Understanding cryptocurrencies bitcoins and blockchains

In early May, MicroStrategy CEO Michael Saylor took to Twitter to, once again, proclaim his trust in Bitcoin. “Bitcoin is the best hedge against inflation,” he tweeted, citing evidence that Bitcoin’s price has risen over time since his own company bought a billion dollar stake in the digital currency in August 2020 . advertisement advertisement But Saylor’s words have rung hollow in the weeks since then, as Bitcoin has crashed alongside so many other facets of the U.S. economy. For years, cryptocurrency advocates have touted Bitcoin as a hedge against the inflating value of fiat currencies. Historically, Bitcoin has even seen popular adoption in foreign countries experiencing widespread economic instability like El Salvador, Lebanon, and Venezuela. But with inflation surging to its highest level since 1982 everything from gas to groceries is more expensive than it’s been in decades. And as the U.S. dollar declines in value, … [Read more...] about Inflation is up, so why isn’t the price of Bitcoin?

Share to Twitter Share to Linkedin Day 4. Bitcoin's value hit its low point on Friday On Friday, I skip breakfast again; it’s an unavoidable part of the Bitcoin diet as there are no places that serve food before 10 a.m. accepting my currency. I lose my appetite anyway when I check the value of Bitcoin; it has plummeted to $90 over night. It has been on a steady decline since I started my Bitcoin challenge. Is it me? My editor suggests the value is falling because I’m showing “ what a drag ” it is to use it. But I think it's due instead to a huge Bitcoin lawsuit that became public Thursday night. The virtual money  has sparked a $75 million (real world currency) complaint; Seattle start-up Coinlab is suing Mt. Gox, saying the Japanese Bitcoin exchange has failed to follow through on the partnership they inked, refusing to let Coinlab take over management of Mt. Gox’s American and Canadian accounts as it allegedly agreed to do. Wrote Adrian … [Read more...] about Living On Bitcoin For A Week: Bitcoiners Are The New Vegans

Share to Twitter Share to Linkedin It USED to be a crackhouse. Now it's being renovated. Day 6. It’s Sunday morning. I have only two days left of living on Bitcoin. I can see the US-minted light at the end of the tunnel, but the end of my week is going to be an adventure. My landlord didn’t want to take Bitcoin for rent. Understandably. I think she’d be similarly put off if I offered to pay the rent in Starbucks gift cards or in the form of a week’s supply of succulents (which are all the planting rage in San Francisco). She’s willing to accept the rent late when I’m back to using greenbacks after the week is up, but that’s a time-traveling violation of my rule for this experiment: all transactions must happen in Bitcoin. It is May 5, the deadline for my rent payment. I have to move out. The Forbes E-book On Bitcoin Secret Money: Living on Bitcoin in the Real World , by Forbes staff writer Kashmir Hill, can be bought in Bitcoin or … [Read more...] about Living On Bitcoin For A Week: Can’t Pay The Rent

Share to Twitter Share to Linkedin Bitcoin bank Custodia today sued the Federal Reserve Board of Governors and the Federal Reserve Bank of Kansas City charging they have “unlawfully” delayed for 19 months acting on its application for a master account with the Federal Reserve. The bank, chartered in Wyoming under a crypto-friendly statute passed in 2019 allowing for “special purpose depository institutions,’’ says the master account would reduce its costs and is “vital” to its core mission of providing a bridge between digital assets and the U.S. dollar system. According to the suit, the Federal Reserve has a legal obligation to act within a year and states on its own paperwork that it ordinarily takes just five to seven days to act on a master account application. Custodia’s suit alleges the Kansas City Fed’s processing of its application was moving along until the Spring of 2021, when the main Federal Reserve got involved. The suit seeks to force the … [Read more...] about Bitcoin Bank Custodia Sues Federal Reserve, Demanding Decision On Master Account

- A + A (June 23): Bitcoin climbed as some executives and investors expressed optimism that the selling pressure that drove the largest token to an 18-month low over the weekend is abating. The largest cryptocurrency rose as much as 4.7% to US$20,786, while Ether climbed as much as 6.4%. Bitcoin is now up 16% over the past few days, while many altcoins have seen far bigger gains. The crypto advance came even as European stocks were trading mixed. With several crypto lenders and at least one hedge fund struggling to meet their financial obligations, concerns had mounted that the wave of liquidations that sank cryptocurrencies last week would worsen. Binance Chief Executive Officer Changpeng Zhao on Wednesday offered a more upbeat assessment, saying the “cascades” of deleveraging are getting smaller. Crypto markets are struggling to consolidate after declining precipitously in recent months as the Federal Reserve hiked interest rates to fight inflation. The collapse … [Read more...] about Bitcoin advances as concerns over deleveraging ‘cascades’ ease

This article first appeared in Forum, The Edge Malaysia Weekly, on June 20, 2022 - June 26, 2022. - A + A AI and blockchain systems add a level of risk to the framework of financial risk management that can be categorised as new technological risks that organisations need to be aware of, and updated in the cybersecurity risk framework. By integrating security into every stage of the digital transformation, we can keep computerised systems safe from cyberthreats. It is imperative that financial risk management spans the entire life cycle, from conception to disposal. Security management is evaluated at certain points called “control gates” or “decision points”. The organisation must ensure security measures are implemented, security concerns are addressed and risks are understood before moving on to the next life cycle phase. Standards can be continually updated and improved using agile approaches. As part of integrating security, a security planning … [Read more...] about My Say: Emerging risks from AI and blockchain systems

- A + A (June 22): Bitcoin resumed its fall on Wednesday (June 22), moving in tandem with weakening stocks amid mounting concerns about a global recession. The largest cryptocurrency declined as much as 4.3% to US$19,947 (about RM87,866.53), and was holding right around the key US$20,000 level as of 9.08am in London. Ether fell by a maximum 5% to US$1,066.02. Shiba Inu, the 14th-biggest cryptocurrency by market cap, rallied 14% in the past 24 hours though its momentum was tailing off, according to pricing from CoinGecko. “Bitcoin has made ‘a bottom’ but probably not ‘the bottom’,” said Mark Newton, the head of technical strategy at Fundstrat Global Advisors. “Upside targets should materialise near US$23,300 with a max near US$24,800 before prices pull back to likely challenge lows into the final week of June.” Cryptocurrencies have been moving for months in the same direction as stocks, and Wednesday’s moves were no exception as investor appetite for risk … [Read more...] about Bitcoin sinks again as risk-off mood returns on recession fears

- A + A (June 22): If you’re a stock trader, you should probably be turning your attention to cryptocurrencies right about now. That’s according to Mark Mobius, who co-founded Mobius Capital Partners after spending more than three decades at Franklin Templeton Investments. “Cryptocurrencies are a measure of investor sentiment,” he said in an interview Wednesday. “Bitcoin goes down, the next day the Dow Jones goes down. That’s the pattern you get. That shows that Bitcoin is a leading indicator.” Only when institutional and retail investors truly “throw in the towel” and stop putting more money into the market because of losses is when sentiment has hit rock bottom, he said. “That’s the time to start buying stocks.” Moves in Bitcoin and global stocks have become more positively correlated this year Worries about global recessionary risks have wiped out billions in Bitcoin’s market value, with the token crashing about 70% from its peak to trade near US$20,000. … [Read more...] about Bitcoin is leading indicator of stock-market bottom, Mobius says

- A + A (June 22): An Indian ministerial panel will meet next week to discuss a goods and services tax on cryptocurrency transactions, people with knowledge on the matter said. The panel, comprising federal and states’ finance ministers, is seeking to broaden the tax net to track dealings in virtual digital assets in a more effective manner, the people said, declining to be identified citing rules on speaking with media. The panel is meeting for two days starting June 28 in the northern Indian state of Chandigarh. The panel is unlikely to finalize a rate in the upcoming meeting but discussions may be held on placing it in the highest tax slab of 28%, the people said. A finance ministry spokesperson did not immediately respond to calls seeking comments. Earlier this year, Finance Minister Nirmala Sitharaman imposed a levy of 30% on income from transfer of virtual assets and a 1% tax at source on all crypto transactions in a bid to assess the size of crypto market … [Read more...] about India panel to consider sales tax on cryptocurrency next week

Share to Twitter Share to Linkedin Average Credit Card Interest Rates Have Topped 20% Rising interest rates have pushed the annual percentage rates on credit cards to new highs. The average annual percentage rate on a new credit card is now more than 20%, according to LendingTree’s tracker. It’s the first time that rates have topped 20% since the tracker began in 2018. And rates are poised to go even higher across the board. Credit card balances reached $841 billion in the first three months of the year, according to a report from the Federal Reserve Bank of New York. In the same timeframe, 229 million people opened new credit card accounts, an increase from the previous quarter. [ CNBC ] Inflation Causing 85% Of Americans to Adjust Their Essential Purchases You don’t have to follow the news to know inflation is raging. Inflation in May 2022 was up 8.6% from the past twelve months. A quarter of respondents selected that they only have a little … [Read more...] about This Week In Credit Card News: Average Card Interest Rate Tops 20%; Inflation Wrecking Personal Budgets