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How Bitcoin Neutrality Is Simply Another Vote for a Crumbling Status Quo

18/03/2021 by Idelto Editor

Nearly ten years into failed fiscal and monetary policy experiments, when trust in institutions is ebbing near an all-time low, the rationale for holding bitcoin has never been stronger. Yet, many people are neutral and non-reactive on the matter, giving credence to the current state of affairs instead of challenging the very narrative that is gambling everyones’ future for small gains today.

With Inflation Historically Behind the Collapse of Economic Empires, Bitcoin Offers A Way Out

Many people point to the last financial crisis of 2008-2009 as the juncture where moral hazard reached a tipping point.

For those unfamiliar with the phrase, moral hazard represents the idea that when an entity knows it will be protected against the risks it takes, it will take outsized risks with the full knowledge that any failure will result in no meaningful consequences.

Instead of punishing the instigators and culprits behind the last crash, too-big-to-fail organizations and governments were propped up and bailed out by taxpayers. Unfortunately, redrawing the boundaries of moral hazard didn’t create fewer risks but rather more.

In the time since, interest rates around the globe have plunged to near or below 0%, resulting in an ideology whereby money printing can solve any and every problem. Now, with global debt totals hitting fresh new highs, the printing press turning at full speed, and inflation starting to run rampant, it begs the question as to why the fiat-faithful and undecided remain just that instead of embracing bitcoin.

The Repercussions of Inflationary Neutrality

Not embracing bitcoin or choosing not to take a position on the matter is indeed a vote of confidence in the current system. With an inflationary architecture in place and no plans to replace it, the value of money declines with each passing day.

Printing more money just accelerates this reality, and zero interest rates are punishing savers like never before. Leaving money in the bank might as well be telegraphing to the world that confidence in its antiquated artifices is merited and deserved.

Mortgaging people’s future to support failed policies in the present is a long-term losing strategy, and history tells us that. Eventually, the piper will be paid, and the current debt supercycle will not last indefinitely. There are countless current and past examples of these very events that underline how quickly a country can transition from a prosperous nation to a failed state.

Whether looking back at the Weimar Republic or current-day Venezuela, failed governmental and monetary policies eventually lead to hyperinflation. Rampant fiat currency devaluation combined with high debt levels are nearly insurmountable challenges that ultimately result in government and institutional failure, cultivating a perfect foundation for autocracy and tyranny to flourish.

Challenging The Fiat Narrative

Bitcoin has already proven that another meaningful approach to this problem exists for today’s crumbling status quo. As the best performing global asset over the last ten years by no less than a factor of ten, the belief in decentralization continues to grow as institutional mistrust rises in parallel.

Although there is no clear consensus on the total number of bitcoin holders given the difficulty in measuring participation, some studies suggest that over 100 million people currently own Bitcoin, reflecting a share of around 1% of the total global population.

The exciting thing is that the momentum of this belief in bitcoin isn’t relegated to just one country or region but reflects a growing global community of people who believe that something better is both possible, and realistic. Many people are voting with their feet, and bitcoin wallet data reflects this accelerating trend into deflationary alternatives.

Younger generations are overrepresented in this respect, which is hardly surprising given their first-hand experience witnessing the boom-bust bubble economy. Millennials, for instance, are three times more likely to own and hold bitcoin as long-term investments relative to any other generation. Generation Z is also joining the wave of participation at a feverish pace.

Bitcoin as A Reflection of Waning Institutional Trust

Whether or not you believe in bitcoin or the promise that cryptocurrencies hold, an insurance policy against bad governance and worse policies should not be underestimated and undervalued. The main point of having bitcoin centers on where you stand on government and your remaining faith in these very institutions’ monetary systems.

Ultimately, ignorance of the institutional stranglehold on inflation and the consequences it transfers to ordinary people is very perilous. This isn’t just a local notion either, but a global reality. Accordingly, not taking a stance on bitcoin is just as bad as avoiding it, given it reflects unfettered belief and trust in the very systems that have wrought nothing but deterioration for most of society over the last decade.

Trust is ultimately earned, not deserved. By design, trust isn’t needed to realize the benefits of bitcoin, but faith in its abilities is undeniably rising, putting the status quo on its back foot as new paradigms gain the confidence that people lack in government. Whether governments can rein in moral hazard is questionable, but bitcoin holds the untold promise of faith in a system that requires absolutely none to exist and grow.

So where does your faith lie? – with current governmental monetary systems or with the promise of a decentralized one? Let us know in the comments section below.

Filed Under: 0% interest rates, Bitcoin, Bitcoin neutrality, Currency Inflation, English, fed policies, Government, monetary control, monetary instruments, N-Economy, News Bitcoin, Op-ed

Indian Exchange Launches Lending Program for 5 Cryptocurrencies

21/03/2019 by Idelto Editor

Indian Exchange Launches Lending Program for BTC and USDT

An Indian crypto exchange has launched a program that allows its users to earn interest on their cryptocurrencies held at the exchange. Initially, users can lend BTC, USDT, BNB, XRP, and ETH. The CEO of the exchange has shared details about this new offering with news.Bitcoin.com.

Also read: Crypto Enthusiasts Unite in 4 Indian Cities to Voice Regulatory Suggestions

Lending Cryptocurrencies

Coindcx announced Thursday that its crypto lending program called Dcxlend has come out of the beta testing phase and is now fully launched. Five cryptocurrencies are supported: BTC, USDT, ETH, XRP, and BNB.

The exchange’s website currently displays monthly interest rates of 2 percent for BTC, 1 percent for USDT, 1 percent for BNB, 0.75 percent for XRP, and 0.75 percent for ETH. CEO Sumit Gupta told news.Bitcoin.com that BTC has the highest interest rate “because our traders mostly do margin trading in BTC markets (hence high demand for BTC lenders).”

Indian Exchange Launches Lending Program for 5 Cryptocurrencies

The exchange detailed that there are “three lending term lengths: 7 days, 15 days, and 30 days. The interest rate varies dynamically and goes up to a maximum of 2%, according to market dynamics — demand and supply.” Furthermore, its website states that “the cryptocurrencies lent through Dcxlend will be used to provide leverage to users on Dcxmargin,” another service the exchange offers.

Gupta shared with news.Bitcoin.com that during the beta testing period with just BTC and USDT, “we had roughly 120 lenders which led to a circulation of 170 BTC on a daily basis.” Claiming that the program has recently garnered more attention from lenders, he remarked, “Hence we’re scaling it up and will keep on adding more coins.”

The CEO explained that his exchange has an internal settlement and liquidation mechanism for margin trading which does not have “a dedicated funding wallet,” elaborating:

Funds are then lent to the users only when the margin trade is open, with no withdrawal access and hard liquidation with 7.5% maintenance margin.

Indian Exchange Launches Lending Program for 5 Cryptocurrencies

Similar Programs Worldwide

In the U.S., Blockfi recently introduced a savings account that enables customers to earn 6.2 percent annually on their BTC and ETH. Meanwhile, regulated bitcoin derivatives exchange and clearinghouse Ledgerx has a program called Ledgersavings which allows clients to earn an implied rate of around 16 percent annually.

In Japan, regulated exchange GMO Coin launched a lending program for BTC, BCH, ETH, LTC, and XRP last year. However, at the time of this writing, the exchange is only borrowing BTC but customers can lend between 10 and 500 BTC over 181 days and earn up to an annual rate of 5 percent.

Indian Exchange Launches Lending Program for 5 Cryptocurrencies

Recently-licensed Japanese exchange Coincheck, which was hacked in January last year, also has a lending program for BTC with a maximum annual rate of 5 percent. Prior to the hack, this service supported 12 cryptocurrencies.

Bitbank, another regulated Japanese exchange, also offers up to 5 percent interest annually for users lending between 1 and 25 BTC. Besides BTC, the exchange plans to extend the offer to BCH, ETH, LTC, XRP, and MONA.

Would you lend your cryptocurrencies to an exchange? Let us know in the comments section below.


Images courtesy of Shutterstock.


Disclaimer: Bitcoin.com does not endorse or support claims made by any parties in this article. None of the information in this article is intended as investment advice, as an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any products, services, or companies. Neither Bitcoin.com 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.

Need to calculate your bitcoin holdings? Check our tools section.

The post Indian Exchange Launches Lending Program for 5 Cryptocurrencies appeared first on Bitcoin News.

Filed Under: Bitbank, Bitcoin, BTC, Coincheck, Coindcx, crypto, Cryptocurrencies, cryptocurrency, dcxlend, Digital Currency, English, Exchange, Finance, gmo coin, India, Indian, Interest, lending, N-Economy, News Bitcoin, rates, Tether, USDT, Virtual Currency

Real Estate Giant Holding Live Luxury Home Auction for Bitcoin

20/03/2019 by Idelto Editor

Real Estate Giant Holding Live Luxury Home Auction for Bitcoin

A major Australian real estate group is holding a luxury home auction that can be paid for with two cryptocurrencies. There will be a live auctioneer who will call out bids in BTC. The property owner says he wants to keep as many coins as possible.

Also read: Crypto Enthusiasts Unite in 4 Indian Cities to Voice Regulatory Suggestions

Live Auction for Cryptocurrencies

One of Australia’s largest real estate groups, LJ Hooker, is preparing a live luxury real estate auction for cryptocurrencies with a live auctioneer. The company is working with James Pratt Auctions and blockchain company Nuyen, which will facilitate online bidding for the five-bedroom house in New South Wales, Australia. Micky media outlet reported Monday:

The auctioneer will call bids in cryptocurrency, with the price to be converted and displayed in AUD and USD on a live screen. Payments can be made in both bitcoin (BTC) and binance coin (BNB).

The owner of the property and president of Nuyen, Greg Costello, told news.Bitcoin.com that, in addition to the two cryptocurrencies, AUD will also be accepted.

Real Estate Giant Holding Live Luxury Home Auction for Bitcoin

According to Nuyen, the auction has attracted interested buyers from the U.S., Canada, China, and Australia, the publication detailed. Costello was quoted as saying: “We have already had parties register for the auction in less than 5 days of it being released … There has been a lot of international interest and publicity and I expect to see this grow and grow as the auction gets closer.”

Furthermore, he told the news outlet that he believes there will be more live auctions for cryptocurrencies in the future because international bidders can easily participate, elaborating:

All signs point to a borderless system where digital assets are traded for real assets.

Established in 1928, LJ Hooker claims to be “Australia’s best-known and most trusted real estate brand.” With offices in Australia, New Zealand, China, Indonesia, Papua New Guinea and Vanuatu, the group claims to manage the largest property portfolio in the region of approximately 160,000 properties worth $100 billion Australian dollars (~$71 billion).

Real Estate Giant Holding Live Luxury Home Auction for Bitcoin

The Auction

The auction will take place on April 8. There will be a live auctioneer on the property, which is located on the coast about 60 miles south of Brisbane. Nuyen Vice President Ryan Lee described the post-auction process:

Once the sale has been completed, Nuyen’s internal and secure exchange will then be responsible for facilitating the liquidation of the coins themselves and of course releasing them back to the market.

Costello, being a firm crypto believer, intends to keep as much of the BTC and BNB as he can, Micky conveyed. Nonetheless, he explained that “Some of the coins will have to be liquidated to release the mortgage but the rest will be held tight for future gains.”

What do you think of this live auction for BTC and BNB? Let us know in the comments section below.


Images courtesy of Shutterstock, LJ Hooker, and Greg Costello.


Need to calculate your bitcoin holdings? Check our tools section.

The post Real Estate Giant Holding Live Luxury Home Auction for Bitcoin appeared first on Bitcoin News.

Filed Under: Auction, Auctioneer, Australia, Bids, binance coin, Bitcoin, Blockchain, bnb, BTC, crypto, Cryptocurrencies, cryptocurrency, Digital Currency, English, House, james pratt auctions, luxury home, N-Economy, News, News Bitcoin, nuyen, Real estate, Virtual Currency

Switzerland’s Largest Online Retailer Starts Accepting 10 Cryptocurrencies

19/03/2019 by Idelto Editor

Switzerland's Largest Online Retailer Starts Accepting 10 Cryptocurrencies

The largest Swiss online retailer, Digitec Galaxus, has started accepting crypto payments at its two stores. Customers can choose from 10 cryptocurrencies to pay with including BTC, BCH, BNB, ETH, TRX, OMG, and XRP. One of the stores specializes in consumer electronics while the other focuses on everyday needs.

Also read: SEC Chair Explains Key Upgrades Needed for Bitcoin ETF Approval

Digitec Galaxus Accepts Crypto Payments

Digitec Galaxus AG announced Tuesday that customers can now pay for their purchases with cryptocurrencies at its two online shops: Digitec and Galaxus. Ten cryptocurrencies are supported — BTC, BCH, BSV, BNB, ETH, LTC, NEO, OMG, TRX, and XRP.

Switzerland's Largest Online Retailer Starts Accepting 10 Cryptocurrencies
Checkout page on galaxus.ch.

Claudio Schaad, leader of Team Spectre, one of the teams that make up the engineering department at Digitec Galaxus AG, discussed the new payment option in a blog post on his company’s website. “We’ve been looking into cryptocurrencies for a while now,” he revealed. The post explains that “instead of creating an own wallet or even cryptocurrency, digicon or the such, Spectre chose [to] work with a company called Coinify,” adding:

In simpler terms: while shopping, if your purchase price exceeds 200 francs, you have the option to pay with cryptocurrencies. What arrives on digitec’s end are Swiss francs.

Digitec specializes in IT, consumer electronics and telecommunications goods while Galaxus claims to be the largest online department store in Switzerland with a growing range of products for everyday needs. The two stores form Digitec Galaxus AG, its website describes.

Switzerland’s Largest Online Retailer Now Accepts 10 Cryptocurrencies

According to Oliver Herren, co-founder and CIO of Digitec Galaxus, the company currently has around 2.7 million items for sale, from shoehorns to wheat beer to gaming PCs. He was quoted as saying:

Cryptocurrencies are fascinating and could become a relevant means of payment in e-commerce — we want to support this development.

Paying With Cryptocurrencies

A blog post on Galaxus’ website details that “The new payment option was created as part of a pilot project together with the Swiss e-payment specialist Datatrans AG,” which works with Danish crypto payment provider Coinify.

Customers shopping on digitec or Galaxus can choose to pay with cryptocurrency at checkout. They will be redirected to a page on Coinify which displays the amount due in BTC with a QR code. Customers can choose among the 10 supported cryptocurrencies and complete the checkout process. Prices are locked in for 15 minutes.

Switzerland's Largest Online Retailer Starts Accepting 10 Cryptocurrencies

When choosing a cryptocurrency other than BTC, customers are asked to provide an address so that funds can be returned should an error occur. Furthermore, the company warns of a processing delay when paying with other coins.

Switzerland's Largest Online Retailer Starts Accepting 10 Cryptocurrencies

The blog post further notes that “Normally, the payment confirmation by Coinify takes place within a few minutes,” adding:

Digitec Galaxus does not charge any fees for cryptocurrency payments. Coinify charges a conversion fee of 1.5% of the purchase amount. Other, but small, transaction fees will be charged depending on the currency, as well as how fast the transaction is to be confirmed.

What do you think of Digitec Galaxus accepting 10 cryptocurrencies? Let us know in the comments section below.


Images courtesy of Shutterstock, Coinify, and Digitec Galaxus AG.


Need to calculate your bitcoin holdings? Check our tools section.

The post Switzerland’s Largest Online Retailer Starts Accepting 10 Cryptocurrencies appeared first on Bitcoin News.

Filed Under: BCH, binance coin, Bitcoin, Bitcoin Cash, bnb, BTC, crypto, Cryptocurrencies, cryptocurrency, Digital Currency, digitec, English, ETH, galaxus, LTC, Merchant Adoption, N-Economy, neo, News, News Bitcoin, OmiseGo, online retailer, Ripple, Shopping, swiss, Switzerland, trx, Virtual Currency, XRP

Bank of Mexico’s Attempt to Regulate Crypto ‘Is a Disaster,’ Exchange CEO Explains

18/03/2019 by Idelto Editor

Bank of Mexico's Attempt to Regulate Crypto 'Is a Disaster,' Exchange CEO Explains

The long-awaited rules on crypto assets recently published by the central bank of Mexico have caused quite a stir. A local cryptocurrency exchange’s CEO explains to news.Bitcoin.com that “the impact goes beyond the crypto industry.” Calling it “a disaster,” he asserts that the people within the central bank “have really shown their ignorance” about cryptocurrency.

Also read: Mexico’s Central Bank Publishes ‘Catch-22’ Rules Impacting Crypto Exchanges

Central Bank Showing Ignorance

Much discussion has transpired after the Bank of Mexico (Banxico), the country’s central bank, published a circular detailing crypto-related provisions for the regulation of financial technology institutions (FTIs).

Sebastian Acosta Checa, CEO of local crypto exchange Isbit, shared with news.Bitcoin.com that the circular “says FTIs have to prevent consumers from being ‘exposed’ to the terrible ‘dangerous’ nature of virtual assets on the grounds of their ‘volatility’ and ‘complexity.’” Overall, noting that “In a way, it [Banxico’s circular] is preventing institutions from offering virtual assets to end consumers,” he remarked:

This is a disaster. The people within Banxico have really shown their ignorance about the subject they are trying to regulate.

Bank of Mexico's Attempt to Regulate Crypto Is a Disaster, Exchange CEO Explains

Mexico’s congress passed a law to regulate fintech companies in March last year, putting Banxico in charge of determining which cryptocurrencies would be authorized to offer to the public by regulated entities. At the time, the crypto community and stakeholders were hopeful that the central bank would introduce positive regulations to foster the fintech sector and the country’s economy as a whole.

However, when Banxico finally published the circular, it “essentially stipulated that they wouldn’t authorize any cryptocurrency to be offered by regulated financial companies,” Tomas Alvarez, CEO of local crypto exchange Volabit, recently told news.Bitcoin.com.

Restriction But Not Prohibition

Mexican crypto exchange Bitso described in a blog post that “the circular is directed at banks and fintech [companies] regarding their operations with cryptocurrencies.” The exchange noted that “Banxico mentions that it seeks to take advantage of the use of the technology of these cryptocurrencies as long as they are used for internal operations of financial institutions,” emphasizing:

This does not mean that operations with cryptocurrencies are prohibited.

Bank of Mexico's Attempt to Regulate Crypto Is a Disaster, Exchange CEO Explains

Alvarez calls it a catch-22 situation since the law requires crypto exchanges to become regulated financial institutions. “However, once you obtain this license you would not have the authorization to list any cryptocurrencies, making it legally impossible to operate an exchange in Mexico with the fintech law in place,” he noted.

Interpretation of ‘Consumer’

Some of the rules Banxico imposes are not clear, however. Acosta Checa told news.Bitcoin.com:

Since the circular seems to have been written in a rush and without careful analysis and basic competence, it leaves to the interpretation of certain important things.

For example, in his interpretation, “financial institutions and foreign trade companies are not a ‘consumer’ and thus can operate freely” with his exchange. Isbit has already “shifted gears to serving businesses, corporations and institutions (which are allowed to hold virtual assets in their balance sheets according to the previous bill published March 9, 2018). Thus we will not shut down or lose our most valuable customers,” the CEO emphasized.

Bank of Mexico's Attempt to Regulate Crypto Is a Disaster, Exchange CEO Explains

Nonetheless, Acosta Checa understands that, under the new rules, if his exchange wants to “continue serving final ‘consumers/the public’ we will need to appeal to the Amparo Law and ask a court to suspend the application of the circular published by the Bank of Mexico (not the entire bill passed by the previous government administration on March 9, 2018).” He clarified:

According to the March 9th bill passed by the [Mexican] congress, we have permission to operate with ‘consumers’ till September.

Damaging the Economy

The CEO of Isbit believes that the new crypto asset rules will negatively impact the country’s economy as a whole. He explained that “Mexico is the endpoint to the biggest remittance corridor in the world (second largest population of migrants), the 6th most visited country by tourists and [is the] country with the largest number of free trade agreements.” Therefore, the country “has a lot to gain from the industrial application of virtual assets (activos virtuales) to facilitate free trade, tourism and financial inclusion,” Acosta Checa detailed, concluding:

The impact goes beyond the crypto industry. I believe it damages the economy as a whole.

What do you think of the rules set by the central bank of Mexico? Let us know in the comments section below.


Images courtesy of Shutterstock.


Need to calculate your bitcoin holdings? Check our tools section.

The post Bank of Mexico’s Attempt to Regulate Crypto ‘Is a Disaster,’ Exchange CEO Explains appeared first on Bitcoin News.

Filed Under: Bank of Mexico, banxico, Bitcoin, Bitso, BTC, Central Bank, circular, Consumer, crypto, crypto assets, Cryptocurrencies, cryptocurrency, Digital Currency, disaster, English, Fintech, isbit, Laws, Mexican, Mexico, N-Economy, News Bitcoin, Regulation, Sebastian Acosta Checa, Virtual Currency, volabit

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