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  • China’s National Digital Currency: A Closer Look At This Game-Changer

    ​​​​​Look at which way the wind is shifting. With Bitcoin proving to be a global technological success, it will only have a few years jump on the greater economic markets. The nation-states are ready to catch up, and China, potentially the world’s largest economy, has been working to create a national digital currency system at warp speed. Its coming arrival looms over China, but what does it mean?

    No other monetary system will have this level of speed and economic power. The Chinese Yuan has far greater reach and value than the Indian Rupee, which is also going through a national currency revolution of its own. Yet, China seems to have planned this out far better and is about ready to release a national blockchain-based Bitcoin knock-off, without the daily appreciation in value.

    China has already worked to put their entire social security system on a blockchain, so they know how to create these systems at the massive scale they need. The People’s Bank of China released the broad strokes of how it would work last year. Here are some of the more important points of contact:

    • The PBOC creates cryptocurrency and transfers it to commercial banks when more liquidity is needed
    • Consumers would top up digital currency from modified automated teller machines or from bank tellers and store it in a crypto wallet on their mobile phone or another device
    • For purchases, consumers wire from their person wallet to the merchant’s account
    • The merchant deposits the cryptocurrency into their commercial bank account

    "Cutting costs is an obvious benefit, but the impact of shifting to blockchainbased digital money from the current payment structure goes beyond that," said Larry Cao, director of content at the CFA Institute in Hong Kong to Bloomberg. "There’s potential you can pay anybody in the system, any bank, and any merchant directly. Blockchain will change the whole infrastructure. This is revolutionary."

    It is hard for China to really hide the real reason they have gone from just talking about creating a national digital currency one year ago to already testing it in 2017. The size of this project is daunting, and the fact that they are doing trials of it shows how much of a priority this is. “Capital flight” out of China is the genesis of this economic revolution, and once this is in place, controlling every citizen’s ability to do an economic transaction becomes not on easy, but educational.

    “The transparency of economic activities in every corner of the country will significantly improve," said Duan Xinxing, vice president of Beijing-based OKCoin Co. "The central bank will have unprecedented knowledge of how the economy runs. Talking about the impact of digital money now is like trying to predict how the Internet would transform lives in the 1980s. We know it’s going to be huge. It has the potential to change the entire economic infrastructure. We’re just not sure about when and how."

    As I have gone over before, all the digital currency that glitters in cyberspace is not Bitcoin. The average citizen may gain some extra convenience and lower costs over using third-party payment systems, but they will pay far more, in the long run. Now that the world’s two largest populations are going to force their nations into a digital economic surveillance state, how do you have before your financial life is entered into a state-run server for a lifetime of ‘Big Brother’s’ monitoring?

    "How long before your personal economic life" is just another meal of surveillance on your government's daily menu? The leaders of your government will come before the people of your country saying this is to serve you better, much like they did in an old 'Twilight Zone' episode. It will sound just wonderful, only once you discover the truth of the matter, it is too late for you to be saved.

    "'To serve man.....it's a......it's a COOKBOOK!'"

    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 Tests National Digital Currency; How it Could Cripple Bitcoin’s Future-Part 1

    While the nations of the world are busy trying to regulate, tax, and dismiss the revolutionary innovation that the digital currency Bitcoin has provided the world, they’re also plotting and scheming. The world’s largest nations, banks, and corporations are using Bitcoin and its blockchain technology as a blueprint to raise their business models to the next level. This could mean disastrous things for Bitcoin, in the future, under one scenario.

    One way this could go down

    You may have heard the news yesterday that China successfully tested their own version of Bitcoin, pursuant to their own national digital currency, last month. Here are more details if you need an update on where this stands. I have known about China’s plans for a national digital currency since last January, when they announced it on their website, and had a meeting with Citibank and Deloitte about creating it. I have written about this before at BitConnect.

    China almost needs a national digital currency, post haste, and here’s why. Simply, investors, speculators, and businesses are moving their money out of China, as their economy exits their boom market. The PBOC (People’s Bank of China, their national central bank) and the government are seeing great “capital flight,” and do not like it, and want it to stop. Many are using Bitcoin to execute these financial moves, as well because it is a superior, flexible form of money when it comes to speed and mobility, globally, plus it appreciates in value.

    So China has fast-tracked this national currency project and said they would at that meeting one year ago. The United States, Australia, Canada, the United Kingdom and many other nations have either discussed this future changeover. It is only a matter of when, not if, this happens in most major countries, so this is not just about China. Here’s why.

    The world will go digital currency for the same reason China puts their system in, first. Control. With a closed-network, central-bank controlled digital currency, it can solve a lot of problems the nation has created and the nation perceives as problems, going forward. It won’t be 10% of the digital currency value that Bitcoin is today, but it would be a great panacea for all of the state-managed ills. Here are just a few.

    You can make as much currency as you want, limiting the effects of inflation. A digital currency doesn’t cost anything to print. It will need some cybersecurity, which nations and banks are struggling to handle, as we speak, but it will be much less expensive than safes and vaults and security teams and guns. Plus, you can monitor all transactions and people can’t leave your closed network with the national funds. Basically, The People rent out the national currency, and The State reserves the right to change the locks on you, for any reason, at any time.

    This is the main reason. Every dollar, or Yen, or Yuan, is yours, and The People really have no money. The government and bank can co=opt the entire system, and decide who has money, who doesn’t, where they can use it, and produce mass surveillance over all transactions, in perpetuity.

    This is a great system for control. Great system for surveillance. Every transaction you ever do, in this dystopian future, will be monitored, recorded, analyzed, and stored on a server that will either be monitored by The State, or hacked by a cybercriminal, Either way, you lose.

    Unless……you work outside of their box and use a superior digital currency alternative, like Bitcoin. Which creates a problem for Bitcoin and its users.

    Will you become an Enemy of the State?

    This kind of makes you an enemy of the state, by default. The State can turn around and criminalize Bitcoin, or any altcoin that is not provided by The State, once they have their national closed-network system in place. They can attack exchanges, and make Bitcoin so hard to exchange and buy, through the laws they create and the regulations they levy, that Bitcoin could be rendered an outlaw.

    Think cigarettes versus marijuana. Marijuana is really a superior cigarette. It has actual medicinal benefits, and has for hundreds of years, unlike cigarettes, which has just killed hundreds of thousands of people over the years and has never helped anyone. Like Bitcoin, 100 years ago or so, marijuana was seen as a cure-all for the ills of the day.

    Before there were aspirin and penicillin, people used cannabis to resolve aches and pains and maladies, before it was criminalized, in Western culture anyway. I’m sure that corporations like the Bayers and Phillip Morris of the time had nothing to do with this.

    The problem for marijuana was it was not sanctioned by The State, it is not taxed effectively by The State, and it is not produced by the fascist corporations of The State, so if you are seen using or selling marijuana, in certain countries, you may be in a lot of trouble with The State. No one was able to fight to protect a plant from being branded a criminal.

    So why not take this market from the plant, even legalize a small amount of the plants use in your newly-approved corporate drug to make the new drug nice and addictive, and go forward with a backdoor deal, a kickback, and some new regs to prevent competition. Everybody is happy, except for the black kid in Michigan who gets 20 years for violating a “Rockefeller Law”

    Marijuana 2.0

    Bitcoin may end up becoming the marijuana of the 21st century. First, all of these states may make it a little tougher to use, via regulation, year after year. Make taxes for it nice and difficult, or nice and high, or both. Then, begin to slowly phase in criminalizing it, while copying its technology, making your own version, without 90% of the benefits. Your new national digital currency will have one thing Bitcoin may not have, in comparison. Convenience.

    You can pay your taxes by smartphone. The store up the street will accept the national digital currency, but The State’s regulations on anything else will be so extensive, Bitcoin will not be widely accepted. People will use Bitcoin just like they use marijuana, in the shadows, behind closed doors, and with a dark cloud over their head, as they fight a silent battle against The State’s monopoly on transmitting value.

    Call me a conspiracy theorist. I hope this dystopia does not come to fruition, but my charge is to consider all of the possible outcomes, report them to the greater Bitcoin community, and maybe have a discussion on how to protect Bitcoin’s future. Bitcoin can’t be beaten by a hacker or even a “51% attack.” The State has the best chance of defeating Bitcoin by making a Bitcoin-lite that helps the banks and the government, and makes the common man’s life just that little bit easier, but regulates Bitcoin into the cornfields and dark alleys of the world.

    That card is on the table, and probably will always be on the table. Let’s at least recognize it and work together to plan a way to avoid that card being turned over.

    As good as marijuana may be, the world really doesn’t use it, at scale, because its just not worth the hastle. Bitcoin is on that road. The road to regulatory ruin.

    Part 2 is coming Monday, showing you how Bitcoin can actually live happily ever after

    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

  • Bitcoin Trading in China May See New Controls After Bitcoin Slide

    ​​China pretty much controls the global Bitcoin market, with about 80% of the world’s Bitcoin trading and about 95% of currency exchanges from fiat. This makes how China regulates, or doesn’t regulate, their domestic Bitcoin industry extremely important in the years to come. To this point, China has taken a laissefaire approach to the Chinese Bitcoin industry, but that may be ready to change in 2017. Slightly

    According to the South China Morning Post, the Chinese authorities and People’s Bank of China are mulling whether to introduce third-party custodian services to oversee the world’s largest bitcoin market. This comes after the Bitcoin industry’s rapid national expansion and a recent sharp Bitcoin price fall that has highlighted the potential threat it poses to the stability of financial markets.

    “Regulators have noticed that some bitcoin platforms crashed during the recent market volatilities, causing some investors, particularly those trading with leverage tools, to bear huge losses because they were unable to log on to the website during the sell-off,” the China Securities Journal reported on Tuesday.

    In a perfect world, there may be a truly free market system where no one scams anyone in an investment, but China is not that world, and the raw volume of trading over the past twenty days has drawn a lot of attention in many influential circles. The Bitcoin industry in China has not been prone to theft, fraud or other maladies that used to plague the digital currency, but some tech issues may have been key to some investors taking a larger loss than was reasonable.

    “The bitcoins were not stolen or hacked. Investors suffered loss as they were unable to trade, possibly because of the sudden price fluctuation and large sell offers. Introducing a third-party custodian for the investors would not reduce this risk,” said PwC China Fintech PartnerWilliam Gee, who said based on what happened in early January, the major risk with bitcoin arises from the trading infrastructure rather than the credibility of the trading platforms themselves.

    Maybe individual investors contacted authorities for some level of intervention? Whatever the case may be, the PBOC and others are becoming more involved in the dealing of top Bitcoin exchanges, keeping dialogues open, and looking to make small adjustments into how business gets done.

    As the market is not self-regulated at this moment, this may be a good approach. Leaders withing these large trading platforms are discussing making some ‘rules for the road’ when it comes to their trading practices in the near future, maybe to prevent a heavier hand from authorities.

    “Regardless of the current position adopted by the regulators, recent market activities have certainly attracted their attention. Indeed, we have noticed more active engagement from the PBOC in this respect.” Chun Yin Cheung, another PwC China Fintech Partner, said.

    “Although both mainland and Hong Kong financial regulators have made it quite clear that bitcoin is not a currency and thus not covered by the existing regulatory framework, the bitcoin-related behaviors are evolving and bearing the features of traditional financial market activities.”

    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

  • Federal Reserve Rate Hike Could Drive Bitcoin Well Over $800

    2016 has turned into a banner year for Bitcoin, with values up almost 80%, Segregated Witness gaining the mining support it needs to expand the network, and less negative mainstream media press than ever. With less than three weeks remaining in the year, Bitcoin may go into 2017 with a bang if the United States Federal Reserve follows through on its intention to raise interest rates this month. Here’s how it will affect Bitcoin and should force values to clear $800.

    Important Year-End Federal Reserve Meeting This Week

    The Federal Reserve, a private corporation that manages the central banking interest rates and national monetary production for the United States, has spent the last year promoting the idea of higher interest rates. As many as four rate hikes have been intimated. Federal Reserve chairwoman Janet L. Yellen told Congress in November that a rate increase “could well become appropriate relatively soon.” This leads us to the two-day meeting, starting today, which many believe could conclude with an interest rate increase.

    How does this affect Bitcoin? If the Federal Reserve raises rates, this should strengthen the U.S. Dollar’s relative value, attracting investors from China to American investments. This means another round of “capital flight” from China, creating a demand for ways to move money out of China to America and other foreign markets. Bitcoin has been one of these popular economic avenues before, and there is no reason to believe it won’t be again.

    This is clearly not good news for China. A widening gap between onshore and offshore yuan prices points to further Yuan depreciation, and possible capital outflows, ahead. Hong Kong-traded CNH (offshore) yuan fell 0.84 percent versus the dollar in the last week, while CNY (onshore) dropped 0.41 percent. Analysts generally view the CNH to be an accurate predictor of the future dollar to yuan direction as it is not restricted by Chinese regulators.

    When the Yuan is devalued, again, which would be the seventh time this year, people in China will most likely look to Bitcoin as a safe haven to protect their wealth. Recent examples, besides this year’s actions in China, include spikes in investment during Cyprus’ “Bail-In” in 2013, the Grexit (2015) and Brexit earlier this year, and the U.S. Presidential election of Donald Trump last month.

    Demand for Bitcoin seems sure to increase in China by year’s end, under these circumstances. China is by far the global economic center for Bitcoin, with the Yuan accounting for 95-98% of all currency exchanged, and about 80% of all Bitcoin trading.

    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

  • World First - IBM and WalMart are Going to Track Food on a Blockchain

    Sure, Bitcoin taught the world what a blockchain is and why Bitcoin is far more advanced than any current form of currency or monetary value. Now, the world has gone blockchain crazy, spending 2016 and the many years to come, putting anything and everything on a blockchain. This newest plan may beat all, with international superpowers IBM and WalMart creating a partnership where food is monitored on a blockchain, according to Bloomberg.

    Who knew that was possible?

    Less than a year ago, I didn't believe the banking industry could copy the blockchain concept and make it work privately, at least not for several years. Now, it looks like you can literally make a blockchain for anything, even physical groceries! In association with advisor Tsinghua University in China, the two megacorporations are going to begin monitoring Chinese food products for safety.

    Chinese food safety practices have raised concern about contamination in China and in countries where Chinese food products are imported, and the new project aims to trace the movement of meat, vegetables, and other products.

    "Advanced technology has reached into so many aspects of modern life but it has lagged in food traceability, and in particular in creating more secure food supply chains," said Bridget van Kralingen, senior vice president, industry platforms, at IBM in New York

    This blockchain will be used to record food product information such as farm origin details, batch numbers, factory and processing data, expiration dates, storage temperatures and shipping details. This data will be digitally connected to food items, and the information is entered on the blockchain at every step of the process.

    WalMart alone intends to invest $25 million in the project over the next five years. This is a part of the announcement launching the Walmart Food Safety Collaboration Center, an effort to bring together local and international research in one of the world’s largest markets for food and for WalMart.

    “By bringing together the best food safety thinkers from across the food ecosystem, from farmers to suppliers, retailers to policy regulators, we’ll accelerate food safety awareness and help make Chinese families safer and healthier,” Wal-Mart Chief Executive Officer Doug McMillon said at the event in Beijing on Wednesday.

    WalMart was hit with a series of food safety-related incidents two years ago that they are still trying to recover from in the region. Taking the lead in food safety in a country not known for such safety measures can help reverse WalMart’s fortunes in China, and improve the quality of food for their shoppers. Bitcoin’s blockchain technology is making the world a better place in ways no one expected.

    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 Develops Whitepaper for Future Applications of Blockchain Technology

    China is a very ambitious country, looking gaining a global reserve currency status for their Renminbi, expand their city sprawl with billions of dollars of new construction, including The New Silk Road, and adding other new technologies. BitConnect has already reported on their plans to add their national Social Security system to its own blockchain. Now, the country has developed a full whitepaper discussing and planning the future of blockchain technology in the People’s Republic, according to China’s BitKan.

    China's Ministry of Industry and Information Technology, or MIIT, in association with the Chinese Blockchain Technology and Industrial Development Forum, have produced what is known as China's Blockchain Technology and Application Development Whitepaper. For over two months, this whitepaper has been under development, highlighting the future trends of the technology, analyzing finance, supply-chain, entertainment, smart manufacturing, social welfare, education and employment and many other potential applications.

    A better way to pay

    The financial sector is currently the best application of blockchain technology, under Bitcoin, and this will be the leading application as MIIT sees it. This would include things like payments, asset management, securities, clearing & settlement and user ID. It appears that China sees what other governments and multinational corporations see in the blockchain, a more efficient way of doing business. Inter-institutional netting and conflict-settlement costs will be minimized and the efficiency improved.

    Moreover, lower costs and improved efficiency will force financial players to realize small-amount cross-border payment. The asset management sector is haunted by high cost and falsification risks. The whitepaper points out that these assets can be integrated on-chain, hence causing a disintermediation process to allow asset holders to directly transact with each other.

    An automatic contract implementation can be guaranteed and visible only to counterparties involved through blockchain technology. The core character of the blockchain technology is that it simultaneously realizes value transfer without a trusted third party.

    IP protection in the entertainment sector, information integration and interoperability in the smart manufacturing sector, transparency and publication in the charity sector are all considered major pain points that are waiting for blockchain technology to save the day.

    Can They Create a Path towards Technology Standardization?

    Standardization of the future of these kinds of uses for blockchain technology is important to reduce cost, improve efficiency, bring corporate commercialization and enhances the security. It will also become key for a government to make policies and implement future regulations.

    The implementation solution will set the system building at its core and comprises of 4 steps: System Pre-Research, Standard Research, Trial and Promotion and System Improvement. Based on the timetable, the last step will commence no later than Oct. 2017, so all of these plans should be seen over the next year, if not sooner.

    The whitepaper also further argued for future preferential policymaking for the blockchain technology. The relevant policies will support the future technological research, exemplary projects, entrepreneurship & innovation platform building, system solution R&D and public service platform building.

    China has already had discussions with major companies like Citbank and Deloitte to begin their own national digital currency at some point in the 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

  • Hotter Than July - Bitcoin Prices Soar to Summer Heights - Details

    ​Given the fact that China easily controls the global Bitcoin market when it comes to trading (about 95%) and mining volume (over 70%), the Chinese economy as a whole has a large influence on Bitcoin’s overall value. As China returns from a long national holiday, economic trading resumed, and the Yuan fell to 6.72 Yuans per dollar, fueling heavy movement into Bitcoin, spiking values on Tuesday to their highest values since July, approaching highs of $640 USD or over 4300 Chinese Yuan.

    Bitcoin Jumps More than 3%

    Bitcoin price has been incredibly stable since mid-summer, with values not moving much from the low-$600 range over the last two months. Chinese banking interests are not buying into the Yuan like they were the last time Bitcoin interest spiked to over $700 USD, and seem resigned to let the market play out for now.

    "The Chinese central bank's decision not to intervene in stabilizing the yuan means traders are running scared. Bitcoin is a port in the storm," said Charles Hayter, founder of digital currency website Cryptocompare to Reuters.

    The “Scaling Bitcoin” conference in Milan has also helped spur Bitcoin interest, as new solutions are posed to old problems like the block size debate. Bitcoin transactions have started to slow again throughout the network as volume passes 280,000 per day, and higher miner fees are being required to get anything close to a ten-minute transaction. Others wait hours for transfers when fees are not increased. These issues were discussed extensively in Milan.

    "There were several technological advancements demonstrated, some of which could be promising avenues to increase the number of transactions that the bitcoin network could process," said Colin Platt, co-founder of blockchain startup DPactum, and formerly Head of Blockchain at BNP Paribas. "These new advancements could once again position bitcoin to continue to innovate and sustain higher transaction rates which could foster wider adoption,”

    As the blocks on the blockchain fill up once again, the fourth quarter of the year may be defined by how expansion efforts like Segregated Witness and The Lightning Network are tested and implemented. Bitcoin transaction volume tends to increase throughout the fall and winter months, and the network is showing signs of stress.

    If the Chinese Yuan’s struggles continue, the protocol could see a real-world stress test occur before help arrives. It appears about 300k daily transactions is about the usable limit for the current system before expansion is necessary.

    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

  • Bitcoin Mining Supercenters Expand to the Mountains of Tibet

    China has taken over the global Bitcoin industry pretty much since they discovered Bitcoin back in 2013. It took less than a year for Bitcoin mining and trading to go from a budding new American tech industry to a Chinese economic fallout shelter. Now, a new supercenter of Bitcoin mining has been found buried deep within the mountains of Tibet, a region not known for its high-tech infrastructure.

    Bitcoin is where you mine it

    Bitcoin mass mining can be a very profitable endeavor, generating thousands of Bitcoins a month, and millions of US dollars of revenue per year. This is the case provided that you can scale your operations effectively, and gain access to copious amounts of low-cost electricity. In the unlikely peaks of Kongyu, which were acquired by the Chinese in 1951, you will find a gold mine and a massive Bitcoin mine built right next to a modern hydroelectric power plant, which supplies all the power needed.

    “When bitcoin was invented, the people dedicated to it were mostly cryptopunks and libertarians,” said Eric Mu, the chief marketing officer with HaoBTC, which operates the bitcoin “mine” in China’s western Sichuan province to the Washington Post. “Now they are more like bankers and lawyers who see opportunities in the industry. And as they join, the industry is changing.”

    About three-quarters of all global Bitcoin mining and trading is done withing China’s borders. Given the fact that China also controls over 90% of the world’s “rare earth elements/minerals,” there is a general sense of concern that China is using its digital market power to reshape the Internet and use its influence to increase their cultural concepts that are based upon censorship and surveillance.

    History does not bear this out, as China has been mostly hands-off when it comes to Bitcoin regulation, except to forbid its banks to partake in the currency, directly. Local businessmen like Ryan Xu, a Chinese-born Australian who work within the local Bitcoin economy as a venture capitalist who runs the Tibetan mine after searching the world for a cost-effective place to operate and score massive amounts of power. He is building a second mine not far away from Kongyu.

    “We need to foresee the next five or 10 years,” Xu said in a wide-ranging conversation over dinner in the western city of Kangding. “All the governments are printing money and diluting people’s wealth. Is that justice or robbery? The financial system also keeps crashing every five or 10 years. I think that’s an illness in the monetary system and it needs a cure.”

    Eric Mu, the chief marketing officer with HaoBTC says his company employs 10 people at three mines in the mountains, paying them around 6,000 yuan ($900) a month, a “decent salary” for this part of the world. HaoBTC runs one other mine in Sichuan, and one farther west in Xinjiang, with more than 11,000 machines, earning more than 80 bitcoin a day, for a daily income stream worth about $45,000 USD.

    When the United States controls an entire industry, there is little global outcry. Yet when the shoe is on the other foot, Americans are quick to cry “foul.” Bitcoin is far more popular in China at this time than America because the average Chinese person needs an alternative currency far more than Americans do for their “almighty Dollar.” I wouldn’t worry a great deal, as the U.S. Dollar’s days of being all that mighty are surely numbered. Bitcoin will not become a Western hobby, but a potential economic beacon of light.

    Control of the Bitcoin industry is always subject to change. No guns will be drawn, or wars will be fought over the future of Bitcoin. It is going to be up to your computer and energy reaping skills how many Bitcoins you can gain for the foreseeable 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

  • Bitcoin Price Highest Since July as G20 Summit Trading Ends

    Just to remind those that might have missed the last three years of trading in the digital currency market, China controls the price of Bitcoin. This was on display for the last week as Bitcoin prices have spiked $50 USD since the beginning of the meetings on Sunday, and yesterday received one more market boost. This created the highest Bitcoin pricing since July, as the Chinese Central bank makes a move, and investors countered.

    If Bitcoin is moving up, that means the PBOC is getting tight

    For every action, there is a reaction, as the PBOC tries to slow monetary outflows and a deepening recession. China’s central bank influences funding costs in Hong Kong by encouraging state-owned banks to hold back from loaning their excess yuan. A surge in the Yuan’s HIBOR, or Hong Kong Interbank Offered Rate (same concept as Western LIBOR) hurts bears (savers) in two ways: by increasing the cost to borrow the currency and sell it, and also by prompting lenders that want to avoid paying the higher rates to buy the yuan they need in the spot market instead, bolstering the exchange rate.

    "(The People Bank of China) may have tightened liquidity in the offshore yuan market to control declines following speculation that it would allow depreciation now that a Group of 20 summits is over, according to Mizuho Bank Ltd,” reported Bloomberg. “The monetary authority drove offshore yuan borrowing costs to unprecedented levels in January in an effort to punish bears."

    Capital outflows are still a problem, just not as bad as they were this time last year. You might have noticed the fruits of that issue, since one BTC was worth less than $240 USD last September, and rose over 40% during the rest of 2015. Bitcoin values are up over 160% over the last year, with the actions of the PBOC driving market demand.

    "Everyone was talking about depreciation after the G20 meeting, and China could be reacting to that,” said Ken Cheung, an FX strategist at Mizuho Bank. “The authorities may be repeating January’s trick - tighten liquidity and crack down on bearish speculation on the yuan."

    The Huobi exchange has been on fire the last couple of days, and monetary outflows from the country have been up all week, and Bitcoin trading and value have also spiked because there is a correlation. A reduction in the allowance of shorting the Chinese Yuan by the PBOC caused Bitcoin to bump up 3%.

    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’s National Social Security System Begins Move to the Blockchain

    When you think of a national social security system, you naturally tend to think of old people getting their consistent old check in the mail, or maybe even direct deposited into a bank account. Well, China is ready to help the nation’s elderly population enter the 21st century with the help of blockchain technology, with the help of global banking giant UBS. China has just announced that their national system will migrate to its own blockchain.

    Banks and even nations are building blockchains almost daily

    The first time I had heard of a national system of any kind being integrated with blockchain technology was at the end of 2015, as I reported on the African country of Tunisia creating a digital blockchain for their national currency.

    Suffice it to say that the massive scale of China's national Social Security Fund dwarfs anything Tunisia can do. China’s SSF system had a value of about 1.9 trillion yuan (almost $250 Billion USD) when Tunisia began their digital revolution several months ago.

    "There's no doubt that blockchain technology will be used in the social security system because of its valuable applications in the investment and management of social security funds,” said Wang Zhongmin, vice-chairman of China’s National Council for Social Security Fund to China Daily.

    China has discussed creating their own digital currency already with other financial stalwarts like Citibank and Deloitte earlier this year. Some of the uninformed dismissed this, but these new moves only confirm how quickly China is looking to add innovative new technologies to their financial future. Major players in the Chinese Bitcoin market have said China will move to a digital currency in the not-to-ditant future. No timetable was given for the complete changeover, but it is close enough to announce, publicly.

    "To realize the full potential of blockchains, we will above all need to collaborate on a common platform. We think it is essential that the industry avoids a standards war of the type that has bedeviled the adoption of new technologies in the past," said Axel Lehmann, chief operating officer for UBS Group.

    It also appears that China has been actively testing blockchain technology for some time. The China Ledger Alliance is a non-commercial organization currently working with 15 different companies in technology and finance to integrate and adapt blockchain technology for real-world applications. They are also creating a recognized set of standards for domestic industries going forward. As more information becomes available, BitConnect will keep you informed.

    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