1 = 906.92 USD

Bitcoin News

Bitcoin and Crypto Currency News

Browse latest bitcoin news about new businesses that accepts bitcoin and other cryptocurrencies, blockchain technology, and regulations of bitcoin. We report on latest crypto currency news, prices, talks and new start up related to bitcoin and other crypto currency.




  • 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

  • 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

  • China Details Their Interest in Creating New Digital Currency

    The world is going digital in every medium, from newspapers to retina displays, and money is looking to make a full conversion. The E.U. is spearheading a movement to ban cash , under the guise of fighting terrorism. This conveniently gives banks and governments more access to fees, taxes and surveillance. China also likes a high level of control over its citizenry and is beginning the process of creating their own digital currency, with Chinese Governor Zhou Xiaochuan revealing these intentions in the Caixin Weekly .

    If you can’t beat ‘em, join ‘em

    Bitcoin has become quite a phenomenon in China, with the world's largest mining operations operating in China. There was some consternation from the People’s Bank of China in 2014, with some ideas of banning it, domestically. Yet, China remains as the current economic engine for the global Bitcoin community , where about 80% of all Bitcoin mining takes place. Maybe the government has left Bitcoin alone as a way to learn about “The Future of Money” and use it as a model of their own? Xiaochuan explains his point of view on the subject of digital currency.

    "Paper money, as the last generation currency, lacks high-tech support, and it is an irresistible trend that paper money will be replaced by new products and new technologies with greater security and lower cost. With the rapid development of the Internet and the significant changes in the global payment systems, it is necessary to establish the issuance and circulation system of digital currency, which will help build the financial infrastructure and improve the quality and efficiency of the economy."

    There are some very basic advantages for China to move to a move digitally-based Yuan. With the economy slowing down, the wealthy and the speculators are moving substantial amounts of money out of China, and many are using Bitcoin to do it. It may be very difficult, if not impossible, for the Chinese government to stop this financial exodus, and creating a digital currency that cannot so easily take from the country’s systems has plenty of appeal.

    Printing money, fighting counterfeiting, and increasing the central government’s control over its use are also massive upside’s, from the state’s point of view. Given the sheer size of the Chinese economy, a full replacement of cash shouldn’t be expected anytime soon, says the Governor.

    "We do not have a timetable yet. China has the world's largest population and is a huge economy,” Xiaochuan says. “It will only take several months for a small country to replace an old version of paper money with a new one. But it has taken about ten years for China to do the same thing. So digital currency will co-exist with cash for quite a long time before it finally replaces cash."

    Xiaochuan also spoke about the PBOC investigating the use of blockchain technology, but he says it is not ready to scale at this time to the size required for an economy the size of China. This year, Chinese officials have been in meetings with Citibank and Deloitte about how to begin the implementation of this new digital currency. This dovetails with Japan accepting Bitcoin outright as a currency approved for use in Japan, pending new legislation.

    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