Day: May 8, 2018

Comments made by BKCM founder Brian Kelly last week, when Bitcoin officially crossed the USD 10,000 line before its subsequent drop, suggested that there were three clear factors that would determine the coin’s next big rally, according to CCN.

The Goldman Sachs factor

Kelly sees the next support levels after USD 10,000 as USD 12,000 and USD 14,000. One factor he cites as being significant in securing this charge, was last week’s announcement by Goldman Sachs confirming the go-ahead to invest customers funds in Bitcoin through a new cryptocurrency trading desk; a decision by the bank largely provoked by customer demand.

Jon Matonis, Bitcoin Foundation founder and Visa executive, is animated with such announcements by major financial institutions such as Goldman Sachs, commenting:

“I think it’s fabulous that they’re getting into it because it brings in new liquidity. They’re going to develop futures markets, options markets — I even think you’re going to start to see interest-rate markets around Bitcoin.”

Matonis sees the move as one which will allow the cryptocurrency market to mature through more public trading of bitcoin. The New York Times reported yesterday that Intercontinental Exchange, owner of the New York Stock Exchange (NYSE), is also considering allowing customers to buy and hold Bitcoin, which would become the second Wall Street financial institution to consider such a step within weeks.

Defining Bitcoin

Another factor, according to Kelly, is the clarity now being offered by the SEC regarding the description of digital currencies. SEC chairman’s Jay Clayton’s recent suggestion that if Bitcoin is a medium of exchange it, can’t be deemed as a security due to its use as a currency which he sees as a positive mover for Bitcoin. However, Aaron Wright, director of blockchain project Cardozo, recently suggested that there is “superficial appeal” to treating Bitcoin and related tokens as securities, as many of them were still seen as “speculative assets”.

New York Blockchain Week

Another push to Bitcoin’s potential pricing fortunes, according to Kelly, is this month’s Blockchain Week being held in New York. Partnering the New York City Economic Development Corporation in the project, Kevin Worth, CEO of Coindesk, comments about the week’s headline event, ‘Consensus’.

“Consensus is more than just a conference. It’s the largest and must-attend gathering of everyone involved in our rapidly growing ecosystem. We’re proud to partner with companies that continue to innovate and actively work toward taking their projects live.”

 

*Follow BitcoinNews.com on Twitter at https://twitter.com/bitcoinnewscom*

*Telegram Alerts from BitcoinNews.com at https://t.me/bconews*

The post Brian Kelly Still Bullish About Bitcoin Climbing appeared first on BitcoinNews.com.

Representatives from the Department of Homeland Security, Maersk and UPS described how blockchain can be used in supply chain in a hearing Tuesday.

The Colorado Senate has passed a bill requiring state departments to consider blockchain for data protection and cyber security

This promoted article originally appeared on Bitcoin Magazine.

In attempts to prevent another Coincheck-like heist, Japan’s Financial Services Agency (FSA) has unveiled stricter standards for cryptocurrency exchanges that register with the financial watchdog.

FSA: Stricter Guidelines for Exchanges

Unlike neighboring China, the Japanese government has worked to grow the nascent cryptocurrency industry since it began recognizing Bitcoin and other digital currencies as a valid form of payment in April of 2017. In another step towards legitimization, it is now focusing on improving compliance and establishing measures to protect customer assets.

On top of thorough documentation reviews, the FSA explains that the new registration process will include preliminary visits to exchanges to help ascertain how they operate. According to Nikkei Asian Review, the exchanges that register with the agency will have to follow five new criteria.

The first of the five criteria relates to system management. The FSA will ask that exchanges do not store digital currency on internet-connected computers and will also require multiple passwords for currency transfers. This means that funds will have to be stored using offline, cold storage methods, and access to these wallets will necessitate more than one person’s login information.

Secondly, exchanges will be required to be vigilant in preventing money laundering, using such means as verifying customer identification for large transfers, and following know-your-customer (KYC) and anti-money laundering (AML) guidelines.

Thirdly, to ensure that customer assets are kept and managed separately from exchange-held assets, operators will be required to monitor customer account balances several times a day to look for unexpected activity. The FSA will also ask operators to have rules in place to keep their employees from accessing and utilizing client’s funds.

The fourth criteria places restrictions on the kinds of cryptocurrencies permitted at FSA-registered exchanges. Due to fears of the potential for money laundering, coins that grant a particularly high level of anonymity will not be permitted — this could potentially put cryptocurrencies like Monero and Zcash under scrutiny from Japanese officials.

Finally, the FSA will require stricter internal regulations which will keep shareholders and management separate. System development roles will also be kept separate from asset management roles to lessen the likelihood of employees attempting to manipulate the system for their own gain.

Moving Forward

“Without the necessary know-how, we’ve been feeling our way through the dark on how thoroughly we should check these different aspects,” a source from the FSA said. The new five-point framework aims to help the agency perform detailed assessments and identify potential risks in advance of taking exchanges on board.

The FSA hopes that these new guidelines will strengthen the stronger exchanges while forcing the weaker ones out. Generally, the steps the agency is taking will likely be a positive development for the space, helping legitimize cryptocurrencies and bring the industry further into the mainstream.

According to the reports, the FSA will start applying the new framework when it begins accepting new registration applications again — likely this summer. It will require existing exchange operators that are already registered with the agency to meet the new standards as well. It’s hoped that these measures will help prevent a repeat hack such as that took place at Tokyo-based Coincheck.

Featured image from Shutterstock.

The post Japan’s Financial Watchdog Unveils New Guidelines for Cryptocurrency Exchanges appeared first on NewsBTC.

We’ve seen use cases for blockchain tech across many industries, yet logistics is one in particular that’s seeing real results. As more of the world starts doing business with the rest of the world, a lot of things are getting moved from place to place. And while crypto can take care of payments, product still has to physically get from point A to point B. We haven’t come up with a technology that can teleport goods for us just yet.

But while we wait for our mastery of quantum physics to evolve, blockchain tech can at least make transporting items more efficient. From allowing for real-time tracking to ensuring that containers are at the right temperature, here are some of the ways in which blockchain is improving logistics:

Saving Money and Increasing Efficiency

Blockchain technology will enter mass adoption the moment it becomes profitable for businesses to use it. We may still be a ways off when it comes to cybersecurity or wiping out global poverty. But in logistics, blockchains are already impressing companies with their proven impact on what matters most – the bottom line.

A world leader in transportation and logistics, Trimble Transportation Enterprise is working to advance blockchain tech within the transportation and logistics industry through sister company TMW. By using a blockchain for freight tracking, they are able to help carriers save money, be more efficient, and reduce errors.

Freight tracking in itself is nothing new (we’ve got GPS, EDIs, and APIs for that). But as consumer expectations rise amidst promises of same-day or one-hour delivery, traditional methods are unable to scale. Not only can blockchain tech meet these new requirements, it also addresses the problem of authenticity.

Currently, as data passes through systems, there are abundant opportunities for it to be altered, tampered with, or misinterpreted. This not only causes chaos in the global supply chain, but it means that organizations are making decisions based on erroneous information. Blockchain technology brings a much-needed layer of trust and accountability. One Trimble customer, Dart Transit, expects to save over $2 million dollars a year with blockchain-built applications.

Last-Mile Delivery

Anyone who’s ever ordered online (that’s 96 percent of those who live in the US) have at some point probably received the wrong goods, waited for a delayed product, or had to leave their house when the item was due to arrive. Online shopping is the pinnacle of convenience, comfort, and choice. Repacking a bulky parcel and heading to the post office – not so much.

As major carriers struggle to keep up with the increase in online shopping, stolen packages and missed deliveries abound. And this creates significant inconveniences in the online shopping industry. Companies like NextPakk are cropping up to smooth out the bumps on the delivery road.

Using their blockchain-built application, consumers can create an account and use a NextPakk-generated ID and shipping address. This allows them to rearrange delivery for a time that’s convenient to them. Corporate Communications Officer Deb Olson enthuses, “Once packages arrive locally, consumers can schedule delivery in the evening when they’re home. Rather than lockers or drones, this is the solution to problems with last-mile logistics!”

Temperature-Sensitive Logistics

From perishable goods to pharmaceuticals, certain items depend on keeping a constant temperature. Smart Containers Group is the fourth largest player in the air freight pharmaceuticals logistics industry, with partnerships including major airlines specializing in pharmaceuticals.

The company has a proven track record of providing the safest containers worldwide, with temperature deviation results that are some 75 times better than the industry average.

Through its division SkyCell AG, they’re bringing a solution to market to ship critical items at the right temperature for the pharmaceutical industry.

And they’re taking it a step further, by planning to ship individual prescriptions, single syringes, and other low volumes of medications directly to patients through a B2C model.

Closing Thoughts

There’s a lot of hype around blockchains (as you may have noticed). And there’s also a lot of confusion as we explore uncharted territories. But while blockchain tech is just beginning to show its potential in some areas, in logistics, it’s fast becoming a must.

CNBC

Can Bitcoin Cross $15000 By The End Of The Year? Forbes Bitcoin prices have rallied over recent weeks – jumping nearly 50% from below $6,700 in early April to almost $9,900 in recent days. Although the cryptocurrency seems to facing some resistance around the $10,000 level, we believe that the ongoing rally ... Launch of bitcoin futures dragged down prices, Fed paper showsCNBC The momentous event that caused Bitcoin to peak on December 17, 2017Yahoo Finance Federal Reserve: Bitcoin Futures Launch Led To December 2017 Price DeclineCointelegraph MarketWatch -CoinDesk -CoinGeek -Federal Reserve Bank of San Francisco all 23 news articles »

U.S. House Subcommittees hearing: industry-wide standards need to be set for the use of blockchain in supply chains

Reddit, one of the biggest social media communities, is looking to re-establish cryptocurrency payments through Coinbase’s commerce platform. Users will be able to pay for the gold membership using Bitcoin and a variety of altcoins such as Bitcoin Cash, Ethereum, and Litecoin.

Reddit had previously accepted Bitcoin payments and was an early adopter of the payment method, working with Coinbase from as far back as 2013. However, Bitcoin had recently been met with mixed interest with companies withdrawing these services.

Reddit administrator emoney04 said, “The upcoming Coinbase change, combined with some bugs around the Bitcoin payment option that were affecting purchases for certain users, led us to remove Bitcoin as a payment option.”

The implementation of a more streamlined crypto payment system and with cryptocurrencies on what appears to be a steady bull run may see an adoption of digital payments again.

Reddit is not the only company to drop out of crypto payments

Stripe was another early adopter of Bitcoin payments, processing payments for businesses using crypto since 2014. Slow transaction speeds and high transaction fees led to virtual currencies being dropped as a payment method earlier this year.

Dell, which was once one of the largest companies to take Bitcoin payments, and Valve, stopped due to the cost of transaction fees and price volatility. The payment method hasn’t been as popular due to a lack of user interest with PayPal calling cryptocurrency “an experiment”.

Statistics show that Coinbase received around 14 million registrations in 2017 and with the announcement of their new payment platform we could see a wider adoption of crypto payments, as well as companies revisiting the idea of accepting Bitcoin.

With companies such as Santander and Mastercard investing heavily in blockchain as well as a larger public awareness of cryptocurrencies, companies may begin to feel confident in supporting alternative payment methods.

 

*Follow BitcoinNews.com on Twitter at https://twitter.com/bitcoinnewscom*

*Telegram Alerts from BitcoinNews.com at https://t.me/bconews*

Image source: https://www.flickr.com/photos/30478819@N08/26919225618/in/faves-64033667@N07/ – Marco Verch

The post Reddit to Resume Crypto Payments via Coinbase Commerce appeared first on BitcoinNews.com.

Blockchain is a borderless industry and as such, it has different platforms and organizations working all over the world. Much like an industrial association that has different companies meeting together on a single page to discuss about issues particularly related to their environment, decentralized platforms have different summits and forums where they can meet and sit down to discuss their issues, the future and development in general.

Consensus 2018 Sponsored By ARK

Consensus is a global level forum for blockchain developers and enthusiasts that attracts the largest crowds in the world. Last time, in 2017, Consensus saw more than a 100 speakers from different backgrounds talking about the impact and future of blockchain with 2000 plus attendees. This year, the summit will see more than 250 experts speaking on the present and the future of blockchain and is expected to be attended by people in excess of 5000.

ARK, a decentralized platform that allows users of different blockchains to operate seamlessly between them, is sponsoring the forum and is actively taking part in it. The forum is going to be held in Hilton Middletown, New York City between 14th and 16th May, 2018. The ARK team will set up a spacious booth in the meetings, with separate spaces for general meetings and private ones. The three day event will be used by the team to discuss and talk about its platform and how is it going to impact the blockchain world.

The opening on the first day will see Persona giving a presentation with a follow up by Blockport. Later on, ARK team will take over and give different presentations about its platform.

The next two days will have presentations by the founders of ARK, being given every hour. Some of the presentations will cover the basics, while others will dive deep into the technical data and information. The team can be interacted with in booth #113 during the event.

But What Is ARK?

ARK is a blockchain platform that solves a fundamental issue within the global blockchain ecosystem. With hundreds of platforms dedicated for specific workings and each platform having its own internal token system, it is practically impossible for a user to hold each token or regularly convert from his or her own to the required ones.

ARK helps by making creating a blockchain web that is compatible with other chains. This, and the smartbridge technology allows user of one chain to to trigger an event in another, while using tokens from the originating chain- and sending the receiver his or her chain’s native tokens.

Another feature of ARK is their One Click Blockchain Deployment. This is a premade blockchain that is essentially a copy of the ARK chain, giving any organization the ability to possess ts own blockchain based on the ARK platform. This saves the organization from a burden of development, financial and time investment.

The ARK network has working models of its concept for Bitcoin, Ethereum and Litecoin networks with capability to rebuild the entire ARK network, should the need arise for more compatibility as more chains are integrated.

For more information about the interoperability platform, visit their website: https://ark.io/

The post Global Blockchain Conference, Consensus To Be Sponsored by ARK appeared first on BitcoinNews.com.

One half of famed Bitcoin proponents, the Winklevoss twins, has responded to Bill Gates’ comments about shorting Bitcoin.

In a tweet posted today, Tyler Winklevoss explained to the billionaire Microsoft founder that there is already an option to short the digital currency using the Cboe Futures contracts launched last December.

Winklevoss: “Put Your Money Where Your Mouth Is!”

Yesterday, we reported on an interview hosted by CNBC’s ‘Squawk Box.’ During the conversation with Bill Gates, Warren Buffet, and Charlie Munger, Gates was asked about whether he owned any Bitcoin. He replied:

“Somebody gave me some for my birthday then a few years later I thought, ‘hey I’m going to sell that,’ so, no.”

He then went on to talk about the current speculative nature of Bitcoin before surmising that if there was an easy way to short Bitcoin then he would do exactly that.

Evidently, Gates hasn’t heard that Bitcoin Futures can be traded at the Chicago Board Options Exchange (Cboe). Fortunately Tyler Winklevoss was at the ready to set the anti-Bitcoin billionaire right. The co-founder of the Gemini cryptocurrency exchange platform tweeted directly to Gates with the tip about the Cboe Futures contracts being available to bet on the price of Bitcoin decreasing, along with some encouragement for him to put his money where his mouth is.

Dear @BillGates there is an easy way to short bitcoin. You can short #XBT, the @CBOE Bitcoin (USD) Futures contract, and put your money where your mouth is! cc @CNBC @WarrenBuffett https://t.co/4JIhF5vWsZ

— Tyler Winklevoss (@tylerwinklevoss) May 7, 2018

Cboe launched their Bitcoin Futures contracts to great anticipation last December. Whilst many in the Bitcoin community lauded the move for the legitimacy it would supposedly bring to the cryptocurrency space, the reality is that they haven’t proved anywhere near as popular as people hoped. Many institutional investors still remain wary of digital currencies such as Bitcoin.

Tyler and his twin brother Cameron are the founders of the aptly named Gemini cryptocurrency exchange. It’s their platform’s prices that the Cboe Futures exchange uses to settle their contracts each day. The two famously invested heavily into Bitcoin back in 2013. They originally entered the market when each coin was priced at around $120. Their $11 million investment has since multiplied in value many times and, assuming they haven’t converted any back to fiat, is currently worth about $834.17 million at today’s price of $9,192 per Bitcoin.

Earlier this year, Tyler expressed his frustration with regulatory bodies treatment of cryptocurrency. He said he felt that they had not moved quickly enough to deal with the emerging financial technology and that a considered approach from institutions such as the U.S. Securities and Exchange Commission (SEC) would allow digital currencies to flourish whilst discouraging scammers.

Featured image from Shutterstock.

The post Tyler Winklevoss to Bill Gates: ‘Put Your Money Where Your Mouth Is’ appeared first on NewsBTC.

Australia’s latest budget allocates AU $700,000 to its Digital Transformation Agency for the exploration of government blockchain applications.

Banks and other financial institutions rarely keep an open mind toward Bitcoin and other cryptocurrencies. It is an unconventional business model, yet most crypto service providers still rely on banks to offer the majority of their products and tools. ATB AlphaBeta is one of the few players actively welcoming cryptocurrency companies and enthusiasts as of right now.

ATB AlphaBeta is Doing Things Differently

To most people, it seems as if Bitcoin and other cryptocurrencies could eventually make banks obsolete. That was the original mindset which drew a fair few early adopters to this industry in the first place. Unfortunately, it seems cryptocurrencies and banks direly need one another to survive and thrive. This is especially true for cryptocurrency exchanges, wallet service providers, and other ventures.

Sadly, most banks around the world would rather oppose the cryptocurrency industry than allow it to flourish. That is no big surprise, as this largely unregulated industry can cause a lot of issues for partner banks and service providers. ATB AlphaBeta sees this as a golden opportunity to further expand and solidify its presence in the financial sector.

The company acknowledges that cryptocurrency has been “taboo for banks” for several years. In particular, its pseudonymity, anonymity, and privacy aspects are of great concern to a lot of financial institutions. As banks need to adhere to very strict regulations, it is only normal that they would steer away from anything threatening their regulatory compliance. There’s also a lack of knowledge and a general fear that Bitcoin and its cohorts may disrupt the traditional banking model in the future.

ATB is ready to break some new ground in this regard. The firm has identified and examined segments of the cryptocurrency ecosystem which it can serve while remaining compliant with existing regulations. A close collaboration with cryptocurrency experts completely changed the bank’s outlook on this industry, even though the journey has not been easy by any means.

As a result, ATB wants to be Canada’s leader in business banking for cryptocurrency firms. While the primary focus is on the Alberta region, it does set a very intriguing precedent. AlphaBeta is confident that there are benefits for them, their clients, and the overall economy. It is a major nod of approval from a traditional bank, and one that can elevate the cryptocurrency ecosystem to new heights.

Although their plan of action remains a bit unclear, ATB is confident that blockchain technology and cryptocurrencies will be a part of the future, which is a very positive outlook. While this bank is ready to embrace the future, the big question remains whether or not any of its competitors will do the same. Canada is shaping up to be a very interesting place for cryptocurrency in general, as good things continue to happen there.

The CEO of cryptocurrency trading platform Binance has made a positive case for initial coin offerings (ICOs). In a recent blog post, Changpeng Zhao argues that the digital crowdfunding method adopted at large by blockchain startups are “not just good-to-have”, but necessary.

Out with the old

At the crux of the blog post is a debate between traditional venture capitalism (VC) and ICOs; Zhao highlights several differences while acknowledging the present issues with the ICO markets.

For entrepreneurs, Zhao argues that the process of acquiring funding through VCs is tedious, time-consuming and requires startups to relinquish some or all control of their project. He writes:

“Courting VC investors, doing powerpoints, business plans, pitch decks, executive summaries, due diligence, term sheets, investment agreements, offshore company structure setup, board of directors, make reports for them, getting a bridge loan because the VC lawyers insist on some totalitarian terms that essentially gives them absolute power and ownership of your company and hence delays the whole investment process…”

He then compares it to the speed, effectiveness and control an ICO delivers to any entrepreneur:

“Writing an awesome white paper about your passionate dream project and raise USD 20M in 10 days, from thousands of people around the world who speak your language, understand your vision, use your product as soon as it is launched, spend all day beta testing your product, or discuss with you about new neat (and sometimes useless) features that you haven’t thought about.”

ICOs are still in development

Zhao admits that ICOs are still in their early stages, which is true considering that countries around the world are feverishly debating the validity and legalities of ICOs, which contrary to popular belief, is a good thing.

Concerns over ICOs having a myriad of security, fraud and other illegal activities tied to them has caused knee-jerk responses from governments and regulators everywhere in the world. However, Zhao makes a strong point saying:

“You can’t make advancements without encountering problems. Properly dealing with issues is how progress is made. If we had given up e-commerce/internet because there was identity theft or credit card fraud, where would the world be today? Whoever deals with the issues best will be the winners, that’s where the competition is.”

ICOs beat VC projects

Zhao is of the belief that ICOs will succeed more often than VC projects and makes three distinct points as to why he thinks this is the case. His first is that again, ICOs are extremely time and cost effective. Less time spent raising funds means the actual project itself receives the much-required attention it needs.

Furthermore, the higher amounts of funding received from ICOs allow for startups to better overcome weak points in the project. Finally, ICOs create a user base during the funding period, turning investors into users, which is an extraordinarily strong start for any company upon launch.

He concludes by noting that VCs are now investing heavily in ICOs, a factor which he believes speaks for itself regarding just how valid and useful the digital fundraising method is.

 

*Follow BitcoinNews.com on Twitter at https://twitter.com/bitcoinnewscom*

*Telegram Alerts from BitcoinNews.com at https://t.me/bconews*

The post Binance CEO Firmly Believes in ICOs as Answer to Venture Capitalism appeared first on BitcoinNews.com.

Bitcoin as people know it today will undergo some big changes in the near future. The Lightning Network is perhaps one of the biggest developments for the world’s leading cryptocurrency to date. Slowly but surely, more and more service providers are incorporating this technology. Vaultoro is the most recent service provider to do exactly that.

A Smart Move by Vaultoro

Most cryptocurrency users will know the name Vaultoro, as it is one of the platforms allowing for the exchange of gold and Bitcoin. This platform has opened up a lot of new opportunities for the cryptocurrency industry in general, yet such services will need to undergo improvements as time progresses. This means paying attention to new developments taking place in the world of cryptocurrency, especially when it comes to technical changes.

As such, the company has now incorporated Bitcoin’s Lightning Network technology. It is an interesting choice, especially when considering that no other cryptocurrency-related exchange or trading platform has taken the same approach. Someone had to be the first, though, and Vaultoro has decided now is as good a time as any to experiment with instant Bitcoin transactions.

There are a few obvious benefits for Vaultoro users in this regard. Having access to instant Bitcoin deposits at no additional charge is certainly something to look forward to. Additionally, the Vaultoro team is already working on upgrading their LN capabilities by introducing taker orders without having to trust the platform’s hot wallet. That in itself will be a very interesting development to keep an eye on, as it highlights the potential of Lightning Network technology in general.

Vaultoro’s co-founder, Joshua Scigala, commented as follows:

This first implementation will allow Vaultoro’s users to send Bitcoins instantly, cheaply and privately. Our next goal is to enable people to take orders from the order book directly from their controlled wallet. Vaultoro traders will be able to deposit funds in milliseconds without having to trust our exchange hot wallet if set to instant order. Our goal at Vaultoro has always been to make the exchange radically transparent and now with lightning network, market takers will have no need to trust our hot wallet.

As one would expect, users will need a compatible wallet to take full advantage of the Lightning Network implementation. For this reason, users are being advised to install the Eclair wallet, which is one of the solutions bringing the Lightning Network closer to Bitcoin enthusiasts all over the world. With Eclair, users can experiment with Vaultoro’s new feature, even though the latter is still in beta for the time being. This also means there is a deposit limit of 100 satoshi per transaction, although that will probably be increased in the future.

It will be interesting to see how other exchanges handle the Bitcoin Lightning Network implementation. This technology has a lot of potential, but it is still in the testing phases and should be treated as such. With more companies starting to pay attention to these developments, there is a very good chance the Lightning Network will make a positive impact on the entire industry a lot sooner than people initially expected.