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Bitcoin Vs Banks

Bitcoin Gets Bashed By Banks

Bitcoin Gets Bashed By Banks

A vertical stack of three evenly spaced horizontal lines. * Copyright 2018 Business Insider Inc. All rights reserved. Registration on or use of this site constitutes acceptance of our facebook linkedin twitter email copy link This story was delivered to BI Intelligence " Fintech Briefing " subscribers. To learn more and subscribe, please click here . Amid results season, the CEOs of UBS, Bank of America (BofA), and China Renaissance expressed their views on Bitcoin, the cryptocurrency that has seen its price rise astronomically since the start of the year amid high investor demand. Despite the CEOs all expressing enthusiasm about blockchain, the technology which underpins Bitcoin and which is seeing an increasing number of use cases evolve in the financial services industry, they nevertheless also expressed several concerns about the cryptocurrency itself. The banks criticized Bitcoin both as a method of payment and as an asset class. UBS CEO Sergio Ermotti called out Bitcoin's still-gray legal status , while Brian Moynihan, CEO of BofA, also said that the anonymity Bitcoin grants its users makes transactions hard to track, and therefore sometimes impossible to verify if they're above board. This suggested that both banks are wary of dealing in Bitcoin because of the risk of falling afoul of anti-money laundering (AML) and know your customer (KYC) regulations. China Renaissance's CEO Fan Bao , meanwhile, stated that Bitcoin is headed for a bubble, as more and more amateur investors pour money into the asset class. Big banks will probably only reverse their position on Bitcoin following regulatory change. While we're seeing smaller banks and a growing number of asset managers agreeing to give their clients exposure to Bitcoin, big banks will likely need much more convin Continue reading >>

Bitcoin Futures End Below $8,000 After Another Bank Ban On Credit-card Buying Hits

Bitcoin Futures End Below $8,000 After Another Bank Ban On Credit-card Buying Hits

Bitcoin futures end below $8,000 after another bank ban on credit-card buying hits Lloyds ban is another sign of tightening on crypto trading The cryptocurrency selloff got a reboot on Monday, as bitcoin pushed below $8,000 on news a major U.K. bank had banned purchases of digital currencies via its credit cards. Bitcoin BTCUSD, -2.29% traded as low as $6,200, tumble of about 69% from its December peak, leaving it at levels not seen since late November. Read: Bitcoin plummets below $7,000, hits 2-month low Late Monday, the total market value of bitcoin stood at around $292 billion, according to CoinMarketCap . Meanwhile, Ether coins on the Ethereum blockchain lost a quarter of their value to $618, trading at levels not seen since the start of the year. Ripple coins shed 22% to change hands at 62 cents, and Litecoin dropped 23% to around $115, according to CoinMarketCap. Fears of tighter regulation on trading of cryptocurrencies around the world have helped drive the selloff, with fresh concerns cropping up on Monday via news from U.K. banking giant Lloyds Banking Group LYG, +0.85% LLOY, +1.08% . Across Lloyds Bank, Bank of Scotland, Halifax and MBNA, we do not accept credit card transactions involving the purchase of cryptocurrencies, said a Lloyds Banking Group spokesperson. Its a case of protecting our credit card customers from the risks associated with the price volatility of cryptocurrencies, said the spokesperson, in emailed comments. The move comes after several bank and card issuers, including Bank of America Corp. BAC, +0.34% , said they would be reviewing their policies around the buying of crypto assets using credit cards. Capital One Financial Corp. COF, +1.30% banned customers from using credit cards to purchase bitcoin or coins on the Ethereum blockchain, Continue reading >>

Why Big Banks Attacked Bitcoin

Why Big Banks Attacked Bitcoin

Opinions expressed by Forbes Contributors are their own. Big Banks want to destroy Bitcoin before it destroys them. Bitcoin, the peoples currency, has the potential to become a new currency, free of the control of big governments and big banks. Thats why they both want to limit this potential. Each one in their own way. Big governments by stepping up regulations of Initial Coin Offerings (ICOs) and by shutting down cryptocurrency exchanges, as the Chinese government has announced recently, crushing cryptocurrencies. Big banks by attacking the very premise and the valuation of Bitcoin. Early in the week, for instance, J.P. Morgan Chase & Co. leader Jamie Dimon called the digital currency a fraud, and a tulip bulb. Then theres a Bank of America survey , which called Bitcoin, the most crowded trade. To be fair, bankers arent the only ones that have raised their level of skepticism about the rapid ascend of Bitcoin and other digital currencies. But to call the digital currency a fraud and a tulip is more than skepticism, in my opinion. It undermines the potential of Bitcoin to become a peoples currency, and replace national currencies. Continue reading >>

Citgroup, Bank Of America Ban Bitcoin Credit Card Purchases | Digital Trends

Citgroup, Bank Of America Ban Bitcoin Credit Card Purchases | Digital Trends

Posted on February 5, 2018 - 9:55AM 2.5.18 - 9:55AM As Bitcoin hodlers brace against the storm of the biggest cryptocurrency crash in recent memory, banks in the United States and United Kingdom have taken steps to prevent customers from getting in over their heads. A number of financial institutions have now banned the use of credit cards for purchasing Bitcoins, meaning potential investors will need to resort to other means to purchase their cryptocurrency. Bitcoin and altcoins like Litecoin and Ethereum became vogue investment purchases at the tail end of 2017when a wave of mainstream attention saw prices increase by tens, if not hundreds, of percent in just a few short weeks. That latest bubble eventually burst towards the end of December, with Bitcoin itself reaching near $20,000 per token before the crash. It then tumbled by thousands of dollars in the weeks that followed, dragging most other cryptocurrencies down with it. With Bitcoin now having fallen to less than $7,500, its lowest price point since early November last year, Chase, Bank of America, and Citigroup have all banned the use of credit cards for buying Bitcoins. In the U.K., Lloyds group banks have done the same, including Bank of Scotland, Halifax, and MBNA. Although this may stop some banking customers getting into hot water, the move is more to prevent lenders from being hit by this latest crypto-crunch. As Bloomberg reports , customers overspending in expectation of quick returns could leave banks in the lurch if they cant repay. Similarly, there is concern over stolen credit cards being used to buy cryptocurrency, which is often hard to twin with its real-life owner. As much as those banks are taking steps to create some moderate separation between their services and Bitcoin, not all banks are d Continue reading >>

Can Bitcoin Kill Central Banks?

Can Bitcoin Kill Central Banks?

By James E. McWhinney | May 7, 2015 1:58 PM EDT Bitcoin is a digital currency that, in the words of its sponsors, uses peer-to-peer technology to operate with no central authority or banks. By its very definition Bitcoin seems well positioned to kill off central banks . Could it? Would it? Should it? Like just about everything else involving finance, the topic of central banks and their potential replacements is complex with valid arguments for and against. Perspective: Central Banks Play an Important Role The digital era may be taking aim at central banks, bit it has not yet managed to kill off the trusty Encyclopedia Britannica, so we turn to the venerable reference to learn that central banking can be traced back to Barcelona Spain in 1401 . The first central bank, and those that followed in its wake, often helped nations fund wars and other government-supported initiatives. The English refined the concept of central banking in 1844 with the Bank Charter Act, a legislative effort that laid the groundwork for an institution that had monopoly power to issue currency. The idea being that a bank with that level of power could help stabilize the financial system in times of crisis. Its a concept that many experts agree helped stave off disaster during the 2007-2008 financial crisis (for more information, read The 2007-08 Financial Crisis In Review ) and the Great Recession that followed. Today, modern central banks play a variety of roles. The U.S. Federal Reserve , for example, is tasked with using monetary policy as a tool to do the following: Maintain full employment and stables prices Ensure the safety and soundness of the nation's banking and financial system and enable consumers to access credit Stabilize the financial system in times of crisis Help to oversee the Continue reading >>

7 Reasons Why Bitcoin Is Better Than Banking

7 Reasons Why Bitcoin Is Better Than Banking

7 Reasons Why Bitcoin is Better than Banking - Crypto Hustle 7 Reasons Why Bitcoin is Better than Banking Peer-to-peer technology is placing more power in the hands of individuals and Bitcoin is a serious upgrade to our money. Decentralization is Bitcoins killer app and there are several things it can do better than traditional banking. Access to banks and credit cards are entirely at the discretion of the banks. There are over a billion people in the world who dont have access to a bank account. Other people are flat out rejected from opening an account. Opening a bank account or applying for a credit card requires filling out long forms and signing contracts that never work in your favour. Bitcoin is free to use and accessible to anyone without limitations. Fiat operates through fractional reserve banking which means that not everyone can access their money at the same time. For this reason banks need to limit purchases and withdrawals with daily spending limits. Bitcoin doesnt have any spending limits which means you can send as much money as you need. Doesnt this make better sense than being told how much of your hard earned money youre allowed to spend? Have you ever had to wait several days for a bank wire to clear?Although domestic settlements within the same jurisdiction has become more efficient, international trade between banks still has a time delay. With Bitcoin, transactions are received instantly and it usually only takes an hour for proper confirmation. The current banking system is outdated and even if they could settle instantly theyd likely still hold on to your money to turn a profit on investments. Since banks are a permissioned system, your funds are not always available to you. In fact, there are many historical examples of bank runs when deposit Continue reading >>

Bitcoin Vs. Banking: An Infographic

Bitcoin Vs. Banking: An Infographic

Join our community of 10 000 traders on Hacked.com for just $39 per month. Theres no denying that Bitcoin is changing the way we think about the financial market and investors are finally getting on board. Companies that specialize in buying and selling gold have made announcements that they will be expanding into Bitcoin . According to Richard Waters, a writer in the Financial Times, reported A-Listers in Silicon Valley are climbing onto the bitcoin bandwagon. Perhaps even more notable is what Hikmet Ersek, the CEO of Western Union, had to say during an interview with Bloomberg. Mr. Ersek expressed a willingness to accept Bitcoin into Western Unions portfolio if, and thats a big if, bitcoin becomes regulated like other currencies. Right now Bitcoin transactions are equal to only 0.7% of the credit card transaction in the U.S alone. There is still plenty of room for cryptocurrency to grow into. In 2013, there were $11.2 billion dollars worth of transactions in the U.S per day, compared to bitcoins $78.2 million worldwide. That number is up 183% from last year and a whopping 437% from two years ago. Credit Cards go through four processes before a transaction is approved while bitcoins go through only three. If you store your money in a traditional bank, you risk bank runs, inflation and deflation due to government actions. Bitcoins main concern for risk is someone breaking into a wallet without proper preventative measures, such as encrypting your wallet, and your coins being taken. All this information and numbers can get confusing and are difficult to find. Thank to Visual Capitalist, you can have it all in one place. Visual Capitalist merge art, data and storytelling to create a coherent and continuous infographic. Recently the people at Visual Capitalist have create Continue reading >>

Banks Vs Bitcoin - Bitcoin

Banks Vs Bitcoin - Bitcoin

Do people really think this is an accurate analogy to current situation? Global banking industry's power rivals that of most nation states. It's valued in hundreds of trillions of dollars. Get real people. At best Bitcoin should be a tiny little guy who slips between the panels. When this same shit meme was posted on another crytpo subreddit, someone correctly pointed out that the majority of recent investors in Bitcoin were college age or younger and had likely little to no participation in the formal economy and were clueless about banks the majority of recent investors in Bitcoin were college age or younger and had likely little to no participation in the formal economy and were clueless about banks This is 100% consistent with my experience in this subreddit Tfw this subreddit thinks they are even a mentionable percentage of global Bitcoin investments Yeah, because the majority of the people in this sub only have a couple hundred to a couple thousand invested, they aren't the big players backing bitcoin. The majority of people that have hundreds of thousands or millions invested in anything usually have serious financial connections and better things to do with their time and money then speculating about random shit on reddit. A notable exception is a guy who uses his reputation on a niche community to actively promote an altcoin he's heavily invested in. Does teenager college dropouts like me count ? :P Only if you're informal about the economy. Usually yeah. Especially if you dropped out expecting to get rich and never work again "cuz thuh banks r evul, we got em boiz, too thuh mune" can approve a significant part of crypto investors haven't finished school yet That's why I like it. Those kids got a taste for investing. They're getting older, more experienced and Continue reading >>

Central Banks Will Hold Bitcoin And Ether In 2018: Blockchain Ceo

Central Banks Will Hold Bitcoin And Ether In 2018: Blockchain Ceo

2018 will be the year that central banks hold digital currencies: Blockchain CEO Global central banks will start holding digital currencies in the next year, the chief executive of a cyrptocurrency wallet platform told CNBC Monday. "I think this year will be the first year we start to see central banks start to hold digital currencies as part of their balance sheet," Peter Smith, CEO of Blockchain, told CNBC. Smith said that central banks would likely buy bitcoin and Ethereum as part of their reserves. Central banks hold gold and foreign currency reserves to allow them to act if there are any market shocks. The rise of bitcoin as an asset could mean some monetary authorities will have to begin holding it. "Bitcoin is already a top 30 currency by supply, and this trend, and pressure to hold digital currency as part of reserves will only accelerate as the price rises," Smith said. There is a growing chorus of voices suggesting that cryptocurrencies could be bought by central banks. In an opinion article on Coindesk , Eugene Etsebeth, a former central banker with the South African Reserve Bank, said that cryptocurrencies will fulfill a new requirement as "digital gold." "In 2018, G-7 central banks will witness bitcoin and other cryptocurrencies becoming the biggest international currency by market capitalization," Etsebeth wrote. "This event, together with the global nature of cryptocurrencies with 24/7 trading access, will make it intuitive to own cryptocurrencies as they become a de-facto investment as part of a central bank's investment tranche." He added that cryptocurrencies would be used in international trade. Blockchain's Smith, who spends time speaking to regulators, took it a step further and said central banks could start to issue their own "digital assets" nex Continue reading >>

Why Bitcoin Scares Banks And Governments

Why Bitcoin Scares Banks And Governments

Bitcoin offers an alternative to the conventional, state-sanctioned banking system. Maybe that's why powerful institutions are so wary of it Thevirtual currency Bitcoin, which last week reached $147 for a single coin. Photograph by Zach Copley Bitcoin offers an alternative to the conventional, state-sanctioned banking system. Maybe that's why powerful institutions are so wary of it First published on Saturday 6 April 2013 19.05EDT Among the many unpleasant discoveries made by those who stashed their cash in Cypriot banks is that the island's government could stop them moving their money elsewhere. Capital controls are supposed to be a thing of the past, a figment of the pre-globalised world. But it turns out that when banks are threatened, the gloves come off. One of the side-effects of this rude awakening seems to have been a surge of interest in a virtual currency called Bitcoin . At any rate, the price of a single Bitcoin reached $147 at one point last week. And people are buying and selling this virtual stuff for what we laughingly call real money via more than 40 online exchanges such as Mt Gox, though when I last looked Mt Gox was temporarily offline as a result of a denial-of-service attack that might have been the work of any number of possible suspects: cyber vandals; hackers hoping to sow uncertainty in the market to bring prices down and make a killing; or, for all we know, even the US government, which takes a poor view of people minting their own currency, even if it is virtual. The Bitcoin phenomenon is one of the most intriguing things to have happened in cyberspace since the invention of the peer-to-peer networking that undermined the music business and enabled developments such as Wikileaks. It's an invention of a mysterious and, to date, unidentified Continue reading >>

Cryptocurrencies Vs. Banks: Advantage Of Decentralized Financial Systems

Cryptocurrencies Vs. Banks: Advantage Of Decentralized Financial Systems

Cryptocurrencies vs. Banks: Advantage of Decentralized Financial Systems Decentralized cryptocurrencies like Bitcoin and Ethereum have strong advantages over centralized financial systems, especially in the realm of efficient transaction settlement. The views expressed here are the authors own and do not necessarily represent the views of Cointelegraph.com Decentralized cryptocurrencies like Bitcoin and Ethereum have strong advantages over centralized financial systems, primarily because of their ability to function and operate without a single point of failure, which hackers and bad actors can target. On Feb. 19, Jameson Lopp, the lead engineer at multi-signature Blockchain security firm BitGo, noted that during a holiday in the US, local banks closed down, failing to provide financial services to individuals and businesses that could be in urgent need of financial settlement services to process payments. Today is a holiday in America - the banks and markets are closed. Meanwhile Bitcoin soldiers on, with over $1B transmitted and $7B traded today. pic.twitter.com/HetG9kES7I Meanwhile, Bitcoin, as a peer-to-peer (P2P) settlement system, was able to process over $1 bln worth of transactions, and more than $7 bln worth of Bitcoin was traded on a single day. Regardless of holidays and weekends, users of Bitcoin and other cryptocurrencies like Ether can freely transact on a peer-to-peer basis, through the utilization of wallets. Non-custodial cryptocurrency wallets enable users to remain in full control over their funds, by only allowing users to gain access to their private keys and no other centralized entity or platform. As such, Bitcoin wallets like Blockchain, Trezor and Ledger cannot refund transactions or recover user accounts once the private key is lost, encouragi Continue reading >>

Bitcoin: What Are The World's Central Banks Saying About Cryptocurrencies?

Bitcoin: What Are The World's Central Banks Saying About Cryptocurrencies?

Bitcoin: What are the world's central banks saying about cryptocurrencies? Many have issuedwarnings about the dangers of digital money and some are looking into clamping down on bitcoin or even creating their own versions The US Federal Reserves investigation into cryptocurrencies is in its early days, and it hasnt been overtly enthusiastic about the idea of a central-bank issued answer to bitcoin Reuters More than eight years since the birth of bitcoin, central banks around the world are increasingly recognising the potential upsides and downsides of digital currencies. The guardians of the global economy have two sets of issues to address. First is what to do, if anything, about the emergence and growth of the private cryptocurrencies that are grabbing more and more attention with bitcoin now sitting above $16,000 (12,000) and futures trading this week heralding a new level of mainstream acceptance. The second question is whether to issue official versions. Following is an overview of how the worlds largest central banks (and some smaller ones) are approaching the subject: The Federal Reserves investigation into cryptocurrencies is in its early days, and it hasnt been overtly enthusiastic about the idea of a central-bank issued answer to bitcoin. Jerome Powell, a board member and the chairman nominee, said earlier this year that technical issues remain with the technology and governance and risk management will be critical.Mr Powell said there are meaningful challenges to a central-bank cryptocurrency, that privacy issues could be a problemand that private-sector alternatives may do the job. Randal Quarles, vice chair for supervision at the Federal Reserve, said on1 December that while the central bank has no policy towards regulation of bitcoin it is worth thinking Continue reading >>

What The World's Central Banks Are Saying About Bitcoin

What The World's Central Banks Are Saying About Bitcoin

Bloomberg the Company & Its Products Bloomberg Anywhere Remote LoginBloomberg Anywhere Login Bloomberg Terminal Demo Request Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world. Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world. What the World's Central Banks Are Saying About Bitcoin Yellen Calls Bitcoin a 'Highly Speculative Asset' Nine years since the birth ofBitcoin, central banks around the world are increasingly recognizing the potential upsides -- and downsides -- ofdigital currencies. The guardians of the global economy have two sets of issues to address. First is what to do, if anything, about the growth of the private cryptocurrencies that are grabbing more and more attention for a host of reasons: security concerns after a $500 million exchange hack in Japan, volatile price moves and -- in the case of Bitcoin, at least -- their introduction on regulated derivatives exchanges. The second question is whether to issue official versions. Heres a wrap-up of how the the worlds largest central banks (and some smaller ones) are approaching the crypto phenomenon: The Federal Reserves investigation into cryptocurrencies is in its early days, and policy makers havent been overtly enthusiastic about the idea of a central-bank issued answer to Bitcoin.Jerome Powell, a board member and nominee for chairman, said in 2017 that technical issues with the technology remain and governance and risk management will be critical. Powell said there are meaningful challenges to a central-bank cryptocurre Continue reading >>

Bitcoin Vs Banks: Future Cooperation Or Opposition?

Bitcoin Vs Banks: Future Cooperation Or Opposition?

Bitcoin vs banks: future cooperation or opposition? Bitcoin vs banks: future cooperation or opposition? Bitcoin is having a particularly turbulent 2017 so far. The planets largest cryptocurrency has reached new all-time highs in the lead up to US Securities and Exchange Commission (SEC) ruling on a proposed BTC exchange traded fund (ETF), earlier this year. Following the rejection of the fund, the price dropped suddenly before recovering briefly. Further uncertainty over the scalability of the currency more recently has caused the price of a BTC to plunge again ($1033 per Bitcoin on March 27, according to bitcoin exchange CEX.io ) but the very latest trends at the time of writing suggest that the debate over block-size for the layperson the number of transactions possible at any one time has cooled off. At least for now, that is. Of course, all those supportive of the cryptocurrency would love to see some form of widespread adoption soon. A growing movement to see a cashless planet, and the inherent advantages of bitcoin over current banking practices (particularly those relating to transfer times and costs) make the digital currency a potentially attractive avenue for global banking giants to explore. Bitcoin could absolutely revolutionise the infrastructure of our banks, providing a cheaper, faster, and more convenient alternative to the likes of wire and single euro payment area (SEPA transfers, if given the chance to do so. However, it is unclear at this moment whether its full potential in the banking sphere will ever be realised. There are many negatives about the currency that banks would have to overcome, or ignore, to fully integrate their systems with the new technology. Banks are certainly interested in BTC and blockchain technology There is no doubt that ma Continue reading >>

Bitcoin And Banks 2018 I Threatened Or Interested - Updated Analysis

Bitcoin And Banks 2018 I Threatened Or Interested - Updated Analysis

Banking systems, all over the world, have controlled the loanable funds market, volatility of a currency, the money supply, inflation and the list can go on and on. These usually result in a number of regulations and expenses on society, because of which people have always wanted to be somehow independent of these frames set by certain systems. In 2009, the founder(s) of Bitcoin managed to come up with an idea that could give people the freedom they wanted, drastic reduction of fees that people have paid to banks for ages, as well as by making transactions as fast as a few seconds. Bitcoin was created as a cryptocurrency by an entity, which is recognized as Satoshi Nakamoto . In contrast to the centralized traditional systems, such as banking, which is in charge of issuing a certain currency, Bitcoin has a decentralized, peer-to-peer system and anyone including you can be involved in the process of issuing Bitcoins. Bitcoin allows two parties to exchange value virtually without any loss of value or having to pay a third party. There is no need for centralized control for transactions with Bitcoins and people can exchange goods and services within milliseconds. What is the difference between Bitcoin and banks? Bitcoins and banks are fundamentally different from one another. Bitcoins, just like commodity money, have a finite supply. The supply of the Bitcoins are blocks with complex algorithms, which have to be solved, and when they are the reward is a certain amount of Bitcoins. The process is known as mining and the people who do it are the miners. The price of the Bitcoins is usually decided by the supply and the demand of this currency, and it goes up as the algorithms are harder to solve and there are tons of people who want to become a Bitcoin owner. When someone s Continue reading >>

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