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Senior adviser to Bank of England Governor Mark Carney said that cryptocurrencies are slow, lack value and fail basic financial tests. Huw van Steenis, senior adviser to Bank of England’s (BOE) Governor Mark Carney, told Bloomberg in an interview Monday, Jan. 21, that cryptocurrencies fail fundamental financial tests. Van Steenis joined BOE in 2018, having previously worked at Schroders and Morgan Stanley. He is currently heading a review of the future of finance, according to Bloomberg. When asked about crypto’s potential to become a threat to economic stability, van Steenis said: “I’m not so worried about cryptocurrencies. They fail the basic tests of financial services. They’re not a great unit of exchange, they don’t hold value, and they’re slower.” Van Steenis noted that registering new entrants into the banking system, especially technology firms, is one of the major challenges for BOE. He also stressed that traditional banks are slow when it comes to adopting new technologies. ..
This is a sponsored story. CCN urges readers to conduct their own research with due diligence into the company, product or service mentioned in the content below. Blockchain technology offers significant benefits to enterprise organizations, but certain limitations have undermined its widespread adoption. One reason, many observers agree, is that enterprise solutions require both speed and stability from technology, which many blockchains are unable to achieve in equal measure. Some blockchains are able to achieve a high transaction speed at what some would consider the expense of stability. To become widely accepted, blockchains need flexible frameworks that do not sacrifice speed or flexibility, and at the same time provide identity and security. Developers must be able to create smart contracts and applications with ease and in a reasonable time frame. A Visionary Steps Forward Alex Xiong envisioned a blockchain that uses a delegated proof of work consensus that would be easier f..
During last year, the value of Bitcoin sent to darknet markets has notably increased, according to a report. During last year the value of Bitcoin (BTC) sent to darknet markets increased by 70 percent, according to a Chainalysis report published on Jan. 18. The Chainalysis report points out that darknet activity is relatively not influenced by Bitcoin’s price action and does not necessarily drop when the price drops. According to the data contained in the report, in 2018 the relationship between the value of darknet market transactions and Bitcoin’s market performance was inverse. Over the course of 2018, the total value sent to darknet markets saw a notable 70 percent increase, while total Bitcoin economic transaction value dropped throughout the year. Value of BTC Sent to darknet markets and BTC Market Performance. Source: Chainalysis According to Chainalysis data, the total dollar value of darknet market transactions has been steadily rising since 2011. The value peaked in 2017 at..
A new report by BitMEX shows that ICO teams have lost 54 percent of value of the initial $24 billion worth of tokens allocated to themselves. The value of tokens that over a hundred of initial coin offering (ICO) teams have allocated to themselves has decreased by 54 percent from the initial figure of $24 billion. This was revealed in the latest research by cryptocurrency exchange BitMEX published Jan. 16. BitMEX has conducted a research of the ICO market in collaboration with analytics firm TokenAnalyst, looking into treasury balances of more than a hundred projects on the Ethereum (ETH) network. The analysis reportedly made use of machine learning techniques and was based on the interpretation of smart contract data and transaction patterns on the Ethereum blockchain. According to the report, the combined value of all the tokens that the analyzed projects have allocated to their own teams, has gone down from $24.2 billion at the time of each individual token’s issuance to about $5 b..
In the fourth quarter of 2017, many investors wanted to buy BTC and ETH specifically to invest in initial coin offering tokens. They didn’t intend to hold BTC and ETH but had to buy them to get what they wanted. Those who owned BTC and ETH, on the other hand, had no interest in selling. They were waiting for the price to rise so they would sell and make profit. There were also those who owned these cryptocurrencies because they believed in them. Why Did The Price Of Cryptocurrencies Fall? After the cryptocurrency startups completed their ICOs and became whales, they decided to unload their tokens in December and January 2018. This led to an increase in the demand for BTC and ETH which was followed by an increase in price. Unfortunately, the hangover faded and startups started exchanging their cryptocurrencies for fiat so they can pay engineers and develop their companies. This fueled the run-on-the-bank panic that brought the cryptocurrency market to where it is today. Again, regulato..
An opinion article on why the market is falling down The views expressed here are the author’s own and do not necessarily represent the views of Cointelegraph.com. The way I see it, investors in 2017 — and specifically in Q4 — wanted to buy Bitcoin (BTC) and Ethereum (ETH) for the sole purpose of exchanging it for specific ICO tokens they wanted to invest in. The buyers of Bitcoin and Ethereum did not want to own Bitcoin or Ethereum. They wanted to buy the newly issued initial coin offering (ICO) tokens, but they needed to buy Bitcoin and Ethereum as a short way to get what they ultimately wanted. The owners of Bitcoin and Ethereum did not want to sell. They were watching the price of their holdings increase, so why would they? They were also believers in Bitcoin and Ethereum. So, in a “bid-ask world,” the price went up. Then, those startup companies that completed their ICOs became whales, which began — as a group — to unload their tokens in December and January, thereby flipping the..
Major crypto bull Tom Lee has stated that the fair value of Bitcoin is “significantly” higher than its current price. Cryptocurrency bull and co-founder of Fundstrat Global Advisors Thomas Lee said that the “fair value of Bitcoin (BTC) is significantly higher than the current price,” Bloomberg reported on Dec. 13. In a note delivered on Thursday, the veteran market analyst reportedly said that Bitcoin’s fair value is between $13,800 and $14,800, considering the number of active wallet addresses, usage per account and factors influencing supply. Lee attributed the divergence to last year’s meteoric rise, a macroeconomic “meltdown” and treasury sales during initial coin offerings (ICOs). Lee stated: “In fact, working backwards, to solve for the current price of Bitcoin, this implies crypto wallets should fall to 17 million from 50 million currently.” Among key drivers that would drive the value of BTC upward, Lee named mass adoption of Bitcoin and its acceptance as an asset class. He al..
Ex-chief economist of the IMF and Harvard University Professor of Economics and Public Policy Kenneth Rogoff has characterized Bitcoin as “a lottery ticket.” The former chief economist of the International Monetary Fund (IMF) has characterized Bitcoin (BTC) as “a lottery ticket,” in an article for major United Kingdom daily broadsheet The Guardian Dec. 10. Writing in the midst of the recent crypto market price collapse, current Harvard University Professor of Economics and Public Policy Kenneth Rogoff suggested that the “overwhelming sentiment” among crypto advocates is that the total “market capitalisation of cryptocurrencies could explode over the next five years, rising to $5-10 [trillion].” The historic volatility of the emerging asset class, he conceded, indeed indicates that Bitcoin’s decline from its all-time highs of $20,000 to under $3,500 earlier today is “no reason to panic.” Nonetheless, the economist dismissed the “crypto evangelist” view of Bitcoin as digital gold, calli..
Thailand’s Revenue Department is conducting tests of a blockchain system for tracking value-added tax (VAT) payments. Thailand’s Revenue Department is testing blockchain to track value-added tax (VAT) payments, English-language media outlet Bangkok Post (BP) reports Dec. 3. Ekniti Nitithanprapas, director general of the Thai Revenue Department, said that the department “wants to use blockchain technology to prevent VAT refund fraud.” According to the BP, the nation is “on the path to becoming the first country to use the distributed ledger for tax probes if the technology is adopted.” The article cited Nitithanprapas explaining that “blockchain is expected to help verify VAT invoices” and “root out fake invoices for VAT claims,” defining “adoption of new technologies” as his priority. Thailand’s revenue department has also “set its sights on adopting machine learning and using artificial intelligence to learn and study tax-cheating practices” to ultimately “compel more people to enter..
Venezuela’s Maduro has increased the Petro’s value from 3,600 to 9,000 bolivars in the midst of ongoing inflation in the country. Venezuelan president Nicolas Maduro has raised the reference value of the national cryptocurrency, Petro, against the background of the country’s ongoing hyperinflation, the president’s official Twitter tweeted Nov. 30. According to major Latin American television channel TeleSur, Maduro first announced the new Petro rate on Thursday. Nov. 29. The value of the Petro is now set at 9,000 sovereign bolivars, instead of the previous 3,600 bolivars. Speaking in Caracas that day, Maduro also ordered an increase in the monthly minimum wage by 150 percent, which is the sixth increase in 2018 and 25th in total during Maduro’s presidency. Later that week, Venezuela also devalued Dicom, the official exchange rate in the country, Bloomberg reported Saturday, Dec. 1. The national fiat has dropped by as much as 40 percent, from 96.84 sovereign bolivars per dollar on Nov...