Bitcoin and Cryptocurrency News

Wallet app, Abra, will start offering support for Ethereum, the second most popular cryptocurrency behind bitcoin.
Abra is digital wallet started by Bill barhydt who was the former director of Netscape, remember them? Users can use bank accounts, credit cards and cash to fund their wallet and buy cryptocoins. Abra’s storage ability is also going to get an upgrade so that users can have three different types of coins in their accounts.
Abra is also developing a multi-signature transaction model so that both users and apps with have to approve a transaction. Today most places us the single signature model to approve transactions. This will add a level of security that is needed in the cryptocurrency markets.

Bitcoin Rockets Past $12000
It’s beginning to look a lot like Christmas – at least it is in the Bitcoin market. Bitcoin delivered an early present yesterday when it set an all-time high in trading at more than $11,000. It’s a record for any cryptocurrency and will certainly have many early investors wearing smiles for the entire month of December.
For early investors, the good things just keep getting better with bitcoin. It has rocketed past the $12,000 for a whopping gain this year over 1000%. For Christmas and Hannakah who could ask for anything more than this major success.
There is concern of a correction but that comes with the territory. Will the uptick ever stop? It seems of all cryptocurrencies, bitcoin is most established. For big players entering the cryptocurrency market, bitcoin is where it’s at right now. As cryptos flourish, other cryptos that sound promising might work out and become more popular.
One example of this is audiocoin. It’s meant for the world of music and somehow a bridge for payments. The only thing is that most people are downloading music for free and this leaves little room for any type of payments. Will it go anywhere remains to be seen. But like bitcoin several years ago, it’s trading for pennies.
There are dozens of cryptocurrencies out there now.

Monero Making Gains
Bithumb, the Asian crypto exchange listed Monero and the coin scored its greatest gain jumping by 84%. Along with all the major cryptos its continuing an uptrend and over $300. In general, it’s tripled in the last six months.
Monero was released in 2014. Like bitcoin, it was available for pennies on the dollar and this run has moved it up with healthy profits for early investors. Though not as popular as bitcoin, ethereum or litecoin, Monero is still a major player in the cryptocurrency market.

Dash Coin Making Gains
Along with most cryptocurrencies, dash coin has been making gains as well. It’s now at $850 on the Bithumb exchange and is the third most popular traded coin. The dash protocol was upgraded and another factor is the blockchain was upgraded to 2mb and transaction fees were lowered.
KuvaCash was also established by Dash. This promotes the currency for use in Zimbabwe. For the country in the midst of a political coupe, the dash coin represents some security for their money.
Dash will also be offering Zimbabweans a method of exchanging US dollars for dash coins via telephone.

Ethereum Breaks $500 Mark
The second largest cryptocurrency is making new gains. It’s finally past the $500 mark at $511. The total market cap is over $40 billion dollars. The gains seems to follow all the cryptocoin action lately.
Overall most major cryptocurrencies have only gains recently. Major gains that is compared holding a penny stock that just went hog wild. For early investors, it’s time to pop a bottle of champagne!!

Bitcoin News

Segwit2x Update Rejected

An update for bitcoin software called Segwit2x was rejected by supporters of bitcoin. The update would have increased bitcoin’s transaction capacity that is now limited by software programming. Segwit2x, from Segregated Witness, alters how data is stored.
The current block size limit is 494,784 or about 500,000. The new tune up would push that beyond that limit. For the average consumer this means nothing. Currently bitcoin miners are the focus of this update since they are trading in bitcoin and maybe much more now since the boom in bitcoin value.
The programming was accurate enough and most of the transactions would have been outside of the consensus and rejected. An update still might go forward sometime on the road ahead.

Bitcoin Rises in Value

Bitcoin has risen above the $7000. Since the start of 2017, bitcoin has risen over 1000%. Some analysts think it could go over $10,000. As a result everything blockchain or bitcoin can expect a surge in interest or stock price. It does have a bubble feel, though bitcoin and the underlying technology is probably here to stay.

Singer Bjork Gives Cryptocurrency with new Album

Singer Bjork is giving away audiocoin, one of the many cryptocurrencies, for purchasers of her new album. It’s a marketing ploy. Audiocoins are worth less than .50. But it does spark interest in cryptocurrency for those not aware of it.
Bjork is a 51 Iceland native who once walked the red carpet in a swan inspired costume. Her latest album Utopia will available for purchase with bitcoin, litecoin, dashcoin and audiocoin. Blockchain Integration Technology, created by Blockpool, has developed interfaces for various systems to connect blockchains.
On the news, audiocoin has spiked to four times its value to falling back to twice value. It now stands at 0.0043 per coin.

In other bitcoin news, the IMF is encouraging banks to invest in cryptocurrencies. Several investment companies like JpMorgan, Wells Fargo, and Credit Suisse are investing in Axoni, a blockchain startup. And the Legolas exchange, an exchange based in Luxembourg, will debut in 2018. It’s billed as a fair and theft proof exchange that allows for multiple cryptocurrency transactions.

Bitcoin Used In Real Estate Transactions in the US

Bitcoin is accepted by over 100,000 merchants and now in the U.S. bitcoin is making its way into real estate transactions. From home purchases to land and condos, bitcoin is finally getting used as currency for buying into real estate.
The younger, newer generation, loaded with cash, want to use bitcoin for transactions. It only makes sense since there is savings on transactions leading all the way to the real estate purchase. Due to demand, many real estate brokers have to explore this option as a payment method.
One developer is hoping bitcoin will give him an advantage in selling his condos. One thing for sure, bitcoin users will generally be the next generation with smart homes and condos. Bitcoin is another kicker in closing the deal. In addition to a younger generation, foreigners with unstable currencies utilize bitcoin to hold on to their money.
Not everyone is willing to accept bitcoin as a payment though. It’s been on a wild ride up this year and the scene is set for a correction. Some sellers are requesting bitcoin currency to be converted to cash. Others don’t mind using bitcoin and plan to hold them. Certainly, those who accepted and held on to their bitcoin as recently as one year would have been rewarded with a very nice capital gains.
Like all transactions, using bitcoin for real estate requires a third party. Many states have licensed brokers who act as the middle man for buyers and sellers. Coinbase, Bitpay, among others, are the middle men in these transactions. All it comes down to is a simple QR code or those jumbled letters that form an address for that transaction. Like lottery numbers, the chances of a repeat code are very slim. The difference is when a transaction is complete, the code expires.
Cryptocurrency lacks regulation and this is what makes many uneasy about using it. It can be used to launder money or send money outside the country.
The IRS treats bitcoin like any other investment and capital gains is taxed when the seller sells the bitcoin and converts it to cash much like a stock, bond or real estate. In the case of investors who have made money on the currency, it is hard to track if someone is actually paying capital gains tax since there is no way to track transactions like a stock brokerage does.
Most people are still paying for real estate in the standard way. But as bitcoin gathers acceptance as a payment method, you will see more and more bitcoin acceptance everywhere.
Internation buyers are more acclimated to bitcoin. Dubai has accepted bitcoin for real estate as a standard for sometime. And people from countries with less stable currency have been using bitcoin to get the most for the money. In the U.S., bitcoin has a way to go, but from recent history, it’s getting there one day at a time.

 

Bitcoin Buying Guide – Easy 3-Step Guide to Buying Your First Bitcoin

Bitcoin Buying Guide – Easy 3-Step Guide to Buying Your First Bitcoin
By Eric Summers

Looking for a Bitcoin Buying Guide? Wondering where to start? People have a lot of misconceptions about bitcoin – the very first widely known and accepted cryptocurrency worldwide.

A lot of people think for example that only hackers and shady people use it. However bitcoin is actually going mainstream with everyone from TigerDirect to Expedia.com to Dell and even Subway accepting payments in bitcoin now.

Why so popular?

Well, bitcoin has a lot of benefits over other currencies. For example, you can send bitcoins to someone as payment without having to go through the bank middleman (and get hit with extra fees). It’s also much faster than sending money via a bank wire or transfer. You can send bitcoins to someone and have them receiving the coins in seconds.

With all of this, it’s no surprise that many people are now trying to buy bitcoin for the first time. However it’s not as easy as going to your bank and withdrawing bitcoins – or going to a store and plunking down some hard-earned cash for bitcoin.

The system works a bit differently than that. This Bitcoin Buying Guide will go over a few things you need to know before you buy – so you can buy safely and securely.

First of all, while the price might be over $2000 us per coin, you don’t have to buy an entire bitcoin. Most places will let you buy portions of a bitcoin for as little as $20. So you can start off small and go from there as you get more comfortable with the way things work.

Secondly, this article is for general purposes only and not to be taken as financial advice. Bitcoin can be risky and before making any purchase you should consult with your financial advisor to see if it’s right for you.

So here are 3 easy steps to buying Bitcoins:

#1 Get a Bitcoin Wallet

The first thing to do before you buy your coins is to get a virtual wallet to store your coins. This wallet is a string of text that people can use to send you bitcoins.

There are a number of different types of wallets including ones you download to your phone or computer, online wallets and even offline, cold storage wallets.

Most people prefer to get a wallet on their phone or computer. Popular wallets include Blockchain, Armory, Bitgo MyCelium and Xapo.

Usually it’s as simple as downloading the wallet to your phone as an app or downloading the software to your computer from the wallet’s main website.

#2 Decide Where to Buy

There are several types of places to buy and each one is a bit different. There are online sellers that will sell you bitcoins directly for cash (or bank wire or credit card).

There are exchanges where you can buy and sell bitcoins from others – similar to a stock market. There are also local exchanges that link you up with sellers in your area looking to sell.

There are also ATMs where you go to purchase with cash and get your coins delivered to your wallet in minutes.

Each bitcoin seller has their benefits and drawbacks. For example ATMs are great for privacy, but they’ll charge you up to 20% on top of the current price, which is ridiculous. (On a BTC price of $2000, that $400! So you’re paying $2400 instead of $2000).

No matter where you decide to buy, remember to do your research and go with a trusted seller with a good reputation and strong customer service. First time buyers will especially have questions and may need the extra support to help them with their first transaction.

Take your time and research the different places to buy before you decide. Factors to consider include coin prices, extra fees, method of payment and customer service.

#3 Buy Bitcoin and Move It To Your Wallet

Once you’ve found a place to buy, get your funds ready (i.e. you may send a wire transfer or use your Visa to fund your account). Then wait for a good price. (Bitcoin prices are always fluctuating 24 hours, 7 days a week). Then place your order when you’re ready.

Once your order is filled and you have your coins, you’ll want to send them to your wallet. Simply enter your bitcoin address and get the seller to send you your bitcoins. You should see them show up in your wallet within minutes to an hour (depending on how fast the seller sends them out).

Voila, you are now a bitcoin owner. You can now send coins to pay for other goods and services, or hang on to them for a rainy day.

One last thing to remember: bitcoin is still in its infancy. There are huge price swings and the currency can be risky. Never buy more bitcoins than you can afford to lose.

Want to learn more? Visit http://www.BuyBitcoin101.com for more tips, articles and guides.

Or for a list of the most trusted Bitcoin sellers with reviews of each, visit http://www.BuyBitcoin101.com/where-to-buy-bitcoins/

Article Source: http://EzineArticles.com/expert/Eric_Summers/2424822

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What Is Bitcoin? A Concise and Informative Guide

By Tamer Sameeh Sayed Mostafa

The cryptocurrency that continues to mesmerize the world, the first of its kind, Bitcoin was once entirely a classy realm of tech-geniuses who were keen to uphold the philosophy of maximizing autonomy, but Bitcoin has a shot to fame with the promise of a wide consumer base. Yet, to the uninitiated consumers, a query remains. So, exactly what is Bitcoin? Some are really yet to unravel this overly fluctuating cryptocurrency. Generated and stored electronically, Bitcoin is actually a form of digital currency. The network can’t actually be controlled by anyone, the currency is decentralized. It came into being in 2009, as a brainchild of an individual with the assumed name of Satoshi Nakamoto. Utilizing the P2P technology to function, Bitcoin has the distinctive and flexible feature to engulf anyone who’s interested. Its worldwide acceptance is a feature that adds to its popularity.

With no accountability to anyone, Bitcoins are fairly unique. Bitcoins are sovereign with their distinct rules, and aren’t printed in a clandestine manner by any bank but mined, they’re produced digitally by a good number of people involved in a colossal network or community. Miners usually employ enormous computing power, and a great deal of competition is involved in Bitcoin mining. Computers work to solve complex mathematical problems. The competing miners also have a prospect to earn Bitcoins in the process, by just solving the problem. Although, difficulty levels of these problems are becoming intense day by day. Transactions at the Bitcoin network are relentless and incessant, and keeping track of those transactions is fairly systematic. Bitcoin network keeps it methodical, as during a given time span, all transactions are collected in a block. The miners are supposed to validate transactions, and everything is listed in a general ledger, which is simply a collection of blocks, termed as blockchain. Blockchain actually holds the key to the details of any transaction made across various Bitcoin addresses.

Bitcoin integration into people’s lives is the most coveted thing right now. This is achieved quite easily by the emergence of exchanges. Bitcoin enthusiasts can have a great deal of choices when they are looking to acquire this digital currency. A Bitcoin exchange enables consumers to buy or sell Bitcoins by making use of fiat currencies. Exchanges are in abundance, but initially Mt. Gox was the most reputed and extensively used, prior to its collapse. With exchanges, consumers can purchase or sell Bitcoins with wired transfers, cash or credit/debit card payment. A real-time as well as secure trading platform is offered by the exchanges. Enthusiasm and a relentless frenzy always accompanies Bitcoins. With numerous enthusiasts who are keen to trade Bitcoins, the young currency and all the craze surrounding it seems to grow a little bit every day. All the knowledge associated with it seems to be as important as the currency itself. The significance of a “Bitcoin wiki”, an autonomous project, cannot be denied at all. It will act as a storehouse of knowledge for Bitcoin enthusiasts all around the world.

Newsbtc, a leader in Bitcoin news service, is a trusted name offering you an access to indispensable knowledge regarding Bitcoins. Be conversant with the latest news on any emergent Bitcoin exchange and sharpen your trading skills.

Article Source: http://EzineArticles.com/expert/Tamer_Sameeh_Sayed_Mostafa/506755

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An Overview of Bitcoin Exchange

An Overview of Bitcoin Exchange
By Emma A John

Technology is progressing by leaps and bounds. It is introducing new terms and systems for business and communications on a daily basis. Internet has made a large contribution in this advancement; especially when it comes to the field of business. Online trading or online currency trade has recently attracted many traders. One of the common forms on online trading is Bitcoin Exchange.

What is Bitcoin?

Bitcoin exchange is a new system of money for the internet that works on the concept of digital currency. It initializes the peer to peer payment system for individuals having no central authority. A new concept of crypto currency is used that was initially introduced in 1998. Cryptography controls the creation and transactions of digital money. Bitcoin works through a software system and does not have any central controlling authority so it is equally managed and controlled by its users around the globe.

Working of Bitcoin Exchange

One can work with Bitcoin exchange just like it works with any other kind of currency exchange. Just like working with banks, it is easy to make transactions through Bitcoin Exchange. Analogous to physical trade, the user has to pay to purchase Bitcoins. The difference is that the person has to open an account with some Bitcoin Exchanger. The paid asset of the user will be available in the form of digital currency that can be used to purchase any kind of product. Bitcoins can be exchanged with other bitcoin holders too. This system works similar to the money exchanges in the banks.

Making transactions

Almost in all payment systems, the payments can be reversed after making a transaction through PayPal or credit cards. But with Bitcoin, the situation is changed, as after making a transaction, one cannot get it back or reverse it. So be careful while exchanging your bitcoins with currency mediums because you may face chargeback issues. It is preferable to make exchanges with other bitcoin holders near to you.

Benefits of Bitcoin Exchange

Bitcoin currency exchange is quite new. It’s a sort of software base payment system where you make transactions digitally. Here is how it can benefit you:

� Make transactions quicker than other systems

� Always availability for transactions

� Make transactions from anywhere in the world

� Make safer transactions

� Perform transactions without interference of any third party

� Monitor all transactions from home PC or from Smartphone

� Purchase any kind of asset using bitcoin

Drawbacks of Bitcoin

Bitcoin exchange is an innovation in economical systems of the world. When practically used, some drawbacks come forward too. Some of them are as follows:

Acceptance in market

The number of bitcoin users is growing but still it is not a widely used currency or exchange system. Its level of acceptance in financial matters is still low.

Instability

As Bitcoin is not commonly used, it is not a stable currency. However, there is a hope that this instability will reduce as the user list and amount of bitcoins in the market become more readily used.

Partial development

A big problem is that the Bitcoin software is still in its beta phase and there are a number of imperfect features, which still need to be fixed. New modules are under process of development to make bitcoin exchange safer for all.

If you want to learn about bitcoin exchange please visit http://www.forexminute.com/

Article Source: http://EzineArticles.com/expert/Emma_A_John/1444923

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How To Buy Bitcoin

Bitcoin is quietly becoming the new standard payment. $20 of bitcoin in 2008 would be worth over $20,000,000 today. It’s here and probably to stay. Bitcoin is digital currency. Presently over 100,000 merchants accept bitcoin. To spend bitcoin you need to have some bitcoin. But how do you buy bitcoin?
Buying bitcoin is done in a series of steps. You need a wallet. This is a virtual wallet or place your bitcoin will be stored. Some places like Coinbase have everything in one place. You can buy bitcoin, store bitcoin and send bitcoin to vendors in one place. All transactions for all bitcoin is done through a QRCode or those funny looking letter/number codes that are completely encrypted for privacy. No one knows who these addresses are related to. And that’s the magic of cryptotechnology where transactions are encrypted and not transparent.
Another way to get bitcoin is through peer to peer exchanges. Sites like Paxful will hook buyers up with sellers and have a meeting of the minds to make an exchange. First you have to have an account with your wallet. There are various ways to buy at Paxful including person to person. This is way is using a service like Western Union. The seller agrees to go to Western Union and send bitcoins to the person interested in buying them for an agreed price. The buyer goes to Western Union to send the money.
The fastest transaction at Paxful is through the gift card. No information is sent other than the receipt and picture of the physical card. After checking the card that it’s not been used previously and that it’s exact amount, the money is released in the seller’s wallet at Paxful. And the bitcoin is released to the buyers wallet. No names, ids, or anything else is exchanged. For those looking for anonymity, this is the way to go.
Check out Coinbase and Paxful for other ways to buy bitcoin too. Mastercard, Paypay and bank transfer are also ways to buy bitcoin as well.
Bitcoin is changing the way we do business.

Merchants Who Accept Bitcoin

Bitcoin has been making mighty inroads in the world of currency since launched nearly ten years ago. There are over 100,000 merchants who accept bitcoin. It seems like the Discover card. And before you know it, it becomes an established way to make transactions. Below is list of merchants who accept bitcoin:

  • WordPress.com – An online company that allows user to create free blogs
  • Overstock.com – A company that sells big ticket items at lower prices due to overstocking
  • Subway – Eat fresh
  • Microsoft – Users can buy content with Bitcoin on Xbox and Windows store
  • Reddit – You can buy premium features there with bitcoins
  • Virgin Galactic – Richard Branson company that includes Virgin Mobile and Virgin Airline
  • OkCupid – Online dating site
  • Namecheap – Domain name registrar
  • CheapAir.com – Travel booking site for airline tickets, car rentals, hotels
  • Expedia.com – Online travel booking agency
  • Gyft – Buy giftcards using Bitcoin
  • Newegg.com – Online electronics retailer now uses bitpay to accept bitcoin as payment
  •  Wikipedia –  The Free Encyclopedia with 4 570 000+ article
  • Steam – Desktop gaming platform
  • Alza – Largest Czech online retailer
  • The Internet Archive – web documatation company
  • Bitcoin.Travel – a travel site that provides accommodation, apartments, attractions, bars, and beauty salons around the world
  • Pembury Tavern – A pub in London, England
  •  Old Fitzroy – A pub in Sydney, Australia
  • The Pink Cow – A diner in Tokyo, Japan
  • The Pirate Bay – BitTorrent directories
  • Zynga – Mobile gaming
  • 4Chan.org – For premium services
  • EZTV – Torrents TV shows provider
  • Mega.co.nz – The new venture started by the former owner of MegaUpload Kim Dotcom
  • Lumfile – Free cloud base file server – pay for premium services
  • Etsy Vendors – 93 of them
  • PizzaForCoins.com – Domino’s Pizza signed up – pay for their pizza with bitcons
  • Whole Foods – Organic food store (by purchasing gift card from Gyft)
  • Bitcoincoffee.com – Buy your favorite coffee online
  • Grass Hill Alpacas – A local farm in Haydenville, MA
  • Jeffersons Store – A street wear clothing store in Bergenfield, N.J
  • Helen’s Pizza – Jersey City, N.J., you can get a slice  of pizza for 0.00339 bitcoin by pointing your phone at a sign next to the cash register
  • A Class Limousine – Pick you up and drop you off at Newark (N.J.) Airport
  • Seoclerks.com – Get SEO work done on your site cheap
  • Mint.com – Mint pulls all your financial accounts into one place. Set a budget, track your goals and do more
  • Fancy.com – Discover amazing stuff, collect the things you love, buy it all in one place
  • Bloomberg.com – Online newspaper
  • Humblebundle.com – Indie game site
  • BigFishGames.com – Games for PC, Mac and Smartphones (iPhone, Android, Windows)
  • Suntimes.com – Chicago based online newspaper
  • San Jose Earthquakes – San Jose California Professional Soccer Team (MLS)
  • Crowdtilt.com – The fastest and easiest way to pool funds with family and friends
  • Lumfile – Server company that offers free cloud-based servers
  • Museum of the Coastal Bend – 2200 East Red River Street, Victoria, Texas 77901, USA
  • Gap, GameStop and JC Penney – have to use eGifter.com
  • Etsy Vendors – Original art and Jewelry creations
  • Fight for the Future – Leading organization finding for Internet freedom
  • i-Pmart (ipmart.com.my) – A Malaysian online mobile phone and electronic parts retailer
  • curryupnow.com – A total of 12 restaurants on the list of restaurants accept bitcoins in San Francisco Bay Area
  • Dish Network – An American direct-broadcast satellite service provider
  • The Libertarian Party – United States political party
  • Yacht-base.com – Croatian yacht charter company
  • Euro Pacific – A major precious metal dealer
  • CEX – The trade-in chain has a shop in Glasgow, Scotland that accepts bitcoin
  • Straub Auto Repairs – 477 Warburton Ave, Hastings-on-Hudson, NY 10706 – (914) 478-1177
  • PSP Mollie – Dutch Payment Service
  • Intuit – an American software company that develops financial and tax preparation software and related services for small businesses, accountants and individuals.
  • ShopJoy – An Australian online retailer that sells novelty and unique gifts
  • Lv.net – Las Vegas high speed internet services
  • ExpressVPN.com – High speed, ultra secure VPN network
  • Grooveshark – Online music streaming service based in the United States
  • Braintree – Well known payments processor
  • MIT Coop Store – Massachusetts Institute of Technology student bookstore
  • SimplePay – Nigeria’s most popular web and mobile-based wallet service
  • SFU bookstore – Simon Fraser University in Vancouver, Canada
  • State Republican Party – First State Republican Party to accept bitcoin donations (http://www.lagop.com/bitcoin-donate)
  • mspinc.com – Respiratory medical equipment supplies store
  • Shopify.com – An online store that allows anyone to sell their products
  • Famsa – Mexico’s biggest retailer
  • Naughty America – Adult entertainment provider
  • Mexico’s Universidad de las Américas Puebla – A major university in Mexico
  • LOT Polish Airlines – A worldwide airline based in Poland
  • MovieTickets.com – Online movie ticket exchange/retailer
  • Dream Lover – Online relationship service
  • Lionsgate Films – The production studio behind titles such as The Hunger Games and The Day After Tomorrow
  • Rakutan – A Japanese e-commerce giant
  • Badoo – Online dating network
  • RE/MAX London – UK-based franchisee of the global real estate network
  • T-Mobile Poland – T-Mobile’s Poland-based mobile phone top-up company
  • Stripe – San Francisco-based payments company
  • WebJet – Online travel agency
  • Green Man Gaming – Popular digital game reseller
  • Save the Children  – Global charity organization
  • NCR Silver – Point of sales systems
  • One Shot Hotels – Spanish hotel chain
  • Coupa Café

  • PureVPN – VPN provider

  • That’s My Face– create action figures
  • Foodler – North American restaurant delivery company
  • Amagi Metals – Precious metal furnisher

China Bitcoin Users Turn to Peer To Peer Exchange

Chinese bitcoin market is far from over. Since China has banned fundraising through cryptocurrencies and ordered several bitcoin exchanges to shut down, though it cast a spell over the bitcoin industry, it is far from over. Bitcoin has rebounded and there is shift to the peer to peer exchange like Paxful where buyers and sellers get together and exchange bitcoins for gift cards.
Peer to peer exchanges are flourishing with a massive surge in transactions. People are using these exchanges as well as messenger apps. Cryptocurrency insiders say there are still initial coin offerings.
The crackdown has stopped the flow of less experienced investors though. Those who only read about bitcoin may decide it’s too risky an investment. But bitcoin enthusiasists see the privacy aspect, everything is done via QR code, and know the bottom line is that it’s very hard to track transaction and most users are using handles for names.
This has created a short term investment opportunity for investors with bitcoin in China trading at a discount to exchanges outside of China.
Many Chinese bitcoins users are turning to overseas exchanges. Paxful, as noted, has seen a surge in transactions. They are not alone. Other peer to peer exchanges are flourishing. It looks like bitcoin is here to stay for the moment and this might give some resilience to the cryptocurrency after the China ban.
Over 15 exchanges have announced closing their businesses by the end of September. This is in response to the Chinese government ordering ICOs to cease and cryptocurrencies to shut down.
Bitcoin in China is still trading at a discount to other foreign exchanges. Recently on the China market it was around $3600 compared to $4200 on the U.S. exchange.
The fact that bitcoin is still trading in China is showing that China doesn’t want to eliminate bitcoin but find a way to have some control over bitcoin industry. On the dark side, bitcoin is a great way to launder money without a trace, for example.