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

Bitcoin News

Oil Price Dropping Could Drive Investment Into Bitcoin

Published

on

Oil Price Dropping Could Drive Investment Into Bitcoin
Oil Price Dropping Could Drive Investment Into Bitcoin

The Organization of Petroleum Exporting Countries (OPEC) and Russia have agreed to push up their regular March meeting due to a price collapse. Oil has dropped over 20% in January amid fears of demand cuts related to the coronavirus outbreak. Bitcoin, however, is seeing a price bump.

The meeting will likely conclude with a mutual agreement to cut back oil production. The goal of limiting production is to improve the supply and demand curve and maintain price stability. Interestingly, however, Bitcoin’s response to the global outbreak threat has been to increase dramatically. While many see Bitcoin functioning as a commodity of sorts, this recent divergent price action proves otherwise. Instead, loss in demand for oil could further drive Bitcoin price increases. 

Image result for bitcoin bull

The demand reduction has come mainly from China, with travel bans and manufacturing closures due to the epidemic. As demand collapses, available supply increases exponentially, driving prices down. With China as the most significant center of demand, OPEC nations realize that the current price declines may be just the beginning. Reducing production would likely stave off the worst-case fears for the market. However, supply has already been reduced dramatically with the recent pipeline shutdown in Lybia. That event removed 800,000 barrels per day. What’s more, the previously confirmed reduction of 1.8 million barrels by Russia and OPEC has been priced in.

This type of supply and demand activity has driven the price of oil into lows for the year. Bitcoin, however, has responded with stability and strength amid fears of global confusion. February has already started strong with a 2% bump in price, after an increase in January to the tune of 26%.  Global fears of disease outbreak and its impacts have driven investors into Bitcoin because of its ‘safe haven’ status. This trend could continue, as oil sells off. With the global loss in value of oil, investors may continue to move funds out of the commodity and into ‘digital gold.’ Protected from inflation, and hedged against loss, Bitcoin is a safe investment for traders during times of economic and geopolitical change.

Bitcoin News

Finnish Customs No Sure What To Do with 15M Euro Seized in Bitcoin

Published

on

Finnish Customs No Sure What To Do with 15M Euro Seized in Bitcoin
Finnish Customs No Sure What To Do with 15M Euro Seized in Bitcoin

While some governments are selling bitcoins (BTC) confiscated through law enforcement actions, Finland is yet to decide what to do with its seized BTC. Finnish Customs, operating under the Ministry of Finance, has reportedly been deliberating about what to do with 1,666 bitcoins seized from drug criminals years ago. As reported by Finland’s national public broadcasting firm on Feb. 25, the Finnish Customs service doesn’t want to auction the confiscated Bitcoin because the cryptocurrency could be returned to the hands of criminals.

According to the report, at the time of the seizure the amount of confiscated Bitcoin was worth less than 700,000 euros, or roughly $760,000. As of press time, 1,666 BTC is worth nearly 15 million euros — or more than $15.5 million, according to data from Coin360. The authority was reportedly initially planning to auction the funds back in 2018, but eventually ended up with hodling the crypto, citing Anti-Money Laundering (AML) concerns. Pekka Pylkkänen, head of finance at the Finnish Customs service, said that cryptocurrencies like Bitcoin are primarily used for illicit practices:

“From our point of view, the problems are specifically related to the risk of money laundering. The buyers of cybercurrency rarely use them for normal endeavours.”

Apart from holding over $15 million in Bitcoin, Finnish Customs also holds a number of seized altcoins worth of millions of euros, the report notes. 

Whatever the reason behind Finnish Customs’ decision to hodl the confiscated crypto, the authority is apparently not alone in thinking that Bitcoin and other cryptos might be more dangerous than cash in terms of money laundering. In July 2019, Treasury Secretary Steven Mnuchin voiced an extremely sceptical opinion of Bitcoin, arguing that cash is not laundered in the same way as Bitcoin. Meanwhile, other countries over the world do not appear so concerned about taking profits from hodling Bitcoin.

On Feb. 18, the United States Marshals Service sold another batch of Bitcoin confiscated during its enforcement operations. According to data compiled by well-known crypto industry figure Jameson Lopp, the U.S. Marshals has missed out on over $1.7 billion by selling seized Bitcoin too early. The agency has confiscated and sold 185,230 bitcoins, according to Lopp’s data.

Continue Reading

Bitcoin News

Bitcoin Gold May Be Held Captive by Whale With Almost Half The Supply

Published

on

Bitcoin Gold (BTG)’s price is being manipulated by a whale controlling close to half of the circulating supply. These are the findings of an analysis conducted by an independent trader and analyst, who preferred to remain anonymous. He published his findings in a blog post, where he explained why he believes a single group of people accumulated their way into a huge Bitcoin Gold position, and are now using that supply to control the market.

The events started in August 2018, when Bitfinex margin long positions began its sharp ascent to include almost two million BTG. The exchange makes its margin data publicly available, which can help gauge the general trader sentiment in a particular coin — for example by comparing the ratio of short and long positions.

Image result for bitcoin

In Bitcoin Gold’s case, the strong increase in margin positions was accompanied by lackluster price action. While the coin generally followed the broader crypto market, the price eventually spiraled downward.

The analyst estimated that the 1.9 million BTG held at some point in Bitfinex represents between 38% and 48% of its total circulating supply. Bitcoin Gold was born in 2017 after a network fork from Bitcoin (BTC), thus maintaining its original history up until that point. This means that Bitcoin Gold contains at least as many inactive coins as its parent, including Satoshi’s cache. He further elaborated how he reached that figure:

“Over 11 million Bitcoins (BTC) haven’t moved in the last year. Considering big wallets’ unwillingness to claim their coins due to fear of private key leak for a minimal return, it can be argued that a number even larger than 11 million BTGs are inactive or lost forever.”

He then estimated a figure of 4 to 5 million active BTG. When asked by Cointelegraph why he is so certain that this is the work of one whale, he explained:

“The accumulation was very consistent and systematic over the course of almost a year, it would be almost impossible for it to be a coincidence that multiple entities were using the exact same system to accumulate.”

Continue Reading

Bitcoin News

DeCurret Partners with KDDI So They Can Test A Digital Currency

Published

on

DeCurret Partners with KDDI So They Can Test A Digital Currency
DeCurret Partners with KDDI So They Can Test A Digital Currency

As the origin of cryptocurrency, Japan often leads the way when it comes to joint projects between companies in different fields, united by their desire to lead the pack in innovation. E-commerce giant Rakuten partnered with the East Japan Railway Company on June 5 to promote a cashless payment system. 

A new collaboration is in progress between the Japanese telecom giant KDDI and crypto exchange DeCurret. According to a Feb. 18 press release, the two companies — in collaboration with au Financial Holdings and WebMoney — will conduct a joint-project to test digital currency issued on a blockchain for real-world transactions.

As part of the implementation for this test, KDDI will make requests to WebMoney to issue and distribute digital currency, while the latter’s parent company au Financial Holdings manages the joint project. DeCurret will take a lead role by providing the platform for both the issuance and management of the digital currency. 

The joint-project, which runs from Feb. 18 to Feb. 28, is part of DeCurret’s efforts to increase the range of services on their platform. In this case, the platform will be tested using cryptocurrency for real-world transactions like those at cafes. DeCurrent has come a long way since its launch in April 2019. The crypto exchange has already gotten regulatory approval from Japan’s Financial Services Agency to allow its users to refill the country’s Suica transportation cards by using cryptocurrency.

Continue Reading

TRENDING

Copyright © 2015 Crypto Global News Team.