Cryptocurrency News for 14 Sep 2017
Bitcoin Drops Below $4,000 as Market Turns Uncertain
After mounting a modest recovery in the wake of rumored regulatory scrutiny, the price of bitcoin is back below $4,000.
The average price of bitcoin across global exchanges fell below $4,000 at roughly 3:15 UTC today, hitting a low not observed since September 10. The movement followed a period in which the bitcoin price repeatedly tested $4,000, but succeeded in staying above the barrier.
All in all, the move comes during an uncertain time for the cryptocurrency market, which has seen a period of sideways trading following a torrid first half in 2017.
With the recent decline, the price of bitcoin is up just 1.7 percent over the last month, though it has still appreciated nearly 300% this year. Likewise, the broader cryptocurrency markets have seen similar activity, rising 3.4% over the last 30 days, but declining more than 17 percent from its highest point during the period, according to CoinMarketCap.
Full story at http://bit.ly/2x3gT4B
Source: CoinDesk
Why Bitcoin is Not a Bubble
The internet is replete with people referring to bitcoin as a “bubble.” They are spreading fear, uncertainty, and doubt galore. They believe bitcoin’s high price spells impending doom, but their criticisms move beyond mere skepticism. It seems like they just hate cryptocurrency. Yet many of these pundits do not fully grasp bitcoin…or even economics.
For anyone unfamiliar with what a bubble is, investopedia refers to it as an asset driven by unwarranted, but exuberant, market behavior. It is basically a hike in price that has resulted in a lie or “false truth” about the actual value of an asset, and therefore presages a massive selloff.
Commentators like Peter Schiff and others have routinely said bitcoin is a “bubble,” and that it will collapse any moment. They make these claims, but do not seem to understand how bitcoin works. Everyone sees headlines like this all over the internet: “Bitcoin is a false truth, warns analyst,” and this CNBC article, “Bitcoin’s nearly five-fold climb in 2017 looks very similar to tech bubble surge.” There is even a site dedicated to collecting these FUD and clickbait claims the mainstream media repeats.
In a recent Chicago Tribune op-ed article called “Why Investors Should be Wary of Bitcoin,” writer Gail MarksJarvis, also compared the bitcoin boom to various historical bubbles:
"Do you remember the housing crash of 2008, when the innocents who bought homes thinking they’d make a fortune on soaring prices ended up losing 30 percent on plunging home values? Do you remember the technology stock bubble of early 2000? Until the technology bubble burst, people were euphoric about the pioneers of the fledgling Internet in the 1990s, and figured the gains in technology stocks would never end."
Full story at http://bit.ly/2jlG9yd
Source: Bitcoin News
China Is Said to Ban Bitcoin Exchanges While Allowing OTC
China plans to ban trading of bitcoin and other virtual currencies on domestic exchanges, dealing another blow to the $150 billion cryptocurrency market after the country outlawed initial coin offerings last week.
The ban will only apply to trading of cryptocurrencies on exchanges, according to people familiar with the matter, who asked not to be named because the information is private. Authorities don’t have plans to stop over-the-counter transactions, the people said. China’s central bank said it couldn’t immediately comment.
Bitcoin slumped on Friday after Caixin magazine reported China’s plans, capping the virtual currency’s biggest weekly retreat in nearly two months. The country accounts for about 23 percent of bitcoin trades and is also home to many of the world’s biggest bitcoin miners, who use vast amounts of computing power to confirm transactions in the digital currency.
“Trading volume would definitely shrink,” said Zhou Shuoji, Beijing-based founding partner at FBG Capital, which invests in cryptocurrencies. “Old users will definitely still trade, but the entry threshold for new users is now very high. This will definitely slow the development of cryptocurrencies in China.”
Full story at https://bloom.bg/2jlUg6A
Source: Bloomberg
Vietnamese Hurry to Import Mining Rigs
Vietnamese investors are in a hurry to import crypto mining equipment. As the bitcoin price continues to flourish — despite the Chinese putting a stop to domestic ICOs — investors desperately want mining equipment. However, the legality of bitcoin and cryptocurrency in Vietnam is unclear, and getting miners through customs is difficult.
A Vietnamese article elaborated: “In Vietnam, Vietnamese Hurry to Import Bitcoin Mining RigsThe General Department of Customs (GDC) is still considering whether to allow computers imported to mine bitcoin to get custom’s clearance. The State Bank of Vietnam recently affirmed its viewpoint on not recognizing virtual currencies, including bitcoin, as a legal currency and payment instrument in Vietnam.”
Regardless if the Vietnamese government legally recognizes Bitcoin, investors are still trying to get their hands on mining rigs. They are wanting equipment for bitcoin, litecoin, and ethereum. It is just that the rigs have become difficult to obtain and expensive. The article provided more information:
"One bitcoin mining machine is offered to sell on internet at VND30-60 million. A set of computers for bitcoin mining comprises 4-6 VGA, while the latest-generation machine has 8 VGAs. Just two months ago, computer component suppliers in Vietnam reported that all computers with strong configuration and VGAs were running out because of high demand from bitcoin miners."
Full story at http://bit.ly/2jlSi6g
Source: Bitcoin News
North Korea Is Targeting South Korea's Bitcoin Exchanges, Report Claims
North Korea, a pariah state widely believed to have been behind cyberattacks on financial institutions around the world, may also have tried to pilfer cryptocurrencies to get around sanctions.
Actors tied to the isolated nation have been involved in attacks on cryptocurrency exchanges in South Korea, FireEye, a prominent cybersecurity firm, said in a report today.
"Since May 2017, we have observed North Korean actors target at least three South Korean cryptocurrency exchanges with the suspected intent of stealing funds," Luke McNamara, a senior cyber threat intelligence analyst at FireEye, wrote in a blog post published Monday. "The spearphishing we have observed in these cases often targets personal email accounts of employees at digital currency exchanges, frequently using tax-themed lures and deploying malware ... linked to North Korean actors suspected to be responsible for intrusions into global banks in 2016."
The claims come at a time when the communist nation's relations with the international community – never all that warm – have been particularly frosty.
Full story at http://bit.ly/2x2OJXo
Source: CoinDesk
Xero to Offer Cross-Border Payments Through Bitcoin Partnership With Veem
New Zealand-based accounting software company Xero has announced that it will partner with Veem to provide cross-border payments services to its customers. NZ businesses will now be able to execute international transactions in fiat currencies through use of blockchain technology
Xero’s head of developer evangelism, Sid Maestre, has stated that Xero is “excited about the additional functionality the Veem integration brings our customers… “Global platforms like Xero and Veem have a massive opportunity to eliminate the headaches small business owners face doing trade across borders, in turn helping their businesses thrive.” Veem is a global payment company that seeks to facilitate small businesses in sending and receiving payments in national currencies. Veem converts a sender’s funds into bitcoin before immediately selling such in exchange for the requested currency of a recipient, allowing businesses to bypass intermediary financial institutions. Veem was founded in 2014, and now offers its services to 60 different countries.
2017 has been a successful year for Veem, with the company rebranding from Align Commerce, following the successful raising of $24 million USD including investment from Silicon Valley Bank, Kleiner Perkins Caufield Byers, National Australia Bank Ventures, GV (formerly Google Ventures), and SBI Investment Co at the start of the year. In June, Veem announced that it would be partnering with Intuit Quickbooks.
Full story at http://bit.ly/2jlypML
Source: Bitcoin News
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This is quite interesting, thanks!
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woow
Very well , compiling so many interesting stories on the same page.
Interesting stuff about xero. and thanks for the tip :)
Upvote nice post
Damn it China
I have been reading a lot of information regarding the Bitcoin drop. Your post is very comprehensive.
Bitcoin will recover, its for sure.
Upvote & resteem