Tuesday, March 28, 2017

Cryptocurrency: The Numbers are for Sale

Have people gone mad? or are they geniuses? Ever since Bitcoin was created in 2009, people started collecting cryptocurrencies as part of their digital assets. In order for us to understand this phenomenon, is to begin understanding the concept of currency and why it has value.

 According to an article posted in Investopedia:
Economics teaches society that values are subjective; items have economic value because people desire them for one reason or another. Currencies, or mediums of exchange, serve several different and crucial functions in an economy. For one, they make trade easier; money currencies trade for nearly any good or service.
For example, suppose a person has 5 units of lumber and wishes to purchase a dog. Without currency, his only option is to find a lumber-wanting dog owner. With currency, like U.S. dollars, he can sell the lumber to anyone who wants it and then use the money to purchase a dog.
Currency also provides a universal measurement for accounting purposes. For instance, without currency, it is difficult to compare companies that sell different goods. Currency is used as a store of value, which makes saving, investing and banking easier.
Some currencies, like gold, have value because they are useful as a commodity. Government fiat currencies, like the U.S. dollar, have value because governments grant them legal tender status and only accept taxes through them.

So why do people value Cryptocurrencies?

Cryptocurrencies the likes of bitcoin, litecoin or this groups own Compuceeds do not have value as a physical commodity like gold and are not widely accepted as legal tender like dollars. Rather, Cryptocurrencies, apparently, becomes valuable once they reach the following milestones:
Popularity. Not necessarily mainstream adoption. The first step is for people to accept and trade their particular cryptocurrency. Trading simply means buying and selling it based on the perceived value of the entire community. This perceived value is typically dictated by prices set by the community through exchanges. The more people using it, the more its value is recognized. This leads to further growth and adoption.

Most cryptocurrencies are decentralized and limited.
This is a major factor for many users. Cryptocurrencies are hard for governments to trace and tax. Also, unlike fiat money produced by central banks, there is a cap set on total coins, limiting how much the currency can devalue through inflation.

Cryptocurrencies act like an equity investment.
The market value of a certain digital asset or cryptocurrency usually has had wild swings in value and even a market cap.

Cryptocurrency forms a social network.
One of the fundamental reasons for a cryptocurrency’s success is its community. These communities need to be active and act like other online social networks where they support and show their loyalty on the digital asset they collect or own. A community promoting their own cryptocurrency is a crucial factor in determining its value and price today and in the future.

Are you in the business of buying, collecting and selling cryptocurrencies?
Then you are the key towards its success. Your support and determination to win can go a long way. So equip yourself with the basics in the setting of its value. The minute you figure out what is there to love about the cryptocurrency you are collecting then you are on your way to making it big in this industry you’ve chosen to be a part of.

© Prof Henry James

Tuesday, March 21, 2017

Why Professional Traders Now Have More Reason To Try Bitcoin

The service, available for bitcoin, Ethereum, and litecoin, gives customers access to additional funds to make trades three times the size they typically could — a strategy that could compound their gains, but also their losses.

It also gives these investors, who are typically hedge funds, proprietary trading firms, high-net worth individuals, and family offices, the ability to “short” trades, or profit from dips in the value of these currencies.

It’s a fitting milestone for a cryptocurrency startup that is one of the most well-capitalized in the space with $117 million in funding from backers such as the New York Stock Exchange, Andreessen Horowitz and others. It also, early on, made a conscious decision to break from its peers and comply with financial regulations, a path that was more costly but ultimately gave them credibility with institutional players cautious about experimenting with cryptocurrency. 

As an example of how the new offering follows regulations, the exchange is not charging interest or fees to access margin trading, believing that doing so would constitute consumer lending, which requires specific 50 state-level, money-lending licenses. 

Margin trading is one feature long requested by GDAX’s customer base. In the U.S., it will be available only to eligible contract participants, a specific category of people defined by the Commodity Exchange Act who meet certain wealth requirements. Outside of the U.S., all types of investors can engage in margin trading, and GDAX hopes someday to offer it to all U.S. customers.

The product — and even more broadly, exchanges like GDAX — are likely to benefit from the SEC’s decision earlier this month not to approve the Winklevoss bitcoin exchange-traded fund (ETF), which would have given investors an easy way to gain exposure to bitcoin in their portfolios. Since the agency cited the lack of investor protections in the cryptocurrency space as its reason for declining to approve the ETF, similar filings currently underway at the SEC are likely to be rejected as well. 

Since the Winklevoss decision, daily bitcoin trading volume has been about 33% higher, but on GDAX alone, the increase has been 66%. 

“The institutional traders that were holding off, waiting for an ETF to be approved, are saying, ‘It’s probably not going to happen. If I want access to this new asset class I’ll have to go directly to bitcoin spot exchanges,’” White says, “and the only exchanges these institutional traders are going to go to are the ones like GDAX that are based in the U.S., with an impeccable record, the trusted and secure exchanges that meet these regulatory requirements.”

Friday, March 17, 2017

EU Draft Law Outlines Parliament Plan to Monitor Bitcoin Users

EU Parliament members have published new draft legislation outlining their plans to regulate digital currencies.

Legislative language published on 9th March details how MEPs plan to empower financial watchdogs in the EU, allowing them to collect more data on digital currency users. What's more, it sets the stage for the creation of databases in which wallet addresses would be linked to particular identities.
At one point, the language declares that, in the view of the Parliament, "virtual currencies should not be anonymous".

The legislation, if finalized and approved, would also create the conditions for national-level financial intelligence gatherers to share that information once obtained.
The draft bill – prepared by the EU Parliament Committee on Economic and Monetary Affairs, as well as the Committee on Civil Liberties, Justice and Home Affairs – states:
"To combat the risks related to the anonymity, national Financial Intelligence Units (FIUs) should be able to associate virtual currency addresses to the identity of the owner of virtual currencies. In addition, the possibility to allow users to self-declare to designated authorities on a voluntary basis should be further assessed."
The release comes more than a year after the EU Commission, the executive arm of the economic bloc, moved to propose measures that would impose anti-money laundering controls on the digital currency space. Last year, too, members of the EU Parliament moved to create a task force, led by the Commission, focused specifically on the tech.
According to public records, 88 committee members voted in favor of the legislation, as opposed to one objection and four abstentions.

No Bitcoin ETF Says SEC: What's Next?

Bitcoin may be hogging limelight in the investing world, but its ETF form was not that attractive to the SEC. Winklevoss Bitcoin Trust has filed for one to make bets on this soaring digital currency easy. Investors were hoping for a YES from the SEC, but the opposite happened. The SEC declined the proposal apprehending chances of fraud

What is Bitcoin?
Bitcoins are 'mined' by using a greater amount of computer processing power. However, since there is a fixed amount of bitcoins, as the limit is reached, it becomes hard to 'mine' for the coins. The best part of this system is that it is beyond the reach of central banks.

SEC Version
The committee did not "find the proposal to be consistent with Section 6(b)(5) of the Exchange Act , which requires, among other things, that the rules of a national securities exchange be designed to prevent fraudulent and manipulative acts and practices and to protect investors and the public interest."

The news hit the cryptocurrency hard on the March 10 judgement day when its price fell about 15% to $1,050. Bitcoin pricings had been firing on all cylinders since the beginning of 2017, which drove it past the $1,100 mark on February 21, 2017 - the highest in more than three years . Notably, its value beat the $900 mark in late December for the first time since February 2014. In mid-2015, the currency was at around $200 (read: Explaining Bitcoin and Crypto Currency ).

The tussle between the U.S. Securities Exchange Commission and Winklevoss over the launch has been going on for about three years. In fact, the issuer has restructured the proposals for the Bitcoin ETF multiple times.

What Next?
While the first ETF did not gain approval, other issuers filed for their products on this currency. SolidX Partners sought SEC approval last July for its bitcoin ETF, SolidX Bitcoin Trust , which also would be listed on the NYSE. In January 2017, Grayscale Investments filed to list its own Bitcoin Investment Trust on the NYSE. The SEC's rigidity could also make the situation tough for these two products.

However, after an initial dip, the bitcoin bounced back all over again. It has gained about 13% since the SEC's decision. This could be because of the fact "bitcoin isn't regulated by any government and has been used by consumers worldwide to shelter assets from inflation or political upheavals in their home countries."

Bloomberg noted that bitcoin topped all key foreign-exchange trades, stock indexes, currencies and commodity contracts last year, which can be a proof of its sturdiness.

As per CNBC , "bitcoin is a very volatile asset" but doesn't have a strong correlation with other asset classes. Bourgeoning trading volumes in China, bitcoin's largest market, has favored the price. As Chinese investors wanted to shield their portfolio from a depreciating yuan, they bet big on bitcoin, driving the currency to double in 2016.

Moreover, trading volumes in China have been solid with the government taking proactive measures against illegal money transfer. As per an article published on CNBC , Bitcoin is emerging as a safe haven asset like gold.

With SPDR Gold Shares GLD coming under pressure due to rising rate prospects in the U.S. and a higher greenback, one can possibly find safety in seemingly safe or alternative assets like bitcoin.

Other digital currencies like Ethereum, Dash and Monero have also been gaining considerable attention these days. Since SEC's bitcoin ETF decision on March 10, 2017, these three currencies have gained about 60%, 59% and 40%, respectively.

Bottom Line
The prospect may be strengthening for bitcoin, but the SEC needs more proof of the safety in bitcoin trading. Only then can we expect a bitcoin ETF. As of now, investors have to be happy with traditional safe-haven assets and gold and silver bullion ETFs like GLD and iShares Silver Trust


Someone Wants to Stick a Fork in Bitcoin

A dispute among the people involved in bitcoin is revealing a paradox of the digital currency: The same resistance to human meddling that drove its popularity may also be its greatest limitation. It seems that the only way to get anything done is to split the currency in two.

At issue is the size of blocks, the batches in which transactions are processed and that make up the links in the so-called bitcoin blockchain. Currently, they’re so small that the whole system can handle only about seven transactions per second -- nowhere near enough to compete with, say, Visa network’s 24,000 transactions per second. Some people think that’s a good thing! Bitcoin relies on thousands of internet-connected volunteers, and their operating costs should be kept as low as possible.

On the other hand, many are unsatisfied with the system’s speed. A faction known as Bitcoin Unlimited has released a new version of the software that can create bigger blocks, and is now rallying the support of bitcoin miners, who process transactions in return for new currency. The plan is to gain enough miner support to build its own branch off the chain. Meanwhile, the computer geeks who develop the core bitcoin software have offered their own solution, which not only increases capacity but also enables the creation of low-value payment channels adjacent to the main network -- the idea being that people might not need every coffee purchase immortalized on a global distributed ledger.

Bitcoin and the Blockchain

The standoff illustrates a vulnerability. Because bitcoin relies on a worldwide network of individual computers to maintain the blockchain, one group can -- intentionally or not -- become separated from the rest. The two networks will thus accumulate different information, creating competing chains. If the “fork” is unintentional, the networks eventually reconnect and discard the lesser chain. But if the fork is intentional, as in the case of Bitcoin Unlimited, it can continue forever.

The insurgents’ software will eventually disconnect from anyone who doesn’t support their blockchain. The most troublesome part is that both sides want to assume the identity of bitcoin. This would be like the Confederate states seceding from the Union, then insisting that they were the real United States and that the northern states had voluntarily left. Ultimately, it will be up to individual users to either choose one chain or recognize both as legitimate currencies.

This is one reason it’s so hard to tame bitcoin by, say, creating an exchange-traded fund so regular investors can get a piece of the action. The ETF filing for the Winklevoss Bitcoin Trust actually includes a provision specifying which bitcoin network it will support in the event of a split. Another ETF filing for Grayscale’s Bitcoin Investment Trust acknowledges that the fund will end up with equal values of two types of bitcoin, and must select one to keep in the fund.Thus far, Bitcoin Unlimited has secured support from the world’s largest mining operation, as well as adoption from about 10 percent of the bitcoin network.

Thursday, March 16, 2017

Understanding difference between Indian and International bitcoin prices

Bitcoin price fluctuations on the bitcoin exchanges are driven by many factors. Below you will find the answers to the questions related to bitcoin price that is most often asked by our users:
What factors determine bitcoin prices?
Bitcoin prices depend on a lot of factors like international prices, market volatility, overall demand and supply in India and internal stock position.
Why is there a difference in Indian price and international price?
At times, the Indian prices, both buy and sell prices, are 5-10 % higher than international market. This happens when there is high demand for bitcoins in India and sellers are not ready to sell cheap. Similarly, there are days when Indian prices, again both buy and sell prices, are lower than the international market.
It is important to note that, even in the international market at times, there is 5% gap between China and USA price and there are price gaps even within USA exchanges.

Tuesday, March 14, 2017

Are Cryptocurrency and Businesses a Match Made in Heaven?

I wouldn’t like to be the first to tell you how to conduct your business, but cryptocurrencies are changing the way we transact off and online. With more than 100000 organizations already accepting cryptocurrency payments as of last year and that number rapidly burgeoning, entrepreneurs and business owners cannot afford to ignore its implication anymore.  
In this article, let’s look at top reasons why accepting major cryptocurrencies like Bitcoin and Real Point coin is a smart move for your business.
Incredibly Favorable Transaction Fees

In today’s cut-throat business environment, any payment option that promises to reduce cost is more than a welcome change. So, if you are looking to ditch hefty transaction fees associated with the processing of credit and debit cards, you’ll certainly love RPT coin option. It’s much more convenient, and the transaction costs are ridiculously low. As if that isn’t fabulous enough, the currency exchange is ideal for small businesses looking to get a foothold online as accepting Real Point coin will do wonders for their bottom line.

Get Paid Instantly
Let’s face it; getting paid promptly is crucial for both small and blue-chip companies. Of course, small businesses rely on prompt invoice payments to stay afloat and sustain a healthy cash flow. Real Point coin payments occur instantly, so the value currency is in your e-wallet and ready for use the moment the payment is received. There are no delays or settlement periods, allowing your business to maintain a positive bookkeeping.
The other advantage is that once your client’s RPT coin is received, the digital transfer of the currency is done-deal.

It’s secure and free from Fraud
Most businesses are skeptical about most online payment modes because they tend to attract a flurry of hackers and fraudsters. With RPT coin, that’s a thing of the past. That’s right; you don’t have to worry about online theft and fraud as well as holding an enormous amount of physical cash. The science behind cryptocurrency is actually pretty straightforward. Your funds (or data) are actually locked in a public file key that’s encrypted using top-notch cryptography system. This way, it’s only you who can actually access and send the coin; even if your computer is stolen no one will touch your RPT funds. It’s so secure that some industry experts have equated the security of cryptocurrency to that of Fort Knox US Military Base. Well, cryptocurrency technology is probably a million times more secure. The magic of big numbers and crypto-tech behind it makes RPT coin utterly impregnable.

No Chargebacks – Yay!
Nothing makes business owners happier than avoiding chargebacks. That is the de facto advantage of accepting RPT coin and other cryptocurrencies. One core feature of this decentralized currency is that it’s completely irreversible. Once the digital value has been transferred, no one can reverse it. And when I say nobody, I mean NO body. Not even the president of the free world can do it. Impressive, right? Reversible or irreversible, credit card chargebacks always cause insurmountable headaches for businesses.

Go Global – Accept Payments Worldwide

Most businesses, especially small and medium size enterprises, cringe even at the thought of receiving international payments. Why? The cross-border processing fees are sometimes too expensive. With Real Points coin or Bitcoin, you don’t have to worry about that because they come with much lower transaction surcharges. 
Spruce Up Customer Satisfaction
RPT coin and other cryptocurrencies are fast gaining traction with the masses. Much like master and visa cards a few decades ago, crypto is the future of payment. So, accepting RPT coin as a mode of payment will certainly lead to upped levels of customer satisfaction among the folks that have already embraced cryptocurrency technology. Your clients and customers will also enjoy the added layer of privacy and protection from identity theft and fraud.  

Learning More about Cryptocurrency and Cryptocurrency Technology
While incorporating RPT coin payment to your business is an easy affair, understanding the mechanism behind the technology is a different story. If you are curious to know more than the usual noise about Bitcoin and cryptocurrency, you might want to enroll in Real Points Academy – an online course that’s your best shot at understanding all things cryptocurrency and related finance.

Real Point Academy is not just about accepting RPT or Bitcoin payment; it offers you an opportunity to know the most reliable way of turning profits from cryptocurrencies. The high-quality educational package takes you through 5 rigorous levels, including 15 detailed session by session learning chapters.
As if that isn’t fantastic enough, enrolled members get free splits, with a chance to double the value of their funds. As it is, Real Point Academy allows members to mine and exchange RPT Coin. There’s also a great support team ready to help 24/7.

Monday, March 13, 2017

Why I Use Real Points Coin and Why You Should Too

Youd be forgiven if you have a fussy or no idea about cryptocurrency and blockchain technology, but it is the newest and most sought after thing in the realm of finance right now. Perhaps you are familiar with Bitcoin, the pioneer cryptocurrency.
Newsflash: there is a more robust, more reliable, and more intuitive cryptocurrency on the market: Real Points coin or whats now called RPT coin.
After years of waiting for the perfect cryptocurrency, Real Points finally got it right. Let me walk you through some of the sizzling features I love about this revolutionary cryptocurrency so you can get why I so excited.
You dont need to be a Cryptocurrency Expert to Start Sending, Trading or Receiving RPT Coins

Lets be honest; some people dont have a clue what cryptocurrency is, let alone Real Points Coin. I personally had to spend around 100 plus hours doing research online to educate myself about Bitcoin back in 2010. Of course, the nitty-gritty of cryptocurrency is a bit geeky and somewhat dull. With Real Points, however, the whole process becomes effortlessly easy.
A few weeks ago, I needed a way to accept cryptocurrency in my upcoming eCommerce business. Lucky for me, Real Points had numerous resources to walk me through the entire process, step by step. The whole signing up process took a jiffy. Besides, they have got an excellent customer service crew that was ready to answer all my queries.
A Robust Cryptocurrency Course
Again, learning all the bits about cryptocurrency and associated finance isnt always a walk in the park. For that, theres Real Academy, a vibrant program that is committed to financial education which encompasses the unique approach and techniques based on cryptocurrency. The Academy itself looks to equip the next generation of crypto-currency gurus wholl be able to push the industry to greater heights.

Apart from studying 15 individual session by session chapters about cryptocurrency, you will also get exclusive access to RealPoints inbuilt e-library thats teeming with learning resources, tutorials, FAQs, and so much more. And the best part: its free to all RealPoint Academy members. Since its based entirely online, enrolling in RealPoints Academy allows you to learn anywhere, anytime and at your own pace. Who knows you might become RPT coin mining expert in no time!
RPT Coin is Fast, Secure and Global
Forget about your conventional credit or debit card, RealPoint Coin is the ultimate digital currency. For one, it doesnt discriminate at all; it doesnt matter if you are sending RPT coins to your buddy across the street or someone on the other side of the world, it all takes a couple of moments. Besides, RPT coins are locked in public keys that are protected by top-notch cryptography system. That means the owner of the public key is the only one who can send the RPT coin. Remember all cryptocurrencies cannot be duplicated or counterfeited. And, well, Real Points currency is the real deal easy to send, irreversible, safe, and fraud-free.
RPT Coin Places Your Privacy First
Well, most cryptocurrencies were designed with usersprivacy in mind. Heres the thing: the entire RPT coin transaction history is available for anyone to see. It simply works better that way. For newbies, this might appear contrary to adherence to your privacy. But, in reality, Real Points allows you to choose whether you want to keep your finances open or private. Of course, its protocol doesnt require you to identify yourself to transact. This way, you can remit and do whatever you want with your RPT coin without worrying about your privacy being breached.
Your Investment is Safe from Inflation
Much like any other solid cryptocurrency, the RealPoint coin is capped at a specific threshold value. On the contrary, your regular euro or dollar loses value as the supply increase. RPT coin is fungible and scarce eliminating any risk of inflation.
RPT was designed for the dot-com generation
The cryptocurrency was generally made for the so-called dot-com generation, or the internet generation to be precise. So, if you are tech savvy and dont like pulling out your credit cash anyhow or carrying paper cash, then Real Point coin is for you. Its designed primarily to deter hackers and ransomware peddlers that have become almost synonymous with Bitcoin.
Insignificant Fees
RPT coin goes a mile further to make sure that your online shopping or sending/receiving cash is more convenient than using a credit card or paper cash. How? Real Point equips you with a vibrant payment gateway that attracts incredibly low fees. Besides, the RPT transactions are instantaneous and accessible through several e-wallets.
These are just but a few RPT coin benefits that have won me over. Recap: Real Points coins offer users freedom from concerns of identity theft, fraud and exorbitantly high fees associated with credit cards. Plus, Real Academy is an indispensable learning resource for anyone looking to get an in-depth understanding of the world of cryptocurrency finance.