Day: February 1, 2018

Regulators want cryptocurrency exchanges to know who their customers are – but that requires these companies to collect very sensitive information.

Executives of two bitcoin futures exchanges defended their practices as not unduly risky to the Commodity Futures Committee as it considers tighter scrutiny of cryptocurrency derivatives.

Advocates argue for self-regulation

As reported by Forbes CboE Global Markets President and Chief Operating Officer Chris Concannon contended that before launching  Bitcoin futures in December they had extensive contact with Commodity Futures Trading Commission (CFTC) staff, futures commission merchants, and other market participants.

Kathleen Cronin General Counsel for the CME Group argued CME’s rigorous efforts in developing its Bitcoin Futures.

“We are quite comfortable with the risk profile. It is no different from other contracts that have exhibited volatility”

These comments were made at a CFTC advisory group session convened to analyze the possibility of manipulating cryptocurrency futures and ensuring an adequate margin requirement.

CFTC chair Christopher Giancarlo has voiced his concern that exchanges bringing their cryptocurrency futures to market without formal CFTC approval may pose potential dangers to investors.

He went on to say that these potential dangers may need to be measured by the exchanges in conjunction with CFTC staff.

CFTC concerned over futures manipulation

Giancarlo’s fellow Republican Commissioner Brian Quintenz said self-certification is going along well for Bitcoin futures and that the introduction of new cryptocurrency derivatives should not be affected by the political considerations of its regulators.

Arguing for stricter controls Democratic Commissioner Rostin Behnam said that CFTC approval should be required because of the potential high risk of cryptocurrency products to investors.

Kari Larsen who acts as an attorney for multiple virtual currency futures exchanges called the derivatives an important measure for investors hedging risk since many virtual currencies are volatile.

The CFTC has taken up the mantle of regulating potential cryptocurrency manipulation while the Securities and Exchange Commision takes a back seat. Both Giancarlo and SEC Chairman Jay Clayton will be testifying on virtual currencies before the Senate Banking Committee Tuesday.

The debate over Bitcoin futures regulation will most likely continue on in America for some time while it seems like the way has been cleared in Japan with Tokyo Financial Exchange set to launch their Bitcoin futures products early this year.

Not surprising that Japan may lead the way for the cryptocurrency futures market as it is still one of the few countries to recognize Bitcoin as legal tender.

The post Creators of Bitcoin Futures Defend Practices Against Regulation appeared first on NewsBTC.

Properly designed loans, swaps and forward contracts offer a way to lock in profits now and defer tax until later #EXPERT_TAKE

It has been a long time coming, but the Bitcoin price has dropped firmly below US$10,000 again. Many people thought we were out of the woods last week, but the real price correction had yet to take place. As a result, we are now looking at a Bitcoin price of just US$9,500, and it seems the bottom is not yet in sight. It would not be unlikely to see the Bitcoin price find its first real support well below US$8,500.

The Expected Bitcoin Price dip has Arrived

No one takes pleasure in seeing the Bitcoin price drop below US$10,000 right now. No one, that is, other than a few financial “experts” who will gladly tell the world how the Bitcoin bubble has finally burst. Everyone has to agree the Bitcoin price gains in 2017 were rather spectacular and unsustainable in the long run. It was a sign of what the future may hold for Bitcoin, but for now, we will have to endure a steep and lengthy market correction.

A few weeks ago, we noted that the Bitcoin price would likely drop to US$9,000 before we saw upward momentum again. At the time, it seemed that might not happen after all, but today, it suddenly looks like a very realistic target. The Bitcoin price already dipped below US$9,550, and there is no real support on any exchange to push the price back up over US$10,000 anytime soon. It is an unfortunate turn of events, but anyone with a working brain saw this coming from miles away.

With the Bitcoin price dropping hard, it is evident there will be a strong focus on the Ethereum price as well. Surprisingly, Ethereum has seemed to hold its own quite well, whereas the Bitcoin price is down by 7.39% in the past 24 hours. If this trend keeps up, it is not unlikely that Ethereum’s market cap will inch closer to that of Bitcoin and potentially overtake it in the next few weeks. The “flippening” may happen after all, although it is still too early to say for sure.

With US$7.563 billion in 24-hour trading volume, Bitcoin is still the world’s most traded cryptocurrency. Its volume is almost twice as high as Ethereum’s, and no other currency comes even close to US$1 billion right now. We have seen decreasing trading volume materialize for over a week now, and it seems the bearish sentiment is to blame for this development. Bitcoin’s trading volume is still solid, though, but with so much bearish pressure, the Bitcoin price will continue to dwindle unless a miracle happens.

Unsurprisingly, the largest Bitcoin trading market right now is none other than OKEX. In terms of 24-hour volume, the company has a clear lead over Bitfinex. OKEX is in the top three with its ETH/BTC pair as well, which is rather interesting. None of the other usual suspects – bitFlyer, GDAX, and even Bitstamp – are anywhere close to making a dent. It is evident the amount of fresh capital entering the cryptocurrency ecosystem is drying up, which will help push the Bitcoin price down even further in the coming hours. Kraken is already trading BTC at US$9,260.

For the time being, all cryptocurrency traders will have to endure this onslaught. It is a healthy correction when looking at the bigger picture, but that doesn’t mean we have to like it. Rest assured the Bitcoin price could easily drop to US$8,500 or potentially even lower in the coming hours. Compared to a year ago, things are still looking exceptionally bullish, which is something everyone needs to keep in mind.

A new bad day for investors as Bitcoin leads altcoins down almost one-fifth following FUD in mainstream headlines #NEWS

Bitcoin has seen huge loses since early January, and may drop below $9,000 if the bulls don’t take charge.

There is an obvious correlation between gaming and the blockchain industry. Transforming the gaming world will not happen overnight. However, we see more and more efforts to integrate blockchain into gaming through many different methods.

One of the most popular ventures is by using blockchain-based currency to buy, sell, or trade in-game items. The lines between in-game commerce and real-world commerce are blurring as we speak.

There are numerous ways blockchain technology can affect the gaming industry in the future. Using blockchain for trading in-game assets is one popular venture. There is also an option to integrate cryptocurrencies into existing games. Especially when it comes to online games, this latter option is well worth exploring for the developers. It remains to be seen if any major games will ever integrate existing cryptocurrencies. It seems more likely they will build their own digital assets to facilitate such changes.

Blockchain can Transform the Gaming Industry

It is also possible to use blockchain as a way to store gaming-related data. Since the ledger is immutable and transparent, there can be no arguments over how things evolved. For simple games, this makes a lot of sense. For bigger projects, this solution can be used to successfully store gameplay data associated with player accounts, for example. It prevents the need to store everything on centralized servers. Moreover, with a blockchain, multiple copies of this important data will exist at all times.

On the collaboration front, the opportunities should not be overlooked either. This technology can effectively spawn a whole new generation of game masters. For some people, it can even turn into a full-time job. Creating engaging stories and getting paid for doing so through a blockchain-based currency are just some of the possibilities. The world of tabletop gaming can benefit a lot from this technology. None of these changes will happen overnight, but it’s always good to keep the options on the table.

One thing the blockchain does well is letting players keep any rewards they earn. Rather than using a centralized service, your data will be stored forever. It is also the user’s prerogative to spend and use these earnings as they see fit. With more and more people pursuing a professional gaming career, it is evident the blockchain will play a role of importance. The number of opportunities for blockchain-related gaming is nearly infinite. The only real limitation is people’s own imagination and desire for success.

The post Gaming Industry to Benefit from Future Blockchain Developments appeared first on NewsBTC.

This Wednesday Jack Dorsey, the CEO of the payment processing firm Square, revealed the company’s Cash App users can now purchase and sell bitcoin. Back in November the Square Cash App’s bitcoin functionality was only available to select individuals for experimentation. Now, most of the app’s users can access the ability to buy and sell the digital currency using the platform.

Also read: Japan’s DMM Bitcoin Exchange Opens for Business With 7 Cryptocurrencies

The Payment Company Square Says Satoshi’s Vision Is Having an Impact All Around the World

The merchant services aggregator and mobile payment company Square has announced its bitcoin feature is now available for most of its Cash App users. The news follows the company’s testing last November when it allowed select users to use the feature that enables individuals the ability to purchase BTC. Additionally, the firm’s CEO Jack Dorsey promoted the new app with a colorful blog post about bitcoin, and it’s creator Satoshi Nakamoto. The story that describes the innovative technology concludes by saying:

That’s a lot to imagine, isn’t it? One thing is clear though: Satoshi’s vision is having an impact all around the world.

Square says the Cash App offers users the ability to send and receive BTC between family and friends. The company also emphasizes that bitcoin’s prices can be “volatile and unpredictable” and it asks its users to make “wise financial decisions.”

“We’ve made it just as easy to buy and sell BTC straight from your Cash App balance — Unlike other apps, most of our buys and sells happen in seconds, and you can even spend your proceeds from a free Visa debit card,” explains Square’s announcement.

Greater Financial Access for All

Jack Dorsey who also runs the company Twitter explains to his followers on the social media platform that instant BTC buying is now available.  

“And selling, if you don’t want to ‘hodl’ —  Bitcoin is now available to most Cash App customers,” Dorsey explains.

We support bitcoin because we see it as a long-term path towards greater financial access for all — This is a small step.

Right now there are only four states that cannot access the bitcoin services on Square’s Cash App which include Hawaii, New York, Wyoming, and Georgia. Due to harsher cryptocurrency regulations, those states will not see the bitcoin feature available for the time being.

What do you think about Square’s Cash App and Jack Dorsey’s recent statements? Let us know what you think about this story in the comments below.

Images via Pixabay, Square, and AP/2015August 

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The post Mobile Payment Company Square Launches In-app Bitcoin Buy/Sell Option appeared first on Bitcoin News.