German Federal Parliament: Bitcoin is Not Money, a Store of Value or Payment System

Cryptos like Bitcoin (BTC) are not really money, at least according to the German Federal Parliament. According to a recent announcement, digital assets such as cryptos cannot be considered money because they lack several features that would be expected of traditional forms of money.

The official statement was given by the government to the Free Democratic Party parliamentary group. According to government officials, proper money is expected to be used in three ways to be actually considered money: it has to be a store of value, a means for payment and a unit of account.

One of the main points in which cryptocurrencies fail is that they are simply not widely used when compared to fiat currency. They have very limited uses, you cannot simply go to the nearest shop and use Bitcoin to buy coffee, as there is a large possibility that the store will not accept it.

The authors of the statement also affirmed that the high volatility is another issue that gets in the way of using cryptocurrencies as a store of value. If the price goes up and down, the value is not being properly stored, in their opinion.

Stablecoins are appointed as an attempt to solve these issues, however, the government is not very keen on them. The report affirms that the government intends to ban stablecoins from Germany to ensure that they will not work as an alternative to the existing monetary system.

The document ended by talking about Facebook’s Libra project. According to it, at the moment it was still not possible to evaluate if the asset was compliant with the German law or not. This happens because the white paper for the project was not deemed appropriate as a source to really understand how the project will work.

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Author: Gabriel Machado

State Owned Oil Giant, PDVSA, Requests Venezuelan Central Bank To Test Holding BTC & ETH For Payments

Venezuela has a stash of crypto’s and it does not seem afraid to use them. The only problem is that the country does not seem completely sure about how to use them, also.

As reported by Bloomberg, the central bank of Venezuela recently started tests in order to determine how to use it’s cryptos to boost their national reserves. With inflation that goes beyond 1,000,000% a year, the country is desperate to have some monetary relief.

According to four people with “direct knowledge” of the situation, one of the state-run oil companies in the country, Petroleos de Venezuela SA, wants to pay its suppliers using BTC. The country’s international reserves are running pretty low now and it would be useful to have cryptos as an option.

The main reason why the government is considering this is because of the U. S. sanctions against the country, which isolated Venezuela from global markets and affected its economy. The current political and economic crisis doesn’t help, either.

Venezuela’s President Nicolas Maduro attempted to create the Petro, a national cryptocurrency, some time ago, but the project utterly failed. Because of this, it would make a lot of sense for Venezuela to start using Bitcoin. Several people outside of the government already do.

Cryptocurrencies were created partly as a way to avoid sanctions, so it is not surprising at all that they would be used on a nationwide basis to avoid sanctions from other governments. Other countries such as North Korea and Iran could follow a similar route, too, as it is harder to track Bitcoin transactions.

The U. S. government could, on the other hand, blacklist wallet addresses, which is already done in some cases. This could get in the way of Venezuela’s plans.

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Author: Gabriel Machado

640 Crypto Projects Out of 2,000 Haven’t Published a SIngle Line of Code in 2019: Report

  • Combined market cap of these cryptos is $415 million
  • Ethereum, EOS, Cardano, Lisk Leads the Github Activity
  • Exchanges prioritizing their own interest

“Crypto landscape is full of lies and empty promises,”

states the report analyzing cryptocurrencies’ Github activity, by CoinCodeCap, a code analysis, reporting, and API services for cryptocurrencies technology provider.

On analyzing the development activity of more than 2000 cryptocurrencies, the report found that more than 640 cryptocurrencies did not publish any code in 2019.

Tracing codebase activity is very important because these assets are manifested in their codebase. As such, regular codebase activity shows a project’s commitment and is further necessary to gain investor’s trust in the project.

$415 Million Market Cap not Really Worth Anything

While analyzing over 16,000 repositories, it found that these 640 crypto projects haven’t commit a single line of code in 2019, despite having millions of dollars in market capitalization and listed on multiple exchanges.

The combined market capitalization of these cryptocurrencies is more than $415 million.

Proton Token is one such crypto asset with over $80 million market cap that didn’t push any code last year. Another one is BQTX that has almost no code on their Github but has over $45 million in market cap.

On combining these with the Scam coins, the overall valuation crosses $1 billion.

Ethereum, EOS, Cardano, & Lisk Leads the Github Activity

As per its website, the top cryptos with Github activity (commit rank) are Insolar, Nuls, Augur, and Ethereum. Other coins in this list are Dai, Chainlink, Cardano, Chainlink, EOS, Golem, Lisk, Stellar, and IOTA among the top 20.

Ethereum, however, is the top one in terms of overall rank that covers a number of commits, forks, watchers, and stars followed by Lisk, Bitcoin, Insolar, Cardano, and EOS.

Exchanges Prioritizing their own Interest

Yori (62) and CoinExchange meanwhile, are top in listing these inactive assets.

“Normal investors get exposed to these assets on different Exchanges but these Exchanges prioritizing their own interest and are not performing due diligence.”

Because most of these exchanges aren’t able to generate enough revenue from trading, they charge high fees for listing coins, the report said.

It further points out how a self-regulatory market here will perform its fiduciary duty and further not expose customers to these harmful assets.

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Author: AnTy

Patrick Byrne Sold all of his Overstock Shares to Invest in Cryptocurrencies and Gold

  • Gold, silver, & cryptos are “hedge” against the failing economy
  • Pressure from Govt. led to “digital dividend” delay

Patrick Byrne, 56, the former CEO of sold his entire holdings in the company he founded and said he would invest it all in gold and cryptocurrency.

After his dramatic exit form the company, Byrne disclosed in an SEC filing on Wednesday that he sold all his 4.8 million shares in Overstock for a little under $100 million.

The sale started Monday after the stocks surged 65%, the highest point in almost a year. That day, the stock plunged 20% and has been down 35% so far this week.

Gold, Silver, & Cryptos are “hedge” Against the Failing Economy

In a blog post titled, “A Message to My Former Colleagues at Overstock,” Byrne said now he plans to put these proceeds in securities that are

“counter-cyclical to the economy.”

These assets include gold, silver and two unnamed cryptocurrencies that he referred to as a “hedge” against the failing economy that has taken Overstock with it.

However, he promised investors that if that did happen, he would recapitalize the company with his gains from his investments.

Another reason for the same was to put his money

“outside acts of retaliation from the Deep State.”

Pressure from Govt. Led to “Digital Dividend” Delay

The filing came the same day the company delayed its plan to issue a “digital dividend” set for next week that could be accessed only through Overstock’s experimental blockchain-based exchange.

This further required a holder to retain the asset for six months which many thoughts was an attempt to squeeze short-sellers, with whom Byrne has battled for two decades.

Overstock changed the plans on Wednesday announcing that dividend would be tradable freely upon distribution. It further moved back the distribution of dividend and promised that it will announce a new date in the next three to six weeks.

The company suggested the change was due to pressure from the government, a reaction to the

“feedback we received from industry participants, investors and regulators.”

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Author: AnTy

US Treasury Warns US Fintech Companies To Be Regulatory Compliant

Sigal Mandelker, the US Treasury undersecretary recently said that cryptos can become the next frontier on the war on terror.

“While most terrorist groups still primarily rely on the traditional financial system and cash to transfer funds, without the appropriate strong safeguards cryptocurrencies could become the next frontier,” Mandelker said.

The undersecretary went on to say that not taking necessary action may result in compromises to national security. As a result, the Treasury Department has vowed to work with governments across the globe to ensure non-compliant networks and fintechs do not survive.

Mandelker added:

“While this may not seem like a lot of money, a FinCEN analysis found remittances linked to terrorism averaged less than $600 per transaction. As we know, the cost of carrying out a terrorist attack can be very low. But the human costs to victims are always extraordinarily high.”

Additionally, the US Treasury Department has just announced new sanctions against online criminal groups based in North Korea. The groups have reportedly conducted cryptocurrency ransomware attacks and other cybercrimes aimed at subverting international sanctions against the state.

It named the groups as Lazarus Group, Bluenoroff, and Andariel and said they were controlled by the Reconnaissance General Bureau (RGB), North Korea’s primary intelligence bureau, which is already subject to US and United Nations sanctions. It said WannaCry affected at least 150 countries and shut down about 300,000 computers, including many at the UK’s National Health Service (NHS).

There are at least 20 bills related to blockchain in various stages of being considered by the United States Congress, but only one is of imminent, potentially urgent concern to cryptocurrency users.

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Author: Sritanshu Sinha

Facebook On Boards New Lobbyist Firms To Push Its Libra Crypto Motions In Senate

Facebook increases lobbyist power with two new firms pushing the crypto’s agenda in Senate pushing the total number to four.

The U.S Congress tough stance on Facebook’s Libra project will soon be changing as the social media giant hires two new lobbyists for the project. According to lobbying reports filed on Sept 5., the Calibra project welcomed William Hollier, president of Hollier Associates LLC and Michael Williams of the Williams Group to help win over the senators against the project.

According to a Bloomberg report, Holler started lobbying for Libra in August to push for its development and registration within the United States. He is a known lobbyist for Microsoft Corp and Independent Community Bankers of America and worked with Idaho representative Senator Mike Crapo. Mike currently heads the Senate banking committee, who called the CEO of Libra David Marcus for questioning earlier in the year.

Williams started lobbying for the cryptocurrency in July according to the disclosure. The former Credit Suisse Securities managing director joins the consortium to help regulators understand the blockchain. Williams also lobbies for Delta Airlines Inc. and American Financial Services Association.

A Wave of Doubt

Despite reports of three members in the 27-member Libra Association being on the verge of leaving due to the regulatory uncertainties, Facebook looks to have everything under control at the moment. The Libra token is expected to launch in early 2020 amidst a wave of doubts from various regulators across the globe.

On Sept 6. Jose Manuel Campa, chair of the European Banking Authority (EBA), called out Libra stating the digital asset is a big law gap. He called for more regulation on the token before its launch next year.

A fortnight ago, Facebook announced the onboarding of Washington lobbyist group, FS Vector, and former Coinbase employee, John Collins to push its blockchain policies.

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Author: Lujan Odera

United Nations (UN) Chief: Cybercrime Is Harder to Fight Because of Crypto

A high executive of an international organization has recently attacked cryptos. According to Neil Walsh, an official of the United Nations (UN), cryptos can make it harder to fight cybercrime. He affirms that their anonymous nature can often get in the way of tracking criminals and that this can become an issue.

Walsh, who is the chief of the UN Office on Drugs and Crime’s cyber unit, has been recently interviewed by an Australian media outlet. He believes that the extra layer of anonymity that can be provided by privacy coins or even Bitcoin (which can be used together with coin mixers) definitely makes the work harder and slower to complete.

He affirmed that there are more child pornography networks around the world than people believe and that most of them use cryptocurrencies due to the illegal nature of the content that is sold in them. Nobody wants to be tracked and cryptos are often the tool to make it happen in dark web transactions.

In related news, the UN has recently affirmed that hackers from North Korea hacked at least $2 billion USD from exchanges. There are suspicions that the money was used to fund the country’s nuclear program.

Most of the attacks were targeted at South Korea, which is the closest country. At the moment, the UN is said to be investigating 35 cyberattacks in South Korea made from their northern neighbors.

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Author: Bitcoin Exchange Guide News Team

CoinMarketCap (CMC) to Announce A New Liquidity Ranking System On November 12

Renowned data source for all the trading cryptos, CoinMarketCap, has announced that it will release a new liquidity ranking system on November 12, 2019. In a virtual roundtable that was held on August 27, CoinMarketCap revealed the news. The roundtable dubbed DATA; Data Accountability & Transparency Alliance, brought together various exchanges, as well as projects found in the crypto industry, was started in May 2019.

DATA prides itself of major players in the crypto space such as Binance, Bittrex, Huobi, OKEx, among others.

At the DATA roundtable, CoinMarketCap came up with three topics of presentation to be deliberated by the alliance: utilization of liquidity metrics, own reported data as well as an integrated crypto asset ID database. CMC also stated that a dashboard that will enable own reporting is set to be introduced on Oct. 14, 2019.

According to CMC the plan to utilize liquidity metrics in the ranking of the exchanges came about due to numerous problems associated with wash trading that is widespread as per the volume rankings being used in the firm’s website currently.

According to CMC the use of liquidity may pose some challenges; as a non-numeric, it regularly changes and becomes hard to note as well as report.

Consequently, CMC said that retention of volume metric will require redesigning and this cannot be done easily hence the need for improved rankings and creation of a smooth playing ground.

In regard to own-reporting, CMC suggested that the measure was meant to enhance openness in the market. The company proposed offering badges as gifts to platforms that will divulge various data points. The firm gave examples of badges like KYC, the physical location of the platform’s offices as well as order books that can be seen by other crypto exchanges.

Cointelegraph reports that earlier this year CMC revealed that it would start striking off exchanges from its website for failing to offer compulsory data beginning June 2019.

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Author: Joseph Kibe

Coinbase Is Seeing Institutional Deposits of $200 To $400 Million Weekly, CEO Affirms

2019 is certainly a huge year for cryptos. Coinbase, the largest exchange of the U. S., is reaping the profits from that. The CEO of the company, Brian Armstrong, has recently tweeted about how institutional investors are entering the crypto market right now.

According to him, there is an obvious trend, which is that institutions are becoming a part of the crypto world. He affirmed that around a year ago, people were always asking whether we would see institutions really get into Bitcoin and crypto investing. According to him, Coinbase has the answer now.

The company is currently seeing institutional investors depositing from $200 to $400 million USD in assets on the company each week.

Coinbase Is The Largest Crypto Custodian of the World Now

If the crypto markets are changing, you can be sure that Coinbase is prepared for that change. The company has just acquired Xapo, a crypto provider that was one of the largest custodians in the market.

With the acquisition, Coinbase now sits at the top, being the largest crypto custodian in the whole world. At the moment, the company would have at least $7 billion USD worth of cryptos under its management.

Armstrong: The Future Is Bright

Despite the bull run that was started some months becoming calmer in the last few weeks, the future of the crypto market is pretty bright, according to Armstrong. Several institutional investors are finally ready to enter this world and companies such as Bakkt, which will offer BTC futures, will be important in this new phase.

He also hinted that Coinbase is exploring new products and looking at new ways to monetize assets and to improve its business model.

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Author: Gabriel Machado

Patientory (PTOY), The Crypto Worth Less Than A Cent, Can Be Very Profitable In The Future

Many cryptos are all about a promise. Patientory is one of them. The crypto, which was created for a health app, is worth only a cent per PTOY token, but some of its executives believe that the project may be worth millions in the day.

Chrissa McFarlane, the CEO of the company, was recently interviewed by the crypto media outlet Coindesk. According to her, at the moment people are using the token only for small experiments, but she defended that the project may be worth millions in the future.

One of the main goals is to have data from healthcare providers in order to create a big network that will provide all range of health services for users.

At the moment, the project lacks clients, but it has a growing community with several contributors. The project is basically gearing up for a profitable future, its CEO affirms. According to her, the standards for interoperability of the company are getting better and, with time and testing, the network will finally be prepared to empower patients and to finally be profitable.

So far, Patientory was only able to get $12.4 million USD. Most of the money came from the Initial Coin Offering, which was held two years ago, but some came from venture capital later on. Most of the money has been used in the development of the platform and in related events aimed to bring awareness to the project.

Unfortunately, the future of this project is far from certain. While the management is sure that the product is innovative and will bring millions in profit, the truth is that most startups end up dying after a few years.

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Author: Daniel W