Day: February 6, 2018

Sorting the bots from the bods: a startup tech company to save digital advertisers billions of dollars. #SPONSORED

The UAE Securities and Commodities Authority warns investors about major risks of ICOs, pointing out lack of regulations, misleading deals and low awareness of potential costs and gains. #NEWS

What is ‘Cryptocurrency’ And Where Did It Come From?

In its barest form, cryptocurrency is a digital medium of exchange, designed to be purchased, exchanged, and utilized for a variety of services. It is an intangible form of currency, having no physical attributes other than the computer network or smartphone it sits on, connected to thousands of computers globally.

Dating back to World War II, the need for secure communication and exchanges was essential. Thus, cryptography was born—the process of converting legible information into an enigmatic code, transferring messages securely to and from various, unknown sources. Cryptography has since evolved into a digital age, infiltrating computers and smartphones on a global scale.

Cryptocurrency operates similar to P2P networks like Napster and Limewire; but instead, throw in money. Like these file sharing programs, cryptocurrency is unregulated and user dominated. One of the reasons why it’s taking so much heat politically and even, legally.

How Does It Work And What Can You Do With It?

 The Rules. 

First, no transaction between users are the same. Each transaction contains a private key, held solely by the seller, and a public key, which is transmitted to the purchaser. The private key is the last step in authorizing a transaction being executed. If the holder loses the key, tough luck. Nobody else has it. Hence the intense security/uncrackable code.

Second, all transactions are recorded in public ledger, called a “blockchain.” Like a checkbook, cryptocurrency also has its own log of transactions by the amount and destination. However, the parties to the transaction(s), remain completely anonymous.

True Democracy.

Third, it’s completely user-dominated. It’s decentralized, with no third party regulation or governance, at least right now. Unlike our country’s financial institutions, in the world of digital currency, there is a direct correlation between user activity and the return on “investment.” This is one of the main reasons this has been the subject of political and legal talk the past year.

Endless Potential.

Lastly, the potential for how this currency can be utilized is endless. From buying goods and services to investing and selling interests, the spectrum continues to grow, daily.

The head of the Bank for International Settlements has blasted bitcoin as “a bubble,” “a Ponzi scheme” and an “environmental disaster.”

Bitcoin and other cryptocurrencies can make a rather positive impact when it comes to charity. So far, we have seen several initiatives focus on philanthropy, with varying degrees of success. It seems a new player has entered the market. The Pineapple Fund is not a venture most people are familiar with, yet they claim to have donated US$86 million worth of Bitcoin to charity so far. It is an interesting statement which warrants a closer look at this project.

The Pineapple Fund is Making an Impact

Even though the Pineapple Fund is a relatively unknown project, their focus is in the right place. By using cryptocurrency donations to help charities around the world, the team can bring some positive attention to both Bitcoin and the various altcoins of the world. After all, cryptocurrencies are often associated with illegal activity, ranging from drugs to terrorism. Some positive PR could do wonders for Bitcoin and its consorts.

According to the Pineapple Fund’s website, the group has donated US$86 million worth of Bitcoin to various charities. That is a rather bold claim for a project few people have heard of. Considering that this entity was established in December of 2017 thanks to an anonymous donor, it seems a lot of progress has been made in a short period of time. Their Bitcoin address held over 1,816 BTC at the time of writing, worth over US$14 million. However, they have received a total of 5,132 BTC to date, which indicates there is a genuine interest in the Pineapple Fund.

Their objective is to give away US$86 million worth of Bitcoin, and things are certainly off to a good start. To date, over US$38.8 million has been donated to several dozen charitable organizations, including the Water Project, the Electronic Frontier Foundation, BitGive, OpenBSD, the Internet Archive, and Quill. With all of the listed organizations receiving at least US$50,000, it is evident that a lot of good can be done with Bitcoin in the years to come.

It is rather remarkable to note that the Pineapple Fund has no intention of focusing on publicity in any official capacity. The person responsible for setting up this charitable venture has not made his or her identity public, nor does he or she plan to do so in the future. Remaining anonymous is not uncommon in the world of charity, but it raises some questions when Bitcoin or other cryptocurrencies are involved. So far, the Pineapple Fund is transparent in every way that matters, though, which is all anyone can ask for.

Some people may be wondering where the group’s name came from exactly. It partially has to do with the original donor, who is known as “Pine”. It also seems there is a genuine love for pineapples, so naming this fund after the delicious fruit makes a lot of sense. It is a name which certainly has a good marketing appeal to it, even though no one would immediately associate it with Bitcoin or another cryptocurrency. Perhaps that is a good thing, as the financial world is rather cryptocurrency-averse these days.

It is evident there is still a lot of work ahead for the Pineapple Fund. With over 40 different organizations and projects supported to date, this fund is doing its part to put Bitcoin in a positive light. If this trend keeps up, they will be easily able to reach their US$86 million goal and spread the Bitcoin love to those in need. The Pineapple Fund is certainly worth keeping an eye on moving forward.

Coinbase to add SegWit scalability upgrade for BTC sending and receiving in the next few weeks. #NEWS

A major U.S. freight railroad network operator owned by Warren Buffet’s Berkshire Hathaway has joined the Blockchain in Transportation Alliance.

A growing number of banks have begun opposing the purchase and sale of Bitcoin and other cryptocurrencies. This is especially true when it comes to payment cards, although it also affects bank transfer-related transactions. Lloyds Banking Group is the latest financial institution to take a rather severe approach in this regard. It now forbids all of its customers from purchasing Bitcoin with its credit cards. It is another worrisome development, albeit one that will hardly surprise anyone at this point.

Lloyds Banking Group Rejects Bitcoin Purchases

No one can deny cryptocurrencies have become a rather popular commodity on a global scale. Especially due to the 2017 crazy bull run, a lot of people are now looking at ways to purchase Bitcoin and similar currencies. That process can usually be completed using various payment methods, including wire transfers and payment cards. Although the number of platforms accepting credit and debit card payments is still small, there is genuine interest from consumers in exploring this option.

From a consumer point of view, purchasing Bitcoin or other cryptocurrencies with a credit card makes a lot of sense. It’s a convenient process which can be completed in a matter of minutes. Even though payment processors carry significant risk in this regard, the credit card payment option is slowly becoming more popular. It seems this has irked quite a few banks and other financial institutions around the world, though.

The latest financial institution to take offense is Lloyds Banking Group. More specifically, they no longer allow any of their customers to purchase Bitcoin with a Lloyds-issued payment card. That in itself is not entirely surprising at this stage, as a lot of banks are seemingly threatened by Bitcoin and other cryptocurrencies right now.

According to company officials, the new ban went into effect yesterday. Moreover, it also applies to customers of Bank of Scotland, Halifax, and MBNA. Since this banking group has quite a few institutions under its control, it is only normal that it will enforce the same rules upon every single one of them. Considering that this decision affects both credit and debit cards issued by all of these institutions, it is to be expected that this decision will have a big effect on the market.

The main reason for this ban is that Lloyds Banking Group is concerned about its customers buying Bitcoin for profit. If the value of Bitcoin tanks like it is doing now, customers will incur massive debts in the process. If the debts are not paid back in full, the banking group may be forced to foot the bill, which is not an ideal situation for any party involved. As a result, this decision makes a lot of sense from the group’s perspective, even though its customers may not be too happy about it, for obvious reasons.

With the Bitcoin price suffering from massive volatility in the past few weeks, decisions like these will become more prevalent. After all, financial institutions want to oppose Bitcoin in any way possible. By declaring they act in the best financial interest of their customers, such decisions are made with relative ease. Whether this decision will ever be reversed has yet to be determined, but it is certainly a possibility. 

Kryptowährungen weiterhin legal in Singapur. #NEWS

A senior official from Taiwan’s executive branch has cautioned on the potential impact of cryptocurrencies on the island’s financial stability.

There seems to be a fair amount of uncertainty and misinformation regarding India’s stance on Bitcoin and cryptocurrencies. More specifically, a few news outlets have reported that the country would ban Bitcoin altogether. There’s no evidence to back up such claims right now. Moreover, the secretary of the country’s Department of Economic Affairs claims there will not be any regulation for at least another two months. The general outlook is rather positive, rather than negative.

India has no Reason to ban Cryptocurrency

It always makes for some good headlines to claim that another country will probably ban Bitcoin. Simply because they are actively working on regulating this market does not mean a ban is the logical outcome. This is especially true when it comes to India, as a ban seems rather unlikely at this stage. As it happens, there is a plan in motion to bring positive cryptocurrency regulation to India in the next few months. For now, it remains unclear what that means exactly, but it seems a ban is almost completely out of the question.

Subhash Chandra Garg, the secretary of India’s Department of Economic Affairs, has confirmed as much. In a recent interview, he explained that his agency is still in the process of examining potential regulatory measures. These findings will be presented to the government over the next two months. As one would expect, there are quite a few different factors which will all need to be taken into careful consideration. All of this further confirms that the Indian government wants to do its job right, rather than take a harmful approach.

It is true that India’s finance minister is not a big fan of cryptocurrency. He certainly doesn’t want Bitcoin and altcoins to be used in any illegal capacity. Unfortunately, Bitcoin and a few other cryptocurrencies have mainly made a name for themselves in these illegitimate schemes. Since no one can issue or control cryptocurrency, it is pretty difficult to regulate this industry as a whole. It seems India’s government is leaning toward labeling Bitcoin as an asset, which would allow for more specific regulatory measures in the future.

Additionally, there is no chance the cryptocurrency asset class will ever become a part of India’s financial system. The government will not make Bitcoin or altcoins legal tender in an official capacity, but they have no intention of preventing people from accessing them either. Instead, they aim to make consumers understand what they are getting themselves into exactly. For now, the government would prefer to educate and warn, rather than outright ban, this new form of money.

It is evident that plenty of governments around the world would love to regulate Bitcoin but will have a hard time doing so. As no one can authorize or control the issuance and use of these currencies, it will be rather interesting to see what the future holds in this regard. Not making Bitcoin legal tender is something most people had expected at this stage. However, the government’s willingness to turn it into an “asset class” is a rather positive development. Do keep in mind none of this has officially been confirmed.

For now, all we can do is wait and see what else India’s regulators come up with. There is some clear Bitcoin-related opposition within the government’s ranks, but without majority support, no decisions will be made. Any attempt to regulate cryptocurrency is positive by default, at least when an open-minded approach is maintained at all times. So far, it seems India is keeping a rather open mind.