Welcome to Daily News Roundup 27th Oct, 2017
Here, we cover the most important news of the day in brief. We also provide insights on their probable effect on the cryptocurrency market and its future. Subscribe us to stay informed.
#1 Algeria to join list of countries that ban cryptocurrencies
- Bitcoin usage and ownership will be illegal in the country.
- Any violation will invite the wrath of the laws and regulations in force.
- Probable use of cryptocurrencies for drug trafficking, tax evasion, money laundering seems to be the main reason for this move. Anonymity of users is another main reason.
- Indonesia was the recent nation which expressed its disapproval for cryptocurrencies.
Countries that ban cryptocurrencies are denying their citizens the right to understand and experience this new technology. Such countries will inevitably take much times later to catch up with the rest of the world.
#2 Is Bitcoin a bubble? Nasdaq.com says no and gives reasons
- Nasdaq gave five reasons why Bitcoin price is not a bubble.
- Increasing acceptance as legal tender, merchant acceptance and as an investment opportunity for “unstable” economies are the strongest reasons.
- Awareness and regulatory support by some countries are other reasons.
The ecosystem that evolves and supports the mining of cryptocurrencies is also a strong reason as to why Bitcoin is not a bubble.
#3 MasterCard adopts the Blockchain technology
- After IBM, now we have MasterCard joining the list of companies that use the blockchain technology.
- The use is invitation based currency and no cryptocurrency is supported. Allows Clients to Pay via the Blockchain.
- Benefits associated with blockchain technology include security, transparency, and efficiency.
Increasing adoption of blockchain technology serves as proof of the robust nature of the blockchain technology. As cryptocurrencies are based on the same technology we expect Bitcoin price to keep increasing on a long term basis.
#4 Bitcoin Forks so far
- Bitcoin Cash and Bitcoin Gold cannot be spent on the Bitcoin network.
- There will only ever be 21 mln Bitcoin in existence.
- Soft forks are backwards-compatible, upgraded nodes can use the new features.
- Hard fork are not backwards compatible and all nodes must upgrade.
- Replay protection prevents transactions on one network from affecting the other network.
Forks are a given reality. But their long term viability is not easily predictable. After a fork, we essentially have an altcoin. The upcoming Nov fork has to be watched closely.
#5 BTCChina initiates to shut down its business
- Withdrawal services will be provided upto Oct. 30, increased fees apply.
- Possession of Bitcoin by Chinese is not illegal. Some view this as a temporary set back.
- Huobi and OKCoin are to shutdown their trading business too.
We can expect Russia and some other central asian countries to follow this path. As previously noted, people lose valuable investment opportunity because of such moves.
#6 Billionaire investor Warren Buffett terms Bitcoin as a real bubble
- He said “You can’t value bitcoin because it’s not a value-producing asset.”
- Also termed Bitcoin as a mirage and said that people are just excited about it.
- Buffett is not alone, Saudi Prince Al-Waleed bin Talal this BTC is a bubble too.
Opinions are divided. While the blockchain technology is widely acclaimed, Bitcoin as currency is being criticised by some.Some fiat currencies don’t have value by themselves. Bitcoin has the potential to be the money of the internet and beyond.
#7 Peter Thiel refers to Bitcoin as a possible ‘Reserve Form Of Money’
- Depending on the trajectory it takes, Bitcoin can serve as a reserve form of money, like gold.
- He said: “If bitcoin ends up being the cyber equivalent of gold it has a great potential left.”
- He previously said that payment volume of bitcoin can get him interested in Bitcoin.
Proponents of Bitcoin seem to no care much about the price volatility of Bitcoin. They instead focus more on the long term potential of what Bitcoin can achieve. They consider Bitcoin the be a fair store of value than gold and other currencies.
#8 Singapore Will Not Regulate Cryptocurrencies
- Monetary Authority of Singapore (MAS) has no plans to regulate cryptocurrencies.
- But, necessary anti-money laundering control will be eventually established.
- Highlighted potential use of cryptocurrencies for cross-border remittance as they provide more convenient and are more efficient.
SIngapore has the potential of being the hub of Blockchain technology in the future.
Disclaimer: Our views are only in good faith and should not be regarded as “investment advice” and Coin Frog cannot be subjected to any kind of liability.