Six Months Later Bitcoin Cash Support Continues to Grow
Over the past few weeks, there’s a lot going on within the bitcoin cash (BCH) ecosystem. Just recently businesses and service providers have been working towards changing their infrastructure to the new BCH address format. Additionally, the bitcoin cash environment got more support from organizations like the Bitclub Network and the merchant Kimchi Socks.
Also read: Japan’s DMM Bitcoin Exchange Opens for Business With 7 Cryptocurrencies
The Bitcoin Cash Ecosystem Shows Enormous Growth In Just Six Months
The bitcoin cash blockchain is trucking along after close to six months since it forked from the bitcoin core blockchain. At the moment, the BCH markets are holding strong after most cryptocurrencies fell in value alongside bitcoin core markets. Currently, the price per BCH is around $2,750 and global markets are trading roughly $1.1Bn worth of 24-hour volume. Bitcoin cash has the sixth highest trade volume today, and the most traded currency with BCH is bitcoin core (BTC) by 53 percent. This metric is followed by the USD which commands 14 percent of the global volume. The BCH chain is operating at 15 percent of the core chain’s difficulty and is 0.1 percent more profitable to mine. The median transaction fee for a typical 226-byte transaction is still only $0.02 for the miner’s fee.
Colored Coins and Colorful Socks
This week bitcoin cash supporters got some good news as a few more organizations have decided to support the BCH roadmap. For instance, earlier this week a team of developers announced they were creating a counterparty platform dedicated solely to the BCH chain. This means that in the future users could create ‘assets or colored coins’ that are backed by the security of the bitcoin cash blockchain.
Another announcement made this week was revealed the Kimchi Socks company as the business announced it would be accepting bitcoin cash for purchases. Not only will the sock company be accepting BCH for goods the firm plans to have a bitcoin cash sock pre-sale. Kimchi Socks states to its fans on Twitter:
Bitcoin Cash is now a payment option on Kimchi Socks — Soon the Bitcoin Cash Socks pre-sale will be up for orders.
Kimchi socks has started the BCH socks sale and pre-orders for socks are 50 percent off until January 31. The company details that only 1500 garments will be available for the pre-sale.
The Bitclub Network Switches to Bitcoin Cash Because the Bitcoin Core Network “Has Been a Huge Burden to Deal With”
“Since the start of the year the average cost for a new member paying their $99 USD sign up has been around $17 in fees — We have seen times with $25+ and even some as high as $40 just to send Bitcoin for an invoice,” explains the Bitclub Network.
We will continue to mine bitcoin and pay all mining earnings in bitcoin — However, we will no longer be accepting bitcoin for payments and all commissions will also be paid in bitcoin cash as well.
Bitclub will change its business model to BCH on February 1st the company explains. This means members will have to purchase BCH from an exchange to sign up for Bitclub’s pool contracts. At some point, the company could move back to the core network if developers happened to come up with a scaling solution, but for now Bitclub will maintain operations using bitcoin cash because it is considerably cheaper for everyone involved.
“It’s our hope that a scaling solution happens on the Bitcoin network sometime this year, and if it does then we may consider moving back, but right now the Bitcoin blockchain is simply unusable for our business needs and we are excited to make this move over to Bitcoin Cash because its fast, cheap, and very liquid,” the company emphasizes.
Overall the past six months have been good for bitcoin cash and its supporters. Since the beginning of August the currency has climbed in value exponentially. In addition, development has been happening regularly between the last successful hard fork and the recent address serialization change. Many wallet providers have been updating to the new address format and a lot more will convert on January 14. Further, BCH proponents have witnessed the flurry of support from large businesses like Coinbase, Blockchain.info, Bitpay, Bitstamp, and many others over the past few months.
What do you think about the progress bitcoin cash has made over the past six months? Let us know in the comments below.
Images via Shutterstock, Kimchi Socks, Bitinfocharts, and the Bitclub Network.
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Another Stagnant Company Reaps the ‘Blockchain Benefits’
This week another company reaped the benefits of adding ‘blockchain technology’ to the firm’s business model. The publicly listed company, Ameri Holdings (AMRH), revealed on January 10 that it was going to utilize the emerging tech within its operations. The company got a swift market valuation boost from the announcement. According to reports Ameri Holdings was previously considered unprofitable, and it’s cash reserves had been dwindling.
Also Read: Peak Blockchain Hype? Firm With No Revenues and No Product Is Worth $1.2 Billion
A Stagnant Cloud Company Goes Blockchain and Its Public Shares Soar
Over the past few weeks, we’ve reported on a few companies using the blockchain hype to their advantage. For instance, the Long Island Iced Tea Corp. changed its name to ‘Long Blockchain,’ and the company’s shares soared. The drink company is now planning to create a mining facility and pivot away from the iced tea business. Three days ago we also reported on a so-called ‘blockchain firm’ that the U.S. Securities and Exchange Commission (SEC) shut down because it had no revenue and no product. Now Ameri Holdings (OTCQB: AMRH), a ‘digital cloud’ company, is joining the blockchain bandwagon, and a columnist from the publication Seeking Alpha is skeptical about the situation.
The researcher says AMRH’s financial records are concerning.
“Core growth is completely stalled, operating income has been significantly negative, cash levels have been declining, and the company is in a massive $20 million working capital deficit,” explains the recent report.
We believe that nothing has changed in the business fundamentals of AMRH. The company’s revenue growth has stagnated over the past three quarters — In addition, losses have continued to grow on surging general and administrative expenses. Cash flow has been negative recently, and cash levels stand at $0.8 million — Working capital is a significant concern.
Ameri Holdings’ Promises of Blockchain Adds Crazy Trade Volume and a Valuation Increase of $39 Million
Then on January 10, the company announced that blockchain technology would be added to the firm’s business model. The press release promised AMRH shareholders the distributed ledger technology would bring greater efficiency and transparency to its supply chain. Further smart contracts were mentioned for vendors, and the word blockchain was used frequently throughout the announcement. The researcher notes that AMRH shares soared by over 71 percent immediately after the blockchain announcement.
“Amazingly, 13,615,785 shares traded hands compared with the usual average of approximately 100,000 per day,” explains the report.
The report finds the pump in share price concerning, especially when its tethered to a firm that’s produced very little revenue.
“We believe the $39 million increase in equity market capitalization is unwarranted and believe investors should be watchful of the potential for the stock to trade higher providing another short sale opportunity,” the research report notes.
Stagnant Companies Reaping Benefits Off the Blockchain Hype Is Currently a Sign of the Times
Companies like these, and recent regulatory crackdowns against blockchain firms with no product, have caused a lot of skepticism towards initial coin offerings (ICO) and the slew of ‘distributed ledger technology’ announcements. There are definitely a lot of people who believe a $39 million increase in equity market capitalization is unusual for a stagnant company that suddenly goes blockchain, but a lot of individuals see it as a sign of the times.
What do you think about companies that suddenly go blockchain increasing in value? Do you think investors are being fooled by blockchain word salad? Let us know what you think in the comments below.
Images via Shutterstock, PRNewsFoto/AMERI Holdings, Inc., Forge River, SEC filings, Investing.com, and Seeking Alpha.
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Calls for “Legal Bitcoin” in Ukraine, as Natsbank Mulls E-Fiat
Ukraine, now serious about crypto regulation, is setting up a special working group to oversee the completion of the necessary framework. Dedicated legislation has been making its way through parliament since October. The National Bank is considering plans to emit “e-hryvnias”, while the justice minister says bitcoin is a fact and calls for its legalization.
Also read: Russia Drafts Bill to Legalize Cryptocurrency Trading on Approved Exchanges
Crypto Matters in Ukraine’s Security
Cryptocurrencies have been addressed as a major topic of discussion during a meeting of the National Cybersecurity Coordination Center on Thursday. Participants took a closer look at what they referred as “uncontrolled circulation of cryptocurrencies on the territory of Ukraine”, Froklog reported. According to representatives of Ukraine’s National Bank, Security Service and National Police – the absence of control and the anonymity of transactions create conditions for laundering money acquired through criminal activities. Unsurprisingly, Ukrainian officials also noted the possible use of cryptos to purchase illicit goods, like drugs and weapons. The “black list” would’ve been incomplete if financing terrorism was not mentioned, and so it was.
The development of the cryptocurrency market cannot be left unattended
This is what Oleksandr Turchynov, Secretary of the National Security Council, said during the meeting of the cybersecurity body. In his words, when the government is distancing itself from the matter, in a legal vacuum, threats arise for the economy and security of the state. He emphasized the absence of regulatory framework and subordinate statutory instruments. With the fast development of cryptocurrencies around the world, Ukraine cannot leave this question without the due attention, Turchynov stressed.
Following his comments, the NCCC decided to set up a working group and charge it with finalizing all legal preparations to adopt crypto regulation. The National Bank, the Ministry of Finance and the Security Service will be represented in the party, along with other supervisory and law enforcement institutions. They must determine how the cryptocurrency market will be functioning and how the mechanism to monitor transactions and identities will be implemented. The working group will also be dealing with crypto-taxation.
The government experts will develop a mechanism to access data collected by the cryptocurrency exchanges. They will be obliged to keep transaction records under the requirements currently applicable to other financial institutions. Crypto companies will have to reveal information about their customers when a “motivated request” is submitted by the authorities.
Bitcoin to Stay, Hence – Must Be Legalized
The cybersecurity meeting was held a few days after a statement by the Minister of Justice who said that “Bitcoin must be brought into the legal field”. In an interview for Segodnya on Sunday, Pavel Petrenko noted that cryptocurrency transactions would be taking place, one way or the other. That’s why, he thinks, it would be better if bitcoin gets regulated right away.
“Bitcoin already forms a sizable portion of market transactions, including those of goods and services. That’s a fact!”, the government official stated, referring to the matter as Fait accompli. He added that every state and international organization must respond to this “transnational public phenomenon. Otherwise, these relations will be left outside the law. Regardless, they will continue to exist anyway”, Petrenko added.
Two bills and one amendment have been advancing through parliamentary commissions since their introduction to the Rada last October. No progress has been reported this year. One of the drafts aims to encompass the circulation of digital coins in Ukraine. Another focuses on “stimulating the market of cryptocurrencies and their derivatives”. Tweaks in the Tax Code should address cryptocurrency income, with unconfirmed reports of possible exemptions and incentives for miners. A parliamentary report explores the implications of new legislation on the state budget.
Hryvnia – “Tak”, Crypto – “Ni”
Another announcement from the cybersecurity meeting in Kiev read that the National Bank is “considering the expediency of issuing cryptocurrency”. Shortly after Ukraine’s “Natsbank” corrected that slip of the tongue.
In a press-release, posted on social media, the central financial authority said clearly that no plans were in place to issue a new crypto. However, the bank is still mulling over the possibility to emit a so called “e-hryvnia”, or the nation’s fiat currency in electronic/digital form. This could be done within the framework of the “Cashless Economy” project aimed at speeding up bank operations and minimizing losses in money transfers.
The National Bank is studying modern innovation technologies and looking into a broad spectrum of possible applications in perspective…
Central banks… What can you do about it?
Do you think Ukraine will soon legalize bitcoin and expand its cryptocurrency sector or go for a digital national currency? Tell us in the comments section below.
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Bank Indonesia: Do Not Sell, Buy, Trade Cryptocurrency
Bank Indonesia, Unitary State of the Republic of Indonesia’s central bank, has issued perhaps its bluntest statement yet on curbing the use of cryptocurrency, affirming a hardening stance on the popularity of what it refers to as “virtual currency” such as bitcoin.
Also read: Ditch University and High Transaction Fees!
Bank Indonesia Warns All Parties
Bank Indonesia Warns To All Parties To Not Sell, Buy or Trade Virtual Currency is the title of today’s missive from Bank Indonesia by way of its Department of Communications. It “affirms that virtual currency including bitcoin is not recognized as a valid payment instrument, so it is prohibited to be used as a means of payment in Indonesia.”
Bank Indonesia (BI) is the Republic’s central bank, and as such it has been unusually active and belligerent with regard to cryptocurrency. Its governor issued statements late last year causing regional media to urge retail holders to sell back into fiat ahead of a ban. That followed Fall’s shutdown of bitcoin payment providers and businesses restructuring in an effort to get ahead of coming regulation. And just prior, BI had yet again reaffirmed its distaste for crypto, pushing advocates to insist the bank was denying a marvel of technological innovation. BI’s pronouncements have routinely contrasted with impressions on the street, as Indonesians do seem to have an appetite for the decentralized currency.
BI wants it crystal clear all obligations paid in money or “other financial transactions conducted in the Territory of the Unitary State of the Republic of Indonesia shall be obliged using Rupiah.” Decrees of this sort appear to be driving Indonesians away from above-ground exchanges, for obvious reasons, and into more peer-to-peer arrangements such as Localbitcoins.
Stern Reminder
“Ownership of virtual currency is very risky and full of speculation because there is no authority responsible,” the central banker continues, “there is no official administrator, there is no underlying asset underlying virtual currency price and trading value is very volatile so vulnerable to the risk bubble and prone to be used as a means of washing money and financing of terrorism, so that it can affect the stability of the financial system and harm the public. Therefore, Bank Indonesia warns all parties not to sell, buy or trade virtual currency,” it concludes.
“Bank Indonesia,” they sternly remind, “prohibits all payment system service providers (principals, switching organizers, clearing organizers, final settlement providers, issuers, acquirers, payment gateways, electronic wallet operators, fund transfer providers) and Financial Technology providers in Indonesia both Banks and Institutions Bank to process payment transactions with virtual currency,” citing laws and regulations.
Undoubtedly, BI’s 13 January 2018 reminder is to ride the wave of publicity South Korean regulators garnered by floating the word “ban.” Mainstream press ran with the passing idea, and prices regionally as well as internationally dropped double digits, and fast.
As of this writing, the country’s most popular exchange, PT Bit Coin Indonesia, closing in on a million users, remains up and running.
What are your thoughts about such pronouncements? Let us know in the comments section below.
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Kucoin Issues a Warning After Bitcoin Diamond Soars 40x and Then Crashes
Ever since the arrival of bitcoin cash, forked coins have been en vogue. While BCH has succeeded in gaining traction, not only on exchanges, but also in the real world, the stragglers have struggled. There is little evidence that the likes of bitcoin gold and bitcoin diamond are used for anything other than speculation. That speculation can see forked coins pumped to insane highs, as the events of the past 24 hours demonstrate.
Also read: How to Dollar-Cost Average Buy and Hodl Cryptocurrency Like A Boss
Diamond in the Rough
The bitcoin community is, appropriately, split when it comes to forks. Some see these airdropped coins, which are issued to existing bitcoin holders, as an egalitarian distribution strategy that creates an instant user base and active community. Others aren’t so sure, questioning the motives behind these projects and the lack of infrastructure support.
Bitcoin diamond (BCD) was distributed at a BTC rate of 10:1 when it was released in late November. Within days, the forked coin had settled into a price bracket around the $30 mark, and with major exchanges such as Bitfinex and Bittrex refusing to touch it, diamond seemed destined to remain languishing in the doldrums. But in the trading stakes – or rather the pump and dump stakes – every coin has its day, and Saturday was BCD’s.
In a matter of minutes, the coin multiplied 40x on Kucoin, sending it over $800 and causing one of the largest green candles ever witnessed on an exchange. The movement prompted Kucoin to issue the following warning to its customers:
Night of the Long Forks
Starting on the evening of Friday January 12, traders went long on many of the bitcoin forks that have been created in recent months. Predictably, the action seemed to emanate from the Asian markets, before impacting on all global exchanges that supported the coins. Due to the low price of many of these coins – bitcoin file costs around $0.2 for example – coupled with low trading volume, orchestrating pumps is relatively easy.
For anyone who FOMOs hard and piles into these rising green candles, however, there is a high risk of failure. BCD’s meteoric movement was evidently an orchestrated P&D. Many traders, unaware of the pump and dump taking place, will have had sell orders set for bitcoin diamond. Once the scheme kicked in, eating through that resistance was a doddle.
The majority of forked coins have few real use cases, but the events of the past 24 hours may entice traders to set and forget their airdropped coins from now on. Given the meagre sums to be made from trading these coins at their regular price, it makes more sense to set an unrealistically high sell order, just in case the unthinkable happens.
Do you think exchanges ought to stop trading when coins are blatantly being pumped? Let us know in the comments section below.
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Brazil Regulator Prohibits Funds from Investing in Cryptocurrencies
Brazil’s Securities and Exchange Commission announced on Friday that local investment funds are prohibited from investing in cryptocurrencies. The country’s regulators are currently working on crypto regulation; seven public hearings have already been held to discuss this subject.
Also read: South Korea Urges 23 Countries, EU, and IMF to Collaborate on Curbing Crypto Trading
No Crypto Investments Allowed
It states that direct acquisitions of cryptocurrencies by investment funds “are not allowed.” Reuters elaborated: “Cryptocurrencies cannot be considered financial assets, regulator CVM ruled, in effect barring funds from investing directly in assets such as bitcoin.”
Furthermore, local funds interested in investing in cryptocurrencies indirectly by taking a stake in foreign funds should await further clarification from the regulator. The circular reads:
We consider it appropriate for managers and investment funds to await further and more conclusive manifestation of this oversight on the subject to structure the indirect investment in cryptocurrencies as described, or even in other alternative forms that seek this kind of exposure to risk.
Crypto Regulation Being Discussed
The Brazilian Chamber of Deputies established a special committee in May of last year to discuss the regulation of cryptocurrencies including bitcoin. Seven public hearings were held in the second half of 2017 to debate this topic.
In December, the CVM and the Central Bank of Brazil published a joint statement warning about the risks associated with cryptocurrencies.
At the December public hearing held at the Chamber of Deputies, the executive manager of Banco do Brasil’s Digital Affairs Directorate, Jonatas Ramalho, defended the creation of rules that would allow a more favorable environment for the use of cryptocurrencies. According to him, “The regulation of bitcoin and similar [assets] could open the way for banks to offer products and services aimed at cryptocurrencies.”
What do you think of Brazil’s regulator prohibiting funds from investing in cryptocurrencies? Let us know in the comments section below.
Images courtesy of Shutterstock and the CVM.
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