📰 Crypto Meta: China is Considering Ban on Cryptocurrency Mining, Facebook Seeks for $1B Blockchain Investment, CZ Supports #DelistBSV and more
.png)
Some news that has an impact on the market today and in the future.
China is Considering Ban on Cryptocurrency Mining
This week we have learned that the National Development and Reform Commission intends to ban cryptocurrency mining. At the moment, the government is considering several areas of the economy, which, according to the official version, harm the environment or are extremely resource-intensive. Among such industries, mining is marked, for which China already has several regulatory restrictions, for example, the need for compulsory registration of an entity as a miner (who "signs the agreement" with the local authorities).
It's not the final decision - on May 7, the government will give the answer when local authorities end to explore public opinion and so on. The ban on cryptocurrency mining in China is one of the possible results if business representatives won't intervene. Then this sector of the economy will be at least severely limited in one part of the world. Such an outcome is a bit difficult to evaluate, knowing the share of miners in the Bitcoin network, as well as the fact that China has about 80% of the mining capacity of the world (according to various estimates).
In case the ban enters into force, Bitmain will not be able to place 200,000 units of crypto mining equipment in China. This option may also be out of context, given personnel changes and the failure of plans to raise investments through IPO mechanism.
Deja Vu: IMF Head Says Crypto is "Clearly Shaking the System"
It is not the first time when the IMF cautiously mentions cryptocurrencies - digital money, according to Lagarde, contain a threat to the modern financial system.
That is, according to the IMF head, cryptocurrencies are already coming and "shaking". As proof, Lagard points to a change in the business model of commercial banks. However, what changes can there be if it is viewed through the prism of control over the circulation of funds here and now:
"We don’t want innovation that would shake the system so much that we would lose the stability that is needed"
If one talk to the IMF about something uses distributed ledger technology, then it isn't necessary to be very particular about definitions:
"I think the role of the disruptors and anything that is using distributed ledger technology, whether you call it crypto, assets, currencies, or whatever ... that is clearly shaking the system".
Token Taxonomy Act 2019 May Exclude Crypto From Securities
However, regulators, instead of the IMF, pay attention to how things based on distributed mechanisms are called and generally classified. The US Congress will consider a bill proposed by Warren Davidson (R-Ohio), which contains amendments to two fundamentals important to the market: these are amendments to the Securities Act (1933) and the Securities Exchange Act (1934). In case the proposed changes are accepted, this will exclude tokens from securities category.
"The Token Taxonomy Act is the key to unlocking blockchain technology in America. Without it, the U.S. is surrendering its innovative origins and ownership of the digital economy to Europe and Asia. Passing this legislation, Congress would send a powerful message to innovators and investors around the world that the U.S. is the best destination for blockchain technology."
As for the fate of this bill (which has already been published before, but hasn't been taken into account by the regulator), it is not yet known whether Congress will approve it, what profound consequences it has (excepting easing in the local market and in general), and what can SEC/CFTC say.
Q1 2019 Dapp Market Report: Ethereum is Still the Most Popular Platform for Dapps, Supported by Exchange and Gambling Industry
The competition among blockchain platforms allowing to create and develop dApps (decentralized applications) is reflected in a recent report by DApp.com. According to the cited data, TRON (TRX) user base is growing. At the same time, Ethereum still leads in the number of developers and blockchain applications.
DApps market is represented in the form of large segments: more than half of the transaction volume falls to decentralized exchanges. The second place in terms of the transaction amount is taken by gambling applications.
Among the trends, researchers noted greater attention to ETH alternatives, the expansion of blockchain solutions like Ethereum + EOS or Ethereum + Tron. Gambling is unlikely to lose ground in a growing trend, as it is also the main driving force behind Tron-based dApps.
Facebook's Blockchain May be Funded in the Amount of $1B
Facebook, corporations, controlled Internet, WikiLeaks, information, data protection, recent outage of most popular instant messengers over the past few hours, as well as money and the ability to attract billions: all mixed up to bring a new solution - Facebook's blockchain, as well as its stablecoin, the purposes of which are not yet clear.
According to sources, the social network is looking for investors from among the major players who are ready to invest up to $1 billion in its blockchain-related offer.
Given that one of the big allures of blockchain projects is the decentralization, getting outside investors could help Facebook present the project as more decentralized and less controlled by Facebook.
Nathaniel Popper (@nathanielpopper) April 8, 2019
However, according to Nathaniel Popper, the company could easily provide its cryptocurrency innovation on its own. The purpose of financing, as can be clarified from the sources, is to attract investors in order to distribute funds within the coin's market, which may lead to "greater decentralization". However, such an approach may be questioned based on an understanding of decentralization, while other sources say that this money will be used to "secure the currency" (some projects also use precious metals and bananas for it).
Hard Forks within the Ethereum Network are Proposed to be Held Every 3 Months
The dev team that leads the 2nd by market capitalization currency sees the development of its blockchain in reaching important points, which are implemented in the form of hard forks, or important network upgrades, starting with a certain block. Although some milestones from Ethereum's roadmap have already been passed, a lot still awaits the project ahead.
On April 12, during the regular discussion of ETH developers, participants discussed the possibility of system updates, that is, hard forks of the platform every three months.
Some updates, such as the launch of a payment for storing data within ETH blockchain, require a series of successive upgrades to achieve its full effect, one developer noted. Several panellists said that such innovation would be redundant and ineffective, another part referred to the fact that even hard forks with a period of 6 months are being implemented a long after the appointed deadline. Therefore, it is worth focusing on stable support, but if it is possible to achieve consensus on intermediate updates in most clients, this will also be good, others noted.
And also:
"For us, it’s money. We don’t have enough money behind it"
-Fredrik Harryson, CTO of Parity.
Therefore, so far the decision has not received approval from the developers. It can be understood that Ethereum now is immersed in a multitude of developmental forks, so that team maneuvers between demands, risks, new opportunities and gradually reached milestones.
Users are Supporting Protest Against Craig Wright and Involve into #DelistBSV
"Bitcoin SV, controversial BCH fork" continues to provoke active discussions, also because of its creator and ideological inspirer of the search for the real Satoshi Nakamoto Craig Wright. The strange role that Wright got is to return the ephemeral Satoshi to real life, to focus on the creator, and not on the revolutionary algorithm - it seems that everyone is completely fed up with it.
Craig Wright is not Satoshi.
CZ Binance (@cz_binance) April 12, 2019
Anymore of this sh!t, we delist! https://t.co/hrnt3fDACq
I normally don't like get involved in debates, pick sides, etc. But this is going too far.
CZ Binance (@cz_binance) April 12, 2019
I also didn't like the fact that the fork caused BTC to drop below $6k, which caused pain to many in the industry.
As a result, more and more users are starting to support #DelistBSV, a movement aimed at delisting Wright's and his team's coin. However, it is not yet known whether Binance will decide on a public survey, which includes the option to remove the coin from trading on one of the largest crypto exchanges.
Meanwhile, Wright is playing out a fight that targets the cryptocurrency industry. Some also recalled patent trolling, which prevented many blockchain projects from obtaining patents for relevant developments. Despite all of the above, Satoshi Vision coin ranks among the TOP20 coins by market capitalization.
Since November last year, when the Bitcoin Cash hard fork took place and the discussed coin appeared, its miners lost over $2 mln in total during observed period.
Visa and Coinbase Released the First "Cryptocurrency Card"
Visa... Coinbase... Many people use Visa cards... Coinbase is associated with cryptocurrency... Hmm - the next big thing! At least the headlines shouted about it for several days.
Coinbase Card, issued in partnership with Visa, is nothing more than a debit card tied to the user's wallet on the Coinbase exchange. People can buy goods irl using this card - the conversion of funds will be automatic and held by the exchange. Thus, crypto is not actually used in the process of transferring funds, and the offer itself is now limited for the first thousand British investors, so it is difficult to call this an "adoption" - experts and Coinbase users say.
Previously, some cryptocurrency projects have already offered products related to debit cards and the use of digital currencies. Coinbase is now the first provider of its kind (at the level of a partnership with Visa). Previously, Visa wasn't kind to money based on distributed algorithms.
Cryptocurrencies assumed as a high-risk investment. Mention of projects, coins, personalities here is not a recommendation for the purchase and use of any kind of digital money, just as this text cannot be used as an example of a decent grammar and spelling. Good luck
🏛 Bittrex didn't get a NYDFS license ("BitLicense"), but Bitstamp did
💱 Binance DEX: Binance Chain Testnet has completed its hardfork | KuCoin restricted the use of scripts during IEO | Bitfinex launched BTC/USDt and ETH/USDt margin trading (the exchange also does not require a minimum deposit of $10,000 now) | QuadrigaCX officially enters into bankruptcy
🛠 SUN Network launch date: May 30 (testnet), August 10 (mainnet) | International Chamber of Commerce (ICC) has partnered with blockchain startup Perlin to improve supply chain processes at member companies | MUFG will be the first to issue stablecoin among japanese banks
📢 BitMEX CEO Arthur Hayes predicts Bitcoin could reach at least $50,000 | Binance assumes in its report that BTC bear market is seems to be over | Blockchain wars: Charles Hoskinson (Cardano) criticizes Bitcoin and Ethereum
Dear @icotelegraph
Wasn't crypto mining already banned in China ?
yours
Piotr
Hello @crypto.piotr, the Chinese government didn't ban mining, this type of activity is also officially legal now. The largest mining corporation Bitmain set its headquarter in Beijing, and the highest mining capacities are still located in this country (of course, it depends on market we discuss, for example, for Bitcoin the percentage of Chinese mining power is very high). However, it is unclear whether mining will be banned in China in the near future.
The official ban may come on May 7, when the government will make a decision. The ban will occur, either China may also postpone it - no one knows now.
Earlier, representatives of the Chinese authorities also published documents on mining ban, but probably these proposals were only gradually developed in the state apparatus.
However, Chinese miners today do not need a big red signboard with word "banned" to understand how the industry behaves in this region. Some companies are trying to change jurisdiction to a friendlier one, some miners (including individuals) stop mining. Thus, we are talking not only about the "official legal", but also the actual consequences, so we can think that the ban, i.e. limitation has already arrived. Market participants can tack between these limitations as much as they have capacity, business connections and influence to do that.
China also limits the use of cryptocurrency and crypto platforms (only OTC is legal). Companies involved in blockchain, mining industry must comply with the current legislation of the country.
Dear @icotelegraph
Amazing reply. Appreciate!
I just realized that (somehow) I've missed your previous comment. Just wanted to thank you for being always so responsive and sorry for such a late reply.
Your comment is almost 2 weeks old. Did anything change in China regarding mining within this time? Or are we still all waiting till 7 of may?
Yours
Piotr