to issue their own digital currencies at some point. “Bitcoin has gone from being an obscure curiosity to a household name,” the BIS said in September. One option is a currency available to the public, with only the central bank able to issue units that would be directly convertible to cash and reserves. There might be a greater risk of bank runs, however, and commercial lenders might face a shortage of deposits. Privacy could also be a concern.

Agustin Carstens, the incoming head of the BIS, told Bloomberg that bitcoin deserves close scrutiny. "Anything that grows in price as fast as bitcoin has done it, without having a real clear understanding of what is behind it, should at least raise some eyebrows," he said.

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been reading about it for a while now,just haven't been able to make that move to buy some , maybe it's cos I don't have much , I'm still serving , but I want to start with a small token and see how it goes , enough procrastination.
but how do I trade once I have funded my wallet? and what a re the better coins to invest in?

I belong to a group where there one of the best analyst and traders.

Youy can stay there to learn. Send me and email and I will connect you.

But you can do yourself a lot of good by reading. Serious reading like you are preparing for final year project defence.

SpongeBobSP:
been reading about it for a while now,just haven't been able to make that move to buy some , maybe it's cos I don't have much , I'm still serving , but I want to start with a small token and see how it goes , enough procrastination.
but how do I trade once I have funded my wallet? and what a re the better coins to invest in?

No, Bitcoin Won't Boil the Oceans.

While much of the world marvels at bitcoin’s meteoric rise, another part is focused on an environmental byproduct: The sheer amount of electricity that crypto-currencies use. By some estimates, bitcoin’s consumption alone exceeds -- or will exceed -- that of Ireland, Denmark, Japan or even the entire world.

Instead of worrying about how soon bitcoin will melt the polar ice caps, though, it’s worth considering how much energy might be saved.

Digital currency is wasteful by design. Bitcoin “miners,” who process transactions in return for new currency, must race to solve extremely difficult cryptographic puzzles. This computational burden helps keep the transaction record secure -- by raising the bar for anyone who would want to tamper with it –- but also requires miners to build giant farms of servers that consume vast amounts of energy. The more valuable bitcoin becomes, the more miners are willing to spend on equipment and electricity.

Still, it’s important to put things in perspective. A recent report suggests that at current prices, Bitcoin miners will consume an estimated 8.27 terawatt-hours per year. That might sound like a lot, but it’s actually less than an eighth of what U.S. data centers use, 1 and only about 0.21 percent of total U.S. consumption. It also compares favorably to the currencies and commodities that bitcoin could help replace: Global production of cash and coins consumes an estimated 11 terawatt-hours per year, while gold mining burns the equivalent of 132 terawatt-hours. And that doesn’t include armored trucks, bank vaults, security systems and such. So in the right context, bitcoin is positively green.

What’s more, bitcoin’s consumption won’t necessarily keep rising as it has. Data centers, for example, have gotten a lot better. Not long ago, the Department of Energy was predicting that their electricity use would double every five years, and Google was getting slammed for consuming enough to power 200,0000 homes. In recent years, though, the centers’ total electricity use has flattened even as their number has kept growing. As it turned out, better cooling and power management technology improved efficiency. Bitcoin miners are no less motivated by profit, so it stands to reason that they will seek to become more efficient and employ the cheapest energy available, which generally means hydroelectric plants and other renewable sources.

It’s easy to criticize bitcoin for being wasteful. But so are many things in life, including airplanes, commuting to work and Sunday Night Football. A return to subsistence farming could drastically reduce our carbon footprint, but sometimes using energy to improve our quality of life is worthwhile.

The bitcoin network has the potential to generate a lot of benefits. How much is sound money worth? How about the ability to send money freely across borders, with no permission or central counterparty involved? Or to own an asset that can’t be seized? People in the U.S. and other developed countries might take these things for granted, but people in places like Zimbabwe and Venezuela are turning to bitcoin for survival. So perhaps all those computations aren’t wasteful: Maybe the miners are simply transforming the energy into something more valuable.

https://www.bloomberg.com/view/articles/2017-12-07/bitcoin-is-greener-than-its-critics-think

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Belarus Acknowledges Bitcoin as a Legal Currency, Legalizes ICOs

https://www.ccn.com/belarus-acknowledges-bitcoin-legal-currency-legalizes-icos/

The government of Belarus, with the approval of its President Alexander Lukashenko, has officially acknowledged bitcoin as a legal currency and has legalized initial coin offerings (ICOs), smart contracts, and blockchain development.

Tax-Free, ICO Legalized, Blockchain Industry
The document approved by President Lukashenko entitled “On Digital Economy Development,” read:

“The main goal of the document is to create such conditions that global IT companies would come to Belarus, open their representative offices, development centers, and create popular products in the world.”

Unlike several major bitcoin markets like South Korea, the Belarus government will not tax mining, trading of cryptocurrencies, and sale of digital tokens. According to Belarus Hi-Tech Park director Vsevolod Yanchevsky, activities related to mining, creation, acquisition and sale of digital tokens will remain tax-free until 2023, throughout the next five years.

“Having adopted the Decree, Belarus Becomes one of the world’s most comfortable jurisdictions for IT business. Besides, the country is creating favorable conditions for the development of blockchain technology and businesses based on it,” said Yanchevsky.

The primary motive of the government of Belarus in providing a favorable environment for both cryptocurrency businesses and investors is to better facilitate the growth of its digital economy, beginning with the fastest growing technology and financial network in bitcoin.

Similar to Zug in Switzerland, better known as Crypto Valley, the Belarus government plans to address the rapidly growing demand for ICOs and token sales by establishing an ecosystem in which blockchain projects and startups can freely, without being concerned about regulatory conflicts and boundaries, issue crypto-tokens.

Denis Aleinikov, a senior partner at law firm Aleinikov & Partners, who is one of the main individuals that led the cryptocurrency bill to presidential approval, emphasized that the government also seeks to see an exponential growth rate in its smart contracts and blockchain industry.

As such, the government aims to provide full support towards decentralized applications and blockchain projects working toward commercializing and deploying smart contracts at a large scale.

“Smart contract may solve the fundamental problem of all humanity which is a failure to fulfill what has been agreed on paper. A computer program takes the function of a contract’s automatic fulfillment,” said Aleinikov.

Significance of Belarus’ Friendly Regulations
Currently, the global cryptocurrency market is largely dominated by four regions: the US, South Korea, Japan, and Hong Kong. The US and Japan settle more than 60 percent of the global bitcoin and cryptocurrency trades, while South Korea and Hong Kong account for more than 10 percent of the market.

In the past, leading cryptocurrency markets like Australia with innovative startups and well-backed early-stage companies struggled to demonstrate success due to the inefficient and impractical policies imposed by the government. This year, the Australian government passed various regulations to eliminate taxes for investors and offer friendly regulations for businesses. Still, the Australian bitcoin market is lagging behind other regions.

At this early stage of development and adoption, countries like Belarus could solidify themselves as leading regions in the global cryptocurrency market by garnering talents, startups, and projects.

great post. for newbies trying to go into crypto currency in 2018. with the sudden rise and fall in bitcoin value. when is the best time to purchase a bitcoin. and what are the factors that determines the rise and fall in the value of the crypto currencies.
thank you

Cryptocurrency market is mostly speculative. Driven by usual market forces- demand and supply.
If you are looking at long term, there is no best time to buy.

Most of all, it is widely recommended you diversify your cryptocurrency portfolio. Don't just hodl Bitcoin, add other good Cryptocurrencies. Some will outperformed others in terms of growth in 2018

GrAnDwEeZ:
great post. for newbies trying to go into crypto currency in 2018. with the sudden rise and fall in bitcoin value. when is the best time to purchase a bitcoin. and what are the factors that determines the rise and fall in the value of the crypto currencies.
thank you

Four Tips for Cryptocurrency Users in the New Year

While 2017 may have been the year that cryptocurrencies really started to get on people’s radar, I’m predicting that 2018 will be the year we see them become more widely adopted. Whether you’re just getting into cryptocurrencies now or are already a veteran, here are some tips for the upcoming year. Note: this is not financial or investing advice. Always do your own research and make your own choices.

DO YOUR OWN RESEARCH, AND BE THOROUGH!
One of the most common questions I get asked when at events or by friends and family is, “What is the next big coin I should invest in?” Frankly, I hate this question, because everyone should really be doing their own research into what projects and cryptocurrencies they wish to spend their money on. Not only is that the adult thing to do, but it also saves everyone from the embarrassing situation of blaming someone else for financial folly. Most projects nowadays have a lot of supporting documents and channels through which to get in touch with the team directly. There is no excuse for not being thorough and autonomous in your research in 2018.

DON’T GET TOO ATTACHED TO ANY ONE CRYPTOCURRENCY
Maximalism in cryptocurrency has never made sense to me. The beauty of crypto’s open-source nature is that if someone disagrees with how a project is going, they can fork away from it, or choose to buy different cryptos. Only believing in one and attacking all others results in a toxic zoo, where all crypto-curious individuals are scared away and all crypto-skeptics feel validated. So don’t get too attached, and definitely be civil in all of your interactions.

EDUCATE AS MANY PEOPLE ABOUT CRYPTOCURRENCY AS YOU CAN
I think that the community is what will make 2018 be the year of wider-spread cryptocurrency adoption. So go out there and tell people about it, or maybe even prepare some paper wallets of a cheap altcoin to pass out and let people try it out for themselves. With all the FUD from mainstream media and incessant attacks from skeptics, it is on the community to show off cryptocurrency’s true value.

LEAD BY EXAMPLE: ACTUALLY USE SOME OF YOUR CRYPTOCURRENCY
It can be tempting to never spend your cryptocurrencies. After all, what if they go up in price tomorrow? However, exclusively thinking this way turns the cryptocurrency community into a band of speculators, viewing their cryptocurrencies as fiat-correlated assets. That is not the original intention of cryptocurrencies. Cryptocurrency can only thrive if its use cases are apparent to users and adopters. If its main goal is to be a currency, then it needs to be a store of value but also a medium of exchange. Personally, I use a cold wallet for “savings” and a hot wallet for “spending” much like I do with my fiat assets, which seems to work pretty well.

This post first appeared on the Merkle
https://themerkle.com/four-tips-for-cryptocurrency-users-in-the-new-year/

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Venezuelan President Maduro has ordered the issuance of the first 100 mln Petros, an oil-backed national cryptocurrency. He also indicated that each Petro would have the value of a single barrel of oil. He said:

“I’ve ordered the issue of 100 million Petros, based on national wealth. Each Petro will have the value of a barrel of Venezuela’s oil.”

The first national meeting of Petro miners will occur on January 14, along with the publication of the whitepaper. The announcement is in line with the previous statements from Maduro that the country would issue an oil-backed cryptocurrency.

The country’s massive hyperinflation problems have led to widespread lack of trust in the national currency, the Bolivar. This has caused much of the population with access to appropriate technology to pursue Bitcoin as a means of stable transactions - called ‘Bitcoinization’ by some economists.

Other countries including Zimbabwe have also seen widespread Bitcoin adoption in the face of financial instability.

https://cointelegraph.com/news/president-maduro-venezuela-to-issue-first-100-million-petros