Tag: cryptocurrency

Police crack down on crypto ATMs across Russia

Cryptocurrency and blockchain technology have been making steady advancements into the mainstream market in many countries around the world, but apparently, this was not the case in Russia. According to local media reports, Russian police have seized no less than 22 automated teller machines (ATMs) selling cryptocurrency in several cities in Russia last week.

Operated by the Bbfpro company, the machines were located in shopping malls, restaurants and stores in nine different Russian cities, Russian news outlet RBC reported, quoting Digital Rights Center lawyer Sarkis Darbinyan.

In a separate interview with Russian media outlets, Bbfpro manager Artem Bedarev claimed there was no notice from the Russian authorities prior to the crackdown, noting that the investigation would continue for at least another six months. The machines would not be returned to Bbfpro while the investigation is ongoing.

The operation was ordered by the Prosecutor’s General Office, acting on a request from the Central Bank of Russia (CBR), a government agent told local media outlets. A CBR officer, who declined to comment on the crypto ATM seizures, noted that the government agency conducts “systematic work to identify and counteract illegal activities in the financial market,” particularly since there is a high chance that uncontrolled cross-border fund transfers and cash outs involving cryptocurrencies can happen.

Darbinyan, however, pointed out that the Russian Federation’s current laws do not prohibit citizens from acquiring cryptocurrencies. Bbfpro, for its part, has been observing all legal procedures, paying its taxes, and verifying the identity of its customers even without prompt from the government.

Bbfpro plans to appeal the seizure operation, according to the lawyer.

On its website, Bbfpro said its machines support purchases of cryptocurrencies like BTC. The company works with crypto exchange Exmo, offering technical support for the ATMs. According to Bbfpro, installing one terminal costs 155,000 rubles ($2,300). It charges 1 percent on the registered turnover, which is considerably less than other crypto ATMs in other countries. For example in Malta, ATM operators charge no less than 8% on each transaction.

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.

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Crypto market daily report – September 3, 2018

The cryptocurrency markets continued their impressive recovery on Monday with most coins showing positive increases after a positive weekend following many months of bearish activity. BTC held above the $7200 level after having even superseded the $7300 mark in a flurry of activity with turnover also increasing considerably.

Bitcoin Cash was the star of the show over the past 48 hours, rising by no less than 20% on Sunday to reach the $650 level before dropping back slightly to the $630 level on Monday morning at press time. Ripple remained stuck between the $0.33 and $0.35 range, but analysts have predicted a considerable move upwards in the coming weeks as interest and positive news surrounding the cryptocurrency continued to increase.

Ethereum was the only outlier in this positive move upwards with a price range that continued to hover between the $280 and the $300 mark, although there was very little movement either way. EOS performed an impressive climb of over 20% over the past few days –in fact it is around 35% up on a weekly basis to settle at the $6.50 mark with a further push upwards not unexpected.

Other coins with smaller market caps also saw a good increase with Ethereum Classic charging ahead and bullying the $14 level on Monday at press time—a level not seen since July. Litecoin registered a good increase to the $66 level before falling back slightly to the $65 mark but appeared well supported at that level. NEO was also up by over 15% over the weekend and was trading at the $22 level at press time, whilst XLM appeared slightly static with a trade range between the $0.22 and $0.23 levels. Cardano was slightly disappointing as it retraced slightly to the $0.103 level after having touched the $0.105 mark on Saturday or an 8% increase.

IOTA retained the $0.70 mark on Monday after having retraced slightly over the weekend, whilst ICX and ONT saw 5% declines to the $0.90 and $2.40 levels respectively. DASH also performed positively and held above the $200 mark although it decreased slightly over the past 24 hours by around 2%.

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.

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Questions surround Bitmain’s business plan ahead of IPO

Bitmain, one of the largest cryptocurrency mining equipment manufacturers and mining operations in the world, is looking to go public this month, but a series of missteps may just about put those plans in jeopardy. Apart from making egregious financial backing claims that have since been refuted, new questions have come up regarding the company’s financial solvency and, most recently, its business practices.

Internal Bitmain documents that were leaked to the public has shown that the company may have indulged in some creative accounting. In the documents, which were posted on Twitter and is in Chinese, Bitmain asserted that it holds assets worth around $2.6 billion. Of these, $1.2 billion-worth is reportedly held in inventory, which means that almost half of its assets are devices that it has not been able to ship. In other words, the company has a large quantity of machines that it hasn’t been able to push out to the market because demand has fallen.

That conclusion was reached by the Bitcoin Mercantile Exchange (BitMEX), which translated and analyzed the leaked documents. It asserted, “We have reason to believe the authenticity of these documents, which forms the basis for this report.”

BitMEX also concluded that Bitmain’s sales dropped from 2.5 million to 1.9 million between last year and the first quarter of this year. This represents a revenue decline of around $500 million, despite the fact that the company’s largest microchip supplier, Taiwan Semiconductor Manufacturing, reached a new revenue high of $866 million last year.

Bitmain is the owner of the two largest crypto mining pools in the world, Antpool and BTC.com, and is part owner of another, ViaBTC. The three pools mine about 48% of all mined Bitcoins; however, the revenue generated from them for Bitmain dropped to 3.3% in the first quarter of the year, down from 18.4% in 2016. These figures are proportionate, as the company’s mining revenue increased last year as mining activity increased. However, crypto mining is now losing profitability.

Bitmain has hinted at an initial public offering (IPO) for several months and had anticipated a $30-billion valuation before going public. After a recent funding round, it said that it was halfway there, thanks, in part, to Japan’s Softbank and China-based Tencent. Both companies have now publicly denied any involvement in funding the company. It is now time to seriously consider how viable the company is and take a deep look into its operations before the IPO is allowed to move forward.

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.

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Rick Falkvinge on why Bitcoin BCH is true driver of digital currency

As part of his “We Are All Satoshi” series, Bitcoin BCH pioneer and supporter Rick Falkvinge has published his latest video. Falkvinge raises several good points about the motivation behind different cryptocurrencies and how these motivations impact the direction the currency takes. It all comes down to one fundamental question: Why are we here?

In perusing the various cryptocurrency forums, patterns of discussion begin to emerge. On the one hand, the BTC community has a propensity to discuss price, almost to the point of being obsessed with how the value changes from one minute to the next or how to make the biggest return on a BTC investment. On the other hand, the topics of concern in the Bitcoin BCH forums are more focused on the community and developing the cryptocurrency ecosystem.

While it may appear, then, that the Bitcoin BCH community is apathetic toward the price of the currency. It would almost seem as though the topic of price is being suppressed. However, as Falkvinge points out, this isn’t the case. Instead, there is a “collective disinterest.” The difference is that Bitcoin BCH proponents are more concerned with ensuring the development and survivability of cryptocurrency than they are with lining their own pockets.

In the early days of cryptocurrency, it seemed that supporters were breaking off into one of two camps—activists or entrepreneurs. Activists can live off of what’s available, while entrepreneurs want to make money. An entrepreneur who only wants to make money will only turn out to be an “acceptable entrepreneur.” Great entrepreneurs excel because they want to make a difference in the world. These types of entrepreneurs have a great deal in common with the activists.

Falkvinge’s rightfully points out that the number one “guiding star”—or prime directive, as he calls it—for cryptocurrency, in keeping with the original design created by Satoshi Nakamoto, is to employ the “create liberty through profit” motive. In other words, liberty comes first, profit is secondary. This is the complete opposite of the way the BTC community, which is singularly focused on making money, thinks. To them, it’s a status symbol, not a digital currency. This isn’t how you change the world.

This is why BCH community doesn’t care about getting rich. It is concerned about making things better. Falkvinge acknowledges what virtually all cryptocurrency enthusiasts think—that if it makes money in the process, it will be great. However, this is not, nor should it be, the primary goal of cryptocurrency.

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.

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