Despite concerns over volatility and security, research has shown that the vast majority of businesses are open to using cryptocurrency for business transactions, and that positive awareness is being raised over cybersecurity.

Business Sense

In their push towards mainstream adoption, Bitcoin and cryptocurrency continue to solidify themselves in the minds of business owners everywhere — who are increasingly more open to utilizing cryptocurrency for business transactions.

A study by Neustar International Security Council (NISC) has revealed that 80 percent of organizations are interested in utilizing Bitcoin, Litecoin, and other cryptocurrencies for transactions.

Savvy businesses are also aware of the potential gains available on the volatile cryptocurrency market, as 48 percent believe using cryptocurrency for transactions could generate income through increased value.

However, as noted by Computer Business Review, 26 percent also claimed risks are posed by accepting cryptocurrencies that are commonly used as ransom payments, and 80 percent also noted their awareness of the increased risk for DDoS (distributed denial-of-service) attacks.

Positive Impacts on Security

Security surrounding the emerging cryptocurrency market is undoubtedly increasing, however, and roughly 40 percent of businesses claim to be actively increasing security in regards to DDoS, ransomware, and targeted hacks. Explained Rodney Joffe, Head of NISC and Neustar Senior Vice President and Fellow:

Ransomware and DDoS attacks continue to be seen as the leading threat to companies due to the sheer volume, complexity and potential severity of an attack. That said, not too far behind as the second greatest concern to businesses moving forward is financial threat.

Computer Business Review reports that DDoS attacks are the largest concern to business owners, followed closely by fears of ransomware attack — which is seen at the fastest increasing threat, with 45 percent of respondents worried most about ransomware in the future. Explained Joffe:

Armed with plenty of tools, such as compromised IoT devices, it’s likely that we’ll see hackers make use of ransomware and DDoS attacks to cause major distractions. At the same time, we’ll likely see them put a focus on stealing large amounts of financial data, which may include traditional currencies, or the increasingly popular cryptocurrencies – such as Bitcoin. By developing a more cohesive security strategy, organisations can hone in on their most vulnerable data, processes and models, protecting their critical information in the short and long term.

How long until you think Bitcoin and cryptocurrency payments are commonplace in mainstream, everyday businesses? Do you think ransomware attacks will continue to increase? Let us know in the comments below!

Images courtesy of Reuters, Bitcoinist archives.

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A San Diego company brokering the sale of two multimillion-dollar homes recently announced that it would accept Bitcoin as payment, in addition to cash. 

Bitcoin Has Entered the Housing Market

It’s no secret that Bitcoin and other cryptocurrencies have gained immense popularity over the past year and businesses are taking note. Bitcoin, a peer-to-peer exchange system that essentially eliminates the need for banks, has seen a huge uptake with businesses adopting related features as consumer interest grows.

Just under one year ago, a buyer used Bitcoin to purchase a mansion in Manhattan Beach in Southern California’s first real estate sale using the daddy of cryptocurrency. Many similar listings to this one are appearing all over the world as more and more people attempt to take advantage of the cryptocurrency’s unpredictable nature.

Neeraj Agrawal, director of communications for the Coin Center, a virtual currency-focused think tank, explained his support for using Bitcoin in real estate transactions. He stated:

Within the context of real estate, it makes sense to use cryptocurrency in those types of transactions. Cryptocurrency is a way to send large amount of money pretty easily with relatively low fees and little interference from middlemen.

Will Accept Bitcoin for Real Estate

According to the L.A. Times, the two San Diego homes currently being sold for Bitcoin are listed for sale at the price of $19.8 million in either Bitcoin or cash.

Andrew Canter is the chief executive of the real estate brokerage and investment firm, Canter Cos. He is selling both his home and his friend’s, and Canter is using any marketing techniques he can to tap into potential markets, saying:

We realized there is so much new wealth in the crypto space. There are a lot of new buyers and a lot of people who have seen their wealth fluctuate over the last year.

Canter clarifies the steps and risk management a seller must take when doing a transaction using cryptocurrency. If a buyer does use Bitcoin, he will likely use an investment bank that will write a futures contract. Futures are a contract to buy or sell an asset at a specific date for a specific price. This will lock in whatever the Bitcoin is valued at when the deal is made for several months.

Canter also reasoned that although there may be a financial benefit, it is largely based on the preference of the seller because the cryptocurrency’s price can fall as quickly as it rises. Additionally, there is not necessarily a tax advantage to selling a home for Bitcoin. When the seller resells the virtual currency, they are required to pay a capital gains tax, cutting into the profits of the sale. Of course, this occurs if the sold cryptocurrency nets a gain from when it was initially received.

Bitcoin and other cryptocurrencies are making transactions more easy and efficient, but the coin’s unpredictable value will truly determine whether Canter turns a profit. One issue facing buyers and sellers is that many banks refuse to handle escrow or housing loan applications that deal with cryptocurrency as they often have no experience in doing so.

However, people are becoming more accustomed to using cryptocurrency as time passes, and people who have listed real estate for virtual currency have often received positive attention. Chances are that the use of cryptocurrency in real estate will become more common in the near future.

What do you think of Bitcoin being used in real estate? Is selling your home for cryptocurrency something you’d do? Let us know in the comments below!

Images courtesy of Pixabay.

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According to a new study, more than 50 percent of retailers utilizing Square Inc.’s checkout technology would be willing to accept Bitcoin (BTC) as a form of payment.

Bitcoin Acceptance on the Rise

A Nomura Instinet-conducted survey of roughly 100 merchants in the United States revealed that 60 percent would accept Bitcoin over USD.

As reported by Bloomberg, the merchants surveyed spanned various industries and all had a minimum of $100,000 in annual revenue. Roughly 40 percent of those polled fell between the ages of 31 and 40.

The willingness to accept Bitcoin came as a surprise to those conducting the survey. Said Nomura Instinet analyst Dan Doley in a report:

This result is surprising, especially amid Bitcoin’s elevated volatility.

Square Inc. itself has been a proponent of the dominant cryptocurrency as of late.

Last November, Square began affording select customers the ability to buy Bitcoin on its Cash App — a popular app which allows users to send money to each other. In January, the company began rolling out the Bitcoin-buying option to the majority of its user base. Stated CEO Jack Dorsey in an earnings call in February:

Bitcoin, for us, is not stopping at buying and selling. We do believe that this is a transformational technology for our industry and we want to learn as quickly as possible.

Bitcoin has its Haters

Of course, not everyone believes in Bitcoin’s potential as a currency.

Last month, Bank of England Governor Mark Carney claimed that Bitcoin has failed as both a viable currency and as a store of value – citing volatility and the lack of vendor adoption. He told students at London’s Regent’s University:

It has pretty much failed thus far on … the traditional aspects of money. It is not a store of value because it is all over the map. Nobody uses it as a medium of exchange.

Carney later followed up his FUD-filled rhetoric in a speech to Bloomberg, in which he stated:

The short answer is: they’re failing. Cryptocurrencies are poor stores of value. Over the past 5 years, the daily standard deviation of Bitcoin was 10x that of sterling […] This extreme volatility reflects that the cryptocurrencies have neither intrinsic value nor external backing. Their worth rests on beliefs about their future supply and demand — ultimately about whether they’ll be successful as money.

Of course, not everyone listens to Carney, whose job is to defend the traditional financial institution Bitcoin undermines — as evidenced by the increasing interest in accepting Bitcoin as payment from vendors.

What do you think about Bitcoin’s long-term prospects as a viable currency? Let us know in the comments below!

Images courtesy of Reuters, Square Inc., Flickr/Policy Exchange

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Newegg, North America’s leading technology-focused e-retailer, announced on Wednesday that the company is affording customers in Canada the option of paying for products with Bitcoin — citing increased mainstream awareness of the digital currency.

‘The Time Is Right’

Shoppers in Canada using popular e-retailer Newegg may now pay for purchases with Bitcoin.

The addition of Canadian Bitcoin payments is long overdue, as payments in the dominant digital currency have been accepted from customers in the United States since August 2014. Notes the company’s CEO, Danny Lee:

In 2014 Newegg was among the first major companies to offer customers a bitcoin payment option. Since that time the value of bitcoin has skyrocketed and customers holding bitcoin have considerably more purchasing power. We believe the time is right to broaden our acceptance of bitcoin to our customers in Canada.

As noted by Business Wire, a large portion of Newegg’s 36 million total customers live on the North American continent. Now said customers in both the United States and Canada can use Bitcoin to purchase products from the company’s complete catalog.

Newegg’s Bitcoin payments in Canada will be processed via BitPay — a global Bitcoin payment service provider headquartered in Atlanta, Georgia — as has been the case for US payments. BitPay allows Newegg to both accept payments in the dominant cryptocurrency as well as process refunds and payment exceptions via “the most powerful bitcoin API in the industry.” Says BitPay CEO and co-founder Stephen Pair:

Newegg was an early e-commerce adopter of bitcoin, and that leap of faith the company took in 2014 put Newegg on the map as a bitcoin-friendly place for tech enthusiasts to shop. We’re seeing a lot of traction in Canada, and we’re happy to see Newegg extend its bitcoin payment option north of the border.

Lite’s Out

On the flip side of the coin, thing’s aren’t looking so good for LitePay — a BitPay-like payment processor for Bitcoin’s younger brother, Litecoin.

Earlier this week, The Litecoin Foundation announced that LitePay CEO Kenneth Asare has shut down all operations related to the project and is actively preparing to sell the company. The closure comes after the project was improperly hyped by both The Litecoin Foundation and Litecoin creator Charlie Lee. Wrote Lee on Twitter:

Like everyone else, we got too excited about something that was too good to be true and we optimistically overlooked many of the warning signs. I am sorry for having hyped up this company and vow to do better due diligence in the future.

What do you think of Newegg’s acceptance of Bitcoin as a viable payment option for Canadian customers? Do you think more websites will start accepting the dominant cryptocurrency as mainstream awareness increases? Let us know in the comments below!

Images courtesy of Adobe Stock, Bitcoinist archives, Shutterstock

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According to new reports, Reddit has stopped accepting Bitcoin as a payment method.

 No More Reddit Gold for Bitcoin

The popular social media platform, Reddit, has stopped accepting Bitcoin for Reddit Gold. The platform had started accepting the decentralized cryptocurrency back in 2013 through a partnership with the popular online Bitcoin exchange, Coinbase.

Many people found this decision to stop accepting Bitcoin odd since the social media platform has a very large and active cryptocurrency community. Reddit admin emoney04 confirmed the decision to stop accepting Bitcoin:

Yup that’s right. The upcoming Coinbase change, combined with some bugs around the Bitcoin payment option that were affecting purchases for certain users, led us to remove Bitcoin as a payment option.

Users speculate that this decision may have been driven by the previous high transaction costs of Bitcoin that even reached $50.

Will Bitcoin Get a Second Chance?

High transactions fees may have been the reason why some online merchants stopped accepting Bitcoin as a payment method. However, Bitcoin transaction costs have drastically fallen in the last couple of months. The average Bitcoin transaction currently costs $1.07, which when compared to other payment forms, is pretty attractive to consumers.

According to a Bloomberg report, the popular online Bitcoin exchange, Coinbase, has released  a new tool called Coinbase Commerce. The new tool allows online shops to easily accept popular cryptocurrencies like Bitcoin, Litecoin, and Ethereum.

Reddit’s decision to stop accepting Bitcoin may not be final. The social media platform is currently reviewing the current demand for Bitcoin payments and will act accordingly. Reddit admin emoney04 noted:

We’re going to take a look at demand and watch the progression of Coinbase Commerce before making a decision on whether to reenable.

In case Coinbase’s new tool shows good results, we may not only see Reddit accepting Bitcoin again, but many other major online shops as well.

What are your thoughts on Reddit’s decision to stop accepting Bitcoin? Do you think that the platform will re-enable Bitcoin payments again? Let us know in the comments below!

 Images courtesy of  Pixabay and Shutterstock.

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2018’s cryptocurrency charts have you feeling blue? Don’t worry. According to some experts, there are still plenty of riches to be made by investing in market leaders.

‘Still way too early’

In 2017, plenty of individuals joined the new crypto-rich crew. However, many also became crypto-poor — having been left holding the bag after buying at all-time highs. Explained Invest.com Senior Analyst Jesse Cohen to Forbes:

It’s safe to say that the price action in the crypto market over the past few months has been very ugly. All the major coins have suffered steep double-digit declines since the start of the year and are all trading below their respective 200-day moving averages, which usually signals more losses ahead.

However — though nobody can predict the future — it would be foolish to assume that “Bitcoin is dead,” “the cryptocurrency bubble has popped,” or that any other FUD-filled statement repeated time and time again has finally come to fruition. Explains Cohen:

We’ve seen Bitcoin do this before, where it plunges sharply over a prolonged period only to violently bounce back to new highs in a short time. While it isn’t looking too hot at the moment, it’s still way too early to call the end of Bitcoin, or cryptos in general.

‘A Multi-Decade Trend’

“Way too early,” indeed. In many respects, cryptocurrency and its underlying blockchain technology is only really starting to gain traction now, with the majority of projects still in their developmental stages. Meanwhile, most of those that are already developed are still struggling to gain mainstream adoption — something many digital currency proponents see as an inevitability. Aaron Lasher, BRD CMO and co-founder, agrees, saying:

The game isn’t over, Digital scarcity is a major innovation in money and value, and we’re in the initial stages of a multi-decade trend towards tokenization of assets.

He also goes so far as to call cryptocurrency’s potential life-changing, asking Forbes:

If sending money globally as easily as an email doesn’t impress you, how about the ability to store your life savings in your head, then walking your family across a war-torn border to safety?

‘True Freedom’

Those who care less about the life-changing applications of cryptocurrencies and more about the potential riches and “true freedom” to be gained by speculating in the market also have reason for optimism. Explained Lasher to Forbes:

Getting rich with cryptocurrency is a proxy for true freedom, a personal financial situation that is largely immune to the politics, flaws, and vicissitudes of an interconnected, global system — an oasis of security and a platform for individual pursuits.

Do you think the cryptocurrency bubble has burst, or do you think the market has only begun to show its true potential? Let us know in the comments below!

Images courtesy of Shutterstock, Pixabay, and Bitcoinist archives.

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Zimbabwe now has a Bitcoin ATM that is providing people with another way to buy and sell Bitcoin and Litecoin. The first of its kind in the southern African country, the 2-way ATM was deployed and activated in the first week of April 2018 and follows the nation’s growing interest in cryptocurrencies.

The ATM was shipped into the country by the largest cryptocurrency exchange in Zimbabwe, Golix. It has been placed at Golix’s customer support offices located in the business district of Zimbabwe’s capital city, Harare. Currently, users can only access it during weekdays from 8 am to 5 pm but Golix has stated that it is set to move it to another location with 24-hour access.

As far as continental strides go, Zimbabwe joins a very short list of African countries that have invested in such machines at one time or another.  While a handful of countries like South Africa and Botswana reportedly deployed ATMs some years ago, at the present moment, Coin ATM Radar lists Zimbabwe’s Bitcoin ATM as one of the only two that are active on the continent. the other one is in Djibouti.

Zimbabwe’s only Bitcoin ATM

Cryptocurrency brings US Dollar and Cash Functionality to a Broken System

The exclusivity of the ATM is hardly the focus, though. All the talk so far, especially in Zimbabwe, has been about how this ATM is actually dispensing cash – specifically US dollars – to sellers of cryptocurrencies.

Zimbabwe has a lasting, nasty reputation for having recorded the worst levels of inflation in modern history. In 2009 the country dropped its own currency which had reduced ordinary people into paper trillionaires. It adopted a multi-currency system that placed the US dollar as the base currency for financial services, including ATM withdrawals.

Less than a decade later, the economy is now plagued by a severe foreign currency and cash shortage which was supposed to have been fixed by a local pseudo-currency introduced in 2016 by the central bank called the bond note. Both the bond note and the US dollars are hard to come by and are actually sold on the streets by numerous black market traders.

As such, local banks haven’t been using their ATMs for bond notes, let alone US dollars. The Bitcoin ATM, which is also the only 2-way ATM in Zimbabwe, is a striking anomaly in this environment, providing a normal banking experience with the trade of cryptocurrency which the government does not officially recognize as a currency.

Points for Cryptocurrency and Digital Literacy in Africa?

So, in all of this, what is the ATM supposed to achieve? According to Golix CEO, Tawanda Kembo, one of the reasons for getting the ATM was to provide cryptocurrencies newcomers with an easy-to-understand way to buy Bitcoin and other digital currencies.

Kembo pointed out that despite the frenzy around bitcoin and cryptos in Zimbabwe in the past year there is still a good number of people who are yet to understand the value of digital currencies even as a real money alternative. There are also some who have heard about bitcoin and would love to get their own but are held back by challenges like digital illiteracy. The ATM was a response to requests for something that would make the buying of cryptos easy.

What are your thoughts on Bitcoin ATMs? Can they play a role in encouraging the adoption of cryptocurrency in markets with a low adoption? 

Images courtesy of Facebook, 

The post Zimbabwe’s First Bitcoin ATM Becomes Country’s Only Source of ‘Real’ Currency appeared first on Bitcoinist.com.

Bitcoin may still be a long way from its past peak, but public awareness of the leading cryptocurrency is at an all-time high – especially in England.

What, You’ve Never Heard of Bitcoin?

Finding someone who’s never heard of Bitcoin is quite the rarity these days.

93 percent of people in the United Kingdom have now heard of the formative cryptocurrency — up 2 percent from January 2018 and up 13 percent from November 2017.

The numbers come from D-CYFOR, an opinion tracker which delivers insights into markets. brands, people, and society.

D-CYFOR not only measured whether or not the general public had heard of Bitcoin but also its attitude towards the volatile digital asset.

As noted by London Loves Business, 56 percent of respondents claimed that they wouldn’t invest in Bitcoin, even if the government was to regulate the country’s cryptocurrency exchanges. On the other hand, 33 percent claimed they’d be “more likely” to invest in Bitcoin or other cryptocurrencies if the government were to lay down the law.

Potential regulation aside, the general public is far from bullish on Bitcoin. 32 percent of respondents stated that they expect Bitcoin to decrease in value over the next six months, while another 29 percent are waiting for the cryptocurrency to fall to zero — both of which are higher than when asked the same questions in November 2017, when the cryptocurrency market was engulfed in euphoria and dreams of getting rich overnight.

The opinion tracker also revealed how long Britain’s hodlers are planning on hodling. Reports London Loves Business:

Of those that have already invested in bitcoin, 50 per cent say they plan to keep their investment for under a year. 22 per cent say for more than 5 years and 28 per cent say they don’t know.

D-CYFOR’s results also illustrate a general distrust in the Bank of England — or, at least, in the idea of the institution launching its own Sterling-backed digital currency. 60 percent of respondents claimed they would not support such a move, while 53 percent of millennials said they would.

How long do you plan on hodling Bitcoin? Do you think the general public’s sentiment will shift more positive in the future, or trend towards negativity? Let us know in the comments below!

Images courtesy of AdobeStock, Reuters, Wikimedia Commons

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Amazon Technologies, Inc. – a subsidiary of American electronic commerce and cloud computing giant Amazon.com, Inc. – has won a patent for a marketplace that offers data feeds. More important, the patented marketplace includes bitcoin transactions.

Patent Approved

The U.S. Patent and Trademark Office has approved Amazon Technologies’ filing for a patent on a streaming data marketplace. The patent in question was originally filed in September 2014 and makes reference to bitcoin transactions twice.

As noted by CNBC, the first bitcoin-related instance described “a data stream that publishes or includes global bitcoin transactions (or any cryptocurrency transaction).” The patent provides an example:

For example, a group of electronic or internet retailers who accept bitcoin transactions may have a shipping address that may correlate with the bitcoin address. The electronic retailers may combine the shipping address with the bitcoin transaction data to create correlated data and republish the combined data as a combined data stream. A group of telecommunications providers may subscribe downstream to the combined data stream and be able to correlate the IP (Internet Protocol) addresses of the transactions to countries of origin. Government agencies may be able to subscribe downstream and correlate tax transaction data to help identify transaction participants.

CNBC also notes that the patents second bitcoin-related example describes how a law enforcement agency may be interested in global bitcoin transaction data in order to correlate bitcoin wallet addresses to IP or physical addresses. Reads the patent:

For example, a law enforcement agency may be a customer and may desire to receive global bitcoin transactions, correlated by country, with ISP data to determine source IP addresses and shipping addresses that correlate to bitcoin addresses. The agency may not want additional available enhancements such as local bank data records. The streaming data marketplace may price this desired data out per GB (gigabyte), for example, and the agency can start running analytics on the desired data using the analysis module.

The Good and the Bad

Whether or not Amazon’s plans are a good thing or not remains to be seen.

One one hand, providing law enforcement agencies and regulators with a wealth of bitcoin-related (or other cryptocurrency-related) information obviously detracts from cryptocurrency’s promise of relative anonymity – though the public ledger is, as the name describes, public.

On the other hand, providing Amazon and it’s stable of vendors with an effective mechanism to accept bitcoin payments is a massive boost to the dominant cryptocurrency’s quest for mass acceptance. With Amazon leading the charge, it’s safe to assume that every other online marketplace would have to follow suit, lest they risk falling further behind the online behemoth.

What do you think about Amazon Technologies’ patent? Do you think the potential pros outweigh the potential cons? Let us know in the comments below!

Images courtesy of Bitcoinist archives.

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Nasdaq CEO Adena Friedman has once again reminded everyone that the cryptocurrency market is legit — too legit to quit, even — as institutional investors have already begun to enter into the future of finance and technology.

An Endorsement from Nasdaq

Looking for someone to make a case for cryptocurrency’s future? Look no further than Nasdaq CEO Adena Friedman. The major figure in the world of finance explained in an interview with CNBC yesterday:

I believe that digital currencies will continue to persist…it’s just a matter of how long it will take for that space to mature. Once you look at it and say, ‘do we want to provide a regulated market for this?’ Certainly, Nasdaq would consider it.

Nasdaq has already dipped its toes into the world of cryptocurrencies, announcing yesterday its plans to collaborate with the Tyler and Cameron Winklevoss’ digital asset exchange, Gemini. It is also partnered with the San Diego-based ETF firm, Reality Shares, which plans to launch a pair of blockchain-related funds before the end of June. Reality Shares CEO Eric Ervin told Forbes:

If you were to rank interest in cryptocurrency on a scale of zero to 10, Friedman would be a six. She would help get the SEC comfortable with cryptocurrency trading. She would not passively wait for them to get on board. If the SEC wanted her opinion, she would give it a thumbs up.

‘The Most Profitable Market of All Time’

Afraid you’ve already missed the Bitcoin boat? Don’t worry — you haven’t. As correctly noted by Forbes, “This is maybe the second inning of the long cryptocurrency game.” Ziad Abdelnour, President and CEO of New York-based investment firm Blackhawk Partners agrees, explaining:

If you think it’s too late to participate in what could be the most profitable market of all time, you are dead wrong. The industry is still in its infancy despite the explosive growth over the last year. There are hundreds of cryptocurrencies available — the trick is finding those that have the best odds of becoming viable long term.

Abdelnour thinks the comments from Nasdaq’s CEO are indicative of the times. Everybody is getting on board — if not with cryptocurrencies, than with their underlying technology. Abdelnour explained:

The technological innovation at the heart of these currencies, the blockchain, is revolutionizing how business is conducted. Dozens of major banks and money management firms have pending projects in this space, including Citi, Credit Suisse, UBS, and MetLife.

Earlier this week, Bitcoinist reported that Goldman Sachs has hired cryptocurrency trader Justin Schmidt. Last week, we reported that Barclays is considering the possibility of opening a cryptocurrency trading desk. Furthermore, 1-in-5 financial firms are reportedly ready to start investing in cryptocurrency.

With Bitcoin and other cryptocurrencies only becoming more and more legitimate, the future is certainly looking bullish.

Where do you see for the cryptocurrency market in 2018 and beyond? Let us know in the comments below!

Images courtesy of Bitcoinist archives and Pexels.

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The Central Bank of the Argentine Republic (BCRA) has this month eased regulations regarding automatic teller machines in the country. The (perhaps unexpected) upshot of this has been a plan to install 4000 new crypto-enabled ATMs.

Rules, Rules, Rules

The new regulations do not contain any direct reference to bitcoin or cryptocurrency. Rather, they allow the installation of ATMs in non-banking establishments, such as supermarkets, shopping centers, and cinemas.

In addition, the regulations allow independent players into the market. Until now there have only been operating licenses for the local Banelco and international Link networks. And all of the ATMs belonging to these two networks have been on banking premises.

The Central Bank has provided a framework of rules by which independent and third-party tellers can integrate into the existing payment system.

So… Cryptocurrency How?

One of the first major players to take advantage of the new rules is Odyssey Group. CEO Sebastian Ponceliz explains:

We have pre-agreements to install 4,000 ATMs… but that is only a small part of the Central Bank’s expected 30,000 new machines throughout the country.

The new ATMs will be the company’s Octagon models. Odyssey installed over 200 of these machines across Argentina last year. At the time, those machines could not access the wider banking network. They were purely crypto ATMs allowing the two-way exchange of bitcoin, ethereum and litecoin.

With the relaxing of regulation, however, these machines open up a whole new range of possibilities as a convenient gateway between fiat and crypto.

Gimme, Gimme, Gimme

A machine will cost $8000 plus an installation fee of between $1000 and $1500. And the owner will have to keep it stocked with money. Odyssey describes their ATMs as “really just a vending machine that dispenses cash instead of snacks or soda.”

Owners receive payment for each transaction placed through the machine and Odyssey suggests that initial costs should be made back within five or six months. The average number of transactions per month at existing teller machines is 10,000. So a well-placed machine not constrained by being in a bank, could receive decent footfall and do very well.

But before you rush down to your local installer, there is a mobile app to see where nearby (rival) machines are placed. You can even see whether there is any money inside – which might be perfectly reasonable in Argentina, but where I grew up that’s just asking to be stolen.

Have you ever used a Bitcoin ATM? Do they make entry into crypto easier for newcomers? Let us know what you think in the comments below.

Images courtesy of Infobae, Pixabay, Banco Central/DyN

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After a rather unpleasant 3 months which saw the price of Bitcoin fall to less than half its all-time high, the gold standard of cryptocurrency has finally shown signs of reversal. The market leader is currently trading around $9200, but can Bitcoin ever reach and surpass its previous highs? Sure it can — here’s how.

‘Better Security Infrastructure’

As suggested by Forbes, the first thing which could send Bitcoin skyrocketing is increased adoption as a conventional currency — meaning as both a store of value and medium of exchange. However, for this to happen, more secure and user-friendly infrastructure must be built. Christian Ferri, President and CEO of BlockStar, explained:

Assuming Bitcoin will be used as [a] store of value going forward (e.g. digital gold), a better security infrastructure overarching the entire crypto ecosystem will be needed for people to place trust in this new financial medium and start using it. Once this happens, more people will jump in, so a scalable infrastructure will be crucial.

Price Stabilization

Ferri also noted to Forbes that security enhancements alone aren’t enough to push Bitcoin into the mainstream as a viable currency. In order to act as legitimate tender, the price needs to be stabilized by protocol enhancements. He explained:

If new enhancements are done to the protocol to allow Bitcoin (or a fork of thereof) to become a medium for everyday transactions (e.g. buy your Latte with Bitcoin), we’ll need a stability mechanism in place, on top of security and scalability mentioned above. This way that Latte won’t cost you $5 today and $50 tomorrow.

Institutional Investors

Thirdly, the virtual currency needs big money to come in if it ever expects to reach new highs. And by “big money,” we mean institutional investors. Paul A. Taylor, Executive Chairman of Fabric Foundation, told Forbes:

The influx of money from institutions putting money into crypto index funds will cause a cascading [effect], causing the herd to rush in.

Darren Marble of CrowdfundX agrees, noting:

At this stage, institutional investors hold the key to Bitcoin’s growth. Concerns around liquidity, security, counterparty risk and custody of assets have so far prevented institutional investors from buying Bitcoin on decentralized exchanges.

Regulated Exchanges

It’s a well-known fact that big-money investors have begun dipping their toes in Bitcoin’s waters — but for institutional investment to really come into play, regulated exchanges need to launch cryptocurrency offerings. Marble told Forbes:

Only when regulated exchanges — such as tZERO, Coinlist, or even NASDAQ — go live with their secondary crypto trading platforms, will the smart money begin investing directly into Bitcoin. Once this happens, the floodgates will open and we will see a new paradigm emerge; the crypto market cap will exceed $1 billion, and lead by new all-time highs of Bitcoin.

ETFs

Finally, the last major thing which could push the daddy of cryptocurrency to new highs is the launching of cryptocurrency-related exchange-traded funds — otherwise known as ETFs. Chris Kline, co-founder and COO of BitcoinIRA.com, told Forbes:

Crypto-related exchange-traded funds may allow for simpler trading through brokerage accounts, which would also contribute to hiked up prices for Bitcoin and other cryptocurrencies. The writing is on the wall; with so much momentum surrounding Bitcoin and other digital currencies, in my opinion, it’s only a matter of time before prices rebound again.

Did we miss anything? Do you think BTC will revisit and surpass its previous highs? Let us know in the comments below!

Images courtesy of Bitcoinist archives and Adobe Stock.

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Reddit is getting ready to accept Bitcoin payments once again. Reddit CTO Christopher Slowe revealed the decision during an interview with Cheddar. The platform had ended support for Bitcoin payments in March 2018.

Bringing Back Bitcoin Support

According to Slowe, the online discussion and news aggregation platform is working to restore Bitcoin payments. The Reddit CTO also touched on the reasons for the initial decision to disable Bitcoin payment support.

Coinbase, the cryptocurrency exchange service, made changes to its API, switching from merchant tools to the new Coinbase Commerce platform. As a result, platforms that used Coinbase to process Bitcoin payments had to upgrade their systems. Slowe said the Reddit team was busy with its redesign at the time that Coinbase made the change. Thus, they weren’t able to implement the upgrade.

.@Reddit, which hosts communities for every single cryptocurrency in the world, is hoping to bring back crypto payments to the platform, this time with Ethereum and Litecoin in addition to Bitcoin, according to CTO @KeyserSosa. pic.twitter.com/wkUniMvhex

— Cheddar (@cheddar) May 2, 2018

At the time of the removal for Bitcoin support by Reddit, many surmised that it was due to the high transaction fees. After the removal back in March, an admin for the site wrote:

Yup, that’s right. The upcoming Coinbase change, combined with some bugs around the Bitcoin payment option that were affecting purchases for certain users, led us to remove Bitcoin as a payment option.

The decision was surprising given that Reddit is one of the prominent online crypto hubs. The platform began accepting Bitcoin payments in February 2013, becoming one of the first online services to do so. Users of the site could pay for a Gold membership subscription using the cryptocurrency. This subscription, which cost $30 per year, allowed users to disable ads and create custom avatars, as well as other features.

The website is a useful resource for the crypto community, hosting information on relevant industry happenings. The Bitcoin subreddit has 817k subscribers while the cryptocurrency subreddit has 663k subscribers.

Ethereum and Litecoin Payments Coming to Reddit

Reddit wants to add more cryptocurrency payment options besides Bitcoin. When asked whether the platform would consider other crypto payment options, Slowe said:

We have been looking at other cryptocurrencies. We are looking at Ethereum and Litecoin that are provided by Coinbase as well.

However, don’t get too excited yet. The social media platform has not given any concrete timeframe for when it will resume accepting Bitcoin payments. The migration of old merchants onto the new Coinbase Commerce platform continues till the end of May, so chances are more information will be released after that.

What do you think about Reddit restoring Bitcoin payments? What other cryptos apart from Litecoin and Ethereum should Reddit add to their crypto payment support? Let us know in the comments below.

Image courtesy of Twitter/@Cheddar and Bitcoinist archives.

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Brian Kelly, the founder and CEO of BKCM LLC, believes that the days of relegating Bitcoin to the background of the financial market are over. The number one cryptocurrency has been on a resurgence and can no longer be ignored.

Bitcoin Is a ‘Serious Market’

Speaking at the annual Hoover Institute Monetary Policy Conference, Kelly said Bitcoin is a “serious market.” He said that in previous years, cryptocurrency discussions rarely happened at mainstream financial conferences. However, the number one crypto was a recurring topic at the occasion.

According to Kelly, the virtual currency market is no longer a niche market populated by core crypto believers. The mainstream financial market is starting to take notice of Bitcoin, which means that, overall, the market has become hard to ignore. Kelly also said that with the total crypto market cap at $460 billion, the increased attention was justified.

What's the Fed's stance on #Bitcoin? @BKBrianKelly was at the Hoover Institution's Monetary Policy Conference, and he reveals what was said about the cryptocurrency pic.twitter.com/qijpil2rZZ

— CNBC's Fast Money (@CNBCFastMoney) May 4, 2018

Goldman Sachs Is Raising the Profile of Bitcoin

The BKCM CEO also identified the recent moves made by Goldman Sachs in the Bitcoin market as another testament of the prolific rise in the stature of the crypto. The famous Wall Street bank recently announced that it would soon begin trading Bitcoin and Bitcoin futures. The proposed plan would make the bank the first Wall Street firm to be involved in cryptocurrency trading.

Legitimacy plays a vital role in establishing an asset class as a viable investment vehicle. Goldman Sachs executive Rana Yared recently declared that “Bitcoin is not a fraud.” Such positive sentiments from leading players in the industry serve to enhance Bitcoin’s pedigree in the eyes of mainstream investors. Reports recently emerged of a Chinese investor who bought 10,000 bitcoins during the bear run in early 2018.

Regulatory Clarity Is Boosting Investor Confidence

With bodies like the SEC shining the spotlight on the crypto space, the consensus is that the number one cryptocurrency is mostly free from any regulatory trouble. Kelly stated the fact that regulatory clarity concerning Bitcoin is contributing to the increase in its price. There are reports that the SEC is looking into some altcoins to determine if they are securities or not. As for Bitcoin, Kelly believes that it is a currency, a view shared by many attendees of the conference.

There is a palpable buzz around Bitcoin at the moment. The crypto is currently on course for a third consecutive weekly gain. With the New York Blockchain Week Summit starting in just a few days, Kelly expects the price of Bitcoin to increase even further. Charlie Shrem, the Bitcoin Foundation founder, recently said that May would be the last time Bitcoin will ever trade below $10,000.

Do you agree that Bitcoin is becoming a mainstream investment asset? How high do you predict Bitcoin prices will reach before the middle of the year? Let us know in the comments below.

Image courtesy of CNBC, Bitcoinist archives. and Twitter/@CNBCFastMoney.

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In a new report published by the San Francisco Federal Reserve, the agency claims that the substantial drop in the price of Bitcoin in 2018 was directly tied to the December 2017 launch of the futures market.

Last year we saw Bitcoin, the largest cryptocurrency by means of market capitalization, peak at around $20,000, marking an increase of more than 1300%. However, in the first quarter of 2018, the cryptocurrency has lost more than half of its value. At the time of press, Bitcoin trades for $9,147.74.

A Decline Marked by the Launch of the Futures Market

According to research carried out by the Federal Reserve of San Francisco, the serious drop after the surge of Bitcoin’s price was directly tied to the launch of a futures market. In the report, researchers note:

The rapid run-up and subsequent fall in the price after the introduction of futures does not appear to be a coincidence […] It is consistent with trading behavior that typically accompanies the introduction of futures markets for an asset.

In mid-December 2017, Chicago Mercantile Exchange (CME) launched its Bitcoin futures contracts. That same day, the digital currency reached its all-time high (ATH) of $20,078.40 according to CoinMarketCap. The Chicago Board Options Exchange (CBOE) introduced its futures market a week earlier, however, trade volume on that exchange was far less substantial.

What Does it All Mean?

Think about it this way – before the futures market was introduced, there was no way for investors who were pessimistic about Bitcoin’s price to bet against it apart from not investing at all. Yet, as the prices kept surging, those who felt more positive about its future movements kept pouring in cash, leading to the aforementioned ATH.

In other words – the pessimists had nothing to do but to wait. In the words of the Fed’s researchers themselves:

So they were left to wait for their ‘I told you so’ moment, […] The launch of bitcoin futures allowed pessimists to enter the market, which contributed to the reversal of the bitcoin price dynamics.

To make things easier to digest, the research compares the situation of Bitcoin to the market’s reaction to securities which are backed by mortgages – it shares the same patterns when it comes to pessimistic and optimistic traders.

What’s Next?

Accurately predicting Bitcoin’s price trajectory is something easier said than done. In terms of research, though, the Fed’s report is clear that future prices could be helped substantially if traditional financial institutions start to open up towards accepting Bitcoin as means of payment. Furthermore, regulations and widespread acceptance are also among the leading ‘success’ factors.

In the meantime, it’s worth noting that ICE – the owners of the New York Stock Exchange (NYSE) – might be launching Bitcoin futures sooner rather than later.

Do you think we are in for yet another bullish Bitcoin year? Please let us know in the comments below!

Images Courtesy of Pixabay, Fortune.com

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The practice of traditional market figureheads taking stabs at Bitcoin is back. Statements given by Bill Gates and Warren Buffett over the past week have caused the cryptocurrency community to erupt in disbelief. 

Bitcoin Under Attack Again?

It seems that the good name of Bitcoin is back under attack by traditionalists who have constantly objected to the world-changing effects which cryptocurrency has.  

On an appearance on the Squawk Box segment on CNBC, Bill Gates, founder of Microsoft and one of the richest people in the world, said that he would short Bitcoin if “there was an easy way to do it.”

It is a shame that Gates seems to have spent no time in researching the topic of shorting the world’s most prominent cryptocurrency.

Tyler Winklevoss, a longtime supporter of cryptocurrency, quickly jumped on Gate’s statement given to the CNBC hosts. Winklevoss gave a statement on Twitter directed at Bill Gates.

Tyler wrote:

There is an easy way to short bitcoin. You can short #XTB, the CBOE Bitcoin Futures contract, and put your money where your mouth is.

Dear @BillGates there is an easy way to short bitcoin. You can short #XBT, the @CBOE Bitcoin (USD) Futures contract, and put your money where your mouth is! cc @CNBC @WarrenBuffett https://t.co/4JIhF5vWsZ

— Tyler Winklevoss (@tylerwinklevoss) May 7, 2018

This being quite a damaging set of words coming from one of the world’s largest Bitcoin promoters or “evangelists” as they are more well known.

Tyler and his brother, has created quite a nest egg for themselves in the cryptocurrency space, founding the Gemini exchange along with gathering a hefty amount of Bitcoin and other cryptocurrencies.

Most crypto users believe that they are actually one of the largest holders of Bitcoin, with some suggesting that they own over 100,000 bitcoins, worth over $900 million USD at current market prices. The Winklevoss twins decided that they would get themselves involved in the cryptocurrency space back in 2013, which some would remember as one of the big crypto years prior to 2017. They were quick to buy up stacks of Bitcoin with the $65 million USD they had received in a settlement with Mark Zuckerberg. 

CBOE Bitcoin Contracts: Adoption and Negative Price Action at The Same Time?

The Bitcoin futures contracts which Tyler referred to was launched in late December 2017 in the midst of the largest run-up which Bitcoin had accomplished to date. In the short span of one year, the cryptocurrency ran from just around $1000 to just over $20,000 before the end of the year, which increased consumer demand for futures. 

The arrival of the CBOE (Chicago Board Options Exchange) Bitcoin futures contracts introduced a new way in which more traditional investors could get themselves involved in the ever-growing space.

An important point to note is that trading CBOE contracts do not allow you the option to actually own the cryptocurrency which you trade. This being a key step away from the decentralized nature which has been so tied to the identity of cryptocurrencies.

Contrary to Gate’s statement, CBOE futures are actually widely accessible to the public through investment portals which a vast majority of brokers promote. Brokers such as TD Ameritrade, along with Interactive Brokers, a popular online brokerage, both offer a way which their user base can interact with CBOE Bitcoin futures.

Although the introduction of these futures were considered helpful by many cryptocurrency users, it has become a way where Bitcoin critics can begin to weigh down the cryptocurrency with negative price action.

A report by the San Francisco Federal Reserve Bank has shown that they believe that Bitcoin futures will only continue to put negative pressure on the price of Bitcoin going into the future.

Research conducted by the FRB of San Francisco shows that the announcement and subsequent release of the futures actually had a lot to do with the change in price for the popular cryptocurrency.

The statement highlighted:

The rapid run-up and subsequent fall in the price after the introduction of futures does not appear to be a coincidence. Rather, it is consistent with trading behavior that typically accompanies the introduction of futures markets for an asset.

It is hard to see whether this is an accurate statement seeing that volatility has become a staple to the cryptocurrency market. However, their research may have indicated that there was at least a glimmer of influence which the futures have caused.

Not only did the release of futures trading have an effect, but so did the accessibility which institutions can now utilize to get their hands involved in the cryptocurrency space. Futures trading allow for institutions to have easier access to buying or short selling Bitcoin contracts. These futures could be a way in which anti-Bitcoin minded financial institutions can use their vast funds to hedge bets against the price of Bitcoin.

Looking Into The Future

Nothing has changed since the FUD (Fear, Uncertainty, Doubt) attacks experienced throughout the tumultuous past 6 months to which the cryptocurrency industry has had to go through.

Not only did Bill Gates trash Bitcoin but so did Warren Buffett, who called the cryptocurrency “rat poison” earlier this week.  

Although this sentiment was expected from a more traditional mind like Buffett, it was unexpected that he was going to come out in such a virulent manner.

It is highly speculated by the community that Buffett does not fully understand what exactly Bitcoin is and what it means for the future of technology and the financial world. Reports show that he has been slow to adopt new technology and still uses flip phones from the last decade.

Hard to talk down on something you don’t understand, eh?

It is unlikely that Gates or Buffett will have a change of heart unless there is something in it for them, whether it be the success of their respective firms or a position of power.

For now, it is unclear whether the statements given by Buffett and Gates alike have had any impact on the frothy cryptocurrency market. But until more concrete numbers begin to show for Bitcoin, it will be hard to tell.

The Bitcoin market has come roaring back recently with an over 60% gain in Bitcoin price and a 100% Ethereum gain over the past 6 weeks. Things may finally begin to be looking up for the market as we reach the dog days of summer.

What do you think of financial tools like the CBOE Bitcoin futures? Will they help or damage the market going into the future? We would love to know, so please let us know in the comments below.

Images Courtesy of Wikimedia Commons/Khulmann, Twitter/@TylerWinklevoss, and Flickr.

The post Bill Gates on Bitcoin: ‘I Would Short It If There Was an Easy Way to Do It’ appeared first on Bitcoinist.com.

Buying bitcoin is about get a whole lot easier for a whole lot of people – particularly in China.

[Update: The original version of this article incorrectly stated that the wallet app is pre-installed on Huawei phones. Instead, the wallet app will be available for download via Huawei’s app gallery that is pre-installed on Huawei phones.] 

Did Somebody Say ‘Mass Adoption?’

Bitcoin is set to continue down the path towards mainstream adoption thanks, in no small part, to mobile phone giant Huawei Technologies Co. On Friday, the third largest mobile handset maker in the world will begin affording their users the ability to download Bitcoin wallets on their devices.

The announcement comes from BTC.com’s vice president of business operations, Alejandro de la Torre, as the BTC.com wallet is slated to become the first cryptocurrency app offered by Huawei’s AppGallery. Explained de la Torre in a phone interview with Bloomberg:

It’s a good opportunity to tap into the Chinese market. The use of cashless payments with apps is very big and the traditional banking system is lacking, so there’s a good use case for crypto payments to grow there.

According to Bloomberg, the wallet will be available inHuawei’s AppGallery pre-installed on all phones.

Putting Bitcoin in the Palm of Everyone’s Hands

This move from Huawei most notably impacts the Chinese market, which doesn’t exactly have a track record of being cryptocurrency friendly.

Despite interest from Chinese citizens, the country’s government has taken a hardline approach to the buying and selling of Bitcoin, outright banning exchanges earlier this year. However, Chinese citizens are not forbidden from owning Bitcoin or other cryptocurrencies.

As noted by Bloomberg, the government of China also blocks Android’s Google Play Store and many sections of Apple’s iTunes, which has effectively served to limit exposure to apps like BTC.com’s cryptocurrency wallet. With Huawei set to provide said wallet to almost all of its users, lack of exposure will no longer be a problem.

Of course, it’s also worth noting that BTC.com is owned by mining hardware manufacturer Bitmain Technologies and is in control of the world’s largest mining pool for the dominant cryptocurrency.

What do you think of Huawei putting Bitcoin wallets into the hands of all its users? Do you think providing convenient wallets to the Chinese population will help facilitate mainstream adoption in the crypto-strict country? Let us know in the comments below!

Images courtesy of Pixabay, Quartz

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Chamath Palihapitiya, a technology VC, has called out Warren Buffett on his negative comments about Bitcoin. In a recent interview, the former Facebook executive said Buffett is not an expert on technology. He also reiterated the notion that Bitcoin is digital gold.

Buffett Knows Little About Technology

Speaking during the interview, Palihapitiya said Buffett, the 82-year Berkshire Hathaway CEO, isn’t entirely tech-savvy. According to Palihapitiya, knowledge of technology isn’t exactly in Buffett’s “circle of competence,” saying:

Not everybody is right all the time.

Indeed, Warren Buffett hasn’t always been right. Despite being regarded as one of the greatest investors of all time, Buffett has passed up on a few choice investments like Amazon and Google. With cryptocurrency, he remains a staunch critic, recently declaring that buying the crypto wasn’t investing but speculating.

Chamath Palihapitiya

The “Oracle of Omaha” has had a lot of negative things to say about cryptocurrency, calling it a bubble and a mirage. He has even called the number one crypto “rat poison,” a view shared by Charles Munger, Buffett’s second-in-command at Berkshire Hathaway. Munger recently referred to the granddaddy of cryptocurrency as a “noxious poison” and called for the U.S. to adopt China’s crypto crackdown philosophy.  According to Buffett, Bitcoin has no intrinsic value and does not produce anything.

Palihapitiya isn’t the only one who thinks Buffett knows nothing about technology and cryptocurrency. Binance CEO Zhao Changpeng said earlier in the year that the Berkshire Hathaway chief doesn’t understand bitcoin. Recently, Weiss Ratings provided evidence to dispute Buffett’s claims that the number one virtual currency has no value.

Bitcoin is a Replacement for Gold

Palihapitiya believes Bitcoin is a replacement for gold. The self-proclaimed Buffett disciple identifies with the importance of the cryptocurrency, saying that it bears no correlation with the mainstream market. As a result, it appears like Bitcoin has created a separate world, one that Palihapitiya jokes requires a passport to move from one to the other.

The former Facebook executive has owned Bitcoin since 2012. He says that he prefers to view the cryptocurrency as a hedge to the uncertainty of the mainstream market. Bitcoin emerged in the aftermath of the 2008 global financial crisis, an event that Palihapitiya says broke the confidence of many people in the safety of mainstream finance. As a final thought, Palihapitiya states:

Everything broke down, and things that we thought were hedges went away.

Do you think Palihapitiya is correct in saying Warren Buffett is wrong about Bitcoin? Let us know in the comments below.

Images courtesy of Wikimedia Commons/@Cmichel67, Flickr/@JD Lasica, and Bitcoinist archives.

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While Bitcoin and the cryptocurrency market goes through what some might consider a healthy pullback, two figures in the world of traditional finance have taken yet another shot at Bitcoin and cryptocurrencies.

‘Designed to be Not Transparent’

Bank of America’s chief technical officer, Cathy Bessant, believes cryptocurrencies are preventing authorities from catching criminals and bad actors. She explained on CNBC‘s “Squawk Box” on Thursday:

As a payment system, I think it’s troubling, because the foundation of the banking system is on the transparency between the sender and the receiver, and cryptocurrency is designed to be nothing of the sort. In fact [it’s] designed to be not transparent.

Bessant has apparently never visited one of the many websites tracking Bitcoin’s very public ledger. If she had, she might realize that it’s extremely transparent – significantly more so than private banking ledgers. Nevertheless, Bessant claims police forces are incapable of tracking criminal transactions on the public ledger, stating:

The way we sort of quote-unquote catch bad guys is by being transparent in the financial moment of money. Cryptos is the antithesis of that.

Bank of America is one of the many institutions which banned cryptocurrency purchases via credit card. She explained:

Just like we don’t allow stocks to be purchased on our credit cards, we’re not going to allow cryptos or other currencies to be purchased on our credit cards.

Bessant also took the time to praise traditional banking’s security, stating:

I do actually think we’re in a better position every day. Awareness is higher, the sophistication of our defense and detection efforts are growing every day. There are more players in the mix with a lot of expertise, and the threat environment is beginning to show patterns that make prediction and even automated prediction something we can do every day. So I do believe we’re in a better place.

‘It’s Never Going to Work’

Bank of America’s CTO isn’t the only one throwing FUD at Bitcoin and other cryptocurrencies.

Economist Nouriel Roubini, most widely known for correctly predicting the global financial crisis, claimed digital currencies create “chaos” in the world of traditional payments. He explained at the Fluidity Summit in Brooklyn on Thursday:

It’s totally inefficient. It’s never going to work. You are going to the world of the Flintstones to buy any good you have to exchange, you go back to the Stone Age of bartering.

As noted by CNBC, Roubini loves digital payment platforms like Alipay, Venmo, PayPal, and Square. Interestingly, he doesn’t think blockchain technology will have any significant impact on the future of finance He stated:

I’m affirmative on that significant disruption, but most of this has nothing to do with blockchain, nothing to do with cryptocurrency.

Do you agree that blockchain technology won’t have a future in the financial sector? Do you think cryptocurrencies are preventing authorities from catching criminals? Or do you think both of these experts are mistaken? Let us know in the comments below!

Images courtesy of Reuters, Wikipedia Commons.

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One online bank in Germany is now using bitcoins for loan transfers. 

Subverting SWIFT

Founded by German Radoslav Albrecht, Bitbond is an online bank which now affords its customers the ability to transfer loans internationally — specifically, by using Bitcoin.

The platform uses Bitcoin and other cryptocurrencies to subvert SWIFT — the self-proclaimed world’s leading provider of secure financial messaging services — by lending money around the world instantly and at virtually no cost. Albrecht explained to Reuters TV:

Traditional money transfers are relatively costly due to currency exchange fees, and can take up to a few days. With Bitbond, payments work independently of where customers are. Via internet it is very, very quick and the fees are low.

What makes this service even more remarkable is the fact that Bitbond became an officially licensed bank in 2016.

How it Works

Bitbond works by letting clients hold their loans in Bitcoin or other cryptocurrencies for extremely short periods of time before they are exchanged back into the receiving countries’ native fiat currency. This method keeps exchange rates relatively fixed and prevents the cryptocurrency market’s infamous volatility from undermining the process.

As noted by Reuters, this isn’t the first time Bitcoin has been used as loan collateral. However, Bitbond is reportedly the first to offer the transfer of credit in currency internationally. As such, the company has become increasingly popular since it originally launched in 2013 — currently managing 100 clients’ loans for a rough total of $1 million each month.

The majority of said clients, Albrecht told Reuters, are small business owners or freelance workers, while the loans are less than $50,000 each.

Germany Loves Bitcoin

As a side note, Germans have been particularly keen on adopting Bitcoin. According to Bitnodes, Germany has the second most Bitcoin nodes in the world — behind only the U.S.

However, authorities in the European country haven’t historically been too keen on cryptocurrency. In February, interim German Finance Minister Peter Altmaier signed a letter to fellow G20 finance ministers, in which he claimed cryptocurrencies are not only risky for investors but also threaten long-term global financial stability.

Nevertheless, Germany did join 21 of its European neighbors in signing a Declaration on the Establishment of a European Blockchain Partnership on April 10.

What do you think about a certified online bank subverting SWIFT by sending loans internationally with Bitcoin and other cryptocurrencies? Let us know in the comments below!

Images courtesy of SWIFT, Shutterstock

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