Tag Archives: #cryptocurrencies

EU-level regulation for cryptocurrencies and ICO market may send Bitcoin and other coins to fresh lows

EU-level regulation for cryptocurrencies and ICO market may send Bitcoin and other coins to fresh lows

  • EU finance ministers call for crypto and ICO regulation on EU level.

  • Brussels-based Bruegel suggests tighter regulation or even ban.

 

The Brussels-based think tank Bruegel prepared a document for EU finance ministers with the aim to promote EU-level regulation of digital assets and initial coin offerings, according to Reuters. It is supposed to be discussed by the ministers on Friday during their meeting in Vienna.

 

EU authorities have been making noises about risks related to highly volatile crypto market, prone to scams and vulnerable to hack attacks. However, they avoided comprehensive regulation due to the small size of the segment, but the growing popularity of digital assets in the European countries might force them to change their mind.

 

"Now the possible expansion of the crypto exchange business in Europe and considerable interest in ICOs in EU countries, which account for 30 percent of the global market in terms of projects funded, is pushing regulators to take a closer look," Reuters reports.

 

Malta, for example, strives to create a favorable regulatory environment for blockchain projects in hopes that they will support the economic development. The efforts of the Maltese was rewarded as many companies including Hong Kong-based Binance, one of the world’s largest crypto exchanges, flocked to Malta.

 

 

According to Bruegel, the authorities should focus on regulating or even banning entities that deal with cryptocurrencies and tokens. The think-tank noted the restrictive Chinese approach towards the industry.

 

Tanya Abrosimova

FXStreet

Alan Zibluk Markethive Founding Member

Bitcoin Price Soars Toward $1,275 in 45-Day High

Bitcoin Price Soars Toward $1,275 in 45-Day High

Bitcoin price is pushing on with its bullish gains as the cryptocurrency continues to reach the dizzying heights scaled in early March during the lead-up the SEC decision of the Winklevoss bitcoin electronic traded fund (ETF).

It has been a month of continuing gains with a positive trend for the world’s most prominent cryptocurrency. Having started April at $1,068 on the Bitstamp Price Index (BPI), today’s trading shows price reach a high of $1,274. Bitcoin has now gained nearly 20% in value since the turn of April.

BPI data reveals trading on Monday begain at $1,241 and a sustained trading period has seen an upward climb for the value of the cryptocurrency. Bitcoin prices were hovering above $1,250 at the start of Tuesday (midnight UTC) into the early hours of the day. At 07:30, a surge spurred prices from $1,252 to $1,260 in a 2-hour period. A more notable spike followed in the next 2-hour period as price pushed upwards of $1,270 to peak at $1,274 at midday.

 

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At the time of publishing, bitcoin price has trailed off slightly with bitcoin trading to the dollar at $1,266 on the BPI.

Global average prices, according to data from BitcoinAverage shows prices at $1,271.97 at the time of publishing, with a day’s high of $1,275.

April has played host to a number of positive developments for the bitcoin adoption. The cryptocurrency saw acceptance as a legal method of payment in Japan on the very first day. It was soon revealed that large retailers were working alongside bitcoin companies to enable as many as 260,000 Japanese storefronts to begin accepting bitcoin by this summer.

Elsewhere, Russia and India have both begun acknowledging bitcoin at an early stage. Whispers from Russia, in particular, are pointing toward the possible recognition and regulation of bitcoin in 2018, in a country that previously debated imprisoning bitcoin adopters less than a year ago.

A committee put to task by the Indian government is rumored to recommend the approval of bitcoin as a legal instrument in the country, with proposed regulation and taxation.

Bitcoin’s total market capitalization is back above $20 billion, according to CoinMarketCap.

For a live BTC Price chart, click here.

All time references are in Coordinated Universal Time (UTC).

Featured image from Shutterstock. Chart from BitcoinWisdom.

Chris Corey CMO MarketHive Inc

Samburaj Das on 25/04/2017

Alan Zibluk Market Hive Founding Member

Cryptocurrency Inflation vs Deflation

Cryptocurrency Inflation vs Deflation

 
 
 
 

In the world of cryptocurrency, there are two main types of ecosystems. Either a cryptocurrency is inflationary – with new coins generated by mining or staking – or it is deflationary. A lot of people claim bitcoin’s deflationary status is a problem, and how minor inflation could alleviate these concerns. However, there are different aspects of either concept that need to be taken into account first.

2. DEFLATION

Most cryptocurrency enthusiasts are well aware of how bitcoin has a fixed supply cap of 21 million coins. It is expected the last bitcoin will be mined around the year 2140, even though a large portion of the available supply is in circulation already. Some financial experts claim bitcoin’s capped coin supply is a problem, as it makes the popular cryptocurrency deflationary. Since no additional coins will be brought into circulation from that point forward, there will be no more inflation for bitcoin.

Deflation in the traditional financial ecosystem is a bad thing. Then again, cryptocurrencies such as bitcoin cannot be compared to any other currency in the world, thus making it a rather moot point. It is also a  clear indication of how most economists are stuck in their old ways of thinking. Deflation is often associated with economies that not performing all that well. In most cases, deflation leads to falling prices. If that were to happen to bitcoin, things could go from bad to worse rather quickly.

 

One thing to keep in mind is how during times of financial hardship, consumers are not investing but flocking to liquid currency. For bitcoin, that could be a good thing, as it may even lead to future prosperity. From a long-term perspective, deflationary currencies are by far the better option. In bitcoin’s case, deflation will – probably – cause a rise in value. There is no real reason to think deflation is bad for bitcoin by any means.

1. INFLATION

Every major traditional currency known to man is inflationary. There is no hard limit as to how many US Dollars, Euros, or Pounds Sterling there can be at any given time. Central banks can use a technique called “helicopter money” to introduce more bills and coins to an ecosystem if they see the need to do so. With more money to go around, they hope to improve the financial situation for their specific region.

Inflation also has a nasty side effect that most people tend to overlook. As the supply of an available currency continues to grow, it makes the previously existing supply worth a bit less. In the world of cryptocurrency, there are two types of inflation: proof-of-work and proof-of-stake. The first option makes bitcoin an inflationary currency until all 21 million BTC have been generated. Proof-of-stake allows for a virtually unlimited coin supply even when there are no longer mining rewards to be distributed.

Although a lot of people see no harm in inflationary cryptocurrencies, it provides a bit of a problem when it comes to estimating a coin’s value. Since there are more coins every day, inflationary cryptocurrencies cannot be labeled as a store of value per se. Interestingly enough, some of the major cryptocurrencies have decided to take the inflationary approach, including Ethereum – switching to proof-of-stake soon – and Dash. Other currencies, such as Litecoin, have taken the same model as bitcoin, effectively limiting their supply. From a store of value point-of-view, deflationary cryptocurrencies are the better option, by the look of things.

Chris Corey CMO MarketHive Inc

April 25, 2017

 

Alan Zibluk Market Hive Founding Member