Categories
Crypto News Updates

Making Bitcoin Go Viral: Could Endless Printing Trigger a Hyperbitcoinization Event?

Making Bitcoin Go Viral: Could Endless Printing Trigger a Hyperbitcoinization Event?Hyperbitcoinization has been defined as “a state where bitcoin becomes the world’s dominant form of money.” But what actually needs to happen for bitcoin to ‘go viral’? As it turns out, a hyperbitcoinization event may be more likely than many suspect, especially in the current economic climate. However, there’s one big caveat: it requires human action.

Also read: Disney World Economics: How Coronavirus Could Be Used to Justify a Global Financial Reset

Contagious Currency

The current covid-19 panic and pandemonium gripping the world has brought economic issues to the forefront of conversation, as economies across the globe are stunted by government orders to shutdown. Whether this is the best way to contain a contagion is hotly debated, but the paranoia about getting sick has stretched so far as to even touch the safety of paper cash.

Some nations, China and the U.S. among them, have been quarantining and disinfecting physical cash, for fear that it could spread the covid-19 virus. This potential transmission vector is viewed as an important threat, and many businesses across the globe are encouraging customers to use contactless payment systems in lieu of the dirty paper stuff.

There’s even been a buzz in the bitcoin space about this being an argument for crypto adoption. But for bitcoin to catch fire and really spread around the world in viral fashion, a number of factors must be present.

Making Bitcoin Go Viral: Could Endless Printing Trigger a Hyperbitcoinization Event?

Conditions Necessary for Hyperbitcoinization

In order for “Bitcoin-induced currency demonetization” to take place, three main factors must be present so that a competing money “will rapidly lose value as bitcoin supplants it.”

Making Bitcoin Go Viral: Could Endless Printing Trigger a Hyperbitcoinization Event?
Unemployment insurance claims from the state of Texas illustrate a remarkable spike in job losses due to covid-19 shutdowns, and have resulted in processing systems being overwhelmed. Source: bizjournals.com

Loss of Faith in Established Systems: Individuals across the globe are losing jobs and losing trust in their governments, their monetary systems, and in many cases, the broader global economic paradigm itself. Before covid-19 showed up, the world was already in the throes of widespread protest and unrest surrounding corrupt governance and economically unviable situations at a systemic level.

Now states have leveraged coronavirus to justify shutting down innumerable businesses and halting critical industry, many more are asking questions, and some are losing faith in the Modern Monetary Theory magic, which says that you can always “just print more money” when times are hard. The thing is, you can’t “just print more” goods and services. As currencies across the globe lose value, hyperinflation is also not an entirely impossible outcome, meaning dollars could potentially turn into valueless scraps of paper.

Making Bitcoin Go Viral: Could Endless Printing Trigger a Hyperbitcoinization Event?

Viable Alternatives to Fiat: Bitcoin is permissionless, fast, borderless, low-fee, and decentralized. While the issue of which version of bitcoin would best serve as a global money is debated, the critical fact is that an alternative to government fiat does exist, has active use cases, and is at this point time-tested. It is also hard-capped in supply and looks promising as an inflation-resistant asset.

Further, with governments now in development and research for CDBCs (central bank digital currencies) even so-called “normies” are being primed for understanding how crypto and digital assets work. The corona zeitgeist is one that includes mainstream media buzz about a “digital dollar” and “digital yuan.” This presents a unique window of opportunity for a shift away from fiat currencies.

Open Markets: Of all the prerequisites for hyperbitcoinization, this is arguably the trickiest, and will be dealt with more in-depth at the close of this article. Suffice to say that without the ability for individuals to transact freely and voluntarily no currency — not even national currencies like the yen, dollar, or peso — can be successful.

Making Bitcoin Go Viral: Could Endless Printing Trigger a Hyperbitcoinization Event?
Nobel Prize-winning mathematician and economist John Nash

‘Ideal Money’

Late Nobel Prize Laureate John Nash, an American mathematician known for — among numerous other accolades — being the namesake for game theory’s Nash equilibrium, developed a notion he referred to as Ideal Money.

Ideal Money would be, simply put, a money whose value is not foundationally subject to political special interests and conflicts of interest like the USD, and which is not inherently subject to inflation. Loosely comparing modern economic planners with Bolshevik communists, Nash once wrote:

So there may be an analogy to this as regards those called ‘the Keynesians’ in that while they have claimed to be operating for high and noble objectives of general welfare what is clearly true is that they have made it easier for governments to ‘print money’.

Nash’s words sound hauntingly on target today, as we witness nations like the U.S. create unprecedented amounts of fiat out of thin air, ignoring that eventually, someone must pay the piper.

Making Bitcoin Go Viral: Could Endless Printing Trigger a Hyperbitcoinization Event?

Though Nash had his own ideas about what might best constitute this so-called ideal, the renowned mathematician did not rule out bitcoin.

In fact, he wrote in his paper Ideal Money: “My personal view is that a practical global money might most favorably evolve through the development first of a few regional currencies of truly good quality. And then the ‘integration’ or ‘coordination’ of those into a global currency would become just a technical problem.” Nash went on:

But the famous classical ‘Gresham’s Law’ also reveals the intrinsic difficulty. Thus ‘good money’ will not naturally supplant and replace ‘bad money’ by a simple Darwinian superiority of competitive species. Rather than that, it must be that the good things are established by the voluntary choice of human agencies.

Making Bitcoin Go Viral: Could Endless Printing Trigger a Hyperbitcoinization Event?

Human Action: The Final Ingredient

It is interesting that Nash describes “a few regional currencies of truly good quality” coming together someday via technical integration. Could this be an unintended, prescient nod to bitcoin, blockchain, and the various integrations and ideas the crypto space has seen over the years like atomic swaps and network interoperability?

Only time will tell. What is certain, and what Nash notes explicitly in the passage, is that no matter how seemingly fit the conditions, no exodus from the broken world of fiat can happen without voluntary human action.

This is a tricky thing. Those that use bitcoin know its value and utility, but they are limited in some ways as to how they can leverage digital cash due to enforced regulations. Those that don’t know about crypto in a meaningful way remain the unable-to-act majority, presenting a two-faced challenge. Standing in the way of hyperbitcoinization, then, is the obstacle of “going viral” and that of forced censorship. The first obstacle shouldn’t be hard to overcome, on surface view. The second is more daunting.

Making Bitcoin Go Viral: Could Endless Printing Trigger a Hyperbitcoinization Event?

According to marketing group Outgrow, novelty and “information gaps” play a major role in determining what type of content goes viral online. The group notes:

Researchers have found that a part of our brain actually feels rewarded by novel ideas rather than the familiar. When consumers feel they’ve been led to a new notion or concept, their brains flood their bodies with dopamine.

A lack of desperately sought info — or “information gap” — can also lead to virality, according to the group, when that info is found.

So in this context of the current mass unemployment, crashing stock markets, and an increasingly questionable world reserve currency, emotions, which are another major indicator for virality, are running extremely high. And lo and behold, there is a novel proposed solution which fills the info gap of the “what is good money” question.

Making Bitcoin Go Viral: Could Endless Printing Trigger a Hyperbitcoinization Event?

Still, there’s something of a catch 22. If the masses aren’t using it, it’s not going to be very useful in a situation like this. If they don’t start, a dire situation like this is bound to perdure, and repeat. Whether in compliance with laws and regulations or otherwise, individual actors have proven bitcoin’s strength by trading regardless, and such use is required to show the world bitcoin’s utility.

From feeding the hungry in Venezuela and South Sudan during a global crisis with borderless BCH, to making money for survival by selling goods peer-to-peer with no middleman or political permission, bitcoin is virtually unconfiscatable. It allows a shift from the broken fiat paradigm if individuals so choose. This core utility is what could ultimately trigger hyperbitcoinization, and what a “digital dollar” can’t hold a candle to. Then there might be a real shot at a peaceful, sound, and sensible global economy.

Do you think hyperbitcoinization is possible? Let us know in the comments section below.

The post Making Bitcoin Go Viral: Could Endless Printing Trigger a Hyperbitcoinization Event? appeared first on Bitcoin News.

Source: Bitcoin News

Categories
Crypto News Updates

Judge Grants Injunction Halting Telegram’s TON Release Again, Notice of Appeal Reportedly Filed

Judge Grants Injunction Halting Telegram's TON Release Once Again, Notice of Appeal Reportedly FiledThe embattled Telegram Open Network (TON) blockchain and its native gram cryptocurrency have seen plans for launch stifled once again, with a preliminary injunction granted by Southern District of New York Judge P. Kevin Castel. The March 24 injunction sides with the U.S. Securities and Exchange Commission (SEC), concluding that the messaging giant’s plans “amount to the distribution of securities, thereby requiring compliance with section 5.”

Also read: Regulatory Roundup: Crypto Regulations Advance Despite Global Crisis, Cash Shortages, Bank Closures

More Delays for TON

The Court finds that the SEC has shown a substantial likelihood of success in proving that the Gram Purchase Agreements, Telegram’s implied undertakings, and its understandings with the Initial Purchasers … amount to the distribution of securities, thereby requiring compliance with section 5,” the March 24 injunction reads.

The ruling is the latest blow to the project, which has been struggling to prove grams are not securities under U.S. law since October, when the regulator obtained a temporary restraining order against Telegram.

The SEC filed a complaint at the time alleging that “defendants failed to register their offers and sales of Grams, which are securities, in violation of the registration provisions of the Securities Act of 1933.” Telegram addressed the issue by bumping back the launch date to April 30 after consulting with investors, but now that plan is also halted for the time being.

Judge Grants Injunction Halting Telegram's TON Release Again, Notice of Appeal Reportedly Filed

Court Says Grams Are More Than Just Cryptocurrency

The judge found that grams met criteria of the Howey Test, stating: “The Court rejects Telegram’s characterization of the purported security in this case. While helpful as a shorthand reference, the security in this case is not simply the Gram, which is little more than alphanumeric cryptographic sequence,” elaborating:

This case presents a ‘scheme’ to be evaluated under Howey that consists of the full set of contracts, expectations, and understandings centered on the sales and distribution of the Gram.

According to the Opinion & Appeal, the court “finds that Telegram did not intend for the Grams to come to rest with the Initial Purchasers” and that “Telegram’s goal of establishing Grams as ‘the first mass market cryptocurrency’ required that the 58% of all Grams sold in the 2018 Sales reach a much wider pool than the 175 Initial Purchasers.”

As such, the judge maintains in his ruling that Telegram sought out buyers and firms with investment intent, who were looking to make profit on the offering. Telegram, for its part, has notified potential TON participants that they shouldn’t expect profits, and that grams are meant as a medium of exchange.

Judge Grants Injunction Halting Telegram's TON Release Again, Notice of Appeal Reportedly Filed

Telegram Says It Will Have ‘No Control’ Over TON, Judge Not Swayed

In a February hearing, Telegram’s legal counsel has argued the tokens would not be accompanied by managerial oversight to increase their value after launch, so they don’t qualify as securities.

Though the group maintains they are “like an architect who designed a skyscraper [but] can’t control what happens with the building after it’s finished,” Castel was not convinced. “An injunction, prohibiting the delivery of Grams to the Initial Purchasers and thereby preventing the culmination of this ongoing violation, is appropriate and will be granted,” the order reads.

The repeated challenges presented by the SEC have understandably left many investors frustrated, and likely the messaging service itself, who hasn’t bent over backwards to please the regulator. Amidst all the legal chaos, in January, the group reportedly refused to turn over TON bank records detailing how it spent $1.7 billion raised from investors.

Telegram has reportedly filed notice of interlocutory appeal since the new Opinion & Order was issued. However, appellate review at this juncture is generally viewed as unlikely, and a permanent injunction is expected by observers.

What do you think about the judge’s decision in this case? Let us know in the comments section below.

The post Judge Grants Injunction Halting Telegram’s TON Release Again, Notice of Appeal Reportedly Filed appeared first on Bitcoin News.

Source: Bitcoin News

Categories
Crypto News Updates

Cash Crisis: National Currencies Plunge in the Wake of Coronavirus

Cash Crisis: National Currencies Plunge up to 25% in the Wake of CoronavirusFiat currencies across the globe have experienced sharp declines in the wake of the coronavirus panic, with the Norwegian Krone falling over 30% lately last week. The Mexican peso and Australian dollar trailed close behind over the same period, with multiple fiat currencies also taking a nosedive. Though USD remains strong, some speculate this is due to flight from other markets, and that the bastion of fiat strength might not be able to withstand endless printing and reckless credit creation of QE much longer.

Also read: The Multi Trillion-Dollar Stimulus Package: These Are the US Corporations Begging for Bailouts

‘Unlimited Money’

Announcing an open-ended QE program Monday for unprecedented asset purchasing, the U.S. Federal Reserve has pledged to purchase assets “in the amounts needed,” signaling the beginning of a virtually unlimited easing effort which will include moving into corporate bonds for the first time.

As lockdown orders, enforced business closures and travel bans continue to wreck economies, world currencies are reeling from the massive shock spiked by coronavirus panic and containment measures. The Fed and other central banks of the world may have their eyes on unlimited support, but many fiat currencies are telling a different story.

Cash Crisis: National Currencies Plunge in the Wake of Coronavirus

Norwegian Krone and Others Knocked Down by Virus-Plagued Markets

The Norwegian krone has now hit a record low against the U.S. dollar, falling 25% from the end of December, and over 20% in just under two weeks from March 9 to 20. Other currencies have taken the same trajectory in that 11-day time frame, with the Mexican peso and Australian dollar falling 17% and 13% respectively.

NZD, GBP, SEK, and other fiat currencies aren’t doing a whole lot better. The British pound has tumbled downward past levels not seen since 1985, falling against the euro.

Quoted in a March 19 report by Bloomberg, European head of currency strategy at Toronto-Dominion Bank, Ned Rumpeltin, opined:

At a minimum, we think there is a strong impulse to liquidate what you can — before you can’t — as London’s trading floors are probably about to be slammed shut before too long.

Fears of circuit breakers and trading suspensions aren’t unwarranted. March has seen stock exchanges across the globe tighten restrictions and adjust trading rules, with a temporary suspension of all trading in the Philippines on March 17, and the NYSE opening yesterday for the first time in 228 years to an empty floor.

But What About the US Dollar?

Amidst all the chaos the U.S. dollar is surging against other world currencies. While the dollar remains strong for now, some are not certain the situation can continue, especially with the unadulterated market intervention happening currently, and talk of humongous stimulus packages. U.S. Democratic Senator Chuck Schumer described his plan for “unemployment on steroids” Sunday:

You lose your job because of this crisis or any other reason, the federal government will pay you your full salary for 4 to 6 months.

While many imagine hyperinflation to be a freak economic phenomenon reserved only for non-U.S. countries, An Art Cashin piece from October 15, 2011 notes that “Hyperinflation requires a central bank to willingly commit economic suicide.”

Though Cashin thought this was unlikely for the U.S. almost a decade ago, his descriptions of the hyperinflation in Germany’s Weimar Republic now sound eerily familiar to some:

Things did not go badly instantly. Yes, the deficit soared but much of it was borne by foreign and domestic bond buyers … that means foreign bond buyers said – ‘Hey this is a great nation and this is probably just a speed bump in the economy.’

“When things began to disintegrate, no one dared to take away the punchbowl,” Cashin continues. “They feared shutting off the monetary heroin would lead to riots, civil war, and, worst of all communism. So, realizing that what they were doing was destructive, they kept doing it out of fear that stopping would be even more destructive.”

Cash Crisis: National Currencies Plunge in the Wake of Coronavirus
At the height of the German hyperinflation in November 1923, 1 USD was worth roughly 4,200,000,000,000 German marks.

Future of Fiat Uncertain, as Governments Stave Off Painful Economic Realities

While it’s yet uncertain if such a fate awaits the USD, it is interesting to note the similarities. The Weimar Republic was a product of the first World War’s ravaging, prolonged effects on Germany.

With a war-torn economy that was unable to produce, the answer was to just print more money. Looking at U.S. President Donald Trump’s recent proclamation that he is a “wartime president” and that fighting the covid-19 virus is now “a war — a different kind of war than we’ve ever had,” it raises suspicion about the forced shutdown of economies currently witnessed. Unemployment rates are expected to skyrocket in coming months. There’s no worries according to the U.S. leader, however, who maintains:

First of all, you never have to default because you print the money, I hate to tell you, OK?

As astute economists are quick to point out, you can print money infinitely, but you cannot print the scarce assets, resources, labor and expertise the money is meant to represent. This is one reason some now are moving value to perceived safer, hard-capped supply assets such as bitcoins or physical gold.

What do you think about the decline of national currencies being witnessed now? Let us know in the comments section below.

The post Cash Crisis: National Currencies Plunge in the Wake of Coronavirus appeared first on Bitcoin News.

Source: Bitcoin News

Categories
Crypto News Updates

How Institutional Players Like CME, CBOE and Bakkt Influence the Bitcoin Price

How Institutional Players Like CME, CBOE and Bakkt Influence the Bitcoin PriceThe introduction of institutional heavyweights like CME, CBOE and Bakkt to the bitcoin space was heralded by many as the key to solidifying bitcoin’s mainstream acceptance, and driving prices to a stabilized moon. While this hasn’t played out exactly as some predicted, it is still early in the game, and bitcoin futures markets do arguably exert an influence on spot price. The quality and degree of said influence is debatable, but in this article we’ll look at a few ways the still young BTC derivative markets can potentially push and pull on the charts.

Also read: Liquid Gold vs Digital Gold: Why Bitcoin Beats Oil in the Current Climate

The First Regulated Bitcoin Futures and Corresponding Market Climate

At the end of 2017, both the Chicago Board Options Exchange (CBOE) and Chicago Mercantile Exchange (CME), introduced trading in bitcoin futures. This afforded many previously hesitant segments of the world market safer exposure to an asset deemed too dangerous to touch by many. It further allowed traders in countries where bitcoin was illegal or heavily restricted to benefit from the movements of BTC markets.

There is much debate as to if and how these markets significantly affect the bitcoin spot price, but comparing markets at specific times and climates can help analysts draw their own conclusions. When regulated BTC futures came on the scene in early December 2017, for example, bitcoin prices were already in rapid ascent.

On December 10, the day CBOE bitcoin futures launched, the BTC spot price saw a rise of over 10% and some speculated that the run up and meteoric rise of BTC to a December 17 all-time high of nearly $20,000 owed in part to excitement surrounding CME and CBOE futures. CBOE was the first to debut. CME futures had made their announcement two months earlier, in October, and notably launched on the exact day of the ATH, to see prices begin a precipitous decline soon after.

Theoretical Manipulation

Of course, many factors other than BTC futures are said to have played into the high bitcoin prices of late 2017 and early 2018. 2017 was the year of the ICO, with exciting and questionable projects popping up everywhere. Crypto was, prior to the regulations and reigning in of markets in years that followed, still a kind of financial Wild West.

While there are theories about financial giants manipulating markets by taking short positions in futures markets, and subsequently influencing public perception negatively via mainstream media, these accusations of market manipulation are hard to prove. Still, bitcoin futures did provide bearish investors a new means by which to short crypto markets, and some speculated this is what preceded the ensuing fall in price in 2018.

Entrance of Bakkt BTC-Settled Futures, Price Gap Hypothesis

When Intercontinental Exchange-owned Bakkt entered the scene with physically settled BTC futures in September 2019, regulated futures market influence on spot price became less theoretical. Unlike the CME bitcoin futures which are cash settled, Bakkt’s bitcoin settled futures are fully collateralized, and require the movement of actual BTC at contract expiry.

Hitting a new all-time high on February 6 this year, Bakkt’s open interest seemed to trace a 17% rise in BTC spot price which started January 24th. It makes sense that futures markets could be correspondingly affected by BTC spot price, but this doesn’t always seem to be the case historically.

Evidenced by record numbers for Bakkt in November 2019, in the midst of a $1,000 BTC market plunge, institutional futures sometimes seem to hold their own. Of course, the product had just launched in September, and some might assign novelty and bullish sentiment regarding institutional involvement as the driving force there. Still, from November 2019 until the new year BTC spot prices would hover relatively steady at just over $7,000, lending to speculation about the power of institutional involvement for spot price stability.

Example of a CME price gap being filled.

Price gaps in futures markets are another point of interest. As news.Bitcoin.com’s Jamie Redman pointed out in February, spot prices tend to follow and “fill” price gaps in futures markets. A gap in CME futures in that same month, for example, was followed by an almost immediate correction on the spot market when futures trading reopened. However, these predictions do not always pan out. Some recently predicted there were “no more gaps” on March 10, and that a bull run was in the works. Prices would plummet almost $4,000 in the next few days.

Covid-19 Incites Economic Panic, Futures and Options Falter, but Institutional Influence Remains a Force

Bakkt and CME bitcoin futures have taken a big hit due to the economic recession now underway as a result of coronavirus fears and ensuing business and travel shutdowns, with crypto analytics group skew noting a “50% collapse in bitcoin futures open interest last week.” There is almost no activity on the CME options front, and the same goes for an even worse-off Bakkt.

CBOE, for it’s part, announced it would no longer be offering bitcoin futures back in March 2019, but current contracts remain tradeable until they expire in June.

Whether institutional futures and options markets may step in here with greater contract numbers and surprise speculators as in previous dips is uncertain. As spot prices continue to be affected by media and bitcoin whales moving financial clout, institutional players like Bakkt and CME inarguably offer a relatively new and regulated forum by which movers and shakers in the crypto world can find novel ways to leverage markets, and by which analysts can learn more about BTC spot price and how it moves relative to these.

With heavy regulation, though, comes risk and dependence. Perpetually waiting for the SEC to approve a bitcoin exchange traded fund, for example, doesn’t exactly sound like the decentralized or permissionless crypto mainstreaming a lot of Satoshi acolytes want. Further, the more bitcoin moves into institutional money, the more sway these legacy and regulatory financial powers will be able to exercise over market prices, for better or for worse.

Do you think institutional players are good for bitcoin? Let us know in the comments section below.


Want to create your own secure cold storage paper wallet? Check our tools section. You can also enjoy the easiest way to buy Bitcoin online with us. Download your free Bitcoin wallet and head to our Purchase Bitcoin page where you can buy BCH and BTC securely.

The post How Institutional Players Like CME, CBOE and Bakkt Influence the Bitcoin Price appeared first on Bitcoin News.

Source: Bitcoin News

Categories
Crypto News Updates

China’s Changing Perception of Bitcoin: Bitkan CEO Shares Insights After 7 Years in Crypto Industry

China's Changing Perception of Bitcoin: Bitkan CEO Shares Insights After 7 Years in Crypto IndustrySince the advent of bitcoin in 2009, cryptocurrencies have gone from being a niche topic for tech nerds to ubiquitously recognized — if not always understood — staples of modern finance. Bitkan CEO Liu Yang recently took some time out to give news.Bitcoin.com a peek into the Chinese bitcoin community and its changing ideas and perceptions of crypto, throughout Bitkan’s seven years in the business. Though general narratives have changed and evolved, and the recent covid-19 crisis impacted markets, the CEO says that overall China is still bullish on bitcoin.

Also read: Tether Launches Stablecoin Token on Bitcoin Cash via Simple Ledger Protocol

Following Bitcoin, Forming Bitkan

An integrated platform for multiple crypto services, Bitkan was launched in March 2013 by former members of China tech giant Huawei‘s R&D department. CEO and co-founder Liu Yang was head of the Huawei Wireless Technology R&D department at the time, leaving to pursue business in crypto when, according to Bitkan, “most people saw Bitcoin as a Ponzi scheme.”

bitkan.com

“Bitkan started out as a geek product,” the company told news.Bitcoin.com. “The actual time that Bitkan was created was back in December 2012. At that time, most of the major exchanges for bitcoin geek players in China were all from abroad, hence Chinese bitcoin community users need some market alerts tools to facilitate price monitoring.”

After launch in 2013, the Bitkan platform grew to be a hub for market data, and an OTC and aggregated trading platform with an active community.

Shenzhen, China.

Chinese Community’s Perceptions of Bitcoin Change, OTC Trading Remains Popular

According to CEO Yang, bitcoin was initially a point of general intrigue for Chinese, but soon “went from being an item of curiosity to becoming deemed a Ponzi scheme by the Chinese community.” From there, the perception evolved. Yang elaborates:

Towards the end of 2014, everyone began to focus their attention onto blockchain technology. After the ICO wave in 2017, Bitcoin was characterized as a revolutionary digital currency. After the madness at the end of 2017, people have generally heard of Bitcoin. The common man is still rather wary of cryptocurrency while some people regard Bitcoin as the best digital investment product.

When it comes to China’s legal restrictions on the crypto industry, and OTC trading in the country, Yang told news.Bitcoin.com there will always be a demand.

“I would say that there is always a demand for OTC trading. Due to restrictive legislation on exchanges, the need for OTC will continue to exist to satisfy investment and trading needs. Thus, after regulations, OTC transactions will inevitably develop more vigorously than before.” Yang makes a small caveat: “However, from the perspective of the entire crypto market, I would say that the number of users are declining as a whole. This is due to regulation and the price of bitcoin.”

Covid-19 Crisis and Ensuing Market Slump

“I think the financial crisis has arrived. In other words, we are already caught in it,” Yang asserts.

Incidentally, the financial crisis this time is not quite the same as the financial crisis of 2008. This time, as the epidemic situation worsens, many production lines and commerce have stagnated. This may cause a more significant harm to the markets.

Noting government efforts to stem some of the economic carnage, Yang details: “From China’s $7 trillion planned infrastructure spending to U.S. interest rate cuts and the $400 billion plan to boost their economy to protect their businesses, we can see that global governments will likely take steps to save the markets.”

Workers at a factory in Jiujiang, China.

He also notes that some Chinese see the covid-19 crisis and ensuing crypto market plunge demonstrating “a certain degree of correlation between bitcoin and gold” as they have not appeared to follow the S&P stock market index in more recent events.

“We can see that the [crypto] price slump this time happened after the plunge of the U.S. stock market and crude oil,” he elaborates. “Likewise, it has also led to gold to fall as well. This morning (March 19), the S&P 500 circuit breaker occurred for the fourth time this month. However, gold did not fall together with the index and neither has bitcoin.”

Yang views the recent plummet in crypto prices as “a rapid deleveraging process” which will ultimately help crypto. “In the long run, it is conducive to the long-term development of cryptocurrencies. After this plunge, the development of cryptocurrencies will be more healthy and positive.”

Despite a Rough Start to 2020, China Still Bullish on Bitcoin

Challenges of the new year notwithstanding, Yang says that “when there is a crisis there are opportunities,” and “While some older traditional businesses may fall, at the same time, new business models may arise … the epidemic in China has actually accelerated the rise of e-commerce, remote working, online education and many other industries that were not that popular before.” He also predicts good things for bitcoin’s price, detailing:

I think that this round of decline is the result of the leverage effect in the crypto market, and it needs to burst its bubble. There will still be some fluctuations, but all in all the market is likely to have a strong recovery within a year, and is very likely to exceed the previous all-time-high.

Bitkan’s goal into 2020 remains to make crypto investment easier by way of a “one-stop crypto investment platform,” the CEO notes. As for China, Yang maintains that there is a marked difference between speculators and investors, the latter typically remaining steadfast through storms while some of the former peel off in defeat, and summarizes: “Although the view of the Bitcoin community in China is still relatively fragmented, the overall voice of the community is still bullish as it is currently in a period of severe volatility.”

What is your perception of bitcoin currently, amidst the crisis? Let us know in the comments section below.


Images courtesy of Bitkan.com, Shutterstock, fuyu liu, humphery, Joinmepic, fair use.


Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The Local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here.

The post China’s Changing Perception of Bitcoin: Bitkan CEO Shares Insights After 7 Years in Crypto Industry appeared first on Bitcoin News.

Source: Bitcoin News

Categories
Crypto News Updates

Tax Expert: IRS Crypto Question ‘Unconstitutional,’ Card Points, Flyer Miles Could Be Virtual Currency

Tax Expert: IRS Crypto Question ‘Unconstitutional,’ Points, Flyer Miles Could Be Virtual CurrencyWhile its well-known that the revised Schedule 1 form for U.S. taxpayers now contains a question about cryptocurrencies, what is lesser discussed are the legal ramifications this may have for filers who answer incorrectly. The vague nature of the yes or no inquiry has one tax expert doubting the constitutionality of the question, urging all filers to answer ‘yes’ to avoid bitcoiners being unfairly targeted. Further, as anything from frequent flyer miles to credit card points could technically fall under the IRS definition, answering yes could save some from a felony charge, according to the source.

Also read: IRS Now Requires Tax Filers to Disclose Crypto Activities

The Dreaded Crypto Question

“At any time during 2019, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?” the 2019 Schedule 1 question reads.

The problem here according to Enrolled Agent Clinton Donnelly of Donnelly Tax Law, is that the inquiry is not only illegal, it’s also far too vague. The question “violates many of the taxpayer’s constitutional rights and is a disturbing overstep of what Congress has authorized the IRS to do,” Donnelly told news.Bitcoin.com. “There is no law supporting this question in tax law.” He elaborated:

This question has a chilling effect on First Amendment Rights. It violates taxpayers’ legal protections, violates the excessive fines clause of the Eighth Amendment, along with the due process and equal protection clauses of the Fifth Amendment.

Tax Expert: IRS Crypto Question ‘Unconstitutional,’ Card Points, Flyer Miles Could Be Virtual Currency

Donnelly says that taxpayers should not have to report buying crypto unless in an audit. They only need to report selling it. “The tax law requires reporting income, including capital gains from the sale or exchange of cryptocurrencies. But to ‘receive’ or ‘acquire any financial interest in any virtual currency’ is not something that must be reported to the IRS under Title 26.” Here he refers to Title 26 of the Internal Revenue Service Code.

Tax Expert: IRS Crypto Question ‘Unconstitutional,’ Card Points, Flyer Miles Could Be Virtual Currency

Donnelly notes that “declaring that ‘under penalties of perjury, I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete,’ puts the taxpayer in a position of committing a felony for giving the wrong answer.”

He goes on to detail that under the IRS’s definition of virtual currency, even frequent flyer miles and points cards could put people in hot water:

From IRS Notice 2014-21: ‘Virtual currency is a digital representation of value that functions as a medium of exchange, a unit of account, and/or a store of value.’ This definition includes many things other than cryptocurrency.

“The way the IRS defines virtual currency is as a store of value,” Donnelly goes on. “Frequent Flyer miles are a store of value. Customer Loyalty cards are a store of value. Credit card points to buy things are a store of value. Therefore, it behooves every American to check yes to the Schedule 1 question.”

Though the IRS issued new information on policy last year, meant to supplement 2014’s guidance, the definition of virtual currency remains vague, and open to broad interpretation.

Tax Expert: IRS Crypto Question ‘Unconstitutional,’ Card Points, Flyer Miles Could Be Virtual Currency

To Disclose or Not to Disclose

Many might disagree with Donnelly, preferring to answer “no” than have a potential audit or investigation on their hands. But that all depends on what the agency knows. If someone’s downloaded a crypto wallet and answers in the negative, that could be a red flag for the agency. The IRS has not been helpful in clearing things up, either, with repeated calls from crypto holders and politicians alike for greater clarification on their seemingly cobbled-together policy.

According to Donnelly, it’s an issue of solidarity. “Answering yes is not only accurate, but the IRS is also clearly going after cryptocurrency holders with this question,” he emphasizes. “We need solidarity. We can’t allow the IRS to target a segment of society.” The tax professional summarizes:

The safest strategy is for everyone to answer yes to this question. Doesn’t this put me on a list? Yes, but if it is a list with every other Americans’ name on it, it will prove to be a very useless list for the IRS to pursue.

Tax Expert: IRS Crypto Question ‘Unconstitutional,’ Card Points, Flyer Miles Could Be Virtual Currency
A police officer in Rome, Italy enforces the nationwide coronavirus quarantine. Source: Em Campos

Tumultuous Times This Tax Season

With coronavirus panic gripping the world, markets plunging, medical martial law being instituted, and talk of aid money being given to citizens to help weather an unemployed period of quarantine, many are asking why they should pay taxes this year anyway. Donnelly posted a poll to his Twitter profile addressing the subject of tax deadline extensions due to the virus:

One user replied to Donnelly’s Twitter poll by saying:

Taxes=Theft…taxes should be completely eliminated forever…taxes are just plain robbery from the biggest criminal association in the universe..’Government’

That may be the case, but theft or not, the IRS wants your money and is serious about getting it. When it comes to whether it is best to check yes or no on the infamous Schedule 1 crypto question, that’s still largely anybody’s guess. Donnelly contends the question is an “unconstitutional overreach,” however, and should be withdrawn.

What do you think of Clinton Donnelly’s view on answering ‘yes’ to the crypto question? Could solidarity keep bitcoiners from being unfairly targeted by the IRS? Let us know in the comments section below.

Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.


Image credits: Shutterstock, Em Campos, fair use.


Do you want to maximize your Bitcoin Mining potential? Plug your own hardware into the world’s most profitable Bitcoin mining pool or get started without having to own hardware through one of our competitive Bitcoin cloud mining contracts.

The post Tax Expert: IRS Crypto Question ‘Unconstitutional,’ Card Points, Flyer Miles Could Be Virtual Currency appeared first on Bitcoin News.

Source: Bitcoin News

Categories
Crypto News Updates

Bitcoin Live: How to Watch the Next Price Run or Crash in Real-Time

Bitcoin Live - How to Watch the Next Run or Crash in Real-TimeWatching the bitcoin price move can be exhilarating, or at times soul-crushing, depending on the market. The unpredictability makes watching things unfold in real-time compelling, and checking the price via live broadcast is further enriched by commentary from popular traders and influencers. These let viewers in on their point of view as the market roller coaster unfolds by the second. In this article, we’ll look at some go-to broadcasters and live shows and see what they have to offer.

Also read: How to Track, Get and Set the Best Transaction Fees with Bitcoin and Bitcoin Cash

The Benefits of Bitcoin Live

It’s one thing to see a pre-recorded video of your favorite influencer or crypto commentator sounding off on the latest news. It’s an entirely different experience when the show is being broadcast live, charts are moving in the background, and the host — perhaps with a guest or two — is debating and speculating about what the hell is going on.

An electrified live chat box buzzing with fresh comments, questions and jokes makes the whole scene that much richer. What follows is a peek at some of the leading live bitcoin people in the cryptosphere today, and what they bring to the table.

Bitcoin Live: How to Watch the Next Price Run or Crash in Real-Time
CNBC

CNBC Television: Yes, it’s mainstream. Yes, it says “television.” All the same, for the political junkie with an interest in how world events are affecting markets — both bitcoin and legacy — CNBC’s Youtube channel offers a variety of programs, high profile guests, interviews and occasional live broadcasts with commentary.

The channel posts in prolific fashion daily, and though the focus is mainly traditional markets, it can help to contextualize bitcoin price movements in view of wider economic happenings and mainstream perception. For those that (perhaps rightly) think MSM is total garbage, remember the words of Hunter S. Thompson: “People think I watch TV too much, but they are wrong. There is a huge difference between merely ‘watching’ TV and learning to respond aggressively to it.”

Bitcoin Live: How to Watch the Next Price Run or Crash in Real-Time
Ivanontech

Ivan on Tech: Leaving the square world of CNBC behind, Ivan on Tech offers daily live analysis of what’s happening in crypto markets, and like CNBC contextualizes it. Ivan, however, takes an economic view critical of some of the “rotten fundamentals” of traditional finance and central banks.

The show has a highly active live chat, analyzes news, social media buzz and crypto Twitter commentary, and of course price movements of cryptocurrencies. Ivan also has a Youtube presence where recorded content can be viewed, but after a recent suspension from the platform, he’s moved the actual live show to his website. In the latest episode he discusses the recent coronavirus stock market collapse, and the suggestion that crypto markets might need “circuit breakers,” like traditional stock markets.

Bitcoin Live: How to Watch the Next Price Run or Crash in Real-Time
Mitch Ray

Mitch Ray: Mitch Ray’s crypto technical analysis (TA) channel is a true live-casting operation for hardcore crypto netizens. The long-form, multiple-times-daily crypto streams examine markets live, focusing mainly on BTC and stocks, sometimes discussing altcoin and gold/metals markets as well. It’s a relaxed format with charts front and center. The relaxing music and good humored banter with the live chat group combine to make analysis hip and goofy at the same time, highly detail-oriented, and fun.

Bitcoin Live: How to Watch the Next Price Run or Crash in Real-Time
Crypt0

Crypt0: Omar Bam, better known as Crypt0 to those in the bitcoin space, has a successful crypto Youtube channel with 119K subscribers. Putting out crypto video content “nearly” daily, as he clarifies, Bam does a combination of pre-recorded and live content, focusing on a wide variety of different coins, topics, and guests.

His latest livestream from March 12, “Markets Are Crashing – A Chat With Alex Saunders of Nugget’s News,” finds Crypt0 and Sanders chewing on the tough realities of the current market panic in light of the worldwide coronavirus scare. The combination of conversation, live chat, and a running ticker at the bottom of the screen so prices are never too far away makes for an engaging bitcoin live experience.

Bitcoin Live: How to Watch the Next Price Run or Crash in Real-Time
Introtocryptos

Introtocryptos: A more technical live-streaming bitcoin and altcoin channel, Introtocryptos allows you to watch bitcoin trades happening in real-time, seeing what amounts are being traded on which exchange. So, if you have seven hours to spare and want to actually hear the sounds of bitcoin being bought or sold, this is your bitcoin live broadcast. The channel also features shorter videos with live commentary about altcoin markets, bitcoin dominance, and other topics.

Buckle Up, Enjoy the Ride

While finding reliable content is always a challenge in the veritable minefield of scams and empty promises that can clutter the crypto space, as long as you’re buckled up and adequately cynical, the above resources can help to put flesh on the bones of the bare numbers of the market, making bitcoin price movements something to be experienced as much as just read on a screen.

So whether you’re looking to see if your bags are going to lift you to the moon, or for someone to commiserate with as markets sink into the icy seas of capitulation, live bitcoin broadcasts are where it’s at. If you’re particularly industrious, you can even start your own.

What’s your favorite live bitcoin broadcast? Let us know in the comments section below.

Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Price articles and market updates are intended for informational purposes only and should not be considered as trading advice. Neither Bitcoin.com nor the author is responsible for any losses or gains, as the ultimate decision to conduct a trade is made by the reader.


Image credits: Shutterstock, fair use.


Do you want to maximize your Bitcoin Mining potential? Plug your own hardware into the world’s most profitable Bitcoin mining pool or get started without having to own hardware through one of our competitive Bitcoin cloud mining contracts.

The post Bitcoin Live: How to Watch the Next Price Run or Crash in Real-Time appeared first on Bitcoin News.

Source: Bitcoin News

Categories
Crypto News Updates

Bitcoin Cash Meetups Go Virtual in Japan to Combat Virus, Allowing Members to Choose

Bitcoin Cash Meetups Go Virtual in Japan to Combat Virus, Allowing Members to ChooseDue to the spread of the COVID-19 virus, BCH meetup groups in Tokyo and Osaka, Japan, have announced they will be offering a virtual option for those wishing to avoid crowded places and to participate digitally, while still supporting merchants. In Tokyo, physical venues will still be booked for those opting to meet face-to-face, allowing bitcoiners to choose their own experience. News.Bitcoin.com asked organizers some questions about the announcement, how it will work, and difficulties in coming to consensus on how to best navigate this challenge.

Also read: These Online Stores Will Sell You Masks, Gloves, Emergency Items for Cryptocurrency

Japan BCH Meetups Go Virtual

Finding a local Bitcoin Cash meetup group near you isn’t hard to do. As BCH enthusiasts are all around the world, a simple scan of Bitcoin.com’s Events page map can have you meeting up with your fellow crypto heads, chewing the fat, and supporting local BCH merchants in no time.

Bitcoin Cash Meetups Go Virtual in Japan to Combat Virus, Allowing Members to Choose
Bitcoin Cash meetups around the world. Source: http://events.bitcoin.com

In light of the current coronavirus health concerns, two of these meetups — until now canceled for the month of March — have announced they will be heading to the virtual realm to help protect their health and that of others, while still getting together to support Bitcoin Cash. In an announcement shared today by Tokyo Bitcoin Cash Meetup organizer Akane Yokoo, members were notified that both Osaka and Tokyo bitcoin cashers can now get together as one group online:

Our virtual meetups will start this coming Wednesday March 18th from 7:30pm and we plan to host every Wednesday at the same time when our physical meetups happen. To join, please RSVP on Meetup.com and we will send you instructions and links to join the meetup. We will also update details for each meetup on Meetup.com including the venues.

Bitcoin Cash Meetups Go Virtual in Japan to Combat Virus, Allowing Members to Choose

Organizers Weigh in on the Decision, Discuss Details of Virtual Meetups

Tokyo organizers Aaron Gutman and Akane Yoko, along with Osaka organizers Yumeno and Cheaplightning, answered some questions for news.Bitcoin.com, weighing in on the organization process.

“Most of us are already engaged in some form of remote work and are accustomed to using online collaboration tools, and some of us are pretty big on VR,” said Gutman. Yumeno of the Osaka group noted:

It will also give the somewhat small Osaka community a better opportunity to mix with the larger Tokyo community. I am looking forward to hearing the Osaka meetup community members perspective.

In her own read.cash post on the matter, Yokoo noted some of the potential difficulties and also possible opportunities of the virtual meetups, which will continue indefinitely until the virus situation normalizes. “One of the things we were concerned that we won’t be able to do with online meetups is it is hard to create an environment where people can talk to whoever they like, with the language they choose if the tool only allows certain people to talk at a time such as a zoom call.” She continued:

VR (Virtual Reality) should be able to solve these issues all together but it will be expensive to make this happen soon. We do hope to eventually offer the VR options, while allowing people without it to be able to join too.

Bitcoin Cash Meetups Go Virtual in Japan to Combat Virus, Allowing Members to Choose

When asked about struggles in addressing the challenging COVID-19 situation, she responded: “It had been frustrating because we wanted to keep hosting meetups because many of our members wished to continue the meetups but at the same time we did not want to encourage opportunities for people to get sick and spread it.”

Cheaplightning also expressed frustration with the difficult situation:

At our last meetup I had to really think about if it is rude to be wearing a mask and offer alcohol tissues to people. There is this weird stigma and sort of damned if you do damned if you don’t aspect to it.

Bitcoin Cash Meetups Go Virtual in Japan to Combat Virus, Allowing Members to Choose
An unofficial Tokyo bitcoin cash meetup took place March 12 at BCH-friendly bar Bashi, seeing health-conscious bitcoiners, some of whom came with masks and hand sanitizer, gather. The virtual option now allows two ways for Tokyo Bitcoin Cash Meetup members to meet and talk about bitcoin cash, while supporting merchants.

In fact, though official meetups had been canceled for March, some resolute bitcoin cashers in Tokyo nonetheless ventured out and participated in their own meetups at bitcoin cash-friendly merchants for the first two weeks of the month. Yokoo clarified:

Even though we do not want to encourage members to go out and get sick, members should be free to do whatever they choose to do. If they choose to get together physically, the merchants are open for business as usual (look at our Meetup.com group to find which venues are scheduled for each meetup).

Cheaplightning of the Osaka meetup elaborates: “Of course people are free to still meet however they like, but we will not be organizing anything here ourselves for a while. I think of our community as friends. So it is certainly possible that we may meet a few of them.”

Gutman, for his part, stresses the virtual meetups should be preferred, saying, “I feel strongly that, regardless of whatever we do on our own accord, as a group we should always make positive social choices and demonstrate leadership. I urge those who have chosen to attend physical meetups to choose the virtual meetup.”

Bitcoin Cash Meetups Go Virtual in Japan to Combat Virus, Allowing Members to Choose
One of the main concerns of meetup members is how to effectively support BCH merchants. The virtual meetups will feature a tipping system to enable support, and in Tokyo physical locations will still be open for those choosing to meet at brick and mortar establishments.

Supporting Merchants a Big Concern

One of the main concerns of members was how to continue supporting merchants, while some members choose to meet virtually. “We came up with a good solution for that,” says Yokoo, “For each meetup, we pick one venue and we provide a BCH address of that merchant to the virtual meetup participants. Members can feel free to donate BCH, as if they are buying drinks at actual meetups. I feel like this is a good solution for people who want to help the merchants but don’t want to go out, and the same way for the merchants.”

Yumeno notes: “I also feel bad for our regular BCH accepting merchants. Even at our last meetup the owner said that their customer numbers were low. I want to support them. Our members might come even with the danger as they are passionate. But it is putting more people at risk.”

While it may be debatable how big a risk factor people already out and about meeting up and taking the proper precautions is, supporting merchants is a critical concern that unifies the organizers.

Meetups Around the World Going Strong

In spite of COVID-19 fears, bitcoin cash meetups worldwide are resilient, with new meetups emerging regularly. From newly announced groups in the Philippines, to upcoming events in Ghana which will help spur support for BCH House Ghana — an educational hub for crypto — permissionless, peer-to-peer cash is steaming forward. User Bitcoin Cast, tweeting about meeting at a new spot in Pasadena, California this week, said: “Really enjoyed the #BitcoinCash meetup today. First time at this new place! Even got some of the customers to download a wallet. I look forward to onboarding more #BCH merchants to come this year.”

In Venice, Italy, where the effects of the virus are being felt extremely heavily and the entire state is under quarantine, bitcoiners of the BTC variety are holding virtual meetups.

So whether meeting on the virtual plane as Tokyo and Osaka will now be able to, or in a local shop, bitcoin cashers can nevertheless see the indomitable power of peer-to-peer cash continue, even in these uncertain times, until meetups in these cities can resume as normal.

What do you think of the idea of virtual meetups in light of the COVID-19 situation? Let us know in the comments section below.


Images courtesy of Shutterstock, Graham Smith, fair use.


Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The Local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here.

The post Bitcoin Cash Meetups Go Virtual in Japan to Combat Virus, Allowing Members to Choose appeared first on Bitcoin News.

Source: Bitcoin News

Categories
Crypto News Updates

How to Track, Get and Set the Best Transaction Fees with Bitcoin and Bitcoin Cash

How to Track, Get and Set the Best Transaction Fees with Bitcoin and Bitcoin CashOnce set up with a bitcoin or bitcoin cash wallet and some coins, using and sending them is pretty easy. Part of this process involves paying a transaction fee, which is a small amount of coin included in a transaction incentivizing miners to work the tx into a block. Both BTC and BCH transactions have fees, with BCH fees being much lower. This post will detail some ways to find and track the best possible fees, set tx fees in your wallet, and make the most of this aspect of using peer-to-peer electronic cash.

Also read: How To Start Using Bitcoin: Buying, Storing, and Spending Crypto

How Transaction Fees Work

A transaction (tx) fee is a small amount of bitcoin included in a transaction that rewards miners for validating a payment, which results in confirmation on the blockchain. Higher fees generally will result in a tx being processed more quickly. Depending on the nature of your transaction, you may not be in a hurry to have it confirmed, and can set a lower fee in your wallet which might result in the tx being confirmed in a later block. In a more urgent situation, a higher fee will get your tx processed more quickly. This post will look at both BTC and BCH tx fees, and how to make the most of them.

Tracking BCH and BTC Fees

bitinfocharts.com

For starters, the highly customizable chart above from bitinfocharts.com, shows average BTC fees (blue) as compared to average BCH fees (red) over the past three months in USD. BCH fees are generally much cheaper thanks to a larger block size limit, meaning more transactions can fit into each block and the network is less subject to congestion. When a network is congested, users set higher and higher fees to outbid each other so their transaction will be processed first.

Another site that displays fees in a readily digestible, comparative format is bitcoinfees.cash, which shows the median Bitcoin Cash and Bitcoin Core network fees. “Typically, most people using Bitcoin as a currency don’t want to wait many blocks for their transactions to be confirmed,” the site maintains,” so they pay next block fees to get their transaction confirmed within 10 minute block times. Median fees are just the middle range of all the fees to give users a better idea of the average amount being paid by everyone, discarding high and low fees.”

Median fees for the BCH and BTC networks as displayed on bitcoinfees.cash. Bitcoin Cash fees are typically fractions of a penny in USD, making the network attractive to users seeking fast and cheap validations.

Transaction Size as a Factor

One thing that the average user or crypto newcomer might not be aware of is that calculating an appropriate tx fee can be much more involved than just looking at averages and medians. Transaction size (measured in bytes) also affects miner incentive to take your tx out of the mempool waiting room and process it.

Miners are looking for value, so even if a high fee is paid, if the tx size is huge, there is no guarantee it will be processed as quickly as others paying the same amount. This is why some wallets offer highly customizable fee adjustment options and detailed tx info which can be used in conjunction with real-time network data to customize a fee. Luckily for most users, however, built-in fee estimators are fairly reliable for general purposes, taking tx size and fee rate into account automatically.

For those wanting to see current tx size info on both the BTC and BCH networks, charts.Bitcoin.com provides this resource.

Average tx sizes for both the BCH and BTC networks are displayed at charts.Bitcoin.com.

Adjusting Fees in Your Bitcoin Wallet

Fees (often measured in satoshis per byte) can typically be adjusted in bitcoin wallets depending on the user’s individual needs. For users of the Bitcoin.com wallet — both desktop and mobile — there is a section entitled “Network fee policy” in the settings menu. Once tapped or clicked, a new menu is displayed which allows users to select their level of urgency, with options like “priority,” “normal,” and “economy.” This takes some of the guesswork out of setting fees where manual adjustment might be challenging for beginners, or inconvenient for everyday users.

Network fee policy information and settings in the Bitcoin.com Wallet.

Some wallets, such as the Electrum BTC wallet and the Electron Cash wallet for BCH, feature a slider by which the tx fee can be adjusted manually.

In the Electron Cash wallet the satoshi/byte fee rate is set as an integer from 1 to 10. In the Electrum wallet for Bitcoin Core, the fee rate is set according to a block target estimated time of arrival (ETA) as seen in the image below. The Electrum BTC wallet also provides further options for customizing fee settings such as the choice to estimate by mempool status, or to simply set a fixed fee rate. Fees can also be edited manually, and unconfirmed Replace-By-Fee (RBF) transactions “batched” (grouped together into a single transaction) to save on prices.

The Electrum BTC wallet allows fees to be manually adjusted focusing on a block ETA, among other options.

This likely sounds complicated for newcomers to crypto and everyday users, which is a large part of the reason Bitcoin Cash features a larger block size limit than Bitcoin Core. The greater capacity allows for less congestion and negligible fees, making many of the complications found in adjusting fees on the BTC network often seem unnecessary. BCH’s Electron Cash wallet also allows for a custom fee rate to be set, beyond the default slider options, but as RBF is not part of the Bitcoin Cash codebase for security reasons, RBF batches aren’t available in this wallet.

Timing Your Transaction for the Best Fees

As with traveling, sending a bitcoin tx is most easily and efficiently done when the roads are clear and traffic is light. If the side streets are clogged and you have to take a toll road, your trip is going to cost more. Also, depending on the time of day there may be traffic jams or rush hour congestion. Txstreet.com provides an excellent resource for viewing tx and mempool data, so bitcoiners can see the best time to send a transaction and a reasonable fee to pay.

Txstreet.com

When it comes to the best time to send a tx, that depends on a variety of factors. Price spikes can see network activity increase dramatically, and with it, fees. For example, just days after BTC’s historic all time high in December 2017, the average tx fee in USD was over $37 per transaction. This resulted in legions of everyday bitcoiners having to wait days for their txs to be validated. While this was certainly a special event, network congestion nonetheless plays a role in determining daily fees.

Johoe’s Bitcoin Mempool Statistics shows that early a.m., March 14, found the BTC mempool with significantly more unconfirmed transactions than at other times of the day.

A highly detailed resource for analyzing both the BTC and BCH mempool and tx fee activity, and getting familiar with daily, weekly, and market-correlated patterns across time can be found at Johoe’s Bitcoin Mempool Statistics. As the image directly above shows, the early a.m. hours of March 14 saw more unconfirmed transactions in the mempool as compared to other times of the day. The correlating “Pending Transaction Fee in BTCchart on the site shows generally higher fees during the same interval.

The site notes: “The data is separated into different fee levels given in satoshi per bytes. The lowest colored stripe is for transactions that pay the lowest fee. Higher fee transactions are stacked on top of it. Since miners prefer high fee transactions, a new block usually only removes the top 1 MB from the queue. If a colored stripe persists over several hours without getting smaller, this means that transactions paying this amount of fee are not confirmed during this time, because there are higher paying transactions that take precedence.”

Sites like this and others can help bitcoiners, regardless of wallet or preferred network, be sure they’re setting a good tx fee that will help them save money and get their transaction validated in a timely manner.

How do you find the best fees when sending bitcoin or bitcoin cash? Let us know in the comments section below.

Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.


Images courtesy of Shutterstock, fair use.


Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The Local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here.

The post How to Track, Get and Set the Best Transaction Fees with Bitcoin and Bitcoin Cash appeared first on Bitcoin News.

Source: Bitcoin News

Categories
Crypto News Updates

Disney World Economics: How Coronavirus Could Be Used to Justify a Global Financial Reset

Disney World Economics: How Coronavirus Could Be Used to Justify a Global Financial Reset‘What in the world is going on’ has now become a question of real pertinence, instead of just a cliché for common bewilderment. As COVID-19 panic grips the world, ripple effects are crashing markets and effectively canceling economies across the globe, scrawling the writing on the wall for something big. Even the beloved Walt Disney World has announced it will close its doors for the time being. It stands to examine then, whether there is substance to the idea that the ‘world grinding to a halt’ could be used to implement a new financial paradigm. One that is digital, surveillance-based, and most importantly, covers the economic sins of unsustainable times past.

Also read: Gold and Bitcoin Markets Tested, While Central Banks Try to Quell Stock Market Rout

Corona: The Favored Virus of ‘the Crown’?

Recent news of Disney shutting down brings attention to another ‘magic kingdom’ — the whimsical endless credit monarchy of Keynesian recklessness. It too appears to be reaching a terminal impasse. There is speculation the COVID-19 pandemic could be the perfect opportunity for the world’s financial planners to cover their past sins of mega bubbles, unsustainable inflation and debt creation, wiping the slate clean — this time with a decided focus on digital surveillance, control, and unmitigated printing powers, using the disease outbreak as a convenient scapegoat. But is there any substance to such conspiracy talk?

Disney World Economics: How Coronavirus Could Be Used to Justify a Global Financial Reset

In the interest of avoiding tinfoil hat, baseless assertions when looking to the future here, it’s best to understand what has already been established on the world economic scene prior to the outbreak of COVID-19. A few major facts to bear in mind:

The global economy was running out of options for dealing with recession, as major economies headed closer and closer to, or further beyond, the zero bound, engaged in massive stimulus, and continued to create artificial credit bubbles.

Central Bank Digital Currencies (CBDCs) were actively being developed and researched, and China’s version — the digital Yuan — is already complete and in testing phases. Financial policymakers around the globe have been noting the utility these could have for forcing monetary policy on individuals, where physical cash enables them to evade such things as negative interest rates in banks.

Fewer and fewer people were expressing confidence in state authorities and their respective central banks. Political unrest — much of which was concerned with economic policy — was manifested in unprecedented fashion via demonstrations worldwide. Decentralized cryptocurrencies like bitcoin were increasingly viewed favorably by a significant segment in the context of centralized corruption, worldwide bailouts, and distrust of leaders, even on mainstream media outlets.

Disney World Economics: How Coronavirus Could Be Used to Justify a Global Financial Reset
Popular crypto influencer and Youtuber Ivan on Tech speculates about coronavirus being a scapegoat for the irresponsible behaviors of regulators, who will remain in power, regardless.

With the above in mind, it is interesting that the outbreak of this novel coronavirus has resulted in a worldwide panic drowning out these factors, prompting even the doubtful to once again encourage their peers to trust the state for leadership. This is not to assert that the virus isn’t a threat, or that regulators “planned” its release. It is simply to note that politicians and financial planners have historically leveraged such situations to implement new — and often highly intrusive and unethical — policy, and openly admit to doing so. At times, even desiring disaster. With this knowledge at the forefront, it becomes understandable some are connecting the dots.

Leveraging Catastrophe: Nothing New Under the Sun

At the outset of the last major financial downturn in 2008, then Chief of Staff for President Elect Barack Obama, Rahm Emanuel, stated at the Wall Street Journal CEO Council in Washington, D.C.:

You never want a serious crisis to go to waste. And what I mean by that, it’s an opportunity to do things that you think you could not do before.

Emanuel went on to note that in virtually every area of governance, major crisis provides opportunity. Opportunity for regulators to make bold moves in implementing otherwise controversial policy. “This is an opportunity, what used to be long-term problems, be they in the health area, energy area, education area, fiscal area, tax area, regulatory reform area — things that we had postponed too long that were long-term are now immediate and must be dealt with.

This crisis provides the opportunity for us … to do things that you could not do before.

Much like the panicked speculations of today, Emanuel’s prescription was not merely for one area of reform, but a system-wide overhaul. And much like today, the choice as to what policies are implemented does not involve the common individual. The “opportunity for us” to do things is just that. The “us” does not include you. Central bankers and financial planners concur, and have been wanting to take various economic measures for decades. Now could be their newest and biggest chance to date.

Disney World Economics: How Coronavirus Could Be Used to Justify a Global Financial Reset

A paper published by the European Central Bank in January notes the potential benefits, perceived by some, of government-approved CBDCs:

By allowing to overcome the zero-lower bound (‘ZLB’) and therefore freeing negative interest rate policies (‘NIRP’) of its current constraints, a world with only digital central bank money would allow for – according to this view – strong monetary stimulus in a sharp recession and/or financial crisis.

“This could not only avoid recession, unemployment, and/or deflation but also the need to take recourse to non-standard monetary policy measures which have more negative side effects than NIRP.”

The publication also details there is an existing argument for CBDCs to make drops of “helicopter money” to the populace much easier. Further, “A number of authors have argued that CBDC widens the range of options for monetary policy, essentially since variable interest rates on CBDC would provide for a new, non-redundant monetary policy instrument that would allow improving the overall effectiveness of monetary policy.” In other words, no more hiding from negative interest rates by taking your money out of banks. When the cash is digital, and centrally controlled, interest rates can be applied directly to the supply.

Some examples of recent quotes, prior to the COVID-19 crisis, from policy makers and economists may present the picture more clearly:

At the current stage, the central bank’s major goal of issuing digital currency is to replace the physical cash.

If everyone is holding cash, negative interest rates become useless.

-former People’s Bank of China (PBOC) governor, Zhou Xiaochuan

Let’s tax cash holdings, simple as that: we’re back to monetary policy as usual; people are disincentivised to be holding large lumps of physical cash; they are having to think harder about putting money to work.

-New Zealand Reserve Bank Governor, Adrian Orr

My personal conviction is that given the developments we are seeing, not so much in the bitcoin segment, but in the stablecoins projects … we had better be ahead of the curve if that happens. Because there is clearly a demand out there that we have to respond to.

-European Central Bank (ECB) President, Christine Lagarde

Since the 2008 crisis, we did not solve a single problem. We lowered the interest rates to a record low level and we flooded the world with cheap money. The central banks created one financial bubble after the other and now we have the biggest bubble in history.

Trillions of dollars spent to solve the problem just created a new mess, a bigger bubble and when this one bursts, 2008 will look like a kindergarten. This one will be epic.

… central banks will issue CBDCs and they will control us all, seize our freedom and wealth. They need negative interest rates and they can only achieve that when the fiat money moves into the digital world and they abolish paper money.

-German-based author and finance strategy consultant, Marc Friedrich

Even so-called conservative U.S. President Donald Trump has been clamoring for negative rates as the Federal Reserve injects new money and credit into the American economy recklessly. Trump said in January: “Meaning they [people in negative rate countries] get paid to borrow money, something that I could get used to very quickly. Love that. Gotta pay back your loan? No. How much am I getting?” This is the level of fiscal insanity that now qualifies as leadership.

Disney World Economics: How Coronavirus Could Be Used to Justify a Global Financial Reset

The Bubble Is Bursting Right Now, Worldwide — Why Isn’t Bitcoin Being Adopted?

There is a lot to take in. A deluge, really. The world populace is overwhelmed with understandable fear and panic, and a tsunami of conflicting information from governments and media. The virus is the new plague, but tests are not being made available in many places. Trust the official stats and follow political leaders, but these stats are incomplete without tests, and some political leaders, like Donald Trump in the U.S., don’t even get tested. China’s censored medical media is of course not to be trusted, either.

Flights, public schools and large gatherings are banned, cancelled or closed. No NBA, no SXSW, no Disney, overwhelmed hospitals. Global markets are in sharp and rapid decline, plunging past historic lows, with the ripple effect from so many major industries grinding to a halt sure to be felt much more painfully in months to come. Italy is suspending mortgage payments. Ireland offering pay for those out of work sick. To compound the disaster, martial law — as being experienced in China — appears to be on the horizon, even for Western countries.

Disney World Economics: How Coronavirus Could Be Used to Justify a Global Financial Reset
https://www.seattletimes.com/seattle-news/health/seattle-area-official-outlines-potential-next-steps-in-coronavirus-response-including-cancellation-of-events

Crypto is also suffering, not looking currently to be the store of value its proponents had claimed. This is not to say bitcoin isn’t a more sound money than government fiat, though. There is a reason policymakers are not promoting bitcoin and crypto as sound means to salvage the world economy now. That would make them pay, and they’d have to feel the very real pain from the death of the monstrous bubble they’ve created, via endless printing and debt creation for centuries. As the International Monetary Fund blog maintained in February:

Severe recessions have historically required 3–6 percentage points cut in policy rates. If another crisis happens, few countries would have that kind of room for monetary policy to respond.

In short, the only way to beat this thing is to erase the debt record. Down the memory hole. But they still depend on you and I to support them, as these “leaders” are generally not producers, but parasitic in nature. Bitcoin makes this difficult for them. When you own the private keys to some bitcoin, you don’t have to pay anybody. This is why the stuff has been smeared as criminal over and over again, and CBDCs will likely be ushered in. For the rulers of the world, when the game isn’t going their way, they don’t try to improve — they just push reset.

Do you think the pandemic signals a global financial reset? Why or why not? Let us know in the comments section below.

Op-ed disclaimer: This is an Op-ed article. The opinions expressed in this article are the author’s own. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the Op-ed article. Readers should do their own due diligence before taking any actions related to the content. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any information in this Op-ed article.


Images courtesy of Shutterstock, Adriana Iacob, fair use.


Want to create your own secure cold storage paper wallet? Check our tools section. You can also enjoy the easiest way to buy Bitcoin online with us. Download your free Bitcoin wallet and head to our Purchase Bitcoin page where you can buy BCH and BTC securely.

The post Disney World Economics: How Coronavirus Could Be Used to Justify a Global Financial Reset appeared first on Bitcoin News.

Source: Bitcoin News