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China Saw $11.4 Billion in Crypto-Based Capital Flight Last Year

13/01/2020 by Idelto Editor

China Saw $11.4 Billion in Crypto-Based 'Capital Flight' Transactions Last Year

On January 8, China-based blockchain security firm Peckshield published its “2019 Global Digital Asset AML Research Report” noting a variety of crypto trends throughout the year. According to the study, cryptocurrency-based capital flight stemming from China was around $11.4 billion in 2019. Peckshield’s research recorded a number of illegal or otherwise unregulated transactions over the last few years.

Also Read: Mining Report Highlights China’s ASIC Manufacturing Improvements and Dominance

International Unregulated Capital Flow Using Cryptocurrencies Surges in 2019, While China Saw $11.4 Billion in Capital Flight Crypto Transactions

In January 2017, the Chinese government and the People’s Bank of China (PBoC) banned domestic cryptocurrency exchange operations. However, despite the ban, Chinese citizens have been able to access digital assets via over-the-counter platforms and offshore exchanges. Peckshield, a blockchain research firm from China, published a report which shows Chinese residents are still leveraging cryptos on a regular basis.

According to the study, roughly $11.4 billion in capital flight crypto transactions derived from China. The number is less than 2018’s $17.9 billion but more than 2017’s $10.1 billion. 2019’s unregulated capital flows from China represent more than 1% of the country’s foreign exchange reserves. Peckshield’s study notes:

International unregulated capital flows: The flow of funds using digital assets as a carrier has been huge internationally, but the legal definition of digital assets such as bitcoin in different countries is still very vague, meaning that these liquid funds have not been reasonably regulatory compliance.

MLM Crypto Scams and Darknet Market Bitcoins

Peckshield’s research utilized full nodes from a variety of blockchains and parsed the public data storage files deriving from chains like BTC, ETH, EOS, and TRX in real-time. The study also highlighted the major multi-level-marketing crypto scams that plagued China and many other regions worldwide. Peckshield mentioned how the Ponzi Onecoin managed to siphon $4 billion before the scam ended. The study also emphasized the Plustoken project which managed to defraud Chinese and international investors by running away with more than 200,000 BTC, 780,000 ETH, and 26 million EOS. Peckshield’s research notes that 3 million people were scammed by Plustoken and “the impact is very wide and the damage is huge.”

In addition to detailing the capital flow from Chinese citizens using cryptocurrencies, Peckshield’s report discusses darknet market (DNM) bitcoin growth. Peckshield claims there are about 60,000 darknet websites running on the invisible web and DNM transactions spiked considerably in 2019. In 2018, Peckshield data shows that 334,329 BTC flowed into DNMs but the following year the number jumped to 546,825 BTC.

Peckshield’s deep web research stressed the firm analyzed DNM page structures, content, and discovered a large number of digital asset addresses used within the invisible web. Out of the 546,000 BTC, Peckshield discovered that the total number of BTC flowing directly from DNMs into major exchanges was 29,471 BTC. The study emphasizes that only a small fraction of DNM funds flows into major trading platforms but small amounts of DNM funds are sent to exchanges every single day.

Peckshield’s report has five separate chapters of comprehensive crypto data in regard to DNM money flow and capital flight from an array of countries like China. The researchers note that overall BTC circulation on the invisible web is growing but it’s a “relatively stable amount determined by market demand.” On the other hand, “the current unregulated asset flow has occupied a considerable market share.” In Peckshield’s opinion, “accelerating compliance has become an urgent matter” as far as the global digital asset environment is concerned.

What do you think about the capital flight leveraging cryptocurrencies in China? What do you think about Peckshield’s data in regard to DNM funds in 2019? Let us know what you think about these topics in the comments section below.

Disclaimer: This article is for informational purposes only. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any ideas, software, mining rigs, mining rig manufacturers, websites, concepts, content, goods or services mentioned in this article.

Image credits: Shutterstock, Peckshield’s research, Wiki Commons, Fair Use, and Pixabay.

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The post China Saw $11.4 Billion in Crypto-Based Capital Flight Last Year appeared first on Bitcoin News.

White House Market Wants to Become the Darknet’s Toughest DNM

12/01/2020 by Idelto Editor

White House Market (WHM) is an ultra-secure darknet market (DNM). It disallows Javascript, enforces PGP throughout, admins key sign every 72 hours, and only accepts monero (XMR). It might be the darknet’s most private market. But do its vendors deliver? News.Bitcoin.com dusted down some XMR and decided to find out.

Also read: How to Encrypt Messages With PGP When Using Darknet Markets

A Fortress in the War on Privacy

“All transactions on the blockchain can be traced due to blockchain’s immutability,” begins surveillance firm Bitfury in its December report on darknet interactions. That’s not quite true, for while public chains like bitcoin can be inspected by anyone with a block explorer or forensic analysis tool, monero provides no such luxury. That’s why its usage is enforced on White House, one of the several dozen DNMs competing for market share.

Empire, the darknet’s most popular market, has been struggling under heavy DDoS attacks for weeks, believed to be the work of a slighted ex-vendor, “Stackz420,” who’s gone so far as to publish a script so that anyone can join in the assault on its servers. Just to add to their woes, Stackz420 has attempted to dox Empire’s operators and exposed security holes in the site. Empire survives for now, but given its extended periods of downtime, it seemed opportune to give a different DNM a try.

White House is locked down like a fortress, with enough security measures to keep amateurs at bay, but enough tutorials to ensure the determined can get inside and ply their trade. It’s an opsec obsessive’s paradise.

What’s Inside the White House?

The homepage for WHM lays down the house rules from the get-go. For starters, you need to upload your PGP key just to be able to browse. You also need to add the site’s public key to your keychain to verify the signed messages from its operators attesting that they are still alive and supplying mirror links for the market.

Exit scams occur almost monthly on the darknet, with Grey Market the latest site to disappear. Even with frequent message signing, there is no way of verifying the integrity of White House’s operators, and thus it too could fall by the wayside. The use of mandatory encryption throughout, however, coupled with direct payments between vendors and buyers, limits the possible fallout.

After logging into the site, you must decrypt a PGP message using the private key you associated with your WHM account. It contains a code that you enter to verify your pseudonymous identity.

A Darknet Safety Charter

On its About page, White House Market lays out the security measures it has in place, which functions are encrypted, and what information is retained in plaintext. It explains: “We assume that any server can be hacked or seized eventually, so we don’t want to keep more data our servers then we need to.” PGP and monero private keys are reportedly not kept on the servers.

Under “Security Considerations,” detailed advice on maintaining good opsec, both online and offline, is provided. This includes the invocation not to reuse usernames/passwords/PGP keys over multiple darknet markets, finishing: “Under any circumstances do not use on darknet any username / nickname / moniker / password / PGP key that you may use or may have used on the clearnet or in real life, not even something similar. It’s the fastest way to get caught.”

Although PGP can seem complex at first, once you’re accustomed, it adds mere seconds onto DNM purchases, and the peace of mind it buys is well worth it. While other DNMs employ optional PGP, White House enforces it, preventing users from getting lazy.

Buying Monero to Buy Darknet Goods

In reviewing WHM, I had no monero to hand but did have some BTC in a noncustodial Bitcoin.com Wallet. I sent it over to accountless crypto changer Flyp.me and within half an hour had its XMR equivalent in a noncustodial Monerujo Android wallet. For similar privacy guarantees and a slightly better exchange rate I could have alternatively traded BTC for XMR on exchange.Bitcoin.com.

As a newer darknet market and one with a stricter door policy, WHM has fewer listings than the market leaders; a little over 4,000 products in its drugs category, and around 6,000 across all categories. This will grow, though, if the site sticks around and builds up trust. In the meantime, there’s enough listings to cover most bases, territories, and tastes. Many vendors have yet to accrue much feedback, but some have ported their PGP key and with it their rep over from other DNMs.

I order something fragrant for testing purposes, from two different sellers, and receive a PGP encrypted message containing the seller’s XMR address. I must decrypt it with my own key, or I can scan in the wallet QR code. A BTC option is available at checkout, but WHM discourages its usage. I send the XMR from my Monerujo wallet and within 10 minutes my transaction has cleared and within 48 hours the package is on my doorstep. Financial freedom and the free exchange of goods and services is a beautiful thing.

Bitfury estimates that $920M of BTC poured into darknet markets last year, with other cryptos likely taking that total past the $1 billion mark. “Unfortunately, we see that the annual flow of funds to darknet entities is increasing,” finishes Bitfury’s darknet report. Fortunately, we have private cryptocurrency and there’s nothing Bitfury and their surveillance sisters can do to stop it.

Do you think darknet market sales will increase this year? Let us know in the comments section below.

Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Images courtesy of Shutterstock.

Did you know you can verify any unconfirmed Bitcoin transaction with our Bitcoin Block Explorer tool? Simply complete a Bitcoin address search to view it on the blockchain. Plus, visit our Bitcoin Charts to see what’s happening in the industry.

The post White House Market Wants to Become the Darknet’s Toughest DNM appeared first on Bitcoin News.

Vin Armani Talks Content, Reveals the ‘Real’ Bitcoin in New Video

12/01/2020 by Idelto Editor

Cointext CTO Vin Armani has a lot to say. The multi-faceted content creator, voluntaryist philosopher, and developer in the Bitcoin Cash community crafts thought-provoking crypto content. Whether dissecting the ‘gym friend’ meme in the context of grounded masculinity, or addressing the roots of tribalism and which chain is the true Bitcoin, Armani’s collaboration with video editor @CryptoSpanglish has seen his content grow in popularity, and established him as one of the influential voices of the current crypto zeitgeist.

Also Read: Why the Counter Economy Is Necessary to Bitcoin’s Survival as a Disruptive Currency

What Is Bitcoin?

In a sea of repetitive crypto themes, unique content stands out. Vin Armani’s recent contributions to the conversation have struck a chord with his audience, and whether sympathetic or antagonistic, viewers are engaged. After all, Armani isn’t just talking about crypto, but what Bitcoin itself means to humanity at an elemental level. These abstract observations tie directly back to concrete and pressing specifics like price, community squabbles, spicy memes, and tech development in compelling fashion. Armani states in his video “Bitcoin: Purely Peer-To-Peer”:

If you want the price to go back up, get back to asking the question, ‘What is Bitcoin?’ If you want the price to keep dropping, keep acting like you know the answer.

The Cointext CTO takes issue with the crypto space’s nasty habit of alienating newcomers, shouting down honest questions, and disregarding the views of the non-dev or non-technically minded.

In his video “Bitcoin Cash: Color Wars,” he asserts that “Those with technical competence need to make it standard operating procedure, that they come down out of their ivory towers and explain, in simple to understand terms, what they are doing, and why what they are doing matters.” If this is not done, Armani warns, the simply explained (albeit fallacious) thought systems fueling scams will inevitably attract more adherents and damage sound and viable networks. Especially if those non-tech savvy community members asking questions are shamed for simply considering alternatives.

Armani on His Videos, Collaboration With @CryptoSpanglish

“What you are seeing with these videos is a collaboration between a very talented video editor, @CryptoSpanglish [Twitter handle], and me,” Armani told news.Bitcoin.com via Telegram. “I’m a firm believer in Marshall McLuhan’s thesis that ‘the medium is the message.’”

In addressing his evolution as a content creator, the CTO detailed: “I had posted a few ‘video essays’ on concepts in Bitcoin that I had been writing and speaking about privately, including in my private newsletter, CounterMarkets. I’m competent in communicating my thoughts with words, but the visual aspect of those video essays was crude to say the least.”

“@CryptoSpanglish reached out to me and offered to collaborate. He also suggested that we produce new content on a weekly basis. We work with a great deal of trust for one another. He trusts my word choice and I trust his visual decisions. He is the primary reason why the impact of the latest pieces has been so much greater than those original videos I produced in my own. I can’t wait to see what our collaboration produces as we move forward.”

When asked what motivates him, Armani notes that “For the last several years I have been thinking deeply and writing about the significance of Bitcoin. I’ve implemented these ideas into my software work. I’ve written about them in CounterMarkets. I’ve written essays which will be compiled into my next book.” He emphasized:

If there is a theme that has run through all of this exploration it is that Bitcoin represents a sort of reset. It isn’t an extension of our existing paradigm, it is another path that forks at an earlier part in our history.

“The most important idea is that we have to go back and examine ideas about culture, society, and money that humans have taken for granted for thousands of years,” Armani elaborates, “For that reason, I say that Bitcoin is not primarily a software project, it’s a project of human organization, a cultural project.”

Regarding his work with @CryptoSpanglish so far, Armani sees his piece entitled “Bitcoin: Heroes” as being the most important and details: “For me, Ross Ulbricht is a touchstone. He represents a hero, a martyr, and an ideal for those of us who call ourselves bitcoiners. If there is one video that I would want everyone to see, it’s the piece we did which focused on Ross.”

Gym Friend and the Real Bitcoin Revealed

One of Armani’s more popular videos has been the recently posted Bitcoin: Gym Friend, which sees the polymathic entrepreneur dive into an equal parts humorous and thought-provoking analysis of the viral @karbonbased meme.

“Bitcoin needs more Gym Friends,” Armani narrates. “There’s nothing wrong with calm, powerful, protective masculinity … Toxic masculinity is the domain of the insecure, easily triggered boy who clutches to toys made through the labor of others, who feels entitled to have his life be comfortable and to have that comfort provided through the labor of others.” Armani emphasizes that building the value of a network like Bitcoin has risks, and requires sacrifice and courage which, in his view, the Gym Friend ideal epitomizes. Interestingly, the real ‘Gym Friend’ is now on Twitter, and has also seen Armani’s video, agreeing that “it’s sad to see the community bickering, fighting over trivial things.”

Sure to spark even more controversy is Armani’s just-released video, “The Real Bitcoin,” which opens with the provocative assertion:

One of the most self-destructive memes in Bitcoin is the idea that a particular ticker symbol represents a network that is the ‘real’ Bitcoin, to the exclusion of all other networks and their communities. Certain individuals go even further, claiming that any community beside their own, which claims to even be so much as a version or variant of Bitcoin is a scam.

Armani proceeds to make his case by delving into the history of human tribalism, exploring both its benefits and weaknesses in the context of modern times and mass crypto adoption. In typical style, the video presents a view that is both well-articulated and challenging — not to mentioning visually stimulating — which invites commentary, debate, and perhaps most importantly, decided action.

What are your thoughts on Armani’s crypto content and new video, The Real Bitcoin? Let us know in the comments section below.

Image credits: Shutterstock, fair use.

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The post Vin Armani Talks Content, Reveals the ‘Real’ Bitcoin in New Video appeared first on Bitcoin News.

Independent Report Declares News.Bitcoin.com the Top Crypto News Site

11/01/2020 by Idelto Editor

Independent Report Ranks News.Bitcoin.com the Top Crypto News Site

A new research report from BTC Peers has ranked 145 crypto news websites for quality. It analyzes scores of benchmarks including average visit duration, bounce rate, and number of backlinks. The report features the usual suspects in its top 10, including Coindesk at number three and Cointelegraph at two. Top of the list, however, is news.Bitcoin.com.

Also read: Court Gives Craig Wright More Time to Await the Mysterious Bonded Courier

The Best 145 Crypto News Websites of 2019

The cryptosphere is filled with news sites that cover multiple cryptocurrencies, ecosystems, and angles. From the unquestioningly fawning to the unrelentingly skeptical, there’s a crypto news outlet to suit all dispositions. ‘Best’ is a highly subjective term, therefore, whose declaration largely depends on the needs of the reader. Nevertheless, when BTC Peers published its methodical analysis of the top 145 crypto sites and placed news.Bitcoin.com top, our publication was duty bound to report on the matter.

“News.bitcoin.com won first place with 978 points,” notes the report, adding: “It was interesting to compare it with Cointelegraph. On the one hand, CT has a higher Alexa Rank, with more than twice the audience and more backlinks. But news.Bitcoin.com has less of a bounce rate and a twice higher avg. visit duration, which suggests that although they have a smaller audience, their readers interact with the content better and longer.”

In other words, news.Bitcoin.com may not attract the highest readership, but the increased time readers spend on the site is indicative of quality long form content. Other sites may be good for grazing, but for deep analysis, news.Bitcoin.com has got it locked down. That’s the long and short of the BTC Peers report. Naturally there are a few caveats to consider.

‘Quality, In-Depth Reporting’

The thorough analysis of 145 crypto news sites was commissioned with a particular audience in mind. Specifically, it was published for the benefit of “Marketers and PR managers, in order to assess the quality of resources to get better results,” as well as “Journalists, editors, and owners of content platforms looking for quality news, and to evaluate competitors and investors and traders, to assess the quality of information sources to make better decisions.”

Of these groups, marketers in particular are seeking reliable data with which to plan media campaigns. The ability to compare key metrics, such as bounce rate and Alexa ranking, across all leading crypto publications, is extremely valuable. This data enables advertisers to optimize their campaigns and to submit press releases to sites that can deliver a return on investment. Low bounce rate – i.e. the amount of time a reader will spend on a page before clicking the back button – is one of the leading determinants of quality.

Independent Report Declares News.Bitcoin.com the Top Crypto News Site — Top 10 crypto news sites according to BTC Peers

Commenting on the report, news.Bitcoin.com Editor-in-Chief Nanok Bie said: ”I’m grateful for this recognition, particularly the fact that BTC Peers looked closely at metrics like bounce rate and time on page, to find which site readers engage with the most. The high numbers awarded to news.Bitcoin.com are due to our consistent high quality, relevant and in-depth reporting.”

He added: “If you’re only going to read one news source to keep up with crypto, it should be news.Bitcoin.com, as we deliver balanced, well-researched and neutral news that covers everything bitcoiners need to know about the industry.”

The BTC Peers report is sure to spark debate about how media quality is measured and which benchmarks matter the most. At news.Bitcoin.com, we’re grateful to all our readers for their time spent reading and passionate debates in the comments section, which have helped make this site what it is – namely, the best crypto news website of 2019.

What are your thoughts on the findings of the BTC Peers report? Let us know in the comments section below.

Images courtesy of Shutterstock and Dapp Review.

The post Independent Report Declares News.Bitcoin.com the Top Crypto News Site appeared first on Bitcoin News.

6 High Interest-Paying Options for Crypto Lenders

10/01/2020 by Idelto Editor

As anyone who has ever sought to lend crypto will attest, significant variance exists in the APR offered to lenders. Indeed, the spectrum can swing from 1% to 8% – even when it’s the same asset being loaned across platforms such as Coinbase, Poloniex, Compound and Dharma. As a consequence, would-be lenders seeking passive income must shop around for the best offer. Here are six high-interest options for lenders.

Also read: Low Interest Rates Provide Precarious Protection Against Crisis, World Bank Warns

It Pays to Shop Around

There’s a lot of options to factor in with crypto lending over and above the quoted APR. You can choose between custodial and noncustodial, monthly, quarterly, and annual interest, and various cryptos from BTC to stablecoins. Platforms such as Loan Scan mercifully make the task easier by enabling a side-by-side comparison of the best options for lenders. There’s also information for borrowers seeking the most attractive terms. Below are some of the best high-yield options presently available to lenders.

Nexo

While the majority of lenders offer varying rates depending on the currency, Nexo is different – its 8% guarantee holds true across fiat currencies like USD, EUR and GBP as well as popular stablecoins such as USDC, USDT, SAI, TUSD, and PAX. The platform has just added EOS to the list of available collateral for its Instant Crypto Credit Lines, enabling holders to spend the dollar value of their EOS without selling it.

With Nexo, you can withdraw your funds whenever you want without penalty, just like a regular bank account. Given that 8% is the highest rate quoted by Loan Scan, Nexo’s custodial lending platform is worth your attention. All the more so if you own Terra: thanks to last year’s partnership between the two companies, Terra is offering to augment Nexo’s 8% interest rate with additional returns funded by its seigniorage model, enabling Terra holders to enjoy double-digit yearly returns on Nexo.

Celsius

Celsius almost manages to emulate Nexo by offering a fixed rate across most stablecoins: 7% for TUSD, GUSD, PAX, and USDC. The rate is well below that for SAI though, standing at 3.1%. Of course, you can collateralize non-stablecoins too, with Celsius offering 2.8% interest for ETH, 3.05% for BTC, 2.9% for XRP, and 3.15% for ZRX. A custodial system, Celsius recently hit the headlines by confirming it had handed out more than $4.25B in crypto loans last year, including over $2B in the course of 90 days. It also paid out over $5M in interest income.

Crypto.com

Acquired by Monaco in 2018, Crypto.com offers an impressive interest rate of 6% on three stablecoins (USDC, TUSD and PAX) and three of the most popular digital currencies (ETH, BTC and XRP), making it an appealing option for a broad spectrum of investors and hodlers. You can avail yourself of even better rates when you stake MCO tokens.

Blockfi

Blockfi specializes in providing clients with access to high-interest crypto accounts and low-cost credit products. Until recently, Blockfi only supported two currencies, namely ETH, for which the rate is 4.1% for deposits below 1,000 ETH (and 0.5% for everything above), and BTC, which stands at 6.2% for holdings less than 10 BTC, with everything above that earning 2.2%. However, in 2020 the company aims to add five to ten new assets including USDC (8.6%) and litecoin (3.78%). Be advised, Blockfi has had to cut rates more than once due to depositor demand outstripping borrower supply.

Coinlist

Founded in San Francisco in 2017, originally as a capital-raising platform, Coinlist is now all over the stablecoin market, offering the same rate of 5.84% interest on USDC, SAI, TUSD, GUSD, and PAX. It also furnishes users with 2.92% on ETH and BTC, 5.11% on ZRX, XRP and REP, and 3.65% on Brave’s BAT. It’s worth having a look at their website too, as they seem to be adding tokens all the time.

DAI Savings Rate now 6%

That’s the highest it’s ever been

That means you can lock up your DAI in a savings contract & earn 6% per year with no additional risk

Maybe better yet…

Wrap it in cDAI & earn the 6% without locking it up. cDAI can be transferred & spent!#bankless

— Ryan Sean Adams – rsa.eth (@RyanSAdams) January 8, 2020

It’s little wonder crypto owners are seeking to generate a passive income by putting their crypto to work via high-interest paying loans. Of course, that isn’t the only thing driving the crypto lending market: traders are also borrowing crypto to overcome capital inefficiencies. The crypto space currently offers significantly higher interest rates than the fiat world, with platforms like Cred allowing people to earn up to 10% on their BTC and BCH holdings.

Aspiring lenders seeking to profitably deploy their crypto holdings should keep an eye on interest rates, which are subject to change, and be sure to read the small print.

Have you tried crypto lending or borrowing? If so, what platforms do you recommend? Let us know in the comments section below.

Images courtesy of Shutterstock.

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