Binance advices Iranian Traders to Withdraw Crypto Prior to Sanctions
November 16, 2018
In order to comply with International Sanctions,Binance has advised Iranian Traders to Withdraw their Money with Immediate effect pending closing of their accounts .
The e-mail in part stated ‘If you have an account with Binance and fall into that [sanctions] category, please withdraw your Money from Binance as soon as possible’
Chairman of the board of the Blockchain Association of Iran,Sepehr Mohamadi,was quoted as saying ‘The number of such E-MAILS have recently increased following U.S Sanctions, which were renewed on November 5′.
The Malta based Exchange was mainly Isolating accounts of users who provided Iranin Passports(KYC).But Beginning of this week began issuing warnings to accounts connected to Iranian IP addresses to get their crypto out .
Other Exchanges that have banned Iranian traders are BitMex and Bittrex over the past one year.
According to John Collins, former head of policy at Coinbase ‘If the Exchanges want to serve American Citizens, they have to sever Ties with this Traders’ .
According to SimilarWeb, roughly 13 percent of Binance’s website traffic comes from the U.S.
The Ban on Iranian Traders comes at a time the Iranian authorities are reportedly moving forward with plans for a national crypto-currency similar to Venezuela’s petro currency.
Binance, the world’s largest crypto exchange, has voluntarily engaged in an initiative to eliminate money laundering on its platform.
For years, despite the inherent lack of privacy measures on major public blockchain networks like Bitcoin and Ethereum that discourage the settlement of illicit transactions, a widely pushed narrative against crypto has been the suspected usage of digital assets by criminals.
Authorities and government agencies across the globe are well aware of the non-anonymous characteristic of blockchains, which could have motivated governments like the US, Japan, and South Korea to legitimate and recognize the cryptocurrency market.
This week, Binance has started to cooperate with Chainalysis, a leading blockchain analysis company that evaluates suspicious transactions and addresses, to improve its AML system and to further legitimize the cryptocurrency sector.
“Cryptocurrency businesses of all sizes face the same core challenge: earning the trust of regulators, financial institutions and users. We expect many to follow Binance’s lead to build world-class AML compliance programs to satisfy regulators globally and build trust with major financial institutions,” said Jonathan Levin, co-founder and COO of Chainalysis.
In 2018, some of the world’s most influential banks were cracked down for money laundering. Danske Bank laundered $243 billion from criminal groups, and as CCJ reported on October 20, Nordea Bank, the largest financial group in the Nordic countries, is said to have taken several illicit payments from banks in the Baltic region.
With the institutional market of cryptocurrencies growing exponentially, the tightening of AML systems employed by public exchanges is expected to solidify cryptocurrencies as a recognized asset class and the digital asset market as a well-regulated sector.
Wei Zhao, the CFO at Binance, said that maintaining the firm’s vision of increasing the freedom of money globally, the exchange will continue to adhere to regulatory mandates in the countries it operates in.
“By working with Chainalysis, we are able to continue building a foundational compliance program that enables the next phase of our growth. Our vision is to provide the infrastructure for a blockchain ecosystem and increase the freedom of money globally, while adhering to regulatory mandates in the countries we serve.”
Importance of Compliance
The cryptocurrency sector is entering a new phase of development and growth, as Zhou explained.
During the 2017 bull market in which the valuation of the cryptocurrency market surged to $800 billion, the asset class obtained significant mainstream awareness in both countries that support crypto and regions that have established impractical regulatory frameworks to prevent local blockchain markets to flourish.
In a period in which governments are introducing increasing efforts to embrace crypto and blockchain businesses as a part of the fourth industrial revolution, voluntary initiatives by companies like Binance to legitimize the industry will ease the process of governments in regulating and acknowledging the global market.
Binance announced that as of today the company will make all listing fees transparent. In addition, 100% of fees will be donated to charity.
The move is likely to generate a fair amount of attention for the world’s largest cryptocurrency exchange by trading volume. Previously, listing fees on Binance – the cost of listing a cryptocurrency in their exchange – have varied based on a number of factors such as the type of token and expected daily volume.
The move is not without some controversy. Binance was rumored to charge astronomical figures for tokens to be listed on the exchange. Changpeng Zhao, the CEO of Binance, refuted these rumors as baseless.
“There were so much incorrect data, rumors and FUD about listing fees. We care about our community and want to address this once and for all.”
When asked if Binance’s move towards greater transparency was driven by the earlier controversy, Zhao answered in the affirmative.“Yes, partially. We never charged 400 BTC for any project. That was a purely made up number,” he said.
Now, cryptocurrency projects will be able to decide what kind of fee they want to pay. In essence, this fee will be a donation to charity through Binance. The exchange will then disclose the fee to the public via their charity initiative, the Blockchain Charity Foundation.
“This will be disclosed in a subsequent Binance Charity Foundation press release. We are discussing with a few large donors at the moment. We don’t want to release a partial list just yet,” Zhao said.
Binance will not dictate how much projects have to charge, and there won’t be any minimum donation fee when listing a cryptocurrency. They also want to avoid giving the impression that larger donations will gain favor for projects, with Zhao saying in a press release, “A large donation does not guarantee or in any way influence the outcome of our listing review process”.
When asked if other players are expected to follow suit in providing transparency, Zhao was optimistic.
“I certainly hope so. They copied us on many other things, this will be a good thing to copy. There is no competition in charity.”
Binance recently launched Blockchain Charity Foundation together with the UN, led by UN Ambassador of Goodwill, Helen Hai.
The goal of the project is to help the UN tackle the United Nations Sustainable Development Goals funding gap. Currently, the UN is struggling to raise the $2.5 trillion needed to help developing countries reach their investment goals. The BCF was set up to explore the potential of blockchain technology to help with this.
One of the next important steps in this process is the meeting of Binance and the BCF, at the Blockchains for Sustainable Development forum on October 24th in Geneva. The forum aims to unite various blockchain thought leaders with philanthropists and heads of state, with the goal of discussing how blockchain can be used in future for public good.
Binance, the world’s largest crypto exchange by daily trading volume, is set to launch a beta version of its decentralized exchange (DEX) by early 2019.
Changpeng Zhao, the CEO of Binance better known to the community as CZ, said on Saturday:
“Just had a productive meeting for Binance DEX (decentralized exchange), where BNB will be native gas, and the exchange don’t control user funds. Aiming for a public beta end of the year/early next year. Yes, we work on Saturdays, non stop.”
In the long-term, CZ explained that users will be able to utilize non-custodial wallets to trade cryptocurrencies in a peer-to-peer manner with full control over their funds.
“I believe that decentralized exchange is the future. I don’t know when that future will come yet. I think we’re at an early stage for that so I don’t know if it’s a year, two years, three years, or five years. I don’t know but we got to be ready for it,” he said.
As a centralized cryptocurrency exchange, most of its revenues and profits are generated by the fees charged by the exchange. But, decentralized exchanges can also charge a native fee embedded into the smart contracts utilized by the platform to broadcast transactions to the mainnet of public blockchain networks like Ethereum.
In October of last year, Ethereum co-creator Vitalik Buterin praised a model utilized by EtherDelta, a decentralized exchange, to incentivize developers for maintaining the platform.
“I think the EtherDelta model for developers getting paid is underrated,” he said.
At the time, a South Korea-based cryptocurrency user recommended Binance to Buterin on Twitter, mentioning its low 0.05% fee. Buterin responded that to use centralized exchanges, a process of setting up accounts is required. On decentralized exchanges, users can utilize existing wallets like MetaMask to trade.
“That requires setting up an account. I like EtherDelta precisely because it doesn’t. Just visit the site with MetaMask on and start using it. Not slow at all. I don’t give a damn about split-second trading. To me, speed includes login, deposit, withdrawal, logout time,” Buterin explained.
How Can Decentralized Exchanges Compete Against Centralized Platforms?
According to CZ, Binance is probably a more secure alternative to decentralized exchanges because of its strong architecture and infrastructure. Binance has never been hacked since its launch in 2017.
CZ emphasized that the real merit of using decentralized exchanges is in the freedom and control over user funds. On a decentralized exchange, users do not have to create user accounts or file withdrawal requests. Every trading activity is done on the blockchain with a non-custodial wallet.
Eventually, as the adoption of cryptocurrencies increases and fiat becomes less relevant in the cryptocurrency exchange market, traders will likely shift from centralized platforms to decentralized exchanges.
The Binance team remains uncertain when the change will happen but as CZ said, the company is getting ready for it.
The CEO of cryptocurrency trading platform Binance Changpeng Zhao announced a demo of the platform’s decentralized exchange in a tweet today, Aug. 9.
In a six-minute video attached to the tweet, Zhao presented a “casual, early, pre-offer” demo of the decentralized exchange. The CEO said not “to expect too much” for now, adding that it currently does not have a graphical user interface:
“A first (rough, pre-alpha) demo of the Binance Decentralized Exchange (DEX), showing issuing, listing and trading of tokens. All cli based, no GUI yet. A small step for #BinanceChain, a big step for Binance.”
Zhao showed three essential features of the planned exchange, those being the creation, listing, and trading of tokens. As Zhao did not disclose the launch date, it remains to be seen when the exchange will be marketed and what volumes it will be able to handle.
Decentralized exchanges are lauded as more secure than their centralized counterparts, which are more vulnerable to hacks. Decentralized platforms are set up in a manner which allows users to retain ownership of their coins using private keys. This solution reportedly prevents cryptocurrencies from being accumulated in one centralized “honeypot,” or point of attack.
Earlier this month, Binance bought Trust Wallet, an open source, anonymous, and decentralized wallet that supports Ethereum and over 20,000 different Ethereum-based tokens. Zhao then said that Binance plans to list Trust Wallet as a default wallet on its decentralized exchange.
Binance, which moved its operations to Malta this spring, is the number one crypto exchange by trade volume, according to Coinmarketcap. In July, the exchange supported plans to create a blockchain-based bank with tokenized ownership. The future “Founders Bank” will reportedly be owned by digital token investors and be based in Malta, known for its robust and transparent crypto regulatory climate.
Binance announced on March 13th that they would be developing a public blockchain to create a new decentralized exchange. They state that “centralized and decentralized exchanges will co-exist in the near future, complementing each other”, which has inspired them to develop Binance Chain.
This new blockchain will be used for transfer and trading of all blockchain assets. They are hoping that this move will help push cryptocurrency exchanges towards a more company to community transformation.
Binance Chain will host Binance Coin, which will inherently become its native coin with its own blockchain main net.
The difference between a decentralized exchange and a centralized exchange is that decentralized exchanges do not rely on third party services to hold customer funds. Users transact with other users without the need for a central authority that possesses order books or custody over the transactions.
Decentralized exchanges tend to provide more anonymity and are touted as being a bit more difficult for hackers, however they can be less intuitive for novice traders and lack features and functionality of standard centralized exchanges.
Binances announcement comes a day after announcing their $250,000 bounty to anyone who can provide information regarding the hackers responsible for the hacking attempts on March 7th.
Today we’re going to review one of the biggest and fastest growing cryptocurrency exchanges to date, Binance. In fact, it’s been able to reach the 2nd place rank out of all exchanges with regard to trading volume in just under 8 months. With crypto trading becoming more and more popular, Binance was able to ride out this trend. They currently offer an excellent user experience for traders who want to enter the market for the first time.
So Why Binance?
Sure, there are so many other cryptocurrency exchanges out there, however why does Binance seem to have almost a cult like following? At the rate it’s currently moving, Binance may even reach the number 1 spot as the top cryptocurrency exchange in the world by the end of 2018.
This popular exchange offers a wide range of altcoin trading aside from the typical Bitcoin and Ethereum pairs. In fact, Binance is already in the same league as some of the biggest exchanges like Bittrex and Poloniex who have been active in this space for well over 4 years.
They’ve managed to outdo the competition in many different ways including…
Marketing, marketing, and more marketing (they have a great team and a great referral program)
Fees – fees are as low as 0.001% if you use their BNB coin.
Their trading platform is easy to use for beginners. They offer both a basic platform as well as an advanced chart for more experienced traders.
Their support is top-notch.
How Do I Start Trading on Binance?
To start trading on Binance, you simply have to open an account, fund it, configure a few settings. After that, you’re off to the races. Check out the step-by-step guide below.
1. Register for an Account
Easy right? Not exactly.Go to Binance , click the Register button and fill all the necessary information you’re used to filling out on these cumbersome applications. Don’t worry it only takes a few minutes.
Once you’ve filled out everything, submit your form and wait for a confirmation. Follow the steps within the email, click the confirmation link, and you’ll redirected to your very own Binance dashboard.
2. Set Up a 2 Factor Authentication
This is one of the most important steps in the registration process. It’ll give you that extra padding of security you’ll need so that no one can easily access your account. Once logged in, you’ll receive a message prompting you to set up your 2 Factor Authentication. You’ll be instructed to download the Google Authenticator app on your smartphone. Once that’s done, you’re ready to login. Just follow the instructions given in the message prompt and you’re good to go. Top-notch security at your fingertips!
3. Verify Your Account & Setup Your Deposit
With a basic Binance account the withdrawal limit is 2 bitcoin every 24 hours. With a verified account, you’ll need to scan your photo ID. Once approved, you can withdraw 100 bitcoin every 24 hours. Quite the difference right?
If you’re planning to be the next crypto millionaire, then you just might want to verify your account. Either way….it’s good get it done.
While you’re waiting for your photo verification to be approved, you can still trade, so let’s get to it. Go to your dashboard and on the top right hand side you’ll see a funds option above the menu bar. Hover over that and a drop down should appear. Click on the Deposits/Withdrawals option. It will bring you to the page where you can deposit your funds.
4. Choose Your Coin
You have the choice to deposit various types of coins, which you’ll use to trade later. Choose which one you’ll want trade with and then press the deposit button. Upon doing that, you’ll be appointed a code for your dedicated wallet (it’s a mix of numbers and letters). This is the address that you’ll use to deposit your funds into your Binance account.
Take note that the wallet address differs per coin, so it’s better to stick to one wallet which can be used as your main deposit wallet. Once that’s done, transfer your coins from your other wallet (via Coinbase, LocalBitcoin, Gemini, etc. Take a look at our exchange page for options) to this new coin address.
5. Finally…Day is Upon Us! Begin Your Crypto Trading Journey on Binance.
Once you’re done with all the verifying, form filling, and wallet transfers, you can finally start trading like the big boys! Take your first step and hover over the Exchange option on the top left menu and click the Basic Exchange option. From there, you’ll see a list of coin pairs that you can trade.
Take note that you’ll be trading coin pairs, much like how you would in Forex (e.g. Bitcoin against Ethereum is ETH/BTC). If you know the coin pair that you would like to trade, you can search for it using the Binance search bar so you can instantly view your cryptocurrency of choice.
PRO TIP: I highly advise you check out our technical analysis section of the site to discover the basics of fundamental trading, unless you just want to roll the dice and invest in what your friend told you last week.
6. Tips On Trading Execution
So, let’s use the example of Bitcoin and Ethereum. In the exchange, click on the ETH/BTC pair to buy/sell it. When you click on the pair, you’ll be brought to the order book where you can see details on the pair such as volume, last price, high 24 price, low 24 hour price, and a trading chart.
When you’re ready to trade, there are a few features you’ll need to take note of.. The buy or sell limit feature allows you to choose at what price you want to purchase the coin for. Once your particular coin reaches your limit price, the exchange will open your trade.
Say you’re trading the BTC/ETH pair. Once you set a buy limit order for 0.02 ETH for 0.01 BTC and your order is filled, you’ll have 0.02 ETH at the buy price of 0.01 BTC. This may be hard to grasp at first, but once you do it a few times, you’ll won’t ever forget it.
For more detailed information about this process, check out this video
Also take note of the Stop Loss feature which is a function that allows you to close a trade once the pair hits a certain price (usually below your buy in price). This lets you control how much of a loss you’ll incur in the event that your trade doesn’t go too well. This is a significant feature in trading due to the fact that it allows you to manage your funds wisely. It’ll ensure you never lose more than a given percentage in case your trade goes south.
What is the Binance Coin?
The Binance coin, also known as the BNB, is Binance’s own token which was specifically created by the exchange. This coin is the preferred method of paying for fees incurred while trading on the platform. The fees include buying and selling, as well as withdrawal fees in case you decide to move your currency to another exchange.
One of the great things about using the BNB coin is that you will get a 50% discount for your transactions in the first year of trading withinthe exchange.
This is to entice more people to use the coin and participate in the exchange more often. On the second year, you’ll receive a 25% discount, 12.5% discount in the third year, and a 6.25% discount in the fourth.
Another great feature of BNB is that it’s used alongside the Binance Launchpad to allow you the opportunity to directly invest in ICO’s through Binance. If there’s is a particular ICO you’ve been researching, Binance will allow you to have first dibs on the ICO using their BNB token. Pretty cool right?
Start trading on this extremely well-designed crypto trading platform today. Remember, only trade with money you can afford to lose to ensure you have a great and potentially profitable experience. Good luck and happy trading!
However, we have a different opinion. We believe that the volatility is unlikely to stay subdued for long. Within the next few weeks, we should get a large range move that will start a new trend, either up or down.
This week, we have a new leader, Bitcoin Cash, that has risen about 9 percent during the past week. Until Thursday, the price of the digital currency was languishing similar to the other cryptocurrencies. However, on Friday, prices soared following an announcement by crypto exchange Binance that it would support the impending hard fork on Nov. 15. After the initial bump up, can the rally continue? Let’s find out.
The long-term trend on the BCH/USD pair is clearly down. Throughout this year, it has failed to hold on to the support levels and has continually made a lower low. Though the bulls have held onto the $408.32 mark for the past seven weeks, they haven’t been able to push prices higher. This shows a lack of demand at higher levels.
The current pullback will face a stiff resistance in the zone of $591.41–$660.0753. If price sustains above this zone, it can climb to $891.4634 and thereafter to $1,200.
On the downside, $408.32 is the critical support, below which the fall can extend to $282. The longer the virtual currency stays in a tight range, the sharper the next move will be. It has a history of vertical rallies; therefore, the traders can buy when a reliable buy setup forms.
After the recent listing of BAT on crypto exchange and wallet Coinbase, will Stellar be the next cryptocurrency that will make the cut? Many believe that XLM has the requisite credentials to be listed on Coinbase. If that happens, we might see a rally. What are the key levels to watch?
The XLM/USD pair has formed a large descending triangle pattern that will complete on a breakdown and close (UTC time frame) below $0.184. Currently, the bulls are attempting to break out of the downtrend line of the triangle, which will invalidate the bearish pattern. Failure of a bearish pattern is a bullish sign.
We like the way the digital currency has stayed above $0.2 levels for the past five weeks, which shows demand at lower levels. If the bulls succeed in sustaining above the downtrend line, a rally to $0.36 followed by a move to $0.47 is likely. Traders can wait for prices to sustain above $0.30 before buying. That is because if the prices turn down sharply after a break out of the downtrend line, the probability of a break down of $0.184 increases.
Featured cryptocurrency* – ARK/USD
ARK is currently ranked 71st in terms of market capitalization. It is about to release the much-anticipated new core code base, making it faster and modular with full plugin capabilities similar to WordPress.
Anyone can create their own fully customizable cross chain compatible blockchain using ARK. It will also be the first delegated proof of stake (DPOS) with a switch from static/flat fees to a customizable dynamic fee structure. There are a number of new features and partnerships being added regularly whose details can be accessed on its blog.
Similar to the other cryptocurrencies, the ARK/USD pair has also been in a strong downtrend since topping out in early-2018. The bulls attempted to stall the decline around the $2 mark, which was a strong support. However, the bears broke below it in early-June, resulting in a sharp fall.
The virtual currency bottomed out in mid-August at $0.50712042. Since then, the price has gradually inched higher, which is a positive sign. On the upside, $1.02093420 might act as a stiff resistance. If the bulls scale this level, a rally to the overhead resistance zone of $1.68–$2 is probable. The digital currency is likely to pick up momentum above $2.
On the downside, if the bears sink prices below $0.50712042, a fall to $0.40 and $0.30 is possible.
Monero rose by just over 1 percent in the past seven days, claiming the third spot in the list of top performing cryptocurrencies with a market capitalization of more than $1 billion.
Since early July, the XMR/USD pair has been trading in the range of $81–$150. For the past seven weeks, the range has shrunk to $100.453–$128.65. From last week, the weekly range has reduced further. The tighter and longer the range, the stronger the eventual breakout or breakdown will be.
However, the first move is often a false one. Therefore, traders should wait for the breakout to sustain and show follow up buying before jumping in to buy. There are no significant resistances above $150 until $300.
Conversely, a break below $100.453 will increase the probability of a fall to $81. This is a major support, as it has not been breached convincingly for more than a year. Hence, if this level gets broken, the digital currency can quickly correct to $52–$58.
EOS again received the top standing in China’s 6th global public blockchain technology assessment index. On the other hand, research conducted by benchmarking firm Whiteblock for ConsenSys concluded that EOS lacks “the fundamental components of a blockchain or peer-to-peer network” and is “fundamentally same as a centralized cloud computing architecture.”
The EOS/USD pair has been trading inside the range of $4.493–$6.8299 since August. For the past five weeks, the range has tightened further. This shows a balance between the bulls and the bears. Currently, neither party is making a major move and new investors are sitting on the sidelines.
If the price breaks out of the tight range, it can move up to $6.8299. Above this, we anticipate buying to resume that can carry the digital currency to $9.4456 and $15. However, if the price breaks below the current tight range, it can drop to $4.49, which is a minor support. $3.8723 is the critical support, below which the price might plummet to $2.40 and $1.70.
Ripple has been making progress in signing various institutions to its platforms, mainly targeting cross-border payments. The Middle East is a lucrative market for the company because of the high level of payments that go in and out of the region. Ripple has already tied up with a few banks in Saudi Arabia, Kuwait, Bahrain and Oman, and the company now reportedly plans to open an office in Dubai by the end of the year. How does its chart look?
The XRP/USD pair rallied sharply in mid-September. However, the bulls could not sustain the momentum and the pullback extended to 78.6 percent retracement levels. Usually after such a deep retracement, a range bound action for a few weeks is likely. For the past two weeks, the 20-week EMA is acting as a resistance. If the bulls break out of the immediate resistance zone at $0.475–$0.5, a move to $0.62 and $0.7644 is plausible. We expect a new uptrend to begin above $0.76440.
If the bears sink the price below $0.37185, the virtual currency will complete a 100 percent retracement and drop to the critical support at $0.24508.
Coinbase has just announced that trading of the Basic Attention Token is soon to be enabled on the Coinbase Pro platform, and deposits of the token are now being accepted. Trading in the token — which runs on Ethereum — will actually begin after a market begins to formulate.
From the announcement:
“Once sufficient liquidity is established, trading on the BAT/USDC order book will start. […] BAT trading will be accessible for users in most jurisdictions, but will not initially be available for residents of the state of New York.”
Trading is apparently not going to be allowed to residents of New York, likely due to regulatory concerns. Users will have to bring their own BAT, as purchase of the token is not currently available on the regular Coinbase.com.
The price of BAT was around 25 cents as of yesterday, but on today’s news, it has gone up by a nickel. It is not difficult to speculate that the increased exposure through the Coinbase Pro platform will continue this incline and that BAT could see new highs beyond its all-time-high of more than 60 cents per token.
The Brave browser project is the primary effort behind BAT, which is aimed at rewarding users for enabling ads. Brave browser has ads disabled by default. BAT tokens have a real-world value assigned by market traders and benefit both sides of the content world – the viewer and the content provider. Last year, Brave enabled them on YouTube videos and over the past few weeks, prior to the listing on Coinbase Pro, the token has seen a rally due to the program entering beta and increased awareness.
The Chrome-based browser itself has millions of active users and discourages tracking, malvertising, and inefficient website coding. Current market share reports on browsers do not sufficiently differentiate user agents enough to tell the difference between various forks of Chrome; thus, it is hard to estimate how many people are currently using the browser. Nevertheless, as market share of it grows, the native utility of the BAT will continue to grow, and thus so will demand for it.
CCN will check in with BAT as trading on Coinbase goes live to see whether the move by one of the oldest, largest, most compliant exchanges will have a positive impact. It’s important to note that BAT has long traded on Binance, which is an exchange with the most volume across several markets.
There is a rapidly growing interest in bitcoin and other cryptocurrencies among institutional investors while there seems to be lethargy in the number of retail buyers operating within the space.
As such, bitcoin and altcoins now constitute a new institutional investment class since 2017, according to new research from major US bank Morgan Stanley.
In the report titled “Bitcoin Decrypted: A Brief Teach-in and Implications” and dated Oct. 31, the multinational investment bank’s research department gave an overview of the last six months of bitcoin and brought up insights about observable trends. This new report serves as an update to an earlier report published in December titled “Bitcoin Decrypted: A Brief Teach-in and Implications.”
The findings underscored the researchers’ observation of what the report described as the rapidly morphing thesis of the market, covering evolving perceptions of bitcoin since it was introduced into circulation as “electronic cash” in 2009.
Rise of Bitcoin & a New Financial System
In 2009, bitcoin came into reckoning as a viable alternative to the big banking cartels after it was first issued through open-source software. It attained a cult-like following, and by 2012, it was in the spotlight of mainstream news as the means of transaction in the online black market infamously referred to as the Silk Road marketplace. Its growing market capitalization drew the attention of entrepreneurs, tech-oriented individuals across the globe, activists, journalists, and blockchain-based crypto initiatives followed in their droves.
Bitcoin has been able to provide a decentralized payment mechanism which employs the use of a distributed ledger. While it appealed to some as a novel system capable of disrupting existing business models, it also proved to be a veritable tool for facilitating new economic relationships and linkages. As a digital currency, its distributed ledger makes it easier to process retail payment transactions such as e-commerce, person-to-person payments, and cross-border transactions with lesser costs and logistics attached when compared to what is obtained in financial institutions.
While it is still widely regarded as a speculative investment, it is already being used as a store of value and has been touted as a potential means of payment in the next decade. Dr. Zeynep Gurguc from Imperial College London has said that the criteria which need to be fulfilled for it to be fully incorporated into the payment systems include: scalability, usability, regulation, volatility, incentives, and privacy.
The report highlighted developments such as the recording of all transactions on a permanent ledger, the emergence of novel and cheaper technologies than bitcoin, volatility in the market, the volume of hacks, and hard forks as concerns which have affected the bitcoin ecosystem.
In view of this, the prevailing bear market coupled with the decline in price predisposes bitcoin and altcoins as a “new institutional investment class,” and this has been the trend in the last year.
The study cited the new crypto services division of Fidelity, investments in crypto firms such as Binance, and regulatory approvals as evidence of the increased participation of financial institutions lending credence to the market thesis.
According to the Morgan Stanley Research, some of the bottlenecks faced by clients who were interested in investing in the cryptocurrency industry include regulatory disparities, the absence of regulated custodial solutions, and the lack of formidable financial institutions operating in the industry.
Rise of Stablecoins
The report also recorded the gradual rise of fiat-pegged crypto stablecoins, which more or less began in 2017 but has quickened this year. The decline in cryptocurrency prices elicited an increase in the share of BTC trade volumes taken by USDT. Exchanges were used to trading crypto for crypto with relatively few involved in the trade of crypto for fiat.
The research, however, does not see all stablecoins surviving on the long-term. Those who would survive will most likely have relatively lower transaction costs, very high liquidity, and a clear regulatory structure.
This week, Bitcoin mining equipment manufacturer and blockchain software firm Bitfury secured a valuation of $1 billion from billionaire investor Mike Novogratz and Korelya Capital’s $80 million investment in the firm. The multi-million dollar funding round comes
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IBM has filed a patent for a blockchain-based system which will prevent players of augmented reality games entering physical spaces that are undesirable. They cite as examples “high-risk locations, culturally sensitive locations, locations marked by property owners.”
Recent times have seen banks hedging their bets or even fully integrating cryptocurrencies. The acquisition and filing of patents is how large organizations truly express their interest in a given field, and Bank of America continues
Bitcoin (BTC) turned ten on Oct. 31, but there were no fireworks to mark the celebrations: the cryptocurrencies continue to trade in a tight range. Arthur Hayes, CEO of BitMEX, believes that the current period of low volatility can
Coinbase has just announced that trading of the Basic Attention Token is soon to be enabled on the Coinbase Pro platform, and deposits of the token are now being accepted. Trading in the token — which runs on Ethereum
What a difference a few months can make. It seems like a lifetime ago that Arthur Hayes, CEO of cryptocurrency derivatives platform BitMEX, predicted that the bitcoin price could reach $50,000 in 2018. In fact, it has
There is a rapidly growing interest in bitcoin and other cryptocurrencies among institutional investors while there seems to be lethargy in the number of retail buyers operating within the space. As such, bitcoin and altcoins now constitute a new
Retired US Congressman Ron Paul, a one-time bitcoin skeptic, called for a tax exemption on all cryptocurrencies, saying the move could prevent an economic recession. Ron Paul, the father of current United States Senator Rand Paul,
Tether Limited, the issuer of controversial USD-pegged cryptocurrency stablecoin tether (USDT), has confirmed that it has established a banking relationship with a small financial institution based out of the Bahamas. The cryptocurrency firm, notorious for its opaque operations,
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