Showing posts with label bitcoin news. Show all posts
Showing posts with label bitcoin news. Show all posts

Trump Says He's the "Crypto President" as Biden Administration Displays Alarming CONFUSION Over Basic Technical Aspects...

Trump on Bitcoin and Crypto

Former president Donald Trump continues to repeat his stance as the crypto-friendly candidate, and it's resulting in votes and donations from the tech world.

Trump has seen the light. 5 years ago the former President was saying crypto was “a disaster waiting to happen” but since then has made a number of pro-crypto statements. 

Trevor Traina, ambassador to Austria during the Trump Administration and current tech executive, tells Reuters that Trump said “he would be the crypto president” at a recent San Francisco fundraiser.

Unexpected Support in 'Liberal' Silicon Valley

As someone in Silicon Valley, I never expected to hear that Trump was in San Francisco, raising millions from the tech elite that were clearly against him in the previous two elections.

But just three days ago, Silicon Valley venture capitalists David Sacks and Chamath Palihapitiya hosted the former president at Sacks' mansion in the wealthy Pacific Heights neighborhood, where Trump gave a speech, followed by a dinner and reception. The tickets started at $50,000, and the event sold out, ending in $12 million being raised for the campaign.

Trump Arriving in San Francisco earlier this week.

Crypto is among a list of policies that have 'turned off' those now supporting Trump in a city that voted 85% for Biden.

All Happening While Biden's Administration Continues to Advocate Policies that Aren't Just Bad for Crypto - They Expose a Complete Lack of Understanding of How Crypto Works

For example, the first crypto-related proposals exposed that the Biden administration viewed wallet providers the same as banks, saying they should be required to verify the identities of all users. In reality, wallets are simply software that runs entirely on the user's end, different from a bank in every possible way.

The creator of a legitimate crypto wallet is both blind and powerless when it comes to who uses it and what those users are doing. They cannot help the government seize someone's crypto, even with a warrant, because they literally cannot access it. They also cannot prevent anyone from using the wallet they created - if the file to install it is accessible, anyone can use it.

In other words, it is both completely pointless to require wallet creators to demand information from users they have no authority over, and there is no reason for users to comply when ignoring these new requirements has the same end result - them being free to continue using whatever wallet they want.

No one can be surprised that the industry rightfully fears the end result of people writing new laws intended to regulate something they clearly do not understand.

As Trump Warmed Up To Crypto, His Campaign Made Sure to Show It

In 2022, the announcement that he would be running again came with the launch of Trump NFTs on the Ethereum-based platform OpenSea.

In 2023, his financial disclosure filed with the Office of Government Ethics included a crypto wallet with up to $500,000 worth of assets in it - this wallet's value recently broke $5 million in value. Since the wallet address became known, both random users and projects have gifted or airdropped coins to it.

Then last month, his campaign announced they will accept crypto donations for the 2024 election.

There are Legitimate Reasons Any US Leader Should Support Crypto

One major contributing factor to the US's global power is the strength of the US dollar, and one major reason the dollar is so strong is its status as the global 'reserve currency' as well as the official standard currency for purchasing oil from the world's largest supplier - OPEC in the Middle East.

When the global economy is in turmoil, as seen recently during the COVID pandemic, many nations converted their treasury to US dollars. The Federal Reserve was overwhelmed initially, having to scramble to fulfill other countries’ central banks' demands for what is seen as the world's most stable currency.

That word 'stable' is one crypto investors are familiar with - as the US dollar is finding yet another market where it has become the standard for investors looking for a stable currency to both cash out and re-enter trades from.

In fact, when it comes to cryptocurrencies tied to standard fiat money, the top 16 stablecoins are all based on the US dollar, with 'STASIS EURO' at #17 and less than $1 million in daily transactions. The top stablecoin USDT has done $39 billion in the same 24-hour time period.

While the crypto market trades digital versions, the two that account for the overwhelming majority of stablecoin transactions, USDT and USDC, are both publicly audited companies that verify they hold the money to back up the coin. This means as we've watched stablecoin usage skyrocket over the last few years, offline this created new real-world demand for US dollars.

You would think this would result in crypto having no effect on the election, as both sides would support its continued growth. Regardless of what your opinions may be on other issues - it's a fact that only one candidate seems to be getting this one right.

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Author: Ross Davis
Silicon Valley Newsroom
GCP Breaking Crypto News

UK Courts Have Had ENOUGH Of Craig Wright - Judge Closes Case, Labels Wright's Claims 'False' and Evidence 'Fabricated'...

Judge ends Craight Wright's case

It's over for the infamous Craig Wright, one of Bitcoin's early developers who actually did work with Bitcoin inventor Satoshi Nakamoto, then in recent years begun to claim he was Satoshi himself.

 A ruling by a High Court judge in London on Monday (May 20) determined that the Australian computer scientist Craig Wright provided false testimony and fabricated documents to substantiate his unsubstantiated assertion of being the inventor of bitcoin.

Judge James Mellor, in a decision rendered in March and with reasons outlined on Monday as reported by Reuters, concluded that the evidence did not support Wright's claim to be the pseudonymous "Satoshi Nakamoto" behind bitcoin's creation. The judge found that Wright had been deceitful and had forged documentation to bolster his inventor claim, and that Wright's legal actions against bitcoin developers as well as his expressed views on bitcoin contradicted his purported status.

Developers Feel Relief Following Ruling...

Wright's legal attempt, had it succeeded, would have given him the right to sue anyone who built anything on Bitcoin's network, as he would become the copyright holder to Bitcoin's code.

In a blog post on Monday following the ruling, a Crypto Open Patent Alliance (COPA) spokesperson said that the judgment "forensically demolishes Wright's fraudulent claims."

"This decision is a watershed moment for the open-source community and even more importantly, a definitive win for the truth," a COPA spokesperson said. "Developers can now continue their important work maintaining, iterating on and improving the bitcoin network without risking their personal livelihoods or fearing costly and time-consuming litigation from Craig Wright."

Wright Vows To Appeal...

On X (formerly Twitter), Wright stated on Monday: "I fully intend to appeal the decision of the court on the matter of the identity issue. I would like to acknowledge and thank all my supporters for their unwavering encouragement and support."

Wright first came forward with his claim to be bitcoin's creator in May 2016, making the assertion to three publications — the BBC, The Economist, and GQ — and sending digitally signed messages using cryptographic keys created during bitcoin's early development days.

"These are the blocks used to send 10 bitcoins to Hal Finney in January [2009] as the first bitcoin transaction," Wright stated at the time during his demonstration.

However, by December 2019, when a Florida judge ruled that Wright's late partner was entitled to half of the bitcoins Wright mined through 2013 and half of the related intellectual property, some crypto experts were skeptical of Wright's claims, viewing them as fraudulent.


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Author: Mark Pippen
London Newsroom
GlobalCryptoPress | Breaking Crypto News

Coinbase Back Online - Unplanned Outage Lasted 4+ Hours...

Coinbase down

 Late Sunday night in the US, Coinbase users were greeted with the following message:

Coinbase is temporarily unavailable. Our servers are busy. We’re looking into it and expect our usual service to return soon. Your funds are safe.

Many traders and investors, relying on the platform for daily transactions, find themselves locked out without any ability to manage their portfolios. For those who were planning to buy or sell based on market conditions at the time, the outage could mean missed opportunities or potential losses.

*Update* Coinbase is back online...

First reports of the outage began at 9:20pm (US West Coast time, where Coinbase is located).

The first update from Coinbase so far was at 11:20pm, stating:

>> We're seeing some services recover. We know customers may still be encountering connectivity problems and we appreciate your patience while we work to correct this. We're still monitoring this closely.

However, at this point no one from our team was able to successfully access the exchange via desktop browsers or their mobile app. 

Then aro>und 1:15am, Coinbase stated they identified the issue, just 1 minute later said:

>> A fix has been implemented and we are monitoring the results.

The fix appears successful as Coinbase has remained online for over 2 hours. 

We've contacted Coinbase for more information on the cause, but have not yet received a response. 

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Author: Justin Derbek
New York News Desk
Breaking Crypto News



Bitcoin ETFs May Soon Go Live in CHINA via Hong Kong - Bitcoin's Next Potential BIG BOOM that Most Don't Know is Coming...

 

On numerous occasions, China has banned various activities with bitcoin (BTC) and cryptocurrencies, including trading, transactions, and mining. For this reason, in mainland China, the launch of exchange-traded funds (ETFs) based on this type of financial asset is not permitted.

However, Hong Kong, while part of China, is considered a 'special administrative region' able to govern itself separately from mainland China in certain cases, one of which is the ability to regulate Hong Kong-based investment firms. When it comes to crypto, Hong Kong allows companies and residents to invest, putting them at odds with mainland China, where crypto remains banned.

Bitcoin ETF's via Hong Kong....

Financial news outlets in China are now reporting that financial giants such as Harvest Fund and Southern Fund have submitted applications to launch bitcoin ETFs through their Hong Kong subsidiaries. Harvest Fund manages more than $230 billion in total assets, while Southern Fund manages over $280 billion.

Additionally, smaller companies like 'Jiashi Fund' are attempting to use their Hong Kong subsidiary, 'Jiashi International,' to offer clients access to a Bitcoin ETF.

Regardless of size, all companies that have applied are now awaiting the decision of the Hong Kong Securities and Futures Commission, the regulatory authority that will be deciding on these applications.

Approval May Come Soon - Catching Many Off-Guard...

According to reports from China, these firms are expecting to receive approval to launch their Bitcoin ETF products and believe they could be actively promoting them as early as this quarter.

Bitcoin ETF approval in Hong Kong would be another major milestone for Bitcoin, making it easily accessible in one of the world's largest financial markets.

China has been off the radar for most crypto investors, there's been little reason to pay much attention as it's remained firm on their existing ban. While trading continued in Hong Kong, the volume coming from this small beacon of freedom isn't determining any winners and losers.   But ETF's bring the potential for large investments from Chinese corporations, also potentially attracting other Asian nations already active in the Chinese markets. 

An Influence on Mainland China...

If Bitcoin ETFs in Hong Kong turn out to be a success, and especially if they manage to attract international capital, companies in mainland China will likely respond by putting pressure on the government to reconsider their stance toward bitcoin.

Chinese President Xi Jinping will find it difficult to defend his position if the US, European nations, and now Hong Kong companies stake their claim in the multi-billion dollar Bitcoin ETF market, while those in mainland China are forced to remain spectators.

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Author: Adam Lee 
Asia News Desk Breaking Crypto News


Sam Bankman-Fried in 'EXTREME DANGER' of Violence in Prison...

Sam Bankman Fried Parents

Sam Bankman-Fried's sentence of 25 years came down this week, following his lawyers and family making all possible attempts at getting him a shorter sentence.

Here we will review those attempts, knowing that ultimately in the end, they failed. 

Sam's Parents Fear His Social Awkwardness Puts him in 'Extreme Danger' in a Prison Environment...

Sam's family made a desperate plea to the judge, begging for leniency in his sentencing for the FTX cryptocurrency fraud case. His parents, Barbara Fried and Joseph Bankman, warned that their son's social awkwardness and inability to read social cues could put him in "extreme danger" behind bars, fearing for his life in a typical prison environment.

In a heartfelt letter, Barbara Fried described her son's touching but naive belief in the power of facts and reason, arguing that his outward presentation and misinterpretation of social cues could lead to potentially disastrous situations with fellow inmates. Joseph Bankman echoed these concerns, cautioning that his son's "odd" social responses could be misconstrued as disrespect or evasion, putting him at significant physical risk.

Also included, a letter from Sam's current jail bunkmate, a former NYPD officer arrested after being caught soliciting underage teens for explicit images on twitter, calling Sam the 'least intimidating person here' which has led to other inmates targeting him for harassment. 

Lawyers Argue for a DRASTICALLY Shorter Sentence...

With the value of crypto increasing, it appears the FTX's holdings are worth enough to fully cover everything owed to customers.

Focused on this new factor, Bankman-Fried's legal team also made an effort to secure a lighter sentence, arguing for a prison term of no longer than 78 months, or 6 ½ years. They say the trial largely revolved around the story of a rogue, careless CEO whos actions caused his customers to lose billions.

However, this argument inspired the team handling the FTX bankruptcy to write a letter to the judge, where they say removing Sam is the only thing that stopped the bleeding, and that he deserves no credit for the company's ability to pay users back today, because at the time he was spending customers money without their knowledge, he was gambling, and easily could have lost it all.  

In the End, All Attempts for a Lighter Sentence FAILED...

All hopes for leniency were shattered when U.S. District Judge Lewis Kaplan handed down a 25-year sentence for Bankman-Fried's role in the fraud that led to the collapse of FTX. Judge Kaplan firmly rejected Bankman-Fried's statements from the trial when he took the stand in his own defense,  accusing him of lying during his testimony.

"He knew it was wrong," Kaplan said, "He knew it was criminal. He regrets that he made a very bad bet about the likelihood of getting caught. But he is not going to admit a thing, as is his right."

Bankman-Fried was taken away by US Marshalls to begin his 25-year sentence - now living out the worst fears expressed by his concerned parents.

In conclusion...

It's expected that Sam's legal team will appeal, his parents stating they will "continue to fight" for their son, but the odds of that succeeding would be extremely low without some major new information coming to light.  

While Sam and his family may find it hard to find anything positive in how things ended, it's worth noting that his crimes gave the judge the option of sentencing him for up to 110 years in prison. While Sam's family and lawyers argued for a much shorter 6 years, getting 25 seems like a huge defeat - but compare to 110 years it seems the judge was still fairly lenient.

Sam will probably be free again, at 57 years old. It's widely believed that Sam has a secret stash of Bitcoin tucked away in a wallet no one knows belongs to him - what do you think the price of BTC will be in 2049?

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- Miles Monroe
Washington DC Newsroom
GlobalCryptoPress.com


Tether Reaches a New High of 100 BILLION USDT Coins in Circulation...

Tether USDT Coins Cryptocurrecy

The USDT (Tether) stablecoin, issued by the Tether company, has exceeded $100 billion in market capitalization for the first time ever.

While used on many blockchains, the Ethereum and Tron blockchains account for 99% of the total supply. 

This achievement not only reinforces USDT's position as the leading stablecoim , but also widens its lead over its main competitor, Circle's USDC , which currently boasts a market capitalization of just $28 billion. 

Tether Says Every USDT Token is Backed 1:1 with the US Dollar - This Was Once a Controversial Claim... 

"A few years ago there were major issues with Tether withholding information and putting off 3rd party audits, all while consistently minting millions of new tokens as they grew. Concerns that Tether had secrets that could crash the market were voiced by dozens of established industry members...."  says Global Crypto Press Association editor Ross Davis "Now this part is just my opinion, but I think these concerns were true at one point, but Tether managed to avoid the issue long enough that with their continued growth, they had the time and money to fix the problem."

Tether now undergoes 3rd party auditing, and publicly shares their treasury holdings on their website. Currently, Tether has $5 Billion more in assets than they have in liabilities.

A Bullish Signal...

More USDT being issued it considered a bullish indicator, showing increased intention to invest in the crypto market - there's really no reason to have USDT unless you plan to turn that into some other coin.

- Miles Monroe
Washington DC Newsroom / GlobalCryptoPress.com

Over 1000 Mountain Gorillas in the Congo Are Now Safe, Thanks To... CRYPTO MINERS?!

Bitcoin saves gorillas

Virunga National Park, deep within the Congo, is home to 1,000 mountain gorillas whos population has been on a steady decline for decades, leading to the species officially labeled 'endangered' in 2018.

Now they've launched a two-part plan that implements wildlife conservation, and creates a way for the park to fund these efforts long term.  The economic solution comes in an unexpected form - cryptocurrency mining.

The park was recognized by the World Economic Forum (WEF) in a recently published video, praising those involved with finding creative solutions to the challenge of preserving wildlife within it. 

Clean Energy Mining...

Rivers within the Virunga National Park are used run hydroelectric generators, operated by technicians from nearby villages, providing clean renewable energy to Bitcoin mining operations inside the park. 

Another benefit of having this energy source is that they're able to attract miners currently running miners on electricity from coal-burning power plants. Not only highly polluting, coal has become a black market in the region, so the park aims to "reduce the incentive for illegal charcoal trafficking, an activity that has fueled violence led by militias in the region," says Foro from Economic World.

The Park's Hydroelectric Power Supplies the Miners with Clean Energy.

Surplus energy is channeled into cocoa production and nearby communities, while revenue generated from Bitcoin mining maintain the park's infrastructure, and pay their staff. 

Affordable energy is typically the largest expense of the cryptocurrency mining operation, so this is a rare situation where truly everyone wins! In the future we hope to see this new relationship between crypto and nature conservation mirrored in other places around the world!

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Author: Mark Pippen
London Newsroom
GlobalCryptoPress | Breaking Crypto News

Ethereum ETFs Next to Be Approved?

ETH ETF

As BTC ETF anticipation gripped the market last year, traders have been looking at ether as the next likely candidate to get spot ETF approval in the U.S.

Will the SEC Approve an ETH ETF? Let's look at the arguments both ways...

Why Some Believe the SEC will DENY The Applications...

JPMorgan's analysts are skeptical. “While we are sympathetic... we are skeptical that the SEC will classify ether as a commodity as soon as May” lead analyst Nikolaos Panigirtzoglou said in a note to clients on Jan. 18, adding that the chances of approval of a spot ether ETF by May this year is “not higher than 50%.”

The main reason - Ethereum’s transition from the proof-of-work to proof-of-stake consensus mechanism in 2022 and the negative impact this has had on decentralization.  

Ether now looks similar to altcoins the SEC has classified as securities.

Why Some Think an ETH ETF Will Soon be APPROVED...

The SEC recently sued virtually every major US crypto exchange for selling unlicensed securities, providing all with a list of which coins they believe violate regulations - Ethereum was missing from all of them. 

Another potentially positive sign is the approval of ether futures-based ETFs in September last year, which implies the SEC has officially deemed Ethereum a commodity.

Note that the ETH Futures ETF's that were approved last year are generally used for speculative or hedging purposes - with a 'futures' ETF no party involved needs to actually purchase any crypto. Investors instead buy contracts where they attempt to guess what the price will be on preset dates the contract expires. A true ETF, like what was just approved for bitcoin, requires the company selling shares of the ETF it to truly own the coins the ETF represents, and the only price that matters is the actual price it is trading at.

What You Can Do Now...

Both sides have some very valid points/concerns, so what does that mean? In my opinion, the main takeaway is that there are legitimate reasons to speculate ETH ETF's may be approved.

Sure, same goes for it being denied, however, current ETH holders did not invest because they believed an ETF was eventually coming, so the potential of one being denied won't cause current investors to sell. However, the potential an ETF being approved brings in new buyers and causes existing investors to buy more.

This scenario where existing investors see no reason to sell if the ETF news is bad, while the potential for good news becomes a reason for people to buy, can only result in gains as anticipation builds. Of course, a non-ETF related story that overshadows everything could happen as well - but unless it does, there may be a great short-term opportunity regardless of the final outcome.

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Author: Justin Derbek
New York News Desk
Global Crypto Press Association / Breaking Crypto News

Someone Just Sent Over $1 Million Worth of BTC... to Satoshi Nakamoto - An Expensive 'Tribute' Donation? Or the First Step in EXPOSING Bitcoin's Creator?

Satoshi bitcoin

On January 5th, just two days after Bitcoin's 15th anniversary, a mysterious transaction has the cryptocurrency community scratching their heads. Someone sent 27 Bitcoin (approximately $1.2 million) to the network's genesis address, the very first wallet ever created that mined the first block of Bitcoin's blockchain. This legendary wallet, once controlled by the elusive Satoshi Nakamoto, has become a digital monument to the birth of Bitcoin.

The sender's history reveals only a single transaction: the withdrawal of 27 Bitcoin from the Binance exchange followed by their immediate transfer to Satoshi's dormant wallet. This gesture has sparked speculation and intrigue.

Some interpret it as a symbolic "tribute" to Bitcoin's origins, a fitting commemoration on the anniversary. The genesis wallet already holds 50 original mining rewards, hundreds of small transactions, and now, these 27 new Bitcoins, bringing its total value to nearly 100 BTC worth over $4.6 million.

Overall, there are dozens of wallet addresses created by Satoshi, and they hold over 1,100,000 Bitcoins worth almost $50 billion...

While 27 Bitcoin might be mere pocket change for the mythical Satoshi, for most others, it's a significant investment. 

"Either Satoshi woke up, bought 27 bitcoin from Binance, and deposited into their wallet, or someone just burned a million dollars," Coinbase director Conor Grogan said in an X post.

...or is there more behind it?

Flushing Out Satoshi?

One intriguing theory suggests this could be designed to force Satoshi out of hiding, by testing a new US law requiring all crypto transactions exceeding $10,000 to be reported to the IRS.

If Satoshi is a US citizen, even he would need to report the transfer.

Personally, I'm among a fairly large segment of the crypto world that believes Satoshi is long gone, and most likely passed away shortly after Bitcoin's launch.  

As with most Satoshi related stories, I'm not expecting to learn more than what we know now.

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Author: Mark Pippen
London Newsroom
GlobalCryptoPress | Breaking Crypto News

Crypto Set To DISRUPT the 2024 Election: US Crypto Ownership Now 52 MILLION People Strong, As Industry Prepares $70+ MILLION To Boost Pro-Crypto Candidates...

The crypto industry in the United States is making sure their voice is heard before the 2024 elections.  Their primary method of accomplishing this - a Political Action Committee (Super PAC), which is an organization able to raise and spend an unlimited amount of money on political activism - such as funding ads for, or against specific candidates. 

Going by the name 'Fairshake PAC' they have only one goal - a reasonable and clear regulatory landscape for crypto. This means companies no longer having to guess if SEC believes a 50 year old law written before the internet existed will be applied to crypto.

The Super-PAC Already has an Impressive $78 Million Raised, With Elections Nearly a Year Away, the Final Number is Expected to be Much Higher...

The PAC's financial backing comes from a coalition of "20 leading companies and voices in the industry" which includes notable names such as Coinbase, Circle, Kraken, the Winklevoss brothers, Ripple, Messari, Andreessen Horowitz, and others.

Fairshake's mission is clear: "To champion leaders who actively support progressive innovation, encompassing blockchain technology and the broader crypto industry." More specifically, the leaders elected in 2024 will be the ones to sign crypto regulations into law, so making sure these regulations will be fair, reasonable, and well-defined is important. 

With 52 Million Americans Now Owning Digital Assets, We Now Have The Power To Sway Elections... 

If just 14% of crypto owners see crypto as their main factor in deciding who to vote for, it would be enough to flip the who won the popular vote in the last 2 elections.

They're also willing to extend support to candidates from both political parties, emphasizing the inclusive nature of their agenda.

It's Easy To Instantly React Negatively to Anything Involving Money and Politics... 

It's important to consider the details - this is far from some secretive group of wealthy elite quietly pushing for something to bring them even more wealth. 

The community of crypto traders and investors is too large to not to have a seat at the table. While the major industry players are funding this Super PAC, crypto's popularly is how they're able to afford it.

From companies with hundreds of employees, to the independent crypto trader - we all want crypto regulations that treat us fairly, and are written by people who understand the fundamentals. 

Unfortunately an Alarming Number of Lawmakers Lack Even a Basic Understanding...

This isn't a matter of perception, members of the current US Congress are officially part of the oldest congress in entire US history - and nothing seems to highlight this generational gap more than tech related issues. Many lawmakers come from the 'senior citizen' demographic, they have held seats in Congress and the Senate for decades, and on multiple occasions where they were expected to announce their retirement, ended up announcing their run for re-election.

If there's any advice I'd give those who will be representing crypto in Washington DC, it would be that they take the time to figure out how to explain crypto to people who don't know how to send an e-mail. These politicians have proven themselves to be a 'high risk' when it comes to believing misinformation and alarmist headlines. In many cases you can find them discussing their struggles with technology in their own words - they called computers and smartphones 'confusing' and 'challenging', and joke about relying on their grandchildren for tech assistance.

We Need to Educate Lawmakers, Before They Make Any New Laws...

Candidates and their campaign managers will be aware of which industries have the largest budgets in the current election cycle, which is why a couple experts/VIPs from crypto industry can ask for, and successfully setup meetings in various lawmaker's offices. Here the pro-crypto case can be made, common anti-crypto misinformation can be corrected, and the politician can ask any questions they may have.

It is essential we the opportunity to present straightforward facts to lawmakers before they cast votes that can significantly impact the future of the crypto industry.

A perfect example of the kind of senseless challenges the industry faces is Brad Sherman, a Democrat from California.  He's been there 10 years, will be running for re-election in 2024, and holds the extreme opinion that crypto should be banned entirely. He is unable to mention 'Bitcoin' without immediately framing it as something only useful in 'illegal activities' -  his anti-crypto statements begun at the same time his largest campaign donor was a credit card processing company facing charges of illegally providing services to black market online gambling sites.

For Example, Here's How I would Lobby a Politician who Believes Crypto is Just used by the 'Bad Guys'...

Crypto's use in various illegal activities is a common topic for a politician to have distorted or completely inaccurate information on. This is something where properly presenting the facts shut down  immediately - between paper money, credit cards, checks, and cryptocurrency, crypto is actually the least-used in unlawful transactions.

Think crypto fraud has a larger total price tag after seeing multiple headlines over the past year about a hack where losses totaled in the millions?  Well, crypto fraud was the source of about $2.5 billion in losses last year according to the FBI.  Sure, that is a lot...unless you compare it to anything else.  The lowest-tech payment method, paper checks, was used in over $8 billion of fraud last year.  Credit Card fraud totaled around $3.5 billion - meaning crypto fraud was the lowest among all payment methods.

Crypto fraud peaked during and shortly after Bitcoin's first major bull run, people rushed to get into crypto, and scammers cashed in on people hoping to get a piece of the action.  After learning the hard way, nowadays, most people know no one can promise 'daily guaranteed profits' and companies that have no information on who owns and operates them may be hiding this info for a reason.

This leads to another powerful stat lawmakers need to be aware of - as crypto usage has grown, the annual rate of illegal/fraudulent transactions has gone down, for almost 3 years now. The biggest drop was this year, 2023 - and the firm that works with the FBI on crypto fraud cases is the source for this data.

Once this fact is established, any anti-crypto argument based on fighting crime or stopping fraud  sounds ridiculous... unless they're anti-credit card and anti-check as well. 

In Closing...

The crypto industry is ready to make its voice heard in the 2024 elections, and there is power in numbers. But the number more important than the amount of money the industry can spend in Washington DC, will be the 52 million crypto owners in US who will decide what standards, and how much effort  we demand from our leaders. If united, this is who ultimately will determine winners and losers.

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Author: Ross Davis
Silicon Valley Newsroom
GCP Breaking Crypto News

Terra/Luna Founder Do Kwon Successfully Appeals Extradition, Avoiding His Case with the US Justice Department... for now.

 

Terra / Luna Do Kwon

Do Kwon, founder of the failed Terra and Luna cryptocurrencies, will not be extradited to the United States for now. This is because a Montenegro appeals court ordered the suspension of the extradition ruling and a restart of the court case.

The Court of Appeals Gives Kwon a Small Win...

Following an appeal filed by Kwon's defense lawyer, the Podgorica High Court's decision to authorize Kwon's extradition has now been revoked. Kwon's case has been ordered returned to trial court to start a new case against him.

This overturns November's ruling that all legal requirements were met for Kwon's extradition. It also rules out forecasts he would be sent to the US to face fraud and other federal charges, which the Montenegro Justice Ministry had agreed to instead of extraditing him to South Korea.

Kwon's lawyer argued the extradition ruling violated criminal procedure provisions, meaning it was made without due process. The appeals court agreed the Podgorica High Court “acted in contravention of the law on international legal assistance in criminal matters.”

Kwon was Caught Fleeing South Korea, When Spotted in Montenegro in June 2022...

He was traveling on false documents and lying about his identity, while attempting to flee South Korea following the failure of his company's collapse.  

Before the collapse, Do Kwon had dozens of companies in the crypto industry to investing, attracting them with high-rate 'guaranteed' interest earnings. Between this, and their massive sell-off of Bitcoin held in reserves while attempting to rescue their stablecoin, the entire market turned red.

Do Kwon's failures are blamed for triggering the start of the 2022 bear market.

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Author: Mark Pippen
London Newsroom
GlobalCryptoPress | Breaking Crypto News


Bitcoin is BACK - Bulls See a Big 2024 For Crypto...


Cryptocurrency expert Meltem Demirors discusses the outlook for digital assets in 2024, highlighting the recent rally and factors such as macroeconomic conditions and the upcoming Bitcoin ETF approvals. She believes that the market has shaken off the worries and mishaps of 2022 and that there is new demand coming in from retail flows and institutional investors. Demirors is optimistic about the future of cryptocurrencies and sees this rally as a sign of a bullish market.

Crypto Market Almost FULLY RECOVERED From 2022 Collapse...

Crypto Market Recovery

*Update* Jan 8th 2024 - The market has officially recovered and surpassed levels preceding the 2022 crash.

The cryptocurrency market has almost returned to levels before the damaging collapses of Terra/Luna and FTX in 2022. Bitcoin recently surpassed $39,000 for the first time since May 2022, fueled in part by growing expectations that the U.S. Securities and Exchange Commission (SEC) could finally approve a spot bitcoin exchange-traded fund (ETF) in the next few weeks, or even days.

At the time of publishing, Bitcoin is trading around $39,700 - a gain of just $800 to $40,500 would officially represent a full recovery.

2022: A Year So Bad, it Took 2 Years To Recover From...

In 2022, two big hits cut Bitcoin's price in half over just few months.

The first came from the Terra/Luna debacle, triggered by the collapse of TerraUSD, an algorithmic stablecoin that was supposed to maintain a $1 peg but ultimately lost all value. Prior to its failure, the high interest rates offered by Terra through its Anchor protocol had attracted billions of dollars in investments, including from major crypto lending firms like Celsius Network. As the 'stablecoin' hit a liquidity crisis Terraform Labs began rapidly selling its bitcoin reserves in a desperate attempt to maintain the peg. This massive dumping of bitcoin put significant downward pressure on prices, contributing to bitcoin falling from around $30,000 down to below $20,000.

The second big hit came just months later when crypto exchange FTX filed for bankruptcy after questions arose over its financial health and potential commingling of customer funds. As one of the largest and seemingly most reputable exchanges, FTX's failure shook investor confidence and reignited worries of contagion across the crypto ecosystem. Bitcoin fell to under $16,000 amidst the fallout, its lowest level since late 2020.

Since then, the Market has Been Gradually Recovering...  

Some analysts believe bitcoin could soon surmount the key psychological barrier of $40,000 if momentum continues building ahead of a long-awaited bitcoin spot ETF approval.

Others caution bitcoin may retreat to around $35,000 if ETF approval doesn't happen soon, but still bounce past $40k when it eventually happens. 

But all are in agreement - the crypto winter is officially thawing.

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Author: Oliver Redding
Seattle Newsdesk  / Breaking Crypto News

The Biden Administration's DELUSIONAL Proposal to Tax Crypto Miners - A Plan Only America's Tech-Illiterate Elderly Leaders Could Come Up With...

 Biden crypto tax

There's a real danger living in a country where tech-illiterate elderly politicians create policy. 

Biden looks ridiculous talking about this elderly-brained fantasy of raising $3.5 billion by taxing crypto miners. 

"One new proposal in this year’s Budget, the Digital Asset Mining Energy (DAME) excise tax, is an example of the President’s commitment to addressing both long-standing national challenges as well as emerging risks – in this case, the economic and environmental costs of current practices for mining crypto assets (crypto mining, for short"). After a phase-in period, firms would face a tax equal to 30 percent of the cost of the electricity they use in crypto mining."

Occasionally there's moments with some of our older politicians where I'm reminded just how bad it is - of course I don't expect them to understand crypto, but the not grasping that this business can operate anywhere means he doesn't understand the basics of the internet. 

The press release goes on to gloat that it will  "raise $3.5 billion in revenue over 10 years".

Another Way To See This: LEAVE The US, Increase Profits by $3.5 Billion Over 10 Years..

I can only imagine Biden thinks these companies will 'have to stay where the mines are - you can't take a mine with you' - this is actually slightly less stupid than believing you can tell a relatively small industry "you'll make $3.65 billion more if you leave the US" and think they will stay.

This exposes another cause for concern - no advisor told him miners can set up operations anywhere in the world where there's internet access and electricity? If one country imposes heavy taxes or regulations, miners can easily relocate to a more favorable jurisdiction.

Once the global tech leader, America has become the grumpy, confused old man yelling "get off my lawn" while the house next door is having a BBQ and invited over the entire neighborhood. 

Because that's what is happening - countries with younger leaders, who aren't afraid of technology are actively competing to bring in the companies the US is scaring away. 

Some mining companies bring in a substantial amount of money, and the administration seems oblivious to the fact that their proposal is one that simply delivers this money to other countries - and the $3.5 billion someone misled the President in to believing just isn't coming.   I'd be shocked if 10% of that is collected. 

These blunders in policy decisions, especially in areas as dynamic as cryptocurrency, can have long-lasting implications for a country's economic and technological future.

Ironically, Bad For The Environment As Well...

Politicians are satisfied if they do something that gives the 'appearance' of helping the environment. When the United States increased emissions standards in the 90s and early 2000s,  many of its factories closed, and their workers lost their jobs. But the companies that owned those factories still needed to make whatever product they sold, so the factories simply popped back up in places like China  - where there were virtually no environmental regulations at all.

The end result was the same product, more pollution then ever before when manufacturing it, and the finished product now needed to be shipped to the United States to sell. 

Only since 2021's crypto ban in China has the US been the leading country for crypto mining, which was also an environmental success, thanks to states like Texas and Florida Chinese mining companies, previously running on coal fueled power plants, were now in the US and primarily powered by natural gas.

Sure, crypto has had its ups and downs - but none of crypto's downs came close to the 'dot com bubble' bursting which wiped out $7.5 TRILLION from the market, and people's retirements.  The market cap for all crypto was about 30% of that at it's high.

While thousands of companies went under, it left the United States with Google, Microsoft, Apple, Intel, Cisco, Adobe, which have since made up for the losses of every failed tech startup and then some.

Strange how no one is saying 'we should have banned American's from investing in tech startups' even with losses that dwarf any failed crypto. 

I'm located in Silicon Valley, and similar mistakes are driving companies away from here already.. Tesla's moving to Texas, and we're already seeing when a big name tech company needs more office space, they're not building it in California. This is because the workers with the skills they need are turning down offers to work here, and taking jobs with lower pay in other states - because once you factor in rent prices and taxes, they have more money left over even with a smaller paycheck in another state.

While California's Mismanagement Pushes Companies to Other States, Biden's Plan Brags that No State Will be Able to Escape a Federal Nation-Wide Tax...

The tech industry, crypto included, has shown they're willing to pay taxes when the tax rates are reasonable and fall somewhere near the average for other businesses.  But adding an additional 30% to a company's already largest expense (electricity) will make it hard to resist when smarter countries call offering tax breaks. 

One final thing to consider - there's a number of publicly traded crypto mining companies in the US, I wonder how investors would react if they were invested in a company that began paying this new tax, while competing companies that relocated were obviously benefiting from it when comparing earnings reports.  Would we see share holders demanding companies free themselves of this optional 30% increase in expenses? 


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Author: Ross Davis
Silicon Valley Newsroom
GCP Breaking Crypto News

We May Lose Nearly 25% Of All Bitcoin Miners Next Year, Following Next 'Halving' - New Math Shows Older Rigs Would Be LOSING MONEY...

There is one thing in crypto people can actually predict correctly - the next Bitcoin halving event. This changes the amount of Bitcoins miners receive as a reward for contributing computing power to keep the network running.

It effects the entire ecosystem because it decides the total amount of Bitcoin in circulation, halving instantly cuts the rate that number was growing in half. 

Initially, the reward for mining a block of transactions was 50 BTC. Then in 2012, this was 'halved' to 25 Bitcoins, again in 2016 it was halved to 12.5 BTC. Then most recently,  May 2020, halved again to 6.25.

Cutting their reward in half may sound drastic, but for some perspective, back when the reward was 50 Bitcoins per block mined, the most that was ever worth was $1000 when Bitcoin hit $20 in 2011. If Satoshi wasn't thinking long term, and these halving events were never programmed in, it would be like creating $300 million in new coins every day at today's price. 

Of course, prices would never have come close to what they are today if miners were constantly flooding the market with lots of easily earned coins.

Just like when a nation's government prints money, if they do too much, everyone's money becomes worth a bit less.  When politicians create more money because they want more money, not because the economy actually grew, we get inflation. Bigger, but only because it's been filled with worthless hot air. 

Some say Bitcoin has the solution to inflation built in to it...

These 2 rules make it different from any currency in human history:

First - no one has ability to create new Bitcoins.  Sure, it is a virtual item, and if your wallet isn't connected to the internet, you can mess with the code until the wallet believes it's holding 10 instead of 2 BTC.  Problem is, as soon as that wallet tries to use one of these counterfeit coins from nowhere, the transaction will fail.  A blockchain is literally a record of where every legitimate coin belongs, and no one is going to hack those records of the majority of miners (about 500,000 systems running thousands of different configurations). Yet even with this seemingly bulletproof security, there's still way too many people easily fooled in to opening the front door and letting thieves right in, but that's another story. 

So while no person can suddenly create a bunch of new Bitcoins, the code does this on its own at a rate for healthy growth, and since that rate isn't a secret, there's no surprises. Ironically, Bitcoin is constantly labeled volatile and unpredictable by the media, when it couldn't be more stable, and completely predictable. It's the humans trading it who seem to be constantly switching between buying as much as they can and selling it all off. 

New Bitcoin needs to be created to entice people to mine it, and just enough is created to accomplish that. Satoshi assumed as as time goes on, it would either be dead or growing in popularity, Satoshi set the rate of creating new comes to become LESS as and more people use it. This is a one of Bitcoin's major attractions to economists, bankers and investors, as it greatly raises the odds of Bitcoin having a positive long term outlook.

As time has gone on, the price tag on one of these halving events has a lot more people paying attention to them - the one set to happen next year will significantly reduce the annual amount of new Bitcoins by a whopping 164,250 coins - a dollar equivalent of dropping from $11.5 billion to $5.7 billion.

It's a delicate balance, and the next shake-up may throw some people off...

Mining experts from Blockware Solutions have crunched the numbers following the 2024 halving, examining the impact on different miners with a range of different hardware, and their report discovered a very a real risk for those running older, less efficient systems. 

The study even priced Bitcoin slightly higher than it is today, at $35,000, and used a network hashrate of 420 EH/s - the results show that a staggering 24% of Bitcoin's miners becoming unprofitable, spending more on electricity than they'd earn in Bitcoin - it's safe to assume they'll all just pull the plug. 

The survival of the fittest will be evident as only those miners equipped with the latest technology will thrive. Older rigs, with their diminishing efficiency, will need to be able to sell Bitcoin their Bitcoins at considerably higher prices, especially if electricity costs spike.

The Silver Lining For Bitcoin HODLers...

There's a popular belief that with fewer Bitcoins entering the market, demand might outstrip supply, potentially driving up prices. The low efficiency miners that would be eliminated are also typically the ones who immediately sell everything they earn, so removing their constant supply of new coins to the market could be good for anyone holding bitcoin.  

Blockware Solutions' comprehensive report also illustrates how cutting-edge equipment like the Antminer S19 and Antminer S19XP have a lower threshold for profitability and should continue to bring a profit for miners using them post 2024.

When you hear those estimates of "$1 million bitcoin" - this is what they're talking about, and why the dates they give are 15-30 years away.  Because with a steady, fairly reasonable growth rate, 20 years from now Bitcoin could be incredibly popular, and the supply of new coins so small, the only option buyers will have is to will continually raise the amount they're willing to pay.

The more difficult it becomes for someone to get Bitcoin, the tighter  HOLDers will grip on to what they have.

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Author: Mark Pippen
London Newsroom
GlobalCryptoPress | Breaking Crypto News



Coinbase Now Approved to Offer BTC/ETH Futures Trading in US...


Video courtesy of ABC News

Coinbase, the leading cryptocurrency exchange in the US, has secured regulatory permission to provide crypto futures trading for retail customers. While this isn't the debut for retail investors to delve into crypto futures (with the Chicago Board Options Exchange (CBOE) currently allowing various investors to partake in crypto derivatives), it marks the inaugural regulatory approval for a crypto-centric exchange.

This approval was granted by the National Futures Association (NFA), an independent regulatory body endorsed by the US Commodity Futures Trading Commission (CTFC).

Interestingly, this regulatory green light is unexpected, especially considering an ongoing lawsuit between Coinbase and the US Securities and Exchange Commission (SEC). The SEC had charged Coinbase in June with presenting unregistered securities to the public.

Simultaneously the SEC continues its legal battle with Coinbase over alleged illicit activities, even though the organization previously granted Coinbase the authorization to publicly list and trade its shares. There's no hiding how mismanaged the SEC currently is when looking at this stew of conflicting.

Weekly Wrap-up: This Week's Crypto News that Every Trader Should Know...

Crypto News and Bitcoin Newsroom

U.S Congressional Committee Passed Two Bills to Bring Regulatory Clarity and Remove Hurdles for Crypto Industry:

The U.S. Congressional Committee has passed two bills aimed at providing regulatory clarity for the crypto industry. These bills aim to remove existing hurdles and foster innovation in the sector. This move is seen as a significant step towards mainstream acceptance of cryptocurrencies.

US Prosecutors Seek to Put Sam Bankman-Fried in Jail Before His Trial:

US prosecutors are seeking to detain Sam Bankman-Fried before his trial. He's currently released under an agreement to remain in his parent's Palo Alto home until trial.

Decentralized Cloud Platform Aethir Closes Pre-A Funding Round at $150M Valuation:

Aethir, a decentralized cloud infrastructure platform, has successfully closed its Pre-A funding round, reaching a valuation of $150 million. A sign major investment is returning to blockchain startups.

Singapore High Court says Crypto is Should be Considered Property:

In a landmark decision, the Singapore High Court has recognized crypto as legal property. This ruling provides protection to cryptocurrency holders and could influence how other nations regulate
 cryptocurrency.

Market Movement:

Bitcoin and Ethereum saw insignificant movement this week with Bitcoin's 7-day change coming to just -0.23%, and Ethereum seeing a small loss of -1.74%

Among the top 10 coins, the largest changes include ADA losing -5.85% and Solana down -7.31%. 

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Author: Adam Lee 
Asia News Desk / Breaking Crypto News