Daily Archives: July 7, 2018

Millions of Bitcoins May Be Lost Forever

Jameson Lopp, a former Engineer for BitGo and the current Engineer for CasaHODL, claims that over BTC 4 million have been lost and over BTC 2 million have been stolen. This suggests that there are much fewer Bitcoins in circulation than the total supply of BTC 17.13 million that have been mined since the genesis block.

There is some debate that perhaps Bitcoin’s price is underestimated as it doesn’t account for the lost Bitcoins. However, others argue that the price of Bitcoin is based on supply and demand and adjusts naturally; if these lost Bitcoins were somehow found, then Bitcoin’s price would go down accordingly.

If millions of Bitcoins truly are lost, then the statistic that needs adjustment is the market capitalization. Currently, the market cap is USD 114 billion as of 5 July 2018, but if BTC 4 million are lost, then the true market cap is near USD 88 billion.

Estimates of lost coins should be taken with caution, however. The most often cited statistic for lost Bitcoins comes from a Chainalysis study released in November 2017 that concludes that BTC 3.79 million are lost. This number is only an estimate based on assumptions, since there is no way to know if Bitcoins are truly lost. The study assumed that Bitcoins idling for a long time are lost, which is not always true.

Chainalysis also assumes that the over BTC 1 million Bitcoins mined by Satoshi Nakamoto are “lost”, having idled for almost ten years. It is unlikely that the private keys for these were lost, but one can only speculate on what plans Nakamoto had for the Bitcoin mined, if at all there were any plans.

Regardless of how many Bitcoins actually are lost forever, the fact that Bitcoins can be lost will be important for Bitcoin’s future price. Over time, people will be losing Bitcoins due to computer malfunctions, throwing out private keys by accident, other disasters, and death. Considering Bitcoin has a fixed maximum supply of 21 million coins, losing them will provide a mechanism for long-term deflation, which will cause Bitcoin’s price relative to fiat to increase.

 

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Major Israeli Exchange to Pass on Client Crypto Details to Tax Office

A local Israeli cryptocurrency exchange has agreed to pass on client information to tax authorities as part of a government drive to tighten cryptocurrency regulations, according to local Israeli news source Calcalist.

Major Israeli crypto exchange Bits of Gold will pass on details relating to large cryptocurrency deposits over $50,000 total in the last 12 months. The move by the government is reported to be aimed at reducing money laundering through crypto exchanges

Israel’s Prohibition on Money Laundering Law has required withdrawals and deposits over NIS 50,00 ($14,700 at time of press) be reported to the country’s Money Laundering and Terror Financing Prohibition Authority (IMPA) with verification required from investors regarding the legality of deposits made. Taxation on cryptocurrency trading profits has recently been set at 25% with exchanges paying 17% VAT

Privacy laws are clearly being tightened as in the past courts have often backed citizen’s rights to privacy in financial matters concerning tax details. Bits of Gold had recently been audited although it’s been reported that the tax authorities were seeking information regarding large investors who had used the company.

Authorities still regard digital currencies with a degree of suspicion, despite better consumer protection and increasing global regulation of the space. Earlier this year Israel’s finance minister Moshe Kahlon signed a draft legislation which has been introduced to combat cryptocurrency money laundering in the country. The money laundering legislation, which is an addition to an existing law, will now include digital currency for the first time.

There have been frequent cases with many of Israel’s banks refusing to accept cryptocurrency-related money, and on two occasions banks were forced to accept the money after being taken to court. Earlier in the year Israel’s largest bank, Bank Hapoalim, was found to have unlawfully blocked a money transfer of USD 195,00 coming from a European cryptocurrency exchange platform, citing unsubstantiated claims of suspected money laundering and terrorist financing.

An IMPA draft bill from May of this year has stipulated that, if passed, financial entities will be required to keep 5 years-worth of trading records on each client including their IP addresses, according to ClavinAyre.com

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Crypto Giant Huobi Australia-Bound for ‘Knowledgeable and Sophisticated’ Trading

Singapore crypto giant Huobi has announced it has begun trading from Sydney on its new Australian platform, reports the Asia Times.

It has been a huge week for Huobi, the world’s third-largest crypto exchange by trade volume also announced that it has opened registration on its newly created U.S.-based “strategic partner” trading platform.

The new Australian venture has come about following Huobi’s comments that Australian traders are reputed to be well respected. The company will be trading 10 pairs including BTC, ETH, BCH, and LTC in Australian dollars.

The company suggests that Huobi’s billion dollars a day in trade volume can be further boosted with the addition of new trading pairs. Smaller pairs at present include Ethereum Classic (ETC), Power Ledger (POWR), Aelf (ELF), Cortex (CTXC), Data (DTA) and IOST with more “obscure” pairs to follow.

In another development, tech giant IBM has been expanding into Australasia and has signed a five-year deal security deal worth $740 million with the Australian government. The focus of the deal is to improve the company’s cybersecurity capabilities by employing blockchain related technologies.

IBM Australia and New Zealand managing director David la Rose says that the deal is a testament to their 40-year partnership with the Australian government, adding, “We look forward to helping the Australian government to re-define the digital experience for the benefit of all Australians.”

The new deal can be seen very much as a rebuilding of trust between IBM and the Australian Government which has recently been dented by the company’s 2016 national census survey receiving four “distributed denial of service” notices at the time, which temporarily shut down the service. IBM agreed to pay the Australian government more than A$30 million ($US20 million) in compensation.

Huobi’s latest US cryptocurrency marketplace comes via a San Francisco-based company called HBUS, which will support nine cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Ethereum Classic (ETC), Bitcoin Cash (BCH), Tether (USDT), DASH, Civic (CVC) and TrueUSD (TUSD), according to Cointelegraph.

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Facebook Creates Director of Engineering Blockchain Position

Facebook has confirmed that they have created a new position, Director of Engineering Blockchain, and have appointed Evan Chang. This is the latest in a series of developments that show social media powerhouse Facebook is considering blockchain technology integration.

Evan Chang was the head of Programmable Languages & Runtimes at Facebook for the past 3 years and is a well-respected computer programmer. He has been an advisor to blockchain projects and startups including Zilliqa and ChainLink. He will be joining a team led by David Marcus that is exploring how to best leverage blockchain technology across Facebook’s platform that was announced in May 2018. David Marcus is the former head of the Facebook messenger app, and under his guidance, its user base exploded to over 1 billion people. He is also on the Board of Directors of Coinbase — one of the most popular cryptocurrency exchanges headquartered in the United States.

Facebook recently created yet another blockchain position, VP of Product Blockchain, and appointed Kevin Weil who was formerly Instagram’s VP of Product. As can be seen, Facebook is appointing high-level employees with powerful skillsets to blockchain positions, which indicates they are taking blockchain technology seriously. Seems like it is only a matter of time until Facebook puts blockchain technology into operational use.

Launched in 2004, Facebook is headquartered in the United States and is the world’s largest social media platform with 2.2 billion active users as of January 2018. Facebook’s income was USD 40 billion in 2017, and its stock has a market cap of USD 575 billion as of this writing on 6 July 2018. This is 5 times Bitcoin’s market cap of USD 114 billion. When Facebook inevitably implements blockchain technology it is expected to spread the new technology to more people than ever before.

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How Much Would Bitcoin’s Price Be If It Extinguished Fiat Currency?

An interesting thought experiment can be conducted in regards to what Bitcoin’s price would be if all fiat currency ceased to exist, and if all of that money were put into Bitcoin. This can be defined as Bitcoin’s extinguishing capacity.

There are varying answers depending on what is defined as money, and money supply estimates for this article are taken from The Money Project which was last updated in 2017. Currently, there are BTC 17.128 million in circulation, and at a price of USD 6,600 each, that yields a total Bitcoin market cap of USD 113 billion.

The Bitcoin market cap pales in comparison to any measure of global money supply but theoretically, Bitcoin or some other cryptocurrency could become the dominant form of currency in the future and maybe in a radical scenario, fiat could simultaneously become obsolete. This extreme scenario is what this article explores.

For starters, all the fiat coins and banknotes in the world amount to USD 7.6 trillion. If all of these coins and banknotes were wiped out and an equivalent amount of money was invested into Bitcoin, Bitcoin’s price would be USD 443,700. John McAfee says Bitcoin will hit USD 1 million by 2020, which would entail more than double the amount of money being invested in Bitcoin than the total supply of fiat cash in the world.

However, the total amount of fiat currency in existence is nowhere near the amount of total money in the world. Combining the money held in all of the world’s checking accounts with the total amount of fiat yields USD 36.8 trillion, and this is considered “narrow money” since it is easily accessible. If global narrow money were converted to Bitcoin, then Bitcoin’s price would be USD 2.148 million.

There is much more money in the world that isn’t easily accessible and considered “broad money”, including savings accounts, money market accounts, time deposits, and all the narrow money, totaling USD 90.4 trillion. This is probably the best measure of all the “real” money in the world, and if all broad money were put into Bitcoin then Bitcoin’s price would be USD 5.28 million.

Broad money is considered physical money, yet only comprises 8% of all the money on the books in the world. 92% of money on the books is non-physical. USD 217 trillion of non-physical money is tied up in all of the world’s real-estate, and it is quite interesting that there is nowhere near enough physical money in the world to buy all of the world’s real-estate. This suggests that the real-estate market is hyperinflated and not based on reality.

It gets worse; the governments of the world hold USD 215 trillion of debt, which is more than double all the physical money in the world. This is an excellent way to visualize how unsustainable the global economy is, and this stems from uncontrolled money printing. Bitcoin solves the out-of-control money printing problem, since it cannot be printed at will and only 21 million Bitcoins will ever be created. This fact is what could cause Bitcoin to become the primary global currency since unlimited money printing could destroy fiat currency.

If that wasn’t bad enough, the global derivatives market is somewhere between USD 544 trillion and USD 1,200 trillion, outweighing physical money by an order of magnitude. A derivative is a contract between two parties that derives value from the performance of an underlying asset. Derivatives trading played a primary role in the 2008 global financial crisis, which was on par with the Great Depression. Derivatives can be considered another example of out-of-control money printing, while simultaneously being a deceptive yet legal way for investment bankers to take physical money out of the markets.

To sum up, if all the world’s fiat is put into Bitcoin, the price per coin would be near USD 500,000, and if all the physical money was put into Bitcoin the price per coin would be near USD 5 million. While it seems like a radical possibility, a global economy tiring of a flawed system relying on a tremendous amount of money printing – itself a possible death knell for fiat – could lead to Bitcoin becoming the primary global currency.

 

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PR: Yocoin Celebrates Its Independence from Ethereum

Bitcoin Press Release: “June 25th marks the day of Yocoin’s independence from Ethereum.” YOCOIN had its Independence Day press conference on June 25th 2018, 10:00 (GMT+8).

June 29th, 2018. Dubai, UAE. Founder and CEO of Yocoin S.Banerjee announced:

“Yocoin has completed token migration from ERC20 to mainnet. The community consensus initiated the YOCOIN network and generated the Genesis block, which signifies YOCOIN’s official independence. YOCOIN is now one of the most competitive major public chains in the world.”

At the conference, S.Banerjee introduced YOCOIN’s major breakthroughs since its founding:

  • May 25th, launch of virtual machine in beta
  • May 31th, the launch of mainnet Odyssey 2.0
  • June 25th, creation of Genesis block, independence from Ethereum

Regarding virtual machines, Sun said:

“We launched our first version of the virtual machine on May 25th, which is fully compatible with Ethereum’s virtual machine environment. Developers can use Solidity to develop, debug, and compile in a familiar Remix environment without having to learn a new coding language. On July 31th, we will launch the official version of TVM, which will allow developers to use the YOCOIN virtual machine to develop decentralized apps that are significantly better than Ethereum and unlock a powerful decentralized ecosystem.”

Today’s conference shed light on YOCOINs two major updates, which is also what YOCOIN Independence Day is about:

  • Genesis block creation
  • Token migration

Why is this migration necessary?

During token migration on June 25th, all ERC20 tokens will be migrated YOCOIN  mainnet.

First, Ethereum has low TPS, which bottlenecks many dApps from running on the network. YOCOIN, on the contrary, uses a DPOS consensus mechanism, which is more than ten times faster than Ethereum’s.

Second, Ethereum has high gas fees, while YOCOIN doesn’t charge any transaction fees. YOCOIN also uses a bandwidth model to enhance network security, so that users and dApp developers can transfer funds in a safer and more convenient manner.

Third, Ethereum uses PoW which makes it difficult for the average user to participate at a low cost. That is why their community is not fully democratic.

Sun explained the difference between June 25th Independence Day and May 31th mainnet launch:

“Becoming independent from Ethereum is a complex process. It needs the community’s consensus to initiate the network and conduct large-scale collaboration. We need the consensus of more than one million users in the YOCOIN community to launch the mainnet and achieve complete independence from Ethereum”.

Sun also spoke about the significance of YOCOIN’s independence from Ethereum:

“YOCOIN’s independence paves the way for a community governance mechanism that is based on democratic election. It will bring the notion of ‘popular sovereignty and natural rights of the token’ to life and provide support for all developers within YOCOIN’s ecosystem. This is how we will realize YOCOIN’s vision of a truly decentralized Internet”.

The Super Representatives (SR) Election is the highlight of the livestream. According to previous statements, YOCOIN will launch its SR election on June 26th. As an epitome of community governance, this election will make YOCOIN one of the few communities that has the capability for self-governance.

In a previous livestream, Justin also focused on token migration, a hot topic amongst users. This time, Justin re-emphasized that YOC migration is supported by mainstream exchanges and does not have an expiration date. Users who forget to migrate their tokens will be able to do it later.

Livecoin.net, along with other renowned global exchanges will permanently support YOC migration. YOCOIN’s journey has been a marathon, but we combined speed with solid work and authenticity.

Overseas blockchain projects have a significant lead over Chinese ones. It is safe to say that we will see some solid progress in the future with a lot of potential waiting to be unleashed. Who will come out on top during this dynamic time and become the leading blockchain community in

China? Will it be EOS? Or YOCOIN?
The raw force of blockchain industry development is often seen at the beginning stages of most industries. It will unleash the potential of ongoing projects and help the industry reach a stable phase of growth.

Visit the Website: https://www.yocoin.org/
Connect on Twitter: https://twitter.com/yoc_crypto
Chat on Telegram: https://t.me/yocointeam
GitHub: https://github.com/yocoin15

Media Contact
Name: Sarvesh Agrahari
Email: support@yocoin.org

Yo Coin is the source of this content. Virtual currency is not legal tender, is not backed by the government, and accounts and value balances are not subject to consumer protections. Cryptocurrencies and tokens are extremely volatile. There is no guarantee of a stable value, or of any value at all. Token sales are only suitable for individuals with a high risk tolerance. Only participate in a token event with what you can afford to lose.

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