Since Bitcoin became the first decentralized cryptocurrency in 2009, digital currencies have been discussed a lot in the media. Much of that discussion has been about the volatile nature of their price. The recent burst of industry growth has not gone unnoticed, and many farsighted investors now see Bitcoin and other currencies as excellent opportunities to make big returns. Many investors, however, find that that their lack of technical knowledge can inhibit their ride to the top.
This is partly because cryptocurrencies don’t have central banks regulating their value, and partly because the global economy doesn’t yet price its denomination. Much of this cryptocurrency volatility is the result of cyclical ‘subsequent’ consequences flowing on from what happens in the traditional finance sector. The internal causes within the uncharted territory of the network is anyone’s guess (but this article is to help you get an idea).
In the brave new world of cryptocurrency, previous performance is not necessarily indicative of future performance. Because the technology is so new, the performance data that due diligence normally requires does not exist in the same way it does for other markets and company stocks. For now, cryptocurrency markets remain speculative, which means investors must avoid emotional trading decisions, and accept their proclivity for risk. Part one and two of this series of articles looked at how money derives its value, and why some digital currencies become worth more than others. This installment of my investment series will help you improve your odds of investment success in cryptocurrency and its related markets.
Whenever I hear people talking about cryptocurrencies, much of the conversation always seems to focus on the unsustainability of fiat currency. The common assumption is that the word’s fiat currency system is eventually going to collapse. However, it’s rare to find anyone talking about how that will happen. What issues will drive that collapse, and – perhaps more importantly – how will we be able to recognize it when it’s happening? Because the answers to those questions seem to be so complex, most people don’t ever bother to address them at all. The truth is, though, that the real issues are simple to understand once they’re laid out on the table. This article will attempt to explain some of these complex financial matters in simpler terms to facilitate a greater understanding of the problem at hand.
The Bitcoin price earlier broke to a new all-time high, reaching $2911 USD before falling at press time to 2880, according to CoinDesk’s Bitcoin Price Index — a rise from it’s opening of $2569.23 at the beginning of the day, June 5th.
Recent reports suggest that the People’s Bank of China (PBOC) may be considering a move to enact a regulatory framework for Initial Coin Offerings (ICOs). Chinese cryptocurrency news source cnLedger posted the news on Friday, noting that Chinese central bank Digital Currency Research Institute head Yao Quian addressed the issue while discussing digital currencies and related technologies. As cnLedger reported,
With demand for Bitcoin and other digital currencies continuing to increase, it seems as though each day brings news of some new milestone in the cryptocurrency universe. Bitcoin exchange Coinbase could soon achieve its own milestone in the coming weeks, as the company is reportedly in negotiations with investors to raise capital that could result in the exchange eventually being valued at a billion dollars or more.
In remarks delivered at the St. Petersburg International Economic Forum recently, Russian Central Bank Deputy Governor Olga Skorobogatova suggested that the world will eventually see nations create their own digital currencies. She also seemed to confirm that the tests required to prove the viability of such currencies had already been completed using platforms like the Hyperledger and Masterchain.
After more than three months of uncertainty, cryptocurrency traders with holdings on China’s three largest Bitcoin exchanges received welcome news this week when they learned that they will soon be able to once again withdraw their digital currency. That news ends the suspension of withdrawal activity that began in February amid central bank concerns about the exchanges’ compliance with AML/KYC requirements.
Did you know that digital currency is already providing a degree of monetary sovereignty for countries whose governments have abandoned their nation currencies – like Greece and other countries in Europe where citizens are forced to use the Euro? There is no denying that Bitcoin can fulfill this function up to a certain point. However, it’s important to consider whether the consensus of direction required for large-scale mass adoption is possible without a more centralized leadership model. After all, where money is concerned, individuals without a common set of interests will always look out for their own interests first and foremost. Strong and united leadership can not only aid in protecting the value of any cryptocurrency; it can also help to unite large groups of individuals and provide them with the common interests and long-term goals needed to help stabilize that currency’s value.
Chinese Bitcoin exchange Huobi will make Ethereum (ETH) trading available to its customers, effective May 31 2017. According to reports, the move was prompted by numerous requests from traders. At this point, however, it is unclear whether customers will be able to trade and withdraw the digital currency from the exchange, or whether the change will simply allow them to purchase and hold Ethereum.
According to a report in the Times of India, MPs at Thursday’s Parliamentary Standing Committee of Finance meeting had serious questions about Bitcoin’s potential use as a vehicle for terror financing and criminal activities. While many of their questions had been raised by individual members in recent months, this meeting saw concerns raised by politicians representing a diverse range of political views.
The Canadian central bank and its Project Jasper partners revealed the results of their experiment with distributed ledger technology (DLT) in a press release published on Thursday and a report posted on the central bank’s website. The project’s conclusions suggest that the technology still has obstacles to overcome before it can reliably replace the existing national intrabank payment settlement system.
Fidelity Investments CEO Abigail Johnson has made no secret of her love of technology, and she’s certainly not shy about expressing her appreciation for Bitcoin, the blockchain, and other aspects of the digital currency universe. In a speech to the attendees of the Consensus 2017 conference on Tuesday, she doubled down on that support for digital currency technology, and announced that Fidelity will soon provide its customers with the ability to track their cryptocurrency holdings on the Fidelity website.
DNotes has announced that its upcoming DNotes 2.0 upgrade will include innovative features and applications relating to smart contracts, blockchain technologies, mobile applications, and global payments systems. The upgrade is expected to launch later in 2017, and the company is unveiling a new Bitcointalk Forum in preparation for the event.
Earlier this month, the largest bank in Dubai, Emirates NBD, unveiled plans to integrate blockchain technology into its checks as it launched an initiative that has been referred to as “Cheque Chain.” The project involves adding printed Quick Response (QR) codes to the bank’s checks, with each code eventually registered on the Emirates NBD blockchain to strengthen authenticity and reduce fraud. As the bank’s Group Chief Operating Officer Abdulla Qassem observed at the time:
The ransomware attack that began on Friday may have been slowed for the moment, but there are indications that another similar attack could occur as soon as Monday morning, according to Europol Director Rob Wainwright. In comments to the BBC, Wainwright confirmed that the cyberattack spread to 150 countries, victimizing thousands of people and firms.
An official from the Palestine Monetary Authority recently told Reuters that there are plans for the Palestinian government to launch its own digital currency within the next five years. According to the head of the PMA, the introduction of such a currency could help to provide Palestinians with greater protection from Israeli interference in Palestine’s economy.
DNotes Launches New Website – Aims to Bridge the Gap Between the Centralized and the Decentralized World.
After a period of relative silence as the DNotes team migrated from ecosystem building to technology development, the company recently launched its new website – showcasing one of its many initiatives to bridge the gap between the centralized and the decentralized world.
The Australian government’s 2017-18 Budget was released on Tuesday, and cryptocurrency enthusiasts in the country have at least one provision that should put a smile on their faces. After more than a year of waiting for the government’s promised GST tax relief to materialize, Bitcoin users will no longer need to worry about the existing double tax on the digital currency. The government’s new policy as of July 1, 2017 will see digital currency taxed in the same way that more traditional fiat currencies are treated.
Japanese exchange Coincheck is reportedly set to begin offering its Bitcoin customers interest-paying accounts. The offering will be a first for the country, and will enable Bitcoin holders to deposit their digital currency in fixed deposit accounts that earn interest at one of four different rates ranging from one to five percent.
In recent months, many major firms have revealed that they are testing various blockchain solutions. Reuters recently reported that two major United States credit agencies – TransUnion and Equifax – are following suit. The two credit reporting giants reportedly told Reuters that they are currently participating in trials for a Canadian blockchain network focused on identity management and secure consumer data sharing online.