As digital currencies transform the world, concepts like Bitcoin continue to percolate into academic courses and higher education worldwide. The French Ministry of National Education’s recently published economics and social sciences resource guide for teachers discusses cryptographic money like Bitcoin.
A Bitcoin Resource Guide for Economics and Social Sciences Teachers in France
Economics and social sciences teachers from France may opt to teach students about cryptocurrencies in the near future. The French Ministry of National Education has issued a resource guide that touches on a wide variety of economic subjects. The eight-page guide discusses Bitcoin with a pedagogical activity card that teaches the different functions of money. The “educational activity two” lessons are comprised of classifying particular examples of money functions specifically with a cryptocurrency. The purpose is for educators to give the example of Bitcoin in order to show students the relationship between traditional money systems and trust as well as other properties. The Ministry of Education also provides resources and proposed activities which include four videos hosted by Dessine-Moi l’éco.
The videos are called “Do you have to trust your currency?”, “Can Bitcoin replace the euro?”, “Is Bitcoin a currency like any other?” and “Is Bitcoin the currency of the future?” The teachers’ resource guide of proposed activities explains that instructors can have students list the functions of currency and show how they apply to Bitcoin. Further, students can separate the euro and cryptocurrencies from a trust point of view. Prior to the Bitcoin section, the resource guide also discusses how central banks mobilize the instruments of monetary policy. According to the Ministry of Education, central banks “create sufficient money to support global demand, but also ensure the preservation of the purchasing power of the currency.” The activity card for French educators says that central banks such as the ECB and Federal Reserve must “react” if there is a risk of accelerated inflation.
Cryptocurrency and Blockchain Education in High Schools and Universities Continues to Grow
The four videos about cryptocurrencies and bitcoin on the Dessine-Moi l’éco website are a few years old as they were published in 2017. Despite the age, they are very informative and the transcript from the video “Is Bitcoin a currency like any other?” explains that Bitcoin is “a virtual currency that circulates on the internet.” The video also notes that cryptocurrencies allow people to measure the value of goods and services in a digital sense and the network transactions serve as a medium of exchange. The film further says that the cryptocurrency can be stored for future use, but also emphasizes that users should “be aware that the euro and bitcoins have different characteristics.” “The euro is a legal tender, this means that it is recognized by the public authorities and that everyone in the Eurozone is obliged to accept to be paid in euros,” the video’s transcript reads. “Even if more and more e-commerce sites and even some physical shops accept the Bitcoin as a means of payment, nothing obliges a merchant to accept them and no one guarantees that they will be accepted in the future,” the video hosted on Dessine-Moi l’éco adds.
Academic institutionsaround the world have embraced spreading blockchain and digital currency knowledge for years now. For instance, the University of Luxembourg provides crypto security courses, Columbia University and IBM offer a slew of educational resources, and the University of Tokyo offers a blockchain innovation course as well. Coinbase recently published findings that disclosed more than 40% of the top universities around the world offer a course in cryptocurrency or blockchain. The study also found that 25% of the students surveyed were interested in taking a course on cryptographic technology. A high school in Brisbane, Australia had a lot of interest in Bitcoin so it prompted Brisbane students to create a cryptocurrency information night. Students at Union Catholic High School in Scotch Plains, New Jersey were also curious about digital currencies and the school’s Business and Personal Finance class added a cryptocurrencies course during the second semester in 2018. Last year, news.Bitcoin.com reported on a Dutch high school exam that featured Bitcoin-themed questions. The French Ministry of Education teaching educators how to address current cryptocurrency trends indicates that academic institutions take the technology very seriously.
What do you think about the French Ministry of Education’s teacher resource guide that discusses Bitcoin and cryptocurrencies compared to the euro? Let us know what you think about this subject in the comments section below.
Image credits: Shutterstock, French Ministry of Education, Dessine-Moi l’éco, and Pixabay.
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ACIF, Asia Crypto Investment Forum hosted by Hashcube, will hold its first meetup on 28th November at The InterContinental Bangkok, as part of Blockchain Thailand Week, to discuss the future of crypto investments.
The Forum will feature Global crypto-industry players such as Bitmain, Bitkub, BTC.com, Carboneum, Coinloan, CoolBitx, Six Network, and many more companies who are shaping the world of cryptocurrency today. Large stakeholders in the crypto industry will also be speaking and sharing their inside knowledge into building a profitable crypto investment portfolio in today’s constantly evolving crypto landscape.
In addition to company exhibits, you will also have the opportunity to speak and network with top individuals within the industry who will answer your questions and help you with your very own crypto investment portfolio.
ACIF will cover various crypto investment topics including:
The current landscape of cryptocurrency and where it’s headed
Investment opportunities in cryptocurrency today
How to start investing in cryptocurrency
How to build a high return crypto portfolio
Crypto Exchange and how you can invest and benefit through it
Mining your own cryptocurrency
Technologies to help you in crypto investment today
With an audience of crypto enthusiasts and top crypto visionaries all gathered together at the InterContinental Bangkok, you will build knowledge and network that will help you be successful in cryptocurrency investment. We hope to see you there!
Buy Ticket Here — Asia Crypto Investment Forum, Bangkok, 28th Nov’18
This is a paid press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.
SBI Securities’ trading revenue surged 19% in 2019 due to the inclusion of SBI VC Trade crypto affiliate in July, SBI Holdings says.
SBI Securities’ trading revenue surged 19.2% in 2019, largely due to the inclusion of the company’s crypto investment wing, which turned a $7.1 million loss into a $30 million profit over the year.
Japanese financial services giant SBI Holdings released its new financial report on Oct. 30. The report analyzed results for the six-month period ended Sept. 30, 2019 and witnessed major growth of SBI’s crypto-heavy venture capital arm in 2019 amid a general decline in SBI’s revenue.
SBI VC Trade profits grow over $30 million over a year
According to the report, SBI VC Trade’s profit before income tax expense has seen a considerable increase in the first half of the fiscal year (FY) 2019. The number has surged from 765 million Japanese yen ($7.1 million) in losses in H1 FY2018 to as high as 3.2 billion yen ($30 million) in profits in H1 FY2019, the firm said.
SBI Holdings noted that SBI VC Trade, an SBI affiliate that operates a crypto asset exchange, became a subsidiary of SBI Securities in July 2019.
SBI’s crypto mining business SBI Crypto surges $10 million
Alongside notable growth of crypto exchange-driven profits, SBI has also recorded a significant increase in profits from its cryptocurrency mining business SBI Crypto, according to the report. As such, the business’ profit before income tax expense added almost $10 million from 783 million yen ($7.2 million) in losses in H1 FY2018 to 293 million yen ($2.7 million) in H1 FY2019.
SBI added that it also expects a further increase in the scale of crypto asset mining due to new miner operations within the year as well as in-house miner operations in 2020.
Earlier this year, SBI established a dedicated division for manufacturing crypto mining chips.
Further advances with Ripple
Similarly to previous financial reports, SBI has again outlined the growing importance of Ripple’s technology in its remittance division, SBI Remit as well as the development of Ripple’s xCurrent-based remittances. SBI noted that its Ripple-connected subsidiary SBI Ripple Asia is expected to cover nearly 50% of the overall Ripple network once the connection is activated.
On Oct. 1, Cointelegraph reported on SBI Securities and five other Japanese brokerage firms including Rakuten Securities setting up Japan Security Token Offering Association.
Do you have a diverse portfolio that contains digital currency? The United States Internal Revenue Service also wants to know your answer.
On Oct. 9, 2019, the United States Internal Revenue Service issuedRevenue Ruling 2019-24 and a series of frequently asked questions, identifying rules governing U.S. taxation of digital currencies. Taxation in the U.S. is unbelievably complex, but the new IRS guidance takes a step-by-step approach to address some of the most common issues facing holders of digital currency.
The basics are as follows: If you hold digital currency and you sell or exchange it, you are subject to U.S. tax. If you are granted digital currency in the form of salary or as a result of a hard fork, you have taxable income. If you receive digital currency as a result of a gift, there is no immediate tax.
U.S. taxation of digital currency is limited to U.S. persons. Who is a U.S. person? U.S. citizens, U.S. green card holders and individuals who spend more than 183 days in the country (measured using a formulaic three-year lookback). If that is you, a tax obligation may exist.
How do you measure your gain or loss from a sale or exchange of currency? It’s the difference between your digital currency cost basis and the fair market value of the property you received in exchange. How do you know what your cost basis is? The FAQs provide detailed guidance, but essentially, the IRS allows two methods for identifying your basis:
1) You can specifically identify the exact currency sold, traced to the ledger, and use the cost of that specific currency to determine your gain or loss.
2) Or you can use the “first in, first out” method, meaning your basis is computed based on the cost of the oldest currency acquisition in your wallet, moving forward in time as you continue to sell currencies.
What about digital currency provided as compensation for services? That type of distribution is treated as ordinary income, not a capital gain, similar to cash paid in the form of salary and wages.
What about cryptocurrency forks? The Revenue Ruling holds that when a taxpayer does not receive units of a new cryptocurrency as a result of a hard fork, the taxpayer also does not have gross income. That is the good news.
However, when units of new cryptocurrency are distributed (either as a complete currency replacement or split with the new currency being issued but old currency still valid), the Revenue Ruling holds that the taxpayer has accession to wealth and therefore has ordinary income. The amount included in gross income is equal to the fair market value of the new cryptocurrency measured as of the date that the distribution (usually via airdrop) is recorded on the distributed ledger.
While the IRS materials provide much-needed guidance, there are some concerns about unexpected hard forks. Many times you find out about a hard fork after the fact. Nevertheless, the IRS takes the position that taxpayers must track and account for hard fork transactions. Thus, it places the burden on individuals to watch their wallet and trace activity throughout the year.
Also, there is no “de minimis” exclusion. Meaning, every transaction involving digital currency must be reported. What about a purchase of a cup of coffee with crypto cash? This payment gives rise to a taxable exchange. The value of the coffee you just bought less the basis in your currency you provided must be computed and reported to the IRS as a gain or loss.
When did you have to start complying with these basis rules and coffee purchases? Forever. In July 2019, the IRS announced through a news release that it had begun sending “educational” letters to taxpayers with digital currency transactions that have either potentially failed to report income or did not accurately report their transactions. By the end of August, over 10,000 taxpayers had received these letters. There are three letter versions: Letter 6173, Letter 6174 and Letter 6174‑A.
Letter 6173 informs the taxpayer that the IRS has “information that you have or had one or more accounts containing virtual currency and may not have met your U.S. tax filing and reporting requirements for transactions involving virtual currency.” This letter requires the taxpayer to provide a direct response by taking one of three possible actions:
1) File delinquent returns, reporting any digital currency transactions.
2) Amend returns to properly report any digital currency transactions.
3) Provide a statement that explains why the taxpayer believes it is in full compliance, signed under penalties of perjury.
Letters 6174 and 6174-A inform the taxpayer that the IRS has “information that you have or had one or more accounts containing virtual currency.” Though neither of the two letters requires a direct response from the taxpayer, Letter 6174-A expressly warns the taxpayer that the IRS may pursue further enforcement activity in the future.
The three versions of the letters show that the IRS is mining the information it has in its possession and forming views about which digital currency holders it believes are noncompliant, and to what degree. Although the IRS stated in its announcement that “all three versions of the letters strive to help taxpayers understand their tax and filing obligations and how to correct past errors,” Letter 6173 seems to presume that the taxpayer in question already understands the digital currency reporting requirements and has chosen not to comply with them. Letter 6174-A is a step down from Letter 6173, but it still assumes a higher level of knowledge on the part of the taxpayer than Letter 6174 does.
John Doe summons
The letters followed the IRS’s issuance of a “John Doe” summons to Coinbase, one of the largest platforms for exchanging Bitcoin and other forms of digital currency. Through the John Doe summons, the IRS sought information regarding all Coinbase customers who conducted transactions on the Coinbase platform between 2013 and 2015. Coinbase resisted the summons and sought to narrow its scope.
In late 2017, the U.S. District Court for the Northern District of California ordered Coinbase to produce the taxpayer identification number, name, birthdate, address, records of account activity, and all periodic statements of account or invoices. Ultimately, Coinbase produced documents for approximately 13,000 customers. While it is widely speculated that the IRS identified the initial group of more than 10,000 taxpayers to receive compliance letters using the data provided by the Coinbase subpoena, any taxpayer with dealings in digital currency should anticipate increased IRS scrutiny.
Revised draft Form 1040
Following the issuance of the October Revenue Ruling and FAQs, the IRS also released a draft Form 1040, Schedule 1 — which, if adopted, will require taxpayers to answer whether at any time during the year the taxpayer sold, sent, exchanged or otherwise acquired any financial interest in digital currency. The change in Form 1040 would place taxpayers in the position of having to think about their digital currency holdings and inquire whether there have been taxable events that need to be reported and taxed.
Methods of coming into compliance
In light of increased enforcement and compliance efforts on the part of the IRS, it is especially important for taxpayers who have held digital currency in the years preceding 2019 to seek advice from a competent tax professional to determine if there have been any taxable transactions associated with the acquisition or disposition of digital currencies. If there was a reportable transaction left off an income tax return, the IRS could impose significant penalties and interest charges. The IRS is also reviewing income tax returns to determine if the noncompliance was due to willful conduct. Such review can result in criminal referrals and prosecutions for filing false tax returns.
There is good news in the face of the potential enforcement of noncompliance. Most taxpayers can take advantage of the IRS’s voluntary disclosure policy, which mitigates penalties. And for those taxpayers who received letters directly from the IRS, options for taking affirmative action are outlined in the letter. The bottom line is this: If you have held digital currency at any time, you should contact a qualified tax professional to assist you in evaluating your tax situation.
The views, thoughts and opinions expressed here are the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
James N. Mastracchio is a partner resident in New York and Washington, D.C. and heads Eversheds Sutherland’s federal tax controversy and criminal tax practices.
Sarah Paul is a partner at Eversheds Sutherland who practices in the firm’s litigation, federal tax controversy and criminal tax groups. Prior to joining Eversheds Sutherland, Sarah was an assistant United States attorney in the Southern District of New York, where she supervised all of the district’s criminal tax cases.
Katie Sint is an associate in the tax practice of Eversheds Sutherland’s Washington, D.C. office. She counsels clients in an array of federal income tax matters, including domestic and international tax planning, mergers and acquisitions, accounting and controversy.
Canada’s volatile history of mainstream adoption and fraud is directly impacting the future of cryptocurrency in the country.
Recently, Canada’s central bank has been leading working groups with global partners exploring a blockchain future. Their crypto presence has soared with Ernst & Young’s announcement that it is using Toronto to test its public government expenditure blockchain. But what is the cryptocurrency landscape currently like in Canada?
The history of crypto in Canada may seem as volatile as a token with a small market cap, yet mainstream use and adoption have been on a consistent incline since 2013, when Canadians started pushing mainstream adoption. Now, the Canadian government is leading working groups. What else has the country been up to in the blockchain space?
The first thing that comes to everyone’s mind when it comes to the Great White North is that the founder of Ethereum, Vitalik Buterin, grew up in Canada — but Etherum isn’t all the country has provided to the crypto space. Here are some more notable stories from Canada’s blockchain history.
The world’s first Bitcoin ATMs
Canada contributed to Bitcoin’s (BTC) mainstream use early on by opening the world’s first Bitcoin ATM at a coffee shop in Vancouver in 2013. The ATMs were released by Bitcoiniacs and Robocoin. Bitcoin was trading at around $200 at the time and, during the first day, the kiosk performed 81 Bitcoin transactions equaling around 81 BTC.
The ATM is considered a strong driver for attracting new people to cryptocurrency, with around a third of its users new to Bitcoin. In an interview with Cointelegraph back in 2013, Robocoin CEO Jordan Kelley marveled at how easy it was for people to get started with Bitcoin. According to industry monitor CoinATMRadar, there are at least 715 cryptocurrency ATMs in Canada, with 85 in Vancouver and 227 in Toronto.
It is easy to agree that the initial coin offerings (ICOs) craze produced more losers than winners, as many took advantage of the hyped-up funding method to conduct scams. In response, state and provincial securities regulators in the United States and Canada launched probes into potentially fraudulent crypto investment programs as part of the North American Securities Administrators Association’s Operation Cryptosweep in 2018. The initiative is reportedly the largest coordinated investigation held by state and provincial officials targeting suspicious crypto investment products, and has resulted in over 200 investigations of ICOs and crypto-related investment products.
Operation Cryptosweep has issued at least 77 actions against crypto programs, including the infamous BitConnect, which has gone down in history as one of the largest cryptocurrency scams.
Vancouver mayor suggests a ban on Bitcoin ATMs
The mayor of Vancouver, Kennedy Stewart, suggested a complete ban on Bitcoin ATMs in the summer of 2019 due to Anti-Money Laundering (AML) issues associated with the ATMs. The associated police report claims that criminals could purchase a Bitcoin ATM for their own needs for a few thousand dollars, and then deposit their cash into that ATM “as many times as required” to profit from or eliminate the transaction fees.
While many Canadian governing bodies have already taken steps against cryptocurrency, British Columbia’s review into the alleged money laundering activities is ongoing. Canada saw the amount of money laundering claims triple last year to 2,466 claims.
When speaking to Cointelegraph, Andrey Peshkov, the CEO of money transfer app USDX Wallet, dismissed the concerns surrounding money laundering using cryptocurrency in Canada, remarking:
“I do not think that cryptocurrency holders try to laundering money in Canada because they are obligated to pay taxes. Many countries do not require holders to pay taxes from their crypto income making them more attractive to bad actors.”
Flexa and Coinsquare integrate physical retail payments for Canada
However, not all news surrounding Canada recently has been negative.The Winklevoss-backed cryptocurrency payments service Flexa, which allows merchants such as TopGolf to accept cryptocurrency, has seen strong acceptance around the country.
Current estimates show that over 7,500 businesses have signed up on the platform to offer crypto payments to their customers, indicating that business owners in Canada see a need to provide payment solutions in crypto.
Canada audits QuadrigaCX exchange
A review of Canada in cryptocurrency would not be complete without talking about QuadrigaCX, a defunct Canada-based exchange. The company began grabbing headlines ever since its CEO Gerald Cotten was declared dead in India without ever having revealed the keys to access the company’s cryptocurrency reserves. When these reserves were discovered inaccessible, the business became insolvent, declaring bankruptcy.
The Canadian company’s bankruptcy trustee was Ernst & Young, a Big Four accounting agency. A bankruptcy trustee oversees the exchange’s insolvency proceedings focusing on auditing from a tax and creditor perspective.
Recently, the widow of QuadrigaCX Founder Gerald Cotten, Jennifer Robertson, paid $9 million in assets to the users of QuadrigaCX through EY. Robertson wrote in a personal statement, “The vast majority of my assets and all of the Estate’s assets are being returned to QCX to benefit the affected users.”
While the widow may not have been aware of her husband’s alleged malfeasance, what happened suggests that Canada is determined to rid cryptocurrency of fraud to protect both investors and holders. According to EY, Robertson’s late husband created fake accounts under several pseudonyms and used them to trade users’ money on the QuadrigaCX platform to show artificial income. The auditor also said that much of the funds were eventually transferred to personal accounts that he controlled.
High-paying employment in Blockchain Consensus report
The Blockchain Consensus report was released on Oct. 4, 2019 by the Chamber of Digital Commerce Canada, exploring the blockchain ecosystem in Canada. The report takes a closer look at Canada’s blockchain ecosystem, breaking down insight by region and company size. The report also states that government commitment is desperately needed to move this highly innovative technology sector forward by providing legal clarity.
Further, the report includes statistics that highlight the average annual blockchain salary in Canada sitting at more than $98,000 Canadian dollars, making blockchain careers among the highest-paying in the country. The CEO of Shortex, Vladimir Prosvirkin, remarked on this report to Cointelegraph:
“Canada is one of the leading countries adopting blockchain technology on a corporate level. Every second company is invested in blockchain somehow last year. Due to the country’s low energy cost, high internet speeds, and favorable regulations, blockchain and cryptocurrency industries have always prospered here.”
Piloting government spending tracking in Toronto
In an effort to increase transparency, EY started tracking how public funds are spent in the capital city of Toronto. As reported by Cointelegraph on Oct. 16, the system can track the government’s public funds as they move through different state agencies, providing transparency to the public.
According to EY, data provided by the platform can potentially be used to better inform future decision making on policies. Upon the pilot program’s launch, EY issued a statement, “Blockchain technology can positively impact processes from tax collection to open data to public spending.” A Bitcoin-conscious and highly functioning city like Toronto may benefit from greater transparency in government spending and provide an important use case.
G-7 working group on stablecoins
On Oct. 13, 2019, the Bank of Canada released results from the G-7 working group on stablecoins that was tasked with “investigating the impact of global stablecoins” as a whole. While much has been written about the strong language in the report, such as “Stablecoins pose a threat to financial security,” it also outlines ways in which governments and digital securities can work together. Participants included the Bank of England, the Bank of Canada, the Bank of France, the European Central Bank, the Bank of Italy, the Bank of Japan and the United States Department of Treasury.
On the eve of the G-7 working group, Anthony Pompliano, co-founder and partner at Morgan Creek Digital, noted that it has taken only a decade from Bitcoin’s creation for the “decentralized digital currency to go from basically the fringes of the internet to now being discussed at the G-7 and other regulatory offices.”
Challenges lie ahead for stablecoins
The report goes on to outline the challenges that stablecoins need to overcome in order for them to remain in compliance. Focusing on private stablecoins, the report highlights that stablecoins, regardless of size, pose some major risks such as regulatory, security, and those relating to financial reporting and misconduct.
Further, the paper addresses challenges and risks that globally adopted stablecoins like Tether (USDT) pose to monetary policy, financial stability, the international monetary system and fair competition. Jude Regev, the founder of Element Zero, an open-source network that provides branded stablecoins and a fee-free on-chain SmartSwap, noted to Cointelegraph:
“Private stablecoins will need to be more similar to a shield that protects purchasing power and provides security against hacking. When Central Bank’s like Canada issue their own digital currencies and other countries do the same, being able to create stable interoperability between each countries’ fiat onboarding will add the most value to the ecosystem.”
Based on international conversations and the working session led by Canada in conjunction with other countries, it is clear the country sees both value and risk in stablecoins. The working document shows a future where digital currency will utilize banks only as a means for fiat onboarding. The document seems to address two known stablecoin protocols, an algorithmic stablecoin like DAI and asset-backed stablecoins like Tether.
Toward the future
Canada’s blockchain history is marked by triumph and struggle. The Crypto Canucks are constant drivers and mass adoption is incoming through all the perceived barriers. From the first Bitcoin ATM to considering banning Bitcoin ATMs to leading the international community toward adoption, the Great White North has been at the forefront for both cryptocurrencies’ benefits and risks.
While adoption continues to increase, inappropriate regulation could potentially hinder some projects in the country. Guidelines may end up forcing private stablecoins to comply with securities laws in big countries or to even become banks, significantly raising the barrier to entry. Alternatively, countries may turn to outlawing private stablecoins altogether for fear of harm coming to their existing banking systems.
Here are the basic steps to success when making your first cryptocurrency investment.
Investing in Bitcoin (BTC) can be quite intimidating if you’re only just learning about its existence now. In fact, taking the plunge and entering the cryptocurrency sphere is a risk for anyone, with or without investment experience. This is because the crypto space has no centralized authority to guide investors. Rumors, hype and horror stories dominate the internet, and separating fact from hearsay can be difficult at times.
Like any other business venture, you should never get your feet wet until you have all the facts straight. Many Bitcoin investors who have taken losses will agree that they didn’t do their own research. Riding on rumors and hearsay is setting yourself up for failure.
However, the cryptocurrency community does come in handy for inquiries. You’re better off talking to people who are already in the crypto space. As a college student, you’ve got all the time and resources to find out all there is to know about investing in Bitcoin. As you find ways to invest, don’t forget to keep an eye on your academic performance, but if it does begin to suffer, online writing services like WriteZillas help ensure you maintain above-average performance.
The crypto space has existed for quite a number of years now, which means that so much has changed since its advent. If you’re just getting wind of Bitcoin now, you need to do your homework. You’llmake better investment choices when you understand what you’re getting yourself into. Even though cryptocurrencies offer a unique investment opportunity, that doesn’t mean they come without risks.
Treading accordingly ensures you miss all the potholes along the way. Dive into Bitcoin’s underlying technology and figure out how the whole system works. A strong grasp of how the blockchain stores secure data will help you understand everything pertaining to Bitcoin investments.
Don’t go through a few articles on the internet and conclude that you know enough about Bitcoin, because knowing it like you know the back of your hand takes time. Find a mentor in the crypto space who is resourceful and trustworthy. Ask as many questions you can, so that by the time you’re investing, you are doing so in a safe environment.
Ignore the hype and dig deeper to find out the truth. Otherwise, if you rely on the success stories as your guide, you’ll end up risking money you cannot afford to lose. Even though Bitcoin opens up an exciting world, the horror stories are proof enough that it can be complex and confusing, as well.
Knowing everything about the crypto world doesn’t mean you should dive into the deep end. Risk is inherent in every investment, and the crypto space is no exception. You need to proceed with caution, because digital currency is still in its early stages of development. There are extremely high risks involved, which means you can either win big or lose everything you have.
Start small and see how it goes before putting in more money. Instead of chasing Bitcoin prices, let the prices come to you. Timing is key when it comes to investing in cryptocurrency. Once you decide on an entry point, don’t change your mind just because someone told you otherwise.
Once the price gets to where you want it to be, don’t use all your capital to buy the coins. Buy in small quantities, investing a little at a time. The right way to invest in Bitcoins is synonymous with summoning a genie — one wrong move and you lose it all.
Broaden your horizons
Ideally, no investor should put all their eggs in one basket. When investing in the crypto space, you need to diversify effectively. This way, a decline in one component can easily be offset by an equal gain in another.
Aside from Bitcoin, you can also invest in Ripple (XRP), Ether, Bitcoin Cash (BCH), and Litecoin (LTC). Investing equally across different components maintains a balance, as all these components are within the crypto space, and if one drops by a given percentage, another is bound to rise by the same amount.
Be aware of all active cryptocurrencies and invest in them with caution. A cryptocurrency can easily fall because they’re like startups within the crypto space. Researching and keeping up with the crypto market is crucial because a currency can crash to the ground overnight.
Keep your coin in wallets
Since you’re investing within a digital space, you should keep an eye out for cybersecurity. Cybercriminals are all over the crypto space. Use exchanges to buy currencies and move your coins back to your wallets as soon as you’re done. Holding your assets in exchanges exposes you to cyberattacks.
Many exchanges have been hacked before, and this trend is not likely to change. Consider investing in cold wallets, which is another name for offline wallets. These are much more secure than hot wallets (online wallets).
Buckle up, it’s going to be a wild ride
There is nothing as volatile as the digital currency market. As a new investor, you need strategies to help you manage price fluctuations. Aside from diversifying, you should buy and hold Bitcoin — this means resisting any temptation to get into short-term bets. In the crypto space, passive investment has a better chance of succeeding than an active one.
Now that you know the best way to go about investing in Bitcoin, you can enter the crypto space armored with information. When it comes to investing, making informed decisions is key.
The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Natalie Crawford is an author and blogger in marketing, education and other fields. The aim of her articles is to bring benefits and useful knowledge to readers.
Chinese President Xi Jinping’s announcement that the country would invest heavily in blockchain technology – coupled with a sweeping move to remove online posts suggesting such technology is a scam – has nourished optimism long-held by crypto advocates. Of course, the reality is that China’s marked shift towards pro-blockchain policies is part of a much wider trend which has seen Asian multinationals and governments embrace the considerable potential of distributed ledger technologies.
President Xi’s announcement centered on the creation of a state-backed digital currency (a stablecoin tied to the renminbi), an idea which has been gestating since the country’s central bank started exploring the possibility as far back as 2014. With the dawn of a new decade, a law will come into effect on January 1 with the aim of “facilitating the development of the cryptography business and ensuring the security of cyberspace and information.”
It is predicted that the currency in question will launch soon after, although perhaps the possibility of blockchain technologies powering the continued transformation of China’s vast industries is of greater significance. Xi specifically mentioned that the technology could be applied to realms including finance, public services, employment, education and infrastructure management. It’s all a far cry from 2017, when the government imposed a general ban on all crypto businesses and exchanges. From deep suspicion, to a state-supervised (albeit heavily surveilled) cryptocurrency, in just two years is quite a turnaround.
Soon after the announcement was made, the local government of Guangzhou announceda $150 million fund for outstanding blockchain projects, with more initiatives expected in the near future.
Local Guangzhou gov just announced a 10B RMB (~$150M USD) government funding dedicated in “blockchain subsidy” for “outstanding blockchain projects”
More details below
I believe all other local govs will follow, overall capital subsidy can be massive
Needless to say, the news – which provoked ahuge spike in search traffic for terms like ‘blockchain’ and ‘bitcoin’ – hasn’t harmed the prospects of Asian crypto projects in general, with stocks of various blockchain companies in the regionsoaring. On the markets, some of this week’s biggest beneficiaries have been Chinese blockchains, even if there’s nothing to suggest they’re due to receive an influx of fresh business from government enterprises. In fact, six of the seven best-performing crypto assets in the top 50 this week have Chinese origins. Bitcoin cash, up 38% in the past seven days, is the only outlier.
Other companies seem to be riding the wave or at least benefiting in a roundabout way from the prevailing mood music: South Korean conglomerate Samsung has just announced the integration of Tron (TRX) with the Blockchain Keystore found on the Galaxy S10. As well as facilitating the creation of decentralized applications (dapps) running on the Tron ecosystem, the Keystore will let users access and trade TRX directly from the wallet on their handset. Perhaps coincidentally, industry sources are mulling over rumours that Samsung is outsourcing a part of its smartphone manufacturing to China.
Samsung has been experimenting with blockchain technologies for some time now, and with their growing dapp arsenal, their long-term strategy seems positively crypto-centric. It isn’t the only smartphone company testing the blockchain waters either; Taiwanese electronics giant HTC has also invested heavily in decentralized services and a blockchain-powered handset, the Exodus 1, and its successor, the 1s, which can run a full Bitcoin node.
The Xi effect visualized: A look at #bitcoin on-chain transactions during the days of the 40% price spike.
Chinese waking hours: # of Txns: 169K Txn Volume: 475K BTC Avg Txn Value: 2.8 BTC
Other hours: # of Txns: 175K Txn Volume: 962K BTC Avg Txn Value: 5.5 BTC
The long-term effect of China’s increasingly pro-blockchain outlook remains to be seen, and until its state cryptocurrency is hatched and various policies put into action, we won’t be able to quantify the consequences for blockchain technology and digital currencies more generally. That said, interest in the region is largely unrelated to the President’s ringing endorsement; according to a report by the Financial Times, Chinese companies have filed more patents on blockchain than companies from any other region in the world. A significant percentage of bitcoin mining is concentrated in the region, and many of the largest cryptocurrency exchanges are either based or were founded in the Asian continent, from Beijing and Singapore to Hong Kong and Tokyo. Regardless of its real ramifications, Asian crypto companies were never going to let President Xi’s decree go to waste.
Do you think China’s pro-blockchain legislation will benefit Bitcoin? Let us know in the comments section below.
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Binance’s U.S. platform, Binance.US, will add support for two new tokens to its platform: NEO and ATOM.
The United States-focused wing of leading cryptocurrency exchange Binance will add support for Neo (NEO) and Cosmos (ATOM).
Binance.US announced on Oct. 30 that it will add full trading support for the two tokens on Oct. 31, both of which are among the top-20 tokens by market capitalization according to Coin360.
Per the announcement, users can already start depositing funds before trading commences at 9:00 p.m. EST tomorrow.
Cosmos provides a blockchain-based platform that works as a mediator between different blockchains. It launched its first ecosystem hub in March 2019 after raising $17.3 million in its token sale in April 2017.
Neo is a decentralized open-source blockchain application platform. In September, Neo became the first blockchain member of Microsoft’s open-source project, the .NET Foundation.
At press time, NEO is up by 4.32% to trade at $10.87, while ATOM is trading sideways, down 0.23% to trade at $3.10.
Binance lists SEC-compliant token for $250,000 “long-term payment”
Earlier this week, Binance’s main platform listed Blockstack’s STX token when the firm paid Binance a $250,000 “long-term payment” to ensure that the token remains listed on the platform. A filing with the United States Securities and Exchange Commission (SEC) from Blockstack reveals that Binance received 833,333 STX, which at the $0.30 token valuation provided by the company is equivalent to $250,000.
Binance states that it did not charge a listing fee to Blockstack and that the marketing payment was Blockstacks’ initiative.
STX’s listing on Binance follows a $23 million token sale that was approved by the SEC under Regulation A+. An A+ funding round is a type of initial public offering for startups in need of early funding in which members of the public can participate.
At the peak of the ICO bubble it was a common tactic for project promoters to use big name announcements to pump their tokens. Every day we would hear about a new venture that supposedly signed a partnership with a global brand such as Microsoft or Google, to make us think that these tech giants were backing the idea. In reality most of the time it was just a trivial matter such as allowing the project to use free services from the tech giant, as countless other startups do. The tactic is still used today and crypto investors need to keep in mind that it is not a guarantee for success.
As if crypto investors have learned nothing over the past few years, some project promoters continue to try and push their tokens with announcements about big name partnerships. These normal business agreements can be used sometimes to hint, insinuate or even predict a price rise of a related token in an irresponsible way. Companies and startups make a lot of agreements to cooperate with one another and these are not a guarantee of a deal that will bring in more money or users.
Additionally, doing so isn’t just potentially misleading to investors – it can also be very detrimental to the projects themselves. Authorities around the world such as the U.S. SEC and Chinese financial regulators are actively seeking to make examples out of ICOs and crypto ventures to tarnish the whole industry as promoting unregistered securities. Making grandiose partnership statements with the intended purpose of pumping a token is providing them with ammunition.
#TRON will partner with a hundred billion USD megacorporation next week. It will not only benefit $TRX but all TRC10&20 tokens including $BTT & $WIN etc. It will broadly distribute #TRON Dapps and tokens to billions of customers. TBA. Make a guess?
A notable recent example came from Tron founder Justin Sun. Last week he tweeted about a deal with a hundred billion dollar “mega corporation” that will “benefit” the native tokens of Tron, Bittorrent and Wink. Many traders indeed responded positively to the news by buying the coins, despite widespread cynicism on crypto forums about all the previous hype from the Tron founder. On Tuesday he revealed that the company’s blockchain is now integrated with the Samsung Blockchain Keystore SDK, meaning that smartphone app developers can build services running on the system like they already can with its main competitor, ETH.
High Profile Partnerships Are No Guarantee for Success
Cryptocurrency investors need to keep in mind that all ventures in this ecosystem are highly risky investments and there is no certainty that the ICO token or other digital asset you invested in will be still valuable in two or three years. The absolute majority of technological startups in all fields don’t survive, with venture capital industry estimates of over 90% failure rate.
This can be despite having a smart team, brilliant idea or great technological innovation. At the end of the day, what matters for all businesses is if you can get enough paying costumers to cover the bills and make a profit. Without this you are just burning investors’ money until further investment comes in or you have to shut down. Partnerships that don’t bring in new money or paying clients won’t change that.
In the digital assets field in particular, with the lingering effects of crypto winter, many projects that once seemed promising are these days find themselves forced to shut down. A recent example of this is Platin, a secure Proof of Location protocol which incentivizes nodes at scale by means of its own blockchain-based token. On Monday the team announced on Medium that the company will be shutting down on November 1, 2019, after which all services will no longer be available. This is despite all the recognition from big names it got over the last two years.
“Japan noticed as Platin was selected by the Tokyo Metropolitan Government as one of the world’s leading blockchain innovations. Germany noticed as its Startup Autobahn selected Platin to showcase proof of location to Mercedes Benz, Rolls Royce, Porsche and other automotive giants,” the final letter from the team recounted. “IBM noticed as it selected Platin for its AlphaZONE technology accelerator. The European Space agency noticed as they admitted Platin to the Galileo Positioning System Task Force. EOS and Block.one noticed as they invested in Platin and showcased our technology on the world stage.”
However, at the end the founders explained that “One of the biggest challenges we faced was how to continue pushing forward while our resources were dwindling and turbulent market forces weren’t providing a stable environment in which to operate. We did everything in our power to extend Platin’s operations as far as we could, month after month, continually bootstrapping in the face of great uncertainty. In addition to developing Platin’s visionary technologies, we worked hard every day to secure the next round of funding, which always seemed to be just around the corner. Unfortunately, we weren’t able to get there in time.”
What do you think about big name partnerships in the crypto industry? Share your thoughts in the comments section below.
Op-ed disclaimer: This is an Op-ed article. The opinions expressed in this article are the author’s own. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the Op-ed article. Readers should do their own due diligence before taking any actions related to the content. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any information in this Op-ed article.
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The Association of German Banks released a paper in which it says that the economy needs the digital euro.
German banks have presented a position paper in which they make several arguments for the digital euro.
On Oct. 30, in a paper released by the Association of German Banks (Bankenverband), which represents more than 200 private commercial banks and eleven member associations, banks stated that the “economy needs a programmable digital euro.”
Monetary policy is the state’s responsibility, says Bankenverband
The paper states that the responsibility for the monetary system lies with sovereign nation-states and that any currency provided by banks or private companies must fit into a state-determined system. “Anything else would ultimately lead to chaos and instability,” the paper reads.
The banks make the case for a cryptography-based digital euro which, they state, should be created on the condition that a concurrent, common, pan-European payments platform is also established, further adding:
“The user of a digital euro – whether man or machine – must be clearly identifiable. This requires a European or, better still, a global identity standard. With every form of digital money, customers should be identified using a standard that is just as strict as that which banks and other obligated entities are required to apply under current legal framework pursuing the combat against money laundering and terrorist financing.”
However, according to Bankenverband, a competitive payment system can only be based on a common standard and a common currency. It stated, “In order to maintain Europe’s competitiveness, satisfy customers’ needs and reduce transaction costs, the introduction of euro-based, programmable digital money should be considered.”
Although the private German banks are convinced that, in a digitized economy, this form of digital money will rapidly gain in importance, they state that the existing monetary system must not “be endangered by the provision of crypto-based digital money.”
A private global digital currency, such as Facebook’s Libra, competing with the official key currencies in the world economy would most likely be a source of considerable economic and political conflict, the paper adds.
The banks further call on national and international policymakers to act responsibly and assure that competition with private currencies should not be allowed.
While a digital euro seems appealing, German officials criticize crypto
The German finance minister Olaf Scholz echoed similar sentiments when he recently advocated for the idea of launching a digital euro coin, stating that such a digital payment system would be beneficial for Europe and that they “should not leave the field to China, Russia, the U.S. or any private providers.
Mario Draghi, president of the European Central Bank, recently said that private stablecoins and cryptocurrency in general are of little value, adding:
“Thus far, stablecoins and crypto-assets have had limited implications in these areas and are not designed in ways that make them suitable substitutes for money.”
The president of the European Central Bank is joined in his sentiments by the German federal parliament, which recently released a statement in which they said that cryptocurrencies such as Bitcoin (BTC) are not real money.
Moreover, the statement points out that stablecoins are no alternative to fiat money and explains that the government intends to limit their adoption:
“It will be ensured that stablecoins do not establish themselves as an alternative to state currencies and thus call into question the existing monetary system.”