Connect with us
https://paxful.com/?utm_source=CGNT&utm_medium=Banner&utm_term=Crypto%20Global%20News%20Team

Bitcoin News

CHINA BUYING MORE GOLD, BITCOIN ACCUMULATION INEVITABLE?

Published

on

CHINA BUYING MORE GOLD, BITCOIN ACCUMULATION INEVITABLE?

As economic tensions escalate and the Trump administration continues with its war on trade, China has started stockpiling safe-haven assets. Gold appears to be the asset of choice for the central bank but Bitcoin is likely to be a good option for the people.

CHINA ADDS 100 TONS TO GOLD RESERVES

According to a Bloomberg report today, China has stockpiled 100 tons of gold bullion adding to the accumulation it began in December.

Data from the People’s Bank of China indicates that it has increased its bullion holdings to 62.45 million ounces in August from 62.26 million in July. Last month almost 6 tons of gold was added to China’s reserves which are now at around 100 tons accumulated over the past eight months.

As central banks cut interest rates in reaction to economic slowdowns, the price of gold inevitably increases. Russia has also been on a gold-buying spree as the US applied sanctions continue to hurt its economy.

As a result, the price of gold has increased by over 18% this year alone, and reached a six-year high of $1,550/oz last week according to goldprice.org. The buying spree is set to continue, according to an economist at National Australia Bank Ltd., John Sharma, central banks now have an incentive to diversify.

“Also, with increasing political and economic uncertainty prevailing, gold provides an ideal hedge, and will therefore be sought after by central banks globally.”

Goldman Sachs Group is among investment banks that expect the precious metal to top $1,600 an ounce within the coming months.

YUAN DOWN, BITCOIN UP

The ongoing trade war has already affected the Chinese Yuan which has fallen to its lowest level against the dollar in over a decade. This has been observed with a negative correlation to the price of bitcoin which has also fallen to a record low recently.

Bloomberg noted the drop in a report last week suggesting that the ‘digital gold’ is likely to become a hedge for the people as the national currency weakens. Other evidence of this is the BTC premium that can often be seen on exchanges catering to Chinese traders. London School of Economics researcher, Dr. Garrick Hileman, added;

“You can see it in the premium price paid sometimes for Bitcoin in exchanges like Huobi that primarily cater to Chinese.”

Recent protests in Hong Kong have also added to the lure of bitcoin as demonstrators attempted a run on Chinese banks. All indicators are pointing to further accumulation of BTC by the world’s largest population as its central bank loads up on gold.

Will Chinese demand for bitcoin push prices higher? Add your thoughts below.

Bitcoin News

Bitcoin Annual Investment Flow Could Beat Visa Next Halving

Published

on

Bitcoin Annual Investment Flow Could Beat Visa Next Halving
Bitcoin Annual Investment Flow Could Beat Visa Next Halving

Bitcoin (BTC) is already processing 1% of the world’s GDP and the number is growing by “an order of magnitude” every halving cycle. According to statistician Willy Woo, who analyzed data from monitoring resource Coin Metrics, Bitcoin’s investment flow is $727 billion annually.

The number is almost 10% of payment processor Visa’s transaction volumes each year — Visa processes $8.8 trillion in transactions. “Bitcoin’s investment flow (aka annual investment velocity) is presently growing an order of magnitude (10x) every 4 years,” Woo summarized. Per the statistics, Bitcoin should “catch up” with Visa at some point after its next halving cycle, which begins in May. Smaller fiat operators such as PayPal are already falling by the wayside — in 2018, PayPal processed a total of $578 billion.

Woo acknowledged the data for Bitcoin was only an estimate and may include movements between cold wallets held by exchanges, which would not constitute true transactions. Circular payments between wallets, as well as multi-hop transactions with multiple steps, were excluded.

Image result for bitcoin visa

The impressive statistics come as fresh highs in the number of low-balance Bitcoin wallets suggest that more and more private investors are experimenting with the cryptocurrency. According to Glassnode, there are now more wallets than ever with a balance greater than or equal to both 0.01 BTC ($101) and 0.1 BTC ($1,080).

Nonetheless, both private and institutional investors have been found to reward convenience over security when it comes to crypto fund storage. A recent survey revealed that more than 9 in 10 institutional investors, for example, used trusted third parties such as exchanges to store their coins. An industry effort, dubbed “Proof of Keys,” aims to raise awareness of the importance of self-ownership of wallet private keys, but its success so far is difficult to estimate.

Continue Reading

Altcoin News

Craig Wright Threatens BTC and BCH With Possible Lawsuits

Published

on

Craig Wright Threatens BTC and BCH With Possible Lawsuits
Craig Wright Threatens BTC and BCH With Possible Lawsuits

Craig Wright, who claims to be the Bitcoin creator known as Satoshi Nakamoto, has warned the Bitcoin (BTC) and BCH to stop using the Bitcoin database in order to avoid potential lawsuits. He claims that both networks may also violate the laws under the terms of Bitcoin’s original EULA and MIT License. The man behind Bitcoin SV in the recent personal blog post added that he is going to take back control of the system he created, and is ready to fight for his rights this year.

Wrights argues that the distributed Bitcoin database rights are governed by the Copyright, Designs and Patents Act 1988 (CDPA) and the Copyright and Rights in Databases Regulations 1997 (Databases Regulations 1997). So it should be considered as personal property. Dr. Wright claims that representation of 21 million total Bitcoin which each divisible by 100 million Bitcoin is only a verbal deal. The Bitcoin’s creator should have the full rights to claim this unilateral contract with those nodes to issue, adding that:

“As the creator of Bitcoin, I maintain the sui generis rights to any copy of the database created from Genesis in January 2009. I shall not be relinquishing the ownership. I will be licensing it, and have already engaged in a process.”

Ever since 2018 Craig Wright has been the defendant in a lawsuit filed on behalf of the estate of Dave Kleiman, Wright’s late business partner. The claim alleged that following Kleiman’s death in 2013, Wright unlawfully appropriated more than a million Bitcoin (BTC) that the duo had mined jointly in the early years of the cryptocurrency, as well as some related intellectual property. The new trial with Kleiman’s case has been postponed to April 17, and the trial won’t be held till July 2020. But in any case, it shouldn’t take long to find all these claims are legitimate or not.

Continue Reading

Bitcoin News

Chinese Quarantines Cash To Stop Coronavirus – Bitcoin Not An Issue

Published

on

Chinese Quarantines Cash To Stop Coronavirus - Bitcoin Not An Issue
Chinese Quarantines Cash To Stop Coronavirus - Bitcoin Not An Issue

It has been reported that China has started a quarantine of its used banknotes to try to stop the spread of the coronavirus. Meanwhile, the crypto community began to pick up on the news commenting that the use of Bitcoin as a means of payment should fix the issue.

Hubei province, where Wuhan is located, recorded a dramatic spike of almost 15,000 new cases and 242 new deaths in just 24 hours after provincial authorities changed their method for diagnosing cases on Feb 13. Dovey Wan, founding partner of Primitive Crypto claimed on twitter earlier today that the government is underreporting the numbers. BBC’s recent report informed of 2,009 new cases and 142 more deaths. According to the official figures, the total number of infected in the nation is above 68,000, and the death toll is at 1,665.

Image result for quarantines

Chinese crypto mining facilities allegedly being shut appears to have had little to no impact on Bitcoin (BTC) network hash rate. The network appears to be performing stronger than ever with hash rates continuing to rise. Mati Greenspan, the founder of Quantum Economics,said that it is hard to estimate the impact on the market right now, “How it will affect Bitcoin’s price, I really couldn’t tell you. At the moment, I don’t feel like it is.” Meanwhile a spokesperson for mining hardware manufacturer Bitmain said that they are seeing no impact at all.

While the crypto community is speculating on twitter whether Bitcoin could have been the answer to the spread of the virus through banknotes, a Coronavirus based ERC-20 corona-coin (NCOV) has been launched according to a Reddit post. According to the website, its aim is to spread awareness about the outbreak.

Continue Reading

TRENDING

Copyright © 2015 Crypto Global News Team.