Bitcoin is getting more and more popular each day. In 2011, you needed to write to a man from another country to order a pizza for you with Bitcoins, but now you can do things similar to that in various major cities. In a few countries like the Netherlands, the whole towns are Bitcoin-accommodating, (for example, Arnhem, regularly called ‘the Bitcoin city’).
This growing popularity of Bitcoin has caught attention of many people, and thus we see so many people asking how to earn bitcoin.
The best and easiest way to earn Bitcoin is through mining. There are several mining pool which one can join in order to earn their own bitcoin. Apart from that, it can also be earned through carrying out certain tasks, or accepting bitcoin payments if you own a business. In short, Bitcoin can be earned in as many ways as real money. So, next time someone asks how to earn bitcoins, you know what to tell them.
Bitcoin is a peer to peer, decentralized, the digital currency which is designed for users to make online transaction anonymously. In simpler words, it’s a virtual currency which was created by a group of unknown programmers in 2009.
During this short period of time, bitcoin has accumulated worldwide recognition as well as contention as an alternative to USD and Euros.
Journey Towards Popularity:
Bitcoin first came into circulation in 2009. The currency didn’t gain much attention in world business during the first couple of years. The first it gained recognition was the year 2011-12 when it grew over 300%. The next year also proved to be quite fruitful as the currency saw more than 400% growth in its value.
Due to its incredible rise, the investors and venture capital around the world invested $57 million in the first quarter, followed by an investment of $73 million in second quarter.
A Guideline to Invest in Bitcoins:
The easiest way to get bitcoins is to shop for bitcoins. There are numerous established firms in the US and around the globe that are involved in trading bitcoins. These firms are abbreviated as BTC.
Coinbase and BitStamp are two of the top players of the game.
Coinbase is the “go-to” place to trade coins if you live in the US. The Coinbase provides its clients with bitcoins at an estimated markup of 1% over the existing market price. It also gives you the option to sync your bitcoin wallets and bank accounts; which ultimately reduces the trouble factor in your future payment transfers.
Another unique option that Coinbase offers to its users is “auto-buy”. For example, if a user buys $100 in bitcoins at the start of each month, the company will him an option to set up an “auto-buy” for that amount.
Bitstamp acts as an intermediary between users. This means that users can trade with each other but not the company itself. At BitStamp, the liquidity is higher and there is always a good chance to find a trading partner.
Local Bitcoins – An Alternative Way to Purchase Bitcoins:
If you are having troubles exchanging bitcoins online, Local Bitcoins is a good option to buy them offline. However, offline buying is not always considered to be safe. To be on the safe side at the time of a transaction, it is often suggested to have a meet up with the seller at a public place and let a friend/family member tag along for protection in case things turn ugly.
The Final Word:
There are numerous ways to take a dive into Bitcoin investment. Coinsbase, BitStamp, and Local Bitcoins are few to name. The most important thing to remember here is to do your homework and take your time before entering the sphere of bitcoin investment and you will be fine.
On Friday, Yahoo Japan confirmed that it has acquired a minority stake in a cryptocurrency exchange of Japan. According to Reuters, a subsidiary of Yahoo Japan, Z Corporation, has purchased a 40% stake in the Japanese crypto Exchange, “BitArg Exchange Tokyo,” which has the worth of almost $18.6 -$27 million. The exchange will be set to launch in the month of September, 2018.
Rumours of Acquisition
The rumours of the acquisition first came out in March; however, at that time they showed that the investment will be made by Yahoo Japan through YJFX, which is its forex transaction platform, and not through Z Corporation.
In a statement, Yahoo Japan said:
“By utilizing the service operation and security expertise of the Yahoo group, we support the operation of exchanges operated by BitArgo Exchange Tokyo.” Yahoo Japan also added that the exchange intends to offer services for customers that are secure and easy to use.
Japan is considered as an industry hub as it has above three million domestic crypto-traders. The news of Yahoo Japan’s investment showed up just after days when the financial regulator of the country ordered crypto exchanges; FSHO and Eternal Link, to stop operations due to inadequate KYC procedures. Similarly, another prominent acquisition happened this month – Monex Group announced that it struck a deal to acquire Coincheck exchange, as it went through a major hack at the beginning of this year.
After the Yahoo crypto news, Monex, which is known as a major Japanese online brokerage has confirmed its acquisition of Coincheck and was undeterred even with Coincheck getting lots of criticism for negligent-security procedures the whole year that led it to the mugging of $530 million of NEM tokens from its wallet.
Even with interruptions, SB, which is a Japanese banking giant is set to launch its own cryptocurrency exchange after firming up the security measures when the FSA is considering to ramp up its scrutiny of exchanges after the theft of Coincheck. Also, Messaging giant Line, that has a market cap of more than $9 billion and has almost 600 million registered users as well as 200 million monthly active users, has also filed an application with FSA in order to launch its own cryptocurrency exchange in Japan.
A statement was released by the chief legal and risk officer at Coinbase, Mike Lempres, which shows how the market is setting up for the US crypto innovators as regulatory improbability and months of vicious market growth seems to be coming to a head at last.
Confirmation By SEC
A rumour has been confirmed by SEC last week that it’s has started to investigate startups and companies related to ICOs (initial coin offerings). Entrepreneurs are conceding on the idea that new cryptocurrencies have initiated, however, U.S. companies that are still trying to issue tokens as securities might not have an easier time reaching buyers. Last week, at the MIT Bitcoin Expo, the issue was presented in a panel that hit a sour note on the ICO token trading.
End of Utility Tokens
Well, the chaos in the market shouldn’t be really surprising. The SEC’s order to shut down ICO called “Munchee,” was a huge shock for the market, as it landed like a bomb, back in December. For a while, it seemed like the companies there started to think that if utility tokens couldn’t be sold to the public, they could still be given away. But at the same time, this is a violation of SEC there. It was reported that the rule requires buyers to be accredited investors, which means they have a networth of at least $1 million or must’ve earned $200,000 for the last two years.
There’ve been many contributors in the market that never believed how unregistered tokens could work under the laws of SEC. But on the other hand, it’s quite hard to figure out how a product that creates a tokenized VPN operates if those tokens are securities.
Trading and Liquidity
In the US, the final issue for ICO project is liquidity, no matter even if an exchange goes live. However, the problem is that there’s no integrated place to trade tokens that are registered with the SEC. Even though it’s been highlighted by many founders, but still, this doesn’t mean that trading is not possible, however, it’s not simple at the same time.
According to the CEO and co-founder of Templum, Chris Pallotta, there’s a chance that he might open a platform in few months, but with maximum security tokens, as he stated;
“I think the timing will work out pretty nicely.”
At the same time, that’s also pretentious that there are no extra holdups, and if there’s anything shown by the ICO space, then that might be a big if. So in short, it’s going to take some time for tokens to get created within such time, no matter even if the Templum goes live soon.
The point of using a digital currency is that it’s completely decentralized and disconnected from any government control. Yet, some exchanges completely defeat the purpose of digital currency by placing it into third-party systems. It is essential to understand that we no longer have to give up our control over our assets and shouldn’t be dependent on governments to protect them.
This is a review of “Tim Swanson’s” – “Eight Things Cryptocurrency Enthusiasts Probably Won’t Tell You.” Read on to know more.
Here are eight areas that require your attention:
A Hong Kong-based digital currency exchange that is known to be hacked several times in the past. A little over a year ago, $65 million dollars’ worth of bitcoins were stolen from the exchange. Till now, Bitfinex has failed to provide evidence as to how they were hacked or where those funds led to. Users were fooled by the potential for returns but in turn faced a major loss as their accounts were left empty.
2. Ransomware, Ponzi’s, Zero-fee and AML-less exchanges
A report from Xinhua was released last month that read:
China’s two biggest bitcoin exchanges, Huobi and OKCoin, collectively invested around 1 billion yuan ($150 million) of idle client funds into “wealth-management products.”
In simple words, these exchanges were functioning while charging zero-fees by using customer deposits to invest in other financial products without the customer’s knowledge. According to insiders and reporters that many exchanges in China carried out similar practices. Also, exchanges in developing countries lacking AML and KYC measures majorly benefit from scams and thefts.
3. Initial Coin Offerings (ICOs)
Many investors are chasing quick profits instead of utility. Recently, many firms are aiming towards scamming practices due to which several other legitimate ICOs are suffering. Several ICO boot camps in China were set up with past experience in pyramid schemes, this leads to not just single fraud incidents but very frequent ones as well.
4. VC-backed entities
5. The decline of Maximalism
6. Market caps
We have very little idea of what is really happening with Bitcoin transactions or any cryptocurrency for that matter. Market cap is based mainly on a company’s assets and future cash flows but with cryptocurrencies, it is completely misleading. Especially, when random meaningless coins sell a small segment of their total supply then, claim a huge market cap.
7. Buy-side analysts and con media
Many big-name media companies practice a biased reporting which mainly focus on the benefits of coins but not equally shed light on the potential risks as well. They cover basically everything and anything regarding market caps, statistics and basic buy/own cryptocurrencies articles. But what if these major companies are funding other odd companies side by side?
The point is, that if these firms want to be taken seriously, they might as well take on the best practices so they support long-term capital inflows.