Tag: Bitcoin

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Google AI Briefly Describes Bitcoin As A Bubble

While there is no doubt that those who invested in late 2017 have lost the majority of their investment in BItcoin, it appears as though Google’s “AI” briefly described Bitcoin as a “collapsed bubble”.

It’s important to note that Google doesn’t utilize full-fledged artificial intelligence, but a search algorithm that picks up relevant information from all sorts of websites that have high “search rankings”. It is clear that the description occurred because of a Wikipedia edit.

Wikipedia Dispute

Specifically, a user by the name of “Smallbones” edited the description on December 12, to describe Bitcoin as a “collapsed economic bubble”. The edit led to a dispute between Wikipedia editors, where a fellow editor claimed that “Smallbones” was clearly biased against Bitcoin, and was utilizing the openly edited free encyclopedia to declare his own opinions about the digital asset.

A user named Bradv pushed back, elaborating about “Smallbones”: “This edit is inappropriate for any number of reasons, but especially because of Smallbones’ clear point of view expressed at [Jimmy Wales’ (Wikipedia founder) talk page]. I suggest that Smallbones is no longer qualified to edit the article, as their edits are clearly soapboxing.”

The matter has since been settled, since most editors sided with the “Bradv” user.

Google’s Importance

Google has consistently handled over 90% of market share when it comes to internet searches for years now, so it is virtually impossible to overstate its importance with regards to public perception.

Some have argued that Google has already affected the cryptocurrency markets by banning ads related to cryptocurrency, even though it ended up reversing that decision several months ago in September 2018.

Although the matter was resolved – it is also important to note that Google previously took a jab at cryptocurrency in an advertisement for the Pixel 3 phone, pointing out that it used a considerable amount of energy and one individual in the advertisement claiming that cryptocurrency “isn’t real”:

https://www.youtube.com/watch?v=O4jOdVTkqS4

 

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Influential Cypherpunk Passes Away At Age 67

Those who truly understand cryptocurrency history know that the cryptocurrency world owes a lot to the cypherpunk movement, a technologist movement that advocated for privacy and cryptography throughout the 1980s and 1990s in order to redefine the way that human beings, organizations, and institutions interact with each other.

There are three individuals that are widely considered “godfathers” of this movement: Timothy May, Eric Hughes, and John Gilmore. Unfortunately, one of the founders of this movement, Timothy May, has passed away at the age of 67.

The Crypto Manifesto

Timothy May is most famous as the author of The Crypto Manifesto, which many have praised as incredibly ahead of its time, in that it describes how technology would eventually transform the world as we know it, and the way that human beings interact with each other.

Specifically, May stated, in The Crypto Manifesto: “Computer technology is on the verge of providing the ability for individuals and groups to communicate and interact with each other in a totally anonymous manner. Two persons may exchange messages, conduct business, and negotiate electronic contracts without ever knowing the True Name, or legal identity, of the other. Interactions over networks will be untraceable, via extensive re- routing of encrypted packets and tamper-proof boxes which implement cryptographic protocols with nearly perfect assurance against any tampering.

He continued: “Reputations will be of central importance, far more important in dealings than even the credit ratings of today. These developments will alter completely the nature of government regulation, the ability to tax and control economic interactions, the ability to keep information secret, and will even alter the nature of trust and reputation.”

Many have pointed out that, in this manner, Mr. May essentially predicted the rise of Bitcoin.

Praises and Condolences

Influential cryptocurrency figures were quick to offer their condolences for May, given the fact that he is considered a forefather for the cryptocurrency world as we know it. For example, Vitalik Buterin, one of the most respected individuals in the sector, and the co-founder of Ethereum, took to Twitter to offer his condolences:

Nick Szabo, a well-known computer scientist and cryptographer who some believe is actually the real Satoshi Nakomoto – the creator of Bitcoin – also offered his condolences. He stated that May was his “chief cypherpunk inspiration”, and that his vision was “of a cyberspace free from government oppression.” He ended the tweet by stating that May will be missed greatly.

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Coinbase Supports Syrian Refugees In Greece With Bitcoin (BTC)

Coinbase is still going strong with its “12 Days of Coinbase”, a twist on the popular refrain and song, “12 Days Of Christmas”. It appears as though this is another announcement in conjunction with GiveCrypto, a nonprofit that seeks to distribute cryptocurrency to those in need as quickly and efficiently as possible.

How It Works

This time, Coinbase will supporting a new project that provides a basic income to over 150 Syrians that are currently living in Greece. The official gift given to the organization from Coinbase is $10,000 in Bitcoin (BTC).

The business model is quite innovative. GiveCrypto has partnered with Sempo. Sempo and GiveCrypto have an established network of vendors that are willing to provide fiat money in exchange for cryptocurrency. As a result, cryptocurrency is the “bridge” for the donations in the local communities. The business model has already been implemented previously in Beirut and Kurdistan, as well.

Quite A Statement

Coinbase certainly did not have to make the political statement of supporting Syrian refugees. The company is one of the most well-known companies in the cryptocurrency space, and the issue is controversial, with over 30 governors of the United States claiming that Syrian refugees were not welcome in their specific states.

A recent video of a 15 year-old Syrian refugee by the name of Jamal being attacked in the UK has gone viral and made headlines internationally, underscoring the idea that Europe is becoming more “far-right” in nature with regards to the refugee crisis.

Internationally known street artist Banksy has previously pointed out that Steve Jobs was the son of a Syrian migrant, and depicted this point in his art years ago in his own commentary of the Syrian refugee crisis. He stated: “We’re often led to believe migration is a drain on the country’s resources but Steve Jobs was the son of a Syrian migrant,” Banksy wrote. “Apple is the world’s most profitable company, it pays over $7 billion a year in taxes –- and it only exists because they allowed in a young man from Homs.”

This marks Coinbase’s sixth announcement in the “12 Days of Coinbase” series.

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Teenage Bitcoin (BTC) Millionaire Not So Bullish

Erik Finman is one of the most famous rags-to-riches stories in Bitcoin history, and it might be because of his age. Specifically, Mr. Finman used a gift from his grandmother to begin purchasing Bitcoin, beginning in 2011.

 

This means that Finman was purchasing Bitcoin since he was 12, and was able to turn $1,000 into much more. In fact, during the infamous cryptocurrency bull run of 2017, Finman was worth millions – not bad for a young man who still cannot legally drink (The legal drinking age in the United States is 21).

Is It Over?

While Finman was clearly a young adopter of Bitcoin that truly saw its potential, it appears that he has completely changed his tune about the cryptocurrency markets. He states simply: “Bitcoin is pretty much dead”, in a recent interview.

Mr. Finman believes that there is far too much discord and chaos in the cryptocurrency community. He elaborated: “Bitcoin is dead, it’s too fragmented, there’s tons of infighting. I just don’t think it will last. It may have a bull market or two left in it, but long-term, it’s dead.”

In January, CNBC confirmed that FInman owned 401 Bitcoin, although his current holdings are unclear. Ironically, during that time, he seemed to argue against critics of Bitcoin, stating: “Bitcoin is just as real as fiat money, except Bitcoin can’t be printed endlessly.”

Quite The Ego

While Finman is a young man, many have pointed out that he appears to be quite egotistical. For example, in his article in The Guardian, the featured image shows Erik on the floor with cash in his mouth, and all around him. The article also points out that he is constantly flaunting his wealth on his Instagram page, as well.

Finman claims that this is all strategic. He states: “I think being a provocateur is a fun way to get people to pay attention to my ideas,” he tells me over the phone from his current base in San Francisco. “You see the reaction to it, people go crazy. But that helps draw attention to the actual world-changing projects that I want to do.”

Finman, unlike other cryptocurrency enthusiasts, also has the distinction of being verified on the Twitter platform. In a recent tweet, Finman points out that he has no loyalty to Wall Street, and that he had actually been successful with his Bitcoin investments, so his statements should be taken seriously:

https://twitter.com/erikfinman/status/1073672466793402368

 

He also elaborated about specific cryptocurrency projects, stating that he believed Ether and ZCash had potential, but were not being marketed properly. One project he criticized specifically, however, was Litecoin.

Finman said: “Litecoin has been dead for a while,” he said. “It’s like when the sun is going down and there’s that eight minute period just before it goes dark. Litecoin is in its seventh minute.”

 

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President Trump’s New Chief Of Staff Loves Bitcoin (BTC) and Blockchain

President Donald Trump of the United States has a tradition of making big announcements on the social media platform Twitter, and that certainly doesn’t seem to be changing, as he named Budget Director Mick Mulvaney as his acting chief of staff. Mulvaney will replace John Kelly as chief of staff, and Trump praised both of them in the announcement on Twitter. He called Kelly a “great patriot” while also stating that Mick Mulvaney had done an “outstanding job”. You can find the tweets from the president below:

 

 

Not The First Choice

It’s interesting to note that the White House has clearly been trying to replace John Kelly with various candidates that appear to have turned it down. There has reportedly been tension between Kelly and Trump for some time now.

However, it appears as though many established politicians turned down the job both publicly and privately when they were named as possible contenders for the job. For example, Rick Santorum, a former U.S. senator who previously ran for president, turned down the job on CNN. Chris Christie, the former governor of New Jersey who many believe was snubbed by President Trump once the president was elected, also declared that he is not currently interested, as reported by New York Times’ Maggie Haberman on Twitter:

 

Mulvaney: Proponent of Bitcoin

Interestingly enough, Mulvaney, who is currently the director of the U.S. Office of Management and Budget (OMB), has previously spearheaded the Blockchain Caucus. For those who are unaware, the Blockchain Caucus was created in early 2017 to come up with potential policy reform with regards to blockchain.

Mulvaney was replaced around the time that it was clear that he would he heading the OMB office by U.S. Representative David Schweikert. Mulvaney has previously stated about blockchain technology: “Blockchain technology has the potential to revolutionize the financial services industry, the U.S. economy and the delivery of government services, and I am proud to be involved with this initiative,” Mulvaney previously stated.

It is important to note that Mulvaney has been named chief of staff in a temporary capacity, and has not stepped down as the director of the OMB. Regardless, the chief of staff role does require fulfilling a variety of critical functions with regards to the office of President Trump, and time will tell whether Mulvaney’s new role will potentially mean some great news for the United States and cryptocurrency/blockchain regulation.

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Tom Lee Thinks Market Is Wrong About Bitcoin (BTC)

It appears as though Tom Lee is trying to explain why his Bitcoin (BTC) predictions haven’t exactly worked out, considering that there isn’t much time left before 2018 is over and his predictions have not come to fruition.

For those who might be unaware, Lee had stated confidently that Bitcoin would hit $25,000 before the end of 2018. The prediction has proven to be way off, considering that BTC – as of press time – is valued at a price of $3317 each.

Damage Control

The two catalysts that Lee had previously believed would drive Bitcoin’s price up was the fact that the Bakkt platform would be launched, which he believed would lead to increased institutional money flow into the cryptocurrency markets. He also believed that the fact that Bitcoin had held the key “breakeven” point of $6,000 was significant.

However, Bitcoin has since broken the support level at 6,000. Not too long ago, Lee appeared to understand that he would be criticized for how off his predictions were, which is why he slashed his year-end forecast by almost 50%, stating that although Bitcoin wouldn’t reach $25,000, it would reach $15,000.

Is The Market Wrong?

Tom Lee is the co-founder and head of research at Fundstrat Global Advisors and is widely considered a permabull, meaning that he is always bullish on Bitcoin no matter what. However, many have pointed out that this hurtful to the markets, as investors who might invest in the markets begin to view Lee with less credibility as his predictions often end up being invalid.

In a note circulated to his investors, Lee blamed the price of Bitcoin on an “overall downtrend” in the global economy, and stated that the ICO sector is largely to blame for its price, as well. He is adamant about the fact that the market is not reflecting Bitcoin’s “fair value”, which he believes to be between $13,800 and $14,800.

He states: “Fair value is significantly higher than the current price of Bitcoin. In fact, working backwards, to solve for the current price of Bitcoin, this implies crypto wallets should fall to 17 million from 50 million currently.”

 

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Shakepay Allows Users To Purchase Fractions Of Bitcoin (BTC)

Shakepay is a Montreal-based fintech technology established in 2015 that has allowed Canadians to purchase and sell Bitcoin quickly and efficiently. The company has been quite successful, as it has now serviced tens of thousands of customers and also processed over $30 million since the company was founded.

Change To Crypto

The company is now rolling out a new feature that is sure to excite cryptocurrency enthusiasts. Shakepay now offers Shakepay Change, which allows users to use their leftover change in order to purchase Bitcoin. Here’s how it works: the user links a debit card to their Shakepay account. The next time a purchase is made, the application rounds up to the nearest dollar, and the resulting change is used to purchase fractions of BTC. The BTC is then added to the Shakepay wallet.

This might sound familiar to some, as it was the basis of the successful company Acorns, which launched in 2014 and subsequently became a big hit with millennials. In fact, Acorns has such a dedicated user base that it is now reportedly valued at $700 million, and has over $1 billion in management.

Competition

Shakepay is not the only service offering this, however, and notable competitors include CoinFlash, which allows users to round up to purchase BTC, but also allows the option to purchase Ethereum (ETH), as well.

Another company, Lawnmower, was offering the service, but it appears to have discontinued the series in March 2016. The bitcoin news website Coindesk ended up acquiring Lawnmower in early 2017.

The CEO of Shakepay, Jean Amiouny, offered this statement:

Following Bitcoin, the entire suite of financial services is being rebuilt independently from the current financial infrastructure. We believe enabling access to these services is paramount to the creation of wealth and economic freedom.”

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Crypto Lending Coming To Australia

There have been many individuals in the cryptocurrency space that have pointed out how blockchain technology can revolutionize the global payment sector for several reasons. For example, money can be sent and settled in real-time, which means that the receiving party does not have to wait days to receive the money. In addition, the recipient can also receive more money, because cryptocurrency does not utilize the exorbitant fees that traditional financial institutions, such as banks, do.

Lending and Blockchain

It also follows naturally that blockchain could potentially revolutionize the lending sector, as well, as loans would be cheaper to issue, and blockchain might be able to offer more transparency. In addition, blockchain and its immutable nature makes it more secure, which would mean that less forgery would be possible.

One company that has championed the idea of cryptocurrency lending and has gained traction the last year is Melbourne-based Helio Lending, a company that is actually a licensed and regulated cryptocurrency lender.

Crypto As Collateral

The idea of crypto lending is unique in particular because it would allow customers to actually access fiat funds without touching their digital assets. For those who truly believe in their cryptocurrency investments, this could be extremely appealing. For example, those who have been long-term holders of Bitcoin and accumulated years ago, can leverage their Bitcoin holdings and gain access to cash. The company claims to offer 50% more spending power to customers than they would by simply holding onto their crypto assets.

Founder John O’Shea had this to say about the untapped potential of the market: “Currently there are only two or three providers globally, and we are excited to offer such an exciting service acting as a direct lender, with a quick and seamless process and exceptional customer service.”

In a separate interview, O’Shea stated: “We provide finance to both individuals and businesses through cryptocurrency asset-backed lending. This means that clients who hold Bitcoin, Ethereum, Litecoin, or Ripple can use their assets as collateral for loan financing.”

Location, Location, Location

Helio Lending is smart to be exploring the Australian market, in particular. A recent survey indicates some astonishing information about 2018 and the Australian interest in cryptocurrency. Apparently, a brokerage firm by the name of Hivex surveyed thousands of respondents and found that the number of Australians that hold cryptocurrency may have tripled in 2018, despite the bearish market. In addition, an astonishing 80% of those surveyed would be open to using crypto for daily purchases, as well.

 

Helio Lending does require a minimum borrowing amount of 1,000 Australian dollars, and it follows traditional KYC and AML procedure, as well.

 

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Danish Tax Agency Cracking Down On Cryptocurrency Trading Profits

It appears as though the Danish tax agency, Skattestyrelsen (SKAT), is cracking down on thousands of nationals that appear to have hid Bitcoin trades with regards to their tax payments. Agency officials also have indicated that this trend will continue for some time.

Cracking Down

 

Specifically, the Swedish tax agency shared that 2,700 traders are involved, that purchased $5.8 million in Bitcoin in total, and sold it back for $6.1 million in local currency. The agency is apparently reviewing $12 million of Bitcoin trading. In addition, it appears as though SKAT will be cracking down on cryptocurrency trading specifically.

Karin Bergen is the directorate at SKAT, and elaborated: “If you have traded with bitcoins on the specific Finnish bitcoin exchange and have not specified any winnings, then you can hear from us so we can get your taxes in place.”

Different Targets

It appears as though SKAT does understand that there are different levels of Bitcoin traders, but it doesn’t seem as though anyone is exempt from the agency. The chairman of the personal data department of SKAT, Ole B. Sorensen, states: “There are two types of trades. One is what I want to call a curious trade, which is about a few thousand dollars, and there are those who have been trading for some enormous amounts.”

Bergen said: “It’s probably the tip of the iceberg”, with regards to the cryptocurrency tax crackdown.  She added: “Although the Finnish company is a relatively small bitcoin exchange, the information they have revealed is a precious source, which clearly shows trends and patterns in the area.”

It appears as though the agency will be interested in cryptocurrency for some time now. Either way, Denmark appears to be more open to Bitcoin than many other countries, considering that over 1500 restaurants accept the digital asset as form of payment.

 

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Prosecutors Want 10-Year Jail Sentence For Former Mt. Gox CEO

There are few events that have shaped the current cryptocurrency markets as the infamous Mt. Gox hack. For those who are unaware, Mt. Gox was once the world’s largest cryptocurrency exchange, established in 2010. At its height, it was handling 70% of all the global transactions involving Bitcoin. Unfortunately, over $400 million in Bitcoin was hacked from the exchange in 2014.

Although some of the funds were recovered, the events led to a massive drop in confidence when it came to cryptocurrency investors and traders, who now had to wonder whether their funds would be stolen due to hackers.

Embezzlement Allegations

The cryptocurrency markets have since recovered, but the Mt. Gox debacle is still relevant to this day. Specifically, the former CEO of the exchange, Mark Karpeles, 33, was arrested in Japan in 2015 for embezzling funds from the exchange. It appears as though prosecutors are requesting a 10-year jail term for Karpeles.

Prosecutors accused Karpeles of diverting “company funds for such uses as investing in a software development business for personal interest”, and allege that he “played a great role in totally destroying the confidence of Bitcoin users.”

Karpeles Claims Innocence

Karpeles has tried to claim that this was a “temporary loan”, but prosecutors have pushed back against this narrative, stating: “There was no documentation of loans and there was no intention of paying back.” Previously, in 2017, France-born Karpeles has maintained his innocence, even reading a statement in Japanese that stated: “I swear to God I am not guilty.”

Karpeles is not only accused of embezzling customer funds ($3 milion worth) and transferring it into his account during late 2013, but prosecutors also maintain that he manipulated data on Mt. Gox’s trading system to cover his tracks, as well.