Bitcoin Price Skyrockets by $1,000 in 30 Minutes: The Second-Largest Green Candle of 2019

Bitcoin Price Skyrockets by $1,000 in 30 Minutes: The Second-Largest Green Candle of 2019

After a tumultuous week for Bitcoin, the cryptocurrency just printed one of its largest positive candles since the beginning of this year’s bull run. It shot up 9 percent in a matter of minutes, breaking the psychological level of $10,000 and bringing its current price to about $10,300.

                               

BTC 4-Hour Chart

Bitcoin Prints a Massive Green Candle

The past week has been nothing but turbulent for Bitcoin’s price. After surging to about $13,000 nine days ago, the cryptocurrency experienced a prolonged downtrend which brought the price down to a monthly low around $9,000. Even though many considered this to be a healthy correction after a massive uptrend, it’s safe to say that the negative price action got people worried. 

However, in the past hour, Bitcoin printed one of the largest green candles on the chart since the beginning of the bull run this year. The cryptocurrency shot up by over $1,000, representing a staggering increase of 9.5% in a few minutes. Naturally, this was immediately picked up by prominent community members and popular analysts, who didn’t miss the opportunity to comment on the matter. 

What Caused the Sudden Spike?

Determining the exact cause of the sudden spike is definitely a challenging task, if it’s possible at all. However, recent events have been rather good for Bitcoin. Earlier today, Rep. Warren Davidson, in a hearing involving CoinShare’s Meltem Demirors, made a clear differentiation between Bitcoin and so-called “shitcoins.” He explained that the latters’ values could be distorted by central authorities, whereas this would not be possible with Bitcoin. 

Moreover, just yesterday, Rep. Patrick McHenry was definitive when explaining that there’s no authority, not even China, that could “kill Bitcoin.” Furthermore, the Chairman of the US Federal Reserve expressed his opinion on Bitcoin, reaching a very important conclusion that it is a “store of value… like gold.”

Positive political news in the cryptocurrency space also came from the UK, as the chief of the country’s treasury said that his department was looking into ways to regulate the space, and Facebook’s Libra in particular. It will be interesting to see whether Bitcoin can retain its recent sudden gains. This will perhaps provide us with a clearer picture of what we can expect next.

Article Produced By
Felix Mollen

https://cryptopotato.com/bitcoin-price-skyrockets-1000-in-30-minutes-the-second-largest-green-candle-ytd/

Canadian Startup Partners with Authorities to Launch Tax Payments in Bitcoin

Canadian Startup Partners with Authorities to Launch Tax Payments in Bitcoin
                             

According to a press release dated July 15, 2019, the city of Richmond Hill, Canada,

is rolling out a project that allows residents to pay property taxes with bitcoin (BTC) through crypto startup, Coinberry.

Pay Property Tax with Bitcoin

Canadian digital currency platform, Coinberry, has opened negotiations with the city of Richmond Hill to provide crypto payment solutions for the municipality. The City of Richmond Hill is located in the outskirts of Toronto and is home to more than 200,000 residents. The Council, which took place on July 10, 2019, was willing to innovate with digital currency and has voted in favor of entering into an agreement with Coinberry to provide residents and business the option to pay property taxes in Bitcoin.

The city of Richmond Hill is, therefore, becoming the second Canadian municipality to allow citizens to pay their taxes in cryptocurrency. Indeed, in March, Innisfil, a town in Ontario, allowed residents to pay property tax in bitcoin through the service offered by Coinberry. Innisfil has 36,000 residents and was used as a pilot project to test whether the community was ready to embrace innovative digital cryptocurrency payments.

Coinberry is a Toronto-based, FINTRAC-registered, financial technology solutions provider focused on blockchain and digital currency solutions. It is the first and only Canadian cryptocurrency platform to have secured partnerships with local municipalities, making it one of the leading companies in Canada.  A similar project was launched in the American state of Ohio back in 2018. That initiative allowed businesses to pay their taxes directly in BTC. The crypto-friendly move in Ohio has largely been attributed to the state’s treasurer, Josh Mandel.

According to the WSJ reports, Mandel is looking to “plant a flag” for Ohio as a leader in cryptocurrency adoption. He stated that he “sees [bitcoin] as a legitimate form of currency.” Following the launch, on January 4, 2019, online retail giant Overstock announced that it would pay a part of its Ohio state business tax in bitcoin. Governments and local municipalities are increasing their awareness of cryptocurrencies and projects like these may trigger other councils to consider the roll-out of crypto payments as a settlement method in the future.

Article Produced By
Edoardo Vecchio

https://btcmanager.com/canadian-startup-partners-authorities-launch-tax-payments-bitcoin/?q=/canadian-startup-partners-authorities-launch-tax-payments-bitcoin/&

 

Billionaire Looks for the Next-best Currency, Gives Bitcoin Hope

Billionaire Looks for "the Next-best Currency", Gives Bitcoin Hope

                                

Ray Dalio, American billionaire investor, Co-Chief Investment Officer

and Co-Chairman of Bridgewater Associates, a global investment firm, published a report, where he criticizes the current fiat money system but does not mention Bitcoin. This made a number of people ask as to why that is. However, his earlier comments show that Dalio did not write off cryptocurrency completely.

The viral report, with overwhelmingly positive comments, says that approximately every 10 years, due to unsustainable factors, a new paradigm begins, where the markets operate opposite of how they did in the previous one. Dalio said that any single approach to investing will “experience a time when it performs so terribly that it can ruin you”, including cash, which is not risk-free and can be depreciated in value, as the central bank can print it. Moreover, he added that “It is also a good time to ask what will be the next-best currency or storehold of wealth to have when most reserve currency central bankers want to devalue their currencies in a fiat currency system.”

"I think <…> that those [investments] that will most likely do best will be those that do well when the value of money is being depreciated and domestic and international conflicts are significant, such as gold," Dalio said, while a major cryptocurrency investment company is encouraging to "drop gold". Not surprisingly, many in the cryptoverse shared this report showing it as another example why people need Bitcoin. Also, many asked Dalio about this most popular cryptocurrency. The reason why Dalio did not mention digital assets may lie in his previously expressed skepticism towards cryptocurrencies.

First, in 2017, he said that he is enthusiastic about blockchain, though “its characteristics right now are standing in the way of its potential”. Also, he stated that currency has two purposes: a medium of exchange and a storehold of wealth, while Bitcoin is “right now” neither of those two things effectively. It can be spent in limited number of cases, “which can also be threatened in terms of what the secrecy of those transactions are and things that are being done by governments to get beyond that secrecy.” And though there is “a lot of merit to it”, as a currency “you can’t have the volatility driven by speculation on it make it a storehold of wealth.” However, in more recent comments, the famous investor said that he hopes that

cryptocurrencies will solve these issues.

"What I would hope is that it could be very effective as a medium of exchange – wow, that would be a great thing if they made that very effective quickly so you’re using it – and that you can create enough stability in that price so that the uncertainty of the price movement doesn’t stand as an impediment to its usage as a currency or as a storehold of wealth," Dalio said in an interview this past April.

He also added that crypto is going through a speculative bubble, and that it’s “a speculative vehicle based on blockchain, which is a very impressive technology”, very similar to what the Internet was in 2000. He’s sold on blockchain, Dalio says, adding that there will also be digital tokens issued by central banks as well, but the question is “which cryptocurrency is going to be effective and what that will look like?” Bitcoin could end up being Blackberry (previously, an iconic smartphone brand), he says, with Ethereum replacing it, for example.

Article Produced By
Sead Fadilpaši?

Sead is a staff journalist at Cryptonews.com who covers cryptocurrency and blockchain news daily, writes analysis pieces, tests blockchain and cryptocurrency products. He's based in Sarajevo, Bosnia and Herzegovina. Prior to joining Cryptonews.com he was a freelance, also was a journalist for Al Jazeera web. He spends his free time in music studios, recording songs for movies and cinema. Loves to break gadgets so he could fix them, enjoys exploring new music and loves tasty and equally unhealthy food.

https://cryptonews.com/news/billionaire-looks-for-the-next-best-currency-gives-bitcoin-h-4270.htm

Alleged Draft Of India’s Bitcoin Ban Leaked Online

Alleged Draft Of India’s Bitcoin Ban Leaked Online

                                   

The rumours of India proposing to ban cryptocurrency have been floating around

the space for a while now and they may have just been confirmed after the Indian blockchain lawyer Varun Sethi posted an alleged first draft of the proposed bill. The bill, called “Banning of Cryptocurrency and Regulation of Official Digital Currencies” proposes to ban or heavily restrict all cryptocurrency-related activity in the nation and a draft of the bill has apparently been leaked. 

Crypto Crosshairs

Whether this draft is real or not, it seems that India has crypto in its crosshairs for foreseeable future. According to a report from the Economic Times in April 2019 mentioned that the bill had already been examined by a committee of representatives from the Department of Economic Affairs, Central Board of Indirect Taxes and Central Board of Direct Taxes, as well as other regulatory entities. As reported by the recently revived CCN, “the committee held the view that there has already been an unnecessary delay in taking action against cryptocurrency. This bill if passed will make all crypto related activities including mining and trading illegal in the country, with offenders risking jail time of up to 10 years.”

A part of the report reads:

“No person shall mine, generate, hold sell deal in, issue, transfer, dispose of or use cryptocurrency in the territory of India.”

With already strict crypto regulations in place, this isn’t the first time that the government will be blamed for planning to rid crypto and digital assets completely. The only positive thing about the bill seems to be that the government is hoping to bring in its own stablecoin. The draft doesn’t ban the use of distributed ledger tech and blockchain either but only if it is used for educational purposes. If India does go ahead to ban cryptocurrencies it will be a big loss for the market. Unfortunately, there won’t be much that the community could do either. Hopefully, India’s government will turn down the bill but who knows what the future holds.

Article Produced By
Robert Johnson

Robert is a keen investor with a particular interest in cryptocurrencies. He has been involved in the industry for many years, and because of this, has gathered a lot of knowledge surrounding this area. He studied English at university level and has a passion for writing. He loves being able to combine his two mains interests on a daily basis.

https://cryptodaily.co.uk/2019/07/alleged-draft-of-indias-bitcoin-ban-leaked-online

Bakkt’s Futures Testing Will not Impact the Bitcoin Price

Bakkt’s Futures Testing Will not Impact the Bitcoin Price

                               

 

Bitcoin futures contracts have made somewhat of an impact

on the world’s leading cryptocurrency’s price. That in itself is always interesting to keep an eye on, although it seems the mainstream couldn’t care much less about these trading vehicles. Bakkt is scheduled to “launch’ its own Bitcoin futures in the coming weeks, albeit it is important to acknowledge what is going exactly. 

A Beta Launch Happens on July 22

Contrary to what some people may assume, Bakkt will not roll out its actual Bitcoin futures to the masses in just over a week from today. Instead, the company will begin testing this product and the underlying infrastructure to see how things will evolve. This phase is referred to as “user acceptance testing”, which means not everyone will be able to access this testing environment. It is a “glorified” beta test of the products, and should be treated as such. 

Price Impact Will be Minimal

Although the beta testing of this Bitcoin futures trading vehicle could spark a massive BTC bull run, it seems incredibly unlikely that will be the case. The general consensus among traders and enthusiasts is how the beta launch – as well as the full launch, whenever it happens – is already factored into the current Bitcoin price. That is something to keep in mind at all times, primarily because the value of BTC has fluctuated quite a bit in recent weeks. Rest assured it has nothing to do with Bakkt or its upcoming user acceptance testing. 

When Will the Actual Launch Happen?

There is a lot of conflicting information in that regard, albeit it is safe to say no one knows for sure at this time. More specifically, Bakkt initially expected to launch its Bitcoin futures in late 2018, yet that deadline was pushed back significantly. After all, this is why the user acceptance testing phase will only begin in July of 2019, which seemingly indicates the actual product launch is still weeks, if not months, away. 

Even if the futures products launches in full, it remains to be seen who will be able to access these vehicles in the years to come. As regulators are closing down on any company providing exposure to cryptocurrencies, digital currencies, and tokenized assets, it will be interesting to see how Bakkt handles this particular aspect. By the time its futures launch in full, the US may have become an unsuitable area for Bitcoin products in general. based on how regulators are treating cryptocurrency right now, such a development seems more and more plausible every day. 

Can Bitcoin Futures Products Succeed?

Based on all of the Bitcoin futures products being released in the past two years, it seems very few people actively care about these products at this stage. While that negative attitude wasn’t entirely surprising during the crypto winter of 2018 and early 2019, it seems very little has changed ever since BTC surpassed $10,000 again in Q2 of 2019. 

As such, one has to wonder what the response to Bakkt’s products will be. As the company will also support the ICE Futures US launch of margined futures for Bitcoin, there is a chance things could get a lot more interesting once everything has gone live accordingly. At the same time, one also has to keep in mind these products might not make any meaningful impact either. An interesting future lies ahead either way, albeit it might not necessarily benefit Bakkt in the long run.

Article Produced By
JP Buntinx

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers.

https://nulltx.com/bakkts-futures-testing-will-not-impact-the-bitcoin-price/

Nasa’s Apollo navigation computer can mine Bitcoin

Nasa’s Apollo navigation computer can mine Bitcoin

                                 

A 35 kg block with ferrite ring storage – nevertheless,

the hobbyist Ken Shirriff has been able to configure the restored Nasa AGC to mine Bitcoin. That cost a lot of effort and manual adjustment of the Sha-256 algorithm, said the developer. Computer historians got an Apollo Guidance Computer from NASA from the 60s up and running. On the collector’s item from a private range, the developer Ken Shirriff has also tried to operate on the system Bitcoin mining. The result: The AGC can calculate a Sha-256 hash value in ten seconds, writes the IT magazine Ars Technica. “The computer is so slow that it would take about a billion times the life of the universe to successfully dig a bitcoin block,” says Shirriff.

In addition to this extremely slow computing power, the hobbyist had problems with getting the Bitcoin algorithm to work at all. The AGC processes instructions in 15-bit format. Modern computers and mining asics use 32 or 64 bits. This is also true for Sha-256’s 32-bit operations used in bitcoin mining. That’s why he split the algorithm into three parts: a 4-bit part and two 14-bit parts, which the computer processes one at a time.

4 kbyte memory for Sha-256

Shirriff also had to write some memory instructions in subroutines themselves that use modern computers and also Sha-256 – such as Rotate and Shift. The memory itself is a problem that is about 4 Kbytes in size and stores information in magnetized ferrite rings. “I managed to squeeze everything into a memory bank using the same 16 words for multiple purposes,” says Shirriff. That had been associated with much debugging. The AGC was used by NASA for many Apollo missions as a navigation computer. He was modern for the time, as he was already equipped with integrated circuits and weighed only about 35 kg. In 2016 hobbyists could save a copy from scrapping and get it working again.

Article Produced By
BitCoinNews

https://thebitcoinnews.com/nasas-apollo-navigation-computer-can-mine-bitcoin/

This Week In Crypto: Binance Bitcoin Futures, Litecoin Sees Adoption, Monero Bug

This Week In Crypto: Binance Bitcoin Futures, Litecoin Sees Adoption, Monero Bug

                               

 

This Week In Crypto is a weekly segment from the Live Coin Watch News team,

providing readers with a fun, succinct, and pertinent summary of the most important Bitcoin-related events in the past seven days. While crypto assets’ price action has evidently slowed across the board since last week’s crazy tumult, the underlying industry was still as crazy as ever. Over the past seven days, this budding ecosystem has seen its fair share of both positive and negative tidbits of news.

In the former category, Binance unveiled plans to launch futures, Litecoin may large steps forward in adoption, and Ethereum moved one step closer to commencing its long-awaited “Serenity” upgrade. In the latter category, Monero disclosed a notable bug, the United Kingdom’s leading financial regulator has begun to renew its crypto crackdown, Nouriel “Dr. Doom” Roubini slammed the cryptocurrency industry once again, and the use of Bitcoin on dark web forums was revealed to be rising.

This Week in Crypto

  • Ethereum 2.0 (Serenity) Sees First Spec Freeze, Upgrade On Its Way: Announced by Justin Drake, an Ethereum Foundation researcher, the first code specification freeze for Ethereum’s 2.0 (Serenity) upgrade recently occurred. “This release marks the end-of-June phase 0 spec freeze, v0.8 is to serve as a stable target as implementers work toward multi-client testnets in addition to on-going efforts in formal verification, fuzzing, and audits”, Drake explained. For those unaware, Phase Zero will be the first live activation of proof of stake on Ethereum. Many analysts believe that the transition from mining to staking will allow for the blockchain to regain hegemony of the smart contracting and decentralized application sphere, which has been partially consumed by EOS, Tron, and up-and-comers like Cosmos and Tezos.
  • U.K. Financial Authority Looks to Crack Down on Crypto Derivatives, BitMEX Included: The United Kingdom’s leading financial regulator, the FCA, has just revealed plans to impose a ban on derivatives relating to cryptocurrencies. If put in place, British investors would not be able to use a platform like BitMEX, which is home to the infamous original 100x Bitcoin leverage contract, which some have likened to pure gambling. It is important to note that users often bypass such “bans” with VPNs, which exchanges don’t seem to want to curb.
  • Binance Poised to Launch Bitcoin & Crypto Futures: In a recent keynote, Binance chief executive Changpeng “CZ” Zhao unveiled a surprising tidbit of news. Speaking to the crowd at the Asia Blockchain Summit in Taipei, the exchange head revealed that his firm would soon be launching cryptocurrency futures. A slide from Zhao’s presentation shows a preliminary version of the trading platform, which purportedly allows for up to 20 times leverage, and gives investors the ability to long and short key crypto assets: presumably Bitcoin, Ethereum, and Binance Coin at the minimum. This news comes hot on the heels of Binance’s intent to launch margin trading in the coming week or two.
  • Litecoin Added to Flexa, Adoption Well on Its Way: According to a recent blog post, Litecoin has now been formally added to Flexa, a payments ecosystem that allows merchants to accept cryptocurrencies and receive U.S. dollars. Seemingly explaining why it was making this addition, Flexa writes in the release that LTC “distinguishes itself” from other blockchain platforms with low transaction fees (often under $0.01), fast confirmation times (2.5 minutes), high volumes, “and an active community of avid supporters and payments enthusiasts.” As of the time of press, Litecoin can now be used to purchase goods via Flexa in over 39,250 stores (and counting) across the United States. Retail and restaurant chains that accept Flexa-backed payments, which are routed primarily through Gemini, include Baskin Robbins, Bed Bath & Beyond, GameStop, Nordstrom, Office Depot, Petco, and Whole Foods
  • Monero Bug That Would Have Put XMR Exchanges at Risk Unveiled: This week, a notable Monero (XMR) bug was unveiled by Hackerone, a developer group focused on discovering and patching code mishaps before hackers can exploit them. The vulnerability purportedly allowed for users to send “fake” XMR to an exchange, trade it for an “actual” cryptocurrency, then withdraw funds off the exchange.

Article Produced By
Nick Chong

Nick has been enamored with cryptocurrencies since finding out about them in 2013. He now reports crypto- and blockchain-related news for a number of leading outlets.

https://news.livecoinwatch.com/this-week-in-crypto-binance-bitcoin-futures-litecoin-sees-adoption-monero-bug/

Is Bitcoin a good investment?

Is Bitcoin a good investment?

This article is not investment advice.

Instead, it aims to give you a better understanding of what Bitcoin investment involves.

The basics of Bitcoin investment:

  • You can invest in both Bitcoin Cash (BCH) or Bitcoin Core (BTC). They’re two separate digital currencies which can be bought and sold online.
  • There’s no single definition for Bitcoin investment: it depends on what you decide to do. For instance, you might be buying coins to store or trade, or you might try to earn coins by getting involved with Bitcoin mining.
  • As with any type of investment, do your research before spending any money on Bitcoin-related investments and make sure you never spend more than you can afford to lose.

Is Bitcoin investment safe?

  • A quick look at our Bitcoin price charts will tell you that both Bitcoin Cash (BCH) and Bitcoin Core (BTC) can have periods of high volatility.
  • That’s because they’re both new investment opportunities and, as market sentiment around the potential of cryptocurrencies fluctuates, so too does the price of every coin within the space.
  • Predicting these periods of volatility is hard even for experienced traders. But, by doing your research and learning about the different types of Bitcoin investment opportunities (and scams), you can make more educated investment decisions.xxxxxxxxxxxxx
  • Most new investors simply want to purchase Bitcoin and, once they own it, they store it securely for the foreseeable future (aka ‘hodling’).
  • The goal here is that the Bitcoin bought will appreciate in value and, if this happens, the investor can sell their Bitcoin on for a profit.
  • There is no way to predict whether the Bitcoin you buy will increase in value. One of the biggest factors impacting price is usability, so keep up to date with industry news to learn more about the potential of different cryptocurrencies.
  • To purchase Bitcoin, you exchange fiat currency (e.g. USD) for either Bitcoin Core (BTC) or Bitcoin Cash (BCH).

Investing through active Bitcoin trading

  • Trading Bitcoin involves buying either Bitcoin Cash (BCH) or Bitcoin Core (BTC) and, instead of storing it, trading it frequently.
  • The goal here is to buy when the price is low and sell when it rises, meaning a profit is made when the Bitcoin is sold.
  • Bitcoin traders often do this over relevantly short periods of time, closely tracking the market price to determine when to buy and sell.
  • Since there is no way to predict the market, it’s wise to trade with caution and be aware that there are never any guarantees of making a profit.

Investing through Bitcoin mining

  • Bitcoin mining involves trying to ‘earn’ Bitcoin Core (BTC) and Bitcoin Cash (BCH) by lending computational power to the networks.
  • In short, when a computer successfully processes Bitcoin transactions, it’s rewarded with newly-created coins—meaning the owner of the hardware earns Bitcoin.
  • To start mining, you can either buy your own mining hardware or you can rent hardware through a cloud mining contract. Either way, joining a mining pool means you’re more likely to successfully mine Bitcoin (i.e. shared efforts for shared profits).
  • The profitability of Bitcoin mining depends on various factors. Above all, the value of the mined Bitcoin needs to be greater than the cost of running the mining hardware for miners to see a profit.

Avoiding Bitcoin investment scams

  • As with any financial landscape, the crypto space is rife with scammers looking to take advantage of new investors.
  • As a rule of thumb, any investment opportunity that seems too good to be true probably is. For instance, if a site or company claims it can double your Bitcoin or offers high interest rates if you ‘lend’ them your coins, they’re a scam.
  • Likewise, if you’re unexpectedly approached by somebody out of the blue promising to send you more Bitcoin if you first send them some, ignore it.
  • Many people fall victim to scams—especially when the fraudsters pose as well known figures in the crypto space through fake social media and email accounts.
  • Before committing to any investment, thoroughly research the company or website involved to establish whether they’re trustworthy.

Article Produced By
Bitcoin.com

https://www.bitcoin.com/get-started/is-bitcoin-a-good-investment

Top Crypto Markets Report Losses, Bitcoin Hovers Around $11,000

Top Crypto Markets Report Losses, Bitcoin Hovers Around $11,000

                               

The top-20 digital currencies by market capitalization are trading in the red zone

Friday, July 5 — the top-20 digital currencies by market capitalization are trading in the red zone, with only Chainlink (LINK) seeing daily gains, according to data from Coin360. Bitcoin (BTC) has been trading in a narrow corridor from $11,701 to $10,751 as its highest point during the day. The leading crypto has lost 6.25% over the past 24 hours, and is currently trading at $10,969. In terms of its weekly performance, bitcoin has seen a price drop by 2.73%.

Bitcoin has become less correlated with other cryptos in Q2 2019 due to a potential “flight-to-quality” in the recent bull run, according to a Binance report on crypto correlations released today. Average correlation between bitcoin and all other major crypto assets declined to 0.61 from 0.73 in Q1 2019.

Ethereum (ETH) has registered smaller losses on the day, with a 1.89% drop, and is trading at around $287.31 at press time. Its weekly chart shows that ETH fell to as low as $274.62 on July 2, while its highest point was $321.68 on June 30, subsequently correcting downwards and then sideways in the last few days. Earlier today, Justin Drake, an Ethereum 2.0 researcher at the Ethereum Foundation, said that ethereum might decrease issuance ten-fold by 2021.

Coin360 data indicates that Ripple (XRP) is down by 3.15% on the day to trade at around $0.381 at press time. The altcoin’s weekly performance shows that it has lost nearly 9%, while over the past month it is down by 4.84%. On the top-20 crypto list, only LINK is reporting gains, with over 6% up on the day. The coin is trading at around $3.62 at press time. Total market capitalization of all digital currencies is over $320 billion at press time, up from its intraweek low of around $290.5 billion on July 2. The daily trading volume of all coins is currently around $74.8 billion.

Article Produced By
Ana Alexandre

Total change in her career took Anastasia into the world of analytics and business information as a researcher and translator in 2010. Some time later she got into FinTech, a dynamically developing segment at the intersection of the financial services and technology. Ana joined Cointelegraph in September 2017.

https://cointelegraph.com/news/top-crypto-markets-report-losses-bitcoin-hovers-around-11-000

Iran Accuses US of Looking to Thwart Its Bitcoin Mining Operations

Iran Accuses US of Looking to Thwart Its Bitcoin Mining Operations

The U.S. believes Iran is relying on BTC mining as a "tool" to circumvent sanctions, according to Iran's Assistant Minister of Industry, Trade and Supply.

Iran’s Assistant Minister of Industry, Trade and Supply, Saeed Zarandi,

said that Trump’s administration is working to block bitcoin mining in the country, according to local news outlet Fars. After lobbying to get the country out of the SWIFT system, the U.S. now seems to have its eyes set on the recent interest of Iranian citizens in crypto-mining as a productive activity capable of evading the financial sanctions imposed against their country. The U.S. is making it difficult for Iran to get its economy off the ground.

Iran is a Paradise for Crypto Miners, but Miners Are a Nightmare For Iran

Iran is one of the countries with the cheapest electricity in the world. Statistics from Global Petrol Prices reveal that while 1kWh costs on average $0.14 in the U.S., Iranians pay about $0.03 thanks to a government subsidy. Low energy costs make mining extremely profitable. In the latest months, the activity has grown so much that the country’s infrastructure is suffering the consequences of a growth in consumption higher than the power generation capacity. Speaking to Mehr, Ali Akbar Karimi, a member of Iranian Parliament’s Economic Committee, shared his concerns while urging the government to redouble its efforts

to regulate this activity:

“Mining cryptocurrencies has become a common and widespread activity in Iran, and it consumes considerable power which has caused problems for the country, especially in the hot season.”

This problem has led Iranian officials to combat mining with measures such as power cut-offs and direct confiscation of mining equipment

Is All of This Part of a Major Agenda?

If Mr. Zarandi’s suspicions are correct, Iran may be just a piece in the geopolitical and commercial chess game the United States and China are playing right now. China’s government has not shown official interest in promoting BTC mining. The Chinese private sector, however, migrated to Iran to take advantage of its low energy costs and enjoy better benefits from crypto mining, according to Iran’s Minister for Communications and Information Technology, Mohammad Javad Azari Jahromi,

on PressTV.

“A major part of cryptocurrency mining used to be done in China before Iran became attractive for miners …The Chinese government has no plan to be present in the field of cryptocurrency mining in Iran; however, China’s private sector and people may have been involved in this area.”

To this possible boycott, we must add other actions that have strongly harmed the cryptocurrency community in Iran. A little over a month ago, Localbitcoins announced that it would not allow Iranians to use its platform; likewise, at year-end 2018, Binance and other exchanges also withdrew support for the Iranian citizens, complying with the unilateral sanctions imposed by the U.S. government.

Iranians Want to Move Forward

Despite the setbacks, the Iranian government is optimistic and confident that cryptocurrencies can help provide a better future for its citizens. Earlier this year, the government announced the launch of a gold-backed stablecoin and it seems that its citizens also share this interest. Several enthusiasts have shared a variety of projects to promote the ecosystem, with proposals as impressive as that of a skyscraper in the middle of the desert hiding a mining farm cooled by a waterpark. Concept image of a mining farm/waterpark/skyscraper | Source: Designboom Currently, several ministries are working together with the Central Bank of Iran to regulate the local crypto ecosystem, attacking different angles such as mining, transactions, and economic obligations.

Article Produced By
Jose Antonio Lanz

Lawyer, specialist on strategic planning, professor and Bitcoin enthusiast.

https://www.ccn.com/crypto/iran-accuses-us-of-looking-to-thwart-its-bitcoin-mining-operations/2019/07/07/