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Warnings of an imminent financial crisis are in the media more than ever before. But could such an event be the tipping point that puts Bitcoin and cryptocurrency firmly into the mainstream? Politician and tech entrepreneur Rick Falkvinge says it would be the perfect time to finally convert people to crypto.
“Storm Clouds Building”
A global financial crisis is imminent – and we’re not prepared, experts have warned. The deputy head of the International Monetary Fund, David Lipton, said in December that he sees “storm clouds building” and fears “the work on crisis prevention is incomplete.” While Janet Yellen, the former chairwoman of the Federal Reserve, has said the loss of authority by banking regulators and a move toward deregulation are also warning signs of another economic disaster.
A sustained trade war between the U.S. and China could damage the global economy, it has been warned, and the level of global debt has reached record levels. Combined with the risk of leveraged loans and a lack of tools available to deal with a future crisis, it would seem the warning signs are everywhere.
But what would this mean for the crypto-world? Could a crash do the crypto-market any good – as has been seen in Venezuela – or could it see people trying to cash out as quickly by selling their digital assets at the highest possible price?
Make Or Break Opportunity
The founder of Sweden’s libertarian Pirate Party, Rick Falkvinge, told news.Bitcoin.com that not only is a future financial crisis on the horizon, it will be the “make or break” opportunity to convert the masses to using cryptocurrency. “It’s like watching a mountainside full of wet snow, you can’t tell what’s going to set off the avalanche but you know for sure the avalanche is coming,” he said of the current warning signs.
“Since august 15, 1971 [the date of the Nixon shock] the bubble has been inflating. The situation is what we call metastable, it’s kind of like when we have one of the spinning tops. It stays stable for a little while but it can’t stay stable forever.”
But Mr. Falkvinge, a proponent of Bitcoin Cash (BCH) and an evangelist for digital rights, went on to say that the future crash will be the ultimate opportunity to convert the masses to cryptocurrency.
And the crypto world would have to prove that digital currency is of use and a better option than fiat, Mr. Falkvinge added. “We will have to make the case,” he said. “We have to provide the value for it to be a better offering. At the end of the day it’s got to deliver. That’s the point I’m coming to full circle here. At the end of the day a crunch – credit crunch, stock market crunch, housing market crunch – is when we really have an excellent shot at introducing the world to crypto and using it to break free of this nickel-and-diming that’s so prevalent in existing markets.”
He added: “We have to make the case. We have to provide the value for it to be a better offering. That’s a once in a lifetime opportunity and it’s not coming back. That’s the make or break.”
Do you think a financial crisis could do the crypto world good? Tell us in the comments below.
Images courtesy of: Shutterstock and The Pirate Party.
The post Rick Falkvinge: Imminent Financial Crisis Perfect Opportunity to Convert the Masses to Crypto appeared first on Bitcoin News.
Two Bitcoin Cash (BCH) proponents, Javier Barrera and Andrés Rivera, believe the evolution of cryptocurrency will be bolstered by the BCH network so they recently developed a payment processor called Bitek.co. The company offers merchant processing with payable invoices, and accounting services as the Bitek platform provides merchants with the ability to accept BCH and convert all or a percentage of the funds into Colombian pesos.
Bitek: Promoting the Use of Bitcoin Cash in Columbian Markets
There’s a new payment processor for the Bitcoin Cash (BCH) network called Bitek.co — a system that allows merchants from Colombia to accept BCH and convert to pesos immediately if they choose. The business model is similar to the Bitpay service as Bitek offers BCH-based merchant processing, invoices, and accounting services its customers. Bitek also offers a community section on their website for merchants who want to announce they accept BCH. In order to use Bitek merchant who are interested need to register and fill out the necessary information for a payment gateway and receiving deposits in BCH and Colombian pesos.
Bitek’s founder Javier Barrera recently spoke at the Satoshi’s Vision Conference in Tokyo, and detailed how his team is integrating BCH into Colombia’s retail market. Moreover, earlier this week Javier Barrera and Andrés Rivera explained their passion for Bitcoin Cash in an interview with the Latin American publication Diariobitcoin. The founders explain they believe BCH is a better Bitcoin and “it is the asset that best fits with the definition and the philosophical line proposed by Satoshi Nakamoto.” Bitek plans to educate residents in Colombia with meetups and educational programs throughout the region as the firm tells Diariobitcoin:
The objective is to promote the use of Bitcoin Cash in the national market.
BCH Meetups and Bitek’s Plan to Launch a Marketplace
Barrera explains that Bitek has three benefits for merchants looking for a BCH payment gateway such as accounting, liquidity with a remuneration in Colombian pesos, and protection from cryptocurrency volatility as BCH deposits can get the equivalent in pesos the same day. The exchange rate is based on estimates stemming from local exchanges and trading platforms like Bittrex. Just like other cryptocurrency payment processors, merchants have the ability to convert 100 percent of their funds into pesos or a fraction.
Bitek plans to launch a marketplace as well that facilitates trades between buyers and sellers and payments made with Bitcoin Cash. Further Bitek has detailed it has been in talks with BCH-based firms such as Centbee and Nchain concerning future collaborations. The startup has also organized BCH meetups on a weekly basis at popular venues like the Revellion Cultu-Bar. Bitcoin Cash supporters seem pleased with another addition to the slew of companies offering BCH infrastructure services.
What do you think about the Bitek payment service? Let us know your thoughts on this subject in the comments below.
Images via Shutterstock, and Bitek.co
Want to find out how much Bitcoin Cash is worth in real-time or convert your portfolio into USD check out Bitcoin.com’s Bitcoin Cash Converter here!
The post BCH Payment Processor Bitek Allows Colombian Merchants to Convert to Pesos appeared first on Bitcoin News.
Chinese traders in Moscow’s huge wholesale bazaars have become the most active buyers and sellers of cryptocurrency in the Russian capital. The retail turnover there is estimated at almost $ 10 billion a month. Authorities say that most of it is converted to cryptocurrencies and sent back to China where it‘s exchanged to yuan.
Crypto Flows Considered Easier To Track than Cash
The three largest bazaars in the Russian capital, “Moskva”, “Sadovod”, and “Food City”, make about ₽600 billion rubles each month (~$ 10 billion). That’s almost a quarter of the retail turnover in the Russian Federation. Practically none of it is deposited in bank accounts, according to Yuri Polupanov, head of the Central Bank’s Financial Monitoring and Currency Control Department. 90% of the businesses there are owned by Chinese merchants and producers, he said during the Thomson Reuters Forum in Moscow, RBC reported.
The retail centers have become pioneers in crypto trade. Russia’s Centrobank believes that Chinese traders convert most of their revenues to cryptocurrency and send it back home, where it is exchanged to yuan. Financial authorities have learned that crypto exchange bureaus are also operating there. Polupanov said that some of them are registered as financial services providers. Inspectors have found discrepancies between their accounting reports and the data gathered remotely by the CBR.
There is no point in denying that cryptocurrency is used in wholesale and retail trade, thinks Elina Sidorenko, head of a working group at the Duma tasked with assessing crypto circulation. “It’s no secret that Chinese merchants are using cryptocurrencies through anonymous wallets. But as soon as they are defined legally in the civil code, these financial flows will be easily controlled. It’s easier to track them than cash,” she said.
Sidorenko believes the situation will improve in a few years. If the central bank has evidence of illegal crypto-fiat exchange, it should give it to the Prosecutor’s Office, she added. Elina Sidorenko noted that illegal activities in these bazaars are not a new phenomenon. Violations of immigration laws and crimes related to laundering of illicit proceeds are flourishing there, she said, admitting: “We should’ve dealt with all that long time ago.”
Relics from The ’90s
The story of improvised retail bazaars and flea markets in Russia dates back to the breakup of the Soviet Union. Many of them were set up in the capital in the ‘90s. They have been targeted by authorities since the early 2000’s. Trade there is often unregulated and untaxed. Government inspectors have found multiple violations of sanitary and fire safety standards, customs and migration regulations.
In the summer of 2009 Moscow authorities closed down the “Cherkizovskiy” bazaar, which was one of the biggest. Russian police found 6,000 containers of contraband worth an estimated $ 2 billion. The newer trade centers “Sadovod” and “Moskva” are now major wholesale markets for clothes and shoes, while “Food City” is the main food distribution center. The volume of retail trade in the Russian capital has been estimated at more than $ 72 billion dollars in 2017. The monthly turnover is between $ 5.5 and $ 7.8 billion. It reaches $ 49 billion USD a month on national level.
Cryptos like bitcoin have been gaining popularity in Russia, where 12% of crypto users now claim cryptocurrency is their main source of income. Two draft laws regulating the crypto sector have been introduced in the State Duma, the lower house of Russia’s parliament. The bill “On digital financial assets” legalizes activities like initial coin offerings and mining. A second draft aims to amend the civil code in order to legalize the use of “digital money” in payments. It’s still unclear whether the circulation of cryptos will be allowed in the country. Recently, Russian media reported that a new crypto exchange bureau is now buying and selling bitcoin for cash in Moscow.
Do you think regulating cryptocurrencies will minimize their use for illicit purposes? Share your thoughts on the subject in the comments section below.
Images courtesy of Shutterstock, Food City.
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