CASHMANDU: Crypto-Currency

Showing posts with label Crypto-Currency. Show all posts

Individuals may now purchase citizenship in Antigua and Barbuda with bitcoin and other cryptocurrencies.

Buying Citizenship in Bitcoin

The independent Commonwealth country comprising its two namesake islands has officially amended its Citizenship by Investment Programme Act. It now accepts payment in bitcoin 00 and other cryptocurrencies.

As reported by Antigua News Room, the resolution was passed in the Lower House on July 22 “without debate.”

Citizenship through the Act may also be purchased in Euros and other fiat currencies. Announced the country’s finance minister:

So not only are we providing the capacity for payment in Euros, but we are also proving for payments using bitcoin and other cryptocurrencies.

‘Moving Money is Important’

The prime minister stated that the amendment to the Act was important because “moving money is important and if you cannot move money you cannot receive it.” He continued:

So it is quintessential that we have a payment mechanism that could facilitate payments in cryptocurrencies.

The decision to allow cryptocurrency payments for citizenship purchases has also been driven by market demand. The prime minister told the parliament:

And the truth is too, it expands your market because we have a number of cryptocurrency investors who may be quite willing to take up our citizenship but would only pay in cryptocurrencies.

If you do not accept the cryptocurrency then you would be literally locked out of that market.

Nevertheless, the prime minister realizes that cryptocurrencies are far from stable in their nascent stage, and thus clarified that the country has “to be careful.” To combat the notorious volatility present in the cryptocurrency market, payments will be converted into US dollars on a daily basis “to ensure that we don’t have any exposure in cryptocurrencies.”

What do you think about Antigua and Barbuda’s new amendment to the Citizenship by Investment Programme Act? Let us know in the comments below!

Images courtesy of Shutterstock, Pixabay.

The post Bitcoin Can Buy Citizenship in Antigua and Barbuda appeared first on Bitcoinist.com.

Iran explores circumventing U.S. sanctions with cryptocurrency, and a former JPMorgan exec thinks blockchain can save the world.

Coming every Sunday, the Hodler’s Digest will help you to track every single important news story that happened this week. The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions, and much more — a week on Cointelegraph in one link.

Most Memorable Quotations

Alexis Ohanian

“We’re looking for those companies who are building the robust but very unsexy infrastructure that’s probably not going to make a headline anytime soon,” — Alexis Ohanian, a co-founder of Reddit and VC firm Initialized Capital, on what he looks for in investments

Leanne Kemp

“So when you look at our portfolio — diamonds, jewelry, watches, wine, collected automotive cars, maybe even helicopters — I guess it's motivated by me, the things I like to eat, to drink, to fly, to wear — handbags — selfishly, why not be motivated by that?” — Leanne Kemp, founder of Everledger, on which high class assets the blockchain platform tracks

Laws And Taxes

US SEC Delays Review Of Direxion’s Bitcoin Exchange-Traded Fund

The U.S. Securities and Exchange Commission (SEC) has postponed its decision on investment firm Direxion’s Bitcoin exchange-traded fund (ETF) application until September 21, in a move that only affects Direxion’s offering. The SEC said it was “appropriate” to delay its review in order to have “sufficient time to consider this proposed rule change.”

Libertarian Party Gubernatorial Campaign To Accept BTC, Despite Legal Uncertainty

Phil Anderson, the Libertarian candidate for Wisconsin governor, will accept Bitcoin donations despite the state’s Ethics Commission previously finding them a “serious challenge” to compliance with state law. Anderson believes his party is abiding by the law in accepting BTC, and said he will “push all the way back” if the Ethics Commission files a complaint.

South Carolina Watchdog Removes Enforcement Action Against 2 Blockchain Startups

The Securities Divisioon of the office of the Attorney General of South Carolina has removed the cease-and-desist orders against shipping platform ShipChain and cloud mining platform Genesis Mining. ShipChain has received the cease-and-desist, which it had refuted, in May for allegedly violating the state’s securities laws. Genesis Mining was also previously halted for reportedly selling “unlicensed securities.”

South Korean Financial Regulator Urges Legislators To Speed Up Crypto Bill

South Korea’s Financial Services Commission has asked lawmakers to move quickly in their approval of the country’s first cryptocurrency bill. Hong Seong-ki, the head of the regulator’s virtual currency response team, warned of the security and money laundering risks associated with South Korean crypto exchanges in a statement, underlining that the bill should be passed “as soon as possible.”

Adoption

Nasdaq Holds Closed-Door Meeting With Finance Firms To Discuss Crypto Legitimization

Nasdaq, Inc. held a closed-door meeting this week to discuss steps for making the cryptocurrency industry more legitimate in global markets. Nasdaq confirmed that the event took place, and the discussion was reportedly attended by around half a dozen representatives from both crypto and traditional financial firms — supposedly including the Winklevoss twins’ Gemini. An unnamed source told Bloomberg that this was just the beginning of such discussions.

EU Parliamentary Study Finds CBDC Can Be A “Remedy” For Crypto Market Competition

A new study, commissioned by the European Parliament Committee on Economic and Monetary Affairs (ECON), has found that central bank-issued digital currencies could be a “remedy” for a lack of competition policy in the crypto sector. The study also refers to Bitcoin and blockchain as “sources of disruption” for the monetary policy and financial stability.

Digital Asset Manager Bitwise Files ETF Petition With US SEC

Bitwise has filed with the U.S. Securities and Exchange Commmission to launch a cryptocurrency exchange-traded fund this week. According to Bitwise, their HOLD10 Cryptocurrency Index will include 10 cryptocurrencies and will track the Bitwise HOLD 10 Private Index Fund founded in November of last year.

South Korean Telephone Giant Launches Blockchain-Based Commercial Network

The state-owened KT corporation, South Korea’s largest telephone company, has announced the launch of its blockchain-powered commercial network. According to the KT Corporation, they have built a blockchain layer on top of its existing nationwide network to improve its security and transparency. KT Corporation also plans to offer blockchain-basedroaming services with some international mobile carriers.

Asia-Based Family Office-Focused Asset Management Fund To Offer Crypto-Custody

The Fusang Investment Office, which focuses on family officies, announced plans to launch a crypto-custody service in Hong Kong. According to the company’s CEO Henrgy Chong, the Fusang Vault will hold digital assets for clients as well as provide periodic audits. Chong noted that there is an increasing need for an independent third paty for holding a clients’ crypto assets.

Mergers, Acquisitions, And Partnerships

Google Partners With Two Blockchain Firms To Offer Fintech, Cloud Service Solutions

Google announced this week that it has partnered with Digital Asset and BlockApps in order to offer distributed ledger solutions on Google’s Cloud Platform. In their statement, Google said that customers will also be able to test out open-source integrations for the Hyperledger Fabric and Ethereum protocol on their Google Cloud Platform Marketplace Service.

Seven Starts Cloud Group Partners With Chinese VC Institute For Asset Digitization

Seven Stars Cloud Group (SCC), a global blockchain and AI-focused fintech firm, has partnered with the China Venture Capital Research Institute (CVCRI) to extend SCC’s asset digitization services. CVCRI’s relationship with Chinese authorities and regulators will reportedly help develop the fractionalizion and securitization of a set of new fixed income asset classes, tradable on government designated exchanges within China.

Singapore Airlines Releases Microsoft-Developed Blockchain Loyalty Wallet

Singapore Airlines has launched its own loyalty digital wallet based on blockchain technology, co-developed by Microsoft and KPMG Digital Village. The new wallet, called “KrisPay,” converts frequent flyer miles into digitized “KrisPay” miles that customers can use to pay for retail purposes via a mobile app.

ConsenSys Signs MoU With Future “Smart City” Xiongan For Blockchain Consulting

China’s Xiongan New Area government has brought blockchain software tech company ConsenSys on board to help develop blockchain tech applications in their future “smart city,” according to a recently signed Memorandum of Understanding. ConsenSys has confirmed that they will advise the Xiongan government on blockchain and software solutions in order to establish it as a “next generation smart city [and] leading blockchain innovation hub.”

Indian State Of Telangana Announces Signing Of Several MoUs With Blockchain Firms

The Indian state of Telangana has announced it will sign several memoranda of understanding with blockchain firms in order to bring the technology to state applications. According to a government official, introducing blockchain will help bring more transparency and efficiency to public services.

Funding Rounds

General Electric Venture Arm Contributes To Xage Security’s $12 Mln Funding Round

The venture capital arm of General Electric, GE Ventures, has participated in a $12 million Series A funding round for blockchain startup Xage Security. The funding round, led by March Capital Partners with City Light Capital and NexStart Partners also as participants, aims to develop Xage Security’s security fabric for industries ranging from energy to building management.

Novogratz’s Crypto-Focused Merchant Bank Leads $52.5 Mln Funding Round For BlockFi

Mike Novogratz’s crypto-focused merchant bank, Galaxy Digital, has led a $52.5 million dollar funding round for the crypto lending firm BlockFI. BlockFi offers corporate and retail loans on Bitcoin and Ethereum, and hopes to expand their services to support both more cryptocurrencies and more geographic markets in the future.

Winners And Losers

The top three altcoin gainers of the week are ChainLink, TenX, and Kin. The top three altcoin losers of the week are PIVX, MOAC, and DigiByte.

For more info on crypto prices, make sure to read Cointelegraph’s market analysis.

FUD Of The Week

Defunct Bitcoin Stock Exchange BitFunder Operator Pleads Guilty To Federal Charges

Jon Montroll, the operator of Bitcoin stock exchange BitFunder, has plead guilty to federal charges of obstruction of justice and securities fraud this week. Montroll is charged with providing false balance statements to the U.S. Securities and Exchange in an investigation of the fake 6,000 BTC BitFunder hack in 2013.

Major Indian Crypto Wallet, Provider Unocoin Suspends Fiat Deposits After RBI Ban

Unocoin, an Indian crypto wallet provider and exchange, has suspended rupee deposits and withdrawals “as per orders” from the country’s central bank. The exchange notes that the suspension is temporary until “an alternative method of funding is identified and deployed.” RBI’s crypto dealings ban came into effect on July 5, and a hearing about its legality has been moved to September 2018.

Delaware Department Of Justice Asks Poloniex Users If They Have “Issues”

The Investor Protection Unit of the Delaware Department of Justice wrote an email to a list of individuals this week, asking him to contact them if they were having any issues with their Poloniex account. The Poloniex crypto exchange has recently been the subject of complaints online, with users writing on Reddit about their missing or “stuck” deposits.

MetaMask ETH Network Browser Extension Temporarily Pulled From Google Chrome

MetaMask, a browser extension for interacting with the Ethereum network, was pulled from the Google Chrome Web Store for five hours this week before being listed again. The company tweeted that it was “unsure” of the reasons for the delisting. During the time the app was removed, Ethereum-based prediction market protocol Augur tweeted a warning that there was a fake, phishing application now present on Google Chrome’s store posing as the MetaMask extension.

“Assassination Markets” Appear On Blockchain Event Betting Platform Augur

“Assassination markets” have popped up on Augur — a blockchain-based platform that uses Ethereum for event betting — consisting of users betting on whether certain public figures will die. Users have recently begun posting bets on the deaths of various public figures, including U.S. president Donald Trump and Berkshire Hathaway CEO Warren Buffett. Hypothetically, should the wager become high enough, it could create an incentive for someone to carry out the crime.

Prediction Of The Week

Reddit Co-Founder Upholds BTC Prediction Of $20,000, ETH Prediction of $1,500 In 2018

Alexis Ohanian, both a co-founder of Reddit and the VC firm Initialized Capital, has upheld his previous forecasts of BTC hitting $20,000 and ETH hitting $1,500 in 2018. Ohanian described Bitcoin as a “robust” asset, noting that blockchain development has helped BTC stay up even with its volatility.

Best Features

Graduating out of Skeuomorphism

This article delves into the reason behind why Bitcoin became associated with an image of a gold coin with a “B” on it in the first place — an “interesting design concept” called skeuomorphism. The concept entails the association of digital concepts with forms that resemble their physical counterparts, like an online “shopping cart” that isn’t really a shopping cart at all. The article posits the question of how Bitcoin would have developed if it had been marketed as the alternative to Western Union, instead of its initial perception as a coin or investment vehicle.

The Tezos Experiment

Meltem Demirors, the CSO at CoinShares and a lecturer on blockchain at Oxford, explores the possibilities of the Tezos ecosystem in an exhaustive article that includes a specialized Tezos jargon dictionary, a graphics-heavy breakdown of tezzies delegations, and speculations about the potential for “token holder activism.” Demirors notes the token holder activism can be used for both good and bad, advising her readers to “remember that blockchains don’t change human nature.”

FX markets settlement provider CLS is expected to launch its blockchain-powered payment service for banks later this summer.

Forex exchange (FX) settlement giant CLS is in the final stages of testing its blockchain payment service for banks, Financial News reported July 27.

The service is reportedly set to be launched later this summer, with at least seven banks expected to sign on to the system in the early months.

CLS, the New York-based global multi-currency cash settlement system, has been working with tech company IBM to introduce the blockchain-powered payment netting service. The system is set to be incorporated in banking IT systems to boost the level of standardization in the global FX markets, as well as reduce costs of the process.

At the moment, the FX markets are reportedly lacking standardization as forex institutions are forced to complete the process manually, which often causes scattered approaches to netting and leads to higher costs, the Financial Times notes.

CLS is planning to offer its members two options to connect to the CLSNet service, providing a direct, as well as an intermediary, connection via the SWIFT financial messaging provider. However, a CLS spokesperson clarified that clients would rely on the SWIFT provider in the first stages, while direct node hosting will be offered as “the service continues to grow with functionality and client adoption, and the DLT [distributed ledger technology] matures.”

While around seven banks are ready to test the upcoming service, they are reportedly just half of those that backed the project originally. CLS chief strategy and development officer Alan Marquard revealed that some of their big banking members are cautious to connect directly to the blockchain since the technology is still not tested enough for settlement and safekeeping of securities.

Marquard explained that banking institutions cannot “just install a piece of software,” as they first need to “build operational knowledge and know-how” to ensure their databases have adequate privacy protection.

CLS Group, originally Continuous Linked Settlement, is a U.S. FX settlement service supplier with such high-profile members as Goldman Sachs, JPMorgan, Barclays, and Citigroup. In late May, the company invested $5 million in blockchain consortium R3 in order to collaborate with leading blockchain experts.

SWIFT, with 45 years of experience in providing financial institutions with transactions information, has recently reported that its blockchain pilot for bank-to-bank transfers went “extremely well,” having first announced the Hyperledger-based project for a cross-border payments market back in 2017.

Earlier in June, Ripple (XRP) chief cryptographer David Schwartz claimed that banks are unlikely to deploy blockchain to process international payments, citing low scalability and privacy problems.

Recent research from IW Capital found that 38 percent of the British population do not “understand” cryptocurrency. Furthermore, a mere 5 percent of those cryptocurrency investors polled have actually turned a profit — a fact the investment house’s CEO finds “very concerning.”

A Fundamental Lack of Information or Knowledge

British investors do not understand cryptocurrency, according to recent research from IW Capital. The Mayfair-based SME investment house shared the research with Express.co.uk.

The report surmises that the vast majority of the UK investing community finds investing in cryptocurrency to be a worse decision than investing in traditional markets.

The investment house polled 2,0007 respondents, 38 percent of which said they do not understand cryptocurrency. Additionally, one-third of respondents are under the impression that the supposed bitcoin bubble will soon burst, while a mere 7 percent believe cryptocurrency investments are better those made through traditional channels.

According to the research, only 5 percent of cryptocurrency investors have turned a profit — a statistic likely skewed by the fact that more than 2.5 million Brits have “casually invested in cryptocurrency without fully understanding the investment.” (Which is the fastest way to lose money, especially in a bear market.)

Failure to Seek Financial Advice

Indeed, it is the fundamental lack of knowledge which is largely responsible for the aforementioned results. According to IW Capital:

The data reveals that, fundamentally, Brits do not have enough information or knowledge on the topic of cryptocurrency. In fact, many have no knowledge about the subject whatsoever.

Losses have also been compounded by failing to take proper investment precautions, such as consulting a financial advisor. The investment house also noted:

Despite a widespread dearth of knowledge surrounding this particular asset class, disconcertingly, 1 in 20 Brits – nearly 3 million – have invested in cryptocurrency without fully understanding it, with only 5 percent having taken advice from a financial adviser when investing in cryptocurrencies.

Only 5 percent of those who have invested in cryptocurrency have made financial gains. 11.5 million have failed to make a financial gain when investing in a cryptocurrency.

London School of Economics to Offer Online Cryptocurrency Course

‘Very Concerning’

IW Capital CEO Luke Davis also told Express.co.uk that the results of the research are “very concerning,” explaining:

It is shocking, but not surprising, to see so much confusion around the topic of cryptocurrency. I do not believe this is a reflection of UK investors’ risk profile, as a positive appetite for alternative finance remains, but to see that investments have been made without proper financial advice and a lack of facts and education is very concerning.

This news might not come as much of a surprise, however, as the number of first-time investors into the cryptocurrency space during the holiday season’s ‘bubble phase’ has been well-documented. Many of those who jumped aboard the bitcoin bandwagon in December have since gotten rekt and shaken out of the market.

The results are also further proof that one should always do his or her own research and due diligence before investing in cryptocurrency, and should never invest more than he or she can afford to lose.

What do you think of IW Capital’s research and results? Let us know in the comments below!

Images courtesy of Shutterstock, Bitcoinist archives.

The post Research: UK Crypto Investors’ Lack of Knowledge is ‘Very Concerning’ appeared first on Bitcoinist.com.

Bitcoin Price Analysis: How Many Days Can We Trade Sideways?

Decisions by the U.S. Securities and Exchange Commission (SEC) appear to have put a temporary damper on the current Bitcoin rally. Does the quick recovery to $8,250 mean the bull reversal is still intact?

Market Overview

BTC 00 dipped to $7,900 on the recent denial of the Winklevoss brothers Bitcoin ETF application, and the postponement of Direxion BTC ETF decision by the SEC, but it’s clear that current events were not the sole factor for this mild pullback. As Bitcoin rallied to new monthly highs it also became oversold but the king of cryptocurrencies recovered quicker than expected and now appears to be gearing up to retest the 200-day MA at $8,476.

1-Hour Chart

Bitcoin 00 remains above the ascending trendline and is currently trading within a tight $200 dollar range along the $8,225 support which is also slightly above the 100-day MA. A pattern of higher-lows and higher-highs can be seen and even though the 5-day MA has begun to descend toward the 10-day MA, the 10 continues to ascend while BTC currently trades above the 20 and 100-day MA. At the same time, the 50 MA is also in the process of crossing above the 100-day MA.

At the time of writing, both the RSI and Stoch are falling towards bearish territory. However, there is soft support at $7,940 and a sturdier support at $7,750 and $7,400. If BTC falls below the bullish trendline at $7,984, a revisit to the $7,750 support could occur. The 5, 10 and 20-day moving averages remain above the 100-day MA, suggesting that the path of least resistance favors additional upside gains and current technical indicators suggest that BTC will continue to trade within the $8,100 to $8,300 range for the short term.

4 Hour Chart

At the time of writing, both the RSI and Stoch are falling towards bearish territory but there is soft support at $7,940 and a sturdier support at $7,750 and $7,400. If BTC feel below the bullish trendline at $7,984 then a revisit to the $7,750 support could occur.

The suggestion of further short-term range-bound trading is supported by the flattened RSI and slightly narrowing Bollinger Bands on the 4-hour chart. BTC rides right along the 20 MA and while the gap between the 5 and 10-day MA narrows, BTC remains in the ascending channel.

Traders should look for further constriction of the Bollinger Bands, along with a rising RSI as this could be indicative of an impending breakout to the 200-day MA at $8,476. Again, a drop below the ascending trendline at $7,903 could drop BTC to the next support at $7,750 and $7,400.

Looking Ahead

The short-term bullish outlook remains intact as BTC continues to trade in the ascending trendline and the longer moving averages remain biased towards bulls.

BTC will likely remain range-bound for the short term and traders should keep an eye for additional constriction or even bullish expansion of the Bollinger Bands, along with any rise in the RSI on the hourly and 4 hour chart.

BTC is well supported below $8,000 and a drop below the bullish trendline at $7,940 could cause BTC to fall to the $7,750 and $7,400 support.

A high volume breakout above the $8,476 (200-day MA) could extend BTC price toward $9,000.

[Disclaimer: The views expressed in this article are not intended as investment advice. Market data is provided by BITFINEX. The charts for analysis are provided by TradingView.]

Where do you think Bitcoin price will go this week? Let us know in the comments below!

Images courtesy of Shutterstock, Tradingview.com

The post Bitcoin Price Analysis: How Many Days Can We Trade Sideways? appeared first on Bitcoinist.com.

Bitmain Looking to Launch Canadian Bitcoin Mining Operation

Today, the days of hobbyist crypto miners are long gone, and thanks to the growth of larger miners (namely Bitmain) we can enjoy a more reliable, stable and faster network. However, this comes at a price. More than 90% of the overall Bitcoin hash power is owned by less than 20 companies.

Satoshi designed a near perfectly balanced, trustless system to prevent rogue actors from taking control. The proof-of-work (PoW) mechanism sits at the core of this system and drives the growth of the decentralized network by rewarding participants who provide computing power. This makes the network more stable and secure and is also known as “mining.”

But the creator of Bitcoin underestimated the implications of PoW and that the development of ASIC hardware could result in the centralization of power in hands of a few players, ultimately posing a significant threat to the decentralized networks.

As the Bitcoin network began to grow rapidly, so did the increase in demand for computing power, and finally, PoW led to fierce competition between participants, subsequently making it harder and harder for smaller miners to stay relevant and profitable. This trend was further exacerbated by the increasing prices of cryptocurrencies. As more and more serious companies became involved, the competition became a race to create better, faster and more efficient mining equipment.

Bitmain: Monopoly and Risk of a 51% Attack

Bitmain is the clear winner of the mining race, the Chinese company earned $2.5 billion in revenue in 2017. Bitmain’s products are superior, their ASIC miners require less power and achieve greater hash rates, ultimately resulting in higher profits. It’s not a surprise that savvy miners, mostly motivated by profit, have opted for the equipment that achieves the highest return on investment. Bitmain’s hardware business combined with their ownership of the largest mining pools in the world has given Bitmain the power to influence and effectively control the Bitcoin network.

One of the consequences of such dominance is the centralization of the network, which makes Bitmain’s business itself the largest threat to the network. As recently pointed out by Vitalik at a conference in Zug, Bitmain controls close to 53% of the hashrate, which poses a serious risk of a 51% attack. Although it is unlikely that such an attack would come from Bitmain as it would destroy their business model, it is nevertheless an unacceptable situation if Bitcoin is to win the trust of the broader community.

The Bitcoin network experienced a similar situation in 2014 when the Ghash.IO mining pool reached a hashrate close to 51%. Ghash.IO then made a voluntary statement, promising that it will not exceed 39.99% of the overall Bitcoin hashrate. The team also encouraged other pools to follow the example for the benefit of the whole community.

New Hardware Providers and Alternative Mining Pools

Although Bitmain is likely to continue to dominate, we have already observed strong moves from competitors gearing up to challenge Bitmain’s position. The Innosilicon A9 ZMaster has a hashrate of 50ksol/s, beating out the Bitmain Antminer Z9 at 50 ksol/s and achieving profitability of $83.10/day verses Bitmain Antminer Z9’s $65.47/day (at the time of writing this article).

Selecting smaller mining pools, outside of Bitmain’s influence can be another way to fight off centralization and potentially mal intentions. In order for this to happen, miners will need to work together to establish alliances and move their hashing power to alternative mining pools or start their own pools. This is in line with the spirit of the values of the decentralized world, which hopefully are deeply rooted, at least among some crypto miners.

Potentially considered idealistic or old-school, GPU mining is still a valid option and can be profitable with the right setup. Creating mining rigs that can mine any cryptocurrency, including ASIC-resistant coins is generally good practice.

The Future is Decentralized

Bitmain has indeed helped to create a stable and more secure blockchain that delivers with determination and speed. However, what once meant security is now turning into the biggest threat to the Bitcoin network thus far. It’s now paramount for the community to work together to diminish Bitmain’s position in an effort to create a fair, decentralized system that benefits the community as a whole, without the risk of centralization.

[Note: This article was written by guest author, Luke Szkudlarek, Digital Strategy Lead and Founding Partner, What.Digital. Luke has over ten years of international experience in the digital sector, having worked in companies and marketing agencies across the UK, Poland and Zurich. Now Luke leads growth hacking strategies for ICO projects at What.digital, Luke has helped to raise more than $50m through a number of ICO projects. Luke is active on the Swiss startup scene, board member at the Swiss Finance + Technology Association.]

Images courtesy of Shutterstock

The post Bitmain Mining Monopoly: Dancing with the Devil appeared first on Bitcoinist.com.

Binance Partners With Libra Credit to Offer Loans to BNB Holders

Binance Labs has invested in cryptocurrency loans company Libra Credit who will offer fiat and cryptocurrency loans to BNB holders using their coins as collateral.

The latest venture by the investment arm of the world’s largest cryptocurrency exchange, Binance, will take advantage of a growing demand for the liquidity of crypto-assets. Binance Labs is a social impact fund which incubates and invests in cryptocurrency and blockchain projects.

The latest venture by the investment arm of the world's largest cryptocurrency exchange Binance, will take advantage of growing demand for the liquidity of crypto-assets.

Libra Credit is branded as a decentralized digital asset financial services platform, and it has a primary focus on lending. Its initial coin offering (ICO) with the coin (LBA) ended May 5, 2018, having raised $26 million. Libra is planning to launch both a desktop lending platform and a mobile application for borrowers.

Cryptocurrency Loan Market Grows

This latest partnership is one of a growing number of cryptocurrency loan services appearing. The loans enable cryptocurrency investors to use their coins as collateral in the same way as a property is used in conventional borrowing. Lenders can still take advantage of increases in the value of their coins and retain final ownership but can borrow other currencies, including fiat, to use for further projects.

Earlier this week Mike Novogratz’s merchant bank Galaxy led a $50 million round of funding for the cryptocurrency lender BlockFi, which provides loans of up to $10 million against Bitcoin and Ethereum investments.

CoinLoan, an Estonian startup, also launched a loan service, this time connecting users who wish to become either lenders or borrowers and securing the transaction between matching and agreeing participants.

Bitcoinist interviewed P2P lending platform INLOCK back in June 2018, to understand how its platform allowed cryptocurrency investors to continue to HODL while also unlocking their funds.

Further Expansion From Binance

Binance is quickly expanding its massive share of the cryptocurrency market. Business Korea this week reported the exchange plans to enter the South Korean cryptocurrency market.

Despite a rocky start to 2018 for cryptocurrencies, Binance is on track to make net profits of up to $1 billion dollars USD this year. The disclosed exchange confirmed profits of $300 million in the first six months of 2018.

The cryptocurrency-backed loans market could be enormous, given the market capitalization of cryptocurrencies, and the few barriers for borrowers who often don’t need to provide the credit history and earnings information conventional lenders require.

What is your opinion on cryptocurrency-backed borrowing?

Images Courtesy of Shutterstock

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Economic Change in Pakistan Could Increase Cryptocurrency Usage

As former cricketer-turned-politician Imran Khan prepares to take charge of Pakistan’s economy, some believe Pakistan is on the brink of an economic crisis. This crisis may increase the use of cryptocurrency in Pakistan.

Increase in Bitcoin Trading

According to Forbes reporting, citing figures from cryptocurrency trading platform LocalBitcoins, Bitcoin trading volumes in Pakistan are beginning to creep up.

Cryptocurrency markets as a whole are seeing an upturn, so the improved figures for Pakistan could also be a result of this increased market confidence, as well as the impact of financial uncertainty in Pakistan.

Economy on the Brink of Crisis

If Inram Khan can form a successful coalition government he will shortly become Prime Minister of Pakistan after leading his party, Pakistan Tehreek-e-Insaf (PTI), to victory. Khan has yet to reveal his economic policies but has committed to improving the economic climate as well as fighting corruption in Pakistan. Khan may be facing an economy in increasing trouble.

Gareth Leather, the senior Asia economist at Capital Economics, told Market Watch:

“Whichever party wins Pakistan’s upcoming general election will take over an economy on the brink of a balance of payments crisis. Growth is likely to slow sharply regardless of who wins Wednesday’s election.”

More difficult to Access U.S Dollars

In a move to prevent foreign-exchange reserves in Pakistan flowing out of the country, Bloomberg reports indicate that Pakistan’s central bank is making it more difficult for citizens to access U.S dollars. It’s actions like this, on centralized fiat currencies, which can also increase the popularity of decentralized cryptocurrencies that can enable fluid cross-border transactions.

Economic uncertainty in Iran, Greece, Venezuela, and other countries is also increasing regional interest as citizens look to retain the value and control of their assets. Iran is this week considering a state-backed cryptocurrency, following the example set by Venezuela with the “Petro” coin.

Pakistan advised its banks and financial institutions not to facilitate customers who transact with cryptocurrencies and ICO offerings in April 2018.

Considering the viewpoints of central banking institutions, a state-issued cryptocurrency is unlikely at this stage. But economic uncertainty and the recovery of cryptocurrency markets could well see cryptocurrency use increase in the country.

Do you think economic uncertainty increases cryptocurrency use? Let us know in the comments below.

Images courtesy of Shutterstock

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Approximately one out every four investors in the United States is intrigued by Bitcoin, but will not be buying the leading cryptocurrency anytime soon — according to a recent Gallup poll.

Early Days

The Wells Fargo/Gallup Investor and Retirement Optimism Index survey for the second quarter of 2018 was conducted online from May 7-14. It provided a snapshot of US investors’ interest in the dominant cryptocurrency.

The poll recognized investors as American adults that have invested at least $10,000 in stocks, bonds or mutual funds, either within or outside of a retirement savings account.

From the 1,921 investors surveyed, 26 percent confirmed interest in the digital currency — but say they will not be buying it in the short term. 72 percent of the group is entirely uninterested in buying bitcoin.

In terms of investors holding the cryptocurrency, only 2 percent of respondents said they actually own bitcoin — and less than 1 percent says it is interested in actually buying it in the short term.

3 percent of men and 1 percent of women from the survey said they own bitcoin while 3 percent of respondents aged 18 to 49 and 1 percent aged 50 and above have some bitcoin.

Limited Awareness

Figures from the Gallup poll also indicated that only 29 percent of respondents — or roughly 3 out of 10 investors — have some knowledge about cryptocurrencies. The remaining majority has heard about virtual currencies, but only has limited knowledge of them. 5 percent of investors surveyed have never heard of cryptocurrencies at all.

Across specific demographics, the level of appreciation for virtual currencies is still limited, but varies — with wealthy investors, men, and younger people demonstrating a greater knowledge of bitcoin. 39 percent of people with over $100,000 in investments know something about bitcoin versus the 25 percent with investments less than $100,000 who do.

48 percent of people aged 18 to 49 know something about bitcoin against the 22 percent aged 50 to 64 and the 16 percent who are 65 years and older.

Risk perception eats into bitcoin investment prospects

One very significant finding from the poll is that 75 percent of investors consider bitcoin to be a very risky investment. 23 percent view it as “somewhat risky” and only 2 percent say that it is not too risky.

The responses are likely informed by the massive volatility that affects the prices of bitcoin and other digital currencies. Various factors such as pending regulatory decisions and increased trading volumes in major markets have contributed to this.

The resulting price spikes and depressions have created mixed feelings among investors — particularly traditional, risk-averse punters. The potential risks of a sudden dip in the market value of virtual currencies outweighing any appetite in the massively lucrative segment.

As investors approach digital currencies carefully, it will be worth watching how sentiment shifts in the face of any steady rise in bitcoin and altcoin prices.

The recent resurgence in cryptocurrency prices is expected to hold for a while, with a steady growth anticipated in the medium to long-term. If that becomes the case, a followup poll could provide very different results.

What do you think will increase US investors’ appetite in bitcoin and other cryptocurrencies? Share your thoughts in the comments below!

Image courtesy of Shutterstock.

The post Early Adopters — Gallup Poll Reveals 2% of American Investors Own Bitcoin appeared first on Bitcoinist.com.

Japan’s self-regulatory exchange association may require members to set limits on maximum trading volumes for clients with “small assets.”

The Japan Virtual Currency Exchange Association (JVCEA) will obligate its member exchanges to place limits on the trading activity of some clients, Cointelegraph Japan reports today, July 28.

The self-regulatory body has reportedly established a policy of to require its member crypto exchanges to place maximum limits on the volumes traded by the exchanges’ customers.

The move reportedly aims to prevent investors with “small assets” from suffering heavy losses and facing problems with basic daily expenses. The report does not specifically define “small assets,” nor does it specify the exact limits to be placed.

According to the report, member crypto exchanges will be able to choose from two options for how they establish trading limits.

The first option proposes a universal ceiling that implies establishing one fixed maximum limit for all “small asset” traders. The second option suggests a more individual approach by setting different limits for different customers depending on various factors such as their investment experience, income, the value of their assets, and age.

The JVCEA has also reportedly suggested trading activity limitations for minors, requiring an adult’s confirmation as a measure against money laundering.

Earlier this week, the JVCEA announced its intentions to put limits on its member exchanges’ margin trading, reportedly with the same intention of preventing customers from significant losses caused by highly volatile crypto markets.

The JVCEA was formed in early March, with 16 crypto exchanges teaming up to develop and coordinate rules and policies for ensuring security standards for trading cryptocurrencies. The group’s formation came following the January hack of Japan-based crypto exchange Coincheck, with losses totalling more than $534 mln.

The association is reportedly set to regulate the market in conjunction with the local Financial Services Agency (FSA), which has been restructured recently in order improve its handling of fintech-related areas, including cryptocurrencies.

As interest in cryptocurrencies continues to grow, so too does interest in cryptocurrency mining. Unfortunately, there can be a significant learning curve involved. Comino aims to change that with their line of completely pre-assembled devices that work with plug-and-play simplicity. Bitcoinist recently sat down with Comino co-founder and CEO Evgeny Vlasov to learn more about these game-changing devices.

Bitcoinist: First and foremost, what sets your miners apart from the competition?

EV: First of all, we assemble the complete product and offer it as a plug and play device. No one on this market does complete devices with GPU cards inside. A couple of our competitors try to produce such devices, but they are really noisy and dusty. They can’t realistically be placed in a room at home. But our miners are absolutely adapted for home use. For example, it can be placed near your bed and it will be working noiselessly and dust-free. In the winter, it can be used as a heater as well.

Our products are completely plug-and-play — you just push one button and everything works: it mines cryptocurrency to your account. Our company creates everything for your wallets and infrastructure. Even if you know next to nothing about cryptocurrencies, everything will be working.

Our main goal is to produce devices with high-quality components. So we produce and assemble the devices, we develop software for these devices, and, of course, we provide a one-year warranty. In this market of miners with GPU cards, no one else provides such a warranty.

Comino mining devices

Bitcoinist: Right now, your miners specialize in mining Ethereum and ZCash — and only Ethereum and ZCash. Why is that, and do you have plans to release miners for other cryptocurrencies in the future?

EV: We made the decision to implement Ethereum and ZCash because these cryptocurrencies are the easiest and most profitable coins to mine with GPU cards. If you would like to get another cryptocurrency, you can just mine Ethereum and then exchange it into another currency. Nowadays there are many other coins, but they are not profitable enough, so there is no reason to implement them.

In the future, however, if we decide to implement another coin, that won’t be a problem. Right now, for example, we are experimenting with other coins, but we don’t currently provide the ability to switch to other coins to our clients.

Bitcoinist: You manufacture many of your parts yourself. What benefits does this provide to the quality of the miner?

EV: Yes, we manufacture almost all of the parts ourselves — only the GPU cards and motherboards are provided by the vendors. But we plan to customize them as well and we have already started production of customized GPU cards and motherboards.

Why do we do this? Because we investigated the market found that most components — even something as simple as wires — aren’t produced to given standards. For example, in China, they are produced using low-quality components. They don’t meet the standards at all.

From the very beginning, we wanted to create a top-quality device that will keep working for a long time. Wires, connectors, capacitors, risers, power supplies, and everything else should be of top quality. Our components allow us to produce a device that will keep working for years without any problems. Other devices on the market that we investigated typically aren’t able to serve you for even a year.

Bitcoinist: Liquid cooling is very much Comino’s ‘thing.’ Why are liquid cooling solutions superior to other methods of cooling?

EV: Liquid cooling is extremely effective for keeping chips cool. It is no secret that the temperature is one of the main problems plaguing miners — and actually the whole IT-infrastructure. If you use chips all day long — even overclocked 20 percent on top — it loads hundreds of percents each second and produces a lot of heat, and it should effectively take this heating away from the chips to make them work for a long period of time. Only liquid can solve this problem.

Of course, air cooling is cheaper, but it is not effective. If you use components just for gaming, it requires loading 100 percent for a short period of time — that is why it is appropriate to use air cooling inside desktops and on the common GPU cards. We use liquid cooling because we need to create really effective cooling for chips to make them work for a long period of time.

Besides, it is noiseless, there is no dust on the cards, so the costs for the maintenance will be less than for air cooling as well.

Bitcoinist: Comino also offers cloud mining services. Tell us a little about that. What are the benefits?

EV: Yes, we know that our infrastructure will be working for a long time, that is why we created our own data-center with a partner in Sweden and we use our devices to provide cloud mining services as well.

We realize that not everyone wants to mine from home. Some people might prefer cloud mining or even colocation, where they buy the device and then just pay a fee for maintenance and electricity costs, but the device is kept at our facility. Colocation and cloud mining are particularly popular in areas where electricity costs are higher. In Europe, the price for electricity is about 20 Euro cents per one kilowatt.

Bitcoinist: Can Comino miners be used for other purposes besides mining?

EV: Sure! Right now, all produced miners can be used for many purposes. First of all, for developing other software, like for the development of neural networks, artificial intelligence, and databases. From what I understand, it is very popular to use databases inside GPUs, because GPUs can perform tasks like transferring data, data reduction, and quarrying to big data very quickly. So, that is why it is used now for big data analysis and in-memory databases.

I heard that Alibaba recently bought one of the biggest GPU solutions for databases that is actually being used right now for data analysis. Besides, it can be used for smart contracts. So, yes, it can be used for many tasks.

Bitcoinist: Comino miners are definitely priced at a premium. What benefits does a potential customer get for splashing the cash?

EV: Firstly, this is plug and play device with top quality components inside that will be working for many years with a stable hash rate. As a result, it will mine more coins than common devices with the same hash rate. One can also use our device in the winter like a heater at home because it is really noiseless and there is no dust inside the cards. The components will be working longer than common components in common miners.

For example, you could buy a miner that costs half of what one of our miners costs, but you would need five such miners to produce the same income in coins and, most likely, they will not be working in five years’ time. Or you could buy just one of our devices, which will be working for many years with a stable hash rate. The pool will get more rewards because it will rate your working process higher.

It is also an impressive looking device, not an eyesore like other devices. It looks fantastic, works great, and is made with top quality components. We often compare it to Apple’s devices — they are more expensive, but you get the desired infrastructure as a result. The quality is worth the price.

Bitcoinist: What markets has Comino found the most success in so far?

EV: Right now we are focused on the B2B market, specifically big data-centers and larger enterprise clients. For these customers, we offer the Comino Grando, which we introduced this summer at the Taipei exhibition. It is our solution for the B2B marketplace and is ideal for big data-centers.

With the Comino Grando, we can recycle energy and recycle heating for other purposes, like warming liquid or warming houses. PUE (Power Usage Effectiveness) for this solution is really low at just about 1.05. That means that just five percent of the unit’s power consumption will be spent on the cooling of your IT-infrastructure. It is really a fantastic solution for the B2B market.

We will also be producing the Comino N1 and Comino N4 versions for the retail market as well.

Bitcoinist: What are your opinions on the current cryptocurrency market?

EV: Right now, the cryptocurrency market is growing really fast. In terms of cryptocurrencies’ exchange rate into fiat, it can go down, it can go up, it doesn’t matter. To my mind, the infrastructure that supports cryptocurrencies is rapidly growing. New wallets appear, new exchange markets, other software, a lot of things are being done for cryptocurrencies. People are beginning to use it more and more for many purposes: for buying goods and services, for transferring money between parties, and so on.

So the cryptocurrency infrastructure is growing really fast. And some solution should support this infrastructure and, of course, it is miners, which can support it. For them, we are doing really effective solutions, because just energy effective solution should be working for sucha big market.

Bitcoinist: Where do you see the blockchain industry in 5 years?

EV: I see that blockchain is used very widely on the market and many industries have started already using blockchain. And also I can see that some industries are trying to use blockchain, but they don’t need it at all. Nevertheless, in many cases, the industries are using it for the right purposes. It is really important that blockchain is used a lot.

I see fantastic demand on blockchain developers and in 5 years it will be in school programs.

Bitcoin is like a big game where we need to find all the blocks. And the whole world is playing this game. I know some really useful projects are being done on the basis of the blockchain. They are supposed to start working this or the next year. It will let Bitcoin grow more.

New coins are being developed that solved many current troubles. In 5 years it will be a matter of 10 minutes to start your own coin. Many countries will be using blockchain to solve red-tape problems.

Actually, it is hard to make predictions for such a period of time. Just 2 years, ago Ethereum appeared (initial release was on 30 July 2015) and right now it is the second most valuable cryptocurrency in the world. In five years, of course, there will be other solutions as well. There will be more and more blockchains, which will be evaluated from current state into another and there will solve many troubles with transactions and so on.

There will be, of course, a time when the costs for small transactions will be really low, and for the big transactions it will be the same — like it is right now, just to filter spam transactions.

Another solution will be found to make it resistant to hacker attacks, and people will sign petitions for making cryptocurrencies work on the country level. So, blockchain and cryptocurrencies will be used a lot. For saving the story of us as well.

Bitcoinist: What excites you the most about making Comino miners?

EV: One thing that excites me the most is that we are producing a green solution — we are trying to save energy and save our planet from ineffective IT-solutions. Miners right now are just wasting energy, which is harmful to our planet. We are producing a new generation of IT-infrastructure which will be extremely effective as well as be more environmentally friendly.

I always wanted to produce something, some technology, that I can touch with my hands, so that is really impressive and important to me.

And, of course, I am really proud, that we have a big international company with offices in many countries, including Germany, Sweden, Latvia, China, Russia, and Cyprus.

Do you have additional questions for Evgeny Vlasov? Ask them in the comments below!

Images courtesy of Comino.

The post Comino Brings Plug-and-Play Simplicity to Cryptocurrency Mining [Interview] appeared first on Bitcoinist.com.

New Gallup poll finds most U.S. investors will not be investing in the cryptocurrency any time soon, though there is still interest.

The results of a Wells Fargo/Gallup poll published July 27 finds that only two percent of U.S. investors own Bitcoin, but 26 percent are intrigued by it.

The online survey was conducted May 7-14, 2018 amongst U.S. investors with more than $10,000 in stocks, bonds or mutual funds. The results show that the overwhelming majority of investors who have already heard of Bitcoin will not be investing in the leading cryptocurrency any time soon, with 72 percent saying they “have no interest in ever buying Bitcoin.”

According to the data from the poll, even though 96 percent of investors had heard of Bitcoin, “only about three in 10 investors (29%) say they know something about digital currencies,” with 67 percent saying they have heard of them but don’t know much about them.

Even though the initial intention behind Bitcoin involves its use as a means of payment, or “electronic cash”, it’s high volatility has made it “more popular as a high-risk/high-reward investment than as an online currency — although acceptance of Bitcoin for electronic payments is growing.” The results of the survey show that 75 percent of respondents view an investment in Bitcoin to be “very risky,” with 23 percent saying it was “somewhat risky.”

The statistics on gender and age show that young men are the most likely demographic to “say they know something about bitcoin or other digital currencies.” The report also states that “[r]elated to the age differences, investors with less than $100,000 in investments (who tend to be younger) are more likely to be familiar with the innovation than those with higher asset levels.”

A study on Americans and cryptocurrencies commissioned by Finder.com in February showed that 8 percent, or around 26 mln, of Americans have already purchased cryptocurrency.

A recent report on the top ten crypto projects that raised a minimum of $1 million in 2017 revealed that on average each showed a return on investment of over 136,000 percent.

The crypto industry’s go-to messenger app Telegram launches an encrypted personal identification tool, Telegram Passport.

The crypto and blockchain industry’s go-to encrypted messenger app Telegram has released a personal identification authorization tool, according to an official statement published July 26.

The tool, dubbed Telegram Passport, reportedly encrypts a user’s personal ID information and let’s users securely share their ID data with third parties, which the Telegram post elaborates on as “finance, ICOs, etc.”

According to the post, users’ ID data will currently be stored on the Telegram cloud, but “In the future, all Telegram Passport data will move to a decentralized cloud.”

The new tool is currently integrated with digital payment operator ePayments, which Telegram refers to in their post as the “first electronic payments system to support registration and verification” via the new tool. EPayments confirmed the integration on its Telegram channel, noting that “verification can be achieved in just a few clicks.”

Recently, CEO and founder of Telegram Pavel Durov was featured in Fortune’s “40 Under 40” annual rankings as one of the most prominent disruptors of global business. Before creating Telegram, Durov founded social media website VK.com.

This March, Telegram completed two $850 million closed funding rounds via the sale of the platform’s pending cryptocurrency TON, bringing its total funding to $1.7 billion. In late May Telegram’s plans to launch a public ICO were been reportedly disrupted due to the fact that the company had raised enough money via the two private ICO rounds.

Launched in 2011, ePayments says it provides payment services to more than 500,000 freelance customers and 1,000 companies worldwide. The London-based digital payment service supports transactions in cryptocurrencies, such as Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), Litecoin (LTC) and others.

This week Tokyo-headquartered tech conglomerate Hitachi and telecoms giant KDDI announced the trial of a retail coupon settlement system using blockchain technology to authenticate biometric data.

Child-actor, serial-entrepreneur, pre-YouTube content creator, MMORPG milker, early bitcoin adopter, and co-creator of two of the top ten cryptocurrencies — number-9 on Forbes’ Richest People in Crypto is donating his entire $1 billion fortune to rebuild Puerto Rico into Cryptopia. Welcome to the weird world of Brock Pierce.

Character Profile

It’s fair to say that cryptocurrency has its share of colorful characters — from the seemingly ever-present crypto-jester John McAfee to the almost never-present anarchist hacker Amir Taaki.

It also isn’t rare to hear of former child actors falling from grace in the pursuit of one demon or another. Brock Pierce may be the result when that pursuit ends up leading to a budding cryptocurrency called bitcoin.

All of 5′ 4″ in a cowboy hat, carrying a satchel full of botanical ‘remedies,’ he might not be what you’d expect from the chairman of the Bitcoin Foundation. But he has also been on the founding teams of Blockchain Capital, DNA, the first ever ICO, and cryptocurrencies EOS and Tether.

NeuCoin Brock Pierce

An Origin Story

Pierce’s first memory is of being on set at age three and a half. He was raised in Minnesota and got his big break at age 12 when he played a younger version of Emilio Estevez’ character in Mighty Ducks. Four years later, he had his first starring role in First Kid — but then quit the business before the movie was released in 1996.

Finding normal childhood impossible, he was introduced to an internet entrepreneur named Marc Collins-Rector. Twenty years his senior, Collins-Rector made a 16-year-olf Pierce executive vice president of his entertainment company.

His next business venture was trading in-game items from online games for real money. This led to an alleged 400,000 people playing video-games professionally for him, and a seven-year stint with Steve Bannon as his ‘right-hand man’.

And that’s when he discovered Bitcoin.

Character Assassination

It will probably come as no great surprise to find out that Marc Collins-Rector was a sexual predator. Surrounding himself with teenaged boys and giving them vast fortunes and chunks of his company wasn’t entirely kosher.

Pierce was himself entangled in the litigation surrounding this, although all cases against him were either dropped or settled. Last Week Tonight‘s John Oliver alluded to this scandal in a recent piece on cryptocurrency.

Brock Pierce

Lights, Camera, Action

Pierce’s path from crypto-convert to evangelist to guru has elements similar to those of other early adopters. There is the obligatory ‘50,000 bitcoin on a thrown out hard drive’ anecdote. He would give away bitcoins to everyone he could until he realized that “no one appreciated it, then they lost it, and it was a waste of my [****ing] time.”

Where it may differ is in that he claims to not actually do very much. He is clearly a facilitator and a bringer together of people, but as he says:

I don’t really have to do much other than show up, and then tell a few of these stories that are inspiring

By all accounts, he is a force of nature. A whirl of endless energy, putting as much into his partying as his business ventures. A laid-back hippy who oversees the creation of these enterprises and then steps back and lets them fly.

Puerto Rico, La-la-land

Sol/Crypto Rico/Puertopia

Pierce is not the first crypto-billionaire attracted to Puerto Rico by its reputation as a tax haven — but his motivation is perhaps slightly different from most.

Realizing the potential colonialist nature of rich white men buying up a tax haven, he has rallied against it. Pierce’s vision is to use the money saved from the IRS, Robin Hood-style, to rebuild a Puerto Rico still recovering from a debt crisis and recent hurricane. He wants to develop the west of the island, rather than risk the gentrification of the capital and the pricing out of locals who have spent their entire lives there.

His plan is to start a charity crypto-currency and invest his entire $1 billion fortune into it, hopefully encouraging others to follow suit. Certainly, his approach seems to be a more acceptable outcome of the current influx of billionaires — having won over local NGOs who were previously concerned that their island would be portioned off and sold for profit. Whether he succeeds in this venture or not, it is certainly worth keeping an eye on what he does next.

It should come as no surprise to discover that Brock Pierce’s marriage to Sensay CEO Crystal Rose is by smart-contract, which can be dissolved, changed, or renewed annually. Brock Pierce is a true crypto-pioneer.

What do you think of Brock Pierce and his plans for Cryptopia? Let us know in the comments below!

Images courtesy of Shutterstock, Bitcoinist archives.

[Disclaimer: The contents of this article and any opinions contained within are solely that of the author, and do not necessarily reflect those of Bitcoinist.]

The post Profiles in Crypto-Awesome: Brock Pierce appeared first on Bitcoinist.com.

DMG Blockchain Solutions Inc. recently said they began installation of a new electrical transformer and power substation in order to increase mining operations. DMG is a diversified blockchain and cryptocurrency company that works on end-to-end solutions to monetize blockchain’s ecosystem.

DMG Blockchain Solutions Inc. (DMG) announced the kick-off for installation of an 85-megawatt capacity transformer and an electrical substation to help fuel the expansion of their flagship virtual currency mining facility in Canada.

The company’s cryptocurrency mining facilities are used for in-house operations and for clients engaged in Mining-as-a-Service (MaaS). DMG says this hybrid model allows them to scale mining endeavors faster than a pure mining model.

Great Optimism For The Future

According to DMG, the new substation will be connected to the power grid and is set to reach full operation by September 2018. The company says the new infrastructure will increase hosting capability by at least 20 times and will make the flagship mining facility one of the largest on the continent.

DMG COO Sheldon Bennett noted how creating and managing an industrial scale crypto mining operation requires a variety of resources and strong connections with local authorities but said

“Our management team at DMG is unique in that we have the experience, the relationships, and the capital backing to do this successfully.”

Steven Eliscu, Executive Vice President for Corporate Development pointed out how the company’s “leading-edge mining equipment and access to low-cost power” gives him great optimism for DMG’s future.

Aside from mining, DMG is also focused on building a platform to ensure “complete provenance of controlled products” through the supply chain, and performs investigations related to KYC (Know your Customer) and AML (Anti-money laundering) requirements.

DMG’s website says they are looking to become “domain experts” in a variety of fields, including agriculture, energy, precious metals, financial services, and manufacturing.

A False Energy Crisis?

Many in the cryptocurrency community have conveyed trepidation about the often large amounts of electricity used for mining.

Some experts in Iceland expressed worry earlier in the year about the number of miners who were flocking to the island nation to set up shop. They thought the industry’s energy demand would rise so high that power companies would not be able to keep up.

Other places across the world have seemingly taken matters into their own hands. In mid-July, local media in Quebec said the providence’s energy distributor was given permission to raise rates for blockchain-based companies and miners.

Around the same time, New York’s Public Service Commission approved new utility rates for cryptocurrency miners under the Massena Electric Department. The new regulations were designed to protect other customers and attempt to steer miners away from upstate New York.

Green Mining

Faced with rising mining costs, some companies have just decided to build bigger power facilities. Brookstone Partners recently announced plans for a 900-megawatt wind farm on a remote edge of the Sahara Desert.

However, some believe Bitcoin mining might not be as energy-consumptive as portrayed to be. Jonathan Koomey of Stanford thinks “we don’t have adequate data” to come to strong conclusions about how much electricity Bitcoin mining really eats up since miners are using customized mining machines that are a lot harder to track than standard servers.

Do you think cryptocurrency mining is (or will) lead to energy crises in the future? Let us know in the comments below.

Images courtesy of DMG Blockchain, Bitcoinist Archives

The post DMG’s New Crypto Mining Facility Will Be One of the Largest in North America appeared first on Bitcoinist.com.