The CEO of one of the most successful cryptocurrency exchanges in the world has published a smattering of this thoughts on LinkedIn. Entitled the “Benefits of Crypto Part 1 – to Countries,” Changpeng Zhao’s article outlines some of the hugely empowering and positive aspects of virtual coins and exchanges.
Cryptocurrencies are Good for the Economy
Highlighting several common-sense observations and benefits of cryptocurrencies, Zhao’s article is part enthusiasm, part authoritative voice giving an honest appraisal, and also somewhat of an olive branch to regulators.
Zhao stated that wherever “big exchanges are, they will draw in other crypto projects and businesses. This leads to a huge influx of funds to the local economy, in hundreds of billions of dollars from all over the world.”
The article exudes the premise that this fact alone should end the debate over cryptocurrencies’ value-add. Zhao followed up with a statement saying “crypto investments are borderless. Good are invested in by people from all over the world.”
“bitcoin has no intrinsic value.”
— Stefan Molyneux (@StefanMolyneux)
As background, Zhao heads up one of the most successful exchanges in the world. From humble beginnings, has rapidly grown into a dependable and popular contributor to the cryptocurrency arena.
Launched with a combination of innate savvy, good timing, and excellent functionality, the Binance exchange is widely seen as something of a JP Morgan in the cryptocurrency world.
The touches on many salient points, among them the need for governments to virtual currencies, develop and understand them, and the macroeconomic benefits of cryptocurrency exchanges.
“Crypto businesses are lead by the sharpest minds on the planet,” says Zhao, positioning the phenomenon of digital coins as indicative of talent and essential human capital.
Those who roll out virtual currency projects are “early adopters and developers of technology and financial industry,” he said, pointing to how these adapters “push the envelope.”
“Clear and favorable regulations on how ICOs are accepted by governments, listing on exchanges, and competitive personal tax policies are key to attracting these talents.”
Zhao also mentions domestic job creation, noting that an increase in is inevitable surrounding typically well-funded cryptocurrency businesses. Moreover, he discusses what the figures already show: ICO capital investment VC movement for the year of 2017.
$5.7 billion went into virtual offers during 2017, while already $2 billion has changed hands on the same floor in 2018. For Zhao, the logical generation of jobs surrounding these ICOs is visible.
Noting that the trend of capital to hunger after ICOs is accelerating, not declining. Surrounding these figures, he elegantly pushes for regulatory appraisal that is benign and enabling.
Government Regulation and Tax Revenue
The Binance chief points to the revenue generated for government through an acceptance of the virtual currency phenomenon.
Not only is the time taken for ICOs to start generating a profit massively curtailed as opposed to a typical business venture, but this also means that governments begin collecting tax much sooner.
Currently, governments are often malaligned, with as a prime example.
The Israeli government is happily anticipating collecting healthy tax dividends from cryptocurrency platforms, while Israeli banks deny them accounts and other arms of government squeeze ever tighter, frustrating their businesses.
Referencing the financial culture of New York and the startup culture in San Francisco, Zhao hopes that forward-thinking countries will get on board early and leverage cryptocurrencies for broader economic advantage.
“Any country that can attract Binance to open a branch in their location will receive a handsome tax income revenue,” Zhao shared, his voice amid typically stern regulatory moves in the global economy.
The world’s largest cryptocurrency exchange, Binance in $7.5 million in its first three months after launching.
Second quarter figures jumped to $200 million, a money flow not lost on Zhao, who sees the tax, incorporated welfare tools, and overall trading as enormous benefits for any economy.
Listing more than 200 coins, the Binance CEO points out that all of those individual projects will suffuse local economies too, opening up in host countries, if only they get the support they need.
“We are happy to work with forward-thinking regulatory bodies, share our experiences and expertise, and help forge a leader in tomorrow’s blockchain-enabled world,” he said. Zhao is all about progress, development and the long-term entrenchment of cryptocurrencies as something wholly beneficial to the human world.
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In the past week, the rallied by over 15 percent thanks to a significant jump in SegWit adoption. Several major bitcoin wallets and exchange have implemented SegWit in the past few weeks, which has led to a substantial increase in SegWit Transactions. According to data from , currently around 30 percent of bitcoin transactions are SegWit transactions.
Furthermore, Germany has declared purchases made with cryptocurrencies as non-taxable and to be treated in the same manner as fiat currency purchases. This has sent a signal to the crypto markets that upcoming cryptocurrency regulations may not become as tough as previously expected.
The top altcoin outperformer in the past seven days has been Monero . Its 24 percent price week-on-week price jump was driven by the , which will enable monero holders to receive “free” money in the airdrop. While the Monero community have spoken out against this fork, it seems that investors have piled into the coin to receive a ‘free dividend.’
Greater demand for monero may also be driven by the upcoming hard fork (upgrade) in March that will slightly to ensure ASIC resistance and the of the altcoin onto Ledger’s hardware wallets. also favor a strong performance for XMR-BTC over March.
The remainder of the altcoin market traded largely sideways, trying to figure out which direction it wants to take next.
This week’s contributions have been provided by , , , , , , and .
The recent SegWit upgrade at major exchanges aimed at speeding up transactions is clearly working as intended, with adoption reaching new highs and doubling in under 48 hours to above 30 percent of all transactions.
The popular software upgrade, released on February 15, 2018, had started the rollout for full SegWit support in the wallet and user interfaces. August 2017 saw the SegWit release, but it was only after these recent upgrades that it began to gain some traction. The number of SegWit enabled transactions have increased recently as some key service providers and cryptocurrency have integrated support.
According to data available at , there has been an increase pushing the transaction proportion to more than 30 percent over the bitcoin network. Consequently, the higher utilization has led to a decrease in the number of pending transactions in the . As there is less pending workload on the network, it has also led to a significant decline in transaction fees.
The has released a report on Tuesday, February 27, outlining taxable events regarding bitcoin payments. Specifically, the financial authority looked into how to tax miners, cryptocurrency transactions, and the taxable role that exchanges play in the ecosystem. Whatsmore, the document based these statements on the contents of the European Union’s .
The reads, as translated by the author: “Regarding payment in bitcoin, the fee for the service provider is determined by the equivalent value in the currency of the member state in which the service is provided and at the time when this service is performed. The conversion [from bitcoin to fiat] shall be carried out at the latest published selling price in conjunction with article 91 paragraph 2 of the VAT Directive.”
To what extent this has already urged other member states to consider reevaluating their stance on the subject is still to be determined. At current, however, France is with how best to real in the growing market, Switzerland is redefining itself as a for crypto businesses and is in the of offering Ethereum-based identities for citizens of Zug.
On Tuesday, February 27 that the United States Deputy Attorney General Rod Rosenstein was at the spring conference for the Financial Services Roundtable in which he outlined what sort of approach the current administration would be taking when it comes to cryptocurrency.
It was during the Q&A towards the end of his speaking allotted time that a member of the audience asked him about what he thought of both cybercrime and .
He started his response by referring to the cybercrime portion of the question, and he noted that there was a new task force setup up in the third week of February 2018 that will be focused on creating strategies for dealing with tech-related crime. This task force was set up by the Justice Department.
Luxury automobile manufacturer Porsche has teamed up with Germany based start-up , to become the first automobile manufacturer to test blockchain technology applications directly in their vehicles.
In June 2017, the Berlin-based AI firm won the first “Porsche Innovation Contest” beating 120 other startups. Following the contest, XIAN and Porsche team worked for nearly three months on the blockchain pilot program.
Although Porsche did not mention what blockchain network it was working with, XIAN’s technology stack is based on blockchain.
As stated in a Porsche press release issued on February 22, 2018, so far the company has piloted for locking and unlocking cars through an app, parking, encrypted data logging and temporary access authorizations. The car manufacturer is also optimistic that the digital ledger technology will improve driverless car functions.
Uber co-founder , is planning to launch his cryptocurrency dubbed “ECO” in an attempt to revive the original of digital currencies which was “an instant, affordable, and borderless means of payment for masses.”
Since its inception, has been envisioned as a global currency, however, over time it has also become an excellent store of value, similar to how we think of precious metals. It is also because of this latter, latent characteristic, that developers have spawned virtual currencies that function exclusively as a speedy means of payment.
Camp revealed that he has been working on his new cryptocurrency that will become a global digital currency to be used for day to day transactions. He also points that his “ECO” cryptocurrency will not face technical challenges that leading tokens like bitcoin and ether face.
Apple co-founder Steve Wozniak, speaking at the in New Delhi, revealed that he was defrauded by credit card fraudsters costing him seven bitcoins. Recently, the technology entrepreneur mentioned that he had sold all his bitcoins when the cryptocurrency reached the milestone in December.
As for the stolen bitcoin, Wozniak did not make clear if the fraud occurred while selling off his gains or a different time. However, his earlier statements regarding selling his holdings indicate that all went smoothly at that time.
Interestingly, the fraudsters employed a relatively old trick: They used a stolen credit card to the bitcoins from the tech wiz. At the current price, the seven stolen tokens would be worth about $77,000. Nevertheless, the tech veteran is still a bitcoin and blockchain technology proponent.
As the first bank in Liechtenstein to allow cryptocurrency investing through their platform, has made a momentous decision in the world of cryptocurrency trading. Many banks have classified cryptocurrencies as a speculative investment and not one they want to be involved in, for example, in and , but Bank Frick has changed the tides here.
The goal for this European bank is to position themselves as a forward-thinking bank that can make significant changes while still abiding by the regulatory framework.
Bank Frick has previously been active in allowing crypto-based products, but this move removes one more intermediary, so it is just the banks in between the cryptocurrency and the investors. Originally, they were the first bank in Liechtenstein to allow for in cryptocurrencies, in partnership with .
These baskets have experienced significant gains in the meantime, but Bank Frick is still quick to say that investors should be cautious with speculative investments. The bank’s services are currently in demand all across Europe, and this will strengthen as their adoption of cryptocurrencies catches on.
Cryptocurrency investors in Australia will now be able to purchase bitcoin and ethereum in-store from over 1,200 newsagents spread throughout the country. All they will need is a minimum $50 investment in cash, a phone number, and an email ID.
The new initiative was rolled out by the crypto exchange bitcoin.com.au following extensive preparations going all the way back to mid-2016. Over the past one-and-a-half years, the company has laid out a network of in-store crypto buying infrastructure across the country.
According to Rupert Hackett, Chief Executive at bitcoin.com.au, the availability of cryptocurrencies in physical stores will help them gain the trust of many consumers – especially the first-time investors who had been on the borderline because of trust issues emanating from the digitally-exclusive availability of cryptocurrencies.
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Cryptocurrency exchange Coinbase is facing two class action lawsuits, one of which is claiming insider trader information. The first of the complaints, filed Thursday in San Francisco federal court, focuses on the launch of BCH on Coinbase in December, and alleges insider trading information. The case, which has been brought by Jeffrey Berk, is representing […]
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