Bitcoin Regulation Vultures Circling

Many may believe that the sudden apparently positive attitude towards Bitcoin by governments and regulators is a positive development – but is it? Regulators are desperate to regulate Bitcoin while it is still in its early days so they can take full control as it evolves, taking away most of the value of Bitcoin in the process as a fully open source, distributed, peer to peer monetary system.

 

Any step down the road to regulation would clearly be very negative for Bitcoin, but ultimately can Bitcoin be regulated?

 

It is of course impossible to regulate Bitcoin itself through its very nature and the regulators are beginning to understand this. The regulators also know that by acting oppressively towards Bitcoin any chance of regulation and control will be diminished as the Bitcoin community takes evasive action. The only locations where Bitcoin can be regulated and therefore controlled are the decentralised exchanges, web based wallets, shops and services.

 

Regulated exchanges and web based wallets will no have to collect full photo ID and proof of address from users as an absolute minimum, and possibly other personal information as well. Further, the exchange will be compelled to divulge such personal information to the regulators or government agencies on demand, even for false reasons as happens now, simply to fish for information on someone. Government agencies will also have the power to freeze and cease Bitcoin accounts on a whim. It is also quite likely that exchanges and web based wallets will be secretly compelled to share user data with government agencies, NSA and others. Some might even be wondering if the crypto market has an affect on the real diamonds market, like the online shop Harry Chadent.

 

None of this can possible impact Bitcoin or the Bitcoin network itself per se, it will influence the way Bitcoin is used and accepted in the mainstream if users believe that they have to use a Bitcoin exchange and thus lose privacy and many of the benefits of using Bitcoin in the first place.

 

Of course ultimately every Bitcoin user has freedom of choice as to whether to use an exchange or web based wallet or not, and like security issues this is a matter for user education about the pro’s and con’s of using a Bitcoin exchange. Bitcoin users must also understand that it enforces personal responsibility in that is they make a mistake or error of judgement, they can lose Bitcoin without the possibility of having the transaction reversed or running to a regulator to complain. It might be that some Bitcoin users are not prepared to accept that responsibility and would prefer to be regulated for that reason – if so – that is there decision and responsibility.

 

New York is now actively accepting applications for Bitcoin and other crypto-currency exchanges in its area of jurisdiction. While this may seems like a Bitcoin friendly and welcoming development, comments by the New York Superintendent Of Financial Services betray the real agenda:

 

The recent problems at Mt. Gox and other firms further demonstrate the urgent need for stronger oversight of virtual currency exchanges, including robust standards for consumer protection, cyber security, and anti-money laundering compliance.

 

And:

 

Turning a blind eye and failing to put in place guardrails for virtual currency firms while consumers use that product is simply not a tenable strategy for regulators.

 

So it should be obvious that he is not welcoming Bitcoin exchanges because he believes in Bitcoin itself and wants to encourage its wider use, but rather by encouraging Bitcoin exchanges to set up shop in his jurisdiction, he can fully control both the exchanges and the people that use them. So this is a very slippery slope indeed and one that is negative for Bitcoin overall.

 

What then is the answer to this situation? The answer is threefold.

 

  1. The development of effective and seamless peer to peer exchanges that enable users to easily convert Bitcoin to fiat and vice versa without ever being exposed to a centralised exchange and therefore regulation and loss of privacy and anonymity.

 

  1. Educating Bitcoin users as to the implications of using a centralised exchange versus a decentralised peer to peer exchange.

 

  1. Educating users in how to use Bitcoin effectively and securely and thereby take full personal responsibility for their own actions and transactions.

 

The future success of Bitcoin globally ultimately lies on keeping Bitcoin true to its roots as a fully distributed, peer to peer, anonymous global monetary system, for the people, by the people, without any external interference by governments, banks or other self-interested entity.

Bitcoin Market Report: 9 May 2014

After sliding well below the $431 support level for a time on 6 May, the market staged an impressive recovery back above the support level, and went on to test resistance at $452. Since then BTC has been meandering between support and resistance in an impressive show of resilience and increasing volume.

 

Although the medium down trend remains in place until it is formally broken, which would currently be at around $450, the market is currently showing reluctance to trending any lower.

 

There was a time on 6 May when the exchange rate had broken well below support at $431, on the precipice of plunging much lower, below $300 and possibly even as low as $250. A very strong wave of buying came in to the market on 7 May, lifting the exchange rate all the way back to the exact resistance level of $452. Since then the exchange rate is forming a new range with interim support at $439 and resistance remaining at $452.

 

The new strength in the market is particularly impressive considering there was news from China of two more exchanges having banking facilities relating to Bitcoin restricted, with a final deadline from the Peoples Bank of China to be in full compliance by 10 May. In past weeks this news would have shaken the market, but this time it had almost no effect whatsoever. If the 10 May deadline by PBoC comes and goes without further market reaction, it is reasonable to conclude that the China effect that has blighted the Bitcoin market for so long will finally be over and behind the market.

 

Elsewhere the positive news continues to flow unabated on all fronts. While we cannot know the precise implications of each individual piece of news, taken collectively the future of Bitcoin is being reinforced on all almost fronts. The notable area where considerable work needs to be done is in mainstream consumer awareness. While a few months ago the general public was prepared to be open minded about and even welcome Bitcoin, the Mt. Gox debacle and the extremely prejudiced and inaccurate mainstream media reporting that followed it seriously damaged the credibility and public opinion of Bitcoin generally. Consequently Bitcoin largely remains in the hands of the original loyal following who are much more technically able to understand and use Bitcoin.

 

Before Bitcoin is ready for prime time and the mainstream various issues need to be addressed and are being addressed. The main ones are these:

 

  1. Ease of use: The general public are not technical and have no wish to be technical. Only a minute percentage of people can use a personal computer to its maximum capability, the majority content to know how to switch the PC on, surf the web and load and use a few programs in a basic way. Bitcoin must be at least as simple to use as online banking, Paypal and in particular a credit card with all security in place. Most wallets today are too complex for the majority especially with the need for two factor authentication, multi-sig etc. There is a big future for Bitcoin enabling companies and technologies such as for example the Bitcoin hardware wallet Trezor, a forerunner of such technologies. The general public are also extremely lax when it comes to backing up valuable data, often losing it sooner or later due to hard disk failure for example, so secure and simple backing up of wallets and Bitcoin related data also has large growth potential.

 

  1. Security: This is a huge issue with Bitcoin stealing trojans appearing at an alarming rate. Bitcoin is frequently being stolen from even experienced users, so the general public have no chance unless Bitcoin is made theft proof and simple to use at the same time. While “two factor authentication” and “multi-signature” are viable solutions, they still need to be usable by the majority, which again is where hardware solutions such as the Trezor come in.

 

  1. Exchange: Bitcoin needs to be able to be exchanged easily to and from Bitcoin and fiat currency as easily and conveniently as other currencies. Bitcoin exchanges are probably not the future therefore but an interim solution. The future must be in decentralised peer to peer exchanges and in particular Bitcoin ATM’s. Exchanges may still have a role in corporate type services.

 

Bitcoin Market Outlook

The market remains in the grip of the medium term down trend characterised by most players sitting on the sidelines and leaving BTC at the mercy of the short traders selling in to the down trend.

 

All it will take is the down trend to be broken to cause the shorts to cover Once a new up trend is established the previous short players will go long, and all those sitting on the sidelines waiting to buy in to the next phase of the bull market will do so. Taken with the ongoing flow of positive news it is quite likely that once a new bull market is established the exchange rate will move upwards rapidly, reclaiming much of the ground lost to the bears this year.

 

On the charts, the $450 area has now assumed even more significance, now being not only the resistance level, but also the point at which the exchange rate can break up through the trend line.

 

$452 is therefore shaping up to be the last major battle ground between bulls and bears, the prize being a new dynamic phase of the long term bull market. This next week will be crucial in this process.

Three various aspects of using cryptocurrency!

If you are one of them who are looking to invest your money to get the best of returns from the same investment, then you need to invest your money in the digital money like cryptocurrency. It is one particular virtual money which allows you to invest your money in the most secure rest way with the great Returns. All you need to visit some particular online websites which offer this sort of money for the investment schemes.

In addition to that, I would like to share some three various aspects of investing your money in the digital currency like a cryptocurrency which will help you to understand the importance of using the virtual money these days in the modern world.

Decentralized banking

    1. Cryptocurrency is the part of the decentralized banking system, and you cannot visit any particular Bank to buy the same sort of money for the investments in life. You need to visit some great websites with the help of your mobile phone and laptop straight away from your home to buy virtual money for all the great Investments.
    2. It also gives you some luxury to invest your money in the most cutest way for the fabulous returns straight away from your home. Nowadays, the grace of investing money in the Bitcoins is also increasing day by day, and you can also invest your money in the same Bitcoin system, which is almost possessed by every investor of the world.

Experts

    1. Many experts confirm that it is the best way to invest your money in the cryptocurrency which not only provides you with the excellent security but also gives you the opportunities of getting good returns in the shape of real-time money in your bank account straight away, so if you’re looking to invest, make sure to use a reputable cryptocurrency exchange.
    2. Financial experts always give emphasize on investing the money in the youngest investment schemes like Bitcoins, where many persons are regularly earning the right amount of money with a little investment in the same digital money.
    3. You can always make good profits with the help of digital money by selling it over the online again, which provides you with some extra advantage of making money from the same sources without any much difficulties and worries.

Shopping

    1. It is not that you can only get returns with the help of cryptocurrency you can always buy some special items with a more significant discount from the online sources with the same salt of online money. You can visit some particular websites which offer a variety of items which you can always buy with the help of the same cryptocurrency with massive discounts.
    2. So it is always a great advantage of having some special money which not only provides you great investment offers but also gives you the opportunity of buying such items which you can’t with the right amount of discounts to save your virtual money for the other aspects of life.

Three things mentioned above about the uses of cryptocurrency provides you with some special information which is only necessary to get before investing your money in the same digital world.

Cryptocurrency- a great way to invest money in a digital way

 

Today is the world of the internet where you need to use the same assistance to perform several kinds of things in your day to day life. We are using online help while working in multinational companies or making any particular transaction for the shopping websites. That is why nowadays many persons also start investing their money in the cryptocurrencies, which is the most secure way of buying digital money to invest in the various aspects of life.

Cryptocurrency is special virtual money which does not possess is any centralized banking system, and you can tell by the same sort of money from the online sources by sitting at your home over your laptop for mobile phone. All you need to visit the particular website which offers cryptocurrencies on a wide scale for all the significant investments in life.

Good returns

  1. Digital money always offers you good returns, significantly if you are investing some part of your money in the Bitcoin system. It is one particular procedure of investing money which allows you to get a significant number of rewards in the shape of real-time money
  2. Nowadays, many investors are now starting investing in the Bitcoin money system, which allows them to invest their virtual money in the most security with all the great Returns.
  3. Nonetheless, you can also buy the same type of money from the local market sources by contacting some person who already possesses Bitcoin or any other digital money in their wallets.
  4. This will help you to get some exceptional experience from the same person who is already having the same sort of money from the last few days. You can quickly get all the specific details about the things which he experiences after buying the digital currency from the online market sources.

Possesses decentralized banking system

    1. It is one particular money which possesses decentralized banking system. I mean you cannot visit any physical banking sectors to buy online money, and you need to visit only specific websites to have cryptocurrency in your wallets. But there is an excellent advantage of buying money from the online sources because it shows you the best of security which you can’t get with the help of real-time money.

Online information

  1. Many useful online websites offer a decent amount of information about the availability and the uses of cryptocurrency in the new world. You can quickly get a decent amount of help in understanding the ways of investing your money in the cryptocurrency with the help of watching some particular videos available over the YouTube channels.
  2. Many famous investors always upload addition to videos to help all those people who want to understand all the importance of using the money in the cryptocurrency.

Conclusion

By concluding my words, I would say that all the above lines about the uses of cryptocurrency provide you decent amount of information which you need to acquire before carrying out to buy the same sort of money from the online sources.

Importance of buying the cryptocurrency explained!

 

Today is a modern-day world where most of the things are available over the online sources, and you don’t need to go anywhere out of your house to perform such activities which are directly affect your life. Cryptocurrency is also an exceptional help available over the online sources, which provides you with a tremendous amount of assistance in buying various items from the various websites with your convenience and security. Once you make a decent amount of money via trading, you might need the help of sell house realtor so you can start building your dream home.

Investing your money in the cryptocurrency is always going to provide you with a tremendous amount of rewards which you always entertain to expand your life expenses. In addition to that, I would like to explain some points which will help you to understand the importance of buying the cryptocurrency in today’s life.

Best way to invest 

  • Investing your actual money in the digital currency like cryptocurrency is always beneficial. There is always a risk of losing money, especially when you are going out and your pocket robbed by any thief on the way.
  • But if you possess cryptocurrency, then you don’t need to worry at all about the robbery aspects, and you can easily transact all your money for the shopping over the online sources or anywhere else in the world with all the outstanding securities.
  • Bitcoins are also part of the cryptocurrency and if you invest some amount of money in the Bitcoin and then there is always a great chance of having great rewards in the shape of real-time money.
  • Many investors are now getting attracted by the Bitcoin just because the market of the Bitcoin is very young and there is always a great scope of making good money with all the little Investments.

Buying option

  • To buy the digital money like cryptocurrency, you need to visit some particular online websites which offer all the virtual money on a wide scale.
  • You need to complete some necessary formalities which are usually asked by every website offers Bitcoins, and another cryptocurrency is which always helps you to attain this counterfeit currency to invest your money in the various aspects of life with the more significant securities.
  • You can also contact some persons who are already having some cryptocurrencies from which you can buy some particular coins for the investments. But the amount which you need to pay a while buying the cryptocurrency from unknown sources may be different as it was available over the online sources.

Decentralized money

  • Cryptocurrency is one particular money which possesses a decentralized banking system means you cannot visit any particular physical Bank to buy cryptocurrency from the local market sources. You need to visit only online sources to have particular digital money in your pocket.
  • However, even if it doesn’t processes are centralized banking system you still are getting most of the security features which you even can get with the real-time available in the central banking systems of the town. So these are the few things which help you to understand the importance right now possesses by the cryptocurrency in this very world.