1 = 906.92 USD

Bitcoin News

Bitcoin Business and Companies

Within Bitconnect’s Bitcoin Business section, you’ll find the latest news on new products, features and news items that relates to crypto currency business, worldwide. If you need the latest bitcoin business news, Bitconnect will help you understand how crypto currency business is growing every day.




  • Bitcoin Exchanges in China Change Trading Rules After Regulator Visit

    ​he world of Bitcoin is a new, exciting, and largely unregulated place. This has its pros and cons, but the recent bubble bursting earlier this month caused quite a stir in China, where the lion’s share of the world’s Bitcoin trading takes place. The issues uncovered were enough to draw regulators into the top three Bitcoin exchanges in the world, and this, in turn, has driven these exchanges to alter they way they will do their Bitcoin business transactions in 2017.

    The end of a Golden Era in Bitcoin Trading

    In China, these massive exchanges have made their volumes explode due to their no-fee trading policies. This has attracted new business and has forced a fierce competition for that no-fee business. This has also led to inflated volume trading numbers, as many of these trade made were account owners trading to themselves to drive down their withdrawal fees, the way the exchanges actually earn an income in this business model.

    "(Since there are no transactional fees,) Chinese exchanges generate most of their revenue from CNY withdrawal fees,” said Neil Woodfine, Chief Operating Officer of Remitsy earlier this month. “And these CNY withdrawal fees are tiered based on each trader’s trade volume, encouraging traders to trade as much as possible to lower the cost of withdrawing their profits".

    Problem was that the sheer number of trades attempting to take place when Bitcoin was dropping fast prevented many from accessing their funds and protecting their digital wealth. We reported that some changes were likely to come after this calamity, and some consumer complaints, some discussions with regulators and some internal meetings generated the following policy changes. These will take effect in all three major Chinese exchanges, BTCC, Huobi, and OKCoin, starting tomorrow. Here’s the message on OKCoin’s News page.

    In order to curb speculation and prevent price volatility, currency OKCoin line will take effect January 24, 2017, 12:00 start charging transaction fees, specific adjustments are as follows: 1. Transaction fees according to a fixed proportion collect, sell the yuan, to buy or collect bitcoin, litecoin; 2. active and passive auction turnover rates; 3. service fee charged by a fixed rate of 0.2% of turnover.

    A similar message can be seen on the other exchange’s blogs, news pages, or Twitter feeds. This should reveal the true trading volume of each, and rebalance the market, somewhat. Interestingly, the London’s Coinfloor announced this weekend that they are going to a no-fee trading strategy, effective immediately, obviously to fill this market void and attract a new level of volume from traders around the world.

    So no shortage of major changes in major markets, with Donald Trump getting inaugurated on Friday, Chinese exchanges and their regulators changing their trading practices and Coinfloor looking to become a global force. The news may have influenced the buying market, as Bitcoin values rose about 3% over the weekend.

    Author : Evander Smart

    Evander Smart worked for many years as a Wall Street banker, and has learned how the economy is self-destructing from the inside. His travels, experience and research have led him to Bitcoin as the best way forward for the common man. He looks to spread the word on how Bitcoin can help anyone break the shackles of economic slavery being created by global establishment forces. Evander gets you thinking about what money really is, and how it will work for you going forward. The world of finance is getting ready for incredible changes, and he is getting ready for what's coming next. Are you? Learn more about "The Future of Money" @ Bitcoin Video University

  • Anti-corruptionserviceonblockchain.E-Auction 3.0 developer will attend Tallinn

    On March 9, 2017, one will present the electronic auction service – e-Auction 3.0 – at Blockchain&Bitcoin Conference in Tallinn. This project has been developed by Ukrainian IT specialists. Its concept is to replace officials for transparent blockchain. It shows conditions, process and results ofpublic property lease and sale auctions

    E-Auction 3.0 is one of significant government control projects: it has shown that the problem related with subjective decisions and intervention on trading can be eliminated by the code. The service was tested in the range of Ukrainian cities and won support of certain administrations.

    Big Ukrainian banks and Microsoft helped the team of developers. A lot of people were participating in the project voluntarily, so its implementation didn’t even require money investments, told LashaAntadze, the development of e-Auction 3.0 and participant of major blockchain conferences.

    At Tallinn conference, he will present the govtech service, well-known in Ukraine and Russia, and tell about the project development.

    According to organizers, Karolina Martsantovich (leadingIBM engineer), KasparKorjus (e-Residency Managing Director) and Jon Matonis (founder of BitcoinFoundation) have already confirmed their participation in the event.

    You can find more details and register on the website: Blockchain&BitcoinConferenceTallinn.

    The published press release on this page should not be viewed as an endorsement by us. The website or company may be unsafe, untrustworthy, or illegal in your jurisdiction. You should do your own research before investing money in any company or website.

  • Davos Economic Forum Report - The Annual Bitcoin-bashing Recap

    ​​Every January in Switzerland, the world’s leading corporate thinkers arrive to pat themselves on the back for how smart they are at lying to the people and manipulating the market with a total disregard for business ethics. This year’s edition was no exception, and we provide you the latest Bitcoin news from of the World Economic Forum that ends today. 

    The World Economic Forum, since 1971, has engaged the foremost political, business and other leaders of society to shape global, regional and industry agendas. One of the hottest topics in global economics is Bitcoin’s blockchain technology, which has been adopted by many of these in attendance because it is clearly superior to anything they have provided over the course of their careers. To hear them tell it, Bitcoin was an unfortunate side-effect of the technology.

    "To be efficient, the currency has to be a stable store of value. That is something that Bitcoin does not have," Cecilia Skingsley, the deputy governor of the Swedish National Bank explained." We have a strong product to offer from the central bank. If people don't like it, and they don't trust the state, they can use other methods. Use black cats, or cupcakes, that's up to you. We provide the state option, which is safe, efficient and widely distributed, with a stable store of value".

    A central banker will never tell you that the value of their currency over time is designed to lose money every year, in perpetuity, due to inflation and other market factors. Somehow, their fiat currency, that they consistently print into oblivion, is better than an asset class that rose in value 126% last year, 35% the year before, and can be sent in seconds for a dime. Imagine what else they aren’t telling you?

    Another myth is spun by Ant Financial CEO Eric Jing, who said. "The essence of blockchain is not about decentralization, but trust.” A properly made blockchain creates a decentralized network that doesn’t require a central authority to trust, thereby distributing trust in its decentralized network that can’t be corrupted, instead of one authority that can. The fact that these mainstream conpanies are generating value out of blockchain technology without its best capability, the ability to decentralize a network at scale, really just shows how outdated and behind the curve they are at this point.

    "Blockchain distributes trust among a group of people who have to work together, and who don't necessarily trust each other," said David Craig, president of finance and risk at Thomson Reuters. "They have to collectively agree to a standard of how they federate trust. The financial industry hasn't traditionally been good at collaboration, and this offers a way of changing.”

    Blockchain technology will improve various businesses in becoming more efficient in the years to come. However, its mainstream appeal will always date back to an origin of market disruption and monetary improvement, that Bitcoin provided the world.

    If Bitcoin didn’t work, at scale, the mainstream would not have adopted blockchain technology, fintech, or any related creations. The executives at Davos might be able to monetize Bitcoin’s technology, without using its greatest creation, but they cannot co-opt Bitcoin’s value to the future of money.

    Stroking blockchain, while denigrating Bitcoin, reminds me of an old Nike commercial. Spike Lee, playing a character known as Mars Blackmon in a 1989 Michael Jordan Nike commercial, kept saying Jordan could jump so high not because of anything inherently special about Jordan.

    “It’s gotta be the shoes!”

    Author : Evander Smart

    Evander Smart worked for many years as a Wall Street banker, and has learned how the economy is self-destructing from the inside. His travels, experience and research have led him to Bitcoin as the best way forward for the common man. He looks to spread the word on how Bitcoin can help anyone break the shackles of economic slavery being created by global establishment forces. Evander gets you thinking about what money really is, and how it will work for you going forward. The world of finance is getting ready for incredible changes, and he is getting ready for what's coming next. Are you? Learn more about "The Future of Money" @ Bitcoin Video University

  • Mercedes Acquires European Bitcoin Payment Provider PayCash

    Gaining acceptance on a mainstream level for Bitcoin is going to take time, and most likely will not magically appear with one or two landmark deals between industry mega powers. It may just be a gradual process over time, like beach erosion.

    Many major corporations are accepting blockchain technology outright, and Bitcoin may enter soon after. Mercedes’ Daimler Financial Services Corp. made a backdoor foray into the world of decentralized digital currencies with their announced acquisition of Paycash Europe SA this week.

    Paycash has been around since 2012 with the Luxembourg company providing digital payment solutions that include PayPal, Skrill, Amazon payments, Alipay and Bitcoin real-time. This will be almost immediately rebranded as ' Mercedes Pay’ by the company, allowing smartphone mobile payments to their clientele.

     

    “Our philosophy is to provide mobility at your fingertips,” said Klaus Entenmann, Chairman of the Board of Management of Daimler Financial Services AG. “‘Mercedes pay’ allows our customers to easily and securely pay for our mobility offerings and services using their smartphones. “Mercedes pay” will mainly benefit customers who, in the future, will only need to provide their payment details one time, in order to be able to use a range of Daimler’s services. This is made possible by the eWallet function, a virtual source of payment.”

    Daimler has made no specific mention of a Bitcoin payment future for MercedesBenz automobile owners, but obviously, this is a step in that direction. It may become just a matter of making a phone call or updating a server before this is a reality in the not too distant future.

    Paycash says they can process payments in all major fiat currencies, giving Daimler incredible flexibility. Daimler has also stated that it “plans to use the new payment system to facilitate these and other financing transactions in the future.”

    The automotive industry has been slow to accept alternative methods of payments, with even older companies like PayPal still on the outside of automotive financing, looking in. The demographics and growth potential of Bitcoin’s user base may force the issue in the years to come. Plus, getting paid in an asset that clears in minutes, setting up your brand as ‘cutting edge’, and appreciates over time may be appealing to many OEM financing companies in the years to come.

    Author : Evander Smart

    Evander Smart worked for many years as a Wall Street banker, and has learned how the economy is self-destructing from the inside. His travels, experience and research have led him to Bitcoin as the best way forward for the common man. He looks to spread the word on how Bitcoin can help anyone break the shackles of economic slavery being created by global establishment forces. Evander gets you thinking about what money really is, and how it will work for you going forward. The world of finance is getting ready for incredible changes, and he is getting ready for what's coming next. Are you? Learn more about "The Future of Money" @ Bitcoin Video University

  • BitConnect Connects With Bitcoin Startup Cashaa - Can They Disrupt LocalBitcoins?

    ​​New and innovative services are popping up all the time in the digital currency space and today marks the launch of Cashaa, a new blockchain-based p2p marketplace. Cashaa markets themselves as a new service enabling zero-fee cash transfers. Based out of London by Kumar Gaurav, Cashaa does not charge the cash sender and receiver any fees, Cashaa does not require them to have a bank account or mobile wallet and transactions are conducted at a real-time exchange rate.

    BitConnect sat down with Mr. Guarev to get the details on just how disruptive this new service can be.

    What spurred you to create this service? What is the true genesis of Cashaa?/How did you get started in Bitcoin or digital currency services?

             

    "During my management studies, I traveled and met a lot of interesting people worldwide, and also had to use Western Union. I was wondering why companies would charge so much for something as simple as exchanging money. Losing 10-12% of the money was annoying, and so was the thought that there are people who with honest work make less money than Western Union, which does not create anything itself, but only exploits its customers."

    “In the same time in 2014, I met cryptocurrency traders and got involved in Bitcoin and blockchain. Bringing this together with my experiences, the idea for Cashaa was born. I decided to focus on the cash transfer market, as it is less serviced than bank-to-bank transfers, and people are paying these crazy fees plus exchange rate fees, and technology had not helped in this situation yet. Therefore, I started Cashaa.”

    This sounds a lot like LocalBitcoins.com concept, except the goal is to send money overseas, not with the goal of buying and selling BTC. Is that fair that they are similar in design? Can you perform these trades online, or only in person?

    Unlike LocalBitcoins, we are marketplace matching cash senders with any cryptocurrency traders. It can disrupt LocalBitcoins and cash exchanges at the same time. Now traders can find a trade without the physical presence of their counterpart in the same location. We are opening a global market for the crypto-traders and using the liquidity from cash remittance industry to connect the local bitcoiners in different countries.

    Until now, we have seen that bitcoin or cryptocurrency is being utilized by a very limited section of society with a sole purpose of speculation. But now, with Cashaa, people can send money to their friends and family without any cost without involving in bitcoin and leaving it to the traders who are speculating it on LocalBitcoins or an exchange. Even more, than this, it will help to educate more people outside of the crypto- currency industry by giving them a use case which is touching their day-to-day life.

    Cashaa works as follows: The cash sender sends a request, including how much money they want to have delivered, in which city, and which currency, to whom and in which time. We send a notification to all traders in the sender and the receiver`s city, who then can make their bid to pick up and deliver cash for selling and buying cryptocurrency. Once a match is found, the money sender and receiver are each meeting the individual trader in person, in a public place, in their city. Our current product is for cash in and cashes out.

    “We wanted to serve the most unserved section of the society, which is Western Union customers sending money that are still paying the very high fee. Cashaa is for them, and in future versions, our users will able to send and receive money through bank accounts, credit cards, as many other payment options.”

    So if there are really no fees on trades, how does Cashaa make money?

    “Whereas Cashaa is not charging the cash sender and receiver, we are making money through the traders. Traders through us get an increase in market size and a higher profit margin, compared to their local market. We don't charge any fixed fee like LocalBitcoins or exchanges. Our traders are free to choose their bid and ask price depending on their local market, and we keep anything left between them.”

    I understand this does not support altcoins, currently. Can you explain how that will be implemented in the future?

    The decision to come up with the only bitcoin was due to our test results and market size. In April 2016, for testing purposes, we launched a trading platform called Btc2Bid, which was Bitcoin-only. During testing, we had more than 10,000 traders sign up from 126 countries, who transferred about $2 million USD without us even having to spend anything on marketing.

    Cashaa will first be launched using this network of Bitcoin traders, but we are cryptocurrency/token-agnostic. We are building an internal InterLedger. So, for example, the trader on one side can be a Bitcoin trader, and the trader on the other side can be an altcoin trade. Therefore, we invite traders of any cryptocurrency to join us.

    The year is now 2020. Where is Bitcoin in the world of finance and where is Cashaa in the world of Bitcoin?

    “In 2020, Bitcoin will break all the rumor and negativity made around it and will establish itself into consumer space. Many killer Apps will launch which will help to deliver the advantage of Bitcoin and Blockchain to average consumers. As an asset Bitcoin has proven many times that it rise more sharply when political and economic issues have grown, which I think will bring more institutional investors into the domain to balance their portfolio. “

    Cashaa is one of the service builds on bitcoins and cryptocurrency connect the average and advanced consumers. Cashaa aim will be to develop a decentralized escrow system, exchange and serve as many as countries we can to build a win-win ecosystem for everyone.

    Author : Evander Smart

    Evander Smart worked for many years as a Wall Street banker, and has learned how the economy is self-destructing from the inside. His travels, experience and research have led him to Bitcoin as the best way forward for the common man. He looks to spread the word on how Bitcoin can help anyone break the shackles of economic slavery being created by global establishment forces. Evander gets you thinking about what money really is, and how it will work for you going forward. The world of finance is getting ready for incredible changes, and he is getting ready for what's coming next. Are you? Learn more about "The Future of Money" @ Bitcoin Video University

  • European Union Seeks to Fast-Track Bitcoin-bashing Regulations

    The crumbling dystopia that has become the globalist precursor know as the European Union has many problems. Many nations, if not most nations, are suffering from what seems to be an orchestrated destabilization of un-vetted immigration, leading to rampant crime waves that include, robbery, assault, and rape. One might characterize this alone as a mass exercise of terrorism. This pressing issue of rampant crime seems to be exploding, but the E.U. wants to get this problem with Bitcoin solved before the end of 2017.

    Maybe you haven’t heard…..

    The European Parliament has recently published “The Juncker Commission’s ten priorities” for 2017. These are ten issues that they see as most important to address in 2017 for the member states, and Bitcoin made this list. It seems Bitcoin has been labeled as a funding source for terrorism. Strike that.

    They obviously cannot say that Bitcoin is a funding source for terrorism, but they say “risks linked to” terrorism, in effect proving that this initiative is more of a witch hunt and power grab than an actual solution to a real problem. Here is their quote in their new report, which can be seen here

    Under subheading “Priority 7: An area of justice and fundamental rights based on mutual trust,”it states within the subsection “Fighting terrorism:”

    In July 2016, the European Commission proposed targeted amendments to the 2015 Fourth Anti-Money Laundering Directive. The issues addressed include safeguards for financial flows from high-risk third countries, EU financial intelligence units’ powers, centralized national bank and payment account registers, and risks linked to virtual currencies and anonymous pre-paid cards.

    The report does have plenty of hyperlinks leading to more European Union missives and directives. Bitcoin falls under the “Fourth Money Laundering Directive,” which refers to Bitcoin as “electronic money,” leads to more interesting quotes. Let’s look at the E.U’s views on people having Euros of any quantity, and how they’ll limit that ability.

    The use of large cash payments is highly vulnerable to money laundering and terrorist financing. In order to increase vigilance and mitigate the risks posed by such cash payments, persons trading in goods should be covered by this Directive to the extent that they make or receive cash payments of EUR 10,000 or more.

    Under Article 12 of the Directive, the regulation specifies if you have more than 250 Euros, you are to be subject to full “due diligence” disclosure, explained thusly:

    “….a Member State may allow obliged entities not to apply certain customer due diligence measures with respect to electronic money", where all of the following risk-mitigating conditions are met:

    (a) the payment instrument is not reloadable, or has a maximum monthly payment transactions limit of EUR 250 which can be used only in that Member State;

    (b) the maximum amount stored electronically does not exceed EUR 250;

    (c) the payment instrument is used exclusively to purchase goods or services;

    (d) the payment instrument cannot be funded with anonymous electronic money;

    In other words, expect to be subject to any and all kinds of attacks on your freedoms and dealings if you have more than 250 Euros worth of BTC linked to you if you are European Union property, that is. If you are packing this much dangerous electronic heat, you could be accused of anything, from tax evasion, to terrorism funding, to money laundering, or anything else the globalist state wants to attach to you.

    No wonder why the United Kingdom voted themselves out of this unelected mess, while the somewhat free people of Italy and France are angling to move on to better things later this year in upcoming referendums and elections. Globalism is losing to nationalism, and this may be just the beginning.

    Keep in mind the United Kingdom, France, and Italy make up three of the top four economies within the European Union, not including Germany, who has maintained the majority of the control of its governance and power, so they are not going anywhere. Yet, if another major force within departs, the E.U. should collapse in full by the end of the decade, IMO.

    The chances that both disengage is good enough where some E.U. leaders are considering preventing future referendums to keep Member States captive in this political failure. A former member of The Communist Party, Slovak Prime Minister Robert Fico, stated that the EU was struggling with various problems and he begged the 27 other EU members not to allow any more referendums, saying ”The people could not be allowed to decide their own future."

    Author : Evander Smart

    Evander Smart worked for many years as a Wall Street banker, and has learned how the economy is self-destructing from the inside. His travels, experience and research have led him to Bitcoin as the best way forward for the common man. He looks to spread the word on how Bitcoin can help anyone break the shackles of economic slavery being created by global establishment forces. Evander gets you thinking about what money really is, and how it will work for you going forward. The world of finance is getting ready for incredible changes, and he is getting ready for what's coming next. Are you? Learn more about "The Future of Money" @ Bitcoin Video University

  • The founder of Bitcoin Foundation and Forbes columnist will visit Blockchain Conference in Tallinn

     

     

     

     

     

    In March of the coming year blockchain developers and entrepreneurs will get together at Blockchain & Bitcoin Conference Tallinn to listen to the founding director of Bitcoin Foundation, fintech columnist with Forbes Magazine Jon Matonis.

    The independent cryptocurrency and blockchain analyst whose career has included influential posts at VISA International and fintech companies will speak about prospects of blockchain consortiums.

    He will focus on open blockchain with its advantages over private systems. Reliability, security and flexibility are real advantages of blockchain with open access. Jon Matonis believes that developers of private blockchain should coordinate in order to benefit the market.

    He will present ideas of his articles for Forbes, American Banker and CoinDesk.

    Except for Jon Matonis, the conference will be visited by developers of fintech and govtech blockchain services as well as European cryptocurrency experts. To find out more visit the website of the conference.

    Where and when: Tallinn, 9 March 2017

    The published press release on this page should not be viewed as an endorsement by us. The website or company may be unsafe, untrustworthy, or illegal in your jurisdiction. You should do your own research before investing money in any company or website.

  • Legal nationality beyond national boundaries and the role of blockchain

     

     

     

     

     

     

    Estonia, well-known by its electronic legal nationality project, is light years away from other countries in digitalization and business convenience area. Well, e-Residency project allows everyone anywhere on the planet to register a company, pay taxes and conduct document management in Estonia.

    On March 9 at Blockchain & Bitcoin Conference Tallinn, Kaspar Korjus, e-Residency Managing Director, will tell about operating principles of the project and blockchain technology implementation in its infrastructure.

    At 29 years old, the expert is listed as #1 on the Forbes Estonia’s 30 under 30 in Technology and Finance category. Megan Smith, Google ex-vice-president, qualifies him as one of 20 global digital technology leaders.

    Within Tallinn conference, Kaspar Korjus will conduct an excursion across the global village project based on transparency and equality concepts.

    Besides e-Residency Director, the event will involve developers of govtech and fintech services based on blockchain and cryptocurrency business representatives.

    The published press release on this page should not be viewed as an endorsement by us. The website or company may be unsafe, untrustworthy, or illegal in your jurisdiction. You should do your own research before investing money in any company or website.

  • Coinbase CEO Makes Officially Responds to IRS Tax Summons

    ​​The new year has not brought a new resolution to the pending issue between Bitcoin mega-corporation Coinbase and the IRS. About six weeks ago, the IRS filed a “John Doe” summons against Coinbase, and Coinbase alone, seeking an extreme amount of information on any and all users of their services from 2013-2015.

    This information includes transaction history, IP addresses, transcripts with customer support, and much more information, essentially treating every person who used Coinbase as a criminal. Over the weekend, Coinbase CEO Brian Armstrong fired back, speaking truth to power.

    Punished for being an American company

    Being an American sounds pretty darn sweet to many people around the world, but there is a price to pay for residing in “The Land of the Free.’ One of the prices extolled is mass surveillance, and this price is growing almost every day. The government seems to have an unlimited power, at the moment, to take any and all information about any American company and/or individual, and Coinbase is fighting this latest precedent-setting power grab in court.

    “We have worked to comply with all IRS guidance in our space, beginning with the March 2014 guidance on virtual currency,” said Armstrong in his Medium blog post. “I believe Coinbase and the IRS fundamentally want the same thing: for all U.S. users of virtual currency to pay their taxes. I also feel that the IRS sending us a John Doe summons on all customer accounts is not the best way for us to mutually accomplish this objective.”

    The official summons identifies exactly one taxpayer, identified as “Taxpayer 1,” and two companies, known as Taxpayers 2 and 3, who deal in Bitcoin and who knowingly used Bitcoin to avoid paying taxes required by the IRS. So, in other words, the summons has implicated three taxpayers and Coinbase is now unable to protect the identities of users.

    Coinbase receives this personal information from consumers under the guise that it will be safe from thrid parties, and this flies in the face of that, on top of unconstitutional illegal search and seizure statutes.

    “Their most recent subpoena asks us to turn over records on all customers. Suffice to say, we feel the IRS’s subpoena is overly broad and incorrectly implies that all users of virtual currency are evading taxes. Asking for detailed transaction information on so many people, simply for using digital currency, is a violation of their privacy, and is not the best way for us to accomplish our mutual objective.”

    Coinbase also rightly points out that they are being attacked in this legal manner, penalized, due to the fact that they are based in the United States and are essentially an easy target. Armstrong points out that other exchanges not based in the U.S. are not treated this way and would not be bound to fight the IRS legally. Given the amicable history between the two, Armstrong believes the IRS could have handled this better, and made it easier for users to report like other investors have seen in other industries.

    “Sadly, given the overly broad subpoena, it appears we will be forced to contest it in court to protect our customers privacy, at great expense. My hope is that the IRS is willing to work with us to establish a sensible reporting mechanism, like 1099 reporting that all brokerage services like Fidelity and Charles Schwab use. A protracted legal battle, seeking to reveal private information from people who are not evading taxes, would be bad for Coinbase, the IRS, and many U.S. citizens.”

    Author : Evander Smart

    Evander Smart worked for many years as a Wall Street banker, and has learned how the economy is self-destructing from the inside. His travels, experience and research have led him to Bitcoin as the best way forward for the common man. He looks to spread the word on how Bitcoin can help anyone break the shackles of economic slavery being created by global establishment forces. Evander gets you thinking about what money really is, and how it will work for you going forward. The world of finance is getting ready for incredible changes, and he is getting ready for what's coming next. Are you? Learn more about "The Future of Money" @ Bitcoin Video University

  • China Exposed - How China Does Not Control Bitcoin As Much As You Think

    ​​This article is as much for my own edification as anyone. I only report what I hear and whatever the Bitcoin market is doing in China is definitely third-hand, at best. The great part about my job is that I can learn about the digital currency I love while sharing this knowledge with the world because knowledge is power. Today, it is time to share some power. China is not the center of Bitcoin’s universe, as I and many of you have been led to believe.

    The stats are readily available only from Coinhills and other sources. About 95% of the world’s fiat exchanges into Bitcoin are from the Chinese Yuan/Renminbi, and about 80% of all the trades are done in China, and the three major Bitcoin exchanges do well over 98% of the volume in global Bitcoin trading. If you know this much, as I did, you only know the what the house of Bitcoin looks like, not how it was built, or how it is financed. Meet Neil Woodfine, who will teach us the rest of the Bitcoin in China story.

     

     

     

     

     

     

    See, Neil is the Cheif Operating Officer of Remitsy and he runs bitcoin meetups in Beijing, China on a regular basis. He has his “boots on the ground” in what has become the most active Bitcoin trading location in the world, and he reports in his blog post that activity in China when it comes to Bitcoin is not what it may seem. It is far more manipulated and far less ubiquitous as you may think, looking from the outside in, just reviewing the data from a chart on a website.

    His take is part one of a three-part series from China, covering Bitcoin’s exchange market as he sees it. So please check out his piece and the links he provides to more information if you want a more complete education on this very influential Bitcoin market. Here I will summarize his first edition. I’ll touch on three key concepts to China’s influence, or lack thereof.

    Firstly, the Chinese exchanges do not charge a transaction fee, which creates many intended and unintended consequences. Woodfine alleges that the sheer competition in this market has forced the companies to do away with any fees, but this ability to trade freely when most exchanges charge 0.2-1% is a false narrative when it comes to volume. Neil explains how this trading changes the market’s dynamics, which he calls "trading spam," or "fake trades," a la “fake news”.

    “(Since there are no transactional fees,) Chinese exchanges generate most of their revenue from CNY withdrawal fees. And these CNY withdrawal fees are tiered based on each trader’s trade volume, encouraging traders to trade as much as possible to lower the cost of withdrawing their profits.”

    So the exchanges seem much more powerful and popular in trade volume than in reality. In other words, many people set up two accounts, trade their one Bitcoin between the two accounts, drive up their trade volume, then withdraw their actual funds at the lowest exchange rate possible. And this is not just the average trader doing this, but the exchanges themselves engage in this fake trading practice, at much higher volumes than you or I could generate. This increased volume and liquidity attracts more buyers to each exchange, so it is effectively gaming the system.

    Woodbine figures that, without hard numbers that would not be disclosed by the exchanges or the traders, that the legitimate trade volume is about half of what is commonly reported, so more like 40-50% of the global trading market. Still the major player, but 90+% is a major over-exaggeration.

    This also doesn’t take into account the OTC (Over The Counter) market that also uses these exchanges from other countries, so it is also certainly not a 90% Chinese investor driven industry, either. There are plenty of savvy investors elsewhere who are using their low-cost system to make far better returns on digital commodity trading than the 7-8% Gold brought last year. When your currency value jumps over 125% in a year, the world will move in on your system, not just one country. Neil further explains:

    “But overplaying China’s trade volume leads to the wrong conclusion that bitcoin’s value is purely derived from its role as a speculative plaything for Chinese investors. It leads people to make the mistake that there is (an) existential risk to bitcoin in the Chinese government’s treatment of bitcoin trading or just Chinese traders’ whimsy.”

    So please use the link above, or look up Neil Woodfine of Twitter, for more details on his findings and future posts on this subject. He seems like a solid resource, being immersed in the Chinese Bitcoin market and being able to convey, in English, what is really going on. Those who do not trade in Bitcoin because they think China and its government have too much control seem to have been misled.

    The digital currency revolution will not be centralized.

    Author : Evander Smart

    Evander Smart worked for many years as a Wall Street banker, and has learned how the economy is self-destructing from the inside. His travels, experience and research have led him to Bitcoin as the best way forward for the common man. He looks to spread the word on how Bitcoin can help anyone break the shackles of economic slavery being created by global establishment forces. Evander gets you thinking about what money really is, and how it will work for you going forward. The world of finance is getting ready for incredible changes, and he is getting ready for what's coming next. Are you? Learn more about "The Future of Money" @ Bitcoin Video University